Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q1 2022 Earnings Presentation
27 slides from Ameris Bancorp's earnings presentation, Apr 26, 2022
Slide 1: 1st Quarter 2022 Results Investor Presentation
1st Quarter 2022 Results Investor Presentation Exhibit 99.2
Slide 2: Cautionary Statements
Cautionary Statements 1 This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,”
Slide 3: Ameris Profile Investment Rationale
Ameris Profile Investment Rationale Historically top of peer financial results Culture of discipline – credit, liquidity, expense control, capital preservation Proven stewards of shareholder value – TBV has grown 10% annualized over past five years Experienced executive team with skills and leadersh
Slide 4: 1st Quarter 2022 Financial Results
1st Quarter 2022 Financial Results
Slide 5: 1Q 2022 Operating Highlights
1Q 2022 Operating Highlights 4 Net income of $81.7 million, or $1.17 per diluted share Adjusted net income(1) of $75.0 million, or $1.08 per diluted share Organic loan growth of $269.5 million, or 6.8% annualized (and $350.7 million, or 8.9% annualized, exclusive of PPP loans) Growth in tangible boo
Slide 6: Financial Highlights
Financial Highlights 5 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods
Slide 7: Revenue
Revenue 6 Strong revenue base of net interest income from core banking division Additional revenue provided by our diversified lines of business Balboa Capital acquisition enhances revenue profile with higher margin and additional fee income Diversified Revenue Stream Mortgage Banking Activity Purch
Slide 8: Net Interest Margin
Net Interest Margin 7 Average earning assets up $54.3 million, while spread income increased $5.6 million compared with 4Q21 Margin up 17bps from 4Q21: 12bps due to higher loan yield and average balances 5bps due to reduction in excess liquidity 1bp improvement in funding costs Offset by 1bp decreas
Slide 9: Expenses
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights 8 Total adjusted operating expenses increased $8.4 million in 1Q22 compared with 4Q21 Increase of $12.0 million in 1Q22 banking division operating expenses primarily due to: $7.1 million increase related to Balboa Capital $
Slide 10: Retail Mortgage Division Details
Retail Mortgage Division Details 9 Rationalization and Stabilization of Mortgage Operations: Retail mortgage originations represent 12.3% of the Company’s adjusted pre-provision, pre-tax income for 1Q22, down from 27.7% this time last year Approximately $14.5 million, or 75%, of the net interest inc
Slide 11: Balance Sheet Trends
Balance Sheet Trends 10 Well Positioned for rising rate environment: 3.2% asset sensitivity in +50bps 6.4% asset sensitivity in +100bps 13.1% asset sensitivity in +200bps A 25bps rate increase positively affects margin by approximately 5bps Approximately $4.7 billion, or 29%, of loans are variable r
Slide 12: Strong Core Deposit Base
Strong Core Deposit Base 11 Deposit Highlights Deposit mix well positioned for future rate increases: Improved deposit mix over the past five years such that noninterest bearing deposits now represent 40.18% of total deposits, a 37% improvement from 29.33% at 1Q17 Excess liquidity of $3 billion prov
Slide 13: Capital and TBV
Capital and TBV Proven Stewards of Shareholder Value 12 Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 10% annualized TBV increased $0.58 per share in 1Q22: $1.02 from retained earnings ($0.25) from impact of OCI ($0.19) from all other items inc
Slide 14: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio 1Q22 Loan Portfolio 14 Organic loan growth of 6.8% for 1Q22 Loan portfolio is well diversified across loan types and geographies C&I loans represent second-largest category of loans Balboa Capital totaled $746.0 million at 1Q22, or 4.6% of total loans, which added ~4% to t
Slide 16: Loan Growth
Loan Growth 1Q22 Loan Balance Changes 15 1Q22 loan growth totaled $269.5 million, or 6.8% annualized Growth was primarily driven by residential mortgages and advances on construction loans. CRE growth was primarily attributable to a change from the construction category (C&D) as projects were comple
Slide 17: Balboa Capital Portfolio
Balboa Capital Portfolio 16 Day 1 acquired loans totaled $665.8 million Total loans at 1Q22 were $746.0 million, or an annualized growth rate of 33.0% from YE21 1Q22 production totaled $131.8 million with a yield of 12.34% Average FICO score for loans originated in 1Q22 was 721 30-89 day accruing pa
Slide 18: Allowance for Loan Losses
Allowance for Loan Losses 17 The ALLL totaled $161.3 million at 1Q22, a net decrease of $6.3 million, or 4%, from 4Q21 The reserve for unfunded commitments totaled $42.2 million, an increase of $9.0 million, or 27.1%, from 4Q21 The ALLL for 1Q22 was driven primarily by modeled forecast losses, with
Slide 19: NPA / Charge-Off Trend
NPA / Charge-Off Trend 18 Non-Performing Assets (“NPAs”) increased $9.4 million, to $111.2 million at 1Q22, primarily as a result of: $20.7 million increase in 90+ past due GNMA and portfolio mortgage loans Offset by OREO sales, collections and recoveries, which reduced NPAs by $11.3 million ~$43.3
Slide 20: Problem Loan Trends
Problem Loan Trends 19 Total classified loans increased $11.2 million, primarily the result of increased 90+ past due GNMA and portfolio mortgage loans Criticized loans (special mention + classified) decreased $16.1 million primarily the result of pay-offs and upgrades of hotel loans The largest wat
Slide 21: Investor CRE Loans
Investor CRE Loans 20 Approximately 92% of CRE loans are concentrated within our five-state footprint
Slide 22: Commercial Real Estate Production
Commercial Real Estate Production 1Q22 Commercial Real Estate Production Summary: 21 1Q22 Construction and Development Loan Production Summary: 1Q22 production of C&D and CRE loans - $1.15 billion in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 0.5:1
Slide 23: Appendix
Appendix AMERIS BANCORP
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
23 Reconciliation of GAAP to Non-GAAP Measures
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
24 Reconciliation of GAAP to Non-GAAP Measures
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
25 Reconciliation of GAAP to Non-GAAP Measures
Slide 27: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights March 31, 2022