Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q1 2020 Earnings Presentation
22 slides from Ameris Bancorp's earnings presentation, Apr 23, 2020
Slide 1: 1st Quarter 2020 Results Investor Presentation
1st Quarter 2020 Results Investor Presentation Exhibit 99.2
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,” “e
Slide 3: COVID-19 Update
COVID-19 Update Business Enacted our Disaster Relief Program, which allows 90 days extension for any borrower impacted by COVID-19 Participated in SBA Paycheck Protection Program (“PPP”) - $684.5 million of approved loans in first round of stimulus Prudently advancing on existing lines of credit and
Slide 4: Risk Management, Operating Strength, Diversification
Risk Management Operating Strength Diversification Entered pandemic in position of strength and forward momentum: Well capitalized Strong liquidity and continued funding opportunities Premier Southeastern markets Historically top quartile return on assets (>1.50% ROA for 2019) Disciplined rate cuts
Slide 5: 1st Quarter 2020 Financial Results
1st Quarter 2020 Financial Results
Slide 6: Earnings Summary - Adjusted Basis
Earnings Summary - Adjusted Basis (dollars in thousands, except per share data) Quarter to Date Results 1Q20 1Q19 Change Adjusted Net Income $ 39,205 $ 42,587 -8% Adjusted Net Income Per Share $ 0.56 $ 0.90 -38% Adjusted Return on Assets 0.87% 1.51% -42% Adjusted Return on TCE 10.98% 18.82% -42% Net
Slide 7: 1Q 2020 Operating Highlights
1Q 2020 Operating Highlights Net income of $19.3 million, after pre-tax provision for credit losses of $41.0 million and servicing asset write-downs of $22.2 million Growth in adjusted total revenue of $12.9 million, or 6.1% when compared with 4Q19 Adjusted efficiency ratio of 59.87%, compared with
Slide 8: Operating Highlights
Operating Highlights (dollars in thousands) For the quarter 1Q20 1Q19 Asset Growth -18,031 212,760 Asset Growth Rate -0.40% 7.44% Organic Loan Growth 275,630 -17,404 Organic Loan Growth Rate 8.60% -0.85% Total Revenue 202,324 130,166 Total Revenue Growth -15.47% 0.44% Adjusted Operating Expenses(1)
Slide 9: Total Revenue
Total Revenue Spread Revenues Quarterly growth in average earning assets of $125.5 million, or 3.1% annualized, from 4Q19 to 1Q20 Net Interest Margin of 3.70% in 1Q20, compared with 3.86% in 4Q19 Decrease in margin in challenging rate environment as reduction in accretion income and the Fed rate cut
Slide 10: Net Interest Margin
Net Interest Margin Stable margins over the entire rate cycle. Loan Production Details Period Fixed Rate Variable Rate Total 1Q20 $ 481.5 4.37% $ 436.9 4.75% $ 918.4 4.55% 4Q19 $ 553.2 4.26% $ 543.2 5.15% $1,096.3 4.70% 3Q19 $ 489.9 4.58% $ 684.1 5.43% $1,173.9 5.08% Spread Income and Margin: Averag
Slide 11: Expenses Steady
Expenses Steady, Adjusted Operating Expenses(1) OPEX Highlights: 1 – Adjusted Operating Expenses exclude merger and conversion costs, executive retirement benefits, restructuring charges related to branch consolidation plan, financial impact of hurricanes, expenses related to SEC and DOJ investigati
Slide 12: Capital and TBV
Capital and TBV Consistent Growth in TBV Steady Capital Levels Support Growth Rate Historically, consistent growth in TBV TBV decreased $0.37 per share in 1Q20: $0.12 from retained earnings $0.31 from change in OCI ($0.81) from adoption of CECL $0.01 from all other items including share repurchase T
Slide 13: Credit Quality and Loan Diversification
Credit Quality and Loan Diversification
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio 1Q20 Loan Portfolio Diversified mortgage loan & HELOC portfolio represents the largest category of loans at 20% of total Participations purchased < 1% of total loans Average loan size is $56,000 across all loan types Only 12.0% of total loans are Construction or A&D loans
Slide 15: COVID-19 Response
COVID-19 Response 1Q20 COVID-related Payment Extensions As a % of Portfolio Volume Beginning on March 11th, we enacted our Disaster Relief Program, which allowed any borrower impacted by COVID-19 the opportunity to receive a payment extension for up to 90-days Through April 15th, we had provided pay
Slide 16: CECL Impact
CECL Impact Day 1 CECL adoption resulted in an increase in the ALLL of $78.6 million for a total reserve of $116.8 million, or 0.91% of Total Loans. Additionally, there was $13.8 million reserved for unfunded commitments. 1Q20 provision expense was impacted by loan growth, 1Q net charge-offs and add
Slide 17: Non-performing Asset Trend
Non-performing Asset Trend Non-Performing Assets increased to $111.6 million, at 1Q20 primarily as a result of: the adoption of CECL, which reduced the volume of purchase discounts on acquired NPAs by $8.2 million, Loans 90+ days past due at USPF of $6.3 million
Slide 18: Investor CRE Loans
Investor CRE Loans >90% of CRE assets are concentrated within our four-state footprint, primarily in the Atlanta, Jacksonville, Orlando, Tampa, Tallahassee, Columbia, Savannah and Charleston MSAs At 1Q20, Past Due and Nonaccrual loans totaled 34bps and 24bps, respectively. Exposure to restaurants to
Slide 19: Hotel Exposure at 3/31/20
Hotel Exposure at 3/31/20 Hotel exposure totaled $513.6 million at 3/31/20, or 3.9% of Total Loans (ex HFS) Approximately 13% of total committed exposure guaranteed by US Government Agencies (SBA or USDA) Global Top-Tier brands represent ~75% of exposure. All National brands totaled ~94% of outstand
Slide 20: 1Q20 Commercial Real Estate Production
1Q20 Commercial Real Estate Production 1Q20 Commercial Real Estate Production Summary: 1Q20 Construction and Development Loan Production Summary: Loan Type Outstanding (MM's) Committed Exposure (MM's) Avg Loan Size (000's) RRE Construction - Spec $ 37.6 $ 105.1 $ 250.3 RRE Construction - Model $ 2.3
Slide 21: Mortgage Loans
Mortgage Loans SFR Mortgage (ex HFS) 21.0% Mortgage Portfolio consists of: Legacy Bank mortgage loans - $456.87 million Mortgage Division originated loans - $1,763.0 million Purchased mortgage pools - $186.1 million Home Equity LOCs - $298.6 million Mortgage division production is underwritten to se
Slide 22: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights March 31, 2020