Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2014 Earnings Presentation
18 slides from Ameris Bancorp's earnings presentation, Jul 29, 2014
Slide 1: 2nd Quarter 2014 Investor Presentation
Exhibit 99.1 2nd Quarter 2014 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements This presentation contains certain performance measures may not be necessarilycomparableto similarcapital measures determined by methods other than in accordancewith that may be presented by other companies. accountingprinciplesgenerallyacceptedin the United States of America (
Slide 3: Corporate Profile
Corporate Profile • Headquartered in Moultrie, Georgia • Founded in 1971 as American Banking Company • Historically grown through acquisitions of smaller banks in areas close to existing operations • Recent growth through mergers with Coastal Bankshares, Prosperity Banking Company and 10 FDIC-assist
Slide 4: Experienced Management Team
Experienced Management Team Name, Position Experience (Banking / Ameris) Edwin W. Hortman Jr. 33/15 Chief Executive Officer Andrew B. Cheney 37/5 EVP & Chief Operating Officer Dennis J. Zember Jr. 20/9 EVP & Chief Financial Officer Jon S. Edwards 28/14 EVP & Chief Credit Officer Stephen A. Melton 32
Slide 5: Current Focus
Current Focus Manage Stronger ROA’s (over 1.15%) and ROTCE (over 15%) to support M&A activities • Currently earnings 15%+ ROTCE. • Sustain double digit loan and deposit growth. • Manage Mortgage and SBA lines of business for meaningful addition to ROA and ROTCE. • Continue to drive efficiency to our
Slide 6: 2nd Quarter Update – Financial Condition
2nd QuarterUpdate– FinancialCondition dollars in millions, except per share data Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 BALANCE SHEET Total Assets $2,809 $2,818 $3,668 $3,487 $3,973 S/T assets & investments $418 $394 $708 $515 $591 Loans -noncovered $1,618 $1,659 $2,134 $2,184 $2,472 Loans -covered $444
Slide 7: 2nd Quarter Operating Results
2nd Quarter Operating Results dollars in millions, except per share data Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Net Income $6,678 $6,677 $1,378 $8,350 $8,130 Net interest income $29,476 $29,320 $29,051 $34,484 $35,264 Provision for loan losses $4,165 $2,920 $1,478 $1,726 $1,365 Non-interest income $11,3
Slide 8: 2nd Quarter Update – Credit Quality
2nd Quarter Update – Credit Quality dollars in millions, except per share data Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 CREDIT QUALITY (1) Non-performing assets (legacy) 71,696 69,698 62,554 60,568 57,484 Non-performing assets (purchased) - - 10,935 19,182 32,368 NPAs / Assets (legacy) 2.55% 2.47% 1.71% 1
Slide 9: Loan Portfolio Detail
Loan Portfolio Detail • Diversified loan portfolio across five regions – Inland Georgia –36% – South Carolina 1 –2% – Coastal Georgia 20% – – Florida –27% – Alabama –5% • In-house lending limit of $15.0 million versus $86 million legal limit – 12 loans greater than $5 million, no individual loan gre
Slide 10: Loan Portfolio – Loan Pipelines
Loan Portfoliostrong – loan pipelines Consistent Loan Pipelines ¹ Lending Strategies • Leveraging presence in new markets (top five markets account for 72% of pipeline: Atlanta, Jacksonville, Columbia, Savannah, Charleston • Upgrading production positions in key markets: limited changes to expense b
Slide 11: Loan Portfolio
Loan Portfolio Diversified through smaller relationships as well Portfoliocomprised ofsmallerrelationships Relationship Totals in Legacy Portfolio (in millions) Rank Total O/S % of total Top 10 $ 140.9 5.9% Top 50 $ 396.7 16.6% Top 100 $ 587.0 24.6% Top 200 $ 835.2 35.0% Top 300 $ 1,010.9 42.4% • $3
Slide 12: Significant Value in Deposit Portfolio
Significant Value in Deposit Portfolio • 26.3%- 5 Yearcompoundedgrowth rate in our book of non-interestbearingdemandA. • $1.1 billion – Growth in non-rate sensitive deposits over last 5 years will materially protect AmerisBankfrom the sensitivityof a growingfixed rate loan bookA. Growth in non-rate
Slide 13: FDIC Indemnification Asset
FDIC Indemnification Asset Managing towards the end of loss share protection ClassifiedsMaturing After L/S All Loans Remaining Original Current Current Original Current % of Months to Estimate of Estimate of Estimate as a % I/A on Bank I/A (000's) I/A (000's) Original I/A Collect Losses (000's)Losse
Slide 14: Earnings
Earnings 19% Compounded Growth in Revenue (5 years) Proven ability to grow revenue profitably with a compounded growth rate of over 19% for the last 5 years. Challenging market to grow revenues. Opportunistic approach of Ameris Bank includes: • Continued M&A activities – • Achieved a 20%+ improvemen
Slide 15: Earnings Net Interest Margin
Earnings Net - Interest Margin Net Interest Margin (%) • 4.65% -Improving Net Interest Margin for two quarters from 4.43% reported in Q4 2013. • 4.31% -Net Interest Margin without any accretion. • $2.5 million –Additional interest income from “accretion”in 2Q 2014. Down from $2.7 million in Q1 2014.
Slide 16: Earnings Non-Interest Income
EarningsNon-Interest – Income Serious about building strength and diversification in non- interest income sources • Moving away from deposit charges • Momentum in our numbers coming from mortgage revenue; we believe we can duplicate that strategy with other LOBs by hiring expertise Mortgage: • Reach
Slide 17: Why Ameris Bank?
Why Ameris Bank? Disciplined Acquirer with Significant Capacity • Two negotiated deals within 12 months with 20%+ IRRs • Short TBV earnback periods, meaningful EPS accretion on recent deals. • Reputation with targets and with regulatory agencies are providing increasing deal flow Low P/E multiples r
Slide 18: Analyst Coverage
Analyst Coverage Price 2015 Firm Analyst Rating Target Estimate Brady Gailey, CFA Keefe, Bruyette & Woods "Outperform" $28.00 $2.04 404-231-6546 Peyton N. Green Sterne Agee & Leach "Buy" $29.00 $2.05 615-760-1464 Chris Marinac FIG Partners LLC "Outperform" $28.00 $2.00 404-601-7210 Casey C. Orr Sand