EX-99.2 3 abcb-ex99_2.htm EX-99.2

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3rd Quarter 2023 Results Investor Presentation Exhibit 99.2

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Cautionary Statements This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this presentation are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company’s subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.  

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Ameris Profile Investment Rationale Top of peer financial results with culture of discipline – credit, liquidity, expense control, capital Proven liquidity management supported by strong, stable deposit base Proven stewards of shareholder value – TBV has grown 13% annualized over past five years Experienced executive team with skills and leadership to continue to grow organically Diversified loan portfolio among geographies and product lines Diversified revenue streams with strong core bank and lines of business Strong Southeastern Markets Atlanta’s premier independent banking franchise Scarcity value in many of the fastest growing regions in nation Stable core deposit base Over 65% of our franchise are in MSAs which grew at least 2x the national average over the last 15 years Charlotte MSA Tampa MSA Orlando MSA

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Ameris Profile Focus on Shareholder Value 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix

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3rd Quarter 2023 Financial Results

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3Q 2023 Operating Highlights Net income of $80.1 million, or $1.16 per diluted share PPNR ROA(1) of 2.01% for 3Q23 Adjusted efficiency ratio(1) of 52.02% TCE ratio(1) of 9.11% Nonperforming assets, excluding government-guaranteed loans, as a percentage of total assets improved three basis points to 0.27% Increase in allowance for credit losses to 1.44% of total loans due to economic model, particularly forecasted future declines in commercial real estate pricing Net interest margin of 3.54% reflecting favorable deposit mix with noninterest bearing deposits representing 32.0% of total deposits at September 30, 2023 Interest bearing deposit costs increased 33 basis points in 3Q23, compared with an 82 basis point increase in 2Q23 Total deposit growth of $147.2 million, or 2.9% annualized Reduction in FHLB advances of $325.0 million, or 26.6%, during the quarter 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix

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2023 YTD Operating Highlights Net income of $203.2 million, or $2.94 per diluted share PPNR ROA(1) of 2.03% Growth in tangible book value(1) of $2.46 per share, or 11.0% annualized, to $32.38 Adjusted efficiency ratio(1) of 52.49% Net interest margin of 3.63% Organic loan growth of $345.8 million, or 2.3% annualized Total deposit growth of $1.13 billion, or 7.7% annualized Reduction in FHLB Advances of $600.1 million Increase in allowance for credit losses to 1.44% of total loans at September 30, 2023, compared with 1.04% at December 31, 2022, due to economic forecast, particularly commercial real estate price levels Redemption of $75 million in floating rate (was 8.39%) subordinated notes due 2027 and repurchase (at a discount) and redemption of $11.0 million aggregate principal of 4.25% fixed-to-floating subordinated notes due 2029 YTD 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix

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Financial Highlights 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods 3 – Excludes serviced GNMA-guaranteed mortgage loans (dollars in thousands, except per share data) Quarter to Date Results Year to Date Results 3Q23 2Q23 Change   3Q22 Change 2023 2022 Change Net Interest Income $ 207,751 $ 209,540 -1% $ 212,981 -2% $ 628,943 $ 576,889 9% Noninterest Income $ 63,181 $ 67,349 -6% $ 65,324 -3% $ 186,580 $ 236,076 -21% Provision for Credit Losses $ 24,459 $ 45,516 -46% $ 17,652 39% $ 119,704 $ 38,807 208% Noninterest Expense $ 141,446 $ 148,403 -5% $ 139,578 1% $ 429,270 $ 425,594 1% Net Income $ 80,115 $ 62,635 28% $ 92,555 -13% $ 203,171 $ 264,319 -23% Net Income Per Diluted Share $ 1.16 $ 0.91 27% $ 1.34 -13% $ 2.94 $ 3.81 -23% Return on Average Assets 1.25% 0.98% 27% 1.56% -20% 1.07% 1.51% -29% Return on Average Equity 9.56% 7.63% 25% 11.76% -19% 8.26% 11.57% -29% Efficiency Ratio 52.21% 53.60% -3% 50.15% 4% 52.64% 52.35% 1% Net Interest Margin 3.54% 3.60% -2% 3.97% -11% 3.63% 3.67% -1% Adjusted Net Income(1) $ 80,115 $ 62,635 28% $ 91,817 -13% $ 202,685 $ 248,329 -18% Adjusted Net Income Per Diluted Share(1) $ 1.16 $ 0.91 27% $ 1.32 -12% $ 2.93 $ 3.58 -18% Adjusted Return on Assets(1) 1.25% 0.98% 27% 1.54% -19% 1.07% 1.42% -25% Adjusted Return on TCE(1) 14.35% 11.53% 24% 18.33% -22% 12.46% 17.33% -28% Adjusted Efficiency Ratio(1) 52.02% 53.41% -3% 50.12% 4% 52.49% 53.46% -2% Organic Loan Growth $ (270,680) $ 473,888 -157% $ 1,245,834 -122% $ 345,826 $ 2,932,598 -88% Organic Loan Growth Rate(2) -5.29% 9.48% -156% 28.38% -119% 2.32% 24.63% -91% Portfolio NPAs/Assets(3) 0.27% 0.30% -9% 0.32% -17% 0.27% 0.32% -17% Total NPAs/Assets 0.58% 0.57% 3% 0.55% 5% 0.58% 0.55% 5%

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Strong Net Interest Margin Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 3Q23 $ 247.0 10.69% $ 374.0 8.69% $621.0 9.49% 2Q23 $ 341.7 9.87% $ 202.5 8.47% $554.3 9.35% 1Q23 $ 339.8 9.40% $ 223.2 7.68% $563.0 8.72% Above peer group margin at 3.54% Net interest income (TE) of $208.7 million in 3Q23, compared with $210.5 million in 2Q23: Interest income (TE) increased $8.6 million Interest expense increased $10.4 million Average earning assets decreased $91.6 million Total deposit costs up 24bp in 3Q23, compared with a 63bp increase in 2Q23 Noninterest bearing deposits remain above historic levels and were 32.0% of total deposits at quarter end Average FHLB advances down $465.0 million during the quarter Spread Income and Margin

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Diversified Revenue Stream Strong revenue base of net interest income from core banking division Additional revenue provided by our diversified lines of business Mortgage Banking Activity Retail mortgage activity has continued to stabilize back to pre-pandemic levels Mortgage banking activity was 13% of total revenue in 3Q23 Purchase business remained at 85% in 3Q23 due to strong core relationships with builders and realtors Approximately 86% of the net interest income included in mortgage revenue is related to portfolio loans generated from the mortgage division Gain on sale margin continues to improve from historic low in 4Q22 Other Noninterest Income Other Noninterest Income has been stable contributor to total revenue Other Noninterest Income includes: Fee income from equipment finance group BOLI Income Gains on sale of SBA Loans

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Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) OPEX Highlights Management continues to deliver high performing operating efficiency Adjusted efficiency ratio of 52.02% in 3Q23, compared with 53.41% in 2Q23 Total adjusted operating expenses decreased $7.0 million in 3Q23 compared with 2Q23: Decrease of $6.2 million in 3Q23 banking division operating expenses primarily due to: $2.1 million decrease in credit resolution-related expenses $1.6 million decrease in legal and professional fees $1.0 million decrease in FDIC insurance $1.5 million net decrease in fraud/forgery and litigation resolution expenses Net decrease of $768,000 in 3Q23 lines of business operating expenses due to variable compensation related to production increases Disciplined expense control throughout the Company with identified cost savings utilized to fund future technology and innovation costs 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix

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Balance Sheet Trends Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: -0.3% asset sensitivity in -100bps -0.1% asset sensitivity in -50bps 0.1% asset sensitivity in +50bps 0.2% asset sensitivity in +100bps Approximately $7.2 billion, or 35%, of loans are variable rate Approximately $9.7 billion of total loans reprice within one year through either maturities or floating rate indices Cumulative weighted-average beta for all non-maturity deposits through this cycle has been 29% Interest Rate Sensitivity Earning Assets Highlights Available-for-sale (AFS) securities represent less than 6% of total assets, limiting potential tangible book value dilution from rising interest rates Unrealized loss of AFS portfolio was $78 million at September 30, 2023, representing approximately 5% of book value No transfers to held-to-maturity (HTM) portfolio – all securities classified as HTM were previously purchased for CRA purposes Capital Highlights Ameris is well capitalized with minimal unrealized losses in the investment portfolio TCE Ratio of 9.11% at September 30, 2023 Earnings expected to add between 25 - 35 basis points to capital each quarter assuming flat balance sheet Repurchase plan announced in October 2023 of $100 million

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Proven Liquidity Plan At September 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,546 $ - $ 1,546 Unpledged Securities 677 - 677 External Sources FHLB 5,421 1,798 3,623 FRB Discount Window 2,635 - 2,635 Brokered Deposits 2,853 1,567 1,286 Other 127 - 127 Total Liquidity $ 13,259 $ 3,365 $ 9,894 Diverse sources of liquidity available to the Company Minimal unrealized losses on unpledged securities due to disciplined investment strategy Majority of funding used is short-term to manage interest rate profile and provide flexibility as liquidity needs fluctuate Have not accessed Bank Term Funding Program Available liquidity sources provide approximately 117% coverage for uninsured deposits and approximately 161% coverage for non-collateralized uninsured deposits No single depositor represents more than 1% of total deposits Uninsured and uncollateralized deposits represent 29.7% of total deposits Sources of Liquidity Solid Liquidity Plan

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Strong Core Deposit Base Deposit Highlights Noninterest bearing deposits remained strong at 32% of total deposits Total deposits increased $147.2 million in 3Q23 compared with 2Q23 Noninterest-bearing deposits decreased $117.3 million, or 1.7% MMDA and savings increased $359.6 million, or 5.7% CDs increased $157.8 million, or 4.4% Brokered CDs were minimally changed during the quarter Deposit Type Balance (in 000s) Count Average per account (in 000’s) NIB 6,589,610 297,584 22.1 NOW 3,607,856 44,984 80.2 MMDA 5,818,896 31,177 186.6 Savings 830,402 65,249 12.7 CD 3,743,581 41,018 91.3 Total 20,590,345 480,012 42.9 Deposits by Product Type

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Capital and TBV CAGR 13% Proven Stewards of Shareholder Value Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 13% annualized TBV increased $0.96 per share in 3Q23: $1.01 from retained earnings ($0.15) from impact of OCI $0.10 from all other items including stock compensation and share repurchases 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix CAGR 13% Equipment Finance Acquisition LION Acquisition CECL Adoption

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Loan Diversification and Credit Quality

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Diversified Loan Portfolio 3Q23 Loan Portfolio Loan portfolio is well diversified across loan types and geographies CRE and C&D concentrations were 283% and 79%, respectively, at 3Q23 Non-owner occupied office loans totaled $1.45 billion at 3Q23, or 7.2% of total loans Continued strong asset quality metrics during 3Q23 as evidenced by a lower volume of Non-Performing loans, net of GNMA-backed mortgage loans Reserve increased to 1.44% of total loans during 3Q23 to account for forecasted economic conditions Limited exposure in SNCs and syndications Continued diligence by credit staff on portfolio reviews given the current economic environment, focused on maturing and floating-rate loans, particularly in C&D and investor CRE loans Portfolio Highlights Total Loans $20.2 Billion

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Loan Production vs Growth 3Q23 loan production was spread across many product lines, continuing to contribute to portfolio diversification Overall, 3Q23 production exhibited a 19% decrease from 2Q23. Loan balance decline in 3Q23 was primarily driven by lower seasonal volume of Mortgage Warehouse loans *Loan production reflects committed balance total, excluding Mortgage Warehouse production; loan portfolio growth reflects quarter-over-quarter loan ending balances. 4Q22 loan growth includes acquired loans of $472.3 million. (in millions)

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Loan Balance Changes 3Q23 Loan Balance Changes Loan balances were $270.7 million lower in 3Q23, primarily the result of a $294.6 million decrease in Mortgage Warehouse loans YTD, total loan growth was $345.8 million, or 2.3% annualized through 3Q23 C&D growth was primarily driven by advances on existing commercial construction loans (in millions)

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Allowance for Credit Losses Increase in reserve during 3Q23 due to forecasted economic conditions The ACL on loans totaled $290.1 million at 3Q23, a net increase of $18.0 million, or 6.6% from 2Q23 The reserve for unfunded commitments totaled $49.0 million, a decrease of $5.6 million, or 10.3%, primarily due to lower unfunded balances During 3Q23, recorded a provision expense of $24.5 million The ACL on loans equated to 1.44% of total loans at 3Q23, compared with 1.33% at 2Q23 The total ACL on loans + unfunded commitments was $339.1 million, or 1.33% 3Q23 CECL Reserve Reserve Summary (in millions)

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Allowance for Credit Losses Results were primarily driven by negative forecasts for CRE and home prices over the next four quarters The ALLL for the two CRE categories (RE – C&D, RE – CRE) exhibited the highest increase from 2Q23 of $14.5 million The blended ALLL % for those two categories was 1.64% at 3Q23 The negative forecast for home prices resulted in a $2.0 million increase in the ALLL for residential mortgage loans (RE – RES) 3Q23 CECL Reserve by Loan Type Reserve Summary Reserve Methodology Moody’s September 2023 forecast model provided material inputs into ACL Primary model drivers included: US and Regional Unemployment rates US GDP US and Regional Home Price Indices US and State-Level CRE Price Index for our five-state footprint Estimate derived using Baseline scenario

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NPA / Charge-Off Trend Net of GNMA-guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.27% at 3Q23 vs 0.30% at 2Q23 Total NPAs increased $3.6 million, to $149.9 million, primarily as a result of: $11.1 million increase in 90+ past due GNMA-guaranteed mortgage loans Charge-off of $3.2 million in remaining pre-acquisition nonaccrual loans in the Equipment Finance division $2.8 million net decrease in OREO due to the sale of our largest OREO property Net charge-offs totaled $12.1 million, which equated to an annualized NCO ratio of 0.23% Included in 3Q23 charge-offs were $3.2 million of pre-acquisition, nonaccrual loans in the Equipment Finance division that were 100% reserved at the acquisition date Excluding those acquired loans, net charge-offs totaled $8.9 million, or 0.17% annualized Non-Performing Assets (NPAs) Net Charge-Offs ($ in millions)

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Problem Loan Trends Total classified loans, excluding GNMA-guaranteed mortgage loans, increased $3.8 million Total criticized loans (including special mention), excluding GNMA-guaranteed mortgage loans, increased $20.2 million Nonperforming loans, excluding GNMA-guaranteed mortgage loans, decreased $4.7 million, primarily the result of collection efforts and upgrades The watch list totaling $388.2 million is primarily comprised of the following loan types: Highlights (in millions) Note: Criticized, Classified and Nonperforming loan totals exclude GNMA-guaranteed loans

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Investor CRE Loans Stratification of Investor CRE Portfolio Non-Owner Occupied CRE Portfolio is well diversified Over 80% of CRE loans are located in MSAs in the Bank’s five-state footprint, which exhibit population growth forecasts exceeding the national average Overall past dues for investor CRE loans were 0.15% and NPAs 0.07%

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Office Portfolio 86% of non-owner occupied office loans are located in MSAs in the Bank’s primary footprint; overall, the average vacancy was ~10% Central Business District (CBD) locations represent 7% of non-owner occupied properties; Charleston, SC and Tampa, FL represent the two largest CBD MSAs (66% of total CBD properties) The portion of the ACL apportioned to non-owner occupied office loans was 1.52% * Results based on loans > $1 million, or 95% of total loans Non-owner occupied office loans totaled $1.45 billion of outstanding balances and $1.68 billion of total committed exposure at 3Q23 As a percentage of total loans outstanding and committed exposure, non-owner occupied office loans were 7.2% and 6.6%, respectively 66% are comprised of Class A, Essential-Use Facility or Medical Office Building (MOB) Highlights 24

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Commercial Real Estate Production 3Q23 Commercial Real Estate Production Summary: 3Q23 Residential Construction Production Summary: 3Q23 production of C&D and CRE loans - $381.8 million in total committed exposure Residential real estate construction: Spec/model to pre-sold ratio of 0.5:1 Investor CRE 3Q23 production: Production totaled $58.1 million Weighted average 1.55:1 debt service coverage Weighted average 52.4% loan/value Summary of CRE production by collateral state: Highlights

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Equipment Finance Portfolio Total loans were $1.2 billion, or 6.0% of Ameris’s total portfolio The overall average loan size was $48.3 thousand Loan production totaled $156.7 million in 3Q23. The average FICO score for new production in 3Q23 was 738 30-89 day accruing past due loans were 0.85% of total loans; non-performing loans continue to decline and totaled 0.39% of total loans The remaining pre-acquisition, fully reserved non-performing loans, totaling $3.2 million, were charged-off during 3Q23 The portion of the ACL attributed to the Equipment Finance division totaled $40.1 million, or 3.30% of loans Highlights (in millions)

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Reconciliation of GAAP to Non-GAAP Measures

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Reconciliation of GAAP to Non-GAAP Measures

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Reconciliation of GAAP to Non-GAAP Measures

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Reconciliation of GAAP to Non-GAAP Measures

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Ameris Bancorp Press Release & Financial Highlights September 30, 2023