Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Mercantil Bank Holding — Investor Presentation (February 2019)
30 slides from Amerant Bancorp's investor presentation, Feb 6, 2019
Slide 1: Investor Presentation February 5, 2019
Investor Presentation February 5, 2019
Slide 2: Important Notices and Disclaimers
2 Important Notices and Disclaimers Any statements in this presentation about our expectations, beliefs, plans, objectives, assumptions or future events or performance, including returns on assets, are not historical facts and are forward-looking statements. These statements are often, but not alway
Slide 3: Who We Are
3 Who We Are Geographic Mix • Founded in 1979 December 31, 2018 • Acquired in 1987 by MSF(1) Loans Deposits History • 80.1% Spin-off in August 2018 • Adopted Amerant brand in October 2018 • Completed IPO in December 2018 • MSF no longer controls the Company(2) Headquarters • Coral Gables, FL Employe
Slide 4: Investment Opportunity Highlights
4 Investment Opportunity Highlights Established Strong and Well-Positioned Franchise in Significant Fee Pathway to Strong Loan Attractive Diverse Deposit Portfolio Income Platform Profitability Markets Base • Long history with • Combination of • Loan book well- • Wealth management • Recent strong re
Slide 5: Experienced Management Team
5 Experienced Management Team • Chairman since January 2019 Frederick • Director of Company and Bank from 2007 to 2018 • Former President and CEO of Far East National Bank Copeland Chairman of the Board • Former President and CEO of Aetna International, Inc. 77 years old • Former Chairman, President
Slide 6: Deep Culture of Enterprise Risk Management
6 Deep Culture of Enterprise Risk Management Enterprise-Wide Risk Culture Risk Appetite Strategic Planning Risk Governance Board of Directors Senior Management Three Lines of Defense 1 Front Line Units 2 Risk Management 3 Internal Audit Own and manage their Independent from Direct repo
Slide 7: Rebranding Meant for You: A Different Kind of Bank
7 Rebranding Meant for You: A Different Kind of Bank Our new purpose We are evolving, just like you All that we do, our attitude and behaviors, aim at We are renewing our commitment to you by our ultimate goal: offering the closest, most aiming to keep growing and making possible personal and except
Slide 8: Attractive Franchise
8 Attractive Franchise Our footprint spans some of the most attractive markets in the US Miami-Dade MSA Houston MSA NYC MSA • Major industry sectors of • Major industry sectors of • Major industry sectors of trade, tourism, services, health care, retail, oil/gas, education, health care, manufacturin
Slide 9: Growing and Diverse Markets
9 Growing and Diverse Markets Branch Footprint Deposit Market Share Market Demographics June 30, 2018 2010 – 2019 Est. Population Change Deposits % of Market Market Branches ($mm) AMTB Share % 15 banking centers Miami-Dade, FL 9 $5,287 82.6% 4.1% $5,762mm Deposits Broward, FL 5 351 5.5. 0.6. Palm Be
Slide 10: Ongoing Business Transformation
10 Ongoing Business Transformation From... To... Part of a diverse international financial group, Focused on traditional community banking with a sophisticated international customer business in the U.S. and an opportunistic base international business A number of non-core products and services No o
Slide 11: Summary of Our Strategic Plan
11 Summary of Our Strategic Plan Building on our strengths to shape our future We Are a Local Expanding Growth in Core, Increased Bank with an Strong Credit Business and Domestic Profitability International Culture Geographic Deposits and Returns Heritage Presence • Protect and serve • Exit higher-r
Slide 12: Build on Improving Financial Performance
12 Build on Improving Financial Performance Increased Attractive Higher Net Improving Enhanced Domestic Risk-Adjusted Interest Expense Profitability Deposits Loan Profile Margin Culture Nonaccrual Domestic Net Interest Efficiency Loans / Total ROATCE(2)(3) Deposits(1) Margin(2) Ratio(2)(3) Loans(1)
Slide 13: Highly Attractive Deposit Franchise
13 Highly Attractive Deposit Franchise Commentary Deposit Mix (1) December 31, 2018 • Focus on growing overall deposit base while maintaining pricing discipline • AMTB has experienced substantial growth in domestic deposits • Transition from international deposits to core domestic deposits Total Dep
Slide 14: Strategic Shift in Loan Mix Yielding Benefits
14 Strategic Shift in Loan Mix Yielding Benefits Loan Mix by Geography Loan Portfolio(1) December 31, 2015 December 31, 2018 December 31, 2018 Financial C&I Institutions & 23.3% Acceptances 1-4 Family 1.2% 9.0% Consumer 1.9% Owner Occupied CRE 13.1% Highlights CRE 51.4% • Annualized domestic loan gr
Slide 15: Balanced CRE Loan Portfolio
15 Balanced CRE Loan Portfolio CRE Portfolio(1) CRE Loan Mix by Primary Market Area(2) December 31, 2018 December 31, 2018 Other FL, TX, and NY/NJ 4.8% New York City area 22.3% Miami- Dade, Broward, and Palm Greater Houston Beach 18.0% 54.8% Highlights • Established board limits set for CRE as perce
Slide 16: Disciplined Credit Culture
16 Disciplined Credit Culture Robust Underwriting Standards Non-Performing Assets / Assets • Credit metrics compare favorably to peers • Increase in charge-offs in 2016 largely due to several international commercial credits; segment has been de- emphasized • As of December 31, 2018, credit metrics
Slide 17: Interest Income and Margin Trends
17 Interest Income and Margin Trends Commentary Asset Sensitivity(1) 100 bps rate increase • Well positioned, asset sensitive balance sheet • Increase in NIM through 2018 driven by rising interest rates and changes in loan portfolio composition • NIM expected to improve and more closely approach pee
Slide 18: Robust Wealth Management Franchise Anchors Non-Interest Income
18 Robust Wealth Management Franchise Anchors Non-Interest Income Wealth Management Platform 2018 Non-Interest Income Breakdown Total: $53.9 million Amerant Trust Amerant Investments • Estate Planning • Wealth Management • Asset Protection • Brokerage Services • Escrow Services • Investment Advisory
Slide 19: Increasing Operating Efficiency
19 Increasing Operating Efficiency Cost Initiatives Adjusted Efficiency Ratio(1)(2) • Simplification of business model Rationalization and product offerings as part of of Business Lines separation from Mercantil • Deemphasized international business resulting in less complexity and reduced costs • I
Slide 20: ROA Expansion
20 ROA Expansion Enhanced Profitability Improving Drivers 1 Technology and Expense Saving Initiatives Target ROAA (1) Continue to rationalize expenses and improve scalable platform 2 Changing Business Mix 1.00% or higher Exit from lower yielding loans and securities and redeploy into higher yielding
Slide 21: Investment Highlights
21 Investment Highlights Recent shift from preservation of capital to driving and growing shareholder value Substantial and continuing insider ownership, approximately 30% Strong asset quality and domestic loan growth coupled with an asset sensitive balance sheet Focus on expanding domestic deposit
Slide 22: Appendices
Appendices
Slide 23: Appendix Summary Financial Statements
Appendix 1 23 Summary Financial Statements Years ended December 31, ($ in millions) 2015 2016 2017 2018 Assets Total Cash & Bals Due Dep Inst $138.3 $135.0 $153.4 $85.7 (1) Total Securities 2,055.6 2,123.2 1,777.0 1,671.2 Loans & Leases Held for Sale (HFS) 9.7 -- 5.6 -- Total Loans & Leases (Excl HF
Slide 24: Appendix Summary Financial Statements (cont'd)
Appendix 1 24 Summary Financial Statements (cont’d) Years ended December 31, ($ in thousands) 2015 2016 2017 2018 Total Interest Income $208,199 $238,827 $273,320 $309,358 Total Interest Expense 35,914 46,894 63,610 90,319 Net Interest Income $172,285 $191,933 $209,710 $219,039 Provision for Loan &
Slide 25: Appendix Non-GAAP Financial Measures Reconciliations
Appendix 2 25 Non-GAAP Financial Measures Reconciliations Explanation of Certain Non-GAAP Financial Measures This Presentation contains certain adjusted financial information, and their effects on noninterest income, noninterest expense, income taxes, net income, efficiency ratios, ROA and ROE. Thes
Slide 26: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 26 Non-GAAP Financial Measures Reconciliations (cont’d) ($ in thousands, except per share amounts Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2018 2017 and percentages) Total noninterest income $ 11,994 $ 12,950 $ 14,986 $ 13,945 $ 15,419 $ 53,875 $ 71,485 Less: net gain on sale of New York b
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 27 Non-GAAP Financial Measures Reconciliations (cont’d) ($ in thousands, except per share amounts Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2018 2017 and percentages) Plus after-tax restructuring costs: Restructuring costs before income tax effect 6,395 -- -- -- -- 6,395 -- Income tax effec
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 28 Non-GAAP Financial Measures Reconciliations (cont’d) ($ in thousands, except per share amounts Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2018 2017 and percentages) Basic and diluted income per common share $ 0.34 $ 0.27 $ 0.25 $ 0.22 $ 0.21 $ 1.08 $ 1.01 Plus: after tax impact of restruc
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 29 Non-GAAP Financial Measures Reconciliations (cont’d) ($ in thousands, except per share amounts Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2018 2017 and percentages) Efficiency ratio 79.46% 75.88% 76.31% 83.58% 79.12% 78.77% 73.84% Less: effect of restructuring costs -9.30% 0.00% 0.00% 0.0
Slide 30: Amerant Thank you
AMERANT Thank you
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