UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 27, 2023 |
Ameris Bancorp
(Exact name of Registrant as Specified in Its Charter)
Georgia |
001-13901 |
58-1456434 |
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(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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3490 Piedmont Road N.E. Suite 1550 |
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Atlanta, Georgia |
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30305 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (404) 639-6500 |
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(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:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Common Stock, par value $1.00 per share |
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ABCB |
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The Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 27, 2023, Ameris Bancorp (the “Company”) issued a press release announcing its unaudited financial results for the quarter ended June 30, 2023. 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 28, 2023 is attached to this Report as Exhibit 99.2. The investor presentation material is also available on the “Investor Relations” page of the Company’s website (http://www.amerisbank.com).
The information contained in this Item 7.01 and in Exhibit 99.2 attached to this Report is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, such information shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 |
Press release dated July 27, 2023
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99.2 |
Investor Presentation re: 2nd Quarter 2023 Results
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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AMERIS BANCORP |
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Date: |
July 27, 2023 |
By: |
/s/ Nicole S. Stokes |
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Nicole S. Stokes |
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Chief Financial Officer |
Exhibit 99.1
AMERIS BANCORP ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2023
Highlights of Ameris's results for the second quarter of 2023 include the following:
ATLANTA, July 27, 2023 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $62.6 million, or $0.91 per diluted share, for the quarter ended June 30, 2023, compared with $90.1 million, or $1.30 per diluted share, for the quarter ended June 30, 2022. Included in the Company's second quarter results was a $45.5 million provision for credit losses related to the updated economic forecast, compared with $14.9 million in the second quarter of last year.
For the year-to-date period ending June 30, 2023, the Company reported net income of $123.1 million, or $1.78 per diluted share, compared with $171.8 million, or $2.47 per diluted share, for the same period in 2022. The year-to-date period ending June 30, 2023 included a provision for credit losses of $95.2 million, compared with $21.2 million for the same period in 2022. The year-to-date period ending June 30, 2022 included a recovery of servicing right impairment $20.5 million, with no such recovery in the same period in 2023.
Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "We are pleased with our second quarter financial results. We continue to operate at a PPNR ROA above 2% with an efficiency ratio of 53.4%, while growing tangible book value by over 8% annualized. We increased our allowance for credit losses to 1.33% of loans, all due to the economic modeling forecast. Our credit metrics improved this quarter such that nonperforming assets now represent only 0.30% of total assets. We also grew core deposits in one of the most competitive margin scenarios imaginable. The diversification in our loan portfolio, combined with the core funding of our liabilities and our multiple revenue streams, gives us momentum as we move into the second half of 2023."
Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis (TE) was $210.5 million in the second quarter of 2023, a decrease of $2.1 million, or 1.0%, from last quarter and an increase of $18.2 million, or 9.4%, compared with the second quarter of 2022. The Company's net interest margin was 3.60% for the second quarter of 2023, down from 3.76% reported for the first quarter of 2023 and 3.66% reported for the second quarter of 2022. The decrease in net interest margin this quarter is primarily attributable to rising deposit costs in the current interest rate environment.
Yields on earning assets increased 27 basis points during the quarter to 5.52%, compared with 5.25% in the first quarter of 2023, and increased 164 basis points from 3.88% in the second quarter of 2022. Yields on loans increased to 5.66% during the second quarter of 2023, compared with 5.44% for the first quarter of 2023 and 4.32% for the second quarter of 2022.
Loan production in the banking division during the second quarter of 2023 was $544.3 million, with weighted average yields of 9.35%, compared with $563.0 million and 8.72%, respectively, in the first quarter of 2023 and $1.07 billion and 5.24%, respectively, in the second quarter of 2022. 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 second quarter of 2023, with weighted average yields of 6.83%, compared with $3.4 billion and 6.57%, respectively, during the first quarter of 2023 and $5.3 billion and 4.29%, respectively, during the second quarter of 2022.
The Company's total cost of funds was 2.05% in the second quarter of 2023, an increase of 46 basis points compared with the first quarter of 2023. Deposit costs increased 63 basis points during the second quarter of 2023 to 1.76%, compared with 1.13% in the first quarter of 2023. Costs of interest-bearing deposits increased during the quarter from 1.82% in the first quarter of 2023 to 2.64% in the second quarter of 2023, reflecting a shift in mix to CDs in the rising rate environment.
Noninterest Income
Noninterest income increased $11.3 million, or 20.2%, in the second quarter of 2023 to $67.3 million, compared with $56.1 million for the first quarter of 2023, primarily as a result of increased mortgage banking activity, which increased by $9.4 million, or 29.8%, to $40.7 million in the second quarter of 2023, compared with $31.4 million for the first quarter of 2023. Gain on sale spreads increased to 2.18% in the second quarter of 2023 from 1.96% for the first quarter of 2023. Total production in the retail mortgage division increased $386.4 million, or 40.8%, to $1.33 billion in the second quarter of 2023, compared with $946.4 million for the first quarter of 2023. The retail mortgage open pipeline was $652.1 million at the end of the second quarter of 2023, compared with $725.9 million for the first quarter of 2023. Other noninterest income increased $1.6 million, or 12.5%, in the second quarter of 2023, compared with $12.7 million for the first quarter of 2023, primarily resulting from an increase in gain on sale of SBA loans of $880,000 and a gain on debt redemption of $1.0 million.
Noninterest Expense
Noninterest expense increased $9.0 million, or 6.4%, to $148.4 million during the second quarter of 2023, compared with $139.4 million for the first quarter of 2023. The increase in noninterest expenses was driven by a decrease in deferred loan origination costs of $2.5 million, a $2.2 million increase in variable compensation related to mortgage production and a $3.1 million increase in fraud/forgery and litigation resolution expenses. Management continues to focus on operating efficiency, and the adjusted efficiency ratio(1) increased to 53.41% in the second quarter of 2023, compared with 51.99% in the first quarter of 2023.
Income Tax Expense
The Company's effective tax rate for the second quarter of 2023 was 24.5%, compared with 23.1% for the first quarter of 2023. The increased rate for the second quarter of 2023 was primarily a result of increased permanent differences related to nondeductible compensation and FDIC insurance premiums and a reduction in tax benefits related to stock compensation vesting, compared with the first quarter of 2023.
Balance Sheet Trends
Total assets at June 30, 2023 were $25.80 billion, compared with $25.05 billion at December 31, 2022. Cash and cash equivalents increased 18.0% to $1.32 billion at June 30, 2023, compared with $1.12 billion at December 31, 2022. Debt securities available-for-sale decreased to $1.46 billion, compared with $1.50 billion at December 31, 2022. Loans, net of unearned income, increased $616.5 million, or 6.3% annualized, to $20.47 billion at June 30, 2023, compared with $19.86 billion at December 31, 2022. Loans held for sale decreased slightly to $391.5 million at June 30, 2023 from $392.1 million at December 31, 2022.
Investment securities remained consistent at $1.60 billion, or 6.8% of earning assets at the end of the second quarter of 2023, compared with $1.63 billion, or 7.2% of earning assets at December 31, 2022. This compares with $1.16 billion, or 5.5% of earning assets at the end of the second quarter of 2022. The Company did not deploy excess liquidity into the securities portfolio until after rates began rising during 2022; as a result, the unrealized loss position in the Company's available-for-sale securities portfolio remains modest at just 4.2% of the portfolio.
At June 30, 2023, total deposits amounted to $20.44 billion, compared with $19.46 billion at December 31, 2022. During the second quarter of 2023, deposits grew $545.7 million, with interest bearing demand accounts increasing $358.0 million, retail CDs increasing $268.6 million and brokered CDs increasing $357.8 million, with such increases offset in part by a $591.0 million decrease in noninterest bearing accounts. Due to the increased interest rate environment, the Company continued to see the shift of customer deposits from noninterest bearing accounts into interest bearing accounts, such that at June 30, 2023, noninterest bearing deposit accounts represented $6.71 billion, or 32.8% of total deposits, compared with $7.93 billion, or 40.7% of total deposits, at December 31, 2022.
During the second quarter of 2023, utilizing existing liquidity, the Company reduced borrowings with the FHLB by $875.0 million and redeemed $9.5 million in principal amount, at a discount, of its 4.25% Fixed-to-Floating Rate Subordinated Notes Due 2029.
Shareholders' equity at June 30, 2023 totaled $3.28 billion, an increase of $87.2 million, or 2.7%, from December 31, 2022. The increase in shareholders' equity was primarily the result of earnings of $123.1 million during the first six months of 2023, partially offset by dividends declared, share repurchases and an increase in other comprehensive loss of $4.1 million resulting from changes in interest rates on the Company's investment portfolio. Tangible book value per share(1) increased $1.50 per share, or 10.1% annualized, during the first six months of 2023 to $31.42 at June 30, 2023. The Company recorded dilution of $0.06 per share, or 0.2%, to tangible book value(1) from other comprehensive loss related to the increase in net unrealized losses on the securities portfolio during this same period. Tangible common equity as a percentage of tangible assets was 8.80% at June 30, 2023, compared with 8.67% at the end of 2022.
Credit Quality
Credit quality remains strong in the Company. During the second quarter of 2023, the Company recorded a provision for credit losses of $45.5 million, compared with a provision of $49.7 million in the first quarter of 2023. The second quarter provision was primarily attributable to the updated economic forecast and loan growth of $473.9 million during the quarter. Nonperforming assets as a percentage of total assets were down four basis points to 0.57% during the quarter. Approximately $69.7 million, or 47.6%, of the nonperforming assets at June 30, 2023 were GNMA-guaranteed mortgage loans, which have minimal loss exposure. Excluding these government-guaranteed loans, nonperforming assets as a percentage of total assets improved three basis points to 0.30% at June 30, 2023, compared with 0.33% at the first quarter of 2023. The net charge-off ratio was 28 basis points for the second quarter of 2023, compared with 22 basis points in the first quarter of 2023.
Conference Call
The Company will host a teleconference at 9:00 a.m. Eastern time on Friday, July 28, 2023, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-888-550-5279. The conference call access code is 9375737. A replay of the call will be available one hour after the end of the conference call until August 11, 2023. To listen to the replay, dial 1-800-770-2030. The conference replay access code is 9375737. 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 164 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.
(1) Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9E.
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 financial 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 financial 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 financial 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, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; 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, 2022 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 |
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FINANCIAL TABLES |
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Financial Highlights |
Table 1 |
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Three Months Ended |
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Six Months Ended |
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Jun |
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Mar |
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Dec |
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Sep |
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Jun |
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Jun |
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Jun |
(dollars in thousands except per share data) |
2023 |
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2023 |
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2022 |
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2022 |
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2022 |
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2023 |
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2022 |
EARNINGS |
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Net income |
$ 62,635 |
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$ 60,421 |
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$ 82,221 |
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$ 92,555 |
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$ 90,066 |
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$ 123,056 |
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$ 171,764 |
Adjusted net income(1) |
$ 62,635 |
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$ 59,935 |
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$ 81,086 |
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$ 91,817 |
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$ 81,473 |
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$ 122,570 |
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$ 156,512 |
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COMMON SHARE DATA |
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Earnings per share available to common shareholders |
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Basic |
$ 0.91 |
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$ 0.87 |
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$ 1.19 |
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$ 1.34 |
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$ 1.30 |
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$ 1.78 |
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$ 2.48 |
Diluted |
$ 0.91 |
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$ 0.87 |
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$ 1.18 |
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$ 1.34 |
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$ 1.30 |
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$ 1.78 |
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$ 2.47 |
Adjusted diluted EPS(1) |
$ 0.91 |
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$ 0.86 |
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$ 1.17 |
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$ 1.32 |
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$ 1.18 |
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$ 1.77 |
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$ 2.25 |
Cash dividends per share |
$ 0.15 |
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$ 0.15 |
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$ 0.15 |
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$ 0.15 |
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$ 0.15 |
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$ 0.30 |
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$ 0.30 |
Book value per share (period end) |
$ 47.51 |
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$ 46.89 |
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$ 46.09 |
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$ 44.97 |
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$ 44.31 |
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$ 47.51 |
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$ 44.31 |
Tangible book value per share (period end)(1) |
$ 31.42 |
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$ 30.79 |
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$ 29.92 |
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$ 28.62 |
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$ 27.89 |
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$ 31.42 |
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$ 27.89 |
Weighted average number of shares |
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Basic |
68,989,549 |
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69,171,562 |
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69,138,431 |
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69,124,855 |
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69,136,046 |
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69,084,746 |
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69,246,084 |
Diluted |
69,034,763 |
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69,322,664 |
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69,395,224 |
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69,327,414 |
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69,316,258 |
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69,191,512 |
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69,484,508 |
Period end number of shares |
69,139,783 |
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69,373,863 |
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69,369,050 |
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69,352,709 |
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69,360,461 |
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69,139,783 |
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69,360,461 |
Market data |
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High intraday price |
$ 37.18 |
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$ 50.54 |
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$ 54.24 |
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$ 50.94 |
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$ 46.28 |
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$ 50.54 |
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$ 55.62 |
Low intraday price |
$ 28.33 |
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$ 34.28 |
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$ 44.61 |
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$ 38.22 |
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$ 39.37 |
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$ 28.33 |
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$ 39.37 |
Period end closing price |
$ 34.21 |
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$ 36.58 |
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$ 47.14 |
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$ 44.71 |
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$ 40.18 |
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$ 34.21 |
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$ 40.18 |
Average daily volume |
$ 475,198 |
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$ 452,242 |
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$ 340,890 |
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$ 346,522 |
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$ 446,121 |
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$ 463,720 |
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458,990 |
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PERFORMANCE RATIOS |
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Return on average assets |
0.98 % |
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0.98 % |
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1.34 % |
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1.56 % |
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1.54 % |
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0.98 % |
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1.48 % |
Adjusted return on average assets(1) |
0.98 % |
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0.97 % |
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1.32 % |
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1.54 % |
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1.40 % |
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0.97 % |
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1.35 % |
Return on average common equity |
7.63 % |
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7.54 % |
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10.30 % |
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11.76 % |
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11.87 % |
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7.58 % |
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11.47 % |
Adjusted return on average tangible common equity(1) |
11.53 % |
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11.41 % |
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15.78 % |
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18.33 % |
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17.18 % |
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11.47 % |
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16.79 % |
Earning asset yield (TE) |
5.52 % |
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5.25 % |
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4.91 % |
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4.37 % |
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3.88 % |
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5.38 % |
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3.72 % |
Total cost of funds |
2.05 % |
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1.59 % |
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0.94 % |
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0.42 % |
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0.22 % |
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1.82 % |
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0.22 % |
Net interest margin (TE) |
3.60 % |
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3.76 % |
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4.03 % |
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3.97 % |
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3.66 % |
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3.68 % |
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3.51 % |
Efficiency ratio |
53.60 % |
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52.08 % |
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49.57 % |
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50.15 % |
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51.67 % |
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52.85 % |
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53.49 % |
Adjusted efficiency ratio (TE)(1) |
53.41 % |
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51.99 % |
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49.61 % |
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50.12 % |
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53.66 % |
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52.72 % |
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55.26 % |
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CAPITAL ADEQUACY (period end) |
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Shareholders' equity to assets |
12.73 % |
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12.47 % |
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12.76 % |
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13.10 % |
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12.97 % |
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12.73 % |
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12.97 % |
Tangible common equity to tangible assets(1) |
8.80 % |
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8.55 % |
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8.67 % |
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8.75 % |
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8.58 % |
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8.80 % |
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8.58 % |
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OTHER DATA (period end) |
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Full time equivalent employees |
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Banking Division |
2,069 |
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2,093 |
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2,079 |
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2,071 |
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2,050 |
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2,069 |
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2,050 |
Retail Mortgage Division |
613 |
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630 |
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633 |
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671 |
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712 |
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613 |
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712 |
Warehouse Lending Division |
8 |
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8 |
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8 |
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9 |
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9 |
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8 |
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9 |
SBA Division |
35 |
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39 |
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39 |
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40 |
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36 |
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35 |
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36 |
Premium Finance Division |
76 |
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78 |
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76 |
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77 |
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78 |
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76 |
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78 |
Total Ameris Bancorp FTE headcount |
2,801 |
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2,848 |
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2,835 |
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2,868 |
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2,885 |
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2,801 |
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2,885 |
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Branch locations |
164 |
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164 |
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164 |
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164 |
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164 |
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164 |
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164 |
Deposits per branch location |
$ 124,653 |
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$ 121,326 |
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$ 118,675 |
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$ 118,701 |
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$ 120,030 |
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$ 124,653 |
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$ 120,030 |
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(1)Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9E |
AMERIS BANCORP AND SUBSIDIARIES |
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FINANCIAL TABLES |
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Income Statement |
Table 2 |
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Three Months Ended |
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Six Months Ended |
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Jun |
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Mar |
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Dec |
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Sep |
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Jun |
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Jun |
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Jun |
(dollars in thousands except per share data) |
2023 |
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2023 |
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2022 |
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2022 |
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2022 |
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2023 |
|
2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ 292,012 |
|
$ 271,964 |
|
$ 250,263 |
|
$ 216,400 |
|
$ 190,740 |
|
$ 563,976 |
|
$ 368,306 |
Interest on taxable securities |
15,915 |
|
14,300 |
|
13,029 |
|
10,324 |
|
7,064 |
|
30,215 |
|
11,303 |
Interest on nontaxable securities |
339 |
|
339 |
|
358 |
|
363 |
|
269 |
|
678 |
|
455 |
Interest on deposits in other banks |
13,686 |
|
9,113 |
|
9,984 |
|
7,188 |
|
4,463 |
|
22,799 |
|
5,836 |
Interest on federal funds sold |
— |
|
— |
|
8 |
|
27 |
|
32 |
|
— |
|
42 |
Total interest income |
321,952 |
|
295,716 |
|
273,642 |
|
234,302 |
|
202,568 |
|
617,668 |
|
385,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
88,087 |
|
53,182 |
|
33,071 |
|
14,034 |
|
4,908 |
|
141,269 |
|
9,000 |
Interest on other borrowings |
24,325 |
|
30,882 |
|
16,434 |
|
7,287 |
|
6,296 |
|
55,207 |
|
13,034 |
Total interest expense |
112,412 |
|
84,064 |
|
49,505 |
|
21,321 |
|
11,204 |
|
196,476 |
|
22,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
209,540 |
|
211,652 |
|
224,137 |
|
212,981 |
|
191,364 |
|
421,192 |
|
363,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
43,643 |
|
49,376 |
|
24,648 |
|
17,469 |
|
13,227 |
|
93,019 |
|
10,493 |
Provision for unfunded commitments |
1,873 |
|
346 |
|
8,246 |
|
192 |
|
1,779 |
|
2,219 |
|
10,788 |
Provision for other credit losses |
— |
|
7 |
|
(4) |
|
(9) |
|
(82) |
|
7 |
|
(126) |
Provision for credit losses |
45,516 |
|
49,729 |
|
32,890 |
|
17,652 |
|
14,924 |
|
95,245 |
|
21,155 |
Net interest income after provision for credit losses |
164,024 |
|
161,923 |
|
191,247 |
|
195,329 |
|
176,440 |
|
325,947 |
|
342,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
11,295 |
|
10,936 |
|
11,125 |
|
11,168 |
|
11,148 |
|
22,231 |
|
22,206 |
Mortgage banking activity |
40,742 |
|
31,392 |
|
22,855 |
|
40,350 |
|
58,761 |
|
72,134 |
|
121,699 |
Other service charges, commissions and fees |
975 |
|
971 |
|
968 |
|
970 |
|
998 |
|
1,946 |
|
1,937 |
Gain (loss) on securities |
(6) |
|
6 |
|
3 |
|
(21) |
|
248 |
|
— |
|
221 |
Other noninterest income |
14,343 |
|
12,745 |
|
13,397 |
|
12,857 |
|
12,686 |
|
27,088 |
|
24,689 |
Total noninterest income |
67,349 |
|
56,050 |
|
48,348 |
|
65,324 |
|
83,841 |
|
123,399 |
|
170,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
81,336 |
|
80,910 |
|
75,196 |
|
78,697 |
|
81,545 |
|
162,246 |
|
165,826 |
Occupancy and equipment |
12,522 |
|
12,986 |
|
12,905 |
|
12,983 |
|
12,746 |
|
25,508 |
|
25,473 |
Data processing and communications expenses |
13,451 |
|
13,034 |
|
12,486 |
|
12,015 |
|
12,155 |
|
26,485 |
|
24,727 |
Credit resolution-related expenses(1) |
848 |
|
435 |
|
372 |
|
126 |
|
496 |
|
1,283 |
|
(469) |
Advertising and marketing |
2,627 |
|
3,532 |
|
3,818 |
|
3,553 |
|
3,122 |
|
6,159 |
|
5,110 |
Amortization of intangible assets |
4,688 |
|
4,706 |
|
4,709 |
|
4,710 |
|
5,144 |
|
9,394 |
|
10,325 |
Merger and conversion charges |
— |
|
— |
|
235 |
|
— |
|
— |
|
— |
|
977 |
Other noninterest expenses |
32,931 |
|
23,818 |
|
25,340 |
|
27,494 |
|
26,988 |
|
56,749 |
|
54,047 |
Total noninterest expense |
148,403 |
|
139,421 |
|
135,061 |
|
139,578 |
|
142,196 |
|
287,824 |
|
286,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
82,970 |
|
78,552 |
|
104,534 |
|
121,075 |
|
118,085 |
|
161,522 |
|
227,489 |
Income tax expense |
20,335 |
|
18,131 |
|
22,313 |
|
28,520 |
|
28,019 |
|
38,466 |
|
55,725 |
Net income |
$ 62,635 |
|
$ 60,421 |
|
$ 82,221 |
|
$ 92,555 |
|
$ 90,066 |
|
$ 123,056 |
|
$ 171,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
$ 0.91 |
|
$ 0.87 |
|
$ 1.18 |
|
$ 1.34 |
|
$ 1.30 |
|
$ 1.78 |
|
$ 2.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 in thousands) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 284,552 |
|
$ 266,400 |
|
$ 284,567 |
|
$ 269,193 |
|
$ 345,627 |
Federal funds sold and interest-bearing deposits in banks |
1,034,578 |
|
1,754,453 |
|
833,565 |
|
1,061,975 |
|
1,961,209 |
Debt securities available-for-sale, at fair value |
1,460,356 |
|
1,496,836 |
|
1,500,060 |
|
1,255,149 |
|
1,052,268 |
Debt securities held-to-maturity, at amortized cost |
142,513 |
|
134,175 |
|
134,864 |
|
130,214 |
|
111,654 |
Other investments |
109,656 |
|
146,715 |
|
110,992 |
|
60,560 |
|
49,500 |
Loans held for sale |
391,472 |
|
395,096 |
|
392,078 |
|
297,987 |
|
555,665 |
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income |
20,471,759 |
|
19,997,871 |
|
19,855,253 |
|
18,806,856 |
|
17,561,022 |
Allowance for credit losses |
(272,071) |
|
(242,658) |
|
(205,677) |
|
(184,891) |
|
(172,642) |
Loans, net |
20,199,688 |
|
19,755,213 |
|
19,649,576 |
|
18,621,965 |
|
17,388,380 |
|
|
|
|
|
|
|
|
|
|
Other real estate owned |
6,170 |
|
1,502 |
|
843 |
|
843 |
|
835 |
Premises and equipment, net |
218,662 |
|
218,878 |
|
220,283 |
|
222,694 |
|
224,249 |
Goodwill |
1,015,646 |
|
1,015,646 |
|
1,015,646 |
|
1,023,071 |
|
1,023,056 |
Other intangible assets, net |
96,800 |
|
101,488 |
|
106,194 |
|
110,903 |
|
115,613 |
Cash value of bank owned life insurance |
391,483 |
|
389,201 |
|
388,405 |
|
386,533 |
|
384,862 |
Other assets |
449,042 |
|
412,781 |
|
416,213 |
|
372,570 |
|
474,552 |
Total assets |
$ 25,800,618 |
|
$ 26,088,384 |
|
$ 25,053,286 |
|
$ 23,813,657 |
|
$ 23,687,470 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ 6,706,897 |
|
$ 7,297,893 |
|
$ 7,929,579 |
|
$ 8,343,200 |
|
$ 8,262,929 |
Interest-bearing |
13,736,228 |
|
12,599,562 |
|
11,533,159 |
|
11,123,719 |
|
11,422,053 |
Total deposits |
20,443,125 |
|
19,897,455 |
|
19,462,738 |
|
19,466,919 |
|
19,684,982 |
Federal funds purchased and securities sold under agreements to repurchase |
— |
|
— |
|
— |
|
— |
|
953 |
Other borrowings |
1,536,989 |
|
2,401,327 |
|
1,875,736 |
|
725,664 |
|
425,592 |
Subordinated deferrable interest debentures |
129,319 |
|
128,820 |
|
128,322 |
|
127,823 |
|
127,325 |
Other liabilities |
406,555 |
|
407,587 |
|
389,090 |
|
374,181 |
|
375,242 |
Total liabilities |
22,515,988 |
|
22,835,189 |
|
21,855,886 |
|
20,694,587 |
|
20,614,094 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Preferred stock |
— |
|
— |
|
— |
|
— |
|
— |
Common stock |
72,515 |
|
72,484 |
|
72,264 |
|
72,247 |
|
72,251 |
Capital stock |
1,939,865 |
|
1,937,664 |
|
1,935,211 |
|
1,932,906 |
|
1,931,088 |
Retained earnings |
1,414,742 |
|
1,362,512 |
|
1,311,258 |
|
1,239,477 |
|
1,157,359 |
Accumulated other comprehensive income (loss), net of tax |
(50,618) |
|
(35,581) |
|
(46,507) |
|
(50,734) |
|
(12,635) |
Treasury stock |
(91,874) |
|
(83,884) |
|
(74,826) |
|
(74,826) |
|
(74,687) |
Total shareholders' equity |
3,284,630 |
|
3,253,195 |
|
3,197,400 |
|
3,119,070 |
|
3,073,376 |
Total liabilities and shareholders' equity |
$ 25,800,618 |
|
$ 26,088,384 |
|
$ 25,053,286 |
|
$ 23,813,657 |
|
$ 23,687,470 |
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
Earning assets |
$ 23,610,334 |
|
$ 23,925,146 |
|
$ 22,826,812 |
|
$ 21,612,741 |
|
$ 21,291,318 |
Intangible assets |
1,112,446 |
|
1,117,134 |
|
1,121,840 |
|
1,133,974 |
|
1,138,669 |
Interest-bearing liabilities |
15,402,536 |
|
15,129,709 |
|
13,537,217 |
|
11,977,206 |
|
11,975,923 |
Average assets |
25,631,846 |
|
25,115,927 |
|
24,354,979 |
|
23,598,465 |
|
23,405,201 |
Average common shareholders' equity |
3,293,049 |
|
3,250,289 |
|
3,168,320 |
|
3,123,718 |
|
3,043,280 |
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Allowance for Credit Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ 295,497 |
|
$ 258,163 |
|
$ 229,135 |
|
$ 216,703 |
|
$ 203,615 |
|
$ 258,163 |
|
$ 200,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adoption of ASU 2022-02 |
— |
|
(1,711) |
|
— |
|
— |
|
— |
|
(1,711) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
43,643 |
|
49,376 |
|
24,648 |
|
17,469 |
|
13,227 |
|
93,019 |
|
10,493 |
Provision for unfunded commitments |
1,873 |
|
346 |
|
8,246 |
|
192 |
|
1,779 |
|
2,219 |
|
10,788 |
Provision for other credit losses |
— |
|
7 |
|
(4) |
|
(9) |
|
(82) |
|
7 |
|
(126) |
Provision for credit losses |
45,516 |
|
49,729 |
|
32,890 |
|
17,652 |
|
14,924 |
|
95,245 |
|
21,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
20,670 |
|
14,956 |
|
8,371 |
|
9,272 |
|
6,853 |
|
35,626 |
|
15,432 |
Recoveries |
6,440 |
|
4,272 |
|
4,509 |
|
4,052 |
|
5,017 |
|
10,712 |
|
9,999 |
Net charge-offs (recoveries) |
14,230 |
|
10,684 |
|
3,862 |
|
5,220 |
|
1,836 |
|
24,914 |
|
5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
$ 326,783 |
|
$ 295,497 |
|
$ 258,163 |
|
$ 229,135 |
|
$ 216,703 |
|
$ 326,783 |
|
$ 216,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ 272,071 |
|
$ 242,658 |
|
$ 205,677 |
|
$ 184,891 |
|
$ 172,642 |
|
$ 272,071 |
|
$ 172,642 |
Allowance for unfunded commitments |
54,630 |
|
52,757 |
|
52,411 |
|
44,165 |
|
43,973 |
|
54,630 |
|
43,973 |
Allowance for other credit losses |
82 |
|
82 |
|
75 |
|
79 |
|
88 |
|
82 |
|
88 |
Total allowance for credit losses |
$ 326,783 |
|
$ 295,497 |
|
$ 258,163 |
|
$ 229,135 |
|
$ 216,703 |
|
$ 326,783 |
|
$ 216,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-off Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural |
$ 13,316 |
|
$ 12,233 |
|
$ 5,108 |
|
$ 4,722 |
|
$ 4,391 |
|
$ 25,549 |
|
$ 8,805 |
Consumer |
2,052 |
|
1,140 |
|
1,136 |
|
1,228 |
|
1,137 |
|
3,192 |
|
2,562 |
Indirect automobile |
65 |
|
34 |
|
86 |
|
50 |
|
41 |
|
99 |
|
129 |
Premium Finance |
1,848 |
|
1,421 |
|
1,812 |
|
1,205 |
|
1,066 |
|
3,269 |
|
2,435 |
Real estate - construction and development |
— |
|
— |
|
27 |
|
— |
|
— |
|
— |
|
— |
Real estate - commercial and farmland |
3,320 |
|
— |
|
196 |
|
2,014 |
|
81 |
|
3,320 |
|
1,364 |
Real estate - residential |
69 |
|
128 |
|
6 |
|
53 |
|
137 |
|
197 |
|
137 |
Total charge-offs |
20,670 |
|
14,956 |
|
8,371 |
|
9,272 |
|
6,853 |
|
35,626 |
|
15,432 |
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural |
3,545 |
|
2,043 |
|
2,072 |
|
2,201 |
|
2,785 |
|
5,588 |
|
5,681 |
Consumer |
194 |
|
297 |
|
217 |
|
277 |
|
230 |
|
491 |
|
388 |
Indirect automobile |
225 |
|
216 |
|
229 |
|
276 |
|
265 |
|
441 |
|
540 |
Premium Finance |
1,680 |
|
1,382 |
|
1,682 |
|
1,023 |
|
1,113 |
|
3,062 |
|
2,360 |
Real estate - construction and development |
472 |
|
100 |
|
223 |
|
96 |
|
355 |
|
572 |
|
573 |
Real estate - commercial and farmland |
61 |
|
44 |
|
48 |
|
96 |
|
44 |
|
105 |
|
81 |
Real estate - residential |
263 |
|
190 |
|
38 |
|
83 |
|
225 |
|
453 |
|
376 |
Total recoveries |
6,440 |
|
4,272 |
|
4,509 |
|
4,052 |
|
5,017 |
|
10,712 |
|
9,999 |
Net charge-offs (recoveries) |
$ 14,230 |
|
$ 10,684 |
|
$ 3,862 |
|
$ 5,220 |
|
$ 1,836 |
|
$ 24,914 |
|
$ 5,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual portfolio loans |
$ 57,025 |
|
$ 68,028 |
|
$ 65,221 |
|
$ 64,055 |
|
$ 72,352 |
|
$ 57,025 |
|
$ 72,352 |
Other real estate owned |
6,170 |
|
1,502 |
|
843 |
|
843 |
|
835 |
|
6,170 |
|
835 |
Repossessed assets |
9 |
|
25 |
|
28 |
|
60 |
|
122 |
|
9 |
|
122 |
Accruing loans delinquent 90 days or more |
13,424 |
|
15,792 |
|
17,865 |
|
12,378 |
|
8,542 |
|
13,424 |
|
8,542 |
Non-performing portfolio assets |
$ 76,628 |
|
$ 85,347 |
|
$ 83,957 |
|
$ 77,336 |
|
$ 81,851 |
|
$ 76,628 |
|
$ 81,851 |
Serviced GNMA-guaranteed mortgage nonaccrual loans |
69,655 |
|
74,999 |
|
69,587 |
|
54,621 |
|
50,560 |
|
69,655 |
|
50,560 |
Total non-performing assets |
$ 146,283 |
|
$ 160,346 |
|
$ 153,544 |
|
$ 131,957 |
|
$ 132,411 |
|
$ 146,283 |
|
$ 132,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing portfolio assets as a percent of total assets |
0.30 % |
|
0.33 % |
|
0.34 % |
|
0.32 % |
|
0.35 % |
|
0.30 % |
|
0.35 % |
Total non-performing assets as a percent of total assets |
0.57 % |
|
0.61 % |
|
0.61 % |
|
0.55 % |
|
0.56 % |
|
0.57 % |
|
0.56 % |
Net charge-offs as a percent of average loans (annualized) |
0.28 % |
|
0.22 % |
|
0.08 % |
|
0.11 % |
|
0.04 % |
|
0.25 % |
|
0.07 % |
AMERIS BANCORP AND SUBSIDIARIES |
|||||||||
FINANCIAL TABLES |
|||||||||
|
|||||||||
Loan Information |
Table 5 |
||||||||
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Jun |
(dollars in thousands) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Loans by Type |
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural |
$ 2,718,831 |
|
$ 2,722,180 |
|
$ 2,679,403 |
|
$ 2,245,287 |
|
$ 2,022,845 |
Consumer |
307,486 |
|
349,775 |
|
384,037 |
|
162,345 |
|
167,237 |
Indirect automobile |
63,231 |
|
83,466 |
|
108,648 |
|
137,183 |
|
172,245 |
Mortgage warehouse |
1,147,413 |
|
958,418 |
|
1,038,924 |
|
980,342 |
|
949,191 |
Municipal |
510,410 |
|
505,515 |
|
509,151 |
|
516,797 |
|
529,268 |
Premium Finance |
988,731 |
|
947,257 |
|
1,023,479 |
|
1,062,724 |
|
942,357 |
Real estate - construction and development |
2,217,744 |
|
2,144,605 |
|
2,086,438 |
|
2,009,726 |
|
1,747,284 |
Real estate - commercial and farmland |
7,815,779 |
|
7,721,732 |
|
7,604,868 |
|
7,516,309 |
|
7,156,017 |
Real estate - residential |
4,702,134 |
|
4,564,923 |
|
4,420,305 |
|
4,176,143 |
|
3,874,578 |
Total loans |
$ 20,471,759 |
|
$ 19,997,871 |
|
$ 19,855,253 |
|
$ 18,806,856 |
|
$ 17,561,022 |
|
|
|
|
|
|
|
|
|
|
Loans by Risk Grade |
|
|
|
|
|
|
|
|
|
Grades 1 through 5 - Pass |
$ 20,114,816 |
|
$ 19,654,232 |
|
$ 19,513,726 |
|
$ 18,483,046 |
|
$ 17,296,520 |
Grade 6 - Other assets especially mentioned |
171,035 |
|
116,345 |
|
104,614 |
|
110,408 |
|
68,444 |
Grade 7 - Substandard |
185,908 |
|
227,294 |
|
236,913 |
|
213,402 |
|
196,058 |
Grade 8 - Doubtful |
— |
|
— |
|
— |
|
— |
|
— |
Grade 9 - Loss |
— |
|
— |
|
— |
|
— |
|
— |
Total loans |
$ 20,471,759 |
|
$ 19,997,871 |
|
$ 19,855,253 |
|
$ 18,806,856 |
|
$ 17,561,022 |
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
$ — |
|
$ — |
|
$ 924 |
|
$ 5,000 |
|
$ 17,692 |
|
$ — |
|
$ 18,840 |
Interest-bearing deposits in banks |
998,609 |
|
859,614 |
|
1,009,935 |
|
1,394,529 |
|
2,209,761 |
|
929,496 |
|
2,798,231 |
Debt securities - taxable |
1,582,076 |
|
1,586,404 |
|
1,451,861 |
|
1,242,811 |
|
932,824 |
|
1,584,228 |
|
779,016 |
Debt securities - nontaxable |
42,580 |
|
43,052 |
|
44,320 |
|
45,730 |
|
39,236 |
|
42,814 |
|
34,446 |
Other investments |
117,020 |
|
131,044 |
|
83,730 |
|
51,209 |
|
49,550 |
|
123,994 |
|
48,716 |
Loans held for sale |
577,606 |
|
490,295 |
|
371,952 |
|
471,070 |
|
944,964 |
|
534,192 |
|
1,020,611 |
Loans |
20,164,938 |
|
19,820,749 |
|
19,212,560 |
|
18,146,083 |
|
16,861,674 |
|
19,993,794 |
|
16,344,409 |
Total Earning Assets |
$ 23,482,829 |
|
$ 22,931,158 |
|
$ 22,175,282 |
|
$ 21,356,432 |
|
$ 21,055,701 |
|
$ 23,208,518 |
|
$ 21,044,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ 6,729,789 |
|
$ 7,136,373 |
|
$ 8,138,887 |
|
$ 8,259,625 |
|
$ 7,955,765 |
|
$ 6,931,852 |
|
$ 7,807,929 |
NOW accounts |
3,949,850 |
|
4,145,991 |
|
3,621,454 |
|
3,701,045 |
|
3,695,490 |
|
4,047,484 |
|
3,690,161 |
MMDA |
5,002,590 |
|
4,994,195 |
|
5,161,047 |
|
5,026,815 |
|
5,087,199 |
|
4,998,417 |
|
5,163,636 |
Savings accounts |
1,009,749 |
|
1,005,614 |
|
1,010,966 |
|
1,030,298 |
|
1,007,340 |
|
1,007,693 |
|
990,625 |
Retail CDs |
2,024,014 |
|
1,612,325 |
|
1,450,037 |
|
1,506,761 |
|
1,693,740 |
|
1,819,307 |
|
1,733,656 |
Brokered CDs |
1,393,206 |
|
125,133 |
|
— |
|
— |
|
— |
|
762,672 |
|
— |
Total Deposits |
20,109,198 |
|
19,019,631 |
|
19,382,391 |
|
19,524,544 |
|
19,439,534 |
|
19,567,425 |
|
19,386,007 |
Non-Deposit Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold under agreements to repurchase |
— |
|
— |
|
1 |
|
92 |
|
1,854 |
|
— |
|
2,931 |
FHLB advances |
1,408,855 |
|
1,968,811 |
|
918,228 |
|
94,357 |
|
48,746 |
|
1,687,286 |
|
48,766 |
Other borrowings |
316,626 |
|
361,445 |
|
377,056 |
|
376,942 |
|
376,829 |
|
338,912 |
|
410,058 |
Subordinated deferrable interest debentures |
129,056 |
|
128,557 |
|
128,060 |
|
127,560 |
|
127,063 |
|
128,808 |
|
126,814 |
Total Non-Deposit Funding |
1,854,537 |
|
2,458,813 |
|
1,423,345 |
|
598,951 |
|
554,492 |
|
2,155,006 |
|
588,569 |
Total Funding |
$ 21,963,735 |
|
$ 21,478,444 |
|
$ 20,805,736 |
|
$ 20,123,495 |
|
$ 19,994,026 |
|
$ 21,722,431 |
|
$ 19,974,576 |
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
$ — |
|
$ — |
|
$ 8 |
|
$ 27 |
|
$ 32 |
|
$ — |
|
$ 42 |
Interest-bearing deposits in banks |
13,686 |
|
9,113 |
|
9,984 |
|
7,188 |
|
4,463 |
|
22,799 |
|
5,836 |
Debt securities - taxable |
15,915 |
|
14,300 |
|
13,029 |
|
10,324 |
|
7,064 |
|
30,215 |
|
11,303 |
Debt securities - nontaxable (TE) |
430 |
|
429 |
|
454 |
|
459 |
|
341 |
|
859 |
|
576 |
Loans held for sale |
8,398 |
|
7,007 |
|
5,519 |
|
6,012 |
|
10,036 |
|
15,405 |
|
18,168 |
Loans (TE) |
284,471 |
|
265,802 |
|
245,603 |
|
211,223 |
|
181,602 |
|
550,273 |
|
352,000 |
Total Earning Assets |
$ 322,900 |
|
$ 296,651 |
|
$ 274,597 |
|
$ 235,233 |
|
$ 203,538 |
|
$ 619,551 |
|
$ 387,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ 18,003 |
|
$ 15,033 |
|
$ 8,564 |
|
$ 3,733 |
|
$ 1,246 |
|
$ 33,036 |
|
$ 2,070 |
MMDA |
35,224 |
|
27,809 |
|
20,683 |
|
8,613 |
|
2,204 |
|
63,033 |
|
3,847 |
Savings accounts |
2,296 |
|
1,288 |
|
654 |
|
360 |
|
140 |
|
3,584 |
|
273 |
Retail CDs |
14,751 |
|
7,629 |
|
3,170 |
|
1,328 |
|
1,318 |
|
22,380 |
|
2,810 |
Brokered CDs |
17,813 |
|
1,423 |
|
— |
|
— |
|
— |
|
19,236 |
|
— |
Total Interest-Bearing Deposits |
88,087 |
|
53,182 |
|
33,071 |
|
14,034 |
|
4,908 |
|
141,269 |
|
9,000 |
Non-Deposit Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold under agreements to repurchase |
— |
|
— |
|
— |
|
— |
|
1 |
|
— |
|
4 |
FHLB advances |
17,222 |
|
22,448 |
|
8,801 |
|
527 |
|
192 |
|
39,670 |
|
382 |
Other borrowings |
3,902 |
|
5,349 |
|
4,953 |
|
4,655 |
|
4,437 |
|
9,251 |
|
9,601 |
Subordinated deferrable interest debentures |
3,201 |
|
3,085 |
|
2,680 |
|
2,105 |
|
1,666 |
|
6,286 |
|
3,047 |
Total Non-Deposit Funding |
24,325 |
|
30,882 |
|
16,434 |
|
7,287 |
|
6,296 |
|
55,207 |
|
13,034 |
Total Interest-Bearing Funding |
$ 112,412 |
|
$ 84,064 |
|
$ 49,505 |
|
$ 21,321 |
|
$ 11,204 |
|
$ 196,476 |
|
$ 22,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (TE) |
$ 210,488 |
|
$ 212,587 |
|
$ 225,092 |
|
$ 213,912 |
|
$ 192,334 |
|
$ 423,075 |
|
$ 365,891 |
AMERIS BANCORP AND SUBSIDIARIES |
|||||||||||||
FINANCIAL TABLES |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields(1) |
Table 8 |
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Jun |
|
Jun |
|
Jun |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
— % |
|
— % |
|
3.43 % |
|
2.14 % |
|
0.73 % |
|
— % |
|
0.45 % |
Interest-bearing deposits in banks |
5.50 % |
|
4.30 % |
|
3.92 % |
|
2.04 % |
|
0.81 % |
|
4.95 % |
|
0.42 % |
Debt securities - taxable |
4.03 % |
|
3.66 % |
|
3.56 % |
|
3.30 % |
|
3.04 % |
|
3.85 % |
|
2.93 % |
Debt securities - nontaxable (TE) |
4.05 % |
|
4.04 % |
|
4.06 % |
|
3.98 % |
|
3.49 % |
|
4.05 % |
|
3.37 % |
Loans held for sale |
5.83 % |
|
5.80 % |
|
5.89 % |
|
5.06 % |
|
4.26 % |
|
5.82 % |
|
3.59 % |
Loans (TE) |
5.66 % |
|
5.44 % |
|
5.07 % |
|
4.62 % |
|
4.32 % |
|
5.55 % |
|
4.34 % |
Total Earning Assets |
5.52 % |
|
5.25 % |
|
4.91 % |
|
4.37 % |
|
3.88 % |
|
5.38 % |
|
3.72 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
1.83 % |
|
1.47 % |
|
0.94 % |
|
0.40 % |
|
0.14 % |
|
1.65 % |
|
0.11 % |
MMDA |
2.82 % |
|
2.26 % |
|
1.59 % |
|
0.68 % |
|
0.17 % |
|
2.54 % |
|
0.15 % |
Savings accounts |
0.91 % |
|
0.52 % |
|
0.26 % |
|
0.14 % |
|
0.06 % |
|
0.72 % |
|
0.06 % |
Retail CDs |
2.92 % |
|
1.92 % |
|
0.87 % |
|
0.35 % |
|
0.31 % |
|
2.48 % |
|
0.33 % |
Brokered CDs |
5.13 % |
|
4.61 % |
|
— % |
|
— % |
|
— % |
|
5.09 % |
|
— % |
Total Interest-Bearing Deposits |
2.64 % |
|
1.82 % |
|
1.17 % |
|
0.49 % |
|
0.17 % |
|
2.25 % |
|
0.16 % |
Non-Deposit Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold under agreements to repurchase |
— % |
|
— % |
|
— % |
|
— % |
|
0.22 % |
|
— % |
|
0.28 % |
FHLB advances |
4.90 % |
|
4.62 % |
|
3.80 % |
|
2.22 % |
|
1.58 % |
|
4.74 % |
|
1.58 % |
Other borrowings |
4.94 % |
|
6.00 % |
|
5.21 % |
|
4.90 % |
|
4.72 % |
|
5.50 % |
|
4.72 % |
Subordinated deferrable interest debentures |
9.95 % |
|
9.73 % |
|
8.30 % |
|
6.55 % |
|
5.26 % |
|
9.84 % |
|
4.85 % |
Total Non-Deposit Funding |
5.26 % |
|
5.09 % |
|
4.58 % |
|
4.83 % |
|
4.55 % |
|
5.17 % |
|
4.47 % |
Total Interest-Bearing Liabilities |
2.96 % |
|
2.38 % |
|
1.55 % |
|
0.71 % |
|
0.37 % |
|
2.68 % |
|
0.37 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread |
2.56 % |
|
2.87 % |
|
3.36 % |
|
3.66 % |
|
3.51 % |
|
2.70 % |
|
3.35 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin(2) |
3.60 % |
|
3.76 % |
|
4.03 % |
|
3.97 % |
|
3.66 % |
|
3.68 % |
|
3.51 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cost of Funds(3) |
2.05 % |
|
1.59 % |
|
0.94 % |
|
0.42 % |
|
0.22 % |
|
1.82 % |
|
0.22 % |
|
|
|
|
|
|||||||||
(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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Net income available to common shareholders |
$ 62,635 |
|
$ 60,421 |
|
$ 82,221 |
|
$ 92,555 |
|
$ 90,066 |
|
$ 123,056 |
|
$ 171,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and conversion charges |
— |
|
— |
|
235 |
|
— |
|
— |
|
— |
|
977 |
(Gain) loss on sale of MSR |
— |
|
— |
|
(1,672) |
|
316 |
|
— |
|
— |
|
|
Servicing right impairment (recovery) |
— |
|
— |
|
— |
|
(1,332) |
|
(10,838) |
|
— |
|
(20,492) |
Gain on BOLI proceeds |
— |
|
(486) |
|
— |
|
(55) |
|
— |
|
(486) |
|
— |
Natural disaster and pandemic charges |
— |
|
— |
|
— |
|
151 |
|
— |
|
— |
|
— |
(Gain) loss on bank premises |
— |
|
— |
|
— |
|
— |
|
(39) |
|
— |
|
(45) |
Tax effect of adjustment items (Note 1) |
— |
|
— |
|
302 |
|
182 |
|
2,284 |
|
— |
|
4,308 |
After tax adjustment items |
— |
|
(486) |
|
(1,135) |
|
(738) |
|
(8,593) |
|
(486) |
|
(15,252) |
Adjusted net income |
$ 62,635 |
|
$ 59,935 |
|
$ 81,086 |
|
$ 91,817 |
|
$ 81,473 |
|
$ 122,570 |
|
$ 156,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares - diluted |
69,034,763 |
|
69,322,664 |
|
69,395,224 |
|
69,327,414 |
|
69,316,258 |
|
69,191,512 |
|
69,484,508 |
Net income per diluted share |
$ 0.91 |
|
$ 0.87 |
|
$ 1.18 |
|
$ 1.34 |
|
$ 1.30 |
|
$ 1.78 |
|
$ 2.47 |
Adjusted net income per diluted share |
$ 0.91 |
|
$ 0.86 |
|
$ 1.17 |
|
$ 1.32 |
|
$ 1.18 |
|
$ 1.77 |
|
$ 2.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ 25,631,846 |
|
$ 25,115,927 |
|
$ 24,354,979 |
|
$ 23,598,465 |
|
$ 23,405,201 |
|
$ 25,375,312 |
|
$ 23,340,785 |
Return on average assets |
0.98 % |
|
0.98 % |
|
1.34 % |
|
1.56 % |
|
1.54 % |
|
0.98 % |
|
1.48 % |
Adjusted return on average assets |
0.98 % |
|
0.97 % |
|
1.32 % |
|
1.54 % |
|
1.40 % |
|
0.97 % |
|
1.35 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity |
$ 3,293,049 |
|
$ 3,250,289 |
|
$ 3,168,320 |
|
$ 3,123,718 |
|
$ 3,043,280 |
|
$ 3,271,787 |
|
$ 3,019,100 |
Average tangible common equity |
$ 2,178,323 |
|
$ 2,130,856 |
|
$ 2,039,094 |
|
$ 1,987,385 |
|
$ 1,902,265 |
|
$ 2,154,720 |
|
$ 1,880,112 |
Return on average common equity |
7.63 % |
|
7.54 % |
|
10.30 % |
|
11.76 % |
|
11.87 % |
|
7.58 % |
|
11.47 % |
Adjusted return on average tangible common equity |
11.53 % |
|
11.41 % |
|
15.78 % |
|
18.33 % |
|
17.18 % |
|
11.47 % |
|
16.79 % |
|
|||||||||||||
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 the six months ended June 2022 are nondeductible for tax purposes. |
AMERIS BANCORP AND SUBSIDIARIES |
|||||||||||||
FINANCIAL TABLES |
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|||||||||
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Adjusted Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ 148,403 |
|
$ 139,421 |
|
$ 135,061 |
|
$ 139,578 |
|
$ 142,196 |
|
$ 287,824 |
|
$ 286,016 |
Adjustment items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and conversion charges |
— |
|
— |
|
(235) |
|
— |
|
— |
|
— |
|
(977) |
Natural disaster and pandemic charges |
— |
|
— |
|
— |
|
(151) |
|
— |
|
— |
|
— |
Gain (loss) on bank premises |
— |
|
— |
|
— |
|
— |
|
39 |
|
— |
|
45 |
Adjusted noninterest expense |
$ 148,403 |
|
$ 139,421 |
|
$ 134,826 |
|
$ 139,427 |
|
$ 142,235 |
|
$ 287,824 |
|
$ 285,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 209,540 |
|
$ 211,652 |
|
$ 224,137 |
|
$ 212,981 |
|
$ 191,364 |
|
$ 421,192 |
|
$ 363,908 |
Noninterest income |
67,349 |
|
56,050 |
|
48,348 |
|
65,324 |
|
83,841 |
|
123,399 |
|
170,752 |
Total revenue |
$ 276,889 |
|
$ 267,702 |
|
$ 272,485 |
|
$ 278,305 |
|
$ 275,205 |
|
$ 544,591 |
|
$ 534,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (TE) |
$ 210,488 |
|
$ 212,587 |
|
$ 225,092 |
|
$ 213,912 |
|
$ 192,334 |
|
$ 423,075 |
|
$ 365,891 |
Noninterest income |
67,349 |
|
56,050 |
|
48,348 |
|
65,324 |
|
83,841 |
|
123,399 |
|
170,752 |
Total revenue (TE) |
277,837 |
|
268,637 |
|
273,440 |
|
279,236 |
|
276,175 |
|
546,474 |
|
536,643 |
Adjustment items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on securities |
6 |
|
(6) |
|
(3) |
|
21 |
|
(248) |
|
— |
|
(221) |
(Gain) loss on sale of MSR |
— |
|
— |
|
(1,672) |
|
316 |
|
— |
|
— |
|
— |
Gain on BOLI proceeds |
— |
|
(486) |
|
— |
|
(55) |
|
— |
|
(486) |
|
— |
Servicing right impairment (recovery) |
— |
|
— |
|
— |
|
(1,332) |
|
(10,838) |
|
— |
|
(20,492) |
Adjusted total revenue (TE) |
$ 277,843 |
|
$ 268,145 |
|
$ 271,765 |
|
$ 278,186 |
|
$ 265,089 |
|
$ 545,988 |
|
$ 515,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
53.60 % |
|
52.08 % |
|
49.57 % |
|
50.15 % |
|
51.67 % |
|
52.85 % |
|
53.49 % |
Adjusted efficiency ratio (TE) |
53.41 % |
|
51.99 % |
|
49.61 % |
|
50.12 % |
|
53.66 % |
|
52.72 % |
|
55.26 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Total shareholders' equity |
$ 3,284,630 |
|
$ 3,253,195 |
|
$ 3,197,400 |
|
$ 3,119,070 |
|
$ 3,073,376 |
|
$ 3,284,630 |
|
$ 3,073,376 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
1,015,646 |
|
1,015,646 |
|
1,015,646 |
|
1,023,071 |
|
1,023,056 |
|
1,015,646 |
|
1,023,056 |
Other intangibles, net |
96,800 |
|
101,488 |
|
106,194 |
|
110,903 |
|
115,613 |
|
96,800 |
|
115,613 |
Total tangible shareholders' equity |
$ 2,172,184 |
|
$ 2,136,061 |
|
$ 2,075,560 |
|
$ 1,985,096 |
|
$ 1,934,707 |
|
$ 2,172,184 |
|
$ 1,934,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end number of shares |
69,139,783 |
|
69,373,863 |
|
69,369,050 |
|
69,352,709 |
|
69,360,461 |
|
69,139,783 |
|
69,360,461 |
Book value per share (period end) |
$ 47.51 |
|
$ 46.89 |
|
$ 46.09 |
|
$ 44.97 |
|
$ 44.31 |
|
$ 47.51 |
|
$ 44.31 |
Tangible book value per share (period end) |
$ 31.42 |
|
$ 30.79 |
|
$ 29.92 |
|
$ 28.62 |
|
$ 27.89 |
|
$ 31.42 |
|
$ 27.89 |
AMERIS BANCORP AND SUBSIDIARIES |
|||||||||||||
FINANCIAL TABLES |
|||||||||||||
|
|
|
|
|
|||||||||
Non-GAAP Reconciliations (continued) |
|
|
|||||||||||
|
|
|
|||||||||||
Tangible Common Equity to Tangible Assets |
Table 9D |
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Jun |
|
Jun |
|
Jun |
(dollars in thousands except per share data) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Total shareholders' equity |
$ 3,284,630 |
|
$ 3,253,195 |
|
$ 3,197,400 |
|
$ 3,119,070 |
|
$ 3,073,376 |
|
$ 3,284,630 |
|
$ 3,073,376 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
1,015,646 |
|
1,015,646 |
|
1,015,646 |
|
1,023,071 |
|
1,023,056 |
|
1,015,646 |
|
1,023,056 |
Other intangibles, net |
96,800 |
|
101,488 |
|
106,194 |
|
110,903 |
|
115,613 |
|
96,800 |
|
115,613 |
Total tangible shareholders' equity |
$ 2,172,184 |
|
$ 2,136,061 |
|
$ 2,075,560 |
|
$ 1,985,096 |
|
$ 1,934,707 |
|
$ 2,172,184 |
|
$ 1,934,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 25,800,618 |
|
$ 26,088,384 |
|
$ 25,053,286 |
|
$ 23,813,657 |
|
$ 23,687,470 |
|
$ 25,800,618 |
|
$ 23,687,470 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
1,015,646 |
|
1,015,646 |
|
1,015,646 |
|
1,023,071 |
|
1,023,056 |
|
1,015,646 |
|
1,023,056 |
Other intangibles, net |
96,800 |
|
101,488 |
|
106,194 |
|
110,903 |
|
115,613 |
|
96,800 |
|
115,613 |
Total tangible assets |
$ 24,688,172 |
|
$ 24,971,250 |
|
$ 23,931,446 |
|
$ 22,679,683 |
|
$ 22,548,801 |
|
$ 24,688,172 |
|
$ 22,548,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to Assets |
12.73 % |
|
12.47 % |
|
12.76 % |
|
13.10 % |
|
12.97 % |
|
12.73 % |
|
12.97 % |
Tangible Common Equity to Tangible Assets |
8.80 % |
|
8.55 % |
|
8.67 % |
|
8.75 % |
|
8.58 % |
|
8.80 % |
|
8.58 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPNR ROA |
Table 9E |
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Jun |
|
Jun |
|
Jun |
(dollars in thousands except per share data) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ 62,635 |
|
$ 60,421 |
|
$ 82,221 |
|
$ 92,555 |
|
$ 90,066 |
|
$ 123,056 |
|
$ 171,764 |
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
20,335 |
|
18,131 |
|
22,313 |
|
28,520 |
|
28,019 |
|
38,466 |
|
55,725 |
Provision for credit losses |
45,516 |
|
49,729 |
|
32,890 |
|
17,652 |
|
14,924 |
|
95,245 |
|
21,155 |
PPNR |
$ 128,486 |
|
$ 128,281 |
|
$ 137,424 |
|
$ 138,727 |
|
$ 133,009 |
|
$ 256,767 |
|
$ 248,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
$ 25,631,846 |
|
$ 25,115,927 |
|
$ 24,354,979 |
|
$ 23,598,465 |
|
$ 23,405,201 |
|
$ 25,375,312 |
|
$ 23,340,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets (ROA) |
0.98 % |
|
0.98 % |
|
1.34 % |
|
1.56 % |
|
1.54 % |
|
0.98 % |
|
1.48 % |
PPNR ROA |
2.01 % |
|
2.07 % |
|
2.24 % |
|
2.33 % |
|
2.28 % |
|
2.04 % |
|
2.15 % |
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
Banking Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 171,441 |
|
$ 175,328 |
|
$ 185,909 |
|
$ 174,507 |
|
$ 152,122 |
|
$ 346,769 |
|
$ 285,867 |
Provision for credit losses |
40,831 |
|
47,140 |
|
35,946 |
|
10,551 |
|
10,175 |
|
87,971 |
|
15,401 |
Noninterest income |
24,652 |
|
23,898 |
|
23,448 |
|
23,269 |
|
23,469 |
|
48,550 |
|
44,833 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
55,196 |
|
56,442 |
|
52,296 |
|
48,599 |
|
46,733 |
|
111,638 |
|
95,928 |
Occupancy and equipment expenses |
11,175 |
|
11,606 |
|
11,482 |
|
11,357 |
|
11,168 |
|
22,781 |
|
22,242 |
Data processing and telecommunications expenses |
11,898 |
|
11,797 |
|
11,085 |
|
10,779 |
|
10,863 |
|
23,695 |
|
22,093 |
Other noninterest expenses |
27,643 |
|
19,023 |
|
21,811 |
|
22,974 |
|
21,123 |
|
46,666 |
|
41,168 |
Total noninterest expense |
105,912 |
|
98,868 |
|
96,674 |
|
93,709 |
|
89,887 |
|
204,780 |
|
181,431 |
Income before income tax expense |
49,350 |
|
53,218 |
|
76,737 |
|
93,516 |
|
75,529 |
|
102,568 |
|
133,868 |
Income tax expense |
13,312 |
|
12,848 |
|
16,545 |
|
22,706 |
|
19,120 |
|
26,160 |
|
36,116 |
Net income |
$ 36,038 |
|
$ 40,370 |
|
$ 60,192 |
|
$ 70,810 |
|
$ 56,409 |
|
$ 76,408 |
|
$ 97,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Mortgage Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 21,417 |
|
$ 20,027 |
|
$ 19,837 |
|
$ 19,283 |
|
$ 20,779 |
|
$ 41,444 |
|
$ 40,074 |
Provision for credit losses |
3,278 |
|
2,853 |
|
(2,778) |
|
9,043 |
|
4,499 |
|
6,131 |
|
6,086 |
Noninterest income |
39,808 |
|
31,058 |
|
24,011 |
|
38,584 |
|
57,795 |
|
70,866 |
|
119,444 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
21,930 |
|
20,160 |
|
19,164 |
|
25,813 |
|
31,219 |
|
42,090 |
|
62,833 |
Occupancy and equipment expenses |
1,224 |
|
1,283 |
|
1,242 |
|
1,460 |
|
1,406 |
|
2,507 |
|
2,877 |
Data processing and telecommunications expenses |
1,397 |
|
1,069 |
|
1,203 |
|
1,082 |
|
1,123 |
|
2,466 |
|
2,295 |
Other noninterest expenses |
11,859 |
|
11,747 |
|
11,126 |
|
11,641 |
|
12,812 |
|
23,606 |
|
25,457 |
Total noninterest expense |
36,410 |
|
34,259 |
|
32,735 |
|
39,996 |
|
46,560 |
|
70,669 |
|
93,462 |
Income before income tax expense |
21,537 |
|
13,973 |
|
13,891 |
|
8,828 |
|
27,515 |
|
35,510 |
|
59,970 |
Income tax expense |
4,523 |
|
2,934 |
|
2,916 |
|
1,854 |
|
5,779 |
|
7,457 |
|
12,594 |
Net income |
$ 17,014 |
|
$ 11,039 |
|
$ 10,975 |
|
$ 6,974 |
|
$ 21,736 |
|
$ 28,053 |
|
$ 47,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse Lending Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 6,166 |
|
$ 5,700 |
|
$ 6,601 |
|
$ 6,979 |
|
$ 6,700 |
|
$ 11,866 |
|
$ 13,147 |
Provision for credit losses |
411 |
|
(194) |
|
117 |
|
(1,836) |
|
867 |
|
217 |
|
645 |
Noninterest income |
1,404 |
|
480 |
|
579 |
|
1,516 |
|
1,041 |
|
1,884 |
|
2,442 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
772 |
|
802 |
|
427 |
|
1,055 |
|
208 |
|
1,574 |
|
491 |
Occupancy and equipment expenses |
— |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
2 |
Data processing and telecommunications expenses |
44 |
|
46 |
|
49 |
|
43 |
|
48 |
|
90 |
|
95 |
Other noninterest expenses |
223 |
|
202 |
|
191 |
|
209 |
|
212 |
|
425 |
|
430 |
Total noninterest expense |
1,039 |
|
1,051 |
|
668 |
|
1,308 |
|
469 |
|
2,090 |
|
1,018 |
Income before income tax expense |
6,120 |
|
5,323 |
|
6,395 |
|
9,023 |
|
6,405 |
|
11,443 |
|
13,926 |
Income tax expense |
1,285 |
|
1,118 |
|
1,342 |
|
1,895 |
|
1,346 |
|
2,403 |
|
2,925 |
Net income |
$ 4,835 |
|
$ 4,205 |
|
$ 5,053 |
|
$ 7,128 |
|
$ 5,059 |
|
$ 9,040 |
|
$ 11,001 |
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
SBA Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 2,331 |
|
$ 1,957 |
|
$ 2,491 |
|
$ 2,424 |
|
$ 3,798 |
|
$ 4,288 |
|
$ 9,809 |
Provision for credit losses |
424 |
|
(104) |
|
265 |
|
52 |
|
(523) |
|
320 |
|
(666) |
Noninterest income |
1,476 |
|
605 |
|
302 |
|
1,946 |
|
1,526 |
|
2,081 |
|
4,017 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
1,316 |
|
1,309 |
|
1,306 |
|
1,412 |
|
1,316 |
|
2,625 |
|
2,587 |
Occupancy and equipment expenses |
40 |
|
37 |
|
98 |
|
82 |
|
81 |
|
77 |
|
180 |
Data processing and telecommunications expenses |
46 |
|
37 |
|
30 |
|
29 |
|
29 |
|
83 |
|
57 |
Other noninterest expenses |
333 |
|
422 |
|
368 |
|
100 |
|
539 |
|
755 |
|
919 |
Total noninterest expense |
1,735 |
|
1,805 |
|
1,802 |
|
1,623 |
|
1,965 |
|
3,540 |
|
3,743 |
Income before income tax expense |
1,648 |
|
861 |
|
726 |
|
2,695 |
|
3,882 |
|
2,509 |
|
10,749 |
Income tax expense |
346 |
|
181 |
|
153 |
|
566 |
|
815 |
|
527 |
|
2,257 |
Net income |
$ 1,302 |
|
$ 680 |
|
$ 573 |
|
$ 2,129 |
|
$ 3,067 |
|
$ 1,982 |
|
$ 8,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium Finance Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 8,185 |
|
$ 8,640 |
|
$ 9,299 |
|
$ 9,788 |
|
$ 7,965 |
|
$ 16,825 |
|
$ 15,011 |
Provision for credit losses |
572 |
|
34 |
|
(660) |
|
(158) |
|
(94) |
|
606 |
|
(311) |
Noninterest income |
9 |
|
9 |
|
8 |
|
9 |
|
10 |
|
18 |
|
16 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
2,122 |
|
2,197 |
|
2,003 |
|
1,818 |
|
2,069 |
|
4,319 |
|
3,987 |
Occupancy and equipment expenses |
83 |
|
59 |
|
82 |
|
83 |
|
90 |
|
142 |
|
172 |
Data processing and telecommunications expenses |
66 |
|
85 |
|
119 |
|
82 |
|
92 |
|
151 |
|
187 |
Other noninterest expenses |
1,036 |
|
1,097 |
|
978 |
|
959 |
|
1,064 |
|
2,133 |
|
2,016 |
Total noninterest expense |
3,307 |
|
3,438 |
|
3,182 |
|
2,942 |
|
3,315 |
|
6,745 |
|
6,362 |
Income before income tax expense |
4,315 |
|
5,177 |
|
6,785 |
|
7,013 |
|
4,754 |
|
9,492 |
|
8,976 |
Income tax expense |
869 |
|
1,050 |
|
1,357 |
|
1,499 |
|
959 |
|
1,919 |
|
1,833 |
Net income |
$ 3,446 |
|
$ 4,127 |
|
$ 5,428 |
|
$ 5,514 |
|
$ 3,795 |
|
$ 7,573 |
|
$ 7,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ 209,540 |
|
$ 211,652 |
|
$ 224,137 |
|
$ 212,981 |
|
$ 191,364 |
|
$ 421,192 |
|
$ 363,908 |
Provision for credit losses |
45,516 |
|
49,729 |
|
32,890 |
|
17,652 |
|
14,924 |
|
95,245 |
|
21,155 |
Noninterest income |
67,349 |
|
56,050 |
|
48,348 |
|
65,324 |
|
83,841 |
|
123,399 |
|
170,752 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
81,336 |
|
80,910 |
|
75,196 |
|
78,697 |
|
81,545 |
|
162,246 |
|
165,826 |
Occupancy and equipment expenses |
12,522 |
|
12,986 |
|
12,905 |
|
12,983 |
|
12,746 |
|
25,508 |
|
25,473 |
Data processing and telecommunications expenses |
13,451 |
|
13,034 |
|
12,486 |
|
12,015 |
|
12,155 |
|
26,485 |
|
24,727 |
Other noninterest expenses |
41,094 |
|
32,491 |
|
34,474 |
|
35,883 |
|
35,750 |
|
73,585 |
|
69,990 |
Total noninterest expense |
148,403 |
|
139,421 |
|
135,061 |
|
139,578 |
|
142,196 |
|
287,824 |
|
286,016 |
Income before income tax expense |
82,970 |
|
78,552 |
|
104,534 |
|
121,075 |
|
118,085 |
|
161,522 |
|
227,489 |
Income tax expense |
20,335 |
|
18,131 |
|
22,313 |
|
28,520 |
|
28,019 |
|
38,466 |
|
55,725 |
Net income |
$ 62,635 |
|
$ 60,421 |
|
$ 82,221 |
|
$ 92,555 |
|
$ 90,066 |
|
$ 123,056 |
|
$ 171,764 |
CONTACT: Nicole S. Stokes, Chief Financial Officer, (404) 240-1514
2nd Quarter 2023 Results Investor Presentation Exhibit 99.2
Cautionary Statements This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this presentation are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, 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, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; 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, 2022 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 Top of peer financial results with culture of discipline – credit, liquidity, expense control, capital Proven liquidity management supported by strong, stable deposit base Proven stewards of shareholder value – TBV has grown 13% 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 many of the fastest growing regions in nation Stable core deposit base 65% of our franchise is in 5 MSAs, which grew 2x the national average over the last 15 years Charlotte MSA Tampa MSA Orlando MSA
Ameris Profile Focus on Shareholder Value 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
2nd Quarter 2023 Financial Results
2Q 2023 Operating Highlights Net income of $62.6 million, or $0.91 per diluted share PPNR ROA(1) of 2.01% for 2Q23 Adjusted efficiency ratio(1) of 53.41% TCE ratio(1) of 8.80% Nonperforming assets, excluding government-guaranteed loans, as a percentage of total assets improved three basis points to 0.30% Increase in allowance for credit losses to 1.33% of total loans due to economic model, particularly forecasted future declines in commercial real estate pricing Net interest margin of 3.60%, as expected due to deposit pricing pressure Organic loan growth of $473.9 million, or 9.5% annualized Total deposit growth of $545.7 million, or 11.0% annualized Reduction in FHLB advances of $875.0 million, or 41.7%, during the quarter Repurchases of $8.0 million under our share repurchase plan at an average cost of $30.18 per share 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
2023 YTD Operating Highlights Net income of $123.1 million, or $1.78 per diluted share PPNR ROA(1) of 2.04% Growth in tangible book value(1) of $1.50 per share, or 10.1% annualized, to $31.42 Adjusted efficiency ratio(1) of 52.72% Net interest margin of 3.68% Organic loan growth of $616.5 million, or 6.2% annualized Total deposit growth of $980.4 million, or 10.2% annualized Reduction in FHLB Advances of $275.1 million Redemption of $75 million in floating rate (was 8.39%) subordinated notes due 2027 in 1Q23 Repurchase (at a discount) and redemption of $9.5 million aggregate principal of 4.25% fixed-to-floating subordinated notes due 2029, with existing liquidity, in 2Q23 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix
Financial Highlights 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix 2 – Growth rates are annualized for the applicable periods 3 – Excludes serviced GNMA-guaranteed mortgage loans (dollars in thousands, except per share data) Quarter to Date Results Year to Date Results 2Q23 1Q23 Change 2Q22 Change 2023 2022 Change Net Interest Income $ 209,540 $ 211,652 -1% $ 191,364 9% $ 421,192 $ 363,908 16% Noninterest Income $ 67,349 $ 56,050 20% $ 83,841 -20% $ 123,399 $ 170,752 -28% Provision for Credit Losses $ 45,516 $ 49,729 -8% $ 14,924 205% $ 95,245 $ 21,155 350% Noninterest Expense $ 148,403 $ 139,421 6% $ 142,196 4% $ 287,824 $ 286,016 1% Net Income $ 62,635 $ 60,421 4% $ 90,066 -30% $ 123,056 $ 171,764 -28% Net Income Per Diluted Share $ 0.91 $ 0.87 5% $ 1.30 -30% $ 1.78 $ 2.47 -28% Return on Average Assets 0.98% 0.98% 0% 1.54% -36% 0.98% 1.48% -34% Return on Average Equity 7.63% 7.54% 1% 11.87% -36% 7.58% 11.47% -34% Efficiency Ratio 53.60% 52.08% 3% 51.67% 4% 52.85% 53.49% -1% Net Interest Margin 3.60% 3.76% -4% 3.66% -2% 3.68% 3.51% 5% Adjusted Net Income(1) $ 62,635 $ 59,935 5% $ 81,473 -23% $ 122,570 $ 156,512 -22% Adjusted Net Income Per Diluted Share(1) $ 0.91 $ 0.86 6% $ 1.18 -23% $ 1.77 $ 2.25 -21% Adjusted Return on Assets(1) 0.98% 0.97% 1% 1.40% -30% 0.97% 1.35% -28% Adjusted Return on TCE(1) 11.53% 11.41% 1% 17.18% -33% 11.47% 16.79% -32% Adjusted Efficiency Ratio(1) 53.41% 51.99% 3% 53.66% 0% 52.72% 55.26% -5% Organic Loan Growth $ 473,888 $ 142,618 232% $ 1,417,221 -67% $ 616,506 $ 1,686,764 -63% Organic Loan Growth Rate(2) 9.48% 2.87% 230% 35.11% -73% 6.21% 21.25% -71% Portfolio NPAs/Assets(3) 0.30% 0.33% -9% 0.35% -14% 0.30% 0.35% -14% Total NPAs/Assets 0.57% 0.61% -8% 0.56% 1% 0.57% 0.56% 1%
Diversified Revenue Stream Strong revenue base of net interest income from core banking division Additional revenue provided by our diversified lines of business Mortgage Banking Activity Retail mortgage activity has continued to stabilize back to pre-pandemic levels Mortgage banking activity, exclusive of MSR valuation, was 15% of total revenue in 2Q23, down from 17% a year ago Purchase business was near historic levels at 85% in 2Q23 due to strong core relationships with builders and realtors Approximately 84% of the net interest income included in mortgage revenue is related to portfolio loans generated from the mortgage division Gain on sale margin continues to improve from historic low in 4Q22 Other Noninterest Income Other Noninterest Income has been stable contributor to total revenue Noninterest Income from the equipment finance group was approximately $5.4 million in 2Q23 Other Noninterest Income also includes BOLI income and gains on sale of SBA loans Gain on debt redemption of $1.0 million
Strong Net Interest Margin Banking Division Loan Production Details Period Fixed Rate Variable Rate Total 2Q23 $ 341.7 9.87% $ 202.5 8.47% $554.3 9.35% 1Q23 $ 339.8 9.40% $ 223.2 7.68% $563.0 8.72% 4Q22 $ 399.9 8.16% $ 213.0 7.46% $612.9 7.92% Above peer group margin, at 3.60% Net interest income (TE) of $210.5 million in 2Q23, compared with $212.6 million in 1Q23: Interest income (TE) increased $26.2 million Interest expense increased $28.3 million Average earning assets grew by $551.7 million Total deposit costs up 63bp from 1Q23 reflecting shift in deposit mix driven by customer behavior in rising rate environment Noninterest bearing deposits remain above historic levels and were 32.8% of total deposits at quarter end Average FHLB advances down $560.0 million during the quarter Spread Income and Margin 2Q23 Margin Attribution 4.00% 3.90% 3.80% 3.70% 3.60% 3.50% 3.40%.3.30% 3.20%.3.10%.3.00% 1Q23 margin Deposit mix Beta catch-up Asset sensitivity 2Q23 margin 3.76% -0.19% -0.07% 0.10% 3.60%
Disciplined Expense Control Adjusted Operating Expenses(1) and Efficiency Ratio(1) OPEX Highlights Management continues to deliver high performing operating efficiency Total adjusted operating expenses increased $9.0 million in 2Q23 compared with 1Q23: Increase of $7.0 million in 2Q23 banking division operating expenses primarily due to: $3.1 million decrease in deferred loan origination costs $3.1 million in increased fraud/forgery and litigation resolution expenses Net Increase of $1.9 million in 2Q23 lines of business operating expenses due to variable compensation related to production increases Adjusted efficiency ratio of 53.41% in 2Q23, compared with 53.66% in 2Q22 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
Balance Sheet Trends Asset sensitivity is moderating as the FOMC nears the end of its tightening cycle: -1.1% asset sensitivity in -100bps -0.5% asset sensitivity in -50bps 0.5% asset sensitivity in +50bps 0.9% asset sensitivity in +100bps Approximately $7.3 billion, or 35%, of loans are variable rate Approximately $10.2 billion of total loans reprice within one year through either maturities or floating rate indices Cumulative weighted-average beta for all non-maturity deposits through this cycle has been 27% Interest Rate Sensitivity Earning Assets Highlights Available-for-sale (AFS) securities represent less than 6% of total assets, limiting potential tangible book value dilution from rising interest rates Unrealized loss of AFS portfolio was $64 million at June 30, 2023, representing approximately 4% of book value No transfers to held-to-maturity (HTM) portfolio – all securities classified as HTM were previously purchased for CRA purposes Capital Highlights Ameris is well capitalized with minimal unrealized losses in the investment portfolio Earnings expected to add between 25 - 35 basis points to capital each quarter assuming flat balance sheet Repurchase plan announced in October 2022 of $100 million with approximately $86.5 million remaining at the end of 2Q23
Proven Liquidity Plan At June 30, 2023 $ in millions Total Available Amount Used Net Availability Internal Sources Cash $ 1,319 $ - $ 1,319 Unpledged Securities 691 - 691 External Sources FHLB 5,424 2,123 3,301 FRB Discount Window 2,634 - 2,634 Brokered Deposits 2,830 1,580 1,250 Other 127 - 127 Total Liquidity $ 13,025 $ 3,703 $9,322 Diverse sources of liquidity available to the Company Minimal unrealized losses on unpledged securities due to disciplined investment strategy Majority of funding used is short-term to manage interest rate profile and provide flexibility as liquidity needs fluctuate Have not accessed Bank Term Funding Program Available liquidity sources provide approximately 112% coverage for uninsured deposits and approximately 158% coverage for non-collateralized uninsured deposits No single depositor represents more than 1% of total deposits Uninsured and uncollateralized deposits represent 28.8% of total deposits Sources of Liquidity Solid Liquidity Plan
Strong Core Deposit Base Deposit Highlights Total deposits increased $545.6 million in 2Q23 compared with 1Q23 Noninterest-bearing deposits decreased $591.0 million, or 8.1% MMDAs increased $502.7 million, or 10.5% CDs increased $626.4 million, or 21.2% Exclusive of increase in brokered CDs, total deposits increased $187.8 million Total interest-bearing deposit costs increased to 2.64% in 2Q23, compared with 1.82% in 1Q23, reflecting deposit rate increases and the shift in mix resulting from consumer behavior as interest rates rise Deposit Type Balance (in 000s) Count Average per account (in 000’s) NIB 6,706,897 296,004 22.7 NOW 3,860,772 45,539 84.8 MMDA 5,284,136 30,601 172.7 Savings 1,005,514 66,617 15.1 CD 3,585,806 40,414 88.7 Total 20,443,125 479,175 42.7 Deposits by Product Type
Capital and TBV Proven Stewards of Shareholder Value Management focused on long term growth in TBV(1), such that over the past five years TBV has grown by 13% annualized TBV increased $0.63 per share in 2Q23: $0.75 from retained earnings ($0.22) from impact of OCI $0.10 from all other items including stock compensation and share repurchases 1 – Considered Non-GAAP measures – See reconciliation of GAAP to Non-GAAP measures in Appendix CAGR 13% CAGR 13% Equipment Finance Acquisition LION Acquisition
Loan Diversification and Credit Quality
Diversified Loan Portfolio 2Q23 Loan Portfolio Loan portfolio is well diversified across loan types and geographies CRE and C&D concentrations were 282% and 80%, respectively, at 2Q23 Non-owner occupied office loans totaled $1.4 billion at 2Q23, or 6.9% of total loans Continued strong asset quality metrics during 2Q23 as evidenced by a lower volume of Non-Performing and Watch List Loans Reserve increased to 1.33% of total loans during 2Q23 to account for forecast economic conditions Limited exposure in SNCs and syndications Increased diligence by credit staff on stress testing given the current economic environment, focused on maturing and floating-rate loans, particularly in C&D and investor CRE loans Portfolio Highlights Total Loans $20.5 Billion
Loan Production vs Growth 2Q23 loan production was spread across many product lines, continuing to contribute to portfolio diversification Overall, 2Q23 production exhibited a 16% increase from 1Q23. Loan growth in 2Q23 was primarily driven by higher seasonal volumes of new loans in Mortgage Warehouse *Loan production reflects committed balance total, excluding Mortgage Warehouse production; loan portfolio growth reflects quarter-over-quarter loan ending balances. 4Q22 loan growth includes acquired loans of $472.3 million. (in millions)
Loan Balance Changes 2Q23 Loan Balance Changes 2Q23 loan growth was varied across several loan types and totaled $473.9 million, or 9.5% annualized Growth in Mortgage Warehouse loans was primarily seasonal in nature as home sales generally increase during spring / summer C&D growth was driven by advances on existing commercial loans (in millions)
Allowance for Credit Losses Increase in reserve during 2Q23 due to economic forecasts, particularly projected negative CRE price indices The ACL on loans totaled $272.1 million at 2Q23, a net increase of $29.4 million, or 12.1% from 1Q23 The reserve for unfunded commitments totaled $54.6 million, an increase of $1.9 million, or 3.6% During 2Q23, recorded a provision expense of $45.5 million The ACL on loans equated to 1.33% of total loans at 2Q23, compared with 1.21% at 1Q23 The total ACL on loans + unfunded commitments was $326.7 million, or 1.24% 2Q23 CECL Reserve Reserve Summary (in millions)
Allowance for Credit Losses Results were primarily driven by negative forecasts for CRE and home prices over the next four quarters The ALLL for the two CRE categories (RE – C&D, RE – CRE) exhibited the highest increase from 1Q23 of $20.7 million The blended ALLL % for those two categories was 1.50% at 2Q23 The negative forecast for home prices resulted in a $3.1 million increase in the ALLL for residential mortgage loans (RE – RES) 2Q23 CECL Reserve by Loan Type Reserve Summary Reserve Methodology Moody’s June 2023 forecast model provided material inputs into ACL Primary model drivers included: US and Regional Unemployment rates US GDP US and Regional Home Price Indices US and State-Level CRE Price Index for our five-state footprint Primary weighting utilized Baseline scenario
NPA / Charge-Off Trend Net of GNMA-guaranteed mortgage loans, NPAs declined as a percentage of total assets to 0.30% at 2Q23 vs 0.33% at 1Q23 Total NPAs decreased $14.0 million, to $146.3 million, primarily as a result of: $8.9 million decrease in 90+ past due GNMA-guaranteed and portfolio mortgage loans $3.0 million decrease in 90+ past due premium finance loans Net charge-offs totaled $14.2 million, which equated to an annualized NCO ratio of 0.28% Included in 2Q23 charge-offs were two items related to acquired portfolios: $2.3 million of pre-acquisition, non-performing loans in the Equipment Finance division that were 100% reserved at the acquisition date $3.2 million charge-down on the transfer of an office loan into OREO Excluding those items, net charge-offs totaled $8.8 million, or 0.17% annualized Non-Performing Assets (NPAs) Net Charge-Offs ($ in millions)
Problem Loan Trends Total classified loans, excluding GNMA-guaranteed mortgage loans, decreased $36.1 million, primarily the result of pay-offs and other collection activities Total criticized loans (special mention + classified), excluding GNMA-guaranteed mortgage loans, increased $18.6 million during 2Q23 as a result of the downgrade of one, larger loan secured by an assisted living facility The largest component of the Watch List was Mortgage Warehouse loans, totaling $82.6 million, which are secured by individual mortgage loans or MSRs Nonperforming loans, excluding GNMA-guaranteed mortgage loans, decreased $13.4 million to $70.4 million, primarily the result of the transfer into OREO of an office loan that has been in collection for the past year Highlights (in millions) Note: Criticized, Classified and Nonperforming loan totals exclude GNMA-guaranteed loans
Investor CRE Loans Stratification of Investor CRE Portfolio Non-Owner Occupied CRE Portfolio is well diversified Over 80% of CRE loans are located in MSAs in the Bank’s five-state footprint, which exhibit population growth forecasts exceeding the national average Overall past dues for investor CRE loans were 0.16% and NPAs 0.01%
Office Portfolio 85% of non-owner occupied office loans are located in MSAs in the Bank’s footprint; overall, the average vacancy was < 10% The average maturity of fixed-rate loans is ~3.8 years; only 17% of loans mature through 2024 The portion of the ACL apportioned to non-owner occupied office loans was 1.41% * Results based on loans > $1 million, or 95% of total loans Non-owner occupied office loans totaled $1.4 billion of outstanding balances and $1.7 billion of total committed exposure at 2Q23 As a percentage of total loans outstanding and committed exposure, non-owner occupied office loans were 6.9% and 6.4%, respectively 68% are either Class A, an Essential-Use Facility or Medical Office Building (MOB) Highlights 24
Commercial Real Estate Production 2Q23 Commercial Real Estate Production Summary: 2Q23 Residential Construction Production Summary: 2Q23 production of C&D and CRE loans - $543.0 million in total committed exposure Residential real estate construction: Seasonal increase in spring / summer Spec/model to pre-sold ratio of 0.8:1 Investor CRE 2Q23 production: Production totaled $231.5 million Weighted average 1.59:1 debt service coverage Weighted average 53.8% loan/value Summary of CRE production by collateral state: Highlights
Equipment Finance Portfolio Total loans were $1.2 billion, or 5.7% of Ameris’s total portfolio The overall average loan size was $47.3 thousand Loan production totaled $168.0 million in 2Q23. Average FICO score was 734 30-89 day accruing past due loans were 1.03% of total loans; non-performing loans continue to decline and totaled 0.65% of total loans A portion of pre-acquisition, fully reserved non-performing loans, totaling $2.3 million, were charged-off during 2Q23 The portion of the ACL attributed to the Equipment Finance division totaled $40.0 million, or 3.40% of loans 2Q23 Portfolio Highlights (in millions)
Appendix
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures
Ameris Bancorp Press Release & Financial Highlights June 30, 2023