Slide 1: Ameris Bancorp 3rd Quarter 2015 Earnings Presentation
Ameris Bancorp 3 rd 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: Corporate Profile
Corporate Profile • Headquartered in Moultrie, Georgia • Founded in 1971 as American Banking Company • Historically grown through acquisitions of smaller banks in areas close to existing operations • Recently announced acquisition of Jacksonville Bancorp in Jacksonville, Florida. • Recent growth thr
Slide 4: Current Focus
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 after conversion Current Focus Integrate Acquisitions &
Slide 5: 3rd Quarter Operating Results
3 rd Quarter Operating Results • Net Operating Income (excluding one time charges) of $ 15 . 9 million, up 13 . 3 % vs . 3 Q 14 • Operating EPS of $ 0 . 49 per share, up $ 0 . 06 per share from 3 Q 14 . Impacted by 5 . 3 million additional shares . • Total Revenue increased 27 % vs . year ago period
Slide 6: Revenues – 3Q15
Revenues – 3Q15 17 . 5 % improvement over linked quarter ( 2 Q 15 ) resulted from : • Progress in deployment of liquidity from recent M&A deals . • In - line deposit service charges resulting from recent transactions . Total deposit related service charges on two recent deals totaled approximately $
Slide 7: Non-Interest Income – 3Q15
Non - Interest Income – 3Q15 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 . 3Q15 2Q15 3Q14 Mortgage production (000's) 311,007 285,611 217,694 Mortgage GOS (1) - retail 3.51% 3.67% 3.46% Open
Slide 8: Expenses – 3Q15
Expenses – 3Q15 • Expenses in LOBs up 21 % vs . last year . Revenue is up 32 % over same period . 39 % 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 9: Expenses – Credit Related Costs
Expenses – Credit Related Costs • Still anticipating approximately $ 2 . 5 million per quarter in credit costs (provision and OREO charges) • Believe we continue to move CQ ratios while maintaining lower levels of costs 1 – Credit costs include provision for loan losses and OREO related costs. Relia
Slide 10: Loans – 3Q15
Loans – 3Q15 Total Loan Growth of $ 203 . 4 million against linked quarter from : • Organic Growth during 3 Q 15 of $ 78 . 2 million or 10 . 5 % annualized • Growth of $ 141 . 1 million related to purchased whole loan mortgage pools . Pools currently paying on about a 3 . 5 yr . avg . life . 1 – PNC
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 – 3Q15
Deposits – 3Q15 Deposit mix has materially improved our interest rate risk profile . In the last 12 months, we have grown : • Approximately $ 459 million in NIB checking . • Approximately $ 767 million in total non - rate sensitive deposits Not all of the growth in NIB is in M&A . Organic growth acc
Slide 13: Credit Quality – 3Q15
Credit Quality – 3Q15 • 28 % decline in NPAs in 3 Q 2015 vs . same period in 2014 . • $ 9 . 7 million decline in 3 Q 2015 vs . the end of 2 Q 2015 . • Approx $ 11 million of additional assets under contract or already resolved since quarter end . Non - Rate Sensitive Deposits include NIB, NOW and Sa
Slide 14: Capital and TBV – 3Q15
Capital and TBV – 3Q15 Combination of Capital Raise and 2 M&A deals: – TBV up 15.3% since 3Q 2014. – Projected TBV at end of 2016 is $14.92 per share (assumes consensus earnings and $0.05 quarterly dividend) • 25 bps – 30 bps of capital build per quarter • Expect slower level of asset growth as we “
Slide 15: Investment Rationale
• Material 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 liquidity