Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Investor Presentation (February 2015)
34 slides from Ameris Bancorp's investor presentation, Feb 12, 2015
Slide 1: Investor Presentation February 2015
Investor Presentation February 2015
Slide 2: Non-GAAP measures and forward-looking statements
This presentation contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . Management of Ameris Bancorp (the “Company”) uses these non - GAAP measures in its analysis of the Company’s
Slide 3: Corporate Profile
Corporate Profile • Headquartered in Moultrie, Georgia • Founded in 1971 as American Banking Company • Historically grown through acquisitions of smaller banks in areas close to existing operations • Recent growth through mergers with Coastal Bankshares , Prosperity Banking Company and 10 FDIC - ass
Slide 4: Experienced Management Team
Name, Position Experience (Banking / Ameris ) Edwin W. Hortman Jr. Chief Executive Officer 34/16 Andrew B. Cheney EVP & Chief Operating Officer 38/6 Dennis J. Zember Jr. EVP & Chief Financial Officer 21/10 Jon S. Edwards EVP & Chief Credit Officer 29/15 Stephen A. Melton EVP, Chief Risk Officer 33/3
Slide 5: Current Focus
Manage Stronger ROA’s (over 1.15%) and ROTCE (over 15%) to support M&A activities • Current earnings produce 15 %+ ROTCE. • Sustain double digit loan and deposit growth, particularly in larger MSA markets. • Manage Mortgage and SBA lines of business for meaningful addition to ROA and ROTCE. • Contin
Slide 6: 4th Quarter Update – Financial Condition
4 th Quarter Update – Financial Condition dollars in millions, except per share data Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Change BALANCE SHEET Total Assets $3,668 $3,487 $3,973 $3,999 $4,038 10.09 % S/T assets & investments $708 $515 $591 $582 $644 (9.05) Loans - noncovered $2,134 $2,184 $2,472 $2,633
Slide 7: 4th Quarter Operating Results
4 th Quarter Operating Results A – Amounts are presented exclude $54.8 million of goodwill impairment in 2009, and merger costs associated with “Prosperity” an d “Coastal” B – Efficiency ratio and Net Overhead ratios exclude goodwill impairment, merger costs and OREO/Problem loan expense. dollars in
Slide 8: Loan Portfolio Detail
• Diversified loan portfolio across five regions – Inland Georgia – 36 % – Coastal Georgia – 20 % – Alabama – 5 % • In - house lending limit of $ 15 . 0 million versus $ 86 million legal limit – 27 loans greater than $ 5 million, no individual loan greater than $ 10 . 0 million • Loan participations
Slide 9: Loan Portfolio – strong loan pipelines
• Leveraging presence in new markets (top five markets account for 72 % of pipeline : Atlanta , Jacksonville, Columbia, Savannah, Charleston • Upgrading production positions in key markets: limited changes to expense base but higher levels of quality production • Expanding Mortgage Strategy : Jumbo
Slide 10: Loan Portfolio Diversified through smaller relationships
• $33.9 million - Largest Relationship has over 3.0x debt coverage, backed by taxing authority of one of our local governmental entities. • 2.48x – Weighted average debt coverage of our 25 largest relationships. • 65.0% - Weighted average loan to value on our 25 largest relationships. Note> As of Se
Slide 11: Significant Value in Deposit Portfolio
• 50.2% - percentage of our growth in E/A (LTM) funded with growth in NIB deposits • 26.7% - 5 Year compounded growth rate in our book of non - interest bearing demand A . • $1.24 billion – Growth in non - rate sensitive deposits over last 5 years will materially protect Ameris Bank from the sensiti
Slide 12: FDIC Indemnification Asset
FDIC Indemnification Asset Managing towards the end of loss share protection I/A – Indemnification Asset for reimbursement on expected losses from the FDIC 1 - Months remaining to collect remainder of indemnification asset is a weighted average based on the indemnification asset at 12/31/2014. 2 - C
Slide 13: Earnings – Revenue Growth
Proven ability to grow revenue profitably with a compounded growth rate of over 19% for the last 5 years. Challenging market to grow revenues. Opportunistic approach of Ameris Bank includes: • Continued M&A activities – • Achieved a meaningful improvement in total revenue run rate from recently clos
Slide 14: Earnings – Net Interest Margin
• 4.57% - 4.64% - Stable net interest margin within a tight range even with accretion. • 4.17% - N et Interest Margin without any accretion. • $4.2 million – Additional interest income from “accretion” in 4Q 2014. Remaining accretable yield supports these levels for approximately 8 quarters. Earning
Slide 15: Earnings – Non-Interest Income
Serious about building strength and diversification in non - interest income sources • Moving away from deposit charges • Momentum in our numbers coming from mortgage revenue; we believe we can duplicate that strategy with other LOBs by hiring expertise • Non - interest lines build on sustainable pr
Slide 16: Analyst Coverage
Analyst Coverage Firm Analyst Rating Price Target Keefe, Bruyette & Woods Brady Gailey, CFA "Outperform" $32.00 404 - 231 - 6546 Sterne Agee & Leach Peyton N. Green "Buy" $30.00 615 - 760 - 1464 FIG Partners LLC Chris Marinac "Outperform" $31.00 404 - 601 - 7210 Sandler O'Neill & Partners, L.P. Case
Slide 17: Acquisition of Merchants & Southern Banks of Florida; Branch Purchase; Private Placement
Acquisition of Merchants & Southern Banks of Florida, Inc. Purchase of 18 South Georgia and North Florida Branches Private Placement of Common Stock January 29, 2015
Slide 18: Non-GAAP measures disclaimer
This presentation contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . Management of Ameris Bancorp (the “Company”) uses these non - GAAP measures in its analysis of the Company’s
Slide 19: Significant Strategic Transactions Discussion Outline
Significant Strategic Transactions Discussion Outline • Bank Acquisition • Branch Purchase • Capital Transaction and Pro Forma Results
Slide 20: Bank Acquisition
Bank Acquisition
Slide 21: Bank Acquisition – Transaction Terms and Multiples
(1) Financial information as of December 31, 2014 Bank Acquisition – Transaction Terms and Multiples Bank Acquisition Consideration Aggregate Purchase Price Required Approvals Expected Closing Price/Tangible Book Value (1) Price/LTM Net Income (1) Core Deposit Premium (1) Merchants & Southern Banks
Slide 22: Bank Acquisition – Pro Forma Franchise
(1) Profitability metrics adjusted using an assumed tax rate of 35% to account for S - Corp status Source: SNL Financial; financial data as of December 31, 2014; dollar amounts in millions Bank Acquisition – Pro Forma Franchise ABCB (72 Branches) Merchants & Southern (13 Branches) Gainesville Jackso
Slide 23: Bank Acquisition – Pro Forma Franchise Market Share
Bank Acquisition – Pro Forma Franchise Gainesville, FL June '14 Total Market # of Deposits Share Rank Institution Branches ($000) (%) 1 Wells Fargo & Co. (CA) 9 767,731 21.57 2 Bank of America Corp. (NC) 6 765,289 21.50 3 BBVA 4 354,799 9.97 4 SunTrust Banks Inc. (GA) 5 335,692 9.43 5 Mrchnt & Sthrn
Slide 24: Transaction Rationale
Transaction Rationale • Meaningful EPS accretion • Internal rate of return over 20% Strategic Rationale Operating Considerations Financial Impact • In - market extension with like - minded community bank • Leverages management experience and infrastructure in North Florida • Experienced Southeast ac
Slide 25: Branch Purchase
Branch Purchase
Slide 26: Branch Purchase – Transaction Terms and Multiples
(1) Non - cash assets include acquired loans and fixed assets (2) Aggregate purchase price will be based on the total average deposits for a defined period prior to closing Branch Purchase – Transaction Terms and Multiples Branch Purchase Deposits Acquired Non - Cash Assets Acquired Consideration Re
Slide 27: Branch Purchase – Pro Forma Franchise
Source: SNL Financial; financial information as of July 2014 Branch Purchase – Pro Forma Franchise Pro Forma Branch Map Deposit Composition – Southeastern Branches ABCB (72 Branches) 18 Southeastern Branches M&S (13 Branches) Noninterest Bearing ~21% NOW ~23% MMDA ~27% Savings ~8% CDs ~14% IRAs ~7%
Slide 28: Pro Forma Deposit Composition
24.3% 20.8% 33.5% 9.2% 12.2% Pro Forma Deposit Composition 24.2% 22.3% 29.7% 11.5% 12.3% ~21% ~23% ~42% ~0% ~14% 32.9% 0.2% 53.0% 7.4% 6.5% ABCB Southeastern Branches (1) Merchants Non-Interest Bearing Deposits MMDA & Savings Interest-Bearing Transaction CDs < $100,000 CDs > $100,000 Pro Forma ABCB
Slide 29: Transaction Rationale
Transaction Rationale • Meaningful EPS accretion • Internal rate of return over 20% Strategic Rationale Operating Considerations Financial Impact • In - market expansion comprised primarily of deposit relationships • Minimal amount of complexities – grow loans and retain deposits • Leverages managem
Slide 30: Capital Transaction and Pro Forma Results
Capital Transaction and Pro Forma Results
Slide 31: Capital Transaction – Summary Overview
Capital Transaction – Summary Overview • Private placement • Approximately $114.5 million net proceeds • Commitments for the sale of up to 5,320,000 primary shares • Issuance price per share: $ 22.50 • Transaction expected to be completed January 30, 2015
Slide 32: Key Pro Forma Assumptions and Financial Impact
Key Pro Forma Assumptions and Financial Impact Bank Acquisition • Balance sheet and earnings growth in line with past performance • Cost savings of 33%; 75% realized in 2015 and 100% realized in 2016 and thereafter • No revenue enhancements assumed • Credit loan mark of approximately 4% • OREO mark
Slide 33: Pro Forma Balance Sheet and Capitalization
Pro Forma Balance Sheet and Capitalization (1) (1) Pro forma balance sheet and capital ratios include the bank acquisition, branch purchase and capital transaction Dollar Values in Millions, Except Per Share Amounts Estimated Pro Forma at Close (1) Balance Sheet June 30, 2015 Total Assets $5,534 Net
Slide 34: Conclusion
Conclusion • Ameris is a very attractive Southeastern banking franchise — Consistently profitable — Impressive returns…5 year total return over 170% (1) — Experienced acquiror with a seasoned management team — Well - positioned to capitalize on future growth and expansion opportunities • Pending acq
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