Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2014 Earnings Presentation
17 slides from Ameris Bancorp's earnings presentation, Nov 13, 2014
Slide 1: 3rd Quarter 2014 Investor Presentation
3 r d Quarter 2014 Investor Presentation
Slide 2: This presentation contains certain performance measures determined by methods other than in accordance with
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 33/15 Andrew B. Cheney EVP & Chief Operating Officer 37/5 Dennis J. Zember Jr. EVP & Chief Financial Officer 21/10 Jon S. Edwards EVP & Chief Credit Officer 28/14 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: 3rd Quarter Update – Financial Condition
6 3 rd Quarter Update – Financial Condition dollars in millions, except per share data Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Change BALANCE SHEET Total Assets $2,818 $3,668 $3,487 $3,973 $3,999 41.91 % S/T assets & investments $394 $708 $515 $591 $582 47.81 Loans - noncovered $1,659 $2,134 $2,184 $2,47
Slide 7: 3rd Quarter Operating Results
7 3 rd 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
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 as well
10 • $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
Slide 11: Significant Value in Deposit Portfolio
11 • 53.8% - percentage of our growth in E/A (LTM) funded with growth in non - rate sensitive deposits • 26.3% - 5 Year compounded growth rate in our book of non - interest bearing demand A . • $1.2 billion – Growth in non - rate sensitive deposits over last 5 years will materially protect Ameris Ba
Slide 12: FDIC Indemnification Asset
12 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 9 /30/2014. 2
Slide 13: Earnings: 20% Compounded Growth in Revenue
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
14 • 4.50% - Stable net interest margin with minimal impacts from accretion. • 4.17% - N et Interest Margin without any accretion. • $2.9 million – Additional interest income from “accretion” in 3Q 2014. Remaining accretable yield supports these levels for approximately 10 quarters. Earnings - Net I
Slide 15: Earnings – Non-Interest Income
15 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
Slide 16: Why Ameris Bank?
Disciplined Acquirer with Significant Capacity • Two negotiated deals back to back with 20%+ IRRs • Short TBV earnback periods, meaningful EPS accretion on recent deals. • Reputation with targets and with regulatory agencies are providing increasing deal flow Low P/E multiples relative to our Peer G
Slide 17: Analyst Coverage
17 Analyst Coverage Firm Analyst Rating Price Target 2015 Estimate Keefe, Bruyette & Woods Brady Gailey, CFA "Outperform" $28.00 $ 2.04 404 - 231 - 6546 Sterne Agee & Leach Peyton N. Green "Buy" $29.00 $ 2.05 615 - 760 - 1464 FIG Partners LLC Chris Marinac "Outperform" $28.00 $2.00 404 - 601 - 7210