Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2024 Earnings Presentation
37 slides from Amerant Bancorp's earnings presentation, Jan 23, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Fourth Quarter 2024 Earnings Presentation January 23, 2025
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 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. Examples of forward- looking statements
Slide 3: 4Q24 Highlights: Balance Sheet
4Q24 Highlights Balance Sheet • Total assets were $9.9 billion, down by $455.4 million, compared to $10.4 billion in 3Q24 • Cash and cash and equivalents were $590.4 million, down by $81.5 million, compared to $671.8 million in 3Q24 • Total investments were at $1.50 billion, down by $44.6 million, c
Slide 4: 4Q24 Highlights: Income Statement
4Q24 Highlights Income Statement • Net income attributable to the Company was $16.9 million, or $0.40 per diluted share compared to net loss of $48.2 million or diluted loss per share of $1.43 in 3Q24 • NIM was 3.75% up by 26 basis points compared to 3.49% in 3Q24 • Net Interest Income (“NII”) was $
Slide 5: 4Q24 Highlights: Other Items of Note
4Q24 Highlights Other Items of Note • Securities Portfolio repositioning completed in early October 2024 with $8.1 million in losses in 4Q24 • Houston Franchise Sale completed on November 8, 2024 with deposit premium of $12.5 million and transaction costs of approximately $2.7 million • Gain on earl
Slide 6: Key Performance Metrics
Key Performance Metrics NIB Deposits/ Total ACL / Total Loans Net Interest Margin Efficiency Ratio ROA ROE Tier 1 Capital Ratio Deposits Held for Investment 228.74% 11.36% 11.95% 1.18% 7.38% 1.15% 19.2% 3.75% 0.67% 18.3% 3.49% 74.91% (1.92)% (24.98)% 3Q24 4Q24 3Q24 4Q24 3Q24 4Q24 3Q24 4Q24 3Q24 4Q24
Slide 7: Investment Portfolio
Investment Portfolio Expected Prepayments & Maturities Balances and Yields (1) ($ in millions) 75.0 ($ in millions) $2.5 $2.6 $— $2.5 1,500 47.8 $226.6 50.0 39.5 1,000 4.73% 30.6 27.4 4.17% 4.19% 5.07% 25.0 500 4.74% 4.89% 4.88% $1,217.5 $1,476.4 $1,437.2 0 0.0 4Q23 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 AFS
Slide 8: Loan Activity YTD
Loan Activity YTD Other Activity Beginning Balance at Houston Houston 4Q24 Ending Balance at (prepayments, Loans December 31, 2023 Production Multifamily Franchise Disclosed December 31, 2024 maturities and ($ in millions) Loan Sale (1) Sale (2) Loan Sale (3) ($ in millions) paydowns) Commercial $ 5
Slide 9: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Composition (1) Geographic GeographicMix (1) Mix(Domestic) 1.8% 1.7% 1.6% 1.5% 1.6% 5.4% 4.8% 4.2% 3.8% 3.8% 4.5% 3.9% 4.2% 4.7% 4.0% 3.0% 3.3% 3.0% 2.9% 3.0% 20.4% 21.6% 21.7% 21.4% 21.3% 11.6% 10.5% 12.9% 17.3% 16.2% 17.0% 16.4% 16.2% 13.9% 20.9% 91.5% 22.5% 22.7% 23
Slide 10: Commercial Real Estate (CRE) Held For Investment - Detail
Commercial Real Estate (CRE) Held For Investment - Detail Outstanding as of December 31, 2024 ($ in millions) Land and CRE Type FL TX NY Other Total % Total CRE % Total Loans (1) Income Producing (2) Construction Retail $ 603 $ 19 $ 83 $ 15 $ 720 29.0 % 10.0 % $ 720 $ — Multifamily 296 60 84 15 $ 45
Slide 11: Credit Quality
Credit Quality Allowance for Credit Losses NPLs/ Total Loans and NPAs / Total Assets ($ in millions) 1.52% 1.38% 1.43% $95.5 $96.1 $94.4 $79.9 $85.0 1.24% 0.47% 0.43% 1.25% 1.23% 0.56% 0.51% 1.39% 1.38% 1.41% 1.15% 1.18% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Allowance for Credit Losses A
Slide 12: Allowance for Credit Losses
Allowance for Credit Losses ($ in millions) $79.9 $85.0 $2.7 $5.1 $2.5 $0.5 $1.7 $(7.4) 3Q24 Gross Charge-offs Recoveries Requirement for Specific Reserves Credit Quality and Loan Growth 4Q24 Charge-offs Change Macroeconomic Changes 12
Slide 13: Special Mention Loans
Special Mention Loans Special Mention Loans ($ in millions) $76.4 $5.4 $(17.6) $(19.3) $(34.1) 3Q24 Upgrades to Pass Downgrades to Payoffs/Paydowns 4Q24 Substandard Remarks: • The downgrades to Substandard consist of one commercial relationship and one CRE FL hotel loan with a cash collateral portio
Slide 14: Classified loans
Classified loans ($ in millions) $125.7 $114.2 $49.7 $(0.7) $(3.4) $(7.4) $(7.3) $(19.4) 3Q24 Downgrades to Upgrade Transfer to Charge-offs Sold Payoffs/Paydowns 4Q24 Substandard OREO Remarks: • The downgrades to substandard includes one CRE construction loan in addition to the two loans downgraded
Slide 15: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix Deposit Composition Mix by Country of Domicile ($ in millions) Domestic Deposits 67% of Total Deposits 8,111 ($ in millions) Avg. account balance: $135,000 7,895 7,878 7,816 7,854 8,000 $1,482 5,000 $1,427 $1,397 $1,465 $1,504 7,000 $702 $5,430 $5,278 6,000 $7
Slide 16: Net Interest Income and NIM
Net Interest Income and NIM 16 NII and NIM (%) ($ in millions) $87.6 90 $81.7 $81.0 $78.0 $79.4 80 70 60 50 3.72% 3.75% 40 3.51% 3.56% 3.49% 30 20 10 0 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Income NIM Total Deposits Beta Evolution Cost of Funds 2.00 0.75 4Q23 1Q24 2Q24 3Q24 4Q24 Cost of Deposits (Do
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity 17 Impact on NII from Interest Rate Change (1) Impact on AFS from Interest Rate Change (1) As of December 31, 2024 Expected AOCL Improvement 5.3% 6.8% (20,000) 3.7% 1,557 1,503 0% 1,470 1,435 -1.9% 8.5% 1,400 1,362 -3.8% 1,285 ($ in Millions) 4.8% 0% ($ in Millions) -8.3% 2
Slide 18: Non-Interest Income Mix
Non-Interest Income Mix Non-Interest Income Mix Assets Under Management and Custody ($ in millions) 50 23.6 4Q23 4Q24 $1.4 $0.7 25 19.5 19.4 $3.5 14.5 $0.2 $19.6 $6.5 $2.4 17% 26% $0.8 $0.5 $7.2 $7.8 $3.8 $5.6 $4.2 $4.3 $4.5 $4.5 $4.7 $4.4 $4.3 $5.3 $5.0 $5.4 0 $(0.2) $(0.2) $(0.1) $(8.2) $2.3B $2.9
Slide 19: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Mix Non-routine Noninterest Expenses ($ in millions, except for FTEs) ($ in millions) 60 120 109.7 43.1 40 $37.5 90 83.4 76.2 73.3 20 15.1 $76.7 66.6 5.6 5.7 $12.6 60 $48.1 0.0 $41.2 $5.6 $3.4 $1.3 $2.5 $39.4 0 $0.9 $33.6 $— 4Q23 1Q24 2Q24 3Q24 4Q24 Other no
Slide 20: EPS Trend
EPS Trend Change in Diluted Earnings (Loss) Per Common Share $3.00 1.92 $2.00 $1.00 0.27 $0.40 0.18 $— (0.10) (0.44) $(1.00) $(1.43) $(2.00) 3Q24 Core PPNR(*) Net Non-Routine Provision for Capital Raise Income Tax 4Q24 Items Credit Losses Expense (*) Refers to core PPNR which is a non-GAAP Financial
Slide 21: 1Q25 Outlook
1Q25 Outlook • Projected loan growth of approximately 15% (annualized) • Projected deposit growth expected to match loan growth; continued focus on improving ratio of noninterest bearing to total deposits • Loan to deposit target remains at 95% • Net interest margin projected to be in the mid 3.60%
Slide 22: 2025 Overview
2025 Overview • In 2025 our focus is on the execution of our strategic plan • The first two quarters of 2025 will continue to reflect increased investment in business development personnel to drive incremental growth, for both commercial and consumer banking • Emphasis is on accelerating our digital
Slide 23: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 24: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry (December 31, 2024) Non-Real Highlights ($ in millions) Real Estate Estate Total % Total Loans Financial Sector (1) $ 21 $ 578 $ 599 8.3 % • Diversified portfolio - highest Construction and Real Estate & Leasing: sector concentration, other than Commer
Slide 25: CRE Retail - Detail
CRE Retail - Detail As of 12/31/2024 CRE Retail (1) CRE Retail - Single Tenant (1) Retail - LTV Fashion/Specialty Center; 1% Neighborhood Center; 36% Flex Property; 1% Groceries; 10.0% Regional Center; 2% 60% Retail Storefront; 3% Healthcare; 11.0% 50% Single Tenant; 5% Car Wash; 25.0% 40% 35% 34% T
Slide 26: CRE Office - Detail
CRE Office - Detail As of 12/31/2024 CRE Office (1) Office - LTV Texas; 10% 60% New York; 9% Other US; 6.0% 50% 44% 40% 34% 30% 20% 14% South Florida; 75% 10% 8% —% 0% 50% or 51-60% 61-70% 71-80% 81% or Total: $431 million less more Loan Portfolio Percentage: 6.0% (1) CRE office loans held for inves
Slide 27: Appendices
Appendices
Slide 28: Non-GAAP Financial Measures Reconciliations
Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended Years Ended December 31, December 31, September 30, June 30, March 31, December 31, 2024 2023 ($ in thousands) 2024 2024 2024 2024 2023 Total noninterest expenses $ 83,386 $ 76,208 $ 73,302 $ 66,594 $ 109,702 $ 299,49
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, Years Ended December 31, December 31, September 30, June 30, March 31, December 31, 2024 2023 ($ in thousands, except percentages and per share data) 2024 2024 2024 2024 2023 Net income (loss) attributable to Amerant
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, Years Ended December 31, December 31, September 30, December 31, 2024 2023 ($ in thousands, except percentages and per share data) June 30, 2024 March 31, 2024 2024 2024 2023 Net income (loss) / Average stockholders'
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, Years Ended December 31, December 31, September 30, June 30, March 31, December 31, 2024 2023 ($ in thousands, except percentages and per share data) 2024 2024 2024 2024 2023 Tangible common stockholders' equity $ 86
Slide 33: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) (1) Includes provision for credit losses on loans and provision for loan contingencies. See footnote 6 in Exhibit 1 - Selected Financial Information in the Earnings Release for more details. (2) In the third quarter of 2024, the Company
Slide 34: Income Statement Highlights - 3Q24 vs 4Q24
Income Statement Highlights - 3Q24 vs 4Q24 ($ in thousands) 4Q24 3Q24 Change Total Interest Income Loans $ 128,910 $ 129,752 $ (842) Investment securities 17,123 17,127 (4) Interest earning deposits with banks and other interest income 6,885 4,758 2,127 Total Interest Expense Interest bearing demand
Slide 35: Glossary
Glossary 35 • ACL - Allowance for Credit Losses • MV - Market Value • AFS - Available for Sale • NPL - Non-Performing Loans • AOCI/AOCL - Accumulated Other Comprehensive • NPA - Non-Performing Assets Income/Loss • NIB - Noninterest Bearing • CET 1 - Common Equity Tier 1 capital ratio • NII - Net Int
Slide 36: Glossary (cont'd)
Glossary (cont'd) 36 • TCE Ratio - 4Q24 includes $39.8 million accumulated unrealized losses net of taxes primarily related to the decline in the fair value of debt securities available for sale, which are carried at fair value, as a result of increases in market rates. • Total Gross Loans - include
Slide 37: AMERANT BANK Imagine tomorrow.
AMERANT BANK Imagine tomorrow.