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 26, 2022 | |
|---|---|---|
| Ameris Bancorp | ||
| --- | --- | --- |
| (Exact Name of Registrant as Specified in Charter) | ||
| Georgia | 001-13901 | 58-1456434 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 3490 Piedmont Road N.E., Suite 1550, Atlanta, Georgia | 30305 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s telephone number, including area code: | (404) 639-6500 | |
| --- | --- | |
| (Former Name or Former Address, if Changed Since Last Report) | ||
| --- |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | ABCB | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 26, 2022, Ameris Bancorp (the “Company”) issued a press release announcing its unaudited financial results for the quarter ended June 30, 2022. 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, 2022 is attached to this Report as Exhibit 99.2. The investor presentation material is also available on the “Investor Relations” page of the Company’s website (http://www.amerisbank.com).
The information contained in this Item 7.01 and in Exhibit 99.2 attached to this Report is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, such information shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| 99.1 | Press release dated July 26, 2022 |
|---|---|
| 99.2 | Investor Presentation re: 2^nd^ Quarter 2022 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 26, 2022
Exhibit 99.1
AMERIS BANCORP ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2022
Highlights of the Company's results for the second quarter of 2022 include the following:
- Net income of $90.1 million, or $1.30 per diluted share
- Growth in tangible book value of $1.05 per share, or 15.7% annualized, to $27.89 at June 30, 2022
- Adjusted total revenue grew $14.2 million, or 5.7%, when compared to last quarter
- Improvement in net interest margin of 31bps, from 3.35% last quarter to 3.66% this quarter
- Adjusted return on average assets of 1.40%
- Adjusted return on average tangible common equity of 17.18%
- Adjusted efficiency ratio of 53.66%, compared with 56.95% last quarter
- Organic growth in loans of $1.4 billion, or 35.1% annualized
- Continued growth in noninterest bearing deposits, representing 41.98% of total deposits, from 40.18% at March 31, 2022 and 38.25% a year ago
ATLANTA, July 26, 2022 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $90.1 million, or $1.30 per diluted share, for the quarter ended June 30, 2022, compared with $88.3 million, or $1.27 per diluted share, for the quarter ended June 30, 2021. The Company reported adjusted net income of $81.5 million, or $1.18 per diluted share, for the quarter ended June 30, 2022, compared with $87.5 million, or $1.25 per diluted share, for the same period in 2021. Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, gain on bank owned life insurance ("BOLI") proceeds and gain/loss on sale of bank premises.
For the year-to-date period ending June 30, 2022, the Company reported net income of $171.8 million, or $2.47 per diluted share, compared with $213.3 million, or $3.06 per diluted share, for the same period in 2021. The Company reported adjusted net income of $156.5 million, or $2.25 per diluted share, for the six months ended June 30, 2022, compared with $203.3 million, or $2.91 per diluted share, for the same period in 2021. 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, "Our strong second quarter financial results are attributable to our solid banking fundamentals. We grew revenue, improved our margin, expanded our earning asset base and grew tangible book value by $1.05 per share this quarter. We are well positioned for future interest rate hikes, and we continue to monitor our loan growth and credit metrics very closely. Southeastern markets where we operate continue to provide opportunities for responsible growth. We remain focused on our core fundamentals going into the third quarter."
Increase in Net Interest Income and Net Interest MarginNet interest income on a tax-equivalent basis (TE) increased to $192.3 million in the second quarter of 2022, an increase of $18.8 million, or 10.8%, from last quarter and an increase of $29.3 million, or 18.0%, compared to the second quarter of 2021. Interest income on a tax-equivalent basis increased by $19.2 million, or 10.4%, in the current quarter while interest expense increased only $374,000, or 3.5%, compared to the first quarter of 2022.
The Company's net interest margin improved significantly to 3.66% for the second quarter of 2022, up from 3.35% reported for the first quarter of 2022 and 3.34% reported for the second quarter of 2021. While average earning assets remained consistent at $21.1 billion from the previous quarter, the mix of earning assets expanded the margin as the Company began to deploy excess liquidity through the investment portfolio and organic loan growth.
Yields on earning assets increased 32 basis points during the quarter to 3.88%, compared with 3.56% in the first quarter of 2022, and increased 30 basis points from 3.58% in the second quarter of 2021. Yields on loans decreased to 4.32% during the second quarter of 2022, compared with 4.37% for the first quarter of 2022 and 4.33% for the second quarter of 2021. Loan yields in the second quarter of 2022 were negatively impacted approximately four basis points by declines in fee income on Paycheck Protection Program ("PPP") loans compared with the first quarter of 2022. In addition, the Company incurred net accretion expense in the second quarter of $379,000, compared with accretion income of $1.0 million in the first quarter of 2022 and $4.5 million for the second quarter of 2021.
Loan production in the banking division during the second quarter of 2022 was $1.07 billion, with weighted average yields of 5.24%, compared with $805.5 million and 5.17%, respectively, in the first quarter of 2022 and $911.3 million and 3.75%, respectively, in the second quarter of 2021. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $5.3 billion during the second quarter of 2022, with weighted average yields of 4.29%, compared with $4.7 billion and 3.63%, respectively, during the first quarter of 2022 and $6.4 billion and 3.36%, respectively, during the second quarter of 2021.
The Company's total cost of funds was unchanged at 0.22% in the second quarter of 2022 as compared with the first quarter of 2022. Deposit costs increased just one basis point during the second quarter of 2022 to 0.10%, compared with 0.09% in the first quarter of 2022. Costs of interest-bearing deposits increased during the quarter from 0.14% in the first quarter of 2022 to 0.17% in the second quarter of 2022.
Noninterest IncomeNoninterest income decreased $3.1 million, or 3.5%, in the second quarter of 2022 to $83.8 million, compared with $86.9 million for the first quarter of 2022, primarily as a result of decreased mortgage banking activity, which declined by $4.2 million, or 6.6%, to $58.8 million in the second quarter of 2022, compared with $62.9 million for the first quarter of 2022. Gain on sale spreads decreased to 2.36% in the second quarter of 2022 from 2.94% for the first quarter of 2022. Total production in the retail mortgage division increased to $1.73 billion in the second quarter of 2022, compared with $1.53 billion for the first quarter of 2022. The retail mortgage open pipeline was $832.3 million at the end of the second quarter of 2022, compared with $1.41 billion at March 31, 2022. Mortgage banking activity included a $10.8 million recovery of servicing right impairment recorded in the second quarter of 2022, compared with a recovery of $9.7 million for the first quarter of 2022.
Other noninterest income increased $683,000, or 5.7%, in the second quarter of 2022 to $12.7 million, compared with $12.0 million for the first quarter of 2022, primarily as a result of a $1.6 million impact from the recently acquired Balboa Capital. Also contributing to the increase were increases in swap income of $326,000 and BOLI income of $179,000, partially offset by a decrease in gains on sale of SBA loans of $1.2 million.
Noninterest ExpenseNoninterest expense decreased $1.6 million, or 1.1%, to $142.2 million during the second quarter of 2022, compared with $143.8 million for the first quarter of 2022. During the second quarter of 2022, the Company recorded a net gain of $39,000 related to bank premises, compared with a net gain on bank premises of $6,000 and merger and conversion charges of $977,000 during the first quarter of 2022. Excluding those charges, adjusted expenses decreased approximately $614,000, or 0.4%, to $142.2 million in the second quarter of 2022, from $142.8 million in the first quarter of 2022. The decrease in adjusted expenses resulted from cyclical payroll tax and 401(k) expenses in the first quarter of 2022, partially offset by an increase in advertising and marketing expenses.
Management continues to focus its efforts on improving the operating efficiency of the Company. The adjusted efficiency ratio decreased to 53.66% in the second quarter of 2022, compared with 56.95% in the first quarter of 2022.
Income Tax ExpenseThe Company's effective tax rate for the second quarter of 2022 was 23.7%, compared with 25.3% in the first quarter of 2022. The decreased rate for the second quarter of 2022 was primarily a result of a discrete charge to the Company's state tax liability and nondeductible merger expenses incurred in the first quarter of 2022.
Balance Sheet TrendsTotal assets at June 30, 2022 were $23.69 billion, compared with $23.86 billion at December 31, 2021. While total assets have not materially changed, the Company improved the earning asset mix through a shift in reinvestment of excess liquidity to the securities portfolio and loans held for investment. Debt securities available-for-sale increased $459.6 million, or 77.6%, from $592.6 million at December 31, 2021 to $1.05 billion at June 30, 2022. Loans, net of unearned income, increased $1.69 billion, or 21.4% annualized, to $17.56 billion at June 30, 2022, compared with $15.87 billion at December 31, 2021. Organic loan growth in the second quarter of 2022 was $1.4 billion, or 35.1% annualized, which included managed growth in residential mortgage loans of $555 million and seasonal increases in mortgage warehouse and agricultural loans of $217 million and $40.5 million, respectively. As a result of the purposeful origination of residential mortgage loans into the portfolio, loans held for sale decreased $699.0 million from $1.25 billion at December 31, 2021 to $555.7 million at June 30, 2022.
At June 30, 2022, total deposits amounted to $19.68 billion, or 97.3% of total funding, compared with $19.67 billion and 95.8%, respectively, at December 31, 2021. At June 30, 2022, noninterest-bearing deposit accounts were $8.26 billion, or 42.0% of total deposits, compared with $7.77 billion, or 39.5% of total deposits, at December 31, 2021. Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $13.06 billion at June 30, 2022, compared with $12.52 billion at December 31, 2021. These funds represented 66.3% of the Company's total deposits at June 30, 2022, compared with 63.6% at the end of 2021, which continues to positively impact the cost of funds sensitivity in a rising rate environment.
Shareholders' equity at June 30, 2022 totaled $3.07 billion, an increase of $106.9 million, or 3.6%, from December 31, 2021. The increase in shareholders' equity was primarily the result of earnings of $171.8 million during the first six months of 2022, partially offset by dividends declared, share repurchases and the impact to other comprehensive income resulting from rising rates on our investment portfolio. The Company repurchased 118,157 shares of the Company's common stock at a cost of $5.0 million during the second quarter of 2022. The Company recorded dilution of $0.16 per share, or less than 0.6%, to tangible book value this quarter from other comprehensive income related to the increase in net unrealized losses on the securities portfolio. Tangible book value per share was $27.89 at June 30, 2022, compared with $26.26 at December 31, 2021. Tangible common equity as a percentage of tangible assets was 8.58% at June 30, 2022, compared with 8.05% at the end of 2021.
Credit QualityCredit quality remains strong in the Company. During the second quarter of 2022, the Company recorded a provision for credit losses of $14.9 million, compared with a provision of $6.2 million in the first quarter of 2022. This provision was primarily attributable to the $1.4 billion in organic loan growth during the quarter. Nonperforming assets as a percentage of total assets increased nine basis points to 0.56% during the quarter. The net charge-off ratio was four basis points for the second quarter of 2022, compared with nine basis points in the first quarter of 2022 and seven basis points in the second quarter of 2021.
Conference CallThe Company will host a teleconference at 9:00 a.m. Eastern time on Wednesday, July 27, 2022, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 603616. A replay of the call will be available one hour after the end of the conference call until August 10, 2022. To listen to the replay, dial 1-866-813-9403. The conference replay access code is 568609. The financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.
About Ameris BancorpAmeris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 164 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.
This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods anddemonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should,""plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers, collateral values,asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing ofother business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the Company's subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
|---|---|---|---|---|---|---|---|
| FINANCIAL TABLES | |||||||
| Financial Highlights | Table 1 | ||||||
| Three Months Ended | Six Months Ended | ||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |
| (dollars in thousands except per share data) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| EARNINGS | |||||||
| Net income | $ 90,066 | $ 81,698 | $ 81,944 | $ 81,680 | $ 88,327 | $ 171,764 | $ 213,289 |
| Adjusted net income | $ 81,473 | $ 75,039 | $ 81,544 | $ 83,861 | $ 87,548 | $ 156,512 | $ 203,294 |
| COMMON SHARE DATA | |||||||
| Earnings per share available to common<br><br>shareholders | |||||||
| Basic | $ 1.30 | $ 1.18 | $ 1.18 | $ 1.18 | $ 1.27 | $ 2.48 | $ 3.07 |
| Diluted | $ 1.30 | $ 1.17 | $ 1.18 | $ 1.17 | $ 1.27 | $ 2.47 | $ 3.06 |
| Adjusted diluted EPS | $ 1.18 | $ 1.08 | $ 1.17 | $ 1.20 | $ 1.25 | $ 2.25 | $ 2.91 |
| Cash dividends per share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 |
| Book value per share (period end) | $ 44.31 | $ 43.31 | $ 42.62 | $ 41.66 | $ 40.66 | $ 44.31 | $ 40.66 |
| Tangible book value per share (period end) | $ 27.89 | $ 26.84 | $ 26.26 | $ 27.46 | $ 26.45 | $ 27.89 | $ 26.45 |
| Weighted average number of shares | |||||||
| Basic | 69,136,046 | 69,345,735 | 69,398,594 | 69,439,845 | 69,496,666 | 69,246,084 | 69,447,503 |
| Diluted | 69,316,258 | 69,660,990 | 69,738,426 | 69,756,135 | 69,791,670 | 69,484,508 | 69,764,923 |
| Period end number of shares | 69,360,461 | 69,439,084 | 69,609,228 | 69,635,435 | 69,767,209 | 69,360,461 | 69,767,209 |
| Market data | |||||||
| High intraday price | $ 46.28 | $ 55.62 | $ 56.64 | $ 53.63 | $ 59.85 | $ 55.62 | $ 59.85 |
| Low intraday price | $ 39.37 | $ 43.56 | $ 46.20 | $ 44.92 | $ 47.44 | $ 39.37 | $ 36.60 |
| Period end closing price | $ 40.18 | $ 43.88 | $ 49.68 | $ 51.88 | $ 50.63 | $ 40.18 | $ 50.63 |
| Average daily volume | 446,121 | 471,858 | 350,119 | 392,533 | 429,233 | 458,990 | 444,733 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets | 1.54 % | 1.42 % | 1.41 % | 1.47 % | 1.64 % | 1.48 % | 2.03 % |
| Adjusted return on average assets | 1.40 % | 1.31 % | 1.40 % | 1.51 % | 1.63 % | 1.35 % | 1.94 % |
| Return on average common equity | 11.87 % | 11.06 % | 11.06 % | 11.27 % | 12.66 % | 11.47 % | 15.66 % |
| Adjusted return on average tangible common<br><br>equity | 17.18 % | 16.38 % | 16.88 % | 17.65 % | 19.46 % | 16.79 % | 23.41 % |
| Earning asset yield (TE) | 3.88 % | 3.56 % | 3.39 % | 3.44 % | 3.58 % | 3.72 % | 3.71 % |
| Total cost of funds | 0.22 % | 0.22 % | 0.23 % | 0.24 % | 0.26 % | 0.22 % | 0.28 % |
| Net interest margin (TE) | 3.66 % | 3.35 % | 3.18 % | 3.22 % | 3.34 % | 3.51 % | 3.45 % |
| Noninterest income excluding securities<br><br>transactions, as a percent of total revenue (TE) | 29.09 % | 32.05 % | 31.31 % | 30.32 % | 33.78 % | 30.52 % | 36.92 % |
| Efficiency ratio | 51.67 % | 55.43 % | 55.66 % | 57.59 % | 54.07 % | 53.49 % | 53.28 % |
| Adjusted efficiency ratio (TE) | 53.66 % | 56.95 % | 54.85 % | 56.56 % | 54.07 % | 55.26 % | 54.36 % |
| CAPITAL ADEQUACY (period end) | |||||||
| Shareholders' equity to assets | 12.97 % | 12.76 % | 12.43 % | 12.87 % | 12.96 % | 12.97 % | 12.96 % |
| Tangible common equity to tangible assets | 8.58 % | 8.32 % | 8.05 % | 8.88 % | 8.83 % | 8.58 % | 8.83 % |
| EQUITY TO ASSETS RECONCILIATION | |||||||
| Tangible common equity to tangible assets | 8.58 % | 8.32 % | 8.05 % | 8.88 % | 8.83 % | 8.58 % | 8.83 % |
| Effect of goodwill and other intangibles | 4.39 % | 4.44 % | 4.38 % | 3.99 % | 4.13 % | 4.39 % | 4.13 % |
| Equity to assets (GAAP) | 12.97 % | 12.76 % | 12.43 % | 12.87 % | 12.96 % | 12.97 % | 12.96 % |
| OTHER DATA (period end) | |||||||
| Full time equivalent employees | |||||||
| Banking Division | 2,050 | 2,033 | 2,008 | 1,821 | 1,817 | 2,050 | 1,817 |
| Retail Mortgage Division | 712 | 714 | 739 | 749 | 759 | 712 | 759 |
| Warehouse Lending Division | 9 | 10 | 12 | 12 | 12 | 9 | 12 |
| SBA Division | 36 | 35 | 34 | 29 | 30 | 36 | 30 |
| Premium Finance Division | 78 | 77 | 72 | 67 | 68 | 78 | 68 |
| Total Ameris Bancorp FTE headcount | 2,885 | 2,869 | 2,865 | 2,678 | 2,686 | 2,885 | 2,686 |
| Assets per Banking Division FTE | $ 11,555 | $ 11,589 | $ 11,882 | $ 12,374 | $ 12,046 | $ 11,555 | $ 12,046 |
| Branch locations | 164 | 165 | 165 | 165 | 165 | 164 | 165 |
| Deposits per branch location | $ 120,030 | $ 118,718 | $ 119,185 | $ 114,142 | $ 110,655 | $ 120,030 | $ 110,655 |
| 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 share data) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Interest income | |||||||
| Interest and fees on loans | $ 190,740 | $ 177,566 | $ 170,813 | $ 166,358 | $ 167,761 | $ 368,306 | $ 338,918 |
| Interest on taxable securities | 7,064 | 4,239 | 5,866 | 5,296 | 5,244 | 11,303 | 11,362 |
| Interest on nontaxable securities | 269 | 186 | 156 | 139 | 139 | 455 | 280 |
| Interest on deposits in other banks | 4,463 | 1,373 | 1,521 | 1,244 | 595 | 5,836 | 1,117 |
| Interest on federal funds sold | 32 | 10 | 9 | 9 | 12 | 42 | 24 |
| Total interest income | 202,568 | 183,374 | 178,365 | 173,046 | 173,751 | 385,942 | 351,701 |
| Interest expense | |||||||
| Interest on deposits | 4,908 | 4,092 | 4,678 | 5,106 | 5,775 | 9,000 | 12,573 |
| Interest on other borrowings | 6,296 | 6,738 | 6,850 | 6,279 | 6,124 | 13,034 | 12,299 |
| Total interest expense | 11,204 | 10,830 | 11,528 | 11,385 | 11,899 | 22,034 | 24,872 |
| Net interest income | 191,364 | 172,544 | 166,837 | 161,661 | 161,852 | 363,908 | 326,829 |
| Provision for loan losses | 13,227 | (2,734) | (13,619) | (3,984) | (899) | 10,493 | (17,478) |
| Provision for unfunded commitments | 1,779 | 9,009 | 16,388 | (5,516) | 1,299 | 10,788 | (10,540) |
| Provision for other credit losses | (82) | (44) | (10) | (175) | (258) | (126) | (431) |
| Provision for credit losses | 14,924 | 6,231 | 2,759 | (9,675) | 142 | 21,155 | (28,449) |
| Net interest income after provision for credit losses | 176,440 | 166,313 | 164,078 | 171,336 | 161,710 | 342,753 | 355,278 |
| Noninterest income | |||||||
| Service charges on deposit accounts | 11,148 | 11,058 | 11,784 | 11,486 | 11,007 | 22,206 | 21,836 |
| Mortgage banking activity | 58,761 | 62,938 | 60,723 | 56,460 | 70,231 | 121,699 | 168,717 |
| Other service charges, commissions and fees | 998 | 939 | 962 | 1,154 | 1,056 | 1,937 | 2,072 |
| Gain (loss) on securities | 248 | (27) | (4) | 530 | 1 | 221 | (11) |
| Other noninterest income | 12,686 | 12,003 | 8,304 | 6,932 | 6,945 | 24,689 | 14,599 |
| Total noninterest income | 83,841 | 86,911 | 81,769 | 76,562 | 89,240 | 170,752 | 207,213 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 81,545 | 84,281 | 76,615 | 79,671 | 85,505 | 165,826 | 181,490 |
| Occupancy and equipment | 12,746 | 12,727 | 13,494 | 11,979 | 10,812 | 25,473 | 22,593 |
| Data processing and communications expenses | 12,155 | 12,572 | 11,534 | 10,681 | 11,877 | 24,727 | 23,761 |
| Credit resolution-related expenses^(1)^ | 496 | (965) | 1,992 | 377 | 622 | (469) | 1,169 |
| Advertising and marketing | 3,122 | 1,988 | 2,381 | 2,676 | 1,946 | 5,110 | 3,377 |
| Amortization of intangible assets | 5,144 | 5,181 | 3,387 | 3,387 | 4,065 | 10,325 | 8,191 |
| Merger and conversion charges | — | 977 | 4,023 | 183 | — | 977 | — |
| Other noninterest expenses | 26,988 | 27,059 | 24,943 | 28,242 | 20,934 | 54,047 | 43,978 |
| Total noninterest expense | 142,196 | 143,820 | 138,369 | 137,196 | 135,761 | 286,016 | 284,559 |
| Income before income tax expense | 118,085 | 109,404 | 107,478 | 110,702 | 115,189 | 227,489 | 277,932 |
| Income tax expense | 28,019 | 27,706 | 25,534 | 29,022 | 26,862 | 55,725 | 64,643 |
| Net income | $ 90,066 | $ 81,698 | $ 81,944 | $ 81,680 | $ 88,327 | $ 171,764 | $ 213,289 |
| Diluted earnings per common share | $ 1.30 | $ 1.17 | $ 1.18 | $ 1.17 | $ 1.27 | $ 2.47 | $ 3.06 |
| (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 | ||||||
| Jun | Mar | Dec | Sep | Jun | |||
| (dollars inthousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||
| Assets | |||||||
| Cash and due from banks | $ 345,627 | $ 257,316 | $ 307,813 | $ 239,028 | $ 259,729 | ||
| Federal funds sold and interest-bearing deposits in banks | 1,961,209 | 3,541,144 | 3,756,844 | 3,513,412 | 3,044,795 | ||
| Debt securities available-for-sale, at fair value | 1,052,268 | 579,204 | 592,621 | 684,504 | 778,167 | ||
| Debt securities held-to-maturity, at amortized cost | 111,654 | 91,454 | 79,850 | 64,451 | 29,055 | ||
| Other investments | 49,500 | 49,395 | 47,552 | 27,619 | 27,621 | ||
| Loans held for sale | 555,665 | 901,550 | 1,254,632 | 1,435,805 | 1,210,589 | ||
| Loans, net of unearned income | 17,561,022 | 16,143,801 | 15,874,258 | 14,824,539 | 14,780,791 | ||
| Allowance for credit losses | (172,642) | (161,251) | (167,582) | (171,213) | (175,070) | ||
| Loans, net | 17,388,380 | 15,982,550 | 15,706,676 | 14,653,326 | 14,605,721 | ||
| Other real estate owned | 835 | 1,910 | 3,810 | 4,594 | 5,775 | ||
| Premises and equipment, net | 224,249 | 224,293 | 225,400 | 226,430 | 229,994 | ||
| Goodwill | 1,023,056 | 1,022,345 | 1,012,620 | 928,005 | 928,005 | ||
| Other intangible assets, net | 115,613 | 120,757 | 125,938 | 60,396 | 63,783 | ||
| Cash value of bank owned life insurance | 384,862 | 332,914 | 331,146 | 279,389 | 277,839 | ||
| Other assets | 474,552 | 455,460 | 413,419 | 416,182 | 425,858 | ||
| Total assets | $ 23,687,470 | $ 23,560,292 | $ 23,858,321 | $ 22,533,141 | $ 21,886,931 | ||
| Liabilities | |||||||
| Deposits | |||||||
| Noninterest-bearing | $ 8,262,929 | $ 7,870,207 | $ 7,774,823 | $ 7,616,728 | $ 6,983,761 | ||
| Interest-bearing | 11,422,053 | 11,718,234 | 11,890,730 | 11,216,761 | 11,274,236 | ||
| Total deposits | 19,684,982 | 19,588,441 | 19,665,553 | 18,833,489 | 18,257,997 | ||
| Federal funds purchased and securities sold under agreements to repurchase | 953 | 2,065 | 5,845 | 4,502 | 5,544 | ||
| Other borrowings | 425,592 | 425,520 | 739,879 | 425,375 | 425,303 | ||
| Subordinated deferrable interest debentures | 127,325 | 126,827 | 126,328 | 125,830 | 125,331 | ||
| Other liabilities | 375,242 | 410,280 | 354,265 | 243,175 | 235,752 | ||
| Total liabilities | 20,614,094 | 20,553,133 | 20,891,870 | 19,632,371 | 19,049,927 | ||
| Shareholders' Equity | |||||||
| Preferred stock | — | — | — | — | — | ||
| Common stock | 72,251 | 72,212 | 72,017 | 72,016 | 72,008 | ||
| Capital stock | 1,931,088 | 1,928,702 | 1,924,813 | 1,922,964 | 1,920,566 | ||
| Retained earnings | 1,157,359 | 1,077,725 | 1,006,436 | 934,979 | 863,828 | ||
| Accumulated other comprehensive income (loss), net of tax | (12,635) | (1,841) | 15,590 | 21,885 | 25,024 | ||
| Treasury stock | (74,687) | (69,639) | (52,405) | (51,074) | (44,422) | ||
| Total shareholders' equity | 3,073,376 | 3,007,159 | 2,966,451 | 2,900,770 | 2,837,004 | ||
| Total liabilities and shareholders' equity | $ 23,687,470 | $ 23,560,292 | $ 23,858,321 | $ 22,533,141 | $ 21,886,931 | ||
| Other Data | |||||||
| Earning assets | $ 21,291,318 | $ 21,306,548 | $ 21,605,757 | $ 20,550,330 | $ 19,871,018 | ||
| Intangible assets | 1,138,669 | 1,143,102 | 1,138,558 | 988,401 | 991,788 | ||
| Interest-bearing liabilities | 11,975,923 | 12,272,646 | 12,762,782 | 11,772,468 | 11,830,414 | ||
| Average assets | 23,405,201 | 23,275,654 | 23,054,847 | 22,087,642 | 21,538,894 | ||
| Average common shareholders' equity | 3,043,280 | 2,994,652 | 2,939,507 | 2,874,691 | 2,798,269 | ||
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Allowance for Credit Losses | |||||||
| Balance at beginning of period | $ 203,615 | $ 200,981 | $ 188,234 | $ 197,782 | $ 200,241 | $ 200,981 | $ 233,105 |
| Acquired allowance for purchased credit<br><br>deteriorated loans | — | — | 9,432 | — | — | — | — |
| Provision for loan losses | 13,227 | (2,734) | (13,619) | (3,984) | (899) | 10,493 | (17,478) |
| Provision for unfunded commitments | 1,779 | 9,009 | 16,388 | (5,516) | 1,299 | 10,788 | (10,540) |
| Provision for other credit losses | (82) | (44) | (10) | (175) | (258) | (126) | (431) |
| Provision for credit losses | 14,924 | 6,231 | 2,759 | (9,675) | 142 | 21,155 | (28,449) |
| Charge-offs | 6,853 | 8,579 | 3,367 | 3,537 | 7,138 | 15,432 | 14,712 |
| Recoveries | 5,017 | 4,982 | 3,923 | 3,664 | 4,537 | 9,999 | 7,838 |
| Net charge-offs (recoveries) | 1,836 | 3,597 | (556) | (127) | 2,601 | 5,433 | 6,874 |
| Ending balance | $ 216,703 | $ 203,615 | $ 200,981 | $ 188,234 | $ 197,782 | $ 216,703 | $ 197,782 |
| Allowance for loan losses | $ 172,642 | $ 161,251 | $ 167,582 | $ 171,213 | $ 175,070 | $ 172,642 | $ 175,070 |
| Allowance for unfunded commitments | 43,973 | 42,194 | 33,185 | 16,797 | 22,313 | 43,973 | 22,313 |
| Allowance for other credit losses | 88 | 170 | 214 | 224 | 399 | 88 | 399 |
| Total allowance for credit losses | $ 216,703 | $ 203,615 | $ 200,981 | $ 188,234 | $ 197,782 | $ 216,703 | $ 197,782 |
| Net Charge-off Information | |||||||
| Charge-offs | |||||||
| Commercial, financial and agricultural | $ 4,391 | $ 4,414 | $ 1,003 | $ 858 | $ 3,529 | $ 8,805 | $ 5,899 |
| Consumer installment | 1,137 | 1,425 | 1,484 | 1,647 | 1,669 | 2,562 | 3,117 |
| Indirect automobile | 41 | 88 | 40 | 178 | 141 | 129 | 970 |
| Premium Finance | 1,066 | 1,369 | 526 | 605 | 1,194 | 2,435 | 2,537 |
| Real estate - construction and development | — | — | 21 | — | 186 | — | 212 |
| Real estate - commercial and farmland | 81 | 1,283 | 220 | 210 | 27 | 1,364 | 1,422 |
| Real estate - residential | 137 | — | 73 | 39 | 392 | 137 | 555 |
| Total charge-offs | 6,853 | 8,579 | 3,367 | 3,537 | 7,138 | 15,432 | 14,712 |
| Recoveries | |||||||
| Commercial, financial and agricultural | 2,785 | 2,896 | 2,389 | 1,986 | 625 | 5,681 | 1,352 |
| Consumer installment | 230 | 158 | 172 | 199 | 212 | 388 | 568 |
| Indirect automobile | 265 | 275 | 329 | 278 | 372 | 540 | 1,072 |
| Premium Finance | 1,113 | 1,247 | 633 | 649 | 2,466 | 2,360 | 3,588 |
| Real estate - construction and development | 355 | 218 | 210 | 45 | 84 | 573 | 251 |
| Real estate - commercial and farmland | 44 | 37 | 81 | 266 | 185 | 81 | 226 |
| Real estate - residential | 225 | 151 | 109 | 241 | 593 | 376 | 781 |
| Total recoveries | 5,017 | 4,982 | 3,923 | 3,664 | 4,537 | 9,999 | 7,838 |
| Net charge-offs (recoveries) | $ 1,836 | $ 3,597 | $ (556) | $ (127) | $ 2,601 | $ 5,433 | $ 6,874 |
| Non-Performing Assets | |||||||
| Nonaccrual loans | $ 122,912 | $ 102,597 | $ 85,266 | $ 58,932 | $ 59,921 | $ 122,912 | $ 59,921 |
| Other real estate owned | 835 | 1,910 | 3,810 | 4,594 | 5,775 | 835 | 5,775 |
| Repossessed assets | 122 | 139 | 84 | 152 | 226 | 122 | 226 |
| Accruing loans delinquent 90 days or more | 8,542 | 6,584 | 12,648 | 7,472 | 4,874 | 8,542 | 4,874 |
| Total non-performing assets | $ 132,411 | $ 111,230 | $ 101,808 | $ 71,150 | $ 70,796 | $ 132,411 | $ 70,796 |
| Asset Quality Ratios | |||||||
| Non-performing assets as a percent of total assets | 0.56 % | 0.47 % | 0.43 % | 0.32 % | 0.32 % | 0.56 % | 0.32 % |
| Net charge-offs as a percent of average loans<br><br>(annualized) | 0.04 % | 0.09 % | (0.01) % | — % | 0.07 % | 0.07 % | 0.10 % |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | ||
| FINANCIAL TABLES | |||||||
| Loan Information | Table 5 | ||||||
| Jun | Mar | Dec | Sep | Jun | |||
| (dollars inthousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||
| Loans by Type | |||||||
| Commercial, financial and agricultural | $ 2,022,845 | $ 1,836,663 | $ 1,875,993 | $ 1,217,575 | $ 1,406,421 | ||
| Consumer installment | 167,237 | 173,642 | 191,298 | 207,111 | 229,411 | ||
| Indirect automobile | 172,245 | 214,120 | 265,779 | 325,057 | 397,373 | ||
| Mortgage warehouse | 949,191 | 732,375 | 787,837 | 768,577 | 841,347 | ||
| Municipal | 529,268 | 547,926 | 572,701 | 624,430 | 647,578 | ||
| Premium Finance | 942,357 | 819,163 | 798,409 | 840,737 | 780,328 | ||
| Real estate - construction and development | 1,747,284 | 1,577,215 | 1,452,339 | 1,454,824 | 1,527,883 | ||
| Real estate - commercial and farmland | 7,156,017 | 6,924,475 | 6,834,917 | 6,409,704 | 6,051,472 | ||
| Real estate - residential | 3,874,578 | 3,318,222 | 3,094,985 | 2,976,524 | 2,898,978 | ||
| Total loans | $ 17,561,022 | $ 16,143,801 | $ 15,874,258 | $ 14,824,539 | $ 14,780,791 | ||
| Troubled Debt Restructurings | |||||||
| Accruing troubled debt restructurings | |||||||
| Commercial, financial and agricultural | $ 964 | $ 868 | $ 1,286 | $ 1,683 | $ 1,038 | ||
| Consumer installment | 9 | 13 | 16 | 22 | 28 | ||
| Indirect automobile | 759 | 893 | 1,037 | 1,284 | 1,647 | ||
| Premium Finance | 993 | 162 | — | — | — | ||
| Real estate - construction and development | 706 | 725 | 789 | 887 | 898 | ||
| Real estate - commercial and farmland | 8,213 | 17,161 | 35,575 | 43,895 | 46,025 | ||
| Real estate - residential | 24,456 | 24,664 | 26,879 | 29,521 | 31,570 | ||
| Total accruing troubled debt restructurings | $ 36,100 | $ 44,486 | $ 65,582 | $ 77,292 | $ 81,206 | ||
| Nonaccrual troubled debt restructurings | |||||||
| Commercial, financial and agricultural | $ 364 | $ 72 | $ 83 | $ 112 | $ 805 | ||
| Consumer installment | 14 | 31 | 35 | 38 | 43 | ||
| Indirect automobile | 122 | 221 | 273 | 297 | 301 | ||
| Real estate - construction and development | — | 11 | 13 | 271 | 301 | ||
| Real estate - commercial and farmland | 788 | 788 | 5,924 | 6,715 | 7,103 | ||
| Real estate - residential | 4,369 | 4,341 | 4,678 | 2,687 | 2,515 | ||
| Total nonaccrual troubled debt restructurings | $ 5,657 | $ 5,464 | $ 11,006 | $ 10,120 | $ 11,068 | ||
| Total troubled debt restructurings | $ 41,757 | $ 49,950 | $ 76,588 | $ 87,412 | $ 92,274 | ||
| Loans by Risk Grade | |||||||
| Grades 1 through 5 - Pass | $ 17,296,520 | $ 15,899,956 | $ 15,614,323 | $ 14,562,058 | $ 14,477,905 | ||
| Grade 6 - Other assets especially mentioned | 68,444 | 51,670 | 78,957 | 87,757 | 100,750 | ||
| Grade 7 - Substandard | 196,058 | 192,175 | 180,978 | 174,724 | 202,134 | ||
| Grade 8 - Doubtful | — | — | — | — | — | ||
| Grade 9 - Loss | — | — | — | — | 2 | ||
| Total loans | $ 17,561,022 | $ 16,143,801 | $ 15,874,258 | $ 14,824,539 | $ 14,780,791 | ||
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Earning Assets | |||||||
| Federal funds sold | $ 17,692 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 18,840 | $ 20,000 |
| Interest-bearing deposits in banks | 2,209,761 | 3,393,238 | 3,719,878 | 3,082,413 | 2,461,092 | 2,798,231 | 2,304,119 |
| Time deposits in other banks | — | — | — | — | 244 | — | 246 |
| Debt securities - taxable | 932,824 | 623,498 | 698,915 | 757,278 | 811,234 | 779,016 | 860,759 |
| Debt securities - nontaxable | 39,236 | 29,605 | 22,639 | 19,053 | 18,225 | 34,446 | 18,722 |
| Other investments | 49,550 | 47,872 | 31,312 | 27,622 | 27,620 | 48,716 | 27,568 |
| Loans held for sale | 944,964 | 1,097,098 | 1,365,886 | 1,497,320 | 1,705,167 | 1,020,611 | 1,496,155 |
| Loans | 16,861,674 | 15,821,397 | 15,119,752 | 14,685,878 | 14,549,104 | 16,344,409 | 14,501,802 |
| Total Earning Assets | $ 21,055,701 | $ 21,032,708 | $ 20,978,382 | $ 20,089,564 | $ 19,592,686 | $ 21,044,269 | $ 19,229,371 |
| Deposits | |||||||
| Noninterest-bearing deposits | $ 7,955,765 | $ 7,658,451 | $ 7,600,284 | $ 7,168,717 | $ 6,874,471 | $ 7,807,929 | $ 6,644,646 |
| NOW accounts | 3,695,490 | 3,684,772 | 3,651,595 | 3,447,909 | 3,314,334 | 3,690,161 | 3,248,655 |
| MMDA | 5,087,199 | 5,240,922 | 5,209,653 | 4,966,492 | 4,872,500 | 5,163,636 | 4,817,197 |
| Savings accounts | 1,007,340 | 973,724 | 928,954 | 908,189 | 876,887 | 990,625 | 850,112 |
| Retail CDs | 1,693,740 | 1,774,016 | 1,827,852 | 1,919,184 | 2,005,265 | 1,733,656 | 2,035,668 |
| Brokered CDs | — | — | — | 511 | 1,000 | — | 1,000 |
| Total Deposits | 19,439,534 | 19,331,885 | 19,218,338 | 18,411,002 | 17,944,457 | 19,386,007 | 17,597,278 |
| Non-Deposit Funding | |||||||
| Federal funds purchased and securities sold under<br><br>agreements to repurchase | 1,854 | 4,020 | 5,559 | 5,133 | 6,883 | 2,931 | 8,077 |
| FHLB advances | 48,746 | 48,786 | 48,828 | 48,866 | 48,910 | 48,766 | 48,931 |
| Other borrowings | 376,829 | 443,657 | 468,058 | 376,489 | 376,376 | 410,058 | 376,318 |
| Subordinated deferrable interest debentures | 127,063 | 126,563 | 126,067 | 125,567 | 125,068 | 126,814 | 124,823 |
| Total Non-Deposit Funding | 554,492 | 623,026 | 648,512 | 556,055 | 557,237 | 588,569 | 558,149 |
| Total Funding | $ 19,994,026 | $ 19,954,911 | $ 19,866,850 | $ 18,967,057 | $ 18,501,694 | $ 19,974,576 | $ 18,155,427 |
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Interest Income | |||||||
| Federal funds sold | $ 32 | $ 10 | $ 9 | $ 9 | $ 12 | $ 42 | $ 24 |
| Interest-bearing deposits in banks | 4,463 | 1,373 | 1,521 | 1,244 | 594 | 5,836 | 1,115 |
| Time deposits in other banks | — | — | — | — | 1 | — | 2 |
| Debt securities - taxable | 7,064 | 4,239 | 5,866 | 5,296 | 5,244 | 11,303 | 11,362 |
| Debt securities - nontaxable (TE) | 341 | 235 | 198 | 176 | 176 | 576 | 354 |
| Loans held for sale | 10,036 | 8,132 | 9,433 | 10,618 | 11,773 | 18,168 | 22,600 |
| Loans (TE) | 181,602 | 170,398 | 162,415 | 156,861 | 157,112 | 352,000 | 318,585 |
| Total Earning Assets | $ 203,538 | $ 184,387 | $ 179,442 | $ 174,204 | $ 174,912 | $ 387,925 | $ 354,042 |
| Accretion income (included above) | $ (379) | $ 1,006 | $ 2,812 | $ 2,948 | $ 4,462 | $ 627 | $ 10,589 |
| Interest Expense | |||||||
| Interest-Bearing Deposits | |||||||
| NOW accounts | $ 1,246 | $ 824 | $ 864 | $ 808 | $ 816 | $ 2,070 | $ 1,742 |
| MMDA | 2,204 | 1,643 | 1,971 | 1,970 | 1,908 | 3,847 | 3,906 |
| Savings accounts | 140 | 133 | 128 | 129 | 122 | 273 | 246 |
| Retail CDs | 1,318 | 1,492 | 1,715 | 2,195 | 2,921 | 2,810 | 6,665 |
| Brokered CDs | — | — | — | 4 | 8 | — | 14 |
| Total Interest-Bearing Deposits | 4,908 | 4,092 | 4,678 | 5,106 | 5,775 | 9,000 | 12,573 |
| Non-Deposit Funding | |||||||
| Federal funds purchased and securities sold under<br><br>agreements to repurchase | 1 | 3 | 4 | 4 | 5 | 4 | 12 |
| FHLB advances | 192 | 190 | 195 | 195 | 193 | 382 | 385 |
| Other borrowings | 4,437 | 5,164 | 5,317 | 4,640 | 4,683 | 9,601 | 9,321 |
| Subordinated deferrable interest debentures | 1,666 | 1,381 | 1,334 | 1,440 | 1,243 | 3,047 | 2,581 |
| Total Non-Deposit Funding | 6,296 | 6,738 | 6,850 | 6,279 | 6,124 | 13,034 | 12,299 |
| Total Interest-Bearing Funding | $ 11,204 | $ 10,830 | $ 11,528 | $ 11,385 | $ 11,899 | $ 22,034 | $ 24,872 |
| Net Interest Income (TE) | $ 192,334 | $ 173,557 | $ 167,914 | $ 162,819 | $ 163,013 | $ 365,891 | $ 329,170 |
| AMERIS BANCORP AND SUBSIDIARIES | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| FINANCIAL TABLES | |||||||
| Yields^(1)^ | Table 8 | ||||||
| Three Months Ended | Six Months Ended | ||||||
| Jun | Mar | Dec | Sep | Jun | Jun | Jun | |
| 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | |
| Earning Assets | |||||||
| Federal funds sold | 0.73 % | 0.20 % | 0.18 % | 0.18 % | 0.24 % | 0.45 % | 0.24 % |
| Interest-bearing deposits in banks | 0.81 % | 0.16 % | 0.16 % | 0.16 % | 0.10 % | 0.42 % | 0.10 % |
| Time deposits in other banks | — % | — % | — % | — % | 1.64 % | — % | 1.64 % |
| Debt securities - taxable | 3.04 % | 2.76 % | 3.33 % | 2.77 % | 2.59 % | 2.93 % | 2.66 % |
| Debt securities - nontaxable (TE) | 3.49 % | 3.22 % | 3.47 % | 3.66 % | 3.87 % | 3.37 % | 3.81 % |
| Loans held for sale | 4.26 % | 3.01 % | 2.74 % | 2.81 % | 2.77 % | 3.59 % | 3.05 % |
| Loans (TE) | 4.32 % | 4.37 % | 4.26 % | 4.24 % | 4.33 % | 4.34 % | 4.43 % |
| Total Earning Assets | 3.88 % | 3.56 % | 3.39 % | 3.44 % | 3.58 % | 3.72 % | 3.71 % |
| Interest-Bearing Deposits | |||||||
| NOW accounts | 0.14 % | 0.09 % | 0.09 % | 0.09 % | 0.10 % | 0.11 % | 0.11 % |
| MMDA | 0.17 % | 0.13 % | 0.15 % | 0.16 % | 0.16 % | 0.15 % | 0.16 % |
| Savings accounts | 0.06 % | 0.06 % | 0.05 % | 0.06 % | 0.06 % | 0.06 % | 0.06 % |
| Retail CDs | 0.31 % | 0.34 % | 0.37 % | 0.45 % | 0.58 % | 0.33 % | 0.66 % |
| Brokered CDs | — % | — % | — % | 3.11 % | 3.21 % | — % | 2.82 % |
| Total Interest-Bearing Deposits | 0.17 % | 0.14 % | 0.16 % | 0.18 % | 0.21 % | 0.16 % | 0.23 % |
| Non-Deposit Funding | |||||||
| Federal funds purchased and securities sold under<br><br>agreements to repurchase | 0.22 % | 0.30 % | 0.29 % | 0.31 % | 0.29 % | 0.28 % | 0.30 % |
| FHLB advances | 1.58 % | 1.58 % | 1.58 % | 1.58 % | 1.58 % | 1.58 % | 1.59 % |
| Other borrowings | 4.72 % | 4.72 % | 4.51 % | 4.89 % | 4.99 % | 4.72 % | 4.99 % |
| Subordinated deferrable interest debentures | 5.26 % | 4.43 % | 4.20 % | 4.55 % | 3.99 % | 4.85 % | 4.17 % |
| Total Non-Deposit Funding | 4.55 % | 4.39 % | 4.19 % | 4.48 % | 4.41 % | 4.47 % | 4.44 % |
| Total Interest-Bearing Liabilities | 0.37 % | 0.36 % | 0.37 % | 0.38 % | 0.41 % | 0.37 % | 0.44 % |
| Net Interest Spread | 3.51 % | 3.20 % | 3.02 % | 3.06 % | 3.17 % | 3.35 % | 3.27 % |
| Net Interest Margin^(2)^ | 3.66 % | 3.35 % | 3.18 % | 3.22 % | 3.34 % | 3.51 % | 3.45 % |
| Total Cost of Funds^(3)^ | 0.22 % | 0.22 % | 0.23 % | 0.24 % | 0.26 % | 0.22 % | 0.28 % |
| (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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Net income available to common shareholders | $ 90,066 | $ 81,698 | $ 81,944 | $ 81,680 | $ 88,327 | $ 171,764 | $ 213,289 |
| Adjustment items: | |||||||
| Merger and conversion charges | — | 977 | 4,023 | 183 | — | 977 | — |
| Servicing right impairment (recovery) | (10,838) | (9,654) | (4,540) | 1,398 | (749) | (20,492) | (11,388) |
| Gain on BOLI proceeds | — | — | — | — | — | — | (603) |
| (Gain) loss on bank premises | (39) | (6) | (126) | 1,136 | (236) | (45) | (500) |
| Tax effect of adjustment items (Note 1) | 2,284 | 2,024 | 243 | (536) | 206 | 4,308 | 2,496 |
| After tax adjustment items | (8,593) | (6,659) | (400) | 2,181 | (779) | (15,252) | (9,995) |
| Adjusted net income | $ 81,473 | $ 75,039 | $ 81,544 | $ 83,861 | $ 87,548 | $ 156,512 | $ 203,294 |
| Weighted average number of shares - diluted | 69,316,258 | 69,660,990 | 69,738,426 | 69,756,135 | 69,791,670 | 69,484,508 | 69,764,923 |
| Net income per diluted share | $ 1.30 | $ 1.17 | $ 1.18 | $ 1.17 | $ 1.27 | $ 2.47 | $ 3.06 |
| Adjusted net income per diluted share | $ 1.18 | $ 1.08 | $ 1.17 | $ 1.20 | $ 1.25 | $ 2.25 | $ 2.91 |
| Average assets | $ 23,405,201 | $ 23,275,654 | $ 23,054,847 | $ 22,087,642 | $ 21,538,894 | $ 23,340,785 | $ 21,144,751 |
| Return on average assets | 1.54 % | 1.42 % | 1.41 % | 1.47 % | 1.64 % | 1.48 % | 2.03 % |
| Adjusted return on average assets | 1.40 % | 1.31 % | 1.40 % | 1.51 % | 1.63 % | 1.35 % | 1.94 % |
| Average common equity | $ 3,043,280 | $ 2,994,652 | $ 2,939,507 | $ 2,874,691 | $ 2,798,269 | $ 3,019,100 | $ 2,746,922 |
| Average tangible common equity | $ 1,902,265 | $ 1,857,713 | $ 1,916,783 | $ 1,884,622 | $ 1,804,324 | $ 1,880,112 | $ 1,750,931 |
| Return on average common equity | 11.87 % | 11.06 % | 11.06 % | 11.27 % | 12.66 % | 11.47 % | 15.66 % |
| Adjusted return on average tangible common<br><br>equity | 17.18 % | 16.38 % | 16.88 % | 17.65 % | 19.46 % | 16.79 % | 23.41 % |
| Note 1: Tax effect is calculated utilizing a 21% rate for taxable adjustments. Gain on BOLI proceeds is non-taxable and no tax effect is included. A portion of the merger and conversion<br><br>charges for 1Q22, 4Q21 and 3Q21 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Adjusted Noninterest Expense | |||||||
| Total noninterest expense | $ 142,196 | $ 143,820 | $ 138,369 | $ 137,196 | $ 135,761 | $ 286,016 | $ 284,559 |
| Adjustment items: | |||||||
| Merger and conversion charges | — | (977) | (4,023) | (183) | — | (977) | — |
| Gain (loss) on bank premises | 39 | 6 | 126 | (1,136) | 236 | 45 | 500 |
| Adjusted noninterest expense | $ 142,235 | $ 142,849 | $ 134,472 | $ 135,877 | $ 135,997 | $ 285,084 | $ 285,059 |
| Total Revenue | |||||||
| Net interest income | $ 191,364 | $ 172,544 | $ 166,837 | $ 161,661 | $ 161,852 | $ 363,908 | $ 326,829 |
| Noninterest income | 83,841 | 86,911 | 81,769 | 76,562 | 89,240 | 170,752 | 207,213 |
| Total revenue | $ 275,205 | $ 259,455 | $ 248,606 | $ 238,223 | $ 251,092 | $ 534,660 | $ 534,042 |
| Adjusted Total Revenue | |||||||
| Net interest income (TE) | $ 192,334 | $ 173,557 | $ 167,914 | $ 162,819 | $ 163,013 | $ 365,891 | $ 329,170 |
| Noninterest income | 83,841 | 86,911 | 81,769 | 76,562 | 89,240 | 170,752 | 207,213 |
| Total revenue (TE) | 276,175 | 260,468 | 249,683 | 239,381 | 252,253 | 536,643 | 536,383 |
| Adjustment items: | |||||||
| (Gain) loss on securities | (248) | 27 | 4 | (530) | (1) | (221) | 11 |
| Gain on BOLI proceeds | — | — | — | — | — | — | (603) |
| Servicing right impairment (recovery) | (10,838) | (9,654) | (4,540) | 1,398 | (749) | (20,492) | (11,388) |
| Adjusted total revenue (TE) | $ 265,089 | $ 250,841 | $ 245,147 | $ 240,249 | $ 251,503 | $ 515,930 | $ 524,403 |
| Efficiency ratio | 51.67 % | 55.43 % | 55.66 % | 57.59 % | 54.07 % | 53.49 % | 53.28 % |
| Adjusted efficiency ratio (TE) | 53.66 % | 56.95 % | 54.85 % | 56.56 % | 54.07 % | 55.26 % | 54.36 % |
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Total shareholders' equity | $ 3,073,376 | $ 3,007,159 | $ 2,966,451 | $ 2,900,770 | $ 2,837,004 | $ 3,073,376 | $ 2,837,004 |
| Less: | |||||||
| Goodwill | 1,023,056 | 1,022,345 | 1,012,620 | 928,005 | 928,005 | 1,023,056 | 928,005 |
| Other intangibles, net | 115,613 | 120,757 | 125,938 | 60,396 | 63,783 | 115,613 | 63,783 |
| Total tangible shareholders' equity | $ 1,934,707 | $ 1,864,057 | $ 1,827,893 | $ 1,912,369 | $ 1,845,216 | $ 1,934,707 | $ 1,845,216 |
| Period end number of shares | 69,360,461 | 69,439,084 | 69,609,228 | 69,635,435 | 69,767,209 | 69,360,461 | 69,767,209 |
| Book value per share (period end) | $ 44.31 | $ 43.31 | $ 42.62 | $ 41.66 | $ 40.66 | $ 44.31 | $ 40.66 |
| Tangible book value per share (period end) | $ 27.89 | $ 26.84 | $ 26.26 | $ 27.46 | $ 26.45 | $ 27.89 | $ 26.45 |
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| Banking Division | |||||||
| Net interest income | $ 152,122 | $ 133,745 | $ 120,572 | $ 113,524 | $ 110,670 | $ 285,867 | $ 223,486 |
| Provision for credit losses | 10,175 | 5,226 | 4,565 | (9,578) | (3,949) | 15,401 | (27,853) |
| Noninterest income | 23,469 | 21,364 | 18,859 | 17,896 | 16,171 | 44,833 | 32,909 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 46,733 | 49,195 | 36,522 | 40,020 | 37,814 | 95,928 | 80,537 |
| Occupancy and equipment expenses | 11,168 | 11,074 | 11,699 | 10,196 | 9,050 | 22,242 | 19,170 |
| Data processing and telecommunications expenses | 10,863 | 11,230 | 10,162 | 9,159 | 10,280 | 22,093 | 20,481 |
| Other noninterest expenses | 21,123 | 20,045 | 24,048 | 21,723 | 18,763 | 41,168 | 38,473 |
| Total noninterest expense | 89,887 | 91,544 | 82,431 | 81,098 | 75,907 | 181,431 | 158,661 |
| Income before income tax expense | 75,529 | 58,339 | 52,435 | 59,900 | 54,883 | 133,868 | 125,587 |
| Income tax expense | 19,120 | 16,996 | 14,010 | 17,784 | 14,196 | 36,116 | 32,652 |
| Net income | $ 56,409 | $ 41,343 | $ 38,425 | $ 42,116 | $ 40,687 | $ 97,752 | $ 92,935 |
| Retail Mortgage Division | |||||||
| Net interest income | $ 20,779 | $ 19,295 | $ 19,912 | $ 21,289 | $ 22,533 | $ 40,074 | $ 41,517 |
| Provision for credit losses | 4,499 | 1,587 | 175 | 1,678 | 5,647 | 6,086 | 1,094 |
| Noninterest income | 57,795 | 61,649 | 59,650 | 55,555 | 69,055 | 119,444 | 166,695 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 31,219 | 31,614 | 36,787 | 36,373 | 44,798 | 62,833 | 94,636 |
| Occupancy and equipment expenses | 1,406 | 1,471 | 1,587 | 1,590 | 1,553 | 2,877 | 3,029 |
| Data processing and telecommunications expenses | 1,123 | 1,172 | 1,213 | 1,357 | 1,435 | 2,295 | 2,981 |
| Other noninterest expenses | 12,812 | 12,645 | 10,793 | 11,675 | 7,638 | 25,457 | 15,827 |
| Total noninterest expense | 46,560 | 46,902 | 50,380 | 50,995 | 55,424 | 93,462 | 116,473 |
| Income before income tax expense | 27,515 | 32,455 | 29,007 | 24,171 | 30,517 | 59,970 | 90,645 |
| Income tax expense | 5,779 | 6,815 | 6,092 | 5,076 | 6,408 | 12,594 | 19,035 |
| Net income | $ 21,736 | $ 25,640 | $ 22,915 | $ 19,095 | $ 24,109 | $ 47,376 | $ 71,610 |
| Warehouse Lending Division | |||||||
| Net interest income | $ 6,700 | $ 6,447 | $ 8,063 | $ 8,712 | $ 8,720 | $ 13,147 | $ 18,626 |
| Provision for credit losses | 867 | (222) | 77 | (291) | (155) | 645 | (300) |
| Noninterest income | 1,041 | 1,401 | 1,253 | 1,037 | 1,333 | 2,442 | 2,313 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 208 | 283 | 258 | 264 | 278 | 491 | 608 |
| Occupancy and equipment expenses | 1 | 1 | 1 | — | 1 | 2 | 2 |
| Data processing and telecommunications expenses | 48 | 47 | 56 | 59 | 68 | 95 | 117 |
| Other noninterest expenses | 212 | 218 | 227 | 200 | 30 | 430 | 63 |
| Total noninterest expense | 469 | 549 | 542 | 523 | 377 | 1,018 | 790 |
| Income before income tax expense | 6,405 | 7,521 | 8,697 | 9,517 | 9,831 | 13,926 | 20,449 |
| Income tax expense | 1,346 | 1,579 | 1,827 | 1,999 | 2,064 | 2,925 | 4,294 |
| Net income | $ 5,059 | $ 5,942 | $ 6,870 | $ 7,518 | $ 7,767 | $ 11,001 | $ 16,155 |
| 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 |
| SBA Division | |||||||
| Net interest income | $ 3,798 | $ 6,011 | $ 11,319 | $ 10,699 | $ 12,882 | $ 9,809 | $ 29,517 |
| Provision for credit losses | (523) | (143) | (663) | (1,104) | (607) | (666) | (1,154) |
| Noninterest income | 1,526 | 2,491 | 2,002 | 2,070 | 2,677 | 4,017 | 5,288 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 1,316 | 1,271 | 1,217 | 1,320 | 937 | 2,587 | 2,319 |
| Occupancy and equipment expenses | 81 | 99 | 121 | 116 | 132 | 180 | 238 |
| Data processing and telecommunications expenses | 29 | 28 | 28 | 18 | — | 57 | 1 |
| Other noninterest expenses | 539 | 380 | 645 | 370 | 284 | 919 | 579 |
| Total noninterest expense | 1,965 | 1,778 | 2,011 | 1,824 | 1,353 | 3,743 | 3,137 |
| Income before income tax expense | 3,882 | 6,867 | 11,973 | 12,049 | 14,813 | 10,749 | 32,822 |
| Income tax expense | 815 | 1,442 | 2,514 | 2,530 | 3,111 | 2,257 | 6,893 |
| Net income | $ 3,067 | $ 5,425 | $ 9,459 | $ 9,519 | $ 11,702 | $ 8,492 | $ 25,929 |
| Premium Finance Division | |||||||
| Net interest income | $ 7,965 | $ 7,046 | $ 6,971 | $ 7,437 | $ 7,047 | $ 15,011 | $ 13,683 |
| Provision for credit losses | (94) | (217) | (1,395) | (380) | (794) | (311) | (236) |
| Noninterest income | 10 | 6 | 5 | 4 | 4 | 16 | 8 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 2,069 | 1,918 | 1,831 | 1,694 | 1,678 | 3,987 | 3,390 |
| Occupancy and equipment expenses | 90 | 82 | 86 | 77 | 76 | 172 | 154 |
| Data processing and telecommunications expenses | 92 | 95 | 75 | 88 | 94 | 187 | 181 |
| Other noninterest expenses | 1,064 | 952 | 1,013 | 897 | 852 | 2,016 | 1,773 |
| Total noninterest expense | 3,315 | 3,047 | 3,005 | 2,756 | 2,700 | 6,362 | 5,498 |
| Income before income tax expense | 4,754 | 4,222 | 5,366 | 5,065 | 5,145 | 8,976 | 8,429 |
| Income tax expense | 959 | 874 | 1,091 | 1,633 | 1,083 | 1,833 | 1,769 |
| Net income | $ 3,795 | $ 3,348 | $ 4,275 | $ 3,432 | $ 4,062 | $ 7,143 | $ 6,660 |
| Total Consolidated | |||||||
| Net interest income | $ 191,364 | $ 172,544 | $ 166,837 | $ 161,661 | $ 161,852 | $ 363,908 | $ 326,829 |
| Provision for credit losses | 14,924 | 6,231 | 2,759 | (9,675) | 142 | 21,155 | (28,449) |
| Noninterest income | 83,841 | 86,911 | 81,769 | 76,562 | 89,240 | 170,752 | 207,213 |
| Noninterest expense | |||||||
| Salaries and employee benefits | 81,545 | 84,281 | 76,615 | 79,671 | 85,505 | 165,826 | 181,490 |
| Occupancy and equipment expenses | 12,746 | 12,727 | 13,494 | 11,979 | 10,812 | 25,473 | 22,593 |
| Data processing and telecommunications expenses | 12,155 | 12,572 | 11,534 | 10,681 | 11,877 | 24,727 | 23,761 |
| Other noninterest expenses | 35,750 | 34,240 | 36,726 | 34,865 | 27,567 | 69,990 | 56,715 |
| Total noninterest expense | 142,196 | 143,820 | 138,369 | 137,196 | 135,761 | 286,016 | 284,559 |
| Income before income tax expense | 118,085 | 109,404 | 107,478 | 110,702 | 115,189 | 227,489 | 277,932 |
| Income tax expense | 28,019 | 27,706 | 25,534 | 29,022 | 26,862 | 55,725 | 64,643 |
| Net income | $ 90,066 | $ 81,698 | $ 81,944 | $ 81,680 | $ 88,327 | $ 171,764 | $ 213,289 |
For more information, contact: Nicole S. Stokes, Chief Financial Officer, (404) 240-1514
2nd Quarter 2022 Results Investor Presentation Exhibit 99.2
Cautionary Statements 1 This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this presentation are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and the Company’s subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.
Ameris Profile Investment Rationale Historically top of peer financial results Culture of discipline – credit, liquidity, expense control, capital preservation Proven stewards of shareholder value – TBV has grown 10% annualized over past five years Experienced executive team with skills and leadership to continue to grow organically Diversified loan portfolio among geographies and product lines Diversified revenue streams with strong core bank and lines of business Strong Southeastern Markets Atlanta’s premier independent banking franchise Scarcity value in one of the fastest growing regions in nation Attractive core deposit base 65% of our franchise is in 5 MSAs, which grew 2x the national average over the last 15 years 2
2nd Quarter 2022 Financial Results
2Q 2022 Operating Highlights 4 Net income of $90.1 million, or $1.30 per diluted share Adjusted net income(1) of $81.5 million, or $1.18 per diluted share Growth in tangible book value(1) of $1.05 per share, or 3.9%, to $27.89 at June 30, 2022 Only $0.16 dilution, or less than 1%, in tangible book value(1) from increase in net unrealized losses on available-for-sale securities Improvement in net interest margin of 31bps, from 3.35% for 1Q22 to 3.66% this quarter Organic loan growth of $1.42 billion, or 35.1% annualized (and $1.45 billion, or 36.4% annualized, exclusive of PPP loans) Adjusted ROA(1) of 1.40% Adjusted ROTCE(1) of 17.18% Adjusted efficiency ratio(1) of 53.66% Well positioned to be asset sensitive in rising rate environment Continued growth in noninterest bearing deposits, representing 41.98% of total deposits
1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
2022 YTD Operating Highlights 5 Net income of $171.8 million, or $2.47 per diluted share Adjusted net income(1) of $156.5 million, or $2.25 per diluted share Growth in tangible book value(1) of $1.63 per share, or 6.2%, to $27.89 at June 30, 2022, compared with $26.26 at December 31, 2021 Improvement in TCE/TA ratio of 53bps to 8.58% at June 30, 2022 Noninterest bearing deposit growth of $488.1 million, or 12.7% annualized Organic loan growth of $1.69 billion, or 21.3% annualized (and $1.80 billion, or 22.9% annualized, exclusive of PPP loans) Improvement in net interest margin of 6bps, from 3.45% for YTD 2021 to 3.51% YTD 2022 Adjusted ROA(1) of 1.35% Adjusted ROTCE(1) of 16.79% 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Financial Highlights 6 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods
Revenue 7 Strong revenue base of net interest income from core banking division
Additional revenue provided by our diversified lines of business
Improved mix of earning assets as excess liquidity was deployed in the investment and loan portfolios Diversified Revenue Stream Mortgage Banking Activity Purchase business increased to 84% during the quarter, closer to historical levels
Revenue, exclusive of MSR valuation, normalized to less than 20% of total revenue in 2Q22 consistent with pre-pandemic levels
2Q22 included a net recovery of servicing right impairment of $10.8 million, compared with $9.7 million in 1Q22
Other Noninterest Income Fee income from Balboa Capital increased $1.6 million to $5.3 million in 2Q22 compared with 1Q22 Gain on sale of SBA loans decreased $1.2 million to $1.2 million in 2Q22 compared with 1Q22
Net Interest Margin 8 Average earning assets grew by $23.0 million, while spread income increased $18.8 million compared with 1Q22
Margin up 31bps from 1Q22: 26bps due to reduction in excess liquidity and higher cash yield 5bps due to higher loan yield
Total deposit costs up only 1bp from 1Q22 due to disciplined deposit pricing in current rising rate environment
Continued focus on low cost funding mix such that noninterest bearing deposits are 42% of total deposits at quarter end
Excluding accretion/amortization and PPP income, net interest income increased $21.9 million in 2Q22 compared with 1Q22:
1 - Excludes the impact of excess liquidity (average interest-bearing cash balances above $500 million) Spread Income and Margin
Expenses Adjusted Operating Expenses and Efficiency Ratio(1) OPEX Highlights 9 Total adjusted operating expenses decreased $614,000 in 2Q22 compared with 1Q22 Decrease of $647,000 in 2Q22 banking division operating expenses primarily due to: $1.8 million seasonal decrease in payroll taxes $729,000 seasonal decrease in 401(k) matching contribution expense $1.1 million increase in advertising and marketing expense related to new marketing campaign Lines of business operating expenses stable at $52.3 million in 2Q22 compared with 1Q22 Mortgage expenses decreased 38bps relative to production compared with 1Q22 Disciplined expense control throughout the Company with identified cost savings utilized to fund future technology and innovation costs 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Retail Mortgage Division Details 10 Rationalization and Stabilization of Mortgage Operations:
Retail mortgage originations represent 8.5% of the Company’s adjusted pre-provision, pre-tax income for 2Q22, down from 21.5% this time last year
Approximately $15.3 million, or 74%, of the net interest income included in mortgage revenue is related to portfolio loans generated from mortgage division
Gain on sale margins expected to stabilize within pre-pandemic historical levels (2.75% - 3.25%)
Origination production expected to return to pre-pandemic levels of $5 - $7 billion in 2022
Purchase % is returning closer to normal levels Historically ran 85-90% purchase activity Two most recent quarters are 84% and 78% as refi boom is slowing Consistent purchase business due to strong core relationships with builders and realtors
Balance Sheet Trends 11 Well positioned for rising rate environment: 1.9% asset sensitivity in +50bps 3.8% asset sensitivity in +100bps 7.4% asset sensitivity in +200bps
A 25bps rate increase positively affects margin by approximately 4bps
Approximately $5.3 billion, or 30%, of loans are variable rate
Approximately $700 million, or 4%, of loans are short term fixed rate loans that reprice quickly and behave like a variable rate loan
Approximately $5.2 billion of variable rate loans have no floor or are above their floor
Approximately $90 million of variable rate loans are below their floor, with $75 million that would reprice after 38bps of rate hikes
$1.5 billion of liquidity in interest bearing cash immediately reprices
20% weighted average beta for all non-maturity deposits
Interest Rate Sensitivity Earning Assets Highlights Loans represented 89.2% of deposits and 85.1% of earnings assets at 2Q22, compared with 82.4% and 80.0%,respectively, at 1Q22
Available-for-sale securities represent less than 4.5% of total assets, limiting potential tangible book value dilution from rising interest rates
Strong Core Deposit Base 12 Deposit Highlights Deposit mix well positioned for future rate increases: Improved deposit mix over the past five years such that noninterest bearing deposits now represent 41.98% of total deposits, a 45% improvement from 28.88% at 2Q17
Excess liquidity of $1.5 billion provides ability to manage deposit costs in rising rate environment
Total deposits increased $96.5 million, or 0.5%, in 2Q22 compared with 1Q22 Noninterest-bearing deposits increased $392.7 million, or 5.0%
Low cost savings deposits increased $23.2 million, or 2.3%
MMDA decreased $260.0 million, or 5.0%
Total interest bearing deposit costs increased slightly to 0.17% in 2Q22, compared with 0.14% in 1Q22 and improved from 0.21% in 2Q21
Capital and TBV Proven Stewards of Shareholder Value 13 Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 10% annualized TBV increased $1.05 per share in 2Q22: $1.15 from retained earnings ($0.16) from impact of OCI $0.06 from all other items including stock compensation and share repurchases TBV increased $1.44 per share, or 5.4%, compared with 2Q21, even with dilution from Balboa Capital in 4Q21 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Loan Diversification and Credit Quality
Diversified Loan Portfolio 2Q22 Loan Portfolio 15 Loan portfolio is well diversified across loan types and geographies
C&I loans represent second-largest category of loans Balboa Capital totaled $821.8 million at 2Q22, or 4.7% of total loans, which added ~4% to this category
CRE and C&D concentrations were 286% and 72%, respectively, at 2Q22
Remaining PPP Loans totaled $14.9 million, net of deferred fees
Top 25 relationships totaled $2.3 billion, or 10.0% of total committed exposure of $23.3 billion
Participations purchased ~ 1.2% of loans. Limited exposure in SNCs and Syndications Portfolio Highlights
Loan Production vs Growth 16 2Q22 production was driven by: Construction Loan Commitments ($1.2 billion), Residential Mortgage Loans ($604.1 million), Commercial Real Estate ($581.4 million), Premium Finance ($488.6 million), C & I Loans ($342.6 million) and Balboa Capital ($153.5 million)
*Loan production reflects committed balance total; loan portfolio growth reflects quarter-over-quarter loan ending balances, excluding Mortgage Warehouse production
Loan Balance Changes 2Q22 Loan Balance Changes 17 2Q22 loan growth totaled $1.42 billion, or 35.1% annualized
Growth was primarily driven by residential mortgages as we successfully executed on our strategy of investing excess liquidity at favorable rates. Mortgage loans booked in 2Q22 via the Mortgage Division retail and wholesale channels totaled $515.3 million with underwriting according to secondary market standards.
Growth attributable to seasonal factors included Mortgage Warehouse ($217.0 million) and Agriculture Loan advances ($40.5 million). Net loan growth, excluding the investment in mortgages and seasonal advances, was 15.0% annualized in 2Q22.
Balboa Capital Portfolio 18 Balboa Capital is a 34 year-old small business lender having successfully operated through several recessions over that period
Day 1 acquired loans totaled $665.8 million
Total loans at 2Q22 were $821.8 million, or an annualized growth rate of 19.2% from YE21
2Q22 production totaled $153.5 million with a yield of 10.88%
Average FICO score for loans originated in 2Q22 was 730
30-89 day accruing past due loans were 0.69% of total loans
NCOs totaled $1.0 million in 2Q22 and $2.6MM YTD, which equated to a 0.70% annualized NCO ratio Portfolio Highlights
Allowance for Loan Losses 19 The ALLL totaled $172.6 million at 2Q22, a net increase of $11.3 million, or 7.0%, from 1Q22
The reserve for unfunded commitments totaled $44.0 million, an increase of $1.8 million, or 4.2%, from 1Q22
During 2Q22, we recorded a provision expense of $14.9 million, primarily the result of loan growth
The ALLL for 2Q22 was driven primarily by loan growth, with a lesser impact from economic forecasts
The ALLL equated to 0.98% of total loans, while the ACL totaled $216.6 million, or 0.93% of total loans (less PPP Loans) + unfunded commitments 2Q22 CECL Reserve Reserve Summary
NPA / Charge-Off Trend 20 Non-Performing Assets (“NPAs”) increased $21.2 million, to $132.4 million at 2Q22, primarily as a result of: $7.3 million increase in 90+ past due GNMA mortgage loans $8.0 million increase in CRE loans due to one loan downgrade $6.2 million increase in 90+ past due portfolio mortgage loans
$50.6 million of total NPAs were GNMA-backed mortgage loans (38% of total), which have minimal loss exposure
As a percentage of total assets, total NPAs were 0.56% Net charge-offs for 2Q22 totaled $1.8 million, which equated to an annualized NCO ratio of 0.04%
Largest category of losses were CFIA loans ($1.6 million), which included Balboa Capital Non-Performing Assets Net Charge-Offs
Problem Loan Trends 21 Total classified loans increased $3.9 million, primarily the result of increased 90+ past due GNMA and portfolio mortgage loans
Criticized loans (special mention + classified) increased $20.6 million
The largest watch list component was SFR mortgage loans at $99.2 million (38% of total), where the average balance was $160.1 thousand
Nonperforming loans increased $22.2 million to $131.5 million, primarily as a result of the higher 90+ past due mortgage loans Highlights
Investor CRE Loans 22 Approximately 93% of CRE loans are concentrated within our five-state footprint
Commercial Real Estate Production 2Q22 Commercial Real Estate Production Summary: 23 2Q22 Construction and Development Loan Production Summary: 2Q22 production of C&D and CRE loans - $1.75 billion in total committed exposure
Residential real estate construction: Spec/model to pre-sold ratio of 0.7:1 Total spec loans at low average loan size of $327.1 thousand
Investor CRE 2Q22 production: Production totaled $1.31 billion Weighted average 1.49:1 debt service coverage Weighted average 61.0% loan/value
Summary of CRE production by collateral state: Highlights
Appendix
25 Reconciliation of GAAP to Non-GAAP Measures
26 Reconciliation of GAAP to Non-GAAP Measures
27 Reconciliation of GAAP to Non-GAAP Measures
Ameris Bancorp Press Release & Financial Highlights June 30, 2022