Slide 1: 2nd Quarter 2020 Results Investor Presentation
2nd Quarter 2020 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: COVID-19 Update
COVID-19 Update Teammates • Transitioned 75% of our employees to work remotely • Implemented “Thank you” pay for employees who serve functions that cannot be performed remotely • Continued to pay employees if branch hours were reduced or if they were asked to not work due to various risks • Establis
Slide 4: Risk Management
Risk Management Operating Strength Entered pandemic in position of strength and forward momentum: • Well capitalized • Strong liquidity and continued funding opportunities • Premier Southeastern markets • Historically top quartile return on assets (>1.50% ROA for 2019) • Disciplined rate cuts on fun
Slide 5: 2nd Quarter 2020 Financial Results
2nd Quarter 2020 Financial Results
Slide 6: Earnings Summary – Adjusted Basis
Earnings Summary – Adjusted Basis (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 2Q20 2Q19 Change 2020 2019 Change Adjusted Net Income $ 42,423 $ 45,210 ‐6% $ 81,628 $ 87,797 ‐7% Adjusted Net Income Per Share $ 0.61 $ 0.96 ‐36% $ 1.18 $ 1.85 ‐36% Adjusted
Slide 7: 2Q 2020 Operating Highlights
2Q 2020 Operating Highlights • Net income of $32.2 million, after pre-tax provision for credit losses of $88.2 million • Adjusted net income of $42.4 million, or $0.61 per diluted share • Growth in adjusted total revenue of $67.7 million, or 30.0% when compared with 1Q20 • Adjusted efficiency ratio
Slide 8: 2020 YTD Operating Highlights
2020 YTD Operating Highlights • Net income of $51.6 million, after pre-tax provision for credit losses of $129.2 million • Adjusted net income of $81.6 million, or $1.18 per diluted share • Growth in adjusted total revenue of $248.3 million, or 91.8% when compared with YTD 2019 • Adjusted efficiency
Slide 9: Operating Highlights
Operating Highlights (dollars in thousands) For the quarter For the year to date period 2Q20 2Q19 2020 2019 Asset Growth (1) 1,648,081 233,061 1,630,050 445,821 Asset Growth Rate 36.17% 8.00% 17.87% 7.79% Organic Loan Growth 1,409,051 581,382 1,684,681 563,978 Organic Loan Growth Rate 43.04% 28.38%
Slide 10: Total Revenue
Total Revenue Spread Revenues • Quarterly growth in average earning assets of $1.14 billion, or 7.1%, from 1Q20 to 2Q20 $300.0 • Net Interest Margin improved to 3.83% Total Quarterly Revenue (TE) in 2Q20, compared with 3.70% in 1Q20 (in millions) $286.14 • Increase in margin in challenging rate $250
Slide 11: Net Interest Margin
Net Interest Margin $180.0 5.50% $170.0 Net Interest Income (TE) (in millions) 5.25% $160.0 $165.2 $150.0 $156.5 Spread Income and Margin: $149.9 $149.0 5.00% $140.0 • Average earning assets were up $1.14 billion, while spread income increased $130.0 4.75% $16.2 million $120.0 • Margin up 13bps in t
Slide 12: Expenses
Expenses Steady, Adjusted Operating Expenses(1) OPEX Highlights: • Total adjusted operating expenses increased 175.0 $14.7 million in 2Q20 compared with 1Q20 all due Adjusted Operating Expenses to lines of business and was more than offset by LOBs Banking 150.0 (in millions) revenue growth in those
Slide 13: Capital and TBV
Capital and TBV Consistent Growth in TBV $23.50 • Historically, consistent growth in TBV Tangible Book Value • TBV increased $0.46 per share in 2Q20: $21.00 – $0.31 from retained earnings $20.81 $20.81 $20.90 $20.29 $20.44 $19.73 – $0.15 from all other items including treasury $18.50 $18.83 stock tr
Slide 14: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio 2Q20 Loan Portfolio Agriculture SFR Mortgage & 2% • Loan portfolio is well-diversified across all loan types HELOC 18% C&I • C&I loans represent the largest category of loans 23% • PPP loan production in 2Q totaled $1.08 billion, which added ~8% to this category Multi-Fami
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Relative Size of our Top 300 Relationships Total Committed % of Total (MM's) Exposure Legacy (FIS) $90.0 Relationship Groupings (MM's) Portfolio $79.8 Top 25 Relationships $ 1,053.3 8.9% $80.0 Top 50 Relationships $ 1,824.6 15.4% $70.0 Top 100 Relationships $ 2,926.0 24.7%
Slide 17: COVID-19 Response
COVID-19 Response 2Q20 COVID-related Payment Extensions • Our COVID-19 disaster program included an initial As a % of Portfolio Volume payment extension for up to 90-days. A second, 90- day extension is available for customers that Consumer Agriculture 6% 7% continue to be impacted by the pandemic.
Slide 18: Allowance for Loan Losses
Allowance for Loan Losses 2Q20 CECL Reserve • The ALLL totaled $208.8 million at 6/30/20, a net increase of $59.3 million, or 40% from 3/31/20. • The reserve for unfunded commitments totaled $37.5 million, an increase of $19.7 million, or 111% from 3/31/20 • 2Q20 provision expense totaled $88.2 mill
Slide 19: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets $140.0 0.73% 0.80% • Non-Performing Assets (“NPA”) increased to $117.7 0.70% $120.0 0.61% million at 2Q20, primarily as a result of: 0.54% 0.56% 0.59% 0.60% • Increased loans 90+ days past due and still $100.0 0.51% 0.50% accruing, and $80.0 • $3.1 millio
Slide 20: Investor CRE Loans
Investor CRE Loans • Total restaurant exposure is $127.1 million, or less than 1% of total loans • In addition, $78.1 million of PPP loans were funded to restaurant industry. Avg Size Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Construction Loans: RRE ‐ Spec & Models $ 299.3 0.06% 0.1
Slide 21: Hotel Exposure at 6/30/20
Hotel Exposure at 6/30/20 National Economy (Choice Brands) Hotel Portfolio by Flag 67 Properties $122.3 $ $ $ Avg Commitment Outstanding Committed # (MM's) (MM's) Balance (M's) Non-Flagged Term CRE 118 $ 464.8 $ 462.2 $ 3.9 48 Properties $34.4 In-Process Construction 10 $ 80.4 $ 43.5 $ 8.0 Top Ti
Slide 22: 2Q20 Commercial Real Estate Production
2Q20 Commercial Real Estate Production 2Q20 Construction and Development Loan Production Summary: Committed Avg Size • 2Q20 production of C&D and CRE loans - $517.2 Outstanding Exposure Commitment million committed exposure Loan Type (MM's) (MM's) (000's) RRE Construction ‐ Pre‐Sold $ 45.1 $ 106.3 $
Slide 23: C&I Loans
C&I Loans C&I 23% • US Premium Finance 2Q20 production statistics: Rolling 2Q20 12-mos New Production ($MM's) $ 453.4 $ 1,667.5 Weighted-Avg Down Payment 22.1% 21.9% Weighted-Avg # Installments 9.6 9.7 Avg Loan Outstanding $ NPL Size • Mortgage Warehouse Division funded $3.2 billion in Loan Type (M
Slide 24: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights June 30, 2020