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AMERIS BANCORP ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2023

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Highlights of Ameris's results for the first quarter of 2023 include the following:

  • Net income of $60.4 million, or $0.87 per diluted share
  • Pre-tax, pre-provision net revenue (PPNR) ROA(1) of 2.07%
  • Growth in tangible book value(1) of $0.87 per share, or 11.6% annualized, to $30.79 at March 31, 2023
  • Increased the allowance for credit losses to 1.21% of loans, from 1.04% at December 31, 2022, due to forecasted economic conditions
  • Adjusted efficiency ratio(1) of 51.99%, compared with 56.95% in the first quarter of last year
  • Nonperforming assets, excluding government-guaranteed loans, as a percentage of total assets improved one basis point to 0.33% at March 31, 2023, compared with 0.34% at December 31, 2022.
  • Net interest margin of 3.76% for the first quarter of 2023
  • Organic growth in loans of $142.6 million, or 2.9% annualized
  • Growth in total deposits of $434.7 million or 8.9% annualized
  • TCE ratio(1) of 8.55%, compared with 8.67% at December 31, 2022 and 8.32% one year ago
  • Redeemed $75 million floating rate (was 8.39%) subordinated notes due 2027 in March

ATLANTA, April 27, 2023 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $60.4 million, or $0.87 per diluted share, for the quarter ended March 31, 2023, compared with $81.7 million, or $1.17 per diluted share, for the quarter ended March 31, 2022. Included in the Company's first quarter results was a $49.7 million provision for credit losses related to the updated economic forecast, compared with $6.2 million in the first quarter of last year.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "While the recent events in the banking industry were unexpected, they have certainly given us an opportunity to highlight the importance of the strength and diversity reflected in our balance sheet.  Not only do we have a diversified loan portfolio in product types, lines of business and geography, we also have a strong, stable core funding base that has taken years to build.  Our focus on core banking and core fundamentals has never been more important.  We have been good stewards of our capital, growing tangible book value by over 11% annualized, while also prudently increasing our allowance for loan losses.  The increase in the allowance this quarter was driven by the economic forecast and was not due to any underlying credit issue.  We believe the strength of our balance sheet and continued capital generation have us well positioned for the future."

Net Interest Income and Net Interest Margin

Net interest income on a tax-equivalent basis (TE) was $212.6 million in the first quarter of 2023, a decrease of $12.5 million, or 5.6%, from last quarter and an increase of $39.0 million, or 22.5%, compared with the first quarter of 2022.  The Company's net interest margin was 3.76% for the first quarter of 2023, down from 4.03% reported for the fourth quarter of 2022 and up from 3.35% reported for the first 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 34 basis points during the quarter to 5.25%, compared with 4.91% in the fourth quarter of 2022, and increased 169 basis points from 3.56% in the first quarter of 2022.  Yields on loans increased to 5.44% during the first quarter of 2023, compared with 5.07% for the fourth quarter of 2022 and 4.37% for the first quarter of 2022.

Loan production in the banking division during the first quarter of 2023 was $563.0 million, with weighted average yields of 8.72%, compared with $612.9 million and 7.92%, respectively, in the fourth quarter of 2022 and $805.5 million and 5.17%, respectively, in the first quarter of 2022.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $3.4 billion during the first quarter of 2023, with weighted average yields of 6.57%, compared with $3.6 billion and 6.06%, respectively, during the fourth quarter of 2022 and $4.7 billion and 3.63%, respectively, during the first quarter of 2022.   

The Company's total cost of funds was 1.59% in the first quarter of 2023, an increase of 65 basis points compared with the fourth quarter of 2022.  Deposit costs increased 45 basis points during the first quarter of 2023 to 1.13%, compared with 0.68% in the fourth quarter of 2022.  Costs of interest-bearing deposits increased during the quarter from 1.17% in the fourth quarter of 2022 to 1.82% in the first quarter of 2023, reflecting deposit pricing adjustments made during the fourth quarter of 2022 and first quarter of 2023.

Noninterest Income

Noninterest income increased $7.7 million, or 15.9%, in the first quarter of 2023 to $56.1 million, compared with $48.3 million for the fourth quarter of 2022, primarily as a result of increased mortgage banking activity, which increased by $8.5 million, or 37.4%, to $31.4 million in the first quarter of 2023, compared with $22.9 million for the fourth quarter of 2022.  Gain on sale spreads increased to 1.96% in the first quarter of 2023 from 1.26% for the fourth quarter of 2022. Total production in the retail mortgage division was essentially flat at $946.4 million in the first quarter of 2023, compared with $947.3 million for the fourth quarter of 2022. The retail mortgage open pipeline was $725.9 million at the end of the first quarter of 2023, compared with $507.1 million at December 31, 2022

Noninterest Expense

Noninterest expense increased $4.4 million, or 3.2%, to $139.4 million during the first quarter of 2023, compared with $135.1 million for the fourth quarter of 2022.  During the fourth quarter of 2022, the Company recorded merger and conversion charges of $235,000, with no such charges recorded during the first quarter of 2023.  Excluding those charges, adjusted expenses(1) increased approximately $4.6 million, or 3.4%, to $139.4 million in the first quarter of 2023, from $134.8 million in the fourth quarter of 2022.  The increase in adjusted expenses(1) resulted from a $5.7 million increase in salaries and employee benefits primarily resulting from cyclical payroll tax and 401(k) expenses.  Management continues to focus on operating efficiency, and the adjusted efficiency ratio(1) increased to 51.99% in the first quarter of 2023, compared with 49.61% in the fourth quarter of 2022, primarily resulting from the cyclical compensation expenses.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2023 was 23.1%, compared with 21.3% in the fourth quarter of 2022.  The increased rate for the first quarter of 2023 was primarily a result of the impact of state rates applied to the Company's deferred tax asset during the fourth quarter of 2022.

Balance Sheet Trends

Total assets at March 31, 2023 were $26.09 billion, compared with $25.05 billion at December 31, 2022.  Cash and cash equivalents increased 80.7% to $2.02 billion at March 31, 2023, compared with $1.12 billion at December 31, 2022.  Debt securities available-for-sale were stable at $1.50 billion at both March 31, 2023 and December 31, 2022.  Loans, net of unearned income, increased $142.6 million, or 2.9% annualized, to $20.00 billion at March 31, 2023, compared with $19.86 billion at December 31, 2022. Loans held for sale increased slightly to $395.1 million at March 31, 2023 from $392.1 million at December 31, 2022.

Investment securities remained consistent at $1.63 billion, or 6.8% of earning assets at the end of the first quarter of 2023, compared with $1.63 billion, or 7.2% of earning assets at the end of the 2022.  This compares with $670.7 million, or 3.1% of earning assets at the end of the first quarter of 2022.  The Company did not deploy excess liquidity into the securities portfolio until after rates starting rising during 2022; therefore, the unrealized loss position on the Company's available-for-sale securities portfolio is less than 3% of the portfolio.

At March 31, 2023, total deposits amounted to $19.90 billion, compared with $19.46 billion at December 31, 2022.  At March 31, 2023, noninterest-bearing deposit accounts represented $7.30 billion, or 36.7% of total deposits, compared with $7.93 billion, or 40.7% of total deposits, at December 31, 2022.  Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $12.16 billion at March 31, 2023, compared with $12.80 billion at December 31, 2022.  These funds represented 61.1% of the Company's total deposits at March 31, 2023, compared with 65.7% at the end of 2022, which has enabled the Company to prudently maintain its stable deposit customer base, while also managing its cost of funds sensitivity in a rising rate environment.  During March, the Company redeemed its $75 million 5.75% Fixed-to-Floating Rate Subordinated Notes Due 2027 (which were at a current rate of 8.39%) with existing liquidity.

Shareholders' equity at March 31, 2023 totaled $3.25 billion, an increase of $55.8 million, or 1.7%, from December 31, 2022.  The increase in shareholders' equity was primarily the result of earnings of $60.4 million during the first quarter of 2023 and improvement in other comprehensive income of $10.9 million resulting from changes in interest rates on the Company's investment portfolio, partially offset by dividends declared and share repurchases.  Tangible book value per share(1) increased $0.87 per share, or 11.6% annualized, during the first quarter to $30.79 at March 31, 2023.  The Company recorded an improvement of $0.16 per share of tangible book value(1) this quarter from other comprehensive income related to the decrease in net unrealized losses on the securities portfolio.  Tangible common equity as a percentage of tangible assets was 8.55% at March 31, 2023, compared with 8.67% at the end of 2022.

Credit Quality

Credit quality remains strong in the Company.  During the first quarter of 2023, the Company recorded a provision for credit losses of $49.7 million, compared with a provision of $32.9 million in the fourth quarter of 2022.  The first quarter provision was primarily attributable to the updated economic forecast and loan growth of $142.6 million during the quarter.  Nonperforming assets as a percentage of total assets were stable at 0.61% during the quarter.  Approximately $75.0 million, or 46.8%, of the nonperforming assets at March 31, 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 one basis point to 0.33% at March 31, 2023, compared with 0.34% at December 31, 2022.   The net charge-off ratio was 22 basis points for the first quarter of 2023, compared with eight basis points in the fourth quarter of 2022 and nine basis points in the first quarter of 2022.

Conference Call

The Company will host a teleconference at 9:00 a.m. Eastern time on Friday, April 28, 2023, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-833-470-1428.  The conference call access code is 529368.  A replay of the call will be available one hour after the end of the conference call until May 12, 2023.  To listen to the replay, dial 1-866-813-9403.  The conference replay access code is 785707.  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 - 9D

 

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

FINANCIAL TABLES











Financial Highlights

Table 1


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

EARNINGS










Net income

$    60,421


$    82,221


$    92,555


$    90,066


$    81,698

Adjusted net income(1)

$    59,935


$    81,086


$    91,817


$    81,473


$    75,039











COMMON SHARE DATA










Earnings per share available to common shareholders










Basic

$        0.87


$        1.19


$        1.34


$        1.30


$        1.18

Diluted

$        0.87


$        1.18


$        1.34


$        1.30


$        1.17

Adjusted diluted EPS(1)

$        0.86


$        1.17


$        1.32


$        1.18


$        1.08

Cash dividends per share

$        0.15


$        0.15


$        0.15


$        0.15


$        0.15

Book value per share (period end)

$      46.89


$      46.09


$      44.97


$      44.31


$      43.31

Tangible book value per share (period end)(1)

$      30.79


$      29.92


$      28.62


$      27.89


$      26.84

Weighted average number of shares










Basic

69,171,562


69,138,431


69,124,855


69,136,046


69,345,735

Diluted

69,322,664


69,395,224


69,327,414


69,316,258


69,660,990

Period end number of shares

69,373,863


69,369,050


69,352,709


69,360,461


69,439,084

Market data










High intraday price

$      50.54


$      54.24


$      50.94


$      46.28


$      55.62

Low intraday price

$      34.28


$      44.61


$      38.22


$      39.37


$      43.56

Period end closing price

$      36.58


$      47.14


$      44.71


$      40.18


$      43.88

Average daily volume

$  452,242


$  340,890


$  346,522


$  446,121


$  471,858











PERFORMANCE RATIOS










Return on average assets

0.98 %


1.34 %


1.56 %


1.54 %


1.42 %

Adjusted return on average assets(1)

0.97 %


1.32 %


1.54 %


1.40 %


1.31 %

Return on average common equity

7.54 %


10.30 %


11.76 %


11.87 %


11.06 %

Adjusted return on average tangible common equity(1)

11.41 %


15.78 %


18.33 %


17.18 %


16.38 %

Earning asset yield (TE)

5.25 %


4.91 %


4.37 %


3.88 %


3.56 %

Total cost of funds

1.59 %


0.94 %


0.42 %


0.22 %


0.22 %

Net interest margin (TE)

3.76 %


4.03 %


3.97 %


3.66 %


3.35 %

Efficiency ratio

52.08 %


49.57 %


50.15 %


51.67 %


55.43 %

Adjusted efficiency ratio (TE)(1)

51.99 %


49.61 %


50.12 %


53.66 %


56.95 %











CAPITAL ADEQUACY (period end)










Shareholders' equity to assets

12.47 %


12.76 %


13.10 %


12.97 %


12.76 %

Tangible common equity to tangible assets(1)

8.55 %


8.67 %


8.75 %


8.58 %


8.32 %











OTHER DATA (period end)










Full time equivalent employees










Banking Division

2,093


2,079


2,071


2,050


2,033

Retail Mortgage Division

630


633


671


712


714

Warehouse Lending Division

8


8


9


9


10

SBA Division

39


39


40


36


35

Premium Finance Division

78


76


77


78


77

Total Ameris Bancorp FTE headcount

2,848


2,835


2,868


2,885


2,869











Branch locations

164


164


164


164


165

Deposits per branch location

$  121,326


$  118,675


$  118,701


$  120,030


$  118,718


(1)Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9D



AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Income Statement

Table 2


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

Interest income










Interest and fees on loans

$     271,964


$     250,263


$     216,400


$     190,740


$     177,566

Interest on taxable securities

14,300


13,029


10,324


7,064


4,239

Interest on nontaxable securities

339


358


363


269


186

Interest on deposits in other banks

9,113


9,984


7,188


4,463


1,373

Interest on federal funds sold


8


27


32


10

Total interest income

295,716


273,642


234,302


202,568


183,374











Interest expense










Interest on deposits

53,182


33,071


14,034


4,908


4,092

Interest on other borrowings

30,882


16,434


7,287


6,296


6,738

Total interest expense

84,064


49,505


21,321


11,204


10,830











Net interest income

211,652


224,137


212,981


191,364


172,544











Provision for loan losses

49,376


24,648


17,469


13,227


(2,734)

Provision for unfunded commitments

346


8,246


192


1,779


9,009

Provision for other credit losses

7


(4)


(9)


(82)


(44)

Provision for credit losses

49,729


32,890


17,652


14,924


6,231

Net interest income after provision for credit losses

161,923


191,247


195,329


176,440


166,313











Noninterest income










Service charges on deposit accounts

10,936


11,125


11,168


11,148


11,058

Mortgage banking activity

31,392


22,855


40,350


58,761


62,938

Other service charges, commissions and fees

971


968


970


998


939

Gain (loss) on securities

6


3


(21)


248


(27)

Other noninterest income

12,745


13,397


12,857


12,686


12,003

Total noninterest income

56,050


48,348


65,324


83,841


86,911











Noninterest expense










Salaries and employee benefits

80,910


75,196


78,697


81,545


84,281

Occupancy and equipment

12,986


12,905


12,983


12,746


12,727

Data processing and communications expenses

13,034


12,486


12,015


12,155


12,572

Credit resolution-related expenses(1)

435


372


126


496


(965)

Advertising and marketing

3,532


3,818


3,553


3,122


1,988

Amortization of intangible assets

4,706


4,709


4,710


5,144


5,181

Merger and conversion charges


235




977

Other noninterest expenses

23,818


25,340


27,494


26,988


27,059

Total noninterest expense

139,421


135,061


139,578


142,196


143,820











Income before income tax expense

78,552


104,534


121,075


118,085


109,404

Income tax expense

18,131


22,313


28,520


28,019


27,706

Net income

$       60,421


$       82,221


$       92,555


$       90,066


$       81,698











Diluted earnings per common share

$          0.87


$          1.18


$          1.34


$          1.30


$          1.17











(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.



AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Period End Balance Sheet

Table 3


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Assets










Cash and due from banks

$     266,400


$     284,567


$     269,193


$     345,627


$     257,316

Federal funds sold and interest-bearing deposits in banks

1,754,453


833,565


1,061,975


1,961,209


3,541,144

Debt securities available-for-sale, at fair value

1,496,836


1,500,060


1,255,149


1,052,268


579,204

Debt securities held-to-maturity, at amortized cost

134,175


134,864


130,214


111,654


91,454

Other investments

146,715


110,992


60,560


49,500


49,395

Loans held for sale

395,096


392,078


297,987


555,665


901,550











Loans, net of unearned income

19,997,871


19,855,253


18,806,856


17,561,022


16,143,801

Allowance for credit losses

(242,658)


(205,677)


(184,891)


(172,642)


(161,251)

Loans, net

19,755,213


19,649,576


18,621,965


17,388,380


15,982,550











Other real estate owned

1,502


843


843


835


1,910

Premises and equipment, net

218,878


220,283


222,694


224,249


224,293

Goodwill

1,015,646


1,015,646


1,023,071


1,023,056


1,022,345

Other intangible assets, net

101,488


106,194


110,903


115,613


120,757

Cash value of bank owned life insurance

389,201


388,405


386,533


384,862


332,914

Other assets

412,781


416,213


372,570


474,552


455,460

Total assets

$ 26,088,384


$ 25,053,286


$ 23,813,657


$ 23,687,470


$ 23,560,292











Liabilities










Deposits










Noninterest-bearing

$  7,297,893


$  7,929,579


$  8,343,200


$  8,262,929


$  7,870,207

Interest-bearing

12,599,562


11,533,159


11,123,719


11,422,053


11,718,234

Total deposits

19,897,455


19,462,738


19,466,919


19,684,982


19,588,441

Federal funds purchased and securities sold under

agreements to repurchase




953


2,065

Other borrowings

2,401,327


1,875,736


725,664


425,592


425,520

Subordinated deferrable interest debentures

128,820


128,322


127,823


127,325


126,827

Other liabilities

407,587


389,090


374,181


375,242


410,280

Total liabilities

22,835,189


21,855,886


20,694,587


20,614,094


20,553,133











Shareholders' Equity










Preferred stock





Common stock

72,484


72,264


72,247


72,251


72,212

Capital stock

1,937,664


1,935,211


1,932,906


1,931,088


1,928,702

Retained earnings

1,362,512


1,311,258


1,239,477


1,157,359


1,077,725

Accumulated other comprehensive income (loss), net of tax

(35,581)


(46,507)


(50,734)


(12,635)


(1,841)

Treasury stock

(83,884)


(74,826)


(74,826)


(74,687)


(69,639)

Total shareholders' equity

3,253,195


3,197,400


3,119,070


3,073,376


3,007,159

Total liabilities and shareholders' equity

$ 26,088,384


$ 25,053,286


$ 23,813,657


$ 23,687,470


$ 23,560,292











Other Data










Earning assets

$ 23,925,146


$ 22,826,812


$ 21,612,741


$ 21,291,318


$ 21,306,548

Intangible assets

1,117,134


1,121,840


1,133,974


1,138,669


1,143,102

Interest-bearing liabilities

15,129,709


13,537,217


11,977,206


11,975,923


12,272,646

Average assets

25,115,927


24,354,979


23,598,465


23,405,201


23,275,654

Average common shareholders' equity

3,250,289


3,168,320


3,123,718


3,043,280


2,994,652


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information

Table 4


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Allowance for Credit Losses










Balance at beginning of period

$  258,163


$  229,135


$  216,703


$  203,615


$  200,981











Adoption of ASU 2022-02

(1,711)















Provision for loan losses

49,376


24,648


17,469


13,227


(2,734)

Provision for unfunded commitments

346


8,246


192


1,779


9,009

Provision for other credit losses

7


(4)


(9)


(82)


(44)

Provision for credit losses

49,729


32,890


17,652


14,924


6,231











Charge-offs

14,956


8,371


9,272


6,853


8,579

Recoveries

4,272


4,509


4,052


5,017


4,982

Net charge-offs (recoveries)

10,684


3,862


5,220


1,836


3,597











Ending balance

$  295,497


$  258,163


$  229,135


$  216,703


$  203,615











Allowance for loan losses

$  242,658


$  205,677


$  184,891


$  172,642


$  161,251

Allowance for unfunded commitments

52,757


52,411


44,165


43,973


42,194

Allowance for other credit losses

82


75


79


88


170

Total allowance for credit losses

$  295,497


$  258,163


$  229,135


$  216,703


$  203,615











Net  Charge-off Information










Charge-offs










Commercial, financial and agricultural

$    12,233


$     5,108


$      4,722


$     4,391


$      4,414

Consumer

1,140


1,136


1,228


1,137


1,425

Indirect automobile

34


86


50


41


88

Premium Finance

1,421


1,812


1,205


1,066


1,369

Real estate - construction and development


27




Real estate - commercial and farmland


196


2,014


81


1,283

Real estate - residential

128


6


53


137


Total charge-offs

14,956


8,371


9,272


6,853


8,579

Recoveries










Commercial, financial and agricultural

2,043


2,072


2,201


2,785


2,896

Consumer

297


217


277


230


158

Indirect automobile

216


229


276


265


275

Premium Finance

1,382


1,682


1,023


1,113


1,247

Real estate - construction and development

100


223


96


355


218

Real estate - commercial and farmland

44


48


96


44


37

Real estate - residential

190


38


83


225


151

Total recoveries

4,272


4,509


4,052


5,017


4,982

Net charge-offs (recoveries)

$    10,684


$     3,862


$      5,220


$     1,836


$      3,597











Non-Performing Assets










Nonaccrual portfolio loans

$    68,028


$    65,221


$    64,055


$    72,352


$    59,316

Other real estate owned

1,502


843


843


835


1,910

Repossessed assets

25


28


60


122


139

Accruing loans delinquent 90 days or more

15,792


17,865


12,378


8,542


6,584

Non-performing portfolio assets

$    85,347


$    83,957


$    77,336


$    81,851


$    67,949

Serviced GNMA-guaranteed mortgage nonaccrual loans

74,999


69,587


54,621


50,560


43,281

Total non-performing assets

$  160,346


$  153,544


$  131,957


$  132,411


$  111,230











Asset Quality Ratios










Non-performing portfolio assets as a percent of total assets

0.33 %


0.34 %


0.32 %


0.35 %


0.29 %

Total non-performing assets as a percent of total assets

0.61 %


0.61 %


0.55 %


0.56 %


0.47 %

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

0.22 %


0.08 %


0.11 %


0.04 %


0.09 %


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Loans by Type










Commercial, financial and agricultural

$  2,722,180


$  2,679,403


$  2,245,287


$  2,022,845


$  1,836,663

Consumer

349,775


384,037


162,345


167,237


173,642

Indirect automobile

83,466


108,648


137,183


172,245


214,120

Mortgage warehouse

958,418


1,038,924


980,342


949,191


732,375

Municipal

505,515


509,151


516,797


529,268


547,926

Premium Finance

947,257


1,023,479


1,062,724


942,357


819,163

Real estate - construction and development

2,144,605


2,086,438


2,009,726


1,747,284


1,577,215

Real estate - commercial and farmland

7,721,732


7,604,868


7,516,309


7,156,017


6,924,475

Real estate - residential

4,564,923


4,420,305


4,176,143


3,874,578


3,318,222

Total loans

$ 19,997,871


$ 19,855,253


$ 18,806,856


$ 17,561,022


$ 16,143,801











Loans by Risk Grade










Grades 1 through 5 - Pass

$ 19,654,232


$ 19,513,726


$ 18,483,046


$ 17,296,520


$ 15,899,956

Grade 6 - Other assets especially mentioned

116,345


104,614


110,408


68,444


51,670

Grade 7 - Substandard

227,294


236,913


213,402


196,058


192,175

Grade 8 - Doubtful





Grade 9 - Loss





Total loans

$ 19,997,871


$ 19,855,253


$ 18,806,856


$ 17,561,022


$ 16,143,801


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances

Table 6


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Earning Assets










Federal funds sold

$             —


$           924


$         5,000


$       17,692


$       20,000

Interest-bearing deposits in banks

859,614


1,009,935


1,394,529


2,209,761


3,393,238

Debt securities - taxable

1,586,404


1,451,861


1,242,811


932,824


623,498

Debt securities - nontaxable

43,052


44,320


45,730


39,236


29,605

Other investments

131,044


83,730


51,209


49,550


47,872

Loans held for sale

490,295


371,952


471,070


944,964


1,097,098

Loans

19,820,749


19,212,560


18,146,083


16,861,674


15,821,397

Total Earning Assets

$ 22,931,158


$ 22,175,282


$ 21,356,432


$ 21,055,701


$ 21,032,708











Deposits










Noninterest-bearing deposits

$  7,136,373


$  8,138,887


$  8,259,625


$  7,955,765


$  7,658,451

NOW accounts

4,145,991


3,621,454


3,701,045


3,695,490


3,684,772

MMDA

4,994,195


5,161,047


5,026,815


5,087,199


5,240,922

Savings accounts

1,005,614


1,010,966


1,030,298


1,007,340


973,724

Retail CDs

1,612,325


1,450,037


1,506,761


1,693,740


1,774,016

Brokered CDs

125,133





Total Deposits

19,019,631


19,382,391


19,524,544


19,439,534


19,331,885

Non-Deposit Funding










Federal funds purchased and securities sold under

agreements to repurchase


1


92


1,854


4,020

FHLB advances

1,968,811


918,228


94,357


48,746


48,786

Other borrowings

361,445


377,056


376,942


376,829


443,657

Subordinated deferrable interest debentures

128,557


128,060


127,560


127,063


126,563

Total Non-Deposit Funding

2,458,813


1,423,345


598,951


554,492


623,026

Total Funding

$ 21,478,444


$ 20,805,736


$ 20,123,495


$ 19,994,026


$ 19,954,911


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)

Table 7


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Interest Income










Federal funds sold

$            —


$               8


$             27


$             32


$             10

Interest-bearing deposits in banks

9,113


9,984


7,188


4,463


1,373

Debt securities - taxable

14,300


13,029


10,324


7,064


4,239

Debt securities - nontaxable (TE)

429


454


459


341


235

Loans held for sale

7,007


5,519


6,012


10,036


8,132

Loans (TE)

265,802


245,603


211,223


181,602


170,398

Total Earning Assets

$    296,651


$     274,597


$     235,233


$     203,538


$     184,387











Interest Expense










Interest-Bearing Deposits










NOW accounts

$      15,033


$        8,564


$         3,733


$        1,246


$           824

MMDA

27,809


20,683


8,613


2,204


1,643

Savings accounts

1,288


654


360


140


133

Retail CDs

7,629


3,170


1,328


1,318


1,492

Brokered CDs

1,423





Total Interest-Bearing Deposits

53,182


33,071


14,034


4,908


4,092

Non-Deposit Funding










Federal funds purchased and securities sold under

agreements to repurchase




1


3

FHLB advances

22,448


8,801


527


192


190

Other borrowings

5,349


4,953


4,655


4,437


5,164

Subordinated deferrable interest debentures

3,085


2,680


2,105


1,666


1,381

Total Non-Deposit Funding

30,882


16,434


7,287


6,296


6,738

Total Interest-Bearing Funding

$      84,064


$       49,505


$       21,321


$       11,204


$       10,830











Net Interest Income (TE)

$    212,587


$     225,092


$     213,912


$     192,334


$     173,557


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Yields(1)

Table 8


Three Months Ended


Mar


Dec


Sep


Jun


Mar


2023


2022


2022


2022


2022

Earning Assets










Federal funds sold

— %


3.43 %


2.14 %


0.73 %


0.20 %

Interest-bearing deposits in banks

4.30 %


3.92 %


2.04 %


0.81 %


0.16 %

Debt securities - taxable

3.66 %


3.56 %


3.30 %


3.04 %


2.76 %

Debt securities - nontaxable (TE)

4.04 %


4.06 %


3.98 %


3.49 %


3.22 %

Loans held for sale

5.80 %


5.89 %


5.06 %


4.26 %


3.01 %

Loans (TE)

5.44 %


5.07 %


4.62 %


4.32 %


4.37 %

Total Earning Assets

5.25 %


4.91 %


4.37 %


3.88 %


3.56 %











Interest-Bearing Deposits










NOW accounts

1.47 %


0.94 %


0.40 %


0.14 %


0.09 %

MMDA

2.26 %


1.59 %


0.68 %


0.17 %


0.13 %

Savings accounts

0.52 %


0.26 %


0.14 %


0.06 %


0.06 %

Retail CDs

1.92 %


0.87 %


0.35 %


0.31 %


0.34 %

Brokered CDs

4.61 %


— %


— %


— %


— %

Total Interest-Bearing Deposits

1.82 %


1.17 %


0.49 %


0.17 %


0.14 %

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

— %


— %


— %


0.22 %


0.30 %

FHLB advances

4.62 %


3.80 %


2.22 %


1.58 %


1.58 %

Other borrowings

6.00 %


5.21 %


4.90 %


4.72 %


4.72 %

Subordinated deferrable interest debentures

9.73 %


8.30 %


6.55 %


5.26 %


4.43 %

Total Non-Deposit Funding

5.09 %


4.58 %


4.83 %


4.55 %


4.39 %

Total Interest-Bearing Liabilities

2.38 %


1.55 %


0.71 %


0.37 %


0.36 %











Net Interest Spread

2.87 %


3.36 %


3.66 %


3.51 %


3.20 %











Net Interest Margin(2)

3.76 %


4.03 %


3.97 %


3.66 %


3.35 %











Total Cost of Funds(3)

1.59 %


0.94 %


0.42 %


0.22 %


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


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

Net income available to common shareholders

$     60,421


$     82,221


$     92,555


$    90,066


$     81,698











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)


(9,654)

Gain on BOLI proceeds

(486)



(55)



Natural disaster and pandemic charges



151



(Gain) loss on bank premises




(39)


(6)

Tax effect of adjustment items (Note 1)


302


182


2,284


2,024

After tax adjustment items

(486)


(1,135)


(738)


(8,593)


(6,659)

Adjusted net income

$     59,935


$     81,086


$     91,817


$    81,473


$     75,039











Weighted average number of shares - diluted

69,322,664


69,395,224


69,327,414


69,316,258


69,660,990

Net income per diluted share

$        0.87


$        1.18


$        1.34


$        1.30


$        1.17

Adjusted net income per diluted share

$        0.86


$        1.17


$        1.32


$        1.18


$        1.08











Average assets

$  25,115,927


$  24,354,979


$  23,598,465


$  23,405,201


$  23,275,654

Return on average assets

0.98 %


1.34 %


1.56 %


1.54 %


1.42 %

Adjusted return on average assets

0.97 %


1.32 %


1.54 %


1.40 %


1.31 %











Average common equity

$ 3,250,289


$ 3,168,320


$ 3,123,718


$                  3,043,280


$ 2,994,652

Average tangible common equity

$ 2,130,856


$ 2,039,094


$ 1,987,385


$                  1,902,265


$ 1,857,713

Return on average common equity

7.54 %


10.30 %


11.76 %


11.87 %


11.06 %

Adjusted return on average tangible common equity

11.41 %


15.78 %


18.33 %


17.18 %


16.38 %

 











Note 1:  Tax effect is calculated utilizing a 21% rate for taxable adjustments.  Gain on BOLI proceeds is non-taxable and no tax effect is included.  A portion of the merger and conversion charges for 1Q22 are nondeductible for tax purposes.


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations (continued)


Adjusted Efficiency Ratio (TE)

Table 9B


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Adjusted Noninterest Expense










Total noninterest expense

$  139,421


$  135,061


$  139,578


$  142,196


$  143,820

Adjustment items:










Merger and conversion charges


(235)




(977)

Natural disaster and pandemic charges



(151)



Gain (loss) on bank premises




39


6

Adjusted noninterest expense

$  139,421


$  134,826


$  139,427


$  142,235


$  142,849











Total Revenue










Net interest income

$  211,652


$  224,137


$  212,981


$  191,364


$  172,544

Noninterest income

56,050


48,348


65,324


83,841


86,911

Total revenue

$  267,702


$  272,485


$  278,305


$  275,205


$  259,455











Adjusted Total Revenue










Net interest income (TE)

$  212,587


$  225,092


$  213,912


$  192,334


$  173,557

Noninterest income

56,050


48,348


65,324


83,841


86,911

Total revenue (TE)

268,637


273,440


279,236


276,175


260,468

Adjustment items:










(Gain) loss on securities

(6)


(3)


21


(248)


27

(Gain) loss on sale of MSR


(1,672)


316



Gain on BOLI proceeds

(486)



(55)



Servicing right impairment (recovery)



(1,332)


(10,838)


(9,654)

Adjusted total revenue (TE)

$  268,145


$  271,765


$  278,186


$  265,089


$  250,841











Efficiency ratio

52.08 %


49.57 %


50.15 %


51.67 %


55.43 %

Adjusted efficiency ratio (TE)

51.99 %


49.61 %


50.12 %


53.66 %


56.95 %











Tangible Book Value Per Share

Table 9C


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

Total shareholders' equity

$                  3,253,195


$                  3,197,400


$                  3,119,070


$                  3,073,376


$                  3,007,159

Less:










Goodwill

1,015,646


1,015,646


1,023,071


1,023,056


1,022,345

Other intangibles, net

101,488


106,194


110,903


115,613


120,757

Total tangible shareholders' equity

$                  2,136,061


$                  2,075,560


$                  1,985,096


$                  1,934,707


$                  1,864,057











Period end number of shares

69,373,863


69,369,050


69,352,709


69,360,461


69,439,084

Book value per share (period end)

$     46.89


$     46.09


$      44.97


$     44.31


$     43.31

Tangible book value per share (period end)

$     30.79


$     29.92


$      28.62


$     27.89


$     26.84


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations (continued)


Tangible Common Equity to Tangible Assets

Table 9D


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

Total shareholders' equity

$ 3,253,195


$ 3,197,400


$ 3,119,070


$ 3,073,376


$ 3,007,159

Less:










Goodwill

1,015,646


1,015,646


1,023,071


1,023,056


1,022,345

Other intangibles, net

101,488


106,194


110,903


115,613


120,757

Total tangible shareholders' equity

$ 2,136,061


$ 2,075,560


$ 1,985,096


$ 1,934,707


$ 1,864,057











Total assets

$  26,088,384


$  25,053,286


$  23,813,657


$  23,687,470


$  23,560,292

Less:










Goodwill

1,015,646


1,015,646


1,023,071


1,023,056


1,022,345

Other intangibles, net

101,488


106,194


110,903


115,613


120,757

Total tangible assets

$  24,971,250


$  23,931,446


$  22,679,683


$  22,548,801


$  22,417,190











Equity to Assets

12.47 %


12.76 %


13.10 %


12.97 %


12.76 %

Tangible Common Equity to Tangible Assets

8.55 %


8.67 %


8.75 %


8.58 %


8.32 %











PPNR ROA

Table 9E


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2023


2022


2022


2022


2022

Net income

60,421


82,221


92,555


90,066


81,698

Plus:










Income taxes

18,131


22,313


28,520


28,019


27,706

Provision for credit losses

49,729


32,890


17,652


14,924


6,231

PPNR

128,281


137,424


138,727


133,009


115,635











Average Assets

25,115,927


24,354,979


23,598,465


23,405,201


23,275,654











Return on Average Assets (ROA)

0.98 %


1.34 %


1.56 %


1.54 %


1.42 %

PPNR ROA

2.07 %


2.24 %


2.33 %


2.28 %


2.01 %



AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

Banking Division










Net interest income

$  175,340


$  185,909


$  174,507


$  152,122


$  133,745

Provision for credit losses

47,140


35,946


10,551


10,175


5,226

Noninterest income

23,898


23,448


23,269


23,469


21,364

Noninterest expense










Salaries and employee benefits

56,454


52,296


48,599


46,733


49,195

Occupancy and equipment expenses

11,606


11,482


11,357


11,168


11,074

Data processing and telecommunications expenses

11,797


11,085


10,779


10,863


11,230

Other noninterest expenses

19,023


21,811


22,974


21,123


20,045

Total noninterest expense

98,880


96,674


93,709


89,887


91,544

Income before income tax expense

53,218


76,737


93,516


75,529


58,339

Income tax expense

12,850


16,545


22,706


19,120


16,996

Net income

$    40,368


$    60,192


$    70,810


$    56,409


$    41,343











Retail Mortgage Division










Net interest income

$    20,027


$    19,837


$    19,283


$    20,779


$    19,295

Provision for credit losses

2,853


(2,778)


9,043


4,499


1,587

Noninterest income

31,058


24,011


38,584


57,795


61,649

Noninterest expense










Salaries and employee benefits

20,160


19,164


25,813


31,219


31,614

Occupancy and equipment expenses

1,283


1,242


1,460


1,406


1,471

Data processing and telecommunications expenses

1,069


1,203


1,082


1,123


1,172

Other noninterest expenses

11,747


11,126


11,641


12,812


12,645

Total noninterest expense

34,259


32,735


39,996


46,560


46,902

Income before income tax expense

13,973


13,891


8,828


27,515


32,455

Income tax expense

2,934


2,916


1,854


5,779


6,815

Net income

$    11,039


$    10,975


$      6,974


$    21,736


$    25,640











Warehouse Lending Division










Net interest income

$      5,700


$      6,601


$      6,979


$      6,700


$      6,447

Provision for credit losses

(194)


117


(1,836)


867


(222)

Noninterest income

480


579


1,516


1,041


1,401

Noninterest expense










Salaries and employee benefits

802


427


1,055


208


283

Occupancy and equipment expenses

1


1


1


1


1

Data processing and telecommunications expenses

46


49


43


48


47

Other noninterest expenses

202


191


209


212


218

Total noninterest expense

1,051


668


1,308


469


549

Income before income tax expense

5,323


6,395


9,023


6,405


7,521

Income tax expense

1,118


1,342


1,895


1,346


1,579

Net income

$      4,205


$      5,053


$      7,128


$      5,059


$      5,942


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Segment Reporting (continued)

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2023


2022


2022


2022


2022

SBA Division










Net interest income

$      1,945


$      2,491


$      2,424


$      3,798


$      6,011

Provision for credit losses

(104)


265


52


(523)


(143)

Noninterest income

605


302


1,946


1,526


2,491

Noninterest expense










Salaries and employee benefits

1,297


1,306


1,412


1,316


1,271

Occupancy and equipment expenses

37


98


82


81


99

Data processing and telecommunications expenses

37


30


29


29


28

Other noninterest expenses

422


368


100


539


380

Total noninterest expense

1,793


1,802


1,623


1,965


1,778

Income before income tax expense

861


726


2,695


3,882


6,867

Income tax expense

179


153


566


815


1,442

Net income

$         682


$         573


$      2,129


$      3,067


$      5,425











Premium Finance Division










Net interest income

$      8,640


$      9,299


$      9,788


$      7,965


$      7,046

Provision for credit losses

34


(660)


(158)


(94)


(217)

Noninterest income

9


8


9


10


6

Noninterest expense










Salaries and employee benefits

2,197


2,003


1,818


2,069


1,918

Occupancy and equipment expenses

59


82


83


90


82

Data processing and telecommunications expenses

85


119


82


92


95

Other noninterest expenses

1,097


978


959


1,064


952

Total noninterest expense

3,438


3,182


2,942


3,315


3,047

Income before income tax expense

5,177


6,785


7,013


4,754


4,222

Income tax expense

1,050


1,357


1,499


959


874

Net income

$      4,127


$      5,428


$      5,514


$      3,795


$      3,348











Total Consolidated










Net interest income

$  211,652


$  224,137


$  212,981


$  191,364


$  172,544

Provision for credit losses

49,729


32,890


17,652


14,924


6,231

Noninterest income

56,050


48,348


65,324


83,841


86,911

Noninterest expense










Salaries and employee benefits

80,910


75,196


78,697


81,545


84,281

Occupancy and equipment expenses

12,986


12,905


12,983


12,746


12,727

Data processing and telecommunications expenses

13,034


12,486


12,015


12,155


12,572

Other noninterest expenses

32,491


34,474


35,883


35,750


34,240

Total noninterest expense

139,421


135,061


139,578


142,196


143,820

Income before income tax expense

78,552


104,534


121,075


118,085


109,404

Income tax expense

18,131


22,313


28,520


28,019


27,706

Net income

$    60,421


$    82,221


$    92,555


$    90,066


$    81,698

 

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