Ameris Bancorp

Previous wording

The following is management’s discussion and analysis of certain significant factors which have affected the financial condition and results of operations of the Company as reflected in the unaudited consolidated balance sheet as of March 31, 2024, as compared with December 31, 2023, and operating results for the three-month periods ended March 31, 2024 and 2023. These comments should be read in conjunction with the Company’s unaudited consolidated financial statements and accompanying notes appearing elsewhere herein.

Current wording

The following is management’s discussion and analysis of certain significant factors which have affected the financial condition and results of operations of the Company as reflected in the unaudited consolidated balance sheet as of June 30, 2024, as compared with December 31, 2023, and operating results for the three- and six-month periods ended June 30, 2024 and 2023. These comments should be read in conjunction with the Company’s unaudited consolidated financial statements and accompanying notes appearing elsewhere herein.

Previous wording

Ameris reported net income available to common shareholders of $74.3 million, or $1.08 per diluted share, for the quarter ended March 31, 2024, compared with $60.4 million, or $0.87 per diluted share, for the same period in 2023. The Company’s return on average assets and average shareholders’ equity were 1.18% and 8.63%, respectively, in the first quarter of 2024, compared with 0.98% and 7.54%, respectively, in the first quarter of 2023. During the first quarter of 2024, the Company recorded pre-tax gain on bank owned life insurance (BOLI) proceeds of $998,000 and pre-tax FDIC special assessment of $2.9 million. During the first quarter of 2023, the Company recorded a pre-tax gain on BOLI proceeds of $486,000. Excluding these adjustment items, the Company’s net income would have been $75.6 million, or $1.10 per diluted share, for the first quarter of 2024 and $59.9 million, or $0.86 per diluted share, for the first quarter of 2023.

Current wording

Ameris reported net income available to common shareholders of $90.8 million, or $1.32 per diluted share, for the quarter ended June 30, 2024, compared with $62.6 million, or $0.91 per diluted share, for the same period in 2023. The Company’s return on average assets and average shareholders’ equity were 1.41% and 10.34%, respectively, in the second quarter of 2024, compared with 0.98% and 7.63%, respectively, in the second quarter of 2023. During the second quarter of 2024, the Company a recorded pre-tax gain on sale of mortgage servicing rights (MSR) of $4.7 million, a pre-tax gain on conversion of Visa Class B-1 stock of $12.6 million, a pre-tax gain on bank owned life insurance (BOLI) proceeds of $466,000 and an adjustment related to FDIC special assessment of $895,000. Additionally, the Company recorded $4.8 million of tax expense related to BOLI restructuring during the period. Excluding these adjustment items, the Company’s net income would have been $80.8 million, or $1.17 per diluted share, for the second quarter of 2024 and $62.6 million, or $0.91 per diluted share, for the second quarter of 2023.

Previous wording

Below is additional information regarding the retail banking activities, mortgage banking activities, warehouse lending activities and premium finance activities of the Company during the first quarter of 2024 and 2023, respectively:

Current wording

Below is additional information regarding the retail banking activities, mortgage banking activities, warehouse lending activities and premium finance activities of the Company during the second quarter of 2024 and 2023, respectively:

Previous wording

On a tax-equivalent basis, net interest income for the first quarter of 2024 was $202.3 million, a decrease of $10.2 million, or 4.8%, compared with $212.6 million reported in the same quarter in 2023. The decrease in net interest income is primarily a result of increased cost of funds as market interest rates have risen, partially offset by growth in average earning assets and related rates. Average interest-earning assets increased $277.7 million, or 1.2%, from $22.93 billion in the first quarter of 2023 to $23.21 billion for the first quarter of 2024. This growth in interest-earning assets resulted primarily from organic loan growth, partially offset by paydowns on the securities portfolio. The Company’s net interest margin during the first quarter of 2024 was 3.51%, down 25 basis points from 3.76% reported in the first quarter of 2023. Loan production amounted to $3.9 billion during the first quarter of 2024, with weighted average yields of 7.70%, compared with $3.9 billion and 6.88%, respectively, during the first quarter of 2023.

Current wording

On a tax-equivalent basis, net interest income for the second quarter of 2024 was $212.9 million, an increase of$2.4 million, or 1.14%, compared with $210.5 million reported in the same quarter in 2023. The increase in net interest income is primarily a result of increased yield on loans and investment securities in addition to growth in average earning assets, partially offset by increased cost of funds as market interest rates have risen. Average interest-earning assets increased $433.6 million, or 1.85%, from $23.48 billion in the second quarter of 2023 to $23.92 billion for the second quarter of 2024. This growth in interest-earning assets resulted primarily from organic loan growth. The Company’s net interest margin during the second quarter of 2024 was 3.58%, down two basis points from 3.60% reported in the second quarter of 2023. Loan production amounted to $5.1 billion during the second quarter of 2024, with weighted average yields of 7.45%, compared with $5.3 billion and 7.09%, respectively, during the second quarter of 2023.

Previous wording

Total interest income, on a tax-equivalent basis, increased to $330.4 million during the first quarter of 2024, compared with $296.7 million in the same quarter of 2023. Yields on earning assets increased to 5.73% during the first quarter of 2024, compared with 5.25% reported in the first quarter of 2023. During the first quarter of 2024, loans comprised 88.9% of average earning assets, compared with 88.6% in the same quarter of 2023. Yields on loans increased to 5.92% in the first quarter of 2024, compared with 5.44% in the same period of 2023.

Current wording

Total interest income, on a tax-equivalent basis, increased to $348.3 million during the second quarter of 2024, compared with $322.9 million in the same quarter of 2023. Yields on earning assets increased to 5.86% during the second quarter of 2024, compared with 5.52% reported in the second quarter of 2023. During the second quarter of 2024, loans comprised 89.1% of average earning assets, compared with 88.3% in the same quarter of 2023. Yields on loans increased to 6.00% in the second quarter of 2024, compared with 5.66% in the same period of 2023.

Previous wording

The yield on interest-bearing deposits increased from 1.82% in the first quarter of 2023 to 3.31% in the first quarter of 2024. The yield on total interest-bearing liabilities increased from 2.38% in the first quarter of 2023 to 3.43% in the first quarter of 2024. Total funding costs, inclusive of noninterest-bearing demand deposits, increased to 2.41% in the first quarter of 2024, compared with 1.59% during the first quarter of 2023. Deposit costs increased from 1.13% in the first quarter of 2023 to 2.29% in the first quarter of 2024. Non-deposit funding costs increased from 5.09% in the first quarter of 2023 to 6.04% in the first quarter of 2024.

Current wording

The yield on interest-bearing deposits increased from 2.64% in the second quarter of 2023 to 3.37% in the second quarter of 2024. The yield on total interest-bearing liabilities increased from 2.96% in the second quarter of 2023 to 3.53% in the second quarter of 2024. Total funding costs, inclusive of noninterest-bearing demand deposits, increased to 2.48% in the second quarter of 2024, compared with 2.05% during the second quarter of 2023. Deposit costs increased from 1.76% in the second quarter of 2023 to 2.32% in the second quarter of 2024. Non-deposit funding costs increased from 5.26% in the second quarter of 2023 to 5.77% in the second quarter of 2024.

Previous wording

The Company’s provision for credit losses during the first quarter of 2024 amounted to $21.1 million, compared with $49.7 million in the first quarter of 2023. This increase was attributable to the updated economic forecast and organic loan growth. The provision for credit losses for the first quarter of 2024 was comprised of $25.5 million related to loans, negative $4.4 million related to unfunded commitments and $4,000 related to other credit losses, compared with $49.4 million related to loans, $346,000 related to unfunded commitments and $7,000 related to other credit losses for the first quarter of 2023. Non-performing assets as a percentage of total assets increased two basis points to 0.71% at March 31, 2024, compared with 0.69% at December 31, 2023. The increase in non-performing assets is primarily attributable to an increase in nonaccrual loans of $13.6 million, partially offset by decreases in other real estate owned and accruing loans delinquent 90 days or more of $4.0 million and $1.2 million, respectively. The Company recognized net charge-offs on loans during the first quarter of 2024 of approximately $12.6 million, or 0.25% of average loans on an annualized basis, compared with net charge-offs of approximately $10.7 million, or 0.22%, in the first quarter of 2023. The Company’s total allowance for credit losses on loans at March 31, 2024 was $320.0 million, or 1.55% of total loans, compared with $307.1 million, or 1.52% of total loans, at December 31, 2023. This increase is primarily attributable to updated forecast economic conditions.

Current wording

The Company’s provision for credit losses during the second quarter of 2024 amounted to $18.8 million, compared with $45.5 million in the second quarter of 2023. This decrease was attributable to the updated economic forecast, partially offset by organic loan growth. The provision for credit losses for the second quarter of 2024 was comprised of $25.3 million related to loans, negative $6.6 million related to unfunded commitments and negative $5,000 related to other credit losses, compared with $43.6 million related to loans, $1.9 million related to unfunded commitments and no provision related to other credit losses for the second quarter of 2023. Non-performing assets as a percentage of total assets increased five basis points to 0.74% at June 30, 2024, compared with 0.69% at December 31, 2023. The increase in non-performing assets is primarily attributable to an increase in nonaccrual loans of $28.3 million, partially offset by decreases in other real estate owned and accruing loans delinquent 90 days or more of $4.0 million and $1.1 million, respectively. The Company recognized net charge-offs on loans during the second quarter of 2024 of approximately $9.2 million, or 0.18% of average loans on an annualized basis, compared with net charge-offs of approximately $14.2 million, or 0.28%, in the second quarter of 2023. The Company’s total allowance for credit losses on loans at June 30, 2024 was $336.2 million, or 1.60% of total loans, compared with $307.1 million, or 1.52% of total loans, at December 31, 2023. This increase is primarily attributable to updated forecast economic conditions and organic growth in loans.

Previous wording

Total noninterest income for the first quarter of 2024 was $65.9 million, an increase of $9.8 million, or 17.5%, from the $56.1 million reported in the first quarter of 2023. Income from mortgage banking activities was $39.4 million in the first quarter of 2024, an increase of $8.0 million, or 25.6%, from $31.4 million in the first quarter of 2023. Total production in the first quarter of 2024 amounted to $910.2 million, compared with $946.4 million in the same quarter of 2023, while spread (gain on sale) increased to 2.49% in the current quarter, compared with 1.96% in the same quarter of 2023. The retail mortgage open pipeline finished the first quarter of 2024 at $606.7 million, compared with $400.1 million at December 31, 2023 and $725.9 million at the end of the first quarter of 2023.

Current wording

Total noninterest income for the second quarter of 2024 was $88.7 million, an increase of $21.4 million, or 31.7%, from the $67.3 million reported in the second quarter of 2023. Income from mortgage banking activities was $46.4 million in the second quarter of 2024, an increase of $5.7 million, or 13.9%, from $40.7 million in the second quarter of 2023. Total production in the second quarter of 2024 amounted to $1.33 billion, unchanged from the same quarter of 2023, while gain on sale spread increased to 2.45% in the current quarter, compared with 2.18% in the same quarter of 2023. The retail mortgage open pipeline finished the second quarter of 2024 at $802.2 million, compared with $606.7 million at March 31, 2024 and $652.1 million at the end of the second quarter of 2023.

Previous wording

Income tax expense is influenced by the statutory rate, the amount of taxable income, the amount of tax-exempt income and the amount of nondeductible expenses. For the first quarter of 2024, the Company reported income tax expense of $23.1 million, compared with $18.1 million in the same period of 2023. The Company’s effective tax rate for the three months ended March 31, 2024 and 2023 was 23.7% and 23.1%, respectively.

Current wording

Income tax expense is influenced by the statutory rate, the amount of taxable income, the amount of tax-exempt income and the amount of nondeductible expenses. For the second quarter of 2024, the Company reported income tax expense of $35.7 million, compared with $20.3 million in the same period of 2023. The Company’s effective tax rate for the three months ended June 30, 2024 and 2023 was 28.2% and 24.5%, respectively. The increase in the effective tax rate is primarily a result of a $4.8 million tax expense related to BOLI surrender during the period.

Previous wording

Total noninterest expense for the first quarter of 2024 increased $9.3 million, or 6.7%, to $148.7 million, compared with $139.4 million in the same quarter 2023. Salaries and employee benefits increased $2.0 million, or 2.5%, from $80.9 million in the first quarter of 2023 to $82.9 million in the first quarter of 2024, due primarily to a decrease in deferred origination costs of $974,000 and an increase in share-based compensation of $937,000. Occupancy and equipment expenses decreased $101,000, or 0.8%, to $12.9 million for the first quarter of 2024, compared with $13.0 million in the first quarter of 2023. Data processing and communications expenses increased $1.6 million, or 12.4%, to $14.7 million in the first quarter of 2024, compared with $13.0 million in the first quarter of 2023. Advertising and marketing expense was $2.5 million in the first quarter of 2024, compared with $3.5 million in the first quarter of 2023. This decrease was primarily related to a marketing campaign begun in the second quarter of 2022 which was narrowed in 2024. Amortization of intangible assets decreased $284,000, or 6.0%, from $4.7 million in the first quarter of 2023 to $4.4 million in the first quarter of 2024. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses increased $1.1 million, or 13.3%, from $8.3 million in the first quarter of 2023 to $9.4 million in the first quarter of 2024, primarily attributable to additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $5.9 million, or 37.9%, from $15.5 million in the first quarter of 2023 to $21.4 million in the first quarter of 2024, due primarily to $2.9 million related to the FDIC special assessment and an increase of $3.0 million in tax and license expense.

Current wording

Total noninterest expenses for the six months ended June 30, 2024 increased $16.2 million, or 5.6%, to $304.1 million, compared with $287.8 million in the same period of 2023. Salaries and employee benefits increased $8.9 million, or 5.5%, from $162.2 million in the first six months of 2023 to $171.1 million in the same period of 2024, due primarily to increases in variable compensation related to mortgage production of$1.7 million, health insurance costs of $1.7 million and stock-based compensation of $1.2 million in addition to a reduction in deferred origination costs of $2.0 million. Data processing and communications expenses increased $3.4 million, or 12.7%, to $29.8 million in the first six months of 2024, from $26.5 million reported in the same period of 2023. Amortization of intangible assets decreased $565,000, or 6.0%, from $9.4 million in the first six months of 2023 to $8.8 million in the first six months of 2024. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses increased $2.1 million, or 12.4%, from $17.1 million in the first six months of 2023 to $19.2 million in the same period of 2024, primarily attributable to additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $2.5 million, or 6.3%, from $39.6 million in the first six months of 2023 to $42.1 million in the same period of 2024, due primarily to $2.0 million in FDIC special assessment expenses as well as a $3.5 million increase in business license expense. These increases in other noninterest expenses were partially offset by decreases from the first six months of 2023 in legal and other professional fees of $1.4 million, fraud/forgery losses of $530,000 and other losses of $2.7 million.

Previous wording

Debt securities classified as available-for-sale are recorded at fair value with unrealized holding gains and losses excluded from earnings and reported in accumulated other comprehensive income, net of the related deferred tax effect. Securities available-for-sale may be bought and sold in response to changes in market conditions, including, but not limited to, fluctuations in interest rates, changes in securities' prepayment risk, increases in loan demand, general liquidity needs and positioning the portfolio to take advantage of market conditions that create more economically attractive returns. Debt securities are classified as held-to-maturity based on management's positive intent and ability to hold such securities to maturity and are carried at amortized cost. Restricted equity securities are classified as other investment securities and are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value or cost basis.

Current wording

Debt securities classified as available-for-sale are recorded at fair value with unrealized holding gains and losses excluded from earnings and reported in accumulated other comprehensive income, net of the related deferred tax effect. Securities available-for-sale may be bought and sold in response to changes in market conditions, including, but not limited to, fluctuations in interest rates, changes in securities' prepayment risk, increases in loan demand, general liquidity needs and positioning the portfolio to take advantage of market conditions that create more economically attractive returns. Debt securities which are classified as held-to-maturity are done so based on management's positive intent and ability to hold such securities to maturity and are carried at amortized cost. Restricted equity securities are classified as other investment securities and are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value or cost basis.

Previous wording

Management and the Company’s ALCO Committee evaluate available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation, to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. If credit-related impairment exists, the Company recognizes an allowance for credit losses, limited to the amount by which the fair value is less than the amortized cost basis. Any impairment not recognized through an allowance for credit losses is recognized in other comprehensive income, net of tax, as a non credit-related impairment. The Company does not intend to sell these available-for-sale investment securities at an unrealized loss position at March 31, 2024, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on the results of management's review, at March 31, 2024, management determined that $73,000 was attributable to credit impairment and, accordingly, an allowance for credit losses was established. The remaining $50.1 million in unrealized loss was determined to be from factors other than credit.

Current wording

Management and the Company’s ALCO Committee evaluate available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation, to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If neither of the above criteria is met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. If credit-related impairment exists, the Company recognizes an allowance for credit losses, limited to the amount by which the fair value is less than the amortized cost basis of the security. Any impairment not recognized through an allowance for credit losses is recognized in other comprehensive income, net of tax, as a non credit-related impairment. The Company does not intend to sell these available-for-sale investment securities at an unrealized loss position at June 30, 2024, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on the results of management's review, at June 30, 2024, management determined that $68,000 was attributable to credit impairment and, accordingly, an allowance for credit losses was established. The remaining $48.2 million in unrealized loss was determined to be from factors other than credit.

Previous wording

At March 31, 2024, gross loans outstanding (including loans and loans held for sale) were $20.96 billion, up $414.0 million from $20.55 billion reported at December 31, 2023. Loans increased $331.0 million, or 1.6%, from $20.27 billion at December 31, 2023 to $20.60 billion at March 31, 2024, driven by organic growth. Loans held for sale increased from $281.3 million at December 31, 2023 to $364.3 million at March 31, 2024 primarily in our mortgage division.

Current wording

At June 30, 2024, gross loans outstanding (including loans and loans held for sale) were $21.56 billion, up $1.01 billion from $20.55 billion reported at December 31, 2023. Loans increased $723.3 million, or 3.6%, from $20.27 billion at December 31, 2023 to $20.99 billion at June 30, 2024, driven by organic growth. Loans held for sale increased from $281.3 million at December 31, 2023 to $570.2 million at June 30, 2024 primarily in our mortgage division.

Previous wording

At the end of the first quarter of 2024, the ACL on loans totaled $320.0 million, or 1.55% of loans, compared with $307.1 million, or 1.52% of loans, at December 31, 2023. Our nonaccrual loans increased from $151.1 million at December 31, 2023 to $164.7 million at March 31, 2024. For the first three months of 2024, our net charge off ratio as a percentage of average loans increased to 0.25%, compared with 0.22% for the first three months of 2023. The total provision for credit losses for the first three months of 2024 was $21.1 million, decreasing from a provision of $49.7 million recorded for the first three months of 2023. Our ratio of total nonperforming assets to total assets was up two basis points from 0.69% at December 31, 2023 to 0.71% at March 31, 2024.

Current wording

At the end of the second quarter of 2024, the ACL on loans totaled $336.2 million, or 1.60% of loans, compared with $307.1 million, or 1.52% of loans, at December 31, 2023. Our nonaccrual loans increased from $151.1 million at December 31, 2023 to $179.4 million at June 30, 2024. For the first six months of 2024, our net charge off ratio as a percentage of average loans decreased to 0.21%, compared with 0.25% for the first six months of 2023. The total provision for credit losses for the first six months of 2024 was $39.9 million, decreasing from a provision of $95.2 million recorded for the first six months of 2023. Our ratio of total nonperforming assets to total assets was up five basis points from 0.69% at December 31, 2023 to 0.74% at June 30, 2024.

Previous wording

The following table presents an analysis of the allowance for credit losses on loans, provision for credit losses on loans and net charge-offs as of and for the three months ended March 31, 2024 and 2023:

Current wording

The following table presents an analysis of the allowance for credit losses on loans, provision for credit losses on loans and net charge-offs as of and for the six months ended June 30, 2024 and 2023:

Previous wording

Nonaccrual loans totaled $164.7 million at March 31, 2024, an increase of $13.6 million, or 9.0%, from $151.1 million at December 31, 2023. Accruing loans delinquent 90 days or more totaled $15.8 million at March 31, 2024, a decrease of $1.2 million, or 6.9%, compared with $17.0 million at December 31, 2023. At March 31, 2024, OREO totaled $2.2 million, a decrease of $4.0 million, or 65.2%, compared with $6.2 million at December 31, 2023. Management regularly assesses the valuation of OREO through periodic reappraisal and through inquiries received in the marketing process. At the end of the first quarter of 2024, total non-performing assets as a percent of total assets was up two basis points from 0.69% at December 31, 2023 to 0.71% at March 31, 2024.

Current wording

Nonaccrual loans totaled $179.4 million at June 30, 2024, an increase of $28.3 million, or 18.7%, from $151.1 million at December 31, 2023. Accruing loans delinquent 90 days or more totaled $15.9 million at June 30, 2024, a decrease of $1.1 million, or 6.4%, compared with $17.0 million at December 31, 2023. At June 30, 2024, OREO totaled $2.2 million, a decrease of $4.0 million, or 64.3%, compared with $6.2 million at December 31, 2023. Management regularly assesses the valuation of OREO through periodic reappraisal and through inquiries received in the marketing process. At the end of the second quarter of 2024, total non-performing assets as a percent of total assets was up five basis points from 0.69% at December 31, 2023 to 0.74% at June 30, 2024.

Previous wording

(1)Included in nonaccrual loans were $84.2 million and $90.2 million of serviced GNMA-guaranteed nonaccrual loans at March 31, 2024 and December 31, 2023, respectively.

Current wording

(1)Included in nonaccrual loans were $93.5 million and $90.2 million of serviced GNMA-guaranteed nonaccrual loans at June 30, 2024 and December 31, 2023, respectively.

Previous wording

The federal bank regulatory agencies previously issued interagency guidance on commercial real estate lending and prudent risk management practices. This guidance defines commercial real estate (“CRE”) loans as loans secured by raw land, land development and construction (including one-to-four family residential construction), multi-family property and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property, excluding owner-occupied properties (loans for which 50% or more of the source of repayment is derived from the ongoing operations and activities conducted by the party, or affiliate of the party, who owns the property) or the proceeds of the sale, refinancing or permanent financing of the property. Loans for owner-occupied CRE are generally excluded from the CRE guidance.

Current wording

The federal bank regulatory agencies previously issued interagency guidance on commercial real estate lending and prudent risk management practices. This guidance defines CRE loans as loans secured by raw land, land development and construction (including one-to-four family residential construction), multi-family property and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property, excluding owner-occupied properties (loans for which 50% or more of the source of repayment is derived from the ongoing operations and activities conducted by the party, or affiliate of the party, who owns the property) or the proceeds of the sale, refinancing or permanent financing of the property. Loans for owner-occupied CRE are generally excluded from the CRE guidance.

Previous wording

The Company has forward contracts and IRLCs to economically hedge changes in the value of the mortgage inventory due to changes in market interest rates. The fair value of these instruments amounted to an asset of $5.8 million and $3.6 million at March 31, 2024 and December 31, 2023, respectively, and a liability of $1.0 million and $5.8 million at March 31, 2024 and December 31, 2023, respectively. The Company also enters into interest rate derivative agreements to facilitate the risk management strategies of certain clients. The Company mitigates this risk by entering into equal and offsetting interest rate derivative agreements with highly rated third-party financial institutions. The fair value of these instruments amounted to an asset of $10.0 million and $5.9 million at March 31, 2024 and December 31, 2023, respectively, and a liability of $10.1 million and $6.2 million at March 31, 2024 and December 31, 2023, respectively.

Current wording

The Company has forward contracts and IRLCs to economically hedge changes in the value of the mortgage inventory due to changes in market interest rates. The fair value of these instruments amounted to an asset of $5.3 million and $3.6 million at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024 there was no liability balance recorded. At December 31, 2023 a liability balance of $5.8 million was recorded. The Company also enters into interest rate derivative agreements to facilitate the risk management strategies of certain clients. The Company mitigates this risk by entering into equal and offsetting interest rate derivative agreements with highly rated third-party financial institutions. The fair value of these instruments amounted to an asset of $10.3 million and $5.9 million at June 30, 2024 and December 31, 2023, respectively, and a liability of $10.4 million and $6.2 million at June 30, 2024 and December 31, 2023, respectively.

Previous wording

Total deposits at the Company increased $288.9 million, or 1.4%, to $21.00 billion at March 31, 2024, compared with $20.71 billion at December 31, 2023. Noninterest-bearing deposits increased $46.7 million, or 0.7%, and interest-bearing deposits increased $242.2 million, or 1.7%, during the first three months of 2024. At March 31, 2024, the Company had approximately $1.24 billion in short-term brokered CDs, compared with $1.14 billion at December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company had estimated uninsured deposits of $9.08 billion and $9.13 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $2.93 billion, or 32.2%, of the uninsured deposits at March 31, 2024 were for municipalities which are collateralized with investment securities or letters of credit.

Current wording

Total deposits at the Company increased $735.6 million, or 3.6%, to $21.44 billion at June 30, 2024, compared with $20.71 billion at December 31, 2023. Noninterest-bearing deposits increased $157.6 million, or 2.4%, and interest-bearing deposits increased $578.1 million, or 4.1%, during the first six months of 2024. At June 30, 2024, the Company had approximately $1.23 billion in short-term brokered CDs, compared with $1.14 billion at December 31, 2023. As of June 30, 2024 and December 31, 2023, the Company had estimated uninsured deposits of $9.46 billion and $9.13 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $2.89 billion, or 30.5%, of the uninsured deposits at June 30, 2024 were for municipalities which are collateralized with investment securities or letters of credit.

Previous wording

On September 19, 2019, the Company announced that its Board of Directors authorized the Company to repurchase up to $100.0 million of its outstanding common stock through October 31, 2020. The Board has subsequently extended the share repurchase program each year since that original authorization, with the most recent extension, which also included the replenishment of the program to $100.0 million, being announced on October 26, 2023. As a result, the Company is currently authorized to engage in additional share repurchases up to $100.0 million through October 31, 2024. Repurchases of shares must be made in accordance with applicable securities laws and may be made from time to time in the open market or by negotiated transactions. The amount and timing of repurchases will be based on a variety of factors, including share acquisition price, regulatory limitations and other market and economic factors. The program does not require the Company to repurchase any specific number of shares. As of March 31, 2024, an aggregate of $5.3 million, or 131,574 shares of the Company's common stock, had been repurchased under the program's October 26, 2023 renewal, which also included the replenishment of the program to $100.0 million.

Current wording

On September 19, 2019, the Company announced that its Board of Directors authorized the Company to repurchase up to $100.0 million of its outstanding common stock through October 31, 2020. The Board has subsequently extended the share repurchase program each year since that original authorization, with the most recent extension, which also included the replenishment of the program to $100.0 million, being announced on October 26, 2023. As a result, the Company is currently authorized to engage in additional share repurchases up to $100.0 million through October 31, 2024. Repurchases of shares must be made in accordance with applicable securities laws and may be made from time to time in the open market or by negotiated transactions. The amount and timing of repurchases will be based on a variety of factors, including share acquisition price, regulatory limitations and other market and economic factors. The program does not require the Company to repurchase any specific number of shares. As of June 30, 2024, an aggregate of $8.3 million, or 194,274 shares of the Company's common stock, had been repurchased under the program's October 26, 2023 renewal, which also included the replenishment of the program to $100.0 million.

Previous wording

Company’s other borrowings was $631.4 million and $509.6 million, respectively. At March 31, 2024, the Company had availability with the FHLB and FRB Discount Window of $4.15 billion and $2.63 billion, respectively.

Current wording

Company’s other borrowings was $946.4 million and $509.6 million, respectively. At June 30, 2024, the Company had availability with the FHLB and FRB Discount Window of $3.88 billion and $2.61 billion, respectively.