Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2024 Earnings Presentation
29 slides from Ameris Bancorp's earnings presentation, Jul 26, 2024
Slide 1: 2nd Quarter 2024 Results Investor Presentation
2nd Quarter 2024 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 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 projected to grow approximately 1.7x the national average over the
Slide 4: 2Q 2024 Operating Highlights
2Q 2024 Operating Highlights • Net income of $90.8 million, or $1.32 per diluted share; Adjusted net income (1) of $80.8 million, or $1.17 per diluted share • Strong deposit growth of $446.8 million, or 8.6% annualized – Brokered CDs decreased $5.2 million • Net interest income (TE) increased $10.5
Slide 5: 2Q 2024 Strategic Transactions
2Q 2024 Strategic Transactions During the second quarter of 2024, the Company executed several strategic transactions: • The Company recognized a $4.7 million gain on sale of mortgage servicing rights – Sale represented approximately 18% of the Company’s MSR portfolio, targeting the most rate sensit
Slide 6: Financial Highlights
Financial Highlights (dollars in thousands, except per share data) Quarter to Date Results Year to Date Results 2Q24 1Q24 Change 2Q23 Change 2024 2023 Change Net Income $ 90,785 $ 74,312 22% $ 62,635 45% $ 165,097 $ 123,056 34% Adjusted Net Income(1) $ 80,763 $ 75,612 7% $ 62,635 29% $ 156,375 $ 122
Slide 7: Strong Net Interest Margin
Strong Net Interest Margin $230.0 5.25% Net Interest Income (TE) Spread Income and Margin $225.0 (in millions) 5.00% $220.0 • Net interest income (TE) of $212.9 million in 2Q24, 4.75% compared with $202.3 million in 1Q24 $215.0 – Interest income (TE) increased $17.9 million $212.9 4.50% – Interest e
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 FTE Revenue Sources (in millions) Mortgage Banking Activity 120% • Mortgage banking activity was 15% of $277.8 total revenue in 2Q24 $
Slide 9: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) Expense Highlights 180.0 • Management continues to deliver high performing Adjusted Operating Expenses operating efficiency 160.0 (in millions) $45.6 140.0 $40.8 $40.4 • Adjusted efficiency ratio of 55.00% in 2Q24, $4
Slide 10: Strong Core Deposit Base
Strong Core Deposit Base 2Q24 Highlights Deposits by Product Type Average per • Total deposits grew $446.8 million, or 8.6% Deposit Balance % of Total Count account annualized, during 2Q24 Type (in 000s) (in 000’s) • Brokered deposits decreased $5.2 million NIB 6,649,220 31.0% 304,119 21.9 • Noninte
Slide 11: Capital Strength
Capital Strength Strong Capital Base Capital Highlights • The Company is well capitalized with minimal 14.0% 14.5% 14.6% 14.6% unrealized losses in the investment portfolio 13.4% • CET1 ratio is strong at 11.4% 10.8% 11.2% 11.4% 11.4% 10.3% • CET1, net of unrealized losses on bond portfolio, remains
Slide 12: Capital and TBV
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 11% annualized • TBV increased $1.27 per share in 2Q24: – $1.16 from retained earnings – $0.03 from impact of OCI – $0.08 from all other items
Slide 13: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio 2Q24 Loan Portfolio Portfolio Highlights Agriculture 1% • Loan portfolio is well diversified across loan types and geographies and managed by a seasoned credit staff SFR Mortgage & HELOC • Asset quality metrics remain stable and better C&I 23% 24% than historical averages
Slide 15: Loan Balance Changes
Loan Balance Changes (in millions) 2Q24 Loan Balance Changes $200 $180 $153 $150 $102 $100 $73 $50 $- $(8) $(15) $(23) $(28) $(50) $(42) $(100) Warehouse Premium Finance CFIA (1) RE - C&D Indirect Consumer Municipal RE - CRE RE - RES Lending • Loan balances increased $392 million during 2Q24, or 7.7
Slide 16: Allowance for Credit Losses
Allowance for Credit Losses 2Q24 CECL Reserve (in millions) Reserve Summary • Increase in reserve during 2Q24 due to potential for negative economic conditions • The ACL on loans equated to 1.60% of total loans at 2Q24, compared with 1.55% at 1Q24 • The ACL on loans totaled $336.2 million at 2Q24, a
Slide 17: Allowance for Credit Losses
Allowance for Credit Losses 2Q24 ACL Reserve by Loan Type Net 3/31/24 Outstanding ACL ACL Change from Loan Type (MM's) (MM's) % ACL (MM's) 1Q24 CFIA $ 2,861.0 $ 66.5 2.33% $ 63.8 $ 2.7 Consumer Installment $ 217.8 $ 3.5 1.58% $ 3.9 $ (0.5) Indirect $ 16.3 $ 0.0 0.17% $ 0.0 $ (0.0) Municipal $ 455.0
Slide 18: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets 0.80% 0.74% 0.71% 0.70% 0.69% 2Q24 Credit Summary 0.58% 0.57% 0.60% • NPAs, as a percentage of total assets and 0.50% net of GNMA-guaranteed mortgage loans, 0.38% 0.39% 0.40% 0.33% remained stable at 0.39% at 2Q24 compared 0.30% 0.27% with 0.38% at 1Q24 0
Slide 19: Problem Loan Trends
Problem Loan Trends (in millions) $350 1.64% Highlights 1.52% • Total criticized loans (including special $300 1.43% mention), excluding GNMA- 1.40% 1.31% guaranteed mortgage loans, decreased $19.1 million in 2Q24 $250 • For 2Q24, classified loans, excluding GNMA-guaranteed mortgage loans, increased
Slide 20: Investor CRE Loans
Investor CRE Loans Multi- Family Avg Size 6% Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Construction Investor 11% CRE Construction Loans: 23% RRE - Presold $ 308.9 1.15% 0.14% $ 257.4 RRE - Spec & Models $ 220.0 0.00% 0.00% $ 250.0 RRE - Lots & Land $ 119.6 0.01% 0.00% $ 446.2 RRE -
Slide 21: Office Portfolio
Office Portfolio Investor Office Total Office Portfolio by Loan Type Outstanding 1.43B Unfunded 0.17B Construction Owner- $239.6 Total Commited Exposure 1.59B Occupied $522.1 Allowance Coverage 2.84% PD Ratio 0.00% NPL Ratio 0.46% Criticized Ratio 1.27% Criticized ACL Coverage 224% Average LTV* 60%
Slide 22: Equipment Finance Portfolio
Equipment Finance Portfolio (in millions) Highlights $1,400 $1,421 $1,351 $1,200 $1,287 • Total loans were $1.42 billion, or 6.8% of $1,210 $1,175 the Company’s total portfolio $1,000 $800 • The overall average loan size was $54,200 $600 • Loan production totaled $187.7 million in 2Q24; the average
Slide 23: Appendix
Appendix AMERIS BANCORP
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) Quarter to Date Year to Date 2Q24 1Q24 2Q23 2024 2023 Net Income $ 90,785 $ 74,312 $ 62,635 $ 165,097 $ 123,056 Adjustment items Gain on sale of MSR (4,713) - - (4,713) - Gain on conversion of Visa Class B-1 stock (12,554) - - (12,55
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 2Q24 1Q24 4Q23 3Q23 2Q23 2024 2023 Adjusted Noninterest Expense Total noninterest expense $ 155,357 $ 148,711 $ 149,011 $ 141,446 $ 148,403 $ 304,068 $ 287,824 Adjustment items: FDIC special assessment 89
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date (dollars in thousands) 2Q24 1Q24 4Q23 3Q23 2Q23 Total shareholders' equity $ 3,566,614 $ 3,484,738 $ 3,426,747 $ 3,347,069 $ 3,284,630 Less: Goodwill 1,015,646 1,015,646 1,015,646 1,015,646 1,015,646 Other intangibles, net 79,120 83,527 87,
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) 2Q24 1Q24 4Q23 3Q23 2Q23 2024 2023 Net income $ 90,785 $ 74,312 $ 65,934 $ 80,115 $ 62,635 $ 165,097 $ 123,056 Plus: Income taxes 35,717 23,138 24,452 24,912 20,335 58,855 38,466 Provision for credit loss
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures As of (dollars in thousands) 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Total shareholders' equity $ 3,566,614 $ 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 Less: Goodwil
Slide 29: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights June 30, 2024