Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q1 2023 Earnings Presentation
33 slides from Ameris Bancorp's earnings presentation, Apr 27, 2023
Slide 1: 1st Quarter 2023 Results Investor Presentation
1st Quarter 2023 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: Ameris Profile Investment Rationale
Ameris Profile Investment Rationale Top of peer financial results Culture of discipline – credit, liquidity, expense control, capital preservation Proven liquidity management supported by strong, stable deposit base Proven stewards of shareholder value – TBV has grown 13% annualized over past five y
Slide 4: Ameris Profile Focus on Shareholder Value
Ameris Profile Focus on Shareholder Value
Slide 5: 1st Quarter 2023 Financial Results
1st Quarter 2023 Financial Results
Slide 6: 1Q 2023 Operating Highlights
1Q 2023 Operating Highlights Net income of $60.4 million, or $0.87 per diluted share PPNR ROA(1) of 2.07% for 1Q23 Growth in tangible book value(1) of $0.87 per share, or 11.6% annualized, to $30.79 Adjusted efficiency ratio(1) of 51.99% Nonperforming assets, excluding government-guaranteed loans, a
Slide 7: Financial Highlights
Financial Highlights 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods 3 – Excludes serviced GNMA-guaranteed mortgage loans (dollars in thousands, except per share data) Quarter to Date Results 1Q
Slide 8: Diversified Revenue Stream
Diversified Revenue Stream Strong revenue base of net interest income from core banking division Additional revenue provided by our diversified lines of business Improved mix of earning assets as excess liquidity was deployed in the investment and loan portfolios Mortgage Banking Activity Retail mor
Slide 9: Strong Net Interest Margin
Strong Net Interest Margin Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 1Q23 $ 339.8 9.40% $ 223.2 7.68% $563.0 8.72% 4Q22 $ 399.9 8.16% $ 213.0 7.46% $612.9 7.92% 3Q22 $ 596.3 6.58% $ 528.5 5.90% $1,124.7 6.26% Above peer group margin, at 3.76% Net interest income
Slide 10: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights Management continues to deliver high performing operating efficiency Total adjusted operating expenses increased $4.6 million in 1Q23 compared with 4Q22: Increase of $2.4 million in 1Q23 banking division
Slide 11: Balance Sheet Trends
Balance Sheet Trends Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: -1.8% asset sensitivity in -100bps -0.8% asset sensitivity in -50bps 0.8% asset sensitivity in +50bps 1.5% asset sensitivity in +100bps A 25bps rate increase positively affects net interest margin
Slide 12: Proven Liquidity Plan
Proven Liquidity Plan At March 31, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 2,021 $ - $ 2,021 Unpledged Securities 633 - 633 External Sources FHLB 4,876 2,498 2,378 FRB Discount Window 2,717 - 2,717 Brokered Deposits 2,796 1,258 1,538 Other 127 - 127 To
Slide 13: Investment Portfolio
Investment Portfolio Investment Highlights Almost 97% of available-for-sale (AFS) investments are in U.S. Treasuries, Agency MBS, SBA and other U.S. agencies No transfers to held-to-maturity (HTM) portfolio – all securities classified as HTM were previously purchased for CRA purposes Unrealized loss
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base Deposit Highlights Total deposits increased $434.7 million in 1Q23 compared with 4Q22 Noninterest-bearing deposits decreased $631.7 million, or 8.0% MMDAs decreased $416.8 million, or 8.0% NOWs decreased $63.8 million, or 1.6% CDs increased $1.49 billion, or 101.4% Exclusive
Slide 15: Capital and TBV Proven Stewards of Shareholder Value
Capital and TBV Proven Stewards of Shareholder Value Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 13% annualized TBV increased $0.87 per share in 1Q23: $0.72 from retained earnings $0.16 from impact of OCI ($0.01) from all other items includin
Slide 16: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio 1Q23 Loan Portfolio Loan portfolio is well diversified across loan types and geographies CRE and C&D concentrations were 287% and 80%, respectively, at 1Q23 Non-owner occupied office loans totaled $1.4 billion at 1Q23, or 7.1% of total loans Continued strong asset quality
Slide 18: Loan Production vs Growth
Loan Production vs Growth 1Q23 loan production was spread across many product lines, which continues to contribute to portfolio diversification Overall, 1Q23 production exhibited a 30% decline from 4Q22, a reflection of the Bank’s current lending posture and pricing standards in response to an uncer
Slide 19: Loan Balance Changes
Loan Balance Changes 1Q23 Loan Balance Changes 1Q23 loan growth was varied across several loan types and totaled $142.6 million, or 2.9% annualized CRE loan growth of $116.8 million was comprised of owner-occupied CRE ($169.6 million) and multi-family ($8.7 million) loans, offset by a decrease in in
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses Increase in reserve during 1Q23 due to economic forecast, specifically CRE and home price indices The ACL on loans totaled $242.7 million at 1Q23, a net increase of $37.0 million, or 18.0% from 4Q22 The reserve for unfunded commitments totaled $52.8 million, an increase o
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses Results were primarily driven by negative forecasts for CRE and home prices over the next four quarters The ACL for the two CRE categories (RE – C&D, RE – CRE) exhibited the highest increase from 4Q22 of $29.9 million The blended ACL % for those two categories was 1.32% a
Slide 22: NPA / Charge-Off Trend
NPA / Charge-Off Trend Net of GNMA-guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.33% at 1Q23 vs 0.34% at 4Q22 Total NPAs increased $6.8 million, to $160.3 million, primarily as a result of: $5.4 million increase in 90+ past due GNMA-guaranteed mortgage loans $1.8 mill
Slide 23: Problem Loan Trends
Problem Loan Trends Total classified loans decreased $15.0 million, primarily the result of successful collection activities Total criticized loans (special mention + classified), excluding GNMA-guaranteed mortgage loans, declined as a percentage of total loans to 1.34% at 1Q23 The largest component
Slide 24: Investor CRE Loans
Investor CRE Loans 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 investor CRE l
Slide 25: Office Portfolio
Office Portfolio 85% of non-owner occupied office loans are located in MSAs in the Bank’s footprint; overall, the average vacancy was < 10% The average maturity of fixed-rate loans is ~4.25 years; only 18% of loans mature through 2024 The portion of the ACL apportioned to non-owner occupied office l
Slide 26: Commercial Real Estate Production
Commercial Real Estate Production 1Q23 Commercial Real Estate Production Summary: 1Q23 Residential Construction Production Summary: 1Q23 production of C&D and CRE loans - $302.0 million in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 0.7:1 Total spec
Slide 27: Equipment Finance Portfolio
Equipment Finance Portfolio Ameris purchased $665.8 million of equipment finance loans in December 2021 and successfully integrated them during 2022 to include credit, accounting, compliance, technology and HR Total loans were $1.1 billion, or 5.6% of Ameris’ total portfolio. The overall average loa
Slide 28: Appendix
Appendix AMERIS BANCORP
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 33: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights March 31, 2023