Ameris Bancorp · NYSE:ABCB
Ameris Bancorp — Q4 2018 Earnings Presentation
31 slides from Ameris Bancorp's earnings presentation, Jan 25, 2019
Slide 1: Ameris Bancorp 4th Quarter 2018 Results Investor Presentation
Ameris Bancorp 4 th Quarter 2018 Results Investor Presentation
Slide 2: Forward-looking statements
This presentation contains forward - looking statements, as defined by federal securities laws, including, among other forward - looking statements, certain plans, expectations and goals, and including statements about the benefits of the proposed merger between Ameris Bancorp (“Ameris”) and Fidelit
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It Ameris intends to file a registration statement on Form S - 4 with the SEC to register the shares of Ameris common stock that will be issued to Fidelity’s shareholders in connection with the proposed merger transaction. The registration statement will incl
Slide 4: The Ameris Bancorp Story
• Focused management team on producing top quartile results ( 1 . 61 % Adjusted ROA + 20 . 95 % Adjusted ROTCE in 4 Q 2018 ) • Managed zero rate sensitivity in 2018 vs . 2017 despite 46 % growth in total assets and intense pressure on deposit costs • Strong, attractive Southeastern markets and attra
Slide 5: Clear Path to Future Increase in EPS
Clear Path to Future Increase in EPS Confidence in 2019 financial expectations: • Maintain margin through funding expertise, capacity and better mix • Double - digit balance sheet growth in strong economic times; able to dial back if necessary in downturns to protect credit and balance sheet • Relia
Slide 6: Investment Rationale
Investment Rationale Organic Growth Opportunities • Top quartile return on assets (> 1 . 60 % in 4 Q 18 ) • Strong ROTCE’s that support organic and M&A growth (over 20 % in 4 Q 18 ) • Efficiency ratio below 55 % with catalysts that are expected to drive us to 50 % over next 12 months Operating Perfo
Slide 7: 2018 Financial Results
2018 Financial Results A 0 zxmeris Bancorp
Slide 8: Earnings Summary – Adjusted Basis
Earnings Summary – Adjusted Basis 6 Quarter to Date Results Year To Date Results 4Q 18 4Q 17 Change 2018 2017 Change Adjusted Earnings $ 45,897 $ 23,590 95% $ 146,208 $ 92,271 58% Adjusted Earnings Per Share $ 0.96 $ 0.63 52% $ 3.38 $ 2.48 36% Adjusted Return on Assets 1.61% 1.20% 34% 1.50% 1.26% 19
Slide 9: 4Q 2018 Operating Highlights
4Q 2018 Operating Highlights • Growth in adjusted net earnings of 94.6% compared with 4Q 2017 • Adjusted efficiency ratio of 54.10% compared with 54.42% in 3Q18 and 60.88% in 4Q17 • Adjusted ROA of 1.61%, compared with 1.53% in 3Q18 and 1.20% in 4Q17 • Adjusted ROTCE of 20.95%, compared with 20.50%
Slide 10: 2018 YTD Operating Highlights
2018 YTD Operating Highlights • Growth in adjusted net earnings of 58.5% compared with 2017 • Adjusted efficiency ratio of 56.19% during 2018, compared with 60.27% in 2017 • Year - over - year organic growth in noninterest bearing deposits of $183.5 million, or 10.3% • Adjusted ROA and ROTCE of 1.50
Slide 11: Operating Highlights
Operating Highlights (1) Asset growth is materially impacted in 2Q18 by the acquisitions of Atlantic Coast Bank and Hamilton State Bank (2) Core operating expenses exclude merger related charges, Executive retirement costs, restructuring charges, compliance resolution costs, financial impact of hurr
Slide 12: Total Revenue
Total Revenue Spread Revenues • $2.10 billion, or 31.1%, growth in average year - to - date earning assets over 2017 • Stable margin despite strong growth and competitive rate environment. Margin (excluding accretion) of 3.79% in 2018 and 2017 Non - Interest Income • Mortgage revenue – increased $2.
Slide 13: Net Interest Margin
Net Interest Margin Spread Income and Margin supported by: • Growth in year - to - date average earning assets of $2.10 billion, or 31.1%, compared with 2017 • Margin (excluding accretion) lower by 2bps in the fourth quarter due to higher deposit costs. – Loan yields (excluding accretion) improved b
Slide 14: Expenses – 4Q18
Expenses – 4Q18 • As expected, decline in 4 Q 18 core operating expenses at the Bank due to final realization of cost savings from Hamilton acquisition • Slight increase in 4 Q 18 core operating expenses in the lines of business as we hired additional mortgage bankers in our retail mortgage division
Slide 15: Capital and TBV – 4Q18
Capital and TBV – 4Q18 • Historically, consistent growth in TBV • TBV increased $1.05 in 4Q18 Consistent Growth in TBV • TCE / TA at quarter end of 8.22%, up from 7.77% at end of 3Q18 • Excluding OCI changes, expect 20bps of TCE growth per quarter • 4Q 2018 Adjusted ROTCE of 20.95% • Normalized ROTC
Slide 16: Credit Quality and Loan Diversification
Credit Quality and Loan Diversification
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio YE2018 Loan Portfolio • Largest category of loans < 23% of total – well diversified Mortgage loans & HELOCs • Participations purchased < 1% of total loans • Average loan size = $81,000 (all loan types) • Only 10.4% of total loans in Construction or A&D • CRE and C&D concen
Slide 18: Portfolio Changes Since 2008
Portfolio Changes Since 2008 Loan Portfolio - 2008 Loan Portfolio - 2018 • New SFR Mortgage loans primarily retail production from Mortgage Division, which underwrites to Secondary Market standards • Greater diversification in C&I, Municipal and Consumer loans • Concentration of AC&D loans approxima
Slide 19: Diversified Loan Portfolio – Relationship Groupings
Diversified Loan Portfolio 16 Relationship Groupings Total Committed Exposure (MM's) % of Total Portfolio Top 25 Relationships 819.6 $ 13.7% Top 50 Relationships 1,351.6 $ 22.6% Top 100 Relationships 2,076.6 $ 34.7% Top 250 Relationships 3,242.7 $ 54.1% Top 300 Relationships 3,493.0 $ 58.3% Individu
Slide 20: Non-Performing Asset Trend
Non - Performing Asset Trend • Non - Performing Assets have decreased from $87.6 million at YE14 to $63.0 million at YE18 (28% reduction) • Ameris has completed five acquisitions since YE14, resulting in an increase in Total Assets from $4.0B to $11.4B • As a % of Total Assets, NPAs declined from 2.
Slide 21: Investor CRE Loans
Investor CRE Loans • 60% of CRE assets are concentrated in Atlanta, Jacksonville, Orlando, Tampa, Tallahassee, Columbia, Savannah and Charleston MSAs • At YE18, Past Due and Nonaccrual loans totaled 8 bps and 31 bps, respectively. 18 Investor CRE 18.7% AC&D 10.4% Multi - Family 4.5% Loan Type Outsta
Slide 22: C&I Loans
• Largest segment is US Premium Finance at $420.9 million • 2018 production = $1.0 billion • Weighted avg down payment = 19.6% • Weighted avg # installments = 9.7 • Remaining agency loans = $13.2 million • Mortgage Warehouse Division funded $4.5 billion of loans in 2018 – 29% increase over 2017 • To
Slide 23: Mortgage Loans
Mortgage Loans • Portfolio Loans consist of: • Legacy - $812.3 million • Mortgage division - $685.4 million • Purchase mortgage pools - $262.6 million • Home Equity LOCs - $172.3 million • Mortgage division production is underwritten to secondary market standards. Originations in second half of 2018
Slide 24: Update on Acquisition of Fidelity Southern Corporation
Update on Acquisition of Fidelity Southern Corporation
Slide 25: 2018 Acquisitions Update
2018 Acquisitions Update • Fidelity Southern Corporation – Announced pending merger on December 17, 2018 – Expected to close in the 2 nd Quarter of 2019, pending regulatory and shareholder approvals • Atlantic Coast Financial Corporation (“Atlantic”) – Forecasted $14.1 million of cost saves; Identif
Slide 26: Combined Leadership Strength
Combined Leadership Strength The acquisition of Fidelity Southern Corporation strengthens our leadership: • Combined bank will be led by Dennis Zember and Palmer Proctor – Dennis J. Zember Jr. – Vice Chairman and CEO, Ameris Bancorp – H. Palmer Proctor Jr. – President, Ameris Bancorp / CEO, Ameris B
Slide 27: Transaction Rationale of Fidelity Merger
Transaction Rationale of Fidelity Merger • Strategic Rationale – Extremely valuable low - cost core deposit base, 25% less expensive than Ameris Bank’s – Reinforces our position as the premier banking franchise in the Southeast with one of the most recognizable brands – Further de - risks our balanc
Slide 28: Proforma Company with Fidelity
Proforma Company with Fidelity 24 Pro Forma Footprint Pro Forma Financial Highlights Pro Forma Deposits by Region Atlanta MSA 36% Florida 27% Other 37% 75 85 85 75 20 16 95 10 75 4 95 Note: Data as of or for the three months ended September 30, 2018. (1) Excludes purchase accounting adjustments. (2)
Slide 29: Proforma Loan Portfolio with Fidelity
Proforma Loan Portfolio with Fidelity Ameris Bank Fidelity Bank Combined Bank 25 Agriculture 0.1% C&I 5.6% Municipal , 0.0% Consumer 42.7% Investor CRE 10.8% Owner Occupied CRE 10.9% AC&D 8.8% Multi - Family 1.0% SFR Mortgage 20.1% Agriculture 1.7% C&I 13.4% Municipal 4.9% Consumer 16.8% Investor CR
Slide 30: Future Benefits of Fidelity Merger
Future Benefits of Fidelity Merger • Strongest community bank in our home markets • Concentrated deposits in top Atlanta market • Well diversified loan portfolio with lower CRE concentrations • Substantial mortgage opportunity and #1 provider of RRE construction loans in Atlanta MSA • Restructure of
Slide 31: Ameris Bancorp Press Release & Financial Highlights December 31, 2018
Ameris Bancorp Press Release & Financial Highlights December 31, 2018