Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2023 Earnings Presentation
33 slides from Ameris Bancorp's earnings presentation, Oct 26, 2023
Slide 1: 3rd Quarter 2023 Results Investor Presentation
3rd Quarter 2023 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: 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 years Exp
Slide 4: Ameris Profile: Focus on Shareholder Value
Ameris Profile Focus on Shareholder Value 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Slide 5: 3rd Quarter 2023 Financial Results
3rd Quarter 2023 Financial Results
Slide 6: 3Q 2023 Operating Highlights
3Q 2023 Operating Highlights Net income of $80.1 million, or $1.16 per diluted share PPNR ROA(1) of 2.01% for 3Q23 Adjusted efficiency ratio(1) of 52.02% TCE ratio(1) of 9.11% Nonperforming assets, excluding government-guaranteed loans, as a percentage of total assets improved three basis points to
Slide 7: 2023 YTD Operating Highlights
2023 YTD Operating Highlights Net income of $203.2 million, or $2.94 per diluted share PPNR ROA(1) of 2.03% Growth in tangible book value(1) of $2.46 per share, or 11.0% annualized, to $32.38 Adjusted efficiency ratio(1) of 52.49% Net interest margin of 3.63% Organic loan growth of $345.8 million, o
Slide 8: Financial Highlights
Financial Highlights 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 Results Ye
Slide 9: Strong Net Interest Margin
Strong Net Interest Margin Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 3Q23 $ 247.0 10.69% $ 374.0 8.69% $621.0 9.49% 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% Above peer group margin at 3.54% Net interest income (T
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 Retail mortgage activity has continued to stabilize back to pre-pandemic levels Mortgage banking activity was 13
Slide 11: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) OPEX Highlights Management continues to deliver high performing operating efficiency Adjusted efficiency ratio of 52.02% in 3Q23, compared with 53.41% in 2Q23 Total adjusted operating expenses decreased $7.0 million i
Slide 12: Balance Sheet Trends
Balance Sheet Trends Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: -0.3% asset sensitivity in -100bps -0.1% asset sensitivity in -50bps 0.1% asset sensitivity in +50bps 0.2% asset sensitivity in +100bps Approximately $7.2 billion, or 35%, of loans are variable ra
Slide 13: Proven Liquidity Plan
Proven Liquidity Plan At September 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,546 $ - $ 1,546 Unpledged Securities 677 - 677 External Sources FHLB 5,421 1,798 3,623 FRB Discount Window 2,635 - 2,635 Brokered Deposits 2,853 1,567 1,286 Other 127 - 12
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base Deposit Highlights Noninterest bearing deposits remained strong at 32% of total deposits Total deposits increased $147.2 million in 3Q23 compared with 2Q23 Noninterest-bearing deposits decreased $117.3 million, or 1.7% MMDA and savings increased $359.6 million, or 5.7% CDs i
Slide 15: Capital and TBV: Proven Stewards of Shareholder Value
Capital and TBV CAGR 13% 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 13% annualized TBV increased $0.96 per share in 3Q23: $1.01 from retained earnings ($0.15) from impact of OCI $0.10 from all other items
Slide 16: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q23 Loan Portfolio Loan portfolio is well diversified across loan types and geographies CRE and C&D concentrations were 283% and 79%, respectively, at 3Q23 Non-owner occupied office loans totaled $1.45 billion at 3Q23, or 7.2% of total loans Continued strong asset quality
Slide 18: Loan Production vs Growth
Loan Production vs Growth 3Q23 loan production was spread across many product lines, continuing to contribute to portfolio diversification Overall, 3Q23 production exhibited a 19% decrease from 2Q23. Loan balance decline in 3Q23 was primarily driven by lower seasonal volume of Mortgage Warehouse loa
Slide 19: Loan Balance Changes
Loan Balance Changes 3Q23 Loan Balance Changes Loan balances were $270.7 million lower in 3Q23, primarily the result of a $294.6 million decrease in Mortgage Warehouse loans YTD, total loan growth was $345.8 million, or 2.3% annualized through 3Q23 C&D growth was primarily driven by advances on exis
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses Increase in reserve during 3Q23 due to forecasted economic conditions The ACL on loans totaled $290.1 million at 3Q23, a net increase of $18.0 million, or 6.6% from 2Q23 The reserve for unfunded commitments totaled $49.0 million, a decrease of $5.6 million, or 10.3%, prim
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses 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 2Q23 of $14.5 million The blended ALLL % for those two categories was 1.64%
Slide 22: NPA / Charge-Off Trend
NPA / Charge-Off Trend Net of GNMA-guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.27% at 3Q23 vs 0.30% at 2Q23 Total NPAs increased $3.6 million, to $149.9 million, primarily as a result of: $11.1 million increase in 90+ past due GNMA-guaranteed mortgage loans Charge-o
Slide 23: Problem Loan Trends
Problem Loan Trends Total classified loans, excluding GNMA-guaranteed mortgage loans, increased $3.8 million Total criticized loans (including special mention), excluding GNMA-guaranteed mortgage loans, increased $20.2 million Nonperforming loans, excluding GNMA-guaranteed mortgage loans, decreased
Slide 24: Investor CRE Loans
Investor CRE Loans 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 national average Overall past dues for investor CRE l
Slide 25: Office Portfolio
Office Portfolio 86% of non-owner occupied office loans are located in MSAs in the Bank’s primary footprint; overall, the average vacancy was ~10% Central Business District (CBD) locations represent 7% of non-owner occupied properties; Charleston, SC and Tampa, FL represent the two largest CBD MSAs
Slide 26: Commercial Real Estate Production
Commercial Real Estate Production 3Q23 Commercial Real Estate Production Summary: 3Q23 Residential Construction Production Summary: 3Q23 production of C&D and CRE loans - $381.8 million in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 0.5:1 Investor C
Slide 27: Equipment Finance Portfolio
Equipment Finance Portfolio Total loans were $1.2 billion, or 6.0% of Ameris’s total portfolio The overall average loan size was $48.3 thousand Loan production totaled $156.7 million in 3Q23. The average FICO score for new production in 3Q23 was 738 30-89 day accruing past due loans were 0.85% of to
Slide 28: Appendix
Appendix AMERIS BANCORP
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Slide 33: Ameris Bancorp Press Release & Financial Highlights September 30, 2023
Ameris Bancorp Press Release & Financial Highlights September 30, 2023