Ameris Bancorp (NYSE:ABCB) Q3 2019 Results Earnings Conference Call October 18, 2019 9:00 AM ET Company Participants Palmer Proctor - CEO Nicole Stokes - CFO Jon Edwards - Chief Credit Officer Conference Call Participants Casey Whitman - Sandler O'Neill Jennifer Demba - SunTrust Tyler Stafford - Stephens David Feaster - Raymond James Woody Lay - KBW Christopher Marinac - Janney Montgomery Operator Good morning and welcome to the Ameris Bancorp Third Quarter 2019 Financial Results Conference Call. [Operator ...

PART I – FINANCIAL INFORMATION [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 the periods ended June 30, 2019 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202019%20and%20December%2031%2C%202018) Total assets grew to $11.89 billion driven by loan growth, while shareholders' equity increased to $1.54 billion Key Balance Sheet Metrics | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 11,889,336 | 11,443,515 | 445,821 | 3.90% | | Loans, net | 9,018,077 | 8,483,095 | 534,982 | 6.31% | | Total Deposits | 9,582,370 | 9,649,313 | (66,943) | -0.69% | Shareholders' Equity | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 1,537,121 | 1,456,347 | 80,774 | 5.55% | [Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20for%20the%20Three%20and%20Six-Month%20Periods%20Ended%20June%2030%2C%202019%20and%202018) Net income significantly increased for both the three and six-month periods ending June 30, 2019, driven by higher interest income Three-Month Net Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 38,904 | 9,387 | 29,517 | 314.45% | Six-Month Net Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 78,809 | 36,047 | 42,762 | 118.63% | Key Income Metrics (Six Months) | Metric | June 30, 2019 | June 30, 2018 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Basic EPS per common share | $1.66 | $0.93 | $0.73 | 78.49% | | Total Interest Income | 253,957 | 169,458 | 84,499 | 49.87% | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20Three%20and%20Six-Month%20Periods%20Ended%20June%2030%2C%202019%20and%202018) Shareholders' equity grew to $1.54 billion, primarily due to net income and other comprehensive income gains Shareholders' Equity Growth | Metric | Dec 31, 2018 ($ thousands) | June 30, 2019 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 1,456,347 | 1,537,121 | 80,774 | 5.55% | Components of Change (Six Months Ended June 30, 2019) | Metric | June 30, 2019 ($ thousands) | | :--- | :--- | | Net Income | 78,809 | | Other Comprehensive Income (Loss) | 21,288 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202019%20and%202018) Operating cash flow improved significantly, while increased loan originations drove higher cash usage in investing activities Operating Activities | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 28,876 | (55,465) | 84,341 | 152.08% | Investing Activities | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Used in Investing Activities | (678,031) | (190,711) | (487,320) | 255.53% | Financing Activities | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Financing Activities | 307,783 | 340,227 | (32,444) | -9.53% | [Notes to Unaudited Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide crucial context on accounting policies, business combinations, and specific financial statement items [NOTE 1 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES](index=13&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION%20AND%20ACCOUNTING%20POLICIES) The Company operates 114 branches and adopted a new lease accounting standard in Q1 2019 - Ameris Bancorp operates **114 branches** in Georgia, Alabama, Florida, and South Carolina through its wholly-owned subsidiary, Ameris Bank[22](index=22&type=chunk) - The adoption of ASU 2016-02 (Leases) in Q1 2019 resulted in the recognition of a **$27.3 million right-of-use asset** and a **$29.7 million lease liability**[26](index=26&type=chunk)[28](index=28&type=chunk) [NOTE 2 – SUBSEQUENT EVENT](index=15&type=section&id=NOTE%202%20%E2%80%93%20SUBSEQUENT%20EVENT) On July 1, 2019, the Company completed its acquisition of Fidelity Southern Corporation, expanding its market presence - Ameris Bancorp completed the acquisition of Fidelity Southern Corporation on **July 1, 2019**[34](index=34&type=chunk) - The acquisition involved issuing approximately **22.2 million common shares** at a fair value of **$869.3 million** as merger consideration[34](index=34&type=chunk) Fidelity Southern Corporation Key Metrics (at June 30, 2019) | Metric | Amount ($ billions) | | :--- | :--- | | Total Assets | 4.78 | | Gross Loans | 3.92 | | Deposits | 4.04 | [NOTE 3 – BUSINESS COMBINATIONS](index=16&type=section&id=NOTE%203%20%E2%80%93%20BUSINESS%20COMBINATIONS) This note details fair value adjustments and goodwill recognized for three acquisitions completed in 2018 - The Company uses the **acquisition method of accounting**, recording assets and liabilities at fair value and recognizing goodwill[36](index=36&type=chunk) - **Hamilton State Bancshares, Inc.** acquisition resulted in **$220.8 million in goodwill** from consideration of $349.4 million in shares and $47.8 million in cash[37](index=37&type=chunk)[42](index=42&type=chunk) - **Atlantic Coast Financial Corporation** acquisition resulted in **$90.3 million in goodwill** from consideration of $147.8 million in shares and $21.5 million in cash[47](index=47&type=chunk)[52](index=52&type=chunk) - **US Premium Finance Holding Company (USPF)** acquisition resulted in **$64.5 million in goodwill** from an aggregate purchase price of $83.0 million[56](index=56&type=chunk)[61](index=61&type=chunk) [NOTE 4 – INVESTMENT SECURITIES](index=25&type=section&id=NOTE%204%20%E2%80%93%20INVESTMENT%20SECURITIES) Investment securities available for sale increased to $1.27 billion, with unrealized losses deemed temporary - At June 30, 2019, **107 out of 485 securities** were in an unrealized loss position, but these are considered temporary due to interest rate changes and no intent to sell before recovery[71](index=71&type=chunk)[72](index=72&type=chunk)[75](index=75&type=chunk) Debt Securities Summary | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Debt Securities (Fair Value) | 1,273,244 | 1,192,423 | 80,821 | 6.78% | | Gross Unrealized Gains (June 30, 2019) | 22,794 | | | | | Gross Unrealized Losses (June 30, 2019) | (1,880) | | | | Realized Gains on Sales | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Realized Gains on Sales of Securities | 58 | 37 | 21 | 56.76% | [NOTE 5 – LOANS](index=28&type=section&id=NOTE%205%20%E2%80%93%20LOANS) The loan portfolio grew, driven by commercial and real estate loans, while the allowance for loan losses increased Originated Loan Portfolio | Loan Category | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commercial, financial and agricultural | 1,648,190 | 1,316,359 | 331,831 | 25.21% | | Real estate – construction and development | 788,409 | 671,198 | 117,211 | 17.46% | | Real estate – commercial and farmland | 2,046,347 | 1,814,529 | 231,818 | 12.78% | | Real estate – residential | 1,589,646 | 1,403,000 | 186,646 | 13.30% | | Consumer installment | 449,856 | 455,371 | (5,515) | -1.21% | | **Total (excluding purchased loans)** | **6,522,448** | **5,660,457** | **862,091** | **15.23%** | Purchased Loan Portfolio | Loan Category | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Commercial, financial and agricultural | 252,621 | 372,686 | (120,065) | -32.22% | | Real estate – construction and development | 315,141 | 227,900 | 87,241 | 38.28% | | Real estate – commercial and farmland | 1,135,866 | 1,337,859 | (201,993) | -15.10% | | Real estate – residential | 558,458 | 623,199 | (64,741) | -10.39% | | Consumer installment | 24,339 | 27,188 | (2,849) | -10.48% | | **Total Purchased Loans** | **2,286,425** | **2,588,832** | **(302,407)** | **-11.68%** | Allowance for Loan Losses | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Balance of allowance for loan losses | 31,793 | 28,819 | 2,974 | 10.32% | | Net Charge-offs (Six Months Ended June 30) | 5,102 | 5,170 | (68) | -1.32% | [NOTE 6 – OTHER REAL ESTATE OWNED](index=50&type=section&id=NOTE%206%20%E2%80%93%20OTHER%20REAL%20ESTATE%20OWNED) Other Real Estate Owned (OREO) decreased, while purchased OREO remained stable Other Real Estate Owned (Excluding Purchased) | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Ending balance | 5,169 | 7,218 | (2,049) | -28.39% | Purchased Other Real Estate Owned | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Ending balance | 9,506 | 9,535 | (29) | -0.30% | [NOTE 7 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE](index=51&type=section&id=NOTE%207%20%E2%80%93%20SECURITIES%20SOLD%20UNDER%20AGREEMENTS%20TO%20REPURCHASE) Securities sold under repurchase agreements, classified as short-term borrowings, decreased significantly - All securities underlying these agreements were comprised of **mortgage-backed securities**[156](index=156&type=chunk) Repurchase Agreements | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Securities sold under agreements to repurchase | 3,307 | 20,384 | (17,077) | -83.78% | [NOTE 8 – OTHER BORROWINGS](index=52&type=section&id=NOTE%208%20%E2%80%93%20OTHER%20BORROWINGS) Other borrowings increased substantially due to new FHLB advances, with significant remaining borrowing capacity - At June 30, 2019, **$1.70 billion** was available for borrowing on lines with the FHLB[159](index=159&type=chunk) - At June 30, 2019, the Company had **$1.12 billion** available for borrowing at the Federal Reserve discount window[161](index=161&type=chunk) Total Other Borrowings | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Other Borrowings | 564,636 | 151,774 | 412,862 | 272.03% | [NOTE 9 – SHAREHOLDERS' EQUITY](index=52&type=section&id=NOTE%209%20%E2%80%93%20SHAREHOLDERS'%20EQUITY) Shareholders' equity increased, supported by a stock repurchase program and significant share issuances from 2018 acquisitions - As of June 30, 2019, **$10.6 million (296,335 shares)** of the Company's common stock had been repurchased under the $100.0 million repurchase program[162](index=162&type=chunk) - Common stock issuances for the Hamilton, Atlantic, and USPF acquisitions in 2018 significantly increased shareholders' equity by **$349.4 million**, **$147.8 million**, and **$44.5 million**, respectively[163](index=163&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk) [NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=54&type=section&id=NOTE%2010%20%E2%80%93%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) AOCI shifted from a loss to a gain, driven by unrealized gains on investment securities - Current year changes, net of tax, included **$21.79 million in unrealized gains** on securities and **($412) thousand in unrealized losses** on derivatives[170](index=170&type=chunk) AOCI Summary | Metric | Jan 1, 2019 ($ thousands) | June 30, 2019 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Accumulated Other Comprehensive Income (Loss) | (4,826) | 16,462 | 21,288 | 441.07% | [NOTE 11 – WEIGHTED AVERAGE SHARES OUTSTANDING](index=56&type=section&id=NOTE%2011%20%E2%80%93%20WEIGHTED%20AVERAGE%20SHARES%20OUTSTANDING) Weighted average shares outstanding increased, reflecting share issuances related to acquisitions Weighted Average Shares | Metric | June 30, 2019 (thousands) | June 30, 2018 (thousands) | Change (thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Weighted Average Common Shares Outstanding (Diluted) (3 Months) | 47,338 | 39,710 | 7,628 | 19.21% | | Weighted Average Common Shares Outstanding (Diluted) (6 Months) | 47,395 | 38,981 | 8,414 | 21.59% | [NOTE 12 – LEASES](index=56&type=section&id=NOTE%2012%20%E2%80%93%20LEASES) The Company recognized right-of-use assets and lease liabilities following the adoption of a new lease accounting standard - The weighted-average remaining lease term is **6.2 years**, and the weighted-average discount rate is **2.93%**[176](index=176&type=chunk) Lease Balances | Metric | June 30, 2019 ($ thousands) | | :--- | :--- | | Operating lease right-of-use assets | 24,519 | | Operating lease liabilities | 26,832 | [NOTE 13 – FAIR VALUE MEASURES](index=58&type=section&id=NOTE%2013%20%E2%80%93%20FAIR%20VALUE%20MEASURES) The Company measures certain assets at fair value, primarily using Level 2 inputs for recurring and Level 3 for non-recurring items - Total recurring assets measured at fair value were **$1,475,709 thousand** at June 30, 2019, with the majority classified as **Level 2 ($1,474,209 thousand)**[199](index=199&type=chunk) - Total nonrecurring assets measured at fair value were **$105,672 thousand** at June 30, 2019, with **$40,899 thousand classified as Level 3**[200](index=200&type=chunk) - Significant unobservable inputs for Level 3 assets included collateral discounts for impaired loans (**weighted average 26%**) and estimated costs to sell for OREO (**weighted average 24%-33%**)[204](index=204&type=chunk) [NOTE 14 – COMMITMENTS AND CONTINGENCIES](index=65&type=section&id=NOTE%2014%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The Company has various off-balance-sheet commitments and is involved in legal proceedings not expected to have a material impact - The Company is involved in legal proceedings with William J Villari, former owner of USPF, but management believes these will not have a **material adverse effect** on the Company's financial condition or results of operations[373](index=373&type=chunk)[374](index=374&type=chunk)[375](index=375&type=chunk) Off-Balance-Sheet Instruments | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | | :--- | :--- | :--- | | Commitments to extend credit | 1,722,454 | 1,671,419 | | Unused home equity lines of credit | 108,910 | 112,310 | | Financial standby letters of credit | 25,419 | 24,596 | | Mortgage interest rate lock commitments | 204,087 | 81,833 | [NOTE 15 – SEGMENT REPORTING](index=67&type=section&id=NOTE%2015%20%E2%80%93%20SEGMENT%20REPORTING) The Company operates and reports on five business segments, with the Banking Division being the most profitable - The Company has five reportable segments: **Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division**[219](index=219&type=chunk) Segment Net Income | Segment | Net Income (Six Months Ended June 30, 2019, $ thousands) | | :--- | :--- | | Banking Division | 55,778 | | Retail Mortgage Division | 14,400 | | Warehouse Lending Division | 4,716 | | SBA Division | 2,477 | | Premium Finance Division | 1,438 | | **Total** | **78,809** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=70&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, key acquisitions, and regulatory impacts for the periods ended June 30, 2019 [Cautionary Note Regarding Forward-Looking Statements](index=70&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section disclaims that forward-looking statements are subject to risks and uncertainties and will not be updated - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause **actual results to differ materially**[227](index=227&type=chunk)[228](index=228&type=chunk) - The Company has **no obligation to update, revise, or correct** any forward-looking statements after the report date[229](index=229&type=chunk) [Overview](index=70&type=section&id=Overview) Management's analysis emphasizes the use of non-GAAP measures to evaluate performance and efficiency - Management uses non-GAAP measures such as **tangible common equity, tangible book value per common share, and adjusted net income** to evaluate the Company's performance[231](index=231&type=chunk) [Fidelity Acquisition](index=73&type=section&id=Fidelity%20Acquisition) The acquisition of Fidelity Southern Corporation on July 1, 2019, expanded the Company's presence in Georgia and Florida - The acquisition of Fidelity Southern Corporation was completed on **July 1, 2019**, expanding Ameris Bank's presence in Georgia and Florida with **62 branches**[236](index=236&type=chunk) - Ameris issued approximately **22.2 million common shares** at a fair value of **$869.3 million** as merger consideration[236](index=236&type=chunk) Fidelity Southern Corporation Key Metrics (at June 30, 2019) | Metric | Amount ($ billions) | | :--- | :--- | | Total Assets | 4.78 | | Gross Loans | 3.92 | | Deposits | 4.04 | [Acquisitions Completed in 2018](index=73&type=section&id=Acquisitions%20Completed%20in%202018) Three acquisitions in 2018 significantly expanded the Company's operations and market presence - **USPF acquisition** (January 31, 2018): Total consideration of **$83.0 million**, including $55.9 million in common stock and $21.4 million in cash[240](index=240&type=chunk) - **Atlantic acquisition** (May 25, 2018): Consideration included **$147.8 million in common stock** and **$21.5 million in cash**, acquiring $875.0 million in assets[242](index=242&type=chunk)[243](index=243&type=chunk) - **Hamilton acquisition** (June 29, 2018): Consideration included **$349.4 million in common stock** and **$47.8 million in cash**, acquiring $1.79 billion in assets[244](index=244&type=chunk)[245](index=245&type=chunk) [Costs and Requirements for Exceeding $10 Billion in Total Assets](index=74&type=section&id=Costs%20and%20Requirements%20for%20Exceeding%20%2410%20Billion%20in%20Total%20Assets) Exceeding $10 billion in assets subjects the Company to increased regulatory oversight, costs, and revenue caps - Exceeding **$10 billion in total assets** subjects Ameris Bank to increased regulatory oversight, including enhanced risk management, stress testing, and CFPB examination authority[246](index=246&type=chunk)[247](index=247&type=chunk) - New regulations will lead to additional compliance costs and **reduced interchange revenue** due to a cap on debit card transaction fees[248](index=248&type=chunk) [Results of Operations for the Three Months Ended June 30, 2019 and 2018](index=75&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202019%20and%202018) Net income for Q2 2019 significantly increased to $38.9 million, with adjusted net income rising to $45.2 million [Consolidated Earnings and Profitability](index=75&type=section&id=Consolidated%20Earnings%20and%20Profitability) Net income available to common shareholders more than tripled in Q2 2019 compared to Q2 2018 Q2 Earnings Summary | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Common Shareholders | 38,904 | 9,387 | 29,517 | 314.45% | | Adjusted Net Income | 45,210 | 29,239 | 15,971 | 54.62% | | Adjusted Net Income Per Diluted Share | $0.96 | $0.74 | $0.22 | 29.73% | [Net Interest Income and Margins](index=77&type=section&id=Net%20Interest%20Income%20and%20Margins) Net interest income grew 33.5%, driven by asset growth from acquisitions, though the net interest margin slightly decreased - Average interest-earning assets increased by **$2.73 billion**, or **34.9%**, to $10.55 billion in Q2 2019, primarily due to acquisitions and legacy loan growth[258](index=258&type=chunk) - Deposit costs increased from **0.47%** in Q2 2018 to **0.97%** in Q2 2019[262](index=262&type=chunk) Q2 Net Interest Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Tax-Equivalent Net Interest Income | 102,713 | 76,943 | 25,770 | 33.49% | Q2 Net Interest Margin | Metric | June 30, 2019 | June 30, 2018 | Change (bps) | | :--- | :--- | :--- | :--- | | Net Interest Margin | 3.91% | 3.95% | -4 | [Provision for Loan Losses](index=79&type=section&id=Provision%20for%20Loan%20Losses) The provision for loan losses decreased in Q2 2019, and asset quality metrics improved - **Non-performing assets** as a percentage of total assets decreased from 0.55% at December 31, 2018, to **0.51%** at June 30, 2019[264](index=264&type=chunk) - **Net charge-offs on legacy loans** decreased to **0.11%** of average legacy loans (annualized) in Q2 2019, compared with 0.26% in Q2 2018[264](index=264&type=chunk) Q2 Provision | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Provision for Loan Losses | 4,668 | 9,110 | (4,442) | -48.76% | [Noninterest Income](index=79&type=section&id=Noninterest%20Income) Noninterest income increased, driven by higher service charges and mortgage banking activity - Service charges on deposit accounts increased by **$1.6 million (14.7%)** to $12.2 million in Q2 2019[265](index=265&type=chunk) - Income from mortgage banking activity increased by **$3.1 million (20.3%)** to $18.5 million in Q2 2019[265](index=265&type=chunk) Q2 Noninterest Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Income | 35,236 | 31,307 | 3,929 | 12.55% | [Noninterest Expense](index=80&type=section&id=Noninterest%20Expense) Noninterest expenses decreased due to lower merger charges, despite increases in other operational costs - Merger and conversion charges decreased from **$18.4 million** in Q2 2018 to **$3.5 million** in Q2 2019[267](index=267&type=chunk) - Salaries and employee benefits decreased by **$1.3 million (3.4%)** due to a **5.5% reduction** in full-time equivalent employees[267](index=267&type=chunk) Q2 Noninterest Expense | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Expense | 81,251 | 86,386 | (5,135) | -5.94% | [Income Taxes](index=80&type=section&id=Income%20Taxes) Income tax expense increased significantly, raising the effective tax rate for Q2 2019 - The effective tax rate increased from **20.5%** in Q2 2018 to **23.7%** in Q2 2019[268](index=268&type=chunk) Q2 Income Tax Expense | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 12,064 | 2,423 | 9,641 | 397.89% | [Results of Operations for the Six Months Ended June 30, 2019 and 2018](index=81&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202019%20and%202018) Net income for the first six months of 2019 more than doubled to $78.8 million, with adjusted net income at $87.8 million [Consolidated Earnings and Profitability](index=81&type=section&id=Consolidated%20Earnings%20and%20Profitability) Net income available to common shareholders more than doubled in the first half of 2019 compared to the prior year Six-Month Earnings Summary | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Common Shareholders | 78,809 | 36,047 | 42,762 | 118.63% | | Adjusted Net Income | 87,797 | 57,019 | 30,778 | 53.98% | | Adjusted Net Income Per Diluted Share | $1.85 | $1.46 | $0.39 | 26.71% | [Net Interest Income and Margins](index=83&type=section&id=Net%20Interest%20Income%20and%20Margins) Net interest income grew 38.5%, driven by strong growth in interest-earning assets, while the net interest margin remained stable - Average interest-earning assets increased by **$2.91 billion**, or **38.7%**, to $10.43 billion, driven by growth in legacy and purchased loans[277](index=277&type=chunk) - Total funding costs increased to **1.08%** in the first six months of 2019, up from 0.69% in the same period of 2018[280](index=280&type=chunk) Six-Month Net Interest Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Tax-Equivalent Net Interest Income | 203,166 | 146,730 | 56,436 | 38.46% | Six-Month Net Interest Margin | Metric | June 30, 2019 | June 30, 2018 | Change (bps) | | :--- | :--- | :--- | :--- | | Net Interest Margin | 3.93% | 3.93% | 0 | [Provision for Loan Losses](index=85&type=section&id=Provision%20for%20Loan%20Losses) The provision for loan losses decreased for the six-month period, and asset quality metrics improved - **Non-performing assets** as a percentage of total assets decreased from 0.55% at December 31, 2018, to **0.51%** at June 30, 2019[282](index=282&type=chunk) - **Net charge-offs on legacy loans** decreased to **0.18%** of average legacy loans (annualized) for the first six months of 2019, compared with 0.20% in 2018[282](index=282&type=chunk) Six-Month Provision | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Provision for Loan Losses | 8,076 | 10,911 | (2,835) | -25.98% | [Noninterest Income](index=85&type=section&id=Noninterest%20Income) Noninterest income grew, driven by higher service charges and mortgage-related activities - Service charges on deposit accounts increased by **$3.0 million (14.3%)** to $23.8 million for the first six months of 2019[283](index=283&type=chunk) - Income from mortgage-related activities increased by **$5.5 million (19.9%)** to $33.2 million for the first six months of 2019[283](index=283&type=chunk) Six-Month Noninterest Income | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Income | 66,007 | 57,771 | 8,236 | 14.26% | [Noninterest Expense](index=86&type=section&id=Noninterest%20Expense) Noninterest expenses increased due to higher operational costs from acquisitions, partially offset by lower merger charges - Merger and conversion charges decreased from **$19.2 million** in the first six months of 2018 to **$5.5 million** in the same period of 2019[284](index=284&type=chunk) - Amortization of intangible assets increased by **$3.1 million (96.3%)** to $6.3 million, primarily due to acquisitions[284](index=284&type=chunk) Six-Month Noninterest Expense | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Expense | 156,676 | 145,484 | 11,192 | 7.70% | [Income Taxes](index=86&type=section&id=Income%20Taxes) Income tax expense more than doubled, increasing the effective tax rate for the six-month period - The effective tax rate increased from **21.9%** in the first six months of 2018 to **23.0%** in the same period of 2019[285](index=285&type=chunk) Six-Month Income Tax Expense | Metric | June 30, 2019 ($ thousands) | June 30, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 23,492 | 10,129 | 13,363 | 131.93% | [Financial Condition as of June 30, 2019](index=86&type=section&id=Financial%20Condition%20as%20of%20June%2030%2C%202019) This section details the Company's financial position, including assets, liabilities, capital, and liquidity [Securities](index=86&type=section&id=Securities) The investment portfolio grew to $1.27 billion, with all unrealized losses considered temporary - All unrealized losses on debt securities are considered **temporary**, as the Company does not intend to sell these securities at an unrealized loss position[289](index=289&type=chunk) Debt Securities (Fair Value) | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Debt Securities (Fair Value) | 1,273,244 | 1,192,423 | 80,821 | 6.78% | [Loans and Allowance for Loan Losses](index=87&type=section&id=Loans%20and%20Allowance%20for%20Loan%20Losses) Gross loans increased to $9.31 billion, driven by legacy loan growth, while the allowance for loan losses also grew - **Legacy loans** increased by **$862.0 million**, or **15.2%**, to $6.52 billion at June 30, 2019[294](index=294&type=chunk) - **Purchased loans** decreased by **$302.4 million**, or **11.7%**, to $2.29 billion at June 30, 2019, primarily due to paydowns[294](index=294&type=chunk) - The allowance for loan losses totaled **$31.8 million** at June 30, 2019, representing **0.35% of total loans** and **0.44% of legacy loans**[300](index=300&type=chunk)[306](index=306&type=chunk) Gross Loans | Metric | June 30, 2019 ($ billions) | Dec 31, 2018 ($ billions) | Change ($ billions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Loans Outstanding | 9.31 | 8.62 | 0.69 | 8.00% | [Purchased Assets](index=91&type=section&id=Purchased%20Assets) Purchased loans decreased due to paydowns, while purchased OREO remained stable - Purchased loans decreased by **$302.4 million (11.7%)** to **$2.29 billion** at June 30, 2019, primarily due to paydowns[310](index=310&type=chunk) - Purchased OREO totaled **$9.5 million** at June 30, 2019, remaining stable compared to December 31, 2018[310](index=310&type=chunk) [Purchased Loan Pools](index=91&type=section&id=Purchased%20Loan%20Pools) Purchased loan pools decreased due to payments and premium amortization - Purchased loan pools decreased by **$21.6 million (8.2%)** to **$241.0 million** at June 30, 2019, primarily due to payments and premium amortization[313](index=313&type=chunk)[314](index=314&type=chunk) - An allowance for loan losses of **$671,000** was allocated to the purchased loan pools at June 30, 2019[314](index=314&type=chunk) [Non-Performing Assets](index=93&type=section&id=Non-Performing%20Assets) Total non-performing assets decreased, improving the ratio of non-performing assets to total assets - The ratio of total non-performing assets to total assets decreased from **0.55%** at December 31, 2018, to **0.51%** at June 30, 2019[317](index=317&type=chunk) Non-Performing Assets Summary | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Non-Performing Assets | 60,767 | 63,034 | (2,267) | -3.60% | [Troubled Debt Restructurings](index=93&type=section&id=Troubled%20Debt%20Restructurings) Troubled debt restructurings (TDRs) increased for legacy loans but decreased for purchased loans - Troubled debt restructurings (excluding purchased loans) increased to **$14.5 million** at June 30, 2019, from $11.1 million at December 31, 2018[320](index=320&type=chunk) - Troubled debt restructurings included in purchased loans decreased to **$21.3 million** at June 30, 2019, from $22.2 million at December 31, 2018[324](index=324&type=chunk) - The Company's policy requires TDRs to be assigned a **substandard grade** and placed on nonaccrual status until the borrower demonstrates six months of satisfactory payment history[126](index=126&type=chunk) [Commercial Lending Practices](index=100&type=section&id=Commercial%20Lending%20Practices) The Company has a concentration in Commercial Real Estate (CRE) loans, which remain within internal limits CRE Loan Concentration | Metric | June 30, 2019 ($ thousands) | % of Total Loans | | :--- | :--- | :--- | | Total CRE Loans (excluding owner-occupied) | 3,059,292 | 34% | CRE Concentration vs. Internal Limits | Metric | Internal Limit | June 30, 2019 Actual | | :--- | :--- | :--- | | Construction and development loans to total risk-based capital | 100% | 91% | | Total CRE loans (excluding owner-occupied) to total risk-based capital | 300% | 253% | [Short-Term Investments](index=102&type=section&id=Short-Term%20Investments) Short-term investments, including federal funds sold and bank deposits, decreased significantly Short-Term Investments Summary | Metric | June 30, 2019 ($ thousands) | Dec 31, 2018 ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Short-Term Investments | 187,000 | 507,500 | (320,500) | -63.15% | [Derivative Instruments and Hedging Activities](index=102&type=section&id=Derivative%20Instruments%20and%20Hedging%20Activities) The Company uses derivatives to manage interest rate risk for subordinated debentures and mortgage inventory - The Company has a cash flow hedge with a notional amount of **$37.1 million**, converting a variable rate to a fixed rate of 4.11%, which was a liability of **$249,000** at June 30, 2019[337](index=337&type=chunk) - Mortgage banking derivative instruments had a net asset value of approximately **$4.4 million** at June 30, 2019[338](index=338&type=chunk) [Capital](index=102&type=section&id=Capital) The Company and Ameris Bank were considered "well capitalized" under all regulatory measures - Ameris Bank was considered **"well capitalized"** under all regulatory capital measurements as of June 30, 2019[355](index=355&type=chunk) - As of June 30, 2019, **$10.6 million (296,335 shares)** had been repurchased under the $100.0 million common stock repurchase program[340](index=340&type=chunk) Consolidated Capital Ratios | Metric | Consolidated (June 30, 2019) | | :--- | :--- | | Tier 1 Leverage Ratio | 9.47% | | CET1 Ratio | 9.75% | | Tier 1 Capital Ratio | 10.66% | | Total Capital Ratio | 11.74% | [Interest Rate Sensitivity and Liquidity](index=104&type=section&id=Interest%20Rate%20Sensitivity%20and%20Liquidity) The Company manages interest rate risk through simulation modeling and maintains satisfactory liquidity ratios - The ALCO Committee aims to limit net interest income change to no more than **20%** given a **200 basis point** change in interest rates over any 24-month period[361](index=361&type=chunk) - The Company's and the Bank's liquidity ratios at June 30, 2019, were considered **satisfactory**[363](index=363&type=chunk) Key Liquidity Ratios | Metric | June 30, 2019 | | :--- | :--- | | Investment securities available for sale to total deposits | 13.29% | | Loans (net of unearned income) to total deposits | 94.44% | | Interest-earning assets to total assets | 90.87% | | Interest-bearing deposits to total deposits | 71.08% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=106&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The Company's primary market risk is interest rate risk, which is managed through an asset/liability program and hedging - The Company's primary market risk exposure is to **U.S. dollar interest rate changes**[364](index=364&type=chunk) - Hedging activities include a cash flow hedge for junior subordinated debentures and forward contracts for mortgage inventory, with a net asset value of approximately **$4.4 million**[365](index=365&type=chunk)[366](index=366&type=chunk) - The Company has **no exposure** to foreign currency exchange rate risk, commodity price risk, or other market risks[367](index=367&type=chunk) [Item 4. Controls and Procedures.](index=107&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were **effective** as of June 30, 2019[371](index=371&type=chunk) - **No material changes** in internal control over financial reporting were identified during the quarter ended June 30, 2019[372](index=372&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings.](index=107&type=section&id=Item%201.%20Legal%20Proceedings.) The Company is involved in legal proceedings with a former business owner, which are not expected to have a material adverse effect - The Company is involved in multiple legal proceedings with William J Villari (former USPF owner), including claims for **fraudulent inducement and breach of contract**[373](index=373&type=chunk)[374](index=374&type=chunk) - Management believes the allegations are without merit and does not expect a **material adverse effect** on the Company's consolidated results or financial condition[375](index=375&type=chunk) [Item 1A. Risk Factors.](index=107&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes to the risk factors previously disclosed in the Company's 2018 Annual Report - **No material changes** to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018[377](index=377&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=108&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details common stock repurchases made during the quarter under the Company's repurchase program Stock Repurchase Activity (Q2 2019) | Metric | Value | | :--- | :--- | | Total Number of Shares Purchased | 296,630 | | Average Price Paid Per Share | $35.61 | | Shares Purchased Under Publicly Announced Program | 296,335 | | Approximate Dollar Value Remaining Under Program | $89,447,425 | [Item 3. Defaults Upon Senior Securities.](index=108&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The Company reported no defaults upon senior securities - There were **no defaults** upon senior securities[381](index=381&type=chunk) [Item 4. Mine Safety Disclosures.](index=108&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[381](index=381&type=chunk) [Item 5. Other Information.](index=108&type=section&id=Item%205.%20Other%20Information.) No other information was reported under this item - **No other information** was reported under this item[381](index=381&type=chunk) [Item 6. Exhibits.](index=109&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed as part of the Form 10-Q - Exhibits include corporate governance documents, employment agreements, **CEO/CFO certifications**, and XBRL financial data files[384](index=384&type=chunk) [Signatures](index=110&type=section&id=Signatures) The report is duly signed on behalf of Ameris Bancorp by its Chief Financial Officer - The report was signed by **Nicole S Stokes, Executive Vice President and Chief Financial Officer**, on August 9, 2019[386](index=386&type=chunk)

Ameris Bancorp (NYSE:ABCB) Q2 2019 Results Conference Call July 26, 2019 10:00 AM ET Company Participants Palmer Proctor – Chief Executive Officer Nicole Stokes – Chief Financial Officer Jon Edwards – Chief Credit Officer Conference Call Participants Tyler Stafford – Stephens Casey Whitman – Sandler O'Neill Brady Gailey – KBW Jennifer Demba – SunTrust David Feaster – Raymond James Christopher Marinac – Janney Montgomery Scott Operator Good morning and welcome to the Ameris Bancorp Second Quarter 2019 Finan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-13901 AMERIS BANCORP (Exact name of registrant as specified in its charter) GEORGIA 58-1456434 (State of incorporation) (IRS Employer ID No.) 310 FIRST STREET, S ...

Ameris Bancorp (NYSE:ABCB) Q1 2019 Earnings Conference Call April 23, 2019 10:00 AM ET Company Participants Nicole Stokes - CFO Dennis Zember - President, CEO Jon Edwards - Chief Credit Officer Conference Call Participants Tyler Stafford - Stephens Inc Brady Gailey - KBW Jennifer Demba - SunTrust Brett Rabatin - Piper Jaffray Operator Good morning, and welcome to the Ameris Bank First Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After ...

Loan Portfolio and Acquisitions - As of December 31, 2018, the company's loan portfolio totaled approximately $8.62 billion, representing about 75.4% of total assets[27] - The company reported significant growth in its commercial real estate loans, which are the largest segment of its loan portfolio[27] - The company has agricultural loans secured by crops or farm-related equipment, with a portion guaranteed by the Farm Service Agency Guaranteed Loan Program[29] - The company completed the acquisition of Hamilton State Bancshares, Inc. for an aggregate purchase price of approximately $397.1 million[50] - The company entered into a merger agreement with Fidelity Southern Corporation, with an estimated purchase price of $750.7 million based on a share exchange ratio[49] - The acquisition of US Premium Finance Holding Company was completed for an aggregate purchase price of $83.0 million, which included $55.9 million in common stock and $21.4 million in cash[52] - Ameris Bancorp acquired JAXB for approximately $96.4 million, consisting of $23.9 million in cash and 2,549,469 shares of common stock valued at $72.5 million[54] - The acquisition of Merchants & Southern Banks of Florida was significant for Ameris, with a total purchase price of $50.0 million[55] - Ameris acquired 18 branches from Bank of America for a deposit premium of $20.0 million, which was 3.00% of the average daily deposits prior to the acquisition, along with $644.7 million in deposits[56] - The acquisition of Coastal Bank was completed for approximately $37.3 million, including 1,599,000 shares of common stock valued at $34.5 million and $2.8 million in cash[57] - The acquisition of Prosperity Bank was valued at approximately $24.6 million, consisting of $162,000 in cash and 1,169,000 shares of common stock worth approximately $24.5 million[58] Regulatory Compliance and Capital Requirements - Following the acquisition of Hamilton in June 2018, Ameris and the Bank exceeded $10 billion in total consolidated assets, triggering heightened regulatory requirements[75] - The Dodd-Frank Act requires publicly traded bank holding companies with assets over $10 billion to perform capital stress testing and establish a risk committee[78] - As of December 31, 2018, the Bank had approximately $67.2 million of retained earnings available for payment of cash dividends without obtaining regulatory approval[81] - The total risk-based capital ratio, Tier 1 risk-based capital ratio, and common equity Tier 1 capital ratio were 12.23%, 11.07%, and 10.07%, respectively, as of December 31, 2018[94] - The leverage ratio was 9.17% as of December 31, 2018, compared to 9.71% at December 31, 2017[95] - The minimum risk-based capital requirements including the 1.875% capital conservation buffer are 9.875% Total Risk-Based Capital Ratio, 7.875% Tier 1 Risk-Based Capital Ratio, and 6.375% Common Equity Tier 1 Risk Based Capital Ratio as of December 31, 2018[93] - The Federal Reserve requires a minimum Tier 1 leverage ratio of 4% for all institutions[91] - The Dodd-Frank Act mandates that the reserve ratio of the Deposit Insurance Fund (DIF) reach 1.35% by September 30, 2020, with the reserve ratio at 1.36% as of September 30, 2018[103] - The capital conservation buffer requirement is being phased in, requiring a buffer amount greater than 2.5% of risk-weighted assets to avoid limitations on dividends and share repurchases starting January 1, 2019[92] - The Federal Reserve has indicated that a bank holding company should pay cash dividends only if net income is sufficient to cover both dividends and a rate of earnings retention consistent with capital needs[84] - The Bank is required to maintain Common Equity Tier 1 Capital equal to 4.5% of risk-weighted assets[91] - The Dodd-Frank Act has introduced significant changes to capital regulations, impacting profitability and requiring compliance with new standards[88] - The Bank's adjusted average consolidated total assets are expected to exceed $10 billion for four consecutive quarters starting Q1 2019, leading to a change in deposit insurance assessment classification from small to large institution[106] - The FDIC's new assessment rates range from 3 to 30 basis points for large insured depository institutions, with total base assessment rates ranging from 1.5 to 40 basis points after adjustments[106] - As of June 30, 2016, the FDIC reported a reserve ratio of 1.17%, triggering the new assessment methodology[105] - Future changes in insurance premiums could adversely affect the Bank's operating expenses and results of operations, with uncertainty regarding future assessment rates[107] Risk Management and Interest Rate Sensitivity - The company has a risk management program that includes the use of derivatives to manage interest rate risk, with an interest rate swap of $37.1 million[47] - The company is slightly asset sensitive to changes in market interest rates, which means net interest income would increase in a rising rate environment[396] - A simulation analysis indicates that net interest income is projected to increase slightly if rates rise by 100 basis points over the next year[398] - The projected impact of a 400 basis point increase in interest rates is a 4.0% increase in net interest income over 12 months and a 9.9% increase over 24 months[402] - The company has a management-adjusted gap ratio policy in the one-year time horizon of 0.80 to 1.20 to manage interest rate risk[396] - The company does not have exposure to foreign currency exchange rate risk, commodity price risk, or other market risks[395] - The company may take actions to mitigate negative impacts on net interest income, including restructuring interest-earning assets and liabilities[400] Compliance and Consumer Protection - The Bank is required to maintain an effective anti-money laundering program and file suspicious activity reports as mandated by the Bank Secrecy Act and the USA PATRIOT Act[120] - The Community Reinvestment Act mandates that financial institutions meet the credit needs of low and moderate-income borrowers, with examination types based on institution size[111] - The CFPB has exclusive supervisory authority over insured depository institutions with more than $10 billion in total assets, focusing on consumer protection laws[114] - The Bank's compliance with federal and state consumer protection laws is critical, covering various aspects of lending and customer interactions[113] - The Bank's lending operations may face enhanced scrutiny due to concentrations in commercial real estate loans, particularly if total CRE loans exceed 300% of total capital[131] - The FDIC may terminate deposit insurance if the institution is found to be engaging in unsafe practices or is in an unsafe condition[108] - As of December 31, 2018, the company's construction and development (C&D) concentration as a percentage of capital totaled 58.0%, while the commercial real estate (CRE) concentration, net of owner-occupied loans, was 154.6%[132] - Including purchased non-covered and covered loans subject to loss-sharing agreements with the FDIC, the C&D concentration increased to 77.7%, and the CRE concentration rose to 248.1%[132] Financial Reporting and Regulatory Environment - The consolidated financial statements are prepared in accordance with GAAP, focusing on historical dollars without considering inflation effects[401] - The evolving regulatory environment, including the Dodd-Frank Act, may impact the company's operations and financial condition, but the specific effects are currently unpredictable[138]

Ameris Bancorp (NYSE:ABCB) Q4 2018 Earnings Conference Call January 25, 2018 10:00 AM ET Company Participants Nicole Stokes - Chief Financial Officer Dennis Zember - President, Chief Executive Officer Jon Edwards - Chief Credit Officer Conference Call Participants Tyler Stafford - Stephens Inc. Brady Gailey - KBW Jennifer Demba - SunTrust Casey Whitman - Sandler O'Neill Operator Good morning and welcome to the Ameris Bancorp Fourth Quarter 2018 Financial Results Conference Call. All participants will be in ...