AMERIS BANCORP ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2022

Company Release - 4/26/2022

Highlights of the Company's results for the first quarter of 2022 include the following:

  • Net income of $81.7 million, or $1.17 per diluted share
  • Organic growth in loans of $269.5 million, or 6.8% annualized (and $350.7 million, or 8.9% annualized, exclusive of PPP loans), during 2022
  • Growth in tangible book value of $0.58 per share, or 2.2%, to $26.84 at March 31, 2022, compared with $26.26 at December 31, 2021
  • Less than 1% dilution in tangible book value from decrease in unrealized gain on available-for-sale securities
  • Improvement in net interest margin of 17bps, from 3.18% last quarter to 3.35% this quarter
  • Adjusted return on average assets of 1.31%
  • Adjusted return on average tangible common equity of 16.38%
  • Continued growth in noninterest bearing deposits, representing 40.18% of total deposits, up from 39.54% at December 31, 2021 and 38.07% a year ago

ATLANTA, April 26, 2022 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $81.7 million, or $1.17 per diluted share, for the quarter ended March 31, 2022, compared with $125.0 million, or $1.79 per diluted share, for the quarter ended March 31, 2021. The Company reported adjusted net income of $75.0 million, or $1.08 per diluted share, for the quarter ended March 31, 2022, compared with $115.7 million, or $1.66 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.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "Solid first quarter results reflect our continued responsible organic growth initiatives.  Despite challenging economic conditions and market volatility, we had annualized loan growth, excluding PPP, of 8.9%, our margin expanded by 17 basis points and we maintained our credit quality.  We remain focused on tangible book value and have successfully avoided material negative impact on capital from the securities portfolio over this past interest rate cycle.  Our results reflect the discipline of our team and the continued opportunities throughout our strong Southeastern footprint."

Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis (TE) continued to increase in the first quarter of 2022, to $173.6 million, compared with $167.9 million for the fourth quarter of 2021 and $166.2 million for the first quarter of 2021.  The Company's net interest margin significantly improved to 3.35% for the first quarter of 2022, up from 3.18% reported for the fourth quarter of 2021 but less than 3.57% reported for the first quarter of 2021.  Accretion income for the first quarter of 2022 decreased to $1.0 million, compared with $2.8 million for the fourth quarter of 2021 and $6.1 million for the first quarter of 2021.

Yields on loans increased to 4.37% during the first quarter of 2022, compared with 4.26% for the fourth quarter of 2021 and decreased from 4.53% for the first quarter of 2021. Contributing to interest income on loans for the first quarter of 2022 was $19.1 million of interest income on loans from the recent Balboa Capital acquisition, as well as $3.0 million of accelerated fee income on Paycheck Protection Program ("PPP") loan forgiveness, compared with $4.8 million and $8.2 million, respectively, in the fourth quarter of 2021.  Loan production in the banking division during the first quarter of 2022 was $805.5 million, with weighted average yields of 5.17%, compared with $1.1 billion and 3.35%, respectively, in the fourth quarter of 2021 and $600.6 million and 3.80%, respectively, in the first quarter of 2021.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $4.7 billion during the first quarter of 2022, with weighted average yields of 3.63%, compared with $5.5 billion and 3.43%, respectively, during the fourth quarter of 2021 and $7.5 billion and 3.15%, respectively, during the first quarter of 2021.   

Interest expense during the first quarter of 2022 decreased to $10.8 million, compared with $11.5 million in the fourth quarter of 2021, and $13.0 million in the first quarter of 2021.  The decrease in interest expense was related to continued repricing of deposits as CDs mature and the repayment of remaining borrowings assumed from Balboa Capital in January 2022.  The Company's total cost of funds moved one basis point lower to 0.22% in the first quarter of 2022 as compared with the fourth quarter of 2021.  Deposit costs decreased one basis point during the first quarter of 2022 to 0.09%, compared with 0.10% in the fourth quarter of 2021.  Costs of interest-bearing deposits decreased during the quarter from 0.16% in the fourth quarter of 2021 to 0.14% in the first quarter of 2022.

Noninterest Income
Noninterest income increased $5.1 million, or 6.3%, in the first quarter of 2022 to $86.9 million, compared with $81.8 million for the fourth quarter of 2021, primarily as a result of increased mortgage banking activity, which grew by $2.2 million, or 3.6%, to $62.9 million in the first quarter of 2022, compared with $60.7 million for the fourth quarter of 2021.  Excluding the $9.7 million and $4.5 million recovery of servicing right impairment recorded in the first quarter of 2022 and fourth quarter of 2021, respectively, mortgage revenue decreased this quarter by $2.9 million, while expenses in the mortgage division decreased by $3.5 million, for an increased efficiency ratio within that division.  Gain on sale spreads decreased to 2.94% in the first quarter of 2022 from 3.27% for the fourth quarter of 2021. Total production in the retail mortgage division decreased to $1.53 billion in the first quarter of 2022, compared with $1.82 billion for the fourth quarter of 2021. The retail mortgage open pipeline was $1.41 billion at the end of the first quarter of 2022, compared with $1.62 billion at December 31, 2021.

Service charge revenue decreased $726,000, or 6.2%, to $11.1 million in the first quarter of 2022, compared with $11.8 million for the fourth quarter of 2021, resulting from a cyclical decrease in volume that is historically lower in the first quarter each year.  Other noninterest income increased $3.7 million, or 44.5%, in the first quarter of 2022 to $12.0 million, compared with $8.3 million for the fourth quarter of 2021, primarily as a result of a $2.6 million impact from the newly acquired Balboa Capital. Also contributing to the increase were increases in gains on sale of SBA loans of $761,000 and merchant fee income of $287,000.

Noninterest Expense
Noninterest expense increased $5.5 million, or 3.9%, to $143.8 million during the first quarter of 2022, compared with $138.4 million for the fourth quarter of 2021.  During the first quarter of 2022, the Company recorded merger and conversion charges of $977,000 and a net gain of $6,000 related to bank premises, compared with a net gain on bank premises of $126,000 and merger and conversion charges of $4.0 million during the fourth quarter of 2021.  Excluding these charges, adjusted expenses increased approximately $8.4 million, or 6.2%, to $142.8 million in the first quarter of 2022, from $134.5 million in the fourth quarter of 2021.  The increase in adjusted expenses resulted from absorbing a full quarter of Balboa expenses (acquired in December 2021) and cyclical payroll tax and 401(k) expenses, partially offset by the decrease in mortgage banking expenses. 

As shown in the table below, the Company continued to show discipline in noninterest expense control, as all other noninterest expenses increased less than 1%:


Three Months Ended




March 31, 2022


December 31, 2021


Change

Balboa Expenses

$                 8,475


$                        1,350


$          7,125

Payroll Taxes

4,244


1,506


2,738

401(k) Matching Contributions

1,714


494


1,220

Mortgage Expenses

46,902


50,380


(3,478)

All Other Noninterest Expenses

81,514


80,742


772

Adjusted Noninterest Expense

$             142,849


$                    134,472


$          8,377

The additional cyclical payroll expenses caused the adjusted efficiency ratio to increase to 56.95% in the first quarter of 2022, compared with 54.85% in the fourth quarter of 2021.

Income Tax Expense
The Company's effective tax rate for the first quarter of 2022 was 25.3%, compared with 23.8% in the fourth quarter of 2021.  The increased rate for the first quarter of 2022 was primarily a result of a discrete charge to the Company's state tax liability and an increase in nondeductible merger expenses in the first quarter of 2022. 

Balance Sheet Trends
Total assets at March 31, 2022 were $23.56 billion, compared with $23.86 billion at December 31, 2021.  Loans, net of unearned income, increased $269.5 million, or 6.8% annualized, to $16.14 billion at March 31, 2022, compared with $15.87 billion at December 31, 2021.  As anticipated with seasonal mortgage activity, loans held for sale decreased $353.1 million from $1.25 billion at December 31, 2021 to $901.6 million at March 31, 2022.  Loan production in the banking division during the first quarter of 2022 totaled $805.5 million, down 30% from the fourth quarter of 2021 and up 34% from the first quarter of 2021. 

At March 31, 2022, total deposits amounted to $19.59 billion, or 97.3% of total funding, compared with $19.67 billion and 95.8%, respectively, at December 31, 2021.  At March 31, 2022, noninterest-bearing deposit accounts were $7.87 billion, or 40.2% 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 $12.62 billion at March 31, 2022, compared with $12.52 billion at December 31, 2021.  These funds represented 64.4% of the Company's total deposits at March 31, 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 March 31, 2022 totaled $3.01 billion, an increase of $40.7 million, or 1.4%, from December 31, 2021.  The increase in shareholders' equity was primarily the result of earnings of $81.7 million during the first quarter 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 312,860 shares of the Company's common stock at a cost of $14.6 million during the first quarter of 2022.  The Company recorded dilution of $0.25 per share, or less than 1%, to tangible book value this quarter from other comprehensive income related to the decrease in unrealized gains on the securities portfolio.  Tangible book value per share was $26.84 at March 31, 2022, compared with $26.26 at December 31, 2021.  Tangible common equity as a percentage of tangible assets was 8.32% at March 31, 2022, compared with 8.05% at the end of 2021.

Credit Quality
Credit quality remains strong in the Company.  During the first quarter of 2022, the Company recorded a provision for credit losses of $6.2 million, compared with a provision of $2.8 million in the fourth quarter of 2021.  This provision was primarily attributable to growth in unfunded commitments, partially offset by an improvement in expected credit losses on loans.  Nonperforming assets as a percentage of total assets increased four basis points to 0.47% during the quarter.  This increase was attributable to rebooked GNMA loans which the Company has the right, but not the obligation to repurchase. The net charge-off ratio was nine basis points for the first quarter of 2022, compared with negative one basis point in the fourth quarter of 2021 and 12 basis points in the first quarter of 2021.

Conference Call
The Company will host a teleconference at 9:00 a.m. Eastern time on Wednesday, April 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 418399.  A replay of the call will be available one hour after the end of the conference call until May 11, 2022.  To listen to the replay, dial 1-866-813-9403.  The conference replay access code is 542280.  The financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.

About Ameris Bancorp
Ameris Bancorp is a bank holding company headquartered in Atlanta, Georgia.  The Company's banking subsidiary, Ameris Bank, had 165 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate 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 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 BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Financial Highlights

Table 1


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2022


2021


2021


2021


2021

EARNINGS










Net income

$    81,698


$    81,944


$    81,680


$    88,327


$  124,962

Adjusted net income

$    75,039


$    81,544


$    83,861


$    87,548


$  115,746











COMMON SHARE DATA










Earnings per share available to common shareholders










Basic

$        1.18


$        1.18


$        1.18


$        1.27


$        1.80

Diluted

$        1.17


$        1.18


$        1.17


$        1.27


$        1.79

Adjusted diluted EPS

$        1.08


$        1.17


$        1.20


$        1.25


$        1.66

Cash dividends per share

$        0.15


$        0.15


$        0.15


$        0.15


$        0.15

Book value per share (period end)

$      43.31


$      42.62


$      41.66


$      40.66


$      39.56

Tangible book value per share (period end)

$      26.84


$      26.26


$      27.46


$      26.45


$      25.27

Weighted average number of shares










Basic

69,345,735


69,398,594


69,439,845


69,496,666


69,391,734

Diluted

69,660,990


69,738,426


69,756,135


69,791,670


69,740,860

Period end number of shares

69,439,084


69,609,228


69,635,435


69,767,209


69,713,426

Market data










High intraday price

$      55.62


$      56.64


$      53.63


$      59.85


$      57.81

Low intraday price

$      43.56


$      46.20


$      44.92


$      47.44


$      36.60

Period end closing price

$      43.88


$      49.68


$      51.88


$      50.63


$      52.51

Average daily volume

471,858


350,119


392,533


429,233


460,744











PERFORMANCE RATIOS










Return on average assets

1.42%


1.41%


1.47%


1.64%


2.44%

Adjusted return on average assets

1.31%


1.40%


1.51%


1.63%


2.26%

Return on average common equity

11.06%


11.06%


11.27%


12.66%


18.80%

Adjusted return on average tangible common equity

16.38%


16.88%


17.65%


19.46%


27.66%

Earning asset yield (TE)

3.56%


3.39%


3.44%


3.58%


3.85%

Total cost of funds

0.22%


0.23%


0.24%


0.26%


0.30%

Net interest margin (TE)

3.35%


3.18%


3.22%


3.34%


3.57%

Noninterest income excluding securities transactions, as a percent of total revenue (TE)

32.05%


31.31%


30.32%


33.78%


39.71%

Efficiency ratio

55.43%


55.66%


57.59%


54.07%


52.59%

Adjusted efficiency ratio (TE)

56.95%


54.85%


56.56%


54.07%


54.62%











CAPITAL ADEQUACY (period end)










Shareholders' equity to assets

12.76%


12.43%


12.87%


12.96%


12.87%

Tangible common equity to tangible assets

8.32%


8.05%


8.88%


8.83%


8.62%











EQUITY TO ASSETS RECONCILIATION










Tangible common equity to tangible assets

8.32%


8.05%


8.88%


8.83%


8.62%

Effect of goodwill and other intangibles

4.44%


4.38%


3.99%


4.13%


4.25%

Equity to assets (GAAP)

12.76%


12.43%


12.87%


12.96%


12.87%











OTHER DATA (period end)










Full time equivalent employees










Banking Division

2,033


2,008


1,821


1,817


1,815

Retail Mortgage Division

714


739


749


759


765

Warehouse Lending Division

10


12


12


12


12

SBA Division

35


34


29


30


29

Premium Finance Division

77


72


67


68


70

Total Ameris Bancorp FTE headcount

2,869


2,865


2,678


2,686


2,691











Assets per Banking Division FTE

$    11,589


$    11,882


$    12,374


$    12,046


$    11,806

Branch locations

165


165


165


165


165

Deposits per branch location

$  118,718


$  119,185


$  114,142


$  110,655


$  108,339

.

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Income Statement

Table 2


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2022


2021


2021


2021


2021

Interest income










Interest and fees on loans

$     177,566


$     170,813


$     166,358


$     167,761


$     171,157

Interest on taxable securities

4,239


5,866


5,296


5,244


6,118

Interest on nontaxable securities

186


156


139


139


141

Interest on deposits in other banks

1,373


1,521


1,244


595


522

Interest on federal funds sold

10


9


9


12


12

Total interest income

183,374


178,365


173,046


173,751


177,950











Interest expense










Interest on deposits

4,092


4,678


5,106


5,775


6,798

Interest on other borrowings

6,738


6,850


6,279


6,124


6,175

Total interest expense

10,830


11,528


11,385


11,899


12,973











Net interest income

172,544


166,837


161,661


161,852


164,977











Provision for loan losses

(2,734)


(13,619)


(3,984)


(899)


(16,579)

Provision for unfunded commitments

9,009


16,388


(5,516)


1,299


(11,839)

Provision for other credit losses

(44)


(10)


(175)


(258)


(173)

Provision for credit losses

6,231


2,759


(9,675)


142


(28,591)

Net interest income after provision for credit losses

166,313


164,078


171,336


161,710


193,568











Noninterest income










Service charges on deposit accounts

11,058


11,784


11,486


11,007


10,829

Mortgage banking activity

62,938


60,723


56,460


70,231


98,486

Other service charges, commissions and fees

939


962


1,154


1,056


1,016

Gain (loss) on securities

(27)


(4)


530


1


(12)

Other noninterest income

12,003


8,304


6,932


6,945


7,654

Total noninterest income

86,911


81,769


76,562


89,240


117,973











Noninterest expense










Salaries and employee benefits

84,281


76,615


79,671


85,505


95,985

Occupancy and equipment

12,727


13,494


11,979


10,812


11,781

Data processing and communications expenses

12,572


11,534


10,681


11,877


11,884

Credit resolution-related expenses(1)

(965)


1,992


377


622


547

Advertising and marketing

1,988


2,381


2,676


1,946


1,431

Amortization of intangible assets

5,181


3,387


3,387


4,065


4,126

Merger and conversion charges

977


4,023


183



Other noninterest expenses

27,059


24,943


28,242


20,934


23,044

Total noninterest expense

143,820


138,369


137,196


135,761


148,798











Income before income tax expense

109,404


107,478


110,702


115,189


162,743

Income tax expense

27,706


25,534


29,022


26,862


37,781

Net income

$       81,698


$       81,944


$       81,680


$       88,327


$     124,962











Diluted earnings per common share

$          1.17


$          1.18


$          1.17


$          1.27


$          1.79



(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


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Assets










Cash and due from banks

$     257,316


$     307,813


$     239,028


$     259,729


$     224,159

Federal funds sold and interest-bearing deposits in banks

3,541,144


3,756,844


3,513,412


3,044,795


2,534,969

Time deposits in other banks





249

Investment securities available-for-sale, at fair value

579,204


592,621


684,504


778,167


859,652

Investment securities held-to-maturity, at amortized cost

91,454


79,850


64,451


29,055


Other investments

49,395


47,552


27,619


27,621


27,620

Loans held for sale

901,550


1,254,632


1,435,805


1,210,589


1,509,528











Loans, net of unearned income

16,143,801


15,874,258


14,824,539


14,780,791


14,599,805

Allowance for credit losses

(161,251)


(167,582)


(171,213)


(175,070)


(178,570)

Loans, net

15,982,550


15,706,676


14,653,326


14,605,721


14,421,235











Other real estate owned

1,910


3,810


4,594


5,775


8,841

Premises and equipment, net

224,293


225,400


226,430


229,994


231,550

Goodwill

1,022,345


1,012,620


928,005


928,005


928,005

Other intangible assets, net

120,757


125,938


60,396


63,783


67,848

Cash value of bank owned life insurance

332,914


331,146


279,389


277,839


176,575

Other assets

455,460


413,419


416,182


425,858


436,896

Total assets

$ 23,560,292


$ 23,858,321


$ 22,533,141


$ 21,886,931


$ 21,427,127











Liabilities










Deposits










Noninterest-bearing

$  7,870,207


$  7,774,823


$  7,616,728


$  6,983,761


$  6,804,776

Interest-bearing

11,718,234


11,890,730


11,216,761


11,274,236


11,071,097

Total deposits

19,588,441


19,665,553


18,833,489


18,257,997


17,875,873

Federal funds purchased and securities sold under agreements to repurchase

2,065


5,845


4,502


5,544


9,320

Other borrowings

425,520


739,879


425,375


425,303


425,231

Subordinated deferrable interest debentures

126,827


126,328


125,830


125,331


124,833

Other liabilities

410,280


354,265


243,175


235,752


234,274

Total liabilities

20,553,133


20,891,870


19,632,371


19,049,927


18,669,531











Shareholders' Equity










Preferred stock





Common stock

72,212


72,017


72,016


72,008


71,954

Capital stock

1,928,702


1,924,813


1,922,964


1,920,566


1,917,990

Retained earnings

1,077,725


1,006,436


934,979


863,828


785,984

Accumulated other comprehensive income (loss), net of tax

(1,841)


15,590


21,885


25,024


26,090

Treasury stock

(69,639)


(52,405)


(51,074)


(44,422)


(44,422)

Total shareholders' equity

3,007,159


2,966,451


2,900,770


2,837,004


2,757,596

Total liabilities and shareholders' equity

$ 23,560,292


$ 23,858,321


$ 22,533,141


$ 21,886,931


$ 21,427,127











Other Data










Earning assets

$ 21,306,548


$ 21,605,757


$ 20,550,330


$ 19,871,018


$ 19,531,823

Intangible assets

1,143,102


1,138,558


988,401


991,788


995,853

Interest-bearing liabilities

12,272,646


12,762,782


11,772,468


11,830,414


11,630,481

Average assets

23,275,654


23,054,847


22,087,642


21,538,894


20,734,414

Average common shareholders' equity

2,994,652


2,939,507


2,874,691


2,798,269


2,695,005

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information

Table 4


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Allowance for Credit Losses










Balance at beginning of period

$  200,981


$  188,234


$  197,782


$  200,241


$  233,105











Acquired allowance for purchased credit deteriorated loans


9,432














Provision for loan losses

(2,734)


(13,619)


(3,984)


(899)


(16,579)

Provision for unfunded commitments

9,009


16,388


(5,516)


1,299


(11,839)

Provision for other credit losses

(44)


(10)


(175)


(258)


(173)

Provision for credit losses

6,231


2,759


(9,675)


142


(28,591)











Charge-offs

8,579


3,367


3,537


7,138


7,574

Recoveries

4,982


3,923


3,664


4,537


3,301

Net charge-offs

3,597


(556)


(127)


2,601


4,273











Ending balance

$  203,615


$  200,981


$  188,234


$  197,782


$  200,241











Allowance for loan losses

$  161,251


$  167,582


$  171,213


$  175,070


$  178,570

Allowance for unfunded commitments

42,194


33,185


16,797


22,313


21,014

Allowance for other credit losses

170


214


224


399


657

Total allowance for credit losses

$  203,615


$  200,981


$  188,234


$  197,782


$  200,241











Net  Charge-off Information










Charge-offs










Commercial, financial and agricultural

$     4,414


$     1,003


$        858


$     3,529


$      2,370

Consumer installment

1,425


1,484


1,647


1,669


1,448

Indirect automobile

88


40


178


141


829

Premium Finance

1,369


526


605


1,194


1,343

Real estate - construction and development


21



186


26

Real estate - commercial and farmland

1,283


220


210


27


1,395

Real estate - residential


73


39


392


163

Total charge-offs

8,579


3,367


3,537


7,138


7,574











Recoveries










Commercial, financial and agricultural

2,896


2,389


1,986


625


727

Consumer installment

158


172


199


212


356

Indirect automobile

275


329


278


372


700

Premium Finance

1,247


633


649


2,466


1,122

Real estate - construction and development

218


210


45


84


167

Real estate - commercial and farmland

37


81


266


185


41

Real estate - residential

151


109


241


593


188

Total recoveries

4,982


3,923


3,664


4,537


3,301











Net charge-offs

$     3,597


$       (556)


$       (127)


$     2,601


$      4,273











Non-Performing Assets










Nonaccrual loans

$  102,597


$    85,266


$    58,932


$    59,921


$    71,189

Other real estate owned

1,910


3,810


4,594


5,775


8,841

Repossessed assets

139


84


152


226


840

Accruing loans delinquent 90 days or more

6,584


12,711


7,472


4,874


5,097

Total non-performing assets

$  111,230


$  101,871


$    71,150


$    70,796


$    85,967











Asset Quality Ratios










Non-performing assets as a percent of total assets

0.47%


0.43%


0.32%


0.32%


0.40%

Net charge-offs as a percent of average loans (annualized)

0.09%


(0.01)%


—%


0.07%


0.12 %

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Loans by Type










Commercial, financial and agricultural

$  1,836,663


$  1,875,993


$  1,217,575


$  1,406,421


$  1,611,029

Consumer installment

173,642


191,298


207,111


229,411


257,097

Indirect automobile

214,120


265,779


325,057


397,373


482,637

Mortgage warehouse

732,375


787,837


768,577


841,347


880,216

Municipal

547,926


572,701


624,430


647,578


659,228

Premium Finance

819,163


798,409


840,737


780,328


706,379

Real estate - construction and development

1,577,215


1,452,339


1,454,824


1,527,883


1,533,234

Real estate - commercial and farmland

6,924,475


6,834,917


6,409,704


6,051,472


5,616,826

Real estate - residential

3,318,222


3,094,985


2,976,524


2,898,978


2,853,159

Total loans

$ 16,143,801


$ 15,874,258


$ 14,824,539


$ 14,780,791


$ 14,599,805











Troubled Debt Restructurings










Accruing troubled debt restructurings










Commercial, financial and agricultural

$           868


$        1,286


$         1,683


$        1,038


$           930

Consumer installment

13


16


22


28


27

Indirect automobile

893


1,037


1,284


1,647


1,931

Premium Finance

162





Real estate - construction and development

725


789


887


898


501

Real estate - commercial and farmland

17,161


35,575


43,895


46,025


43,398

Real estate - residential

24,664


26,879


29,521


31,570


33,324

Total accruing troubled debt restructurings

$       44,486


$       65,582


$       77,292


$       81,206


$       80,111

Nonaccrual troubled debt restructurings










Commercial, financial and agricultural

$             72


$             83


$           112


$           805


$           854

Consumer installment

31


35


38


43


53

Indirect automobile

221


273


297


301


321

Real estate - construction and development

11


13


271


301


706

Real estate - commercial and farmland

788


5,924


6,715


7,103


2,233

Real estate - residential

4,341


4,678


2,687


2,515


2,818

Total nonaccrual troubled debt restructurings

$        5,464


$       11,006


$       10,120


$       11,068


$         6,985

   Total troubled debt restructurings

$       49,950


$       76,588


$       87,412


$       92,274


$       87,096











Loans by Risk Grade










Grades 1 through 5 - Pass

$ 15,899,956


$ 15,614,323


$ 14,562,058


$ 14,477,905


$ 14,204,219

Grade 6 - Other assets especially mentioned

51,670


78,957


87,757


100,750


135,213

Grade 7 - Substandard

192,175


180,978


174,724


202,134


260,369

Grade 8 - Doubtful





Grade 9 - Loss




2


4

Total loans

$ 16,143,801


$ 15,874,258


$ 14,824,539


$ 14,780,791


$ 14,599,805

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances

Table 6


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Earning Assets










Federal funds sold

$       20,000


$       20,000


$       20,000


$       20,000


$       20,000

Interest-bearing deposits in banks

3,393,238


3,719,878


3,082,413


2,461,092


2,145,403

Time deposits in other banks




244


249

Investment securities - taxable

623,498


698,915


757,278


811,234


910,834

Investment securities - nontaxable

29,605


22,639


19,053


18,225


19,225

Other investments

47,872


31,312


27,622


27,620


27,516

Loans held for sale

1,097,098


1,365,886


1,497,320


1,705,167


1,284,821

Loans

15,821,397


15,119,752


14,685,878


14,549,104


14,453,975

Total Earning Assets

$ 21,032,708


$ 20,978,382


$ 20,089,564


$ 19,592,686


$ 18,862,023











Deposits










Noninterest-bearing deposits

$  7,658,451


$  7,600,284


$  7,168,717


$  6,874,471


$  6,412,268

NOW accounts

3,684,772


3,651,595


3,447,909


3,314,334


3,182,245

MMDA

5,240,922


5,209,653


4,966,492


4,872,500


4,761,279

Savings accounts

973,724


928,954


908,189


876,887


823,039

Retail CDs

1,774,016


1,827,852


1,919,184


2,005,265


2,066,410

Brokered CDs



511


1,000


1,000

Total Deposits

19,331,885


19,218,338


18,411,002


17,944,457


17,246,241

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

4,020


5,559


5,133


6,883


9,284

FHLB advances

48,786


48,828


48,866


48,910


48,951

Other borrowings

443,657


468,058


376,489


376,376


376,260

Subordinated deferrable interest debentures

126,563


126,067


125,567


125,068


124,574

Total Non-Deposit Funding

623,026


648,512


556,055


557,237


559,069

Total Funding

$ 19,954,911


$ 19,866,850


$ 18,967,057


$ 18,501,694


$ 17,805,310

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)

Table 7


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Interest Income










Federal funds sold

$            10


$               9


$               9


$             12


$             12

Interest-bearing deposits in banks

1,373


1,521


1,244


594


521

Time deposits in other banks




1


1

Investment securities - taxable

4,239


5,866


5,296


5,244


6,118

Investment securities - nontaxable (TE)

235


198


176


176


178

Loans held for sale

8,132


9,433


10,618


11,773


10,827

Loans (TE)

170,398


162,415


156,861


157,112


161,473

Total Earning Assets

$    184,387


$     179,442


$     174,204


$     174,912


$     179,130











Accretion income (included above)

$        1,006


$        2,812


$         2,948


$        4,462


$         6,127











Interest Expense










Interest-Bearing Deposits










NOW accounts

$          824


$           864


$           808


$           816


$           926

MMDA

1,643


1,971


1,970


1,908


1,998

Savings accounts

133


128


129


122


124

Retail CDs

1,492


1,715


2,195


2,921


3,744

Brokered CDs



4


8


6

Total Interest-Bearing Deposits

4,092


4,678


5,106


5,775


6,798

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

3


4


4


5


7

FHLB advances

190


195


195


193


192

Other borrowings

5,164


5,317


4,640


4,683


4,638

Subordinated deferrable interest debentures

1,381


1,334


1,440


1,243


1,338

Total Non-Deposit Funding

6,738


6,850


6,279


6,124


6,175

Total Interest-Bearing Funding

$      10,830


$       11,528


$       11,385


$       11,899


$       12,973











Net Interest Income (TE)

$    173,557


$     167,914


$     162,819


$     163,013


$     166,157

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Yields(1)

Table 8


Three Months Ended


Mar


Dec


Sep


Jun


Mar


2022


2021


2021


2021


2021

Earning Assets










Federal funds sold

0.20%


0.18%


0.18%


0.24%


0.24%

Interest-bearing deposits in banks

0.16%


0.16%


0.16%


0.10%


0.10%

Time deposits in other banks

—%


—%


—%


1.64%


1.63%

Investment securities - taxable

2.76%


3.33%


2.77%


2.59%


2.72%

Investment securities - nontaxable (TE)

3.22%


3.47%


3.66%


3.87%


3.75%

Loans held for sale

3.01%


2.74%


2.81%


2.77%


3.42%

Loans (TE)

4.37%


4.26%


4.24%


4.33%


4.53%

Total Earning Assets

3.56%


3.39%


3.44%


3.58%


3.85%











Interest-Bearing Deposits










NOW accounts

0.09%


0.09%


0.09%


0.10%


0.12%

MMDA

0.13%


0.15%


0.16%


0.16%


0.17%

Savings accounts

0.06%


0.05%


0.06%


0.06%


0.06%

Retail CDs

0.34%


0.37%


0.45%


0.58%


0.73%

Brokered CDs

—%


—%


3.11%


3.21%


2.43%

Total Interest-Bearing Deposits

0.14%


0.16%


0.18%


0.21%


0.25%

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

0.30%


0.29%


0.31%


0.29%


0.31%

FHLB advances

1.58%


1.58%


1.58%


1.58%


1.59%

Other borrowings

4.72%


4.51%


4.89%


4.99%


5.00%

Subordinated deferrable interest debentures

4.43%


4.20%


4.55%


3.99%


4.36%

Total Non-Deposit Funding

4.39%


4.19%


4.48%


4.41%


4.48%

Total Interest-Bearing Liabilities

0.36%


0.37%


0.38%


0.41%


0.46%











Net Interest Spread

3.20%


3.02%


3.06%


3.17%


3.39%











Net Interest Margin(2)

3.35%


3.18%


3.22%


3.34%


3.57%











Total Cost of Funds(3)

0.22%


0.23%


0.24%


0.26%


0.30%



(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


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2022


2021


2021


2021


2021

Net income available to common shareholders

$     81,698


$     81,944


$     81,680


$    88,327


$   124,962











Adjustment items:










Merger and conversion charges

977


4,023


183



Servicing right impairment (recovery)

(9,654)


(4,540)


1,398


(749)


(10,639)

Gain on BOLI proceeds





(603)

(Gain) loss on bank premises

(6)


(126)


1,136


(236)


(264)

Tax effect of adjustment items (Note 1)

2,024


243


(536)


206


2,290

After tax adjustment items

(6,659)


(400)


2,181


(779)


(9,216)

Adjusted net income

$     75,039


$     81,544


$     83,861


$    87,548


$   115,746











Weighted average number of shares - diluted

69,660,990


69,738,426


69,756,135


69,791,670


69,740,860

Net income per diluted share

$        1.17


$        1.18


$        1.17


$        1.27


$        1.79

Adjusted net income per diluted share

$        1.08


$        1.17


$        1.20


$        1.25


$        1.66











Average assets

$ 23,275.654


$ 23,054.847


$ 22,087.642


$ 21,538,894


$ 20,734,414

Return on average assets

1.42%


1.41%


1.47%


1.64%


2.44%

Adjusted return on average assets

1.31%


1.40%


1.51%


1.63%


2.26%











Average common equity

$ 2,994.652


$ 2,939.507


$ 2,874.691


$ 2,798,269


$ 2,695,005

Average tangible common equity

$ 1,857,713


$ 1,916,783


$ 1,884,622


$ 1,804,324


$ 1,696,946

Return on average common equity

11.06%


11.06%


11.27%


12.66%


18.80%

Adjusted return on average tangible common equity

16.38%


16.88%


17.65%


19.46%


27.66%












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 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


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Adjusted Noninterest Expense










Total noninterest expense

$  143,820


$  138,369


$  137,196


$  135,761


$  148,798

Adjustment items:










Merger and conversion charges

(977)


(4,023)


(183)



Gain (loss) on bank premises

6


126


(1,136)


236


264

Adjusted noninterest expense

$  142,849


$  134,472


$  135,877


$  135,997


$  149,062











Total Revenue










Net interest income

$  172,544


$  166,837


$  161,661


$  161,852


$  164,977

Noninterest income

86,911


81,769


76,562


89,240


117,973

Total revenue

$  259,455


$  248,606


$  238,223


$  251,092


$  282,950











Adjusted Total Revenue










Net interest income (TE)

$  173,557


$  167,914


$  162,819


$  163,013


$  166,157

Noninterest income

86,911


81,769


76,562


89,240


117,973

Total revenue (TE)

260,468


249,683


239,381


252,253


284,130

Adjustment items:










(Gain) loss on securities

27


4


(530)


(1)


12

Gain on BOLI proceeds





(603)

Servicing right impairment (recovery)

(9,654)


(4,540)


1,398


(749)


(10,639)

Adjusted total revenue (TE)

$  250,841


$  245,147


$  240,249


$  251,503


$  272,900











Efficiency ratio

55.43%


55.66%


57.59%


54.07%


52.59%

Adjusted efficiency ratio (TE)

56.95%


54.85%


56.56%


54.07%


54.62%











Tangible Book Value Per Share

Table 9C


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2022


2021


2021


2021


2021

Total shareholders' equity

$ 3,007,159


$ 2,966,451


$ 2,900,770


$ 2,837,004


$ 2,757,596

Less:










Goodwill

1,022,345


1,012,620


928,005


928,005


928,005

Other intangibles, net

120,757


125,938


60,396


63,783


67,848

Total tangible shareholders' equity

$ 1,864,057


$ 1,827,893


$ 1,912,369


$ 1,845,216


$ 1,761,743











Period end number of shares

69,439,084


69,609,228


69,635,435


69,767,209


69,713,426

Book value per share (period end)

$     43.31


$     42.62


$      41.66


$     40.66


$     39.56

Tangible book value per share (period end)

$     26.84


$     26.26


$      27.46


$     26.45


$     25.27

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

Banking Division










Net interest income

$  133,745


$  120,572


$  113,524


$  110,670


$  112,816

Provision for credit losses

5,226


4,565


(9,578)


(3,949)


(23,904)

Noninterest income

21,364


18,859


17,896


16,171


16,738

Noninterest expense










Salaries and employee benefits

49,195


36,522


40,020


37,814


42,723

Occupancy and equipment expenses

11,074


11,699


10,196


9,050


10,120

Data processing and telecommunications expenses

11,230


10,162


9,159


10,280


10,201

Other noninterest expenses

20,045


24,048


21,723


18,763


19,710

Total noninterest expense

91,544


82,431


81,098


75,907


82,754

Income before income tax expense

58,339


52,435


59,900


54,883


70,704

Income tax expense

16,996


14,010


17,784


14,196


18,456

Net income

$    41,343


$    38,425


$    42,116


$    40,687


$    52,248











Retail Mortgage Division










Net interest income

$    19,295


$    19,912


$    21,289


$    22,533


$    18,984

Provision for credit losses

1,587


175


1,678


5,647


(4,553)

Noninterest income

61,649


59,650


55,555


69,055


97,640

Noninterest expense










Salaries and employee benefits

31,614


36,787


36,373


44,798


49,838

Occupancy and equipment expenses

1,471


1,587


1,590


1,553


1,476

Data processing and telecommunications expenses

1,172


1,213


1,357


1,435


1,546

Other noninterest expenses

12,645


10,793


11,675


7,638


8,189

Total noninterest expense

46,902


50,380


50,995


55,424


61,049

Income before income tax expense

32,455


29,007


24,171


30,517


60,128

Income tax expense

6,815


6,092


5,076


6,408


12,627

Net income

$    25,640


$    22,915


$    19,095


$    24,109


$    47,501











Warehouse Lending Division










Net interest income

$      6,447


$      8,063


$      8,712


$      8,720


$      9,906

Provision for credit losses

(222)


77


(291)


(155)


(145)

Noninterest income

1,401


1,253


1,037


1,333


980

Noninterest expense










Salaries and employee benefits

283


258


264


278


330

Occupancy and equipment expenses

1


1



1


1

Data processing and telecommunications expenses

47


56


59


68


49

Other noninterest expenses

218


227


200


30


33

Total noninterest expense

549


542


523


377


413

Income before income tax expense

7,521


8,697


9,517


9,831


10,618

Income tax expense

1,579


1,827


1,999


2,064


2,230

Net income

$      5,942


$      6,870


$      7,518


$      7,767


$      8,388

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Segment Reporting (continued)

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2022


2021


2021


2021


2021

SBA Division










Net interest income

$      6,011


$    11,319


$    10,699


$    12,882


$    16,635

Provision for credit losses

(143)


(663)


(1,104)


(607)


(547)

Noninterest income

2,491


2,002


2,070


2,677


2,611

Noninterest expense










Salaries and employee benefits

1,271


1,217


1,320


937


1,382

Occupancy and equipment expenses

99


121


116


132


106

Data processing and telecommunications expenses

28


28


18



1

Other noninterest expenses

380


645


370


284


295

Total noninterest expense

1,778


2,011


1,824


1,353


1,784

Income before income tax expense

6,867


11,973


12,049


14,813


18,009

Income tax expense

1,442


2,514


2,530


3,111


3,782

Net income

$      5,425


$      9,459


$      9,519


$    11,702


$    14,227











Premium Finance Division










Net interest income

$      7,046


$      6,971


$      7,437


$      7,047


$      6,636

Provision for credit losses

(217)


(1,395)


(380)


(794)


558

Noninterest income

6


5


4


4


4

Noninterest expense










Salaries and employee benefits

1,918


1,831


1,694


1,678


1,712

Occupancy and equipment expenses

82


86


77


76


78

Data processing and telecommunications expenses

95


75


88


94


87

Other noninterest expenses

952


1,013


897


852


921

Total noninterest expense

3,047


3,005


2,756


2,700


2,798

Income before income tax expense

4,222


5,366


5,065


5,145


3,284

Income tax expense

874


1,091


1,633


1,083


686

Net income

$      3,348


$      4,275


$      3,432


$      4,062


$      2,598











Total Consolidated










Net interest income

$  172,544


$  166,837


$  161,661


$  161,852


$  164,977

Provision for credit losses

6,231


2,759


(9,675)


142


(28,591)

Noninterest income

86,911


81,769


76,562


89,240


117,973

Noninterest expense










Salaries and employee benefits

84,281


76,615


79,671


85,505


95,985

Occupancy and equipment expenses

12,727


13,494


11,979


10,812


11,781

Data processing and telecommunications expenses

12,572


11,534


10,681


11,877


11,884

Other noninterest expenses

34,240


36,726


34,865


27,567


29,148

Total noninterest expense

143,820


138,369


137,196


135,761


148,798

Income before income tax expense

109,404


107,478


110,702


115,189


162,743

Income tax expense

27,706


25,534


29,022


26,862


37,781

Net income

$    81,698


$    81,944


$    81,680


$    88,327


$  124,962

 

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SOURCE Ameris Bancorp