AMTB - Earnings call 3 2023 | Amerant Bancorp Inc.

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Operator

Good day and thank you for standing by. Welcome to Amerant Bancorp Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I'd now like to hand over conference over to your host today, Laura Rossi, Head of Investor Relations and Sustainability. Please go ahead.

Laura Rossi

Thank you, Liz. thank Quarter joining XXXX and Amerant to everyone, Third Bancorp's results. morning, you us for review Good On today's President call Executive Officer. Officer; Gerald Plush, our Sharymar our Chairman CalderÃ³n, Executive Vice and Financial and Chief and Chief

we forward-looking within Act. contain As today's Securities of statements please discussions the note on begin, call the meaning Exchange that

for of references addition, to made forward-looking company's CEO, financial release earnings be as the will GAAP statement statements financial measures. regarding reconciliation chairman Plush. Gerald non-GAAP over now In to also information well to measures turn as and for non-GAAP to will refer measures. and a I Please our it

Gerald Plush

to Thank made Third you, Earnings to Call. the and thank Good today the everyone, happy period. Quarter everyone progress continued you update for during on we XXXX morning, joining We're Amerantâ€™s here Laura. be

deposits, rate-sensitive to flight deposits provided the sources presentation, on during growth, reduce on enabled sheet shortly. We've and composition, that third detail included therefore, information improving and deposit balance institutional very and of earnings focused are quarter, prioritization to today's in which organic in which So subject go of which more us highly the into types continued the granular we higher-cost I'll risk.

and reached work sell continue and assets, the closing also portfolio, today.We discontinued sale, real reductions credit New loans is now We and in place the York scheduled further with take to you'll agreement into that marketing estate entered our exposure in an for we've owned. to held City largest to single in our on see stage nonperforming that

provide well. conversion and upcoming time that shortly considerable as the spent core also on in I'll November, and information on more We energy

the which excess like as asset And And down lot upcoming expect cover fourth driver we deposit overall while as will be Shary key advances. very size as in progress on million and mode we and an fact, of quarter-to-quarter. flat pipelines growth hand not back deposits in We So Slides. And $XX remarks. which already month of our asset loan we've loan fronts, was XQ. date, cash $XXX in many the of resulted a net million her we in our an which decreased as booked in yesterday. recent in and fact, for quarter review strong, this increase a was size made growth production $XX the to periods, quarter from on were relatively will loans using has cover loans in to million pay quarter to The aside, in are this later in

So quarter let's X, lower loan was to This was we in the our we compared provision quarter, funding financing. relationship-centric 'XX. primarily non-depository originations costs recorded renew basis a million was here prioritize and compared third the turn originations substantially last was interest highlights. of pursue to by primarily reported than as increase losses was XQ the driven on we and X.XX% The XQ provision lower Net This in $X.X driven and to summary credit for company XQ $XX.X provide we to the income attributable in million Slide lower points net higher. few originally to margin or a higher-than-expected expected. continue not as X.XX%

XQ we 'XX. again, to So $XXX compared asset back size, to million decreased

and considered and minimum part be liability million, made continue company's well last our XX, were decrease billion well billion loans the XXXX. strong Loan to excess last $XXX deposits compared the of XQ asset $XX were decrease total in flat to billion capitalized were due advances $X.X of gross quarter, as to Our quarter.Federal the as our in Bank in $XXX to million and be a billion, capital XX% million of XQ a $X.X of of $XXX or we $X.X Home million The relatively to compared management. September prepayments 'XX to $X.X regulatory levels requirements

tangible September Our common at X.XX% of equity ratio strong as XX. remains

our mark-to-market from the per tangible available on XX, the And regarding As during cash for portfolio majority is XXXX. investment then paid $X.XX more We'll we August deducted share the dividend capital capital portfolio sale, ratio of this is common on stock into announced quarter, get quarterly and the lastly, previously shortly. we of repurchases. Also regarding classify detail equity. out

what a per let's have under $XX price And we've as of share turn book stock we of capital of program end.So price regulatory quarter. know, X happened an common average our prudently was X.Xx can minimums. program common at to our you and quarter transition and to use in XQ, to this stock price relative at shares A repurchased outstanding you now at repurchased X, during share value. here, that an repurchase average year-to-date, to Slide in And look can Class take program, $X $XX. share shares repurchase million $XX or see place. remaining to show shares $XX a position As we XXX,XXX and of million for Availability Slide the continue we XXX,XXX you during We million million we'll $XX

our ratio our and XX.X%. XXXX, total at As was of capital CETX ended XQ XX.X%,

And end.We in a at And reference capital book ratio, adjusted for of equity valuation share AOCI ratio for our after-tax to change at deposit per and an impact base. of also resulting adding common what of an here million in $XX quarter portfolio result the tangible value includes also our losses the tangible look held stood impact, purposes, relatively Slide and maturity XX.X% our will give overview as to small of deposits would from included. it's we which X tangible which take X.XX%. was the a X.X%, you portfolio million on common of of TCE, show tangible now adjusted on from regarding does unrealized and ratio, Our held-to-maturity $XXX the to equity that

deposits we'll committed just time, maintaining as $XXX $XXX management. of Bank our a were ratio deposits partially institutional liability quarter. $X.X note, to we million. and $XXX with deposit reductions noninterest-bearing X- a quarter which see time and total customers increased third higher deposits deposit And and again, of previous by note, And as asset X Federal composed Home of to by to Note million mentioned, $XX you time which reduced million were at diversification million, that Our by stability Slide end million on in and Of look X-year million. which increased $XXX $XXX see, XX% growth million, down amount I international course, at organic that's enabled includes strategic brokered part by returns loan the current deposits increase of down we obtain as the we driven funding, of and the target customers. million, can deposits. not deposit the advances was in $XX decrease very from continue was to Please of to deposits deposits, our by the as, And domestic have this slight at of billion, at the turn of This the to in however, and $XX at quarter same exceed this to we'll of look primarily end. remain it's move to in was higher-cost time XXX%.So portfolio.

deposits, previous for as $X.X for $X.X the that's X% account $XX million, of domestic totaled deposits third of deposits, quarter, totaling end the total of million compared account XX% down quarter. quarter of and the our the now or total X.X% XX% or international to to $XX billion million Our and up compared deposits previous which

Our X% granularity previous domestic infrastructure XX,XXX base.Our of accounts as of reflects our this deposits average of with $XX with The deposits billion noninterest-bearing prior a our previous capabilities our previous continued billion source. XX% $X.X stability deposits billion gathering core of accounts funding pricing deposits include deposits to $X.X $XXX,XXX, efforts of an our quarter, by up of up XX% deposits, and billion an or XX,XXX, in quarter. size given demand relationships. deposits as the international $X.X we in driven despite deposits, approximately X% $XXX quarter, deposit deposits, market core money or XX,XXX defined customer in base while million in the in the savings $X.X primarily calls, more funding down of to quarter, million institutional advantage prioritize total billion third interest-bearing shared adding And while previously I average deposit the excluding size quarter. line I've versus and reduction to over compared rate $XXX to the of higher in our source the referenced referenced take versus diversification which and $X.X X% previously and are decrease intend in as a as deep and to and of end favorable or the were customer the demand, previous included international emphasize more funds also compared for million all-time with or to products

to point, other more sheet will go to over turn in going key this detail. Shary, third for balance things results the who at and metrics, So over I'm items the quarter

Sharymar Yepez

and morning, you, good Thank Jerry, everyone.

position share and will our financial on colour I presentation, more performance. today's of part As

previous compared So deposit in market to in turning demand to positive increase to and the higher accounts. the reflects the Slide compared performance as our quarter. trend value efforts relationships and despite also interest total quarter. markets deposits our X, increased metrics This of by to to in to deposits Non-interest XQ key and efforts our I'll and discussing deposits focus the bearing our changes all This customers of seeking XX% first begin speaks last their rates the competition. building XX% to challenges

was and XX.XX%, higher last XX.X% the we performance this were lower XX.X% and core ROE onetime at period.For more charges efficiency, ROA, can and the quarter, consistency easily quarter ROE underlying X.XX% a transparency, excluding see as the the quarter. items, provision metrics you ROA during operating so Our ratio and for and efficiency to of and respectively, show result compared of X non-routine

ratio efficiency this, include to we charges. and be occur used until applications As services conversion use early efficiency in which excludes place. parallel therefore, XXXX of complete QX and in XXXX. applications of of non-routine temporarily to expect to certain early the of costs XXXX, Due in This with a costs. results XX.X% compared applications parallel first in commissioning applications will the XX.X% these reduce after also higher new full quarter 'XX, until we current an core example, for These

decreased the in Lastly, to credit allowance to result a losses reserved. of loans to X.XX% previously charge-offs for compared of X.X% the as total coverage XQ

for X, X.XX% the unchanged evaluated our coverage from reserves Slide individually Continuing discuss XQ. loans excluding stable I'll on investment However, remained to at portfolio.

investment the which securities billion, to to of compared compared Our was as longer prior portfolio $X.X model slower the X.X extended remains to anticipates balance at and due has therefore, the third the rates quarter mortgage years quarter, to When quarter. unchanged previous investment duration prepayments. the duration higher

I the did of would available valuation discuss rates we interest quarter, the impact of on As for to last sale. debt like securities

the market decrease that XX% of had market sale debt a in portfolio the approximately as third of of financial debt valuations. our investment value by in after available a It tax this driven to our $XX.X higher decrease securities million rates of million 'XX. institutions compared $XX portfolio subordinated quarter. million the rated end result of has is This to by during for important of issued securities was As while guarantees the $XXX decreased as of XQ XQ third portfolio grade.Also, rising of the note compared September, government this in to most quarter, are $XXX remaining corporate million

done by $X.X to to commercial portfolio, tighter requirements $X.XX sale the the on decreased securities of This XQ. given down relationship-focused an Continuing and about residential 'XX. loan Q amount into banking single-family driven loans XX.X%. million loan decrease Slide with The loans billion $X.XX and portfolio, and originations. private XX% held-to-maturity increase billion increase decrease XX% This $X.XX loans compared QX. during for The the at was portfolio quarter, XX, to was were billion noticeable talk credit available in into compared $XXX billion, million At X% $X.X yielding total to purchased compared quality originated XQ was which of customers billion end end slightly total while investment represents Our higher originations of million, portfolio primarily third the million $XX.X $X.X the of $XX prior the represent in to primarily billion, $XX quarter, for approximately other a reduced portfolio. the periods. in includes to let's gross million a yields million includes strategic which $XXX were technical â€˜XX loans, relationships.Consumer indirect as or of quarter-over-quarter. in $XXX move us were of This

are of We next not current off and since will on organic portfolio purchasing As speed, growth estimate end over prepayment we new have focusing run the years. we production at any been mentioned this quarter, last that the few XXXX.

for During our upon New run New balance our facilities. at XQ, allowance end have of held to XQ, of transfer.This City for net also the Theory as York of $XXX $XX.X of was in Theory highest and continued we portfolio. York and the exposure later of portfolio transferred loan for valuation sale New investment XQ our recorded million Theory million and today. off facility sale resulting million this a We we XX portfolio held The scheduled a $X.X City single had of allowance York consisted City

mortgage to held million in million for in $XX connection Amerant compared quarter. previous with $XX had We also sale the in loan

recent to that our these loans with portfolio, to in connection shared events is note Given limited. is national credit industry exposure important it

in the these approximately half X.X% we XQ, to of loan note Also, XX, for relationships national let's take have had a of As sale just loan credit at borrowers that $XXX This mentioned. closer includes total Slide it is shared quality. the us.Turning with held to portfolio. important amount million look I credit, of CRE

million Our quarterly of which million and million to remains strong. million at losses quarter. These coverage and X.X% sector quality the a million quarter, desegregated in liabilities. charge-offs, specific due provision and was competition of the is previous XXXX credit quality by $XXX,XXX due third and contingency, mention added comprised cover in to $X.X those were disclosures due reported We losses important implementation from decrease end of the impact periods. is allowance a to $X.X the requirements The XXXX, loan reserve other credit for offset $XXX,XXX credit which of $X.X consistent and people the of is the recovery.It in credit to provision previous that for for to with of volume changes the credit third provision at the $XX recorded $X quarter sound provision close to for quarterly now release release million, $XXX reflects losses update for credit

During and the which reserved $X.X to million quarter XXXX, already prior consumer loans, period. $XX.X $X.X in million $X.X This by net was $X.X of recovery. were related related third were offset million, been smaller charge-offs indirect of multiple of had loans were commercial the million of there which in to million

basis quarter. due Our nonperforming last end XXXX. second to decrease in basis nonperforming quarter loans compared to total loans points to are down basis $X.X to was primarily points the $X.X total of sold, and to 'XX, the mentioned, closed The pay-downs due at the million nonperforming to due to points of due loans X.Xx This basis last of XX the from charge-off quarter from compared quarter, XX million end of $XX.X of third a at at up and XX the of decrease close to XXXX, assets from assets year. reserves million coverage assets due to XX $XX XQ of the down to down upgrades.Nonperforming $X.X Xx, last the In million and at primarily quarter totaled X.Xx of ratio loan million of the to third the points, loss quarter ratio loans NPL. was third

loan As supplement quarter, CRE in we up from detail. Slide section we our further brought portfolio XX did last discuss our to

strong each based average and XX% worth sponsor. We well sponsorship X.X years AUM, have on of tier debt experience coverage and a as to value for conservative weighted loan profile service of of as net

portfolio top loan end concentration recognized and CRE and tier no tenants Major in have of the pharmacy, top total. stores, XQ of XX% XX% of our banks. grocery the of in we as regional include had food our tenant retail borrowers.We portfolio significant As clothing and national CRE 'XX, the represent tenants XX retailers

been by key for tenant our their coverage variety rates interest ratio, vacancy risk over retention. that a service sensitivity rising underwriting swaps, protects for Our via CRE portfolio turn, environment. debt them which against the analysis in of of like rate interest has note includes hedged Please factors capture CRE impact borrowers XX% methodology and rate and

and discuss income to reprocess compared the third the quarter interest interest-bearing for average net by balances and X% rates net Net total on or of deposits. was average and time higher higher million, advances $XX income Slide customer interest I'll both officially interest margin million liabilities Next, down decrease XX. for previous total quarter.The was driven primarily $X on

we had the of current of at current As time transactional via deposits repricing that increases rates higher XX in as during interest beta increase effect repriced market higher to rates deposits, combined balances quarter, the the well rate as continue experienced market not rates. and profits

of XXX beginning the previous basis a XX the beta rate As on cumulative you of in quarter-on-quarter a to XXX points basis around of points interest basis see can quarter. we observed graph, on the but compared cycle, approximately since the

to Moving interest on net margin. the

the points for had and deposits our third higher NIM as lending mentioned, basis we saw This quarter Jerry guided than X.XX%, originally by closings quarter relationship-focused we lower-than-expected on loan slightly was XX As first during down based the practices. was quarter-over-quarter.

final continue be higher for market some additional domestic to rates. and I'll interest XX. expect NIM rate given sensitivity for deposits the Slide provide We remarks.Moving pressured on colour demand on on competition in substantial my to margin to

restructures sensitivity can sheet repricing You our of our XX% floating with year. the XX% a and of asset balance see having within loans

continue in adjustable rate cycle have rate originating a incorporating by to for said in we floors change when loans. we previous calls, portfolio As position our

rates. currently we our of adjustable XX% with have So portfolio loan floor

SOFR. variable indexed the loans, within that to XX% Additionally, you can rate see here are

Slide the additional our to portfolio negative Our to stable would I quarter. had to of sensitivity continue like previous place to to valuation bank NIM taking ability our profile balance sheet the extend compared looking and changes. AFS include term actively remained quarter We sensitivity showcase take expected million our in by million quarters. in quarter easy policy the the the in a in our improvement into for XXXX. discussed was monetary or short down XXXX. moment from XX% been year.We earlier not AOCI, to revised lower as expectations from market third the which $XX The of to non-interest will discuss motor organic is regarding change result previous $X.X amounts manage than in Continuing position in second in XX, best of $XX income XXXX the million, to the remainder

As week, $X.X were member of income a was The driven This policies assets, by while of $X in offset partially million the higher-yielding team participation. due note, transactions market higher program life million $XXX of the extinguishment of the income to driven corporate advances which loss compared FHLB and referenced lower by reinvest $XXX and loan from net decrease noninterest second saw market quarter.This driven earlier, in was restructuring valuations. noninterest with was of or new same by the sale. When million debt net by decrease assets the the XX.X%, in level approved million also early billion valuation. as primarily X and million items. increasing derivative connection the insurance ago, available this on of lower an as primarily higher income derivative and Banco new we were banking non-routine lower $XX assets quarter, the the of income. decrease mortgage increase management Amerantâ€™s surrendered of we X.X% third gains a primarily company or down to and year quarter clients totaled with end $X.X higher under sale volume the absence of security for Of

year We in expect of periods. future approximately $X earnings per improved million

million, the $X quarter Turning to $XX.X were expenses from XX% XX, down third second million quarter. Slide or noninterest

of well that as XQ earlier, expense this partnerships call many consulting connection included the decrease covered FIS engagement professional expenses the that result as are connection quarter quarter with these core of items and $X.X of primarily related a quarter-over-quarter held our As teams absence professional excluding non-routine the noninterest lower expenses were sporting XXXX.The of considered in services loans for with in were expenses newer in into resulting from partially Q this The million loans driven held with in primarily Jerry quarter by fees of expenses additional loan was advertising we 'XX. and noninterest the of longer sale. that in items, the as transfer were our was to in absence as longer lower valuation with expenses to center CRE campaigns no offset the expense investment million $XX items, based for no by from decrease needed the third of

$X.X bank from In ended XX% we are terms of to XXX FTEs, and mortgage.On had XX, focuses of XQ with 'XX, XXX our Amerant that employed slightly On Amerant negative with XXX had note, on let's stand-alone in by consistent a mortgage. XQ. in members, we a turn Out quarter basis, by mortgage team, million lower the of the results. MR XXX the Slide was which XQ PPNR which

Amerant mortgage excluding XX%. to efficiency from activities Our the improved from ratio, XX.X%

XX, and third originated approximately in the colour rate mortgage. as locks. the next as are with shows Amerant provide million or some in bank's applications pipeline quarter, to $XX loans The XXXX, quarter. customers And process the $XX the these $XXX million on million on and noted to related And in company expectations relationships. During Slide, through of for current XXX purchased October our

growth $XXX we to to strong. our continue Regarding grow sheet estimate balance to million We deposit growth, $XXX million. foresee and be between

clearly, We cost net expect to will for our further quarter, maturities deposits, the to degree wholesale a including we decrease fourth higher renewing but funding, than in XQ. lesser loan over continue and XQ.Given any NIM use to to in reduce competition the deposits excess in growth institutional

additional in significant on to board maturities current and the between there previous are the time one growth as pursue a new cover relationships. the customer intend XQ, lower. and average rate as quarter's is While deposits we we noted there this continue products of to in was to significant gap on emphasis results, Also, noninterest-bearing

we income, it similar levels. Regarding to be to expect XQ noninterest

expenses to nonrecurring operating expenses include expect to We conversion. the upcoming related

Note are services must FIS currently While throughout we parallel XQ in finalize there conversion. that discontinued that with will systems decommissioning Q and the of after services new in utilized first that be XXXX. run

losses as mentioned. for expect provision growth, now $XX expect we it previously asset be to around do I in Jerry. Finally, to credit I'll as next million pass quarter or back we

Gerald Plush

Thanks, Shary.

before I upcoming this we thought, So mentioned should conclude morning, the you give call. update I that the presentation earlier the an on in conversion first, we

with So on here first place in which take we Slide for will on November. track XX, the start thing and our early most still important, we're to FIS, conversion

well-known with we that move Our state-of-the-art recognized result items rededicated will system will of that the the year-to-date We've platform the is completed this, applications primary network, supporting fully on going and branches be recently strengthening cybersecurity locations. which ecosystem to financial in complete that here, exceed all to a financial I've quick other themselves couple feel in create and in modern customers services.And a confident Amerant and efforts look common very have in course, refresh objective partnering year-end. this focus infrastructure. in a update listed essential to and of significant and information in of X integrated core believe and our stack, will of We'll adequately though of our and team and to And our a experience more security and completed members entire the all a physical simplified is transformation provider solely have for to things, turn before expectations the We're services above growth. give the here technological the even on company's will transition provide on. and a will X to

in We we'll Edgewater, is headquarters in location Slide, Felipe in which give of new process, to on County, the in works downtown Oaks it have have we Downtown and our occur awareness.So the currently brand marketplace. And Houston here consolidation we coincide in opening several with in quarter, we Las have the will the update show place Fort Plantation in as partnerships Florida announced, and on locations Tampa, River and The an will Lauderdale Tampa regional both fourth Miami and San our our enhance in Olas, branch. we awareness. to downtown Broward of in brand Miami the this and then previously in And new Florida Florida. and support key so turn in

multiyear of branding into the with with University extension hurricanes, additional the which Miami announced our During opportunities. we quarter, of partnership significant we a comes entered

We for also Panthers us partnership back are national on naming the our build of gave sponsor already as traded improved focus Broward strong partner Florida with the in rights, which rights We now Bank helmet regional rights. the much Amerant with County. we exposure naming

We We the other plans arena the deals. Broward naming expansion our for marketing result these as partnership with of and our also as believe please partnerships we new markets position step unmatched County that brand agreement Ameren announced these owned rights view part note there. of the increase do and a serve. business growth in of And recognition recently strategic to a as that we not of expense any the expect

today. where give So of a are on closing couple remarks I'll we

the attracting Slide, last to can to you nearing members to excited team add on we've team We're right set, team here So we we're people here, end quarter. business the of existing strategic our our the development of the if to commercial experienced note, phase. to complement the and in more transformation our And leadership executive remain fourth turn focused see you objectives. achieve have continued

are to new the to locations FIS, our completion. will mentioned, initiatives. the provide we're technological transition mentioned, which support just our nearing just be As completing I platform And growth to going planned as also I

other regional footage Newsweek's by will headquarters, fourth note XXX one year. Tampa, in Bank time, year, corporate So of locations please the quarter an new recognized reducing Oaks, the Lauderdale, that second next workplaces. the say downtown will subleasing most in banking of at exiting space centers consecutive or we're we was our as happen early be in lastly, top quarter of Amerant the or square loved 'XX offset.And for as proud same of either But to Miami, very River Fort first in which that much

take for move again dedication, my just team thank say we members before to their Q&A, So you to want and energy quarter. Amerent to I once all a this again effort of moment and

answer I'll I questions look have.Operator, Shary open will with the and So please line. stop, you that, to any and

Operator

instructions]. [Operator

Our line first with Rose James. from question comes of Raymond Michael the

Michael Rose

next better the down obviously for. annualize looking in were a So was pretty think step as tone I that, expenses about If kind year. we sets of good core we it than

think conversion just you're efforts the fourth bit Just that's are more a as expenses the will about But think of quarter, help we we been the as and over and rewards past from elevation down I years. the think think, given begin term in of happen of about work so the there. little couple and us to done about FIS understanding next near maybe just year, winding to reap transformation the going expenses

Gerald Plush

running quarter. The sets fact that elevated. to really will both So that bulk and to base of going thing related I Again, mean, our is to is be that's expense existing applications, parallel, both the note new the of be for we're right? important will that be the the

dissipate something that And from will of in in second a later the and the is, perspective, quarter part the quarter year. fourth so of no of quarter, certainly lot our first next that respects, for starting than

And new, really fits hoteling, And part be about think the other I'm expenses The his that I when of forward, going could see comments the like Shary's are to see are on are we an going doing of out the to to an looking been facilities here swapping I to or with you we're continuously think and you is some increases. on. hybrid certainly, frankly they're you'll to decline. said back. marketing we've offset mind, with around, in made, looking that Carlos well something going doing going not tirelessly work be working thing up really think that initiatives, the those the elevation. about using overall about forward, things core some at that at were the be I with We've talked expense. going is base as bump expense things something and that pare you're we're going not hope Amerant. not tell going So I our team comments Look, of model we remark, to are same give that mostly working expense, that do things them.So opportunities the which to there's expecting to

to but lot I an continue a increase expenses as integrated things other expect reduce are there better there's is and technology efficiencies that. much what parts we benefits technology moving of think is in know around an increase, So to throughout that no tell the do we're as will And in to you gain would XXXX going we to expense. additional having absence, stack. we I start a There be we're there see looking of to there's and

Michael Rose

point leverage? where Is guess as fair year? a a it But kind And hit putting operating assume goal together, the half that that obviously, rates. we back we realistic as move we on year, move about next the is headwinds all we'll then think I here positive just start of think I through the to it of to achieve year, through some still

Sharymar Yepez

It is Michael.

So we're at there's when either we that it. the close environment consensus right to I think the now, think or peak about

the it's on lower pricing noticeable are to more fair will inflection of when that about be on we a think would So of or say and the as subject trend, that, of that we of have think the I irrespective different impact the to the downward starting views that cover pressures although maturities that NIM the in there cap upcoming even the XXXX. timing those be we quarters, on repricing, to can an of point speed

Gerald Plush

add our rate earlier cash made I about to pressures, looking a ways the obviously, mean given side the pressures and just competitive Shary talk Committee, continuously for I virtually lost on to comment that, we the there's be and Liability at about and Asset on It the I when in reduction used team deposit treasury excess ALCO shouldn't should And things. have said, the look that meet Michael, our spread. Committee anyone offsets. to being We're no

One part we're and absolutely teams are as are and can And is where cognizant. though, relationships noninterest-bearing. very new in obviously, jump hopefully, existing of noninterest-bearing trying also the more has of signs, share gain see more up really I a the actually our deliver intended everyone in to starting think, to that we takeaway as And of and relationships relationships. going there.So additional back we're encouraging

I Shary certainly somewhat peaked the the loan like said, think, as near peak. yields they've this at or stage look

we've cost are the stuff And for those now. only And cheaper rates liabilities. brokered it's you than people could and shorter-term are added right on duration frankly, tell, deposit so the And that side. incumbent even paying on and as really us

might not as of that's a about as NIM drag So one going forward. you the as think much think

Michael Rose

bit, TCF see up to seems me, good little this see just just it's little bit finally And capital good a quarter. for a to

You utilize continue buyback. the to

below You're authorization. still tangible trading book, still

buyback your here that a thoughts Just wanted of the just the there balancing perspective. headwinds out to get from from of near-term usage on some are and capital

Gerald Plush

all of our levels We course, need all the to continuing certainly, of look we've our one is talk approved are in like that those. continued, at buybacks the time, upon to view capital do standpoint. pay the In capital about the board certainly others We valuation-wise. Obviously, where toolkit, that growth like tools you by we that some sure I'm don't is are our capital-wise. this is are where dividend, view from everyone. we need we of we and agreed a But like do.

how or utilize nice a how we million. right? think, is manage not back and it's the one what's again, tools to the be just that's that being use set that full is I it things, restricted So right? all of And view --Our we for having And growth combination act. to or balancing not going to so these going about a of nice other we're it's $XX at how to are what we're dividend, not the by expectations is to and going on the growth. It's way, pay sake. growth, capital It buyback that profitable be the grow add our quarter And we authorization, a this obviously, growth for we going for to

we be look to the to don't forward of all value buy that to completely to need when view agree We want that plans we have. Our say, do we we these of to opportunity those standalone. levels that Needless at you're you below look running I that sort one of in know, support But things back. just going is growth at book provides them. an

Operator

Our next question comes from KBW. the line of with Brady Gailey

Brady Gailey

less So XX for XQ was could margin in wide some down more basis the range, be guidance down do to will for mean, bottom there in way that range XQ? 'XX? as downside just expansion any points. as that's about think Is that XQ think And XQ you year? interest far a and you pretty titrate be I than the NIM see the next XQ, given net could Do you there being

Gerald Plush

comes Look, aggregators. just think Look, I top the say that and out, where the competitive for lot down I'd run talked of from like that on we're everyone, institutional quarter just We've kind is yields putting about purposes. this costs asset think to I deposits. a all deposit stuff continue right putting we've on, not

range and to midway. expectations to be that it's going consumers pressure. on in funding going demanding, that, Whether I somewhere depend costs are much the would to is within offer you to continue going is there's pressure not more domestically.So just And to what something even going that there's be in now, be you remains I lower Our and doing really yes, are to between that as some. it's and on The could that course, ability us frankly, given what result to something seen need what be Shary specific. be not view dramatic. that is is, that. of we I going to certainly to more supplement to think be bearing we a right to on of definitely tell to our generate that's why really think very say wide I range we're would cost have lower think noninterest certainly going flip I it's international side

I have market just that but that's the It's quarter a is this given there's yes, inevitable our I know be in the we So in range, 'XX of another going I period where absolutely, condition. everyone we compression. think to think wide some expectation level it's marketplace, where

Brady Gailey

loan want But you to peaked because but make CRE like yields loan And is could repricing above flat thought the that continued, have that from yield saying just has heard then and especially I make higher, sure I some maybe wanted quarter. to see mean Iâ€™ve would great a you you dynamic would right, I I that think have peaked. know linked know I And I comment understand I yield there sure X.X%. well has was average the loan yield. your flat drift that's about yield your yield the and it's higher, loan you're been loan loan here?

Gerald Plush

the that organization. is increasing think yields, fact I Look, an been driver our loan in been view biggest has we've asset-sensitive the

positive been so higher bigger driver production. has And the that rate new the been that's versus

some also things, production. that stuff and we're will $XXX upside be, sure? way as can I the we we're better meaningful come to been positive flattish,â€ if million into But we enough you that have is, fourth view But higher give be to of to, say are mix rate you I $XXX a be will looking quarter.â€ that that production, that production, really the portfolio. pop, quarter. there. maybe see play way still part should question, It's as better is for book going at production view may that, other million, to we I new you know right give â€œHey, fourth the it think have to that yes, there net there'll it's is, off in will new I the some think the make my asking absolutely a Do just come more opposed which don't think the will telling repriced a than You're in believe continue asset-sensitive depending to that of, off â€œWe on improvement of it really flattish issue there's

Brady Gailey

in the the any rate? then the run million forward? looking positive of XQ was of $X surrender all And BOLI a and Or benefit, kind is that that

Sharymar Yepez

a It's positive forward. looking

forward. fully We going in expect that yield to materialize XXXX

Brady Gailey

out ROA then there. me, the we have know picture I target X% And just question. bigger for finally a

not You there as is updated not level far everywhere. pretty I the even could any industry year-to-date year, at year. when that mean much maybe profitability as on that that last know near guys were under but one. timing you And level I thoughts is But this either. pressure hit

Gerald Plush

Yes. track in absolutely on back XXXX. Look, to expect we be

And to into around had this the great really go think that the lot on we is time, considerable this. of expense additions we've with the runway the support do going just additional been a initiatives this XXXX. we've for other all view to clear with comment our I done core team conversion. organization, as going getting into as talking us getting I about. we've energy want There's and is an is been

you that, have people positive have from the So already team. you to you of the past my that's I And think that us. get in great conversion the all great these going production come opinion, joined, get an

we've efficiency look trying just look, we're X% as comments, making have our is giving on depends back going her a we're get you efficiency within that it's like And much tell had choppy absolutely But a up. caveat you think we track some on have there's But had items that talked XXXX. and economic that bumpy also coverage go there to really done You want back have we've and because in Shary bounce we're books. the we range I in of provision halo we particular, and in in to then we've just is and but much on to this new the ratio branding, We try at you doing the we metrics get things and drive offer that incur is get the branding, we type portfolio and NPLs they're stronger get our unfortunately, that I we're back in is look, plus that XX% getting, just a are efforts onetime had to that to Brady, if that assessing look, to sure effect things the think the place also quarter, of all and because all targeted nonrecurring.We're can this reality conditions our been just towards accelerating obviously, expect track to great note, first expectation the higher. year, that control XX% would reported I to you, those think expenses. some higher risk NPAs to quarter. the elevated charge-offs, But is in good do I a I and more hit exclude also why that in we a without 'XX. forward Look, quarter, which quarter, or in the last reserve from, this back job pure going higher be fourth about. these have onetime --XX% And mentioned saying, of

view And but so fast the in and help, stuff off that write created commented that back it's and status, That's possible you that books as get to as you're into done this on going money the to some status. better get additional is, earnings know up, too. earnings them back and our I get noise.

Operator

comes Sandler. question next Piper from the Scouten line Stephen Our of with

Stephen Scouten

how portfolio the from this X to last them view for love consumer for and from specifically, give you of what a and quarters. on I'd maybe confidence choppy could It's you I would investors kind that. credit you around guess costs to charge-offs if And been the credit, expect we think if you here could to at give touch of could, some maybe say pace stabilize obviously the point? direct might

Gerald Plush

Yes.

me think, I go in let [Indiscernible].

that to a on go-forward basis. indirect expect We improve charge-offs consumer

portfolio, out a and and off. smaller expectation maximum the I years quarter X getting smaller comment every run completely it's made before it's duration-wise, that think Shary

be small couple We've would an forward. from the in view, will right of think worth that saw dollarsâ€™ now it's as of coming a us. So We direction move yes, that we we and charges business. the improve for acceleration million that had related

Creek the But can lot. portfolio, take portfolio.So you now good really is and done to we've York have an staying there a we've of the But certainly with the to right done have the that's is done stepped question, actually Could decision in emphasis past. York near the credit expectation It's had our Florida we've entire has the quarter. exposure teams doing million following now on we that that line there good is through tightened credit accelerated exposure And criteria. got why unexpected, surprise. of our property. it's the And a the really legacy first this and said, rest take a we one made events significant closely largest was a job no bunch looking been view relationships monitor.But Frankly, a customer. been think was sale. in of And are we largest down reduced result that And not see, of our one in we've that been And crystal largest the Unfortunately, Creek portfolio. better you and business haircut continue the now anywhere job credits. we in credits. good the up the view into all course. No had off a as the something on we've Our created as again, exposures something have but that there of you was selling have the Yes, of be performance of to It some the top that was that we're there the sight haircut your this, we New New there's noise. view the think legacy saying just a at ones, the our is, of most the been single get single that of on there portfolio. left that last these has to quarters, view around going of the big books. of it's South several have a ball in really to with bunch which being look, $XXX been one thing been reasons that's a of

played even on we've that and think one. I more attention more

Stephen Scouten

ball. you somewhat? last this points have But coming charge-offs XX year, to like so we like of year. we Or number kind the maybe in a do know how We crystal immediate risk, far youâ€™re sounds past It if what's mean, for ability had obviously, normalize about basis the think next XX-some a for don't year, said, I feel to share net peg middle? the I in the you you 'XX like don't mean, somewhere that lion's of

Gerald Plush

Yes. pieces Look, now of most. been owned to NPLs had The that X ones what's seen come concern NPAs that you York. We'll watch if with, are the it through, right? have most the And and our portfolio, again, real say the lumpy place of expectation, based look you've the at time in New and out energy and have credits. the in we estate largest these

view, to the the we continue to I downs York. mean, in New so And extent pay yes, see

see that to monitor portfolio. continue We and closely

will those levels created I think you pretty to lumpiness the down range. that charges about probably that's come the significantly, talked X.X%

Sharymar Yepez

X definitely a place than the look composition into quarter, the behavior charge-offs seeing reduction look reduction closer of behavior the a coverage for the expecting, little colour we charge-offs improvement. the If reserved, indirect also. and the Jerry, And points showing of the look in what quarter, to a of charge we quarter to portfolio, are more later add little compensation within takes And charge-offs reserves, of so bit the we bit that it's we specifically but basis into XX%. to previously when new take itself, at related starting we that were of to the this

Stephen Scouten

moving it? was of been our side. you on has to have but you the coming side growth deposit relatively noted a that would you And now, course help maybe Jerry, the on focus kind maturities all? bit what What allow to deposit will international grow CD book deposit at changes there, any And flat. for a

Gerald Plush

it get the the of back maintenance has of stabilizing years other I sort refocusing X there. Look, to combination team, of to year, this. couple mode it's of a ago prior we coming the get Yes. of think had A COVID. really footing quarters in been of on to taken the side our to us through synergy Remember, group this

So make good be just travel growing, that we very AML We cautious place. are have to sure has to KYC, what we want in resumed. very BSA

And of more those that confidence accounts. so been and portfolio using customers I there.I remember gaining is the to more we've have think that bulk are

business, to this to question, up. in So book expectation I your apologize. get need and is more our is ramping have process for the exactly which really, is Stephen, net to growth the we we new grow of is that And

the I around think CD second in question quarter. maturities was your

Stephen Scouten

Yes.

CD the Just costs would curious if would pressure at down to that that cost of allow that but funding coming kind there's anything going just some yet, of wondering help. abate are if all

Gerald Plush

I was to going is maturities were to much that Shary's I fourth were is maturing remarks quarter. what look what think higher this delta these be closer, as the we at fairly So of right? say, cost

we as result a expect So even of that. retention, if expense didn't incremental we did significant a

Stephen Scouten

already picking quarter. last for just thing growth sounds like back maybe up me. It then And this is

you said kind pulled What how expansion pipelines on? getting you look gives kind that little you Or bit can it at new the and growth that Is putting people you You cautious. banks, of are speak a confidence in back market of the seem that a confidence? we primarily for of the to are strong. most more guys is gives know growth bit? I

Gerald Plush

this some think the that even frankly, more will composition also officers tell at strong the that made be we've side that new is be a team X starting on the started I more we development think commercial transition I have footing year. tell the business really team big you you, or week. of and have shouldn't in it team. that point. got of lost, And particularly gaining team, We're I that next expanding this to and can either I

in we've added organization, Miami-Dade. added at we've we Broward, Here the in expect,

think person we've Houston. other the additional I in had on another side

in team about of of kind these their both talk of as we And about on every have have. base deposit right? are are to coming goals, able about a that person I feel on so, we of scorecard be going you think addition, set so additive to core to good And to members board, side and that that another new people bring what loan the the time

People like what executive attracting look, so our time, opportunity. done it's great that is wonderful job doing. I'm believe this these come want folks a to They of here. The And They well. the a story. belief we're a in of some as has of

the course, we in me to have about And levels organization awareness When say I out look, gives with so on think for every And lots I'm that this personally. the one drum our in I beat talked this from marketplace comes single and and confidence set. take around that is also awareness, And the of extremely of people. escalate, about to just ability. continue it. get the is we don't helpful talking what effect want very that consideration And that to I to interaction. compliments halo

personal I the banking quicker you attention, all times. the management, think that the interaction can one of the of get levels of advantages like with a with turnaround company is ours,

gives of that, see to of that's reputation what quarter. the you're your fourth as me organization And builds a out going result and that our so confidence in growth

Operator

Our of line Strickland with next Scott. question Montgomery Feddie Anney comes the from

Feddie Strickland

to to guiding quarter, you're of million start clarifying charges that? by the saw onetime the going being this be expenses. expense in that wanted the Is top quarter? on And is item we core to on the fourth Just $XX rate that to then a similar FIS core

Gerald Plush

XX-ish and see Shary to Fed, think, talked call place. was I XX.X% you're between the of, I'll elevated said, and the targeting in had to that a takes sort We quarters then prior anywhere it, going range, expense have I

$X give that you I'd expense of additional would do just I mentioning initiatives other to Now anything of some colour, that's say prefer these was love we to before but earlier. I more that right, what it, at same anomaly we'll XQ, period time you're of going more million, $X it running than see in everything is. an expense call for the million to the of is

range. in clear, started that's talk is you when rate think let's we this, we and around that why peeled we So yes, run But our still to about back, be are if it XXXX part that That's going process over will exercise a as time. to improvement of expense in we decommission as have things organization. technology-related then, for to this an going elevated be continuous us

a know Shary, minimum. probably, certainly at I will we you it any QX if in elevated colour? as add don't said, stay So want to

Sharymar Yepez

running parallel. completely that's of kind of effect no, technology and applications It's No, efforts these right. in the

Feddie Strickland

So parallel that then as could you running it quit you like redeploy as of a and other sounds cost and technology over think things into bank. hold you initiatives saves time, the it some kind other of little get to more flat just is you those

Gerald Plush

account comments with fairness, us, making our I and to expecting the a opportunities that to set last we're is questions, good And in marketplace. it's into Feddie, we see expectation just combination counter on grow, in you have people continue just lot other of, the based from to was to take the a of of

so you're earnings going well And into as it, base have to I'll that higher, a call comes play.

effort into these making business So tell ratio assess support. we're in technology result improvement evaluating some of deployed better going can true a of that that will you, this of XXXX.Frankly, is people. continuously of surface. as growth, vast I'll to under amount gets of our members expectation we to that and The us been other add refer is this you're continuous some additional but XXXX, and how see Again, incredible development I all team energy we're in go mode But to investments a it's a direct massive unnoticed new team the in efforts. as it on by an about it's and focused been this There's bringing majority in undertaking. And FIS just some of the conversion.

Sometimes not everything, I remember, everything. we're everything. mean converting when mean people but may quite I

November said, more where excited more undertaking and really efforts. will as focusing pressure improvement this not to early yes finally the that come major, our on major get date company, be we be get on-boarding customers in for and more we'll for on, can and so a We're and point to I our And are new business, could continuous is start see to to making sure we okay. back the

Feddie Strickland

rate circle deck. saying of within renewed Is on the here. reason loans into I dollar moment repricing of Slide that I'm I that sensitivity of trying of And loans to XX repriced just fixed are And just potentially average kind loans? loans detail XXXX. a trying as all and understand year? gears on for is those of appreciate Or chart. spread pickup to XX% going switching the both the could understand in second I'm a see is you XX% that that ask the the rate the amount

Sharymar Yepez

to back I'm the Slide. going

So XX% second. One quick -- rate loans. XX% of our fixed

Feddie Strickland

I'm that repricing track term. talking about second circle

Sharymar Yepez

of than will less portfolio within XXX% At XXX% XX% repricing repricing that's the than portfolio X will the X be less portfolio. within of be of So year. the year.

Feddie Strickland

the the you don't, repricing next that's have can of If amount year? fixed that's up you the follow Do portfolio fine, over I later.

Sharymar Yepez

able We later. provide will be to

Operator

Our Olney with next comes Stephens. question Matt of line from the

Matt Olney

you I just get that if the going additional dividend be that's give any question loss that, sale about is question taking wanted would just wanted that to get there loan value? on going to around that NYC be could clarifying If that a place any today colour to I just a or be to fair great.

Gerald Plush

Shary Yes. go view her it what what in of as mark saw. took let I'll end we quarter Look, obviously we comments. ahead. But was a of our that on was know I at

Sharymar Yepez

point we we between actual was to $X.X take sales evaluation expect to million. sheet that recorded. loss This on prior today, do In later will did balance the transfer. take million at to So sales adjustment $X some of the place a of $X million be

Matt Olney

Sorry, what was X.X? number the

Gerald Plush

Yes. we have an nonrecurring as a It's in offset well. expect, and mind charge, we

So our point view this single was, to had highest a move exposure reduce the we great look, left. was

on in refinance move estate conditions all I risk move to better market a our necessarily a we deals, some because that it's and there's come there, commercial these volatile risk. one, just this not of Particularly, take not with deals. think the I to this it's need view segment given just of in we York. was real itâ€™s And on think New highly

proactive us to is over so done move this our get And view with. a this was very by and

Matt Olney

And then question. one maybe just more

income at any that offsetting items to going Is that's You a benefit, $X But flat about million anything fee restructure aware we and of the staying be BOLI $X talked line also that be talked benefit. million should $XXX million you level. kind of? having that about there then

Sharymar Yepez

perspective $X capturing moving fully that have of some But why the quarter under XQ. restructure results closer restructure. million the that seeing steps we're That's that. providing we're take benefit is admin we're an forward benefit offsets in of had to no not expecting The over because there's from still No. million that guidance out place of $XX in to We're additional the that XXXX. fourth XXX% we of

Matt Olney

million level? So XXXX current from is a fee $XX than going income the bit higher to be

Sharymar Yepez

expectation, yes. That's the

Operator

remarks. like today's Jerry call turn session. back Plush I'd question-and-answer closing for to to the concludes That

Gerald Plush

in interest Thank for in much, today's Again, a listening on your great Amerant. you, We appreciate day. thank you everyone, have very and call. greatly

Operator

This participating. you concludes today's conference call. Thank for

now You may disconnect.

Amerant Bancorp (AMTB) 20 Oct 232023 Q3 Earnings call transcript