[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements.](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited consolidated financial statements and detailed notes for Ameris Bancorp [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (June 30, 2022 vs. December 31, 2021) | Metric (in thousands) | June 30, 2022 | December 31, 2021 | Change (%) | |:----------------------|:--------------|:------------------|:-----------| | Total assets | $23,687,470 | $23,858,321 | -0.72% | | Cash and cash equivalents | $2,306,836 | $4,064,657 | -43.27% | | Loans, net | $17,388,380 | $15,706,676 | +10.71% | | Total deposits | $19,684,982 | $19,665,553 | +0.10% | | Total liabilities | $20,614,094 | $20,891,870 | -1.33% | | Total shareholders' equity | $3,073,376 | $2,966,451 | +3.60% | [Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Consolidated Statements of Income Highlights (Three Months Ended June 30) | Metric (in thousands) | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total interest income | $202,568 | $173,751 | +16.58% | | Total interest expense| $11,204 | $11,899 | -5.84% | | Net interest income | $191,364 | $161,852 | +18.23% | | Provision for credit losses | $14,924 | $142 | +10410% | | Total noninterest income | $83,841 | $89,240 | -6.05% | | Total noninterest expense | $142,196 | $135,761 | +4.74% | | Net income | $90,066 | $88,327 | +1.97% | | Basic EPS | $1.30 | $1.27 | +2.36% | | Diluted EPS | $1.30 | $1.27 | +2.36% | Consolidated Statements of Income Highlights (Six Months Ended June 30) | Metric (in thousands) | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total interest income | $385,942 | $351,701 | +9.74% | | Total interest expense| $22,034 | $24,872 | -11.41% | | Net interest income | $363,908 | $326,829 | +11.33% | | Provision for credit losses | $21,155 | $(28,449) | N/A | | Total noninterest income | $170,752 | $207,213 | -17.69% | | Total noninterest expense | $286,016 | $284,559 | +0.51% | | Net income | $171,764 | $213,289 | -19.47% | | Basic EPS | $2.48 | $3.07 | -19.19% | | Diluted EPS | $2.47 | $3.06 | -19.28% | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' Equity Changes (Three Months Ended June 30, 2022) | Item (in thousands) | Amount | |:--------------------|:------------| | Balance, March 31, 2022 | $3,007,159 | | Net income | $90,066 | | Dividends on common shares | $(10,432) | | Other comprehensive loss | $(10,794) | | Balance, June 30, 2022 | $3,073,376 | Shareholders' Equity Changes (Six Months Ended June 30, 2022) | Item (in thousands) | Amount | |:--------------------|:------------| | Balance, December 31, 2021 | $2,966,451 | | Net income | $171,764 | | Dividends on common shares | $(20,841) | | Other comprehensive loss | $(28,225) | | Balance, June 30, 2022 | $3,073,376 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (Six Months Ended June 30) | Activity (in thousands) | 2022 | 2021 | |:------------------------|:--------------|:--------------| | Net cash provided by (used in) operating activities | $713,868 | $(92,227) | | Net cash provided by (used in) investing activities | $(2,130,922) | $3,575 | | Net cash provided by (used in) financing activities | $(340,767) | $1,275,870 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(1,757,821) | $1,187,218 | | Cash, cash equivalents and restricted cash at end of period | $2,306,836 | $3,304,524 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES](index=11&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION%20AND%20ACCOUNTING%20POLICIES) - Ameris Bancorp operates as a financial holding company through its wholly-owned subsidiary, Ameris Bank, with **164 branches** across Georgia, Alabama, Florida, North Carolina, and South Carolina as of June 30, 2022[14](index=14&type=chunk) - The unaudited interim financial statements are prepared in accordance with GAAP and Regulation S-X, reflecting normal recurring adjustments and should be read in conjunction with the **2021 Annual Report on Form 10-K**[15](index=15&type=chunk) - The Company is evaluating the impact of new accounting standards ASU 2022-02 (Troubled Debt Restructurings and Vintage Disclosures) and ASU 2021-01/ASU 2020-04 (Reference Rate Reform) on its consolidated financial statements[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [NOTE 2 – INVESTMENT SECURITIES](index=12&type=section&id=NOTE%202%20%E2%80%93%20INVESTMENT%20SECURITIES) Debt Securities Available-for-Sale (June 30, 2022 vs. December 31, 2021) | Metric (in thousands) | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Amortized Cost | $1,068,350 | $572,887 | | Estimated Fair Value | $1,052,268 | $592,621 | | Gross Unrealized Gains| $689 | $19,929 | | Gross Unrealized Losses| $(16,683) | $(195) | Debt Securities Held-to-Maturity (June 30, 2022 vs. December 31, 2021) | Metric (in thousands) | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Amortized Cost | $111,654 | $79,850 | | Estimated Fair Value | $97,144 | $78,206 | | Gross Unrealized Gains| $— | $4 | | Gross Unrealized Losses| $(14,510) | $(1,648) | - As of June 30, 2022, **331 out of 433 available-for-sale securities** were in an unrealized loss position, totaling **$16.7 million**, with **$88,000 attributed to credit impairment**, and the Company does not intend to sell these securities prior to recovery or maturity[28](index=28&type=chunk)[32](index=32&type=chunk) [NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=16&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) Loan Portfolio Balances (June 30, 2022 vs. December 31, 2021) | Loan Category (in thousands) | June 30, 2022 | December 31, 2021 | |:-----------------------------|:--------------|:------------------| | Commercial, financial and agricultural | $2,022,845 | $1,875,993 | | Consumer installment | $167,237 | $191,298 | | Indirect automobile | $172,245 | $265,779 | | Mortgage warehouse | $949,191 | $787,837 | | Municipal | $529,268 | $572,701 | | Premium finance | $942,357 | $798,409 | | Real estate – construction and development | $1,747,284 | $1,452,339 | | Real estate – commercial and farmland | $7,156,017 | $6,834,917 | | Real estate – residential | $3,874,578 | $3,094,985 | | **Total Loans** | **$17,561,022** | **$15,874,258** | Nonaccrual Loans (June 30, 2022 vs. December 31, 2021) | Loan Category (in thousands) | June 30, 2022 | December 31, 2021 | |:-----------------------------|:--------------|:------------------| | Commercial, financial and agricultural | $11,742 | $14,214 | | Real estate – commercial and farmland | $21,158 | $15,365 | | Real estate – residential | $88,896 | $53,772 | | **Total Nonaccrual Loans** | **$122,912** | **$85,266** | Allowance for Credit Losses (ACL) Activity (Six Months Ended June 30) | Metric (in thousands) | 2022 | 2021 | |:----------------------|:------------|:------------| | Balance, beginning of period | $167,582 | $199,422 | | Provision for loan losses | $10,493 | $(17,478) | | Total charge-offs | $15,432 | $14,712 | | Total recoveries | $9,999 | $7,838 | | Balance, end of period| $172,642 | $175,070 | - The ACL increased to **$172.6 million (0.98% of total loans)** at June 30, 2022, from **$167.6 million (1.06% of total loans)** at December 31, 2021, primarily due to organic loan growth, partially offset by improved macroeconomic forecasts[74](index=74&type=chunk)[79](index=79&type=chunk) - Troubled Debt Restructurings (TDRs) decreased to **$41.8 million** at June 30, 2022, from **$76.6 million** at December 31, 2021, with an allocated allowance for credit losses of **$2.5 million**[64](index=64&type=chunk) [NOTE 4 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE](index=28&type=section&id=NOTE%204%20%E2%80%93%20SECURITIES%20SOLD%20UNDER%20AGREEMENTS%20TO%20REPURCHASE) Securities Sold Under Agreements to Repurchase (in thousands) | Date | Amount | |:--------------|:------------| | June 30, 2022 | $953 | | December 31, 2021 | $5,845 | - All securities sold under repurchase agreements mature daily and are collateralized by state, county, municipal, and mortgage-backed securities[83](index=83&type=chunk)[85](index=85&type=chunk) [NOTE 5 – OTHER BORROWINGS](index=29&type=section&id=NOTE%205%20%E2%80%93%20OTHER%20BORROWINGS) Other Borrowings (in thousands) | Category | June 30, 2022 | December 31, 2021 | |:--------------------------|:--------------|:------------------| | FHLB borrowings | $48,707 | $48,790 | | Subordinated notes payable| $376,885 | $427,158 | | Securitization Facilities | $— | $263,931 | | **Total Other Borrowings**| **$425,592** | **$739,879** | - FHLB borrowings are collateralized by eligible first mortgage loans and FHLB stock, with **$4.19 billion available** for borrowing at June 30, 2022[86](index=86&type=chunk) - The Bank has credit arrangements for federal funds up to **$127.0 million** and **$2.21 billion available** for borrowing at the Federal Reserve discount window[87](index=87&type=chunk) [NOTE 6 – ACCUMULATED OTHER COMPREHENSIVE INCOME](index=29&type=section&id=NOTE%206%20%E2%80%93%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) Accumulated Other Comprehensive Income (Loss) (in thousands) | Period | Balance, Beginning | Current Year Changes (Net of Tax) | Balance, End | |:----------------------------|:-------------------|:----------------------------------|:-------------| | Three Months Ended June 30, 2022 | $(1,841) | $(10,794) | $(12,635) | | Six Months Ended June 30, 2022 | $15,590 | $(28,225) | $(12,635) | - Accumulated other comprehensive income primarily consists of changes in net unrealized gains and losses on available-for-sale investment securities[88](index=88&type=chunk) [NOTE 7 – WEIGHTED AVERAGE SHARES OUTSTANDING](index=30&type=section&id=NOTE%207%20%E2%80%93%20WEIGHTED%20AVERAGE%20SHARES%20OUTSTANDING) Weighted Average Common Shares Outstanding (in thousands) | Period | Basic (2022) | Diluted (2022) | Basic (2021) | Diluted (2021) | |:----------------------------|:-------------|:---------------|:-------------|:---------------| | Three Months Ended June 30, | 69,136 | 69,316 | 69,497 | 69,792 | | Six Months Ended June 30, | 69,246 | 69,485 | 69,448 | 69,765 | - For the three months ended June 30, 2022, **33,536 anti-dilutive performance stock units** were excluded from EPS computation[90](index=90&type=chunk) [NOTE 8 – FAIR VALUE MEASURES](index=30&type=section&id=NOTE%208%20%E2%80%93%20FAIR%20VALUE%20MEASURES) Loans Held for Sale at Fair Value (in thousands) | Loan Type | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Mortgage loans held for sale | $555,039 | $1,247,997 | | SBA loans held for sale | $626 | $6,635 | | **Total** | **$555,665** | **$1,254,632** | Fair Value Measurements of Recurring Assets (June 30, 2022) | Asset (in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |:---------------------|:------------|:------------|:------------|:----------| | Investment securities available-for-sale | $1,052,268 | $312,889 | $737,999 | $1,320 | | Loans held for sale | $555,665 | $— | $555,665 | $— | | Mortgage banking derivative instruments | $10,079 | $— | $10,079 | $— | | **Total** | **$1,618,012**| **$312,889**| **$1,303,803**| **$1,320** | Fair Value Measurements of Non-Recurring Assets (June 30, 2022) | Asset (in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |:---------------------|:------------|:--------|:--------|:----------| | Collateral-dependent loans | $36,033 | $— | $— | $36,033 | | Other real estate owned | $702 | $— | $— | $702 | | Mortgage servicing rights | $257,112 | $— | $— | $257,112 | | **Total** | **$293,847**| **$—** | **$—** | **$293,847** | - The Company records mortgage loans held for sale at fair value to align reported results with underlying economic changes and related hedge instruments, with mark-to-market adjustments captured in mortgage banking activities[93](index=93&type=chunk)[94](index=94&type=chunk) [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=35&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Loan Commitments (in thousands) | Commitment Type | June 30, 2022 | December 31, 2021 | |:------------------------------|:--------------|:------------------| | Commitments to extend credit | $5,420,227 | $4,328,749 | | Unused home equity lines of credit | $303,428 | $272,029 | | Financial standby letters of credit | $30,272 | $36,184 | | Mortgage interest rate lock commitments | $320,320 | $417,126 | Allowance for Unfunded Commitments (in thousands) | Period | Balance, Beginning | Provision for Unfunded Commitments | Balance, End | |:----------------------------|:-------------------|:-----------------------------------|:-------------| | Three Months Ended June 30, 2022 | $42,194 | $1,779 | $43,973 | | Six Months Ended June 30, 2022 | $33,185 | $10,788 | $43,973 | - The Company is subject to various legal proceedings and regulatory examinations in the ordinary course of business, but management does not believe current liabilities will have a **material adverse effect** on financial condition[111](index=111&type=chunk)[112](index=112&type=chunk) - The **COVID-19 pandemic** continues to pose risks, particularly to industries like hotels, restaurants, and retail, potentially impacting loan delinquencies and collateral values[113](index=113&type=chunk)[114](index=114&type=chunk) [NOTE 10 – SEGMENT REPORTING](index=38&type=section&id=NOTE%2010%20%E2%80%93%20SEGMENT%20REPORTING) Net Income by Segment (Three Months Ended June 30, 2022, in thousands) | Segment | Net Income | |:--------------------------|:-----------| | Banking Division | $56,409 | | Retail Mortgage Division | $21,736 | | Warehouse Lending Division| $5,059 | | SBA Division | $3,067 | | Premium Finance Division | $3,795 | | **Total** | **$90,066**| Net Income by Segment (Six Months Ended June 30, 2022, in thousands) | Segment | Net Income | |:--------------------------|:-----------| | Banking Division | $97,752 | | Retail Mortgage Division | $47,376 | | Warehouse Lending Division| $11,001 | | SBA Division | $8,492 | | Premium Finance Division | $7,143 | | **Total** | **$171,764**| - Ameris Bancorp operates **five reportable segments**: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division[115](index=115&type=chunk)[116](index=116&type=chunk) [NOTE 11 – LOAN SERVICING RIGHTS](index=40&type=section&id=NOTE%2011%20%E2%80%93%20LOAN%20SERVICING%20RIGHTS) Loan Servicing Rights Carrying Value (in thousands) | Loan Type | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Residential mortgage | $257,112 | $206,944 | | SBA | $4,954 | $5,556 | | **Total** | **$262,066** | **$212,500** | Residential Mortgage Servicing Rights Activity (Six Months Ended June 30) | Metric (in thousands) | 2022 | 2021 | |:----------------------|:------------|:------------| | Beginning carrying value, net | $206,944 | $130,630 | | Additions | $43,252 | $65,244 | | Amortization | $(13,576) | $(14,681) | | Recoveries | $20,492 | $10,482 | | Ending carrying value, net | $257,112 | $191,675 | - Residential mortgage servicing fee income increased to **$35.8 million** for the six months ended June 30, 2022, from **$21.5 million** in the prior year, reflecting growth in the serviced portfolio[126](index=126&type=chunk) - SBA loan servicing fee income was **$1.9 million** for the six months ended June 30, 2022, slightly down from **$2.0 million** in the prior year[130](index=130&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial performance, condition, and key operational factors [Cautionary Note Regarding Forward-Looking Statements](index=44&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements subject to various risks and uncertainties, including economic conditions, interest rate movements, and the impact of the **COVID-19 pandemic**[136](index=136&type=chunk)[137](index=137&type=chunk) - The Company does not undertake to update or revise any forward-looking statements after the report date[138](index=138&type=chunk) [Overview](index=44&type=section&id=Overview) - This discussion analyzes the Company's financial condition and results of operations for the periods ended June 30, 2022, and December 31, 2021[139](index=139&type=chunk) - The discussion includes **non-GAAP measures** like adjusted net income, which management uses to evaluate performance and efficiency[140](index=140&type=chunk) [Critical Accounting Policies](index=45&type=section&id=Critical%20Accounting%20Policies) - There have been **no significant changes** to the Company's critical accounting policies from those disclosed in its 2021 Annual Report on Form 10-K[141](index=141&type=chunk) [Results of Operations for the Three Months Ended June 30, 2022 and 2021](index=45&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202022%20and%202021) [Consolidated Earnings and Profitability](index=45&type=section&id=Consolidated%20Earnings%20and%20Profitability) Consolidated Earnings and Profitability (Three Months Ended June 30) | Metric (in thousands, except per share) | 2022 | 2021 | Change (%) | |:----------------------------------------|:------------|:------------|:-----------| | Net income available to common shareholders | $90,066 | $88,327 | +1.97% | | Diluted EPS | $1.30 | $1.27 | +2.36% | | Return on average assets | 1.54% | 1.64% | -0.10 pp | | Return on average shareholders' equity | 11.87% | 12.66% | -0.79 pp | | Adjusted net income | $81,473 | $87,548 | -6.94% | | Adjusted diluted EPS | $1.18 | $1.25 | -5.60% | - Net income increased slightly, but **adjusted net income decreased**, indicating a decline in core profitability[142](index=142&type=chunk)[143](index=143&type=chunk) [Net Interest Income and Margins](index=47&type=section&id=Net%20Interest%20Income%20and%20Margins) Net Interest Income and Margin (Three Months Ended June 30) | Metric (tax-equivalent, in thousands) | 2022 | 2021 | Change (%) | |:--------------------------------------|:------------|:------------|:-----------| | Net interest income | $192,334 | $163,013 | +18.0% | | Net interest margin | 3.66% | 3.34% | +32 bps | | Average interest earning assets | $21,055,701 | $19,592,686 | +7.5% | | Yields on earning assets | 3.88% | 3.58% | +30 bps | | Yield on total interest-bearing liabilities | 0.37% | 0.41% | -4 bps | | Total funding costs | 0.22% | 0.26% | -4 bps | | Deposit costs | 0.10% | 0.13% | -3 bps | - Higher net interest income and margin were driven by **growth in investment securities and loans**, coupled with disciplined deposit repricing[149](index=149&type=chunk) - Loan production in lines of business amounted to **$5.3 billion** with weighted average yields of **4.29%** in Q2 2022, down from **$6.4 billion** and **3.36%** in Q2 2021[149](index=149&type=chunk) [Provision for Credit Losses](index=49&type=section&id=Provision%20for%20Credit%20Losses) Provision for Credit Losses (Three Months Ended June 30, in thousands) | Item | 2022 | 2021 | |:----------------------|:------------|:------------| | Provision for credit losses | $14,924 | $142 | | - Loans | $13,227 | $(899) | | - Unfunded commitments| $1,779 | $1,300 | | - Other credit losses | $(82) | $(258) | - The significant increase in provision for credit losses was primarily due to **organic loan growth**[153](index=153&type=chunk) - Non-performing assets as a percentage of total assets increased from **0.43%** at December 31, 2021, to **0.56%** at June 30, 2022, mainly due to an increase in nonaccruing loans[153](index=153&type=chunk) [Noninterest Income](index=49&type=section&id=Noninterest%20Income) Noninterest Income (Three Months Ended June 30, in thousands) | Item | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total noninterest income | $83,841 | $89,240 | -6.05% | | Mortgage banking activity | $58,761 | $70,231 | -16.33% | | Service charges on deposit accounts | $11,148 | $11,007 | +1.28% | | Other noninterest income | $12,686 | $6,945 | +82.67% | - The decrease in total noninterest income was primarily driven by a **$11.5 million (16.3%) decline in mortgage banking activity**[154](index=154&type=chunk) - Other noninterest income significantly increased by **$5.7 million (82.7%)**, mainly due to fee income from Balboa Capital and higher BOLI income[155](index=155&type=chunk) [Noninterest Expense](index=49&type=section&id=Noninterest%20Expense) Noninterest Expense (Three Months Ended June 30, in thousands) | Item | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total noninterest expense | $142,196 | $135,761 | +4.74% | | Salaries and employee benefits | $81,545 | $85,505 | -4.64% | | Occupancy and equipment | $12,746 | $10,812 | +17.89% | | Amortization of intangible assets | $5,144 | $4,065 | +26.54% | | Loan servicing expense| $9,920 | $4,914 | +101.88% | - Salaries and employee benefits decreased due to **lower variable compensation in mortgage production**, partially offset by expenses related to the Balboa Capital acquisition[156](index=156&type=chunk) - **Loan servicing expenses more than doubled**, primarily due to additional mortgage loans serviced from strong production in the previous year[157](index=157&type=chunk) [Income Taxes](index=51&type=section&id=Income%20Taxes) Income Tax Expense and Effective Tax Rate (Three Months Ended June 30) | Metric | 2022 | 2021 | |:----------------------|:------------|:------------| | Income tax expense | $28,019 | $26,862 | | Effective tax rate | 23.7% | 23.3% | - The increase in the effective tax rate was primarily due to **increased state taxes** resulting from shifts in apportionment related to the Balboa Capital acquisition[158](index=158&type=chunk) [Results of Operations for the Six Months Ended June 30, 2022 and 2021](index=52&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202022%20and%202021) [Consolidated Earnings and Profitability](index=52&type=section&id=Consolidated%20Earnings%20and%20Profitability) Consolidated Earnings and Profitability (Six Months Ended June 30) | Metric (in thousands, except per share) | 2022 | 2021 | Change (%) | |:----------------------------------------|:------------|:------------|:-----------| | Net income available to common shareholders | $171,764 | $213,289 | -19.47% | | Diluted EPS | $2.47 | $3.06 | -19.28% | | Return on average assets | 1.48% | 2.03% | -0.55 pp | | Return on average shareholders' equity | 11.47% | 15.66% | -4.19 pp | | Adjusted net income | $156,512 | $203,294 | -23.01% | | Adjusted diluted EPS | $2.25 | $2.91 | -22.68% | - Net income and adjusted net income **significantly decreased** for the six months ended June 30, 2022, compared to the prior year, indicating a decline in overall profitability[160](index=160&type=chunk)[161](index=161&type=chunk) [Net Interest Income and Margins](index=54&type=section&id=Net%20Interest%20Income%20and%20Margins) Net Interest Income and Margin (Six Months Ended June 30) | Metric (tax-equivalent, in thousands) | 2022 | 2021 | Change (%) | |:--------------------------------------|:------------|:------------|:-----------| | Net interest income | $365,891 | $329,170 | +11.15% | | Net interest margin | 3.51% | 3.45% | +6 bps | | Average interest earning assets | $21,044,269 | $19,229,371 | +9.44% | | Yields on earning assets | 3.72% | 3.71% | +1 bp | | Yield on total interest-bearing liabilities | 0.37% | 0.44% | -7 bps | | Total funding costs | 0.22% | 0.28% | -6 bps | | Deposit costs | 0.09% | 0.14% | -5 bps | - Net interest income increased due to **growth in average earning assets** and disciplined deposit pricing, while net interest margin saw a slight improvement[167](index=167&type=chunk) - Loan production in lines of business decreased to **$10.0 billion** with weighted average yields of **3.98%** in H1 2022, from **$13.9 billion** and **3.25%** in H1 2021[167](index=167&type=chunk) [Provision for Credit Losses](index=56&type=section&id=Provision%20for%20Credit%20Losses) Provision for Credit Losses (Six Months Ended June 30, in thousands) | Item | 2022 | 2021 | |:----------------------|:------------|:------------| | Provision for credit losses | $21,155 | $(28,449) | | - Loans | $10,493 | $(17,478) | | - Unfunded commitments| $10,788 | $(10,540) | | - Other credit losses | $(126) | $(431) | - The provision for credit losses **significantly increased** from a release in the prior year, primarily due to organic loan growth in 2022 and a release of reserves in 2021[172](index=172&type=chunk) - Non-performing assets as a percentage of total assets increased to **0.56%** at June 30, 2022, from **0.43%** at December 31, 2021[172](index=172&type=chunk) [Noninterest Income](index=56&type=section&id=Noninterest%20Income) Noninterest Income (Six Months Ended June 30, in thousands) | Item | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total noninterest income | $170,752 | $207,213 | -17.69% | | Mortgage banking activity | $121,699 | $168,717 | -27.90% | | Other noninterest income | $24,689 | $14,599 | +69.11% | - Total noninterest income decreased significantly, primarily due to a **$47.0 million (27.9%) decline in mortgage banking activities**[173](index=173&type=chunk) - Other noninterest income increased by **$10.1 million (69.1%)**, mainly from fee income from Balboa Capital, higher BOLI income, and increased trust income[174](index=174&type=chunk) [Noninterest Expense](index=57&type=section&id=Noninterest%20Expense) Noninterest Expense (Six Months Ended June 30, in thousands) | Item | 2022 | 2021 | Change (%) | |:----------------------|:------------|:------------|:-----------| | Total noninterest expense | $286,016 | $284,559 | +0.51% | | Salaries and employee benefits | $165,826 | $181,490 | -8.52% | | Occupancy and equipment | $25,473 | $22,593 | +12.75% | | Amortization of intangible assets | $10,325 | $8,191 | +26.05% | | Loan servicing expenses | $18,839 | $10,814 | +74.21% | | Merger and conversion charges | $977 | $— | N/A | - Salaries and employee benefits decreased due to **lower variable compensation in mortgage production**, partially offset by increased expenses from the Balboa Capital acquisition[175](index=175&type=chunk) - Loan servicing expenses increased significantly by **$8.0 million (74.2%)**, driven by additional mortgage loans serviced[175](index=175&type=chunk) [Income Taxes](index=57&type=section&id=Income%20Taxes) Income Tax Expense and Effective Tax Rate (Six Months Ended June 30) | Metric | 2022 | 2021 | |:----------------------|:------------|:------------| | Income tax expense | $55,725 | $64,643 | | Effective tax rate | 24.5% | 23.3% | - The effective tax rate increased primarily due to a **discrete charge to state tax liability** and nondeductible merger and conversion charges incurred in the first six months of 2022[176](index=176&type=chunk) [Financial Condition as of June 30, 2022](index=58&type=section&id=Financial%20Condition%20as%20of%20June%2030%2C%202022) [Securities](index=58&type=section&id=Securities) Investment Portfolio Summary (in thousands) | Security Type | June 30, 2022 (Fair Value) | December 31, 2021 (Fair Value) | |:------------------------------|:---------------------------|:-------------------------------| | Debt securities available-for-sale | $1,052,268 | $592,621 | | Debt securities held-to-maturity | $97,144 | $78,206 | | **Total Investment Portfolio**| **$1,149,412** | **$670,827** | - Available-for-sale securities are recorded at fair value with unrealized gains/losses in OCI, while held-to-maturity securities are at amortized cost[179](index=179&type=chunk)[181](index=181&type=chunk) - At June 30, 2022, **$88,000 of unrealized loss** in available-for-sale securities was attributed to credit impairment, with the remaining **$16.7 million** due to non-credit factors[181](index=181&type=chunk) [Loans and Allowance for Credit Losses](index=59&type=section&id=Loans%20and%20Allowance%20for%20Credit%20Losses) Gross Loans Outstanding (in thousands) | Date | Amount | |:--------------|:------------| | June 30, 2022 | $18,116,687 | | December 31, 2021 | $17,128,890 | | **Change** | **+$987,797** | - Gross loans outstanding increased by **$987.8 million**, primarily driven by organic growth in loans, while loans held for sale decreased[186](index=186&type=chunk) - The ACL on loans totaled **$172.6 million (0.98% of loans)** at June 30, 2022, up from **$167.6 million (1.06% of loans)** at December 31, 2021[193](index=193&type=chunk) - Nonaccrual loans increased to **$122.9 million** at June 30, 2022, from **$85.3 million** at December 31, 2021, mainly due to rebooked GNMA loans and one commercial real estate loan[193](index=193&type=chunk) [Non-Performing Assets](index=62&type=section&id=Non-Performing%20Assets) Non-Performing Assets (in thousands) | Item | June 30, 2022 | December 31, 2021 | |:------------------------------|:--------------|:------------------| | Nonaccrual loans | $122,912 | $85,266 | | Accruing loans delinquent 90 days or more | $8,542 | $12,648 | | Repossessed assets | $122 | $84 | | Other real estate owned | $835 | $3,810 | | **Total Non-Performing Assets**| **$132,411** | **$101,808** | - Total non-performing assets increased to **$132.4 million** at June 30, 2022, from **$101.8 million** at December 31, 2021, representing **0.56% of total assets**[200](index=200&type=chunk)[201](index=201&type=chunk) - The increase in nonaccrual loans was partially offset by a decrease in accruing loans delinquent 90 days or more and a significant decrease in Other Real Estate Owned (OREO)[200](index=200&type=chunk) [Troubled Debt Restructurings](index=63&type=section&id=Troubled%20Debt%20Restructurings) Troubled Debt Restructurings (TDRs) (in thousands) | Status | June 30, 2022 | December 31, 2021 | |:--------------|:--------------|:------------------| | Accruing Loans| $36,100 | $65,582 | | Non-Accruing Loans| $5,657 | $11,006 | | **Total TDRs**| **$41,757** | **$76,588** | - Total TDRs decreased from **$76.6 million** at December 31, 2021, to **$41.8 million** at June 30, 2022[204](index=204&type=chunk) - The most common types of concessions for TDRs include forbearance of principal, rate reduction only, and rate reduction with forbearance of principal[207](index=207&type=chunk) [Commercial Lending Practices](index=65&type=section&id=Commercial%20Lending%20Practices) CRE Loan Concentrations vs. Internal Limits | Loan Category | Internal Limit | June 30, 2022 (Actual) | December 31, 2021 (Actual) | |:----------------------------------|:---------------|:-----------------------|:---------------------------| | Construction and development loans to Tier I capital + ACL | 100% | 72% | 66% | | Total CRE loans (excluding owner-occupied) to Tier I capital + ACL | 300% | 288% | 291% | - The Company exhibits a concentration in Commercial Real Estate (CRE) loans, with total CRE loans representing **40% of total loans** at June 30, 2022[214](index=214&type=chunk)[216](index=216&type=chunk) - The Company's CRE loan concentrations remain **within its internal limits**, but construction and development loans as a percentage of capital increased[217](index=217&type=chunk) [Short-Term Investments](index=66&type=section&id=Short-Term%20Investments) Short-Term Investments (in thousands) | Item | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Federal funds sold and interest-bearing deposits in banks | $1,961,209 | $3,756,844 | - Short-term investments decreased significantly from **$3.76 billion** at December 31, 2021, to **$1.96 billion** at June 30, 2022[218](index=218&type=chunk) [Derivative Instruments and Hedging Activities](index=66&type=section&id=Derivative%20Instruments%20and%20Hedging%20Activities) Fair Value of Derivative Instruments (in thousands) | Item | June 30, 2022 | December 31, 2021 | |:----------------------|:--------------|:------------------| | Asset fair value | $10,079 | $11,940 | | Liability fair value | $0 | $710 | - The Company uses forward contracts and Interest Rate Lock Commitments (IRLCs) to hedge changes in mortgage inventory value due to interest rate fluctuations[219](index=219&type=chunk) [Capital](index=66&type=section&id=Capital) Regulatory Capital Ratios (June 30, 2022 vs. December 31, 2021) | Ratio | June 30, 2022 | December 31, 2021 | |:------------------------------|:--------------|:------------------| | Consolidated Tier 1 Leverage Ratio | 9.01% | 8.63% | | Consolidated CET1 Ratio | 10.11% | 10.46% | | Consolidated Tier 1 Capital Ratio | 10.11% | 10.46% | | Consolidated Total Capital Ratio | 13.27% | 13.78% | | Ameris Bank Tier 1 Leverage Ratio | 10.30% | 9.50% | | Ameris Bank CET1 Ratio | 11.54% | 11.50% | | Ameris Bank Tier 1 Capital Ratio | 11.54% | 11.50% | | Ameris Bank Total Capital Ratio | 12.61% | 12.45% | - The Board of Directors authorized a common stock repurchase program of up to **$100.0 million**, with **$41.7 million** repurchased as of June 30, 2022[220](index=220&type=chunk) - Ameris Bank was considered **'well capitalized'** under all regulatory capital measurements at June 30, 2022[224](index=224&type=chunk) [Interest Rate Sensitivity and Liquidity](index=67&type=section&id=Interest%20Rate%20Sensitivity%20and%20Liquidity) Liquidity Ratios | Ratio | June 30, 2022 | December 31, 2021 | |:------------------------------------------|:--------------|:------------------| | Investment securities available-for-sale to total deposits | 5.35% | 3.01% | | Loans (net of unearned income) to total deposits | 89.21% | 80.72% | | Interest-earning assets to total assets | 89.88% | 90.56% | | Interest-bearing deposits to total deposits | 58.02% | 60.46% | - The Company manages interest rate risk through an Asset Liability Management Policy and uses simulation modeling to assess its impact on net interest income[225](index=225&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - The ALCO Committee aims to keep net interest income changes within **20%** for a **200 basis point** interest rate shift over a 24-month period[229](index=229&type=chunk) - The Company's liquidity ratios were considered **satisfactory** at June 30, 2022, with no events or trends expected to materially change liquidity[231](index=231&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company details its exposure to market risks, primarily interest rate changes, and its management strategies - The Company's primary market risk exposures are **credit risk and interest rate risk**, with no exposure to foreign currency exchange rate risk or commodity price risk[225](index=225&type=chunk)[234](index=234&type=chunk) - Interest rate risk is managed through an asset/liability management program, using simulation analysis to monitor the impact of rate changes on net interest income[235](index=235&type=chunk)[236](index=236&type=chunk) - Forward contracts and IRLCs are used to economically hedge changes in mortgage inventory value, with a net asset fair value of **$10.1 million** at June 30, 2022[233](index=233&type=chunk) [Item 4. Controls and Procedures.](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management confirms the effectiveness of disclosure controls and procedures as of the reporting date - The Company's disclosure controls and procedures were evaluated and deemed **effective** as of June 30, 2022[237](index=237&type=chunk) - **No material changes** in internal control over financial reporting were identified during the quarter ended June 30, 2022[238](index=238&type=chunk) [PART II – OTHER INFORMATION](index=71&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings.](index=71&type=section&id=Item%201.%20Legal%20Proceedings.) Management does not believe current legal matters will materially affect the Company's financial condition - Disclosure on legal proceedings is incorporated by reference from **Note 9 – Commitments and Contingencies**[240](index=240&type=chunk) [Item 1A. Risk Factors.](index=71&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors were disclosed since the Company's 2021 Annual Report - **No material changes** to risk factors were reported since the 2021 Annual Report on Form 10-K[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details the Company's common stock repurchase activities during the second quarter of 2022 Issuer Purchases of Equity Securities (Three Months Ended June 30, 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | |:------------------------------|:-----------------------|:-----------------------------| | April 1, 2022 through April 30, 2022 | — | $— | | May 1, 2022 through May 31, 2022 | 118,157 | $42.72 | | June 1, 2022 through June 30, 2022 | — | $— | | **Total** | **118,157** | **$—** | - As of June 30, 2022, **$41.7 million (952,910 shares)** had been repurchased under the **$100.0 million** share repurchase program, which is authorized through October 31, 2022[243](index=243&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The Company reported no defaults upon senior securities during the period - There were **no defaults** upon senior securities[244](index=244&type=chunk) [Item 4. Mine Safety Disclosures.](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the Company - Mine Safety Disclosures are **not applicable** to the Company[244](index=244&type=chunk) [Item 5. Other Information.](index=71&type=section&id=Item%205.%20Other%20Information.) No other information was reported under this item - **No other information** was reported[244](index=244&type=chunk) [Item 6. Exhibits.](index=71&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL documents - Exhibits include corporate governance documents, compensation plans, and regulatory certifications[246](index=246&type=chunk) - XBRL Instance Document, Taxonomy Extension Schema, and other interactive data files are also included[246](index=246&type=chunk) [SIGNATURE](index=73&type=section&id=SIGNATURE) [SIGNATURE](index=73&type=section&id=SIGNATURE) The report is duly signed by the Chief Financial Officer as the authorized signatory - The report was signed by **Nicole S. Stokes, Chief Financial Officer**, on August 5, 2022[248](index=248&type=chunk)

Ameris Bancorp (NYSE:ABCB) Q2 2022 Earnings Conference Call July 27, 2022 9:00 AM ET Company Participants Nicole Stokes - Chief Financial Officer Palmer Proctor - Chief Executive Officer Jon Edwards - Chief Credit Officer Conference Call Participants Brady Gailey - KBW David Feaster - Raymond James Christopher Marinac - Janney Montgomery Scott Jennifer Demba - Truist Securities Operator Hello, and welcome to today's Ameris Bancorp's Second Quarter Earnings Call. My name is Bailey, and I'll be the moderator ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $1 per share ABCB Nasdaq Global Select Market Emerging growth company ☐ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 O ...

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 ...