8-K
Ameris Bancorp (ABCB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
| Date of report (Date of earliest event reported): | January 27, 2022 | |
|---|---|---|
| Ameris Bancorp | ||
| --- | --- | --- |
| (Exact Name of Registrant as Specified in Charter) | ||
| Georgia | 001-13901 | 58-1456434 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 3490 Piedmont Road N.E., Suite 1550, Atlanta, Georgia | 30305 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s telephone number, including area code: | (404) 639-6500 | |
| --- | --- | |
| (Former Name or Former Address, if Changed Since Last Report) | ||
| --- |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | ABCB | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On January 27, 2022, Ameris Bancorp (the “Company”) issued a press release announcing its unaudited financial results for the quarter and fiscal year ended December 31, 2021. A copy of that press release is attached to this Current Report on Form 8-K (this “Report”) as Exhibit 99.1.
The information contained in this Item 2.02 and in Exhibit 99.1 attached to this Report is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, such information shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 7.01Regulation FD Disclosure.
A copy of the investor presentation material that the Company will present regarding its earnings during the teleconference beginning at 9:00 a.m. Eastern time on January 28, 2022 is attached to this Report as Exhibit 99.2. The investor presentation material is also available on the “Investor Relations” page of the Company’s website (http://www.amerisbank.com).
The information contained in this Item 7.01 and in Exhibit 99.2 attached to this Report is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, such information shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press release dated January 27, 2022 |
|---|---|
| 99.2 | Investor Presentation re: 4^th^ Quarter 2021 Results |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| AMERIS BANCORP | |
|---|---|
| By: | /s/ Nicole S. Stokes |
| Nicole S. Stokes | |
| Chief Financial Officer |
Date: January 27, 2022
Exhibit 99.1
AMERIS BANCORP ANNOUNCES RECORD 2021 FINANCIAL RESULTS
ATLANTA, Jan. 27, 2022 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported record 2021 net income of $376.9 million, or $5.40 per diluted share, compared with $262.0 million, or $3.77 per diluted share, for the year ended December 31, 2020. The Company reported adjusted net income of $368.7 million, or $5.29 per diluted share, for the year ended December 31, 2021, compared with $300.5 million, or $4.33 per diluted share, for the year ended December 31, 2020.
The Company reported net income of $81.9 million, or $1.18 per diluted share, for the quarter ended December 31, 2021, compared with $94.3 million, or $1.36 per diluted share, for the quarter ended December 31, 2020. The Company reported adjusted net income of $81.5 million, or $1.17 per diluted share, for the quarter ended December 31, 2021, compared with $102.0 million, or $1.47 per diluted share, for the same period in 2020.
Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, restructuring charges related to branch consolidations and efficiency initiatives, certain legal expenses, gain on bank owned life insurance ("BOLI") proceeds, (gain)/loss on bank premises and expenses related to the COVID-19 pandemic.
Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "The record earnings reported today are a culmination of efforts across our entire team. We remained focused this year and the success of our team was remarkable. Not only are we reporting record year to date earnings of $376.9 million, we are also reporting full year organic loan growth of 10.45% (excluding PPP loans), tangible book value growth of 10.8% and an ROA of 1.73%. In addition, we were able to maintain a 55% efficiency ratio in one of the tightest margin environments we've seen. We have positioned ourselves to be asset sensitive, we remain focused on expense control, and our credit quality remains strong. Add the growth opportunity from the recent acquisition of Balboa Capital, in addition to our strong Southeast markets, and you realize the level of momentum and enthusiasm around our Company as we look forward."
Highlights of the Company's results for the full year 2021 include the following:
- Net income of $376.9 million, or $5.40 per diluted share, compared with $262.0 million, or $3.77 per diluted share, in 2020
- Organic growth in loans of $727.5 million, or 5.0% (and $1.4 billion, or 10.5%, exclusive of PPP loans), during 2021
- Adjusted return on average assets of 1.69%, compared with 1.56% in 2020
- Adjusted return on average tangible common equity of 20.19%, compared with 19.77% last year
- Growth in tangible book value of 10.8%, or $2.57 per share, to $26.26 at December 31, 2021, compared with $23.69 at December 31, 2020
- Continued growth in noninterest bearing deposits, representing 39.54% of total deposits, up from 36.27% at December 31, 2020
Significant items from the Company's results for the fourth quarter of 2021 include the following:
- Net income of $81.9 million, or $1.18 per diluted share, compared with $81.7 million, or $1.17 per diluted share, in the third quarter of 2021
- Successfully completed the acquisition of Balboa Capital Corporation, a point of sale and direct online provider of lending solutions to small and mid-sized businesses nationwide, in December 2021
- Organic growth in loans of $383.9 million, or 10.4% annualized (and $536.6 million, or 14.8% annualized, exclusive of PPP loans), during the fourth quarter of 2021
- Increase in net interest income of $5.2 million, from $161.7 million in the third quarter of 2021 to $166.8 million in the fourth quarter of 2021
- Improvement in the adjusted efficiency ratio to 54.85% in the fourth quarter of 2021, from 56.56% in the third quarter of 2021
- Net recoveries during the fourth quarter of $556,000, or 0.01% of average loans, compared with net recoveries of $127,000, or 0.00% of average loans, in the third quarter of 2021
- Repurchased 25,859 shares of the Company's common stock at a cost of $1.3 million, or an average price of $48.47 per share
Net Interest Income and Net Interest MarginNet interest income on a tax-equivalent basis for 2021 increased to $659.9 million, compared with $642.9 million for 2020. The Company's net interest margin was 3.32% for 2021, down from 3.70% reported for 2020. Accretion income for 2021 decreased to $16.3 million, compared with $27.4 million for 2020. The decrease in net interest margin is primarily attributable to excess liquidity held on the balance sheet from deposit growth during the year.
Net interest income on a tax-equivalent basis for the fourth quarter of 2021 increased to $167.9 million, compared with $162.8 million for the third quarter of 2021 and $164.8 million for the fourth quarter of 2020. The Company's net interest margin was 3.18% for the fourth quarter of 2021, down from 3.22% reported for the third quarter of 2021 and 3.64% reported for the fourth quarter of 2020. The decrease in net interest margin in the current quarter is attributable to excess liquidity held on the balance sheet, as the average balance in interest-bearing deposits in banks continued to increase during the quarter. The yield on earning assets declined five basis points due to this excess liquidity, and the decline was partially offset by increases in average loans and improvement in the cost of interest-bearing liabilities of one basis point during the quarter. Accretion income for the fourth quarter of 2021 decreased to $2.8 million, compared with $2.9 million for the third quarter of 2021 and $4.7 million for the fourth quarter of 2020.
Yields on loans increased to 4.26% during the fourth quarter of 2021, compared with 4.24% for the third quarter of 2021 and 4.41% reported for the fourth quarter of 2020. Contributing to interest income on loans for the fourth quarter of 2021 was $4.8 million of interest income on loans from the recent Balboa Capital acquisition, as well as $8.2 million of accelerated fee income on Paycheck Protection Program ("PPP") loan forgiveness, compared with $6.2 million in the third quarter of 2021. Loan production in the banking division during the fourth quarter of 2021 was $1.15 billion, with weighted average yields of 3.35%, compared with $913.3 million and 3.56%, respectively, in the third quarter of 2021 and $784.9 million and 3.86%, respectively, in the fourth quarter of 2020. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $5.5 billion during the fourth quarter of 2021, with weighted average yields of 3.43%, compared with $5.8 billion and 3.37%, respectively, during the third quarter of 2021 and $7.7 billion and 3.25%, respectively, during the fourth quarter of 2020.
Interest expense during the fourth quarter of 2021 increased to $11.5 million, compared with $11.4 million in the third quarter of 2021, but decreased from $15.3 million in the fourth quarter of 2020. The increase in interest expense was related to borrowings from the Balboa Capital acquisition, as the Company was not able to pay off all the debt until January 2022. The Company's total cost of funds moved one basis point lower to 0.23% in the fourth quarter of 2021 as compared with the third quarter of 2021. Deposit costs decreased one basis point during the fourth quarter of 2021 to 0.10%, compared with 0.11% in the third quarter of 2021. Costs of interest-bearing deposits decreased during the quarter from 0.18% in the third quarter of 2021 to 0.16% in the fourth quarter of 2021.
Noninterest IncomeNoninterest income increased $5.2 million, or 6.8%, in the fourth quarter of 2021 to $81.8 million, compared with $76.6 million for the third quarter of 2021, primarily as a result of increased mortgage banking activity, which increased by $4.3 million, or 7.6%, to $60.7 million in the fourth quarter of 2021, compared with $56.5 million for the third quarter of 2021. This increase was primarily the result of a net recovery of servicing right impairment of $4.5 million, compared with an impairment of $1.4 million for the third quarter of 2021. Gain on sale spreads increased to 3.27% in the fourth quarter of 2021 from 3.17% for the third quarter of 2021. Total production in the retail mortgage division decreased to $1.82 billion in the fourth quarter of 2021, compared with $2.06 billion for the third quarter of 2021. The retail mortgage open pipeline was $1.62 billion at the end of the fourth quarter of 2021, compared with $1.93 billion at September 30, 2021.
Service charge revenue increased $298,000, or 2.59%, to $11.8 million in the fourth quarter of 2021, compared with $11.5 million for the third quarter of 2021, resulting from an increase in volume. Other noninterest income increased $1.4 million, or 19.8%, in the fourth quarter of 2021 to $8.3 million, compared with $6.9 million for the third quarter of 2021, primarily as a result of noninterest income in our Balboa Capital division of $1.1 million. Also contributing to the increase were increases in trust services income of $167,000 and BOLI income of $207,000.
Noninterest income decreased $81.0 million, or 18.1%, to $365.5 million for 2021, compared with $446.5 million for 2020, primarily as a result of decreased mortgage banking activity, which declined by $88.2 million, or 23.6%, to $285.9 million in 2021, compared with $374.1 million in 2020. Production remained strong at $8.9 billion in 2021, compared with $9.8 billion in 2020, while gain on sale spreads narrowed to 3.31% in 2021 from 3.79% in 2020.
Noninterest ExpenseNoninterest expense increased $1.2 million, or 0.85%, to $138.4 million during the fourth quarter of 2021, compared with $137.2 million for the third quarter of 2021. During the fourth quarter of 2021, the Company recorded merger and conversion charges of $4.0 million and a net gain of $126,000 related to bank premises, compared with a net loss on bank premises of $1.1 million and merger and conversion charges of $183,000 during the third quarter of 2021. Excluding these charges, adjusted expenses decreased approximately $1.4 million, or 1.03%, to $134.5 million in the fourth quarter of 2021, from $135.9 million in the third quarter of 2021. Operating expenses in the newly acquired Balboa Capital division were $1.35 million in the fourth quarter of 2021. A driving factor in the overall decrease in expenses was a reduction in salaries and employee benefits in the banking division of $4.8 million, offset by the $1.3 million of salaries and employee benefits in the Balboa Capital division. The adjusted efficiency ratio was 54.85% in the fourth quarter of 2021, compared with 56.56% in the third quarter of 2021.
Noninterest expense decreased $38.5 million, or 6.4%, to $560.1 million in 2021, compared with $598.6 million in 2020. During 2021, the Company recorded $4.7 million of charges to earnings, the majority of which related to merger and conversion charges, compared with $9.9 million in charges in 2020 that were principally related to natural disaster and pandemic charges and certain legal expenses. Excluding these charges, adjusted expenses decreased $33.3 million, or 5.7%, to $555.4 million in 2021, from $588.7 million in 2020. The majority of this decrease is attributable to a $22.5 million reduction in salaries and employee benefits, primarily variable compensation related to mortgage production, and a $4.6 million reduction in amortization of intangible assets.
Income Tax ExpenseThe Company's effective tax rate for 2021 was 24.0%, compared with 23.0% in 2020. The Company's effective tax rate for the fourth quarter of 2021 was 23.8%, compared with 26.2% in the third quarter of 2021. The decreased rate for the fourth quarter of 2021 was primarily a result of a discrete charge to the Company's state tax liability in the third quarter of 2021.
Balance Sheet TrendsTotal assets at December 31, 2021 were $23.86 billion, compared with $20.44 billion at December 31, 2020. Total loans, including loans held for sale, were $17.13 billion at December 31, 2021, compared with $15.65 billion at December 31, 2020. Total loans held for investment were $15.87 billion at December 31, 2021, compared with $14.48 billion at December 31, 2020, an increase of $1.39 billion, or 9.6%. Loan production in the banking division during the fourth quarter of 2021 totaled $1.15 billion, up 26% from the third quarter of 2021 and 46% from the fourth quarter of 2020.
At December 31, 2021, total deposits amounted to $19.67 billion, or 95.8% of total funding, compared with $16.96 billion and 96.8%, respectively, at December 31, 2020. At December 31, 2021, noninterest-bearing deposit accounts were $7.77 billion, or 39.5% of total deposits, compared with $6.15 billion, or 36.3% of total deposits, at December 31, 2020. Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $12.52 billion at December 31, 2021, compared with $10.23 billion at December 31, 2020. These funds represented 63.6% of the Company's total deposits at December 31, 2021, compared with 60.3% at the end of 2020.
Shareholders' equity at December 31, 2021 totaled $2.97 billion, an increase of $319.4 million, or 12.1%, from December 31, 2020. The increase in shareholders' equity was primarily the result of earnings of $376.9 million during 2021, partially offset by dividends declared and share repurchases. Tangible book value per share was $26.26 at December 31, 2021, compared with $23.69 at December 31, 2020. Tangible common equity as a percentage of tangible assets was 8.05% at December 31, 2021, compared with 8.47% at the end of 2020.
Credit QualityCredit quality remains strong in the Company. During the fourth quarter of 2021, the Company recorded a provision for credit losses of $2.8 million, compared with a provision reversal of $9.7 million in the third quarter of 2021. This provision was primarily attributable to growth in unfunded commitments, partially offset by an improvement in expected credit losses on loans. The Company has been prudently working with borrowers to support their credit needs during the current challenging economic conditions and is monitoring the level of modifications on an ongoing basis, such that loans remaining on deferral at the end of the fourth quarter of 2021 equaled approximately 0.4% of total loans, down from approximately 0.6% and 2.9% of total loans at the end of the third quarter of 2021 and the fourth quarter of 2020, respectively. Nonperforming assets as a percentage of total assets increased 11 basis points to 0.43% during the quarter. This increase was primarily attributable to purchased credit deteriorated assets added from the Balboa Capital acquisition and certain GNMA and portfolio mortgages that completed COVID forbearances and the loan has not been either brought current or formally modified. The Company recorded net recoveries in the fourth quarter of 2021 of $556,000, such that the net charge-off ratio was negative one basis point for the quarter, compared with zero basis points in the third quarter of 2021 and 70 basis points in the fourth quarter of 2020.
Conference CallThe Company will host a teleconference at 9:00 a.m. Eastern time on Friday, January 28, 2022, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 652601. A replay of the call will be available one hour after the end of the conference call until February 4, 2022. To listen to the replay, dial 1-866-813-9403. The conference replay access code is 554920. The financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.
About Ameris BancorpAmeris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 165 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.
This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management 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 anddemonstrate 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.
This news release 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 news release 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; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; 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 ofother 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, 2020 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.
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
|---|---|---|---|---|---|---|---|
| FINANCIAL TABLES | |||||||
| Financial Highlights | Table 1 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands except per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| EARNINGS | |||||||
| Net income | $ <br> 81,944 | $ 81,680 | $ 88,327 | $ 124,962 | $ 94,285 | $ 376,913 | $ 261,988 |
| Adjusted net<br>income | $ 81,544 | $ 83,861 | $ 87,548 | $ 115,746 | $ 101,995 | $ 368,699 | $ 300,501 |
| COMMON SHARE DATA | |||||||
| Earnings per share available to common shareholders | |||||||
| Basic | $ <br> 1.18 | $ 1.18 | $ 1.27 | $ 1.80 | $ 1.36 | $ 5.43 | $ 3.78 |
| Diluted | $ 1.18 | $ 1.17 | $ 1.27 | $ 1.79 | $ 1.36 | $ 5.40 | $ 3.77 |
| Adjusted diluted<br>EPS | $ 1.17 | $ 1.20 | $ 1.25 | $ 1.66 | $ 1.47 | $ 5.29 | $ 4.33 |
| Cash dividends per<br>share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.60 | $ 0.60 |
| Book value per share<br>(period end) | $ 42.62 | $ 41.66 | $ 40.66 | $ 39.56 | $ 38.07 | $ 42.62 | $ 38.07 |
| Tangible book value per<br>share (period end) | $ 26.26 | $ 27.46 | $ 26.45 | $ 25.27 | $ 23.69 | $ 26.26 | $ 23.69 |
| Weighted average number of<br>shares | |||||||
| Basic | 69,398,594 | 69,439,845 | 69,496,666 | 69,391,734 | 69,252,307 | 69,431,860 | 69,256,020 |
| Diluted | 69,738,426 | 69,756,135 | 69,791,670 | 69,740,860 | 69,493,105 | 69,761,394 | 69,426,185 |
| Period end number of<br>shares | 69,608,228 | 69,635,435 | 69,767,209 | 69,713,426 | 69,541,481 | 69,608,228 | 69,541,481 |
| Market data | |||||||
| High intraday price | $ <br> 56.64 | $ 53.63 | $ 59.85 | $ 57.81 | $ 39.53 | $ 59.85 | $ 43.79 |
| Low intraday<br>price | $ 46.20 | $ 44.92 | $ 47.44 | $ 36.60 | $ 22.37 | $ 36.60 | $ 17.12 |
| Period end closing<br>price | $ 49.68 | $ 51.88 | $ 50.63 | $ 52.51 | $ 38.07 | $ 49.68 | $ 38.07 |
| Average daily<br>volume | 350,119 | 392,533 | 429,233 | 460,744 | 394,641 | 407,447 | 420,874 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets | 1.41<br> % | 1.47 % | 1.64 % | 2.44 % | 1.89 % | 1.73 % | 1.36 % |
| Adjusted return on average<br>assets | 1.40 % | 1.51 % | 1.63 % | 2.26 % | 2.04 % | 1.69 % | 1.56 % |
| Return on average common<br>equity | 11.06 % | 11.27 % | 12.66 % | 18.80 % | 14.30 % | 13.33 % | 10.35 % |
| Adjusted return on average tangible<br>common equity | 16.88 % | 17.65 % | 19.46 % | 27.66 % | 25.04 % | 20.19 % | 19.77 % |
| Earning asset yield<br>(TE) | 3.39 % | 3.44 % | 3.58 % | 3.85 % | 3.98 % | 3.56 % | 4.21 % |
| Total cost of<br>funds | 0.23 % | 0.24 % | 0.26 % | 0.30 % | 0.36 % | 0.25 % | 0.54 % |
| Net interest margin<br>(TE) | 3.18 % | 3.22 % | 3.34 % | 3.57 % | 3.64 % | 3.32 % | 3.70 % |
| Noninterest income excluding securities<br>transactions, as a percent of total revenue (TE) | 31.31 % | 30.32 % | 33.78 % | 39.71 % | 38.37 % | 34.01 % | 37.90 % |
| Efficiency<br>ratio | 55.66 % | 57.59 % | 54.07 % | 52.59 % | 54.83 % | 54.87 % | 55.21 % |
| Adjusted efficiency ratio<br>(TE) | 54.85 % | 56.56 % | 54.07 % | 54.62 % | 52.67 % | 55.00 % | 52.17 % |
| CAPITAL ADEQUACY (period end) | |||||||
| Shareholders' equity to assets | 12.43<br> % | 12.87 % | 12.96 % | 12.87 % | 12.95 % | 12.43 % | 12.95 % |
| Tangible common equity to tangible<br>assets | 8.05 % | 8.88 % | 8.83 % | 8.62 % | 8.47 % | 8.05 % | 8.47 % |
| EQUITY TO ASSETS RECONCILIATION | |||||||
| Tangible common equity to tangible assets | 8.05<br> % | 8.88 % | 8.83 % | 8.62 % | 8.47 % | 8.05 % | 8.47 % |
| Effect of goodwill and other<br>intangibles | 4.38 % | 3.99 % | 4.13 % | 4.25 % | 4.48 % | 4.38 % | 4.48 % |
| Equity to assets<br>(GAAP) | 12.43 % | 12.87 % | 12.96 % | 12.87 % | 12.95 % | 12.43 % | 12.95 % |
| OTHER DATA (period end) | |||||||
| Full time equivalent employees | |||||||
| Banking Division | 2,008 | 1,821 | 1,817 | 1,815 | 1,816 | 2,008 | 1,816 |
| Retail Mortgage<br>Division | 739 | 749 | 759 | 765 | 748 | 739 | 748 |
| Warehouse Lending<br>Division | 12 | 12 | 12 | 12 | 12 | 12 | 12 |
| SBA Division | 34 | 29 | 30 | 29 | 24 | 34 | 24 |
| Premium Finance Division | 72 | 67 | 68 | 70 | 71 | 72 | 71 |
| Total Ameris Bancorp FTE<br>headcount | 2,865 | 2,678 | 2,686 | 2,691 | 2,671 | 2,865 | 2,671 |
| Assets per Banking Division FTE | $ <br> 13,262 | $ 12,374 | $ 12,046 | $ 11,806 | $ 11,255 | $ 13,262 | $ 11,255 |
| Branch<br>locations | 165 | 165 | 165 | 165 | 164 | 165 | 164 |
| Deposits per branch<br>location | $ 119,185 | $ 114,142 | $ 110,655 | $ 108,339 | $ 103,401 | $ 119,185 | $ 103,401 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Income Statement | Table 2 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands except per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Interest income | |||||||
| Interest and fees on loans | $ 170,813 | $ 166,358 | $ 167,761 | $ 171,157 | $ 171,971 | $ 676,089 | $ 690,909 |
| Interest on taxable securities | 5,866 | 5,296 | 5,244 | 6,118 | 6,398 | 22,524 | 33,086 |
| Interest on nontaxable securities | 156 | 139 | 139 | 141 | 150 | 575 | 623 |
| Interest on deposits in other banks | 1,521 | 1,244 | 595 | 522 | 252 | 3,882 | 1,739 |
| Interest on federal funds sold | 9 | 9 | 12 | 12 | 12 | 42 | 146 |
| Total interest income | 178,365 | 173,046 | 173,751 | 177,950 | 178,783 | 703,112 | 726,503 |
| Interest expense | |||||||
| Interest on deposits | 4,678 | 5,106 | 5,775 | 6,798 | 8,870 | 22,357 | 59,067 |
| Interest on other borrowings | 6,850 | 6,279 | 6,124 | 6,175 | 6,457 | 25,428 | 29,683 |
| Total interest expense | 11,528 | 11,385 | 11,899 | 12,973 | 15,327 | 47,785 | 88,750 |
| Net interest income | 166,837 | 161,661 | 161,852 | 164,977 | 163,456 | 655,327 | 637,753 |
| Provision for loan losses | (13,619) | (3,984) | (899) | (16,579) | (6,700) | (35,081) | 125,488 |
| Provision for unfunded commitments | 16,388 | (5,516) | 1,299 | (11,839) | 5,481 | 332 | 19,062 |
| Provision for other credit losses | (10) | (175) | (258) | (173) | (291) | (616) | 830 |
| Provision for credit losses | 2,759 | (9,675) | 142 | (28,591) | (1,510) | (35,365) | 145,380 |
| Net interest income after provision for creditlosses | 164,078 | 171,336 | 161,710 | 193,568 | 164,966 | 690,692 | 492,373 |
| Noninterest income | |||||||
| Service charges on deposit accounts | 11,784 | 11,486 | 11,007 | 10,829 | 11,465 | 45,106 | 44,145 |
| Mortgage banking activity | 60,723 | 56,460 | 70,231 | 98,486 | 95,192 | 285,900 | 374,077 |
| Other service charges, commissions and fees | 962 | 1,154 | 1,056 | 1,016 | 965 | 4,188 | 3,914 |
| Gain (loss) on securities | (4) | 530 | 1 | (12) | — | 515 | 5 |
| Other noninterest income | 8,304 | 6,932 | 6,945 | 7,654 | 4,521 | 29,835 | 24,359 |
| Total noninterest income | 81,769 | 76,562 | 89,240 | 117,973 | 112,143 | 365,544 | 446,500 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 76,615 | 79,671 | 85,505 | 95,985 | 92,466 | 337,776 | 360,278 |
| Occupancy and equipment | 13,494 | 11,979 | 10,812 | 11,781 | 12,709 | 48,066 | 52,349 |
| Data processing and communications expenses | 11,534 | 10,681 | 11,877 | 11,884 | 11,323 | 45,976 | 46,017 |
| Credit resolution-related expenses^(1)^ | 1,992 | 377 | 622 | 547 | 1,156 | 3,538 | 5,106 |
| Advertising and marketing | 2,381 | 2,676 | 1,946 | 1,431 | 3,267 | 8,434 | 8,046 |
| Amortization of intangible assets | 3,387 | 3,387 | 4,065 | 4,126 | 4,190 | 14,965 | 19,612 |
| Merger and conversion charges | 4,023 | 183 | — | — | — | 4,206 | 1,391 |
| Other noninterest expenses | 24,943 | 28,242 | 20,934 | 23,044 | 26,005 | 97,163 | 105,830 |
| Total noninterest expense | 138,369 | 137,196 | 135,761 | 148,798 | 151,116 | 560,124 | 598,629 |
| Income before income tax expense | 107,478 | 110,702 | 115,189 | 162,743 | 125,993 | 496,112 | 340,244 |
| Income tax expense | 25,534 | 29,022 | 26,862 | 37,781 | 31,708 | 119,199 | 78,256 |
| Net income | $ 81,944 | $ 81,680 | $ 88,327 | $ 124,962 | $ 94,285 | $ 376,913 | $ 261,988 |
| Diluted earnings per common share | $ <br> 1.18 | $ 1.17 | $ 1.27 | $ 1.79 | $ 1.36 | $ 5.40 | $ 3.77 |
| (1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns. | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | ||
| FINANCIAL TABLES | |||||||
| Period End Balance Sheet | Table 3 | ||||||
| Dec | Sep | Jun | Mar | Dec | |||
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | ||
| Assets | |||||||
| Cash and due from banks | $ 264,807 | $ 239,028 | $ 259,729 | $ 224,159 | $ 203,349 | ||
| Federal funds sold and interest-bearing deposits in<br>banks | 3,756,844 | 3,513,412 | 3,044,795 | 2,534,969 | 1,913,957 | ||
| Restricted Cash | 43,006 | — | — | — | — | ||
| Time deposits in other banks | — | — | — | 249 | 249 | ||
| Investment securities available-for-sale, at fair value | 592,621 | 684,504 | 778,167 | 859,652 | 982,879 | ||
| Investment securities held-to-maturity, at amortized cost | 79,850 | 64,451 | 29,055 | — | — | ||
| Other investments | 47,552 | 27,619 | 27,621 | 27,620 | 28,202 | ||
| Loans held for sale | 1,254,632 | 1,435,805 | 1,210,589 | 1,509,528 | 1,167,659 | ||
| Loans, net of unearned income | 15,874,258 | 14,824,539 | 14,780,791 | 14,599,805 | 14,480,925 | ||
| Allowance for credit losses | (167,582) | (171,213) | (175,070) | (178,570) | (199,422) | ||
| Loans,<br>net | 15,706,676 | 14,653,326 | 14,605,721 | 14,421,235 | 14,281,503 | ||
| Other real estate owned | 3,810 | 4,594 | 5,775 | 8,841 | 11,880 | ||
| Premises and equipment, net | 225,400 | 226,430 | 229,994 | 231,550 | 222,890 | ||
| Goodwill | 1,012,620 | 928,005 | 928,005 | 928,005 | 928,005 | ||
| Other intangible assets, net | 125,938 | 60,396 | 63,783 | 67,848 | 71,974 | ||
| Cash value of bank owned life insurance | 331,146 | 279,389 | 277,839 | 176,575 | 176,467 | ||
| Other assets | 413,419 | 416,182 | 425,858 | 436,896 | 449,624 | ||
| Total assets | $ 23,858,321 | $ 22,533,141 | $ 21,886,931 | $ 21,427,127 | $ 20,438,638 | ||
| Liabilities | |||||||
| Deposits | |||||||
| Noninterest-bearing | $<br> 7,774,823 | $ 7,616,728 | $ 6,983,761 | $ 6,804,776 | $ 6,151,070 | ||
| Interest-bearing | 11,890,730 | 11,216,761 | 11,274,236 | 11,071,097 | 10,806,753 | ||
| Total<br>deposits | 19,665,553 | 18,833,489 | 18,257,997 | 17,875,873 | 16,957,823 | ||
| Federal funds purchased and securities sold under agreements to<br>repurchase | 5,845 | 4,502 | 5,544 | 9,320 | 11,641 | ||
| Other borrowings | 739,879 | 425,375 | 425,303 | 425,231 | 425,155 | ||
| Subordinated deferrable interest debentures | 126,328 | 125,830 | 125,331 | 124,833 | 124,345 | ||
| Other liabilities | 354,265 | 243,175 | 235,752 | 234,274 | 272,586 | ||
| Total liabilities | 20,891,870 | 19,632,371 | 19,049,927 | 18,669,531 | 17,791,550 | ||
| Shareholders' Equity | |||||||
| Preferred stock | — | — | — | — | — | ||
| Common stock | 72,017 | 72,016 | 72,008 | 71,954 | 71,754 | ||
| Capital stock | 1,924,813 | 1,922,964 | 1,920,566 | 1,917,990 | 1,913,285 | ||
| Retained earnings | 1,006,436 | 934,979 | 863,828 | 785,984 | 671,510 | ||
| Accumulated other comprehensive income, net of tax | 15,590 | 21,885 | 25,024 | 26,090 | 33,505 | ||
| Treasury stock | (52,405) | (51,074) | (44,422) | (44,422) | (42,966) | ||
| Total shareholders' equity | 2,966,451 | 2,900,770 | 2,837,004 | 2,757,596 | 2,647,088 | ||
| Total liabilities and shareholders'equity | $ 23,858,321 | $ 22,533,141 | $ 21,886,931 | $ 21,427,127 | $ 20,438,638 | ||
| Other Data | |||||||
| Earning assets | $ 21,605,757 | $ 20,550,330 | $ 19,871,018 | $ 19,531,823 | $ 18,573,871 | ||
| Intangible assets | 1,138,558 | 988,401 | 991,788 | 995,853 | 999,979 | ||
| Interest-bearing liabilities | 12,762,782 | 11,772,468 | 11,830,414 | 11,630,481 | 11,367,894 | ||
| Average assets | 23,054,847 | 22,087,642 | 21,538,894 | 20,734,414 | 19,876,338 | ||
| Average common shareholders' equity | 2,939,507 | 2,874,691 | 2,798,269 | 2,695,005 | 2,622,942 | ||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Asset Quality Information | Table 4 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Allowance for Credit Losses | |||||||
| Balance at beginning of period | $<br> 188,234 | $ 197,782 | $ 200,241 | $ 233,105 | $ 260,417 | $ 233,105 | $ 39,266 |
| CECL adoption impact on allowance for loan losses | — | — | — | — | — | — | 78,661 |
| CECL adoption impact on allowance for unfunded<br>commitments | — | — | — | — | — | — | 12,714 |
| Total CECL adoption<br>impact | — | — | — | — | — | — | 91,375 |
| Acquired allowance for purchased credit deteriorated loans | 9,432 | — | — | — | — | 9,432 | — |
| Provision for loan losses | (13,619) | (3,984) | (899) | (16,579) | (6,700) | (35,081) | 125,488 |
| Provision for unfunded<br>commitments | 16,388 | (5,516) | 1,299 | (11,839) | 5,481 | 332 | 19,062 |
| Provision for other credit<br>losses | (10) | (175) | (258) | (173) | (291) | (616) | 830 |
| Provision for credit<br>losses | 2,759 | (9,675) | 142 | (28,591) | (1,510) | (35,365) | 145,380 |
| Charge-offs | 3,367 | 3,537 | 7,138 | 7,574 | 29,094 | 21,616 | 54,464 |
| Recoveries | 3,923 | 3,664 | 4,537 | 3,301 | 3,292 | 15,425 | 11,548 |
| Net<br>charge-offs | (556) | (127) | 2,601 | 4,273 | 25,802 | 6,191 | 42,916 |
| Ending balance | $<br> 200,981 | $ 188,234 | $ 197,782 | $ 200,241 | $ 233,105 | $ 200,981 | $ 233,105 |
| Allowance for loan losses | $<br> 167,582 | $ 171,213 | $ 175,070 | $ 178,570 | $ 199,422 | $ 167,582 | $ 199,422 |
| Allowance for unfunded<br>commitments | 33,185 | 16,797 | 22,313 | 21,014 | 32,853 | 33,185 | 32,853 |
| Allowance for other credit<br>losses | 214 | 224 | 399 | 657 | 830 | 214 | 830 |
| Total allowance for credit<br>losses | $ 200,981 | $ 188,234 | $ 197,782 | $ 200,241 | $ 233,105 | $ 200,981 | $ 233,105 |
| Net Charge-off Information | |||||||
| Charge-offs | |||||||
| Commercial, financial and agricultural | $ <br>1,003 | $ 858 | $ 3,529 | $ 2,370 | $ 5,960 | $ 7,760 | $ 10,647 |
| Consumer<br>installment | 1,484 | 1,647 | 1,669 | 1,448 | 2,861 | 6,248 | 5,642 |
| Indirect automobile | 40 | 178 | 141 | 829 | 658 | 1,188 | 3,602 |
| Premium Finance | 526 | 605 | 1,194 | 1,343 | 2,240 | 3,668 | 6,133 |
| Real estate - construction and<br>development | 21 | — | 186 | 26 | — | 233 | 83 |
| Real estate - commercial and<br>farmland | 220 | 210 | 27 | 1,395 | 17,284 | 1,852 | 27,504 |
| Real estate -<br>residential | 73 | 39 | 392 | 163 | 91 | 667 | 853 |
| Total<br>charge-offs | 3,367 | 3,537 | 7,138 | 7,574 | 29,094 | 21,616 | 54,464 |
| Recoveries | |||||||
| Commercial, financial and agricultural | 2,389 | 1,986 | 625 | 727 | 754 | 5,727 | 1,889 |
| Consumer installment | 172 | 199 | 212 | 356 | 480 | 939 | 1,753 |
| Indirect automobile | 329 | 278 | 372 | 700 | 637 | 1,679 | 1,657 |
| Premium Finance | 633 | 649 | 2,466 | 1,122 | 605 | 4,870 | 3,189 |
| Real estate - construction and<br>development | 210 | 45 | 84 | 167 | 125 | 506 | 817 |
| Real estate - commercial and<br>farmland | 81 | 266 | 185 | 41 | 439 | 573 | 1,449 |
| Real estate -<br>residential | 109 | 241 | 593 | 188 | 252 | 1,131 | 794 |
| Total<br>recoveries | 3,923 | 3,664 | 4,537 | 3,301 | 3,292 | 15,425 | 11,548 |
| Net charge-offs | $ <br> (556) | $ (127) | $ 2,601 | $ 4,273 | $ 25,802 | $ 6,191 | $ 42,916 |
| Non-Performing Assets | |||||||
| Nonaccrual loans | $ <br> 85,266 | $ 58,932 | $ 59,921 | $ 71,189 | $ 76,457 | $ 85,266 | $ 76,457 |
| Other real estate<br>owned | 3,810 | 4,594 | 5,775 | 8,841 | 11,880 | 3,810 | 11,880 |
| Repossessed assets | 84 | 152 | 226 | 840 | 544 | 84 | 544 |
| Accruing loans delinquent 90 days or<br>more | 12,711 | 7,472 | 4,874 | 5,097 | 8,326 | 12,711 | 8,326 |
| Total non-performing<br>assets | $ 101,871 | $ 71,150 | $ 70,796 | $ 85,967 | $ 97,207 | $ 101,871 | $ 97,207 |
| Asset Quality Ratios | |||||||
| Non-performing assets as a percent of total assets | 0.43<br> % | 0.32 % | 0.32 % | 0.40 % | 0.48 % | 0.43 % | 0.48 % |
| Net charge-offs as a percent of average<br>loans (annualized) | (0.01) % | — % | 0.07 % | 0.12 % | 0.70 % | 0.04 % | 0.31 % |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | ||
| FINANCIAL TABLES | |||||||
| Loan Information | Table 5 | ||||||
| Dec | Sep | Jun | Mar | Dec | |||
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | ||
| Loans by Type | |||||||
| Commercial, financial and agricultural | $<br> 1,875,993 | $ 1,217,575 | $ 1,406,421 | $ 1,611,029 | $ 1,627,477 | ||
| Consumer<br>installment | 191,298 | 207,111 | 229,411 | 257,097 | 306,995 | ||
| Indirect automobile | 265,779 | 325,057 | 397,373 | 482,637 | 580,083 | ||
| Mortgage warehouse | 787,837 | 768,577 | 841,347 | 880,216 | 916,353 | ||
| Municipal | 572,701 | 624,430 | 647,578 | 659,228 | 659,403 | ||
| Premium Finance | 798,409 | 840,737 | 780,328 | 706,379 | 687,841 | ||
| Real estate - construction and<br>development | 1,452,339 | 1,454,824 | 1,527,883 | 1,533,234 | 1,606,710 | ||
| Real estate - commercial and<br>farmland | 6,834,917 | 6,409,704 | 6,051,472 | 5,616,826 | 5,300,006 | ||
| Real estate -<br>residential | 3,094,985 | 2,976,524 | 2,898,978 | 2,853,159 | 2,796,057 | ||
| Totalloans | $ 15,874,258 | $ 14,824,539 | $ 14,780,791 | $ 14,599,805 | $ 14,480,925 | ||
| Troubled Debt Restructurings | |||||||
| Accruing troubled debt restructurings | |||||||
| Commercial, financial and agricultural | $ <br> 1,286 | $ 1,683 | $ 1,038 | $ 930 | $ 521 | ||
| Consumer<br>installment | 16 | 22 | 28 | 27 | 32 | ||
| Indirect automobile | 1,037 | 1,284 | 1,647 | 1,931 | 2,277 | ||
| Real estate - construction and<br>development | 789 | 887 | 898 | 501 | 506 | ||
| Real estate - commercial and<br>farmland | 35,575 | 43,895 | 46,025 | 43,398 | 36,707 | ||
| Real estate -<br>residential | 26,879 | 29,521 | 31,570 | 33,324 | 38,800 | ||
| Total accruing troubled debtrestructurings | $ 65,582 | $ 77,292 | $ 81,206 | $ 80,111 | $ 78,843 | ||
| Nonaccrualtroubled debt restructurings | |||||||
| Commercial, financial and agricultural | $ <br> 83 | $ 112 | $ 805 | $ 854 | $ 849 | ||
| Consumer<br>installment | 35 | 38 | 43 | 53 | 56 | ||
| Indirect automobile | 273 | 297 | 301 | 321 | 461 | ||
| Real estate - construction and<br>development | 13 | 271 | 301 | 706 | 707 | ||
| Real estate - commercial and<br>farmland | 5,924 | 6,715 | 7,103 | 2,233 | 1,401 | ||
| Real estate -<br>residential | 4,678 | 2,687 | 2,515 | 2,818 | 2,671 | ||
| Total nonaccrual troubled debtrestructurings | $ 11,006 | $ 10,120 | $ 11,068 | $ 6,985 | $ 6,145 | ||
| Total troubled debtrestructurings | $ 76,588 | $ 87,412 | $ 92,274 | $ 87,096 | $ 84,988 | ||
| Loans by Risk Grade | |||||||
| Grades 1 through 5 - Pass | $<br>15,614,323 | $ 14,562,058 | $ 14,477,905 | $ 14,204,219 | $ 14,109,418 | ||
| Grade 6 - Other assets especially<br>mentioned | 78,957 | 87,757 | 100,750 | 135,213 | 108,541 | ||
| Grade 7 -<br>Substandard | 180,978 | 174,724 | 202,134 | 260,369 | 262,947 | ||
| Grade 8 - Doubtful | — | — | — | — | 19 | ||
| Grade 9 - Loss | — | — | 2 | 4 | — | ||
| Totalloans | $ 15,874,258 | $ 14,824,539 | $ 14,780,791 | $ 14,599,805 | $ 14,480,925 | ||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Average Balances | Table 6 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Earning Assets | |||||||
| Federal funds sold | $ <br>20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 22,896 |
| Interest-bearing deposits<br>in banks | 3,719,878 | 3,082,413 | 2,461,092 | 2,145,403 | 879,481 | 2,857,141 | 541,776 |
| Time deposits in other<br>banks | — | — | 244 | 249 | 249 | 122 | 249 |
| Investment securities -<br>taxable | 698,915 | 757,278 | 811,234 | 910,834 | 1,024,335 | 793,883 | 1,206,014 |
| Investment securities -<br>nontaxable | 22,639 | 19,053 | 18,225 | 19,225 | 20,112 | 19,793 | 21,533 |
| Other investments | 31,312 | 27,622 | 27,620 | 27,516 | 31,552 | 28,525 | 62,253 |
| Loans held for sale | 1,365,886 | 1,497,320 | 1,705,167 | 1,284,821 | 1,281,762 | 1,463,614 | 1,497,051 |
| Loans | 15,119,752 | 14,685,878 | 14,549,104 | 14,453,975 | 14,752,664 | 14,703,957 | 14,018,582 |
| Total Earning Assets | $ 20,978,382 | $ 20,089,564 | $ 19,592,686 | $ 18,862,023 | $ 18,010,155 | $ 19,887,035 | $ 17,370,354 |
| Deposits | |||||||
| Noninterest-bearing deposits | $<br> 7,600,284 | $ 7,168,717 | $ 6,874,471 | $ 6,412,268 | $ 5,970,672 | $ 7,017,614 | $ 5,227,399 |
| NOW<br>accounts | 3,651,595 | 3,447,909 | 3,314,334 | 3,182,245 | 2,968,596 | 3,400,441 | 2,605,349 |
| MMDA | 5,209,653 | 4,966,492 | 4,872,500 | 4,761,279 | 4,534,243 | 4,953,748 | 4,259,467 |
| Savings accounts | 928,954 | 908,189 | 876,887 | 823,039 | 793,414 | 884,623 | 719,916 |
| Retail CDs | 1,827,852 | 1,919,184 | 2,005,265 | 2,066,410 | 2,109,600 | 1,953,927 | 2,368,802 |
| Brokered CDs | — | 511 | 1,000 | 1,000 | 1,140 | 625 | 16,494 |
| Total Deposits | 19,218,338 | 18,411,002 | 17,944,457 | 17,246,241 | 16,377,665 | 18,210,978 | 15,197,427 |
| Non-Deposit Funding | |||||||
| Federal funds purchased and securities sold under agreements to repurchase | 5,559 | 5,133 | 6,883 | 9,284 | 9,929 | 6,700 | 12,115 |
| FHLB advances | 48,828 | 48,866 | 48,910 | 48,951 | 127,797 | 48,888 | 849,546 |
| Other borrowings | 468,058 | 376,489 | 376,376 | 376,260 | 376,295 | 399,485 | 297,023 |
| Subordinated deferrable interest<br>debentures | 126,067 | 125,567 | 125,068 | 124,574 | 124,091 | 125,324 | 124,632 |
| Total Non-Deposit Funding | 648,512 | 556,055 | 557,237 | 559,069 | 638,112 | 580,397 | 1,283,316 |
| Total Funding | $ 19,866,850 | $ 18,967,057 | $ 18,501,694 | $ 17,805,310 | $ 17,015,777 | $ 18,791,375 | $ 16,480,743 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Interest Income and Interest Expense (TE) | Table7 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Interest Income | |||||||
| Federal funds sold | $ <br> 9 | $ 9 | $ 12 | $ 12 | $ 13 | $ 42 | $ 147 |
| Interest-bearing deposits in banks | 1,521 | 1,244 | 594 | 521 | 251 | 3,880 | 1,735 |
| Time deposits in other<br>banks | — | — | 1 | 1 | 1 | 2 | 4 |
| Investment securities -<br>taxable | 5,866 | 5,296 | 5,244 | 6,118 | 6,398 | 22,524 | 33,086 |
| Investment securities - nontaxable<br>(TE) | 198 | 176 | 176 | 178 | 190 | 728 | 789 |
| Loans held for sale | 9,433 | 10,618 | 11,773 | 10,827 | 9,705 | 42,651 | 47,760 |
| Loans (TE) | 162,415 | 156,861 | 157,112 | 161,473 | 163,532 | 637,861 | 648,137 |
| Total Earning Assets | $ 179,442 | $ 174,204 | $ 174,912 | $ 179,130 | $ 180,090 | $ 707,688 | $ 731,658 |
| Accretion income (included above) | $ <br> 2,812 | $ 2,948 | $ 4,462 | $ 6,127 | $ 4,688 | $ 16,349 | $ 27,351 |
| Interest Expense | |||||||
| Interest-Bearing Deposits | |||||||
| NOW accounts | $ <br> 864 | $ 808 | $ 816 | $ 926 | $ 1,091 | $ 3,414 | $ 6,524 |
| MMDA | 1,971 | 1,970 | 1,908 | 1,998 | 2,326 | 7,847 | 18,661 |
| Savings accounts | 128 | 129 | 122 | 124 | 143 | 503 | 559 |
| Retail CDs | 1,715 | 2,195 | 2,921 | 3,744 | 5,301 | 10,575 | 32,985 |
| Brokered CDs | — | 4 | 8 | 6 | 9 | 18 | 338 |
| Total Interest-BearingDeposits | 4,678 | 5,106 | 5,775 | 6,798 | 8,870 | 22,357 | 59,067 |
| Non-DepositFunding | |||||||
| Federal funds purchased and securities sold under agreements to repurchase | 4 | 4 | 5 | 7 | 8 | 20 | 82 |
| FHLB advances | 195 | 195 | 193 | 192 | 245 | 775 | 7,701 |
| Other borrowings | 5,317 | 4,640 | 4,683 | 4,638 | 4,635 | 19,278 | 15,191 |
| Subordinated deferrable interest<br>debentures | 1,334 | 1,440 | 1,243 | 1,338 | 1,569 | 5,355 | 6,709 |
| Total Non-DepositFunding | 6,850 | 6,279 | 6,124 | 6,175 | 6,457 | 25,428 | 29,683 |
| Total Interest-BearingFunding | $ 11,528 | $ 11,385 | $ 11,899 | $ 12,973 | $ 15,327 | $ 47,785 | $ 88,750 |
| Net Interest Income (TE) | $ 167,914 | $ 162,819 | $ 163,013 | $ 166,157 | $ 164,763 | $ 659,903 | $ 642,908 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Yields^(1)^ | Table 8 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | |
| Earning Assets | |||||||
| Federal funds sold | 0.18 <br>% | 0.18 % | 0.24 % | 0.24 % | 0.26 % | 0.21 % | 0.64 % |
| Interest-bearing deposits<br>in banks | 0.16 % | 0.16 % | 0.10 % | 0.10 % | 0.11 % | 0.14 % | 0.32 % |
| Time deposits in other<br>banks | — % | — % | 1.64 % | 1.63 % | 1.60 % | 1.64 % | 1.61 % |
| Investment securities -<br>taxable | 3.33 % | 2.77 % | 2.59 % | 2.72 % | 2.48 % | 2.84 % | 2.74 % |
| Investment securities -<br>nontaxable (TE) | 3.47 % | 3.66 % | 3.87 % | 3.75 % | 3.76 % | 3.68 % | 3.66 % |
| Loans held for<br>sale | 2.74 % | 2.81 % | 2.77 % | 3.42 % | 3.01 % | 2.91 % | 3.19 % |
| Loans<br>(TE) | 4.26 % | 4.24 % | 4.33 % | 4.53 % | 4.41 % | 4.34 % | 4.62 % |
| Total Earning Assets | 3.39 % | 3.44 % | 3.58 % | 3.85 % | 3.98 % | 3.56 % | 4.21 % |
| Interest-Bearing Deposits | |||||||
| NOW accounts | 0.09 <br>% | 0.09 % | 0.10 % | 0.12 % | 0.15 % | 0.10 % | 0.25 % |
| MMDA | 0.15 % | 0.16 % | 0.16 % | 0.17 % | 0.20 % | 0.16 % | 0.44 % |
| Savings<br>accounts | 0.05 % | 0.06 % | 0.06 % | 0.06 % | 0.07 % | 0.06 % | 0.08 % |
| Retail<br>CDs | 0.37 % | 0.45 % | 0.58 % | 0.73 % | 1.00 % | 0.54 % | 1.39 % |
| Brokered<br>CDs | — % | 3.11 % | 3.21 % | 2.43 % | 3.14 % | 2.88 % | 2.05 % |
| Total Interest-BearingDeposits | 0.16 % | 0.18 % | 0.21 % | 0.25 % | 0.34 % | 0.20 % | 0.59 % |
| Non-Deposit Funding | |||||||
| Federal funds purchased and securities sold under agreements to repurchase | 0.29 % | 0.31 % | 0.29 % | 0.31 % | 0.32 % | 0.30 % | 0.68 % |
| FHLB<br>advances | 1.58 % | 1.58 % | 1.58 % | 1.59 % | 0.76 % | 1.59 % | 0.91 % |
| Other<br>borrowings | 4.51 % | 4.89 % | 4.99 % | 5.00 % | 4.90 % | 4.83 % | 5.11 % |
| Subordinated deferrable<br>interest debentures | 4.20 % | 4.55 % | 3.99 % | 4.36 % | 5.03 % | 4.27 % | 5.38 % |
| Total Non-Deposit Funding | 4.19 % | 4.48 % | 4.41 % | 4.48 % | 4.03 % | 4.38 % | 2.31 % |
| Total Interest-BearingLiabilities | 0.37 % | 0.38 % | 0.41 % | 0.46 % | 0.55 % | 0.41 % | 0.79 % |
| Net Interest Spread | 3.02 % | 3.06 % | 3.17 % | 3.39 % | 3.43 % | 3.15 % | 3.42 % |
| Net Interest Margin^(2)^ | 3.18 % | 3.22 % | 3.34 % | 3.57 % | 3.64 % | 3.32 % | 3.70 % |
| Total Cost of Funds^(3)^ | 0.23 % | 0.24 % | 0.26 % | 0.30 % | 0.36 % | 0.25 % | 0.54 % |
| (1) Interest and average rates are calculated on a<br>tax-equivalent basis using an effective tax rate of 21%. | |||||||
| (2) Rate calculated based on average earning assets. | |||||||
| (3) Rate calculated based on total average funding including noninterest-bearing deposits. | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Non-GAAP Reconciliations | |||||||
| Adjusted Net Income | Table 9A | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands except per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Net income available to common shareholders | $ 81,944 | $ 81,680 | $ 88,327 | $ 124,962 | $ 94,285 | $ 376,913 | $ 261,988 |
| Adjustment items: | |||||||
| Merger and conversion charges | 4,023 | 183 | — | — | — | 4,206 | 1,391 |
| Restructuring charges | — | — | — | — | — | — | 1,513 |
| Servicing right impairment<br>(recovery) | (4,540) | 1,398 | (749) | (10,639) | 9,501 | (14,530) | 40,067 |
| Gain on BOLI proceeds | — | — | — | (603) | — | (603) | (948) |
| Expenses related to SEC and DOJ<br>Investigation | — | — | — | — | 53 | — | 3,058 |
| Natural disaster and pandemic charges (Note<br>1) | — | — | — | — | 235 | — | 3,296 |
| (Gain) loss on bank<br>premises | (126) | 1,136 | (236) | (264) | (30) | 510 | 624 |
| Tax effect of adjustment items (Note<br>2) | 243 | (536) | 206 | 2,290 | (2,049) | 2,203 | (10,488) |
| After tax adjustment items | (400) | 2,181 | (779) | (9,216) | 7,710 | (8,214) | 38,513 |
| Adjusted net income | $ 81,544 | $ 83,861 | $ 87,548 | $ 115,746 | $ 101,995 | $ 368,699 | $ 300,501 |
| Weighted average number of shares - diluted | 69,738,426 | 69,756,135 | 69,791,670 | 69,740,860 | 69,493,105 | 69,761,394 | 69,426,185 |
| Net income per diluted share | $ 1.18 | $ 1.17 | $ 1.27 | $ 1.79 | $ 1.36 | $ 5.40 | $ 3.77 |
| Adjusted net income per diluted share | $ 1.17 | $ 1.20 | $ 1.25 | $ 1.66 | $ 1.47 | $ 5.29 | $ 4.33 |
| Average assets | $ 23,054.847 | $ 22,087.642 | $ 21,538,894 | $ 20,734,414 | $ 19,876,338 | $ 21,847,731 | $ 19,240,493 |
| Return on average assets | 1.41 % | 1.47 % | 1.64 % | 2.44 % | 1.89 % | 1.73 % | 1.36 % |
| Adjusted return on average assets | 1.40 % | 1.51 % | 1.63 % | 2.26 % | 2.04 % | 1.69 % | 1.56 % |
| Average common equity | $ 2,939.507 | $ 2,874.691 | $ 2,798,269 | $ 2,695,005 | $ 2,622,942 | $ 2,827,669 | $ 2,531,419 |
| Average tangible common<br>equity | $ 1,916,783 | $ 1,884,622 | $ 1,804,324 | $ 1,696,946 | $ 1,620,742 | $ 1,826,433 | $ 1,520,303 |
| Return on average common<br>equity | 11.06 % | 11.27 % | 12.66 % | 18.80 % | 14.30 % | 13.33 % | 10.35 % |
| Adjusted return on average tangible common equity | 16.88 % | 17.65 % | 19.46 % | 27.66 % | 25.04 % | 20.19 % | 19.77 % |
| Note 1: Pandemic charges include "thank you" pay for certain employees, additional sanitizing expenses at our locations, protective equipment for our employees and branch locations, and additional equipment required to support our remote workforce. | |||||||
| --- | |||||||
| Note 2: Tax effect is calculated utilizing a 21% rate for taxable adjustments. Gain on BOLI proceeds is non-taxable and no tax effect is included. A portion of the merger and conversion charges for 4Q21, 3Q21 and both year-to-date periods are nondeductible for tax purposes. | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Non-GAAP Reconciliations (continued) | |||||||
| Adjusted Efficiency Ratio (TE) | Table9B | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Adjusted Noninterest Expense | |||||||
| Total noninterest expense | $ 138,369 | $ 137,196 | $ 135,761 | $ 148,798 | $ 151,116 | $ 560,124 | $ 598,629 |
| Adjustment items: | |||||||
| Merger and conversion charges | (4,023) | (183) | — | — | — | (4,206) | (1,391) |
| Restructuring<br>charges | — | — | — | — | — | — | (1,513) |
| Expenses related to SEC and DOJ<br>Investigation | — | — | — | — | (53) | — | (3,058) |
| Natural disaster and pandemic<br>charges | — | — | — | — | (235) | — | (3,296) |
| Gain (loss) on bank<br>premises | 126 | (1,136) | 236 | 264 | 30 | (510) | (624) |
| Adjusted noninterest expense | $ 134,472 | $ 135,877 | $ 135,997 | $ 149,062 | $ 150,858 | $ 555,408 | $ 588,747 |
| Total Revenue | |||||||
| Net interest income | $ 166,837 | $ 161,661 | $ 161,852 | $ 164,977 | $ 163,456 | $ 655,327 | $ 637,753 |
| Noninterest income | 81,769 | 76,562 | 89,240 | 117,973 | 112,143 | 365,544 | 446,500 |
| Total revenue | $ 248,606 | $ 238,223 | $ 251,092 | $ 282,950 | $ 275,599 | $ 1,020,871 | $ 1,084,253 |
| Adjusted Total Revenue | |||||||
| Net interest income (TE) | $ 167,914 | $ 162,819 | $ 163,013 | $ 166,157 | $ 164,763 | $ 659,903 | $ 642,908 |
| Noninterest income | 81,769 | 76,562 | 89,240 | 117,973 | 112,143 | 365,544 | 446,500 |
| Total revenue (TE) | 249,683 | 239,381 | 252,253 | 284,130 | 276,906 | 1,025,447 | 1,089,408 |
| Adjustment items: | |||||||
| (Gain) loss on securities | 4 | (530) | (1) | 12 | — | (515) | (5) |
| Gain on BOLI proceeds | — | — | — | (603) | — | (603) | (948) |
| Servicing right impairment<br>(recovery) | (4,540) | 1,398 | (749) | (10,639) | 9,501 | (14,530) | 40,067 |
| Adjusted total revenue (TE) | $ 245,147 | $ 240,249 | $ 251,503 | $ 272,900 | $ 286,407 | $ 1,009,799 | $ 1,128,522 |
| Efficiency ratio | 55.66 <br> % | 57.59 % | 54.07 % | 52.59 % | 54.83 % | 54.87 % | 55.21 % |
| Adjusted efficiency ratio(TE) | 54.85 % | 56.56 % | 54.07 % | 54.62 % | 52.67 % | 55.00 % | 52.17 % |
| Tangible Book Value Per Share | Table9C | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands except per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Total shareholders' equity | $ 2,966,451 | $ 2,900,770 | $ 2,837,004 | $ 2,757,596 | $ 2,647,088 | $ 2,966,451 | $ 2,647,088 |
| Less: | |||||||
| Goodwill | 1,012,620 | 928,005 | 928,005 | 928,005 | 928,005 | 1,012,620 | 928,005 |
| Other intangibles,<br>net | 125,938 | 60,396 | 63,783 | 67,848 | 71,974 | 125,938 | 71,974 |
| Total tangible shareholders' equity | $ 1,827,893 | $ 1,912,369 | $ 1,845,216 | $ 1,761,743 | $ 1,647,109 | $ 1,827,893 | $ 1,647,109 |
| Period end number of shares | 69,608,228 | 69,635,435 | 69,767,209 | 69,713,426 | 69,541,481 | 69,608,228 | 69,541,481 |
| Book value per share (period end) | $ 42.62 | $ 41.66 | $ 40.66 | $ 39.56 | $ 38.07 | $ 42.62 | $ 38.07 |
| Tangible book value per share (period end) | $ 26.26 | $ 27.46 | $ 26.45 | $ 25.27 | $ 23.69 | $ 26.26 | $ 23.69 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Segment Reporting | Table 10 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| Banking Division | |||||||
| Net interest income | $<br> 120,572 | $ 113,524 | $ 110,670 | $ 112,816 | $ 112,964 | $ 457,582 | $ 471,231 |
| Provision for credit<br>losses | 4,565 | (9,578) | (3,949) | (23,904) | 1,847 | (32,866) | 125,136 |
| Noninterest income | 18,859 | 17,896 | 16,171 | 16,738 | 15,659 | 69,664 | 63,165 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 36,522 | 40,020 | 37,814 | 42,723 | 38,668 | 157,079 | 160,430 |
| Occupancy and equipment<br>expenses | 11,699 | 10,196 | 9,050 | 10,120 | 10,958 | 41,065 | 44,939 |
| Data processing and telecommunications<br>expenses | 10,162 | 9,159 | 10,280 | 10,201 | 9,608 | 39,802 | 39,040 |
| Other noninterest<br>expenses | 24,048 | 21,723 | 18,763 | 19,710 | 25,806 | 84,244 | 105,965 |
| Total noninterest<br>expense | 82,431 | 81,098 | 75,907 | 82,754 | 85,040 | 322,190 | 350,374 |
| Income before income tax<br>expense | 52,435 | 59,900 | 54,883 | 70,704 | 41,736 | 237,922 | 58,886 |
| Income tax expense | 14,010 | 17,784 | 14,196 | 18,456 | 13,992 | 64,446 | 19,138 |
| Net income | $ 38,425 | $ 42,116 | $ 40,687 | $ 52,248 | $ 27,744 | $ 173,476 | $ 39,748 |
| Retail Mortgage Division | |||||||
| Net interest income | $ <br> 19,912 | $ 21,289 | $ 22,533 | $ 18,984 | $ 19,908 | $ 82,718 | $ 82,359 |
| Provision for credit<br>losses | 175 | 1,678 | 5,647 | (4,553) | (1,621) | 2,947 | 15,850 |
| Noninterest income | 59,650 | 55,555 | 69,055 | 97,640 | 94,109 | 281,900 | 370,256 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 36,787 | 36,373 | 44,798 | 49,838 | 50,165 | 167,796 | 184,765 |
| Occupancy and equipment<br>expenses | 1,587 | 1,590 | 1,553 | 1,476 | 1,577 | 6,206 | 6,710 |
| Data processing and telecommunications<br>expenses | 1,213 | 1,357 | 1,435 | 1,546 | 1,534 | 5,551 | 6,275 |
| Other noninterest<br>expenses | 10,793 | 11,675 | 7,638 | 8,189 | 7,442 | 38,295 | 28,155 |
| Total noninterest<br>expense | 50,380 | 50,995 | 55,424 | 61,049 | 60,718 | 217,848 | 225,905 |
| Income before income tax<br>expense | 29,007 | 24,171 | 30,517 | 60,128 | 54,920 | 143,823 | 210,860 |
| Income tax expense | 6,092 | 5,076 | 6,408 | 12,627 | 11,535 | 30,203 | 44,286 |
| Net income | $ 22,915 | $ 19,095 | $ 24,109 | $ 47,501 | $ 43,385 | $ 113,620 | $ 166,574 |
| Warehouse Lending Division | |||||||
| Net interest income | $ <br> 8,063 | $ 8,712 | $ 8,720 | $ 9,906 | $ 9,017 | $ 35,401 | $ 23,891 |
| Provision for credit<br>losses | 77 | (291) | (155) | (145) | 1,673 | (514) | 2,562 |
| Noninterest income | 1,253 | 1,037 | 1,333 | 980 | 1,113 | 4,603 | 3,864 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 258 | 264 | 278 | 330 | 296 | 1,130 | 981 |
| Occupancy and equipment<br>expenses | 1 | — | 1 | 1 | 1 | 3 | 4 |
| Data processing and telecommunications<br>expenses | 56 | 59 | 68 | 49 | 101 | 232 | 270 |
| Other noninterest<br>expenses | 227 | 200 | 30 | 33 | 26 | 490 | 176 |
| Total noninterest<br>expense | 542 | 523 | 377 | 413 | 424 | 1,855 | 1,431 |
| Income before income tax<br>expense | 8,697 | 9,517 | 9,831 | 10,618 | 8,033 | 38,663 | 23,762 |
| Income tax expense | 1,827 | 1,999 | 2,064 | 2,230 | 1,687 | 8,120 | 5,004 |
| Net income | $ 6,870 | $ 7,518 | $ 7,767 | $ 8,388 | $ 6,346 | $ 30,543 | $ 18,758 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Segment Reporting (continued) | Table10 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||
| Dec | Sep | Jun | Mar | Dec | Dec | Dec | |
| (dollars in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 |
| SBA Division | |||||||
| Net interest income | $ <br> 11,319 | $ 10,699 | $ 12,882 | $ 16,635 | $ 14,909 | $ 51,535 | $ 33,090 |
| Provision for credit<br>losses | (663) | (1,104) | (607) | (547) | (2,997) | (2,921) | 2,719 |
| Noninterest income | 2,002 | 2,070 | 2,677 | 2,611 | 1,247 | 9,360 | 9,200 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 1,217 | 1,320 | 937 | 1,382 | 1,233 | 4,856 | 6,893 |
| Occupancy and equipment<br>expenses | 121 | 116 | 132 | 106 | 100 | 475 | 391 |
| Data processing and telecommunications<br>expenses | 28 | 18 | — | 1 | 1 | 47 | 33 |
| Other noninterest<br>expenses | 645 | 370 | 284 | 295 | 363 | 1,594 | 1,832 |
| Total noninterest<br>expense | 2,011 | 1,824 | 1,353 | 1,784 | 1,697 | 6,972 | 9,149 |
| Income before income tax<br>expense | 11,973 | 12,049 | 14,813 | 18,009 | 17,456 | 56,844 | 30,422 |
| Income tax expense | 2,514 | 2,530 | 3,111 | 3,782 | 3,666 | 11,937 | 6,389 |
| Net income | $ 9,459 | $ 9,519 | $ 11,702 | $ 14,227 | $ 13,790 | $ 44,907 | $ 24,033 |
| Premium Finance Division | |||||||
| Net interest income | $ <br> 6,971 | $ 7,437 | $ 7,047 | $ 6,636 | $ 6,658 | $ 28,091 | $ 27,182 |
| Provision for credit<br>losses | (1,395) | (380) | (794) | 558 | (412) | (2,011) | (887) |
| Noninterest income | 5 | 4 | 4 | 4 | 15 | 17 | 15 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 1,831 | 1,694 | 1,678 | 1,712 | 2,104 | 6,915 | 7,209 |
| Occupancy and equipment<br>expenses | 86 | 77 | 76 | 78 | 73 | 317 | 305 |
| Data processing and telecommunications<br>expenses | 75 | 88 | 94 | 87 | 79 | 344 | 399 |
| Other noninterest<br>expenses | 1,013 | 897 | 852 | 921 | 981 | 3,683 | 3,857 |
| Total noninterest<br>expense | 3,005 | 2,756 | 2,700 | 2,798 | 3,237 | 11,259 | 11,770 |
| Income before income tax<br>expense | 5,366 | 5,065 | 5,145 | 3,284 | 3,848 | 18,860 | 16,314 |
| Income tax expense | 1,091 | 1,633 | 1,083 | 686 | 828 | 4,493 | 3,439 |
| Net income | $ 4,275 | $ 3,432 | $ 4,062 | $ 2,598 | $ 3,020 | $ 14,367 | $ 12,875 |
| Total Consolidated | |||||||
| Net interest income | $<br> 166,837 | $ 161,661 | $ 161,852 | $ 164,977 | $ 163,456 | $ 655,327 | $ 637,753 |
| Provision for credit<br>losses | 2,759 | (9,675) | 142 | (28,591) | (1,510) | (35,365) | 145,380 |
| Noninterest income | 81,769 | 76,562 | 89,240 | 117,973 | 112,143 | 365,544 | 446,500 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 76,615 | 79,671 | 85,505 | 95,985 | 92,466 | 337,776 | 360,278 |
| Occupancy and equipment<br>expenses | 13,494 | 11,979 | 10,812 | 11,781 | 12,709 | 48,066 | 52,349 |
| Data processing and telecommunications<br>expenses | 11,534 | 10,681 | 11,877 | 11,884 | 11,323 | 45,976 | 46,017 |
| Other noninterest<br>expenses | 36,726 | 34,865 | 27,567 | 29,148 | 34,618 | 128,306 | 139,985 |
| Total noninterest<br>expense | 138,369 | 137,196 | 135,761 | 148,798 | 151,116 | 560,124 | 598,629 |
| Income before income tax<br>expense | 107,478 | 110,702 | 115,189 | 162,743 | 125,993 | 496,112 | 340,244 |
| Income tax expense | 25,534 | 29,022 | 26,862 | 37,781 | 31,708 | 119,199 | 78,256 |
| Net income | $ 81,944 | $ 81,680 | $ 88,327 | $ 124,962 | $ 94,285 | $ 376,913 | $ 261,988 |
CONTACT: Nicole S. Stokes, Chief Financial Officer, (404) 240-1514
4th Quarter 2021 Results Investor Presentation Exhibit 99.2
Cautionary Statements 1 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; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; 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, 2020 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.
Ameris Profile Operating Strength Diversification Historically top quartile adjusted return on assets (> 1.50% for last three years) Focus on expense control and improved operating efficiency Strong liquidity and continued funding opportunities Culture of disciplined banking Summary Experienced executive team with an average of 27 years banking experience in our market area Largest publicly traded bank headquartered in Atlanta, Georgia Premier Southeastern markets with attractive core deposit base Skills and leadership to continue to grow organically Capital levels to support opportunistic transactions Geographic diversification Diversified loan portfolio across product lines CRE concentrations are moderate Conservative credit culture with low levels of NPAs 2
4th Quarter 2021 Financial Results
Earnings Summary 4 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
4Q 2021 Operating Highlights 5 Net income of $81.9 million, or $1.18 per diluted share Adjusted net income(1) of $81.5 million, or $1.17 per diluted share Organic loan growth(2) of $383.9 million, or 10.4% annualized (and $536.6 million, or 14.8% annualized, exclusive of PPP loans), during 4Q21
Adjusted efficiency ratio(1) of 54.85%, compared with 56.56% in 3Q21
Adjusted ROA(1) of 1.40%, compared with 1.51% in 3Q21
Adjusted ROTCE(1) of 16.88%, compared with 17.65% in 3Q21
Net interest margin of 3.18%, compared with 3.22% in 3Q21; decrease is attributable to an increase in excess liquidity held on the balance sheet
Successfully completed the acquisition of Balboa Capital Corporation, a point of sale and direct online provider of lending solutions to small and mid-sized businesses nationwide, in December 2021
1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Exclusive of loans acquired from Balboa Capital
2021 YTD Operating Highlights 6 Net income of $376.9 million, or $5.40 per diluted share
Adjusted net income(1) of $368.7 million, or $5.29 per diluted share
Adjusted efficiency ratio(1) of 55.00%, compared with 52.17% for 2020
Adjusted ROA(1) of 1.69%, compared with 1.56% for 2020
Adjusted ROTCE(1) of 20.19%, compared with 19.77% for 2020
Net interest margin of 3.32%, compared with 3.70% for 2020; decrease attributable to excess liquidity held on the balance sheet during 2021
Organic loan growth(2) of $727.5 million, or 5.0% (and $1.42 billion, or 10.5%, exclusive of PPP loans), in 2021
Non-performing assets decreased five basis points to 0.43% of total assets, compared with 0.48% at December 31, 2020
Improvement in deposit mix such that noninterest-bearing deposits represent 39.54% of total deposits, up from 36.27% at 4Q20
1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Exclusive of loans acquired from Balboa Capital
Operating Highlights 7 Considered a Non-GAAP measure – See reconciliation of GAAP to Non-GAAP measures in Appendix
Growth rates are annualized for the applicable periods
Net Interest Margin 8 Average earning assets up $888.8 million, while spread income increased $5.1 million compared with 3Q21 Margin down 4bps from 3Q21: 7bps due to growth in excess liquidity Offset by 1bp improvement in funding costs 2bps from $763,000 increase in PPP income ($9.4 million in 4Q21 compared with $8.6 million in 3Q21) Continued focus on low cost funding mix such that noninterest bearing deposits are 40% of total deposits at quarter end Excluding accretion and PPP income, net interest income increased $4.5 million in 4Q21 compared to 3Q21:
Excludes the impact of excess liquidity (average interest-bearing cash balances above $500 million) Spread Income and Margin:
Noninterest Income 9 Noninterest Income Mortgage banking Revenue increased $4.1 million, or 7.4%, in 4Q21 compared with 3Q21 Production decreased $239.4 million, or 11.6%, over the same period Gain on sale margin increased to 3.27% in 4Q21 compared with 3.17% in 3Q21 4Q21 included a net recovery of servicing right impairment of $4.5 million, compared with an impairment of $1.4 million in 3Q21 SBA Gain on sale of loans was stable at $1.6 million in 4Q21 compared with 3Q21 Other noninterest income Increase in BOLI income of $207,000 compared with 3Q21 Decrease in securities gains of $535,000 primarily related to the sale of one security in 3Q21 Fee income from Balboa Capital added $1.1 million in 4Q21 Noninterest Income Highlights: Noninterest Income Trends
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights: 10 Total adjusted operating expenses decreased $1.4 million in 4Q21 compared with 3Q21 Decrease of $1.2 million in 4Q21 Banking division operating expenses primarily due to: $3.5 million decrease in salaries and employee benefits primarily related to an increase in deferred origination costs and decreased stock-based compensation, partially offset by $1.3 million from Balboa Capital $353,000 decrease in advertising and marketing expenses Offset by a $1.8 million increase in occupancy and equipment expense, primarily related to real estate taxes and building maintenance Lines of business operating expenses were approximately flat at $55.9 million in 4Q21 compared with $56.1 million in 3Q21 Continue to drive expense control behaviors throughout the Company to fund future technology and innovation costs 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Retail Mortgage Division Details 11 Rationalization and Stabilization of Mortgage Operations:
Retail mortgage originations represent 13% of the Company’s adjusted pre-provision, pre-tax income for 4Q21, down from 50% this time last year Approximately 80% of costs are variable costs relative to production: Additional expense reduction is expected in 1Q22 due to 12% reduction in production from 3Q21 to 4Q21 35% reduction in production from 4Q20 to 4Q21 coincides with 17% reduction in noninterest expense over the same time period plus expected additional expense reduction in 1Q22 due to recent production decline Gain on sale margins returned to normalized levels in 2021 the reduction compared with 4Q20 does not impact variable costs Purchase % is returning closer to normal levels Historically ran 85-90% purchase activity Two most recent quarters are 66% and 62% as refi boom is slowing, compared with 46% this time last year Consistent purchase business due to strong core relationships with builders and realtors
Balance Sheet Trends 12
Capital and TBV Management Focus on TBV Steady Capital Levels Support Growth Rate 13 Management focused on long term growth in TBV TBV decreased $1.20 per share in 4Q21: ($2.21) from impact of Balboa Capital acquisition ($0.02) from all other items including stock compensation, share repurchases and OCI Offset by $1.03 from retained earnings TBV increased $2.57 per share, or 10.8%, compared with 4Q20 TCE / TA at quarter end of 8.05%, down from 8.88% at the end of 3Q21 primarily due to Balboa Capital acquisition offset by retained earnings Excess liquidity impacted TCE/TA by 135bps at quarter end Proforma TCE/TA excluding excess liquidity of 9.39% 4Q21 Adjusted ROTCE of 16.88% 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Loan Diversification and Credit Quality
Diversified Loan Portfolio 4Q21 Loan Portfolio 15 Loan portfolio is well diversified across loan types & geographies
C&I loans represent second-largest category of loans Balboa Capital totaled $689.2 million at YE21, which added ~3% to this category
Average loan size is $112.3 thousand across all loan types
Organic loan growth for 4Q21, excluding acquired loans from Balboa Capital, was 10.4%. For 2021, loan growth was 5.0%
CRE and C&D concentrations were 293% and 67%, respectively, at 4Q21
Participations purchased remain < 1% of loans
Loan Growth 4Q21 Loan Balance Changes 16 4Q21 loan growth totaled $1.1 billion. Net of Balboa Capital acquired loans, growth was $383.9 million, or 10.4% annualized
Growth was primarily driven by Investor CRE and Residential Mortgages. Almost 22% ($94.2 million) of CRE growth was attributable to a change from the Construction category (C&D) as projects were completed during the quarter
PPP loan forgiveness ($146.8 million) and Indirect amortization ($59.3 million) slowed during the 4Q21 as compared to prior periods
Allowance for Loan Losses 17 The ALLL totaled $167.6 million at 4Q21, a net decrease of $3.6 million, or 2%, from 3Q21
The reserve for unfunded commitments totaled $33.2 million, an increase of $10.9 million, or 49%, from 3Q21
The portion of the ALLL attributable to Balboa Capital was comprised of $9.1 million specific reserve against purchased credit deteriorated loans and $7.6 million general reserve
During 4Q21, we recorded a provision expense of $2.8 million, primarily the result of an increase in the reserve for unfunded commitments and an increase in modeled loss rates
The 4Q21 ALLL equated to 1.06% of total loans and 1.18%, net of PPP loans. The ACL totaled $200.8 million, or 0.99% of total loans + unfunded commitments 4Q21 CECL Reserve
NPA / Charge-Off Trend 18 Non-Performing Assets (“NPAs”) increased $30.8 million, to $101.9 million at 4Q21, primarily as a result of: $25.0 million increase in 90+ past due GNMA and Portfolio Mortgage loans $9.6 million of purchased credit deteriorated loans from the acquisition of Balboa Capital OREO sales and other collections and recoveries reduced NPAs by $7.1 million
As a percentage of Total Assets, Total NPAs were 0.43% Net recoveries for 4Q21 totaled $556,000, which equated to an annualized NCO ratio of -0.01% for the quarter and 0.04% YTD Non-Performing Assets Low Net Charge-Offs
Problem Loan Trends 19 Total Classified Loans increased $6.3 million, primarily the result of increased 90+ past due GNMA and Portfolio Mortgage loans, and purchased credit deteriorated loans added via the acquisition of Balboa Capital
Criticized Loans (Special Mention + Classified) decreased $2.5 million
Non-Performing Loans increased $31.6 million to $98.0 million, primarily as a result of the higher 90+ past due mortgage loans and purchased credit deteriorated loans acquired from Balboa Capital
Investor CRE Loans 20 Approximately 92% of CRE loans are concentrated within our five-state footprint, primarily in the Bank’s primary MSAs of Atlanta, Jacksonville, Orlando, Charleston, Tampa and Greenville
Commercial Real Estate Production 4Q21 Commercial Real Estate Production Summary: 21 4Q21 Construction and Development Loan Production Summary: 4Q21 production of C&D and CRE loans - $2.00 billion in total committed exposure
Residential Real Estate Construction: Spec/model to pre-sold ratio of 0.2:1
Total spec loans at low average loan size of $301.0 thousand
Investor CRE 4Q21 production: Production totaled $1.26 billion Weighted Average 1.71:1 debt service coverage Weighted Average 58.3% loan/value
Summary of CRE Production by Collateral State
22 C&I Loans
US Premium Finance 4Q21 production statistics:
Balboa Capital acquisition in 4Q21 Day 1 loans totaled $665.8 million Loan production was $23.4 million between Day 1 and YE21 YE21 loans totaled $689.2 million
Mortgage Warehouse Division funded $3.2 billion in 4Q21, a 31% decrease over 4Q20 as the refinance boom continues to subside 4Q21 Statistics: Total approved guidance lines = $1.7 billion Average days on line = 16 days No losses since 2016
Appendix
24 Reconciliation of GAAP to Non-GAAP Measures
25 Reconciliation of GAAP to Non-GAAP Measures
26 Reconciliation of GAAP to Non-GAAP Measures
Ameris Bancorp Press Release & Financial Highlights December 31, 2021