Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q3 2024 Earnings Presentation
28 slides from Ameris Bancorp's earnings presentation, Oct 25, 2024
Slide 1: 3rd Quarter 2024 Results Investor Presentation
3rd Quarter 2024 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 • Diversified loan portfolio among geographies and product lines • Strong Southeast markets projected to grow faster than the national average(1) • Stable depo
Slide 4: 3Q 2024 Operating Highlights
3Q 2024 Operating Highlights • Net income of $99.2 million, or $1.44 per diluted share; Adjusted net income (1) of $95.2 million, or $1.38 per diluted share • Net interest income (TE) increased $2.1 million to $215.0 million • PPNR ROA(1) of 1.99% for 3Q24, which includes 8bps positive impact from a
Slide 5: Financial Highlights
Financial Highlights (dollars in thousands, except per share data) Quarter to Date Results Year to Date Results 3Q24 2Q24 Change 3Q23 Change 2024 2023 Change Net Income $ 99,212 $ 90,785 9% $ 80,115 24% $ 264,309 $ 203,171 30% Adjusted Net Income(1) $ 95,187 $ 80,763 18% $ 80,115 19% $ 251,562 $ 202
Slide 6: Strong Net Interest Margin
Strong Net Interest Margin $230.0 5.25% Net Interest Income (TE) Spread Income and Margin $225.0 (in millions) 5.00% $220.0 • Net interest income (TE) of $215.0 million in 3Q24, 4.75% compared with $212.9 million in 2Q24 $215.0 $215.0 – Interest income (TE) increased $7.8 million 4.50% $210.0 $212.9
Slide 7: 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 FTE Revenue Sources (in millions) Mortgage Banking Activity 120% • Mortgage banking activity was 13% of total revenue in 3Q24 $271.9 $263.
Slide 8: Disciplined Expense Control
Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) Expense Highlights 180.0 • Management continues to deliver high performing Adjusted Operating Expenses 160.0 (in millions) operating efficiency $45.6 $41.9 140.0 $40.3 $40.4 • Adjusted efficiency ratio of 54.25% in 3Q
Slide 9: Strong Core Deposit Base
Strong Core Deposit Base 3Q24 Highlights Deposits by Product Type Average per • Total deposits grew $435.1 million, or 8.1% Deposit Balance % of Total Count account annualized, during 3Q24 Type (in 000s) (in 000’s) • Brokered deposits increased $403.7 million due to NIB 6,670,320 30.5% 306,991 21.7
Slide 10: Capital Strength
Capital Strength Strong Capital Base Capital Highlights • The Company is well capitalized with minimal 15.3% 14.0% 14.5% 14.6% 14.9% unrealized losses in the investment portfolio • TCE Ratio of 10.24% at September 30, 2024 11.2% 11.4% 11.7% 12.1% 10.8% • CET1 ratio is strong at 12.1% 9.6% 9.9% 10.2%
Slide 11: 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 13% annualized • TBV increased $1.72 per share in 3Q24: – $1.28 from retained earnings – $0.32 from impact of OCI – $0.12 from all other items
Slide 12: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q24 Loan Portfolio Portfolio Highlights Agriculture 1% • Loan portfolio is well diversified across loan types and geographies and managed by a seasoned credit staff SFR Mortgage • Asset quality metrics remain stable and better & HELOC 22% C&I than historic averages 24% •
Slide 14: Loan Balance Changes
Loan Balance Changes (in millions) 3Q24 Loan Balance Changes $200 $146 $150 GNMA MSR Sale: $95 • Gain of $5.2 million $100 $89 • Sale reduced GNMA nonaccrual mortgages by $85.4 million $50 $- $(5) $(5) $(7) $(50) $(100) $(85) $(105) $(150) $(150) $(200) RE - CRE Premium CFIA (1) Municipal Indirect C
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses 3Q24 CECL Reserve (in millions) Reserve Summary • The ACL on loans equated to 1.60% of total loans at both 3Q24 and 2Q24 • The ACL on loans totaled $334.5 million at 3Q24, a net decrease of $1.8 million, or -0.5%, from 2Q24 • During 3Q24, a provision expense of $6.1 milli
Slide 16: Allowance for Credit Losses
Allowance for Credit Losses 3Q24 ACL Reserve by Loan Type Net 6/30/24 Outstanding ACL ACL Change Loan Type (MM's) (MM's) % ACL (MM's) % ACL from 2Q24 CFIA $ 2,950.0 $ 67.9 2.30% $ 66.5 2.33% $ 1.3 Consumer $ 210.3 $ 4.1 1.96% $ 3.5 1.58% $ 0.7 Indirect $ 10.9 $ 0.0 0.28% $ 0.0 0.17% $ 0.0 Municipal
Slide 17: NPA / Charge-Off Trend
NPA / Charge-Off Trend Non-Performing Assets 0.80% 0.74% 0.69% 0.71% 3Q24 Credit Summary 0.70% 0.58% 0.60% • NPAs, as a percentage of total assets, 0.50% 0.44% decreased 30 bps to 0.44% at 3Q24 0.38% 0.39% 0.40% 0.33% compared with 0.74% at 2Q24 0.41% 0.27% 0.30% • Total NPAs decreased $80.3 million
Slide 18: Problem Loan Trends
Problem Loan Trends (in millions) $350 1.64% Highlights 1.52% • Total criticized loans (including special $300 1.43% mention), excluding GNMA- 1.31% 1.34% guaranteed mortgage loans, increased $4.8 million in 3Q24 $250 • For 3Q24, classified loans, excluding GNMA-guaranteed mortgage loans, decreased
Slide 19: Investor CRE Loans
Investor CRE Loans Multi- Avg Size Family 6% Outstanding Commitment Loan Type (MM's) % NPL % PD (000's) Construction Investor Construction Loans: 11% CRE 23% RRE - Presold $ 289.5 1.19% 3.62% $ 262.9 RRE - Spec & Models $ 217.6 0.00% 0.00% $ 251.8 RRE - Lots & Land $ 119.0 0.01% 0.37% $ 461.1 RRE -
Slide 20: Office Portfolio
Office Portfolio Investor Office Total Office Portfolio by Loan Type Outstanding 1.43B Unfunded 0.16B Owner- Construction Occupied $246.3 Total Commited Exposure 1.59B $459.2 Allowance Coverage 2.75% PD Ratio 0.22% NPL Ratio 0.04% Criticized Ratio 0.95% Criticized ACL Coverage 288% Average LTV* 60%
Slide 21: Equipment Finance Portfolio
Equipment Finance Portfolio (in millions) Highlights $1,400 $1,475 $1,421 $1,351 • Total loans were $1.48 billion, or 7.0% of $1,200 $1,287 $1,210 the Bank’s total portfolio $1,000 • The overall average loan size was $55,400 $800 $600 • Loan production totaled $181.9 million in 3Q24; the average FIC
Slide 22: Appendix
Appendix AMERIS BANCORP
Slide 23: Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) Quarter to Date Year to Date 3Q24 2Q24 3Q23 2024 2023 Net Income $ 99,212 $ 90,785 $ 80,115 $ 264,309 $ 203,171 Adjustment items Gain on sale of MSR (5,245) (4,713) - (9,958) - Gain on conversion of Visa Class B-1 stock - (12,554) -
Slide 24: Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2024 2023 Adjusted Noninterest Expense Total noninterest expense $ 151,777 $ 155,357 $ 148,711 $ 149,011 $ 141,446 $ 455,845 $ 429,270 Adjustment items: FDIC special assessment -
Slide 25: Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date (dollars in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 Total shareholders' equity $ 3,681,368 $ 3,566,614 $ 3,484,738 $ 3,426,747 $ 3,347,069 Less: Goodwill 1,015,646 1,015,646 1,015,646 1,015,646 1,015,646 Other intangibles, net 74,941 79,120 83,
Slide 26: Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter to Date Year to Date (dollars in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2024 2023 Net income $ 99,212 $ 90,785 $ 74,312 $ 65,934 $ 80,115 $ 264,309 $ 203,171 Plus: Income taxes 26,673 35,717 23,138 24,452 24,912 85,528 63,378 Provision for credit loss
Slide 27: Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures As of (dollars in thousands) 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 Total shareholders' equity $ 3,681,368 $ 3,566,614 $ 3,484,738 $ 3,426,747 $ 3,347,069 $ 3,284,630 $ 3,253,195 $ 3,197,400 $ 3,119,070 $ 3,073,376 $ 3,007,159 Less: Goodwil
Slide 28: Ameris Bancorp Press Release & Financial Highlights
Ameris Bancorp Press Release & Financial Highlights September 30, 2024