PR Newswire | Apr 22, 2021 04:06PM EDT

04/22 15:05 CDT

Ameris Bancorp Announces Financial Results For First Quarter 2021 ATLANTA, April 22, 2021

ATLANTA, April 22, 2021 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $125.0 million, or $1.79 per diluted share, for the quarter ended March 31, 2021, compared with $19.3 million, or $0.28 per diluted share, for the quarter ended March 31, 2020. The increase in net income is primarily attributable to a reduction in provision for credit losses of $69.6 million and an increase in mortgage banking activity for the quarter of $63.2 million. The Company reported adjusted net income of $115.7 million, or $1.66 per diluted share, for the quarter ended March 31, 2021, compared with $39.2 million, or $0.56 per diluted share, for the same period in 2020. Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, certain legal expenses, gain on bank owned life insurance ("BOLI") proceeds, (gain)/loss on sale of bank premises and expenses related to the COVID-19 pandemic.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "We are pleased with our first quarter results, where we saw solid loan growth, increases in core deposits, stable credit, robust fees and continued momentum in our banking division efficiency initiatives. An improving economy, which resulted in a reversal of provision expense and a recovery of previous MSR (mortgage servicing right) impairment, along with the tremendous core earnings power of Ameris, resulted in tangible book value growth of 6.7% this quarter. Our teammates have continued to remain focused on our key initiatives of superior and innovative customer service, which delivers top-in-class financial results. We are excited about the opportunities we see in our markets and the strength that we have going into the remainder of 2021."

Significant items from the Company's results for the first quarter of 2021 include the following:

* Net income of $125.0 million, or $1.79 per diluted share, compared with $94.3 million, or $1.36 per diluted share, in the fourth quarter of 2020 * Growth in tangible book value of 6.7%, or $1.58 per share, to $25.27 at March 31, 2021, compared with $23.69 at December 31, 2020 * Growth in total revenue of $7.4 million, or 2.7%, compared with the fourth quarter of 2020 * Adjusted return on average assets of 2.26%, compared with 2.04% in the fourth quarter of 2020 * Mortgage production remained strong and retail mortgage pipeline ended $326.7 million higher than at December 31, 2020 * Adjusted efficiency ratio of 54.62%, compared with 52.67% in the fourth quarter of 2020 and 59.87% in the first quarter of 2020 * Net interest margin of 3.57%, compared with 3.64% in the fourth quarter of 2020 * Continued growth in noninterest bearing deposits representing 38.07% of total deposits, up from 36.27% at December 31, 2020 and 30.53% a year ago * Annualized net charge-offs of 0.12% of average total loans

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

Adjusted Net Income Reconciliation

Three Months Ended

March 31,

(dollars in thousands, except per share data) 2021 2020

Net income available to common shareholders $124,962 $19,322



Adjustment items:

Merger and conversion charges - 540

Servicing right impairment (recovery) (10,639) 22,165

Gain on BOLI proceeds (603) -

Expenses related to SEC and DOJ investigation - 1,443

Natural disaster and pandemic charges (Note 1) - 548

(Gain) loss on sale of premises (264) 470

Tax effect of adjustment items (Note 2) 2,290 (5,283)

After-tax adjustment items (9,216) 19,883

Adjusted net income $115,746 $39,205



Reported net income per diluted share $1.79 $0.28

Adjusted net income per diluted share $1.66 $0.56



Reported return on average assets 2.44 %0.43 %

Adjusted return on average assets 2.26 %0.87 %



Reported return on average common equity 18.80 %3.16 %

Adjusted return on average tangible common equity27.66 %10.98 %



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 1Q20 are nondeductible for tax purposes.

Net Interest Income and Net Interest MarginNet interest income on a tax-equivalent basis for the first quarter of 2021 totaled $166.2 million, compared with $164.8 million for the fourth quarter of 2020 and $149.0 million for the first quarter of 2020. The Company's net interest margin was 3.57% for the first quarter of 2021, down from 3.64% reported for the fourth quarter of 2020 and 3.70% reported for the first quarter of 2020. The decrease in net interest margin in the current quarter is attributable to excess liquidity held on the balance sheet, as the average balance in interest-bearing deposits in banks increased materially during the quarter. The yield on earning assets declined 13 basis points due to this excess liquidity, and the decline was partially offset by improvement in the cost of interest-bearing liabilities of 9 basis points during the quarter. Accretion income for the first quarter of 2021 increased to $6.1 million, compared with $4.7 million for the fourth quarter of 2020, and decreased from $6.6 million for the first quarter of 2020. The increase in accretion income for the first quarter is primarily attributable to increased payoffs of acquired loans during the first quarter of 2021.

Yields on loans increased to 4.53% during the first quarter of 2021, compared with 4.41% for the fourth quarter of 2020, and decreased from 5.02% reported for the first quarter of 2020. Contributing to interest income on loans for the first quarter of 2021 was $9.2 million related to accelerated fee income on Paycheck Protection Program ("PPP") loan forgiveness, compared with $6.3 million in the fourth quarter of 2020. Loan production in the banking division during the first quarter of 2021 was $600.6 million, with weighted average yields of 3.80%, compared with $785.0 million and 3.86%, respectively, in the fourth quarter of 2020, but was below pre-pandemic levels seen in the first quarter last year of $918.4 million and 4.55%, respectively. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $7.5 billion during the first quarter of 2021, with weighted average yields of 3.15%, compared with $7.7 billion and 3.25%, respectively, during the fourth quarter of 2020 and $4.0 billion and 4.15%, respectively, during the first quarter of 2020. Loan production yields in the lines of business were negatively impacted 11 basis points during the first quarter of 2021 by originations of PPP loans in our SBA division.

Interest expense during the first quarter of 2021 decreased to $13.0 million, compared with $15.3 million in the fourth quarter of 2020 and $34.8 million in the first quarter of 2020. The Company's total cost of funds moved six basis points lower to 0.30% in the first quarter of 2021 as compared with the fourth quarter of 2020. Deposit costs also decreased six basis points during the first quarter of 2021 to 0.16%, compared with 0.22% in the fourth quarter of 2020. Costs of interest-bearing deposits decreased during the quarter from 0.34% in the fourth quarter of 2020 to 0.25% in the first quarter of 2021.

Noninterest IncomeNoninterest income increased $5.8 million, or 5.2%, in the first quarter of 2021 to $118.0 million, compared with $112.1 million for the fourth quarter of 2020, primarily as a result of increased mortgage banking activity and other noninterest income, as further discussed below.

Mortgage banking activity increased $3.3 million, or 3.5%, to $98.5 million in the first quarter of 2021, compared with $95.2 million for the fourth quarter of 2020. This increase was the result of a recovery of previously recorded servicing right impairment, partially offset by a decrease in gain on sale of loans. Gain on sale spreads decreased to 3.95% in the first quarter of 2021 from 4.34% for the fourth quarter of 2020. Total production in the retail mortgage division decreased to $2.64 billion in the first quarter of 2021, compared with $2.81 billion for the fourth quarter of 2020. Mortgage banking activity was positively impacted during the first quarter of 2021 by a $9.7 million servicing right recovery, compared with an impairment of $9.1 million for the fourth quarter of 2020. The retail mortgage open pipeline was $2.33 billion at the end of the first quarter of 2021, compared with $2.00 billion at December 31, 2020.

Service charge revenue decreased $636,000, or 5.5%, to $10.8 million in the first quarter of 2021, compared with $11.5 million for the fourth quarter of 2020, resulting from a decrease in volume. Other noninterest income increased $3.1 million, or 69.3%, in the first quarter of 2021 to $7.7 million, compared with $4.5 million for the fourth quarter of 2020, primarily as a result of a SBA servicing right recovery of $906,000 in the first quarter of 2021, compared with an impairment of $355,000 for the fourth quarter of 2020, a gain on BOLI proceeds of $603,000 and an increase in gain on sale of loans of $765,000.

Noninterest ExpenseNoninterest expense decreased $2.3 million, or 1.5%, to $148.8 million during the first quarter of 2021, compared with $151.1 million for the fourth quarter of 2020. During the first quarter of 2021, the Company recorded a net gain of $264,000 related to sale of premises. During the fourth quarter of 2020, the Company recorded $258,000 in charges to earnings related to certain legal expenses and natural disaster and pandemic charges, partially offset by a gain on sale of premises. Excluding these charges, adjusted expenses decreased approximately $1.8 million, or 1.2%, to $149.1 million in the first quarter of 2021, from $150.9 million in the fourth quarter of 2020. The majority of this decrease is attributable to a $765,000 expense related to the final termination of the remaining loss-share agreements with the FDIC and a $1.0 million donation to the Ameris Bank Foundation recorded in the fourth quarter of 2020. The adjusted efficiency ratio was 54.62% in the first quarter of 2021, compared with 52.67% in the fourth quarter of 2020.

Income Tax ExpenseThe Company's effective tax rate for the first quarter of 2021 was 23.2%, compared with 25.2% in the fourth quarter of 2020. The decreased rate for the first quarter of 2021 was primarily a result of a large return to provision adjustment made when the Company filed its 2019 income tax returns in the fourth quarter of 2020.

Balance Sheet TrendsTotal assets at March 31, 2021 were $21.43 billion, compared with $20.44 billion at December 31, 2020. Total loans, including loans held for sale, were $16.11 billion at March 31, 2021, compared with $15.65 billion at December 31, 2020. Total loans held for investment were $14.60 billion at March 31, 2021, compared with $14.48 billion at December 31, 2020, an increase of $118.9 million, or 0.8%. Loan production in the banking division during the first quarter of 2021 was down 23% from the fourth quarter of 2020 and 35% from the first quarter of 2020.

At March 31, 2021, total deposits amounted to $17.88 billion, or 97.0% of total funding, compared with $16.96 billion and 96.8%, respectively, at December 31, 2020. At March 31, 2021, noninterest-bearing deposit accounts were $6.80 billion, or 38.1% of total deposits, compared with $6.15 billion, or 36.3% of total deposits, at December 31, 2020. Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $10.99 billion at March 31, 2021, compared with $10.23 billion at December 31, 2020. These funds represented 61.5% of the Company's total deposits at March 31, 2021, compared with 60.3% at the end of 2020.

Shareholders' equity at March 31, 2021 totaled $2.76 billion, an increase of $110.5 million, or 4.2%, from December 31, 2020. The increase in shareholders' equity was primarily the result of earnings of $125.0 million during the first quarter of 2021, partially offset by dividends declared. Tangible book value per share was $25.27 at March 31, 2021, compared with $23.69 at December 31, 2020. Tangible common equity as a percentage of tangible assets was 8.62% at March 31, 2021, compared with 8.47% at the end of 2020.

Credit QualityCredit quality remains strong in the Company. During the first quarter of 2021, the Company recorded a provision for credit losses reversal of $28.6 million, compared with a provision reversal of $1.5 million in the fourth quarter of 2020. This decrease in provision was primarily attributable to improvements in forecast economic conditions, particularly levels of unemployment, home prices and commercial real estate prices, compared with forecast conditions during the fourth quarter of 2020. The positive impact of the improved economic forecast was partially offset, however, by growth in adverse qualitative factors in our commercial real estate and consumer installment portfolios. 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 first quarter of 2021 equaled approximately 1.9% of total loans, down from approximately 2.9% and 19.0% of total loans at the end of the fourth and second quarters of 2020, respectively. Nonperforming assets as a percentage of total assets decreased by eight basis points to 0.40% during the quarter. The net charge-off ratio was 12 basis points for the first quarter of 2021, compared with 70 basis points in the fourth quarter of 2020 and 14 basis points in the first quarter of 2020.

Conference CallThe Company will host a teleconference at 9:00 a.m. Eastern time on Friday, April 23, 2021, 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 May 7, 2021. 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 10153876. 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 BancorpAmeris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 165 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.

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

This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers; collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2020 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

Mar Dec Sep Jun Mar

(dollars in thousands except per share data) 2021 2020 2020 2020 2020

EARNINGS

Net income $ 124,962 $ 94,285 $ 116,145 $ 32,236 $ 19,322

Adjusted net income $ 115,746 $ 101,995 $ 116,879 $ 42,423 $ 39,205



COMMON SHARE DATA

Earnings per share available to common shareholders

Basic $ 1.80 $ 1.36 $ 1.68 $ 0.47 $ 0.28

Diluted $ 1.79 $ 1.36 $ 1.67 $ 0.47 $ 0.28

Adjusted diluted EPS $ 1.66 $ 1.47 $ 1.69 $ 0.61 $ 0.56

Cash dividends per share $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15

Book value per share (period end) $ 39.56 $ 38.07 $ 36.91 $ 35.42 $ 35.10

Tangible book value per share (period end) $ 25.27 $ 23.69 $ 22.46 $ 20.90 $ 20.44

Weighted average number of shares

Basic 69,391,734 69,252,307 69,230,667 69,191,778 69,247,661

Diluted 69,740,860 69,493,105 69,346,141 69,292,972 69,502,022

Period end number of shares 69,713,426 69,541,481 69,490,546 69,462,782 69,441,274

Market data

High intraday price $ 57.81 $ 39.53 $ 27.81 $ 29.82 $ 43.79

Low intraday price $ 36.60 $ 22.37 $ 19.91 $ 17.12 $ 17.89

Period end closing price $ 52.51 $ 38.07 $ 22.78 $ 23.59 $ 23.76

Average daily volume 460,744 394,641 359,059 470,151 461,692



PERFORMANCE RATIOS

Return on average assets 2.44 %1.89 %2.33 %0.67 %0.43 %

Adjusted return on average assets 2.26 %2.04 %2.35 %0.89 %0.87 %

Return on average common equity 18.80 %14.30 %18.27 %5.23 %3.16 %

Adjusted return on average tangible common equity 27.66 %25.04 %30.53 %11.66 %10.98 %

Earning asset yield (TE) 3.85 %3.98 %4.02 %4.32 %4.56 %

Total cost of funds 0.30 %0.36 %0.41 %0.52 %0.91 %

Net interest margin (TE) 3.57 %3.64 %3.64 %3.83 %3.70 %

Noninterest income excluding securities transactions, as a percent of total revenue 39.71 %38.37 %46.72 %39.35 %22.83 %(TE)

Efficiency ratio 52.59 %54.83 %47.80 %54.70 %68.23 %

Adjusted efficiency ratio (TE) 54.62 %52.67 %47.34 %51.08 %59.87 %



CAPITAL ADEQUACY (period end)

Shareholders' equity to assets 12.87 %12.95 %12.90 %12.38 %13.37 %

Tangible common equity to tangible assets 8.62 %8.47 %8.27 %7.70 %8.25 %



EQUITY TO ASSETS RECONCILIATION

Tangible common equity to tangible assets 8.62 %8.47 %8.27 %7.70 %8.25 %

Effect of goodwill and other intangibles 4.25 %4.48 %4.63 %4.68 %5.12 %

Equity to assets (GAAP) 12.87 %12.95 %12.90 %12.38 %13.37 %



OTHER DATA (period end)

Full time equivalent employees

Banking Division 1,815 1,816 1,807 1,832 1,865

Retail Mortgage Division 765 748 734 692 689

Warehouse Lending Division 12 12 11 9 9

SBA Division 29 24 33 42 44

Premium Finance Division 70 71 71 70 72

Total Ameris Bancorp FTE headcount 2,691 2,671 2,656 2,645 2,679



Assets per Banking Division FTE $ 11,806 $ 11,255 $ 10,998 $ 10,848 $ 9,772

Branch locations 165 164 170 170 170

Deposits per branch location $ 108,339 $ 103,401 $ 94,493 $ 91,705 $ 81,439

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Income Statement Table 2

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands except per share data) 2021 2020 2020 2020 2020

Interest income

Interest and fees on loans $171,157$171,971$172,351$175,345$171,242

Interest on taxable securities 6,118 6,398 7,259 9,347 10,082

Interest on nontaxable securities 141 150 159 157 157

Interest on deposits in other banks 522 252 153 123 1,211

Interest on federal funds sold 12 12 12 46 76

Total interest income 177,950 178,783 179,934 185,018 182,768



Interest expense

Interest on deposits 6,798 8,870 11,822 14,273 24,102

Interest on other borrowings 6,175 6,457 5,574 6,931 10,721

Total interest expense 12,973 15,327 17,396 21,204 34,823



Net interest income 164,977 163,456 162,538 163,814 147,945



Provision for loan losses (16,579) (6,700) 26,692 68,449 37,047

Provision for unfunded commitments (11,839) 5,481 (10,131) 19,712 4,000

Provision for other credit losses (173) (291) 1,121 - -

Provision for credit losses (28,591) (1,510) 17,682 88,161 41,047

Net interest income after provision for credit losses193,568 164,966 144,856 75,653 106,898



Noninterest income

Service charges on deposits accounts 10,829 11,465 10,914 9,922 11,844

Mortgage banking activity 98,486 95,192 138,627 104,925 35,333

Other service charges, commissions and fees 1,016 965 1,039 949 961

Gain (loss) on securities (12) - - 14 (9)

Other noninterest income 7,654 4,521 8,438 5,150 6,250

Total noninterest income 117,973 112,143 159,018 120,960 54,379



Noninterest expense

Salaries and employee benefits 95,985 92,466 96,698 95,168 75,946

Occupancy and equipment expenses 11,781 12,709 13,805 13,807 12,028

Data processing and telecommunications expenses 11,884 11,323 12,226 10,514 11,954

Credit resolution related expenses^(1) 547 1,156 802 950 2,198

Advertising and marketing expenses 1,431 3,267 966 1,455 2,358

Amortization of intangible assets 4,126 4,190 4,190 5,601 5,631

Merger and conversion charges - - (44) 895 540

Other noninterest expenses 23,044 26,005 25,049 27,378 27,398

Total noninterest expense 148,798 151,116 153,692 155,768 138,053



Income before income tax expense 162,743 125,993 150,182 40,845 23,224

Income tax expense 37,781 31,708 34,037 8,609 3,902

Net income $124,962$94,285 $116,145$32,236 $19,322



Diluted earnings per common share $1.79 $1.36 $1.67 $0.47 $0.28



(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

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Assets

Cash and due from banks $224,159 $203,349 $257,026 $292,899 $255,312

Federal funds sold and interest-bearing deposits in banks 2,534,969 1,913,957 494,765 428,560 396,844

Time deposits in other banks 249 249 249 249 249

Investment securities available for sale, at fair value 859,652 982,879 1,117,436 1,238,896 1,353,040

Other investments 27,620 28,202 47,329 76,453 81,754

Loans held for sale, at fair value 1,509,528 1,167,659 1,414,889 1,736,397 1,398,229



Loans, net of unearned income 14,599,805 14,480,925 14,943,593 14,503,157 13,094,106

Allowance for credit losses (178,570) (199,422) (231,924) (208,793) (149,524)

Loans, net 14,421,235 14,281,503 14,711,669 14,294,364 12,944,582



Other real estate owned 8,841 11,880 17,969 23,563 21,027

Premises and equipment, net 231,550 222,890 231,278 230,118 231,347

Goodwill 928,005 928,005 928,005 928,005 931,947

Other intangible assets, net 67,848 71,974 76,164 80,354 85,955

Cash value of bank owned life insurance 176,575 176,467 175,605 175,011 176,239

Deferred income taxes, net 22,367 33,314 53,039 56,306 24,196

Other assets 414,529 416,310 348,428 311,454 323,827

Total assets $21,427,127$20,438,638$19,873,851$19,872,629$18,224,548



Liabilities

Deposits

Noninterest-bearing $6,804,776 $6,151,070 $5,909,316 $5,595,868 $4,226,253

Interest-bearing 11,071,097 10,806,753 10,154,490 9,993,950 9,618,365

Total deposits 17,875,873 16,957,823 16,063,806 15,589,818 13,844,618

Federal funds purchased and securities sold under agreements to repurchase9,320 11,641 9,103 12,879 15,160

Other borrowings 425,231 425,155 875,255 1,418,336 1,543,371

Subordinated deferrable interest debentures 124,833 124,345 123,860 123,375 122,890

FDIC loss-share payable, net - - 19,476 18,903 18,111

Other liabilities 234,274 272,586 217,668 249,188 243,248

Total liabilities 18,669,531 17,791,550 17,309,168 17,412,499 15,787,398



Shareholders' Equity

Preferred stock - - - - -

Common stock 71,954 71,754 71,703 71,674 71,652

Capital stock 1,917,990 1,913,285 1,911,031 1,909,839 1,908,721

Retained earnings 785,984 671,510 587,657 481,948 460,153

Accumulated other comprehensive income, net of tax 26,090 33,505 37,252 39,613 39,551

Treasury stock (44,422) (42,966) (42,960) (42,944) (42,927)

Total shareholders' equity 2,757,596 2,647,088 2,564,683 2,460,130 2,437,150

Total liabilities and shareholders' equity $21,427,127$20,438,638$19,873,851$19,872,629$18,224,548



Other Data

Earning assets $19,531,823$18,573,871$18,018,261$17,983,712$16,324,222

Intangible assets 995,853 999,979 1,004,169 1,008,359 1,017,902

Interest-bearing liabilities 11,630,481 11,367,894 11,162,708 11,548,540 11,299,786

Average assets 20,734,414 19,876,338 19,810,084 19,222,181 18,056,445

Average common shareholders' equity 2,695,005 2,622,942 2,529,471 2,478,373 2,456,617

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Asset Quality Information Table 4

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Allowance for Credit Losses

Balance at beginning of period $233,105 $260,417 $246,295 $167,315 $39,266



CECL adoption impact on allowance for loan losses - - - - 78,661

CECL adoption impact on allowance for unfunded commitments- - - - 12,714

Total CECL adoption impact - - - - 91,375



Provision for loan losses (16,579) (6,700) 26,692 68,449 37,047

Provision for unfunded commitments (11,839) 5,481 (10,131) 19,712 4,000

Provision for other credit losses (173) (291) 1,121 - -

Provision for credit losses (28,591) (1,510) 17,682 88,161 41,047



Charge-offs 7,574 29,094 7,370 11,282 6,718

Recoveries 3,301 3,292 3,810 2,101 2,345

Net charge-offs 4,273 25,802 3,560 9,181 4,373



Ending balance $200,241 $233,105 $260,417 $246,295 $167,315



Allowance for loan losses $178,570 $199,422 $231,924 $208,793 $149,524

Allowance for unfunded commitments 21,014 32,853 27,372 37,502 17,791

Allowance for other credit losses 657 830 1,121 - -

Total allowance for credit losses $200,241 $233,105 $260,417 $246,295 $167,315



Net Charge-off Information

Charge-offs

Commercial, financial and agricultural $2,370 $5,960 $1,715 $486 $2,486

Consumer installment 1,448 2,861 677 962 1,142

Indirect automobile 829 658 697 1,016 1,231

Premium Finance 1,343 2,240 1,158 1,904 831

Real estate - construction and development 26 - 9 74 -

Real estate - commercial and farmland 1,395 17,284 2,977 6,315 928

Real estate - residential 163 91 137 525 100

Total charge-offs 7,574 29,094 7,370 11,282 6,718



Recoveries

Commercial, financial and agricultural 727 754 470 303 362

Consumer installment 356 480 516 436 321

Indirect automobile 700 637 317 359 344

Premium Finance 1,122 605 1,224 676 684

Real estate - construction and development 167 125 182 168 342

Real estate - commercial and farmland 41 439 904 21 85

Real estate - residential 188 252 197 138 207

Total recoveries 3,301 3,292 3,810 2,101 2,345



Net charge-offs $4,273 $25,802 $3,560 $9,181 $4,373



Non-Performing Assets

Nonaccrual loans $71,189 $76,457 $138,163 $77,745 $77,866

Other real estate owned 8,841 11,880 17,969 23,563 21,027

Repossessed assets 840 544 258 1,348 783

Accruing loans delinquent 90 days or more 5,097 8,326 7,003 15,126 11,974

Total non-performing assets $85,967 $97,207 $163,393 $117,782 $111,650



Asset Quality Ratios

Non-performing assets as a percent of total assets 0.40 %0.48 %0.82 %0.59 %0.61 %

Net charge-offs as a percent of average loans (annualized)0.12 %0.70 %0.10 %0.27 %0.14 %

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Loan Information Table 5

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Loans by Type

Commercial, financial and agricultural $1,611,029 $1,627,477 $1,879,788 $1,839,921 $827,392

Consumer installment 257,097 306,995 450,810 575,782 520,592

Indirect automobile 482,637 580,083 682,396 739,543 937,736

Mortgage warehouse 880,216 916,353 995,942 748,853 547,328

Municipal 659,228 659,403 725,669 731,508 749,633

Premium Finance 706,379 687,841 710,890 690,584 661,845

Real estate - construction and development 1,533,234 1,606,710 1,628,255 1,641,744 1,628,367

Real estate - commercial and farmland 5,616,826 5,300,006 5,116,252 4,804,420 4,516,451

Real estate - residential 2,853,159 2,796,057 2,753,591 2,730,802 2,704,762

Total loans $14,599,805$14,480,925$14,943,593$14,503,157$13,094,106



Troubled Debt Restructurings

Accruing troubled debt restructurings

Commercial, financial and agricultural $930 $521 $459 $591 $575

Consumer installment 27 32 36 42 4

Indirect automobile 1,931 2,277 2,689 - -

Mortgage warehouse - - - - -

Municipal - - - - -

Premium Finance - - - - 159

Real estate - construction and development 501 506 510 919 925

Real estate - commercial and farmland 59,398 36,707 56,417 5,252 5,587

Real estate - residential 33,324 38,800 28,777 30,253 22,775

Total accruing troubled debt restructurings $96,111 $78,843 $88,888 $37,057 $30,025

Nonaccrual troubled debt restructurings

Commercial, financial and agricultural $854 $849 $1,002 $1,034 $334

Consumer installment 53 56 64 67 105

Indirect automobile 321 461 482 - -

Mortgage warehouse - - - - -

Municipal - - - - -

Premium Finance - - - - -

Real estate - construction and development 706 707 709 307 289

Real estate - commercial and farmland 2,233 1,401 19,942 1,878 2,415

Real estate - residential 2,818 2,671 4,477 2,231 3,078

Total nonaccrual troubled debt restructurings$6,985 $6,145 $26,676 $5,517 $6,221

Total troubled debt restructurings $103,096 $84,988 $115,564 $42,574 $36,246



Loans by Risk Grade

Grade 1 - Prime credit $1,381,205 $1,368,661 $1,845,900 $1,789,709 $774,956

Grade 2 - Strong credit 893,387 869,581 838,267 801,273 785,770

Grade 3 - Good credit 6,805,583 6,624,154 6,189,269 5,784,754 5,772,834

Grade 4 - Satisfactory credit 4,507,148 4,794,672 4,989,617 5,643,133 4,353,733

Grade 5 - Fair credit 616,896 452,350 643,502 212,667 1,131,128

Grade 6 - Other assets especially mentioned 135,213 108,541 151,501 108,704 106,885

Grade 7 - Substandard 260,369 262,947 285,537 162,917 168,561

Grade 8 - Doubtful - 19 - - 239

Grade 9 - Loss 4 - - - -

Total loans $14,599,805$14,480,925$14,943,593$14,503,157$13,094,106

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Average Balances Table 6

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Earning Assets

Federal funds sold $20,000 $20,000 $20,004 $24,265 $27,380

Interest-bearing deposits in banks 2,145,403 879,481 467,188 398,284 419,260

Time deposits in other banks 249 249 249 249 249

Investment securities - taxable 910,834 1,024,335 1,160,585 1,281,980 1,359,651

Investment securities - nontaxable 19,225 20,112 21,619 21,576 22,839

Other investments 27,516 31,552 64,656 79,143 73,972

Loans held for sale 1,284,821 1,281,762 1,507,481 1,614,080 1,587,131

Loans 14,453,975 14,752,664 14,688,317 13,915,406 12,712,997

Total Earning Assets $18,862,023$18,010,155$17,930,099$17,334,983$16,203,479



Deposits

Noninterest-bearing deposits $6,412,268 $5,970,672 $5,782,163 $5,061,578 $4,080,920

NOW accounts 3,182,245 2,968,596 2,718,315 2,441,305 2,287,947

MMDA 4,761,279 4,534,243 4,273,899 4,221,906 4,004,644

Savings accounts 823,039 793,414 749,314 692,382 643,422

Retail CDs 2,066,410 2,109,600 2,274,150 2,471,134 2,624,209

Brokered CDs 1,000 1,140 1,933 2,043 61,190

Total Deposits 17,246,241 16,377,665 15,799,774 14,890,348 13,702,332

Non-Deposit Funding

Federal funds purchased and securities sold under agreements to repurchase9,284 9,929 10,483 12,452 15,637

FHLB advances 48,951 127,797 799,034 1,212,537 1,267,303

Other borrowings 376,260 376,295 272,443 269,300 269,454

Subordinated deferrable interest debentures 124,574 124,091 123,604 123,120 127,731

Total Non-Deposit Funding 559,069 638,112 1,205,564 1,617,409 1,680,125

Total Funding $17,805,310$17,015,777$17,005,338$16,507,757$15,382,457

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Interest Income and Interest Expense (TE) Table 7

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Interest Income

Federal funds sold $12 $13 $13 $45 $76

Interest-bearing deposits in banks 521 251 152 122 1,210

Time deposits in other banks 1 1 1 1 1

Investment securities - taxable 6,118 6,398 7,260 9,346 10,082

Investment securities - nontaxable (TE) 178 190 202 198 199

Loans held for sale 10,827 9,705 10,365 14,053 13,637

Loans (TE) 161,473 163,532 163,352 162,617 158,636

Total Earning Assets $179,130$180,090$181,345$186,382$183,841



Accretion income (included above) $6,127 $4,688 $6,525 $9,576 $6,562



Interest Expense

Interest-Bearing Deposits

NOW accounts $926 $1,091 $1,394 $1,265 $2,774

MMDA 1,998 2,326 2,823 3,764 9,748

Savings accounts 124 143 112 94 210

Retail CDs 3,744 5,301 7,484 9,136 11,064

Brokered CDs 6 9 9 14 306

Total Interest-Bearing Deposits 6,798 8,870 11,822 14,273 24,102

Non-Deposit Funding

Federal funds purchased and securities sold under agreements to repurchase7 8 9 25 40

FHLB advances 192 245 661 1,686 5,109

Other borrowings 4,638 4,635 3,558 3,487 3,511

Subordinated deferrable interest debentures 1,338 1,569 1,346 1,733 2,061

Total Non-Deposit Funding 6,175 6,457 5,574 6,931 10,721

Total Interest-Bearing Funding $12,973 $15,327 $17,396 $21,204 $34,823



Net Interest Income (TE) $166,157$164,763$163,949$165,178$149,018

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Yields^(1) Table 8

Three Months Ended

Mar Dec Sep Jun Mar

2021 2020 2020 2020 2020

Earning Assets

Federal funds sold 0.24%0.26%0.26%0.75%1.12%

Interest-bearing deposits in banks 0.10%0.11%0.13%0.12%1.16%

Time deposits in other banks 1.63%1.60%1.60%1.62%1.62%

Investment securities - taxable 2.72%2.48%2.49%2.93%2.98%

Investment securities - nontaxable (TE) 3.75%3.76%3.72%3.69%3.50%

Loans held for sale 3.42%3.01%2.74%3.50%3.46%

Loans (TE) 4.53%4.41%4.42%4.70%5.02%

Total Earning Assets 3.85%3.98%4.02%4.32%4.56%



Interest-Bearing Deposits

NOW accounts 0.12%0.15%0.20%0.21%0.49%

MMDA 0.17%0.20%0.26%0.36%0.98%

Savings accounts 0.06%0.07%0.06%0.05%0.13%

Retail CDs 0.73%1.00%1.31%1.49%1.70%

Brokered CDs 2.43%3.14%1.85%2.76%2.01%

Total Interest-Bearing Deposits 0.25%0.34%0.47%0.58%1.01%

Non-Deposit Funding

Federal funds purchased and securities sold under agreements to repurchase0.31%0.32%0.34%0.81%1.03%

FHLB advances 1.59%0.76%0.33%0.56%1.62%

Other borrowings 5.00%4.90%5.20%5.21%5.24%

Subordinated deferrable interest debentures 4.36%5.03%4.33%5.66%6.49%

Total Non-Deposit Funding 4.48%4.03%1.84%1.72%2.57%

Total Interest-Bearing Liabilities 0.46%0.55%0.62%0.75%1.24%



Net Interest Spread 3.39%3.43%3.40%3.57%3.32%



Net Interest Margin^(2) 3.57%3.64%3.64%3.83%3.70%



Total Cost of Funds^(3) 0.30%0.36%0.41%0.52%0.91%



(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21%.

(2) Rate calculated based on average earning assets.

(3) Rate calculated based on total average funding including noninterest-bearing deposits.

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Non-GAAP Reconciliations



Adjusted Net Income Table 9A

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands except per share data) 2021 2020 2020 2020 2020

Net income available to common shareholders $124,962 $94,285 $116,145 $32,236 $19,322



Adjustment items:

Merger and conversion charges - - (44) 895 540

Restructuring charges - - 50 1,463 -

Servicing right impairment (recovery) (10,639) 9,501 412 7,989 22,165

Gain on BOLI proceeds (603) - (103) (845) -

Expenses related to SEC and DOJ Investigation - 53 268 1,294 1,443

Natural disaster and pandemic charges (Note 1) - 235 470 2,043 548

(Gain) loss on sale of premises (264) (30) (97) 281 470

Tax effect of adjustment items (Note 2) 2,290 (2,049) (222) (2,933) (5,283)

After tax adjustment items (9,216) 7,710 734 10,187 19,883

Adjusted net income $115,746 $101,995 $116,879 $42,423 $39,205



Weighted average number of shares - diluted 69,740,860 69,493,105 69,346,141 69,292,972 69,502,022

Net income per diluted share $1.79 $1.36 $1.67 $0.47 $0.28

Adjusted net income per diluted share $1.66 $1.47 $1.69 $0.61 $0.56



Average assets $20,734,414 $19,876,338 $19,810,084 $19,222,181 $18,056,445

Return on average assets 2.44 %1.89 %2.33 %0.67 %0.43 %

Adjusted return on average assets 2.26 %2.04 %2.35 %0.89 %0.87 %



Average common equity $2,695,005 $2,622,942 $2,529,471 $2,478,373 $2,456,617

Average tangible common equity $1,696,946 $1,620,742 $1,523,066 $1,462,871 $1,436,108

Return on average common equity 18.80 %14.30 %18.27 %5.23 %3.16 %

Adjusted return on average tangible common equity27.66 %25.04 %30.53 %11.66 %10.98 %



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 1Q20 are nondeductible for tax purposes.

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Non-GAAP Reconciliations (continued)



Adjusted Efficiency Ratio (TE) Table 9B

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Adjusted Noninterest Expense

Total noninterest expense $148,798 $151,116 $153,692 $155,768 $138,053

Adjustment items:

Merger and conversion charges - - 44 (895) (540)

Restructuring charges - - (50) (1,463) -

Expenses related to SEC and DOJ Investigation- (53) (268) (1,294) (1,443)

Natural disaster and pandemic charges - (235) (470) (2,043) (548)

Gain (loss) on sale of premises 264 30 97 (281) (470)

Adjusted noninterest expense $149,062 $150,858 $153,045 $149,792 $135,052



Total Revenue

Net interest income $164,977 $163,456 $162,538 $163,814 $147,945

Noninterest income 117,973 112,143 159,018 120,960 54,379

Total revenue $282,950 $275,599 $321,556 $284,774 $202,324



Adjusted Total Revenue

Net interest income (TE) $166,157 $164,763 $163,949 $165,178 $149,018

Noninterest income 117,973 112,143 159,018 120,960 54,379

Total revenue (TE) 284,130 276,906 322,967 286,138 203,397

Adjustment items:

(Gain) loss on securities 12 - - (14) 9

Gain on BOLI proceeds (603) - (103) (845) -

Servicing right impairment (recovery) (10,639) 9,501 412 7,989 22,165

Adjusted total revenue (TE) $272,900 $286,407 $323,276 $293,268 $225,571



Efficiency ratio 52.59 %54.83 %47.80 %54.70 %68.23 %

Adjusted efficiency ratio (TE) 54.62 %52.67 %47.34 %51.08 %59.87 %



Tangible Book Value Per Share Table 9C

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands except per share data) 2021 2020 2020 2020 2020

Total shareholders' equity $2,757,596 $2,647,088 $2,564,683 $2,460,130 $2,437,150

Less:

Goodwill 928,005 928,005 928,005 928,005 931,947

Other intangibles, net 67,848 71,974 76,164 80,354 85,955

Total tangible shareholders' equity $1,761,743 $1,647,109 $1,560,514 $1,451,771 $1,419,248



Period end number of shares 69,713,426 69,541,481 69,490,546 69,462,782 69,441,274

Book value per share (period end) $39.56 $38.07 $36.91 $35.42 $35.10

Tangible book value per share (period end) $25.27 $23.69 $22.46 $20.90 $20.44

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Segment Reporting Table 10

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

Banking Division

Net interest income $112,816$112,964$119,562$120,330 $118,375

Provision for credit losses (23,904) 1,847 487 86,805 35,997

Noninterest income 16,738 15,659 15,265 14,468 17,773

Noninterest expense

Salaries and employee benefits 42,723 38,668 39,718 40,423 41,621

Occupancy and equipment expenses 10,120 10,958 11,955 11,679 10,347

Data processing and telecommunications expenses10,201 9,608 9,716 8,919 10,797

Other noninterest expenses 19,710 25,806 21,517 27,997 30,645

Total noninterest expense 82,754 85,040 82,906 89,018 93,410

Income (loss) before income tax expense 70,704 41,736 51,434 (41,025) 6,741

Income tax expense (benefit) 18,456 13,992 13,453 (8,582) 275

Net income (loss) $52,248 $27,744 $37,981 $(32,443)$6,466



Retail Mortgage Division

Net interest income $18,984 $19,908 $20,393 $24,302 $17,756

Provision for credit losses (4,553) (1,621) 15,051 423 1,997

Noninterest income 97,640 94,109 137,583 104,195 34,369

Noninterest expense

Salaries and employee benefits 49,838 50,165 53,500 50,003 31,097

Occupancy and equipment expenses 1,476 1,577 1,676 1,953 1,504

Data processing and telecommunications expenses1,546 1,534 2,349 1,406 986

Other noninterest expenses 8,189 7,442 7,889 6,949 5,875

Total noninterest expense 61,049 60,718 65,414 60,311 39,462

Income before income tax expense 60,128 54,920 77,511 67,763 10,666

Income tax expense 12,627 11,535 16,112 14,231 2,408

Net income $47,501 $43,385 $61,399 $53,532 $8,258



Warehouse Lending Division

Net interest income $9,906 $9,017 $6,546 $5,026 $3,302

Provision for credit losses (145) 1,673 495 403 (9)

Noninterest income 980 1,113 1,064 727 960

Noninterest expense

Salaries and employee benefits 330 296 266 209 210

Occupancy and equipment expenses 1 1 1 1 1

Data processing and telecommunications expenses49 101 73 55 41

Other noninterest expenses 33 26 28 88 34

Total noninterest expense 413 424 368 353 286

Income before income tax expense 10,618 8,033 6,747 4,997 3,985

Income tax expense 2,230 1,687 1,431 1,049 837

Net income $8,388 $6,346 $5,316 $3,948 $3,148

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Segment Reporting (continued) Table 10

Three Months Ended

Mar Dec Sep Jun Mar

(dollars in thousands) 2021 2020 2020 2020 2020

SBA Division

Net interest income $16,635 $14,909 $8,966 $7,034 $2,181

Provision for credit losses (547) (2,997) 4,297 2,322 (903)

Noninterest income 2,611 1,247 5,106 1,570 1,277

Noninterest expense

Salaries and employee benefits 1,382 1,233 1,572 2,612 1,476

Occupancy and equipment expenses 106 100 97 97 97

Data processing and telecommunications expenses1 1 4 15 13

Other noninterest expenses 295 363 595 359 515

Total noninterest expense 1,784 1,697 2,268 3,083 2,101

Income before income tax expense 18,009 17,456 7,507 3,199 2,260

Income tax expense 3,782 3,666 1,577 671 475

Net income $14,227 $13,790 $5,930 $2,528 $1,785



Premium Finance Division

Net interest income $6,636 $6,658 $7,071 $7,122 $6,331

Provision for credit losses 558 (412) (2,648) (1,792) 3,965

Noninterest income 4 15 - - -

Noninterest expense

Salaries and employee benefits 1,712 2,104 1,642 1,921 1,542

Occupancy and equipment expenses 78 73 76 77 79

Data processing and telecommunications expenses87 79 84 119 117

Other noninterest expenses 921 981 934 886 1,056

Total noninterest expense 2,798 3,237 2,736 3,003 2,794

Income (loss) before income tax expense 3,284 3,848 6,983 5,911 (428)

Income tax expense (benefit) 686 828 1,464 1,240 (93)

Net income (loss) $2,598 $3,020 $5,519 $4,671 $(335)



Total Consolidated

Net interest income $164,977$163,456$162,538$163,814$147,945

Provision for credit losses (28,591) (1,510) 17,682 88,161 41,047

Noninterest income 117,973 112,143 159,018 120,960 54,379

Noninterest expense

Salaries and employee benefits 95,985 92,466 96,698 95,168 75,946

Occupancy and equipment expenses 11,781 12,709 13,805 13,807 12,028

Data processing and telecommunications expenses11,884 11,323 12,226 10,514 11,954

Other noninterest expenses 29,148 34,618 30,963 36,279 38,125

Total noninterest expense 148,798 151,116 153,692 155,768 138,053

Income before income tax expense 162,743 125,993 150,182 40,845 23,224

Income tax expense 37,781 31,708 34,037 8,609 3,902

Net income $124,962$94,285 $116,145$32,236 $19,322

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SOURCE Ameris Bancorp