Ameris Bancorp [ABCB] Filings

10-Q 1 abcb-20220630.htm 10-Q abcb-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


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 June 30, 2022


			☐			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.)


3490 Piedmont Rd N.E., Suite 1550
Atlanta	Georgia	30305
(Address of principal executive offices)


(404)			639-6500
(Registrant’s telephone number)

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	ý	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

There were 69,360,054 shares of Common Stock outstanding as of July 31, 2022.

AMERIS BANCORP

TABLE OF CONTENTS


		Page

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements.

	Consolidated Balance Sheets as of June 3 0 , 2022 (unaudited) and December 31, 2021	1

	Consolidated Statements of Income and Comprehensive Income for the Three and Six Months Ended June 30 , 2022 and 2021 (unaudited)	2

	Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 3 0 , 2022 and 2021 (unaudited)	3

	Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2022 and 2021 (unaudited)	5

	Notes to Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	36

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	57

Item 4.	Controls and Procedures.	58

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings.	59

Item 1A.	Risk Factors.	59

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	59

Item 3.	Defaults Upon Senior Securities.	59

Item 4.	Mine Safety Disclosures.	59

Item 5.	Other Information.	59

Item 6.	Exhibits.	60

Signatures		61

Item 1. Financial Statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Balance Sheets

(dollars in thousands, except per share data)


	June 30, 2022 (unaudited)		December 31, 2021
Assets
Cash and due from banks	$	345,627	$	307,813
Federal funds sold and interest-bearing deposits in banks	1,961,209		3,756,844
Cash and cash equivalents	2,306,836		4,064,657


Debt securities available-for-sale, at fair value, net of allowance for credit losses of $88 and $—	1,052,268		592,621
Debt securities held-to-maturity, at amortized cost, net of allowance for credit losses of $— and $— (fair value of $97,144 and $78,206)	111,654		79,850
Other investments	49,500		47,552
Loans held for sale, at fair value	555,665		1,254,632

Loans, net of unearned income	17,561,022		15,874,258
Allowance for credit losses	(172,642)		(167,582)
Loans, net	17,388,380		15,706,676

Other real estate owned, net	835		3,810
Premises and equipment, net	224,249		225,400
Goodwill	1,023,056		1,012,620
Other intangible assets, net	115,613		125,938
Cash value of bank owned life insurance	384,862		331,146

Other assets	474,552		413,419
Total assets	$	23,687,470	$	23,858,321

Liabilities
Deposits:
Noninterest-bearing	$	8,262,929	$	7,774,823
Interest-bearing	11,422,053		11,890,730
Total deposits	19,684,982		19,665,553
Securities sold under agreements to repurchase	953		5,845
Other borrowings	425,592		739,879
Subordinated deferrable interest debentures	127,325		126,328
Other liabilities	375,242		354,265
Total liabilities	20,614,094		20,891,870

Commitments and Contingencies (Note 9)

Shareholders’ Equity
Preferred stock, stated value $1,000; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, par value $1; 200,000,000 shares authorized; 72,251,856 and 72,017,126 shares issued	72,251		72,017
Capital surplus	1,931,088		1,924,813
Retained earnings	1,157,359		1,006,436
Accumulated other comprehensive income, net of tax	(12,635)		15,590
Treasury stock, at cost, 2,891,395 and 2,407,898 shares	(74,687)		(52,405)
Total shareholders’ equity	3,073,376		2,966,451
Total liabilities and shareholders’ equity	$	23,687,470	$	23,858,321

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Income and Comprehensive Income (unaudited)

(dollars and shares in thousands, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Interest income
Interest and fees on loans	$	190,740	$	167,761	$	368,306	$	338,918
Interest on taxable securities	7,064		5,244		11,303		11,362
Interest on nontaxable securities	269		139		455		280
Interest on deposits in other banks and federal funds sold	4,495		607		5,878		1,141
Total interest income	202,568		173,751		385,942		351,701

Interest expense
Interest on deposits	4,908		5,775		9,000		12,573
Interest on other borrowings	6,296		6,124		13,034		12,299
Total interest expense	11,204		11,899		22,034		24,872

Net interest income	191,364		161,852		363,908		326,829
Provision for loan losses	13,227		(899)		10,493		(17,478)
Provision for unfunded commitments	1,779		1,299		10,788		(10,540)
Provision for other credit losses	(82)		(258)		(126)		(431)
Provision for credit losses	14,924		142		21,155		(28,449)
Net interest income after provision for credit losses	176,440		161,710		342,753		355,278

Noninterest income
Service charges on deposit accounts	11,148		11,007		22,206		21,836
Mortgage banking activity	58,761		70,231		121,699		168,717
Other service charges, commissions and fees	998		1,056		1,937		2,072
Net loss on securities	248		1		221		(11)
Other noninterest income	12,686		6,945		24,689		14,599
Total noninterest income	83,841		89,240		170,752		207,213

Noninterest expense
Salaries and employee benefits	81,545		85,505		165,826		181,490
Occupancy and equipment	12,746		10,812		25,473		22,593
Data processing and communications expenses	12,155		11,877		24,727		23,761
Credit resolution-related expenses	496		622		(469)		1,169
Advertising and marketing	3,122		1,946		5,110		3,377
Amortization of intangible assets	5,144		4,065		10,325		8,191
Merger and conversion charges	—		—		977		—
Loan servicing expense	9,920		4,914		18,839		10,814
Other noninterest expenses	17,068		16,020		35,208		33,164
Total noninterest expense	142,196		135,761		286,016		284,559

Income before income tax expense	118,085		115,189		227,489		277,932
Income tax expense	28,019		26,862		55,725		64,643
Net income	90,066		88,327		171,764		213,289

Other comprehensive loss
Net unrealized holding losses arising during period on investment securities available-for-sale, net of tax benefit of $(2,870), $(283), $(7,503) and $(2,255)	(10,794)		(1,066)		(28,225)		(8,481)



Total other comprehensive loss	(10,794)		(1,066)		(28,225)		(8,481)
Comprehensive income	$	79,272	$	87,261	$	143,539	$	204,808

Basic earnings per common share	$	1.30	$	1.27	$	2.48	$	3.07
Diluted earnings per common share	$	1.30	$	1.27	$	2.47	$	3.06
Weighted average common shares outstanding
Basic	69,136		69,497		69,246		69,448
Diluted	69,316		69,792		69,485		69,765

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity (unaudited)

(dollars in thousands)


	Three Months Ended June 30, 2022

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss), Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, March 31, 2022	72,212,322	$	72,212	$	1,928,702	$	1,077,725	$	(1,841)	2,773,238	$	(69,639)	$	3,007,159

Issuance of restricted shares	18,953	19		(19)		—		—		—	—		—
Forfeitures of restricted shares	(10,751)	(11)		(81)		—		—		—	—		(92)
Proceeds from exercise of stock options	31,332	31		849		—		—		—	—		880
Share-based compensation	—	—		1,637		—		—		—	—		1,637
Purchase of treasury shares	—	—		—		—		—		118,157	(5,048)		(5,048)
Net income	—	—		—		90,066		—		—	—		90,066
Dividends on common shares ($0.15 per share)	—	—		—		(10,432)		—		—	—		(10,432)

Other comprehensive loss during the period	—	—		—		—		(10,794)		—	—		(10,794)
Balance, June 30, 2022	72,251,856	$	72,251	$	1,931,088	$	1,157,359	$	(12,635)	2,891,395	$	(74,687)	$	3,073,376


	Six Months Ended June 30, 2022

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss), Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, December 31, 2021	72,017,126	$	72,017	$	1,924,813	$	1,006,436	$	15,590	2,407,898	$	(52,405)	$	2,966,451

Issuance of restricted shares	164,346	164		1,177		—		—		—	—		1,341
Forfeitures of restricted shares	(10,751)	(10)		(81)		—		—		—	—		(91)
Proceeds from exercise of stock options	81,135	80		2,244		—		—		—	—		2,324
Share-based compensation	—	—		2,935		—		—		—	—		2,935
Purchase of treasury shares	—	—		—		—		—		483,497	(22,282)		(22,282)
Net income	—	—		—		171,764		—		—	—		171,764
Dividends on common shares ($0.30 per share)	—	—		—		(20,841)		—		—	—		(20,841)

Other comprehensive loss during the period	—	—		—		—		(28,225)		—	—		(28,225)
Balance, June 30, 2022	72,251,856	$	72,251	$	1,931,088	$	1,157,359	$	(12,635)	2,891,395	$	(74,687)	$	3,073,376


	Three Months Ended June 30, 2021

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income, Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, March 31, 2021	71,954,088	$	71,954	$	1,917,990	$	785,984	$	26,090	2,240,662	$	(44,422)	$	2,757,596

Issuance of restricted shares	13,233	13		(13)		—		—		—	—		—
Forfeitures of restricted shares	(750)	(1)		(19)		—		—		—	—		(20)
Proceeds from exercise of stock options	41,300	42		1,167		—		—		—	—		1,209
Share-based compensation	—	—		1,441		—		—		—	—		1,441
Purchase of treasury shares	—	—		—		—		—		—	—		—
Net income	—	—		—		88,327		—		—	—		88,327
Dividends on common shares ($0.15 per share)	—	—		—		(10,483)		—		—	—		(10,483)


Other comprehensive loss during the period	—	—		—		—		(1,066)		—	—		(1,066)
Balance, June 30, 2021	72,007,871	$	72,008	$	1,920,566	$	863,828	$	25,024	2,240,662	$	(44,422)	$	2,837,004


	Six Months Ended June 30, 2021

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income, Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, December 31, 2020	71,753,705	$	71,754	$	1,913,285	$	671,510	$	33,505	2,212,224	$	(42,966)	$	2,647,088

Issuance of restricted shares	99,308	99		500		—		—		—	—		599
Forfeitures of restricted shares	(750)	(1)		(19)		—		—		—	—		(20)
Proceeds from exercise of stock options	155,608	156		4,055		—		—		—	—		4,211
Share-based compensation	—	—		2,745		—		—		—	—		2,745
Purchase of treasury shares	—	—		—		—		—		28,438	(1,456)		(1,456)
Net income	—	—		—		213,289		—		—	—		213,289
Dividends on common shares ($0.30 per share)	—	—		—		(20,971)		—		—	—		(20,971)


Other comprehensive loss during the period	—	—		—		—		(8,481)		—	—		(8,481)
Balance, June 30, 2021	72,007,871	$	72,008	$	1,920,566	$	863,828	$	25,024

Ameris Bancorp [ABCB] Filings
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-28]
10-Q	[2021-11-08]
10-Q	[2021-08-09]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-03-09]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-K	[2019-03-01]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-01]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-02-27]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-09]
10-K	[2016-02-29]
10-Q	[2015-11-09]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-16]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-09]
10-K	[2014-03-14]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-02-27]