 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 |