3 min read December 2023 — In an interview with Invest:, Howard Levine, Senior Executive Vice President and Head of Consumer Banking at Amerant, discussed the bank’s strategic focus, growth in the past year and outlook for the South Florida financial landscape. “Our goal is to expand our team and client base in Broward County significantly over the next 18 to 24 months,” he said.
What has been your main focus since stepping into your new role?
Upon taking on this role, my primary focus was establishing a domestic private banking presence. Although the bank had a rich history in international banking, I saw the potential to expand locally. We now have a team of 11 private bankers serving Miami-Dade, Broward and Palm Beach – and growing. I’ve dedicated a considerable amount of time to this vertical, helping build it from scratch. Together with the group leader, we’ve built a strong foundation and created an attractive value proposition for domestic customers.
What potential do you see for banks like Amerant, especially given the continued influx of people and businesses into the area?
We’ve observed that banks tend to focus on Miami-Dade and Palm Beach, often overlooking Broward County. We believe this presents a substantial opportunity for Amerant to establish a strong presence there. We aim to increase our efforts significantly in Broward. Our strategy is to offer the high-touch, personalized banking services we are known for to a broader client base in the county. We have acquired a headquarters in Broward so our Chairman and CEO Jerry Plush and I will be spending more time in the county. Our goal is to expand our employee and client base in Broward significantly over the next 18 to 24 months.
How is Amerant navigating the current environment, both operationally and in terms of supporting clients?
The current financial climate, with rising debt costs, is leading clients to contribute more cash and take on less debt to ensure their deals are financially viable. To help them adjust, we are guiding our clients through this shift in expectations and educating them on the need for additional cash input. Although this might deter some, those who see the long-term value in the asset are more likely to invest more equity. Many are betting on future interest rate reductions, planning to acquire assets now and refinance later under more favorable conditions.
Regarding the demand side of your service portfolio, where have you observed the most significant growth?
We have noticed a trend of clients being wary of duration, opting for short-term treasuries due to concerns about reinvestment risk. In response, we are guiding them towards different instruments, such as fixed-income corporate bond portfolios, which offer longer durations amidst the current high-interest rate environment. Additionally, through our broker-dealer and registered investment advisory, we are making private equity investments more accessible by offering smaller increments. Typically, an investment in private equity might require a minimum of half a million or even a million dollars, but we are providing options starting at $100,000. This approach opens up opportunities for our clients to participate in private equity through a fund accessible via our broker-dealer.
What is Amerant’s ideal client profile?
As a private commercial bank, we prefer to engage with companies and their principal owners, adopting a holistic relationship-based approach. We aim to bank both the company and its principals, focusing on small to medium-sized enterprises where the owners are willing to consolidate their entire banking relationship with us. This integration allows us to be more creative and form a true partnership as their business grows. However, we tend to shy away from isolated opportunities, such as a client seeking only a loan, even if it’s favorable. If they are not willing to fully integrate with the bank, we usually pass, as it doesn’t align with our business objectives.
Are there any specific industries or sub-sectors that you are targeting due to their high growth and value in the current market?
Within our private banking division, we have a particular interest in law firms for several reasons, and we plan to emphasize this as we expand into Broward County. Law firms fit our target metrics well; they usually have strong deposits, principals willing to engage in a banking relationship and the potential to refer their clients to us. We see them as a triple threat, a perspective shared by many banks. So, our strategy includes a stronger focus on building relationships within the legal sector.
With unique ties to sports entertainment, what’s the strategy and expected impact of these collaborations?
Our partnerships with the Florida Panthers, Miami Heat and the University of Miami Athletics are pivotal collaborations for us as they solidify our presence in the South Florida community and associate us with reputable brands known for their dedicated fan bases. Engaging with these entities provides us with unique visibility and opens doors for potential business opportunities with their fans and supporters. Overall, these partnerships contribute to our branding efforts and further embed us in the local community, enhancing our visibility and name recognition.
What are some programs Amerant is enthusiastic about to reinforce the organization’s commitment to community outreach?
We are deeply connected to all the communities in which we operate. Our partnership with the Overtown Youth Center in Miami is a prime example of our community engagement efforts. This collaboration was facilitated through our association with the Miami Heat, demonstrating how our sports partnerships can serve as conduits to broader community involvement. Similarly, our alliance with the Florida Panthers has enabled us to support military and youth sports initiatives. Specifically, we sponsor the “Hometown Heroes” program and “Amerant Saves for Vets”. These examples underscore how our sports partnerships catalyze further community engagement, aligning with our commitment to giving back.
Are there any upcoming regulations or policies at the local, regional or federal level that Amerant is closely monitoring due to their potential impact on the financial landscape?
While there isn’t a specific regulation on our radar currently, we are concerned about the implications of short-selling bank stocks. This practice can jeopardize a bank’s stability, triggering panic among depositors and potentially leading to severe consequences. The banking industry has been advocating for regulatory measures to mitigate this risk, although progress has been slow. This issue underscores the vulnerability of publicly traded community banks, making it a significant concern for our industry at large, not just Amerant.
What is your outlook for Amerant Bank, as well as the broader financial landscape in Broward County?
We hold a very optimistic view on South Florida, identifying Broward County as our next major focus, followed by Palm Beach County. South Florida’s unique ability to withstand economic challenges, driven by the influx of people, relocation of private equity firms and the general wealth pouring into the region, fuels our positive outlook, even in current times.
We’re in expansion mode, evidenced by the new financial center opening in downtown Miami, our recent launch in Key Biscayne and an upcoming location on Las Olas. We continue to invest heavily, firmly believing in South Florida’s potential for strong economic growth for many years ahead.
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