Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q4 2023 Earnings Presentation
34 slides from Ezcorp's earnings presentation, Nov 16, 2023
Slide 1: 4th Quarter 2023 Results Investor Presentation
4th Quarter 2023 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: Ameris Profile
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 12% annualized over past five yea
Slide 4: Focus on Shareholder Value
Ameris Profile Focus on Shareholder Value $34.00 $1.40 Consistent Tangible Book Value(1) Growth Diluted EPS $33.64 $1.20 $33.00 $1.18 $1.16 $1.00 $32.00 $32.38 $0.96 $0.80 $0.91 $0.87 $31.00 $31.42 $0.60 $30.79 $30.00 $0.40 $29.92 $29.00 $0.20 $28.00 $0.00 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q2
Slide 5: 4th Quarter 2023 Financial Results
4 Quarter 2023 th Financial Results
Slide 6: 4Q 2023 Operating Highlights
4Q 2023 Operating Highlights • Net income of $65.9 million, or $0.96 per diluted share • Adjusted net income (1) of $73.6 million, or $1.07 per diluted share • PPNR ROA(1) of 1.77% for 4Q23, which includes 19bps negative impact from FDIC special assessment • Adjusted efficiency ratio(1) of 52.87% •
Slide 7: 2023 Operating Highlights
2023 Operating Highlights • Net income of $269.1 million, or $3.89 per diluted share • Adjusted net income (1) of $276.3 million, or $4.00 per diluted share • PPNR ROA(1) of 1.97%, which includes 4bps negative impact from FDIC special assessment • Growth in tangible book value(1) of $3.72 per share,
Slide 8: Financial Highlights
Financial Highlights (dollars in thousands, except per share data) Quarter to Date Results Year to Date Results 4Q23 3Q23 Change 4Q22 Change 2023 2022 Change Net Interest Income $ 206,101 $ 207,751 -1% $ 224,137 -8% $ 835,044 $ 801,026 4% Noninterest Income $ 56,248 $ 63,181 -11% $ 48,348 16% $ 242,
Slide 9: Strong Net Interest Margin
Strong Net Interest Margin $230.0 5.25% Spread Income and Margin Net Interest Income (TE) (in millions) $225.0 5.00% $225.1 4.75% • Above peer group margin at 3.54% $220.0 4.50% • Net interest income (TE) of $207.0 million in $215.0 4Q23, compared with $208.7 million in 3Q23 4.25% – Interest income
Slide 10: Diversified Revenue Stream
Diversified Revenue Stream • Strong revenue base of net interest income from core banking division • Additional revenue provided by our diversified lines of business Mortgage Banking Activity FTE Revenue Sources (in millions) • Retail mortgage activity has continued to stabilize back to pre-pandemic
Slide 11: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) OPEX Highlights 180.0 Adjusted Operating Expenses • Management continues to deliver high performing 160.0 (in millions) operating efficiency 140.0 $42.5 • Adjusted efficiency ratio of 52.87% in 4Q23, $40.6 $41.7 $36.3
Slide 12: Balance Sheet Trends
Balance Sheet Trends Earning Assets Highlights Interest Rate Sensitivity Earning Assets • Asset sensitivity is moderating as the FOMC (in millions) nears the end of its tightening cycle: 30,000 – -1.0% asset sensitivity in -100bps – -0.5% asset sensitivity in -50bps 25,000 – +0.5% asset sensitivity
Slide 13: Proven Liquidity Plan
Proven Liquidity Plan Sources of Liquidity Solid Liquidity Plan At December 31, 2023 Total Amount Net • Diverse sources of liquidity available to the $ in millions Available Used Availability Company Internal Sources Cash $ 1,167 $ - $ 1,167 • Minimal unrealized losses on unpledged Unpledged Securit
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base Deposits by Type 4Q23 Deposit Highlights CD • Noninterest bearing deposits remained strong at 31.3% of 17% total deposits NIB • Total deposits increased $118.2 million in 4Q23 compared 31% Savings with 3Q23 4% • MMDA and savings increased $127.2 million, or 1.9% • NOW accoun
Slide 15: Capital and TBV
Capital and TBV Proven Stewards of Shareholder Value • Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 12% annualized • TBV increased $1.26 per share in 4Q23: – $0.81 from retained earnings – $0.36 from impact of OCI – $0.09 from all other items
Slide 16: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio 4Q23 Loan Portfolio Portfolio Highlights Agriculture • Loan portfolio is well diversified across loan types 1% and geographies • CRE and C&D concentrations were 282% and 74%, respectively, at 4Q23 SFR Mortgage & C&I HELOC 24% 22% • Non-owner occupied office loans totaled $
Slide 18: Loan Production vs Growth
Loan Production vs Growth (in millions) $3,500 $3,192 $3,000 $2,500 $2,168 $2,000 $1,760 $1,509 $1,424 $1,500 $1,246 $1,266 $1,055 $1,000 $474 $500 $143 $68 $- 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 $(271) $(500) Loan Production (1) Loan Growth (2) • 4Q23 loan production was spread across various product lin
Slide 19: Loan Balance Changes
Loan Balance Changes (in millions) 4Q23 Loan Balance Changes $225 $194 $175 $125 $75 $56 $56 $25 $(4) $(25) $(13) $(18) $(34) $(75) $(61) $(125) $(108) CRE SFR Mtgs C&I Municipal Indirect Consumer Mtg WHSE Premium Finance C&D • Loan balances increased $68.3 million during 4Q23, primarily the result
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses 4Q23 CECL Reserve Reserve Summary (in millions) • Increase in reserve during 4Q23 due to forecasted economic conditions • The ACL on loans totaled $307.1 million at 4Q23, a net increase of $17.0 million, or 5.9%, from 3Q23 • The reserve for unfunded commitments totaled $4
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses 4Q23 CECL Reserve by Loan Type Reserve Summary Net 9/30/23 Outstanding ALLL ALLL Change Loan Type (MM's) (MM's) % ALLL (MM's) from 3Q23 • Results were primarily driven by negative forecasts for CRE and CFIA $ 2,688.9 $ 64.1 2.38% $ 53.7 $ 10.4 home prices over the next fo
Slide 22: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets Non-Performing Assets (NPAs) 0.80% 0.69% • Net of GNMA-guaranteed mortgage loans, 0.70% NPAs increased as a percentage of total 0.61% 0.61% 0.60% 0.57% 0.58% assets to 0.33% at 4Q23 vs 0.27% at 3Q23 0.50% • Total NPAs increased $24.5 million, to $174.3 0.
Slide 23: Problem Loan Trends
Problem Loan Trends (in millions) $400 Expres sed as a percent of Total Loans Highlights Net of GNMA‐backed Mortgage Loans $350 1.64% • Compared to 4Q22, classified loans 1.52% decreased $38.7 million, or 23.1% $300 1.40% 1.37% 1.34% • For 4Q23, total classified loans, $250 excluding GNMA-guaranteed
Slide 24: Investor CRE Loans
Investor CRE Loans Multi- Family 5% C&D 11% Investor CRE 25% Avg Size Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Stratification of Investor CRE Portfolio Construction Loans: Outstanding 5-Yr Proj RRE - Presold $ 288.5 0.10% 0.22% $ 461.3 Loans Population RRE - Spec & Models $ 241.6 0
Slide 25: Office Portfolio
Office Portfolio Total Office Portfolio by Loan Type Highlights Investor Office Portfolio by Property Class * (Total Committed Exposure) Class C 3% Owner- Construction, MOB Occupied, $325.6 • Non-owner occupied 18% $547.8 office loans totaled Class A 34% $1.43 billion of outstanding balances and $1.
Slide 26: Commercial Real Estate Production
Commercial Real Estate Production 4Q23 Residential Construction Production Summary: Highlights Committed Avg Size Outstanding Exposure Commitment • 4Q23 production of C&D and CRE loans - Loan Type (MM's) (MM's) (000's) $344.4 million in total committed exposure RRE Construction - Pre-Sold $ 35.7 $ 1
Slide 27: Equipment Finance Portfolio
Equipment Finance Portfolio (in millions) Highlights $1,200 $1,287 $1,210 $1,175 • Total loans were $1.29 billion, or 6.3% of $1,115 $1,000 the Bank’s total portfolio $1,021 $800 • The overall average loan size was $50.8 thousand $600 • Loan production totaled $199.6 million in $400 4Q23. The averag
Slide 28: Appendix
Appendix AMERIS BANCORP
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) For the quarter For the year to date period 4Q23 3Q23 4Q22 2023 2022 Net Income $ 65,934 $ 80,115 $ 82,221 $ 269,105 $ 346,540 Adjustment items Merger and conversion charges - - 235 - 1,212 Gain on sale of mortgage servicing rights -
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 4Q23 3Q23 2Q23 1Q23 4Q22 2023 2022 Adjusted Noninterest Expense Total noninterest expense $ 149,011 $ 141,446 $ 148,403 $ 139,421 $ 135,061 $ 578,281 $ 560,655 Adjustment items: Merger and conversion char
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date (dollars in thousands) 4Q23 3Q23 2Q23 1Q23 4Q22 Total shareholders' equity $ 3,426,747 $ 3,347,069 $ 3,284,630 $ 3,253,195 $ 3,197,400 Less: Goodwill 1,015,646 1,015,646 1,015,646 1,015,646 1,015,646 Other intangibles, net 87,949 92,375 96,
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 4Q23 3Q23 2Q23 1Q23 4Q22 4Q23 4Q22 Net income $ 65,934 $ 80,115 $ 62,635 $ 60,421 $ 82,221 $ 269,105 $ 346,540 Plus: Income taxes 24,452 24,912 20,335 18,131 22,313 87,830 106,558 Provision for credit los
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures As of (dollars in thousands) 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 Total shareholders' equity $ 3,426,747 $ 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 Less: Goodwil
Slide 34: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights December 31, 2023