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Highlights of Ameris's results for the second quarter of 2023 include the following:
ATLANTA, July 27, 2023 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $62.6 million, or $0.91 per diluted share, for the quarter ended June 30, 2023, compared with $90.1 million, or $1.30 per diluted share, for the quarter ended June 30, 2022. Included in the Company's second quarter results was a $45.5 million provision for credit losses related to the updated economic forecast, compared with $14.9 million in the second quarter of last year.
For the year-to-date period ending June 30, 2023, the Company reported net income of $123.1 million, or $1.78 per diluted share, compared with $171.8 million, or $2.47 per diluted share, for the same period in 2022. The year-to-date period ending June 30, 2023 included a provision for credit losses of $95.2 million, compared with $21.2 million for the same period in 2022. The year-to-date period ending June 30, 2022 included a recovery of servicing right impairment $20.5 million, with no such recovery in the same period in 2023.
Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "We are pleased with our second quarter financial results. We continue to operate at a PPNR ROA above 2% with an efficiency ratio of 53.4%, while growing tangible book value by over 8% annualized. We increased our allowance for credit losses to 1.33% of loans, all due to the economic modeling forecast. Our credit metrics improved this quarter such that nonperforming assets now represent only 0.30% of total assets. We also grew core deposits in one of the most competitive margin scenarios imaginable. The diversification in our loan portfolio, combined with the core funding of our liabilities and our multiple revenue streams, gives us momentum as we move into the second half of 2023."
Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis (TE) was $210.5 million in the second quarter of 2023, a decrease of $2.1 million, or 1.0%, from last quarter and an increase of $18.2 million, or 9.4%, compared with the second quarter of 2022. The Company's net interest margin was 3.60% for the second quarter of 2023, down from 3.76% reported for the first quarter of 2023 and 3.66% reported for the second quarter of 2022. The decrease in net interest margin this quarter is primarily attributable to rising deposit costs in the current interest rate environment.
Yields on earning assets increased 27 basis points during the quarter to 5.52%, compared with 5.25% in the first quarter of 2023, and increased 164 basis points from 3.88% in the second quarter of 2022. Yields on loans increased to 5.66% during the second quarter of 2023, compared with 5.44% for the first quarter of 2023 and 4.32% for the second quarter of 2022.
Loan production in the banking division during the second quarter of 2023 was $544.3 million, with weighted average yields of 9.35%, compared with $563.0 million and 8.72%, respectively, in the first quarter of 2023 and $1.07 billion and 5.24%, respectively, in the second quarter of 2022. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $4.7 billion during the second quarter of 2023, with weighted average yields of 6.83%, compared with $3.4 billion and 6.57%, respectively, during the first quarter of 2023 and $5.3 billion and 4.29%, respectively, during the second quarter of 2022.
The Company's total cost of funds was 2.05% in the second quarter of 2023, an increase of 46 basis points compared with the first quarter of 2023. Deposit costs increased 63 basis points during the second quarter of 2023 to 1.76%, compared with 1.13% in the first quarter of 2023. Costs of interest-bearing deposits increased during the quarter from 1.82% in the first quarter of 2023 to 2.64% in the second quarter of 2023, reflecting a shift in mix to CDs in the rising rate environment.
Noninterest Income
Noninterest income increased $11.3 million, or 20.2%, in the second quarter of 2023 to $67.3 million, compared with $56.1 million for the first quarter of 2023, primarily as a result of increased mortgage banking activity, which increased by $9.4 million, or 29.8%, to $40.7 million in the second quarter of 2023, compared with $31.4 million for the first quarter of 2023. Gain on sale spreads increased to 2.18% in the second quarter of 2023 from 1.96% for the first quarter of 2023. Total production in the retail mortgage division increased $386.4 million, or 40.8%, to $1.33 billion in the second quarter of 2023, compared with $946.4 million for the first quarter of 2023. The retail mortgage open pipeline was $652.1 million at the end of the second quarter of 2023, compared with $725.9 million for the first quarter of 2023. Other noninterest income increased $1.6 million, or 12.5%, in the second quarter of 2023, compared with $12.7 million for the first quarter of 2023, primarily resulting from an increase in gain on sale of SBA loans of $880,000 and a gain on debt redemption of $1.0 million.
Noninterest Expense
Noninterest expense increased $9.0 million, or 6.4%, to $148.4 million during the second quarter of 2023, compared with $139.4 million for the first quarter of 2023. The increase in noninterest expenses was driven by a decrease in deferred loan origination costs of $2.5 million, a $2.2 million increase in variable compensation related to mortgage production and a $3.1 million increase in fraud/forgery and litigation resolution expenses. Management continues to focus on operating efficiency, and the adjusted efficiency ratio(1) increased to 53.41% in the second quarter of 2023, compared with 51.99% in the first quarter of 2023.
Income Tax Expense
The Company's effective tax rate for the second quarter of 2023 was 24.5%, compared with 23.1% for the first quarter of 2023. The increased rate for the second quarter of 2023 was primarily a result of increased permanent differences related to nondeductible compensation and FDIC insurance premiums and a reduction in tax benefits related to stock compensation vesting, compared with the first quarter of 2023.
Balance Sheet Trends
Total assets at June 30, 2023 were $25.80 billion, compared with $25.05 billion at December 31, 2022. Cash and cash equivalents increased 18.0% to $1.32 billion at June 30, 2023, compared with $1.12 billion at December 31, 2022. Debt securities available-for-sale decreased to $1.46 billion, compared with $1.50 billion at December 31, 2022. Loans, net of unearned income, increased $616.5 million, or 6.3% annualized, to $20.47 billion at June 30, 2023, compared with $19.86 billion at December 31, 2022. Loans held for sale decreased slightly to $391.5 million at June 30, 2023 from $392.1 million at December 31, 2022.
Investment securities remained consistent at $1.60 billion, or 6.8% of earning assets at the end of the second quarter of 2023, compared with $1.63 billion, or 7.2% of earning assets at December 31, 2022. This compares with $1.16 billion, or 5.5% of earning assets at the end of the second quarter of 2022. The Company did not deploy excess liquidity into the securities portfolio until after rates began rising during 2022; as a result, the unrealized loss position in the Company's available-for-sale securities portfolio remains modest at just 4.2% of the portfolio.
At June 30, 2023, total deposits amounted to $20.44 billion, compared with $19.46 billion at December 31, 2022. During the second quarter of 2023, deposits grew $545.7 million, with interest bearing demand accounts increasing $358.0 million, retail CDs increasing $268.6 million and brokered CDs increasing $357.8 million, with such increases offset in part by a $591.0 million decrease in noninterest bearing accounts. Due to the increased interest rate environment, the Company continued to see the shift of customer deposits from noninterest bearing accounts into interest bearing accounts, such that at June 30, 2023, noninterest bearing deposit accounts represented $6.71 billion, or 32.8% of total deposits, compared with $7.93 billion, or 40.7% of total deposits, at December 31, 2022.
During the second quarter of 2023, utilizing existing liquidity, the Company reduced borrowings with the FHLB by $875.0 million and redeemed $9.5 million in principal amount, at a discount, of its 4.25% Fixed-to-Floating Rate Subordinated Notes Due 2029.
Shareholders' equity at June 30, 2023 totaled $3.28 billion, an increase of $87.2 million, or 2.7%, from December 31, 2022. The increase in shareholders' equity was primarily the result of earnings of $123.1 million during the first six months of 2023, partially offset by dividends declared, share repurchases and an increase in other comprehensive loss of $4.1 million resulting from changes in interest rates on the Company's investment portfolio. Tangible book value per share(1) increased $1.50 per share, or 10.1% annualized, during the first six months of 2023 to $31.42 at June 30, 2023. The Company recorded dilution of $0.06 per share, or 0.2%, to tangible book value(1) from other comprehensive loss related to the increase in net unrealized losses on the securities portfolio during this same period. Tangible common equity as a percentage of tangible assets was 8.80% at June 30, 2023, compared with 8.67% at the end of 2022.
Credit Quality
Credit quality remains strong in the Company. During the second quarter of 2023, the Company recorded a provision for credit losses of $45.5 million, compared with a provision of $49.7 million in the first quarter of 2023. The second quarter provision was primarily attributable to the updated economic forecast and loan growth of $473.9 million during the quarter. Nonperforming assets as a percentage of total assets were down four basis points to 0.57% during the quarter. Approximately $69.7 million, or 47.6%, of the nonperforming assets at June 30, 2023 were GNMA-guaranteed mortgage loans, which have minimal loss exposure. Excluding these government-guaranteed loans, nonperforming assets as a percentage of total assets improved three basis points to 0.30% at June 30, 2023, compared with 0.33% at the first quarter of 2023. The net charge-off ratio was 28 basis points for the second quarter of 2023, compared with 22 basis points in the first quarter of 2023.
Conference Call
The Company will host a teleconference at 9:00 a.m. Eastern time on Friday, July 28, 2023, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-888-550-5279. The conference call access code is 9375737. A replay of the call will be available one hour after the end of the conference call until August 11, 2023. To listen to the replay, dial 1-800-770-2030. The conference replay access code is 9375737. The financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.
About Ameris Bancorp
Ameris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 164 locations in Georgia, Alabama, Florida, North Carolina and South Carolina at the end of the most recent quarter.
(1) Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9E.
This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP financial measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies.
This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2022 and the Company's subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Financial Highlights | Table 1 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
EARNINGS | |||||||||||||
Net income | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 90,066 | $ 123,056 | $ 171,764 | ||||||
Adjusted net income(1) | $ 62,635 | $ 59,935 | $ 81,086 | $ 91,817 | $ 81,473 | $ 122,570 | $ 156,512 | ||||||
COMMON SHARE DATA | |||||||||||||
Earnings per share available to common shareholders | |||||||||||||
Basic | $ 0.91 | $ 0.87 | $ 1.19 | $ 1.34 | $ 1.30 | $ 1.78 | $ 2.48 | ||||||
Diluted | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 1.30 | $ 1.78 | $ 2.47 | ||||||
Adjusted diluted EPS(1) | $ 0.91 | $ 0.86 | $ 1.17 | $ 1.32 | $ 1.18 | $ 1.77 | $ 2.25 | ||||||
Cash dividends per share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 | ||||||
Book value per share (period end) | $ 47.51 | $ 46.89 | $ 46.09 | $ 44.97 | $ 44.31 | $ 47.51 | $ 44.31 | ||||||
Tangible book value per share (period end)(1) | $ 31.42 | $ 30.79 | $ 29.92 | $ 28.62 | $ 27.89 | $ 31.42 | $ 27.89 | ||||||
Weighted average number of shares | |||||||||||||
Basic | 68,989,549 | 69,171,562 | 69,138,431 | 69,124,855 | 69,136,046 | 69,084,746 | 69,246,084 | ||||||
Diluted | 69,034,763 | 69,322,664 | 69,395,224 | 69,327,414 | 69,316,258 | 69,191,512 | 69,484,508 | ||||||
Period end number of shares | 69,139,783 | 69,373,863 | 69,369,050 | 69,352,709 | 69,360,461 | 69,139,783 | 69,360,461 | ||||||
Market data | |||||||||||||
High intraday price | $ 37.18 | $ 50.54 | $ 54.24 | $ 50.94 | $ 46.28 | $ 50.54 | $ 55.62 | ||||||
Low intraday price | $ 28.33 | $ 34.28 | $ 44.61 | $ 38.22 | $ 39.37 | $ 28.33 | $ 39.37 | ||||||
Period end closing price | $ 34.21 | $ 36.58 | $ 47.14 | $ 44.71 | $ 40.18 | $ 34.21 | $ 40.18 | ||||||
Average daily volume | $ 475,198 | $ 452,242 | $ 340,890 | $ 346,522 | $ 446,121 | $ 463,720 | 458,990 | ||||||
PERFORMANCE RATIOS | |||||||||||||
Return on average assets | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.54 % | 0.98 % | 1.48 % | ||||||
Adjusted return on average assets(1) | 0.98 % | 0.97 % | 1.32 % | 1.54 % | 1.40 % | 0.97 % | 1.35 % | ||||||
Return on average common equity | 7.63 % | 7.54 % | 10.30 % | 11.76 % | 11.87 % | 7.58 % | 11.47 % | ||||||
Adjusted return on average tangible common equity(1) | 11.53 % | 11.41 % | 15.78 % | 18.33 % | 17.18 % | 11.47 % | 16.79 % | ||||||
Earning asset yield (TE) | 5.52 % | 5.25 % | 4.91 % | 4.37 % | 3.88 % | 5.38 % | 3.72 % | ||||||
Total cost of funds | 2.05 % | 1.59 % | 0.94 % | 0.42 % | 0.22 % | 1.82 % | 0.22 % | ||||||
Net interest margin (TE) | 3.60 % | 3.76 % | 4.03 % | 3.97 % | 3.66 % | 3.68 % | 3.51 % | ||||||
Efficiency ratio | 53.60 % | 52.08 % | 49.57 % | 50.15 % | 51.67 % | 52.85 % | 53.49 % | ||||||
Adjusted efficiency ratio (TE)(1) | 53.41 % | 51.99 % | 49.61 % | 50.12 % | 53.66 % | 52.72 % | 55.26 % | ||||||
CAPITAL ADEQUACY (period end) | |||||||||||||
Shareholders' equity to assets | 12.73 % | 12.47 % | 12.76 % | 13.10 % | 12.97 % | 12.73 % | 12.97 % | ||||||
Tangible common equity to tangible assets(1) | 8.80 % | 8.55 % | 8.67 % | 8.75 % | 8.58 % | 8.80 % | 8.58 % | ||||||
OTHER DATA (period end) | |||||||||||||
Full time equivalent employees | |||||||||||||
Banking Division | 2,069 | 2,093 | 2,079 | 2,071 | 2,050 | 2,069 | 2,050 | ||||||
Retail Mortgage Division | 613 | 630 | 633 | 671 | 712 | 613 | 712 | ||||||
Warehouse Lending Division | 8 | 8 | 8 | 9 | 9 | 8 | 9 | ||||||
SBA Division | 35 | 39 | 39 | 40 | 36 | 35 | 36 | ||||||
Premium Finance Division | 76 | 78 | 76 | 77 | 78 | 76 | 78 | ||||||
Total Ameris Bancorp FTE headcount | 2,801 | 2,848 | 2,835 | 2,868 | 2,885 | 2,801 | 2,885 | ||||||
Branch locations | 164 | 164 | 164 | 164 | 164 | 164 | 164 | ||||||
Deposits per branch location | $ 124,653 | $ 121,326 | $ 118,675 | $ 118,701 | $ 120,030 | $ 124,653 | $ 120,030 | ||||||
(1)Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9E | |||||||||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Income Statement | Table 2 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Interest income | |||||||||||||
Interest and fees on loans | $ 292,012 | $ 271,964 | $ 250,263 | $ 216,400 | $ 190,740 | $ 563,976 | $ 368,306 | ||||||
Interest on taxable securities | 15,915 | 14,300 | 13,029 | 10,324 | 7,064 | 30,215 | 11,303 | ||||||
Interest on nontaxable securities | 339 | 339 | 358 | 363 | 269 | 678 | 455 | ||||||
Interest on deposits in other banks | 13,686 | 9,113 | 9,984 | 7,188 | 4,463 | 22,799 | 5,836 | ||||||
Interest on federal funds sold | — | — | 8 | 27 | 32 | — | 42 | ||||||
Total interest income | 321,952 | 295,716 | 273,642 | 234,302 | 202,568 | 617,668 | 385,942 | ||||||
Interest expense | |||||||||||||
Interest on deposits | 88,087 | 53,182 | 33,071 | 14,034 | 4,908 | 141,269 | 9,000 | ||||||
Interest on other borrowings | 24,325 | 30,882 | 16,434 | 7,287 | 6,296 | 55,207 | 13,034 | ||||||
Total interest expense | 112,412 | 84,064 | 49,505 | 21,321 | 11,204 | 196,476 | 22,034 | ||||||
Net interest income | 209,540 | 211,652 | 224,137 | 212,981 | 191,364 | 421,192 | 363,908 | ||||||
Provision for loan losses | 43,643 | 49,376 | 24,648 | 17,469 | 13,227 | 93,019 | 10,493 | ||||||
Provision for unfunded commitments | 1,873 | 346 | 8,246 | 192 | 1,779 | 2,219 | 10,788 | ||||||
Provision for other credit losses | — | 7 | (4) | (9) | (82) | 7 | (126) | ||||||
Provision for credit losses | 45,516 | 49,729 | 32,890 | 17,652 | 14,924 | 95,245 | 21,155 | ||||||
Net interest income after provision for credit losses | 164,024 | 161,923 | 191,247 | 195,329 | 176,440 | 325,947 | 342,753 | ||||||
Noninterest income | |||||||||||||
Service charges on deposit accounts | 11,295 | 10,936 | 11,125 | 11,168 | 11,148 | 22,231 | 22,206 | ||||||
Mortgage banking activity | 40,742 | 31,392 | 22,855 | 40,350 | 58,761 | 72,134 | 121,699 | ||||||
Other service charges, commissions and fees | 975 | 971 | 968 | 970 | 998 | 1,946 | 1,937 | ||||||
Gain (loss) on securities | (6) | 6 | 3 | (21) | 248 | — | 221 | ||||||
Other noninterest income | 14,343 | 12,745 | 13,397 | 12,857 | 12,686 | 27,088 | 24,689 | ||||||
Total noninterest income | 67,349 | 56,050 | 48,348 | 65,324 | 83,841 | 123,399 | 170,752 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 81,336 | 80,910 | 75,196 | 78,697 | 81,545 | 162,246 | 165,826 | ||||||
Occupancy and equipment | 12,522 | 12,986 | 12,905 | 12,983 | 12,746 | 25,508 | 25,473 | ||||||
Data processing and communications expenses | 13,451 | 13,034 | 12,486 | 12,015 | 12,155 | 26,485 | 24,727 | ||||||
Credit resolution-related expenses(1) | 848 | 435 | 372 | 126 | 496 | 1,283 | (469) | ||||||
Advertising and marketing | 2,627 | 3,532 | 3,818 | 3,553 | 3,122 | 6,159 | 5,110 | ||||||
Amortization of intangible assets | 4,688 | 4,706 | 4,709 | 4,710 | 5,144 | 9,394 | 10,325 | ||||||
Merger and conversion charges | — | — | 235 | — | — | — | 977 | ||||||
Other noninterest expenses | 32,931 | 23,818 | 25,340 | 27,494 | 26,988 | 56,749 | 54,047 | ||||||
Total noninterest expense | 148,403 | 139,421 | 135,061 | 139,578 | 142,196 | 287,824 | 286,016 | ||||||
Income before income tax expense | 82,970 | 78,552 | 104,534 | 121,075 | 118,085 | 161,522 | 227,489 | ||||||
Income tax expense | 20,335 | 18,131 | 22,313 | 28,520 | 28,019 | 38,466 | 55,725 | ||||||
Net income | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 90,066 | $ 123,056 | $ 171,764 | ||||||
Diluted earnings per common share | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 1.30 | $ 1.78 | $ 2.47 | ||||||
(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns. | |||||||||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||
FINANCIAL TABLES | |||||||||
Period End Balance Sheet | Table 3 | ||||||||
Jun | Mar | Dec | Sep | Jun | |||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||
Assets | |||||||||
Cash and due from banks | $ 284,552 | $ 266,400 | $ 284,567 | $ 269,193 | $ 345,627 | ||||
Federal funds sold and interest-bearing deposits in banks | 1,034,578 | 1,754,453 | 833,565 | 1,061,975 | 1,961,209 | ||||
Debt securities available-for-sale, at fair value | 1,460,356 | 1,496,836 | 1,500,060 | 1,255,149 | 1,052,268 | ||||
Debt securities held-to-maturity, at amortized cost | 142,513 | 134,175 | 134,864 | 130,214 | 111,654 | ||||
Other investments | 109,656 | 146,715 | 110,992 | 60,560 | 49,500 | ||||
Loans held for sale | 391,472 | 395,096 | 392,078 | 297,987 | 555,665 | ||||
Loans, net of unearned income | 20,471,759 | 19,997,871 | 19,855,253 | 18,806,856 | 17,561,022 | ||||
Allowance for credit losses | (272,071) | (242,658) | (205,677) | (184,891) | (172,642) | ||||
Loans, net | 20,199,688 | 19,755,213 | 19,649,576 | 18,621,965 | 17,388,380 | ||||
Other real estate owned | 6,170 | 1,502 | 843 | 843 | 835 | ||||
Premises and equipment, net | 218,662 | 218,878 | 220,283 | 222,694 | 224,249 | ||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,023,056 | ||||
Other intangible assets, net | 96,800 | 101,488 | 106,194 | 110,903 | 115,613 | ||||
Cash value of bank owned life insurance | 391,483 | 389,201 | 388,405 | 386,533 | 384,862 | ||||
Other assets | 449,042 | 412,781 | 416,213 | 372,570 | 474,552 | ||||
Total assets | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | $ 23,687,470 | ||||
Liabilities | |||||||||
Deposits | |||||||||
Noninterest-bearing | $ 6,706,897 | $ 7,297,893 | $ 7,929,579 | $ 8,343,200 | $ 8,262,929 | ||||
Interest-bearing | 13,736,228 | 12,599,562 | 11,533,159 | 11,123,719 | 11,422,053 | ||||
Total deposits | 20,443,125 | 19,897,455 | 19,462,738 | 19,466,919 | 19,684,982 | ||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | — | — | 953 | ||||
Other borrowings | 1,536,989 | 2,401,327 | 1,875,736 | 725,664 | 425,592 | ||||
Subordinated deferrable interest debentures | 129,319 | 128,820 | 128,322 | 127,823 | 127,325 | ||||
Other liabilities | 406,555 | 407,587 | 389,090 | 374,181 | 375,242 | ||||
Total liabilities | 22,515,988 | 22,835,189 | 21,855,886 | 20,694,587 | 20,614,094 | ||||
Shareholders' Equity | |||||||||
Preferred stock | — | — | — | — | — | ||||
Common stock | 72,515 | 72,484 | 72,264 | 72,247 | 72,251 | ||||
Capital stock | 1,939,865 | 1,937,664 | 1,935,211 | 1,932,906 | 1,931,088 | ||||
Retained earnings | 1,414,742 | 1,362,512 | 1,311,258 | 1,239,477 | 1,157,359 | ||||
Accumulated other comprehensive income (loss), net of tax | (50,618) | (35,581) | (46,507) | (50,734) | (12,635) | ||||
Treasury stock | (91,874) | (83,884) | (74,826) | (74,826) | (74,687) | ||||
Total shareholders' equity | 3,284,630 | 3,253,195 | 3,197,400 | 3,119,070 | 3,073,376 | ||||
Total liabilities and shareholders' equity | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | $ 23,687,470 | ||||
Other Data | |||||||||
Earning assets | $ 23,610,334 | $ 23,925,146 | $ 22,826,812 | $ 21,612,741 | $ 21,291,318 | ||||
Intangible assets | 1,112,446 | 1,117,134 | 1,121,840 | 1,133,974 | 1,138,669 | ||||
Interest-bearing liabilities | 15,402,536 | 15,129,709 | 13,537,217 | 11,977,206 | 11,975,923 | ||||
Average assets | 25,631,846 | 25,115,927 | 24,354,979 | 23,598,465 | 23,405,201 | ||||
Average common shareholders' equity | 3,293,049 | 3,250,289 | 3,168,320 | 3,123,718 | 3,043,280 | ||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Asset Quality Information | Table 4 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Allowance for Credit Losses | |||||||||||||
Balance at beginning of period | $ 295,497 | $ 258,163 | $ 229,135 | $ 216,703 | $ 203,615 | $ 258,163 | $ 200,981 | ||||||
Adoption of ASU 2022-02 | — | (1,711) | — | — | — | (1,711) | — | ||||||
Provision for loan losses | 43,643 | 49,376 | 24,648 | 17,469 | 13,227 | 93,019 | 10,493 | ||||||
Provision for unfunded commitments | 1,873 | 346 | 8,246 | 192 | 1,779 | 2,219 | 10,788 | ||||||
Provision for other credit losses | — | 7 | (4) | (9) | (82) | 7 | (126) | ||||||
Provision for credit losses | 45,516 | 49,729 | 32,890 | 17,652 | 14,924 | 95,245 | 21,155 | ||||||
Charge-offs | 20,670 | 14,956 | 8,371 | 9,272 | 6,853 | 35,626 | 15,432 | ||||||
Recoveries | 6,440 | 4,272 | 4,509 | 4,052 | 5,017 | 10,712 | 9,999 | ||||||
Net charge-offs (recoveries) | 14,230 | 10,684 | 3,862 | 5,220 | 1,836 | 24,914 | 5,433 | ||||||
Ending balance | $ 326,783 | $ 295,497 | $ 258,163 | $ 229,135 | $ 216,703 | $ 326,783 | $ 216,703 | ||||||
Allowance for loan losses | $ 272,071 | $ 242,658 | $ 205,677 | $ 184,891 | $ 172,642 | $ 272,071 | $ 172,642 | ||||||
Allowance for unfunded commitments | 54,630 | 52,757 | 52,411 | 44,165 | 43,973 | 54,630 | 43,973 | ||||||
Allowance for other credit losses | 82 | 82 | 75 | 79 | 88 | 82 | 88 | ||||||
Total allowance for credit losses | $ 326,783 | $ 295,497 | $ 258,163 | $ 229,135 | $ 216,703 | $ 326,783 | $ 216,703 | ||||||
Net Charge-off Information | |||||||||||||
Charge-offs | |||||||||||||
Commercial, financial and agricultural | $ 13,316 | $ 12,233 | $ 5,108 | $ 4,722 | $ 4,391 | $ 25,549 | $ 8,805 | ||||||
Consumer | 2,052 | 1,140 | 1,136 | 1,228 | 1,137 | 3,192 | 2,562 | ||||||
Indirect automobile | 65 | 34 | 86 | 50 | 41 | 99 | 129 | ||||||
Premium Finance | 1,848 | 1,421 | 1,812 | 1,205 | 1,066 | 3,269 | 2,435 | ||||||
Real estate - construction and development | — | — | 27 | — | — | — | — | ||||||
Real estate - commercial and farmland | 3,320 | — | 196 | 2,014 | 81 | 3,320 | 1,364 | ||||||
Real estate - residential | 69 | 128 | 6 | 53 | 137 | 197 | 137 | ||||||
Total charge-offs | 20,670 | 14,956 | 8,371 | 9,272 | 6,853 | 35,626 | 15,432 | ||||||
Recoveries | |||||||||||||
Commercial, financial and agricultural | 3,545 | 2,043 | 2,072 | 2,201 | 2,785 | 5,588 | 5,681 | ||||||
Consumer | 194 | 297 | 217 | 277 | 230 | 491 | 388 | ||||||
Indirect automobile | 225 | 216 | 229 | 276 | 265 | 441 | 540 | ||||||
Premium Finance | 1,680 | 1,382 | 1,682 | 1,023 | 1,113 | 3,062 | 2,360 | ||||||
Real estate - construction and development | 472 | 100 | 223 | 96 | 355 | 572 | 573 | ||||||
Real estate - commercial and farmland | 61 | 44 | 48 | 96 | 44 | 105 | 81 | ||||||
Real estate - residential | 263 | 190 | 38 | 83 | 225 | 453 | 376 | ||||||
Total recoveries | 6,440 | 4,272 | 4,509 | 4,052 | 5,017 | 10,712 | 9,999 | ||||||
Net charge-offs (recoveries) | $ 14,230 | $ 10,684 | $ 3,862 | $ 5,220 | $ 1,836 | $ 24,914 | $ 5,433 | ||||||
Non-Performing Assets | |||||||||||||
Nonaccrual portfolio loans | $ 57,025 | $ 68,028 | $ 65,221 | $ 64,055 | $ 72,352 | $ 57,025 | $ 72,352 | ||||||
Other real estate owned | 6,170 | 1,502 | 843 | 843 | 835 | 6,170 | 835 | ||||||
Repossessed assets | 9 | 25 | 28 | 60 | 122 | 9 | 122 | ||||||
Accruing loans delinquent 90 days or more | 13,424 | 15,792 | 17,865 | 12,378 | 8,542 | 13,424 | 8,542 | ||||||
Non-performing portfolio assets | $ 76,628 | $ 85,347 | $ 83,957 | $ 77,336 | $ 81,851 | $ 76,628 | $ 81,851 | ||||||
Serviced GNMA-guaranteed mortgage nonaccrual loans | 69,655 | 74,999 | 69,587 | 54,621 | 50,560 | 69,655 | 50,560 | ||||||
Total non-performing assets | $ 146,283 | $ 160,346 | $ 153,544 | $ 131,957 | $ 132,411 | $ 146,283 | $ 132,411 | ||||||
Asset Quality Ratios | |||||||||||||
Non-performing portfolio assets as a percent of total assets | 0.30 % | 0.33 % | 0.34 % | 0.32 % | 0.35 % | 0.30 % | 0.35 % | ||||||
Total non-performing assets as a percent of total assets | 0.57 % | 0.61 % | 0.61 % | 0.55 % | 0.56 % | 0.57 % | 0.56 % | ||||||
Net charge-offs as a percent of average loans (annualized) | 0.28 % | 0.22 % | 0.08 % | 0.11 % | 0.04 % | 0.25 % | 0.07 % | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||
FINANCIAL TABLES | |||||||||
Loan Information | Table 5 | ||||||||
Jun | Mar | Dec | Sep | Jun | |||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||
Loans by Type | |||||||||
Commercial, financial and agricultural | $ 2,718,831 | $ 2,722,180 | $ 2,679,403 | $ 2,245,287 | $ 2,022,845 | ||||
Consumer | 307,486 | 349,775 | 384,037 | 162,345 | 167,237 | ||||
Indirect automobile | 63,231 | 83,466 | 108,648 | 137,183 | 172,245 | ||||
Mortgage warehouse | 1,147,413 | 958,418 | 1,038,924 | 980,342 | 949,191 | ||||
Municipal | 510,410 | 505,515 | 509,151 | 516,797 | 529,268 | ||||
Premium Finance | 988,731 | 947,257 | 1,023,479 | 1,062,724 | 942,357 | ||||
Real estate - construction and development | 2,217,744 | 2,144,605 | 2,086,438 | 2,009,726 | 1,747,284 | ||||
Real estate - commercial and farmland | 7,815,779 | 7,721,732 | 7,604,868 | 7,516,309 | 7,156,017 | ||||
Real estate - residential | 4,702,134 | 4,564,923 | 4,420,305 | 4,176,143 | 3,874,578 | ||||
Total loans | $ 20,471,759 | $ 19,997,871 | $ 19,855,253 | $ 18,806,856 | $ 17,561,022 | ||||
Loans by Risk Grade | |||||||||
Grades 1 through 5 - Pass | $ 20,114,816 | $ 19,654,232 | $ 19,513,726 | $ 18,483,046 | $ 17,296,520 | ||||
Grade 6 - Other assets especially mentioned | 171,035 | 116,345 | 104,614 | 110,408 | 68,444 | ||||
Grade 7 - Substandard | 185,908 | 227,294 | 236,913 | 213,402 | 196,058 | ||||
Grade 8 - Doubtful | — | — | — | — | — | ||||
Grade 9 - Loss | — | — | — | — | — | ||||
Total loans | $ 20,471,759 | $ 19,997,871 | $ 19,855,253 | $ 18,806,856 | $ 17,561,022 | ||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Average Balances | Table 6 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Earning Assets | |||||||||||||
Federal funds sold | $ — | $ — | $ 924 | $ 5,000 | $ 17,692 | $ — | $ 18,840 | ||||||
Interest-bearing deposits in banks | 998,609 | 859,614 | 1,009,935 | 1,394,529 | 2,209,761 | 929,496 | 2,798,231 | ||||||
Debt securities - taxable | 1,582,076 | 1,586,404 | 1,451,861 | 1,242,811 | 932,824 | 1,584,228 | 779,016 | ||||||
Debt securities - nontaxable | 42,580 | 43,052 | 44,320 | 45,730 | 39,236 | 42,814 | 34,446 | ||||||
Other investments | 117,020 | 131,044 | 83,730 | 51,209 | 49,550 | 123,994 | 48,716 | ||||||
Loans held for sale | 577,606 | 490,295 | 371,952 | 471,070 | 944,964 | 534,192 | 1,020,611 | ||||||
Loans | 20,164,938 | 19,820,749 | 19,212,560 | 18,146,083 | 16,861,674 | 19,993,794 | 16,344,409 | ||||||
Total Earning Assets | $ 23,482,829 | $ 22,931,158 | $ 22,175,282 | $ 21,356,432 | $ 21,055,701 | $ 23,208,518 | $ 21,044,269 | ||||||
Deposits | |||||||||||||
Noninterest-bearing deposits | $ 6,729,789 | $ 7,136,373 | $ 8,138,887 | $ 8,259,625 | $ 7,955,765 | $ 6,931,852 | $ 7,807,929 | ||||||
NOW accounts | 3,949,850 | 4,145,991 | 3,621,454 | 3,701,045 | 3,695,490 | 4,047,484 | 3,690,161 | ||||||
MMDA | 5,002,590 | 4,994,195 | 5,161,047 | 5,026,815 | 5,087,199 | 4,998,417 | 5,163,636 | ||||||
Savings accounts | 1,009,749 | 1,005,614 | 1,010,966 | 1,030,298 | 1,007,340 | 1,007,693 | 990,625 | ||||||
Retail CDs | 2,024,014 | 1,612,325 | 1,450,037 | 1,506,761 | 1,693,740 | 1,819,307 | 1,733,656 | ||||||
Brokered CDs | 1,393,206 | 125,133 | — | — | — | 762,672 | — | ||||||
Total Deposits | 20,109,198 | 19,019,631 | 19,382,391 | 19,524,544 | 19,439,534 | 19,567,425 | 19,386,007 | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | 1 | 92 | 1,854 | — | 2,931 | ||||||
FHLB advances | 1,408,855 | 1,968,811 | 918,228 | 94,357 | 48,746 | 1,687,286 | 48,766 | ||||||
Other borrowings | 316,626 | 361,445 | 377,056 | 376,942 | 376,829 | 338,912 | 410,058 | ||||||
Subordinated deferrable interest debentures | 129,056 | 128,557 | 128,060 | 127,560 | 127,063 | 128,808 | 126,814 | ||||||
Total Non-Deposit Funding | 1,854,537 | 2,458,813 | 1,423,345 | 598,951 | 554,492 | 2,155,006 | 588,569 | ||||||
Total Funding | $ 21,963,735 | $ 21,478,444 | $ 20,805,736 | $ 20,123,495 | $ 19,994,026 | $ 21,722,431 | $ 19,974,576 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Interest Income and Interest Expense (TE) | Table 7 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Interest Income | |||||||||||||
Federal funds sold | $ — | $ — | $ 8 | $ 27 | $ 32 | $ — | $ 42 | ||||||
Interest-bearing deposits in banks | 13,686 | 9,113 | 9,984 | 7,188 | 4,463 | 22,799 | 5,836 | ||||||
Debt securities - taxable | 15,915 | 14,300 | 13,029 | 10,324 | 7,064 | 30,215 | 11,303 | ||||||
Debt securities - nontaxable (TE) | 430 | 429 | 454 | 459 | 341 | 859 | 576 | ||||||
Loans held for sale | 8,398 | 7,007 | 5,519 | 6,012 | 10,036 | 15,405 | 18,168 | ||||||
Loans (TE) | 284,471 | 265,802 | 245,603 | 211,223 | 181,602 | 550,273 | 352,000 | ||||||
Total Earning Assets | $ 322,900 | $ 296,651 | $ 274,597 | $ 235,233 | $ 203,538 | $ 619,551 | $ 387,925 | ||||||
Interest Expense | |||||||||||||
Interest-Bearing Deposits | |||||||||||||
NOW accounts | $ 18,003 | $ 15,033 | $ 8,564 | $ 3,733 | $ 1,246 | $ 33,036 | $ 2,070 | ||||||
MMDA | 35,224 | 27,809 | 20,683 | 8,613 | 2,204 | 63,033 | 3,847 | ||||||
Savings accounts | 2,296 | 1,288 | 654 | 360 | 140 | 3,584 | 273 | ||||||
Retail CDs | 14,751 | 7,629 | 3,170 | 1,328 | 1,318 | 22,380 | 2,810 | ||||||
Brokered CDs | 17,813 | 1,423 | — | — | — | 19,236 | — | ||||||
Total Interest-Bearing Deposits | 88,087 | 53,182 | 33,071 | 14,034 | 4,908 | 141,269 | 9,000 | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | — | — | 1 | — | 4 | ||||||
FHLB advances | 17,222 | 22,448 | 8,801 | 527 | 192 | 39,670 | 382 | ||||||
Other borrowings | 3,902 | 5,349 | 4,953 | 4,655 | 4,437 | 9,251 | 9,601 | ||||||
Subordinated deferrable interest debentures | 3,201 | 3,085 | 2,680 | 2,105 | 1,666 | 6,286 | 3,047 | ||||||
Total Non-Deposit Funding | 24,325 | 30,882 | 16,434 | 7,287 | 6,296 | 55,207 | 13,034 | ||||||
Total Interest-Bearing Funding | $ 112,412 | $ 84,064 | $ 49,505 | $ 21,321 | $ 11,204 | $ 196,476 | $ 22,034 | ||||||
Net Interest Income (TE) | $ 210,488 | $ 212,587 | $ 225,092 | $ 213,912 | $ 192,334 | $ 423,075 | $ 365,891 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Yields(1) | Table 8 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | |||||||
Earning Assets | |||||||||||||
Federal funds sold | — % | — % | 3.43 % | 2.14 % | 0.73 % | — % | 0.45 % | ||||||
Interest-bearing deposits in banks | 5.50 % | 4.30 % | 3.92 % | 2.04 % | 0.81 % | 4.95 % | 0.42 % | ||||||
Debt securities - taxable | 4.03 % | 3.66 % | 3.56 % | 3.30 % | 3.04 % | 3.85 % | 2.93 % | ||||||
Debt securities - nontaxable (TE) | 4.05 % | 4.04 % | 4.06 % | 3.98 % | 3.49 % | 4.05 % | 3.37 % | ||||||
Loans held for sale | 5.83 % | 5.80 % | 5.89 % | 5.06 % | 4.26 % | 5.82 % | 3.59 % | ||||||
Loans (TE) | 5.66 % | 5.44 % | 5.07 % | 4.62 % | 4.32 % | 5.55 % | 4.34 % | ||||||
Total Earning Assets | 5.52 % | 5.25 % | 4.91 % | 4.37 % | 3.88 % | 5.38 % | 3.72 % | ||||||
Interest-Bearing Deposits | |||||||||||||
NOW accounts | 1.83 % | 1.47 % | 0.94 % | 0.40 % | 0.14 % | 1.65 % | 0.11 % | ||||||
MMDA | 2.82 % | 2.26 % | 1.59 % | 0.68 % | 0.17 % | 2.54 % | 0.15 % | ||||||
Savings accounts | 0.91 % | 0.52 % | 0.26 % | 0.14 % | 0.06 % | 0.72 % | 0.06 % | ||||||
Retail CDs | 2.92 % | 1.92 % | 0.87 % | 0.35 % | 0.31 % | 2.48 % | 0.33 % | ||||||
Brokered CDs | 5.13 % | 4.61 % | — % | — % | — % | 5.09 % | — % | ||||||
Total Interest-Bearing Deposits | 2.64 % | 1.82 % | 1.17 % | 0.49 % | 0.17 % | 2.25 % | 0.16 % | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — % | — % | — % | — % | 0.22 % | — % | 0.28 % | ||||||
FHLB advances | 4.90 % | 4.62 % | 3.80 % | 2.22 % | 1.58 % | 4.74 % | 1.58 % | ||||||
Other borrowings | 4.94 % | 6.00 % | 5.21 % | 4.90 % | 4.72 % | 5.50 % | 4.72 % | ||||||
Subordinated deferrable interest debentures | 9.95 % | 9.73 % | 8.30 % | 6.55 % | 5.26 % | 9.84 % | 4.85 % | ||||||
Total Non-Deposit Funding | 5.26 % | 5.09 % | 4.58 % | 4.83 % | 4.55 % | 5.17 % | 4.47 % | ||||||
Total Interest-Bearing Liabilities | 2.96 % | 2.38 % | 1.55 % | 0.71 % | 0.37 % | 2.68 % | 0.37 % | ||||||
Net Interest Spread | 2.56 % | 2.87 % | 3.36 % | 3.66 % | 3.51 % | 2.70 % | 3.35 % | ||||||
Net Interest Margin(2) | 3.60 % | 3.76 % | 4.03 % | 3.97 % | 3.66 % | 3.68 % | 3.51 % | ||||||
Total Cost of Funds(3) | 2.05 % | 1.59 % | 0.94 % | 0.42 % | 0.22 % | 1.82 % | 0.22 % | ||||||
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21%. | |||||||||||||
(2) Rate calculated based on average earning assets. | |||||||||||||
(3) Rate calculated based on total average funding including noninterest-bearing deposits. | |||||||||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Non-GAAP Reconciliations | |||||||||||||
Adjusted Net Income | Table 9A | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Net income available to common shareholders | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 90,066 | $ 123,056 | $ 171,764 | ||||||
Adjustment items: | |||||||||||||
Merger and conversion charges | — | — | 235 | — | — | — | 977 | ||||||
(Gain) loss on sale of MSR | — | — | (1,672) | 316 | — | — | |||||||
Servicing right impairment (recovery) | — | — | — | (1,332) | (10,838) | — | (20,492) | ||||||
Gain on BOLI proceeds | — | (486) | — | (55) | — | (486) | — | ||||||
Natural disaster and pandemic charges | — | — | — | 151 | — | — | — | ||||||
(Gain) loss on bank premises | — | — | — | — | (39) | — | (45) | ||||||
Tax effect of adjustment items (Note 1) | — | — | 302 | 182 | 2,284 | — | 4,308 | ||||||
After tax adjustment items | — | (486) | (1,135) | (738) | (8,593) | (486) | (15,252) | ||||||
Adjusted net income | $ 62,635 | $ 59,935 | $ 81,086 | $ 91,817 | $ 81,473 | $ 122,570 | $ 156,512 | ||||||
Weighted average number of shares - diluted | 69,034,763 | 69,322,664 | 69,395,224 | 69,327,414 | 69,316,258 | 69,191,512 | 69,484,508 | ||||||
Net income per diluted share | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 1.30 | $ 1.78 | $ 2.47 | ||||||
Adjusted net income per diluted share | $ 0.91 | $ 0.86 | $ 1.17 | $ 1.32 | $ 1.18 | $ 1.77 | $ 2.25 | ||||||
Average assets | $ 25,631,846 | $ 25,115,927 | $ 24,354,979 | $ 23,598,465 | $ 23,405,201 | $ 25,375,312 | $ 23,340,785 | ||||||
Return on average assets | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.54 % | 0.98 % | 1.48 % | ||||||
Adjusted return on average assets | 0.98 % | 0.97 % | 1.32 % | 1.54 % | 1.40 % | 0.97 % | 1.35 % | ||||||
Average common equity | $ 3,293,049 | $ 3,250,289 | $ 3,168,320 | $ 3,123,718 | $ 3,043,280 | $ 3,271,787 | $ 3,019,100 | ||||||
Average tangible common equity | $ 2,178,323 | $ 2,130,856 | $ 2,039,094 | $ 1,987,385 | $ 1,902,265 | $ 2,154,720 | $ 1,880,112 | ||||||
Return on average common equity | 7.63 % | 7.54 % | 10.30 % | 11.76 % | 11.87 % | 7.58 % | 11.47 % | ||||||
Adjusted return on average tangible common equity | 11.53 % | 11.41 % | 15.78 % | 18.33 % | 17.18 % | 11.47 % | 16.79 % | ||||||
Note 1: Tax effect is calculated utilizing a 21% rate for taxable adjustments. Gain on BOLI proceeds is non-taxable and no tax effect is included. A portion of the merger and conversion charges for the six months ended June 2022 are nondeductible for tax purposes. |
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Non-GAAP Reconciliations (continued) | |||||||||||||
Adjusted Efficiency Ratio (TE) | Table 9B | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Adjusted Noninterest Expense | |||||||||||||
Total noninterest expense | $ 148,403 | $ 139,421 | $ 135,061 | $ 139,578 | $ 142,196 | $ 287,824 | $ 286,016 | ||||||
Adjustment items: | |||||||||||||
Merger and conversion charges | — | — | (235) | — | — | — | (977) | ||||||
Natural disaster and pandemic charges | — | — | — | (151) | — | — | — | ||||||
Gain (loss) on bank premises | — | — | — | — | 39 | — | 45 | ||||||
Adjusted noninterest expense | $ 148,403 | $ 139,421 | $ 134,826 | $ 139,427 | $ 142,235 | $ 287,824 | $ 285,084 | ||||||
Total Revenue | |||||||||||||
Net interest income | $ 209,540 | $ 211,652 | $ 224,137 | $ 212,981 | $ 191,364 | $ 421,192 | $ 363,908 | ||||||
Noninterest income | 67,349 | 56,050 | 48,348 | 65,324 | 83,841 | 123,399 | 170,752 | ||||||
Total revenue | $ 276,889 | $ 267,702 | $ 272,485 | $ 278,305 | $ 275,205 | $ 544,591 | $ 534,660 | ||||||
Adjusted Total Revenue | |||||||||||||
Net interest income (TE) | $ 210,488 | $ 212,587 | $ 225,092 | $ 213,912 | $ 192,334 | $ 423,075 | $ 365,891 | ||||||
Noninterest income | 67,349 | 56,050 | 48,348 | 65,324 | 83,841 | 123,399 | 170,752 | ||||||
Total revenue (TE) | 277,837 | 268,637 | 273,440 | 279,236 | 276,175 | 546,474 | 536,643 | ||||||
Adjustment items: | |||||||||||||
(Gain) loss on securities | 6 | (6) | (3) | 21 | (248) | — | (221) | ||||||
(Gain) loss on sale of MSR | — | — | (1,672) | 316 | — | — | — | ||||||
Gain on BOLI proceeds | — | (486) | — | (55) | — | (486) | — | ||||||
Servicing right impairment (recovery) | — | — | — | (1,332) | (10,838) | — | (20,492) | ||||||
Adjusted total revenue (TE) | $ 277,843 | $ 268,145 | $ 271,765 | $ 278,186 | $ 265,089 | $ 545,988 | $ 515,930 | ||||||
Efficiency ratio | 53.60 % | 52.08 % | 49.57 % | 50.15 % | 51.67 % | 52.85 % | 53.49 % | ||||||
Adjusted efficiency ratio (TE) | 53.41 % | 51.99 % | 49.61 % | 50.12 % | 53.66 % | 52.72 % | 55.26 % | ||||||
Tangible Book Value Per Share | Table 9C | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Total shareholders' equity | $ 3,284,630 | $ 3,253,195 | $ 3,197,400 | $ 3,119,070 | $ 3,073,376 | $ 3,284,630 | $ 3,073,376 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,023,056 | 1,015,646 | 1,023,056 | ||||||
Other intangibles, net | 96,800 | 101,488 | 106,194 | 110,903 | 115,613 | 96,800 | 115,613 | ||||||
Total tangible shareholders' equity | $ 2,172,184 | $ 2,136,061 | $ 2,075,560 | $ 1,985,096 | $ 1,934,707 | $ 2,172,184 | $ 1,934,707 | ||||||
Period end number of shares | 69,139,783 | 69,373,863 | 69,369,050 | 69,352,709 | 69,360,461 | 69,139,783 | 69,360,461 | ||||||
Book value per share (period end) | $ 47.51 | $ 46.89 | $ 46.09 | $ 44.97 | $ 44.31 | $ 47.51 | $ 44.31 | ||||||
Tangible book value per share (period end) | $ 31.42 | $ 30.79 | $ 29.92 | $ 28.62 | $ 27.89 | $ 31.42 | $ 27.89 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Non-GAAP Reconciliations (continued) | |||||||||||||
Tangible Common Equity to Tangible Assets | Table 9D | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Total shareholders' equity | $ 3,284,630 | $ 3,253,195 | $ 3,197,400 | $ 3,119,070 | $ 3,073,376 | $ 3,284,630 | $ 3,073,376 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,023,056 | 1,015,646 | 1,023,056 | ||||||
Other intangibles, net | 96,800 | 101,488 | 106,194 | 110,903 | 115,613 | 96,800 | 115,613 | ||||||
Total tangible shareholders' equity | $ 2,172,184 | $ 2,136,061 | $ 2,075,560 | $ 1,985,096 | $ 1,934,707 | $ 2,172,184 | $ 1,934,707 | ||||||
Total assets | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | $ 23,687,470 | $ 25,800,618 | $ 23,687,470 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,023,056 | 1,015,646 | 1,023,056 | ||||||
Other intangibles, net | 96,800 | 101,488 | 106,194 | 110,903 | 115,613 | 96,800 | 115,613 | ||||||
Total tangible assets | $ 24,688,172 | $ 24,971,250 | $ 23,931,446 | $ 22,679,683 | $ 22,548,801 | $ 24,688,172 | $ 22,548,801 | ||||||
Equity to Assets | 12.73 % | 12.47 % | 12.76 % | 13.10 % | 12.97 % | 12.73 % | 12.97 % | ||||||
Tangible Common Equity to Tangible Assets | 8.80 % | 8.55 % | 8.67 % | 8.75 % | 8.58 % | 8.80 % | 8.58 % | ||||||
PPNR ROA | Table 9E | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Net income | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 90,066 | $ 123,056 | $ 171,764 | ||||||
Plus: | |||||||||||||
Income taxes | 20,335 | 18,131 | 22,313 | 28,520 | 28,019 | 38,466 | 55,725 | ||||||
Provision for credit losses | 45,516 | 49,729 | 32,890 | 17,652 | 14,924 | 95,245 | 21,155 | ||||||
PPNR | $ 128,486 | $ 128,281 | $ 137,424 | $ 138,727 | $ 133,009 | $ 256,767 | $ 248,644 | ||||||
Average Assets | $ 25,631,846 | $ 25,115,927 | $ 24,354,979 | $ 23,598,465 | $ 23,405,201 | $ 25,375,312 | $ 23,340,785 | ||||||
Return on Average Assets (ROA) | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.54 % | 0.98 % | 1.48 % | ||||||
PPNR ROA | 2.01 % | 2.07 % | 2.24 % | 2.33 % | 2.28 % | 2.04 % | 2.15 % | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Segment Reporting | Table 10 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
Banking Division | |||||||||||||
Net interest income | $ 171,441 | $ 175,328 | $ 185,909 | $ 174,507 | $ 152,122 | $ 346,769 | $ 285,867 | ||||||
Provision for credit losses | 40,831 | 47,140 | 35,946 | 10,551 | 10,175 | 87,971 | 15,401 | ||||||
Noninterest income | 24,652 | 23,898 | 23,448 | 23,269 | 23,469 | 48,550 | 44,833 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 55,196 | 56,442 | 52,296 | 48,599 | 46,733 | 111,638 | 95,928 | ||||||
Occupancy and equipment expenses | 11,175 | 11,606 | 11,482 | 11,357 | 11,168 | 22,781 | 22,242 | ||||||
Data processing and telecommunications expenses | 11,898 | 11,797 | 11,085 | 10,779 | 10,863 | 23,695 | 22,093 | ||||||
Other noninterest expenses | 27,643 | 19,023 | 21,811 | 22,974 | 21,123 | 46,666 | 41,168 | ||||||
Total noninterest expense | 105,912 | 98,868 | 96,674 | 93,709 | 89,887 | 204,780 | 181,431 | ||||||
Income before income tax expense | 49,350 | 53,218 | 76,737 | 93,516 | 75,529 | 102,568 | 133,868 | ||||||
Income tax expense | 13,312 | 12,848 | 16,545 | 22,706 | 19,120 | 26,160 | 36,116 | ||||||
Net income | $ 36,038 | $ 40,370 | $ 60,192 | $ 70,810 | $ 56,409 | $ 76,408 | $ 97,752 | ||||||
Retail Mortgage Division | |||||||||||||
Net interest income | $ 21,417 | $ 20,027 | $ 19,837 | $ 19,283 | $ 20,779 | $ 41,444 | $ 40,074 | ||||||
Provision for credit losses | 3,278 | 2,853 | (2,778) | 9,043 | 4,499 | 6,131 | 6,086 | ||||||
Noninterest income | 39,808 | 31,058 | 24,011 | 38,584 | 57,795 | 70,866 | 119,444 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 21,930 | 20,160 | 19,164 | 25,813 | 31,219 | 42,090 | 62,833 | ||||||
Occupancy and equipment expenses | 1,224 | 1,283 | 1,242 | 1,460 | 1,406 | 2,507 | 2,877 | ||||||
Data processing and telecommunications expenses | 1,397 | 1,069 | 1,203 | 1,082 | 1,123 | 2,466 | 2,295 | ||||||
Other noninterest expenses | 11,859 | 11,747 | 11,126 | 11,641 | 12,812 | 23,606 | 25,457 | ||||||
Total noninterest expense | 36,410 | 34,259 | 32,735 | 39,996 | 46,560 | 70,669 | 93,462 | ||||||
Income before income tax expense | 21,537 | 13,973 | 13,891 | 8,828 | 27,515 | 35,510 | 59,970 | ||||||
Income tax expense | 4,523 | 2,934 | 2,916 | 1,854 | 5,779 | 7,457 | 12,594 | ||||||
Net income | $ 17,014 | $ 11,039 | $ 10,975 | $ 6,974 | $ 21,736 | $ 28,053 | $ 47,376 | ||||||
Warehouse Lending Division | |||||||||||||
Net interest income | $ 6,166 | $ 5,700 | $ 6,601 | $ 6,979 | $ 6,700 | $ 11,866 | $ 13,147 | ||||||
Provision for credit losses | 411 | (194) | 117 | (1,836) | 867 | 217 | 645 | ||||||
Noninterest income | 1,404 | 480 | 579 | 1,516 | 1,041 | 1,884 | 2,442 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 772 | 802 | 427 | 1,055 | 208 | 1,574 | 491 | ||||||
Occupancy and equipment expenses | — | 1 | 1 | 1 | 1 | 1 | 2 | ||||||
Data processing and telecommunications expenses | 44 | 46 | 49 | 43 | 48 | 90 | 95 | ||||||
Other noninterest expenses | 223 | 202 | 191 | 209 | 212 | 425 | 430 | ||||||
Total noninterest expense | 1,039 | 1,051 | 668 | 1,308 | 469 | 2,090 | 1,018 | ||||||
Income before income tax expense | 6,120 | 5,323 | 6,395 | 9,023 | 6,405 | 11,443 | 13,926 | ||||||
Income tax expense | 1,285 | 1,118 | 1,342 | 1,895 | 1,346 | 2,403 | 2,925 | ||||||
Net income | $ 4,835 | $ 4,205 | $ 5,053 | $ 7,128 | $ 5,059 | $ 9,040 | $ 11,001 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Segment Reporting (continued) | Table 10 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Jun | Mar | Dec | Sep | Jun | Jun | Jun | |||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||
SBA Division | |||||||||||||
Net interest income | $ 2,331 | $ 1,957 | $ 2,491 | $ 2,424 | $ 3,798 | $ 4,288 | $ 9,809 | ||||||
Provision for credit losses | 424 | (104) | 265 | 52 | (523) | 320 | (666) | ||||||
Noninterest income | 1,476 | 605 | 302 | 1,946 | 1,526 | 2,081 | 4,017 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 1,316 | 1,309 | 1,306 | 1,412 | 1,316 | 2,625 | 2,587 | ||||||
Occupancy and equipment expenses | 40 | 37 | 98 | 82 | 81 | 77 | 180 | ||||||
Data processing and telecommunications expenses | 46 | 37 | 30 | 29 | 29 | 83 | 57 | ||||||
Other noninterest expenses | 333 | 422 | 368 | 100 | 539 | 755 | 919 | ||||||
Total noninterest expense | 1,735 | 1,805 | 1,802 | 1,623 | 1,965 | 3,540 | 3,743 | ||||||
Income before income tax expense | 1,648 | 861 | 726 | 2,695 | 3,882 | 2,509 | 10,749 | ||||||
Income tax expense | 346 | 181 | 153 | 566 | 815 | 527 | 2,257 | ||||||
Net income | $ 1,302 | $ 680 | $ 573 | $ 2,129 | $ 3,067 | $ 1,982 | $ 8,492 | ||||||
Premium Finance Division | |||||||||||||
Net interest income | $ 8,185 | $ 8,640 | $ 9,299 | $ 9,788 | $ 7,965 | $ 16,825 | $ 15,011 | ||||||
Provision for credit losses | 572 | 34 | (660) | (158) | (94) | 606 | (311) | ||||||
Noninterest income | 9 | 9 | 8 | 9 | 10 | 18 | 16 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 2,122 | 2,197 | 2,003 | 1,818 | 2,069 | 4,319 | 3,987 | ||||||
Occupancy and equipment expenses | 83 | 59 | 82 | 83 | 90 | 142 | 172 | ||||||
Data processing and telecommunications expenses | 66 | 85 | 119 | 82 | 92 | 151 | 187 | ||||||
Other noninterest expenses | 1,036 | 1,097 | 978 | 959 | 1,064 | 2,133 | 2,016 | ||||||
Total noninterest expense | 3,307 | 3,438 | 3,182 | 2,942 | 3,315 | 6,745 | 6,362 | ||||||
Income before income tax expense | 4,315 | 5,177 | 6,785 | 7,013 | 4,754 | 9,492 | 8,976 | ||||||
Income tax expense | 869 | 1,050 | 1,357 | 1,499 | 959 | 1,919 | 1,833 | ||||||
Net income | $ 3,446 | $ 4,127 | $ 5,428 | $ 5,514 | $ 3,795 | $ 7,573 | $ 7,143 | ||||||
Total Consolidated | |||||||||||||
Net interest income | $ 209,540 | $ 211,652 | $ 224,137 | $ 212,981 | $ 191,364 | $ 421,192 | $ 363,908 | ||||||
Provision for credit losses | 45,516 | 49,729 | 32,890 | 17,652 | 14,924 | 95,245 | 21,155 | ||||||
Noninterest income | 67,349 | 56,050 | 48,348 | 65,324 | 83,841 | 123,399 | 170,752 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 81,336 | 80,910 | 75,196 | 78,697 | 81,545 | 162,246 | 165,826 | ||||||
Occupancy and equipment expenses | 12,522 | 12,986 | 12,905 | 12,983 | 12,746 | 25,508 | 25,473 | ||||||
Data processing and telecommunications expenses | 13,451 | 13,034 | 12,486 | 12,015 | 12,155 | 26,485 | 24,727 | ||||||
Other noninterest expenses | 41,094 | 32,491 | 34,474 | 35,883 | 35,750 | 73,585 | 69,990 | ||||||
Total noninterest expense | 148,403 | 139,421 | 135,061 | 139,578 | 142,196 | 287,824 | 286,016 | ||||||
Income before income tax expense | 82,970 | 78,552 | 104,534 | 121,075 | 118,085 | 161,522 | 227,489 | ||||||
Income tax expense | 20,335 | 18,131 | 22,313 | 28,520 | 28,019 | 38,466 | 55,725 | ||||||
Net income | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 90,066 | $ 123,056 | $ 171,764 | ||||||
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SOURCE Ameris Bancorp
