Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2021 Earnings Presentation
29 slides from Ameris Bancorp's earnings presentation, Jul 23, 2021
Slide 1: 2nd Quarter 2021 Results Investor Presentation
2nd Quarter 2021 Results Investor Presentation
Slide 2: Cautionary Statements
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,” “
Slide 3: Ameris Profile
Ameris Profile Operating Strength • Historically top quartile return on assets (> 1.50% ROA for last three years) • Focus on expense control and improved operating efficiency • Strong liquidity and continued funding opportunities • Culture of disciplined banking Diversification • Geographic diversif
Slide 4: 2nd Quarter 2021 Financial Results
2nd Quarter 2021 Financial Results
Slide 5: Earnings Summary
Earnings Summary (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 2Q21 2Q20 Change 2021 2020 Change Net Income $ 88,327 $ 32,236 174% $ 213,289 $ 51,558 314% Net Income Per Diluted Share $ 1.27 $ 0.47 170% $ 3.06 $ 0.74 314% Return on Average Assets 1.64% 0.
Slide 6: 2Q 2021 Operating Highlights
2Q 2021 Operating Highlights • Net income of $88.3 million, or $1.27 per diluted share • Adjusted net income(1) of $87.5 million, or $1.25 per diluted share • Organic loan growth of $181.0 million, or 5% annualized (and $485.1 million, or 14.1% annualized, exclusive of PPP loans), during 2Q21 • Adju
Slide 7: 2021 YTD Operating Highlights
2021 YTD Operating Highlights • Net income of $213.3 million, or $3.06 per diluted share • Adjusted net income(1) of $203.3 million, or $2.91 per diluted share • Adjusted efficiency ratio(1) of 54.36%, compared with 54.90% for YTD 2020 • Adjusted ROA(1) of 1.94%, compared with 0.88% for YTD 2020 • A
Slide 8: Operating Highlights
Operating Highlights (dollars in thousands) For the quarter For the year-to-date period 2Q21 2Q20 2021 2020 Asset Growth 459,804 1,648,081 1,448,293 1,630,050 Asset Growth Rate 8.58% 36.17% 14.17% 17.87% Organic Loan Growth 180,986 1,409,051 299,866 1,684,681 Organic Loan Growth Rate 4.96% 43.04% 4.
Slide 9: Net Interest Margin
Net Interest Margin $200.0 5.50% Spread Income and Margin: Net Interest Income (TE) $190.0 (in millions) 5.25% • Average earning assets up $730.7 million, $180.0 5.00% while spread income decreased $3.1 million compared with 1Q21 $170.0 4.75% • Margin down 23bps from 1Q21: $160.0 $165.2 $163.9 $164.
Slide 10: Noninterest Income
Noninterest Income Noninterest Income Trends Noninterest Income Highlights: Noninterest Income Noninterest Income • Mortgage banking (in millions) – Revenue decreased $28.3 million, or $180.0 28.7%, in 2Q21 compared with 1Q21 $159.0 – Production decreased $243.3 million, $160.0 $9.5 or 9.2%, over th
Slide 11: Expenses
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights: 175.0 Adjusted Operating Expenses (in millions) • Total adjusted operating expenses decreased 150.0 $70.8 $13.1 million in 2Q21 compared with 1Q21 $66.8 $66.1 $66.0 125.0 $59.9 • Decrease of $6.8 million in 2Q21 Banking di
Slide 12: Retail Mortgage Division Details
Retail Mortgage Division Details Rationalization and Stabilization of Mortgage Operations: • Retail mortgage originations represents 22% of the Company’s adjusted pre-provision, pre-tax income for 2Q21, down from 46% this time last year • Approximately 80% of costs are variable costs relative to pro
Slide 13: Balance Sheet Trends
Balance Sheet Trends Earning Assets Deposit Composition (in millions) 25,000 2Q21 20,000 1Q21 15,000 4Q20 10,000 3Q20 5,000 2Q20 - 2Q20 3Q20 4Q20 1Q21 2Q21 0% 20% 40% 60% 80% 100% Loans Loans HFS Other Earning Assets Total Assets NIB NOW MMDA Savings CD 12
Slide 14: Capital and TBV
Capital and TBV $30.00 Tangible Book Value $25.00 $25.27 $26.45 Consistent Growth in TBV $23.69 $22.46 $20.00 $20.90 • Management remains focused on growth in TBV $15.00 • TBV increased $1.18 per share in 1Q21: – $1.12 from retained earnings $10.00 – $0.06 from all other items including stock compen
Slide 15: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio 2Q21 Loan Portfolio • Loan portfolio is well diversified across all loan Agriculture types 2% • C&I loans represent second largest category of C&I SFR Mortgage & HELOC 20% loans 20% • PPP loans totaled $487.9 million at 2Q21, which added ~3% to this category • Average loan
Slide 17: Loan Growth
Loan Growth 2Q21 Loan Balance Changes $500 $435 $400 $300 $200 $100 $100 $74 $46 $- $(5) $(12) $(28) $(39) $(100) $(85) $(200) $(300) $(304) $(400) CRE C&I Premium SFR Mtgs C&D Municipal Consumer Mtg WHSE Indirect PPP Finance • 2Q21 net loan growth was $181.0 million, even as PPP loan forgiveness ($
Slide 18: Allowance for Loan Losses
Allowance for Loan Losses 2Q21 CECL Reserve • The ALL totaled $175.1 million at 2Q21, a net decrease of $3.5 million, or 2% from 1Q21 • The reserve for unfunded commitments totaled $22.3 million, an increase of $1.3 million, or 6% from 1Q21 • A provision expense of $142 thousand was recorded during
Slide 19: COVID-19 Response
COVID-19 Response 2Q21 COVID-related Payment Extensions As a % of Portfolio Volume Active Loan Type Deferrals % Portfolio* • Active COVID deferrals totaled $172.2 million, or 1.2% of Total Loans Agriculture $ 3.5 1% C&I $ 3.3 0% • The largest remaining categories of active deferrals Investor CRE $ 8
Slide 20: NPA / Charge-Off Trend
NPA / Charge-Off Trend $180.0 0.82% 0.90% Non-Performing Assets Decreasing Non-Performing Assets $160.0 0.80% $140.0 0.70% • Non-Performing Assets (“NPAs”) decreased $15.2 0.59% million, to $70.8 million at 2Q21, primarily as a result $120.0 0.60% of: 0.48% $100.0 0.40% 0.50% • $11.6 million decreas
Slide 21: Problem Loan Trends
Problem Loan Trends $500 $450 2.92% • Non-Performing Loans decreased $400 2.56% 2.71% $11.6 million in 2Q21 to $64.8 million, primarily as a result of: $350 • $9.9 million decrease in $300 1.91% 2.05% nonaccrual loans, including legacy 1.88% 1.81% 1.78% and portfolio mortgage loans $250 • $1.4 milli
Slide 22: Hotel Exposure
Hotel Exposure $$ Avg National $$ Committed $$ Committed Economy # of Balance Outstanding Balance Hotel Portfolio by Flag 54 Properties $68.0 Loans (MM's) (MM's) (M's) Non-Flagged 37 Properties Term CRE 90 $ 408.1 $ 405.2 $ 4.5 $36.1 In-Process Construction 5 $ 62.1 $ 39.6 $ 12.4 Government Guarante
Slide 23: Investor CRE Loans
Investor CRE Loans • Approximately 93% of CRE loans are concentrated within our five-state footprint, principally in the Bank’s primary MSAs of Atlanta, Jacksonville, Orlando, Charleston, Tampa and Greenville Avg Size Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Construction Loans: RRE
Slide 24: Commercial Real Estate Production
Commercial Real Estate Production 2Q21 Construction and Development Loan Production Summary: Committed Avg Size • 2Q21 production of C&D and CRE loans - $1.29 Outstanding Exposure Commitment billion in total committed exposure Loan Type (MM's) (MM's) (000's) RRE Construction - Pre-Sold $ 87.1 $ 239.
Slide 25: Appendix
Appendix AMERIS BANCORP
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) For the quarter For the year-to-date period 2Q21 2Q20 2021 2020 Net Income $ 88,327 $ 32,236 $ 213,289 $ 51,558 Adjustment items Merger and conversion charges - 895 - 1,435 Restructuring charge - 1,463 - 1,463 Servicing right impairm
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 2Q21 1Q21 4Q20 3Q20 2Q20 2021 2020 Adjusted Noninterest Expense Total noninterest expense $ 135,761 $ 148,798 $ 151,116 $ 153,692 $ 155,768 $ 284,559 $ 293,821 Adjustment items: Merger and conversion char
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date (dollars in thousands) 2Q21 1Q21 4Q20 3Q20 2Q20 Total shareholders' equity $ 2,837,004 $ 2,757,596 $ 2,647,088 $ 2,564,683 $ 2,460,130 Less: Goodwill 928,005 928,005 928,005 928,005 928,005 Other intangibles, net 63,783 67,848 71,974 76,164
Slide 29: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights June 30, 2021