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Highlights of Ameris's results for the third quarter of 2023 include the following:
ATLANTA, Oct. 26, 2023 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $80.1 million, or $1.16 per diluted share, for the quarter ended September 30, 2023, compared with $92.6 million, or $1.34 per diluted share, for the quarter ended September 30, 2022.
For the year-to-date period ending September 30, 2023, the Company reported net income of $203.2 million, or $2.94 per diluted share, compared with $264.3 million, or $3.81 per diluted share, for the same period in 2022. The year-to-date period ending September 30, 2023 included a provision for credit losses of $119.7 million, compared with $38.8 million for the same period in 2022. The year-to-date period ending September 30, 2022 included a recovery of servicing right impairment of $21.8 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 proud of another strong quarter, highlighted by core fundamentals and capital growth, which will continue to serve us well as we move into 2024. The profitability of our Company remains solid with an ROA of 1.25%, PPNR ROA of over 2%, net interest margin of 3.54% and efficiency ratio of just over 52%. We grew core deposits, tangible book value and improved our allowance for loan loss coverage ratio, all of which strengthened our balance sheet during the quarter. All of these things, combined with our focus on controlled growth, position us well for the remainder of 2023 and moving into 2024."
Net Interest Income and Net Interest MarginNet interest income on a tax-equivalent basis (TE) was $208.7 million in the third quarter of 2023, a decrease of $1.8 million, or 0.8%, from last quarter and $5.2 million, or 2.4%, compared with the third quarter of 2022. The Company's net interest margin was 3.54% for the third quarter of 2023, down from 3.60% reported for the second quarter of 2023 and 3.97% reported for the third 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 ten basis points during the quarter to 5.62%, compared with 5.52% in the second quarter of 2023, and increased 125 basis points from 4.37% in the third quarter of 2022. Yields on loans increased to 5.81% during the third quarter of 2023, compared with 5.66% for the second quarter of 2023 and 4.62% for the third quarter of 2022.
Loan production in the banking division during the third quarter of 2023 was $621.0 million, with weighted average yields of 9.49%, compared with $544.3 million and 9.35%, respectively, in the second quarter of 2023 and $1.12 billion and 6.26%, respectively, in the third quarter of 2022. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $4.2 billion during the third quarter of 2023, with weighted average yields of 7.28%, compared with $4.7 billion and 6.83%, respectively, during the second quarter of 2023 and $4.6 billion and 5.29%, respectively, during the third quarter of 2022.
The Company's total cost of funds was 2.24% in the third quarter of 2023, an increase of 19 basis points compared with the second quarter of 2023. Deposit costs increased 24 basis points during the third quarter of 2023 to 2.00%, compared with 1.76% in the second quarter of 2023. Costs of interest-bearing deposits increased during the quarter from 2.64% in the second quarter of 2023 to 2.97% in the third quarter of 2023, reflecting a shift in mix to CDs and money market accounts in the rising rate environment.
Noninterest IncomeNoninterest income decreased $4.2 million, or 6.2%, in the third quarter of 2023 to $63.2 million, compared with $67.3 million for the second quarter of 2023, primarily as a result of decreased mortgage banking activity, which decreased by $4.5 million, or 10.9%, to $36.3 million in the third quarter of 2023, compared with $40.7 million for the second quarter of 2023. Gain on sale spreads decreased slightly to 2.15% in the third quarter of 2023 from 2.18% for the second quarter of 2023. Total production in the retail mortgage division decreased $157.2 million, or 11.8%, to $1.18 billion in the third quarter of 2023, compared with $1.33 billion for the second quarter of 2023. The retail mortgage open pipeline was $623.9 million at the end of the third quarter of 2023, compared with $652.1 million for the second quarter of 2023. Other noninterest income decreased $749,000, or 5.2%, to $13.6 million in the third quarter of 2023, compared with $14.3 million for the second quarter of 2023, primarily resulting from a decrease in gain on debt redemption of $905,000.
Noninterest ExpenseNoninterest expense decreased $7.0 million, or 4.7%, to $141.4 million during the third quarter of 2023, compared with $148.4 million for the second quarter of 2023. The decrease in noninterest expense was driven by a decrease in problem loan expense of $2.2 million, a $1.0 million decrease in FDIC insurance costs, a $1.4 million decrease in legal and professional fees, a $1.1 million decrease in fraud/forgery and litigation resolution expenses and a decrease in variable compensation related to mortgage production of $965,000. Management continues to focus on operating efficiency, and the adjusted efficiency ratio(1) decreased to 52.02% in the third quarter of 2023, compared with 53.41% in the second quarter of 2023.
Income Tax ExpenseThe Company's effective tax rate for the third quarter of 2023 was 23.7%, compared with 24.5% for the second quarter of 2023. The decreased rate for the third quarter of 2023 was primarily a result of decreased permanent differences related to nondeductible compensation and FDIC insurance premiums, compared with the second quarter of 2023.
Balance Sheet TrendsTotal assets at September 30, 2023 were $25.70 billion, compared with $25.05 billion at December 31, 2022. Cash and cash equivalents increased 38.2% to $1.55 billion at September 30, 2023, compared with $1.12 billion at December 31, 2022. Debt securities available-for-sale decreased to $1.42 billion, compared with $1.50 billion at December 31, 2022. Loans, net of unearned income, increased $345.8 million, or 2.3% annualized, to $20.20 billion at September 30, 2023, compared with $19.86 billion at December 31, 2022. Loans held for sale decreased slightly to $381.5 million at September 30, 2023 from $392.1 million at December 31, 2022.
Investment securities decreased to $1.57 billion, or 6.6% of earning assets at the end of the third quarter of 2023, compared with $1.63 billion, or 7.2% of earning assets at December 31, 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 5.2% of the portfolio.
At September 30, 2023, total deposits amounted to $20.59 billion, compared with $19.46 billion at December 31, 2022. During the third quarter of 2023, deposits grew $147.2 million, with money market and savings accounts increasing $359.6 million and retail CDs increasing $156.8 million, with such increases offset in part by a $117.3 million decrease in noninterest bearing accounts and a $252.9 million decrease in interest bearing demand 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 September 30, 2023, noninterest bearing deposit accounts represented $6.59 billion, or 32.0% of total deposits, compared with $7.93 billion, or 40.7% of total deposits, at December 31, 2022.
During the third quarter of 2023, utilizing existing liquidity, the Company reduced borrowings with the FHLB by $325.0 million and redeemed, at a discount, $2.5 million in principal amount of its 4.25% Fixed-to-Floating Rate Subordinated Notes Due 2029.
Shareholders' equity at September 30, 2023 totaled $3.35 billion, an increase of $149.7 million, or 4.7%, from December 31, 2022. The increase in shareholders' equity was primarily the result of earnings of $203.2 million during the first nine months of 2023, partially offset by dividends declared, share repurchases and an increase in other comprehensive loss of $14.3 million resulting from changes in interest rates on the Company's investment portfolio. Tangible book value per share(1) increased $2.46 per share, or 11.0% annualized, during the first nine months of 2023 to $32.38 at September 30, 2023. The Company recorded dilution of $0.21 per share, or 0.7%, 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 9.11% at September 30, 2023, compared with 8.67% at the end of 2022.
Credit QualityCredit quality remains strong in the Company. During the third quarter of 2023, the Company recorded a provision for credit losses of $24.5 million, compared with a provision of $45.5 million in the second quarter of 2023. The third quarter provision was primarily attributable to the updated economic forecast, partially offset by a decline in loans of $270.7 million during the quarter. Nonperforming assets as a percentage of total assets were up one basis point to 0.58% during the quarter. Approximately $80.8 million, or 53.9%, of the nonperforming assets at September 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 0.27% at September 30, 2023, compared with 0.30% at the second quarter of 2023. The net charge-off ratio was 23 basis points for the third quarter of 2023, compared with 28 basis points in the second quarter of 2023.
Share Repurchase ProgramThe Company's board of directors, on October 26, 2023, authorized the Company to repurchase up to $100.0 million of its outstanding common stock. Repurchases of shares, which are authorized to occur through October 31, 2024, will be made, if at all, in accordance with applicable securities laws and may be made from time to time in the open market or by negotiated transactions. The amount and timing of repurchases will be based on a variety of factors, including share acquisition price, regulatory limitations and other market and economic factors. The program does not require the Company to repurchase any specific number of shares. The board's authorization is a continuation of and increase in the Company's previously announced share repurchase program which was set to expire on October 31 and under which the Company has repurchased $13.5 million of its outstanding common stock in the past 12 months.
Conference CallThe Company will host a teleconference at 9:00 a.m. Eastern time on Friday, October 27, 2023, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-317-6789. The conference call ID is Ameris Bancorp. A replay of the call will be available one hour after the end of the conference call until November 10, 2023. To listen to the replay, dial 1-877-344-7529. The conference replay access code is 1921240. 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 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 | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
EARNINGS | |||||||||||||
Net income | $ 80,115 | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 203,171 | $ 264,319 | ||||||
Adjusted net income(1) | $ 80,115 | $ 62,635 | $ 59,935 | $ 81,086 | $ 91,817 | $ 202,685 | $ 248,329 | ||||||
COMMON SHARE DATA | |||||||||||||
Earnings per share available to common shareholders | |||||||||||||
Basic | $ 1.16 | $ 0.91 | $ 0.87 | $ 1.19 | $ 1.34 | $ 2.94 | $ 3.82 | ||||||
Diluted | $ 1.16 | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 2.94 | $ 3.81 | ||||||
Adjusted diluted EPS(1) | $ 1.16 | $ 0.91 | $ 0.86 | $ 1.17 | $ 1.32 | $ 2.93 | $ 3.58 | ||||||
Cash dividends per share | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 | ||||||
Book value per share (period end) | $ 48.41 | $ 47.51 | $ 46.89 | $ 46.09 | $ 44.97 | $ 48.41 | $ 44.97 | ||||||
Tangible book value per share (period end)(1) | $ 32.38 | $ 31.42 | $ 30.79 | $ 29.92 | $ 28.62 | $ 32.38 | $ 28.62 | ||||||
Weighted average number of shares | |||||||||||||
Basic | 68,879,352 | 68,989,549 | 69,171,562 | 69,138,431 | 69,124,855 | 69,023,201 | 69,213,012 | ||||||
Diluted | 68,994,247 | 69,034,763 | 69,322,664 | 69,395,224 | 69,327,414 | 69,129,921 | 69,427,522 | ||||||
Period end number of shares | 69,138,461 | 69,139,783 | 69,373,863 | 69,369,050 | 69,352,709 | 69,138,461 | 69,352,709 | ||||||
Market data | |||||||||||||
High intraday price | $ 45.34 | $ 37.18 | $ 50.54 | $ 54.24 | $ 50.94 | $ 50.54 | $ 55.62 | ||||||
Low intraday price | $ 33.21 | $ 28.33 | $ 34.28 | $ 44.61 | $ 38.22 | $ 28.33 | $ 38.22 | ||||||
Period end closing price | $ 38.39 | $ 34.21 | $ 36.58 | $ 47.14 | $ 44.71 | $ 38.39 | $ 44.71 | ||||||
Average daily volume | $ 361,167 | $ 475,198 | $ 452,242 | $ 340,890 | $ 346,522 | $ 429,170 | 420,703 | ||||||
PERFORMANCE RATIOS | |||||||||||||
Return on average assets | 1.25 % | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.07 % | 1.51 % | ||||||
Adjusted return on average assets(1) | 1.25 % | 0.98 % | 0.97 % | 1.32 % | 1.54 % | 1.07 % | 1.42 % | ||||||
Return on average common equity | 9.56 % | 7.63 % | 7.54 % | 10.30 % | 11.76 % | 8.26 % | 11.57 % | ||||||
Adjusted return on average tangible common equity(1) | 14.35 % | 11.53 % | 11.41 % | 15.78 % | 18.33 % | 12.46 % | 17.33 % | ||||||
Earning asset yield (TE) | 5.62 % | 5.52 % | 5.25 % | 4.91 % | 4.37 % | 5.46 % | 3.94 % | ||||||
Total cost of funds | 2.24 % | 2.05 % | 1.59 % | 0.94 % | 0.42 % | 1.96 % | 0.29 % | ||||||
Net interest margin (TE) | 3.54 % | 3.60 % | 3.76 % | 4.03 % | 3.97 % | 3.63 % | 3.67 % | ||||||
Efficiency ratio | 52.21 % | 53.60 % | 52.08 % | 49.57 % | 50.15 % | 52.64 % | 52.35 % | ||||||
Adjusted efficiency ratio (TE)(1) | 52.02 % | 53.41 % | 51.99 % | 49.61 % | 50.12 % | 52.49 % | 53.46 % | ||||||
CAPITAL ADEQUACY (period end) | |||||||||||||
Shareholders' equity to assets | 13.02 % | 12.73 % | 12.47 % | 12.76 % | 13.10 % | 13.02 % | 13.10 % | ||||||
Tangible common equity to tangible assets(1) | 9.11 % | 8.80 % | 8.55 % | 8.67 % | 8.75 % | 9.11 % | 8.75 % | ||||||
OTHER DATA (period end) | |||||||||||||
Full time equivalent employees | |||||||||||||
Banking Division | 2,049 | 2,069 | 2,093 | 2,079 | 2,071 | 2,049 | 2,071 | ||||||
Retail Mortgage Division | 601 | 613 | 630 | 633 | 671 | 601 | 671 | ||||||
Warehouse Lending Division | 8 | 8 | 8 | 8 | 9 | 8 | 9 | ||||||
SBA Division | 33 | 35 | 39 | 39 | 40 | 33 | 40 | ||||||
Premium Finance Division | 78 | 76 | 78 | 76 | 77 | 78 | 77 | ||||||
Total Ameris Bancorp FTE headcount | 2,769 | 2,801 | 2,848 | 2,835 | 2,868 | 2,769 | 2,868 | ||||||
Branch locations | 164 | 164 | 164 | 164 | 164 | 164 | 164 | ||||||
Deposits per branch location | $ 125,551 | $ 124,653 | $ 121,326 | $ 118,675 | $ 118,701 | $ 125,551 | $ 118,701 | ||||||
(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 | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Interest income | |||||||||||||
Interest and fees on loans | $ 304,699 | $ 292,012 | $ 271,964 | $ 250,263 | $ 216,400 | $ 868,675 | $ 584,706 | ||||||
Interest on taxable securities | 14,754 | 15,915 | 14,300 | 13,029 | 10,324 | 44,969 | 21,627 | ||||||
Interest on nontaxable securities | 331 | 339 | 339 | 358 | 363 | 1,009 | 818 | ||||||
Interest on deposits in other banks | 10,769 | 13,686 | 9,113 | 9,984 | 7,188 | 33,568 | 13,024 | ||||||
Interest on federal funds sold | — | — | — | 8 | 27 | — | 69 | ||||||
Total interest income | 330,553 | 321,952 | 295,716 | 273,642 | 234,302 | 948,221 | 620,244 | ||||||
Interest expense | |||||||||||||
Interest on deposits | 102,999 | 88,087 | 53,182 | 33,071 | 14,034 | 244,268 | 23,034 | ||||||
Interest on other borrowings | 19,803 | 24,325 | 30,882 | 16,434 | 7,287 | 75,010 | 20,321 | ||||||
Total interest expense | 122,802 | 112,412 | 84,064 | 49,505 | 21,321 | 319,278 | 43,355 | ||||||
Net interest income | 207,751 | 209,540 | 211,652 | 224,137 | 212,981 | 628,943 | 576,889 | ||||||
Provision for loan losses | 30,095 | 43,643 | 49,376 | 24,648 | 17,469 | 123,114 | 27,962 | ||||||
Provision for unfunded commitments | (5,634) | 1,873 | 346 | 8,246 | 192 | (3,415) | 10,980 | ||||||
Provision for other credit losses | (2) | — | 7 | (4) | (9) | 5 | (135) | ||||||
Provision for credit losses | 24,459 | 45,516 | 49,729 | 32,890 | 17,652 | 119,704 | 38,807 | ||||||
Net interest income after provision for credit losses | 183,292 | 164,024 | 161,923 | 191,247 | 195,329 | 509,239 | 538,082 | ||||||
Noninterest income | |||||||||||||
Service charges on deposit accounts | 12,092 | 11,295 | 10,936 | 11,125 | 11,168 | 34,323 | 33,374 | ||||||
Mortgage banking activity | 36,290 | 40,742 | 31,392 | 22,855 | 40,350 | 108,424 | 162,049 | ||||||
Other service charges, commissions and fees | 1,221 | 975 | 971 | 968 | 970 | 3,167 | 2,907 | ||||||
Gain (loss) on securities | (16) | (6) | 6 | 3 | (21) | (16) | 200 | ||||||
Other noninterest income | 13,594 | 14,343 | 12,745 | 13,397 | 12,857 | 40,682 | 37,546 | ||||||
Total noninterest income | 63,181 | 67,349 | 56,050 | 48,348 | 65,324 | 186,580 | 236,076 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 81,898 | 81,336 | 80,910 | 75,196 | 78,697 | 244,144 | 244,523 | ||||||
Occupancy and equipment | 12,745 | 12,522 | 12,986 | 12,905 | 12,983 | 38,253 | 38,456 | ||||||
Data processing and communications expenses | 12,973 | 13,451 | 13,034 | 12,486 | 12,015 | 39,458 | 36,742 | ||||||
Credit resolution-related expenses(1) | (1,360) | 848 | 435 | 372 | 126 | (77) | (343) | ||||||
Advertising and marketing | 2,723 | 2,627 | 3,532 | 3,818 | 3,553 | 8,882 | 8,663 | ||||||
Amortization of intangible assets | 4,425 | 4,688 | 4,706 | 4,709 | 4,710 | 13,819 | 15,035 | ||||||
Merger and conversion charges | — | — | — | 235 | — | — | 977 | ||||||
Other noninterest expenses | 28,042 | 32,931 | 23,818 | 25,340 | 27,494 | 84,791 | 81,541 | ||||||
Total noninterest expense | 141,446 | 148,403 | 139,421 | 135,061 | 139,578 | 429,270 | 425,594 | ||||||
Income before income tax expense | 105,027 | 82,970 | 78,552 | 104,534 | 121,075 | 266,549 | 348,564 | ||||||
Income tax expense | 24,912 | 20,335 | 18,131 | 22,313 | 28,520 | 63,378 | 84,245 | ||||||
Net income | $ 80,115 | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 203,171 | $ 264,319 | ||||||
Diluted earnings per common share | $ 1.16 | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 2.94 | $ 3.81 | ||||||
(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 | ||||||||
Sep | Jun | Mar | Dec | Sep | |||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||
Assets | |||||||||
Cash and due from banks | $ 241,137 | $ 284,552 | $ 266,400 | $ 284,567 | $ 269,193 | ||||
Federal funds sold and interest-bearing deposits in banks | 1,304,636 | 1,034,578 | 1,754,453 | 833,565 | 1,061,975 | ||||
Debt securities available-for-sale, at fair value | 1,424,081 | 1,460,356 | 1,496,836 | 1,500,060 | 1,255,149 | ||||
Debt securities held-to-maturity, at amortized cost | 141,859 | 142,513 | 134,175 | 134,864 | 130,214 | ||||
Other investments | 104,957 | 109,656 | 146,715 | 110,992 | 60,560 | ||||
Loans held for sale | 381,466 | 391,472 | 395,096 | 392,078 | 297,987 | ||||
Loans, net of unearned income | 20,201,079 | 20,471,759 | 19,997,871 | 19,855,253 | 18,806,856 | ||||
Allowance for credit losses | (290,104) | (272,071) | (242,658) | (205,677) | (184,891) | ||||
Loans, net | 19,910,975 | 20,199,688 | 19,755,213 | 19,649,576 | 18,621,965 | ||||
Other real estate owned | 3,397 | 6,170 | 1,502 | 843 | 843 | ||||
Premises and equipment, net | 217,564 | 218,662 | 218,878 | 220,283 | 222,694 | ||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | ||||
Other intangible assets, net | 92,375 | 96,800 | 101,488 | 106,194 | 110,903 | ||||
Cash value of bank owned life insurance | 393,769 | 391,483 | 389,201 | 388,405 | 386,533 | ||||
Other assets | 465,968 | 449,042 | 412,781 | 416,213 | 372,570 | ||||
Total assets | $ 25,697,830 | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | ||||
Liabilities | |||||||||
Deposits | |||||||||
Noninterest-bearing | $ 6,589,610 | $ 6,706,897 | $ 7,297,893 | $ 7,929,579 | $ 8,343,200 | ||||
Interest-bearing | 14,000,735 | 13,736,228 | 12,599,562 | 11,533,159 | 11,123,719 | ||||
Total deposits | 20,590,345 | 20,443,125 | 19,897,455 | 19,462,738 | 19,466,919 | ||||
Other borrowings | 1,209,553 | 1,536,989 | 2,401,327 | 1,875,736 | 725,664 | ||||
Subordinated deferrable interest debentures | 129,817 | 129,319 | 128,820 | 128,322 | 127,823 | ||||
Other liabilities | 421,046 | 406,555 | 407,587 | 389,090 | 374,181 | ||||
Total liabilities | 22,350,761 | 22,515,988 | 22,835,189 | 21,855,886 | 20,694,587 | ||||
Shareholders' Equity | |||||||||
Preferred stock | — | — | — | — | — | ||||
Common stock | 72,514 | 72,515 | 72,484 | 72,264 | 72,247 | ||||
Capital stock | 1,942,852 | 1,939,865 | 1,937,664 | 1,935,211 | 1,932,906 | ||||
Retained earnings | 1,484,424 | 1,414,742 | 1,362,512 | 1,311,258 | 1,239,477 | ||||
Accumulated other comprehensive income (loss), net of tax | (60,818) | (50,618) | (35,581) | (46,507) | (50,734) | ||||
Treasury stock | (91,903) | (91,874) | (83,884) | (74,826) | (74,826) | ||||
Total shareholders' equity | 3,347,069 | 3,284,630 | 3,253,195 | 3,197,400 | 3,119,070 | ||||
Total liabilities and shareholders' equity | $ 25,697,830 | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | ||||
Other Data | |||||||||
Earning assets | $ 23,558,078 | $ 23,610,334 | $ 23,925,146 | $ 22,826,812 | $ 21,612,741 | ||||
Intangible assets | 1,108,021 | 1,112,446 | 1,117,134 | 1,121,840 | 1,133,974 | ||||
Interest-bearing liabilities | 15,340,105 | 15,402,536 | 15,129,709 | 13,537,217 | 11,977,206 | ||||
Average assets | 25,525,913 | 25,631,846 | 25,115,927 | 24,354,979 | 23,598,465 | ||||
Average common shareholders' equity | 3,324,960 | 3,293,049 | 3,250,289 | 3,168,320 | 3,123,718 | ||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Asset Quality Information | Table 4 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Allowance for Credit Losses | |||||||||||||
Balance at beginning of period | $ 326,783 | $ 295,497 | $ 258,163 | $ 229,135 | $ 216,703 | $ 258,163 | $ 200,981 | ||||||
Adoption of ASU 2022-02 | — | — | (1,711) | — | — | (1,711) | — | ||||||
Provision for loan losses | 30,095 | 43,643 | 49,376 | 24,648 | 17,469 | 123,114 | 27,962 | ||||||
Provision for unfunded commitments | (5,634) | 1,873 | 346 | 8,246 | 192 | (3,415) | 10,980 | ||||||
Provision for other credit losses | (2) | — | 7 | (4) | (9) | 5 | (135) | ||||||
Provision for credit losses | 24,459 | 45,516 | 49,729 | 32,890 | 17,652 | 119,704 | 38,807 | ||||||
Charge-offs | 19,488 | 20,670 | 14,956 | 8,371 | 9,272 | 55,114 | 24,704 | ||||||
Recoveries | 7,426 | 6,440 | 4,272 | 4,509 | 4,052 | 18,138 | 14,051 | ||||||
Net charge-offs (recoveries) | 12,062 | 14,230 | 10,684 | 3,862 | 5,220 | 36,976 | 10,653 | ||||||
Ending balance | $ 339,180 | $ 326,783 | $ 295,497 | $ 258,163 | $ 229,135 | $ 339,180 | $ 229,135 | ||||||
Allowance for loan losses | $ 290,104 | $ 272,071 | $ 242,658 | $ 205,677 | $ 184,891 | $ 290,104 | $ 184,891 | ||||||
Allowance for unfunded commitments | 48,996 | 54,630 | 52,757 | 52,411 | 44,165 | 48,996 | 44,165 | ||||||
Allowance for other credit losses | 80 | 82 | 82 | 75 | 79 | 80 | 79 | ||||||
Total allowance for credit losses | $ 339,180 | $ 326,783 | $ 295,497 | $ 258,163 | $ 229,135 | $ 339,180 | $ 229,135 | ||||||
Net Charge-off Information | |||||||||||||
Charge-offs | |||||||||||||
Commercial, financial and agricultural | $ 16,519 | $ 13,316 | $ 12,233 | $ 5,108 | $ 4,722 | $ 42,068 | $ 13,527 | ||||||
Consumer | 948 | 2,052 | 1,140 | 1,136 | 1,228 | 4,140 | 3,790 | ||||||
Indirect automobile | 36 | 65 | 34 | 86 | 50 | 135 | 179 | ||||||
Premium Finance | 1,951 | 1,848 | 1,421 | 1,812 | 1,205 | 5,220 | 3,640 | ||||||
Real estate - construction and development | — | — | — | 27 | — | — | — | ||||||
Real estate - commercial and farmland | — | 3,320 | — | 196 | 2,014 | 3,320 | 3,378 | ||||||
Real estate - residential | 34 | 69 | 128 | 6 | 53 | 231 | 190 | ||||||
Total charge-offs | 19,488 | 20,670 | 14,956 | 8,371 | 9,272 | 55,114 | 24,704 | ||||||
Recoveries | |||||||||||||
Commercial, financial and agricultural | 4,745 | 3,545 | 2,043 | 2,072 | 2,201 | 10,333 | 7,882 | ||||||
Consumer | 203 | 194 | 297 | 217 | 277 | 694 | 665 | ||||||
Indirect automobile | 158 | 225 | 216 | 229 | 276 | 599 | 816 | ||||||
Premium Finance | 1,639 | 1,680 | 1,382 | 1,682 | 1,023 | 4,701 | 3,383 | ||||||
Real estate - construction and development | 74 | 472 | 100 | 223 | 96 | 646 | 669 | ||||||
Real estate - commercial and farmland | 371 | 61 | 44 | 48 | 96 | 476 | 177 | ||||||
Real estate - residential | 236 | 263 | 190 | 38 | 83 | 689 | 459 | ||||||
Total recoveries | 7,426 | 6,440 | 4,272 | 4,509 | 4,052 | 18,138 | 14,051 | ||||||
Net charge-offs (recoveries) | $ 12,062 | $ 14,230 | $ 10,684 | $ 3,862 | $ 5,220 | $ 36,976 | $ 10,653 | ||||||
Non-Performing Assets | |||||||||||||
Nonaccrual portfolio loans | $ 53,806 | $ 57,025 | $ 68,028 | $ 65,221 | $ 64,055 | $ 53,806 | $ 64,055 | ||||||
Other real estate owned | 3,397 | 6,170 | 1,502 | 843 | 843 | 3,397 | 843 | ||||||
Repossessed assets | 22 | 9 | 25 | 28 | 60 | 22 | 60 | ||||||
Accruing loans delinquent 90 days or more | 11,891 | 13,424 | 15,792 | 17,865 | 12,378 | 11,891 | 12,378 | ||||||
Non-performing portfolio assets | $ 69,116 | $ 76,628 | $ 85,347 | $ 83,957 | $ 77,336 | $ 69,116 | $ 77,336 | ||||||
Serviced GNMA-guaranteed mortgage nonaccrual loans | 80,752 | 69,655 | 74,999 | 69,587 | 54,621 | 80,752 | 54,621 | ||||||
Total non-performing assets | $ 149,868 | $ 146,283 | $ 160,346 | $ 153,544 | $ 131,957 | $ 149,868 | $ 131,957 | ||||||
Asset Quality Ratios | |||||||||||||
Non-performing portfolio assets as a percent of total assets | 0.27 % | 0.30 % | 0.33 % | 0.34 % | 0.32 % | 0.27 % | 0.32 % | ||||||
Total non-performing assets as a percent of total assets | 0.58 % | 0.57 % | 0.61 % | 0.61 % | 0.55 % | 0.58 % | 0.55 % | ||||||
Net charge-offs as a percent of average loans (annualized) | 0.23 % | 0.28 % | 0.22 % | 0.08 % | 0.11 % | 0.25 % | 0.08 % | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||
FINANCIAL TABLES | |||||||||
Loan Information | Table 5 | ||||||||
Sep | Jun | Mar | Dec | Sep | |||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||
Loans by Type | |||||||||
Commercial, financial and agricultural | $ 2,632,836 | $ 2,718,831 | $ 2,722,180 | $ 2,679,403 | $ 2,245,287 | ||||
Consumer | 259,797 | 307,486 | 349,775 | 384,037 | 162,345 | ||||
Indirect automobile | 47,108 | 63,231 | 83,466 | 108,648 | 137,183 | ||||
Mortgage warehouse | 852,823 | 1,147,413 | 958,418 | 1,038,924 | 980,342 | ||||
Municipal | 497,093 | 510,410 | 505,515 | 509,151 | 516,797 | ||||
Premium Finance | 1,007,334 | 988,731 | 947,257 | 1,023,479 | 1,062,724 | ||||
Real estate - construction and development | 2,236,686 | 2,217,744 | 2,144,605 | 2,086,438 | 2,009,726 | ||||
Real estate - commercial and farmland | 7,865,389 | 7,815,779 | 7,721,732 | 7,604,868 | 7,516,309 | ||||
Real estate - residential | 4,802,013 | 4,702,134 | 4,564,923 | 4,420,305 | 4,176,143 | ||||
Total loans | $ 20,201,079 | $ 20,471,759 | $ 19,997,871 | $ 19,855,253 | $ 18,806,856 | ||||
Loans by Risk Grade | |||||||||
Grades 1 through 5 - Pass | $ 19,812,895 | $ 20,114,816 | $ 19,654,232 | $ 19,513,726 | $ 18,483,046 | ||||
Grade 6 - Other assets especially mentioned | 187,449 | 171,035 | 116,345 | 104,614 | 110,408 | ||||
Grade 7 - Substandard | 200,735 | 185,908 | 227,294 | 236,913 | 213,402 | ||||
Grade 8 - Doubtful | — | — | — | — | — | ||||
Grade 9 - Loss | — | — | — | — | — | ||||
Total loans | $ 20,201,079 | $ 20,471,759 | $ 19,997,871 | $ 19,855,253 | $ 18,806,856 | ||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Average Balances | Table 6 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Earning Assets | |||||||||||||
Federal funds sold | $ — | $ — | $ — | $ 924 | $ 5,000 | $ — | $ 14,176 | ||||||
Interest-bearing deposits in banks | 864,028 | 998,609 | 859,614 | 1,009,935 | 1,394,529 | 907,433 | 2,325,188 | ||||||
Debt securities - taxable | 1,548,647 | 1,582,076 | 1,586,404 | 1,451,861 | 1,242,811 | 1,572,237 | 935,313 | ||||||
Debt securities - nontaxable | 40,896 | 42,580 | 43,052 | 44,320 | 45,730 | 42,168 | 38,249 | ||||||
Other investments | 101,517 | 117,020 | 131,044 | 83,730 | 51,209 | 116,419 | 49,556 | ||||||
Loans held for sale | 464,452 | 577,606 | 490,295 | 371,952 | 471,070 | 510,690 | 835,418 | ||||||
Loans | 20,371,689 | 20,164,938 | 19,820,749 | 19,212,560 | 18,146,083 | 20,121,143 | 16,951,566 | ||||||
Total Earning Assets | $ 23,391,229 | $ 23,482,829 | $ 22,931,158 | $ 22,175,282 | $ 21,356,432 | $ 23,270,090 | $ 21,149,466 | ||||||
Deposits | |||||||||||||
Noninterest-bearing deposits | $ 6,655,191 | $ 6,729,789 | $ 7,136,373 | $ 8,138,887 | $ 8,259,625 | $ 6,838,618 | $ 7,960,149 | ||||||
NOW accounts | 3,661,701 | 3,949,850 | 4,145,991 | 3,621,454 | 3,701,045 | 3,917,476 | 3,693,828 | ||||||
MMDA | 5,527,731 | 5,002,590 | 4,994,195 | 5,161,047 | 5,026,815 | 5,176,794 | 5,117,528 | ||||||
Savings accounts | 915,678 | 1,009,749 | 1,005,614 | 1,010,966 | 1,030,298 | 976,684 | 1,003,995 | ||||||
Retail CDs | 2,200,413 | 2,024,014 | 1,612,325 | 1,450,037 | 1,506,761 | 1,947,739 | 1,657,193 | ||||||
Brokered CDs | 1,441,854 | 1,393,206 | 125,133 | — | — | 991,554 | — | ||||||
Total Deposits | 20,402,568 | 20,109,198 | 19,019,631 | 19,382,391 | 19,524,544 | 19,848,865 | 19,432,693 | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | — | 1 | 92 | — | 1,974 | ||||||
FHLB advances | 943,855 | 1,408,855 | 1,968,811 | 918,228 | 94,357 | 1,436,753 | 64,130 | ||||||
Other borrowings | 312,572 | 316,626 | 361,445 | 377,056 | 376,942 | 330,035 | 398,898 | ||||||
Subordinated deferrable interest debentures | 129,554 | 129,056 | 128,557 | 128,060 | 127,560 | 129,059 | 127,066 | ||||||
Total Non-Deposit Funding | 1,385,981 | 1,854,537 | 2,458,813 | 1,423,345 | 598,951 | 1,895,847 | 592,068 | ||||||
Total Funding | $ 21,788,549 | $ 21,963,735 | $ 21,478,444 | $ 20,805,736 | $ 20,123,495 | $ 21,744,712 | $ 20,024,761 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Interest Income and Interest Expense (TE) | Table 7 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Interest Income | |||||||||||||
Federal funds sold | $ — | $ — | $ — | $ 8 | $ 27 | $ — | $ 69 | ||||||
Interest-bearing deposits in banks | 10,769 | 13,686 | 9,113 | 9,984 | 7,188 | 33,568 | 13,024 | ||||||
Debt securities - taxable | 14,754 | 15,915 | 14,300 | 13,029 | 10,324 | 44,969 | 21,627 | ||||||
Debt securities - nontaxable (TE) | 418 | 430 | 429 | 454 | 459 | 1,277 | 1,035 | ||||||
Loans held for sale | 7,460 | 8,398 | 7,007 | 5,519 | 6,012 | 22,865 | 24,180 | ||||||
Loans (TE) | 298,102 | 284,471 | 265,802 | 245,603 | 211,223 | 848,375 | 563,223 | ||||||
Total Earning Assets | $ 331,503 | $ 322,900 | $ 296,651 | $ 274,597 | $ 235,233 | $ 951,054 | $ 623,158 | ||||||
Interest Expense | |||||||||||||
Interest-Bearing Deposits | |||||||||||||
NOW accounts | $ 17,255 | $ 18,003 | $ 15,033 | $ 8,564 | $ 3,733 | $ 50,291 | $ 5,803 | ||||||
MMDA | 45,683 | 35,224 | 27,809 | 20,683 | 8,613 | 108,716 | 12,460 | ||||||
Savings accounts | 1,791 | 2,296 | 1,288 | 654 | 360 | 5,375 | 633 | ||||||
Retail CDs | 19,013 | 14,751 | 7,629 | 3,170 | 1,328 | 41,393 | 4,138 | ||||||
Brokered CDs | 19,257 | 17,813 | 1,423 | — | — | 38,493 | — | ||||||
Total Interest-Bearing Deposits | 102,999 | 88,087 | 53,182 | 33,071 | 14,034 | 244,268 | 23,034 | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | — | — | — | — | — | 4 | ||||||
FHLB advances | 12,543 | 17,222 | 22,448 | 8,801 | 527 | 52,213 | 909 | ||||||
Other borrowings | 3,821 | 3,902 | 5,349 | 4,953 | 4,655 | 13,072 | 14,256 | ||||||
Subordinated deferrable interest debentures | 3,439 | 3,201 | 3,085 | 2,680 | 2,105 | 9,725 | 5,152 | ||||||
Total Non-Deposit Funding | 19,803 | 24,325 | 30,882 | 16,434 | 7,287 | 75,010 | 20,321 | ||||||
Total Interest-Bearing Funding | $ 122,802 | $ 112,412 | $ 84,064 | $ 49,505 | $ 21,321 | $ 319,278 | $ 43,355 | ||||||
Net Interest Income (TE) | $ 208,701 | $ 210,488 | $ 212,587 | $ 225,092 | $ 213,912 | $ 631,776 | $ 579,803 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Yields(1) | Table 8 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | |||||||
Earning Assets | |||||||||||||
Federal funds sold | — % | — % | — % | 3.43 % | 2.14 % | — % | 0.65 % | ||||||
Interest-bearing deposits in banks | 4.94 % | 5.50 % | 4.30 % | 3.92 % | 2.04 % | 4.95 % | 0.75 % | ||||||
Debt securities - taxable | 3.78 % | 4.03 % | 3.66 % | 3.56 % | 3.30 % | 3.82 % | 3.09 % | ||||||
Debt securities - nontaxable (TE) | 4.06 % | 4.05 % | 4.04 % | 4.06 % | 3.98 % | 4.05 % | 3.62 % | ||||||
Loans held for sale | 6.37 % | 5.83 % | 5.80 % | 5.89 % | 5.06 % | 5.99 % | 3.87 % | ||||||
Loans (TE) | 5.81 % | 5.66 % | 5.44 % | 5.07 % | 4.62 % | 5.64 % | 4.44 % | ||||||
Total Earning Assets | 5.62 % | 5.52 % | 5.25 % | 4.91 % | 4.37 % | 5.46 % | 3.94 % | ||||||
Interest-Bearing Deposits | |||||||||||||
NOW accounts | 1.87 % | 1.83 % | 1.47 % | 0.94 % | 0.40 % | 1.72 % | 0.21 % | ||||||
MMDA | 3.28 % | 2.82 % | 2.26 % | 1.59 % | 0.68 % | 2.81 % | 0.33 % | ||||||
Savings accounts | 0.78 % | 0.91 % | 0.52 % | 0.26 % | 0.14 % | 0.74 % | 0.08 % | ||||||
Retail CDs | 3.43 % | 2.92 % | 1.92 % | 0.87 % | 0.35 % | 2.84 % | 0.33 % | ||||||
Brokered CDs | 5.30 % | 5.13 % | 4.61 % | — % | — % | 5.19 % | — % | ||||||
Total Interest-Bearing Deposits | 2.97 % | 2.64 % | 1.82 % | 1.17 % | 0.49 % | 2.51 % | 0.27 % | ||||||
Non-Deposit Funding | |||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — % | — % | — % | — % | — % | — % | 0.27 % | ||||||
FHLB advances | 5.27 % | 4.90 % | 4.62 % | 3.80 % | 2.22 % | 4.86 % | 1.90 % | ||||||
Other borrowings | 4.85 % | 4.94 % | 6.00 % | 5.21 % | 4.90 % | 5.30 % | 4.78 % | ||||||
Subordinated deferrable interest debentures | 10.53 % | 9.95 % | 9.73 % | 8.30 % | 6.55 % | 10.07 % | 5.42 % | ||||||
Total Non-Deposit Funding | 5.67 % | 5.26 % | 5.09 % | 4.58 % | 4.83 % | 5.29 % | 4.59 % | ||||||
Total Interest-Bearing Liabilities | 3.22 % | 2.96 % | 2.38 % | 1.55 % | 0.71 % | 2.86 % | 0.48 % | ||||||
Net Interest Spread | 2.40 % | 2.56 % | 2.87 % | 3.36 % | 3.66 % | 2.60 % | 3.46 % | ||||||
Net Interest Margin(2) | 3.54 % | 3.60 % | 3.76 % | 4.03 % | 3.97 % | 3.63 % | 3.67 % | ||||||
Total Cost of Funds(3) | 2.24 % | 2.05 % | 1.59 % | 0.94 % | 0.42 % | 1.96 % | 0.29 % | ||||||
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21%. | |||||||||||||
(2) Rate calculated based on average earning assets. | |||||||||||||
(3) Rate calculated based on total average funding including noninterest-bearing deposits. | |||||||||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Non-GAAP Reconciliations | |||||||||||||
Adjusted Net Income | Table 9A | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Net income available to common shareholders | $ 80,115 | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 203,171 | $ 264,319 | ||||||
Adjustment items: | |||||||||||||
Merger and conversion charges | — | — | — | 235 | — | — | 977 | ||||||
(Gain) loss on sale of MSR | — | — | — | (1,672) | 316 | — | 316 | ||||||
Servicing right impairment (recovery) | — | — | — | — | (1,332) | — | (21,824) | ||||||
Gain on BOLI proceeds | — | — | (486) | — | (55) | (486) | (55) | ||||||
Natural disaster expenses | — | — | — | — | 151 | — | 151 | ||||||
(Gain) loss on bank premises | — | — | — | — | — | — | (45) | ||||||
Tax effect of adjustment items (Note 1) | — | — | — | 302 | 182 | — | 4,490 | ||||||
After tax adjustment items | — | — | (486) | (1,135) | (738) | (486) | (15,990) | ||||||
Adjusted net income | $ 80,115 | $ 62,635 | $ 59,935 | $ 81,086 | $ 91,817 | $ 202,685 | $ 248,329 | ||||||
Weighted average number of shares - diluted | 68,994,247 | 69,034,763 | 69,322,664 | 69,395,224 | 69,327,414 | 69,129,921 | 69,427,522 | ||||||
Net income per diluted share | $ 1.16 | $ 0.91 | $ 0.87 | $ 1.18 | $ 1.34 | $ 2.94 | $ 3.81 | ||||||
Adjusted net income per diluted share | $ 1.16 | $ 0.91 | $ 0.86 | $ 1.17 | $ 1.32 | $ 2.93 | $ 3.58 | ||||||
Average assets | $ 25,525,913 | $ 25,631,846 | $ 25,115,927 | $ 24,354,979 | $ 23,598,465 | $ 25,426,064 | $ 23,405,411 | ||||||
Return on average assets | 1.25 % | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.07 % | 1.51 % | ||||||
Adjusted return on average assets | 1.25 % | 0.98 % | 0.97 % | 1.32 % | 1.54 % | 1.07 % | 1.42 % | ||||||
Average common equity | $ 3,324,960 | $ 3,293,049 | $ 3,250,289 | $ 3,168,320 | $ 3,123,718 | $ 3,289,706 | $ 3,054,356 | ||||||
Average tangible common equity | $ 2,214,775 | $ 2,178,323 | $ 2,130,856 | $ 2,039,094 | $ 1,987,385 | $ 2,174,958 | $ 1,916,262 | ||||||
Return on average common equity | 9.56 % | 7.63 % | 7.54 % | 10.30 % | 11.76 % | 8.26 % | 11.57 % | ||||||
Adjusted return on average tangible common equity | 14.35 % | 11.53 % | 11.41 % | 15.78 % | 18.33 % | 12.46 % | 17.33 % | ||||||
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 nine months ended September 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 | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Adjusted Noninterest Expense | |||||||||||||
Total noninterest expense | $ 141,446 | $ 148.403 | $ 139,421 | $ 135,061 | $ 139,578 | $ 429,270 | $ 425,594 | ||||||
Adjustment items: | |||||||||||||
Merger and conversion charges | — | — | — | (235) | — | — | (977) | ||||||
Natural disaster expenses | — | — | — | — | (151) | — | (151) | ||||||
Gain (loss) on bank premises | — | — | — | — | — | — | 45 | ||||||
Adjusted noninterest expense | $ 141,446 | $ 148.403 | $ 139,421 | $ 134,826 | $ 139,427 | $ 429,270 | $ 424,511 | ||||||
Total Revenue | |||||||||||||
Net interest income | $ 207,751 | $ 209,540 | $ 211,652 | $ 224,137 | $ 212,981 | $ 628,943 | $ 576,889 | ||||||
Noninterest income | 63,181 | 67,349 | 56,050 | 48,348 | 65,324 | 186,580 | 236,076 | ||||||
Total revenue | $ 270,932 | $ 276,889 | $ 267,702 | $ 272,485 | $ 278,305 | $ 815,523 | $ 812,965 | ||||||
Adjusted Total Revenue | |||||||||||||
Net interest income (TE) | $ 208,701 | $ 210,488 | $ 212,587 | $ 225,092 | $ 213,912 | $ 631,776 | $ 579,803 | ||||||
Noninterest income | 63,181 | 67,349 | 56,050 | 48,348 | 65,324 | 186,580 | 236,076 | ||||||
Total revenue (TE) | 271,882 | 277,837 | 268,637 | 273,440 | 279,236 | 818,356 | 815,879 | ||||||
Adjustment items: | |||||||||||||
(Gain) loss on securities | 16 | 6 | (6) | (3) | 21 | 16 | (200) | ||||||
(Gain) loss on sale of MSR | — | — | — | (1,672) | 316 | — | 316 | ||||||
Gain on BOLI proceeds | — | — | (486) | — | (55) | (486) | (55) | ||||||
Servicing right impairment (recovery) | — | — | — | — | (1,332) | — | (21,824) | ||||||
Adjusted total revenue (TE) | $ 271,898 | $ 277,843 | $ 268,145 | $ 271,765 | $ 278,186 | $ 817,886 | $ 794,116 | ||||||
Efficiency ratio | 52.21 % | 53.60 % | 52.08 % | 49.57 % | 50.15 % | 52.64 % | 52.35 % | ||||||
Adjusted efficiency ratio (TE) | 52.02 % | 53.41 % | 51.99 % | 49.61 % | 50.12 % | 52.49 % | 53.46 % | ||||||
Tangible Book Value Per Share | Table 9C | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Total shareholders' equity | $ 3,347,069 | $ 3,284,630 | $ 3,253,195 | $ 3,197,400 | $ 3,119,070 | $ 3,347,069 | $ 3,119,070 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,015,646 | 1,023,071 | ||||||
Other intangibles, net | 92,375 | 96,800 | 101,488 | 106,194 | 110,903 | 92,375 | 110,903 | ||||||
Total tangible shareholders' equity | $ 2,239,048 | $ 2,172,184 | $ 2,136,061 | $ 2,075,560 | $ 1,985,096 | $ 2,239,048 | $ 1,985,096 | ||||||
Period end number of shares | 69,138,461 | 69,139,783 | 69,373,863 | 69,369,050 | 69,352,709 | 69,138,461 | 69,352,709 | ||||||
Book value per share (period end) | $ 48.41 | $ 47.51 | $ 46.89 | $ 46.09 | $ 44.97 | $ 48.41 | $ 44.97 | ||||||
Tangible book value per share (period end) | $ 32.38 | $ 31.42 | $ 30.79 | $ 29.92 | $ 28.62 | $ 32.38 | $ 28.62 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Non-GAAP Reconciliations (continued) | |||||||||||||
Tangible Common Equity to Tangible Assets | Table 9D | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Total shareholders' equity | $ 3,347,069 | $ 3,284,630 | $ 3,253,195 | $ 3,197,400 | $ 3,119,070 | $ 3,347,069 | $ 3,119,070 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,015,646 | 1,023,071 | ||||||
Other intangibles, net | 92,375 | 96,800 | 101,488 | 106,194 | 110,903 | 92,375 | 110,903 | ||||||
Total tangible shareholders' equity | $ 2,239,048 | $ 2,172,184 | $ 2,136,061 | $ 2,075,560 | $ 1,985,096 | $ 2,239,048 | $ 1,985,096 | ||||||
Total assets | $ 25,697,830 | $ 25,800,618 | $ 26,088,384 | $ 25,053,286 | $ 23,813,657 | $ 25,697,830 | $ 23,813,657 | ||||||
Less: | |||||||||||||
Goodwill | 1,015,646 | 1,015,646 | 1,015,646 | 1,015,646 | 1,023,071 | 1,015,646 | 1,023,071 | ||||||
Other intangibles, net | 92,375 | 96,800 | 101,488 | 106,194 | 110,903 | 92,375 | 110,903 | ||||||
Total tangible assets | $ 24,589,809 | $ 24,688,172 | $ 24,971,250 | $ 23,931,446 | $ 22,679,683 | $ 24,589,809 | $ 22,679,683 | ||||||
Equity to Assets | 13.02 % | 12.73 % | 12.47 % | 12.76 % | 13.10 % | 13.02 % | 13.10 % | ||||||
Tangible Common Equity to Tangible Assets | 9.11 % | 8.80 % | 8.55 % | 8.67 % | 8.75 % | 9.11 % | 8.75 % | ||||||
PPNR ROA | Table 9E | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Net income | $ 80,115 | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 203,171 | $ 264,319 | ||||||
Plus: | |||||||||||||
Income taxes | 24,912 | 20,335 | 18,131 | 22,313 | 28,520 | 63,378 | 84,245 | ||||||
Provision for credit losses | 24,459 | 45,516 | 49,729 | 32,890 | 17,652 | 119,704 | 38,807 | ||||||
PPNR | $ 129,486 | $ 128,486 | $ 128,281 | $ 137,424 | $ 138,727 | $ 386,253 | $ 387,371 | ||||||
Average Assets | $ 25,525,913 | $ 25,631,846 | $ 25,115,927 | $ 24,354,979 | $ 23,598,465 | $ 25,426,064 | $ 23,405,411 | ||||||
Return on Average Assets (ROA) | 1.25 % | 0.98 % | 0.98 % | 1.34 % | 1.56 % | 1.07 % | 1.51 % | ||||||
PPNR ROA | 2.01 % | 2.01 % | 2.07 % | 2.24 % | 2.33 % | 2.03 % | 2.21 % | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Segment Reporting | Table 10 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
Banking Division | |||||||||||||
Net interest income | $ 167,595 | $ 171,441 | $ 175,328 | $ 185,909 | $ 174,507 | $ 514,364 | $ 460,374 | ||||||
Provision for credit losses | 20,833 | 40,831 | 47,140 | 35,946 | 10,551 | 108,804 | 25,952 | ||||||
Noninterest income | 26,245 | 24,652 | 23,898 | 23,448 | 23,269 | 74,795 | 68,102 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 56,226 | 55,196 | 56,442 | 52,296 | 48,599 | 167,864 | 144,527 | ||||||
Occupancy and equipment expenses | 11,437 | 11,175 | 11,606 | 11,482 | 11,357 | 34,218 | 33,599 | ||||||
Data processing and telecommunications expenses | 11,786 | 11,898 | 11,797 | 11,085 | 10,779 | 35,481 | 32,872 | ||||||
Other noninterest expenses | 20,274 | 27,643 | 19,023 | 21,811 | 22,974 | 66,940 | 64,142 | ||||||
Total noninterest expense | 99,723 | 105,912 | 98,868 | 96,674 | 93,709 | 304,503 | 275,140 | ||||||
Income before income tax expense | 73,284 | 49,350 | 53,218 | 76,737 | 93,516 | 175,852 | 227,384 | ||||||
Income tax expense | 18,283 | 13,312 | 12,848 | 16,545 | 22,706 | 44,443 | 58,822 | ||||||
Net income | $ 55,001 | $ 36,038 | $ 40,370 | $ 60,192 | $ 70,810 | $ 131,409 | $ 168,562 | ||||||
Retail Mortgage Division | |||||||||||||
Net interest income | $ 22,805 | $ 21,417 | $ 20,027 | $ 19,837 | $ 19,283 | $ 64,249 | $ 59,357 | ||||||
Provision for credit losses | 2,399 | 3,278 | 2,853 | (2,778) | 9,043 | 8,530 | 15,129 | ||||||
Noninterest income | 35,691 | 39,808 | 31,058 | 24,011 | 38,584 | 106,557 | 158,028 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 21,231 | 21,930 | 20,160 | 19,164 | 25,813 | 63,321 | 88,646 | ||||||
Occupancy and equipment expenses | 1,182 | 1,224 | 1,283 | 1,242 | 1,460 | 3,689 | 4,337 | ||||||
Data processing and telecommunications expenses | 1,052 | 1,397 | 1,069 | 1,203 | 1,082 | 3,518 | 3,377 | ||||||
Other noninterest expenses | 12,153 | 11,859 | 11,747 | 11,126 | 11,641 | 35,759 | 37,098 | ||||||
Total noninterest expense | 35,618 | 36,410 | 34,259 | 32,735 | 39,996 | 106,287 | 133,458 | ||||||
Income before income tax expense | 20,479 | 21,537 | 13,973 | 13,891 | 8,828 | 55,989 | 68,798 | ||||||
Income tax expense | 4,301 | 4,523 | 2,934 | 2,916 | 1,854 | 11,758 | 14,448 | ||||||
Net income | $ 16,178 | $ 17,014 | $ 11,039 | $ 10,975 | $ 6,974 | $ 44,231 | $ 54,350 | ||||||
Warehouse Lending Division | |||||||||||||
Net interest income | $ 6,008 | $ 6,166 | $ 5,700 | $ 6,601 | $ 6,979 | $ 17,874 | $ 20,126 | ||||||
Provision for credit losses | (589) | 411 | (194) | 117 | (1,836) | (372) | (1,191) | ||||||
Noninterest income | 662 | 1,404 | 480 | 579 | 1,516 | 2,546 | 3,958 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 924 | 772 | 802 | 427 | 1,055 | 2,498 | 1,546 | ||||||
Occupancy and equipment expenses | 1 | — | 1 | 1 | 1 | 2 | 3 | ||||||
Data processing and telecommunications expenses | 30 | 44 | 46 | 49 | 43 | 120 | 138 | ||||||
Other noninterest expenses | 219 | 223 | 202 | 191 | 209 | 644 | 639 | ||||||
Total noninterest expense | 1,174 | 1,039 | 1,051 | 668 | 1,308 | 3,264 | 2,326 | ||||||
Income before income tax expense | 6,085 | 6,120 | 5,323 | 6,395 | 9,023 | 17,528 | 22,949 | ||||||
Income tax expense | 1,278 | 1,285 | 1,118 | 1,342 | 1,895 | 3,681 | 4,820 | ||||||
Net income | $ 4,807 | $ 4,835 | $ 4,205 | $ 5,053 | $ 7,128 | $ 13,847 | $ 18,129 | ||||||
AMERIS BANCORP AND SUBSIDIARIES | |||||||||||||
FINANCIAL TABLES | |||||||||||||
Segment Reporting (continued) | Table 10 | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Sep | Jun | Mar | Dec | Sep | Sep | Sep | |||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||
SBA Division | |||||||||||||
Net interest income | $ 1,962 | $ 2,331 | $ 1,957 | $ 2,491 | $ 2,424 | $ 6,250 | $ 12,233 | ||||||
Provision for credit losses | 1,677 | 424 | (104) | 265 | 52 | 1,997 | (614) | ||||||
Noninterest income | 579 | 1,476 | 605 | 302 | 1,946 | 2,660 | 5,963 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 1,209 | 1,316 | 1,309 | 1,306 | 1,412 | 3,834 | 3,999 | ||||||
Occupancy and equipment expenses | 36 | 40 | 37 | 98 | 82 | 113 | 262 | ||||||
Data processing and telecommunications expenses | 32 | 46 | 37 | 30 | 29 | 115 | 86 | ||||||
Other noninterest expenses | 157 | 333 | 422 | 368 | 100 | 912 | 1,019 | ||||||
Total noninterest expense | 1,434 | 1,735 | 1,805 | 1,802 | 1,623 | 4,974 | 5,366 | ||||||
Income before income tax expense | (570) | 1,648 | 861 | 726 | 2,695 | 1,939 | 13,444 | ||||||
Income tax expense | (120) | 346 | 181 | 153 | 566 | 407 | 2,823 | ||||||
Net income | $ (450) | $ 1,302 | $ 680 | $ 573 | $ 2,129 | $ 1,532 | $ 10,621 | ||||||
Premium Finance Division | |||||||||||||
Net interest income | $ 9,381 | $ 8,185 | $ 8,640 | $ 9,299 | $ 9,788 | $ 26,206 | $ 24,799 | ||||||
Provision for credit losses | 139 | 572 | 34 | (660) | (158) | 745 | (469) | ||||||
Noninterest income | 4 | 9 | 9 | 8 | 9 | 22 | 25 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 2,308 | 2,122 | 2,197 | 2,003 | 1,818 | 6,627 | 5,805 | ||||||
Occupancy and equipment expenses | 89 | 83 | 59 | 82 | 83 | 231 | 255 | ||||||
Data processing and telecommunications expenses | 73 | 66 | 85 | 119 | 82 | 224 | 269 | ||||||
Other noninterest expenses | 1,027 | 1,036 | 1,097 | 978 | 959 | 3,160 | 2,975 | ||||||
Total noninterest expense | 3,497 | 3,307 | 3,438 | 3,182 | 2,942 | 10,242 | 9,304 | ||||||
Income before income tax expense | 5,749 | 4,315 | 5,177 | 6,785 | 7,013 | 15,241 | 15,989 | ||||||
Income tax expense | 1,170 | 869 | 1,050 | 1,357 | 1,499 | 3,089 | 3,332 | ||||||
Net income | $ 4,579 | $ 3,446 | $ 4,127 | $ 5,428 | $ 5,514 | $ 12,152 | $ 12,657 | ||||||
Total Consolidated | |||||||||||||
Net interest income | $ 207,751 | $ 209,540 | $ 211,652 | $ 224,137 | $ 212,981 | $ 628,943 | $ 576,889 | ||||||
Provision for credit losses | 24,459 | 45,516 | 49,729 | 32,890 | 17,652 | 119,704 | 38,807 | ||||||
Noninterest income | 63,181 | 67,349 | 56,050 | 48,348 | 65,324 | 186,580 | 236,076 | ||||||
Noninterest expense | |||||||||||||
Salaries and employee benefits | 81,898 | 81,336 | 80,910 | 75,196 | 78,697 | 244,144 | 244,523 | ||||||
Occupancy and equipment expenses | 12,745 | 12,522 | 12,986 | 12,905 | 12,983 | 38,253 | 38,456 | ||||||
Data processing and telecommunications expenses | 12,973 | 13,451 | 13,034 | 12,486 | 12,015 | 39,458 | 36,742 | ||||||
Other noninterest expenses | 33,830 | 41,094 | 32,491 | 34,474 | 35,883 | 107,415 | 105,873 | ||||||
Total noninterest expense | 141,446 | 148,403 | 139,421 | 135,061 | 139,578 | 429,270 | 425,594 | ||||||
Income before income tax expense | 105,027 | 82,970 | 78,552 | 104,534 | 121,075 | 266,549 | 348,564 | ||||||
Income tax expense | 24,912 | 20,335 | 18,131 | 22,313 | 28,520 | 63,378 | 84,245 | ||||||
Net income | $ 80,115 | $ 62,635 | $ 60,421 | $ 82,221 | $ 92,555 | $ 203,171 | $ 264,319 | ||||||
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SOURCE Ameris Bancorp
