Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (September 2021)
34 slides from Amerant Bancorp's investor presentation, Sep 16, 2021
Slide 1: Investor Update As of June 30, 2021
amerantbank.com Investor Update As of June 30, 2021
Slide 2: Forward-Looking Statements
2 amerantbank.com Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, statements regarding the Company’s intention to effect a clean-up merger and the Company’s ability
Slide 3: About Us and Financial Highlights
3 amerantbank.com Domestic • Second largest community bank headquartered in Florida About Us • 25 branches throughout South Florida and Houston • $5.67 billion • $7.53 billion • Coral Gables, FL • 719 FTEs (6) • $2.1 billion under management/custody • Founded in 1979 • Completed IPO in Dec. 2018 • R
Slide 4: Investment Opportunity Highlights
4 amerantbank.com Established Franchise in Attractive Markets Pathway to Strong Profitability Significant Fee Income Platform Well-Positioned Loan Portfolio Strong and Diverse Deposit Base Investment Opportunity Highlights • Long history with strong reputation and deep customer relationships • Prese
Slide 5: Experienced Management Team
5 amerantbank.com Jerry Plush Vice-Chairman & Chief Executive Officer Carlos Iafigliola Executive Vice President & Chief Financial Officer Alberto Capriles Executive Vice President & Chief Risk Officer Miguel Palacios Executive Vice President & Chief Business Officer Laura Rossi Senior Vice Presiden
Slide 6: Growing and Attractive Markets
6 amerantbank.com T e x a s June 30, 2021 Growing and Attractive Markets (1) The Company announced closing of its Wellington branch expected in 3Q21 (2) Deposit Market Share data is as of June 30, 2021. For the current number of branches see Branch Footprint (3) Includes brokered deposits of $531 mi
Slide 7: Performance Highlights 2Q21
7 amerantbank.com Performance Highlights 2Q21 • All capital ratios are above "well capitalized" levels • As of July 30, 2021, approximately $9.5 million in shares of Class B common stock were repurchased, representing 565,232 shares at a weighted average price of $16.92 Capital Business • Net income
Slide 8: Focused on Key Performance Metrics
8 amerantbank.com Focused on Key Performance Metrics Robust Deposit Base Robust Capital Position Higher Operating Profitability Rationalizing Cost Structure Strong Credit Coverage Improved Profitability NIB Deposits/Total Deposits Tier 1 Capital Ratio Net Interest Margin Efficiency Ratio ALL / Total
Slide 9: Investment Portfolio Balances and Yields
9 amerantbank.com • Effective duration decreased vs. 1Q21 due to higher expected prepayments driven by the decline in long term rates during 2Q21 Investment Portfolio Balances and Yields (1) A vailable for Sale (AFS) Held to Maturity (HTM) Highlights Fixed vs. Floating Jun. 2020 (2) Jun. 2021 Floati
Slide 10: Loan Portfolio Highlights
10 amerantbank.com Consumer CRE Commercial and FI & Acceptances Owner Occupied Single Family Residential Loan Portfolio Highlights Loan Composition Geographic Mix (Domestic) • Lower loan balances resulting from high level of prepayments in both CRE and C&I, including forgiveness and sale of PPP loan
Slide 11: Credit Quality
11 amerantbank.com • Credit quality remains sound and reserve coverage is strong; released $5.0 million from the allowance for loan losses in 2Q21 • The quarter-over-quarter increase in NPA to total assets primarily driven by the downgrade of three CRE loans totaling $40.0 million and lower total as
Slide 12: Deposit Highlights
12 amerantbank.com Domestic Deposits ($ in millions) Deposit Highlights Deposit Composition 55% International Deposits ($ in millions) Mix by Country of Domicile T ransaction Deposits C ustomer CDs Brokered Deposits (1) C ost of total Deposits (2) ($ in millions, except for percentages) 45% (1) 2Q21
Slide 13: Net Interest Income and NIM
13 amerantbank.com NII increased in 2Q21 primarily due to: • Higher average loan yields • Lower overall cost of customer deposits • Reduced customer and brokered CD volumes • Lower cost and volumes on FHLB Advances – Repaid $235 million – Modified rate on $285 million fixed-rate advances NII offset
Slide 14: Noninterest Income Mix
14 amerantbank.com Noninterest Income Mix Noninterest Income Mix Commentary • Other noninterest income in 2Q21 includes $3.8 million gain on the sale of $95.1 million of PPP loans and $1.3 million in derivative income • 2Q21 Offsets: $2.5 million net loss on early extinguishment of FHLB advances and
Slide 15: Noninterest Expense
15 amerantbank.com Increase in noninterest expense in 2Q21 primarily due to: • Higher salaries and employee benefits due to increased severance costs • Higher recruitment fees and addition of 49 new FTEs, primarily for business lines including Amerant Mortgage • Increased advertising expenses (prima
Slide 16: Interest Rate Sensitivity
16 amerantbank.com (As of June 30, 2021) 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 assumes (i) flat interest r ates over the next 12 months, (ii) that total financial i
Slide 17: Initiatives Update
17 amerantbank.com Initiatives Update • “Deposits First” • Brand Awareness • Rationalization of Lines of Business and Geographies • Path to 60% Efficiency Ratio • Capital Structure Optimization • ESG Focused on increasing profitability and shareholder value
Slide 18: Initiatives Spotlight: Capital Structure Optimization
18 amerantbank.com Initiatives Spotlight: Capital Structure Optimization • As announced on Sep. 13th, the Company intends to effect a clean-up merger, subject to shareholder approval, providing for: – Each outstanding share of Class B common stock to be automatically converted to 0.95 of a share of
Slide 19: Supplemental Loan Portfolio Information
amerantbank.com Supplemental Loan Portfolio Information
Slide 20: Deferrals & Forbearance Update
20 amerantbank.com Deferrals & Forbearance Update • 4 customers remaining totaling $54MM or 1.0% of total loans vs. 21.4% at 6/5/20 peak • All in CRE NY: 2 CRE retail $41MM, 1 CRE office with ground floor retail $8MM and 1 multifamily $5MM • Decrease compared to Q1 2021 due to 2 CRE multifamily $7.1
Slide 21: Loan Portfolio by Industry
21 amerantbank.com Loan portfolio by industry • Diversified portfolio - highest sector concentration, other than real estate, at 10.2% of total loans • 77% of total loans secured by real estate • Main concentrations: CRE or Commercial Real Estate / Wholesale - Food / Retail - Gas stations / Services
Slide 22: Industries with Escalated Monitoring: Travel, Entertainment and Dining
22 amerantbank.com Industries with escalated monitoring Travel, Entertainment and Dining Very limited exposure: • Arts, Entertainment and Recreation $10 MM (0.2% of total loans) - $8 MM Bowling • Restaurants $42 MM (0.7% of total loans) - 46% Limited-service, 20% Full-service, 35% Other • Aviation $
Slide 23: Industries with Escalated Monitoring: Commercial Real Estate
23 amerantbank.com Industries with escalated monitoring Commercial Real Estate (CRE) CRE Type FL TX NY Other Total % Total CRE % Total Loans Income Producing (1) Land and Construction Retail $ 603 $ 192 $ 282 $ — $ 1,077 39.6 % 19.3 % $ 1,069 $ 8 Multifamily 277 294 295 — 866 31.9 % 15.5 % 658 208 O
Slide 24: Industries with Escalated Monitoring: CRE Hotels
24 amerantbank.com Industries with escalated monitoring CRE Hotels (As of 06/30/2021) • CRE Hotel portfolio is limited to 26 properties, majority of which are in popular travel destinations such as Miami Beach (#9 / $106 MM) and New York (#2 / $76 MM) • Three hotel construction loans to borrowers wh
Slide 25: Industries with Escalated Monitoring: CRE Retail
25 amerantbank.com Industries with escalated monitoring CRE Retail (As of 06/30/2021) • Florida and Texas are focused on neighborhood shopping centers or service centers with basic needs related anchor stores, as well as the retail corridor in Miami Beach • New York is focused on high traffic retail
Slide 26: Appendices
amerantbank.com Appendices
Slide 27: Appendix Summary Financial Statements
27 amerantbank.com Appendix 1 Summary Financial Statements (1) Includes debt securities available for sale, held to maturity and equity securities with readily determinable fair value not held for trading. FHLB and FRB stock are included in "Other Assets" (2) Includes the effect of adopting ASU 2016
Slide 28: Appendix Summary Financial Statements (cont'd)
28 amerantbank.com Appendix 1 Summary Financial Statements (cont’d) Six months ended (in thousands) June 30, 2021 2020 2019 2018 Total Interest Income $121,502 $260,554 $312,974 $309,358 Total Interest Expense 23,962 71,002 99,886 90,319 Net Interest Income $97,540 $189,552 $161,826 $219,039 Provisi
Slide 29: Explanation of Certain Non-GAAP Financial Measures
29 amerantbank.com 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, Core pre-provision net revenue, ROA and ROE and certain other financial rat
Slide 30: Non-GAAP Reconciliation: Core Pre-Provision Net Revenue
30 amerantbank.com (in thousands) 2Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 30,421 $ (1 ,722) $ 51,334 $ 45,833 P lus: (reversal of) provision for loan losses (5 ,000) 88,620 (3,150) 375 P lus: provision for income tax expense (benefit) 8 ,083 (2,612) 12,697 11
Slide 31: Non-GAAP Reconciliation: Core Net Income
31 amerantbank.com (in thousands) 2Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 30,421 $ (1,722) $ 51,334 $ 45,833 P lus after-tax restructuring costs: Res tructuring costs before income tax effect 4 ,404 11,925 5,046 6,395 Income tax effect (945) (7 ,187) (1 ,001)
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
32 amerantbank.com Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d)* 2Q21 YTD 2020 2019 2018 Net income (loss) / A verage total assets (ROA) 0.80 % (0.02)% 0.65 % 0.55 % P lus: after tax impact of restructuring costs 0.09 % 0.06 % 0.05 % 0.06 % P lus: after tax impact of total spin-of
Slide 33: Non-GAAP Financial Measures Reconciliations (cont'd)
33 amerantbank.com Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 1Q21 2020 2019 2018 Tangible common equity ratio: Stockholders' equity $ 799,068 $ 783,421 $ 834,701 $ 747,418 Less: Goodwill and other intangibles (22,505) (21,56
Slide 34: Thank you
AMERANT amerantbank.com Thank you
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