Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2022 Earnings Presentation
28 slides from Ameris Bancorp's earnings presentation, Oct 27, 2022
Slide 1: 3rd Quarter 2022 Results Investor Presentation
3rd Quarter 2022 Results Investor Presentation Exhibit 99.2
Slide 2: Cautionary Statements
Cautionary Statements 1 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 Investment Rationale
Ameris Profile Investment Rationale Top of peer financial results Culture of discipline – credit, liquidity, expense control, capital preservation Proven stewards of shareholder value – TBV has grown 10% annualized over past five years Experienced executive team with skills and leadership to continu
Slide 4: 3rd Quarter 2022 Financial Results
3rd Quarter 2022 Financial Results
Slide 5: 3Q 2022 Operating Highlights
3Q 2022 Operating Highlights 4 Net income of $92.6 million, or $1.34 per diluted share Adjusted net income(1) of $91.8 million, or $1.32 per diluted share Growth in tangible book value(1) of $0.73 per share, or 2.6%, to $28.62 at September 30, 2022 Only $0.55 dilution, or less than 2%, in tangible b
Slide 6: 2022 YTD Operating Highlights
2022 YTD Operating Highlights 5 Net income of $264.3 million, or $3.81 per diluted share Adjusted net income(1) of $248.3 million, or $3.58 per diluted share Growth in tangible book value(1) of $2.36 per share, or 9.0%, to $28.62 at September 30, 2022, compared with $26.26 at December 31, 2021 Impro
Slide 7: Financial Highlights
Financial Highlights 6 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods
Slide 8: Revenue
Revenue 7 Strong revenue base of net interest income from core banking division Additional revenue provided by our diversified lines of business Improved mix of earning assets as excess liquidity was deployed in the investment and loan portfolios Diversified Revenue Stream Mortgage Banking Activity
Slide 9: Net Interest Margin
Net Interest Margin 8 Average earning assets grew by $300.7 million, while spread income increased $40.4 million compared with 2Q22 Margin up 31bps from 2Q22: 20bps due to reduction in excess liquidity and higher cash yield 31bps due to higher loan yield Partially offset by 20bps increase in cost of
Slide 10: Expenses
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights 9 Management continues to deliver high performing operating efficiency Adjusted efficiency ratio improved to 50.06% in 3Q22, compared with 53.66% in 2Q22 Total adjusted operating expenses decreased $2.8 million in 3Q22 comp
Slide 11: Retail Mortgage Division Details
Retail Mortgage Division Details 10 Rationalization and Stabilization of Mortgage Operations: Retail mortgage originations represent 2.3% of the Company’s adjusted pre-provision, pre-tax income for 3Q22, down from 17.1% this time last year Approximately $16.4 million, or 85%, of the net interest inc
Slide 12: Balance Sheet Trends
Balance Sheet Trends 11 Well positioned for rising rate environment: 1.5% asset sensitivity in +50bps 2.9% asset sensitivity in +100bps 5.7% asset sensitivity in +200bps A 25bps rate increase positively affects margin by approximately 2bps Approximately $6 billion, or 32%, of loans are variable rate
Slide 13: Strong Core Deposit Base
Strong Core Deposit Base 12 Deposit Highlights Deposit mix well positioned for future rate increases Improved deposit mix over the past five years such that noninterest bearing deposits now represent 42.86% of total deposits, a 47% improvement from 29.14% at 3Q17 Favorable deposit mix provides abili
Slide 14: Capital and TBV
Capital and TBV Proven Stewards of Shareholder Value 13 Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 10% annualized TBV increased $0.73 per share in 3Q22: $1.19 from retained earnings ($0.55) from impact of OCI $0.09 from all other items inclu
Slide 15: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q22 Loan Portfolio 15 Loan portfolio is well diversified across loan types and geographies C&I loans represent second-largest category of loans Balboa Capital totaled $912.8 million at 3Q22, or 4.9% of total loans, which added ~4% to this category CRE and C&D concentratio
Slide 17: Loan Balance Changes
Loan Balance Changes 3Q22 Loan Balance Changes 16 3Q22 loan growth was varied across several loan types and totaled $1.25 billion, or 28.4% annualized; Continued growth across all sectors contributes to better diversification of loans Growth in residential mortgages continues to be high as we succes
Slide 18: Balboa Capital Portfolio
Balboa Capital Portfolio 17 Balboa Capital is a 35-year-old small business lender which successfully operated through several business cycles over that period Total loans at 3Q22 were $912.8 million, or an annualized growth rate of 43.3% from YE21 3Q22 production totaled $174.4 million with a yield
Slide 19: Allowance for Credit Losses
Allowance for Credit Losses 18 The ACL on loans totaled $184.9 million at 3Q22, a net increase of $12.3 million, or 7.1% from 2Q22 The reserve for unfunded commitments totaled $44.2 million, an increase of $0.2 million, or 0.4% from 2Q22 During 3Q22, we recorded a provision expense of $17.7 million
Slide 20: NPA / Charge-Off Trend
NPA / Charge-Off Trend 19 Non-Performing Assets (“NPAs”) decreased $0.5 million, to $132.0 million at 3Q22, primarily as a result of: $6.9 million decrease in loans due to successful collection activities $4.0 million increase in 90+ past due GNMA-backed mortgage loans $3.6 million increase in Premi
Slide 21: Problem Loan Trends
Problem Loan Trends 20 Total classified loans were relatively stable at 1.13% of total loans Total criticized loans (special mention + classified) increased in 3Q22 but also remained low at 1.72% of total loans The largest watch list component was SFR mortgage loans at $139.6 million (43% of total),
Slide 22: Investor CRE Loans
Investor CRE Loans 21 Approximately 93% of CRE loans are concentrated within our five-state footprint
Slide 23: Commercial Real Estate Production
Commercial Real Estate Production 3Q22 Commercial Real Estate Production Summary: 22 3Q22 Construction and Development Loan Production Summary: 3Q22 production of C&D and CRE loans - $1.48 billion in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 1.0:1
Slide 24: Appendix
Appendix AMERIS BANCORP
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
24 Reconciliation of GAAP to Non-GAAP Measures
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
25 Reconciliation of GAAP to Non-GAAP Measures
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
26 Reconciliation of GAAP to Non-GAAP Measures
Slide 28: Ameris Bancorp Press Release & Financial Highlights September 30, 2022
Ameris Bancorp Press Release & Financial Highlights September 30, 2022