1 st Quarter 2014 Investor Presentation Exhibit 99.1 |
2 Cautionary Statements necessarily comparable to similar capital measures that may be presented by other companies. This presentation may contain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “estimate”, “expect”, “intend”, “anticipate” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements and are referred to the Company’s periodic filings with the Securities and Exchange Commission for a summary of certain factors that may impact the Company’s results of operations and financial condition. This presentation contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management of Ameris Bancorp (the “Company”) uses these non-GAAP measures in its analysis of the Company’s performance. These measures are useful when evaluating the underlying performance and efficiency of the Company’s operations and balance sheet. The Company’s management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company’s management believes that investors may use these non-GAAP financial measures to evaluate the Company’s financial performance without the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tangible common equity and Tier 1 capital ratios are non-GAAP measures. The Company calculates the Tier 1 capital using current call report instructions. The Company’s management uses these measures to assess the quality of capital and believes that investors may find them useful in their evaluation of the Company. These capital measures may, or may not be |
Corporate Profile • Headquartered in Moultrie, Georgia • Founded in 1971 as American Banking Company • Historically grown through acquisitions of smaller banks in areas close to existing operations • Recent growth through merger with Prosperity Banking Company and 10 FDIC-assisted transactions • Four state footprint with 68 offices 3 |
4 Management and Board Ownership of Approximately 7% Experienced Management Team Name, Position Experience (Banking / Ameris) Edwin W. Hortman Jr. Chief Executive Officer 33/15 Andrew B. Cheney EVP & Chief Operating Officer 37/5 Dennis J. Zember Jr. EVP & Chief Financial Officer 20/9 Jon S. Edwards EVP & Chief Credit Officer 28/14 Stephen A. Melton EVP, Chief Risk Officer 32/2 Cindi H. Lewis EVP, Chief Administrative Officer 36/36 T. Stan Limerick EVP, Chief Information Officer 7/1 |
Continue efforts to re-engineer the Company’s operating style • Develop more rapid growth in spread revenue as covered loan run-off subsides • Continue improving efficiency ratio through cost control and leverage through M&A • Retire remainder of TARP in Q1 2014 and re-instate common dividend during 2014 Integrate Prosperity and deliver meaningful EPS pickup from the transaction • Deal closed December 23, 2013. Conversion completed January 23, 2014 • Incremental earnings of $10mm+, incremental shares of only 1.2 million • Credit mark of $41.3 compared to classified assets totaling $52 million Position the Company to capitalize on significant M&A opportunities • Looking for larger transactions in our four states • Believe we can earn most of the capital it requires to participate actively • Will use M&A to accelerate the transition to improved operating efficiency 5 Current Focus |
6 4 th Quarter Update – Financial Condition dollars in millions, except per share data Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Change BALANCE SHEET Total Assets $3,019 $2,862 $2,809 $2,818 $3,668 21.50 % S/T assets & investments $628 $461 $418 $394 $708 12.75 Loans - noncovered $1,499 $1,535 $1,618 $1,659 $2,134 42.35 Loans - covered $507 $461 $444 $418 $390 (23.03) Reserve for loan losses 24 23 24 24 22 (6.76) Indemnification asset 159 161 106 82 65 (58.84) Non-interest bearing deposits 511 491 475 476 669 30.83 Interest bearing deposits 2,114 1,999 1,968 1,968 2,331 10.25 Tang Common Equity / Assets 8.23% 8.83 % 9.15 % 9.22 % 6.83 % (17.01) Tangible Book Value $10.39 $10.57 $10.74 $10.85 $9.87 (5.00)% |
7 2013 Operating Results A – Amounts are presented exclude $54.8 million of goodwill impairment in 2009 and $4.8 million of pretax merger costs in 2013. B – Efficiency ratio and Net Overhead ratios exclude goodwill impairment, merger costs and OREO/Problem loan expense. dollars in millions, except per share data YTD 2009 YTD 2010 YTD 2011 YTD 2012 YTD 2013 Change Net Income $10,441 A ($3,989) $21,093 $14,436 $23,596 A 63.45 % Net interest income $74,022 $89,277 $113,524 $114,405 $116,185 1.56 Provision for loan losses $42,068 $50,521 $32,729 $31,089 $11,486 (63.05) Non-interest income $58,353 $35,248 $52,807 $57,874 $46,549 (19.57) Mortgage revenues 3,050 2,748 2,971 12,989 19,128 47.26 Service charges on deposits 13,593 15,143 18,081 19,576 19,545 (0.16) Gains on FDIC assisted transactions 38,566 14,651 26,867 20,037 - (100.00) Non-interest expense $69,987 A $81,188 $101,953 $119,469 $121,945 A 2.07 Salaries & Benefits 31,939 31,918 40,210 53,122 56,670 6.68 Occupancy & DP costs 16,435 15,856 21,705 23,891 23,825 (0.28) OREO and problem loan expense 7,643 16,412 22,448 22,416 15,486 (30.92) Diluted earnings per share 0.76 -0.35 0.76 0.46 0.75 63.04 Return on Avg Assets 0.45 % (0.16) % 0.71 % 0.49 % 0.77 % 57.14 % Return on Avg TCE 7.98 (2.11) 8.66 6.11 8.14 33.22 Net interest margin (TE) 3.52 4.11 4.57 4.60 4.74 3.04 Efficiency ratio (operating 66.46 58.95 57.01 63.75 62.48 (1.99) Net Overhead (operating ) B 1.49 % 1.55 % 1.88 % 2.08 % 1.93 % (6.91) % ) B |
8 2 nd Quarter Update – Credit Quality dollars in millions, except per share data Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Change CREDIT QUALITY (1) Non-performing assets 78,735 77,910 71,696 69,698 73,489 (6.66)% Non-accrual loans 38,885 37,476 31,811 31,720 35,862 (7.77) OREO 39,850 40,434 39,885 37,978 37,627 (5.58) NPAs / Assets 2.61 % 2.72 % 2.55 % 2.47 % 2.00 % (23.37) Classified Assets / Capital 33.5 31.7 28.7 28.6 32.7 (2.24) Reserves / Loans 1.63 1.57 1.56 1.50 1.38 (15.34) Reserves / NPLs 60.67 62.39 76.13 75.20 62.40 2.85 Net Charge-offs 6,399 2,814 2,860 2,812 2,677 (58.17) as a % of average loans 1.75 % 0.76 % 0.74 % 0.70 % 0.66 % (62.29) New Non-accrual loans 15,687 8,113 5,749 6,165 5,363 (65.81)% |
• Diversified loan portfolio across five regions – Inland Georgia – 40% – Coastal Georgia – 11% – Alabama – 6% • In-house lending limit of $10.0 million versus $75 million legal limit – 12 loans greater than $5 million, no individual loan greater than $10.0 million • Loan participations less than 1.00% of total loans • Aggressive management of concentrations of credit • Top 25 relationships are only 12.2% of total loans, with avg. DSC of 2.02% and LTV of 65.2% 9 – South Carolina – 13% – Florida – 30% Loan Portfolio Detail Ag 7% C&I 9% Construction 7% Non-owner occupied CRE 17% Owner Occupied CRE 17% Consumer Installment & Residential 27% Covered 16% |
• Leveraging presence in new markets (top five markets account for 70% of pipeline: Atlanta, Jacksonville, Columbia, Savannah, Charleston • Upgrading production positions in key markets: limited changes to expense base but higher levels of quality production • Expanding Mortgage Strategy: Jumbo mortgages, wholesale, warehouse LOC • Leveraging Agricultural expertise: better yields than in CRE due to limited competition • Specialty lines of business that would diversify loan portfolio • Diversified loan types – not solely chasing CRE or competing with low rates that do not compensate for term or quality 10 Loan Portfolio – strong loan pipelines Consistent Loan Pipelines 1 Lending Strategies Pipeline Opportunities by Type 1 – Loan pipeline amounts consist of all loans management has deemed a 75% or better likelihood of closing. $67 $95 $127 $139 $147 $139 $141 $130 $161 $0 $45 $90 $135 $180 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Loan Pipeline EOQ (in millions) Commercial R/E, 52% Residential R/E, 4% Comm'l, Fncl & Agriculture, 33% Construction, 11% |
11 • $27.1 million - Largest Relationship has over 3.0x debt coverage, backed by taxing authority of one of our local markets. • 2.02x – Weighted average debt coverage of our 25 largest relationships. • 65.2% - Weighted average loan to value on our 25 largest relationships. Portfolio comprised of smaller relationships Diversified through smaller relationships as well Loan Portfolio |
12 • 26.3% - 5 Year compounded growth rate in our book of non-interest bearing demand. • $1.1 billion – Growth in non-rate sensitive deposits over last 5 years will materially protect Ameris Bank from the sensitivity of a growing fixed rate loan book. Significant Value in Deposit Portfolio Deposit Composition – 12/31/13 Growth in non-rate sensitive deposits 1,513 26% 50% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $400 $800 $1,200 $1,600 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Non-Rate Sensitive Deposits % of total deposits DDA, 22% NOW & Savings, 28% MMDA, 25% Retail Time, 25% Brokered, 0% |
13 FDIC Indemnification Asset Managing towards the end of loss share protection I/A – Indemnification Asset for reimbursement on expected losses from the FDIC 1- Months remaining to collect remainder of indemnification asset is a weighted average based on the indemnification asset at 12/31/2013. 2 - Current Estimate of losses includes all losses incurred to date as well as reimbursable expenses plus expected losses not incurred for which there is a corresponding indemnification asset. Original estimate of losses includes gross losses identified in due diligence and 10% for workout expenses. Classifieds Maturing After L/S All Loans Bank Original I/A (000's) Current I/A (000's) % of Original I/A Remaining Months to Collect Original Estimate of Losses (000's) Current Estimate of Losses (000's) Current Estimate as a % of Original NBV I/A NBV I/A on loans AUB 24,200 145 0.6% 9.0 33,275 29,526 88.7% 661 - 15,555 185 USB 21,640 1,181 5.5% 10.0 29,755 41,634 139.9% 989 6 17,077 1,142 SCB 22,400 1,410 6.3% 17.0 30,800 29,824 96.8% 1,517 10 33,154 1,186 FBJ 11,307 3,062 27.1% 22.0 15,547 10,976 70.6% 214 46 22,161 2,983 TBC 22,807 2,461 10.8% 23.0 31,360 24,979 89.5% 389 74 30,251 1,871 DBT 112,404 15,230 13.5% 23.0 160,577 136,365 84.9% 536 238 87,268 14,313 HTB 49,485 7,306 14.8% 30.0 68,042 51,087 75.1% 1,590 566 59,805 5,857 OGB 45,488 6,325 13.9% 30.0 62,546 33,004 52.8% 996 67 53,543 3,975 CBG 52,664 12,338 23.4% 37.0 72,413 43,753 60.4% 4,037 767 71,583 10,828 362,395 49,458 13.6% 27.8 504,315 404,223 80.2% 10,929 1,776 390,397 42,340 |
Challenging market to grow revenues. Opportunistic approach of Ameris Bank includes: • Continued M&A activities – • Anticipate a 20%+ improvement in total revenue from recently closed “Prosperity Bank” merger. (approx $33-$35 million) • Lines of business focused on higher quality assets with better pricing opportunities than CRE. • Mortgage warehouse, municipal, agricultural. • Mortgage business – • Operate in larger metro areas with more active housing markets than national average. • Never focused on refinance. Current production is over 90% purchase. 2013 averaged over 75% purchase. • SBA – new line of business for Ameris. Should be able to produce approximately $5 million of incremental revenue as we shift from retail referrals to dedicated BDOs. 14 Earnings – Continued Growth in Revenue $28.3 $29.3 $34.6 $36.4 $40.7 $40.9 $40.6 $15.0 $25.0 $35.0 $45.0 4Q 10 2Q 11 4Q 11 2Q 12 4Q 12 2Q 13 4Q 13 Recurring Quarterly Revenue (in millions) |
15 (1) Maturity and Repricing Opportunity are amounts and yields maturing in the designated quarter (2) Ameris Bank net interest margin on a fully taxable-equivalent basis, excludes H/C level TRUPs . • 4.63% - Normalized net interest margin in 4Q 13 excluding excess liquidity levels • 4.10% - Incremental net interest margin from newly acquired earning assets at Prosperity Bank • $8.0 million – Additional interest income from “accretion” in 2013. Down from $9.3 million in 2012. FDIC accretion will continue to decline and be replaced to some degree with accretion from other M&A activities. Earnings - Net Interest Margin Net Interest Margin (%) 3.50 4.10 4.70 5.30 Q2 '11 Q4 '11 Q2 '12 Q4 '12 Q2 '13 Q4 '13 Reported NIM 4.21 4.43 3.89 4.15 NIM with no additional accretion |
16 Serious about building strength and diversification in non- interest income sources • Moving away from deposit charges • Researching unique lines of business • Momentum in our numbers coming from mortgage revenue; we believe we can duplicate that strategy with other LOBs by hiring expertise Earnings – Non-Interest Income Mortgage: • >80% purchase business, from larger builders and real estate brokers. • Production is about 25% Government / 75% conventional • Slower pace of hiring than in years past but will continue to look at higher producing teams. 0.82% 0.81% 0.87% 1.28% 1.63% 0.25% 0.75% 1.25% 1.75% 2009 2010 2011 2012 2013 Non-Interest Income to Assets 1,209 1,475 3,001 3,740 4,768 4,464 5,001 5,232 4,431 0 2,000 4,000 6,000 4Q 11 2Q 12 4Q 12 2Q 13 4Q 13 Quarterly Mortgage Revenue |
Proven ability to deploy capital • Excellent relationship with potential merger partners and with regulatory agencies • 11 transactions since October 2009 Actively re-engineering the Company to operate with improved efficiency ratios • Ongoing process looking at systems, products, staffing • Believe we can reach sub 60% in several quarters. • M&A will accelerate our efforts to becoming an efficiency leader. Credit costs are forecasted to drop materially in 2014. • Management’s estimates reflect a $0.25 pickup in EPS in 2014 versus 2013 from lower credit costs. Low P/E relative to most any peer group • ABCB P/E ratio to 2014 Consensus is 12.9x • Southeast peer group P/E ratio of 16.7x Growth potential (loans and revenue) is better than average • Non-covered loan growth of over 11% in 2013. • Not just a CRE lender. Creatively booking diversity in loan products and better yields than CRE. Credit & TARP overhangs becoming a thing of the past • Impact to operating results from credit costs materially reduced. • TARP retirement application submitted – anticipate retiring remainder in Q1 2014. 17 Why Ameris Bank? |