Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2016 Earnings Presentation
18 slides from Ameris Bancorp's earnings presentation, Jul 22, 2016
Slide 1: Ameris Bancorp 2nd Quarter 2016 Earnings Presentation
Ameris Bancorp 2 nd Quarter 2016 Earnings Presentation Edwin W. Hortman, Jr. – President & CEO Dennis J. Zember, Jr. – COO & CFO
Slide 2: Non-GAAP 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 • Founded in Moultrie, Georgia in 1971 • Executive team headquartered in Jacksonville, Florida • Completed 17 acquisitions in the last decade, building a material presence in strong southeastern markets • Four state footprint with 102 banking offices • $6.2 billion in total assets
Slide 4: Current Focus: top quartile operating results, consistently
Almost singular focus of our team right now is “to produce top quartile operating results, consistently” . • Maintain double - digit revenue growth with 12 % - 15 % growth in loans, funded almost entirely with low - cost deposits and augmented by highly profitable and growing lines - of - business (
Slide 5: Executive Summary – 2Q 2016
• Operating Return on Average Assets of 1 . 31 % . • Operating Return on Tangible Capital of 17 . 03 % . • Operating Efficiency Ratio of 61 . 52 % . Net Overhead Ratio of 1 . 57 % . • Net Interest Margin of 3 . 70 % , excluding accretion . Executive Summary – 2Q 2016 Operating Ratios in the top Quar
Slide 6: 2Q 2016 Operating Results
2Q 2016 Operating Results Second Quarter 2016 Results • Record earnings driven by organic growth and lower efficiency ratios . • Return on Assets higher to 1 . 31 % , benefitting from lower relative costs and profitable lines of business • Return on tangible capital increased to over 17 % despite hi
Slide 7: Revenues – 2Q16
Revenues – 2Q16 Spread revenue (FTE basis) improved 35 % over 2 Q 15 . • Spread income and Margin upside – 29 % of earning assets yielding 3 . 00 % or less compared to quarterly loan production levels of approximately 4 . 33 % . • 2 Q 16 Accretion income of $ 4 . 2 million vs . $ 2 . 9 million in 1
Slide 8: Non-Interest Income – 2Q16
Non - Interest Income – 2 Q16 • Deposit charges up 46 % in 2 Q 16 vs . 2 Q 15 . Results from 3 acquisitions as well as internal strategies and growth . • Mortgage revenue up 45 % , mortgage net income up 83 % over 2 Q 15 . Additional mortgage bankers recruited in 4 Q at expected production levels .
Slide 9: Mortgage Results – 2Q16
Mortgage Results – 2Q16 • Origination volumes up 43 % compared to same quarter in 2015 . • Open pipeline up 40 % compared to same quarter in 2015 . • Growth in production and pipelines compared to same quarter in 2015 gives us confidence in mortgage’s contribution to our 2016 earnings . • Approved L
Slide 10: Expenses – 2Q16
Expenses – 2Q16 • Expense leverage is our management team’s primary focus in 2016 . • OPEX at the bank level is $ 1 . 1 million higher in 2 Q after fully integrating JAXB during the quarter . • Cost savings strategies in 1 Q and 2 Q offset approximately half of the incremental JAXB costs . • Mortgag
Slide 11: Loans – 2Q16
Loans – 2Q16 Total Loan Growth of $ 183 . 5 million against linked quarter from : • Organic Growth (legacy and PNC) during 2 Q 16 of $ 233 . 4 million or 25 . 5 % annualized • Reduction in mortgage pools and covered loans of $ 55 . 2 million • Growth of mortgage loans held for sale of $ 5 . 3 millio
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Lower levels of CRE to total Loans 2 Q 2016 Loan Portfolio • Significantly better diversification with larger investments in Mortgage and Municipal credits. Only 18% of CRE is A&D oriented. • CRE assets concentrated in Atlanta, Jacksonville, Columbia, Savannah and Charlest
Slide 13: Loan Portfolio – Mortgage Pools
Loan Portfolio – Mortgage Pools • One past due loan at 6/30/16, representing a past due ratio of 0.15% • Selective purchases of higher quality mortgage pools • Yield pick - up of approximately 130bps compared to comparable mortgage backed securities with no OCI risk • Focused our underwriting and lo
Slide 14: Credit Quality – 2Q16
Credit Quality – 2Q16 • 31 % decline in legacy NPAs over the last 12 months • 19 % decline in total NPAs despite approximately $ 12 million in acquired NPAs through acquisitions/covered reclass . Net Charge - offs presented on a 4 quarter rolling average Non - Performing Assets to Total Assets Net C
Slide 15: Top Relationships
Top 300 Relationships Relative Size of our Top 300 Relationships • Top Relationships are small relative to our capital levels and our legal lending limit . • Looking for larger deals, but not making big bets especially on CRE . • 32 % of our top 50 relationship $ ’s have liquid collateral or are mun
Slide 16: Capital and TBV – 2Q16
Capital and TBV – 2Q16 TBV up 17.6% over 2Q 2015. Last 3 M&A deals have been neutral or accretive to TBV Earnings less quarterly dividend grows capital levels by TCE/TA by approximately 15bps per quarter (assuming 8% growth in total assets) Consistent Growth in TBV 18 $10.68 $10.99 $13.01 $11.81 $12
Slide 17: Investment Rationale
Investment Rationale Attractive Multiples • Top Quartile ROA & Top Quartile Growth Rate • ROTCE greater than 15 % . • Earnings power from strong organic growth rate combined with an efficiency ratio trending closer to 60 % . Operating Performance M&A Opportunities • Disciplined Acquirer • Announced/
Slide 18: Ameris Bancorp Earnings Release & Financial Highlights
Ameris Bancorp Earnings Release & Financial Highlights 2 Q 2016