Ameris Bancorp Announces Financial Results For Third Quarter 2020

Rhea-AI Summary

Ameris Bancorp (ABCB) reported a substantial net income of $116.1 million, or $1.67 per diluted share, for Q3 2020, up from $21.4 million, or $0.31 per diluted share, in Q3 2019. The growth is attributed to increased mortgage banking activity of $85.6 million and net interest income of $13.8 million, despite a rise in credit loss provisions of $11.7 million. Year-to-date, net income reached $167.7 million, or $2.42 per diluted share, compared to $100.2 million, or $1.83 in 2019. The outlook remains optimistic as the company adapts to market changes.

Positive

• Net income increased to $116.1 million for Q3 2020 from $21.4 million in Q3 2019.
• Adjusted net income rose to $116.9 million, or $1.69 per diluted share, compared to $68.5 million in the previous year.
• Growth in mortgage banking activity increased by $85.6 million, boosting revenue.
• Total assets reached $19.87 billion, signifying a strong balance sheet.

Negative

• Provision for credit losses increased by $11.7 million compared to Q3 2019.
• Net interest margin decreased to 3.64% from 3.83% in the previous quarter.

ATLANTA, Oct. 22, 2020 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $116.1 million, or $1.67 per diluted share, for the quarter ended September 30, 2020, compared with $21.4 million, or $0.31 per diluted share, for the quarter ended September 30, 2019.  The increase in net income is primarily attributable to increases in mortgage banking activity of $85.6 million and net interest income of $13.8 million and a decrease of merger and conversion charges of $65.2 million, partially offset by an increase of $11.7 million in provision for credit losses compared with the third quarter of 2019.  The Company reported adjusted net income of $116.9 million, or $1.69 per diluted share, for the quarter ended September 30, 2020, compared with $68.5 million, or $0.98 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, (gain) loss on sale of bank premises and expenses related to natural disasters and the COVID-19 pandemic.

For the year-to-date period ending September 30, 2020, the Company reported net income of $167.7 million, or $2.42 per diluted share, compared with $100.2 million, or $1.83 per diluted share, for the same period in 2019.  The Company reported adjusted net income of $198.5 million, or $2.86 per diluted share, for the nine months ended September 30, 2020, compared with $156.3 million, or $2.85 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, "I couldn't be more proud of our Company and the financial results we are reporting this quarter.  Every division of our Company increased their financial performance in the third quarter, which resulted in record earnings and top of class results.  Throughout this pandemic, Ameris teammates have remained focused on our customers and our communities.  We continue to adapt to this new environment by offering innovative products and services which strengthens our relationships and our financial results.  Our outlook remains optimistic for the remainder of 2020 and beyond."

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

• Net income of $116.1 million, or $1.67 per diluted share, compared with $32.2 million, or $0.47 per diluted share, in the second quarter of 2020
• Tangible book value growth of $1.56 per share, or 7.5%, to $22.46 compared with $20.90 at June 30, 2020
• Growth in adjusted total revenue of $30.0 million, or 10.2%, compared with the second quarter of 2020
• Increase in income from mortgage banking activity of $33.7 million compared with the second quarter of 2020
• Adjusted efficiency ratio of 47.34%, compared with 51.08% in the second quarter of 2020
• Net interest margin of 3.64%, compared with 3.83% in the second quarter of 2020
• Adjusted return on average assets of 2.35%, compared with 0.89% in the second quarter of 2020
• Improvement in deposit mix such that noninterest bearing deposits represent 36.79% of total deposits, up from 29.94% at December 31, 2019 and 29.85% a year ago
• Annualized net charge-offs of 0.10% of average total loans
• Completed issuance of $110 million of subordinated debt at 3.875% fixed for first five years

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

Adjusted Net Income Reconciliation
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
(dollars in thousands, except per share data)	2020				2019				2020				2019
Net income available to common shareholders	$	116,145			$	21,384			$	167,703			$	100,193
Adjustment items:
Merger and conversion charges	(44)				65,158				1,391				70,690
Restructuring charges	50				—				1,513				245
Servicing right impairment (recovery)	412				(1,319)				30,566				141
Gain on BOLI proceeds	(103)				(4,335)				(948)				(4,335)
Expenses related to SEC and DOJ investigation	268				—				3,005				—
Natural disaster and pandemic charges (Note 1)	470				—				3,061				(39)
(Gain) loss on sale of premises	(97)				889				654				4,608
Tax effect of adjustment items (Note 2)	(222)				(13,238)				(8,438)				(15,167)
After-tax adjustment items	734				47,155				30,804				56,143
Adjusted net income	$	116,879			$	68,539			$	198,507			$	156,336
Reported net income per diluted share	$	1.67			$	0.31			$	2.42			$	1.83
Adjusted net income per diluted share	$	1.69			$	0.98			$	2.86			$	2.85
Reported return on average assets	2.33		%		0.49		%		1.18		%		0.99		%
Adjusted return on average assets	2.35		%		1.57		%		1.39		%		1.55		%
Reported return on average common equity	18.27		%		3.49		%		8.96		%		7.39		%
Adjusted return on average tangible common equity	30.53		%		18.95		%		17.84		%		18.87		%
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 3Q19 and both year-to-date periods are nondeductible for tax purposes.

Net Interest Income and Net Interest Margin

Net interest income on a tax-equivalent basis for the third quarter of 2020 totaled $163.9 million, compared with $165.2 million for the second quarter of 2020 and $149.9 million for the third quarter of 2019.  The Company's net interest margin was 3.64% for the third quarter of 2020, down from 3.83% reported for the second quarter of 2020 and from 3.84% reported for the third quarter of 2019.  The decrease in net interest margin in the current quarter is primarily attributable to a decrease in the yields on both loans and loans held for sale as market interest rates declined, partially offset by a decrease in the cost of interest-bearing liabilities.  Accretion income for the third quarter of 2020 decreased to $6.5 million, compared with $9.6 million for the second quarter of 2020, and increased from $4.2 million for the third quarter of 2019.  The decrease in accretion income in the third quarter is primarily attributable to increased payoffs of acquired loans during the second quarter of 2020. 

Yields on loans decreased to 4.42% during the third quarter of 2020, compared with 4.70% for the second quarter of 2020 and 5.27% reported for the third quarter of 2019.  Loan production in the banking division during the third quarter of 2020 totaled $869.0 million, with weighted average yields of 4.00%, compared with $472.1 million and 4.16%, respectively, in the second quarter of 2020 and $1.2 billion and 5.08%, respectively, in the third quarter of 2019.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $7.7 billion during the third quarter of 2020, with weighted average yields of 3.33%, compared with $7.2 billion and 3.17%, respectively, during the second quarter of 2020 and $4.2 billion and 4.51%, respectively, during the third quarter of 2019.  Loan production yields in the lines of business were materially impacted during the second quarter of 2020 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 third quarter of 2020 decreased to $17.4 million, compared with $21.2 million in the second quarter of 2020 and $39.6 million in the third quarter of 2019.  The Company's total cost of funds moved 11 basis points lower to 0.41% in the third quarter of 2020 as compared with the second quarter of 2020.  Deposit costs decreased nine basis points during the third quarter of 2020 to 0.30%, compared with 0.39% in the second quarter of 2020.  Costs of interest-bearing deposits decreased during the quarter from 0.58% in the second quarter of 2020 to 0.47% in the third quarter of 2020.

Noninterest Income

Noninterest income increased $38.1 million, or 31.5%, in the third quarter of 2020 to $159.0 million, compared with $121.0 million for the second quarter of 2020, primarily as a result of increased mortgage banking activity. 

Mortgage banking activity increased $33.7 million, or 32.1%, to $138.6 million in the third quarter of 2020, compared with $104.9 million for the second 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 3.92% in the third quarter of 2020 from 3.53% for the second quarter of 2020. Total production in the retail mortgage division increased to $2.92 billion in the third quarter of 2020, compared with $2.67 billion for the second quarter of 2020. Mortgage banking activity was negatively impacted during the third quarter of 2020 by an $1.1 million servicing right impairment, compared with an impairment of $8.2 million for the second quarter of 2020. The retail mortgage open pipeline was $2.71 billion at the end of the third quarter of 2020, compared with $2.67 billion at June 30, 2020.

Service charge revenue increased $1.0 million, or 10.0%, to $10.9 million in the third quarter of 2020, compared with $9.9 million for the second quarter of 2020, resulting from an increase in volume. Other noninterest income increased $3.4 million, or 67.6%, in the third quarter of 2020 to $8.3 million, compared with $5.0 million for the second quarter of 2020, primarily as a result of an increase in the gain on sales of SBA loans of $2.8 million, as the SBA division shifted its focus from PPP loan production to its existing pipeline. 

Noninterest Expense

Noninterest expense decreased $2.1 million, or 1.3%, to $153.7 million during the third quarter of 2020, compared with $155.8 million for the second quarter of 2020.  During the third quarter of 2020, the Company recorded $647,000 of charges to earnings, related to restructuring charges associated with branch consolidations and efficiency initiatives, charges related to the previously announced SEC/DOJ investigation, merger and conversion charges, natural disaster and pandemic charges and (gain) loss on sale of premises, compared with $6.0 million in charges in the second quarter of 2020 that were related the same items.  Excluding these charges, adjusted expenses increased approximately $3.3 million, or 2.2%, to $153.0 million in the third quarter of 2020, from $149.8 million in the second 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 51.08% in the second quarter of 2020 to 47.34% in the third quarter of 2020.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2020 was 22.7%, compared with 21.1% in the second quarter of 2020. The increased rate for the third quarter of 2020 was primarily a result of increased state tax expense as a result of increased pre-tax income.

Balance Sheet Trends

Total assets at September 30, 2020 were $19.87 billion, compared with $18.24 billion at December 31, 2019.  Total loans, including loans held for sale, were $16.36 billion at September 30, 2020, compared with $14.48 billion at December 31, 2019.  Total loans held for investment were $14.94 billion at September 30, 2020, compared with $12.82 billion at December 31, 2019, an increase of $2.13 billion, or 16.6%, compared with December 31, 2019.  Loan production in the banking division during the third quarter of 2020 was up 84% from the second quarter of 2020 and down 26% from the third quarter of 2019.  Loan growth in the first nine months of 2020 was driven by PPP loan originations, which totaled $1.10 billion in outstanding balances at September 30, 2020, and increases in warehouse lending and portfolio mortgage loans. 

At September 30, 2020, total deposits amounted to $16.06 billion, or 94.1% of total funding, compared with $14.03 billion and 90.1%, respectively, at December 31, 2019.  At September 30, 2020, noninterest-bearing deposit accounts were $5.91 billion, or 36.8% 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 originations.  Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $9.56 billion at September 30, 2020, compared with $7.21 billion at December 31, 2019.  These funds represented 59.5% of the Company's total deposits at September 30, 2020, compared with 51.4% at the end of 2019.

Shareholders' equity at September 30, 2020 totaled $2.56 billion, an increase of $95.1 million, or 3.9%, from December 31, 2019.  The increase in shareholders' equity was primarily the result of earnings of $167.7 million during 2020, partially offset by the CECL adoption impact of $56.7 million and dividends declared.  Tangible book value per share was $22.46 at September 30, 2020, compared with $20.81 at December 31, 2019.  Tangible common equity as a percentage of tangible assets was 8.27% at September 30, 2020, compared with 8.40% at the end of the 2019.

Credit Quality

Credit quality remains strong in the Company.  During the third quarter of 2020, the Company recorded provision for credit losses of $17.7 million, compared with $88.2 million in the second quarter of 2020.  This decrease in provision was primarily attributable to improvements in forecast economic conditions, particularly levels of unemployment and GDP, compared with forecast conditions during the second quarter of 2020.  The improved economic forecast was partially offset by increased qualitative factors in our residential real estate, commercial real estate and hotel portfolios based principally on risk rating migrations, level of deferrals in the portfolio and expected collateral values.  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 an ongoing basis, such that loans remaining on deferral at the end of the third quarter of 2020 was approximately 4.3% of total loans, down from approximately 19.0% of total loans at the end of the second quarter of 2020.  Nonperforming assets as a percentage of total assets increased by 23 basis points to 0.82% during the quarter.  The increase in nonperforming assets is primarily attributable to increased nonaccrual loans in the residential real estate and commercial real estate loan categories.  The net charge-off ratio was 10 basis points for the third quarter of 2020, compared with 27 basis points in the second quarter of 2020 and seven basis points in the third quarter of 2019.

Share Repurchase Program

The Company's board of directors has also approved the extension of the share repurchase program authorized in September 2019, under which the Company was authorized to repurchase up to $100 million of its outstanding common stock.  As extended, the program now allows for repurchases of shares to occur through October 31, 2021.  Currently, $85,723,412 in aggregate value remains for repurchase under the program.

Conference Call

The Company will host a teleconference at 9:00 a.m. Eastern time Friday, October 23, 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 November 6, 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 10148491.  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																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands except per share data)	2020				2020				2020				2019				2019				2020				2019
EARNINGS
Net income	$	116,145			$	32,236			$	19,322			$	61,248			$	21,384			$	167,703			$	100,193
Adjusted net income	$	116,879			$	42,423			$	39,205			$	66,608			$	68,539			$	198,507			$	156,336
COMMON SHARE DATA
Earnings per share available to common shareholders
Basic	$	1.68			$	0.47			$	0.28			$	0.88			$	0.31			$	2.42			$	1.83
Diluted	$	1.67			$	0.47			$	0.28			$	0.88			$	0.31			$	2.42			$	1.83
Adjusted diluted EPS	$	1.69			$	0.61			$	0.56			$	0.96			$	0.98			$	2.86			$	2.85
Cash dividends per share	$	0.15			$	0.15			$	0.15			$	0.15			$	0.15			$	0.45			$	0.35
Book value per share (period end)	$	36.91			$	35.42			$	35.10			$	35.53			$	34.78			$	36.91			$	34.78
Tangible book value per share (period end)	$	22.46			$	20.90			$	20.44			$	20.81			$	20.29			$	22.46			$	20.29
Weighted average number of shares
Basic	69,230,667				69,191,778				69,247,661				69,429,193				69,372,125				69,243,280				54,762,216
Diluted	69,346,141				69,292,972				69,502,022				69,683,999				69,600,499				69,403,104				54,883,122
Period end number of shares	69,490,546				69,462,782				69,441,274				69,503,833				69,593,833				69,490,546				69,593,833
Market data
High intraday price	$	27.81			$	29.82			$	43.79			$	44.90			$	40.65			$	43.79			$	42.01
Low intraday price	$	19.91			$	17.12			$	17.89			$	38.34			$	33.71			$	17.12			$	31.27
Period end closing price	$	22.78			$	23.59			$	23.76			$	42.54			$	40.24			$	22.78			$	40.24
Average daily volume	359,059				470,151				461,692				353,783				461,289				429,758				401,050
PERFORMANCE RATIOS
Return on average assets	2.33		%		0.67		%		0.43		%		1.35		%		0.49		%		1.18		%		0.99		%
Adjusted return on average assets	2.35		%		0.89		%		0.87		%		1.47		%		1.57		%		1.39		%		1.55		%
Return on average common equity	18.27		%		5.23		%		3.16		%		9.97		%		3.49		%		8.96		%		7.39		%
Adjusted return on average tangible common equity	30.53		%		11.66		%		10.98		%		18.45		%		18.95		%		17.84		%		18.87		%
Earning asset yield (TE)	4.02		%		4.32		%		4.56		%		4.82		%		4.86		%		4.29		%		4.91		%
Total cost of funds	0.41		%		0.52		%		0.91		%		1.00		%		1.07		%		0.60		%		1.07		%
Net interest margin (TE)	3.64		%		3.83		%		3.70		%		3.86		%		3.84		%		3.72		%		3.89		%
Noninterest income excluding securities transactions, as a percent of total revenue (TE)	46.72		%		39.35		%		22.83		%		22.02		%		28.89		%		37.74		%		24.27		%
Efficiency ratio	47.80		%		54.70		%		68.23		%		58.24		%		85.35		%		55.34		%		70.89		%
Adjusted efficiency ratio (TE)	47.34		%		51.08		%		59.87		%		55.61		%		57.25		%		52.00		%		55.70		%
CAPITAL ADEQUACY (period end)
Shareholders' equity to assets	12.90		%		12.38		%		13.37		%		13.54		%		13.63		%		12.90		%		13.63		%
Tangible common equity to tangible assets	8.27		%		7.70		%		8.25		%		8.40		%		8.43		%		8.27		%		8.43		%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets	8.27		%		7.70		%		8.25		%		8.40		%		8.43		%		8.27		%		8.43		%
Effect of goodwill and other intangibles	4.63		%		4.68		%		5.12		%		5.14		%		5.20		%		4.63		%		5.20		%
Equity to assets (GAAP)	12.90		%		12.38		%		13.37		%		13.54		%		13.63		%		12.90		%		13.63		%
OTHER DATA (period end)
Full time equivalent employees
Banking Division	1,807				1,832				1,865				1,913				2,001				1,807				2,001
Retail Mortgage Division	734				692				689				690				785				734				785
Warehouse Lending Division	11				9				9				9				9				11				9
SBA Division	33				42				44				42				45				33				45
Premium Finance Division	71				70				72				68				66				71				66
Total Ameris Bancorp FTE headcount	2,656				2,645				2,679				2,722				2,906				2,656				2,906
Assets per Banking Division FTE	$	10,998			$	10,848			$	9,772			$	9,536			$	8,878			$	10,998			$	8,878
Branch locations	170				170				170				170				172				170				172
Deposits per branch location	$	94,493			$	91,705			$	81,439			$	82,512			$	79,416			$	94,493			$	79,416

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Income Statement	Table 2
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands except per share data)	2020				2020				2020				2019				2019				2020				2019
Interest income
Interest and fees on loans	$	172,351			$	175,345			$	171,242			$	182,391			$	175,046			$	518,938			$	404,457
Interest on taxable securities	7,259				9,347				10,082				10,358				11,354				26,688				29,780
Interest on nontaxable securities	159				157				157				167				168				473				426
Interest on deposits in other banks	153				123				1,211				1,091				1,622				1,487				7,048
Interest on federal funds sold	12				46				76				69				171				134				607
Total interest income	179,934				185,018				182,768				194,076				188,361				547,720				442,318
Interest expense
Interest on deposits	11,822				14,273				24,102				27,970				29,425				50,197				74,563
Interest on other borrowings	5,574				6,931				10,721				10,755				10,167				23,226				17,940
Total interest expense	17,396				21,204				34,823				38,725				39,592				73,423				92,503
Net interest income	162,538				163,814				147,945				155,351				148,769				474,297				349,815
Provision for loan losses	26,692				68,449				37,047				5,693				5,989				132,188				14,065
Provision for unfunded commitments	(10,131)				19,712				4,000				—				—				13,581				—
Provision for other credit losses	1,121				—				—				—				—				1,121				—
Provision for credit losses	17,682				88,161				41,047				5,693				5,989				146,890				14,065
Net interest income after provision for credit losses	144,856				75,653				106,898				149,658				142,780				327,407				335,750
Noninterest income
Service charges on deposits accounts	10,914				9,922				11,844				13,567				13,411				32,680				37,225
Mortgage banking activity	138,627				104,925				35,333				33,168				53,041				278,885				86,241
Other service charges, commissions and fees	1,151				1,130				1,128				1,085				1,236				3,409				2,828
Gain (loss) on securities	—				14				(9)				(1)				4				5				139
Other noninterest income	8,326				4,969				6,083				7,294				9,301				19,378				16,567
Total noninterest income	159,018				120,960				54,379				55,113				76,993				334,357				143,000
Noninterest expense
Salaries and employee benefits	96,698				95,168				75,946				69,642				77,633				267,812				154,296
Occupancy and equipment expenses	13,805				13,807				12,028				11,919				12,639				39,640				28,677
Data processing and telecommunications expenses	12,226				10,514				11,954				11,362				10,372				34,694				27,151
Credit resolution related expenses(1)	802				950				2,198				1,098				1,094				3,950				2,984
Advertising and marketing expenses	966				1,455				2,358				2,250				1,949				4,779				5,677
Amortization of intangible assets	4,190				5,601				5,631				5,741				5,719				15,422				11,972
Merger and conversion charges	(44)				895				540				2,415				65,158				1,391				70,690
Other noninterest expenses	25,049				27,378				27,398				18,137				18,133				79,825				47,926
Total noninterest expense	153,692				155,768				138,053				122,564				192,697				447,513				349,373
Income before income tax expense	150,182				40,845				23,224				82,207				27,076				214,251				129,377
Income tax expense	34,037				8,609				3,902				20,959				5,692				46,548				29,184
Net income	$	116,145			$	32,236			$	19,322			$	61,248			$	21,384			$	167,703			$	100,193
Diluted earnings per common share	$	1.67			$	0.47			$	0.28			$	0.88			$	0.31			$	2.42			$	1.83
(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
	Sep				Jun				Mar				Dec				Sep
(dollars in thousands)	2020				2020				2020				2019				2019
Assets
Cash and due from banks	$	257,026			$	292,899			$	255,312			$	246,234			$	193,976
Federal funds sold and interest-bearing deposits in banks	494,765				428,560				396,844				375,615				285,713
Time deposits in other banks	249				249				249				249				499
Investment securities available for sale, at fair value	1,117,436				1,238,896				1,353,040				1,403,403				1,491,207
Other investments	47,329				76,453				81,754				66,919				66,921
Loans held for sale, at fair value	1,414,889				1,736,397				1,398,229				1,656,711				1,187,551
Loans, net of unearned income	14,943,593				14,503,157				13,094,106				12,818,476				12,826,284
Allowance for loan losses	(231,924)				(208,793)				(149,524)				(38,189)				(35,530)
Loans, net	14,711,669				14,294,364				12,944,582				12,780,287				12,790,754
Other real estate owned	17,969				23,563				21,027				19,500				20,710
Premises and equipment, net	231,278				230,118				231,347				233,102				239,428
Goodwill	928,005				928,005				931,947				931,637				911,488
Other intangible assets, net	76,164				80,354				85,955				91,586				97,328
Cash value of bank owned life insurance	175,605				175,011				176,239				175,270				174,442
Deferred income taxes, net	53,039				56,306				24,196				2,180				22,111
Other assets	348,428				311,454				323,827				259,886				282,149
Total assets	$	19,873,851			$	19,872,629			$	18,224,548			$	18,242,579			$	17,764,277
Liabilities
Deposits
Noninterest-bearing	$	5,909,316			$	5,595,868			$	4,226,253			$	4,199,448			$	4,077,856
Interest-bearing	10,154,490				9,993,950				9,618,365				9,827,625				9,581,738
Total deposits	16,063,806				15,589,818				13,844,618				14,027,073				13,659,594
Federal funds purchased and securities sold under agreements to repurchase	9,103				12,879				15,160				20,635				17,744
Other borrowings	875,255				1,418,336				1,543,371				1,398,709				1,351,172
Subordinated deferrable interest debentures	123,860				123,375				122,890				127,560				127,075
FDIC loss-share payable, net	19,476				18,903				18,111				19,642				19,490
Other liabilities	217,668				249,188				243,248				179,378				168,479
Total liabilities	17,309,168				17,412,499				15,787,398				15,772,997				15,343,554
Shareholders' Equity
Preferred stock	—				—				—				—				—
Common stock	71,703				71,674				71,652				71,500				71,447
Capital stock	1,911,031				1,909,839				1,908,721				1,907,108				1,904,789
Retained earnings	587,657				481,948				460,153				507,950				457,127
Accumulated other comprehensive income, net of tax	37,252				39,613				39,551				17,995				15,482
Treasury stock	(42,960)				(42,944)				(42,927)				(34,971)				(28,122)
Total shareholders' equity	2,564,683				2,460,130				2,437,150				2,469,582				2,420,723
Total liabilities and shareholders' equity	$	19,873,851			$	19,872,629			$	18,224,548			$	18,242,579			$	17,764,277
Other Data
Earning assets	$	18,018,261			$	17,983,712			$	16,324,222			$	16,321,373			$	15,858,175
Intangible assets	1,004,169				1,008,359				1,017,902				1,023,223				1,008,816
Interest-bearing liabilities	11,162,708				11,548,540				11,299,786				11,374,529				11,077,729
Average assets	19,810,084				19,222,181				18,056,445				17,998,494				17,340,387
Average common shareholders' equity	2,529,471				2,478,373				2,456,617				2,437,272				2,432,182

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Asset Quality Information	Table 4
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Allowance for Credit Losses
Balance at beginning of period	$	246,295			$	167,315			$	39,266			$	36,607			$	31,793			$	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				—				1,077
Provision for loan losses	26,692				68,449				37,047				5,693				5,989				132,188				14,065
Provision for unfunded commitments	(10,131)				19,712				4,000				—				—				13,581				—
Provision for other credit losses	1,121				—				—				—				—				1,121				—
Provision for credit losses	17,682				88,161				41,047				5,693				5,989				146,890				14,065
Charge-offs	7,370				11,282				6,718				5,664				5,249				25,370				14,197
Recoveries	3,810				2,101				2,345				2,630				2,997				8,256				6,843
Net charge-offs	3,560				9,181				4,373				3,034				2,252				17,114				7,354
Ending balance	$	260,417			$	246,295			$	167,315			$	39,266			$	36,607			$	260,417			$	36,607
Allowance for loan losses	$	231,924			$	208,793			$	149,524			$	38,189			$	35,530			$	231,924			$	35,530
Allowance for unfunded commitments	27,372				37,502				17,791				1,077				1,077				27,372				1,077
Allowance for other credit losses	1,121				—				—				—				—				1,121				—
Total allowance for credit losses	$	260,417			$	246,295			$	167,315			$	39,266			$	36,607			$	260,417			$	36,607
Net  Charge-off Information
Charge-offs
Commercial, financial and agricultural	$	1,715			$	486			$	2,486			$	1,813			$	490			$	4,687			$	1,647
Consumer installment	677				962				1,142				1,586				1,245				2,781				4,313
Indirect automobile	697				1,016				1,231				939				965				2,944				965
Premium Finance	1,158				1,904				831				899				1,267				3,893				3,452
Real estate - construction and development	9				74				—				146				—				83				268
Real estate - commercial and farmland	2,977				6,315				928				181				1,318				10,220				3,161
Real estate - residential	137				525				100				100				37				762				391
Total charge-offs	7,370				11,282				6,718				5,664				5,322				25,370				14,197
Recoveries
Commercial, financial and agricultural	470				303				362				934				300				1,135				904
Consumer installment	516				436				321				461			1	590				1,273				1,094
Indirect automobile	317				359				344				241				271				1,020				271
Premium Finance	1,224				676				684				358				736				2,584				2,396
Real estate - construction and development	182				168				342				430				930				692				1,315
Real estate - commercial and farmland	904				21				85				140				74				1,010				192
Real estate - residential	197				138				207				68				169				542				671
Total recoveries	3,810				2,101				2,345				2,632				3,070				8,256				6,843
Net charge-offs	$	3,560			$	9,181			$	4,373			$	3,032			$	2,252			$	17,114			$	7,354
Non-Performing Assets
Nonaccrual loans	$	138,163			$	77,745			$	77,866			$	75,124			$	100,501			$	138,163			$	100,501
Other real estate owned	17,969				23,563				21,027				19,500				20,710				17,969				20,710
Repossessed assets	258				1,348				783				939				1,258				258				1,258
Accruing loans delinquent 90 days or more	7,003				15,127				11,969				5,754				6,325				7,003				6,325
Total non-performing assets	$	163,393			$	117,783			$	111,645			$	101,317			$	128,794			$	163,393			$	128,794
Asset Quality Ratios
Non-performing assets as a percent of total assets	0.82		%		0.59		%		0.61		%		0.56		%		0.73		%		0.82		%		0.73		%
Net charge-offs as a percent of average loans (annualized)	0.10		%		0.27		%		0.14		%		0.09		%		0.07		%		0.17		%		0.10		%

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Loan Information	Table 5
	Sep				Jun				Mar				Dec				Sep
(dollars in thousands)	2020				2020				2020				2019				2019
Loans by Type
Commercial, financial and agricultural	$	1,879,788			$	1,839,921			$	827,392			$	802,171			$	931,755
Consumer installment	450,810				575,782				520,592				498,577				500,067
Indirect automobile	682,396				739,543				937,736				1,061,824				1,111,815
Mortgage warehouse	995,942				748,853				547,328				526,369				562,598
Municipal	725,669				731,508				749,633				564,304				578,267
Premium Finance	710,890				690,584				661,845				654,669				656,570
Real estate - construction and development	1,628,255				1,641,744				1,628,367				1,549,062				1,468,696
Real estate - commercial and farmland	5,116,252				4,804,420				4,516,451				4,353,039				4,198,759
Real estate - residential	2,753,591				2,730,802				2,704,762				2,808,461				2,817,757
Total loans	$	14,943,593			$	14,503,157			$	13,094,106			$	12,818,476			$	12,826,284
Troubled Debt Restructurings
Accruing troubled debt restructurings
Commercial, financial and agricultural	$	459			$	591			$	575			$	516			$	521
Consumer installment	36				42				4				8				9
Indirect automobile	2,689				—				—				—				—
Mortgage warehouse	—				—				—				—				—
Municipal	—				—				—				—				—
Premium Finance	—				—				159				156				159
Real estate - construction and development	510				919				925				936				948
Real estate - commercial and farmland	56,417				5,252				5,587				6,732				8,616
Real estate - residential	28,777				30,253				22,775				21,261				21,472
Total accruing troubled debt restructurings	$	88,888			$	37,057			$	30,025			$	29,609			$	31,725
Nonaccrual troubled debt restructurings
Commercial, financial and agricultural	$	1,002			$	1,034			$	334			$	335			$	144
Consumer installment	64				67				105				107				120
Indirect automobile	482				—				—				—				—
Mortgage warehouse	—				—				—				—				—
Municipal	—				—				—				—				—
Premium Finance	—				—				—				—				—
Real estate - construction and development	709				307				289				253				258
Real estate - commercial and farmland	19,942				1,878				2,415				2,071				1,958
Real estate - residential	4,477				2,231				3,078				2,857				2,103
Total nonaccrual troubled debt restructurings	$	26,676			$	5,517			$	6,221			$	5,623			$	4,583
Total troubled debt restructurings	$	115,564			$	42,574			$	36,246			$	35,232			$	36,308
Loans by Risk Grade
Grade 1 - Prime credit	$	1,845,900			$	1,789,709			$	774,956			$	587,877			$	613,281
Grade 2 - Strong credit	838,267				801,273				785,770				840,372				856,618
Grade 3 - Good credit	6,189,269				5,784,754				5,772,834				6,034,398				6,086,576
Grade 4 - Satisfactory credit	4,989,617				5,643,133				4,353,733				4,884,541				4,746,020
Grade 5 - Fair credit	643,502				212,667				1,131,128				233,020				252,424
Grade 6 - Other assets especially mentioned	151,501				108,704				106,885				86,412				114,235
Grade 7 - Substandard	285,537				162,917				168,561				151,846				157,114
Grade 8 - Doubtful	—				—				239				8				14
Grade 9 - Loss	—				—				—				2				2
Total loans	$	14,943,593			$	14,503,157			$	13,094,106			$	12,818,476			$	12,826,284

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Average Balances	Table 6
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Earning Assets
Federal funds sold	$	20,004			$	24,265			$	27,380			$	23,104			$	28,459			$	23,868			$	33,800
Interest-bearing deposits in banks	467,188				398,284				419,260				304,427				324,127				428,386				377,290
Time deposits in other banks	249				249				249				401				548				249				4,818
Investment securities - taxable	1,160,585				1,281,980				1,359,651				1,426,062				1,514,534				1,267,015				1,312,776
Investment securities - nontaxable	21,619				21,576				22,839				23,580				23,759				22,010				21,060
Other investments	64,656				79,143				73,972				64,852				53,712				72,561				28,168
Loans held for sale	1,507,481				1,614,080				1,587,131				1,537,648				856,572				1,569,337				373,699
Loans	14,688,317				13,915,406				12,712,997				12,697,912				12,677,063				13,772,102				9,982,560
Total Earning Assets	$	17,930,099			$	17,334,983			$	16,203,479			$	16,077,986			$	15,478,774			$	17,155,528			$	12,134,171
Deposits
Noninterest-bearing deposits	$	5,782,163			$	5,061,578			$	4,080,920			$	4,124,872			$	4,040,592			$	4,977,833			$	3,108,638
NOW accounts	2,718,315				2,441,305				2,287,947				2,204,666				2,049,175				2,483,383				1,705,108
MMDA	4,273,899				4,221,906				4,004,644				3,953,717				3,815,185				4,167,207				3,053,272
Savings accounts	749,314				692,382				643,422				649,118				661,555				695,238				489,678
Retail CDs	2,274,150				2,471,134				2,624,209				2,721,829				2,804,243				2,455,833				2,222,942
Brokered CDs	1,933				2,043				61,190				249,644				150,176				21,650				380,937
Total Deposits	15,799,774				14,890,348				13,702,332				13,903,846				13,520,926				14,801,144				10,960,575
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	10,483				12,452				15,637				17,088				19,914				12,849				13,017
FHLB advances	799,034				1,212,537				1,267,303				1,080,516				810,384				1,091,885				282,622
Other borrowings	272,443				269,300				269,454				234,001				220,918				270,407				170,891
Subordinated deferrable interest debentures	123,604				123,120				127,731				127,292				133,519				124,814				104,345
Total Non-Deposit Funding	1,205,564				1,617,409				1,680,125				1,458,897				1,184,735				1,499,955				570,875
Total Funding	$	17,005,338			$	16,507,757			$	15,382,457			$	15,362,743			$	14,705,661			$	16,301,099			$	11,531,450

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Interest Income and Interest Expense (TE)	Table 7
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Interest Income
Federal funds sold	$	13			$	45			$	76			$	69			$	171			$	134			$	607
Interest-bearing deposits in banks	152				122				1,210				1,089				1,620				1,484				6,979
Time deposits in other banks	1				1				1				2				2				3				69
Investment securities - taxable	7,260				9,346				10,082				10,358				11,354				26,688				29,780
Investment securities - nontaxable (TE)	202				198				199				212				213				599				539
Loans held for sale	10,365				14,053				13,637				14,330				7,889				38,055				10,673
Loans (TE)	163,352				162,617				158,636				169,119				168,239				484,605				396,918
Total Earning Assets	$	181,345			$	186,382			$	183,841			$	195,179			$	189,488			$	551,568			$	445,565
Accretion income (included above)	$	6,525			$	9,576			$	6,562			$	9,727			$	4,222			$	22,663			$	10,208
Interest Expense
Interest-Bearing Deposits
NOW accounts	$	1,394			$	1,265			$	2,774			$	2,728			$	2,843			$	5,433			$	7,212
MMDA	2,823				3,764				9,748				11,311				12,593				16,335				31,128
Savings accounts	112				94				210				233				274				416				436
Retail CDs	7,484				9,136				11,064				12,220				12,905				27,684				28,820
Brokered CDs	9				14				306				1,478				810				329				6,967
Total Interest-Bearing Deposits	11,822				14,273				24,102				27,970				29,425				50,197				74,563
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	9				25				40				41				32				74				45
FHLB advances	661				1,686				5,109				5,241				4,618				7,456				4,803
Other borrowings	3,558				3,487				3,511				3,358				3,332				10,556				7,769
Subordinated deferrable interest debentures	1,346				1,733				2,061				2,115				2,185				5,140				5,323
Total Non-Deposit Funding	5,574				6,931				10,721				10,755				10,167				23,226				17,940
Total Interest-Bearing Funding	$	17,396			$	21,204			$	34,823			$	38,725			$	39,592			$	73,423			$	92,503
Net Interest Income (TE)	$	163,949			$	165,178			$	149,018			$	156,454			$	149,896			$	478,145			$	353,062

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Yields(1)	Table 8
	Three Months Ended															Nine Months Ended
	Sep			Jun			Mar			Dec			Sep			Sep			Sep
	2020			2020			2020			2019			2019			2020			2019
Earning Assets
Federal funds sold	0.26	%		0.75	%		1.12	%		1.18	%		2.38	%		0.75	%		2.40	%
Interest-bearing deposits in banks	0.13	%		0.12	%		1.16	%		1.42	%		1.98	%		0.46	%		2.47	%
Time deposits in other banks	1.60	%		1.62	%		1.62	%		1.98	%		1.45	%		1.61	%		1.91	%
Investment securities - taxable	2.49	%		2.93	%		2.98	%		2.88	%		2.97	%		2.81	%		3.03	%
Investment securities - nontaxable (TE)	3.72	%		3.69	%		3.50	%		3.57	%		3.56	%		3.64	%		3.42	%
Loans held for sale	2.74	%		3.50	%		3.46	%		3.70	%		3.65	%		3.24	%		3.82	%
Loans (TE)	4.42	%		4.70	%		5.02	%		5.28	%		5.27	%		4.70	%		5.32	%
Total Earning Assets	4.02	%		4.32	%		4.56	%		4.82	%		4.86	%		4.29	%		4.91	%
Interest-Bearing Deposits
NOW accounts	0.20	%		0.21	%		0.49	%		0.49	%		0.55	%		0.29	%		0.57	%
MMDA	0.26	%		0.36	%		0.98	%		1.14	%		1.31	%		0.52	%		1.36	%
Savings accounts	0.06	%		0.05	%		0.13	%		0.14	%		0.16	%		0.08	%		0.12	%
Retail CDs	1.31	%		1.49	%		1.70	%		1.78	%		1.83	%		1.51	%		1.73	%
Brokered CDs	1.85	%		2.76	%		2.01	%		2.35	%		2.14	%		2.03	%		2.45	%
Total Interest-Bearing Deposits	0.47	%		0.58	%		1.01	%		1.13	%		1.23	%		0.68	%		1.27	%
Non-Deposit Funding
Federal funds purchased and securities sold under agreements to repurchase	0.34	%		0.81	%		1.03	%		0.95	%		0.64	%		0.77	%		0.46	%
FHLB advances	0.33	%		0.56	%		1.62	%		1.92	%		2.26	%		0.91	%		2.27	%
Other borrowings	5.20	%		5.21	%		5.24	%		5.69	%		5.98	%		5.21	%		6.08	%
Subordinated deferrable interest debentures	4.33	%		5.66	%		6.49	%		6.59	%		6.49	%		5.50	%		6.82	%
Total Non-Deposit Funding	1.84	%		1.72	%		2.57	%		2.92	%		3.40	%		2.07	%		4.20	%
Total Interest-Bearing Liabilities	0.62	%		0.75	%		1.24	%		1.37	%		1.47	%		0.87	%		1.47	%
Net Interest Spread	3.40	%		3.57	%		3.32	%		3.45	%		3.39	%		3.42	%		3.44	%
Net Interest Margin(2)	3.64	%		3.83	%		3.70	%		3.86	%		3.84	%		3.72	%		3.89	%
Total Cost of Funds(3)	0.41	%		0.52	%		0.91	%		1.00	%		1.07	%		0.60	%		1.07	%
(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																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands except per share data)	2020				2020				2020				2019				2019				2020				2019
Net income available to common shareholders	$	116,145			$	32,236			$	19,322			$	61,248			$	21,384			$	167,703			$	100,193
Adjustment items:
Merger and conversion charges	(44)				895				540				2,415				65,158				1,391				70,690
Restructuring charges	50				1,463				—				—				—				1,513				245
Servicing right impairment (recovery)	412				7,989				22,165				366				(1,319)				30,566				141
Gain on BOLI proceeds	(103)				(845)				—				752				(4,335)				(948)				(4,335)
Expenses related to SEC/DOJ Investigation	268				1,294				1,443				463				—				3,005				—
Natural disaster and pandemic charges (Note 1)	470				2,043				548				—				—				3,061				(39)
Loss on sale of premises	(97)				281				470				1,413				889				654				4,608
Tax effect of adjustment items (Note 2)	(222)				(2,933)				(5,283)				(898)				(13,238)				(8,438)				(15,167)
After tax adjustment items	734				10,187				19,883				4,511				47,155				30,804				56,143
Tax expense attributable to acquisition related compensation and acquired BOLI	—				—				—				849				—				—				—
Adjusted net income	$	116,879			$	42,423			$	39,205			$	66,608			$	68,539			$	198,507			$	156,336
Weighted average number of shares - diluted	69,346,141				69,292,972				69,502,022				69,683,999				69,600,499				69,403,104				54,883,122
Net income per diluted share	$	1.67			$	0.47			$	0.28			$	0.88			$	0.31			$	2.42			$	1.83
Adjusted net income per diluted share	$	1.69			$	0.61			$	0.56			$	0.96			$	0.98			$	2.86			$	2.85
Average assets	$	19,810,084			$	19,222,181			$	18,056,445			$	17,998,494			$	17,340,387			$	19,045,028			$	13,483,044
Return on average assets	2.33		%		0.67		%		0.43		%		1.35		%		0.49		%		1.18		%		0.99		%
Adjusted return on average assets	2.35		%		0.89		%		0.87		%		1.47		%		1.57		%		1.39		%		1.55		%
Average common equity	$	2,529,471			$	2,478,373			$	2,456,617			$	2,437,272			$	2,432,182			$	2,500,689			$	1,813,575
Average tangible common equity	$	1,523,066			$	1,462,871			$	1,436,108			$	1,432,081			$	1,434,829			$	1,486,579			$	1,107,743
Return on average common equity	18.27		%		5.23		%		3.16		%		9.97		%		3.49		%		8.96		%		7.39		%
Adjusted return on average tangible common equity	30.53		%		11.66		%		10.98		%		18.45		%		18.95		%		17.84		%		18.87		%
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 3Q19 and both year-to-date 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																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Adjusted Noninterest Expense
Total noninterest expense	$	153,692			$	155,768			$	138,053			$	122,564			$	192,697			$	447,513			$	349,373
Adjustment items:
Merger and conversion charges	44				(895)				(540)				(2,415)				(65,158)				(1,391)				(70,690)
Restructuring charges	(50)				(1,463)				—				—				—				(1,513)				(245)
Expenses related to SEC/DOJ Investigation	(268)				(1,294)				(1,443)				(463)				—				(3,005)				—
Natural disaster and pandemic charges	(470)				(2,043)				(548)				—				—				(3,061)				39
(Gain) loss on sale of premises	97				(281)				(470)				(1,413)				(889)				(654)				(4,608)
Adjusted noninterest expense	$	153,045			$	149,792			$	135,052			$	118,273			$	126,650			$	437,889			$	273,869
Total Revenue
Net interest income	$	162,538			$	163,814			$	147,945			$	155,351			$	148,769			$	474,297			$	349,815
Noninterest income	159,018				120,960				54,379				55,113				76,993				334,357				143,000
Total revenue	$	321,556			$	284,774			$	202,324			$	210,464			$	225,762			$	808,654			$	492,815
Adjusted Total Revenue
Net interest income (TE)	$	163,949			$	165,178			$	149,018			$	156,454			$	149,896			$	478,145			$	353,062
Noninterest income	159,018				120,960				54,379				55,113				76,993				334,357				143,000
Total revenue (TE)	322,967				286,138				203,397				211,567				226,889				812,502				496,062
Adjustment items:
(Gain) loss on securities	—				(14)				9				(1)				(4)				(5)				(139)
Loss (gain) on BOLI proceeds	(103)				(845)				—				752				(4,335)				(948)				(4,335)
Servicing right impairment (recovery)	412				7,989				22,165				366				(1,319)				30,566				141
Adjusted total revenue (TE)	$	323,276			$	293,268			$	225,571			$	212,684			$	221,231			$	842,115			$	491,729
Efficiency ratio	47.80		%		54.70		%		68.23		%		58.24		%		85.35		%		55.34		%		70.89		%
Adjusted efficiency ratio (TE)	47.34		%		51.08		%		59.87		%		55.61		%		57.25		%		52.00		%		55.70		%
Tangible Book Value Per Share	Table 9C
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands except per share data)	2020				2020				2020				2019				2019				2020				2019
Total shareholders' equity	$	2,564,683			$	2,460,130			$	2,437,150			$	2,469,582			$	2,420,723			$	2,564,683			$	2,420,723
Less:
Goodwill	928,005				928,005				931,947				931,637				911,488				928,005				911,488
Other intangibles, net	76,164				80,354				85,955				91,586				97,328				76,164				97,328
Total tangible shareholders' equity	$	1,560,514			$	1,451,771			$	1,419,248			$	1,446,359			$	1,411,907			$	1,560,514			$	1,411,907
Period end number of shares	69,490,546				69,461,968				69,441,274				69,503,833				69,593,833				69,490,546				69,593,833
Book value per share (period end)	$	36.91			$	35.42			$	35.10			$	35.53			$	34.78			$	36.91			$	34.78
Tangible book value per share (period end)	$	22.46			$	20.90			$	20.44			$	20.81			$	20.29			$	22.46			$	20.29

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Segment Reporting	Table 10
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
Banking Division
Net interest income	$	119,562			$	120,330			$	118,375			$	124,957			$	124,262			$	358,267			$	294,056
Provision for credit losses	487				86,805				35,997				4,741				3,549				123,289				7,913
Noninterest income	15,265				14,468				17,773				18,632				21,173				47,506				50,373
Noninterest expense
Salaries and employee benefits	39,718				40,423				41,621				38,180				39,794				121,762				91,954
Occupancy and equipment expenses	11,955				11,679				10,347				10,216				10,750				33,981				25,065
Data processing and telecommunications expenses	9,716				8,919				10,797				10,156				9,551				29,432				24,778
Other noninterest expenses	21,517				27,997				30,645				23,176				87,059				80,159				126,743
Total noninterest expense	82,906				89,018				93,410				81,728				147,154				265,334				268,540
Income (loss) before income tax expense	51,434				(41,025)				6,741				57,120				(5,268)				17,150				67,976
Income tax expense (benefit)	13,453				(8,582)				275				15,412				(1,269)				5,146				16,197
Net income (loss)	$	37,981			$	(32,443)			$	6,466			$	41,708			$	(3,999)			$	12,004			$	51,779
Retail Mortgage Division
Net interest income	$	20,393			$	24,302			$	17,756			$	18,223			$	13,009			$	62,451			$	26,329
Provision for credit losses	15,051				423				1,997				1,237				1,490				17,471				2,235
Noninterest income	137,583				104,195				34,369				33,335				52,493				276,147				84,853
Noninterest expense
Salaries and employee benefits	53,500				50,003				31,097				28,233				34,144				134,600				54,237
Occupancy and equipment expenses	1,676				1,953				1,504				1,544				1,686				5,133				3,122
Data processing and telecommunications expenses	2,349				1,406				986				1,034				660				4,741				1,384
Other noninterest expenses	7,889				6,949				5,875				4,553				3,484				20,713				7,983
Total noninterest expense	65,414				60,311				39,462				35,364				39,974				165,187				66,726
Income before income tax expense	77,511				67,763				10,666				14,957				24,038				155,940				42,221
Income tax expense	16,112				14,231				2,408				3,371				5,048				32,751				8,831
Net income	$	61,399			$	53,532			$	8,258			$	11,586			$	18,990			$	123,189			$	33,390
Warehouse Lending Division
Net interest income	$	6,546			$	5,026			$	3,302			$	3,771			$	3,169			$	14,874			$	8,846
Provision for credit losses	495				403				(9)				67				—				889				—
Noninterest income	1,064				727				960				610				560				2,751				1,389
Noninterest expense
Salaries and employee benefits	266				209				210				325				286				685				609
Occupancy and equipment expenses	1				1				1				1				2				3				4
Data processing and telecommunications expenses	73				55				41				47				41				169				109
Other noninterest expenses	28				88				34				53				27				150				170
Total noninterest expense	368				353				286				426				356				1,007				892
Income before income tax expense	6,747				4,997				3,985				3,888				3,373				15,729				9,343
Income tax expense	1,431				1,049				837				816				708				3,317				1,962
Net income	$	5,316			$	3,948			$	3,148			$	3,072			$	2,665			$	12,412			$	7,381

 

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES
Segment Reporting (continued)	Table 10
	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
(dollars in thousands)	2020				2020				2020				2019				2019				2020				2019
SBA Division
Net interest income	$	8,966			$	7,034			$	2,181			$	2,190			$	2,573			$	18,181			$	4,841
Provision for credit losses	4,297				2,322				(903)				150				(15)				5,716				394
Noninterest income	5,106				1,570				1,277				2,536				2,766				7,953				6,379
Noninterest expense
Salaries and employee benefits	1,572				2,612				1,476				1,336				1,985				5,660				3,447
Occupancy and equipment expenses	97				97				97				79				66				291				190
Data processing and telecommunications expenses	4				15				13				5				22				32				27
Other noninterest expenses	595				359				515				402				503				1,469				1,249
Total noninterest expense	2,268				3,083				2,101				1,822				2,576				7,452				4,913
Income before income tax expense	7,507				3,199				2,260				2,754				2,778				12,966				5,913
Income tax expense	1,577				671				475				578				584				2,723				1,242
Net income	$	5,930			$	2,528			$	1,785			$	2,176			$	2,194			$	10,243			$	4,671
Premium Finance Division
Net interest income	$	7,071			$	7,122			$	6,331			$	6,210			$	5,756			$	20,524			$	15,743
Provision for credit losses	(2,648)				(1,792)				3,965				(502)				965				(475)				3,523
Noninterest income	—				—				—				—				1				—				6
Noninterest expense
Salaries and employee benefits	1,642				1,921				1,542				1,568				1,424				5,105				4,049
Occupancy and equipment expenses	76				77				79				79				135				232				296
Data processing and telecommunications expenses	84				119				117				120				98				320				853
Other noninterest expenses	934				886				1,056				1,457				980				2,876				3,104
Total noninterest expense	2,736				3,003				2,794				3,224				2,637				8,533				8,302
Income (loss) before income tax expense	6,983				5,911				(428)				3,488				2,155				12,466				3,924
Income tax expense (benefit)	1,464				1,240				(93)				782				621				2,611				952
Net income (loss)	$	5,519			$	4,671			$	(335)			$	2,706			$	1,534			$	9,855			$	2,972
Total Consolidated
Net interest income	$	162,538			$	163,814			$	147,945			$	155,351			$	148,769			$	474,297			$	349,815
Provision for credit losses	17,682				88,161				41,047				5,693				5,989				146,890				14,065
Noninterest income	159,018				120,960				54,379				55,113				76,993				334,357				143,000
Noninterest expense
Salaries and employee benefits	96,698				95,168				75,946				69,642				77,633				267,812				154,296
Occupancy and equipment expenses	13,805				13,807				12,028				11,919				12,639				39,640				28,677
Data processing and telecommunications expenses	12,226				10,514				11,954				11,362				10,372				34,694				27,151
Other noninterest expenses	30,963				36,279				38,125				29,641				92,053				105,367				139,249
Total noninterest expense	153,692				155,768				138,053				122,564				192,697				447,513				349,373
Income before income tax expense	150,182				40,845				23,224				82,207				27,076				214,251				129,377
Income tax expense	34,037				8,609				3,902				20,959				5,692				46,548				29,184
Net income	$	116,145			$	32,236			$	19,322			$	61,248			$	21,384			$	167,703			$	100,193

 

 

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SOURCE Ameris Bancorp

FAQ

What was Ameris Bancorp's net income for Q3 2020?

Ameris Bancorp reported a net income of $116.1 million for Q3 2020.

How did Ameris Bancorp perform compared to the same quarter last year?

The company saw a significant increase in net income from $21.4 million in Q3 2019 to $116.1 million in Q3 2020.

What is the adjusted net income per diluted share for Ameris Bancorp?

The adjusted net income for Q3 2020 was $116.9 million, or $1.69 per diluted share.

What factors contributed to the increase in Ameris Bancorp's revenue?

The increase in revenue was primarily due to higher mortgage banking activity and net interest income.

What is the outlook for Ameris Bancorp moving forward?

The outlook remains optimistic as the company adapts to market changes and continues to focus on customer relationships.