Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Investor Presentation (May 2024)
27 slides from Ameris Bancorp's investor presentation, May 21, 2024
Slide 1: May 2024 Investor Presentation
May 2024 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements 1 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,” “pl
Slide 3: Ameris Profile Investment Rationale
Ameris Profile Investment Rationale • Top of peer financial results with culture of discipline – credit, liquidity, expense control, capital • Diversified loan portfolio among geographies and product lines • Strong Southeast markets • Stable core deposit base • Experienced executive team with skills
Slide 4: 1Q 2024 Operating Highlights
1Q 2024 Operating Highlights 3 • Net income of $74.3 million, or $1.08 per diluted share • Adjusted net income (1) of $75.6 million, or $1.10 per diluted share • PPNR ROA (1) of 1.89% for 1Q24, which includes 4bps negative impact from FDIC special assessment • Adjusted efficiency ratio (1) of 54.56%
Slide 5: Financial Highlights
Financial Highlights 4 1 – Considered Non - GAAP measures – See reconciliation of GAAP to Non - GAAP measures in Appendix (dollars in thousands, except per share data) Quarter to Date Results 1Q24 4Q23 Change 1Q23 Change Net Income $ 74,312 $ 65,934 13% $ 60,421 23% Adjusted Net Income (1) $ 75,612
Slide 6: Strong Net Interest Margin
Strong Net Interest Margin 5 • Net interest income (TE) of $202.3 million in 1Q24, compared with $207.0 million in 4Q23 – Interest income (TE) decreased $2.8 million – Interest expense increased $2.0 million • Average earning assets stable at $23.2 billion • Total deposit costs up 13bp in 1Q24, comp
Slide 7: Diversified Revenue Stream
Diversified Revenue Stream 6 • Strong revenue base of net interest income from core banking division • Additional revenue provided by our diversified lines of business Mortgage Banking Activity • Mortgage banking activity was 15% of total revenue in 1Q24 • Purchase business increased to 87% in 1Q24
Slide 8: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses (1) and Efficiency Ratio (1) Expense Highlights 7 • Management continues to deliver high performing operating efficiency • Adjusted efficiency ratio of 54.56% in 1Q24, compared with 52.87% in 4Q23 • Total adjusted operating expenses increased $
Slide 9: Strong Core Deposit Base
Strong Core Deposit Base 8 Deposits by Product Type Deposit Type Balance (in 000s) % of Total Count Average per account (in 000’s) NIB 6,538,322 31.1% 301,275 21.7 NOW 3,868,998 18.4% 44,215 87.5 MMDA 6,132,745 29.2% 32,030 191.5 Savings 788,665 3.8% 64,427 12.2 CD 3,668,660 17.5% 41,129 89.2 Total
Slide 10: Capital Strength
Capital Strength 9 Capital Highlights • Ameris is well capitalized with minimal unrealized losses in the investment portfolio • CET1 ratio is strong at 11.36% • CET1, net of unrealized losses on bond portfolio, remains strong at 11.11% • Net unrealized losses in AFS portfolio were $50 million at Mar
Slide 11: Proven Stewards of Shareholder Value
19.73 20.81 20.29 20.81 20.44 20.90 22.46 23.69 25.27 26.45 27.46 26.26 26.84 27.89 28.62 29.92 30.79 31.42 32.38 33.64 34.52 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Tangible Book
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 1 Q24 Loan Portfolio 11 • Loan portfolio is well diversified across loan types and geographies and managed by a seasoned credit staff • Asset quality metrics remain stable and better than historic averages • CRE and C&D concentrations were 281% and 76%, respectively, at 1Q
Slide 13: Loan Balance Changes
Loan Balance Changes 1Q24 Loan Balance Changes 12 • Loan balances increased $331 million during 1Q24, or 6.5% annualized, the majority being the result of fundings on existing construction loans and seasonal funding of warehouse lines (in millions) $135 $73 $71 $70 $52 $(9) $(10) $(15) $(36) $(60) $
Slide 14: Allowance for Credit Losses
Allowance for Credit Losses 13 • Increase in reserve during 1Q24 due to forecasted economic conditions • The ACL on loans equated to 1.55% of total loans at 1Q24, compared with 1.52% at 4 Q23 • The ACL on loans totaled $320.0 million at 1Q24, a net increase of $ 12.9 mil lion, or 4.2%, from 4Q23 • D
Slide 15: Allowance for Credit Losses by Loan Type
Allowance for Credit Losses 14 1Q24 CECL Reserve by Loan Type Reserve Methodology • Moody’s March 2024 Baseline forecast model provided material inputs into ACL • Primary model drivers included: • US and regional unemployment rates & home price indices • US GDP • US and state - level CRE price index
Slide 16: NPA / Charge-Off Trend
NPA / Charge - Off Trend 15 • NPAs, as a percentage of total assets, continue to normalize and remain at an acceptable level • Total NPAs in creased $8.4 million, to $182.7 million, primarily a result of: • $5.6 million increase in commercial loans • $5.2 million net increase in mortgage loans • Off
Slide 17: Criticized/Classified Loan Trends
Criticized/Classified Loan Trends 16 • Total criticized loans (including special mention ), excluding GNMA - guaranteed mortgage loans, de creased $37.7 million in 1Q24 • For 1Q24, classified loans, excluding GNMA - guaranteed mortgage loans, in creased $28.8 million • The majority of criticized loa
Slide 18: Investor CRE Loans
Investor CRE Loans 17 Stratification of Investor CRE Portfolio • Non - Owner Occupied CRE portfolio is well diversified • Over 80% of CRE loans are located in MSAs in the Bank’s five - state footprint, which exhibit population growth forecasts exceeding the national average • Overall, past dues for
Slide 19: Office Portfolio
Office Portfolio • Central Business District (CBD) locations represented 8 % of Investor properties ; Charleston, SC, Orlando, FL and Tampa, FL represent the largest CBD MSAs ( 88 % of total CBD properties) • The portion of the ACL allocated to Investor office loans increased from 1 . 87 % to 2 . 81
Slide 20: Equipment Finance Portfolio
Equipment Finance Portfolio 19 • Total loans were $1.35 billion, or 6.6% of the Bank’s total portfolio • The overall average loan size was $52,600 • Loan production totaled $181.8 million in 1Q24; the average FICO score on new loans was 749 • 30 - 89 day accruing past due loans were 1.11% of total l
Slide 21: Appendix
Appendix AMERIS BANCORP
Slide 22: Reconciliation of GAAP to Non-GAAP Measures
21 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 1Q24 4Q23 1Q23 Net Income $ 74,312 $ 65,934 $ 60,421 Adjustment items Gain on BOLI proceeds (998) - (486) FDIC special assessment 2,909 11,566 - Gain on sale of premises - (1,903) - Tax effect of adjustment items (611) (2,029) -
Slide 23: Reconciliation of GAAP to Non-GAAP Measures
22 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 Adjusted Noninterest Expense Total noninterest expense 148,711$ 149,011$ 141,446$ 148,403$ 139,421$ Adjustment items: FDIC special assessment (2,909) (11,566) - - - Gain on sale of premises - 1,903 - - -
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
23 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 Total shareholders' equity 3,484,738$ 3,426,747$ 3,347,069$ 3,284,630$ 3,253,195$ Less: Goodwill 1,015,646 1,015,646 1,015,646 1,015,646 1,015,646 Other intangibles, net 83,527 87,949 92,375 96,800 101,4
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
24 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 Net income 74,312$ 65,934$ 80,115$ 62,635$ 60,421$ Plus: Income taxes 23,138 24,452 24,912 20,335 18,131 Provision for credit losses 21,105 22,952 24,459 45,516 49,729 Pre-tax pre-provision net revenue (
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
25 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 Total shareholders' equity 3,484,738$ 3,426,747$ 3,347,069$ 3,284,630$ 3,253,195$ 3,197,400$ 3,119,070$ 3,073,376$ 3,007,159$ 2,966,451$ 2,900,770$ Less: Goodwill 1,015,646
Slide 27: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights March 31, 2024