Ameris Bancorp Announces Financial Results For First Quarter 2020

ATLANTA, April 23, 2020 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $19.3 million, or $0.28 per diluted share, for the quarter ended March 31, 2020, compared with $39.9 million, or $0.84 per diluted share, for the quarter ended March 31, 2019.  The decline in net income is attributable to a $37.6 million increase in provision for loan loss expense and a $22.2 million servicing asset write-down in the first quarter of 2020.  The Company reported adjusted net income of $39.2 million, or $0.56 per diluted share, for the quarter ended March 31, 2020, compared with $42.6 million, or $0.90 per diluted share, for the same period in 2019.  Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, restructuring charges related to previously announced branch consolidations, certain legal expenses, loss on sale of bank premises and expenses related to natural disasters and the COVID-19 pandemic, but does not exclude the increased provision for credit losses.

Ameris Bancorp logo. (PRNewsFoto/Ameris Bancorp)

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "While this has certainly been a historically unprecedented quarter, I am proud that our company could absorb over $41 million of provision for credit loss expense and a $22 million write-down of our servicing assets and still produce net income of over $19 million.  Our current allowance for loan loss ended the quarter at over $149 million, up from $38 million at year end, and our capital levels remain strong.  We have committed bankers who continue to serve our customers and our communities through the COVID-19 pandemic and have been successful in lending $685 million under the  Paycheck Protection Program ("PPP") in April.  We are prepared to face the challenges of today's environment and we remain confident in our position for the future in these uncertain times."

On January 1, 2020, the Company adopted ASC 326, which provides for an expected credit loss model, referred to as the "Current Expected Credit Loss" ("CECL") model.  The adoption of this standard resulted in the opening balances of the allowance for credit losses increasing $91.4 million and shareholders' equity decreasing $56.7 million.  In addition, the Company recorded $41.0 million of provision for credit loss expense in the first quarter of 2020, of which $37.0 million was expense for loan credit losses and $4.0 million was for an increase in unfunded commitment reserve.  Net charge-offs for the first quarter of 2020 were $4.4 million.  As a result of these items, at March 31, 2020, the allowance for loan loss was $149.5 million, and the total allowance for credit losses was $167.3 million, compared with $38.2 million and $39.3 million, respectively, at December 31, 2019.

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

  • Net income of $19.3 million, after pre-tax provision for credit losses of $41.0 million and servicing asset write-downs of $22.2 million
  • Growth in adjusted total revenue of $12.9 million, or 6.1% when compared with the fourth quarter of 2019
  • Adjusted efficiency ratio of 59.87%, compared with 55.61%, in the fourth quarter of 2019
  • Adjusted return on average assets of 0.87%, compared with 1.47% in the fourth quarter of 2019
  • Net interest margin of 3.70%, compared with 3.86% in the fourth quarter of 2019
  • Improvement in deposit mix such that noninterest bearing deposits represent 30.53% of total deposits, up from 29.94% at December 31, 2019 and 28.09% a year ago
  • Annualized net charge-offs of 0.14% of average total loans
  • Non-performing assets of 0.61% of total assets, compared with 0.56% at the end of 2019

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

Adjusted Net Income Reconciliation





Three Months Ended


March 31,

(dollars in thousands, except per share data)

2020


2019

Net income available to common shareholders

$

19,322



$

39,905






Adjustment items:




Merger and conversion charges

540



2,057


Restructuring charges



245


Servicing right impairment

22,165




Natural disaster and pandemic charges

548



(89)


Expenses related to SEC and DOJ investigation

1,443




Loss on sale of premises

470



919


Tax effect of adjustment items

(5,283)



(450)


After-tax adjustment items

19,883



2,682






Adjusted net income

$

39,205



$

42,587






Reported net income per diluted share

$

0.28



$

0.84


Adjusted net income per diluted share

$

0.56



$

0.90






Reported return on average assets

0.43

%


1.42

%

Adjusted return on average assets

0.87

%


1.51

%





Reported return on average common equity

3.16

%


10.95

%

Adjusted return on average tangible common equity

10.98

%


18.82

%

Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis for the first quarter of 2020 totaled $149.0 million, compared with $156.5 million for the fourth quarter of 2019 and $100.5 million for the first quarter of 2019.  The Company's net interest margin was 3.70% for the first quarter of 2020, down from 3.86% reported for the fourth quarter of 2019 and 3.95% reported for the first quarter of 2019.  The decrease in net interest margin in the current quarter is primarily attributable to decreases in accretion income and the yield on loans as market interest rates declined, partially offset by a decrease in the cost of interest-bearing liabilities.  Accretion income for the first quarter of 2020 decreased to $6.6 million, compared with $9.7 million for the fourth quarter of 2019, and increased from $2.9 million for the first quarter of 2019.  The decrease in accretion income in the first quarter is primarily attributable to the successful resolution of an acquired non-performing loan during the fourth quarter of 2019 that had a substantial discount and stabilization in the level of payoffs of acquired loans. 

Yields on all loans decreased to 5.02% during the first quarter of 2020, compared with 5.28% for the fourth quarter of 2019 and 5.37% reported for the first quarter of 2019.  Loan production in the banking division during the first quarter of 2020 totaled $918.4 million, with weighted average yields of 4.55%, compared with $1.1 billion and 4.70%, respectively, in the fourth quarter of 2019 and $613.5 million and 5.78%, respectively, in the first quarter of 2019.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $3.9 billion during the first quarter of 2020, with weighted average yields of 4.15%, compared with $4.1 billion and 4.29%, respectively, during the fourth quarter of 2019 and $1.9 billion and 5.47%, respectively, during the first quarter of 2019.

Interest expense during the first quarter of 2020 decreased to $34.8 million, compared with $38.7 million in the fourth quarter of 2019, and increased from $25.5 million in the first quarter of 2019.  The Company's total cost of funds moved nine basis points lower to 0.91% in the first quarter of 2020 as compared with the fourth quarter of 2019.  Deposit costs also decreased nine basis points during the first quarter of 2020 to 0.71%, compared with 0.80% in the fourth quarter of 2019.  Costs of interest-bearing deposits decreased during the quarter from 1.13% in the fourth quarter of 2019 to 1.01% in the first quarter of 2020.

Noninterest Income
Noninterest income decreased $734,000, or 1.3%, in the first quarter of 2020 to $54.4 million, compared with $55.1 million for the fourth quarter of 2019, primarily as a result of decreased service charge revenue.  Service charge revenue decreased $1.7 million, or 12.7%, to $11.8 million in the first quarter of 2020, compared with $13.6 million for the fourth quarter of 2019.  This decrease was primarily attributable to a decline in interchange income of $626,000 and a decrease of $634,000 in NSF income resulting from a decrease in volume and a slight increase in waivers.

Mortgage banking activity increased $2.2 million, or 6.5%, to $35.3 million in the first quarter of 2020, compared with $33.2 million for the fourth quarter of 2019.  This increase was a result of expansion in our gain on sale spread. Gain on sale spreads increased to 2.88% in the first quarter of 2020 from 2.60% for the fourth quarter of 2019. Total production in the retail mortgage division decreased to $1.36 billion in the first quarter of 2020, compared with $1.57 billion for the fourth quarter of 2019.   Mortgage banking activity was negatively impacted during the first quarter of 2020 by a $20.9 million servicing right impairment, compared with an impairment of $104,000 for the fourth quarter of 2019. The retail mortgage open pipeline finished the first quarter of 2020 at $2.43 billion, compared with $1.16 billion at December 31, 2019.

Other noninterest income decreased $1.2 million, or 16.6%, in the first quarter of 2020 to $6.1 million, compared with $7.3 million for the fourth quarter of 2019, primarily as a result of an unfavorable fair value adjustment on our SBA servicing rights of $1.3 million for the first quarter of 2020.

Noninterest Expense
Noninterest expense increased $15.5 million, or 12.6%, to $138.1 million during the first quarter of 2020, compared with $122.6 million for the fourth quarter of 2019.  During the first quarter of 2020, the Company recorded $3.0 million of charges to earnings, related to the previously announced SEC/DOJ investigations, merger and conversion charges, natural disaster and pandemic charges and loss on sale of premises, compared with $4.3 million in charges in the fourth quarter of 2019 that were related principally to merger and conversion charges and loss on sale of premises.  Excluding these charges, adjusted expenses increased approximately $16.8 million, or 14.2%, to $135.1 million in the first quarter of 2020, from $118.3 million in the fourth quarter of 2019.  The majority of this increase is attributable to variable expenses related to increased mortgage production and seasonal increase in payroll tax expense, as well as increases in credit resolution-related expenses, professional fees and FDIC insurance. The Company continues to focus on its operating efficiency ratio. The Company's adjusted efficiency ratio increased from 55.61% in the fourth quarter of 2019 to 59.87% in the first quarter of 2020.

Income Tax Expense
The Company's effective tax rate for the first quarter of 2020 was 16.8%, compared with 25.5% in the fourth quarter of 2019. The decreased rate for the first quarter of 2020 was primarily a result of loss carrybacks allowed as a result of the recently enacted CARES Act. The elevated rate for the fourth quarter of 2019 resulted from a return to provision adjustment occurring when the Company filed its 2018 income tax returns during the fourth quarter of 2019 and additional tax expense in connection with merger-related compensation and acquired BOLI.

Balance Sheet Trends
Total assets at March 31, 2020 were $18.2 billion, which is essentially unchanged from December 31, 2019.  Total loans, including loans held for sale, were $14.49 billion at March 31, 2020, compared with $14.48 billion at December 31, 2019.  Total loans held for investment were $13.09 billion at March 31, 2020, compared with $12.82 billion at December 31, 2019.  Loans held for investment increased $275.6 million, or 8.6% annualized, compared with December 31, 2019.  Loan production in the banking division during the first quarter of 2020 was down 16% from the fourth quarter of 2019, but was 50% higher than the first quarter of 2019. 

At March 31, 2020, total deposits amounted to $13.84 billion, or 89.2% of total funding, compared with $14.03 billion and 90.1%, respectively, at December 31, 2019.  At March 31, 2020, noninterest-bearing deposit accounts were $4.23 billion, or 30.5% of total deposits, compared with $4.20 billion, or 29.9% of total deposits, at December 31, 2019.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $7.14 billion at March 31, 2020, compared with $7.21 billion at December 31, 2019.  These funds represented 51.6% of the Company's total deposits at March 31, 2020, compared with 51.4% at the end of 2019.

Shareholders' equity at March 31, 2020 totaled $2.44 billion, a decrease of $32.4 million, or 1.3%, from December 31, 2019.  The decrease in shareholders' equity was primarily the result of the CECL adoption impact of $56.7 million and dividends declared, partially offset by earnings of $19.3 million during the first quarter of 2020.  Tangible book value per share was $20.44 at March 31, 2020, compared with $20.81 at December 31, 2019.  Tangible common equity as a percentage of tangible assets was 8.25% at March 31, 2020, compared with 8.40% at the end of the 2019.

Credit Quality
Credit quality remains strong in the Company.  During the first quarter of 2020, the Company recorded provision for credit losses of $41.0 million, compared with $5.7 million in the fourth quarter of 2019.  This increase in provision was primarily attributable to declines in forecasted economic conditions, particularly levels of unemployment and GDP, compared with conditions at the adoption of CECL.  The Company has been prudently working with borrowers to support their credit needs during the challenging economic conditions and monitoring the level of modifications on a daily basis.  Certain loans modified in response to the COVID-19 pandemic were downgraded to risk grade 5 out of an abundance of caution.  Nonperforming assets as a percentage of total assets increased by five basis points to 0.61% during the quarter.  The increase in nonperforming assets is primarily a result of the migration of a small number of credits to nonaccrual and OREO and an increase in accruing loans delinquent 90 days or more in our premium finance division.  The net charge-off ratio was 14 basis points for the first quarter of 2020, compared with nine basis points in the fourth quarter of 2019 and 17 basis points in the first quarter of 2019.

Conference Call
The Company will host a teleconference at 9:00 a.m. Eastern time Friday, April 24, 2020, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants).  The conference ID name is Ameris Bancorp ABCB.  A replay of the call will be available one hour after the end of the conference call until May 8, 2020.  To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for other international participants).  The conference replay access code is 10142204.  The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.

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

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

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

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Financial Highlights

Table 1


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2020


2019


2019


2019


2019

EARNINGS










Net income

$

19,322



$

61,248



$

21,384



$

38,904



$

39,905


Adjusted net income

$

39,205



$

66,608



$

68,539



$

45,210



$

42,587












COMMON SHARE DATA










Earnings per share available to common shareholders










  Basic

$

0.28



$

0.88



$

0.31



$

0.82



$

0.84


  Diluted

$

0.28



$

0.88



$

0.31



$

0.82



$

0.84


Adjusted diluted EPS

$

0.56



$

0.96



$

0.98



$

0.96



$

0.90


Cash dividends per share

$

0.15



$

0.15



$

0.15



$

0.10



$

0.10


Book value per share (period end)

$

35.10



$

35.53



$

34.78



$

32.52



$

31.43


Tangible book value per share (period end)

$

20.44



$

20.81



$

20.29



$

20.81



$

19.73


Weighted average number of shares










  Basic

69,247,661



69,429,193



69,372,125



47,310,561



47,366,296


  Diluted

69,502,022



69,683,999



69,600,499



47,337,809



47,456,314


Period end number of shares

69,441,274



69,503,833



69,593,833



47,261,584



47,585,309


Market data










  High intraday price

$

43.79



$

44.90



$

40.65



$

39.60



$

42.01


  Low intraday price

$

17.89



$

38.34



$

33.71



$

33.57



$

31.27


  Period end closing price

$

23.76



$

42.54



$

40.24



$

39.19



$

34.35


  Average daily volume

461,692



353,783



461,289



352,684



387,800












PERFORMANCE RATIOS










Return on average assets

0.43

%


1.35

%


0.49

%


1.34

%


1.42

%

Adjusted return on average assets

0.87

%


1.47

%


1.57

%


1.56

%


1.51

%

Return on average common equity

3.16

%


9.97

%


3.49

%


10.27

%


10.95

%

Adjusted return on average tangible common equity

10.98

%


18.45

%


18.95

%


18.79

%


18.82

%

Earning asset yield (TE)

4.56

%


4.82

%


4.86

%


4.95

%


4.95

%

Total cost of funds

0.91

%


1.00

%


1.07

%


1.10

%


1.05

%

Net interest margin (TE)

3.70

%


3.86

%


3.84

%


3.91

%


3.95

%

Noninterest income excluding securities transactions, as a percent of total revenue (TE)

22.83

%


22.02

%


28.89

%


21.27

%


19.59

%

Efficiency ratio

68.23

%


58.24

%


85.35

%


59.36

%


57.95

%

Adjusted efficiency ratio (TE)

59.87

%


55.61

%


57.25

%


53.77

%


55.12

%











CAPITAL ADEQUACY (period end)










Shareholders' equity to assets

13.37

%


13.54

%


13.63

%


12.93

%


12.83

%

Tangible common equity to tangible assets

8.25

%


8.40

%


8.43

%


8.68

%


8.46

%











EQUITY TO ASSETS RECONCILIATION










Tangible common equity to tangible assets

8.25

%


8.40

%


8.43

%


8.68

%


8.46

%

Effect of goodwill and other intangibles

5.12

%


5.14

%


5.20

%


4.25

%


4.37

%

Equity to assets (GAAP)

13.37

%


13.54

%


13.63

%


12.93

%


12.83

%











OTHER DATA (period end)










Full time equivalent employees










  Banking Division

1,865



1,913



2,001



1,336



1,343


  Retail Mortgage Division

689



690



785



348



328


  Warehouse Lending Division

9



9



9



10



9


  SBA Division

44



42



45



21



22


  Premium Finance Division

72



68



66



62



64


  Total Ameris Bancorp FTE headcount

2,679



2,722



2,906



1,777



1,766












Assets per Banking Division FTE

$

9,772



$

9,536



$

8,878



$

8,889



$

8,679


Branch locations

170



170



172



114



114


Deposits per branch location

$

81,439



$

82,512



$

79,416



$

84,056



$

85,973


 

AMERIS BANCORP AND SUBSIDIARIES


FINANCIAL TABLES




Income Statement

Table 2



Three Months Ended



Mar


Dec


Sep


Jun


Mar


(dollars in thousands except per share data)

2020


2019


2019


2019


2019


Interest income











Interest and fees on loans

$

171,242



$

182,391



$

175,046



$

117,010



$

112,401



Interest on taxable securities

10,082



10,358



11,354



9,383



9,043



Interest on nontaxable securities

157



167



168



102



156



Interest on deposits in other banks

1,211



1,091



1,622



2,276



3,150



Interest on federal funds sold

76



69



171



257



179



Total interest income

182,768



194,076



188,361



129,028



124,929














Interest expense











Interest on deposits

24,102



27,970



29,425



23,454



21,684



Interest on other borrowings

10,721



10,755



10,167



3,923



3,850



Total interest expense

34,823



38,725



39,592



27,377



25,534














Net interest income

147,945



155,351



148,769



101,651



99,395














Provision for loan losses

37,047



5,693



5,989



4,668



3,408



Provision for unfunded commitments

4,000











Provision for credit losses

41,047



5,693



5,989



4,668



3,408



Net interest income after provision for credit losses

106,898



149,658



142,780



96,983



95,987














Noninterest income











Service charges on deposits accounts

11,844



13,567



13,411



12,168



11,646



Mortgage banking activity

35,333



33,168



53,041



18,523



14,677



Other service charges, commissions and fees

1,128



1,085



1,236



803



789



Gain (loss) on securities

(9)



(1)



4



69



66



Other noninterest income

6,083



7,294



9,301



3,673



3,593



Total noninterest income

54,379



55,113



76,993



35,236



30,771














Noninterest expense











Salaries and employee benefits

75,946



69,642



77,633



38,331



38,332



Occupancy and equipment expenses

12,028



11,919



12,639



7,834



8,204



Data processing and telecommunications expenses

11,954



11,362



10,372



8,388



8,391



Credit resolution related expenses(1)

2,198



1,098



1,094



979



911



Advertising and marketing expenses

2,358



2,250



1,949



1,987



1,741



Amortization of intangible assets

5,631



5,741



5,719



3,121



3,132



Merger and conversion charges

540



2,415



65,158



3,475



2,057



Other noninterest expenses

27,398



18,137



18,133



17,136



12,657



Total noninterest expense

138,053



122,564



192,697



81,251



75,425














Income before income tax expense

23,224



82,207



27,076



50,968



51,333



Income tax expense

3,902



20,959



5,692



12,064



11,428



Net income (loss)

$

19,322



$

61,248



$

21,384



$

38,904



$

39,905














Diluted earnings per common share

$

0.28



$

0.88



$

0.31



$

0.82



$

0.84














(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.







































 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Period End Balance Sheet

Table 3


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Assets










Cash and due from banks

$

255,312



$

246,234



$

193,976



$

151,186



$

144,801


Federal funds sold and interest-bearing deposits in banks

396,844



375,615



285,713



186,969



712,199


Time deposits in other banks

249



249



499



748



7,371


Investment securities available for sale, at fair value

1,353,040



1,403,403



1,491,207



1,273,244



1,234,435


Other investments

81,754



66,919



66,921



32,481



15,157


Loans held for sale, at fair value

1,398,229



1,656,711



1,187,551



261,073



112,070












Loans, net of unearned income

13,094,106



12,818,476



12,826,284



9,049,870



8,482,339


Allowance for loan losses

(149,524)



(38,189)



(35,530)



(31,793)



(28,659)


Loans, net

12,944,582



12,780,287



12,790,754



9,018,077



8,453,680












Other real estate owned

21,027



19,500



20,710



14,675



16,871












Premises and equipment, net

231,347



233,102



239,428



141,378



141,698


Goodwill

931,947



931,637



911,488



501,140



501,308


Other intangible assets, net

85,955



91,586



97,328



52,437



55,557


Cash value of bank owned life insurance

176,239



175,270



174,442



105,064



104,597


Deferred income taxes, net

24,196



2,180



22,111



30,812



33,295


Other assets

323,827



259,886



282,149



120,052



123,236


Total assets

$

18,224,548



$

18,242,579



$

17,764,277



$

11,889,336



$

11,656,275












Liabilities










Deposits










Noninterest-bearing

$

4,226,253



$

4,199,448



$

4,077,856



$

2,771,443



$

2,753,173


Interest-bearing

9,618,365



9,827,625



9,581,738



6,810,927



7,047,702


  Total deposits

13,844,618



14,027,073



13,659,594



9,582,370



9,800,875


Federal funds purchased and securities sold under agreements to repurchase

15,160



20,635



17,744



3,307



4,259


Other borrowings

1,543,371



1,398,709



1,351,172



564,636



151,454


Subordinated deferrable interest debentures

122,890



127,560



127,075



89,871



89,529


FDIC loss-share payable, net

18,111



19,642



19,490



20,596



18,834


Other liabilities

243,248



179,378



168,479



91,435



95,740


Total liabilities

15,787,398



15,772,997



15,343,554



10,352,215



10,160,691












Shareholders' Equity










Preferred stock










Common stock

71,652



71,500



71,447



49,099



49,126


Capital stock

1,908,721



1,907,108



1,904,789



1,053,500



1,053,190


Retained earnings

460,153



507,950



457,127



446,182



412,005


Accumulated other comprehensive income (loss), net of tax

39,551



17,995



15,482



16,462



(1,178)


Treasury stock

(42,927)



(34,971)



(28,122)



(28,122)



(17,559)


Total shareholders' equity

2,437,150



2,469,582



2,420,723



1,537,121



1,495,584


Total liabilities and shareholders' equity

$

18,224,548



$

18,242,579



$

17,764,277



$

11,889,336



$

11,656,275












Other Data










Earning assets

$

16,324,222



$

16,321,373



$

15,858,175



$

10,804,385



$

10,563,571


Intangible assets

1,017,902



1,023,223



1,008,816



553,577



556,865


Interest-bearing liabilities

11,299,786



11,374,529



11,077,729



7,468,741



7,292,944


Average assets

18,056,445



17,998,494



17,340,387



11,625,344



11,423,677


Average common shareholders' equity

2,456,617



2,437,272



2,432,182



1,519,598



1,478,462


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information

Table 4


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Allowance for Credit Losses










Balance at beginning of period

$

39,266



$

36,607



$

31,793



$

28,659



$

28,819












CECL adoption impact on allowance for loan losses

78,660










CECL adoption impact on allowance for unfunded commitments

12,714










  Total CECL adoption impact

91,374




















Acquisition accounting impact





1,077
















Provision for loan losses

37,047



5,693



5,989



4,668



3,408


Provision for unfunded commitments

4,000










  Provision for credit losses

41,047



5,693



5,989



4,668



3,408












Charge-offs

6,717



5,664



5,249



3,496



5,379


Recoveries

2,345



2,630



2,997



1,962



1,811


  Net charge-offs

4,372



3,034



2,252



1,534



3,568












Ending balance

$

167,315



$

39,266



$

36,607



$

31,793



$

28,659












Allowance for loan losses

$

149,524



$

38,189



$

35,530



$

31,793



$

28,659


Allowance for unfunded commitments

17,791



1,077



1,077






  Total allowance for credit losses

$

167,315



$

39,266



$

36,607



$

31,793



$

28,659












Net  Charge-off Information




















Charge-offs










Commercial, financial and agricultural

$

3,316



$

2,713



$

1,757



$

1,337



$

2,004


Real estate - construction and development



145





244



25


Real estate - commercial and farmland

927



181



1,318



589



1,254


Real estate - residential

100



100



37



155



199


Consumer installment

2,374



2,525



2,210



1,171



1,897


  Total charge-offs

6,717



5,664



5,322



3,496



5,379












Recoveries










Commercial, financial and agricultural

1,046



1,293



1,036



1,032



1,233


Real estate - construction and development

342



429



930



269



117


Real estate - commercial and farmland

85



140



74



78



39


Real estate - residential

207



67



169



294



207


Consumer installment

665



701



861



289



215


  Total recoveries

2,345



2,630



3,070



1,962



1,811












Net charge-offs

$

4,372



$

3,034



$

2,252



$

1,534



$

3,568












Non-Performing Assets










Nonaccrual loans

$

77,866



$

75,124



$

100,501



$

41,479



$

41,879


Other real estate owned

21,027



19,500



20,710



14,675



16,871


Repossessed assets

783



939



1,258






Accruing loans delinquent 90 days or more

11,969



5,754



6,325



4,613



3,676


Total non-performing assets

$

111,645



$

101,317



$

128,794



$

60,767



$

62,426












Asset Quality Ratios










Non-performing assets as a percent of total assets

0.61

%


0.56

%


0.73

%


0.51

%


0.54

%

Net charge-offs as a percent of average loans (annualized)

0.14

%


0.09

%


0.07

%


0.07

%


0.17

%

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Loans by Type










Commercial, financial and agricultural

$

2,246,927



$

2,030,711



$

2,166,592



$

1,900,811



$

1,710,879


Real estate - construction and development

1,628,367



1,549,061



1,468,695



1,103,550



915,976


Real estate - commercial and farmland

4,516,451



4,353,039



4,209,912



3,182,213



3,175,452


Real estate - residential

3,252,090



3,334,831



3,380,356



2,389,101



2,216,927


Consumer installment

1,450,271



1,550,834



1,600,729



474,195



463,105


Total loans

$

13,094,106



$

12,818,476



$

12,826,284



$

9,049,870



$

8,482,339












Troubled Debt Restructurings










Accruing troubled debt restructurings










  Commercial, financial and agricultural

$

798



$

672



$

680



$

331



$

147


  Real estate - construction and development

925



936



947



1,124



1,153


  Real estate - commercial and farmland

5,587



6,732



8,617



8,793



9,058


  Real estate - residential

29,021



21,261



21,472



21,124



20,537


  Consumer installment

4



8



9



10



11


Total accruing troubled debt restructurings

$

36,335



$

29,609



$

31,725



$

31,382



$

30,906


Nonaccrual troubled debt restructurings










  Commercial, financial and agricultural

$

335



$

335



$

144



$

162



$

167


  Real estate - construction and development

289



253



258



265



270


  Real estate - commercial and farmland

2,415



2,071



1,958



2,109



2,027


  Real estate - residential

3,992



2,857



2,103



1,760



1,749


  Consumer installment

105



107



120



123



113


Total nonaccrual troubled debt restructurings

$

7,136



$

5,623



$

4,583



$

4,419



$

4,326


   Total troubled debt restructurings

$

43,471



$

35,232



$

36,308



$

35,801



$

35,232












Loans by Risk Grade










  Grade 1 - Prime credit

$

774,956



$

587,877



$

613,281



$

622,034



$

621,328


  Grade 2 - Strong credit

785,770



840,372



856,618



811,690



672,526


  Grade 3 - Good credit

5,772,834



6,034,398



6,086,576



3,829,422



3,303,143


  Grade 4 - Satisfactory credit

4,353,733



4,884,541



4,746,020



3,401,265



3,517,166


  Grade 5 - Fair credit

1,131,128



233,020



252,424



211,229



178,176


  Grade 6 - Other assets especially mentioned

106,885



86,412



114,235



64,075



71,548


  Grade 7 - Substandard

168,561



151,846



157,114



110,152



118,446


  Grade 8 - Doubtful

239



8



14






  Grade 9 - Loss



2



2



3



6


Total loans

$

13,094,106



$

12,818,476



$

12,826,284



$

9,049,870



$

8,482,339


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances

Table 6


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Earning Assets










Federal funds sold

$

27,380



$

23,104



$

28,459



$

41,683



$

31,291


Interest-bearing deposits in banks

419,260



304,427



324,127



341,937



467,379


Time deposits in other banks

249



401



548



3,792



10,221


Investment securities - taxable

1,359,651



1,426,062



1,514,534



1,233,297



1,186,896


Investment securities - nontaxable

22,839



23,580



23,759



15,288



24,136


Other investments

73,972



64,852



53,712



15,830



14,532


Loans held for sale

1,587,131



1,537,648



856,572



154,707



101,521


Loans

12,712,997



12,697,912



12,677,063



8,740,561



8,483,978


Total Earning Assets

$

16,203,479



$

16,077,986



$

15,478,774



$

10,547,095



$

10,319,954












Deposits










Noninterest-bearing deposits

$

4,080,920



$

4,124,872



$

4,040,592



$

2,723,843



$

2,545,043


NOW accounts

2,287,947



2,204,666



2,049,175



1,506,721



1,553,988


MMDA

4,004,644



3,953,717



3,815,185



2,655,108



2,677,015


Savings accounts

643,422



649,118



661,555



405,506



399,089


Retail CDs

2,624,209



2,721,829



2,804,243



1,962,422



1,892,138


Brokered CDs

61,190



249,644



150,176



486,292



510,301


Total Deposits

13,702,332



13,903,846



13,520,926



9,739,892



9,577,574


Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

15,637



17,088



19,914



3,213



15,879


FHLB advances

1,267,303



1,080,516



810,384



22,390



6,257


Other borrowings

269,454



234,001



220,918



145,453



145,473


Subordinated deferrable interest debentures

127,731



127,292



133,519



89,686



89,343


Total Non-Deposit Funding

1,680,125



1,458,897



1,184,735



260,742



256,952


Total Funding

$

15,382,457



$

15,362,743



$

14,705,661



$

10,000,634



$

9,834,526


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)

Table 7


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Interest Income










Federal funds sold

$

76



$

69



$

171



$

257



$

179


Interest-bearing deposits in banks

1,210



1,089



1,620



2,260



3,099


Time deposits in other banks

1



2



2



16



51


Investment securities - taxable

10,082



10,358



11,354



9,383



9,043


Investment securities - nontaxable (TE)

199



212



213



129



197


Loans held for sale

13,637



14,330



7,889



1,632



1,152


Loans (TE)

158,636



169,119



168,239



116,413



112,266


Total Earning Assets

$

183,841



$

195,179



$

189,488



$

130,090



$

125,987












Accretion income (included above)

$

6,562



$

9,727



$

4,222



$

3,103



$

2,883












Interest Expense










Interest-Bearing Deposits










  NOW accounts

$

2,774



$

2,728



$

2,843



$

2,260



$

2,109


  MMDA

9,748



11,311



12,593



9,488



9,047


  Savings accounts

210



233



274



85



77


  Retail CDs

11,064



12,220



12,905



8,585



7,330


  Brokered CDs

306



1,478



810



3,036



3,121


Total Interest-Bearing Deposits

24,102



27,970



29,425



23,454



21,684


Non-Deposit Funding










  Federal funds purchased and securities sold under agreements to repurchase

40



41



32



2



11


  FHLB advances

5,109



5,241



4,618



141



44


  Other borrowings

3,511



3,358



3,332



2,210



2,227


  Subordinated deferrable interest debentures

2,061



2,115



2,185



1,570



1,568


Total Non-Deposit Funding

10,721



10,755



10,167



3,923



3,850


Total Interest-Bearing Funding

$

34,823



$

38,725



$

39,592



$

27,377



$

25,534












Net Interest Income (TE)

$

149,018



$

156,454



$

149,896



$

102,713



$

100,453


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Yields(1)

Table 8


Three Months Ended


Mar


Dec


Sep


Jun


Mar


2020


2019


2019


2019


2019

Earning Assets










Federal funds sold

1.12

%


1.18

%


2.38

%


2.47

%


2.32

%

Interest-bearing deposits in banks

1.16

%


1.42

%


1.98

%


2.65

%


2.69

%

Time deposits in other banks

1.62

%


1.98

%


1.45

%


1.69

%


2.02

%

Investment securities - taxable

2.98

%


2.88

%


2.97

%


3.05

%


3.09

%

Investment securities - nontaxable (TE)

3.50

%


3.57

%


3.56

%


3.38

%


3.31

%

Loans held for sale

3.46

%


3.70

%


3.65

%


4.23

%


4.60

%

Loans (TE)

5.02

%


5.28

%


5.16

%


5.32

%


5.37

%

Total Earning Assets

4.56

%


4.82

%


4.86

%


4.95

%


4.95

%











Interest-Bearing Deposits










NOW accounts

0.49

%


0.49

%


0.55

%


0.60

%


0.55

%

MMDA

0.98

%


1.14

%


1.31

%


1.43

%


1.37

%

Savings accounts

0.13

%


0.14

%


0.16

%


0.08

%


0.08

%

Retail CDs

1.70

%


1.78

%


1.83

%


1.75

%


1.57

%

Brokered CDs

2.01

%


2.35

%


2.14

%


2.50

%


2.48

%

Total Interest-Bearing Deposits

1.01

%


1.13

%


1.23

%


1.34

%


1.25

%

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

1.03

%


0.95

%


0.64

%


0.25

%


0.28

%

FHLB advances

1.62

%


1.92

%


2.26

%


2.53

%


2.85

%

Other borrowings

5.24

%


5.69

%


5.98

%


6.09

%


6.21

%

Subordinated deferrable interest debentures

6.49

%


6.59

%


6.49

%


7.02

%


7.12

%

Total Non-Deposit Funding

2.57

%


2.92

%


3.40

%


6.03

%


6.08

%

Total Interest-Bearing Liabilities

1.24

%


1.37

%


1.47

%


1.51

%


1.42

%











Net Interest Spread

3.32

%


3.45

%


3.39

%


3.44

%


3.53

%











Net Interest Margin(2)

3.70

%


3.86

%


3.84

%


3.91

%


3.95

%











Total Cost of Funds(3)

0.91

%


1.00

%


1.07

%


1.10

%


1.05

%

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

(2) Rate calculated based on average earning assets.

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

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations


Adjusted Net Income

Table 9A


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2020


2019


2019


2019


2019

Net income available to common shareholders

$

19,322



$

61,248



$

21,384



$

38,904



$

39,905












Adjustment items:










Merger and conversion charges

540



2,415



65,158



3,475



2,057


Restructuring charges









245


Servicing right impairment (recovery)

22,165



366



(1,319)



1,460




Gain on BOLI proceeds



752



(4,335)






Expenses related to SEC/DOJ Investigation

1,443



463








Natural disaster and pandemic charges

548







50



(89)


Loss on sale of premises

470



1,413



889



2,800



919


Tax effect of adjustment items (Note 1)

(5,283)



(898)



(13,238)



(1,479)



(450)


After tax adjustment items

19,883



4,511



47,155



6,306



2,682












Tax expense attributable to acquisition related compensation and acquired BOLI



849


















Adjusted net income

$

39,205



$

66,608



$

68,539



$

45,210



$

42,587












Weighted average number of shares - diluted

69,502,022



69,683,999



69,600,499



47,337,809



47,456,314


Net income per diluted share

$

0.28



$

0.88



$

0.31



$

0.82



$

0.84


Adjusted net income per diluted share

$

0.56



$

0.96



$

0.98



$

0.96



$

0.90












Average assets

$

18,056,445



$

17,998,494



$

17,340,387



$

11,625,344



$

11,423,677


Return on average assets

0.43

%


1.35

%


0.49

%


1.34

%


1.42

%

Adjusted return on average assets

0.87

%


1.47

%


1.57

%


1.56

%


1.51

%











Average common equity

$

2,456,617



$

2,437,272



$

2,432,182



$

1,519,598



$

1,478,462


Average tangible common equity

$

1,436,108



$

1,432,081



$

1,434,829



$

964,841



$

917,876


Return on average common equity

3.16

%


9.97

%


3.49

%


10.27

%


10.95

%

Adjusted return on average tangible common equity

10.98

%


18.45

%


18.95

%


18.79

%


18.82

%











Note 1:  A portion of the merger and conversion charges for all periods are nondeductible for tax purposes.

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations (continued)


Adjusted Efficiency Ratio (TE)

Table 9B


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Adjusted Noninterest Expense










Total noninterest expense

$

138,053



$

122,564



$

192,697



$

81,251



$

75,425


Adjustment items:










Merger and conversion charges

(540)



(2,415)



(65,158)



(3,475)



(2,057)


Restructuring charges









(245)


Expenses related to SEC/DOJ Investigation

(1,443)



(463)








Natural disaster and pandemic charges

(548)







(50)



89


Loss on sale of premises

(470)



(1,413)



(889)



(2,800)



(919)


Adjusted noninterest expense

$

135,052



$

118,273



$

126,650



$

74,926



$

72,293












Total Revenue










Net interest income

$

147,945



$

155,351



$

148,769



$

101,651



$

99,395


Noninterest income

54,379



55,113



76,993



35,236



30,771


Total revenue

$

202,324



$

210,464



$

225,762



$

136,887



$

130,166












Adjusted Total Revenue










Net interest income (TE)

$

149,018



$

156,454



$

149,896



$

102,713



$

100,453


Noninterest income

54,379



55,113



76,993



35,236



30,771


Total revenue (TE)

203,397



211,567



226,889



137,949



131,224


Adjustment items:










(Gain) loss on securities

9



(1)



(4)



(69)



(66)


Loss (gain) on BOLI proceeds



752



(4,335)






Servicing right impairment (recovery)

22,165



366



(1,319)



1,460




Adjusted total revenue (TE)

$

225,571



$

212,684



$

221,231



$

139,340



$

131,158












Efficiency ratio

68.23

%


58.24

%


85.35

%


59.36

%


57.95

%

Adjusted efficiency ratio (TE)

59.87

%


55.61

%


57.25

%


53.77

%


55.12

%











Tangible Book Value Per Share

Table 9C


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2020


2019


2019


2019


2019

Total shareholders' equity

$

2,437,150



$

2,469,582



$

2,420,723



$

1,537,121



$

1,495,584


Less:










Goodwill

931,947



931,637



911,488



501,140



501,308


Other intangibles, net

85,955



91,586



97,328



52,437



55,557


Total tangible shareholders' equity

$

1,419,248



$

1,446,359



$

1,411,907



$

983,544



$

938,719












Period end number of shares

69,441,274



69,503,833



69,593,833



47,261,584



47,585,309


Book value per share (period end)

$

35.10



$

35.53



$

34.78



$

32.52



$

31.43


Tangible book value per share (period end)

$

20.44



$

20.81



$

20.29



$

20.81



$

19.73


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

Banking Division










Net interest income

$

118,375



$

124,957



$

124,262



$

84,755



$

85,039


Provision for loan losses

35,997



4,741



3,549



2,306



2,058


Noninterest income

17,773



18,632



21,173



14,830



14,370


Noninterest expense










  Salaries and employee benefits

41,621



38,180



39,794



24,228



27,932


  Occupancy and equipment expenses

10,347



10,216



10,750



7,034



7,281


  Data processing and telecommunications expenses

10,797



10,156



9,551



7,635



7,592


  Other noninterest expenses

30,645



23,176



87,059



22,728



16,956


Total noninterest expense

93,410



81,728



147,154



61,625



59,761


Income before income tax expense

6,741



57,120



(5,268)



35,654



37,590


Income tax expense (benefit)

275



15,412



(1,269)



8,691



8,775


Net income (loss)

$

6,466



$

41,708



$

(3,999)



$

26,963



$

28,815












Retail Mortgage Division










Net interest income

$

17,756



$

18,223



$

13,009



$

7,567



$

5,753


Provision for loan losses

1,997



1,237



1,490



609



136


Noninterest income

34,369



33,335



52,493



18,070



14,290


Noninterest expense










  Salaries and employee benefits

31,097



28,233



34,144



11,886



8,207


  Occupancy and equipment expenses

1,504



1,544



1,686



670



766


  Data processing and telecommunications expenses

986



1,034



660



394



330


  Other noninterest expenses

5,875



4,553



3,484



2,385



2,114


Total noninterest expense

39,462



35,364



39,974



15,335



11,417


Income before income tax expense

10,666



14,957



24,038



9,693



8,490


Income tax expense

2,408



3,371



5,048



2,170



1,613


Net income

$

8,258



$

11,586



$

18,990



$

7,523



$

6,877












Warehouse Lending Division










Net interest income

$

3,302



$

3,771



$

3,169



$

2,987



$

2,690


Provision for loan losses

(9)



67








Noninterest income

960



610



560



450



379


Noninterest expense










  Salaries and employee benefits

210



325



286



162



161


  Occupancy and equipment expenses

1



1



2



1



1


  Data processing and telecommunications expenses

41



47



41



38



30


  Other noninterest expenses

34



53



27



75



68


Total noninterest expense

286



426



356



276



260


Income before income tax expense

3,985



3,888



3,373



3,161



2,809


Income tax expense

837



816



708



664



590


Net income

$

3,148



$

3,072



$

2,665



$

2,497



$

2,219


 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES











Segment Reporting (continued)

Table 10


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2020


2019


2019


2019


2019

SBA Division










Net interest income

$

2,181



$

2,190



$

2,573



$

1,182



$

1,086


Provision for loan losses

(903)



150



(15)



178



231


Noninterest income

1,277



2,536



2,766



1,883



1,730


Noninterest expense










  Salaries and employee benefits

1,476



1,336



1,985



735



727


  Occupancy and equipment expenses

97



79



66



65



59


  Data processing and telecommunications expenses

13



5



22



3



2


  Other noninterest expenses

515



402



503



359



387


Total noninterest expense

2,101



1,822



2,576



1,162



1,175


Income before income tax expense

2,260



2,754



2,778



1,725



1,410


Income tax expense

475



578



584



362



296


Net income

$

1,785



$

2,176



$

2,194



$

1,363



$

1,114












Premium Finance Division










Net interest income

$

6,331



$

6,210



$

5,756



$

5,160



$

4,827


Provision for loan losses

3,965



(502)



965



1,575



983


Noninterest income





1



3



2


Noninterest expense










  Salaries and employee benefits

1,542



1,568



1,424



1,320



1,305


  Occupancy and equipment expenses

79



79



135



64



97


  Data processing and telecommunications expenses

117



120



98



318



437


  Other noninterest expenses

1,056



1,457



980



1,151



973


Total noninterest expense

2,794



3,224



2,637



2,853



2,812


(Loss) income before income tax expense

(428)



3,488



2,155



735



1,034


Income tax expense (benefit)

(93)



782



621



177



154


Net (loss) income

$

(335)



$

2,706



$

1,534



$

558



$

880












Total Consolidated










Net interest income

$

147,945



$

155,351



$

148,769



$

101,651



$

99,395


Provision for loan losses

41,047



5,693



5,989



4,668



3,408


Noninterest income

54,379



55,113



76,993



35,236



30,771


Noninterest expense










  Salaries and employee benefits

75,946



69,642



77,633



38,331



38,332


  Occupancy and equipment expenses

12,028



11,919



12,639



7,834



8,204


  Data processing and telecommunications expenses

11,954



11,362



10,372



8,388



8,391


  Other noninterest expenses

38,125



29,641



92,053



26,698



20,498


Total noninterest expense

138,053



122,564



192,697



81,251



75,425


Income before income tax expense

23,224



82,207



27,076



50,968



51,333


Income tax expense

3,902



20,959



5,692



12,064



11,428


Net income

$

19,322



$

61,248



$

21,384



$

38,904



$

39,905


 

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SOURCE Ameris Bancorp

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