Ameris Bancorp - FORM 8-K - EX-99.1

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8-K - FORM 8-K - Ameris Bancorp	d357121d8k.htm

First Quarter 2012

Investor Presentation

Exhibit 99.1

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 the American Banking

Company

•

Historically grown through acquisitions of smaller

banks in areas close to existing operations

•

Recent growth through de novo expansion

strategy and 9 FDIC-assisted transactions

•

Four state footprint with 67 offices

•

Approximately 830 FTEs managing 200,000 core

customer accounts

•

Assets –

$3.0 billion

Loans –

$2.0 billion

Deposits –

$2.7 billion

Experienced Management Team

NAME / POSITION

EXPERIENCE

(Banking / Ameris)

EXPERIENCE

Edwin W. Hortman Jr.

Chief Executive Officer

31/13

Colony Bankcorp, Inc.

Andrew B. Cheney

EVP & Chief Operating Officer

35/2

Barnett Bank, Mercantile Bank

Dennis J. Zember Jr.

EVP & Chief Financial Officer

18/6

Flag Financial Corporation

Jon S. Edwards

EVP & Chief Credit Officer

27/12

NationsBank, Federal Reserve

Stephen A. Melton

EVP, Chief Risk Officer

31/1

Columbus Bank & Trust (lead bank SNV)

Cindi H. Lewis

EVP, Chief Administrative Officer

35/35

Officer at Ameris Bank since 1987

T. Stan Limerick

EVP, Chief Information Officer

7/1

Whitney National Bank

Management and Board Ownership of Approximately 7%

Current Focus

Position Ameris Bank as a Consolidator in our 4 Southeastern States

of potential deals. Interest in both Strategic (builds market share) and Financial (builds excess

TCE and T1 capital)

-Traditional

M&A

–

Rapidly growing pipeline of opportunities in our footprint on larger, thinly

capitalized institutions

Accelerate

transition

out

this

cycle

above

average

ROA

and

ROE

-Build momentum on growing earning assets and additional revenue opportunities

-Build unique non-interest lines of businesses to drive non-interest income over 1.00% of total

assets by 2013

-Gain operating leverage from continued consolidation. Significantly reduce non-provision credit

related costs such that strong PTPP earnings drive higher EPS

Continue Improving Credit Quality

-Continue to manage strategies that restore historic quality to our Balance Sheet

-Reduce credit-related operating expenses incrementally throughout 2012.

FDIC Assisted acquisitions – Slowing pipeline of opportunities but our markets still have majority

•

Diversified loan portfolio across five regions

–

Inland Georgia –

51%

–

Coastal Georgia –

16%

–

Alabama –

•

In-house lending limit of $7.5 million versus $75 million legal limit

–

5 loans greater than $5 million

•

Loan participations less than 1.00% of total loans

•

Low average loan size ($81k)

•

Aggressive management of concentrations of credit

•

Top 25 relationships

are only 10.9% of total loans

Loan Portfolio Detail

Loan

Portfolio

Detail

–

3/31/12

–

South Carolina –

12%

–

Florida –

13%

Loan Type

Average Loan

Size

Average Rate

Commercial R/E

$ 339,377

5.53 %

C&D

107,866

5.43

Residential

69,967

5.93

C&I

54,612

5.35

Consumer

6,969

6.69

Agriculture

101,177

5.93

Total

$ 80,789

5.68 %

C&D and CRE Detail

(in millions)

C&D Portfolio

CRE Portfolio (Non Owner-Occupied)

50% of our CRE portfolio

is owner-occupied

Average CRE loan is $339k

Data as of 3/31/12; excludes covered loans

C&D ONLY 6% OF LOAN PORTFOLIO

Reduced exposure by $272mm or 69%

since peak

Average LTV is 66%

38% of all 2011 and 2010 NCO’s

Credit Quality

Breakdown of OREO by Type

•

Values are appropriate for sale to end users.

•

2012

Disposal

activity

–

aggressive

posture resulted in a $31.2 million reduction in

classified assets at 63%, net of reserves.

Trends in NPA’s

OREO

•

NPLs down 43% from their peak levels over

2 years ago.

•

In-migration of new non-accrual loans

reduced significantly from past levels.

Credit Cycle

•

Only $32.8 million of accruing substandard

loans at September 2011. Down 55% from

the peak in June 2009.

•

Non-Accrual loans held at 41.3% of original

appraisal (51.7% of original loan amount, net

of related reserves).

(1) Cumulative losses defined as provision for loan losses plus (gains)/losses on the sale of OREO

(2) Net Book balance of classified loans and non-accruing loans is net of specific LLRs

In-Migration of New Problem Loans

(1)

Conservative

Carrying

Values

Classified

Assets

(2)

•

45%

Decline

–

In-migration

new

non-

accrual loans down significantly in 2011 over

2010.

•

quarter 2011 increase in in-migration was

concentrated in several larger relationships.

All have resolution strategies implemented.

•

Management anticipates lower in-migration

for 2012 over 2011 levels, although not

visually linear.

$49.8

$102.1

$30.5

$43.5

$90

$180

Classified -

Accruing 62.7%

Non-Accruing 41.3%

Original Appraisal

Current Book Balance

First Quarter Update

(1)

Excludes covered assets, where applicable

dollars in millions, except per share data

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

BALANCE SHEET

Assets

$2,918

$2,857

$3,010

$2,994

$3,043

Loans, net

1,837

1,812

1,929

1,868

1,949

Tang Common Equity / Assets

7.51

7.78

7.96

7.95

Tangible Book Value

$9.20

$9.34

$10.08

$10.06

$10.15

PERFORMANCE

Pre-tax, pre-credit earnings

$12,593

$13,491

$15,433

$15,030

$13,634

Diluted earnings per share

0.02

0.06

0.66

0.01

0.19

Net interest margin (TE)

4.04

4.21

4.44 %

5.21 %

4.48

Efficiency ratio

69.59

65.08

47.75

72.76

62.28

CREDIT QUALITY

(1)

NPAs / Assets

4.48

4.27

3.77

4.05

3.03

NCOs / Avg loans

1.88

2.50

1.98

2.48

5.79

Reserves / Loans

2.63

2.54

2.57

2.64

2.17

Reserves / NPLs

51.82

57.02

59.66

49.64

54.90

Revenue Growth

•

2011 revenue gains boosted by improved net interest margins from

deployment of short-term assets

•

2012-2015 strategy demands:

•

Diversification of revenue with more emphasis on highly profitable

non-interest income LOB’s that enhance ROA and reduce burden on

capital leverage

•

Protect our advantage from strong net interest margins with emphasis on

creating a highly favorable funding mix.

Revenue growth through this cycle with

opportunistic strategies:

•

27.4% -

CGR for mortgage related revenue

•

23.6% -

CGR for debit interchange fees

•

7.8% -

CGR for analysis and overdraft fees

•

2011 revenue gains boosted by improved net interest margins from

deployment of short-term assets

•

2012-2015 strategy demands:

•

Diversification of revenue with more emphasis on highly profitable

non-interest income LOB’s that enhance ROA and reduce burden on

capital leverage

•

Protect our advantage from strong net interest margins with emphasis on

creating a highly favorable funding mix.

15.0% compounded annual growth rate in total

revenue over the last three years

Revenue has grown twice as fast as earning assets

Significant amount of assets that will be deployed

over the next 3 years that will significantly boost

revenue and earnings.

Local Deposit Customers

Drive Profitability & Long Term Franchise Value

•

40.7%

Growth rate in Non-interest Bearing Demand during last 12 months

•

63.2%

Percentage of deposits in retail oriented transaction style accounts

•

98.0%

Percentage

Bank’s

total

funding

through

deposits

that

“walks

through

our

front

doors”

(1Q

‘12)

Deposit Composition –

3/31/12

“Zero”

cost deposits –

3/30/12

“Zero”

cost deposits include non-interest bearing checking, NOW accounts and Savings accounts that cost less than 0.25%

and are deemed to have very little sensitivity to changing interest rates..

Strong Core Operating Performance

(1)

Credit expenses include provision, OREO losses, problem loan expense and interest reversals on non-accrual loans

(2)

Ameris Bank net interest margin on a fully taxable-equivalent basis, excludes H/C level TRUPs

•

14.0%

Annualized

Return

Tangible

Equity

–

Adjusting

PTPP

amounts

above

for

foregone

compensation,

normalized FDIC insurance and remaining consolidation efficiencies.

•

17.8%

Net

reduction

normalized

operating

expenses

(normalizes

non-provision

credit

costs

“excess”

FDIC

insurance

totals

$24.7 million (annualized) compared to foregone compensation of $6.6 million (annualized))

Pre-Tax, Pre-Credit Earnings

(1)

($000s)

Net Interest Margin

(2)

(%)

Earnings Power

•

28.3%

Average

Growth

rate

PTPP

years)

–

Strong results, driven by cost containment and contribution from

eight acquisitions during the eight quarters covered. Both strategies are still effective and management believes will continue to

provide growth opportunity.

FDIC-Assisted Acquisitions

•

Line of business -

experienced teams managing workout of assets, fair value

accounting and data conversions

•

Self-capitalizing -

acquisition gain plus subsequent earnings have capitalized

approximately 5.50% of acquired assets

•

Serious about Cost Savings

–

10 of the 25 offices acquired have been closed or

are scheduled to close before EOY 2012

Bank

Acquisition

Date

Assets, FV

Deposits, FV

Discount Bid

Deposit

Premium

Pretax Gain/

(Goodwill)

American United Bank

Oct-09

120,994

100,470

(19,645)

262

12,445

United Security Bank

Nov-09

169,172

141,094

(32,615)

228

26,121

Satilla Community Bank

May-10

84,342

75,530

(14,395)

8,208

First Bank of Jacksonville

Oct-10

77,705

71,869

(4,810)

2,382

Tifton Banking Company

Nov-10

132,036

132,939

(3,973)

(955)

Darby Bank & Trust

Nov-10

598,204

386,958

(45,002)

4,211

One Georgia Bank

Jul-11

184,344

160,711

(22,500)

7,945

High Trust Bank

Jul-11

183,880

170,967

(33,500)

18,922

Central Bank Georgia

Feb-12

261,289

261,036

(33,900)

20,037

1,811,966

1,501,574

(210,340)

582

99,316

Significant Capital Strength

(1)

Tangible book value per share adjusted for stock dividends

Stable Tangible Book Value per Share

Significant Capital left to Leverage

•

9.51% -

Proforma Tier 1 capital assuming TARP

repayment

•

7.95% Proforma TCE / TA assuming TARP

repayment

•

Additional growth of $1.11 billion possible

(leverages T1 Leverage to 8.00%) with no

additional earnings or capital raise

•

8.7% increase in TBV over the past year

•

Successfully earned our way through the

economic cycle with strong core earnings from

our “core/relationship”

oriented balance sheet

Potential Consolidation Opportunities

(data for banks in our four state footprint)

“Loss-Share”

M&A

Opportunities

(2)

(1)

Banks in Ga, Fl, Al and SC with Texas Ratio over 50% but below 100%. Total assets under $2 billion. Excludes banks with covered assets

(2)

Banks in Ga, Fl, Al and SC with Texas Ratio over 100%. Total assets under $2 billion. Excludes banks with covered assets

Traditional

M&A

Opportunities

(1)

“Traditional”

M&A

•

20% of all banks under $2 billion in our four states have Tx

ratio between 50% and 100%

•

Some

improvement

number

“problem”

banks,

but

almost

always

from

deleveraging

vs.

new

capital

earnings

growth

•Credit marks in purchase transaction are very punitive given

levels of classified assets and limit acquirers ability to maintain

TBV levels in recapitalization

•

These banks are receiving significant pressure from regulatory

agencies to strategically develop sources of capital and a rapid

path to profitability.

•

Similar

average

assets

“loss

share”

M&A

opportunities

“Loss-Share”

M&A

•

20% of all banks under $2 billion in our four states have Tx

ratio over 100%

•

Majority remaining are smaller banks where consolidation

opportunities would favor Ameris Bank

•

Average assets of approximately $250 million

•

Intense regulatory pressure to “make something happen”

capital levels and problem assets

•

Average Tier 1 leverage (incl h/c debt) of approximately 5.00%

First Quarter 2012

Investor Presentation

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