Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2020 Earnings Presentation
23 slides from Ameris Bancorp's earnings presentation, Oct 23, 2020
Slide 1: 3rd Quarter 2020 Results Investor Presentation
3rd 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: 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 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
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 efficien
Slide 8: Operating Highlights
Operating Highlights (dollars in thousands) For the quarter For the year to date period 3Q20 3Q19 2020 2019 Asset Growth (1) 1,222 5,874,941 1,631,272 6,320,762 Asset Growth Rate 0.02% 197.65% 11.92% 73.65% Organic Loan Growth 440,436 282,928 2,125,117 846,906 Organic Loan Growth Rate 12.15% 12.90%
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 $350.0 Total Quarterly Revenue (TE) • Net Interest Margin of 3.64% in 3Q20, (in millions) compared with 3.83% in 2Q20, and $322.97 3.70% in 1Q20 $300.0 • Decrease in margin in cha
Slide 10: Net Interest Margin
Net Interest Margin $180.0 5.50% $170.0 Net Interest Income (TE) (in millions) 5.25% $160.0 $165.2 $163.9 $150.0 $156.5 5.00% Spread Income and Margin: $149.9 $149.0 $140.0 • Average earning assets were up $130.0 4.75% $595.1 million, while spread income decreased $1.2 million $120.0 4.50% • Margin
Slide 11: Expenses
Expenses Steady, Adjusted Operating Expenses(1) OPEX Highlights: • Total adjusted operating expenses increased $3.3 175.0 million in 3Q20 compared with 2Q20 all due to Adjusted Operating Expenses lines of business and was more than offset by LOBs Banking 150.0 (in millions) revenue growth in those b
Slide 12: Capital and TBV
Capital and TBV Consistent Growth in TBV $23.50 • Historically, consistent growth in TBV Tangible Book Value $22.46 • TBV increased $1.56 per share in 3Q20: $21.00 $20.81 $20.81 $20.90 – $1.52 from retained earnings $20.29 $20.44 $18.50 $19.73 – $0.04 from all other items including treasury $18.83 s
Slide 13: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q20 Loan Portfolio Agriculture SFR Mortgage & 2% • Loan portfolio is well-diversified across all loan HELOC types 18% C&I 24% • C&I loans represent the largest category of loans • PPP loans totaled $1.10 billion at 3Q20, which added ~6% to this category Multi-Family 2% •
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Total Relative Size of our Top 300 Relationships Committed % of Total (MM's) Exposure Legacy (FIS) Relationship Groupings (MM's) Portfolio $120.0 Top 25 Relationships $ 1,562.7 8.9% $100.0 Top 50 Relationships $ 2,457.2 14.0% $100.0 Top 100 Relationships $ 3,808.7 21.6% To
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- Consumer Agriculture 6% 7% days. A second, 90-day extension was C&I SFR Mortgages 7% available for customers that continued to 12% Co
Slide 17: Allowance for Loan Losses
Allowance for Loan Losses 3Q20 CECL Reserve • 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
Slide 18: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets $180.0 0.82% 0.90% $160.0 0.73% 0.80% • Non-Performing Assets (“NPA”) increased to $163.4 $140.0 0.70% million at 3Q20, primarily as a result of: 0.61% 0.56% 0.59% • $18.7 million increase in hotel nonaccrual loans $120.0 0.51% 0.60% • Increase in portfol
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 Avg Siz
Slide 20: Hotel Exposure
Hotel Exposure National $$ Avg Economy $$ Committed $$ Committed Hotel Portfolio by Flag (Choice Brands) 67 Properties Balance Outstanding Balance $121.6 # (MM's) (MM's) (M's) Term CRE 118 $ 465.3 $ 461.8 $ 3.9 Non-Flagged 43 Properties In‐Process Construction 8 $ 101.1 $ 60.9 $ 12.6 $30.7 Governmen
Slide 21: Commercial Real Estate Production
Commercial Real Estate Production 3Q20 Construction and Development Loan Production Summary: Committed Avg Size • 3Q20 production of C&D and CRE loans - $711.7 Outstanding Exposure Commitment million committed exposure Loan Type (MM's) (MM's) (000's) RRE Construction - Pre-Sold $ 60.2 $ 150.6 $ 232.
Slide 22: C&I Loans
C&I Loans C&I 24% • US Premium Finance 3Q20 production statistics: Rolling 3Q20 12-mos New Production ($MM's) $ 332.4 $ 1,656.7 Weighted-Avg Down Payment 22.8% 22.5% Weighted-Avg # Instalments 9.6 9.7 Outstanding % of Avg Loan • Mortgage Warehouse Division funded $4.5 billion in Loan Type (MM's) Por
Slide 23: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights September 30, 2020