Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2019 Earnings Presentation
25 slides from Ameris Bancorp's earnings presentation, Jul 26, 2019
Slide 1: Ameris Bancorp 2nd Quarter 2019 Results
Ameris Bancorp 2nd Quarter 2019 Results Investor Presentation
Slide 2: Cautionary Statements
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,” “estimate,” “predict
Slide 3: The Ameris Bancorp Story
• Management team focused on producing top quartile results, including 1 . 56 % Adjusted ROA and 18 . 79 % Adjusted ROTCE in 2 Q 2019 • Managed minimal rate sensitivity despite significant growth in total assets and intense pressure on deposit costs • 2 Q 19 margin (excluding accretion) down slightl
Slide 4: Clear Path to Future Increase in EPS
Clear Path to Future Increase in EPS Confidence in 2020 financial expectations: • Manage margin through funding expertise, capacity and better mix • High single - digit balance sheet growth in strong economic times; able to dial back if necessary in downturns to protect credit and balance sheet • Re
Slide 5: Investment Rationale
Investment Rationale Organic Growth Opportunities • Historically top quartile return on assets (> 1 . 50 % YTD 2019 ) • Strong ROTCE’s that support organic and M&A growth (over 18 % YTD 2019 ) • Catalysts already identified that are expected to drive efficiency ratio to 50 % over next 12 months Oper
Slide 6: 2nd Quarter 2019 Financial Results
2nd Quarter 2019 Financial Results
Slide 7: Earnings Summary – Adjusted Basis
Earnings Summary – Adjusted Basis 7 (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 2Q19 2Q18 Change 2019 2018 Change Adjusted Net Income $ 45,210 $ 29,239 55% $ 87,797 $ 57,019 54% Adjusted Net Income Per Share $ 0.96 $ 0.74 30% $ 1.85 $ 1.46 27% Adjusted
Slide 8: 2Q 2019 Operating Highlights
2Q 2019 Operating Highlights • Growth in adjusted net income of 54.6% compared with 2Q18 • Growth in adjusted EPS of 30% compared with 2Q18 • Adjusted efficiency ratio of 53.77% compared with 55.12% in 1Q19 and 57.53% in 2Q18 • Adjusted ROA of 1.56%, compared with 1.51% in 1Q19 and 1.38% in 2Q18 • A
Slide 9: Operating Highlights
Operating Highlights (1) Asset growth is materially impacted in 2Q18 by the acquisitions of Atlantic Coast Bank and Hamilton State Bank (2) Adjusted operating expenses exclude merger related charges, executive retirement costs, restructuring charges, financial impact of hurricanes and loss on sale o
Slide 10: Total Revenue
Total Revenue Spread Revenues • Steady growth in average earning assets from 1Q19 to 2Q19; $2.73 billion, or 34.9%, growth in average earning assets from 2Q18 to 2Q19 • Slight decrease in margin in challenging rate environment while maintaining stable yield on earning assets • Margin (excluding accr
Slide 11: Net Interest Margin
Net Interest Margin Spread Income and Margin: • Average earning assets were up $227 million, increasing spread income of $2.2 million. • Margin (excluding accretion) down 4bps in the second quarter due to shift in deposit mix. – Stable yield on earning assets – Deposit costs increased by 5bps – Grow
Slide 12: Expenses – 2Q19
Expenses – 2Q19 • Slight decrease in 2 Q 19 core operating expenses at the Bank due to payroll taxes ( 1 Q annual payroll tax seasonality) and continued efficiency efforts • Increase in lines of business - related operating expenses due to increased commissions related to elevated production levels
Slide 13: Capital and TBV – 2Q19
Capital and TBV – 2Q19 • Historically, consistent growth in TBV • TBV increased $1.08 in 2Q19 – $0.72 from retained earnings – $0.37 from change in OCI – ($0.01) from all other items including share repurchase Consistent Growth in TBV • TCE / TA at quarter end of 8.68%, up from 8.46% at end of 1Q19
Slide 14: Credit Quality and Loan Diversification
Credit Quality and Loan Diversification
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio 2Q19 Loan Portfolio • Largest category of loans = 21% of total – well diversified Mortgage loans & HELOCs • Participations purchased only 1% of total loans • Average loan size = $72M (all loan types) • < 12% of total loans in Construction or A&D • CRE and C&D concentration
Slide 16: Diversified Loan Portfolio – Relationship Groupings
Diversified Loan Portfolio 16 Relationship Groupings Total Committed Exposure (MM's) % of Total Portfolio Top 25 Relationships $ 932.1 15.3% Top 50 Relationships $ 1,519.8 25.0% Top 100 Relationships $ 2,319.9 38.2% Top 250 Relationships $ 3,596.1 59.2% Top 300 Relationships $ 3,853.9 63.4% Individu
Slide 17: Non-Performing Asset Trend
Non - Performing Asset Trend • Non - Performing Assets have decreased from $87.5 million at YE14 to $60.8 million at 2Q19 (31% reduction) • As a % of Total Assets, NPAs declined from 2.17% at YE14 to 0.51% at 2Q19 17 • Ameris has completed five acquisitions since YE14 resulting in an increase in Tot
Slide 18: Investor CRE Loans
Investor CRE Loans 18 Loan Type Outstanding Balance (MM’s) % NPL % PD Office $ 521.7 0.00% 0.28% Multi - Family $ 406.4 0.06% 0.00% Retail (inc Single - Tenant) $ 394.5 0.10% 1.53% Warehouse / Industrial $ 290.1 0.10% 0.00% Hotels / Motels $ 238.9 0.86% 0.00% Strip Center, Non - Anchored $ 219.6 0.0
Slide 19: 2Q19 Commercial Real Estate Production
2Q19 Commercial Real Estate Production 19 Loan Type Outstanding (MM's) Committed Exposure (MM's) Direct Debt Service Coverage (DSC)* Loan / Value* Multi - Family $ 39.7 $ 178.2 1.62 53.2% Hotels / Motels $ 40.8 $ 42.2 1.98 53.2% Office $ 23.5 $ 39.2 1.59 63.7% Warehouse / Industrial $ 12.5 $ 34.4 1.
Slide 20: C&I Loans by Lending Division
• Largest segment is US Premium Finance at $659.6MM • 2Q19 Production Stats: • Mortgage Warehouse Division funded $4.4 billion of loans in 2018 and $2.7B through 2Q19 – 23% annualized growth through 2019 • Total approved guidance lines = $773.5 million • Average days on line = 20 days • No losses in
Slide 21: Mortgage Loans
Mortgage Loans • Portfolio Loans consist of: • Legacy Bank mortgage loans - $753.8 million • Mortgage division - $780.6 million • Purchase mortgage pools - $232.6 million • Home Equity LOCs - $158.5 million • Mortgage division production is underwritten to secondary market standards, as follows: 21
Slide 22: Update on Acquisition of Fidelity Southern Corporation
Update on Acquisition of Fidelity Southern Corporation
Slide 23: Combined 3Q19 Estimated Impact
Combined 3Q19 Estimated Impact • Completed acquisition on July 1, 2019; Conversion scheduled for November 2019 • Balance Sheet: – L oan growth expected to be in mid - single digits, net of indirect runoff – No significant deposit attrition expected • Net I nterest Margin: – S ensitivity slightly ass
Slide 24: Proforma Loan Portfolio with Fidelity
Agriculture 0.2% C&I 6.2% Municipal 0.0% Consumer , 36.2% Investor CRE , 14.6% Owner Occupied CRE, 12.2% AC&D 8.5% Multi - Family 0.1% SFR Mortgage (ex HFS) 22.0% Proforma Loan Portfolio with Fidelity 24 Agriculture 2.4% C&I 20.2% Municipal 6.4% Consumer 5.1% Investor CRE 18.0% Owner Occupied CRE 11
Slide 25: Ameris Bancorp Press Release & Financial Highlights June 30, 2019
Ameris Bancorp Press Release & Financial Highlights June 30, 2019