Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Investor Presentation (November 2023)
33 slides from Ameris Bancorp's investor presentation, Nov 15, 2023
Slide 1: November 2023 Investor Presentation
November 2023 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements 1 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,” “pl
Slide 3: Ameris Profile Investment Rationale
Ameris Profile Investment Rationale • Top of peer financial results with culture of discipline – credit, liquidity, expense control, capital • Proven liquidity management supported by strong, stable deposit base • Proven stewards of shareholder value – TBV has grown 13 % annualized over past five ye
Slide 4: Ameris Profile Focus on Shareholder Value
Ameris Profile 3 Focus on Shareholder Value 1 – Considered Non - GAAP measures – See reconciliation of GAAP to Non - GAAP measures in Appendix $28.62 $29.92 $30.79 $31.42 $32.38 $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 $32.00 $33.00 3Q22 4Q22 1Q23 2Q23 3Q23 Consistent Tangible Book Value (1) Growth
Slide 5: 3rd Quarter 2023 Financial Results
3 rd Quarter 2023 Financial Results
Slide 6: 3Q 2023 Operating Highlights
3Q 2023 Operating Highlights 5 • Net income of $80.1 million, or $1.16 per diluted share • PPNR ROA (1) of 2.01% for 3Q23 • Adjusted efficiency ratio (1) of 52.02% • TCE ratio (1) of 9.11% • Nonperforming assets, excluding government - guaranteed loans, as a percentage of total assets improved three
Slide 7: 2023 YTD Operating Highlights
2023 YTD Operating Highlights 6 • Net income of $203.2 million, or $2.94 per diluted share • PPNR ROA (1) of 2.03% • Growth in tangible book value (1) of $2.46 per share, or 11.0% annualized, to $32.38 • Adjusted efficiency ratio (1) of 52.49% • Net interest margin of 3.63% • Organic loan growth of
Slide 8: Financial Highlights
Financial Highlights 7 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 Re
Slide 9: Strong Net Interest Margin
Strong Net Interest Margin 8 Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 3Q23 $ 247.0 10.69% $ 374.0 8.69% $621.0 9.49% 2Q23 $ 341.7 9.87% $ 202.5 8.47% $554.3 9.35% 1Q23 $ 339.8 9.40% $ 223.2 7.68% $563.0 8.72% • Above peer group margin at 3.54% • Net interest inc
Slide 10: Diversified Revenue Stream
Diversified Revenue Stream 9 • Strong revenue base of net interest income from core banking division • Additional revenue provided by our diversified lines of business Mortgage Banking Activity • Retail mortgage activity has continued to stabilize back to pre - pandemic levels • Mortgage banking act
Slide 11: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses (1) and Efficiency Ratio (1) OPEX Highlights 10 • Management continues to deliver high performing operating efficiency • Adjusted efficiency ratio of 52.02% in 3Q23, compared with 53.41% in 2Q23 • Total adjusted operating expenses decreased $7.
Slide 12: Balance Sheet Trends
Balance Sheet Trends 11 • Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: – - 0.3% asset sensitivity in - 100bps – - 0.1% asset sensitivity in - 50bps – 0.1% asset sensitivity in +50bps – 0.2% asset sensitivity in +100bps • Approximately $7.2 billion, or 35%, of lo
Slide 13: Proven Liquidity Plan
Proven Liquidity Plan 12 At September 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,546 $ - $ 1,546 Unpledged Securities 677 - 677 External Sources FHLB 5,421 1,798 3,623 FRB Discount Window 2,635 - 2,635 Brokered Deposits 2,853 1,567 1,286 Other 127 -
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base 13 Deposit Highlights • Noninterest bearing deposits remained strong at 32% of total deposits • Total deposits increased $147.2 million in 3Q23 compared with 2Q23 • Noninterest - bearing deposits decreased $117.3 million, or 1.7% • MMDA and savings increased $359.6 million,
Slide 15: Capital Strength
Capital Strength 14 Capital Highlights • Ameris is well capitalized with minimal unrealized losses in the investment portfolio • CET1 ratio is strong at 10.82% • CET1, net of unrealized losses on bond portfolio, remains strong at 10.45% • Net unrealized losses in AFS portfolio were $78 million at Se
Slide 16: Capital and TBV: Proven Stewards of Shareholder Value
17.78 18.83 19.73 20.81 20.29 20.81 20.44 20.90 22.46 23.69 25.27 26.45 27.46 26.26 26.84 27.89 28.62 29.92 30.79 31.42 32.38 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Tangible Book Value C
Slide 17: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 18: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q23 Loan Portfolio 17 • Loan portfolio is well diversified across loan types and geographies • CRE and C&D concentrations were 283% and 79%, respectively, at 3Q23 • Non - owner occupied office loans totaled $1.45 billion at 3Q23, or 7.2% of total loans • Continued strong
Slide 19: Loan Production vs Growth
Loan Production vs Growth 18 • 3Q23 loan production was spread across many product lines, continuing to contribute to portfolio diversification • Overall, 3Q23 production exhibited a 19% decrease from 2Q23. Loan balance decline in 3Q23 was primarily driven by lower seasonal volume of Mortgage Wareho
Slide 20: Loan Balance Changes
Loan Balance Changes 3Q23 Loan Balance Changes 19 • Loan balances were $270.7 million lower in 3Q23, primarily the result of a $294.6 million decrease in Mortgage Warehouse loans • YTD, total loan growth was $345.8 million, or 2.3% annualized through 3Q23 • C&D growth was primarily driven by advance
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses 20 • Increase in reserve during 3Q23 due to forecasted economic conditions • The ACL on loans totaled $290.1 million at 3Q23, a net increase of $ 18.0 mil lion, or 6.6% from 2Q23 • The reserve for unfunded commitments totaled $49.0 million, a decrease of $5.6 million, or
Slide 22: Allowance for Credit Losses
Allowance for Credit Losses 21 • Results were primarily driven by negative forecasts for CRE and home prices over the next four quarters • The ALLL for the two CRE categories (RE – C&D, RE – CRE) exhibited the highest increase from 2 Q23 of $14.5 million • The blended ALLL % fo r those two categorie
Slide 23: NPA / Charge-Off Trend
NPA / Charge - Off Trend 22 • Net of GNMA - guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.27% at 3Q23 vs 0.30% at 2Q23 • Total NPAs in creased $3.6 million, to $149.9 million, primarily as a result of: • $11.1 million increase in 90+ past due GNMA - guaranteed mortgag
Slide 24: Problem Loan Trends
Problem Loan Trends 23 • Total classified loans, excluding GNMA - guaranteed mortgage loans, increased $3.8 million • Total criticized loans (including special mention ), excluding GNMA - guaranteed mortgage loans, increased $20.2 million • Nonperforming l oans, excluding GNMA - guaranteed mortgage
Slide 25: Investor CRE Loans
Investor CRE Loans 24 Investor CRE 24% C&D 11% Multi - Family 4% 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
Slide 26: Office Portfolio
Office Portfolio • 86% of non - owner occupied office loans are located in MSAs in the Bank’s primary footprint; overall, the average vacancy was ~10% • Central Business District (CBD) locations represent 7 % of non - owner occupied properties ; Charleston, SC and Tampa, FL represent the two largest
Slide 27: Commercial Real Estate Production
Commercial Real Estate Production 3 Q23 Commercial Real Estate Production Summary: 26 3 Q23 Residential Construction Production Summary: • 3 Q23 production of C&D and CRE loans - $381.8 million in total committed exposure • Residential real estate construction: • Spec/model to pre - sold ratio of 0.
Slide 28: Equipment Finance Portfolio
Equipment Finance Portfolio 27 • Total loans were $1.2 billion, or 6.0% of Ameris’s total portfolio • The overall average loan size was $48.3 thousand • Loan production totaled $156.7 million in 3Q23. The average FICO score for new production in 3Q23 was 738 • 30 - 89 day accruing past due loans wer
Slide 29: Appendix
Appendix AMERIS BANCORP
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
29 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 3Q23 2Q23 3Q22 2023 2022 Net Income $ 80,115 $ 62,635 $ 92,555 $ 203,171 $ 264,319 Adjustment items Merger and conversion charges - - - - 977 Gain on sale of mortgage servicing rights - - 316 - 316 Servicing right impairment (re
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
30 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 2023 2022 Adjusted Noninterest Expense Total noninterest expense 141,446$ 148,403$ 139,421$ 135,061$ 139,578$ 429,270$ 425,594$ Adjustment items: Merger and conversion charges - - - (235) - - (977) Natur
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
31 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 3Q23 3Q22 Net income 80,115$ 62,635$ 60,421$ 82,221$ 92,555$ 203,171$ 264,319$ Plus: Income taxes 24,912 20,335 18,131 22,313 28,520 63,378 84,245 Provision for credit losses 24,459 45,516 49,729 32,890
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
32 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 Total shareholders' equity 3,347,069$ 3,284,630$ 3,253,195$ 3,197,400$ 3,119,070$ 3,073,376$ 3,007,159$ 2,966,451$ 2,900,770$ 2,837,004$ 2,757,596$ Less: Goodwill 1,015,646
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