Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2020 Earnings Presentation
23 slides from Ameris Bancorp's earnings presentation, Oct 22, 2020
Slide 1: 3rd Quarter 2020 Results Investor Presentation
3rd Quarter 2020 Results Investor Presentation Exhibit 99.2
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,” “e
Slide 3: Entered pandemic in position of strength and forward momentum
Risk Management Operating Strength Diversification 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
Slide 4: 3rd Quarter 2020 Financial Results
3rd Quarter 2020 Financial Results
Slide 5: Earnings Summary – Adjusted Basis
Earnings Summary – Adjusted Basis (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 3Q20 3Q19 Change 2020 2019 Change Adjusted Net Income $ 116,879 $ 68,539 71% $ 198,507 $ 156,336 27% Adjusted Net Income Per Share $ 1.69 $ 0.98 72% $ 2.86 $ 2.85 0% Adjusted
Slide 6: 3Q 2020 Operating Highlights
3Q 2020 Operating Highlights Net income of $116.1 million, or $1.67 per diluted share Adjusted net income of $116.9 million, or $1.69 per diluted share Growth in adjusted total revenue of $30.0 million, or 10.2% when compared with 2Q20 Adjusted efficiency ratio of 47.34%, compared with 51.08% in 2Q2
Slide 7: 2020 YTD Operating Highlights
2020 YTD Operating Highlights Net income of $167.7 million, after pre-tax provision for credit losses of $146.9 million Adjusted net income of $198.5 million, or $2.86 per diluted share Growth in adjusted total revenue of $350.4 million, or 71.3% when compared with YTD 2019 Adjusted efficiency ratio
Slide 8: Operating Highlights
Operating Highlights Asset growth is materially impacted in 3Q19 by the acquisition of Fidelity Bank Adjusted Operating Expenses exclude merger related charges, restructuring charges, natural disaster and pandemic charges, expenses related to SEC and DOJ investigation and (gain) loss on sale of prem
Slide 9: Total Revenue
Total Revenue Spread Revenues Quarterly growth in average earning assets of $595.1 million, or 3.4%, from 2Q20 to 3Q20 Net Interest Margin of 3.64% in 3Q20, compared with 3.83% in 2Q20, and 3.70% in 1Q20 Decrease in margin in challenging rate environment due to declines in production yields and accr
Slide 10: Net Interest Margin
Net Interest Margin Loan Production Details Period Fixed Rate Variable Rate Total 3Q20 $ 474.9 3.78% $ 394.1 4.27% $ 869.0 4.00% 2Q20 $ 275.4 3.88% $ 196.7 4.55% $ 472.1 4.16% 1Q20 $ 481.5 4.37% $ 436.9 4.75% $ 918.4 4.55% Spread Income and Margin: Average earning assets were up $595.1 million, whil
Slide 11: Expenses Steady, Adjusted Operating Expenses
Expenses Steady, Adjusted Operating Expenses(1) OPEX Highlights: 1 – Adjusted Operating Expenses exclude merger and conversion costs, executive retirement benefits, restructuring charges related to branch consolidation plan and efficiency initiatives, natural disaster and pandemic expenses, expenses
Slide 12: Capital and TBV
Capital and TBV Consistent Growth in TBV Steady Capital Levels Support Growth Rate Historically, consistent growth in TBV TBV increased $1.56 per share in 3Q20: $1.52 from retained earnings $0.04 from all other items including treasury stock transactions TBV negatively impacted $0.82 by adoption of
Slide 13: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q20 Loan Portfolio Loan portfolio is well-diversified across all loan types C&I loans represent the largest category of loans PPP loans totaled $1.10 billion at 3Q20, which added ~6% to this category Only 11% of total loans are construction or A&D loans Average loan size
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio In-house lending limit is $50.0 million versus our legal lending limit of $529.6 million Largest commitment of $100.0 million represents Mortgage Warehouse Guidance Line of Credit comprised of well diversified, individual mortgage loans Largest commercial loan is $60.4 mil
Slide 16: COVID-19 Response
COVID-19 Response 3Q20 COVID-related Payment Extensions 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 was available for customers that continued to be impacted by the pandemic. Through October 15, 2020, we
Slide 17: Allowance for Loan Losses
Allowance for Loan Losses The ALLL totaled $231.9 million at 9/30/20, a net increase of $23.1 million, or 11% from 6/30/20 The reserve for unfunded commitments totaled $27.4 million, a decrease of $10.1 million, or 27% from 6/30/20 3Q20 provision expense totaled $17.7 million, primarily the result o
Slide 18: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets (“NPA”) increased to $163.4 million at 3Q20, primarily as a result of: $18.7 million increase in hotel nonaccrual loans Increase in portfolio mortgage nonaccrual loans, the majority of which had expired deferral programs Offset by a $8.2 million decrease
Slide 19: Investor CRE Loans
Investor CRE Loans > 94% of CRE loans are concentrated within our four-state footprint, primarily in the Bank’s primary MSAs of Atlanta, Jacksonville, Orlando, Tallahassee, Columbia, Savannah and Charleston Loans outside the Bank’s footprint are generally acquired loans or SBA guaranteed Updated as
Slide 20: Hotel Exposure
Hotel Exposure Hotel exposure totaled $583.3 million at 9/30/20, or 4.2% of Total Loans (excluding PPP loans). Approximately 11% of total committed exposure guaranteed by US Government Agencies (SBA or USDA) Top-Tier brands represent > 75% of exposure. All National brands totaled > 95% of committed
Slide 21: Commercial Real Estate Production
Commercial Real Estate Production 3Q20 Commercial Real Estate Production Summary: 3Q20 Construction and Development Loan Production Summary: 3Q20 production of C&D and CRE loans - $711.7 million committed exposure Residential Real Estate Construction: Spec & model to pre-sold ratio of 0.6:1 RRE cons
Slide 22: C&I Loans
C&I Loans US Premium Finance 3Q20 production statistics: Mortgage Warehouse Division funded $4.5 billion in 3Q20, a 125% increase over 3Q19 YTD, total loans funded were $9.9 billion 3Q20 Statistics: Total approved guidance lines = $1.4 billion Average days on line = 15 days No losses since 2016 21 U
Slide 23: Ameris Bancorp Press Release & Financial Highlights September 30, 2020
Ameris Bancorp Press Release & Financial Highlights September 30, 2020