Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (June 2023)
18 slides from Amerant Bancorp's investor presentation, Jun 14, 2023
Slide 1: Investor Update
1 Investor Update amerantbank.com June 14, 2023
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 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 o
Slide 3: Executive Summary (as of May 31, 2023)
Executive Summary (as of May 31, 2023) 3 The purpose of this presentation is to provide investors and analysts with key updates regarding the Company’s current performance and outlook for the second quarter of 2023. Areas covered include: • Deposits - results to date show continued organic growth, f
Slide 4: 2023 Investor Update (as of May 31, 2023)
2023 Investor Update (as of May 31, 2023) 4 Loans: • Growth YTD of $243 million and QTD of $47 million • Increase primarily in commercial loans, partially offset by continued reduction in indirect consumer loans outstanding given termination of program last year Deposits: • Growth YTD of $447 millio
Slide 5: 2023 Investor Update – Continued
2023 Investor Update – Continued (as of May 31, 2023) 5 Stock Repurchase - $25 million Class A common stock share repurchase program in place • Previously repurchased in 1Q 2023 22,403 shares for $0.6 million (pre mid-March) • Repurchased 73,720 shares for $1.3 million in 2Q 2023 (average price of $
Slide 6: Deposit Update (by line of business)
Deposit Update (by line of business) 6 ($ in millions, except %) Strong organic deposit inflows have allowed reductions of institutional deposits amerantbank.com
Slide 7: Deposit Update (by type)
Deposit Update (by type) 7 ($ in millions, except %) Growth QTD Growth YTD By Type 4Q22 1Q23 5/31/2023 $ % $ % Noninterest Bearing Demand 1,368 1,361 1,376 15 1 8 1 Interest Bearing Demand 2,300 2,490 2,563 73 3 263 11 Savings and Money Market 1,648 1,507 1,447 (60) (4) (201) (12) Time 1,728 1,929 2
Slide 8: Financial Update (as of May 31, 2023)
Financial Update (as of May 31, 2023) 8 Liquidity position: • Strong level of cash on hand: $360 million at the Federal Reserve Bank account • Continued efforts to increase FDIC insurance through ICS reciprocal accounts • 79% of the $1.24 billion investment portfolio’s holdings have direct or indire
Slide 9: Financial Update – Continued (as of May 31, 2023)
Financial Update – Continued (as of May 31, 2023) 9 Key actions taken / non-recurring items impacting 2Q23: • FIS statement of work for core conversion • Other contract termination charges related to core conversion • Decline in valuation of a specific fintech investment given current capital raisin
Slide 10: Financial Update – Continued (as of May 31, 2023)
Financial Update – Continued (as of May 31, 2023) 10 2Q 2023 Outlook: • Net Interest Margin (“NIM”): projected 3.75% - 3.80% • Higher cost of funds to substitute terminated FHLB advances; higher cost of deposits • Core Noninterest Income*: $14.7 to $15.2 million for 2Q 2023 vs. $15.9 million for 1Q
Slide 11: Credit Update
Credit Update 11 • Increased provision for Loan Losses - currently estimated at $25 - $30 million for 2Q 2023 quarter-end* • $9-10 million due to updated macro-economic factors, mainly on the CRE and consumer portfolios. Factors on CRE indicate deteriorating price index and lower prepayment speeds •
Slide 12: Credit Update – Continued (as of May 31, 2023)
Credit Update – Continued (as of May 31, 2023) 12 • Loans increased by $47 million in 2Q 2023 quarter to date to $7.16B from $7.11B in 2Q 2023 • Net Charge-offs are $7.8 million for 2Q 2023 quarter to date vs. $10.8 million in 1Q23 (2Q 2023 primarily related to purchased consumer loans and other bus
Slide 13: Indirect Consumer Loans
Indirect Consumer Loans 13 ($ in millions, except %) • Determined in 4Q 2022 to exit our indirect consumer lending programs • Portfolio has decreased $95 million YTD as of May 31, 2023 • Charge-offs recorded on both programs YTD as of May 31, 2023 amount to $11.3 million amerantbank.com
Slide 14: Commercial Real Estate (NYC) -Detail
Commercial Real Estate (NYC) -Detail 14 Outstanding as of May 31, 2023 ($ in millions, except %) • We continue our exit strategy of the NYC CRE portfolio • Provision for the quarter incorporates updated macroeconomic factors, which deteriorated for the hotels and office segments • $24 million CRE cr
Slide 15: Commercial Real Estate (CRE) -Detail
Commercial Real Estate (CRE) -Detail 15 Outstanding as of May 31, 2023 ($ in millions, except %) % Total % Total Income Land and CRE Type FL TX NY Other Total CRE Loans Producing (1) Construction Retail $ 464 $ 163 $ 83 $ 1 $ 711 26.2 % 9.9 % $ 699 $ 12 Multifamily 336 485 122 — $ 943 34.7 % 13.2 %
Slide 16: Concluding Comments
Concluding Comments 16 • Deposits First – intend to remain focused on progressive organic growth and continued reduction in uninsured deposits via ICS program. Focused also on further improving type of deposits and expanding international growth • Executive team is now in place. Staffing optimizatio
Slide 17: Appendix I
Appendix I 17 * Projections for 2Q 2023 are forward-looking. See Forward Looking Statement disclaimer on page 2 of this presentation regarding factors that could affect expectations and results in future periods. amerantbank.com
Slide 18: Thank you
18 Thank you Investor Relations InvestorRelations@amerantbank.com amerantbank.com