![]() Investor Presentation 2 nd Quarter 2014 Exhibit 99.1 |
![]() 2 Cautionary Statements 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 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. |
![]() 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 mergers with Coastal Bankshares, Prosperity Banking Company and 10 FDIC-assisted transactions • Four state footprint with 74 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 |
![]() Manage Stronger ROA’s (over 1.15%) and ROTCE (over 15%) to support M&A activities • Currently earnings 15%+ ROTCE. • Sustain double digit loan and deposit growth. • Manage Mortgage and SBA lines of business for meaningful addition to ROA and ROTCE. • Continue to drive efficiency to our 60% target. Capitalize on significant M&A opportunities in Georgia, Florida and South Carolina • Capitalize on local relationships that have been developed over the past several years for negotiated (vs. auctioned) deals • 20% + IRR’s, shorter TBV earn-back and double digit EPS accretion • Pricing advantages expanding for ABCB given our desired footprint & potential cost saves. Successfully execute “Coastal” conversion in August • Retain top customers and employees with “critical care” style attention • Convert strong loan, deposit and mortgage pipelines into balance sheet and revenue growth 5 Current Focus |
![]() 6 2 nd Quarter Update – Financial Condition dollars in millions, except per share data Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 BALANCE SHEET Total Assets $2,809 $2,818 $3,668 $3,487 $3,973 S/T assets & investments $418 $394 $708 $515 $591 Loans - noncovered $1,618 $1,659 $2,134 $2,184 $2,472 Loans - covered $444 $418 $390 $373 $331 Reserve for loan losses 24 24 22 23 22 Indemnification asset 106 82 65 53 49 NIB checking deposits 475 476 669 699 791 Interest bearing deposits 1,968 1,968 2,331 2,312 2,598 Tang Common Equity / Assets 9.15 % 9.22 % 6.83 % 7.53 % 7.04 Tangible Book Value $10.74 $10.85 $9.87 $10.31 $10.26 |
![]() 7 2 nd Quarter 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 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Net Income $6,678 $6,677 $1,378 $8,350 $8,130 Net interest income $29,476 $29,320 $29,051 $34,484 $35,264 Provision for loan losses $4,165 $2,920 $1,478 $1,726 $1,365 Non-interest income $11,385 $12,288 $11,517 $12,754 $15,819 Mortgage revenues 5,001 5,232 4,431 5,068 6,944 Service charges on deposits 4,695 4,948 5,065 5,586 5,847 Non-interest expense $26,688 $28,316 $33,274 $33,329 $37,318 Salaries & Benefits 13,381 14,412 15,071 17,394 16,942 Occupancy & DP costs 5,814 6,221 6,289 7,518 8,011 OREO and problem loan expense 2,349 2,971 5,322 2,190 2,840 Diluted earnings per share 0.26 0.26 0.18 0.32 0.32 Return on Avg Assets 0.95% 0.94% 0.67% 0.96% 0.93% Return on Avg TCE 10.77% 10.18% 7.55% 13.30% 11.15% Net interest margin (TE) 4.96 % 4.80 4.43 4.57 4.65 Efficiency ratio (operating B ) 59.57% 60.91% 68.90% 65.73% 61.82% Net Overhead (operating B ) 1.84% 1.85% 1.79% 2.01% 1.81% |
![]() 8 2 nd Quarter Update – Credit Quality dollars in millions, except per share data Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 CREDIT QUALITY (1) Non-performing assets (legacy) 71,696 69,698 62,554 60,568 57,484 Non-performing assets (purchased) - - 10,935 19,182 32,368 NPAs / Assets (legacy) 2.55 % 2.47 % 1.71 % 1.74 % 1.45 % Classified Assets / Capital 28.7 28.6 32.7 33.9 34.00 Reserves / Loans 1.56 1.50 1.38 1.34 1.26 Reserves / NPLs 76.13 75.20 76.63 85.09 100.65 Net Charge-offs 2,860 2,812 2,677 1,134 1,487 as a % of average loans 0.74 % 0.70 % 0.66 % 0.27 % 0.34 % |
![]() • Diversified loan portfolio across five regions – Inland Georgia – 36% – Coastal Georgia – 20% – Alabama – 5% • In-house lending limit of $15.0 million versus $86 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 10.7% of total loans, with avg. DSC of 2.48% and LTV of approximately 65.8% 9 – South Carolina – 12% – Florida – 27% Loan Portfolio Detail |
![]() • Leveraging presence in new markets (top five markets account for 72% 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. |
![]() 11 • $34.2 million - Largest Relationship has over 3.0x debt coverage, backed by taxing authority of one of our local governmental entities. • 2.48x – Weighted average debt coverage of our 25 largest relationships. • 65.8% - Weighted average loan to value on our 25 largest relationships. Note> As of June 30, 2014 Loan Portfolio Diversified through smaller relationships as well Portfolio comprised of smaller relationships Relationship Totals in Legacy Portfolio (in millions) Rank Total O/S % of total Top 10 $ 140.9 5.9% Top 50 $ 396.7 16.6% Top 100 $ 587.0 24.6% Top 200 $ 835.2 35.0% Top 300 $ 1,010.9 42.4% |
![]() 12 • 26.3% - 5 Year compounded growth rate in our book of non-interest bearing demand A . • $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 A . Significant Value in Deposit Portfolio Growth in non-rate sensitive deposits A – as of June 30, 2014 Deposit Composition – 6/30/14 |
![]() 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 6/30/2014. 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 33 0.1% 2.9 33,275 31,883 95.3% 0 0 8,973 36 USB 21,640 434 2.0% 3.9 29,755 42,831 142.9% 487 0 13,225 384 SCB 22,400 974 4.3% 9.9 30,800 31,365 101.6% 1,785 10 29,591 728 FBJ 11,307 1,936 17.1% 15.9 15,547 10,314 71.3% 451 121 20,568 1,830 TBC 22,807 2,070 9.1% 16.9 31,360 28,613 92.0% 345 73 26,510 1,462 DBT 112,404 5,723 5.1% 16.9 176,635 131,811 78.6% 619 201 72,926 4,993 HTB 49,485 5,048 10.2% 23.8 68,042 52,804 79.2% 3,332 692 52,732 3,967 OGB 45,488 4,925 10.8% 23.8 62,546 33,942 55.6% 3,621 65 44,564 2,529 CBG 52,664 7,630 14.5% 30.9 72,413 40,027 59.8% 4,621 643 62,161 6,404 362,395 28,773 7.9% 22.4 572,409 403,590 77.6% 15,261 1,805 331,250 22,333 |
![]() 14 Earnings 19% Compounded Growth in Revenue (5 years) • Continued M&A activities – • Achieved a 20%+ improvement in total revenue run rate from recently closed “Prosperity Bank” merger. (approx $33- $35 million per year) • 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. • SBA – new line of business for Ameris. Quarterly run rate is approximately $6mm per year in additional revenue. Proven ability to grow revenue profitably with a compounded growth rate of over 19% for the last 5 years. Challenging market to grow revenues. Opportunistic approach of Ameris Bank includes: |
![]() 15 • 4.65% - Improving Net Interest Margin for two quarters from 4.43% reported in Q4 2013. • 4.31% - Net Interest Margin without any accretion. • $2.5 million – Additional interest income from “accretion” in 2Q 2014. Down from $2.7 million in Q1 2014. Remaining accretable yield supports these levels for approximately 10 quarters but DOES NOT include any accretable yield from Coastal acquisition due to its recent close. Earnings - Net Interest Margin Net Interest Margin (%) |
![]() 16 Serious about building strength and diversification in non- interest income sources • Moving away from deposit charges • 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 • Reached maturity from a revenue and net income standpoint • Limited effort to build a larger platform, although we continue looking for strong producers • >80% purchase business, from larger builders and real estate brokers. • Operates on a recurring gross margin of approximately 25% (pretax to total revenue) Mortgage: |
![]() Disciplined Acquirer with Significant Capacity • Two negotiated deals within 12 months with 20%+ IRRs • Short TBV earnback periods, meaningful EPS accretion on recent deals. • Reputation with targets and with regulatory agencies are providing increasing deal flow Low P/E multiples relative to our Peer Group provide meaningful upside Proven Ability to Grow our Company Profitably • Compounded growth in recurring revenue of almost 20% over last 5 years • Non-covered, non-purchased loan growth of over 18% (annualized) in 1H2014 No Need for Additional Capital • TARP and Credit overhangs are gone. No capital raise, no shareholder dilution. • Analysts estimates forecast TBV pickup of $2.56 (EOY 2015, net of dividends) and 125bps of additional TCE/TA • Year end 2014 TCE/TA forecast to be approximately 7.50% 17 Why Ameris Bank? ABCB Proxy Peer Group P/E 2015E P/E 2015E "Upside" 10.44 14.13 35.3% |
![]() 18 Analyst Coverage Firm Analyst Rating Price Target 2015 Estimate Keefe, Bruyette & Woods Brady Gailey, CFA "Outperform" $28.00 $2.04 404-231-6546 Sterne Agee & Leach Peyton N. Green "Buy" $29.00 $2.05 615-760-1464 FIG Partners LLC Chris Marinac "Outperform" $28.00 $2.00 404-601-7210 Sandler O'Neill & Partners, L.P. Casey C. Orr “Buy" $25.00 $2.00 212-466-8061 SunTrust Robinson Humphrey Jennifer H. Demba, CFA "Neutral" $24.00 $2.00 404-926-5476 |