ABCB - Earnings call 4 2023

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Operator

Good day, and welcome to the Ameris Bancorp Fourth Quarter Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Ms. Nicole Stokes, Chief Financial Officer. Please go ahead, ma'am.

Nicole Stokes

thank all and our have Chuck, today. call you, you who to joined Thank

we referencing the will and call, amerisbank.com. the During be highlights of website are section the the that available Relations on Investor our at financial release press

Palmer be today CEO; our Jon at he taking Officer; over by Chief Director of the Jon our retires this Doug for Strange, I'm Managing our quarter. end Credit Credit Proctor, joined Edwards, and who of will when

general we opening to some and for Palmer then of begin will with begin will comments, discussing our I today Q&A. financial open details the results before up

result We we statements. some that factors press are cause and you These Before statements and assume obligation which to of our update that do results by developments forward-looking subject law. as available might required in on to are a new our filings, may forward-looking not materially. in website. We to risks include results or remind list I'll otherwise, statements any actual uncertainties. of release the our any begin, except The information, differ early comments vary SEC could our as

call, to certain in discuss we the the non-GAAP measures company's financial during Also will performance. reference

measures of measures reconciliation our with see can You appendix and in GAAP to I'll it these opening over for comments. financial turn the that, presentation. And our to Palmer

H. Proctor

everyone. increased year above-peer and you gets ourselves into details. XXXX our the healthy I'm and X% some to company, year, strong for margin, very fourth the able sheet of taking year. resilience year prepare capital loan-to-deposit for strategic focused highlights before to of and to We the morning, Throughout close XX%, appreciate improving be was of by our Nicole the to view grew for was time our I and reported then solid a financial and of reserves. the interest over with our XXXX our we for overall of discipline pleased and ratio X%, I'm good with the an growth financial call to on share X.XX% join certainly Thank a today. in controlled the you, some results, strengthening deposits plan. Nicole, XXXX excited yesterday, balance to quarter this net maintaining margin loan while the all we a

once related capital by value also X%, the We any not credit losses, to of our that of over and year-to-date over year. During of million XXX% our well $XXX for expense provisioning goal ratio this and XX% and deterioration. and X.XX% And credit built such stated preserved and to recorded provision coverage to grew we this fourth quarter, improves tangible our that loans provision again, we $XX model-driven ratio million, our over was this up TCE year NPAs. is portfolio bringing book

So as have that we is the based we factors. into move XXXX, several confidence a of on lot

position and continue and fortunately. have margin, starting fight our protect strength the to we First, there, year a from to will of we're

revenue And base. granular a you of a and with very expense culture sheet we well-capitalized ROA. deposit a combine a base, allowance PPNR balance as have, healthy also very control, obviously, when then a above have We sticky know, proven we've that and you also as deposit that generates peer diversified a stream

is throughout too a markets growth gives of the individuals have what least, not lot but us Southeast. lot established just we knowing last and that a And of comfort the top

So appropriate do can so. it's to we accelerate when growth,

things us those the of the of are positive remainder a lot through main lot So that as we a year. outlook of give look this

in to discuss to more over financial our it turn I'll that, with detail. now results But Nicole

Nicole Stokes

Palmer. you, Great. Thank

per common diluted basis, on adjusted to of So or $XX.X X.XX% $X.XX tangible on On adjusted diluted brings or per our quarter adjusted That million that's an of net income return share. share. $X.XX our and equity for the quarter, fourth the assets XX.XX%. $XX.X we're return reporting for million

share. For adjusted an full ROTC we That year, or the or basis, per adjusted full $XXX.X earned year year and full we're million share. $X reporting to diluted $X.XX of diluted $XXX.X income XX.XX%. On our X.XX% brings net million our to ROA adjusted per

the in special our X.XX%. assessment, Excluding was coming at just X% FDIC PPNR over ROA right

at the We with continue $XX.XX. ended value increase $X.XX. from to build a was the We of year. XX.X% year. That's quarter $X.XX increase And the of the book $XX.XX capital tangible the increase beginning or fourth throughout

at quarter Our X.XX% last the quarter equity X.XX% X.XX% of last the year. tangible the common ratio increased of at of at and the compared end end to to end

the quarter. And interest the billion. $XXX.X million income to interest side for things, to increased of income for million $X.X million $XXX revenue On year, increased the $X.X

Our increased X% interest most the aggressive $XX been net over just we've or and interest the in seen year, income history. million of one for that's cycles rate

able the being quarter asset was this $XXX million by X.XX%, catch-up we're by of at Beta Our absorbed about yield. with encouraged billion deposit X positive and off and completely of advances FHLB quarter, We margin this of were stable mix basis about about $XXX CDs. peer and that. was above our remains wholesale that to $X and points quarter brokered and was pay our funding million during

whatever on updated very to positions well information us We sensitivity, Fed the presentation. neutral sensitivity that continue interest whenever very Slide our on decision, XX in close next asset rate the is. which and to be for liability We've

from standpoint a $X.X great step news income expense managing job that declined as mortgage about in decline costs. noninterest a noninterest in the million, the do variable they quarter the their the their decreased due Our with mostly in division income to quarter is good fourth normal profitability But for there seasonality.

job as And we a once did a great company, again this quarter.

the divisions and our expenses the XX.XX% expenses million, $X.X mentioned. I mortgage to primarily Our the year. ratio all XX.XX% those the quarter for almost adjusted adjusted just variable million for That decreased excluding assessment in FDIC as $XX.X brought efficiency

always bumps, noninterest year we quarter with year. -- low first look although we a the still increases opportunities. to can this cyclical expense year We even believe XX% below ratio an continue single-digit XXXX, efficiency for expense And maintain or there's reduction next this

quarter. We Noninterest-bearing guidance. our just and and quarter mid-single year. XXXX represent the the sheet to ended $XX.X grew billion assets million year. we deposit anticipate with last over and quarter $XX $X.X million deposits to during $XXX loan billion billion million $XXX $XX.X growth total Loans do for and to On quarter increased and year balance of our minimal XX% the prior line still total deposits last last Deposits this with a the compared billion decline $XX.X side, year. increase in for digits, represent the of

So how and positioned on XXXX. want reiterating are to by we close a successful I are we well how focused

any Chuck to certainly So with to that, turn and the we questions call back group, everyone's the from I'm going time today. appreciate over for

Operator

[Operator Instructions] KBW. And Gailey the with first question come from will Brady

Brady Gailey

start the level. to that great It at margin. But linked to see a honestly that with X.X%. There's your think mean flat a peers some you how interest I wanted quarter rates. was net neutral you're basis. to -- And of great are is I on X.X% about do

NIM we think you So how look what do the to could as XXXX? do about

Nicole Stokes

those the were mix. quarter was we guided margin the that last question, kind guidance great hasn't coming margin The really funding. due I'll that It's deposit X quarter, for changed. really Yes, tell we pleased really to that I wholesale but -- expect Brady. of same punt that still of single-digit off fourth that's that quarter able very We that with my And to quarter. stableness that those and you just paying a stable because had because in funds mix, compression of to were that public in

some ourselves time. we say anything still So this would X able quarter be of kind to for a We say that still We that buy compression just X X.X% we victory. were X it of punt above to through see cycle quarters.

to neutral, as very have do very, certainly XX. greater are on coming If betas down, can do on answer help be the rates the down that you in question? helps we faster way Slide liability believe that us. close potentially we We on if that asset, year later be Fed would that see way in would to will which We cuts deposit the able that the sensitive reduce

Brady Gailey

look have goal X% And your the of tangible equity. then Yes. I you at helpful. That's capital base, common when

north now. profitability your soon X.X% with at pretty be XX%. And of you'll You're

a So you excess? do what bit of increase for I back other in the mean, little with with stock the XQ. that do Do you bought ways grow you you company? that you do excess capital? look What do to Do dividend?

H. Proctor

shoots just optionality soon thing we capital. in Brady, until is I think prudent I to preserve tell creates be clarity, in you this But of a exactly you comfortable this we point as we we most for cycle, growth, or accelerate us. mentioned on will certainly feel that for point, your get during the what I think to some a use accordingly. more to able lot to continue where there, which as lot Well, that to But green would are economic we that us time, any see is

Brady Gailey

screen you Okay. heavy Maybe the is portfolio? and real for thinking and on finally guys update just office a about And little are then me, estate commercial specifically how Ameris office. in an in CRE

Jon Edwards

less our but good. got small small the from well. made in up exactly the really Brady, and hear -- it loans X% we loans than X But -- are not pretty has that or haven't office it. lot, really while. I it's list held better mean, quarter, sectors, watch sector you been I during use And -- we we Class I of right? A of the I mean where looking look what a at we're office the keep performance very But the really a those at to haven't were been for know there -- you've been essential to on looking don't But in and have the want that. think in X

of turnover things dealing of You nature. and risk got keep with to kind that

top there and past on the of look dues really like, there. So we've look the portfolio, for in well. And XX what get rest the Slide a it good they're the we to of not NPAs and stay you rest got the at pretty of portfolio

very book So overall, is X the CRE time. basis in this -- think points. that were for NPAs good our I that's very, still And

Brady Gailey

hear. to the retirement. good great Great working luck That's Okay. you with over Jon, years. in And

Jon Edwards

you, Thank Brady.

Operator

with Piper Casey will come Sandler. question Whitman next from The

Casey Whitman

how some just maybe are XXXX. that thinking puts should us and bank through here in maybe as growth the level think the we there? walk you at expenses Can the about just expect about of rate we Nicole, you takes

Nicole Stokes

Sure.

that So look kind the take being and variable. -- expense at out when of of FDIC. when we take adjusted maybe of cyclicality I'm I I to because -- at mortgage look noninterest out X and And our looking at the kind X think of so about mortgage much of

So take segment. out mortgage the

at look categories less of you salary got the to If X% little other more some everything general more everything little benefits, else, blend IT and X%, probably risk in you a else. and bit a X% and X% bit that to a in

put you rate. together, maybe that a X% when end So up blended you with

I I potential And excess X.X% now, has mortgage. think is some the the growth. X% in think mortgage that build with group. in X.X% down, and growth you about that some in of right rates built coming in consensus mortgage between some When

where kind I So I an at looking standpoint. but is pretty to expense has that's growth that right, I'm mean, now us I from consensus about where I right think consensus think think it -- where of close

Casey Whitman

we the question, which you just around guess, largely Got turn to mid-single-digits guys. I think Okay. would to there? kind Helpful. bigger-picture for But or is what you of need what your with assume engine, I that growth that's really dependent change we happen you just it. the good just I appreciate up need need growth still general will to mean, do -- what be comments that, And on I before But need Palmer would to going I the loan economy. do see guess, to outlook,

H. Proctor

if They in are see terms as things is opportunities footprint a opportunities. will of the improve there. exist. out still and our in things And terms improve the we're we And target we morning, and I it consumer on ready, to you, start there. that improve there there start to the the not which beauty feel and optimism would in But markets. I -- obviously, and those the of the us has if around of came Well, that's already We're lot you And our it scrambling on data capital outlook of and to demand when our is in have try to certainly going too. tell seeing helped was ratios. pullback looked CRE terms of right front, this find be the obviously and the tell estimates.

that's not a demand fortunate in we're by on have a we're to and able been in, this put that. we the to of governor So say lack self-induced, markets be

care is So mean, they -- new in continue a my tell little have, would I and I to good industry do, for continue our the which obviously, front. in continue more remain right now, new But we any relationship take of of discerning time in to probably you, certainly opinion, opportunities customers. existing we to business we selective selective people any more a will and we'll entertain. very be the for new And to

and overall, start in we the kind economy stay are. where of in until metrics improving we we'll So seeing CRE other

Operator

Janney. with Marinac Christopher from come will question next The

Christopher Marinac

I came do adjusting the how you're either that just And Jon Doug bringing outlook years Palmer, expect credit this that then from for since in in guess And type look also it's are been a I terms back company. year? what should on of with from to the charge-off we want the you X division? Balboa or

H. Proctor

Yes. chime operators. on a terms can these the Jon cyclical in it's line been touch on of line tell us. business and for of Obviously, charge-offs. great you that the has strategy on would specifics I and a business business economy, in business then of are small I'll there the the

really that talked business us kind when industry to others of has is And for we're point. So as specifically, more feel the stress, the it. been hot small trucking many going certainly under and we've about

thing trucking not box, exist. So have the the pulled think understand credit on there the to is industry back and that. And important we appetite for the there that related I obviously, does to anything

terms line said now, of have a to So of what are, is economy lot troubled of see. The we of than diversification. the part feeling the are kept additional would we've excellent overall of being obviously being system. improvement -- have some it them. that any it And it But percentage become the market And a and they're we are business losses still continue the And I the them small the I will in of from glad our is improves, economy. to potential able balance charge-offs deliver. loans, terms would those work as some like but adds it's loans it in the are, our where sheet. we'll of that start you got cap it's much would not are. But And of reserve of we through business sheet, as to like XX%. I the think higher which other stress now tell think inception, businesses done an a for we job until as remains can seeing there, right right you small in pretty balance from we've all

of in terms the to you of talk the And the So can like. charge-offs, if of you net kind Jon, kind that's overall. specifics

Jon Edwards

of a I million. overviewing Chris, as XXXX everything. a just job that with only The the in were and great agree,XXX% charge-offs remember, $X charge-offs Palmer context, did

we as clearly, about did what trucking, that and there we 'XX. in and to in tightened box We took really that's necessary. was we so what really we tighten a market more, said we dealt the tweak credit and a need And little just continuing we're we as share with getting we're sure make what 'XX, want. it But little in the saw to that he

you we're to level that, make -- know through that we'll in coming to anticipate the believe us that things same to of end, it I certainly. year the is lines I would of terms snake don't want as his And and call and egg -- this it's nature have good charge-offs seeing of dues if trend point, that past don't last, the

Christopher Marinac

exceptions? slowed then That's Or helpful. have Nicole. so? And deposit rate Great. those the seeing quick very a Are just last quarter for in any one down or you

Nicole Stokes

definitely from pressure and heavy starts good. very exception We which is seen rate seen we to slow, we that started seen Florida have deposit some to in also where specifically have had slowing, some competitive see slow, unions, credit we pressure have

Operator

The Feaster James. with next Raymond question will David from come

David Feaster

industry to they up maybe more think than bit follow and the curious if get mean prospects lower think on how expect your of in given ability you deposit ability to to just rate curious I'm side. kind this on like would we be I way we cuts deposits about competitive than cuts, do the and I'm cuts you I'd slower that, challenging a given Or of -- how that if are deposits Fed question you about down way on get betas reprice reprice challenges the this your year? were do all this up. liquidity landscape to the year? just

Nicole Stokes

Yes.

So going way are XXXX. down. tactical And then all XX% got by CDs perspective, then from got the on mature very minimal of CDs, short in of we we've short think to And our that mature advances. are that our And deposit betas retail we've FHLB a June. they then FHLB be faster very and and brokered

quickly. we'll where on market have able those. that be just deposit add money And will in to movement feel they So like then the we definitely interest-bearing some you side, positive reprice the reprice we fairly

we could help certainly XX% well. like and feel as So aggressive, we then that be will the noninterest-bearing

David Feaster

about even the how curious, again high seeing? you helpful. would maybe I'm level, at -- with maybe and curious in you're down That's the think And on do point on I with that come how And a touching to mortgage about, this come a, more margin sale mean, activity, year? rates of I'm mortgage start you again, for staying trends expectations coming much on you think Okay. And improving? gain cuts. potential cuts. could volumes some any how have to started mortgage down bit, rate

H. Proctor

Yes.

potential we'll for to in revenue times all how efficiencies with to improvement a positioned. we've I this, in because side. we the environments what operation well not garnering costs like on that think cuts look of with flip we able that done what tailwinds. cuts, or in last time, true seem just tendency mentioned But on margin. the see and you, would been the a headwinds as terms the But many we're Fed be keeping so we've of big this obviously, have Fed would tell certainly and focus I do and decline, in tailwind . And line our is at

So opportunity when we the and and are the extremely is there the refis activity there. the well picks back when positioned purchase up,

tell we and importantly, our getting just terms if many be that would cuts that how organization, we and And future. out a and I everyone So in how you thinks already are, look end could performed as our rate lift can as in our operations. also up positioned we we're tremendous knowing perform for we as bankers more past the how the in of we

real predicated lot be be you spot. that touched of that the by that, consumer going a the to could on, is behavior. big the a as So driver, we of bright Because Fed does. as But -- what that's know

David Feaster

I'm seen betas on just betas about are cut That or think just year and about you how And curious core the And lot -- from you you it Yes. more where deposit drive we to front. And your can have going of talked -- like managing a quickly from deposit support job deposits. folks initiatives seems how that that? makes we you the last how maybe to on some in be deposit maybe in seasonality we've guys cut way coming some ability great -- how some about deposit to we can think you this maybe on a sense. growth done going -- I'm the about curious me. growth place put forward? down. think one Curious

H. Proctor

good you which something at would look liquidity if that bullish you we deposits over your importantly, this difficult the of deposit a deposits very very of grow done was we're a in year, if on environment doing, momentum job pandemic tell an last can we've the that's more net like created probably been we've even sense year, that in you months and I very in and the maintain the retained mix during deposits. XX Yes. the which that

there transactions. investments well, at long of a that us bring this lot part load bankers But that the throughout a always relationships, of year, that in that's you that an and pulled those did came have and to we focused lot lot year served out thank we've And from as invest what from we do. intentionally our of And if what on goodness has organic I to because saying is, a in there continue we think standpoint on more of value any back. we and not made been expense was and volume and look entire growth -- kept didn't the But did to we've relationships volume the up more we treasury.

So tremendous work from C&I our lot platform and the of treasury comes we from lot hard a have. had initiatives offers year, of also treasury has a and of our the a that

will I year. that be is So the lot that the helped momentum there quarter, needle and a fourth move same throughout really of think in momentum what

a deliver. continue are now delivering got of to initiatives there we've So lot that and place in we'll

a to keep optimistic So I little probably than ability most terms growing our funding. of core feel in more

David Feaster

would you I maybe that expect mean, maybe so loan would you kind you to Or deposits outpace the and balance think balance of remixing again, sheet sheet mix? improve keep how just, kind growth? core of Curious about and funding growth? prospects the to overall stable growth of expect

H. Proctor

all be not but know be loans that's reality. Yes. In funded with a world, funding, we will core perfect would the obviously,

for of loan as that balance loan desire muted terms is and there's then obviously growth. I'd our -- a tell now, Right earlier. talked So growth there we you in about desire

see just probably loan percentage funding of you growth. then relative But to you'll other see feel think more do so, beyond probably core I see we to funding. loan or would utilizing to standpoint, it's -- funding once you're or appropriate accelerating a start of a funding probably a wholesale more growth going core So from types

Operator

the sir. question-and-answer closing any I turn Mr. conference back would Proctor like remarks. concludes go to Please for This Palmer the session. to over ahead,

H. Proctor

our just quarter earnings year I'd a And like thank to again Credit full and Yes. and once Jon fourth Edwards, XXXX also results. Chief This him special to to and listening I'd everyone call. you for like like be last give service to friendship But Ameris for for to recognition his will to his our Officer. thank earnings I'd over XX years. thank

We and but to just thank again going away miss are phone we him, But he their a Bank. interest assures call want that need everybody he's for if Have great Ameris a certainly time I ever in him. their day. once me to

Operator

has you attending today's for presentation. concluded. The Thank now conference

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Ameris Bancorp (ABCB) 26 Jan 242023 Q4 Earnings call transcript