Ameris Bancorp (NYSE:ABCB) Q1 2022 Earnings Conference Call April 27, 2022 9:00 AM ET Company Participants Nicole Stokes - Corporate Executive VP and CFO Palmer Proctor - CEO and Director Conference Call Participants Brady Gailey - KBW Casey Whitman - Piper Sandler Kevin Fitzsimmons - D.A. Davidson David Feaster - Raymond James Jennifer Demba - Truist Securities Christopher Marinac - Janney Montgomery Scott Brody Preston - Stephens Inc Operator Hello, everyone, and welcome to the Ameris Bank First Quarter E ...

PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Ameris Bancorp is a financial holding company operating through its subsidiary, Ameris Bank, with an acquisition-oriented growth strategy Company Snapshot (as of December 31, 2021) | Metric | Value | | :--- | :--- | | Total Assets | $23.86 billion | | Total Loans | $17.13 billion | | Total Deposits | $19.67 billion | | Shareholders' Equity | $2.97 billion | | Full-Service Banking Offices | 165 | - The company's growth strategy is **acquisition-oriented**, aiming to expand its presence in the Southeast, with recent key acquisitions including Balboa Capital Corporation in 2021[17](index=17&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) - The loan portfolio is diversified, with **Commercial Real Estate** representing the largest segment, alongside residential mortgages, agricultural, commercial/industrial, and consumer loans[21](index=21&type=chunk)[22](index=22&type=chunk) - As of December 31, 2021, the company employed **2,865 full-time-equivalent employees**, with females representing 66% of the workforce and minorities representing 31%[49](index=49&type=chunk)[60](index=60&type=chunk) [Banking Services](index=7&type=section&id=BANKING%20SERVICES) The company offers a diversified loan portfolio, varied funding sources, and uses derivatives to manage interest rate risk - The company maintains a diversified loan portfolio of approximately **$17.13 billion**, representing 71.8% of total assets at year-end 2021[21](index=21&type=chunk)[22](index=22&type=chunk) - Funding sources are varied, including a full range of deposit accounts, advances from the Federal Home Loan Bank (FHLB), and several issues of **subordinated notes**[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - Derivatives, such as forward sale commitments and interest rate lock commitments, are used to manage interest rate and pricing risk associated with **mortgage lending activities**[45](index=45&type=chunk) [Supervision and Regulation](index=12&type=section&id=SUPERVISION%20AND%20REGULATION) The company and its bank subsidiary are subject to extensive regulation by multiple federal and state authorities - The company and its bank subsidiary are extensively regulated by the **Federal Reserve, FDIC, Georgia Department of Banking and Finance (GDBF), and the CFPB**[61](index=61&type=chunk)[63](index=63&type=chunk) - The company participated in the **Paycheck Protection Program (PPP)** under the CARES Act and offered loan modifications to customers impacted by the COVID-19 pandemic[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) Consolidated Capital Ratios (as of December 31, 2021) | Ratio | Company Actual | Bank Actual | | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) | 10.46% | 11.50% | | Tier 1 Capital | 10.46% | 11.50% | | Total Capital | 13.78% | 12.45% | | Tier 1 Leverage | 8.63% | 9.50% | [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from interest rate sensitivity, real estate loan concentration, cybersecurity threats, and the LIBOR transition - The company's revenues are highly correlated to market interest rates, with net interest income comprising **64.2% of total revenue** in 2021[119](index=119&type=chunk)[120](index=120&type=chunk) - A majority of the loan portfolio is **secured by real estate**, exposing the company to risks from declines in real estate values[130](index=130&type=chunk)[131](index=131&type=chunk) - The company has significant exposure to the LIBOR transition, with approximately **$2.06 billion of loans** and **$304.4 million of debt securities** indexed to LIBOR as of December 31, 2021[164](index=164&type=chunk) - As a participating lender in the SBA's Paycheck Protection Program (PPP), the company is subject to added **credit, compliance, fraud, and litigation risks**[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 1B. Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[188](index=188&type=chunk) [Item 2. Properties](index=28&type=section&id=Item%202.%20Properties) The company owns or leases 165 branch locations and 35 mortgage and loan production offices, with its headquarters in Atlanta, Georgia - The company operates 165 branch locations, with **136 owned and 29 leased**, and also leases 35 mortgage and loan production offices[189](index=189&type=chunk) [Item 3. Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 20 of the Consolidated Financial Statements - Disclosure concerning legal proceedings can be found in Item 8, Note 20, under "Litigation and Regulatory Contingencies"[190](index=190&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[190](index=190&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq (ABCB) and a share repurchase program is active through October 2022 - The company has a share repurchase program authorizing up to **$100.0 million** of its common stock, effective through October 31, 2022, with **$22.1 million** repurchased as of year-end 2021[194](index=194&type=chunk) 5-Year Cumulative Total Shareholder Return (Assuming $100 Investment on 12/31/2016) | Index | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ameris Bancorp | $100.00 | $111.50 | $73.93 | $100.60 | $92.25 | $121.79 | | NASDAQ Stock Market (US) | $100.00 | $129.64 | $125.96 | $172.18 | $249.51 | $304.85 | | KBW NASDAQ Bank Stocks | $100.00 | $118.59 | $97.58 | $132.84 | $119.14 | $164.80 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income increased significantly in 2021 due to a provision release, despite a lower net interest margin and reduced noninterest income Key Financial Performance (2021 vs. 2020) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Income | $376.9 million | $262.0 million | | Diluted EPS | $5.40 | $3.77 | | Return on Average Assets (ROA) | 1.73% | 1.36% | | Return on Average Equity (ROE) | 13.33% | 10.35% | | Provision for Credit Losses | ($35.4 million) | $145.4 million | - Organic loan growth was **$727.5 million**, or 5.0% in 2021; excluding PPP loans, organic growth was **$1.43 billion**, or 10.5%[200](index=200&type=chunk) - Tangible book value per share grew **10.8%** to $26.26 at the end of 2021 from $23.69 at the end of 2020[200](index=200&type=chunk)[203](index=203&type=chunk) [Results of Operations](index=36&type=section&id=RESULTS%20OF%20OPERATIONS) Performance was driven by a large provision release, while lower rates compressed margins and mortgage banking income normalized - Net interest income (taxable-equivalent) increased 2.6% to $659.9 million in 2021, but the net interest margin decreased by **38 basis points to 3.32%**[232](index=232&type=chunk) - The company recorded a provision release for credit losses of **$35.1 million** in 2021, a significant reversal from the $125.5 million provision in 2020[238](index=238&type=chunk) - Noninterest income decreased by 18.1% to $365.5 million in 2021, mainly driven by an **$88.2 million (23.6%) decline** in mortgage banking activity[243](index=243&type=chunk)[245](index=245&type=chunk) - Total noninterest expense decreased by 6.4% to $560.1 million in 2021, primarily due to a **$22.5 million reduction** in salaries and benefits[254](index=254&type=chunk)[255](index=255&type=chunk) [Balance Sheet Comparison](index=41&type=section&id=BALANCE%20SHEET%20COMPARISON) The balance sheet reflects loan growth, a reduced allowance for credit losses, and a significant decrease in COVID-19 loan deferrals - The allowance for credit losses on loans decreased to **$167.6 million (1.06% of loans)** at year-end 2021 from $199.4 million (1.38% of loans) at year-end 2020[240](index=240&type=chunk)[285](index=285&type=chunk) - Loans remaining in COVID-19 payment deferral programs decreased significantly to **$41.7 million** at December 31, 2021, from $332.8 million at the end of 2020[303](index=303&type=chunk)[600](index=600&type=chunk)[601](index=601&type=chunk) - The company and bank remained **well-capitalized**, with all regulatory capital ratios comfortably exceeding minimum requirements[337](index=337&type=chunk)[747](index=747&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Real estate - commercial and farmland | $6,834,917 | $5,300,006 | | Real estate - residential | $3,094,985 | $2,796,057 | | Commercial, financial and agricultural | $1,875,993 | $1,627,477 | | Real estate - construction and development | $1,452,339 | $1,606,710 | | Other | $2,616,925 | $3,229,975 | | **Total Loans** | **$15,874,258** | **$14,480,925** | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, and it is asset-sensitive, expecting higher net interest income in a rising rate environment - The company is **asset sensitive** in the one-year and two-year time horizons, which would result in net interest income increasing in a rising rate environment[349](index=349&type=chunk) Earnings Simulation Model Results (% Change in Projected Net Interest Income) | Change in Rates (bps) | 12 Months | 24 Months | | :--- | :--- | :--- | | +400 | +26.0% | +41.1% | | +200 | +13.1% | +21.0% | | +100 | +6.4% | +10.5% | | -100 | (5.7)% | (10.1)% | [Item 8. Financial Statements and Supplementary Data](index=59&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and accompanying notes for the fiscal year ended December 31, 2021 - The financial statements for the year ended December 31, 2021 were audited by **KPMG LLP**, which issued an unqualified opinion[411](index=411&type=chunk) - The financial statements for the two years ended December 31, 2020 were audited by **Crowe LLP**, which issued an unqualified opinion[429](index=429&type=chunk)[430](index=430&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=59&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[355](index=355&type=chunk) [Item 9A. Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021 - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of the end of the period covered by the report[356](index=356&type=chunk) - There were **no material changes** in internal control over financial reporting during the fourth quarter of 2021[357](index=357&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=60&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the Proxy Statement for the **2022 Annual Meeting of Shareholders**[360](index=360&type=chunk) [Item 11. Executive Compensation](index=60&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the Proxy Statement for the **2022 Annual Meeting of Shareholders**[362](index=362&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=60&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the Proxy Statement for the **2022 Annual Meeting of Shareholders**[363](index=363&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Securities to be issued upon exercise (a) | Weighted-average exercise price (b) | Securities available for future issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 238,405 | $28.79 | 2,824,364 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=61&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the Proxy Statement for the **2022 Annual Meeting of Shareholders**[366](index=366&type=chunk) [Item 14. Principal Accounting Fees and Services](index=61&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2022 Proxy Statement - Required information is incorporated by reference from the Proxy Statement for the **2022 Annual Meeting of Shareholders**[367](index=367&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=61&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Annual Report - This section lists all financial statements and exhibits filed with the report, including parent company only financial information located in **Note 23**[368](index=368&type=chunk) [Item 16. Form 10-K Summary](index=61&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[369](index=369&type=chunk)

Financial Data and Key Metrics Changes - For 2021, the company reported a record net income of $368.7 million or $5.29 per diluted share, a 22% increase over 2020 [6][19] - The fourth quarter net income was $81.5 million or $1.17 per diluted share, with a return on average assets (ROA) of 1.40% and a return on tangible equity (ROTCE) of 16.88% [7][17] - The tangible book value increased by over 10% in 2021, ending at $26.26 [20] Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was over $383 million, representing over 10% annualized growth, with full-year loan growth at $1.4 billion or 10.5% excluding PPP runoff [7][40] - Noninterest income increased by $5.2 million for the quarter, with a significant recovery in servicing rights [31] - Retail mortgage originations as a percentage of pre-provision pre-tax income declined to 13%, down from 50% last year [32] Market Data and Key Metrics Changes - Total deposits approached $20 billion, with noninterest-bearing deposits accounting for over 39% of total deposits [8][41] - The company experienced a deposit growth of $832 million in the fourth quarter, with significant contributions from both noninterest-bearing and interest-bearing deposits [41] Company Strategy and Development Direction - The acquisition of Balboa Capital Corporation is expected to enhance the company's technology and revenue generation, targeting $70 million in revenue from Balboa [13][67] - The company aims to maintain a sub 55% efficiency ratio while focusing on organic growth and leveraging technology across its operations [36][66] - The company is positioned for loan growth in the upper single digits for 2022, with a strong loan pipeline and asset-sensitive balance sheet [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in 2022, citing strong fundamentals and a robust loan pipeline [15][42] - The company anticipates net interest income (NII) to increase by 6% to 7% in a rising rate environment, with every 25 basis points of rate movement expected to increase NII by about $9.5 million to $10 million [28][74] - Management acknowledged competitive pressures on pricing but indicated a disciplined approach to maintaining margins [59][60] Other Important Information - The company repurchased 1.3 million shares during the fourth quarter, with approximately $78 million remaining on the share repurchase program [10] - The allowance for loan losses was $167.6 million at year-end, reflecting net recoveries for the second consecutive quarter [30] Q&A Session Summary Question: Outlook for mortgage volume and gain on sale - Management remains encouraged by the mortgage contribution, expecting normalization in seasonality and strong performance in subsequent quarters [45] Question: Plans for growing the bond book - The company has about $3 billion in excess liquidity and aims to increase its bond portfolio to around 7.5% of total assets [46] Question: Impact of NSF fees and overdraft - NSF fees accounted for about $16 million in 2021, with a budgeted decline of 25% anticipated [48] Question: Increase in problem loans - The increase was attributed to purchased credit deteriorated loans from Balboa and loans under CARES Act provisions [50] Question: Acquisition interest going forward - The company remains focused on integrating Balboa but is open to future acquisition opportunities [51] Question: Revenue expectations from Balboa - The anticipated revenue from Balboa includes both net interest income and fee income, with expectations of significant contributions [54]

PART I – FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Presents Ameris Bancorp's unaudited consolidated financial statements, covering Balance Sheets, Income, Equity, and Cash Flows [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$22.53 billion** from **$20.44 billion**, driven by cash, with liabilities and equity also growing Consolidated Balance Sheets (Unaudited) | (dollars in thousands) | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$22,533,141** | **$20,438,638** | | Cash and cash equivalents | $3,752,440 | $2,117,306 | | Loans, net | $14,653,326 | $14,281,503 | | Goodwill | $928,005 | $928,005 | | **Total Liabilities** | **$19,632,371** | **$17,791,550** | | Total deposits | $18,833,489 | $16,957,823 | | **Total Shareholders' Equity** | **$2,900,770** | **$2,647,088** | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q3 2021 net income decreased to **$81.7 million** due to lower mortgage banking income; nine-month net income rose to **$295.0 million** from credit loss reversal Key Income Statement Data (Unaudited) | (dollars in thousands, except per share data) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $161,661 | $162,538 | $488,490 | $474,297 | | Provision for credit losses | $(9,675) | $17,682 | $(38,124) | $146,890 | | Noninterest income | $76,562 | $159,018 | $283,775 | $334,357 | | Noninterest expense | $137,196 | $153,692 | $421,755 | $447,513 | | **Net income** | **$81,680** | **$116,145** | **$294,969** | **$167,703** | | **Diluted earnings per common share** | **$1.17** | **$1.67** | **$4.23** | **$2.42** | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased from **$2.65 billion** to **$2.90 billion**, driven by net income, offset by dividends and share repurchases Changes in Shareholders' Equity (Nine Months Ended Sep 30, 2021) | (dollars in thousands) | Amount | | :--- | :--- | | **Balance, December 31, 2020** | **$2,647,088** | | Net income | $294,969 | | Dividends on common shares ($0.45 per share) | $(31,500) | | Purchase of treasury shares | $(8,108) | | Other comprehensive loss | $(11,620) | | Share-based compensation & option exercises | $9,448 | | **Balance, September 30, 2021** | **$2,900,770** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$1.64 billion**, driven by financing activities, offsetting operating cash outflow Cash Flow Summary (Nine Months Ended Sep 30) | (dollars in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(257,553) | $379,362 | | Net cash provided by (used in) investing activities | $59,233 | $(1,710,005) | | Net cash provided by financing activities | $1,833,454 | $1,460,585 | | **Net increase in cash and cash equivalents** | **$1,635,134** | **$129,942** | | Cash and cash equivalents at beginning of period | $2,117,306 | $621,849 | | **Cash and cash equivalents at end of period** | **$3,752,440** | **$751,791** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering presentation, investments, loans, fair value, segments, and contingencies - Ameris Bancorp is a financial holding company headquartered in Atlanta, Georgia, operating through its subsidiary, Ameris Bank. As of September 30, 2021, the Bank operated 165 branches across Georgia, Alabama, Florida, North Carolina, and South Carolina[24](index=24&type=chunk) - The financial statements are prepared in accordance with U.S. GAAP for interim financial information and reflect all normal recurring adjustments necessary for a fair presentation[25](index=25&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial condition and results for Q3 and nine months 2021 vs 2020, covering earnings, net interest income, credit quality, noninterest income/expense, and balance sheet [Results of Operations (Q3 2021 vs. Q3 2020)](index=46&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202021%20and%202020) Q3 2021 net income decreased to **$81.7 million** due to lower mortgage banking income, offset by reduced noninterest expense and credit loss reversal Q3 2021 vs Q3 2020 Performance | (in thousands, except per share data) | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net Income | $81,680 | $116,145 | | Diluted EPS | $1.17 | $1.67 | | Adjusted Net Income | $83,861 | $116,879 | | Adjusted Diluted EPS | $1.20 | $1.69 | - Net interest margin decreased to **3.22%** in Q3 2021 from **3.64%** in Q3 2020, attributed to a shift in asset mix to lower-yielding cash, despite disciplined deposit repricing[170](index=170&type=chunk) - Noninterest income fell by **51.9%** to **$76.6 million**, mainly due to an **$82.2 million** (**59.3%**) decrease in mortgage banking activity income[176](index=176&type=chunk) - Noninterest expense decreased by **10.7%** to **$137.2 million**, primarily from a **$17.0 million** reduction in salaries and benefits tied to lower mortgage production[178](index=178&type=chunk) [Results of Operations (Nine Months 2021 vs. 2020)](index=53&type=section&id=Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202021%20and%202020) Nine-month net income rose to **$295.0 million** from **$167.7 million**, driven by a **$38.1 million** credit loss reversal Nine Months 2021 vs 2020 Performance | (in thousands, except per share data) | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | | Net Income | $294,969 | $167,703 | | Diluted EPS | $4.23 | $2.42 | | Adjusted Net Income | $287,155 | $198,507 | | Adjusted Diluted EPS | $4.12 | $2.86 | - The provision for credit losses was a reversal of **$38.1 million** for the first nine months of 2021, compared to a provision of **$146.9 million** in the same period of 2020, driven by an improved economic forecast[197](index=197&type=chunk) - Noninterest income decreased by **15.1%** to **$283.8 million**, as a **$53.7 million** decline in mortgage banking income was partially offset by a recovery of mortgage servicing right impairment[198](index=198&type=chunk) [Financial Condition](index=59&type=section&id=Financial%20Condition%20as%20of%20September%2030%2C%202021) Total assets reached **$22.5 billion**, with gross loans at **$16.26 billion**; credit loss allowance decreased to **1.15%**, non-performing assets improved to **0.32%**, maintaining strong capital - Gross loans (including held for sale) grew by **$611.8 million** to **$16.26 billion** at September 30, 2021, from December 31, 2020[213](index=213&type=chunk) - Non-performing assets as a percentage of total assets decreased to **0.32%** at September 30, 2021, from **0.48%** at December 31, 2020, due to lower nonaccrual loans and OREO balances[229](index=229&type=chunk) - COVID-19 related loan deferrals decreased significantly to **$76.5 million** (**0.5%** of total loans) as of September 30, 2021, down from **$332.8 million** (**2.3%** of total loans) at December 31, 2020[241](index=241&type=chunk)[242](index=242&type=chunk) Regulatory Capital Ratios | Ratio | Consolidated (Sep 30, 2021) | Ameris Bank (Sep 30, 2021) | | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 9.32% | 10.80% | | CET1 Ratio | 11.74% | 13.59% | | Tier 1 Capital Ratio | 11.74% | 13.59% | | Total Capital Ratio | 15.31% | 14.60% | [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's primary market risk is U.S. dollar interest rate risk, managed via simulation analysis with a **20%** net interest income change limit for a **200 basis point** rate shock - The Company's primary market risk exposure is U.S. dollar interest rate risk. It does not have trading instruments or exposure to foreign currency, commodity, or other market risks[263](index=263&type=chunk)[264](index=264&type=chunk) - The Company uses simulation modeling to measure interest rate risk, with an acceptable risk level defined as net interest income changing no more than **20%** given a **200 basis point** interest rate change over a **24-month** period[259](index=259&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures.) The CEO and CFO concluded disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control - The CEO and CFO evaluated the Company's disclosure controls and procedures and concluded they were effective as of the end of the period covered by this report[266](index=266&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended September 30, 2021, that have materially affected, or are reasonably likely to materially affect, the Company's internal controls[266](index=266&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings.) The company is subject to various legal proceedings in the ordinary course of business, not expected to materially affect financial condition or results - The Company is subject to various legal proceedings and regulatory matters in the ordinary course of business, but management does not expect them to have a material adverse effect on the Company's financial condition or results[126](index=126&type=chunk)[268](index=268&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020[269](index=269&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q3 2021, the company repurchased **139,829** shares at **$47.58** per share, with **$79.2 million** remaining for repurchase under the program extended through **October 31, 2022** Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2021 | 85,091 | $47.20 | | August 2021 | 53,093 | $48.17 | | September 2021 | 1,645 | $47.83 | | **Total** | **139,829** | **$47.58** | - The share repurchase program, authorizing up to **$100.0 million** in repurchases, has been extended through **October 31, 2022**. As of September 30, 2021, **$20.8 million** worth of shares had been repurchased under the program[252](index=252&type=chunk)[271](index=271&type=chunk) [Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) None reported - None[272](index=272&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Not applicable - Not applicable[272](index=272&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information.) None reported - None[272](index=272&type=chunk) [Exhibits](index=59&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the report, including CEO and CFO certifications and XBRL data files - The report includes exhibits such as CEO and CFO certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, as well as Inline XBRL documents[273](index=273&type=chunk)

Ameris Bancorp (NYSE:ABCB) Q3 2021 Earnings Conference Call October 29, 2021 9:00 AM ET Company Participants Nicole Stokes - Executive Vice President and Chief Financial Officer Palmer Proctor - Chief Executive Officer Jon Edwards - Executive Vice President and Chief Credit Officer Conference Call Participants Brady Gailey - KBW Casey Whitman - Piper Sandler Kevin Fitzsimmons - D.A. Davidson David Feaster - Raymond James Christopher Marinac - Janney Montgomery Scott Brody Preston - Stephens Inc. Operator Go ...

Ameris Bancorp (NYSE:ABCB) Q2 2021 Earnings Conference Call July 23, 2021 9:00 AM ET Company Participants Nicole Stokes - CFO Palmer Proctor - CEO Jon Edwards - Chief Credit Officer Conference Call Participants Brady Gailey - KBW Casey Whitman - Piper Sandler Jennifer Demba - Truist Securities Brody Preston - Stephens Inc. Christopher Marinac - Janney Montgomery Scott Operator Good day, and welcome to the Ameris Bank Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [O ...