 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? |