Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2021 Earnings Presentation
29 slides from Ameris Bancorp's earnings presentation, Oct 29, 2021
Slide 1: 3rd Quarter 2021 Results Investor Presentation
3rd Quarter 2021 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 Operating Strength • Historically top quartile return on assets (> 1.50% ROA for last three years) • Focus on expense control and improved operating efficiency • Strong liquidity and continued funding opportunities • Culture of disciplined banking Diversification • Geographic diversif
Slide 4: 3rd Quarter 2021 Financial Results
3rd Quarter 2021 Financial Results
Slide 5: Earnings Summary
Earnings Summary (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 3Q21 3Q20 Change 2021 2020 Change Net Income $ 81,680 $ 116,145 -30% $ 294,969 $ 167,703 76% Net Income Per Diluted Share $ 1.17 $ 1.67 -30% $ 4.23 $ 2.42 75% Return on Assets 1.47% 2.33% -37%
Slide 6: 3Q 2021 Operating Highlights
3Q 2021 Operating Highlights • Net income of $81.7 million, or $1.17 per diluted share • Adjusted net income(1) of $83.9 million, or $1.20 per diluted share • Organic loan growth of $43.7 million, or 1% annualized (and $251.3 million, or 7.0% annualized, exclusive of PPP loans), during 3Q21 • Adjust
Slide 7: 3Q21 YTD Operating Highlights
3Q21 YTD Operating Highlights • Net income of $295.0 million, or $4.23 per diluted share • Adjusted net income(1) of $287.2 million, or $4.12 per diluted share • Adjusted efficiency ratio(1) of 55.05%, compared with 52.00% for YTD 2020 • Adjusted ROA(1) of 1.79%, compared with 1.39% for YTD 2020 • A
Slide 8: Operating Highlights
Operating Highlights (dollars in thousands) For the quarter For the year-to-date period 3Q21 3Q20 2021 2020 Asset Growth (1) 646,210 1,222 2,094,503 1,631,272 Asset Growth Rate 11.81% 0.02% 13.66% 11.92% Organic Loan Growth 43,748 440,436 343,614 2,125,117 Organic Loan Growth Rate 1.18% 12.15% 3.16%
Slide 9: Net Interest Margin
Net Interest Margin $200.0 5.50% Net Interest Income (TE) Spread Income and Margin: $190.0 (in millions) 5.25% • Average earning assets up $496.9 million, $180.0 5.00% while spread income decreased $194,000 compared with 2Q21 $170.0 4.75% • Margin down 12bps from 2Q21: $166.2 $160.0 $163.9 $164.8 $1
Slide 10: Noninterest Income
Noninterest Income Noninterest Income Trends Noninterest Income Highlights: Noninterest Income Noninterest Income (in millions) • Mortgage banking $180.0 – Revenue decreased $13.8 million, or 19.6%, in 3Q21 compared with 2Q21 $159.0 – Production decreased $335.3 million, $160.0 $9.5 or 14.0%, over t
Slide 11: Expenses
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights: 175.0 Adjusted Operating Expenses • Total adjusted operating expenses decreased (in millions) $120,000 in 3Q21 compared with 2Q21 150.0 $70.8 $66.1 $66.0 125.0 $59.9 $56.1 • Increase of $3.6 million in 3Q21 Banking divisio
Slide 12: Retail Mortgage Division Details
Retail Mortgage Division Details Rationalization and Stabilization of Mortgage Operations: • Retail mortgage originations represents 17% of the Company’s adjusted pre-provision, pre-tax income for 3Q21, down from 49% this time last year • Approximately 80% of costs are variable costs relative to pro
Slide 13: Balance Sheet Trends
Balance Sheet Trends Earning Assets Deposit Composition (in millions) 25,000 3Q21 20,000 2Q21 15,000 1Q21 10,000 4Q20 5,000 3Q20 - 3Q20 4Q20 1Q21 2Q21 3Q21 0% 20% 40% 60% 80% 100% Loans Loans HFS Other Earning Assets Total Assets NIB NOW MMDA Savings CD 12
Slide 14: Capital and TBV
Capital and TBV $30.00 Tangible Book Value $25.00 $27.46 Consistent Growth in TBV $26.45 $25.27 $23.69 $20.00 $22.46 • Management remains focused on growth in TBV • TBV increased $1.01 per share in 3Q21: $15.00 – $1.02 from retained earnings $10.00 – ($0.01) from all other items including stock comp
Slide 15: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q21 Loan Portfolio Agriculture SFR Mortgage & 2% HELOC 20% C&I • Loan portfolio is well diversified across loan 19% types & geographies • C&I loans represent third-largest category of Multi-Family loans Municipal 3% 4% • PPP loans totaled $280.4 million at 3Q21, Consumer
Slide 17: Loan Growth
Loan Growth 3Q21 Loan Balance Changes $400 $358 $300 $200 $100 $78 $60 $19 $- $(23) $(22) $(100) $(73) $(73) $(72) $(200) $(208) $(300) CRE SFR Mtgs Premium C&I C&D Mtg WHSE Indirect Municipal Consumer PPP Finance • 3Q21 net loan growth was $43.7 million, even as PPP loan forgiveness ($207.5 million
Slide 18: Allowance for Loan Losses
Allowance for Loan Losses 3Q21 CECL Reserve • The ALL totaled $171.2 million at 3Q21, a net decrease of $3.9 million, or 2% from 2Q21 • The reserve for unfunded commitments totaled $16.8 million, a decrease of $5.5 million, or 25% from 2Q21 • During 3Q21, we reversed $9.7 million of previously-recor
Slide 19: COVID-19 Response
COVID-19 Response 3Q21 COVID-related Payment Extensions As a % of Portfolio Volume Active • Active COVID deferrals totaled $90.7 million, or 0.6% Loan Type Deferrals % Portfolio* of Total Loans Agriculture $ 2.2 1% C&I $ 1.5 0% • The largest remaining category of active deferrals is Investor CRE $ 2
Slide 20: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets $180.0 0.82% 0.90% Decreasing Non-Performing Assets $160.0 0.80% $18.2 • Non-Performing Assets (“NPAs”) increased $0.3 $140.0 $7.0 0.70% million, to $71.1 million at 3Q21, primarily as a result $120.0 0.60% of: $100.0 0.48% 0.50% • $2.6 million increase i
Slide 21: Problem Loan Trends
Problem Loan Trends $500 $450 2.92% • Total Classified Loans decreased 2.71% $27.4 million, primarily the result of $400 2.56% improved financial performance and $350 lower deferrals in the hotel sector. Criticized Loans (Special Mention + 2.05% $300 1.91% Classified) decreased $40.4 million 1.81% 1
Slide 22: Hotel Exposure
Hotel Exposure $$ Avg $$ Committed $$ Committed # of Balance Outstanding Balance Hotel Portfolio National Economy Loans (MM's) (MM's) (MM's) by Flag 52 Properties $63.3 Term CRE 87 $ 382.6 $ 379.6 $ 4.4 Non-Flagged 32 Properties In-Process Construction 3 $ 33.4 $ 15.4 $ 11.1 $35.0 Government Guarant
Slide 23: Investor CRE Loans
Investor CRE Loans • Approximately 94% of CRE loans are concentrated within our five-state footprint, primarily in the Bank’s primary MSAs of Atlanta, Jacksonville, Orlando, Charleston, Tampa and Greenville Avg Size Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Construction Loans: RRE -
Slide 24: Commercial Real Estate Production
Commercial Real Estate Production 3Q21 Construction and Development Loan Production Summary: Committed Avg Size • 3Q21 production of C&D and CRE loans - $1.21 Outstanding Exposure Commitment billion in total committed exposure Loan Type (MM's) (MM's) (000's) RRE Construction - Pre-Sold $ 68.2 $ 253.
Slide 25: Appendix
Appendix AMERIS BANCORP
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) For the quarter For the year to date period 3Q21 3Q20 2021 2020 Net Income $ 81,680 $ 116,145 $ 294,969 $ 167,703 Adjustment items Merger and conversion charges 183 (44) 183 1,391 Restructuring charges - 50 - 1,513 Servicing right im
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) 3Q21 2Q21 1Q21 4Q20 3Q20 2021 2020 Adjusted Noninterest Expense Total noninterest expense $ 137,196 $ 135,761 $ 148,798 $ 151,116 $ 153,692 $ 421,755 $ 447,513 Adjustment items: Merger and conversion char
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date (dollars in thousands) 3Q21 2Q21 1Q21 4Q20 3Q20 Total shareholders' equity $ 2,900,770 $ 2,837,004 $ 2,757,596 $ 2,647,088 $ 2,564,683 Less: Goodwill 928,005 928,005 928,005 928,005 928,005 Other intangibles, net 60,396 63,783 67,848 71,974
Slide 29: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights September 30, 2021