Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q2 2023 Earnings Presentation
33 slides from Ameris Bancorp's earnings presentation, Jul 27, 2023
Slide 1: 2nd Quarter 2023 Results Investor Presentation
2nd 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: 2nd Quarter 2023 Financial Results
2nd Quarter 2023 Financial Results
Slide 6: 2Q 2023 Operating Highlights
2Q 2023 Operating Highlights Net income of $62.6 million, or $0.91 per diluted share PPNR ROA(1) of 2.01% for 2Q23 Adjusted efficiency ratio(1) of 53.41% TCE ratio(1) of 8.80% 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 $123.1 million, or $1.78 per diluted share PPNR ROA(1) of 2.04% Growth in tangible book value(1) of $1.50 per share, or 10.1% annualized, to $31.42 Adjusted efficiency ratio(1) of 52.72% Net interest margin of 3.68% Organic loan growth of $616.5 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: 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, exclu
Slide 10: Strong Net Interest Margin
Strong Net Interest Margin Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 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% 4Q22 $ 399.9 8.16% $ 213.0 7.46% $612.9 7.92% Above peer group margin, at 3.60% Net interest income (T
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 Total adjusted operating expenses increased $9.0 million in 2Q23 compared with 1Q23: Increase of $7.0 million in 2Q23 banking divisi
Slide 12: Balance Sheet Trends
Balance Sheet Trends Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: -1.1% asset sensitivity in -100bps -0.5% asset sensitivity in -50bps 0.5% asset sensitivity in +50bps 0.9% asset sensitivity in +100bps Approximately $7.3 billion, or 35%, of loans are variable ra
Slide 13: Proven Liquidity Plan
Proven Liquidity Plan At June 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,319 $ - $ 1,319 Unpledged Securities 691 - 691 External Sources FHLB 5,424 2,123 3,301 FRB Discount Window 2,634 - 2,634 Brokered Deposits 2,830 1,580 1,250 Other 127 - 127 Tot
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base Deposit Highlights Total deposits increased $545.6 million in 2Q23 compared with 1Q23 Noninterest-bearing deposits decreased $591.0 million, or 8.1% MMDAs increased $502.7 million, or 10.5% CDs increased $626.4 million, or 21.2% Exclusive of increase in brokered CDs, total d
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 13% annualized TBV increased $0.63 per share in 2Q23: $0.75 from retained earnings ($0.22) from impact of OCI $0.10 from all other items includin
Slide 16: Loan Diversification and Credit Quality
Loan Diversification and Credit Quality
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio 2Q23 Loan Portfolio Loan portfolio is well diversified across loan types and geographies CRE and C&D concentrations were 282% and 80%, respectively, at 2Q23 Non-owner occupied office loans totaled $1.4 billion at 2Q23, or 6.9% of total loans Continued strong asset quality
Slide 18: Loan Production vs Growth
Loan Production vs Growth 2Q23 loan production was spread across many product lines, continuing to contribute to portfolio diversification Overall, 2Q23 production exhibited a 16% increase from 1Q23. Loan growth in 2Q23 was primarily driven by higher seasonal volumes of new loans in Mortgage Warehou
Slide 19: Loan Balance Changes
Loan Balance Changes 2Q23 Loan Balance Changes 2Q23 loan growth was varied across several loan types and totaled $473.9 million, or 9.5% annualized Growth in Mortgage Warehouse loans was primarily seasonal in nature as home sales generally increase during spring / summer C&D growth was driven by adv
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses Increase in reserve during 2Q23 due to economic forecasts, particularly projected negative CRE price indices The ACL on loans totaled $272.1 million at 2Q23, a net increase of $29.4 million, or 12.1% from 1Q23 The reserve for unfunded commitments totaled $54.6 million, an
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 1Q23 of $20.7 million The blended ALLL % for those two categories was 1.50%
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 0.30% at 2Q23 vs 0.33% at 1Q23 Total NPAs decreased $14.0 million, to $146.3 million, primarily as a result of: $8.9 million decrease in 90+ past due GNMA-guaranteed and portfolio mortgage
Slide 23: Problem Loan Trends
Problem Loan Trends Total classified loans, excluding GNMA-guaranteed mortgage loans, decreased $36.1 million, primarily the result of pay-offs and other collection activities Total criticized loans (special mention + classified), excluding GNMA-guaranteed mortgage loans, increased $18.6 million dur
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 85% of non-owner occupied office loans are located in MSAs in the Bank’s footprint; overall, the average vacancy was < 10% The average maturity of fixed-rate loans is ~3.8 years; only 17% of loans mature through 2024 The portion of the ACL apportioned to non-owner occupied office lo
Slide 26: Commercial Real Estate Production
Commercial Real Estate Production 2Q23 Commercial Real Estate Production Summary: 2Q23 Residential Construction Production Summary: 2Q23 production of C&D and CRE loans - $543.0 million in total committed exposure Residential real estate construction: Seasonal increase in spring / summer Spec/model
Slide 27: Equipment Finance Portfolio
Equipment Finance Portfolio Total loans were $1.2 billion, or 5.7% of Ameris’s total portfolio The overall average loan size was $47.3 thousand Loan production totaled $168.0 million in 2Q23. Average FICO score was 734 30-89 day accruing past due loans were 1.03% of total loans; non-performing loans
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 June 30, 2023
Ameris Bancorp Press Release & Financial Highlights June 30, 2023