Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q3 2022 Earnings Presentation
22 slides from Amerant Bancorp's earnings presentation, Oct 20, 2022
Slide 1: Earnings Call Third Quarter 2022
Earnings Call October 21, 2022 Third Quarter 2022
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements t
Slide 3: Performance Highlights 3Q22
3Performance Highlights 3Q22 Business • Net income attributable to the Company of $20.9 million in 3Q22, up $13.2 million, or 172.6%, compared to $7.7 million in 2Q22 • Core pre-provision net revenue (Core PPNR)(1) was $30.3 million, up $10.9 million, or 55.9%, in 3Q22 compared to $19.4 million in 2
Slide 4: Core PPNR - 3Q22
4Core PPNR(1) - 3Q22 (1) Non-GAAP Financial Measure ( 3Q22 2Q22 Net income attributable to Amerant Bancorp Inc. $ 20,920 $ 7,674 Plus: provision for loan losses 3,000 — Plus: provision for income tax expense 5,864 2,033 Pre-provision net revenue (PPNR) (1) $ 29,784 $ 9,707 Plus: non-routine noninter
Slide 5: Key Actions of Note in 3Q22
5Key Actions of Note in 3Q22 • Reduced non-performing loans (“NPL”) to $18.7 million as of 3Q22 compared to $25.2 million as of 2Q22 • Sold NYC OREO of $6.1 million in October further reducing non performing assets post quarter end • Banking center updates: – Opened new Hialeah, FL location (branch
Slide 6: Key Performance Metrics
6 86.59% 65.36% 2Q22 3Q22 20.9% 20.0% 2Q22 3Q22 11.99% 11.34% 2Q22 3Q22 3.28% 3.61% 2Q22 3Q22 Key Performance Metrics NIB Deposits/ Total Deposits Tier 1 Capital Ratio Net Interest Margin Efficiency Ratio (1) Calculated based upon the average daily balance of total assets (2) Calculated based upon t
Slide 7: Amerant Mortgage ("AMTM")
7Amerant Mortgage ("AMTM") • During 2022, the Company has purchased $297.9 million in loans through Amerant Mortgage, which includes loans originated and purchased from different channels • The current pipeline shows $51.3 million or 79 applications as of October 12, 2022 Data as of September 30, 20
Slide 8: Investment Portfolio Balances and Yields
8 83.9% 16.1% U.S. Gov't sponsored enterprises 37.5% U.S. Gov't agency 32.0% Collateralized loan obligations 0.5% Corporate debt 29.7% Other 0.3% $1,220.4 $1,124.8 $1,052.3 $130.5 $238.6 $234.3 $23.9 $10.8 $12.2 2.25% 2.64% 3.01% 3Q21 2Q22 3Q22 0 500 1,000 1,500 88.9% 11.1% • Effective duration incr
Slide 9: Loan Portfolio Highlights
9 48.1% 45.3% 43.3% 41.4% 41.3% 16.9% 17.6% 19.3% 19.4% 18.7% 17.1% 17.3% 16.2% 16.3% 15.3% 11.4% 12.2% 12.7% 13.3% 15.8% 6.5% 7.6% 8.5% 9.6% 8.9% 3.92% 4.10% 4.16% 4.38% 5.06% 3Q21 4Q21 1Q22 2Q22 3Q22 68.3% 69.8% 71.3% 71.7% 71.6% 17.2% 18.4% 19.4% 19.3% 20.6% 11.4% 8.8% 6.5% 6.1% 5.3% 3.1% 3.0% 2.
Slide 10: Credit Quality
10 $83.4 $69.9 $56.1 $52.0 $53.71.59% 1.29% 0.99% 0.91% 3Q21 4Q21 1Q22 2Q22 3Q22 1.16% 0.52% 0.29% 0.29% 0.09% 3Q21 4Q21 1Q22 2Q22 3Q22 • Recorded provision for loan losses of $3.0 million in 3Q22, compared to no provision for loan losses or release from the ALL in 2Q22 • Net charge-offs totaled $1.
Slide 11: Deposit Highlights
11 $5,626 $5,631 $5,692 $6,203 $6,588 $2,875 $3,013 $3,076 $3,601 $3,839$1,107 $1,048 $951 $937 $926 $433 $387 $347 $366 $504 $1,211 $1,183 $1,318 $1,299 $1,319 0.44% 0.41% 0.38% 0.48% 0.83% 3Q21 4Q21 1Q22 2Q22 3Q22 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $2,635 $2,529 $2,494 $2,422 2019 2020 20
Slide 12: Net Interest Income and NIM
12 $51.8 $55.8 $55.6 $58.9 $69.9 2.94% 3.17% 3.18% 3.28% 3.61% Net Interest Income NIM 3Q21 4Q21 1Q22 2Q22 3Q22 0 10 20 30 40 50 60 70 NII increase in 3Q22 was driven by: • Higher average yields on all interest- earning assets driven by the effect of a total increase of 300 basis points YTD in the F
Slide 13: Interest Rate Sensitivity
13 304 317 325 335 344 -100 bps -50 bps BASE +50 bps +100 bps 250 300 350 400 (September 30, 2022) Fixed 48% Adjustable 52% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing Term (1) NII and percentage change represents the base scenario of net interest income. The base scenario as
Slide 14: Noninterest Income
14 $14.0 $16.0 $13.4 $12.9 $4.3 $4.5 $4.6 $4.6 $4.6 $4.6 $5.0 $4.6 $4.3 $4.6 $0.8 $(2.6) $1.5 $4.0 $3.4 $2.1 $4.7 $2.5 $0.5 $3.2 $1.0 $2.8 $(1.3) $0.9 3Q21 4Q21 1Q22 2Q22 3Q22 0 10 20 30 11% 89% 12.5% 87.5% Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income increase in 3Q22
Slide 15: Noninterest Expense
15 • Noninterest expense decreased in 3Q22 primarily due to the absence of: – $3.2 million related to an OREO valuation in New York – $1.6 million impairment charge related to the closing of a banking center and lower: – expenses in connection with the upcoming transition to FIS by $2.5 million – ad
Slide 16: Closing Remarks
Closing Remarks
Slide 17: Appendix Non-GAAP Financial Measures Reconciliations
17Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relate
Slide 18: Non-GAAP Reconciliation: Noninterest Expenses
18 Three Months Ended, Nine Months Ended September 30, ($ in thousands) September 30, 2022 June 30, 2022 September 30, 2021 2022 2021 Total noninterest expenses $ 56,113 $ 62,241 $ 48,404 $ 179,172 $ 143,154 Less: non-routine noninterest expense items Restructuring costs (1) Staff reduction costs (2
Slide 19: Non-GAAP Reconciliations (cont'd)
19Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Nine Months Ended September 30, (in thousands, except percentages and per share amounts) September 30, 2022 June 30, 2022 September 30, 2021 2022 2021 Net income attributable to Amerant Bancorp Inc. $ 20,920 $ 7,67
Slide 20: Non-GAAP Reconciliations (cont'd)
20Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Nine Months Ended September 30, (in thousands, except percentages, share data and per share amounts) September 30, 2022 June 30, 2022 September 30, 2021 2022 2021 Net income / Average stockholders' equity (ROE) 11.
Slide 21: Non-GAAP Reconciliations footnotes
21Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) (1) Expenses incurred for actions designed to implement the Company’s strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation o
Slide 22: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com