Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Investor Presentation (September 2023)
30 slides from Ameris Bancorp's investor presentation, Sep 1, 2023
Slide 1: September 2023 Investor Presentation
September 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 $27.89 $28.62 $29.92 $30.79 $31.42 $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 $32.00 2Q22 3Q22 4Q22 1Q23 2Q23 Consistent Tangible Book Value (1) Growth $1.30 $1.34 $1.18 $0.87 $0.91 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2Q22 3Q22 4Q22 1Q23 2
Slide 5: Second Quarter 2023 Financial Results
2 nd Quarter 2023 Financial Results
Slide 6: 2Q 2023 Operating Highlights
2Q 2023 Operating Highlights 5 • Net income of $62.6 million, or $0.91 per diluted share • PPNR ROA (1) of 2.01% for 2Q23 • Adjusted efficiency ratio (1) of 53.41% • TCE ratio (1) of 8.80% • 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 $123.1 million, or $1.78 per diluted share • PPNR ROA (1) of 2.04% • Growth in tangible book value (1) of $1.50 per share, or 10.1% annualized, to $31.42 • Adjusted efficiency ratio (1) of 52.72% • Net interest margin of 3.68% • 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: Diversified Revenue Stream
Diversified Revenue Stream 8 • 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 10: Strong Net Interest Margin
Strong Net Interest Margin 9 Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 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% 4Q22 $ 399.9 8.16% $ 213.0 7.46% $612.9 7.92% • Above peer group margin, at 3.60% • Net interest inc
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 • Total adjusted operating expenses increased $9.0 million in 2Q23 compared with 1Q23: ‒ Increase of $7.0 million in 2Q23 ban
Slide 12: Balance Sheet Trends
Balance Sheet Trends 11 • Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: – - 1.1% asset sensitivity in - 100bps – - 0.5% asset sensitivity in - 50bps – 0.5% asset sensitivity in +50bps – 0.9% asset sensitivity in +100bps • Approximately $7.3 billion, or 35%, of lo
Slide 13: Proven Liquidity Plan
Proven Liquidity Plan 12 At June 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,319 $ - $ 1,319 Unpledged Securities 691 - 691 External Sources FHLB 5,424 2,123 3,301 FRB Discount Window 2,634 - 2,634 Brokered Deposits 2,830 1,580 1,250 Other 127 - 127
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base 13 Deposit Highlights • Total deposits increased $545.6 million in 2Q23 compared with 1Q23 • Noninterest - bearing deposits decreased $591.0 million, or 8.1% • MMDAs increased $502.7 million, or 10.5% • CDs increased $626.4 million, or 21.2% • Exclusive of increase in broker
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 10.25% • CET1, net of unrealized losses on bond portfolio, remains strong at 9.95% • Unrealized loss of AFS portfolio were $64 million at June 30,
Slide 16: Capital and TBV Proven Stewards of Shareholder Value
Capital and TBV Proven Stewards of Shareholder Value 15 • Management focused on long term growth in TBV (1) , such that over the past five years TBV has grown by 13% annualized • TBV increased $0.63 per share in 2Q23: – $0.75 from retained earnings – ($0.22) from impact of OCI – $0.10 from all other
Slide 17: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 18: Diversified Loan Portfolio
Diversified Loan Portfolio 2 Q23 Loan Portfolio 17 • Loan portfolio is well diversified across loan types and geographies • CRE and C&D concentrations were 282% and 80%, respectively, at 2Q23 • Non - owner occupied office loans totaled $1.4 billion at 2Q23, or 6.9% of total loans • Continued strong
Slide 19: Allowance for Credit Losses
Allowance for Credit Losses 18 • Increase in reserve during 2Q23 due to economic forecasts, particularly projected negative CRE price indices • The ACL on loans totaled $272.1 million at 2Q23, a net increase of $29.4 million, or 12.1% from 1Q23 • The reserve for unfunded commitments totaled $54.6 mi
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses 19 • 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 1 Q23 of $20.7 million • The blended ALLL % fo r those two categorie
Slide 21: NPA / Charge-Off Trend
NPA / Charge - Off Trend 20 • Net of GNMA - guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.30% at 2Q23 vs 0.33% at 1Q23 • Total NPAs de creased $14.0 million, to $146.3 million, primarily as a result of: • $8.9 million de crease in 90+ past due GNMA - guaranteed and po
Slide 22: Problem Loan Trends
Problem Loan Trends 21 • Total classified loans, excluding GNMA - guaranteed mortgage loans, decreased $36.1 million, primarily the result of pay - offs and other collection activities • Total criticized loans (special mention + classified), excluding GNMA - guaranteed mortgage loans, increased $18.
Slide 23: Investor CRE Loans
Investor CRE Loans 22 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 24: Office Portfolio
Office Portfolio • 85% of non - owner occupied office loans are located in MSAs in the Bank’s footprint; overall, the average vacancy was < 10% • The average maturity of fixed - rate loans is ~ 3 . 8 years ; only 17 % of loans mature through 2024 • The portion of the ACL apportioned to non - owner o
Slide 25: Equipment Finance Portfolio
Equipment Finance Portfolio 24 • Total loans were $1.2 billion, or 5.7% of Ameris’s total portfolio • The overall average loan size was $47.3 thousand • Loan production totaled $168.0 million in 2Q23. Average FICO score was 734 • 30 - 89 day accruing past due loans were 1.03% of total loans; non - p
Slide 26: Appendix
Appendix AMERIS BANCORP
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
26 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 2Q23 1Q23 2Q22 2023 2022 Net Income $ 62,635 $ 60,421 $ 90,066 123,056$ 171,764$ Adjustment items Merger and conversion charges - - - - 977 Gain on sale of mortgage servicing rights - - - - - Servicing right impairment (recovery
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
27 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 2Q23 1Q23 4Q22 3Q22 2Q22 2023 2022 Adjusted Noninterest Expense Total noninterest expense 148,403$ 139,421$ 135,061$ 139,578$ 142,196$ 287,824$ 286,016$ Adjustment items: Merger and conversion charges - - (235) - - - (977) Natur
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
28 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 2Q23 1Q23 4Q22 3Q22 2Q22 4Q22 1Q23 Net income 62,635$ 60,421$ 82,221$ 92,555$ 90,066$ 123,056$ 171,764$ Plus: Income taxes 20,335 18,131 22,313 28,520 28,019 38,466 55,725 Provision for credit losses 45,516 49,729 32,890 17,652
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
29 Reconciliation of GAAP to Non - GAAP Measures (dollars in thousands) 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 Total shareholders' equity 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$ 2,647,088$ Less: Goodwill 1,015,646
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