Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Investor Presentation (September 2020)
37 slides from Ameris Bancorp's investor presentation, Sep 21, 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020
Slide 2: Safe Harbor Statements
Safe Harbor Statements 2 CAUTIONARY NOTE REGARDING FORWARD - LOOKING STATEMENTS This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Secu
Slide 3: Overview of Ameris Bancorp
Overview of Ameris Bancorp AMERIS BANCORP
Slide 4: Company Profile
Company Profile 4 Company Overview Financial Highlights Franchise Footprint Summary Source: S&P Global Market Intelligence, Company documents Data as of or for the three months ended 6/30/20 (1) Largest by assets (2) Population growth deposit weighted by county; deposit data as of 6/30/19 (3) Define
Slide 5: Investment Highlights
Investment Highlights 5 • Experienced management team with extensive connections to local markets • Largest regional banking franchise by assets headquartered in Atlanta (1) • Deep presence in several of the Southeast’s most attractive markets • Conservative credit culture with a diversified loan po
Slide 6: Executive Leadership Team
Executive Leadership Team 6 H. Palmer Proctor Jr. has served as CEO of Ameris Bank and Ameris Bancorp since July 2019. Prior to his current role, Proctor held the positions of President and CEO of Fidelity Bank and President of Fidelity Southern Corporation, and served on the Boards of Directors of
Slide 7: Executive Leadership Team (continued)
7 Cindi H. Lewis has served as the Chief Administrative Officer since May 2006, Executive Vice President since May 2002 and Corporate Secretary since May 2000. Lewis was the Director of Human Resources from May 2000 to May 2006 and Senior Vice President from May 2000 to May 2002. CINDI H. LEWIS Chie
Slide 8: Growth in assets and acquisition history
$2.4 $3.0 $3.0 $3.0 $3.7 $4.0 $5.6 $6.9 $7.9 $11.4 $18.2 $19.9 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2 '20 Assets 8 American United Bank (2) Deposits: $100M Lawrenceville, GA United Security Bank (2) Deposits: $140M Sparta, GA Satilla Community Bank (2) Deposits: $134M Saint Marys
Slide 9: Diverse Franchise Across The South
Diverse Franchise Across The South 9 Georgia 64% Florida 29% South Carolina 6% Alabama 1% Source: S&P Global Market Intelligence Deposit data as of 6/30/19; data inclusive of acquisition of Fidelity Southern Corporation which closed on 7/1/19 (1) MSAs shown with population greater than 300,000 and A
Slide 10: Deep Presence in Growth Markets
10 Source: S&P Global Market Intelligence Deposit and branch count data as of 6/30/19; demographic data deposit weighted by county; data inclusive of acquisition of Fidelity Southern Corporation which closed on 7/1/19 (1) Nationwide peers includes all major exchange traded banks headquartered nation
Slide 11: Atlanta's Bank
11 Atlanta’s Bank Atlanta Deposit Market Share • Largest bank by assets headquartered in Atlanta • Approximately 31 % of deposits are in the Atlanta MSA Source: S&P Global Market Intelligence Deposit data as of 6/30/19; data inclusive of acquisition of Fidelity Southern Corporation which closed on 7
Slide 12: COVID-19 Update
COVID - 19 Update Business 12 • Enacted Disaster Relief Program, which allows up to two, 90 - day extensions for qualified borrowers impacted by COVID - 19 • Participated as a lender in SBA Paycheck Protection Program (“PPP”) - $ 1 . 08 billion of approved loans to 8 , 269 customers as of 6 / 30 / 2
Slide 13: Financial Highlights
Financial Highlights AMERIS BANCORP
Slide 14: Balance Sheet Growth
Balance Sheet Growth 14 $7.9 $11.4 $18.2 $18.2 $19.9 $6.6 $9.6 $14.0 $13.8 $15.6 $6.2 $8.6 $14.5 $14.5 $16.2 2017 2018 2019 Q1 '20 Q2 '20 Gross Loans Assets Deposits L/D Ratio: 91.3% Dollars in billions Source: S&P Global Market Intelligence Data as of the twelve months ended 12/31 each respective y
Slide 15: Profitability Metrics
Profitability Metrics 15 Return on Average Assets Return on Average Equity Net Interest Margin Efficiency Ratio 1.00% 1.24% 1.10% 0.43% 0.67% 1.26% 1.50% 1.52% 0.87% 0.89% 2017 2018 2019 Q1 '20 Q2 '20 ROAA Adj. ROAA 9.6% 10.3% 8.2% 3.2% 5.2% 11.7% 15.9% 13.6% 5.4% 8.9% 14.7% 19.2% 18.7% 11.0% 11.7%
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio 16 • Loan portfolio is well - diversified across all loan types • C&I loans represent the largest category of loans − PPP loans added $1.08 billion to this category in Q2 • Only 11% of total loans are construction or A&D loans • Average loan size is $61,700 across all loan
Slide 17: Granular Loan Portfolio
Granular Loan Portfolio • In - house lending limit is $50 million, or only 10% of legal lending limit of $482.6 million • Largest individual loan is $51 million total committed exposure • Total participations purchased are less than 1% of outstanding balances Relationship Groupings Total Committed E
Slide 18: Noninterest Income and Noninterest Expense
18 Noninterest Income Noninterest Expense $104.5 $118.4 $198.1 $54.4 $121.0 1.4% 1.2% 1.4% 1.2% 2.5% 2017 2018 2019 Q1 '20 Q2 '20 Service Charges Mortgage Other NII / Avg. Assets $231.9 $293.6 $471.9 $138.1 $155.8 3.2% 3.0% 3.2% 3.1% 3.3% 2017 2018 2019 Q1 '20 Q2 '20 Salaries and Benefits Occupancy
Slide 19: Our Lines of Business
19 Dollars in millions Source: S&P Global Market Intelligence, Company documents Data for the six months ended 6/30/20 (1) Nationwide Peers include all major exchange traded banks headquartered nationwide with total assets between $10 B and $25 B Our Lines of Business Mortgage SBA Loans Premium Fina
Slide 20: COVID-19 Response
20 COVID - 19 Response As a % of Portfolio Volume • Our COVID - 19 disaster program included an initial payment extension for up to 90 - days. A second, 90 - day extension is available for customers that continue to be impacted by the pandemic • Through July 15, 2020, we provided payment relief to a
Slide 21: Deferral Update
21 Deferral Update Dollars in millions Source: Company documents Data as of 9/15/20 Initial COVID - Related Deferrals COVID - Related Deferrals as of 9/15/20 Loan Category COVID Deferrals ($M) COVID Deferrals (%) Consumer $83.2 3% GGL 114.4 4% Mortgage 347.7 13% Commercial 2,202.4 80% Totals $2,747.
Slide 22: Construction, Term and Restaurant Exposure
22 • Total restaurant exposure (excluding PPP loans) is $127.1 million, or less than 1% of total loans • In addition, $78.1 million of PPP loans were funded to restaurant industry Investor CRE 19% AC&D 11% Multi - Family 2% Loan Type Outstanding ($M) % NPL % PD Avg Size Commitment ($000) Constructio
Slide 23: Hotel Exposure
23 • Hotel exposure totaled $569.5 million at 6/30/20, or 4.2% of Total Loans (excluding PPP loans ) • Approximately 12% of total committed exposure guaranteed by US Government Agencies (SBA or USDA ) • Top - Tier brands represent ~75% of exposure. All National brands totaled ~94% of outstanding bal
Slide 24: C&I Loans
C&I Loans • US Premium Finance Q2 ‘20 production statistics: C&I 23% Loan Type Outstanding ($M) % of Portfolio $$ NPL ($M) % NPL Avg Loan Size ($000) PPP Loans 1,082.0$ 32.8% -$ 0.00% 130.6$ Mortgage Warehouse / MSR 762.3$ 23.1% -$ 0.00% 332.0$ US Premium Finance 732.2$ 22.2% 10.2$ 1.39% 16.8$ Equip
Slide 25: Allowance for Loan Losses
$149.5 $208.8 $246.3 $4.9 $9.2 $7.1 $56.5 $37.5 ACL at 3/31/20 Loan Growth Net Charge- Offs Specific Reserves Forecast Model ACL ACL for UFC ACL + UFC 6/30/20 Allowance for Loan Losses 25 • The ACL totaled $208.8 million at 6/30/20, a net increase of $59.3 million, or 40% from 3/31/20 • The reserve
Slide 26: Provision and Asset Quality Trend
$8.4 $16.7 $19.8 $41.0 $88.2 0.12% 0.18% 0.10% 0.12% 0.27% 2017 2018 2019 Q1 '20 Q2 '20 Provision Expense NCOs / Avg. Loans $53.1 $63.0 $101.3 $111.6 $117.7 0.68% 0.55% 0.56% 0.61% 0.59% 2017 2018 2019 Q1 '20 Q2 '20 NPAs ($M) NPAs / Assets 26 Non - Performing Assets Net Charge - Offs & Provision Exp
Slide 27: Historical Capital Ratios
Historical Capital Ratios Leverage Ratio CET1 Ratio TCE / TA (1) TRBC 8.62% 8.22% 8.40% 8.25% 7.70% 2017 2018 2019 Q1 '20 Q2 '20 9.71% 9.17% 8.48% 8.48% 8.20% 2017 2018 2019 Q1 '20 Q2 '20 10.29% 10.07% 9.90% 9.82% 9.84% 2017 2018 2019 Q1 '20 Q2 '20 13.14% 12.23% 12.90% 12.94% 13.25% 2017 2018 2019 Q
Slide 28: Core Deposit Base
Demand Deposits $5.6 NOW Accounts $2.7 MMDA & Savings $4.9 Retail Time Deposits $1.8 Jumbo Time Deposits $0.6 Deposit Composition Cost of Total Deposits Core Deposit Growth Over Time 0.34% 0.62% 0.88% 0.71% 0.39% 2017 2018 2019 Q1 '20 Q2 '20 Core Deposit Base Dollars in b illions Source: S&P Global
Slide 29: Investment Portfolio
Investment Portfolio Investment Portfolio Detail Rating Distribution Agency Notes / Bonds 1.4% Municipals 7.6% Corporate Bonds 4.3% SBA 5.7% MBS 81.0% Securities Portfolio Dollars in thousands Data as of 6/30/20 29 Market Value Portfolio S&P / Moody's ($000) Concentration AAA/Aaa $1,111,294 89.7% AA
Slide 30: Additional Sources of Bank Funding and Dividend Capacity
Additional Sources of Bank Funding Dividend Capacity Holding Company Detail • Ameris has borrowing capacity through a number of wholesale sources including FHLB, correspondent banks and the Federal Reserve Bank • Under Georgia law, and among other conditions, Ameris Bank may not declare in any calen
Slide 31: Appendix
Appendix AMERIS BANCORP
Slide 32: Double Leverage and Interest Coverage
32 Dollars in millions ( 1 ) Adjusted for non - recurring items; see Appendix for reconciliation Double Leverage and Interest Coverage For the Year Ended, For the Quarter Ended, 2017 2018 2019 6/30/20 Equity Investment in Subsidiaries $953.8 $1,684.8 $2,689.0 $2,704.7 Consolidated Equity 804.5 1,456
Slide 33: Consolidated Capital Overview
33 Consolidated Capital Overview Dollars in millions (1) See Appendix for reconciliation of non - GAAP financial measures Actual: June 30, 2020 Total Assets 19,873 Tangible Assets (1) 18,864 Total Equity 2,460 Tangible Common Equity (1) 1,452 Tier 1 Common Capital 1,498 Tier 1 Capital 1,498 Tier 2 C
Slide 34: Financial summary table
2017 2018 2019 Q1 '20 Q2 '20 Balance Sheet Total Assets ($B) $7.9 $11.4 $18.2 $18.2 $19.9 Gross Loans ($B) $6.2 $8.6 $14.5 $14.5 $16.2 Total Deposits ($B) $6.6 $9.6 $14.0 $13.8 $15.6 Total Equity ($M) $804 $1,456 $2,470 $2,437 $2,460 Tangible Common Equity ($M) (1) $665 $894 $1,446 $1,419 $1,452 Loa
Slide 35: Non-GAAP Reconciliation
35 Non - GAAP Reconciliation 2017 2018 2019 Q1 '20 Q2 '20 Net Income $73,548 $121,027 $161,441 $19,322 $32,236 Adjustment Items: Merger & Conversion Charges 915 20,499 73,105 540 895 Executive Retirement Benefits -- 8,424 -- -- -- Restructuring Charges -- 983 245 -- 1,463 Servicing Right Impairment
Slide 36: Non-GAAP Reconciliation (cont.)
36 Non - GAAP Reconciliation (cont.) 2017 2018 2019 Q1 '20 Q2 '20 Total Noninterest Expense $231,936 $293,647 $471,937 $138,053 $155,768 Adjustment Items: Merger & Conversion Charges (915) (20,499) (73,105) (540) (895) Executive Retirement Benefits -- (8,424) -- -- -- Restructuring Charges -- (983)
Slide 37: Non-GAAP Reconciliation (cont.)
37 Non - GAAP Reconciliation (cont.) 2017 2018 2019 Q1 '20 Q2 '20 Total Assets $7,856,203 $11,443,515 $18,242,579 $18,224,548 $19,872,629 Less: Goodwill (125,532) (503,434) (931,637) (931,947) (928,005) Other intangible assets, net (13,496) (58,689) (91,586) (85,955) (80,354) Tangible Assets (non-GA
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