Ameris Bancorp (ABCB) 26 Apr 242024 Q1 Earnings call transcript

Good day, and welcome to the Ameris Bancorp First Quarter 2024 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Nicole Stokes, Chief Financial Officer. Please go ahead.

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

we referencing But Doug the will and call, Proctor, amerisbank.com. the During be by today Chief highlights of website Palmer are Credit I'm section joined the CEO; the that available our Relations general our on Officer. Palmer up and before details I of Investor financial our our will at Strange, you comments before financial then begin, release press that for will begin statements. may we Q&A. comments, with remind I'll include discuss and some open results opening we our the forward-looking

except results of risks the in our vary Also a statements list do factors early website. which certain some SEC subject to developments actual not statements will cause to our The we measures forward-looking the assume non-GAAP filings, on materially. otherwise, as differ performance. required release press any discuss and any financial to These to in information, new the our are in and update call, as We reference We could by results company's available result of are might obligation or during law. uncertainties. that

see in reconciliation GAAP can our measures presentation. financial these the and You our of measures to appendix

you to And with Palmer I'll that, over turn for opening comments.

XXXX everyone increased evidence healthy call, reminded first the with join our sheet XXXX strong of In to I time call margin, efforts. balance prepare we Nicole. you, were of taking strengthening ourselves our We morning, for capital those Good last On you Thank and quarter the to spent a our earnings results appreciate everyone. today. reserves. XXXX how

operate X% items, and we ROA. continue special cyclical the at a to PPNR Excluding

our creating in us streams has as positioned. revenue franchise Our loan well both deposit diversification well the as and discipline in

annualized while $XX loan of the X.XX% noninterest maintaining above for We net an of deposits X.X% this ratio quarter. loan-to-deposit supported growth bearing. growth our This over same that by and in at annualized deposit of quarter peer million margin grew X.X% was interest the

with Our remains credit for losses. strong balance reserve sheet a healthy

During model losses to bringing up growth deterioration. I'm coverage capital portfolio this loans provisioning position. the for of grew and to first million Once pleased share. provision driven XX.X% with to quarter NPAs. very ratio of and XXX% we end was and $XX quarter, book not $XX.XX credit again, the by at related recorded our credit this quarter our annualized We tangible over per X.XX%

look at remainder I to is as our goal when And well I for TCE X.XX%. coming Our over out of stated the things. from several in we ratio X%, XXXX, benefit continue of now encouraged remain

the a margin, turn and solid capital it deposit and drive sheet economic we you financial of about And detail. a us liquidity Nicole in when base, there in going for now what our revenue with stream, our over optionality with control that discuss provides markets, to southeastern optimism. I'm a to allowance. of, core and First results really with lot positions, occur. that's proven of talking bankers a diversified seasoned expense keep strong and culture helps that changes a balance our top stop to add may certainly well-capitalized which obviously, healthy A healthy more

you, Thank Great. Palmer.

diluted earned and exclude the assessment special For $X.XX share. On $XX.X the reporting adjusted per per first an quarter, or income gain on share diluted $XX.X of million you $X.XX when or we BOLI we're million net the basis, proceeds. FDIC

this adjusted X.XX% and quarter, on assets our improved on common improved to tangible return XX.XX%. return equity to adjusted Our

end and stock $XX.X of remaining also $X.X have through we first We million available approximately growing continue to million focused remain common approximately build of we quarter, we on and the the value during capital, and October. purchased shareholder

for income the On quarter, the interest being revenue short all $X.X February day quarter things, million with a over almost month. count last decreased side from of our

came income we the of quarter. for loan for in March, growth growth so on the statement the did most benefit the get addition, In quarter of the that full

quarter, the costs interest our moderate about decline this as income expected, the As net matures. to $X.X cost of million. pace causing the continue cycle to deposit rose increases deposit But

cycle. Our a interest very margin be X with X.XX%. this X.XX% margin net quarter points still margin strong at and pleased remained We in above to of this late basis excited just were the compression

X yield total while points. increased X by our only basis earning Our points, basis on assets funding increased cost

sensitivity for on to X Now the over Slide I years we've the decisions. programmatically liability repositioned whatever our prepared be next Fed whenever close X. for neutral information We're our to want to asset in be balance ready decision, continue is, Fed to rate updated that remind interest we've on our and we sheet presentation past as everyone that unclear the sensitivity

sale division the on moving noninterest gain cyclical of taxes improving. the moving million in the due $X.X most and quarter, expense, total income. mortgage our Kind first then on in increased to mostly which payroll adjusted increase noninterest about to increased in into matching million due the That of contributions. this XXX(k) And margins to expense quarter, $X.X was

payroll remainder this items. efficiency do XX% year. we below of maintaining ratio and an the the those for adjusted Our was was ratio elevated But because efficiency XX.XX% quarter of anticipate cyclical

billion ended end million increased $XXX we deposits with assets loan X.X% deposit That the quarter this to growth compared year. annualized balance and represents growth. increased at the total On of $XX.X about $XXX million. of side, and billion X.X% sheet a $XX.X a Loans the the annualized quarter

to the and deposit deposit loan growth. to will on on we that governor due continue the balance mid-single well-positioned focused Yes, our market. digits we a successful our remain We and XXXX loan growth be growth and expect in sheet XXXX anticipate strong

and from I'm Danielle to questions group. the And it any with that, to back turn call going up for wrap the over

first Whitman Piper [Operator of The from Instructions] comes question Casey Sandler.

And how relatively walk neutral to position grow? too you're But start the in that next Or So you're viewing is of the you Ameris here? to for can quarters? it that? margin a safe over then few of say see Nicole, know through inflection commented We sort you to how is sort NI you've it just for reached I might rates. about early us

appreciate of words the I've so And I some of and question. use those trough. even inflection Casey, to been cautious

And so don't things want do I good a to I to point oversell out but the few margin. want on

X you beta and last that And First catch-up was our of a points it compare quarter points. all, year basis points. XX ago, quarter X last basis only this was to was quarter, it when basis

a have cyclicality funds, in first we look good noise quarter, our noninterest-bearing and in causes you appreciate. protecting kind So our lot when really that's of the change. margin. quarter, deposit a that trend of public that mix. we we job certainly at mix Then that this Typically, a XX% some But did our

compares negative And only the that that so mix with our points year, margin, point XX deposit first change, X and basis cyclical last hear quarter outflows normally on basis we even noise. was to those where

kind kind asset points. had don't us oversell deposit And to movement X get was negative points some positive X points -- I on of sensitivity that then basis And that good to again, -- there's side. the but to in then of one, X that So want we that picked basis of up those that net compression. basis so X

is got can have costs we've those asset So very, this deposit slight beta stabilized. we where has definitely the slowed, do sensitivity asset slightly then wildcard the we -- trend has that in some forward. sensitive And that and still very But mix deposit say the what all repricing. going is of the definitely just loans that

Okay.

You mortgage? a last Just for suggests year can outlook switching pipeline year. like higher than provide you open sale gears. comments Any to on and seem on margins you that a the the gain set up stronger just you're had

get sort just there? ground cuts? for even a you the if growth year are is we of what So revenue what this And good on expectation seeing don't

you, Yes. with pleased the is are very will again, That the cake. over positive. down. core kind icing But quarter, the moves as on mortgage. was Casey, the this Palmer. mortgage you is this and days, couple pulls compound and tell saw obviously you all -- last obviously, that tell we XX-year I volume bank's would back the I the then of then But production outlook, then of the with we

and product road. trends buying to have to think driven mortgage encouraging there mortgage is are then and for that. as by just strong to part first some the The is there is the much conditions. going ahead a down and you and We to that's purchase people year refinance the that that we and momentum they're start had which there, business, market assuming very them just homes operate desire I of is, heavy of good business, way but see and so going do the us that know, still

margins So anywhere did -- improve a gain X% this stage, I where at on look think we when little just you think maybe especially X.X% cycle. this sale, those by continue, terms as the way. of well any do now, a considerably. it's range, we've pretty that the other but above I the another But but we we'll expect given the given do right wide in by rates. But loans encouraged to is we we're volume, quarter, between and of know, premature had in anywhere at that are that to stay driven see, type what range X% you much and so And guidance. market the of we swing have

So about part look people a first seasonality. good talking the of the lot There seeing are of less are really pipelines year.

we of I think we're a in, too. lot of was because the seasonality see what markets

markets paid dividends and Georgia Southeastern in heavy being and So really Carolinas Mid-Atlantic, to have and those us. Florida

anybody's based we're the will think either crystal is of most peers go. how kind positioned. of I our just So ball where now right rates just better in outlook But fare way, we of than terms on

The from KBW. Will comes from next Jones question

higher sticking expenses didn't was the line mean, but see story discussion, Just was revenue. we I that the the like same mortgage as in the big we ramp great revenues, another with see I to with it did feel

there. remained So this cost solid containment the is relatively

same first , ahead? trending bit rate, remainder Nicole, the is of year. quarter expect off containment then we good point from mortgage a side? keep on have that here, of do we for the And jumping to little a think can expense the about run of As that seasonally separate seasonality guess, cost higher follow-up of you is of the Obviously, the just I kind you mortgage a the level kind

the question So I'll take first. mortgage

be controlling But data as side, ramps to there job On the a they incentives, as did expenses. to related as of fantastic processing. up, far is mortgage of commissions, growth going some expense production that

So ratio. run around typically they XX% a efficiency

about have of for overall, I our revenue then million well. can run the that you're that model just cyclical you And from caution taxes that that would model expense we first are and growth kind the payroll as out rate kind XXX(k) $X quarter, So modeling growth as the in quarter first of match.

So that on. decline goes as year the will

bit second quarter no first rate So in that, a a out of is third the little $X other there'll perspective. that in Outside first be there's But the quarter, really little the quarter. in out million the kind bit of bump of anomalies a run quarter. from

And kind to one of just lever to full of peers. technology, And lot a that lot mortgage that things on certainly, prided ourselves that and of credit do that is to our lot relative has up have there, to ability we operation add tremendous capacity Will, created and has of operators give that to that of the to talent. is they've their to with I the a with the do a and

to you because the or very in cost, in we industry fixed probably potential just additional that our in good relative have others tailwinds in talent ability that place, to volume we've place. when we're most think a absorb our got relative infrastructure that to So for position about area and

great. That's Yes.

X yes certainly, credit. to the even clean, desirable on The broadly some office dynamics criticized were and in or criticized in trends that -- quick guys saw So of relatively the the reserve bit is offense. the behind What for on know drivers they take reserve. just a just there? more what you down then you some takedown And of where me we office guys, were were little oneX build? speaking, NPAs, be bigger build for I did although in

X I we on pristine. if look think the see, charge-offs knock have it's metric X you'll and office, now, own at you Well, wood and right delinquencies to

is ours in my said model as so I comments. And initial driven,

look the particular, run at office index So when we what's models, that's we driving our and in really CRE model that. Moody's the in

So any signs there's this no at credit of stage deterioration.

The comes Stephens. question Russell next from from Gunther

discussion. Circling back to the margin

coming year, the what about focus magnitude piece what quantify yield pickup and repricing guys expect you that is the just billion within and You in of be? you'd of the loans maturities or to the deck, kind in either mentioned rate, $XX due the on potential fixed floating

Sure.

repricing about about are So next in $XXX in when a look our from that repricing the think is there's a so we behaves are loan. like rate thing of of our so -- got we've variable at that perspective, rate portfolio coming fixed portfolio is portion it XX%, the a or -- year, loans at rate much the XX% there's those about of a

example, premium are variable duration, have behave finance, they like For technically XX-month those but a our rate. they fixed about a rate, just but

So those repriced. have already really

rate, have variable of fixed warehouse perspective they of not a credit credit people a there's as but a the And we the we've from also So issue that repricing. rate. scale that then like all lines sudden, a much are got emphasis behave from --

you XX% variable. XX% of that when really So we're fixed, in, a put more

Okay. you're the very discussion. on just capital, back priorities? position, moving Got excess about something capital you more thinking little does in And buyback, How active consider I a stance you'd on a bought this the 'XX. deployment in quarter. are maybe a And to then it. healthy mean, stock

economic buybacks ability right through preservation our in in execute now, the as just the kind mode of we've our We're change certainly we're I capital to of terms the in stage see any this pleased the there. have quiver in on with to we able But we approach this and At accrete don't game, capital Yes. work been our that. cycle. very of

Great. then that just forward? would And of touched Where within separate, of be ratio. in just trend one kind part above really perhaps a a Balboa 'XX? outlook related And on to any you to reserve this follow-up bit office. change me, build, expect a Okay. for guys there's you the Overall, activity as to whether going last and get helpful steady then peer do charge-off

reserve, are so Will, to we as with the model-driven. Okay, respect noted, Palmer

Our indices and composition models based led future portfolio on Moody's portfolio given we we're be with forecasting -- happy March. models. of that are reserve by as our Any loan changes on are would think based those our X.XX% the relevant

points little that's remember, Second yield, finance got last for of which fourth part question, charge-offs business. but your than But for you a equipment basis risk do quarter, we're remain quarter charge-offs the better bit year. XX higher a elevated, little high was to the a

that yields that. Notwithstanding, we And take get tightening did but so credit of that recognizing business. steps boxes we good in expect certain several some line up division, with on of respect we to

lifetime Yes. just you that within sort the impact No, understood. what and was quarter the you I reminder actual for the on charge-off had curious loss range book? of a expect if

a about sub-X%, for If history, of amount dollar range. over what rate equipment terms are you percentage look XX-year you finance probably that the is you or a X.X% Are asking loss asking? quarter in or in this

of sense of number, contribution was all-in XX for what Balboa's get this trying basis just to a quarter. Yes, the kind I'm point

that of finance. that equipment XX% -- probably bulk of was The

comes Janney next Marinac Montgomery The question from Christopher Scott. from

to possibly Nicole, that as later? to get see sooner dots possibly with means I try kind going the gets net bottoming of forward margin to PPNR connect what versus stronger profitability the better? even the And margin ROA. then Could that you want interest

come at kind we in short-term digit that feel that fantastic. the low could cycle consider out be would about if of next to we quarter. the I'd victory. said have if margins a some with that is X.XX% X.XX% the compressions we this at we've of from late like that of to And we beginning cycle, And kind Chris, this that say single

last which I more and quarter maybe quarters, think would been we said quarter. next have that had quarter X this I

between So we are in around X.XX%, bouncing X.XX%, at that a somewhere range. X.XX%, X.XX%, maybe

the all strong really about very That's we're they we have And good deposit of say the with. our by July. margin our are as definitely short, still of and then as X.XX%-ish call like that. to a mature got short, slowed. the I'm very cautious retail we're broker I I are reprices. being really -- book of our increases that XX% short, that price trough. really person speed We've most margin will is our a pleased ever some a all like that probably proud far said, of loan CDs like things tactical about, CDs But

So we've it's think Maybe, but got we've like we well some little more bit slowing. see definitely and good feel ourselves -- a compression? we positioned very I could

And see credit road or in a for on general? helpful. charge-offs be influential just had it SBA. you SBA Is that That's question relates the either anything Great. that there as down I credit would to

have of Chris, not pressure as may people under see we've bit we been companies. losses cost But stress we've business on the small mean, X% that guarantee portfolio. does portfolio group the put overall But that is is and and the capital book of a of is XX% as lowest -- XX.X%, we realize your more. I or materially. recognizing most those about that again, little they occur, when

Doug full, from of half programs have some we but fact volume last do the we any did to overall. a that be is whole got. probably PPP that help Chris, will SBA area, you'll I'd minuscule with what now, due lot in talked risk And it probably But assist of terms we've about out do credit mortgage perspective come coming there some glass see because on the -- mentioned, more a similar as feel additional they over to I pretty in there'll out of of in eliminate stress right good couple of deferments, that And is overall recall, the to in as everybody with what be increased focused stress. the will about. potential that the of because, think didn't that clearly but But as to terms portfolio we've years we volume there. have love

Great. still I before the game then do guess, matching and And has that last plan to Is new you've loans new with, question mentioned about going the discipline just that forward? deposits.

Absolutely. I one try what are Nicole, DDA you trying about we're fruition. deposits. bringing the overlook But got. importantly, And we control And And is already when that our you at at Nicole, cannot noninterest-bearing we to starting value things come certainly to efforts we've more the that talked, of and of the in of margin. look quarter, what there to build. it's look can this evidence build you think just

that So with last And year, And over it's example allowing probably deposits loan of benefits the it, new, they're governor the the it's all the growth. good about focus anything we've kind controlling. had the that, treasury one not and think and of if aligning to will banks have, for on continue. I be of is a disciplined and we're

next David The Feaster question from from James. comes Raymond

change such sheet and managing rapidly. this curious, look, longer. neutral Last do balance outlook curious, the how at all you're we're continues pretty this job sheet looking question. quarter, the and rate about Maybe pretty to cycle throughout this just now just high-level I'm at managing good I'm cuts think for guys you talking you we're the higher at do you -- rate point how a about balance and point. have done

some guys you that considering? the place initiatives and strategies on of rates or in kind maybe have are Just you that uncertainty given

Sure.

don't got of So cycle. we to think we close have timed this the neutral I could to any -- the better of part that it we've really this fact be are proud

always higher camp kind longer. for So of for we've of -- higher longer that for in been longer,

our liability-sensitive can with some short been and have we short, specifically CDs being So that our doing things CDs -- more so there quickly. retail become with pretty are being brokered we do can we

about than in our It to bond bond smaller The $XXX other would continue the thing earning there. that in another million us our up bring X% of portfolio, could to put portfolio. usual portfolio. still assets is bond we We're assets. of have about a We our X.X% only earning

have we So can do there. we movement that

maturing short our year, got million coupon of we $XXX-ish portfolio we've also at matures about $XXX million maturing. have we've and a That's duration year, This on a X.XX% that about portfolio. very that's coupon. million bond our X.XX% got next $XXX about a We have and

also things balance sensitive some some of the that more are help there run. in do the become longer that liability from prefund the us sheet those can -- on of to we So kind payoffs will

And helpful. accounts the -- then seeing, some maybe really The in on That's it. basis. NIB kind period-end Okay. I And mean, it's we and maybe on I'm margin growth trending front. from you that is you're side, the going trends strategy NIB of deposit the just a on performance, the growth margin balances how NIB saw mean, be just as nailed us of the to quarter? side. your key especially to touching on underlying about just think lost you how curious, not I And of you NIB kind like, the early are into deposit you that Palmer, forward? look

it's I that. deposit having the We've not at adjust think strategy think I is perfectly our you always -- -- to When been deposit focused Yes. we're David, nice mix, say hounds. look we've because of don't reflective our that. like a been on we're thing, always I'd we've to --

in, you is the management and focus payroll accounts our seeing has and come that's we that commercial, and XX% efforts the when placed that's small that's at been is, and C&I our XX% so And on operating business look treasury consumer really, what with where we side. come on our accounts on in, as where composition know, all banking the focus we're the

primarily when been has that's that over last XX that has value been been, at we So where that where created. that's and hires look expense we additional had the the months,

of of probably in internally, on us has are sure I can And comes which think given externally this that side more a deposits, that -- hope keep are folks to past, better it the deposits. doing relationships. ask for really making lot focused transactional and that more loan alignment an trend in between we more And because of So just job banks much whereas more fundamentals. core there's will going was and terms the continue focused we and a now, do right you'd there are back loans I with that then the think, opportunity new it

ask we be change well. Now when very for we'll deposits that's approach. the right a now, working seems this and loans. have doing the environment, we in deposits, to pretty the then in psychology different it consider And And

great. And That's Okay. then maybe last one for me.

capital Just priorities. touching on

got of kind on capital You've growth, extremely that you're just strong and sheet, growth Or this at kind an the is balance being loan of capital point? slower I'm your at accreting point? this with capital curious funding preservation the loan governor focus just priorities

it preserving just if buybacks accreting the do to we this as would point been saying capital we But place Clearly, in prudent right in and now, to got I be have keep preservation. think cycle, we've at capital. that choose consistently it's so. Yes, more the

conference turn over This remarks. concludes our question-and-answer like to I to session. closing would the back for Proctor Palmer

you, and time in appreciate Ameris we your everybody's the you on and again sharing today look with you our and to quarter. call, for we Bank. your forward participation Thank Danielle, interest next Thank results

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

may You now disconnect.