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): | July 27, 2020 | |
|---|---|---|
| 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 2.02 Results of Operations and Financial Condition.
On July 27, 2020, Ameris Bancorp (the “Company”) issued a press release announcing its unaudited financial results for the quarter ended June 30, 2020. 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 7.01 Regulation 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 July 27, 2020 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 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
|---|---|
| 99.1 | Press release dated July 27, 2020 |
| 99.2 | Investor Presentation re: 2^nd^ Quarter 2020 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: July 27, 2020
Exhibit 99.1
Ameris Bancorp Announces Financial Results For Second Quarter 2020
ATLANTA, July 27, 2020 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $32.2 million, or $0.47 per diluted share, for the quarter ended June 30, 2020, compared with $38.9 million, or $0.82 per diluted share, for the quarter ended June 30, 2019. The decrease in net income is primarily attributable to increases in provision for credit loss expense of $83.5 million and salaries and employee benefits of $19.2 million, partially offset by an increase of $86.4 million in mortgage banking activity compared with the second quarter of 2019. The Company reported adjusted net income of $42.4 million, or $0.61 per diluted share, for the quarter ended June 30, 2020, compared with $45.2 million, or $0.96 per diluted share, for the same period in 2019. 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, loss on sale of bank premises and expenses related to natural disasters and the COVID-19 pandemic.
For the year-to-date period ending June 30, 2020, the Company reported net income of $51.6 million, or $0.74 per diluted share, compared with $78.8 million, or $1.66 per diluted share, for the same period in 2019. The Company reported adjusted net income of $81.6 million, or $1.18 per diluted share, for the six months ended June 30, 2020, compared with $87.8 million, or $1.85 per diluted share, for the same period in 2019. Adjusted net income for the year-to-date period excludes the same items listed above for the Company's quarter-to-date period.
Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "The challenges of COVID-19 and the global economy certainly affect how we do business, but our bankers have quickly adapted to the new operating environment. We successfully managed deposit costs to improve the margin by 13 basis points, allowing us to fund over $1.4 billion in new loan growth (including PPP loans), and our mortgage division continued to see historic production and profitability. We increased our allowance for credit losses on loans to over $208 million, while still earning $32 million for the quarter. We believe we are properly positioned for the future."
Significant items from the Company's results for the second quarter of 2020 include the following:
- Net income of $32.2 million, or $0.47 per diluted share, compared with $19.3 million, or $0.28 per diluted share, in the first quarter of 2020
- Growth in adjusted total revenue of $67.7 million, or 30.0%, compared with the first quarter of 2020
- Increase in income from mortgage banking activity of $69.6 million compared with the first quarter of 2020
- Adjusted efficiency ratio of 51.08%, compared with 59.87% in the first quarter of 2020
- Net interest margin of 3.83%, compared with 3.70% in the first quarter of 2020
- Adjusted return on average assets of 0.89%, compared with 0.87% in the first quarter of 2020
- Improvement in deposit mix such that noninterest bearing deposits represent 35.89% of total deposits, up from 29.94% at December 31, 2019 and 28.92% a year ago
- Annualized net charge-offs of 0.27% of average total loans
- Non-performing assets of 0.59% of total assets, compared with 0.56% at the end of 2019
Following is a summary of the adjustments between reported net income and adjusted net income:
| Adjusted Net Income Reconciliation | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| (dollars in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||
| Net income available to common<br>shareholders | $ | 32,236 | $ | 38,904 | $ | 51,558 | $ | 78,809 | ||||
| Adjustment items: | ||||||||||||
| Merger and conversion charges | 895 | 3,475 | 1,435 | 5,532 | ||||||||
| Restructuring charges | 1,463 | — | 1,463 | 245 | ||||||||
| Servicing right impairment | 7,989 | 1,460 | 30,154 | 1,460 | ||||||||
| Natural disaster and pandemic charges | 2,043 | 50 | 2,591 | (39) | ||||||||
| Gain on BOLI proceeds | (845) | — | (845) | — | ||||||||
| Expenses related to SEC and DOJ investigation | 1,294 | — | 2,737 | — | ||||||||
| Loss on sale of premises | 281 | 2,800 | 751 | 3,719 | ||||||||
| Tax effect of adjustment items | (2,933) | (1,479) | (8,216) | (1,929) | ||||||||
| After-tax adjustment items | 10,187 | 6,306 | 30,070 | 8,988 | ||||||||
| Adjusted net income | $ | 42,423 | $ | 45,210 | $ | 81,628 | $ | 87,797 | ||||
| Reported net income per diluted share | $ | 0.47 | $ | 0.82 | $ | 0.74 | $ | 1.66 | ||||
| Adjusted net income per diluted share | $ | 0.61 | $ | 0.96 | $ | 1.18 | $ | 1.85 | ||||
| Reported return on average assets | 0.67 | % | 1.34 | % | 0.56 | % | 1.38 | % | ||||
| Adjusted return on average assets | 0.89 | % | 1.56 | % | 0.88 | % | 1.54 | % | ||||
| Reported return on average common equity | 5.23 | % | 10.27 | % | 4.17 | % | 10.60 | % | ||||
| Adjusted return on average tangible common equity | 11.66 | % | 18.79 | % | 11.18 | % | 18.81 | % |
Net Interest Income and Net Interest MarginNet interest income on a tax-equivalent basis for the second quarter of 2020 totaled $165.2 million, compared with $149.0 million for the first quarter of 2020 and $102.7 million for the second quarter of 2019. The Company's net interest margin was 3.83% for the second quarter of 2020, up from 3.70% reported for the first quarter of 2020 and down from 3.91% reported for the second quarter of 2019. The increase in net interest margin in the current quarter is primarily attributable to an increase in accretion income and a decrease in the cost of interest-bearing liabilities, partially offset by a decrease in the yield on loans as market interest rates declined. Accretion income for the second quarter of 2020 increased to $9.6 million, compared with $6.6 million for the first quarter of 2020, and increased from $3.1 million for the second quarter of 2019. The increase in accretion income in the second quarter is primarily attributable to payoffs of acquired loans.
Yields on all loans decreased to 4.70% during the second quarter of 2020, compared with 5.02% for the first quarter of 2020 and 5.34% reported for the second quarter of 2019. Loan production in the banking division during the second quarter of 2020 totaled $472.1 million, with weighted average yields of 4.16%, compared with $918.4 million and 4.55%, respectively, in the first quarter of 2020 and $854.7 million and 5.49%, respectively, in the second quarter of 2019. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $7.2 billion during the second quarter of 2020, with weighted average yields of 3.17%, compared with $3.9 billion and 4.15%, respectively, during the first quarter of 2020 and $2.6 billion and 5.20%, respectively, during the second quarter of 2019. Loan production yields in the lines of business were materially impacted by originations of Paycheck Protection Program ("PPP") loans in our SBA division. Excluding PPP loans, loan production in the lines of business amounted to $6.1 billion during the second quarter of 2020, with weighted average yields of 3.53%.
Interest expense during the second quarter of 2020 decreased to $21.2 million, compared with $34.8 million in the first quarter of 2020, and $27.4 million in the second quarter of 2019. The Company's total cost of funds moved 39 basis points lower to 0.52% in the second quarter of 2020 as compared with the first quarter of 2020. Deposit costs decreased 32 basis points during the second quarter of 2020 to 0.39%, compared with 0.71% in the first quarter of 2020. Costs of interest-bearing deposits decreased during the quarter from 1.01% in the first quarter of 2020 to 0.58% in the second quarter of 2020.
Noninterest IncomeNoninterest income increased $66.6 million, or 122.4%, in the second quarter of 2020 to $121.0 million, compared with $54.4 million for the first quarter of 2020, primarily as a result of increased mortgage banking activity.
Mortgage banking activity increased $69.6 million, or 197.0%, to $104.9 million in the second quarter of 2020, compared with $35.3 million for the first quarter of 2020. This increase was a result of both increased production and expansion in our gain on sale spread. Gain on sale spreads increased to 3.53% in the second quarter of 2020 from 2.88% for the first quarter of 2020. Total production in the retail mortgage division increased to $2.67 billion in the second quarter of 2020, compared with $1.36 billion for the first quarter of 2020. Mortgage banking activity was negatively impacted during the second quarter of 2020 by an $8.2 million servicing right impairment, compared with an impairment of $20.9 million for the first quarter of 2020. The retail mortgage open pipeline was $2.67 billion at the end of the second quarter of 2020, compared with $2.43 billion at March 31, 2020.
Service charge revenue decreased $1.9 million, or 16.2%, to $9.9 million in the second quarter of 2020, compared with $11.8 million for the first quarter of 2020. This decrease was primarily attributable to a decrease of $2.6 million in NSF income resulting from a decrease in volume, partially offset by an increase in interchange income of $743,000.
Other noninterest income decreased $1.1 million, or 18.3%, in the second quarter of 2020 to $4.9 million, compared with $6.1 million for the first quarter of 2020, primarily as a result of a decrease in the gain on sales of SBA loans of $1.0 million, as the SBA division shifted its focus temporarily to PPP loan production during the second quarter.
Noninterest ExpenseNoninterest expense increased $17.7 million, or 12.8%, to $155.8 million during the second quarter of 2020, compared with $138.1 million for the first quarter of 2020. During the second quarter of 2020, the Company recorded $6.0 million of charges to earnings, related to restructuring charges associated with branch consolidations and efficiency initiatives, charges related to the previously announced SEC/DOJ investigations, merger and conversion charges, natural disaster and pandemic charges and loss on sale of premises, compared with $3.0 million in charges in the first quarter of 2020 that were related principally to merger and conversion charges, the SEC/DOJ investigations, natural disaster and pandemic expenses and loss on sale of premises. Excluding these charges, adjusted expenses increased approximately $14.7 million, or 10.9%, to $149.8 million in the second quarter of 2020, from $135.1 million in the first quarter of 2020. The majority of this increase is attributable to variable expenses related to increased mortgage production. The Company continues to focus on its operating efficiency ratio, such that the adjusted efficiency ratio improved from 59.87% in the first quarter of 2020 to 51.08% in the second quarter of 2020.
Income Tax ExpenseThe Company's effective tax rate for the second quarter of 2020 was 21.1%, compared with 16.8% in the first quarter of 2020. The decreased rate for the first quarter of 2020 was primarily a result of loss carrybacks allowed as a result of the recently enacted CARES Act.
Balance Sheet TrendsTotal assets at June 30, 2020 were $19.87 billion, compared with $18.24 billion at December 31, 2019. Total loans, including loans held for sale, were $16.24 billion at June 30, 2020, compared with $14.48 billion at December 31, 2019. Total loans held for investment were $14.50 billion at June 30, 2020, compared with $12.82 billion at December 31, 2019, an increase of $1.68 billion, or 13.1%, compared with December 31, 2019. Loan production in the banking division during the second quarter of 2020 was down 49% from the first quarter of 2020 and 45% from the second quarter of 2019. Loan growth in the first half of 2020 was principally driven by PPP loan originations, which totaled $1.06 billion in outstanding balances at June 30, 2020.
At June 30, 2020, total deposits amounted to $15.59 billion, or 90.9% of total funding, compared with $14.03 billion and 90.1%, respectively, at December 31, 2019. At June 30, 2020, noninterest-bearing deposit accounts were $5.60 billion, or 35.9% of total deposits, compared with $4.20 billion, or 29.9% of total deposits, at December 31, 2019. Noninterest-bearing deposit growth was meaningfully impacted by PPP loan fundings during the quarter. Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $9.02 billion at June 30, 2020, compared with $7.21 billion at December 31, 2019. These funds represented 57.9% of the Company's total deposits at June 30, 2020, compared with 51.4% at the end of 2019.
Shareholders' equity at June 30, 2020 totaled $2.46 billion, a decrease of $9.5 million, or 0.4%, from December 31, 2019. The decrease in shareholders' equity was primarily the result of the CECL adoption impact of $56.7 million and dividends declared, partially offset by earnings of $51.6 million during 2020. Tangible book value per share was $20.90 at June 30, 2020, compared with $20.81 at December 31, 2019. Tangible common equity as a percentage of tangible assets was 7.70% at June 30, 2020, compared with 8.40% at the end of the 2019.
Credit QualityCredit quality remains strong in the Company. During the second quarter of 2020, the Company recorded provision for credit losses of $88.2 million, compared with $41.0 million in the first quarter of 2020. This increase in provision was primarily attributable to declines in forecast economic conditions, particularly levels of unemployment and GDP, compared with forecast conditions during the first quarter of 2020. The Company has been prudently working with borrowers to support their credit needs during the challenging economic conditions and monitoring the level of modifications on a daily basis. Nonperforming assets as a percentage of total assets decreased by two basis points to 0.59% during the quarter. The net charge-off ratio was 27 basis points for the second quarter of 2020, compared with 14 basis points in the first quarter of 2020 and seven basis points in the second quarter of 2019.
Conference CallThe Company will host a teleconference at 9:00 a.m. Eastern time Monday, July 27, 2020, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants). The conference ID name is Ameris Bancorp ABCB. A replay of the call will be available one hour after the end of the conference call until August 10, 2020. To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for other international participants). The conference replay access code is 10146087. The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.
About AmerisBancorpAmeris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 170 locations in Georgia, Florida, South Carolina and Alabama 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 and demonstrate the effectsof 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, political and market conditions and fluctuations; movements in interest rates and our expectations regarding net interest margin; expectations on credit quality and performance; legislative and regulatory changes; the impact of theCOVID-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; 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, 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 andExchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019, as amended, and its 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 | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands except per sharedata) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| EARNINGS | |||||||||||||||||||||
| Net income | $ | 32,236 | $ | 19,322 | $ | 61,248 | $ | 21,384 | $ | 38,904 | $ | 51,558 | $ | 78,809 | |||||||
| Adjusted net income | $ | 42,423 | $ | 39,205 | $ | 66,608 | $ | 68,539 | $ | 45,210 | $ | 81,628 | $ | 87,797 | |||||||
| COMMON SHARE DATA | |||||||||||||||||||||
| Earnings per share available to common<br><br>shareholders | |||||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.28 | $ | 0.88 | $ | 0.31 | $ | 0.82 | $ | 0.74 | $ | 1.66 | |||||||
| Diluted | $ | 0.47 | $ | 0.28 | $ | 0.88 | $ | 0.31 | $ | 0.82 | $ | 0.74 | $ | 1.66 | |||||||
| Adjusted diluted EPS | $ | 0.61 | $ | 0.56 | $ | 0.96 | $ | 0.98 | $ | 0.96 | $ | 1.18 | $ | 1.85 | |||||||
| Cash dividends per share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.10 | $ | 0.30 | $ | 0.20 | |||||||
| Book value per share (period end) | $ | 35.42 | $ | 35.10 | $ | 35.53 | $ | 34.78 | $ | 32.52 | $ | 35.42 | $ | 32.52 | |||||||
| Tangible book value per share (period<br><br>end) | $ | 20.90 | $ | 20.44 | $ | 20.81 | $ | 20.29 | $ | 20.81 | $ | 20.90 | $ | 20.81 | |||||||
| Weighted average number of shares | |||||||||||||||||||||
| Basic | 69,191,778 | 69,247,661 | 69,429,193 | 69,372,125 | 47,310,561 | 69,235,117 | 47,353,678 | ||||||||||||||
| Diluted | 69,292,972 | 69,502,022 | 69,683,999 | 69,600,499 | 47,337,809 | 69,413,027 | 47,394,911 | ||||||||||||||
| Period end number of shares | 69,461,968 | 69,441,274 | 69,503,833 | 69,593,833 | 47,261,584 | 69,461,968 | 47,261,584 | ||||||||||||||
| Market data | |||||||||||||||||||||
| High intraday price | $ | 29.82 | $ | 43.79 | $ | 44.90 | $ | 40.65 | $ | 39.60 | $ | 43.79 | $ | 42.01 | |||||||
| Low intraday price | $ | 17.12 | $ | 17.89 | $ | 38.34 | $ | 33.71 | $ | 33.57 | $ | 17.12 | $ | 31.27 | |||||||
| Period end closing price | $ | 23.59 | $ | 23.76 | $ | 42.54 | $ | 40.24 | $ | 39.19 | $ | 23.59 | $ | 39.19 | |||||||
| Average daily volume | 470,151 | 461,692 | 353,783 | 461,289 | 352,684 | 465,955 | 369,959 | ||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||
| Return on average assets | 0.67 | % | 0.43 | % | 1.35 | % | 0.49 | % | 1.34 | % | 0.56 | % | 1.38 | % | |||||||
| Adjusted return on average assets | 0.89 | % | 0.87 | % | 1.47 | % | 1.57 | % | 1.56 | % | 0.88 | % | 1.54 | % | |||||||
| Return on average common equity | 5.23 | % | 3.16 | % | 9.97 | % | 3.49 | % | 10.27 | % | 4.17 | % | 10.60 | % | |||||||
| Adjusted return on average tangible<br><br>common equity | 11.66 | % | 10.98 | % | 18.45 | % | 18.95 | % | 18.79 | % | 11.18 | % | 18.81 | % | |||||||
| Earning asset yield (TE) | 4.32 | % | 4.56 | % | 4.82 | % | 4.86 | % | 4.95 | % | 4.44 | % | 4.95 | % | |||||||
| Total cost of funds | 0.52 | % | 0.91 | % | 1.00 | % | 1.07 | % | 1.10 | % | 0.99 | % | 1.08 | % | |||||||
| Net interest margin (TE) | 3.83 | % | 3.70 | % | 3.86 | % | 3.84 | % | 3.91 | % | 3.77 | % | 3.93 | % | |||||||
| Noninterest income excluding securities<br><br>transactions, as a percent of total revenue (TE) | 39.35 | % | 22.83 | % | 22.02 | % | 28.89 | % | 21.27 | % | 32.14 | % | 20.45 | % | |||||||
| Efficiency ratio | 54.70 | % | 68.23 | % | 58.24 | % | 85.35 | % | 59.36 | % | 60.32 | % | 58.67 | % | |||||||
| Adjusted efficiency ratio (TE) | 51.08 | % | 59.87 | % | 55.61 | % | 57.25 | % | 53.77 | % | 54.90 | % | 54.43 | % | |||||||
| CAPITAL ADEQUACY (period end) | |||||||||||||||||||||
| Shareholders' equity to assets | 12.38 | % | 13.37 | % | 13.54 | % | 13.63 | % | 12.93 | % | 12.38 | % | 12.93 | % | |||||||
| Tangible common equity to tangible assets | 7.70 | % | 8.25 | % | 8.40 | % | 8.43 | % | 8.68 | % | 7.70 | % | 8.68 | % | |||||||
| EQUITY TO ASSETS RECONCILIATION | |||||||||||||||||||||
| Tangible common equity to tangible assets | 7.70 | % | 8.25 | % | 8.40 | % | 8.43 | % | 8.68 | % | 7.70 | % | 8.68 | % | |||||||
| Effect of goodwill and other intangibles | 4.68 | % | 5.12 | % | 5.14 | % | 5.20 | % | 4.25 | % | 4.68 | % | 4.25 | % | |||||||
| Equity to assets (GAAP) | 12.38 | % | 13.37 | % | 13.54 | % | 13.63 | % | 12.93 | % | 12.38 | % | 12.93 | % | |||||||
| OTHER DATA (period end) | |||||||||||||||||||||
| Full time equivalent employees | |||||||||||||||||||||
| Banking Division | 1,832 | 1,865 | 1,913 | 2,001 | 1,336 | 1,832 | 1,336 | ||||||||||||||
| Retail Mortgage Division | 692 | 689 | 690 | 785 | 348 | 692 | 348 | ||||||||||||||
| Warehouse Lending Division | 9 | 9 | 9 | 9 | 10 | 9 | 10 | ||||||||||||||
| SBA Division | 42 | 44 | 42 | 45 | 21 | 42 | 21 | ||||||||||||||
| Premium Finance Division | 70 | 72 | 68 | 66 | 62 | 70 | 62 | ||||||||||||||
| Total Ameris Bancorp FTE headcount | 2,645 | 2,679 | 2,722 | 2,906 | 1,777 | 2,645 | 1,777 | ||||||||||||||
| Assets per Banking Division FTE | $ | 10,848 | $ | 9,772 | $ | 9,536 | $ | 8,878 | $ | 8,889 | $ | 10,848 | $ | 8,889 | |||||||
| Branch locations | 170 | 170 | 170 | 172 | 114 | 170 | 114 | ||||||||||||||
| Deposits per branch location | $ | 91,705 | $ | 81,439 | $ | 82,512 | $ | 79,416 | $ | 84,056 | $ | 91,705 | $ | 84,056 | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Income Statement | Table 2 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands except per sharedata) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Interest income | |||||||||||||||||||||
| Interest and fees on loans | $ | 175,345 | $ | 171,242 | $ | 182,391 | $ | 175,046 | $ | 117,010 | $ | 346,587 | $ | 229,411 | |||||||
| Interest on taxable securities | 9,347 | 10,082 | 10,358 | 11,354 | 9,383 | 19,429 | 18,426 | ||||||||||||||
| Interest on nontaxable securities | 157 | 157 | 167 | 168 | 102 | 314 | 258 | ||||||||||||||
| Interest on deposits in other banks | 123 | 1,211 | 1,091 | 1,622 | 2,276 | 1,334 | 5,426 | ||||||||||||||
| Interest on federal funds sold | 46 | 76 | 69 | 171 | 257 | 122 | 436 | ||||||||||||||
| Total interest income | 185,018 | 182,768 | 194,076 | 188,361 | 129,028 | 367,786 | 253,957 | ||||||||||||||
| Interest expense | |||||||||||||||||||||
| Interest on deposits | 14,273 | 24,102 | 27,970 | 29,425 | 23,454 | 38,375 | 45,138 | ||||||||||||||
| Interest on other borrowings | 6,931 | 10,721 | 10,755 | 10,167 | 3,923 | 17,652 | 7,773 | ||||||||||||||
| Total interest expense | 21,204 | 34,823 | 38,725 | 39,592 | 27,377 | 56,027 | 52,911 | ||||||||||||||
| Net interest income | 163,814 | 147,945 | 155,351 | 148,769 | 101,651 | 311,759 | 201,046 | ||||||||||||||
| Provision for loan losses | 68,449 | 37,047 | 5,693 | 5,989 | 4,668 | 105,496 | 8,076 | ||||||||||||||
| Provision for unfunded commitments | 19,712 | 4,000 | — | — | — | 23,712 | — | ||||||||||||||
| Provision for credit losses | 88,161 | 41,047 | 5,693 | 5,989 | 4,668 | 129,208 | 8,076 | ||||||||||||||
| Net interest income after provision forcredit losses | 75,653 | 106,898 | 149,658 | 142,780 | 96,983 | 182,551 | 192,970 | ||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Service charges on deposits accounts | 9,922 | 11,844 | 13,567 | 13,411 | 12,168 | 21,766 | 23,814 | ||||||||||||||
| Mortgage banking activity | 104,925 | 35,333 | 33,168 | 53,041 | 18,523 | 140,258 | 33,200 | ||||||||||||||
| Other service charges, commissions and fees | 1,130 | 1,128 | 1,085 | 1,236 | 803 | 2,258 | 1,592 | ||||||||||||||
| Gain (loss) on securities | 14 | (9) | (1) | 4 | 69 | 5 | 135 | ||||||||||||||
| Other noninterest income | 4,969 | 6,083 | 7,294 | 9,301 | 3,673 | 11,052 | 7,266 | ||||||||||||||
| Total noninterest income | 120,960 | 54,379 | 55,113 | 76,993 | 35,236 | 175,339 | 66,007 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 95,168 | 75,946 | 69,642 | 77,633 | 38,331 | 171,114 | 76,663 | ||||||||||||||
| Occupancy and equipment expenses | 13,807 | 12,028 | 11,919 | 12,639 | 7,834 | 25,835 | 16,038 | ||||||||||||||
| Data processing and telecommunications<br><br>expenses | 10,514 | 11,954 | 11,362 | 10,372 | 8,388 | 22,468 | 16,779 | ||||||||||||||
| Credit resolution related expenses^(1)^ | 950 | 2,198 | 1,098 | 1,094 | 979 | 3,148 | 1,890 | ||||||||||||||
| Advertising and marketing expenses | 1,455 | 2,358 | 2,250 | 1,949 | 1,987 | 3,813 | 3,728 | ||||||||||||||
| Amortization of intangible assets | 5,601 | 5,631 | 5,741 | 5,719 | 3,121 | 11,232 | 6,253 | ||||||||||||||
| Merger and conversion charges | 895 | 540 | 2,415 | 65,158 | 3,475 | 1,435 | 5,532 | ||||||||||||||
| Other noninterest expenses | 27,378 | 27,398 | 18,137 | 18,133 | 17,136 | 54,776 | 29,793 | ||||||||||||||
| Total noninterest expense | 155,768 | 138,053 | 122,564 | 192,697 | 81,251 | 293,821 | 156,676 | ||||||||||||||
| Income before income tax expense | 40,845 | 23,224 | 82,207 | 27,076 | 50,968 | 64,069 | 102,301 | ||||||||||||||
| Income tax expense | 8,609 | 3,902 | 20,959 | 5,692 | 12,064 | 12,511 | 23,492 | ||||||||||||||
| Net income | $ | 32,236 | $ | 19,322 | $ | 61,248 | $ | 21,384 | $ | 38,904 | $ | 51,558 | $ | 78,809 | |||||||
| Diluted earnings per common share | $ | 0.47 | $ | 0.28 | $ | 0.88 | $ | 0.31 | $ | 0.82 | $ | 0.74 | $ | 1.66 | |||||||
| (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 | ||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | |||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||
| Assets | |||||||||||||||||||||
| Cash and due from banks | $ | 292,899 | $ | 255,312 | $ | 246,234 | $ | 193,976 | $ | 151,186 | |||||||||||
| Federal funds sold and interest-bearing deposits<br><br>in banks | 428,560 | 396,844 | 375,615 | 285,713 | 186,969 | ||||||||||||||||
| Time deposits in other banks | 249 | 249 | 249 | 499 | 748 | ||||||||||||||||
| Investment securities available for sale, at fair value | 1,238,896 | 1,353,040 | 1,403,403 | 1,491,207 | 1,273,244 | ||||||||||||||||
| Other investments | 76,453 | 81,754 | 66,919 | 66,921 | 32,481 | ||||||||||||||||
| Loans held for sale, at fair value | 1,736,397 | 1,398,229 | 1,656,711 | 1,187,551 | 261,073 | ||||||||||||||||
| Loans, net of unearned income | 14,503,157 | 13,094,106 | 12,818,476 | 12,826,284 | 9,049,870 | ||||||||||||||||
| Allowance for loan losses | (208,793) | (149,524) | (38,189) | (35,530) | (31,793) | ||||||||||||||||
| Loans, net | 14,294,364 | 12,944,582 | 12,780,287 | 12,790,754 | 9,018,077 | ||||||||||||||||
| Other real estate owned | 23,563 | 21,027 | 19,500 | 20,710 | 14,675 | ||||||||||||||||
| Premises and equipment, net | 230,118 | 231,347 | 233,102 | 239,428 | 141,378 | ||||||||||||||||
| Goodwill | 928,005 | 931,947 | 931,637 | 911,488 | 501,140 | ||||||||||||||||
| Other intangible assets, net | 80,354 | 85,955 | 91,586 | 97,328 | 52,437 | ||||||||||||||||
| Cash value of bank owned life insurance | 175,011 | 176,239 | 175,270 | 174,442 | 105,064 | ||||||||||||||||
| Deferred income taxes, net | 56,306 | 24,196 | 2,180 | 22,111 | 30,812 | ||||||||||||||||
| Other assets | 311,454 | 323,827 | 259,886 | 282,149 | 120,052 | ||||||||||||||||
| Total assets | $ | 19,872,629 | $ | 18,224,548 | $ | 18,242,579 | $ | 17,764,277 | $ | 11,889,336 | |||||||||||
| Liabilities | |||||||||||||||||||||
| Deposits | |||||||||||||||||||||
| Noninterest-bearing | $ | 5,595,868 | $ | 4,226,253 | $ | 4,199,448 | $ | 4,077,856 | $ | 2,771,443 | |||||||||||
| Interest-bearing | 9,993,950 | 9,618,365 | 9,827,625 | 9,581,738 | 6,810,927 | ||||||||||||||||
| Total deposits | 15,589,818 | 13,844,618 | 14,027,073 | 13,659,594 | 9,582,370 | ||||||||||||||||
| Federal funds purchased and securities sold under<br><br>agreements to repurchase | 12,879 | 15,160 | 20,635 | 17,744 | 3,307 | ||||||||||||||||
| Other borrowings | 1,418,336 | 1,543,371 | 1,398,709 | 1,351,172 | 564,636 | ||||||||||||||||
| Subordinated deferrable interest debentures | 123,375 | 122,890 | 127,560 | 127,075 | 89,871 | ||||||||||||||||
| FDIC loss-share payable, net | 18,903 | 18,111 | 19,642 | 19,490 | 20,596 | ||||||||||||||||
| Other liabilities | 249,188 | 243,248 | 179,378 | 168,479 | 91,435 | ||||||||||||||||
| Total liabilities | 17,412,499 | 15,787,398 | 15,772,997 | 15,343,554 | 10,352,215 | ||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||
| Common stock | 71,674 | 71,652 | 71,500 | 71,447 | 49,099 | ||||||||||||||||
| Capital stock | 1,909,839 | 1,908,721 | 1,907,108 | 1,904,789 | 1,053,500 | ||||||||||||||||
| Retained earnings | 481,948 | 460,153 | 507,950 | 457,127 | 446,182 | ||||||||||||||||
| Accumulated other comprehensive income, net of tax | 39,613 | 39,551 | 17,995 | 15,482 | 16,462 | ||||||||||||||||
| Treasury stock | (42,944) | (42,927) | (34,971) | (28,122) | (28,122) | ||||||||||||||||
| Total shareholders' equity | 2,460,130 | 2,437,150 | 2,469,582 | 2,420,723 | 1,537,121 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 19,872,629 | $ | 18,224,548 | $ | 18,242,579 | $ | 17,764,277 | $ | 11,889,336 | |||||||||||
| Other Data | |||||||||||||||||||||
| Earning assets | $ | 17,983,712 | $ | 16,324,222 | $ | 16,321,373 | $ | 15,858,175 | $ | 10,804,385 | |||||||||||
| Intangible assets | 1,008,359 | 1,017,902 | 1,023,223 | 1,008,816 | 553,577 | ||||||||||||||||
| Interest-bearing liabilities | 11,548,540 | 11,299,786 | 11,374,529 | 11,077,729 | 7,468,741 | ||||||||||||||||
| Average assets | 19,222,181 | 18,056,445 | 17,998,494 | 17,340,387 | 11,625,344 | ||||||||||||||||
| Average common shareholders' equity | 2,478,373 | 2,456,617 | 2,437,272 | 2,432,182 | 1,519,598 | ||||||||||||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||||||||||||||||
| Asset Quality Information | Table 4 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Allowance for Credit Losses | |||||||||||||||||||||
| Balance at beginning of period | $ | 167,315 | $ | 39,266 | $ | 36,607 | $ | 31,793 | $ | 28,659 | $ | 39,266 | $ | 28,819 | |||||||
| CECL adoption impact on allowance for loan<br><br>losses | — | 78,661 | — | — | — | 78,661 | — | ||||||||||||||
| CECL adoption impact on allowance for<br><br>unfunded commitments | — | 12,714 | — | — | — | 12,714 | — | ||||||||||||||
| Total CECL adoption impact | — | 91,375 | — | — | — | 91,375 | — | ||||||||||||||
| Acquired allowance for unfunded commitments | — | — | — | 1,077 | — | — | — | ||||||||||||||
| Provision for loan losses | 68,449 | 37,047 | 5,693 | 5,989 | 4,668 | 105,496 | 8,076 | ||||||||||||||
| Provision for unfunded commitments | 19,712 | 4,000 | — | — | — | 23,712 | — | ||||||||||||||
| Provision for credit losses | 88,161 | 41,047 | 5,693 | 5,989 | 4,668 | 129,208 | 8,076 | ||||||||||||||
| Charge-offs | 11,282 | 6,718 | 5,664 | 5,249 | 3,496 | 18,000 | 8,875 | ||||||||||||||
| Recoveries | 2,101 | 2,345 | 2,630 | 2,997 | 1,962 | 4,446 | 3,773 | ||||||||||||||
| Net charge-offs | 9,181 | 4,373 | 3,034 | 2,252 | 1,534 | 13,554 | 5,102 | ||||||||||||||
| Ending balance | $ | 246,295 | $ | 167,315 | $ | 39,266 | $ | 36,607 | $ | 31,793 | $ | 246,295 | $ | 31,793 | |||||||
| Allowance for loan losses | $ | 208,793 | $ | 149,524 | $ | 38,189 | $ | 35,530 | $ | 31,793 | $ | 208,793 | $ | 31,793 | |||||||
| Allowance for unfunded commitments | 37,502 | 17,791 | 1,077 | 1,077 | — | 37,502 | — | ||||||||||||||
| Total allowance for credit losses | $ | 246,295 | $ | 167,315 | $ | 39,266 | $ | 36,607 | $ | 31,793 | $ | 246,295 | $ | 31,793 | |||||||
| Net Charge-off Information | |||||||||||||||||||||
| Charge-offs | |||||||||||||||||||||
| Commercial, financial and agricultural | $ | 486 | $ | 2,486 | $ | 1,813 | $ | 490 | $ | 473 | $ | 2,972 | $ | 1,157 | |||||||
| Consumer installment | 962 | 1,142 | 1,586 | 1,245 | 1,171 | 2,104 | 3,068 | ||||||||||||||
| Indirect automobile | 1,016 | 1,231 | 939 | 965 | — | 2,247 | — | ||||||||||||||
| Mortgage warehouse | — | — | — | — | — | — | — | ||||||||||||||
| Municipal | — | — | — | — | — | — | — | ||||||||||||||
| Premium Finance | 1,904 | 831 | 899 | 1,267 | 865 | 2,735 | 2,185 | ||||||||||||||
| Real estate - construction and development | 74 | — | 146 | — | 243 | 74 | 268 | ||||||||||||||
| Real estate - commercial and farmland | 6,315 | 928 | 181 | 1,318 | 589 | 7,243 | 1,843 | ||||||||||||||
| Real estate - residential | 525 | 100 | 100 | 37 | 155 | 625 | 354 | ||||||||||||||
| Total charge-offs | 11,282 | 6,718 | 5,664 | 5,322 | 3,496 | 18,000 | 8,875 | ||||||||||||||
| Recoveries | |||||||||||||||||||||
| Commercial, financial and agricultural | 303 | 362 | 934 | 300 | 382 | 665 | 604 | ||||||||||||||
| Consumer installment | 777 | 643 | 640 | 476 | 289 | 1,420 | 504 | ||||||||||||||
| Indirect automobile | 18 | 22 | 60 | 385 | — | 40 | — | ||||||||||||||
| Mortgage warehouse | — | — | — | — | — | — | — | ||||||||||||||
| Municipal | — | — | — | — | — | — | — | ||||||||||||||
| Premium Finance | 676 | 684 | 358 | 736 | 650 | 1,360 | 1,660 | ||||||||||||||
| Real estate - construction and development | 168 | 342 | 430 | 930 | 268 | 510 | 385 | ||||||||||||||
| Real estate - commercial and farmland | 21 | 85 | 140 | 74 | 78 | 106 | 118 | ||||||||||||||
| Real estate - residential | 138 | 207 | 68 | 169 | 295 | 345 | 502 | ||||||||||||||
| Total recoveries | 2,101 | 2,345 | 2,630 | 3,070 | 1,962 | 4,446 | 3,773 | ||||||||||||||
| Net charge-offs | $ | 9,181 | $ | 4,373 | $ | 3,034 | $ | 2,252 | $ | 1,534 | $ | 13,554 | $ | 5,102 | |||||||
| Non-Performing Assets | |||||||||||||||||||||
| Nonaccrual loans | $ | 77,745 | $ | 77,866 | $ | 75,124 | $ | 100,501 | $ | 41,479 | $ | 77,745 | $ | 41,479 | |||||||
| Other real estate owned | 23,563 | 21,027 | 19,500 | 20,710 | 14,675 | 23,563 | 14,675 | ||||||||||||||
| Repossessed assets | 1,348 | 783 | 939 | 1,258 | — | 1,348 | — | ||||||||||||||
| Accruing loans delinquent 90 days or more | 15,127 | 11,969 | 5,754 | 6,325 | 4,613 | 15,127 | 4,613 | ||||||||||||||
| Total non-performing assets | $ | 117,783 | $ | 111,645 | $ | 101,317 | $ | 128,794 | $ | 60,767 | $ | 117,783 | $ | 60,767 | |||||||
| Asset Quality Ratios | |||||||||||||||||||||
| Non-performing assets as a percent of total<br><br>assets | 0.59 | % | 0.61 | % | 0.56 | % | 0.73 | % | 0.51 | % | 0.59 | % | 0.51 | % | |||||||
| Net charge-offs as a percent of average loans<br><br>(annualized) | 0.27 | % | 0.14 | % | 0.09 | % | 0.07 | % | 0.07 | % | 0.20 | % | 0.12 | % | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Loan Information | Table 5 | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | |||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||
| Loans by Type | |||||||||||||||||||||
| Commercial, financial and agricultural | $ | 1,839,921 | $ | 827,392 | $ | 802,171 | $ | 931,755 | $ | 703,290 | |||||||||||
| Consumer installment | 575,782 | 520,592 | 498,577 | 500,067 | 474,195 | ||||||||||||||||
| Indirect automobile | 739,543 | 937,736 | 1,061,824 | 1,111,815 | — | ||||||||||||||||
| Mortgage warehouse | 748,853 | 547,328 | 526,369 | 562,598 | 462,481 | ||||||||||||||||
| Municipal | 731,508 | 749,633 | 564,304 | 578,267 | 583,558 | ||||||||||||||||
| Premium Finance | 690,584 | 661,845 | 654,669 | 656,570 | 613,964 | ||||||||||||||||
| Real estate - construction and development | 1,641,744 | 1,628,367 | 1,549,062 | 1,468,696 | 1,103,550 | ||||||||||||||||
| Real estate - commercial and farmland | 4,804,420 | 4,516,451 | 4,353,039 | 4,198,759 | 3,182,213 | ||||||||||||||||
| Real estate - residential | 2,730,802 | 2,704,762 | 2,808,461 | 2,817,757 | 1,926,619 | ||||||||||||||||
| Total loans | $ | 14,503,157 | $ | 13,094,106 | $ | 12,818,476 | $ | 12,826,284 | $ | 9,049,870 | |||||||||||
| Troubled Debt Restructurings | |||||||||||||||||||||
| Accruing troubled debt restructurings | |||||||||||||||||||||
| Commercial, financial and agricultural | $ | 591 | $ | 575 | $ | 516 | $ | 521 | $ | 140 | |||||||||||
| Consumer installment | 42 | 4 | 8 | 9 | 10 | ||||||||||||||||
| Indirect automobile | — | — | — | — | — | ||||||||||||||||
| Mortgage warehouse | — | — | — | — | — | ||||||||||||||||
| Municipal | — | — | — | — | — | ||||||||||||||||
| Premium Finance | — | 159 | 156 | 159 | 191 | ||||||||||||||||
| Real estate - construction and development | 919 | 925 | 936 | 948 | 1,124 | ||||||||||||||||
| Real estate - commercial and farmland | 5,252 | 5,587 | 6,732 | 8,616 | 8,793 | ||||||||||||||||
| Real estate - residential | 30,253 | 22,775 | 21,261 | 21,472 | 21,124 | ||||||||||||||||
| Total accruing troubled debt restructurings | $ | 37,057 | $ | 30,025 | $ | 29,609 | $ | 31,725 | $ | 31,382 | |||||||||||
| Nonaccrual troubled debt restructurings | |||||||||||||||||||||
| Commercial, financial and agricultural | $ | 1,034 | $ | 334 | $ | 335 | $ | 144 | $ | 162 | |||||||||||
| Consumer installment | 67 | 105 | 107 | 120 | 123 | ||||||||||||||||
| Indirect automobile | — | — | — | — | — | ||||||||||||||||
| Mortgage warehouse | — | — | — | — | — | ||||||||||||||||
| Municipal | — | — | — | — | — | ||||||||||||||||
| Premium Finance | — | — | — | — | — | ||||||||||||||||
| Real estate - construction and development | 307 | 289 | 253 | 258 | 265 | ||||||||||||||||
| Real estate - commercial and farmland | 1,878 | 2,415 | 2,071 | 1,958 | 2,109 | ||||||||||||||||
| Real estate - residential | 2,231 | 3,078 | 2,857 | 2,103 | 1,760 | ||||||||||||||||
| Total nonaccrual troubled debt restructurings | $ | 5,517 | $ | 6,221 | $ | 5,623 | $ | 4,583 | $ | 4,419 | |||||||||||
| Total troubled debt restructurings | $ | 42,574 | $ | 36,246 | $ | 35,232 | $ | 36,308 | $ | 35,801 | |||||||||||
| Loans by Risk Grade | |||||||||||||||||||||
| Grade 1 - Prime credit | $ | 1,789,709 | $ | 774,956 | $ | 587,877 | $ | 613,281 | $ | 622,034 | |||||||||||
| Grade 2 - Strong credit | 801,273 | 785,770 | 840,372 | 856,618 | 811,690 | ||||||||||||||||
| Grade 3 - Good credit | 5,784,754 | 5,772,834 | 6,034,398 | 6,086,576 | 3,829,422 | ||||||||||||||||
| Grade 4 - Satisfactory credit | 5,643,133 | 4,353,733 | 4,884,541 | 4,746,020 | 3,401,265 | ||||||||||||||||
| Grade 5 - Fair credit | 212,667 | 1,131,128 | 233,020 | 252,424 | 211,229 | ||||||||||||||||
| Grade 6 - Other assets especially mentioned | 108,704 | 106,885 | 86,412 | 114,235 | 64,075 | ||||||||||||||||
| Grade 7 - Substandard | 162,917 | 168,561 | 151,846 | 157,114 | 110,152 | ||||||||||||||||
| Grade 8 - Doubtful | — | 239 | 8 | 14 | — | ||||||||||||||||
| Grade 9 - Loss | — | — | 2 | 2 | 3 | ||||||||||||||||
| Total loans | $ | 14,503,157 | $ | 13,094,106 | $ | 12,818,476 | $ | 12,826,284 | $ | 9,049,870 | |||||||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Average Balances | Table 6 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Earning Assets | |||||||||||||||||||||
| Federal funds sold | $ | 24,265 | $ | 27,380 | $ | 23,104 | $ | 28,459 | $ | 41,683 | $ | 25,822 | $ | 36,515 | |||||||
| Interest-bearing deposits in banks | 398,284 | 419,260 | 304,427 | 324,127 | 341,937 | 408,772 | 404,311 | ||||||||||||||
| Time deposits in other banks | 249 | 249 | 401 | 548 | 3,792 | 249 | 6,989 | ||||||||||||||
| Investment securities - taxable | 1,281,980 | 1,359,651 | 1,426,062 | 1,514,534 | 1,233,297 | 1,320,815 | 1,210,225 | ||||||||||||||
| Investment securities - nontaxable | 21,576 | 22,839 | 23,580 | 23,759 | 15,288 | 22,208 | 19,688 | ||||||||||||||
| Other investments | 79,143 | 73,972 | 64,852 | 53,712 | 15,830 | 76,557 | 15,185 | ||||||||||||||
| Loans held for sale | 1,614,080 | 1,587,131 | 1,537,648 | 856,572 | 154,707 | 1,600,606 | 128,261 | ||||||||||||||
| Loans | 13,915,406 | 12,712,997 | 12,697,912 | 12,677,063 | 8,740,561 | 13,308,960 | 8,612,978 | ||||||||||||||
| Total Earning Assets | $ | 17,334,983 | $ | 16,203,479 | $ | 16,077,986 | $ | 15,478,774 | $ | 10,547,095 | $ | 16,763,989 | $ | 10,434,152 | |||||||
| Deposits | |||||||||||||||||||||
| Noninterest-bearing deposits | $ | 5,061,578 | $ | 4,080,920 | $ | 4,124,872 | $ | 4,040,592 | $ | 2,723,843 | $ | 4,571,249 | $ | 2,634,937 | |||||||
| NOW accounts | 2,441,305 | 2,287,947 | 2,204,666 | 2,049,175 | 1,506,721 | 2,364,626 | 1,530,224 | ||||||||||||||
| MMDA | 4,221,906 | 4,004,644 | 3,953,717 | 3,815,185 | 2,655,108 | 4,113,275 | 2,666,001 | ||||||||||||||
| Savings accounts | 692,382 | 643,422 | 649,118 | 661,555 | 405,506 | 667,902 | 402,315 | ||||||||||||||
| Retail CDs | 2,471,134 | 2,624,209 | 2,721,829 | 2,804,243 | 1,962,422 | 2,547,671 | 1,927,474 | ||||||||||||||
| Brokered CDs | 2,043 | 61,190 | 249,644 | 150,176 | 486,292 | 31,617 | 498,230 | ||||||||||||||
| Total Deposits | 14,890,348 | 13,702,332 | 13,903,846 | 13,520,926 | 9,739,892 | 14,296,340 | 9,659,181 | ||||||||||||||
| Non-Deposit Funding | |||||||||||||||||||||
| Federal funds purchased and securities sold<br><br>under agreements to repurchase | 12,452 | 15,637 | 17,088 | 19,914 | 3,213 | 14,045 | 9,511 | ||||||||||||||
| FHLB advances | 1,212,537 | 1,267,303 | 1,080,516 | 810,384 | 22,390 | 1,239,920 | 14,368 | ||||||||||||||
| Other borrowings | 269,300 | 269,454 | 234,001 | 220,918 | 145,453 | 269,377 | 145,463 | ||||||||||||||
| Subordinated deferrable interest debentures | 123,120 | 127,731 | 127,292 | 133,519 | 89,686 | 125,426 | 89,516 | ||||||||||||||
| Total Non-Deposit Funding | 1,617,409 | 1,680,125 | 1,458,897 | 1,184,735 | 260,742 | 1,648,768 | 258,858 | ||||||||||||||
| Total Funding | $ | 16,507,757 | $ | 15,382,457 | $ | 15,362,743 | $ | 14,705,661 | $ | 10,000,634 | $ | 15,945,108 | $ | 9,918,039 | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Interest Income and Interest Expense (TE) | Table 7 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Interest Income | |||||||||||||||||||||
| Federal funds sold | $ | 45 | $ | 76 | $ | 69 | $ | 171 | $ | 257 | $ | 121 | $ | 436 | |||||||
| Interest-bearing deposits in banks | 122 | 1,210 | 1,089 | 1,620 | 2,260 | 1,332 | 5,359 | ||||||||||||||
| Time deposits in other banks | 1 | 1 | 2 | 2 | 16 | 2 | 67 | ||||||||||||||
| Investment securities - taxable | 9,346 | 10,082 | 10,358 | 11,354 | 9,383 | 19,428 | 18,426 | ||||||||||||||
| Investment securities - nontaxable (TE) | 198 | 199 | 212 | 213 | 129 | 397 | 327 | ||||||||||||||
| Loans held for sale | 14,053 | 13,637 | 14,330 | 7,889 | 1,632 | 27,690 | 2,784 | ||||||||||||||
| Loans (TE) | 162,617 | 158,636 | 169,119 | 168,239 | 116,413 | 321,253 | 228,678 | ||||||||||||||
| Total Earning Assets | $ | 186,382 | $ | 183,841 | $ | 195,179 | $ | 189,488 | $ | 130,090 | $ | 370,223 | $ | 256,077 | |||||||
| Accretion income (included above) | $ | 9,576 | $ | 6,562 | $ | 9,727 | $ | 4,222 | $ | 3,103 | $ | 16,138 | $ | 5,986 | |||||||
| Interest Expense | |||||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||||
| NOW accounts | $ | 1,265 | $ | 2,774 | $ | 2,728 | $ | 2,843 | $ | 2,260 | $ | 4,039 | $ | 4,369 | |||||||
| MMDA | 3,764 | 9,748 | 11,311 | 12,593 | 9,488 | 13,512 | 18,535 | ||||||||||||||
| Savings accounts | 94 | 210 | 233 | 274 | 85 | 304 | 162 | ||||||||||||||
| Retail CDs | 9,136 | 11,064 | 12,220 | 12,905 | 8,585 | 20,200 | 15,915 | ||||||||||||||
| Brokered CDs | 14 | 306 | 1,478 | 810 | 3,036 | 320 | 6,157 | ||||||||||||||
| Total Interest-Bearing Deposits | 14,273 | 24,102 | 27,970 | 29,425 | 23,454 | 38,375 | 45,138 | ||||||||||||||
| Non-Deposit Funding | |||||||||||||||||||||
| Federal funds purchased and securities sold under<br><br>agreements to repurchase | 25 | 40 | 41 | 32 | 2 | 65 | 13 | ||||||||||||||
| FHLB advances | 1,686 | 5,109 | 5,241 | 4,618 | 141 | 6,795 | 185 | ||||||||||||||
| Other borrowings | 3,487 | 3,511 | 3,358 | 3,332 | 2,210 | 6,998 | 4,437 | ||||||||||||||
| Subordinated deferrable interest debentures | 1,733 | 2,061 | 2,115 | 2,185 | 1,570 | 3,794 | 3,138 | ||||||||||||||
| Total Non-Deposit Funding | 6,931 | 10,721 | 10,755 | 10,167 | 3,923 | 17,652 | 7,773 | ||||||||||||||
| Total Interest-Bearing Funding | $ | 21,204 | $ | 34,823 | $ | 38,725 | $ | 39,592 | $ | 27,377 | $ | 56,027 | $ | 52,911 | |||||||
| Net Interest Income (TE) | $ | 165,178 | $ | 149,018 | $ | 156,454 | $ | 149,896 | $ | 102,713 | $ | 314,196 | $ | 203,166 | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Yields^(1)^ | Table 8 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||
| Earning Assets | |||||||||||||||||||||
| Federal funds sold | 0.75 | % | 1.12 | % | 1.18 | % | 2.38 | % | 2.47 | % | 0.94 | % | 2.41 | % | |||||||
| Interest-bearing deposits in banks | 0.12 | % | 1.16 | % | 1.42 | % | 1.98 | % | 2.65 | % | 0.66 | % | 2.67 | % | |||||||
| Time deposits in other banks | 1.62 | % | 1.62 | % | 1.98 | % | 1.45 | % | 1.69 | % | 1.62 | % | 1.93 | % | |||||||
| Investment securities - taxable | 2.93 | % | 2.98 | % | 2.88 | % | 2.97 | % | 3.05 | % | 2.96 | % | 3.07 | % | |||||||
| Investment securities - nontaxable (TE) | 3.69 | % | 3.50 | % | 3.57 | % | 3.56 | % | 3.38 | % | 3.59 | % | 3.35 | % | |||||||
| Loans held for sale | 3.50 | % | 3.46 | % | 3.70 | % | 3.65 | % | 4.23 | % | 3.48 | % | 4.38 | % | |||||||
| Loans (TE) | 4.70 | % | 5.02 | % | 5.28 | % | 5.27 | % | 5.34 | % | 4.85 | % | 5.35 | % | |||||||
| Total Earning Assets | 4.32 | % | 4.56 | % | 4.82 | % | 4.86 | % | 4.95 | % | 4.44 | % | 4.95 | % | |||||||
| Interest-Bearing Deposits | |||||||||||||||||||||
| NOW accounts | 0.21 | % | 0.49 | % | 0.49 | % | 0.55 | % | 0.60 | % | 0.34 | % | 0.58 | % | |||||||
| MMDA | 0.36 | % | 0.98 | % | 1.14 | % | 1.31 | % | 1.43 | % | 0.66 | % | 1.40 | % | |||||||
| Savings accounts | 0.05 | % | 0.13 | % | 0.14 | % | 0.16 | % | 0.08 | % | 0.09 | % | 0.08 | % | |||||||
| Retail CDs | 1.49 | % | 1.70 | % | 1.78 | % | 1.83 | % | 1.75 | % | 1.59 | % | 1.67 | % | |||||||
| Brokered CDs | 2.76 | % | 2.01 | % | 2.35 | % | 2.14 | % | 2.50 | % | 2.04 | % | 2.49 | % | |||||||
| Total Interest-Bearing Deposits | 0.58 | % | 1.01 | % | 1.13 | % | 1.23 | % | 1.34 | % | 0.79 | % | 1.30 | % | |||||||
| Non-Deposit Funding | |||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to<br><br>repurchase | 0.81 | % | 1.03 | % | 0.95 | % | 0.64 | % | 0.25 | % | 0.93 | % | 0.28 | % | |||||||
| FHLB advances | 0.56 | % | 1.62 | % | 1.92 | % | 2.26 | % | 2.53 | % | 1.10 | % | 2.60 | % | |||||||
| Other borrowings | 5.21 | % | 5.24 | % | 5.69 | % | 5.98 | % | 6.09 | % | 5.22 | % | 6.15 | % | |||||||
| Subordinated deferrable interest debentures | 5.66 | % | 6.49 | % | 6.59 | % | 6.49 | % | 7.02 | % | 6.08 | % | 7.07 | % | |||||||
| Total Non-Deposit Funding | 1.72 | % | 2.57 | % | 2.92 | % | 3.40 | % | 6.03 | % | 2.15 | % | 6.06 | % | |||||||
| Total Interest-Bearing Liabilities | 0.75 | % | 1.24 | % | 1.37 | % | 1.47 | % | 1.51 | % | 0.99 | % | 1.47 | % | |||||||
| Net Interest Spread | 3.57 | % | 3.32 | % | 3.45 | % | 3.39 | % | 3.44 | % | 3.45 | % | 3.48 | % | |||||||
| Net Interest Margin^(2)^ | 3.83 | % | 3.70 | % | 3.86 | % | 3.84 | % | 3.91 | % | 3.77 | % | 3.93 | % | |||||||
| Total Cost of Funds^(3)^ | 0.52 | % | 0.91 | % | 1.00 | % | 1.07 | % | 1.10 | % | 0.71 | % | 1.08 | % | |||||||
| (1) Interest and average rates are calculated on a 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 | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Net income available to common<br><br>shareholders | $ | 32,236 | $ | 19,322 | $ | 61,248 | $ | 21,384 | $ | 38,904 | $ | 51,558 | $ | 78,809 | |||||||
| Adjustment items: | |||||||||||||||||||||
| Merger and conversion charges | 895 | 540 | 2,415 | 65,158 | 3,475 | 1,435 | 5,532 | ||||||||||||||
| Restructuring charges | 1,463 | — | — | — | — | 1,463 | 245 | ||||||||||||||
| Servicing right impairment (recovery) | 7,989 | 22,165 | 366 | (1,319) | 1,460 | 30,154 | 1,460 | ||||||||||||||
| Gain on BOLI proceeds | (845) | — | 752 | (4,335) | — | (845) | — | ||||||||||||||
| Expenses related to SEC/DOJ<br><br>Investigation | 1,294 | 1,443 | 463 | — | — | 2,737 | — | ||||||||||||||
| Natural disaster and pandemic charges<br><br>(Note 1) | 2,043 | 548 | — | — | 50 | 2,591 | (39) | ||||||||||||||
| Loss on sale of premises | 281 | 470 | 1,413 | 889 | 2,800 | 751 | 3,719 | ||||||||||||||
| Tax effect of adjustment items (Note 2) | (2,933) | (5,283) | (898) | (13,238) | (1,479) | (8,216) | (1,929) | ||||||||||||||
| After tax adjustment items | 10,187 | 19,883 | 4,511 | 47,155 | 6,306 | 30,070 | 8,988 | ||||||||||||||
| Tax expense attributable to acquisition<br><br>related compensation and acquired BOLI | — | — | 849 | — | — | — | — | ||||||||||||||
| Adjusted net income | $ | 42,423 | $ | 39,205 | $ | 66,608 | $ | 68,539 | $ | 45,210 | $ | 81,628 | $ | 87,797 | |||||||
| Weighted average number of shares -<br><br>diluted | 69,292,972 | 69,502,022 | 69,683,999 | 69,600,499 | 47,337,809 | 69,413,027 | 47,394,911 | ||||||||||||||
| Net income per diluted share | $ | 0.47 | $ | 0.28 | $ | 0.88 | $ | 0.31 | $ | 0.82 | $ | 0.74 | $ | 1.66 | |||||||
| Adjusted net income per diluted share | $ | 0.61 | $ | 0.56 | $ | 0.96 | $ | 0.98 | $ | 0.96 | $ | 1.18 | $ | 1.85 | |||||||
| Average assets | $ | 19,222,181 | $ | 18,056,445 | $ | 17,998,494 | $ | 17,340,387 | $ | 11,625,344 | $ | 18,649,746 | $ | 11,525,068 | |||||||
| Return on average assets | 0.67 | % | 0.43 | % | 1.35 | % | 0.49 | % | 1.34 | % | 0.56 | % | 1.38 | % | |||||||
| Adjusted return on average assets | 0.89 | % | 0.87 | % | 1.47 | % | 1.57 | % | 1.56 | % | 0.88 | % | 1.54 | % | |||||||
| Average common equity | $ | 2,478,373 | $ | 2,456,617 | $ | 2,437,272 | $ | 2,432,182 | $ | 1,519,598 | $ | 2,486,140 | $ | 1,499,144 | |||||||
| Average tangible common equity | $ | 1,462,871 | $ | 1,436,108 | $ | 1,432,081 | $ | 1,434,829 | $ | 964,841 | $ | 1,468,135 | $ | 941,489 | |||||||
| Return on average common equity | 5.23 | % | 3.16 | % | 9.97 | % | 3.49 | % | 10.27 | % | 4.17 | % | 10.60 | % | |||||||
| Adjusted return on average tangible<br><br>common equity | 11.66 | % | 10.98 | % | 18.45 | % | 18.95 | % | 18.79 | % | 11.18 | % | 18.81 | % | |||||||
| 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: A portion of the merger and conversion charges for all periods are nondeductible for tax purposes. | |||||||||||||||||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||||||||||||||||
| Non-GAAP Reconciliations (continued) | |||||||||||||||||||||
| Adjusted Efficiency Ratio (TE) | Table 9B | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Adjusted Noninterest Expense | |||||||||||||||||||||
| Total noninterest expense | $ | 155,768 | $ | 138,053 | $ | 122,564 | $ | 192,697 | $ | 81,251 | $ | 293,821 | $ | 156,676 | |||||||
| Adjustment items: | |||||||||||||||||||||
| Merger and conversion charges | (895) | (540) | (2,415) | (65,158) | (3,475) | (1,435) | (5,532) | ||||||||||||||
| Restructuring charges | (1,463) | — | — | — | — | (1,463) | (245) | ||||||||||||||
| Expenses related to SEC/DOJ Investigation | (1,294) | (1,443) | (463) | — | — | (2,737) | — | ||||||||||||||
| Natural disaster and pandemic charges | (2,043) | (548) | — | — | (50) | (2,591) | 39 | ||||||||||||||
| Loss on sale of premises | (281) | (470) | (1,413) | (889) | (2,800) | (751) | (3,719) | ||||||||||||||
| Adjusted noninterest expense | $ | 149,792 | $ | 135,052 | $ | 118,273 | $ | 126,650 | $ | 74,926 | $ | 284,844 | $ | 147,219 | |||||||
| Total Revenue | |||||||||||||||||||||
| Net interest income | $ | 163,814 | $ | 147,945 | $ | 155,351 | $ | 148,769 | $ | 101,651 | $ | 311,759 | $ | 201,046 | |||||||
| Noninterest income | 120,960 | 54,379 | 55,113 | 76,993 | 35,236 | 175,339 | 66,007 | ||||||||||||||
| Total revenue | $ | 284,774 | $ | 202,324 | $ | 210,464 | $ | 225,762 | $ | 136,887 | $ | 487,098 | $ | 267,053 | |||||||
| Adjusted Total Revenue | |||||||||||||||||||||
| Net interest income (TE) | $ | 165,178 | $ | 149,018 | $ | 156,454 | $ | 149,896 | $ | 102,713 | $ | 314,196 | $ | 203,166 | |||||||
| Noninterest income | 120,960 | 54,379 | 55,113 | 76,993 | 35,236 | 175,339 | 66,007 | ||||||||||||||
| Total revenue (TE) | 286,138 | 203,397 | 211,567 | 226,889 | 137,949 | 489,535 | 269,173 | ||||||||||||||
| Adjustment items: | |||||||||||||||||||||
| (Gain) loss on securities | (14) | 9 | (1) | (4) | (69) | (5) | (135) | ||||||||||||||
| Loss (gain) on BOLI proceeds | (845) | — | 752 | (4,335) | — | (845) | — | ||||||||||||||
| Servicing right impairment (recovery) | 7,989 | 22,165 | 366 | (1,319) | 1,460 | 30,154 | 1,460 | ||||||||||||||
| Adjusted total revenue (TE) | $ | 293,268 | $ | 225,571 | $ | 212,684 | $ | 221,231 | $ | 139,340 | $ | 518,839 | $ | 270,498 | |||||||
| Efficiency ratio | 54.70 | % | 68.23 | % | 58.24 | % | 85.35 | % | 59.36 | % | 60.32 | % | 58.67 | % | |||||||
| Adjusted efficiency ratio (TE) | 51.08 | % | 59.87 | % | 55.61 | % | 57.25 | % | 53.77 | % | 54.90 | % | 54.43 | % | |||||||
| Tangible Book Value Per Share | Table 9C | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Total shareholders' equity | $ | 2,460,130 | $ | 2,437,150 | $ | 2,469,582 | $ | 2,420,723 | $ | 1,537,121 | $ | 2,460,130 | $ | 1,537,121 | |||||||
| Less: | |||||||||||||||||||||
| Goodwill | 928,005 | 931,947 | 931,637 | 911,488 | 501,140 | 928,005 | 501,140 | ||||||||||||||
| Other intangibles, net | 80,354 | 85,955 | 91,586 | 97,328 | 52,437 | 80,354 | 52,437 | ||||||||||||||
| Total tangible shareholders' equity | $ | 1,451,771 | $ | 1,419,248 | $ | 1,446,359 | $ | 1,411,907 | $ | 983,544 | $ | 1,451,771 | $ | 983,544 | |||||||
| Period end number of shares | 69,461,968 | 69,441,274 | 69,503,833 | 69,593,833 | 47,261,584 | 69,461,968 | 47,261,584 | ||||||||||||||
| Book value per share (period end) | $ | 35.42 | $ | 35.10 | $ | 35.53 | $ | 34.78 | $ | 32.52 | $ | 35.42 | $ | 32.52 | |||||||
| Tangible book value per share (period end) | $ | 20.90 | $ | 20.44 | $ | 20.81 | $ | 20.29 | $ | 20.81 | $ | 20.90 | $ | 20.81 | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Segment Reporting | Table 10 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| Banking Division | |||||||||||||||||||||
| Net interest income | $ | 120,330 | $ | 118,375 | $ | 124,957 | $ | 124,262 | $ | 84,755 | $ | 238,705 | $ | 169,794 | |||||||
| Provision for credit losses | 86,805 | 35,997 | 4,741 | 3,549 | 2,306 | 122,802 | 4,364 | ||||||||||||||
| Noninterest income | 14,468 | 17,773 | 18,632 | 21,173 | 14,830 | 32,241 | 29,200 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 40,423 | 41,621 | 38,180 | 39,794 | 24,228 | 82,044 | 52,160 | ||||||||||||||
| Occupancy and equipment expenses | 11,679 | 10,347 | 10,216 | 10,750 | 7,034 | 22,026 | 14,315 | ||||||||||||||
| Data processing and telecommunications expenses | 8,919 | 10,797 | 10,156 | 9,551 | 7,635 | 19,716 | 15,227 | ||||||||||||||
| Other noninterest expenses | 27,997 | 30,645 | 23,176 | 87,059 | 22,728 | 58,642 | 39,684 | ||||||||||||||
| Total noninterest expense | 89,018 | 93,410 | 81,728 | 147,154 | 61,625 | 182,428 | 121,386 | ||||||||||||||
| Income before income tax expense | (41,025) | 6,741 | 57,120 | (5,268) | 35,654 | (34,284) | 73,244 | ||||||||||||||
| Income tax expense (benefit) | (8,582) | 275 | 15,412 | (1,269) | 8,691 | (8,307) | 17,466 | ||||||||||||||
| Net income (loss) | $ | (32,443) | $ | 6,466 | $ | 41,708 | $ | (3,999) | $ | 26,963 | $ | (25,977) | $ | 55,778 | |||||||
| Retail Mortgage Division | |||||||||||||||||||||
| Net interest income | $ | 24,302 | $ | 17,756 | $ | 18,223 | $ | 13,009 | $ | 7,567 | $ | 42,058 | $ | 13,320 | |||||||
| Provision for credit losses | 423 | 1,997 | 1,237 | 1,490 | 609 | 2,420 | 745 | ||||||||||||||
| Noninterest income | 104,195 | 34,369 | 33,335 | 52,493 | 18,070 | 138,564 | 32,360 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 50,003 | 31,097 | 28,233 | 34,144 | 11,886 | 81,100 | 20,093 | ||||||||||||||
| Occupancy and equipment expenses | 1,953 | 1,504 | 1,544 | 1,686 | 670 | 3,457 | 1,436 | ||||||||||||||
| Data processing and telecommunications expenses | 1,406 | 986 | 1,034 | 660 | 394 | 2,392 | 724 | ||||||||||||||
| Other noninterest expenses | 6,949 | 5,875 | 4,553 | 3,484 | 2,385 | 12,824 | 4,499 | ||||||||||||||
| Total noninterest expense | 60,311 | 39,462 | 35,364 | 39,974 | 15,335 | 99,773 | 26,752 | ||||||||||||||
| Income before income tax expense | 67,763 | 10,666 | 14,957 | 24,038 | 9,693 | 78,429 | 18,183 | ||||||||||||||
| Income tax expense | 14,231 | 2,408 | 3,371 | 5,048 | 2,170 | 16,639 | 3,783 | ||||||||||||||
| Net income | $ | 53,532 | $ | 8,258 | $ | 11,586 | $ | 18,990 | $ | 7,523 | $ | 61,790 | $ | 14,400 | |||||||
| Warehouse Lending Division | |||||||||||||||||||||
| Net interest income | $ | 5,026 | $ | 3,302 | $ | 3,771 | $ | 3,169 | $ | 2,987 | $ | 8,328 | $ | 5,677 | |||||||
| Provision for credit losses | 403 | (9) | 67 | — | — | 394 | — | ||||||||||||||
| Noninterest income | 727 | 960 | 610 | 560 | 450 | 1,687 | 829 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 209 | 210 | 325 | 286 | 162 | 419 | 323 | ||||||||||||||
| Occupancy and equipment expenses | 1 | 1 | 1 | 2 | 1 | 2 | 2 | ||||||||||||||
| Data processing and telecommunications expenses | 55 | 41 | 47 | 41 | 38 | 96 | 68 | ||||||||||||||
| Other noninterest expenses | 88 | 34 | 53 | 27 | 75 | 122 | 143 | ||||||||||||||
| Total noninterest expense | 353 | 286 | 426 | 356 | 276 | 639 | 536 | ||||||||||||||
| Income before income tax expense | 4,997 | 3,985 | 3,888 | 3,373 | 3,161 | 8,982 | 5,970 | ||||||||||||||
| Income tax expense | 1,049 | 837 | 816 | 708 | 664 | 1,886 | 1,254 | ||||||||||||||
| Net income | $ | 3,948 | $ | 3,148 | $ | 3,072 | $ | 2,665 | $ | 2,497 | $ | 7,096 | $ | 4,716 | |||||||
| AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| FINANCIAL TABLES | |||||||||||||||||||||
| Segment Reporting (continued) | Table 10 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2019 | 2020 | 2019 | ||||||||||||||
| SBA Division | |||||||||||||||||||||
| Net interest income | $ | 7,034 | $ | 2,181 | $ | 2,190 | $ | 2,573 | $ | 1,182 | $ | 9,215 | $ | 2,268 | |||||||
| Provision for credit losses | 2,322 | (903) | 150 | (15) | 178 | 1,419 | 409 | ||||||||||||||
| Noninterest income | 1,570 | 1,277 | 2,536 | 2,766 | 1,883 | 2,847 | 3,613 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 2,612 | 1,476 | 1,336 | 1,985 | 735 | 4,088 | 1,462 | ||||||||||||||
| Occupancy and equipment expenses | 97 | 97 | 79 | 66 | 65 | 194 | 124 | ||||||||||||||
| Data processing and telecommunications expenses | 15 | 13 | 5 | 22 | 3 | 28 | 5 | ||||||||||||||
| Other noninterest expenses | 359 | 515 | 402 | 503 | 359 | 874 | 746 | ||||||||||||||
| Total noninterest expense | 3,083 | 2,101 | 1,822 | 2,576 | 1,162 | 5,184 | 2,337 | ||||||||||||||
| Income before income tax expense | 3,199 | 2,260 | 2,754 | 2,778 | 1,725 | 5,459 | 3,135 | ||||||||||||||
| Income tax expense | 671 | 475 | 578 | 584 | 362 | 1,146 | 658 | ||||||||||||||
| Net income | $ | 2,528 | $ | 1,785 | $ | 2,176 | $ | 2,194 | $ | 1,363 | $ | 4,313 | $ | 2,477 | |||||||
| Premium Finance Division | |||||||||||||||||||||
| Net interest income | $ | 7,122 | $ | 6,331 | $ | 6,210 | $ | 5,756 | $ | 5,160 | $ | 13,453 | $ | 9,987 | |||||||
| Provision for credit losses | (1,792) | 3,965 | (502) | 965 | 1,575 | 2,173 | 2,558 | ||||||||||||||
| Noninterest income | — | — | — | 1 | 3 | — | 5 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 1,921 | 1,542 | 1,568 | 1,424 | 1,320 | 3,463 | 2,625 | ||||||||||||||
| Occupancy and equipment expenses | 77 | 79 | 79 | 135 | 64 | 156 | 161 | ||||||||||||||
| Data processing and telecommunications expenses | 119 | 117 | 120 | 98 | 318 | 236 | 755 | ||||||||||||||
| Other noninterest expenses | 886 | 1,056 | 1,457 | 980 | 1,151 | 1,942 | 2,124 | ||||||||||||||
| Total noninterest expense | 3,003 | 2,794 | 3,224 | 2,637 | 2,853 | 5,797 | 5,665 | ||||||||||||||
| (Loss) income before income tax expense | 5,911 | (428) | 3,488 | 2,155 | 735 | 5,483 | 1,769 | ||||||||||||||
| Income tax expense (benefit) | 1,240 | (93) | 782 | 621 | 177 | 1,147 | 331 | ||||||||||||||
| Net (loss) income | $ | 4,671 | $ | (335) | $ | 2,706 | $ | 1,534 | $ | 558 | $ | 4,336 | $ | 1,438 | |||||||
| Total Consolidated | |||||||||||||||||||||
| Net interest income | $ | 163,814 | $ | 147,945 | $ | 155,351 | $ | 148,769 | $ | 101,651 | $ | 311,759 | $ | 201,046 | |||||||
| Provision for credit losses | 88,161 | 41,047 | 5,693 | 5,989 | 4,668 | 129,208 | 8,076 | ||||||||||||||
| Noninterest income | 120,960 | 54,379 | 55,113 | 76,993 | 35,236 | 175,339 | 66,007 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 95,168 | 75,946 | 69,642 | 77,633 | 38,331 | 171,114 | 76,663 | ||||||||||||||
| Occupancy and equipment expenses | 13,807 | 12,028 | 11,919 | 12,639 | 7,834 | 25,835 | 16,038 | ||||||||||||||
| Data processing and telecommunications expenses | 10,514 | 11,954 | 11,362 | 10,372 | 8,388 | 22,468 | 16,779 | ||||||||||||||
| Other noninterest expenses | 36,279 | 38,125 | 29,641 | 92,053 | 26,698 | 74,404 | 47,196 | ||||||||||||||
| Total noninterest expense | 155,768 | 138,053 | 122,564 | 192,697 | 81,251 | 293,821 | 156,676 | ||||||||||||||
| Income before income tax expense | 40,845 | 23,224 | 82,207 | 27,076 | 50,968 | 64,069 | 102,301 | ||||||||||||||
| Income tax expense | 8,609 | 3,902 | 20,959 | 5,692 | 12,064 | 12,511 | 23,492 | ||||||||||||||
| Net income | $ | 32,236 | $ | 19,322 | $ | 61,248 | $ | 21,384 | $ | 38,904 | $ | 51,558 | $ | 78,809 |
CONTACT: Nicole S. Stokes, Chief Financial Officer, (404) 240-1514
abcb-ex992_9.pptx.htm
2nd Quarter 2020 Results Investor Presentation Exhibit 99.2
Cautionary Statements This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this presentation are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, political and market conditions and fluctuations; movements in interest rates and our expectations regarding net interest margin; expectations on credit quality and performance; legislative and regulatory changes; 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; 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, 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, 2019 and its 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.
COVID-19 Update Business Enacted Disaster Relief Program, which allows up to two, 90-day extension for qualified borrowers impacted by COVID-19 Participated in SBA Paycheck Protection Program (“PPP”) - $1.08 billion of approved loans to 8,269 customers Prudently advancing on existing lines of credit and extending new loans Consumer All branch drive thru facilities open; Branch lobbies available by appointment only; ATMs remain available Significant increase in Mobile Banking activations since self-quarantine began Disaster Relief Program, which allows two, 90-day payment delay for qualified consumers No negative credit bureau reporting for qualified borrowers impacted by COVID-19 Suspension of foreclosure activity for qualified borrowers impacted by COVID-19 Originated over $2.6 billion in residential single-family mortgages in 2Q20 Teammates Transitioned 75% of our employees to work remotely Implemented “Thank you” pay for employees who serve functions that cannot be performed remotely Continued to pay employees if branch hours were reduced or if they were asked to not work due to various risks Established Ameris Foundation, initially focused on COVID-19 related assistance for impacted employees Weekly CEO video updates and newsletters Expanded medical benefit plan to include zero cost for telehealth
Risk Management Operating Strength Diversification Entered pandemic in position of strength and forward momentum: Well capitalized Strong liquidity and continued funding opportunities Premier Southeastern markets Historically top quartile return on assets (>1.50% ROA for 2019) Disciplined rate cuts on funding side while growing core deposits Focus on expense control and improved operating efficiency Culture of Discipline Geographic Diversification Balance Sheet Diversification: CRE concentrations are moderate and forecast to decline Diversified loan portfolio across geography and product lines No direct credit exposure to energy sector – only indirect exposure via loans to C-store operators
2nd Quarter 2020 Financial Results
Earnings Summary – Adjusted Basis (dollars in thousands, except per share data) Quarter to Date Results Year To Date Results 2Q20 2Q19 Change 2020 2019 Change Adjusted Net Income $ 42,423 $ 45,210 -6% $ 81,628 $ 87,797 -7% Adjusted Net Income Per Share $ 0.61 $ 0.96 -36% $ 1.18 $ 1.85 -36% Adjusted Return on Assets 0.89% 1.56% -43% 0.88% 1.54% -43% Adjusted Return on TCE 11.66% 18.79% -38% 11.18% 18.81% -41% Net Interest Margin 3.83% 3.91% -2% 3.77% 3.93% -4% Adjusted Efficiency Ratio 51.08% 53.77% -5% 54.90% 54.43% 1% Adjusted Net Overhead Ratio 0.60% 1.37% -56% 1.18% 1.42% -17%
2Q 2020 Operating Highlights Net income of $32.2 million, after pre-tax provision for credit losses of $88.2 million Adjusted net income of $42.4 million, or $0.61 per diluted share Growth in adjusted total revenue of $67.7 million, or 30.0% when compared with 1Q20 Adjusted efficiency ratio of 51.08%, compared with 59.87% in 1Q20 Adjusted ROA of 0.89%, compared with 0.87% in 1Q20 Adjusted ROTCE of 11.66%, compared with 10.98% in 1Q20 Net interest margin of 3.83%, compared with 3.70% in 1Q20 Funded over 8,200 PPP loans totaling $1.08 billion in 2Q20 TBV increased $0.46 per share to $20.90 per share compared with $20.44 at 1Q20 Non-performing assets of 0.59% of total assets, compared with 0.61% at 1Q20
2020 YTD Operating Highlights Net income of $51.6 million, after pre-tax provision for credit losses of $129.2 million Adjusted net income of $81.6 million, or $1.18 per diluted share Growth in adjusted total revenue of $248.3 million, or 91.8% when compared with YTD 2019 Adjusted efficiency ratio of 54.90%, compared with 54.43% for YTD 2019 Adjusted ROA of 0.88%, compared with 1.54% for YTD 2019 Adjusted ROTCE of 11.18%, compared with 18.81% for YTD 2019 Net interest margin of 3.77%, compared with 3.93% for YTD 2019 Total loan growth of $1.7 billion including PPP loans; Organic loan growth of 10.3% annualized, excluding PPP loans Improvement in deposit mix such that noninterest bearing deposits represent 35.89% of total deposits, up from 29.94% at 4Q19
Operating Highlights Adjusted Operating Expenses exclude merger related charges, restructuring charges, natural disaster and pandemic charges, expenses related to SEC and DOJ investigation and loss on sale of premises Adjusted Efficiency ratio is Adjusted Operating Expenses divided by Net Interest Income (TE) plus Non-Interest Income, excluding gain/loss on securities, gain on BOLI proceeds and servicing right impairment/recovery (dollars in thousands) For the quarter For the year to date period 2Q20 2Q19 2020 2019 Asset Growth (1) 1,648,081 233,061 1,630,050 445,821 Asset Growth Rate 36.17% 8.00% 17.87% 7.79% Organic Loan Growth 1,409,051 581,382 1,684,681 563,978 Organic Loan Growth Rate 43.04% 28.38% 26.29% 13.74% Organic Loan Growth Ex. PPP 384,012 581,382 659,642 563,978 Organic Loan Growth Rate Ex. PPP 11.76% 28.38% 10.32% 13.74% Total Revenue 284,774 136,887 487,098 267,053 Total Revenue Growth 163.01% 20.65% 82.40% 31.83% Core Operating Expenses (2) 149,792 74,926 284,844 147,219 Core OPEX Growth 43.65% 14.57% 93.48% 22.66% Operating Efficiency (3) 51.08% 53.77% 54.90% 54.43%
Total Revenue Spread Revenues Quarterly growth in average earning assets of $1.14 billion, or 7.1%, from 1Q20 to 2Q20 Net Interest Margin improved to 3.83% in 2Q20, compared with 3.70% in 1Q20 Increase in margin in challenging rate environment as reduction in deposit costs and an increase in accretion income offset the full quarter impact of the March Fed rate cuts Downward repricing on deposits lowered total costs of deposits 32bps during the quarter Noninterest Income Mortgage banking Revenue increased $86.4 million, or 466.5%, in 2Q20 compared with 2Q19 Production increased $2.09 billion, or 356.4%, over the same period. 2Q20 was negatively impacted by $8.2 million servicing right valuation adjustment compared with $1.5 million in 2Q19. SBA revenues – gain on sale income decreased 42.0% from 2Q19 as focus was on PPP production.
Net Interest Margin Stable margins over the entire rate cycle. Loan Production Details Period Fixed Rate Variable Rate Total 2Q20 $ 275.4 3.88% $ 196.7 4.55% $ 472.1 4.16% 1Q20 $ 481.5 4.37% $ 436.9 4.75% $ 918.4 4.55% 4Q19 $ 553.2 4.26% $ 543.2 5.15% $1,096.3 4.70% Spread Income and Margin: Average earning assets were up $1.14 billion, while spread income increased $16.2 million Margin up 13bps in the second quarter Increase in accretion income due to acceleration in payoffs PPP income of $5.8 million Deposit costs decreased by 32bps Growth in noninterest bearing deposits during the second quarter such that noninterest bearing deposits are over 35% of total deposits at quarter end Accretion income a small part of our revenues: 3.3% of revenue in 2020 YTD 2.8% of revenue in 2019 2.6% of revenue in 2018 2.9% of revenue in 2017
Expenses Steady, Adjusted Operating Expenses(1) OPEX Highlights: 1 – Adjusted Operating Expenses exclude merger and conversion costs, executive retirement benefits, restructuring charges related to branch consolidation plan and efficiency initiatives, natural disaster and pandemic expenses, expenses related to SEC and DOJ investigation and loss on sale of premises. Total adjusted operating expenses increased $14.7 million in 2Q20 compared with 1Q20 all due to lines of business and was more than offset by revenue growth in those businesses Excluding lines of business, core operating expenses decreased $7.4 million in 2Q20 Increase in lines of business operating expenses is due to increased variable costs (primarily commissions) driven by increased production and revenue levels $20.8 million increase in retail mortgage $1.0 million increase in SBA related to PPP overtime and incentives Continue to drive expense control behaviors throughout the Company to fund future technology and innovation costs: Identified 9 branches to be closed in 3Q20 Determined 2 branches to be drive thru only post-COVID Reviewing lease portfolio for non-retail. locations that can be terminated or not renewed
Capital and TBV Consistent Growth in TBV Steady Capital Levels Support Growth Rate Historically, consistent growth in TBV TBV increased $0.46 per share in 2Q20: $0.31 from retained earnings $0.15 from all other items including treasury stock transactions TBV negatively impacted $0.82 by adoption of CECL in 1Q20 TCE / TA at quarter end of 7.70%, down from 8.25% at the end of 1Q20 primarily due to balance sheet growth related to PPP loans 2Q20 Adjusted ROTCE of 11.66%
Loan Diversification and Credit Quality
Diversified Loan Portfolio 2Q20 Loan Portfolio Loan portfolio is well-diversified across all loan types C&I loans represent the largest category of loans PPP loan production in 2Q totaled $1.08 billion, which added ~8% to this category Only 11% of total loans are construction or A&D loans Average loan size is $61,700 across all loan types CRE and C&D concentrations are 252% and 85%, respectively, at June 30, 2020 Linked-quarter EOP loan growth was $1.4 billion, with PPP loans accounting for $1.08 billion of that total. Excluding PPP loans, growth was $384 million, or 11.8% annualized
Diversified Loan Portfolio In-house lending limit is $50 million, or only 10% of legal lending limit of $482.6 million Largest individual loan is $51 million total committed exposure Total participations purchased are less than 1% of outstanding balances Relationship Groupings Total Committed Exposure (MM's) % of Total Legacy (FIS) Portfolio Top 25 Relationships $ 1,053.3 8.9% Top 50 Relationships $ 1,824.6 15.4% Top 100 Relationships $ 2,926.0 24.7% Top 250 Relationships $ 4,698.7 39.6% Top 300 Relationships $ 5,069.6 42.8%
COVID-19 Response 2Q20 COVID-related Payment Extensions As a % of Portfolio Volume Our COVID-19 disaster program included an initial payment extension for up to 90-days. A second, 90-day extension is available for customers that continue to be impacted by the pandemic. Through July 15, 2020, we had provided payment relief to almost 11,000 customers totaling $2.8 billion across all loan products, which equates to 21% of Total Loans, excluding PPP loans Customers who opted out of their approved extension or have reverted to pre-COVID payments totaled $1.0 billion, or 36% of total deferrals Thus far, customers requesting the additional 90-day extension totaled $291.5 million, with a high concentration in hotel borrowers SBA’s Paycheck Protection Program – we extended loans to 8,269 customers totaling $1.08 billion Of the total PPP loans, 6,657 loans (81% of total) for $294.2 million were < $150,000 SBA Fee Category Count Dollars Approved (MM's) Avg Size (M's) 1% 36 $ 123.0 $ 3,416.0 3% 604 $ 446.2 $ 738.8 5% 7,629 $ 512.8 $ 67.2 Totals 8,269 $ 1,082.0 $ 130.7
Allowance for Loan Losses The ALLL totaled $208.8 million at 6/30/20, a net increase of $59.3 million, or 40% from 3/31/20. The reserve for unfunded commitments totaled $37.5 million, an increase of $19.7 million, or 111% from 3/31/20 2Q20 provision expense totaled $88.2 million, primarily the result of the update to the economic forecast model, which accounted for an increase in the ALLL of $56.5 million The 6/30/20 ALLL equated to 1.44% of Gross Loans and 1.56%, not of PPP Loans 2Q20 CECL Reserve Updated as of: 44012 ALLL Summary Reserve Change due to Loan Growth ALLL at 3/31/20 Loan Growth Net Charge-Offs Specific Reserves Forecast Model Changes ALLL at 6/30/2020 43921 44012 % LLR Change Reserve impact 2Q20 Allowance Coverage Outstanding Balance (MM's) ALLL (MM's) % ALLL Agriculture $0.7 $0.1 $0 $0 $1 $1.8 $230.1 $241.5 7.4534161490683228E-3 $11.400000000000006 $8.4968944099378926E-2 Gross Loans $14,503 $208.8 1.4397021305936704E-2 CFIA $9.6 $0.6 $-0.1 $1.6 $-2.1999999999999993 $9.5 $2,070.4 $2,214.1999999999998 4.2904886640773195E-3 $143.79999999999973 $0.61697226989431742 less: PPP Loans $-1,082 Real Estate - Investor CRE $59.8 $5.3 $-5.0999999999999996 $5 $48.400000000000006 $113.4 $4,449.6000000000004 $4,670.3999999999996 2.4280575539568347E-2 $220.79999999999927 $5.3611510791366737 Net Loans $13,421 $208.8 1.5557708069443411E-2 Real Estate - Owner Occupied $16.2 $0.8 $-1.1000000000000001 $1.9 $5.3000000000000043 $23.1 $1,484.4 $1,536.1 1.5038083458108198E-2 $51.699999999999818 $0.77746891478419111 Unfunded Commitments $2,806.7 $37.5 1.3360886450279689E-2 Real Estate - Residential $32.1 $0.5 $-0.4 $-4 $1.0999999999999943 $29.3 $2,637 $2,680.1 1.0932427894481549E-2 $43.099999999999909 $0.47118764225215376 Total Loans + Unfunded $16,227.7 $246.3 1.5177751622226194E-2 Consumer $18.7 $-2.6 $-1.2 $0 $8.5 $23.4 $1,451.6 $1,304.8 1.7933782955242183E-2 $-,146.79999999999995 $-2.6326793378295514 US Premium Finance $11.5 $0.2 $-1.3 $2.6 $-4.6999999999999993 $8.3000000000000007 $709.7 $732.2 1.1335700628243649E-2 $22.5 $0.25505326413548207 Other $0.9 $0 $0 $0 $-0.9 $0 $0 $0 0 $0 $0 $149.5 $4.8999999999999995 $-9.1999999999999993 $7.1 $56.500000000000007 $208.80000000000004 $13,032.800000000001 $13,379.3 1.5606197633657969E-2 $346.49999999999875 $4.9341227764726456 Unfunded Commitments $17.8 $2 $0 $0 $17.7 $37.5 $0 $1,080 $63.6 $48.8 $13,096.400000000001 $14,508.99999999999 1.4391960353182021E-2 ALLL at 3/31/20 Loan Growth Net Charge-Offs Specific Reserves Forecast Model Changes ALLL at 6/30/20 $149.5 $4.8999999999999995 $-9.1999999999999993 $7.1 $56.500000000000007 $208.80000000000004
NPA / Charge-Off Trend Non-Performing Assets (“NPA”) increased to $117.7 million at 2Q20, primarily as a result of: Increased loans 90+ days past due and still accruing, and $3.1 million increase in OREO and repossessed collateral. As a percentage of Total Assets, Total NPAs declined to 0.59%. Net Charge-Offs (“NCO”) totaled $9.2 million in 2Q20, which equated to an annualized NCO ratio of 0.27%. YTD NCOs totaled $13.6 million, which equated to an annualized NCO ratio of 0.20%. $3.7 million of 2Q20 NCOs was the result of the sale of ~$9.8 million of substandard loans that had been acquired via the merger with Fidelity Bank.
Investor CRE Loans Total restaurant exposure is $127.1 million, or less than 1% of total loans In addition, $78.1 million of PPP loans were funded to restaurant industry. Updated as of: 44012 Investor CRE Portfolio (CRE, MULTI, CONST) Loan Type Outstanding (MM's) % NPL % PD Avg Size Commitment (000's) Construction Loans: RRE - Spec & Models $299.3 5.9999999999999995E-4 1.6000000000000001E-3 $241.8 RRE - Presold $194.4 0 3.8E-3 $272.5 RRE - Subdivisions $57.4 0 0 $1,523.3 RRE - Lots & Land $92.8 6.7999999999999996E-3 4.0000000000000002E-4 $123 Sub-Total RRE Construction $643.9 0 0 $296.3 CML - Improved $792.2 0 0 $7,039.7 CML - Raw Land & Other $92.5 1.41E-2 1.6999999999999999E-3 $339.9 Sub-Total CRE Construction $884.7 1.5E-3 2.0000000000000001E-4 $3,235.4 Total Construction Loans $1,528.6 1.4E-3 8.9999999999999998E-4 $706.9 Term Loans: Office $606.29999999999995 1E-4 4.0000000000000002E-4 $1,241.5 Hotels / Motels $494.7 4.1000000000000003E-3 0 $2,915.5 Retail (inc Single-Tenant) $494.5 1E-3 0 $968.5 Strip Center, Anchored $322.8 0 0 $4,664.8999999999996 Strip Center, Non-Anchored $286.8 0 0 $1,919.8 Multi-Family $273.2 8.0000000000000004E-4 0 $1,686.2 Warehouse / Industrial $233.4 7.6E-3 0 $982.8 Assisted Living Facilities $175.9 0 0 $4,575.1000000000004 Mini-Storage Warehouse $117.3 0 0 $1,541.1 Misc CRE (Church, etc) $84.1 3.5000000000000001E-3 2.9999999999999997E-4 $751.4 Other $4 0 0 $270.89999999999998 Sub-Total CRE Term Loans $3,093 1.6000000000000001E-3 1E-4 $1,516.1 Grand Total Investor CRE Loans $4,621.6000000000004 1.5E-3 4.0000000000000002E-4 $997.5 Investor CRE by MSA MSA Outstanding (MM's) % of Total Atlanta GA MSA $1,480.6 0.32037217353673048 Jacksonville FL MSA $761.2 0.16470842799956725 Orlando FL MSA $242.1 5.2% Charleston SC MSA $221.5 4.8% Savannah GA MSA $161.5 3.5% Columbia SC MSA $135.19999999999999 2.9% Greenville SC MSA $121.8 2.6% All Other MSAs $948.8 0.20530130909877745 Non-MSAs w/in Footprint $300.7 6.5% Other Markets $248.1 5.4% Grand Total $4,621.5 100.0%
Hotel Exposure at 6/30/20 Hotel exposure totaled $569.5 million at 6/30/20, or 4.2% of Total Loans (excluding PPP loans). Approximately 12% of total committed exposure guaranteed by US Government Agencies (SBA or USDA). Top-Tier brands represent ~75% of exposure. All National brands totaled ~94% of outstanding balances. The weighted average loan to value is 60%. Over 75% of exposure located within the Bank’s primary MSAs. Only $1.5 million, or 0.24% of outstanding, was non-performing at 6/30/20. As of 7/15/20, $486.8 million, or 85.5% of total outstanding loans had applied for COVID-19 payment relief. A total of $8.1 million of PPP loans were extended to hotel borrowers. # $$ Commitment (MM's) $$ Outstanding (MM's) $$ Avg Committed Balance (M's) Term CRE 118 $ 464.8 $ 462.2 $ 3.9 In-Process Construction 10 $ 80.4 $ 43.5 $ 8.0 Government Guaranteed (SBA, USDA) 62 $ 77.5 $ 63.8 $ 1.2 Totals 190 $ 622.7 $ 569.5 $ 3.3
2Q20 Commercial Real Estate Production 2Q20 Commercial Real Estate Production Summary: 2Q20 Construction and Development Loan Production Summary: 2Q20 production of C&D and CRE loans - $517.2 million committed exposure Residential Real Estate Construction: 2Q20 production spec & model to pre-sold ratio of 0.9:1 Total RRE construction portfolio global spec to pre-sold was 1.5:1 Total spec loans at low average loan size of $241.8 thousand Investor CRE 2Q20 production: Production totaled $308.9 million is 2Q20, a 14% increase over 1Q20 production Weighted Average 1.67:1 debt service coverage Weighted Average 64.0% loan/value Loan Type Outstanding (MM's) Committed Exposure (MM's) Avg Size Commitment (000's) RRE Construction - Pre-Sold $ 45.1 $ 106.3 $ 240.9 RRE Construction - Spec $ 32.6 $ 92.1 $ 251.1 A&D, RRE Lots, Other Land Loans $ 5.6 $ 5.8 $ 242.6 RRE Construction - Model $ 1.8 $ 4.1 $ 293.1 Total Construction Loans $ 85.1 $ 208.3 $ 247.1 Updated as of: 44012 Production New CRE Guaranty Structure Loan Type Outstanding (MM's) Committed Exposure (MM's) Debt Service Coverage (DSC)* Loan / Value* Guaranty Structure Outstanding (MM's) Committed Exposure (MM's) Debt Service Coverage (DSC)* Loan / Value* Office $78.099999999999994 $87.2 1.68 0.65849999999999997 Full Guaranty $59.8 $92.6 1.67 0.61680000000000001 Mortgages $,147,464,192.15000004 Retail (inc Single-Tenant) $31.6 $52.9 1.6 0.63460000000000005 Non-Recourse $88.4 $88.4 1.51 0.62770000000000004 Legacy $,459,718,466.91000158 Warehouse / Industrial $30.3 $46.7 1.57 0.6421 Burn Down Guaranty $33.700000000000003 $77.2 1.7 0.67290000000000005 USPF $,335,157,748.60000122 Strip Center, Non-Anchored $16.8 $38.799999999999997 1.5 0.66559999999999997 Burn Off Guaranty $17 $24.4 1.64 0.66990000000000005 WHSE $,762,348,700.35000002 Strip Center, Anchored $27.7 $27.7 2.09 0.66810000000000003 Limited Guaranty - By % $4.3 $12.3 2.4500000000000002 0.67849999999999999 PPP $1,081,981,766.5899999 Assisted Living Facilities $2.1 $18.100000000000001 1.66 0.62970000000000004 Exempt / Direct Debt $6.4 $7.8 1.9 0.63300000000000001 INST Purchases $33,943,722.500000075 Other CRE Types $15 $15.2 1.71 0.47460000000000002 Limited Guaranty - By $$ $6.2 $6.2 1.75 0.67390000000000005 Multi-Family $7.9 $15 1.79 0.69140000000000001 Total CRE Loans $215.79999999999998 $308.89999999999998 1.67 0.63959999999999995 $2,820,614,597.1000028 Misc CRE (Church, etc.) $6.3 $7.3 1.66 0.45250000000000001 *Based on the average of all loans in that category > $250M Committed Exposure Total CRE Loans $215.8 $308.90000000000003 1.67 0.63959999999999995 *Based on the average of all loans in that category > $250M Committed Exposure New C&D Loan Type Outstanding (MM's) Committed Exposure (MM's) Avg Size Commitment (000's) RRE Construction - Pre-Sold $45.1 $106.3 $240.9 RRE Construction - Spec $32.6 $92.1 $251.1 A&D, RRE Lots, Other Land Loans $5.6 $5.8 $242.6 RRE Construction - Model $1.8 $4.0999999999999996 $293.10000000000002 Total Construction Loans $85.1 $208.29999999999998 $247.1
C&I Loans US Premium Finance 2Q20 production statistics: Mortgage Warehouse Division funded $3.2 billion in 2Q20, a 100% increase over 2Q19 YTD, total loans funded were $5.4 billion 2Q20 Statistics: Total approved guidance lines = $1.2 billion Average days on line = 15 days No losses since 2016 Updated as of: 44012 CFIA Loans Loan Type Outstanding (MM's) % of Portfolio $$ NPL (MM's) % NPL Avg Loan Size (000's) PPP Loans $1,082 0.32783904981214396 $0 0 $130.6 Mortgage Warehouse / MSR $762.3 0.23097200339352802 $0 0 $332 US Premium Finance $732.2 0.22185189673978911 $10.199999999999999 1.3930620049166892E-2 $16.8 Equipment $151.30000000000001 4.6% $1.7 1.1235955056179775E-2 $74.900000000000006 Ameris Equipment Finance $91.5 2.8% $0 0 $209 Patriot Capital $90.3 2.7% $1.1000000000000001 1.2181616832779624E-2 $73.7 A/R & Inventory $86.1 2.6% $0.7 8.130081300813009E-3 $137.80000000000001 Government Guaranteed Lending $48 1.5% $4.7 9.7916666666666666E-2 $118.2 Other $256.7 7.8% $2.5 9.7389949357226339E-3 $148.30000000000001 Totals $3,300.4 100.0% $20.9 6.3325657496061082E-3 2Q20 Rolling 12-mos New Production ($MM's) $453.4 $1,667.5 Weighted-Avg Down Payment 0.221 0.219 Weighted-Avg # Instalments 9.6 9.6999999999999993 Updated as of: 44012 CFIA Loans Loan Type Outstanding (MM's) % of Portfolio $$ NPL (MM's) % NPL Avg Loan Size (000's) PPP Loans $1,082 0.32783904981214396 $0 0 $130.6 Mortgage Warehouse / MSR $762.3 0.23097200339352802 $0 0 $332 US Premium Finance $732.2 0.22185189673978911 $10.199999999999999 1.3930620049166892E-2 $16.8 Equipment $151.30000000000001 4.6% $1.7 1.1235955056179775E-2 $74.900000000000006 Ameris Equipment Finance $91.5 2.8% $0 0 $209 Patriot Capital $90.3 2.7% $1.1000000000000001 1.2181616832779624E-2 $73.7 A/R & Inventory $86.1 2.6% $0.7 8.130081300813009E-3 $137.80000000000001 Government Guaranteed Lending $48 1.5% $4.7 9.7916666666666666E-2 $118.2 Other $256.7 7.8% $2.5 9.7389949357226339E-3 $148.30000000000001 Totals $3,300.4 100.0% $20.9 6.3325657496061082E-3 USPF Production 2Q20 Rolling 12-mos New Production ($MM's) $453.4 $1,667.5 Weighted-Avg Down Payment 0.221 0.219 Weighted-Avg # Installments 9.6 9.6999999999999993
Ameris Bancorp Press Release & Financial Highlights June 30, 2020