Slide 1: Ameris Bancorp 2nd Quarter 2018 Results
Ameris Bancorp 2 nd Quarter 2018 Results Investor Presentation
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: The Ameris Bancorp Story
ROA of 1 . 55 % and ROTCE of 19 . 45 % in the 2 Q 2018 . Up from 1 . 32 % and 14 . 86 % in the same quarter of 2017 . ( 1 ) • Improvement from balance sheet growth, stable margin and improving efficiency as well as reduced tax rates • Operating efficiency ratio improved to 57 . 53 % , with catalysts
Slide 4: Acquisitions Completed in 2Q18
Acquisitions Completed in 2Q18 • Atlantic Coast Financial Corporation (“Atlantic”) – Forecasted $14.1 million of cost saves; Identified and realized $15.7 million – Added $874.9 million in total assets, $758.5 million in loans and $584.1 million in total deposits – Issued 2,631,520 shares of the Ame
Slide 5: Clear Path to Future Increase in EPS
Clear Path to Future Increase in EPS 2018 Impact Items: • Atlantic and Hamilton positive impact to EPS going forward: – 2Q18 only included one month of Atlantic – 2Q18 only included one day of Hamilton • Continued organic growth in loans and deposits with stable margins • Maintain stable level of no
Slide 6: Impact of Recently Closed M&A on Future Quarters
Impact of Recently Closed M&A on Future Quarters 5 2Q18 Normalized Run Rate Additional ACFC & HMBH Impact on 3Q18 ACFC & HMBH Impact on 4Q18 over 3Q impact Net Interest Income 81,832 22,796 - Non - Interest Income 29,196 2,704 - Non - Interest Expense 66,973 9,788 (2,303) Average Diluted Shares O/S
Slide 7: Earnings Summary – Operating Basis
Earnings Summary – Operating Basis 6 Quarter to Date Results Year To Date Results 2Q 18 2Q 17 Change 2018 2017 Change Operating Earnings $ 29,239 $ 23,458 25% $ 57,019 $ 45,064 27% Earnings Per Share $ 0.74 $ 0.63 17% $ 1.46 $ 1.23 19% Return on Assets 1.37% 1.32% 4% 1.40% 1.29% 9% Return on TCE 17.
Slide 8: 2Q 2018 Operating Highlights
2Q 2018 Operating Highlights • Growth in adjusted net earnings of 24.6% compared with 2Q 2017 • Organic Loan Growth of $268.0 million, or 18.4% annualized during 2Q 2018 • Year over year organic growth in noninterest bearing deposits of $222.3 million, or 14.2% • Net Interest Margin (excluding accre
Slide 9: Credit Quality Update
Credit Quality Update • 2Q18 Provision Expense increased to $9.1 million • $6.7 million related to Premium Finance Division: – Related to two acquired loan relationships to insurance agencies (general operating lines) – These were all acquired business loans acquired in the premium finance transacti
Slide 10: Diversified Loan Portfolio
Diversified Loan Portfolio Agriculture 2.6% C&I 17.2% MUNI 7.1% Consumer 5.0% Investor CRE 18.7% Owner - Occupied CRE 11.8% AC&D 10.9% Multi - Family 3.4% SFR Mortgage 23.4% 2Q 2018 Loan Portfolio • Largest category of loans < 24% of total • Participations purchased < 1% of total loans • Average loa
Slide 11: Operating Highlights
Operating Highlights (1) Asset growth is materially impacted in 2Q18 by the acquisitions of Atlantic and Hamilton (2) Core Operating expenses exclude merger related charges, Executive Chairman retirement costs and gain/loss on sale of premises (3) Operating efficiency ratio is Core Operating Expense
Slide 12: Total Revenue
Total Revenue Spread Revenues • $1.24 billion or 18.8% growth in average earning assets over 2Q 2018 • Steady margin with strong growth in existing rate environment. Margin (excluding accretion) of 3.81% in current quarter compared to 3.77% a year ago Non - Interest Income • Mortgage Revenue – incre
Slide 13: Net Interest Margin
Net Interest Margin Spread Income and Margin supported by: • Growth in average earning assets of $1.24 billion or 18.8% compared to 2Q17 • Margin (excluding accretion) higher by 4bps compared to 2Q17; despite tax equivalent yield affect of 6bps due to tax law change • Margin (excluding accretion) lo
Slide 14: Expenses – 2Q18
Expenses – 2Q18 • Basically no increase in core bank operating expenses • Increase in operating expense in lines of business relates to higher commissions and incentives, due to increased production • Continue to monitor expense control throughout the company and look for efficiencies in our adminis
Slide 15: Capital and TBV – 2Q18
Capital and TBV – 2Q18 • Historically, consistent growth in TBV • TBV increased $0.26 in 2Q18, even with completion of 2 acquisitions • Hamilton acquisition closed last day of the quarter, so dilutive to TBV because no earnings to offset acquisition costs during 2Q18 – earn back is less than 6 month
Slide 16: Investment Rationale
Investment Rationale Organic Growth Opportunities • Top Quartile Return on Assets • Strong ROTCE’s that support organic and M&A growth • Efficiency ratio below 60 % with catalysts that will drive us into lower 50 % range over next 18 months Operating Performance Valuation • Material discount on earn
Slide 17: Press Release & Financial Highlights June 30, 2018
Ameris Bancorp Press Release & Financial Highlights June 30, 2018