Slide 1: Ameris Bancorp 2nd Quarter 2015 Earnings Presentation
Ameris Bancorp 2 nd Quarter 2015 Earnings Presentation Edwin W. Hortman, Jr. – President & CEO Dennis J. Zember, Jr. – EVP & CFO
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: Current focus: integrate acquisitions and achieve announced metrics
Achieving the metrics we projected improves ROA, ROTCE and Efficiency by considerable margins ▪ Deploy the liquidity in higher quality assets with little incremental overhead burden ▪ Achieve the cost savings we identified from branch closures upcoming conversion Current Focus Integrate Acquisitions
Slide 4: 2nd Quarter Operating Results
2 nd Quarter Operating Results • Net Operating Income (excluding one time charges) of $ 12 . 3 million, up 23 . 3 % vs . 2 Q 14 • Operating EPS of $ 0 . 38 per share, down $ 0 . 01 per share from 2 Q 14 due to additional shares . • Total Revenue increased 19 . 2 % vs . year ago period • Spread incom
Slide 5: Revenues – 2Q15
Revenues – 2Q15 10 . 2 % improvement in 2 Q revenues resulted from : • Growth in net i nterest i ncome of $ 1 . 9 million or 4 . 9 % increase over 1 Q 15 from steady yields on total loans, growth of $ 200 mm in average loans and advance purchases of securities in anticipation of acquisitions . • Mor
Slide 6: Non-Interest Income – 2Q15
Non - Interest Income – 2Q15 Earnings from Mortgage and SBA increased 73 % and totaled $ 4 . 0 million in 2 Q 15 vs . $ 2 . 3 million in 2 Q 14 . Earnings growing faster than revenue . 2Q15 1Q15 2Q14 Mortgage production (000's) 285,611 188,296 184,308 Mortgage GOS (1) - retail 3.67% 4.04% 3.56% Open
Slide 7: Expenses – 2Q15
Expenses – 2Q15 • Expenses in LOBs up 33 % vs . last year . Revenue is up 48 % over same period . 55 % on incremental revenue . • Mortgage expenses up mostly in higher commissions . Additional hires have been made in Florida and around recent M&A transactions . • Warehouse LOB leverages existing rel
Slide 8: Expenses – 2Q15 change by category
Expenses – 2Q15 Change compared to: Expense 2Q15 1Q15 2Q14 1Q15 2Q14 Salaries (ex mortgage & SBA) $12,409 $11,556 $10,263 $854 $2,147 Against 1Q15, BoA and M&S salaries were $595,000 while customer support and I/T costs were $167,000. Against 2Q14, Coastal Salaries were an additional $1.37 million I
Slide 9: Expenses – Credit Related Costs
Expenses – Credit Related Costs • Every NPA over $ 200 , 000 evaluated on a 90 - 120 day disposition value . • Includes reserve for expiring LSA’s and larger Covered assets • “Normal” range is a $ 9 . 2 million annual improvement over 2014 levels or $ 0 . 18 per share 1 – Credit costs include provis
Slide 10: Loans – 2Q15
Loans – 2Q15 Total Loan Growth of $ 606 . 3 million against linked quarter from : • Organic Growth during 2 Q 15 of $ 125 . 1 million or 15 . 4 % annualized • Growth of $ 191 . 5 million related to M&S acquisition • Growth of $ 269 . 0 million related to purchased whole loan mortgage pools . • Recla
Slide 11: Loans – Purchased Mortgage Pools
Loans – Purchased Mortgage Pools 1 – PNC – purchased, non - covered loans. 2 – combined yield includes transaction fees and interest earned. Purchased mortgage pools have the following characteristics: • Seasoned pools of 5/1, 7/1 and 10/1 adjustable rate mortgages. • LTVs in the 60% range or below
Slide 12: Deposits – 2Q15
Deposits – 2Q15 Deposit mix has materially improved our interest rate risk profile . In the last 12 months, we have grown : • Approximately $ 489 million in NIB checking . • Approximately $ 740 million in total non - rate sensitive deposits Not all of the growth is in M&A . Organic growth accounts f
Slide 13: Capital and TBV – 2Q15
Capital and TBV – 2Q15 Combination of Capital Raise and 2 M&A deals: – Grew our Balance Sheet by 29% – Produced Higher TCE ratios – Resulted in Higher Tangible Book Value – Improved Regulatory Capital Ratios at Ameris Bank Recent acquisitions and capital raise accretive to TBV by 5 . 1 % . $10.23 $1
Slide 14: Investment Rationale
• 25 % - 35 % discount to our peer group . • The overhangs causing discounted P/E are behind us . • Lift in operating performance ratios and lower volatility in earnings will drive higher multiples . Investment Rationale Discounted P/E valuation • Top Quartile ROA and ROTCE once we deploy the liquid