Ameris Bancorp
For the period ended Mar 31, 2025. Filed May 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
ABCB$81.79+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0000351569-24-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000351569-25-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 85 current paragraphs.
61 unchanged; 21 reworded; 3 added; 27 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Service charges on deposit accounts increased $1.4 million, or 11.7%, to $13.1 million in the first quarter of 2025, compared with $11.8 million in the first quarter of 2024. The increase in service charges on deposit accounts was primarily attributable to increases in both debit card and commercial account fee income. Income from equipment finance activity increased$1.4 million, or 25.5%, to$6.7 million for the first quarter of 2025, compared with$5.3 million during the first quarter of 2024. The increase in equipment finance activity was primarily related to increased non-insurance charges and gain on sale of leased equipment. Other noninterest income decreased $369,000, or 4.5%, to $7.8 million for the first quarter of 2025, compared with $8.2 million during the first quarter of 2024. The decrease in other noninterest income was primarily attributable to a decline inderivative income of $615,000 and gain on BOLI proceeds of $986,000, partially offset byincreases in BOLI income of $731,000, commercial card interchange income of $258,000 and in gain on sale of SBA loans of $303,000.
Current report
Investor CRE, which includes multifamily residential and non-owner occupied CRE loans, has several dynamics which individually, or in combination, pose potential challenges to the portfolio. These include levels of interest rates above those at origination for loan renewals and changes to occupancy rates as firms reevaluate space needs in light of factors such as the expansion of hybrid and remote work. The primary repayment source for these loans is cash flows from the securing property. The Company in the normal course performs periodic evaluations of its portfolio for continued soundness and appropriate risk ratings. These reviews include evaluation of current financials, stressed cash flows at increased interest rates and evaluation of property values at various occupancy levels and cap rates. The Company's Investor CRE portfolio continues to perform favorably with modest levels of past-due loans, such that past-due loans represented approximately five basis points of Investor CRE loans at March 31, 2025.
Current report
The Company's multifamily residential portfolio is diversified geographically with the majority residing within our five-state footprint. Below is a summary of the multifamily residential portfolio by significant MSAs or state as of March 31, 2025 and December 31, 2024:
Removed paragraphs (27)
Previous report
This discussion contains certain performance measures determined by methods other than in accordance with GAAP. Management of the Company uses these non-GAAP measures in its analysis of the Company’s performance. These measures are useful when evaluating the underlying performance and efficiency of the Company’s operations and balance sheet. The Company’s management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company’s management believes that investors may use these non-GAAP financial measures to evaluate the Company’s financial performance without the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Non-GAAP measures include adjusted net income and adjusted net income per diluted share. The Company calculates the regulatory capital ratios using current regulatory report instructions. The Company’s management uses these measures to assess the quality of capital and believes that investors may find them useful in their evaluation of the Company. These capital measures may or may not be necessarily comparable to similar capital measures that may be presented by other companies.
Previous report
Below is a reconciliation of adjusted net income to net income, as discussed above:
Previous report
Service charges on deposit accounts increased $826,000, or 6.8%, to $12.9 million in the third quarter of 2024, compared with $12.1 million in the third quarter of 2023. Net loss on securities improved to $8,000 in the third quarter of 2024, compared with $16,000 in the third quarter of 2023. Other noninterest income increased $4.1 million, or 30.1%, to $17.7 million for the third quarter of 2024, compared with $13.6 million during the third quarter of 2023. The increase in other noninterest income was primarily attributable to a gain on sale of mortgage servicing rights of $5.2 million and an increase in BOLI income of $1.5 million, partially offset by a decline infee income in our equipment finance division and derivative income of $1.6 million and $718,000, respectively.
Previous report
Consolidated Earnings and Profitability
Previous report
Ameris reported net income available to common shareholders of $264.3 million, or $3.83 per diluted share, for the nine months ended September 30, 2024, compared with $203.2 million, or $2.94 per diluted share, for the same period in 2023. The Company’s return on average assets and average shareholders’ equity were 1.36% and 9.98%, respectively, in the nine months ended September 30, 2024, compared with 1.07% and 8.26%, respectively, in the same period in 2023. During the first nine months of 2024, the Company recorded a pre-tax gain on conversion of its Visa Class B-1 stock of $12.6 million, a pre-tax gain on sale of mortgage servicing rights of $10.0 million, a pre-tax FDIC special assessment of $2.0 million, a pre-tax gain on BOLI proceeds of $1.5 million, a pre-tax natural disaster expense of $150,000 and a $4.8 million expense related to the termination of certain BOLI policies during the quarter, the proceeds of which the Company will reinvest in higher yielding policies. During the first nine months of 2023, the Company recorded pre-tax gain on BOLI proceeds of $486,000. Excluding these adjustment items, the Company’s net income would have been $251.6 million, or $3.64 per diluted share, for the nine months ended September 30, 2024 and $202.7 million, or $2.93 per diluted share, for the same period in 2023.
Previous report
Below is a reconciliation of adjusted net income to net income, as discussed above.
Previous report
Below is additional information regarding the retail banking activities, mortgage banking activities, warehouse lending activities and premium finance activities of the Company during the nine months ended September 30, 2024 and 2023, respectively:
Previous report
Net Interest Income and Margins
Previous report
On a tax-equivalent basis, net interest income for the nine months ended September 30, 2024 was $630.2 million, a decrease of $1.5 million, or 0.24%, compared with $631.8 million reported in the same period of 2023. The lower net interest income is a result of increased yield on interest-bearing deposits and a shift in deposit mix as interest rates have risen, partially offset bygrowth in average earning assets and increased associated market rates. Average interest earning assets increased $564.1 million, or 2.42%, from $23.27 billion in the first nine months of 2023 to $23.83 billion for the first nine months of 2024. This growth in interest earning assets resulted primarily from organic growth in average loans, partially offset by paydowns on the securities portfolio and average loans held for sale. The Company’s net interest margin during the first nine months of 2024 was 3.53%, down 10 basis points from 3.63% reported for the first nine months of 2023. Loan production amounted to $14.1 billion during the first nine months of 2024, with weighted average yields of 7.54%, compared with $14.0 billion and 7.19%, respectively, during the first nine months of 2023.
Previous report
Total interest income, on a tax-equivalent basis, increased to $1.03 billion during the nine months ended September 30, 2024, compared with $951.1 million in the same period of 2023. Yields on earning assets increased to 5.80% during the first nine months of 2024, compared with 5.46% reported in the same period of 2023. During the first nine months of 2024, loans comprised 88.9% of average earning assets, compared with 88.7% in the same period of 2023. Yields on loans increased to 5.97% during the nine months ended September 30, 2024, compared with 5.64% in the same period of 2023.
Previous report
The yield on total interest-bearing liabilities increased from 2.86% during the nine months ended September 30, 2023 to 3.51% in the same period of 2024. Total funding costs, inclusive of noninterest-bearing demand deposits, increased to 2.46% in the first nine months of 2024, compared with 1.96% during the same period of 2023. Deposit costs increased from 1.65% in the first nine months of 2023 to 2.33% in the same period of 2024. Non-deposit funding costs increased from 5.29% in the first nine months of 2023 to 5.84% in the same period of 2024.
Previous report
Provision for Credit Losses
Previous report
The Company’s provision for credit losses during the nine months ended September 30, 2024 amounted to $46.0 million, compared with $119.7 million in the nine months ended September 30, 2023. This decrease was primarily attributable to the updated economic forecast during the first nine months of 2024, partially offset by organic loan growth. The provision for credit losses for the first nine months of 2024 was comprised of $57.2 million related to loans, negative $11.2 million related to unfunded commitments and negative $3,000 related to other credit losses, compared with $123.1 million related to loans, negative $3.4 million related to unfunded commitments and $5,000 related to other credit losses for the same period in 2023. Non-performing assets as a percentage of total assets decreased from 0.69% at December 31, 2023 to 0.44% at September 30, 2024. The decrease in non-performing assets is primarily attributable to a decrease in nonaccrual loans of $55.6 million and a decrease in accruing loans delinquent 90 days or more of $4.8 million, partially offset by an increase in other real estate owned of $3.3 million. The decrease in nonaccrual loans primarily resulted from a sale of MSRs which reduced exposure to GNMA nonaccrual loans from $90.2 million at December 31, 2023 to $8.2 million at September 30, 2024, partially offset by portfolio loans moved to nonaccrual during the year-to-date period. Net charge-offs on loans during the first nine months of 2024 were $29.8 million, or 0.19% of average loans on an annualized basis, compared with approximately $37.0 million, or 0.25%, in the first nine months of 2023. The Company’s total allowance for credit losses on loans at September 30, 2024 was $334.5 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 organic growth in loans and the updated economic forecast.
Previous report
Noninterest Income
Previous report
Total noninterest income for the nine months ended September 30, 2024 was $224.3 million, an increase of $37.7 million, or 20.2%, from the $186.6 million reported for the nine months ended September 30, 2023. Income from mortgage banking activities increased $15.4 million, or 14.2%, from $108.4 million in the first nine months of 2023 to $123.8 million in the same period of 2024. Total production in the first nine months of 2024 amounted to $3.39 billion, compared with $3.45 billion in the same period of 2023, while gain on sale spread increased to 2.37% during the nine months ended September 30, 2024, compared with 2.11% in the same period of 2023. The retail mortgage open pipeline was $813.7 million at September 30, 2024, compared with $400.1 million at December 31, 2023 and $623.9 million at September 30, 2023.
Previous report
Net gain on securities increased to $12.3 million for the nine months ended September 30, 2024, compared with a loss of $16,000 for the nine months ended September 30, 2023. This increase was primarily due to the conversion of Visa Class B-1 stock resulting in a gain of $12.6 million and related realized gain (loss) on subsequent sales and mark-to-market adjustments post-conversion. Other noninterest income increased $6.6 million, or 16.2%, to $47.3 million for the first nine months of 2024, compared with $40.7 million during the same period of 2023. The increase in other noninterest income was primarily attributable to a gain on sale of mortgage servicing rights of $10.0 million and an increase in BOLI income of $1.7 million, partially offset by declines in derivative fee income, fee income in our equipment finance division andgain on sale of SBA loans of $2.4 million,$1.9 million and $914,000, respectively.
Previous report
Noninterest Expense
Previous report
Total noninterest expenses for the nine months ended September 30, 2024 increased $26.6 million, or 6.2%, to $455.8 million, compared with $429.3 million in the same period of 2023. Salaries and employee benefits increased $15.7 million, or 6.4%, from $244.1 million in the first nine months of 2023 to $259.8 million in the same period of 2024, due primarily to increases in health insurance costs, variable compensation related to mortgage production, and stock-based compensation related to performance awards, in addition to a reduction in deferred origination costs. Data processing and communications expenses increased $5.6 million, or 14.2%, to $45.1 million in the first nine months of 2024, from $39.5 million reported in the same period of 2023. Amortization of intangible assets decreased $810,000, or 5.9%, from $13.8 million in the first nine months of 2023 to $13.0 million in the first nine months of 2024. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses increased $1.5 million, or 5.6%, from $26.4 million in the first nine months of 2023 to $27.9 million in the same period of 2024, primarily attributable to additional mortgage loans serviced added from mortgage production over the previous year, partially offset by reductions from sales of MSRs. Other noninterest expenses increased $3.1 million, or 5.3%, from $58.4 million in the first nine months of 2023 to $61.5 million in the same period of 2024, due primarily to $2.0 million in FDIC special assessment expenses as well as a $4.1 million increase in business license expense. These increases in other noninterest expenses were partially offset by decreases from the first nine months of 2023 in fraud/forgery and other losses of $4.6 million and legal and other professional fees of $792,000.
Previous report
Income Taxes
Previous report
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 September 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 September 30, 2024, management determined that $66,000 was attributable to credit impairment and, accordingly, an allowance for credit losses was established. The remaining $24.4 million in unrealized loss was determined to be from factors other than credit.
Previous report
The Company's held-to-maturity securities have no expected credit losses, and no related allowance for credit losses has been established.
Previous report
The Company regularly monitors the composition of the loan portfolio to evaluate the adequacy of the allowance for credit losses ("ACL") on loans in light of the impact that changes in the economic environment may have on the loan portfolio. The Company focuses on the following loan categories: (1) commercial, financial and agricultural; (2) consumer; (3) indirect automobile; (4) mortgage warehouse; (5) municipal; (6) premium finance; (7) construction and development related real estate; (8) commercial and farmland real estate; and (9) residential real estate. The Company’s management has strategically located its branches in select markets in Georgia, Alabama, Florida, North Carolina and South Carolina to take advantage of the growth in these areas.
Previous report
The Company’s risk management processes include a loan review program designed to evaluate the credit risk in the loan portfolio and ensure credit grade accuracy. Through the loan review process, the Company conducts (1) a loan portfolio summary analysis, (2) charge-off and recovery analysis, (3) trends in accruing problem loan analysis, and (4) problem and past-due loan analysis. This analysis process serves as a tool to assist management in assessing the overall quality of the loan portfolio and the adequacy of the ACL. Loans classified as “substandard” are loans which are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses and/or questionable collateral values. Loans classified as “doubtful” are those loans that have characteristics similar to substandard loans but have an increased risk of loss. Loans classified as “loss” are those loans which are considered uncollectible and are in the process of being charged off.
Previous report
The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.
Previous report
Expected credit losses are reflected in the ACL through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received.
Previous report
The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company currently uses the DCF method or the PD×LGD method which may be adjusted for qualitative factors.
Previous report
The Company’s methodologies for estimating the ACL consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company’s methodologies revert back to historical loss information on a straight-line basis over four quarters when the Company can no longer develop reasonable and supportable forecasts.
Reworded paragraphs (21)
Previous wording
All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “predict,” “could,” “intend,” “target,” “potential” and other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin; expectations on credit quality and performance; competitive pressures on product pricing and services; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy; investment security valuation and other performance measures; additional competition in our markets; changes in state and federal banking laws and regulations to which we are subject; financial market conditions and the results of financing efforts; the success and timing of other business strategies; our outlook and long-term goals for future growth; weather events, natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control; and other factors discussed in our filings with the Securities and Exchange Commission (the “SEC”) under the Exchange Act.
Current wording
All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “predict,” “could,” “intend,” “target,” “potential” and other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness and payment behaviors of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government trade, monetary and fiscal policies, including tariffs; competitive pressures on product pricing and services; fraud, theft or other misconduct impacting our customers or operations; cybersecurity risks, including data breaches, malware, ransomware and account takeover; the success and timing of our business strategies and plans; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control; and other factors discussed in our filings with the Securities and Exchange Commission (the “SEC”) under the Exchange Act.
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 September 30, 2024, as compared with December 31, 2023, and operating results for the three and nine month periods ended September 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.
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 March 31, 2025, as compared with December 31, 2024, and operating results for the three month periods ended March 31, 2025 and 2024. 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 $99.2 million, or $1.44 per diluted share, for the quarter ended September 30, 2024, compared with $80.1 million, or $1.16 per diluted share, for the same period in 2023. The Company’s return on average assets and average shareholders’ equity were 1.49% and 10.91%, respectively, in the third quarter of 2024, compared with 1.25% and 9.56%, respectively, in the third quarter of 2023. During the third quarter of 2024, the Company a recorded pre-tax gain on sale of mortgage servicing rights of $5.2 million and an expense related to natural disasters of $150,000. Excluding these adjustment items, the Company’s net income would have been $95.2 million, or $1.38 per diluted share, for the third quarter of 2024 and $80.1 million, or $1.16 per diluted share, for the third quarter of 2023.
Current wording
Ameris reported net income available to common shareholders of $87.9 million, or $1.27 per diluted share, for the quarter ended March 31, 2025, compared with $74.3 million, or $1.08 per diluted share, for the same period in 2024. The Company’s return on average assets and average shareholders’ equity were 1.36% and 9.39%, respectively, in the first quarter of 2025, compared with 1.18% and 8.63%, respectively, in the first quarter of 2024.
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 third quarter of 2024 and 2023, respectively:
Current wording
Below is additional information regarding the banking, retail mortgage, warehouse lending and premium finance divisions of the Company during the first quarter of 2025 and 2024, respectively:
Previous wording
On a tax-equivalent basis, net interest income for the third quarter of 2024 was $215.0 million, an increase of$6.3 million, or 3.03%, compared with $208.7 million reported in the same quarter in 2023. The increase in net interest income is primarily a result of increased yield on loans and interest-bearing deposits in other banks 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 $980.1 million, or 4.19%, from $23.39 billion in the third quarter of 2023 to $24.37 billion for the third quarter of 2024. This growth in interest-earning assets resulted primarily from organic loan growth. The Company’s net interest margin during the third quarter of 2024 was 3.51%, down three basis points from 3.54% reported in the third quarter of 2023. Loan production amounted to $5.1 billion during the third quarter of 2024, with weighted average yields of 7.52%, compared with $4.8 billion and 7.56%, respectively, during the third quarter of 2023.
Current wording
On a tax-equivalent basis, net interest income for the first quarter of 2025 was $222.8 million, an increase of$20.4 million, or 10.10%, compared with $202.3 million reported in the same quarter in 2024. The increase in net interest income is primarily a result of downward pricing adjustments on deposits as market rates decreased, in addition to growth in average earning assets, partially offset by a decrease in asset yields. Average interest-earning assets increased $997.2 million, or 4.30%, from $23.21 billion in the first quarter of 2024 to $24.21 billion for the first quarter of 2025. This growth in interest-earning assets resulted primarily from organic loan growth and increased investment in our bond portfolio. The Company’s net interest margin during the first quarter of 2025 was 3.73%, up 22 basis points from 3.51% reported in the first quarter of 2024. Loan production amounted to $4.1 billion during the first quarter of 2025, with weighted average yields of 6.86%, compared with $3.9 billion and 7.70%, respectively, during the first quarter of 2024.
Previous wording
Total interest income, on a tax-equivalent basis, increased to $356.1 million during the third quarter of 2024, compared with $331.5 million in the same quarter of 2023. Yields on earning assets increased to 5.81% during the third quarter of 2024, compared with 5.62% reported in the third quarter of 2023. During the third quarter of 2024, loans comprised 88.6% of average earning assets, compared with 89.1% in the same quarter of 2023. Yields on loans increased to 6.01% in the third quarter of 2024, compared with 5.81% in the same period of 2023.
Current wording
Total interest income, on a tax-equivalent basis, increased to $334.7 million during the first quarter of 2025, compared with $330.4 million in the same quarter of 2024. Yields on earning assets increased to 5.61% during the first quarter of 2025, compared with 5.73% reported in the first quarter of 2024. During the first quarter of 2025, loans comprised 87.5% of average earning assets, compared with 88.9% in the same quarter of 2024. Yields on loans decreased to 5.82% in the first quarter of 2025, compared with 5.92% in the same period of 2024.
Previous wording
The yield on interest-bearing deposits increased from 2.97% in the third quarter of 2023 to 3.44% in the third quarter of 2024. The yield on total interest-bearing liabilities increased from 3.22% in the third quarter of 2023 to 3.55% in the third quarter of 2024. Total funding costs, inclusive of noninterest-bearing demand deposits, increased to 2.50% in the third quarter of 2024, compared with 2.24% during the third quarter of 2023. Deposit costs increased from 2.00% in the third quarter of 2023 to 2.39% in the third quarter of 2024. Non-deposit funding costs increased from 5.67% in the third quarter of 2023 to 5.75% in the third quarter of 2024.
Current wording
The yield on interest-bearing deposits decreased from 3.31% in the first quarter of 2024 to 2.83% in the first quarter of 2025. The yield on total interest-bearing liabilities decreased from 3.43% in the first quarter of 2024 to 2.92% in the first quarter of 2025. Total funding costs, inclusive of noninterest-bearing demand deposits, decreased to 2.06% in the first quarter of 2025, compared with 2.41% during the first quarter of 2024. Deposit costs decreased from 2.29% in the first quarter of 2024 to 1.98% in the first quarter of 2025. Non-deposit funding costs decreased from 6.04% in the first quarter of 2024 to 5.73% in the first quarter of 2025.
Previous wording
The Company’s provision for credit losses during the third quarter of 2024 amounted to $6.1 million, compared with $24.5 million in the third quarter of 2023. This decrease was attributable to the updated economic forecast, partially offset by loan mix changes. The provision for credit losses for the third quarter of 2024 was comprised of $6.3 million related to loans, negative $204,000 related to unfunded commitments and negative $2,000 related to other credit losses, compared with $30.1 million related to loans, negative $5.6 million related to unfunded commitments and negative $2,000 provision related to other credit losses for the third quarter of 2023. Non-performing assets as a percentage of total assets decreased 25 basis points to 0.44% at September 30, 2024, compared with 0.69% at December 31, 2023. The decrease in non-performing assets is primarily attributable to decreases in nonaccrual loans of $55.6 million and accruing loans delinquent 90 days or more of $4.8 million, partially offset by an increase in other real estate owned of $3.3 million. The decrease in nonaccrual loans primarily resulted from a sale of MSRs which reduced exposure to GNMA nonaccrual loans from $90.2 million at December 31, 2023 to $8.2 million at September 30, 2024, partially offset by portfolio loans moved to nonaccrual during the year-to-date period. The Company recognized net charge-offs on loans during the third quarter of 2024 of approximately $8.1 million, or 0.15% of average loans on an annualized basis, compared with net charge-offs of approximately $12.1 million, or 0.23%, in the third quarter of 2023. The Company’s total allowance for credit losses on loans at September 30, 2024 was $334.5 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 organic growth in loans and the updated economic forecast.
Current wording
The Company’s provision for credit losses during the first quarter of 2025 amounted to $21.9 million, compared with $21.1 million in the first quarter of 2024. The provision for credit losses for the first quarter of 2025 was comprised of $16.5 million related to loans and $5.4 million related to unfunded commitments, compared with $25.5 million related to loans, negative $4.4 million related to unfunded commitments and $4,000 provision related to other credit losses for the first quarter of 2024. The increase in the provision for unfunded commitments is primarily attributable to the updated economic forecast and funding rates used in the model. Non-performing assets as a percentage of total assets decreased three basis points to 0.44% at March 31, 2025, compared with 0.47% at December 31, 2024. The decrease in non-performing assets is primarily attributable to decreases in nonaccrual loans of $2.5 million, accruing loans delinquent 90 days or more of $2.8 million and other real estate owned of $1.6 million. The Company recognized net charge-offs on loans during the first quarter of 2025 of approximately $9.0 million, or 0.18% of average loans on an annualized basis, compared with net charge-offs of approximately $12.6 million, or 0.25%, in the first quarter of 2024. The Company’s total allowance for credit losses on loans at March 31, 2025 was $345.6 million, or 1.67% of total loans, compared with $338.1 million, or 1.63% of total loans, at December 31, 2024. This increase is primarily attributable to the updated economic forecast.
Previous wording
Total noninterest income for the third quarter of 2024 was $69.7 million, an increase of $6.5 million, or 10.3%, from the $63.2 million reported in the third quarter of 2023. Income from mortgage banking activities was $37.9 million in the third quarter of 2024, an increase of $1.7 million, or 4.6%, from $36.3 million in the third quarter of 2023. Total production in the third quarter of 2024 amounted to $1.16 billion, compared with $1.18 billion in the same quarter of 2023, while gain on sale spread increased to 2.17% in the current quarter, compared with 2.15% in the same quarter of 2023. The retail mortgage open pipeline finished the third quarter of 2024 at $813.7 million, compared with $802.2 million at June 30, 2024 and $623.9 million at the end of the third quarter of 2023.
Current wording
Total noninterest income for the first quarter of 2025 was $64.0 million, a decrease of $1.9 million, or 2.8%, from the $65.9 million reported in the first quarter of 2024. Income from mortgage banking activities was $35.3 million in the first quarter of 2025, a decrease of $4.2 million, or 10.6%, from $39.4 million in the first quarter of 2024. Total production in the first quarter of 2025 amounted to $933.0 million, compared with $910.2 million in the same quarter of 2024, while gain on sale spread decreased to 2.17% in the current quarter, compared with 2.49% in the same quarter of 2024. The retail mortgage open pipeline finished the first quarter of 2025 at $771.6 million, compared with $638.5 million at December 31, 2024 and $606.7 million at the end of the first quarter of 2024.
Previous wording
Total noninterest expense for the third quarter of 2024 increased $10.3 million, or 7.3%, to $151.8 million, compared with $141.4 million in the same quarter 2023. Salaries and employee benefits increased $6.8 million, or 8.3%, from $81.9 million in the third quarter of 2023 to $88.7 million in the third quarter of 2024, due primarily to increases in health insurance cost, annual merit increases andvariable compensation related to mortgage production. Data processing and communications expenses increased $2.2 million, or 17.3%, to $15.2 million in the third quarter of 2024, compared with $13.0 million in the third quarter of 2023. Advertising and marketing expense was $4.1 million in the third quarter of 2024, compared with $2.7 million in the third quarter of 2023, with the increase primarily due to a new deposit marketing campaign initiated in the second quarter of 2024. Amortization of intangible assets decreased $245,000, or 5.5%, from $4.4 million in the third quarter of 2023 to $4.2 million in the third quarter of 2024. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses decreased $664,000, or 7.1%, from $9.3 million in the third quarter of 2023 to $8.6 million in the third quarter of 2024, primarily attributable to the sale of mortgage servicing rights in the second and third quarters of 2024 partially offset by additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $603,000, or 3.2%, from $18.8 million in the third quarter of 2023 to $19.4 million in the third quarter of 2024, due primarily to an increase in legal and other professional fees of $601,000.
Current wording
Total noninterest expense for the first quarter of 2025 increased $2.3 million, or 1.6%, to $151.0 million, compared with $148.7 million in the same quarter 2024. Salaries and employee benefits increased $3.7 million, or 4.4%, from $82.9 million in the first quarter of 2024 to $86.6 million in the first quarter of 2025, due primarily to increases in health insurance cost and annual merit increases. Occupancy and equipment expenses decreased$2.2 million, or 17.1%, to$10.7 million in the first quarter of 2025, compared with $12.9 million in the first quarter of 2024, with the decrease primarily related to both building rent and repairs and maintenance. Advertising and marketing expense was $2.9 million in the first quarter of 2025, compared with $2.5 million in the first quarter of 2024, with the increase primarily due to a new deposit marketing campaign initiated in the second quarter of 2024. Amortization of intangible assets decreased $319,000, or 7.2%, from $4.4 million in the first quarter of 2024 to $4.1 million in the first quarter of 2025. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses decreased $1.6 million, or 17.1%, from $9.4 million in the first quarter of 2024 to $7.8 million in the first quarter of 2025, primarily attributable to the sale of mortgage servicing rights in the second and third quarters of 2024, partially offset by additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $1.9 million, or 8.8%, from $21.4 million in the first quarter of 2024 to $23.3 million in the first quarter of 2025, due primarily to an increase in donations of $3.6 million and a decrease in deferred origination costs of $2.0 million, partially offset by a decrease in FDIC insurance of $3.4 million.
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 third quarter of 2024, the Company reported income tax expense of $26.7 million, compared with $24.9 million in the same period of 2023. The Company’s effective tax rate for the three months ended September 30, 2024 and 2023 was 21.2% and 23.7%, respectively. The decrease in the effective rate for the three months ended September 30, 2024 is primarily related to a favorable return-to-provision adjustment resulting from reduced state apportionment.
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 first quarter of 2025, the Company reported income tax expense of $25.0 million, compared with $23.1 million in the same period of 2024. The Company’s effective tax rate for the three months ended March 31, 2025 and 2024 was 22.1% and 23.7%, respectively. The decrease in the effective rate for the three months ended March 31, 2025 is primarily related to reduced state apportionment and an increase in tax credits.
Previous wording
At September 30, 2024, gross loans outstanding (including loans and loans held for sale) were $21.52 billion, up $967.7 million from $20.55 billion reported at December 31, 2023. Loans increased $695.7 million, or 3.4%, from $20.27 billion at December 31, 2023 to $20.96 billion at September 30, 2024, driven by organic growth. Loans held for sale increased from $281.3 million at December 31, 2023 to $553.4 million at September 30, 2024 primarily in our mortgage division.
Current wording
At March 31, 2025, gross loans outstanding (including loans and loans held for sale) were $21.25 billion, minimally changed from $21.27 billion reported at December 31, 2024. Loans decreased $33.3 million, or 0.2%, from $20.74 billion at December 31, 2024 to $20.71 billion at March 31, 2025. Loans held for sale increased from $528.6 million at December 31, 2024 to $545.4 million at March 31, 2025 primarily in our mortgage division.
Previous wording
At the end of the third quarter of 2024, the ACL on loans totaled $334.5 million, or 1.60% of loans, compared with $307.1 million, or 1.52% of loans, at December 31, 2023. Our nonaccrual loans decreased from $151.1 million at December 31, 2023 to $95.5 million at September 30, 2024. For the first nine months of 2024, our net charge off ratio as a percentage of average loans decreased to 0.19%, compared with 0.25% for the first nine months of 2023. The total provision for credit losses for the first nine months of 2024 was $46.0 million, decreasing from a provision of $119.7 million recorded for the first nine months of 2023. Our ratio of total nonperforming assets to total assets was down 25 basis points from 0.69% at December 31, 2023 to 0.44% at September 30, 2024.
Current wording
At the end of the first quarter of 2025, the ACL on loans totaled $345.6 million, or 1.67% of loans, compared with $338.1 million, or 1.63% of loans, at December 31, 2024. Our nonaccrual loans decreased from $102.2 million at December 31, 2024 to $99.7 million at March 31, 2025. For the first three months of 2025, our net charge off ratio as a percentage of average loans decreased to 0.18%, compared with 0.25% for the first three months of 2024. The total provision for credit losses for the first three months of 2025 was $21.9 million, compared with a provision of $21.1 million recorded for the first three months of 2024. Our ratio of total nonperforming assets to total assets was down three basis points from 0.47% at December 31, 2024 to 0.44% at March 31, 2025.
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 nine months ended September 30, 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 three months ended March 31, 2025 and 2024:
Previous wording
The Company's non-owner occupied portfolio is well diversified. Below is a summary of the non-owner occupied CRE portfolio by property type as of September 30, 2024 and December 31, 2023:
Current wording
The Company's non-owner occupied portfolio is well diversified. Below is a summary of the non-owner occupied CRE portfolio by property type and significant MSAs or state as of March 31, 2025 and December 31, 2024:
Previous wording
Nonaccrual loans totaled $95.5 million at September 30, 2024, a decrease of $55.6 million, or 36.8%, from $151.1 million at December 31, 2023. Accruing loans delinquent 90 days or more totaled $12.2 million at September 30, 2024, a decrease of $4.8 million, or 28.0%, compared with $17.0 million at December 31, 2023. At September 30, 2024, OREO totaled $9.5 million, an increase of $3.3 million, or 53.0%, 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 third quarter of 2024, total non-performing assets as a percent of total assets was down 25.00 basis points from 0.69% at December 31, 2023 to 0.44% at September 30, 2024.
Current wording
Nonaccrual loans totaled $99.7 million at March 31, 2025, a decrease of $2.5 million, or 2.5%, from $102.2 million at December 31, 2024. Accruing loans delinquent 90 days or more totaled $14.9 million at March 31, 2025, a decrease of $2.8 million, or 15.8%, compared with $17.7 million at December 31, 2024. At March 31, 2025, OREO totaled $863,000, a decrease of $1.6 million, or 64.5%, compared with $2.4 million at December 31, 2024. 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 2025, total non-performing assets as a percent of total assets was down three basis points from 0.47% at December 31, 2024 to 0.44% at March 31, 2025.
Previous wording
(1)Included in nonaccrual loans were $8.2 million and $90.2 million of serviced GNMA-guaranteed nonaccrual loans at September 30, 2024 and December 31, 2023, respectively.
Current wording
(1)Included in nonaccrual loans were $13.4 million and $12.0 million of serviced GNMA-guaranteed nonaccrual loans at March 31, 2025 and December 31, 2024, respectively.
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 IRLC instruments amounted to an asset of $5.1 million and $3.6 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 and December 31, 2023 forward contracts were recorded with a liability balance of $2.0 million and $5.8 million, 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 $6.6 million and $5.9 million at September 30, 2024 and December 31, 2023, respectively, and a liability of $7.0 million and $6.2 million at September 30, 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 IRLC instruments amounted to an asset of $5.4 million and $1.5 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024 forward contracts were recorded as a liability of $2.9 million and an asset of $5.8 million, 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 $6.3 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively, and a liability of $6.4 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively.
Previous wording
Total deposits at the Company increased $1.17 billion, or 5.7%, to $21.88 billion at September 30, 2024, compared with $20.71 billion at December 31, 2023. Noninterest-bearing deposits increased $178.7 million, or 2.8%, and interest-bearing deposits increased $992.1 million, or 7.0%, during the first nine months of 2024. At September 30, 2024, the Company had approximately $1.64 billion in short-term brokered CDs, compared with $1.14 billion at December 31, 2023. As of September 30, 2024 and December 31, 2023, the Company had estimated uninsured deposits of $9.47 billion and $9.13 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $2.64 billion, or 27.9%, of the uninsured deposits at September 30, 2024 were for municipalities which are collateralized with investment securities or letters of credit.
Current wording
Total deposits at the Company increased $190.0 million, or 0.9%, to $21.91 billion at March 31, 2025, compared with $21.72 billion at December 31, 2024. Noninterest-bearing deposits increased $246.5 million, or 3.8%, and interest-bearing deposits decreased $56.5 million, or 0.4%, during the first three months of 2025. At March 31, 2025, the Company had approximately $1.05 billion in short-term brokered CDs, compared with $804.9 million at December 31, 2024. As of March 31, 2025 and December 31, 2024, the Company had estimated uninsured deposits of $10.01 billion and $10.24 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $3.07 billion, or 30.7%, of the uninsured deposits at March 31, 2025 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 24, 2024. As a result, the Company is currently authorized to engage in additional share repurchases up to $100.0 million through October 31, 2025. 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 September 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.
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 24, 2024. As a result, the Company is currently authorized to engage in additional share repurchases up to $100.0 million through October 31, 2025. 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, 2025, an aggregate of $15.0 million, or 253,400 shares of the Company's common stock, had been repurchased under the program's October 24, 2024 renewal.
Previous wording
Liquidity management involves the matching of the cash flow requirements of customers, who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs, and the ability of Ameris to manage those requirements. The Company strives to maintain an adequate liquidity position by managing the balances and maturities of interest-earning assets and interest-bearing liabilities so that the balance it has in short-term assets at any given time will adequately cover any reasonably anticipated immediate need for funds. Additionally, the Bank maintains relationships with correspondent banks, which could provide funds on short notice, if needed. The Company has invested in FHLB stock for the purpose of establishing credit lines with the FHLB. The credit availability to the Bank is equal to 30% of the Bank’s total assets as reported on the most recent quarterly financial information submitted to the regulators subject to the pledging of sufficient collateral. At September 30, 2024 and December 31, 2023, the net carrying value of the
Current wording
Liquidity management involves the matching of the cash flow requirements of customers, who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs, and the ability of Ameris to manage those requirements. The Company strives to maintain an adequate liquidity position by managing the balances and maturities of interest-earning assets and interest-bearing liabilities so that the balance it has in short-term assets at any given time will adequately cover any reasonably anticipated immediate need for funds. Additionally, the Bank maintains relationships with correspondent banks, which could provide funds on short notice, if needed. The Company has invested in FHLB stock for the purpose of establishing credit lines with the FHLB. The credit availability to the Bank is equal to 30% of the Bank’s total assets as reported on the most recent quarterly financial information submitted to the regulators subject to the pledging of sufficient collateral. At March 31, 2025 and December 31, 2024, the net carrying value of the Company’s other borrowings was $276.7 million and $291.8 million, respectively. At March 31, 2025, the Company had availability with the FHLB and FRB Discount Window of $3.52 billion and $2.29 billion, respectively.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Results of Operations for the Nine Months Ended September 30, 2024 and 2023
Previous report — wording carried elsewhere
The following table sets forth the average balance, interest income or interest expense, and average yield/rate paid for each category of interest-earning assets and interest-bearing liabilities, net interest spread, and net interest margin on average interest-earning assets for the nine months ended September 30, 2024 and 2023. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 21% federal tax rate.
Previous report — wording carried elsewhere
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 nine months ended September 30, 2024, the Company reported income tax expense of $85.5 million, compared with $63.4 million in the same period of 2023. The Company’s effective tax rate for the nine months ended September 30, 2024 and 2023 was 24.4% and 23.8%, 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, partially offset by a favorable return-to-provision adjustment resulting from reduced state apportionment.
Previous report — wording carried elsewhere
Company’s other borrowings was $346.4 million and $509.6 million, respectively. At September 30, 2024, the Company had availability with the FHLB and FRB Discount Window of $3.94 billion and $2.49 billion, respectively.