Ameris Bancorp Announces Financial Results For Second Quarter 2020

Rhea-AI Summary

Ameris Bancorp (ABCB) reported a net income of $32.2 million or $0.47 per diluted share for Q2 2020, down from $38.9 million or $0.82 in Q2 2019. This decline is primarily due to an increase in credit loss provision of $83.5 million and salaries by $19.2 million. Adjusted net income was $42.4 million or $0.61 per diluted share. Year-to-date, net income was $51.6 million compared to $78.8 million in 2019. The allowance for credit losses rose to $208 million. The company managed to fund $1.4 billion in new loans, including PPP loans.

Positive

• Growth in adjusted total revenue of 30% compared to Q1 2020.
• Increase in income from mortgage banking activity by 197% compared to Q1 2020.
• Improvement in adjusted efficiency ratio to 51.08% from 59.87% in Q1 2020.
• Increased net interest margin to 3.83% from 3.70% in Q1 2020.

Negative

• Decrease in net income by 17% year-over-year.
• Increase in provision for credit losses, indicating potential future credit issues.
• Year-to-date net income fell significantly from $78.8 million in 2019 to $51.6 million in 2020.

ATLANTA, July 27, 2020 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $32.2 million, or $0.47 per diluted share, for the quarter ended June 30, 2020, compared with $38.9 million, or $0.82 per diluted share, for the quarter ended June 30, 2019.  The decrease in net income is primarily attributable to increases in provision for credit loss expense of $83.5 million and salaries and employee benefits of $19.2 million, partially offset by an increase of $86.4 million in mortgage banking activity compared with the second quarter of 2019.  The Company reported adjusted net income of $42.4 million, or $0.61 per diluted share, for the quarter ended June 30, 2020, compared with $45.2 million, or $0.96 per diluted share, for the same period in 2019.  Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, restructuring charges related to branch consolidations and efficiency initiatives, certain legal expenses, loss on sale of bank premises and expenses related to natural disasters and the COVID-19 pandemic.

For the year-to-date period ending June 30, 2020, the Company reported net income of $51.6 million, or $0.74 per diluted share, compared with $78.8 million, or $1.66 per diluted share, for the same period in 2019.  The Company reported adjusted net income of $81.6 million, or $1.18 per diluted share, for the six months ended June 30, 2020, compared with $87.8 million, or $1.85 per diluted share, for the same period in 2019.  Adjusted net income for the year-to-date period excludes the same items listed above for the Company's quarter-to-date period. 

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "The challenges of COVID-19 and the global economy certainly affect how we do business, but our bankers have quickly adapted to the new operating environment.  We successfully managed deposit costs to improve the margin by 13 basis points, allowing us to fund over $1.4 billion in new loan growth (including PPP loans), and our mortgage division continued to see historic production and profitability.  We increased our allowance for credit losses on loans to over $208 million, while still earning $32 million for the quarter.  We believe we are properly positioned for the future."

Significant items from the Company's results for the second quarter of 2020 include the following:

• Net income of $32.2 million, or $0.47 per diluted share, compared with $19.3 million, or $0.28 per diluted share, in the first quarter of 2020
• Growth in adjusted total revenue of $67.7 million, or 30.0%, compared with the first quarter of 2020
• Increase in income from mortgage banking activity of $69.6 million compared with the first quarter of 2020
• Adjusted efficiency ratio of 51.08%, compared with 59.87% in the first quarter of 2020
• Net interest margin of 3.83%, compared with 3.70% in the first quarter of 2020
• Adjusted return on average assets of 0.89%, compared with 0.87% in the first quarter of 2020
• Improvement in deposit mix such that noninterest bearing deposits represent 35.89% of total deposits, up from 29.94% at December 31, 2019 and 28.92% a year ago
• Annualized net charge-offs of 0.27% of average total loans
• Non-performing assets of 0.59% of total assets, compared with 0.56% at the end of 2019

Following is a summary of the adjustments between reported net income and adjusted net income:

 

Adjusted Net Income Reconciliation
	Three Months Ended								Six Months Ended
	June 30,								June 30,
(dollars in thousands, except per share data)	2020				2019				2020				2019
Net income available to common shareholders	$	32,236			$	38,904			$	51,558			$	78,809
Adjustment items:
Merger and conversion charges	895				3,475				1,435				5,532
Restructuring charges	1,463				—				1,463				245
Servicing right impairment	7,989				1,460				30,154				1,460
Natural disaster and pandemic charges	2,043				50				2,591				(39)
Gain on BOLI proceeds	(845)				—				(845)				—
Expenses related to SEC and DOJ investigation	1,294				—				2,737				—
Loss on sale of premises	281				2,800				751				3,719
Tax effect of adjustment items	(2,933)				(1,479)				(8,216)				(1,929)
After-tax adjustment items	10,187				6,306				30,070				8,988
Adjusted net income	$	42,423			$	45,210			$	81,628			$	87,797
Reported net income per diluted share	$	0.47			$	0.82			$	0.74			$	1.66
Adjusted net income per diluted share	$	0.61			$	0.96			$	1.18			$	1.85
Reported return on average assets	0.67		%		1.34		%		0.56		%		1.38		%
Adjusted return on average assets	0.89		%		1.56		%		0.88		%		1.54		%
Reported return on average common equity	5.23		%		10.27		%		4.17		%		10.60		%
Adjusted return on average tangible common equity	11.66		%		18.79		%		11.18		%		18.81		%

 

Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis for the second quarter of 2020 totaled $165.2 million, compared with $149.0 million for the first quarter of 2020 and $102.7 million for the second quarter of 2019.  The Company's net interest margin was 3.83% for the second quarter of 2020, up from 3.70% reported for the first quarter of 2020 and down from 3.91% reported for the second quarter of 2019.  The increase in net interest margin in the current quarter is primarily attributable to an increase in accretion income and a decrease in the cost of interest-bearing liabilities, partially offset by a decrease in the yield on loans as market interest rates declined.  Accretion income for the second quarter of 2020 increased to $9.6 million, compared with $6.6 million for the first quarter of 2020, and increased from $3.1 million for the second quarter of 2019.  The increase in accretion income in the second quarter is primarily attributable to payoffs of acquired loans. 

Yields on all loans decreased to 4.70% during the second quarter of 2020, compared with 5.02% for the first quarter of 2020 and 5.34% reported for the second quarter of 2019.  Loan production in the banking division during the second quarter of 2020 totaled $472.1 million, with weighted average yields of 4.16%, compared with $918.4 million and 4.55%, respectively, in the first quarter of 2020 and $854.7 million and 5.49%, respectively, in the second quarter of 2019.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $7.2 billion during the second quarter of 2020, with weighted average yields of 3.17%, compared with $3.9 billion and 4.15%, respectively, during the first quarter of 2020 and $2.6 billion and 5.20%, respectively, during the second quarter of 2019.  Loan production yields in the lines of business were materially impacted by originations of Paycheck Protection Program ("PPP") loans in our SBA division.  Excluding PPP loans, loan production in the lines of business amounted to $6.1 billion during the second quarter of 2020, with weighted average yields of 3.53%.

Interest expense during the second quarter of 2020 decreased to $21.2 million, compared with $34.8 million in the first quarter of 2020, and $27.4 million in the second quarter of 2019.  The Company's total cost of funds moved 39 basis points lower to 0.52% in the second quarter of 2020 as compared with the first quarter of 2020.  Deposit costs decreased 32 basis points during the second quarter of 2020 to 0.39%, compared with 0.71% in the first quarter of 2020.  Costs of interest-bearing deposits decreased during the quarter from 1.01% in the first quarter of 2020 to 0.58% in the second quarter of 2020.

Noninterest Income
Noninterest income increased $66.6 million, or 122.4%, in the second quarter of 2020 to $121.0 million, compared with $54.4 million for the first quarter of 2020, primarily as a result of increased mortgage banking activity. 

Mortgage banking activity increased $69.6 million, or 197.0%, to $104.9 million in the second quarter of 2020, compared with $35.3 million for the first quarter of 2020.  This increase was a result of both increased production and expansion in our gain on sale spread. Gain on sale spreads increased to 3.53% in the second quarter of 2020 from 2.88% for the first quarter of 2020. Total production in the retail mortgage division increased to $2.67 billion in the second quarter of 2020, compared with $1.36 billion for the first quarter of 2020. Mortgage banking activity was negatively impacted during the second quarter of 2020 by an $8.2 million servicing right impairment, compared with an impairment of $20.9 million for the first quarter of 2020. The retail mortgage open pipeline was $2.67 billion at the end of the second quarter of 2020, compared with $2.43 billion at March 31, 2020.

Service charge revenue decreased $1.9 million, or 16.2%, to $9.9 million in the second quarter of 2020, compared with $11.8 million for the first quarter of 2020.  This decrease was primarily attributable to a decrease of $2.6 million in NSF income resulting from a decrease in volume, partially offset by an increase in interchange income of $743,000.

Other noninterest income decreased $1.1 million, or 18.3%, in the second quarter of 2020 to $4.9 million, compared with $6.1 million for the first quarter of 2020, primarily as a result of a decrease in the gain on sales of SBA loans of $1.0 million, as the SBA division shifted its focus temporarily to PPP loan production during the second quarter.

Noninterest Expense
Noninterest expense increased $17.7 million, or 12.8%, to $155.8 million during the second quarter of 2020, compared with $138.1 million for the first quarter of 2020.  During the second quarter of 2020, the Company recorded $6.0 million of charges to earnings, related to restructuring charges associated with branch consolidations and efficiency initiatives, charges related to the previously announced SEC/DOJ investigations, merger and conversion charges, natural disaster and pandemic charges and loss on sale of premises, compared with $3.0 million in charges in the first quarter of 2020 that were related principally to merger and conversion charges, the SEC/DOJ investigations, natural disaster and pandemic expenses and loss on sale of premises.  Excluding these charges, adjusted expenses increased approximately $14.7 million, or 10.9%, to $149.8 million in the second quarter of 2020, from $135.1 million in the first quarter of 2020.  The majority of this increase is attributable to variable expenses related to increased mortgage production. The Company continues to focus on its operating efficiency ratio, such that the adjusted efficiency ratio improved from 59.87% in the first quarter of 2020 to 51.08% in the second quarter of 2020.

Income Tax Expense
The Company's effective tax rate for the second quarter of 2020 was 21.1%, compared with 16.8% in the first quarter of 2020. The decreased rate for the first quarter of 2020 was primarily a result of loss carrybacks allowed as a result of the recently enacted CARES Act.

Balance Sheet Trends
Total assets at June 30, 2020 were $19.87 billion, compared with $18.24 billion at December 31, 2019.  Total loans, including loans held for sale, were $16.24 billion at June 30, 2020, compared with $14.48 billion at December 31, 2019.  Total loans held for investment were $14.50 billion at June 30, 2020, compared with $12.82 billion at December 31, 2019, an increase of $1.68 billion, or 13.1%, compared with December 31, 2019.  Loan production in the banking division during the second quarter of 2020 was down 49% from the first quarter of 2020 and 45% from the second quarter of 2019.  Loan growth in the first half of 2020 was principally driven by PPP loan originations, which totaled $1.06 billion in outstanding balances at June 30, 2020. 

At June 30, 2020, total deposits amounted to $15.59 billion, or 90.9% of total funding, compared with $14.03 billion and 90.1%, respectively, at December 31, 2019.  At June 30, 2020, noninterest-bearing deposit accounts were $5.60 billion, or 35.9% of total deposits, compared with $4.20 billion, or 29.9% of total deposits, at December 31, 2019.  Noninterest-bearing deposit growth was meaningfully impacted by PPP loan fundings during the quarter.  Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $9.02 billion at June 30, 2020, compared with $7.21 billion at December 31, 2019.  These funds represented 57.9% of the Company's total deposits at June 30, 2020, compared with 51.4% at the end of 2019.

Shareholders' equity at June 30, 2020 totaled $2.46 billion, a decrease of $9.5 million, or 0.4%, from December 31, 2019.  The decrease in shareholders' equity was primarily the result of the CECL adoption impact of $56.7 million and dividends declared, partially offset by earnings of $51.6 million during 2020.  Tangible book value per share was $20.90 at June 30, 2020, compared with $20.81 at December 31, 2019.  Tangible common equity as a percentage of tangible assets was 7.70% at June 30, 2020, compared with 8.40% at the end of the 2019.

Credit Quality
Credit quality remains strong in the Company.  During the second quarter of 2020, the Company recorded provision for credit losses of $88.2 million, compared with $41.0 million in the first quarter of 2020.  This increase in provision was primarily attributable to declines in forecast economic conditions, particularly levels of unemployment and GDP, compared with forecast conditions during the first quarter of 2020.  The Company has been prudently working with borrowers to support their credit needs during the challenging economic conditions and monitoring the level of modifications on a daily basis.  Nonperforming assets as a percentage of total assets decreased by two basis points to 0.59% during the quarter.  The net charge-off ratio was 27 basis points for the second quarter of 2020, compared with 14 basis points in the first quarter of 2020 and seven basis points in the second quarter of 2019.

Conference Call
The Company will host a teleconference at 9:00 a.m. Eastern time Monday, July 27, 2020, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants).  The conference ID name is Ameris Bancorp ABCB.  A replay of the call will be available one hour after the end of the conference call until August 10, 2020.  To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for other international participants).  The conference replay access code is 10146087.  The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.

About Ameris Bancorp
Ameris Bancorp is a bank holding company headquartered in Atlanta, Georgia.  The Company's banking subsidiary, Ameris Bank, had 170 locations in Georgia, Florida, South Carolina and Alabama at the end of the most recent quarter.

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals.  Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements.  The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance.  Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following:  general competitive, economic, political and market conditions and fluctuations; movements in interest rates and our expectations regarding net interest margin; expectations on credit quality and performance; legislative and regulatory changes; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, public health crises and other catastrophic events beyond our control.  For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019, as amended, and its subsequently filed periodic reports and other filings.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.

 

	AMERIS BANCORP AND SUBSIDIARIES
	FINANCIAL TABLES
Financial Highlights																																							Table 1
	Three Months Ended																																						Six Months Ended
	Jun							Mar							Dec							Sep									Jun								Jun								Jun
(dollars in thousands except per share data)	2020							2020							2019							2019									2019								2020								2019
EARNINGS
Net income	$	32,236						$		19,322					$		61,248					$			21,384						$		38,904						$		51,558						$		78,809
Adjusted net income	$	42,423						$		39,205					$		66,608					$			68,539						$		45,210						$		81,628						$		87,797
COMMON SHARE DATA
Earnings per share available to common shareholders
Basic	$	0.47						$		0.28					$		0.88					$			0.31						$		0.82						$		0.74						$		1.66
Diluted	$	0.47						$		0.28					$		0.88					$			0.31						$		0.82						$		0.74						$		1.66
Adjusted diluted EPS	$	0.61						$		0.56					$		0.96					$			0.98						$		0.96						$		1.18						$		1.85
Cash dividends per share	$	0.15						$		0.15					$		0.15					$			0.15						$		0.10						$		0.30						$		0.20
Book value per share (period end)	$	35.42						$		35.10					$		35.53					$			34.78						$		32.52						$		35.42						$		32.52
Tangible book value per share (period end)	$	20.90						$		20.44					$		20.81					$			20.29						$		20.81						$		20.90						$		20.81
Weighted average number of shares
Basic	69,191,778							69,247,661							69,429,193							69,372,125									47,310,561								69,235,117								47,353,678
Diluted	69,292,972							69,502,022							69,683,999							69,600,499									47,337,809								69,413,027								47,394,911
Period end number of shares	69,461,968							69,441,274							69,503,833							69,593,833									47,261,584								69,461,968								47,261,584
Market data
High intraday price	$	29.82						$		43.79					$		44.90					$			40.65						$		39.60						$		43.79						$		42.01
Low intraday price	$	17.12						$		17.89					$		38.34					$			33.71						$		33.57						$		17.12						$		31.27
Period end closing price	$	23.59						$		23.76					$		42.54					$			40.24						$		39.19						$		23.59						$		39.19
Average daily volume	470,151							461,692							353,783							461,289									352,684								465,955								369,959
PERFORMANCE RATIOS
Return on average assets	0.67				%			0.43					%		1.35				%			0.49					%				1.34				%				0.56				%				1.38				%
Adjusted return on average assets	0.89				%			0.87					%		1.47				%			1.57					%				1.56				%				0.88				%				1.54				%
Return on average common equity	5.23				%			3.16					%		9.97				%			3.49					%				10.27				%				4.17				%				10.60				%
Adjusted return on average tangible common equity	11.66				%			10.98					%		18.45				%			18.95					%				18.79				%				11.18				%				18.81				%
Earning asset yield (TE)	4.32				%			4.56					%		4.82				%			4.86					%				4.95				%				4.44				%				4.95				%
Total cost of funds	0.52				%			0.91					%		1.00				%			1.07					%				1.10				%				0.99				%				1.08				%
Net interest margin (TE)	3.83				%			3.70					%		3.86				%			3.84					%				3.91				%				3.77				%				3.93				%
Noninterest income excluding securities transactions, as a percent of total revenue (TE)	39.35				%			22.83					%		22.02				%			28.89					%				21.27				%				32.14				%				20.45				%
Efficiency ratio	54.70				%			68.23					%		58.24				%			85.35					%				59.36				%				60.32				%				58.67				%
Adjusted efficiency ratio (TE)	51.08				%			59.87					%		55.61				%			57.25					%				53.77				%				54.90				%				54.43				%
CAPITAL ADEQUACY (period end)
Shareholders' equity to assets	12.38				%			13.37					%		13.54				%			13.63					%				12.93				%				12.38				%				12.93				%
Tangible common equity to tangible assets	7.70				%			8.25					%		8.40				%			8.43					%				8.68				%				7.70				%				8.68				%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets	7.70				%			8.25					%		8.40				%			8.43					%				8.68				%				7.70				%				8.68				%
Effect of goodwill and other intangibles	4.68				%			5.12					%		5.14				%			5.20					%				4.25				%				4.68				%				4.25				%
Equity to assets (GAAP)	12.38				%			13.37					%		13.54				%			13.63					%				12.93				%				12.38				%				12.93				%
OTHER DATA (period end)
Full time equivalent employees
Banking Division	1,832							1,865							1,913							2,001									1,336								1,832								1,336
Retail Mortgage Division	692							689							690							785									348								692								348
Warehouse Lending Division	9							9							9							9									10								9								10
SBA Division	42							44							42							45									21								42								21
Premium Finance Division	70							72							68							66									62								70								62
Total Ameris Bancorp FTE headcount	2,645							2,679							2,722							2,906									1,777								2,645								1,777
Assets per Banking Division FTE	$	10,848						$		9,772					$		9,536					$			8,878						$		8,889						$		10,848						$		8,889
Branch locations	170							170							170							172									114								170								114
Deposits per branch location	$	91,705						$		81,439					$		82,512					$			79,416						$		84,056						$		91,705						$		84,056

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Income Statement			Table 2
			Three Months Ended																																					Six Months Ended
			Jun								Mar						Dec							Sep								Jun								Jun								Jun
(dollars in thousands except per share data)			2020								2020						2019							2019								2019								2020								2019
Interest income
Interest and fees on loans			$	175,345							$	171,242					$	182,391						$		175,046						$		117,010						$		346,587						$		229,411
Interest on taxable securities			9,347								10,082						10,358							11,354								9,383								19,429								18,426
Interest on nontaxable securities			157								157						167							168								102								314								258
Interest on deposits in other banks			123								1,211						1,091							1,622								2,276								1,334								5,426
Interest on federal funds sold			46								76						69							171								257								122								436
Total interest income			185,018								182,768						194,076							188,361								129,028								367,786								253,957
Interest expense
Interest on deposits			14,273								24,102						27,970							29,425								23,454								38,375								45,138
Interest on other borrowings			6,931								10,721						10,755							10,167								3,923								17,652								7,773
Total interest expense			21,204								34,823						38,725							39,592								27,377								56,027								52,911
Net interest income			163,814								147,945						155,351							148,769								101,651								311,759								201,046
Provision for loan losses			68,449								37,047						5,693							5,989								4,668								105,496								8,076
Provision for unfunded commitments			19,712								4,000						—							—								—								23,712								—
Provision for credit losses			88,161								41,047						5,693							5,989								4,668								129,208								8,076
Net interest income after provision for credit losses			75,653								106,898						149,658							142,780								96,983								182,551								192,970
Noninterest income
Service charges on deposits accounts			9,922								11,844						13,567							13,411								12,168								21,766								23,814
Mortgage banking activity			104,925								35,333						33,168							53,041								18,523								140,258								33,200
Other service charges, commissions and fees			1,130								1,128						1,085							1,236								803								2,258								1,592
Gain (loss) on securities			14								(9)						(1)							4								69								5								135
Other noninterest income			4,969								6,083						7,294							9,301								3,673								11,052								7,266
Total noninterest income			120,960								54,379						55,113							76,993								35,236								175,339								66,007
Noninterest expense
Salaries and employee benefits			95,168								75,946						69,642							77,633								38,331								171,114								76,663
Occupancy and equipment expenses			13,807								12,028						11,919							12,639								7,834								25,835								16,038
Data processing and telecommunications expenses			10,514								11,954						11,362							10,372								8,388								22,468								16,779
Credit resolution related expenses(1)			950								2,198						1,098							1,094								979								3,148								1,890
Advertising and marketing expenses			1,455								2,358						2,250							1,949								1,987								3,813								3,728
Amortization of intangible assets			5,601								5,631						5,741							5,719								3,121								11,232								6,253
Merger and conversion charges			895								540						2,415							65,158								3,475								1,435								5,532
Other noninterest expenses			27,378								27,398						18,137							18,133								17,136								54,776								29,793
Total noninterest expense			155,768								138,053						122,564							192,697								81,251								293,821								156,676
Income before income tax expense			40,845								23,224						82,207							27,076								50,968								64,069								102,301
Income tax expense			8,609								3,902						20,959							5,692								12,064								12,511								23,492
Net income			$	32,236							$	19,322					$	61,248						$		21,384						$		38,904						$		51,558						$		78,809
Diluted earnings per common share			$	0.47							$	0.28					$	0.88						$		0.31						$		0.82						$		0.74						$		1.66
(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Period End Balance Sheet	Table 3
	Three Months Ended
	Jun				Mar				Dec				Sep				Jun
(dollars in thousands)	2020				2020				2019				2019				2019
Assets
Cash and due from banks	$	292,899			$	255,312			$	246,234			$	193,976			$	151,186
Federal funds sold and interest-bearing deposits in banks	428,560				396,844				375,615				285,713				186,969
Time deposits in other banks	249				249				249				499				748
Investment securities available for sale, at fair value	1,238,896				1,353,040				1,403,403				1,491,207				1,273,244
Other investments	76,453				81,754				66,919				66,921				32,481
Loans held for sale, at fair value	1,736,397				1,398,229				1,656,711				1,187,551				261,073
Loans, net of unearned income	14,503,157				13,094,106				12,818,476				12,826,284				9,049,870
Allowance for loan losses	(208,793)				(149,524)				(38,189)				(35,530)				(31,793)
Loans, net	14,294,364				12,944,582				12,780,287				12,790,754				9,018,077
Other real estate owned	23,563				21,027				19,500				20,710				14,675
Premises and equipment, net	230,118				231,347				233,102				239,428				141,378
Goodwill	928,005				931,947				931,637				911,488				501,140
Other intangible assets, net	80,354				85,955				91,586				97,328				52,437
Cash value of bank owned life insurance	175,011				176,239				175,270				174,442				105,064
Deferred income taxes, net	56,306				24,196				2,180				22,111				30,812
Other assets	311,454				323,827				259,886				282,149				120,052
Total assets	$	19,872,629			$	18,224,548			$	18,242,579			$	17,764,277			$	11,889,336
Liabilities
Deposits
Noninterest-bearing	$	5,595,868			$	4,226,253			$	4,199,448			$	4,077,856			$	2,771,443
Interest-bearing	9,993,950				9,618,365				9,827,625				9,581,738				6,810,927
Total deposits	15,589,818				13,844,618				14,027,073				13,659,594				9,582,370
Federal funds purchased and securities sold under agreements to repurchase	12,879				15,160				20,635				17,744				3,307
Other borrowings	1,418,336				1,543,371				1,398,709				1,351,172				564,636
Subordinated deferrable interest debentures	123,375				122,890				127,560				127,075				89,871
FDIC loss-share payable, net	18,903				18,111				19,642				19,490				20,596
Other liabilities	249,188				243,248				179,378				168,479				91,435
Total liabilities	17,412,499				15,787,398				15,772,997				15,343,554				10,352,215
Shareholders' Equity
Preferred stock	—				—				—				—				—
Common stock	71,674				71,652				71,500				71,447				49,099
Capital stock	1,909,839				1,908,721				1,907,108				1,904,789				1,053,500
Retained earnings	481,948				460,153				507,950				457,127				446,182
Accumulated other comprehensive income, net of tax	39,613				39,551				17,995				15,482				16,462
Treasury stock	(42,944)				(42,927)				(34,971)				(28,122)				(28,122)
Total shareholders' equity	2,460,130				2,437,150				2,469,582				2,420,723				1,537,121
Total liabilities and shareholders' equity	$	19,872,629			$	18,224,548			$	18,242,579			$	17,764,277			$	11,889,336
Other Data
Earning assets	$	17,983,712			$	16,324,222			$	16,321,373			$	15,858,175			$	10,804,385
Intangible assets	1,008,359				1,017,902				1,023,223				1,008,816				553,577
Interest-bearing liabilities	11,548,540				11,299,786				11,374,529				11,077,729				7,468,741
Average assets	19,222,181				18,056,445				17,998,494				17,340,387				11,625,344
Average common shareholders' equity	2,478,373				2,456,617				2,437,272				2,432,182				1,519,598

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Asset Quality Information	Table 4
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
Allowance for Credit Losses
Balance at beginning of period	$	167,315			$	39,266			$	36,607			$	31,793			$	28,659			$	39,266			$	28,819
CECL adoption impact on allowance for loan losses	—				78,661				—				—				—				78,661				—
CECL adoption impact on allowance for unfunded commitments	—				12,714				—				—				—				12,714				—
Total CECL adoption impact	—				91,375				—				—				—				91,375				—
Acquired allowance for unfunded commitments	—				—				—				1,077				—				—				—
Provision for loan losses	68,449				37,047				5,693				5,989				4,668				105,496				8,076
Provision for unfunded commitments	19,712				4,000				—				—				—				23,712				—
Provision for credit losses	88,161				41,047				5,693				5,989				4,668				129,208				8,076
Charge-offs	11,282				6,718				5,664				5,249				3,496				18,000				8,875
Recoveries	2,101				2,345				2,630				2,997				1,962				4,446				3,773
Net charge-offs	9,181				4,373				3,034				2,252				1,534				13,554				5,102
Ending balance	$	246,295			$	167,315			$	39,266			$	36,607			$	31,793			$	246,295			$	31,793
Allowance for loan losses	$	208,793			$	149,524			$	38,189			$	35,530			$	31,793			$	208,793			$	31,793
Allowance for unfunded commitments	37,502				17,791				1,077				1,077				—				37,502				—
Total allowance for credit losses	$	246,295			$	167,315			$	39,266			$	36,607			$	31,793			$	246,295			$	31,793
Net  Charge-off Information
Charge-offs
Commercial, financial and agricultural	$	486			$	2,486			$	1,813			$	490			$	473			$	2,972			$	1,157
Consumer installment	962				1,142				1,586				1,245				1,171				2,104				3,068
Indirect automobile	1,016				1,231				939				965				—				2,247				—
Mortgage warehouse	—				—				—				—				—				—				—
Municipal	—				—				—				—				—				—				—
Premium Finance	1,904				831				899				1,267				865				2,735				2,185
Real estate - construction and development	74				—				146				—				243				74				268
Real estate - commercial and farmland	6,315				928				181				1,318				589				7,243				1,843
Real estate - residential	525				100				100				37				155				625				354
Total charge-offs	11,282				6,718				5,664				5,322				3,496				18,000				8,875
Recoveries
Commercial, financial and agricultural	303				362				934				300				382				665				604
Consumer installment	777				643				640				476				289				1,420				504
Indirect automobile	18				22				60				385				—				40				—
Mortgage warehouse	—				—				—				—				—				—				—
Municipal	—				—				—				—				—				—				—
Premium Finance	676				684				358				736				650				1,360				1,660
Real estate - construction and development	168				342				430				930				268				510				385
Real estate - commercial and farmland	21				85				140				74				78				106				118
Real estate - residential	138				207				68				169				295				345				502
Total recoveries	2,101				2,345				2,630				3,070				1,962				4,446				3,773
Net charge-offs	$	9,181			$	4,373			$	3,034			$	2,252			$	1,534			$	13,554			$	5,102
Non-Performing Assets
Nonaccrual loans	$	77,745			$	77,866			$	75,124			$	100,501			$	41,479			$	77,745			$	41,479
Other real estate owned	23,563				21,027				19,500				20,710				14,675				23,563				14,675
Repossessed assets	1,348				783				939				1,258				—				1,348				—
Accruing loans delinquent 90 days or more	15,127				11,969				5,754				6,325				4,613				15,127				4,613
Total non-performing assets	$	117,783			$	111,645			$	101,317			$	128,794			$	60,767			$	117,783			$	60,767
Asset Quality Ratios
Non-performing assets as a percent of total assets	0.59		%		0.61		%		0.56		%		0.73		%		0.51		%		0.59		%		0.51		%
Net charge-offs as a percent of average loans (annualized)	0.27		%		0.14		%		0.09		%		0.07		%		0.07		%		0.20		%		0.12		%

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Loan Information	Table 5
	Jun				Mar				Dec				Sep				Jun
(dollars in thousands)	2020				2020				2019				2019				2019
Loans by Type
Commercial, financial and agricultural	$	1,839,921			$	827,392			$	802,171			$	931,755			$	703,290
Consumer installment	575,782				520,592				498,577				500,067				474,195
Indirect automobile	739,543				937,736				1,061,824				1,111,815				—
Mortgage warehouse	748,853				547,328				526,369				562,598				462,481
Municipal	731,508				749,633				564,304				578,267				583,558
Premium Finance	690,584				661,845				654,669				656,570				613,964
Real estate - construction and development	1,641,744				1,628,367				1,549,062				1,468,696				1,103,550
Real estate - commercial and farmland	4,804,420				4,516,451				4,353,039				4,198,759				3,182,213
Real estate - residential	2,730,802				2,704,762				2,808,461				2,817,757				1,926,619
Total loans	$	14,503,157			$	13,094,106			$	12,818,476			$	12,826,284			$	9,049,870
Troubled Debt Restructurings
Accruing troubled debt restructurings
Commercial, financial and agricultural	$	591			$	575			$	516			$	521			$	140
Consumer installment	42				4				8				9				10
Indirect automobile	—				—				—				—				—
Mortgage warehouse	—				—				—				—				—
Municipal	—				—				—				—				—
Premium Finance	—				159				156				159				191
Real estate - construction and development	919				925				936				948				1,124
Real estate - commercial and farmland	5,252				5,587				6,732				8,616				8,793
Real estate - residential	30,253				22,775				21,261				21,472				21,124
Total accruing troubled debt restructurings	$	37,057			$	30,025			$	29,609			$	31,725			$	31,382
Nonaccrual troubled debt restructurings
Commercial, financial and agricultural	$	1,034			$	334			$	335			$	144			$	162
Consumer installment	67				105				107				120				123
Indirect automobile	—				—				—				—				—
Mortgage warehouse	—				—				—				—				—
Municipal	—				—				—				—				—
Premium Finance	—				—				—				—				—
Real estate - construction and development	307				289				253				258				265
Real estate - commercial and farmland	1,878				2,415				2,071				1,958				2,109
Real estate - residential	2,231				3,078				2,857				2,103				1,760
Total nonaccrual troubled debt restructurings	$	5,517			$	6,221			$	5,623			$	4,583			$	4,419
Total troubled debt restructurings	$	42,574			$	36,246			$	35,232			$	36,308			$	35,801
Loans by Risk Grade
Grade 1 - Prime credit	$	1,789,709			$	774,956			$	587,877			$	613,281			$	622,034
Grade 2 - Strong credit	801,273				785,770				840,372				856,618				811,690
Grade 3 - Good credit	5,784,754				5,772,834				6,034,398				6,086,576				3,829,422
Grade 4 - Satisfactory credit	5,643,133				4,353,733				4,884,541				4,746,020				3,401,265
Grade 5 - Fair credit	212,667				1,131,128				233,020				252,424				211,229
Grade 6 - Other assets especially mentioned	108,704				106,885				86,412				114,235				64,075
Grade 7 - Substandard	162,917				168,561				151,846				157,114				110,152
Grade 8 - Doubtful	—				239				8				14				—
Grade 9 - Loss	—				—				2				2				3
Total loans	$	14,503,157			$	13,094,106			$	12,818,476			$	12,826,284			$	9,049,870

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Average Balances	Table 6
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
Earning Assets
Federal funds sold	$	24,265			$	27,380			$	23,104			$	28,459			$	41,683			$	25,822			$	36,515
Interest-bearing deposits in banks	398,284				419,260				304,427				324,127				341,937				408,772				404,311
Time deposits in other banks	249				249				401				548				3,792				249				6,989
Investment securities - taxable	1,281,980				1,359,651				1,426,062				1,514,534				1,233,297				1,320,815				1,210,225
Investment securities - nontaxable	21,576				22,839				23,580				23,759				15,288				22,208				19,688
Other investments	79,143				73,972				64,852				53,712				15,830				76,557				15,185
Loans held for sale	1,614,080				1,587,131				1,537,648				856,572				154,707				1,600,606				128,261
Loans	13,915,406				12,712,997				12,697,912				12,677,063				8,740,561				13,308,960				8,612,978
Total Earning Assets	$	17,334,983			$	16,203,479			$	16,077,986			$	15,478,774			$	10,547,095			$	16,763,989			$	10,434,152
Deposits
Noninterest-bearing deposits	$	5,061,578			$	4,080,920			$	4,124,872			$	4,040,592			$	2,723,843			$	4,571,249			$	2,634,937
NOW accounts	2,441,305				2,287,947				2,204,666				2,049,175				1,506,721				2,364,626				1,530,224
MMDA	4,221,906				4,004,644				3,953,717				3,815,185				2,655,108				4,113,275				2,666,001
Savings accounts	692,382				643,422				649,118				661,555				405,506				667,902				402,315
Retail CDs	2,471,134				2,624,209				2,721,829				2,804,243				1,962,422				2,547,671				1,927,474
Brokered CDs	2,043				61,190				249,644				150,176				486,292				31,617				498,230
Total Deposits	14,890,348				13,702,332				13,903,846				13,520,926				9,739,892				14,296,340				9,659,181
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	12,452				15,637				17,088				19,914				3,213				14,045				9,511
FHLB advances	1,212,537				1,267,303				1,080,516				810,384				22,390				1,239,920				14,368
Other borrowings	269,300				269,454				234,001				220,918				145,453				269,377				145,463
Subordinated deferrable interest debentures	123,120				127,731				127,292				133,519				89,686				125,426				89,516
Total Non-Deposit Funding	1,617,409				1,680,125				1,458,897				1,184,735				260,742				1,648,768				258,858
Total Funding	$	16,507,757			$	15,382,457			$	15,362,743			$	14,705,661			$	10,000,634			$	15,945,108			$	9,918,039

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Interest Income and Interest Expense (TE)	Table 7
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
Interest Income
Federal funds sold	$	45			$	76			$	69			$	171			$	257			$	121			$	436
Interest-bearing deposits in banks	122				1,210				1,089				1,620				2,260				1,332				5,359
Time deposits in other banks	1				1				2				2				16				2				67
Investment securities - taxable	9,346				10,082				10,358				11,354				9,383				19,428				18,426
Investment securities - nontaxable (TE)	198				199				212				213				129				397				327
Loans held for sale	14,053				13,637				14,330				7,889				1,632				27,690				2,784
Loans (TE)	162,617				158,636				169,119				168,239				116,413				321,253				228,678
Total Earning Assets	$	186,382			$	183,841			$	195,179			$	189,488			$	130,090			$	370,223			$	256,077
Accretion income (included above)	$	9,576			$	6,562			$	9,727			$	4,222			$	3,103			$	16,138			$	5,986
Interest Expense
Interest-Bearing Deposits
NOW accounts	$	1,265			$	2,774			$	2,728			$	2,843			$	2,260			$	4,039			$	4,369
MMDA	3,764				9,748				11,311				12,593				9,488				13,512				18,535
Savings accounts	94				210				233				274				85				304				162
Retail CDs	9,136				11,064				12,220				12,905				8,585				20,200				15,915
Brokered CDs	14				306				1,478				810				3,036				320				6,157
Total Interest-Bearing Deposits	14,273				24,102				27,970				29,425				23,454				38,375				45,138
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	25				40				41				32				2				65				13
FHLB advances	1,686				5,109				5,241				4,618				141				6,795				185
Other borrowings	3,487				3,511				3,358				3,332				2,210				6,998				4,437
Subordinated deferrable interest debentures	1,733				2,061				2,115				2,185				1,570				3,794				3,138
Total Non-Deposit Funding	6,931				10,721				10,755				10,167				3,923				17,652				7,773
Total Interest-Bearing Funding	$	21,204			$	34,823			$	38,725			$	39,592			$	27,377			$	56,027			$	52,911
Net Interest Income (TE)	$	165,178			$	149,018			$	156,454			$	149,896			$	102,713			$	314,196			$	203,166

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Yields(1)	Table 8
	Three Months Ended															Six Months Ended
	Jun			Mar			Dec			Sep			Jun			Jun			Jun
	2020			2020			2019			2019			2019			2020			2019
Earning Assets
Federal funds sold	0.75	%		1.12	%		1.18	%		2.38	%		2.47	%		0.94	%		2.41	%
Interest-bearing deposits in banks	0.12	%		1.16	%		1.42	%		1.98	%		2.65	%		0.66	%		2.67	%
Time deposits in other banks	1.62	%		1.62	%		1.98	%		1.45	%		1.69	%		1.62	%		1.93	%
Investment securities - taxable	2.93	%		2.98	%		2.88	%		2.97	%		3.05	%		2.96	%		3.07	%
Investment securities - nontaxable (TE)	3.69	%		3.50	%		3.57	%		3.56	%		3.38	%		3.59	%		3.35	%
Loans held for sale	3.50	%		3.46	%		3.70	%		3.65	%		4.23	%		3.48	%		4.38	%
Loans (TE)	4.70	%		5.02	%		5.28	%		5.27	%		5.34	%		4.85	%		5.35	%
Total Earning Assets	4.32	%		4.56	%		4.82	%		4.86	%		4.95	%		4.44	%		4.95	%
Interest-Bearing Deposits
NOW accounts	0.21	%		0.49	%		0.49	%		0.55	%		0.60	%		0.34	%		0.58	%
MMDA	0.36	%		0.98	%		1.14	%		1.31	%		1.43	%		0.66	%		1.40	%
Savings accounts	0.05	%		0.13	%		0.14	%		0.16	%		0.08	%		0.09	%		0.08	%
Retail CDs	1.49	%		1.70	%		1.78	%		1.83	%		1.75	%		1.59	%		1.67	%
Brokered CDs	2.76	%		2.01	%		2.35	%		2.14	%		2.50	%		2.04	%		2.49	%
Total Interest-Bearing Deposits	0.58	%		1.01	%		1.13	%		1.23	%		1.34	%		0.79	%		1.30	%
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	0.81	%		1.03	%		0.95	%		0.64	%		0.25	%		0.93	%		0.28	%
FHLB advances	0.56	%		1.62	%		1.92	%		2.26	%		2.53	%		1.10	%		2.60	%
Other borrowings	5.21	%		5.24	%		5.69	%		5.98	%		6.09	%		5.22	%		6.15	%
Subordinated deferrable interest debentures	5.66	%		6.49	%		6.59	%		6.49	%		7.02	%		6.08	%		7.07	%
Total Non-Deposit Funding	1.72	%		2.57	%		2.92	%		3.40	%		6.03	%		2.15	%		6.06	%
Total Interest-Bearing Liabilities	0.75	%		1.24	%		1.37	%		1.47	%		1.51	%		0.99	%		1.47	%
Net Interest Spread	3.57	%		3.32	%		3.45	%		3.39	%		3.44	%		3.45	%		3.48	%
Net Interest Margin(2)	3.83	%		3.70	%		3.86	%		3.84	%		3.91	%		3.77	%		3.93	%
Total Cost of Funds(3)	0.52	%		0.91	%		1.00	%		1.07	%		1.10	%		0.71	%		1.08	%
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21%.
(2) Rate calculated based on average earning assets.
(3) Rate calculated based on total average funding including noninterest-bearing deposits.

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Non-GAAP Reconciliations
Adjusted Net Income	Table 9A
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands except per share data)	2020				2020				2019				2019				2019				2020				2019
Net income available to common shareholders	$	32,236			$	19,322			$	61,248			$	21,384			$	38,904			$	51,558			$	78,809
Adjustment items:
Merger and conversion charges	895				540				2,415				65,158				3,475				1,435				5,532
Restructuring charges	1,463				—				—				—				—				1,463				245
Servicing right impairment (recovery)	7,989				22,165				366				(1,319)				1,460				30,154				1,460
Gain on BOLI proceeds	(845)				—				752				(4,335)				—				(845)				—
Expenses related to SEC/DOJ Investigation	1,294				1,443				463				—				—				2,737				—
Natural disaster and pandemic charges (Note 1)	2,043				548				—				—				50				2,591				(39)
Loss on sale of premises	281				470				1,413				889				2,800				751				3,719
Tax effect of adjustment items (Note 2)	(2,933)				(5,283)				(898)				(13,238)				(1,479)				(8,216)				(1,929)
After tax adjustment items	10,187				19,883				4,511				47,155				6,306				30,070				8,988
Tax expense attributable to acquisition related compensation and acquired BOLI	—				—				849				—				—				—				—
Adjusted net income	$	42,423			$	39,205			$	66,608			$	68,539			$	45,210			$	81,628			$	87,797
Weighted average number of shares - diluted	69,292,972				69,502,022				69,683,999				69,600,499				47,337,809				69,413,027				47,394,911
Net income per diluted share	$	0.47			$	0.28			$	0.88			$	0.31			$	0.82			$	0.74			$	1.66
Adjusted net income per diluted share	$	0.61			$	0.56			$	0.96			$	0.98			$	0.96			$	1.18			$	1.85
Average assets	$	19,222,181			$	18,056,445			$	17,998,494			$	17,340,387			$	11,625,344			$	18,649,746			$	11,525,068
Return on average assets	0.67		%		0.43		%		1.35		%		0.49		%		1.34		%		0.56		%		1.38		%
Adjusted return on average assets	0.89		%		0.87		%		1.47		%		1.57		%		1.56		%		0.88		%		1.54		%
Average common equity	$	2,478,373			$	2,456,617			$	2,437,272			$	2,432,182			$	1,519,598			$	2,486,140			$	1,499,144
Average tangible common equity	$	1,462,871			$	1,436,108			$	1,432,081			$	1,434,829			$	964,841			$	1,468,135			$	941,489
Return on average common equity	5.23		%		3.16		%		9.97		%		3.49		%		10.27		%		4.17		%		10.60		%
Adjusted return on average tangible common equity	11.66		%		10.98		%		18.45		%		18.95		%		18.79		%		11.18		%		18.81		%
Note 1:  Pandemic charges include "thank you" pay for certain employees, additional sanitizing expenses at our locations, protective equipment for our employees and branch locations, and additional equipment required to support our remote workforce.
Note 2:  A portion of the merger and conversion charges for all periods are nondeductible for tax purposes.

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Non-GAAP Reconciliations (continued)
Adjusted Efficiency Ratio (TE)	Table 9B
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
Adjusted Noninterest Expense
Total noninterest expense	$	155,768			$	138,053			$	122,564			$	192,697			$	81,251			$	293,821			$	156,676
Adjustment items:
Merger and conversion charges	(895)				(540)				(2,415)				(65,158)				(3,475)				(1,435)				(5,532)
Restructuring charges	(1,463)				—				—				—				—				(1,463)				(245)
Expenses related to SEC/DOJ Investigation	(1,294)				(1,443)				(463)				—				—				(2,737)				—
Natural disaster and pandemic charges	(2,043)				(548)				—				—				(50)				(2,591)				39
Loss on sale of premises	(281)				(470)				(1,413)				(889)				(2,800)				(751)				(3,719)
Adjusted noninterest expense	$	149,792			$	135,052			$	118,273			$	126,650			$	74,926			$	284,844			$	147,219
Total Revenue
Net interest income	$	163,814			$	147,945			$	155,351			$	148,769			$	101,651			$	311,759			$	201,046
Noninterest income	120,960				54,379				55,113				76,993				35,236				175,339				66,007
Total revenue	$	284,774			$	202,324			$	210,464			$	225,762			$	136,887			$	487,098			$	267,053
Adjusted Total Revenue
Net interest income (TE)	$	165,178			$	149,018			$	156,454			$	149,896			$	102,713			$	314,196			$	203,166
Noninterest income	120,960				54,379				55,113				76,993				35,236				175,339				66,007
Total revenue (TE)	286,138				203,397				211,567				226,889				137,949				489,535				269,173
Adjustment items:
(Gain) loss on securities	(14)				9				(1)				(4)				(69)				(5)				(135)
Loss (gain) on BOLI proceeds	(845)				—				752				(4,335)				—				(845)				—
Servicing right impairment (recovery)	7,989				22,165				366				(1,319)				1,460				30,154				1,460
Adjusted total revenue (TE)	$	293,268			$	225,571			$	212,684			$	221,231			$	139,340			$	518,839			$	270,498
Efficiency ratio	54.70		%		68.23		%		58.24		%		85.35		%		59.36		%		60.32		%		58.67		%
Adjusted efficiency ratio (TE)	51.08		%		59.87		%		55.61		%		57.25		%		53.77		%		54.90		%		54.43		%
Tangible Book Value Per Share	Table 9C
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands except per share data)	2020				2020				2019				2019				2019				2020				2019
Total shareholders' equity	$	2,460,130			$	2,437,150			$	2,469,582			$	2,420,723			$	1,537,121			$	2,460,130			$	1,537,121
Less:
Goodwill	928,005				931,947				931,637				911,488				501,140				928,005				501,140
Other intangibles, net	80,354				85,955				91,586				97,328				52,437				80,354				52,437
Total tangible shareholders' equity	$	1,451,771			$	1,419,248			$	1,446,359			$	1,411,907			$	983,544			$	1,451,771			$	983,544
Period end number of shares	69,461,968				69,441,274				69,503,833				69,593,833				47,261,584				69,461,968				47,261,584
Book value per share (period end)	$	35.42			$	35.10			$	35.53			$	34.78			$	32.52			$	35.42			$	32.52
Tangible book value per share (period end)	$	20.90			$	20.44			$	20.81			$	20.29			$	20.81			$	20.90			$	20.81

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Segment Reporting	Table 10
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
Banking Division
Net interest income	$	120,330			$	118,375			$	124,957			$	124,262			$	84,755			$	238,705			$	169,794
Provision for credit losses	86,805				35,997				4,741				3,549				2,306				122,802				4,364
Noninterest income	14,468				17,773				18,632				21,173				14,830				32,241				29,200
Noninterest expense
Salaries and employee benefits	40,423				41,621				38,180				39,794				24,228				82,044				52,160
Occupancy and equipment expenses	11,679				10,347				10,216				10,750				7,034				22,026				14,315
Data processing and telecommunications expenses	8,919				10,797				10,156				9,551				7,635				19,716				15,227
Other noninterest expenses	27,997				30,645				23,176				87,059				22,728				58,642				39,684
Total noninterest expense	89,018				93,410				81,728				147,154				61,625				182,428				121,386
Income before income tax expense	(41,025)				6,741				57,120				(5,268)				35,654				(34,284)				73,244
Income tax expense (benefit)	(8,582)				275				15,412				(1,269)				8,691				(8,307)				17,466
Net income (loss)	$	(32,443)			$	6,466			$	41,708			$	(3,999)			$	26,963			$	(25,977)			$	55,778
Retail Mortgage Division
Net interest income	$	24,302			$	17,756			$	18,223			$	13,009			$	7,567			$	42,058			$	13,320
Provision for credit losses	423				1,997				1,237				1,490				609				2,420				745
Noninterest income	104,195				34,369				33,335				52,493				18,070				138,564				32,360
Noninterest expense
Salaries and employee benefits	50,003				31,097				28,233				34,144				11,886				81,100				20,093
Occupancy and equipment expenses	1,953				1,504				1,544				1,686				670				3,457				1,436
Data processing and telecommunications expenses	1,406				986				1,034				660				394				2,392				724
Other noninterest expenses	6,949				5,875				4,553				3,484				2,385				12,824				4,499
Total noninterest expense	60,311				39,462				35,364				39,974				15,335				99,773				26,752
Income before income tax expense	67,763				10,666				14,957				24,038				9,693				78,429				18,183
Income tax expense	14,231				2,408				3,371				5,048				2,170				16,639				3,783
Net income	$	53,532			$	8,258			$	11,586			$	18,990			$	7,523			$	61,790			$	14,400
Warehouse Lending Division
Net interest income	$	5,026			$	3,302			$	3,771			$	3,169			$	2,987			$	8,328			$	5,677
Provision for credit losses	403				(9)				67				—				—				394				—
Noninterest income	727				960				610				560				450				1,687				829
Noninterest expense
Salaries and employee benefits	209				210				325				286				162				419				323
Occupancy and equipment expenses	1				1				1				2				1				2				2
Data processing and telecommunications expenses	55				41				47				41				38				96				68
Other noninterest expenses	88				34				53				27				75				122				143
Total noninterest expense	353				286				426				356				276				639				536
Income before income tax expense	4,997				3,985				3,888				3,373				3,161				8,982				5,970
Income tax expense	1,049				837				816				708				664				1,886				1,254
Net income	$	3,948			$	3,148			$	3,072			$	2,665			$	2,497			$	7,096			$	4,716

 

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Segment Reporting (continued)	Table 10
	Three Months Ended																				Six Months Ended
	Jun				Mar				Dec				Sep				Jun				Jun				Jun
(dollars in thousands)	2020				2020				2019				2019				2019				2020				2019
SBA Division
Net interest income	$	7,034			$	2,181			$	2,190			$	2,573			$	1,182			$	9,215			$	2,268
Provision for credit losses	2,322				(903)				150				(15)				178				1,419				409
Noninterest income	1,570				1,277				2,536				2,766				1,883				2,847				3,613
Noninterest expense
Salaries and employee benefits	2,612				1,476				1,336				1,985				735				4,088				1,462
Occupancy and equipment expenses	97				97				79				66				65				194				124
Data processing and telecommunications expenses	15				13				5				22				3				28				5
Other noninterest expenses	359				515				402				503				359				874				746
Total noninterest expense	3,083				2,101				1,822				2,576				1,162				5,184				2,337
Income before income tax expense	3,199				2,260				2,754				2,778				1,725				5,459				3,135
Income tax expense	671				475				578				584				362				1,146				658
Net income	$	2,528			$	1,785			$	2,176			$	2,194			$	1,363			$	4,313			$	2,477
Premium Finance Division
Net interest income	$	7,122			$	6,331			$	6,210			$	5,756			$	5,160			$	13,453			$	9,987
Provision for credit losses	(1,792)				3,965				(502)				965				1,575				2,173				2,558
Noninterest income	—				—				—				1				3				—				5
Noninterest expense
Salaries and employee benefits	1,921				1,542				1,568				1,424				1,320				3,463				2,625
Occupancy and equipment expenses	77				79				79				135				64				156				161
Data processing and telecommunications expenses	119				117				120				98				318				236				755
Other noninterest expenses	886				1,056				1,457				980				1,151				1,942				2,124
Total noninterest expense	3,003				2,794				3,224				2,637				2,853				5,797				5,665
(Loss) income before income tax expense	5,911				(428)				3,488				2,155				735				5,483				1,769
Income tax expense (benefit)	1,240				(93)				782				621				177				1,147				331
Net (loss) income	$	4,671			$	(335)			$	2,706			$	1,534			$	558			$	4,336			$	1,438
Total Consolidated
Net interest income	$	163,814			$	147,945			$	155,351			$	148,769			$	101,651			$	311,759			$	201,046
Provision for credit losses	88,161				41,047				5,693				5,989				4,668				129,208				8,076
Noninterest income	120,960				54,379				55,113				76,993				35,236				175,339				66,007
Noninterest expense
Salaries and employee benefits	95,168				75,946				69,642				77,633				38,331				171,114				76,663
Occupancy and equipment expenses	13,807				12,028				11,919				12,639				7,834				25,835				16,038
Data processing and telecommunications expenses	10,514				11,954				11,362				10,372				8,388				22,468				16,779
Other noninterest expenses	36,279				38,125				29,641				92,053				26,698				74,404				47,196
Total noninterest expense	155,768				138,053				122,564				192,697				81,251				293,821				156,676
Income before income tax expense	40,845				23,224				82,207				27,076				50,968				64,069				102,301
Income tax expense	8,609				3,902				20,959				5,692				12,064				12,511				23,492
Net income	$	32,236			$	19,322			$	61,248			$	21,384			$	38,904			$	51,558			$	78,809

 

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SOURCE Ameris Bancorp

FAQ

What were Ameris Bancorp's earnings for Q2 2020?

Ameris Bancorp reported a net income of $32.2 million, or $0.47 per diluted share for Q2 2020.

How does Ameris Bancorp's adjusted net income for Q2 2020 compare to the same period in 2019?

Adjusted net income for Q2 2020 was $42.4 million, down from $45.2 million in Q2 2019.

What is the outlook for Ameris Bancorp following the Q2 2020 results?

The company has increased its allowance for credit losses to over $208 million, indicating a cautious outlook in light of economic challenges.

How did Ameris Bancorp's mortgage banking activity perform in Q2 2020?

Mortgage banking activity increased by 197%, reaching $104.9 million in Q2 2020 compared to Q1 2020.

What is the current state of Ameris Bancorp's loan growth?

Ameris Bancorp funded over $1.4 billion in new loans during Q2 2020, including PPP loans.