Ameris Bancorp · NYSE:ABCB

Ameris Bancorp — Q2 2022 Earnings Presentation

29 slides from Ameris Bancorp's earnings presentation, Jul 26, 2022

  1. Slide 1: 2nd Quarter 2022 Results Investor Presentation

    2nd Quarter 2022 Results Investor Presentation Exhibit 99.2

  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,”

  3. Slide 3: Ameris Profile Investment Rationale

    Ameris Profile Investment Rationale Historically 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 leadersh

  4. Slide 4: 2nd Quarter 2022 Financial Results

    2nd Quarter 2022 Financial Results

  5. Slide 5: 2Q 2022 Operating Highlights

    2Q 2022 Operating Highlights 4 Net income of $90.1 million, or $1.30 per diluted share Adjusted net income(1) of $81.5 million, or $1.18 per diluted share Growth in tangible book value(1) of $1.05 per share, or 3.9%, to $27.89 at June 30, 2022 Only $0.16 dilution, or less than 1%, in tangible book v

  6. Slide 6: 2022 YTD Operating Highlights

    2022 YTD Operating Highlights 5 Net income of $171.8 million, or $2.47 per diluted share Adjusted net income(1) of $156.5 million, or $2.25 per diluted share Growth in tangible book value(1) of $1.63 per share, or 6.2%, to $27.89 at June 30, 2022, compared with $26.26 at December 31, 2021 Improvemen

  7. 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

  8. 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

  9. Slide 9: Net Interest Margin

    Net Interest Margin 8 Average earning assets grew by $23.0 million, while spread income increased $18.8 million compared with 1Q22 Margin up 31bps from 1Q22: 26bps due to reduction in excess liquidity and higher cash yield 5bps due to higher loan yield Total deposit costs up only 1bp from 1Q22 due t

  10. Slide 10: Expenses

    Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights 9 Total adjusted operating expenses decreased $614,000 in 2Q22 compared with 1Q22 Decrease of $647,000 in 2Q22 banking division operating expenses primarily due to: $1.8 million seasonal decrease in payroll taxes $729,000 s

  11. Slide 11: Retail Mortgage Division Details

    Retail Mortgage Division Details 10 Rationalization and Stabilization of Mortgage Operations: Retail mortgage originations represent 8.5% of the Company’s adjusted pre-provision, pre-tax income for 2Q22, down from 21.5% this time last year Approximately $15.3 million, or 74%, of the net interest inc

  12. Slide 12: Balance Sheet Trends

    Balance Sheet Trends 11 Well positioned for rising rate environment: 1.9% asset sensitivity in +50bps 3.8% asset sensitivity in +100bps 7.4% asset sensitivity in +200bps A 25bps rate increase positively affects margin by approximately 4bps Approximately $5.3 billion, or 30%, of loans are variable ra

  13. 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 41.98% of total deposits, a 45% improvement from 28.88% at 2Q17 Excess liquidity of $1.5 billion pr

  14. 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 $1.05 per share in 2Q22: $1.15 from retained earnings ($0.16) from impact of OCI $0.06 from all other items inclu

  15. Slide 15: Loan Diversification and Credit Quality

    Loan Diversification and Credit Quality

  16. Slide 16: Diversified Loan Portfolio

    Diversified Loan Portfolio 2Q22 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 $821.8 million at 2Q22, or 4.7% of total loans, which added ~4% to this category CRE and C&D concentratio

  17. Slide 17: Loan Production vs Growth

    Loan Production vs Growth 16 2Q22 production was driven by: Construction Loan Commitments ($1.2 billion), Residential Mortgage Loans ($604.1 million), Commercial Real Estate ($581.4 million), Premium Finance ($488.6 million), C & I Loans ($342.6 million) and Balboa Capital ($153.5 million) *Loan pro

  18. Slide 18: Loan Balance Changes

    Loan Balance Changes 2Q22 Loan Balance Changes 17 2Q22 loan growth totaled $1.42 billion, or 35.1% annualized Growth was primarily driven by residential mortgages as we successfully executed on our strategy of investing excess liquidity at favorable rates. Mortgage loans booked in 2Q22 via the Mortg

  19. Slide 19: Balboa Capital Portfolio

    Balboa Capital Portfolio 18 Balboa Capital is a 34 year-old small business lender having successfully operated through several recessions over that period Day 1 acquired loans totaled $665.8 million Total loans at 2Q22 were $821.8 million, or an annualized growth rate of 19.2% from YE21 2Q22 product

  20. Slide 20: Allowance for Loan Losses

    Allowance for Loan Losses 19 The ALLL totaled $172.6 million at 2Q22, a net increase of $11.3 million, or 7.0%, from 1Q22 The reserve for unfunded commitments totaled $44.0 million, an increase of $1.8 million, or 4.2%, from 1Q22 During 2Q22, we recorded a provision expense of $14.9 million, primari

  21. Slide 21: NPA / Charge-Off Trend

    NPA / Charge-Off Trend 20 Non-Performing Assets (“NPAs”) increased $21.2 million, to $132.4 million at 2Q22, primarily as a result of: $7.3 million increase in 90+ past due GNMA mortgage loans $8.0 million increase in CRE loans due to one loan downgrade $6.2 million increase in 90+ past due portfoli

  22. Slide 22: Problem Loan Trends

    Problem Loan Trends 21 Total classified loans increased $3.9 million, primarily the result of increased 90+ past due GNMA and portfolio mortgage loans Criticized loans (special mention + classified) increased $20.6 million The largest watch list component was SFR mortgage loans at $99.2 million (38%

  23. Slide 23: Investor CRE Loans

    Investor CRE Loans 22 Approximately 93% of CRE loans are concentrated within our five-state footprint

  24. Slide 24: Commercial Real Estate Production

    Commercial Real Estate Production 2Q22 Commercial Real Estate Production Summary: 23 2Q22 Construction and Development Loan Production Summary: 2Q22 production of C&D and CRE loans - $1.75 billion in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 0.7:1

  25. Slide 25: Appendix

    Appendix AMERIS BANCORP

  26. Slide 26: Reconciliation of GAAP to Non-GAAP Measures

    25 Reconciliation of GAAP to Non-GAAP Measures

  27. Slide 27: Reconciliation of GAAP to Non-GAAP Measures

    26 Reconciliation of GAAP to Non-GAAP Measures

  28. Slide 28: Reconciliation of GAAP to Non-GAAP Measures

    27 Reconciliation of GAAP to Non-GAAP Measures

  29. Slide 29: Ameris Bancorp Press Release & Financial Highlights June 30, 2022

    Ameris Bancorp Press Release & Financial Highlights June 30, 2022

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