Slide 1: Ameris Bancorp 1st Quarter 2016 Earnings Presentation
Ameris Bancorp 1 st Quarter 2016 Earnings Presentation Edwin W. Hortman, Jr. – President & CEO Dennis J. Zember, Jr. – EVP & CFO
Slide 2: Non-GAAP measures and forward-looking statements
This presentation contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . Management of Ameris Bancorp (the “Company”) uses these non - GAAP measures in its analysis of the Company’s
Slide 3: Corporate Profile
Corporate Profile • Founded in Moultrie, Georgia in 1971 • Executive team headquartered in Jacksonville, Florida. • Completed 17 acquisitions in the last decade, building a material presence in strong southeastern markets. • Four state footprint with 103 offices • $6.1 billion in total assets manage
Slide 4: Current Focus: top quartile operating results
Almost singular focus of our team right now is “to produce top quartile operating results, consistently . ” • Maintain double digit revenue growth with 12 % - 15 % growth in loans, funded almost entirely with low cost deposits augmented by highly profitable and growing lines of business (Mortgage, S
Slide 5: Executive Summary – 1Q 2016
• Operating Return on Average Assets of 1 . 18 % • Operating Return on Tangible Capital of 15 . 42 % . • Net Interest Margin of 3 . 80 % excluding accretion . Accretion income only 3 . 9 % of total revenue . • Making Headway on Operating Efficiency : – Net Overhead Ratio down to 1 . 78 % , from 2 .
Slide 6: 1st Quarter Operating Results
1 st Quarter Operating Results First Quarter 2016 Results • 33 % growth in spread income results from successful deployment of liquidity from 2015 M&A and organic growth . • Steady levels of accretion income despite increasingly small percentage of revenue and EPS . • Total credit costs inside our f
Slide 7: Revenues – 1Q16
Revenues – 1Q16 Spread revenue improved 30 % over 1 Q 15 . • Spread income and Margin upside – 32 % of earning assets yielding 3 . 00 % or less compared to quarterly loan production levels of approximately 4 . 42 % . • 3 . 29 % - Incremental margin (growth in spread compared to growth in earning ass
Slide 8: Non-Interest Income – 1Q16
Non - Interest Income – 1Q16 • Deposit charges up 54 % in 1 Q 16 vs . 1 Q 15 , resulting from BoA and M&S acquisitions . • Mortgage revenue up 36 . 4 % , mortgage net income up 47 . 2 % over 1 Q 15 . Additional mortgage bankers recruited in 4 Q at expected production levels . • Mortgage profitabilit
Slide 9: Mortgage Results – 1Q16
Mortgage Results – 1Q16 Mortgage Division Statistics ($’ in 000’s) 1Q16 4Q15 3Q15 2Q15 1Q15 Mortgage Origination Production $268,639 $254,237 $311,007 $285,626 $188,297 Open Pipeline (locked loans) $135,600 $94,478 $105,290 $115,888 $110,856 Purchase % 83% 84% 86% 79% 75% FHA/VA % 41% 41% 43% 43% 43
Slide 10: Expenses – 1Q16
Expenses – 1Q16 • Expense leverage is our management team’s primary focus in 2016 . • Lower OPEX at Bank level result of branch closures, lower FDIC amortization, lower R&M, lower incentive compensation . • Expect FICA expense to be $ 700 k lower in 2 Q . • FDIC indemnification expense of $ 0 . 8 mi
Slide 11: Loans – 1Q16
Loans – 1Q16 Total Loan Growth of $ 522 . 2 million against linked quarter from : • Organic Growth during 1 Q 16 of $ 59 million or 7 . 4 % annualized • Growth of $ 63 million related to purchased whole loan mortgage pools . Pools currently paying on about a 3 . 1 yr . avg . life . • Acquisition of
Slide 12: Deposits – 1Q16
Deposits – 1Q16 • 101 % - Percentage of all fixed rate loans (including short - duration mortgage arms) funded with non - rate sensitive deposits at 12 / 31 / 15 (up from 96 . 0 % at EOY 2014 ) . • $ 1 . 01 Billion – Growth in low cost, non - rate sensitive deposits in during 2015 . • 23 . 6 % – 5 Y
Slide 13: Tangible Book Value – 1Q16
Tangible Book Value – 1Q16 • Last 3 M&A deals have been neutral or accretive to TBV • Earnings less quarterly dividend grows TBV approximately 3.5% - 4.0% per quarter. Consistent Growth in TBV $10.26 $10.68 $10.99 $13.01 $11.81 $12.31 $12.65 $13.13 $7.00 $9.00 $11.00 $13.00 $15.00 2Q 14 3Q 14 4Q 14
Slide 14: Investment Rationale
• Diversified loan portfolio . Approximately 42 % in CRE and only 8 % in Construction/A&D • Asset sensitive – over 100 % of fixed rate loans funded with non - rate sensitive deposits . • Capital levels – capital levels are adequate and building, ensuring no need for additional outside capital . Inve