ATLANTA, Jan. 28, 2021 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $94.3 million, or $1.36 per diluted share, for the quarter ended December 31, 2020, compared with $61.2 million, or $0.88 per diluted share, for the quarter ended December 31, 2019. The increase in net income is primarily attributable to increases in mortgage banking activity of $62.0 million and net interest income of $8.1 million, partially offset by an increase of $22.8 million in salaries and employee benefits, compared with the fourth quarter of 2019. The Company reported adjusted net income of $102.0 million, or $1.47 per diluted share, for the quarter ended December 31, 2020, compared with $66.6 million, or $0.96 per diluted share, for the same period in 2019. Adjusted net income excludes after-tax merger and conversion charges, servicing right valuation adjustments, restructuring charges related to branch consolidations and efficiency initiatives, certain legal expenses, (gain) loss on sale of bank premises and expenses related to natural disasters and the COVID-19 pandemic.

For the year ended December 31, 2020, the Company reported net income of $262.0 million, or $3.77 per diluted share, compared with $161.4 million, or $2.75 per diluted share, for the year ended December 31, 2019. The Company reported adjusted net income of $300.5 million, or $4.33 per diluted share, for the year ended December 31, 2020, compared with $222.9 million, or $3.80 per diluted share, for the year ended December 31, 2019. Adjusted net income for the year excludes the same items listed above for the Company's fourth quarter.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "Last quarter, I commented on the optimistic outlook for the remainder of 2020 and we delivered on that optimism this quarter. Our team remained focused and we had many successes during the quarter, including reducing our NPAs down to 48bps of total assets, maintaining our margin and continuing to safely grow the balance sheet to over $20 billion in assets for the first time in our history. While 2020 was not the year that we had anticipated, I am extremely pleased with the adaptability of our Ameris teammates, our ability to serve our customers and our record financial results this year. We are well positioned for 2021 and look forward to our continued success."

Significant items from the Company's results for the fourth quarter of 2020 include the following:

Net income of $94.3 million, or $1.36 per diluted share, compared with $116.1 million, or $1.67 per diluted share, for the third quarter of 2020
Tangible book value growth of $1.23 per share, or 5.5%, to $23.69 compared with $22.46 last quarter
Successfully negotiated the termination of our remaining loss-share agreements with the FDIC
Net interest margin stable at 3.64%, compared with the third quarter of 2020
Reduced exposure to hotel industry by $87.5 million through the sale of selected notes
Non-performing assets decreased to 0.48% of total assets at December 31, 2020, compared with 0.82% at September 30, 2020

Highlights of the Company's results for the full year 2020 include the following:

Growth in net income of $100.5 million, from $161.4 million in 2019 to $262.0 million in 2020
Adjusted return on average assets of 1.56%, compared with 1.52% in 2019
Improvement in adjusted efficiency ratio to 52.17% in 2020, compared with 55.67% in 2019
Growth in tangible book value of 13.8%, from $20.81 at the end of 2019 to $23.69 at the end of 2020
Organic growth in loans of $1.66 billion, or 13.0% (and $834.8 million, or 6.5%, exclusive of PPP loans)
Improvement in deposit mix such that noninterest bearing deposits represent 36.27% of total deposits, up from 29.94% at December 31, 2019

Following is a summary of the adjustments between reported net income and adjusted net income:

Adjusted Net Income Reconciliation
	Three Months Ended						Year Ended
	December 31,						December 31,
(dollars in thousands, except per share data)	2020			2019			2020			2019
Net income available to common shareholders	$	94,285		$	61,248		$	261,988		$	161,441

Adjustment items:
Merger and conversion charges	—			2,415			1,391			73,105
Restructuring charges	—			—			1,513			245
Servicing right impairment	9,501			366			40,067			507
Gain on BOLI proceeds	—			752			(948)			(3,583)
Expenses related to SEC and DOJ investigation	53			463			3,058			463
Natural disaster and pandemic charges (Note 1)	235			—			3,296			(39)
(Gain) loss on sale of premises	(30)			1,413			624			6,021
Tax effect of adjustment items (Note 2)	(2,049)			(898)			(10,488)			(16,065)
After-tax adjustment items	7,710			4,511			38,513			60,654

Tax expense attributable to merger related compensation and acquired BOLI	—			849			—			849
Adjusted net income	$	101,995		$	66,608		$	300,501		$	222,944

Reported net income per diluted share	$	1.36		$	0.88		$	3.77		$	2.75
Adjusted net income per diluted share	$	1.47		$	0.96		$	4.33		$	3.80

Reported return on average assets	1.89		%	1.35		%	1.36		%	1.10		%
Adjusted return on average assets	2.04		%	1.47		%	1.56		%	1.52		%

Reported return on average common equity	14.30		%	9.97		%	10.35		%	8.19		%
Adjusted return on average tangible common equity	25.04		%	18.45		%	19.77		%	18.74		%

Note 1: Pandemic charges include "thank you" pay for certain employees, additional sanitizing expenses at our locations, protective equipment for our employees and branch locations, and additional equipment required to support our remote workforce.
Note 2: A portion of the merger and conversion charges are nondeductible for tax purposes.

Net Interest Income and Net Interest Margin

Net interest income on a tax-equivalent basis for 2020 totaled $642.9 million, compared with $509.5 million for 2019. The Company's net interest margin was 3.70% for 2020, down from 3.88% reported for 2019. Accretion income for 2020 increased to $27.4 million, compared with $19.9 million for 2019. The decrease in net interest margin is primarily attributable to a decrease in the yield on earning assets resulting from declines in market interest rates, partially offset by a decrease in funding costs.

Net interest income on a tax-equivalent basis for the fourth quarter of 2020 totaled $164.8 million, compared with $163.9 million for the third quarter of 2020 and $156.5 million for the fourth quarter of 2019. The Company's net interest margin was 3.64% for the fourth quarter of 2020, flat compared with 3.64% reported for the third quarter of 2020 and down from 3.86% reported for the fourth quarter of 2019. The stability in net interest margin in the current quarter is primarily attributable to continued focus on management of cost of funds as yields on earning assets decline. Contributing to net interest income for the fourth quarter of 2020 was $6.3 million related to accelerated fee income on PPP loan forgiveness, partially offset by $2.3 million in interest reversals related to the sale of certain hotel loans. Accretion income for the fourth quarter of 2020 decreased to $4.7 million, compared with $6.5 million for the third quarter of 2020 and $9.7 million for the fourth quarter of 2019. The decrease in accretion income in the fourth quarter is primarily attributable to decreased accretion on payoffs compared with the third quarter of 2020.

Yields on loans decreased to 4.41% during the fourth quarter of 2020, compared with 4.42% for the third quarter of 2020 and 5.28% reported for the fourth quarter of 2019. Loan production in the banking division during the fourth quarter of 2020 totaled $784.9 million, with weighted average yields of 3.86%, compared with $869.0 million and 4.00%, respectively, in the third quarter of 2020 and $1.1 billion and 4.70%, respectively, in the fourth quarter of 2019. Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $7.7 billion during the fourth quarter of 2020, with weighted average yields of 3.25%, compared with $7.7 billion and 3.33%, respectively, during the third quarter of 2020 and $4.1 billion and 4.29%, respectively, during the fourth quarter of 2019.

Interest expense during the fourth quarter of 2020 decreased to $15.3 million, compared with $17.4 million in the third quarter of 2020 and $38.7 million in the fourth quarter of 2019. The Company's total cost of funds moved five basis points lower to 0.36% in the fourth quarter of 2020 as compared with the third quarter of 2020. Deposit costs decreased eight basis points during the fourth quarter of 2020 to 0.22%, compared with 0.30% in the third quarter of 2020. Costs of interest-bearing deposits decreased during the quarter from 0.47% in the third quarter of 2020 to 0.34% in the fourth quarter of 2020.

Noninterest Income

Noninterest income increased $248.4 million, or 125.4%, to $446.5 million for 2020, compared with $198.1 million for 2019, as a result of increased mortgage banking activity. Mortgage banking activity increased $254.7 million, or 213.3%, to $374.1 million for 2020, compared with $119.4 million for 2019, as a result of a production increase of $5.44 billion, or 125.9%, over the same period. Gain on sale spreads increased to 3.79% in 2020 compared with 2.75% in 2019.

Noninterest income decreased $46.9 million, or 29.5%, in the fourth quarter of 2020 to $112.1 million, compared with $159.0 million for the third quarter of 2020, primarily as a result of decreased mortgage banking activity.

Mortgage banking activity decreased $43.4 million, or 31.3%, to $95.2 million in the fourth quarter of 2020, compared with $138.6 million for the third quarter of 2020. This decrease was a result of decreased production, increased servicing right impairment and a decline in the retail mortgage open pipeline, partially offset by an expansion in our gain on sale spread. Gain on sale spreads increased to 4.34% in the fourth quarter of 2020 from 3.92% for the third quarter of 2020. Total production in the retail mortgage division decreased to $2.81 billion in the fourth quarter of 2020, compared with $2.92 billion for the third quarter of 2020. Mortgage banking activity was negatively impacted during the fourth quarter of 2020 by a $9.1 million servicing right impairment, compared with an impairment of $1.1 million for the third quarter of 2020. The retail mortgage open pipeline was $2.00 billion at the end of the fourth quarter of 2020, compared with $2.71 billion at September 30, 2020.

Service charge revenue increased $551,000, or 5.0%, to $11.5 million in the fourth quarter of 2020, compared with $10.9 million for the third quarter of 2020, resulting from an increase in volume. Other noninterest income decreased $3.9 million, or 46.4%, to $4.5 million for the fourth quarter of 2020, compared with $8.4 million for the third quarter of 2020, primarily as a result of decreases in the gain on sales of SBA loans and SBA servicing right valuation adjustment of $2.7 million and $1.1 million, respectively.

Noninterest Expense

Noninterest expense increased $126.7 million, or 26.8%, to $598.6 million in 2020, compared with $471.9 million in 2019. During 2020, the Company recorded $9.9 million of charges to earnings, the majority of which related to natural disaster and pandemic charges and certain legal expenses, compared with $79.8 million in charges in 2019 that were principally related to merger and conversion charges and loss on sale of premises. Excluding these charges, adjusted expenses increased $196.6 million, or 50.1%, to $588.7 million in 2020, from $392.1 million in 2019. The majority of this increase is attributable to the acquisition of Fidelity Bank and variable expenses related to increased mortgage production. The Company continues to focus on its operating efficiency ratio, such that the adjusted efficiency ratio improved from 55.67% in 2019 to 52.17% in 2020.

Noninterest expense decreased $2.6 million, or 1.7%, to $151.1 million during the fourth quarter of 2020, compared with $153.7 million for the third quarter of 2020. During the fourth quarter of 2020, the Company recorded $258,000 of charges to earnings, related to certain legal expenses, natural disaster and pandemic charges and (gain) loss on sale of premises, compared with $647,000 in charges in the third quarter of 2020 that were related to the same items, in addition to merger and conversion charges and restructuring charges associated with branch consolidations and efficiency initiatives. Excluding these charges, adjusted expenses decreased approximately $2.2 million, or 1.4%, to $150.9 million in the fourth quarter of 2020, from $153.0 million in the third quarter of 2020. The majority of this decrease is attributable to variable expenses related to decreased mortgage production. Also during the fourth quarter, the Company incurred a $765,000 expense related to the final termination of the remaining loss-share agreements with the FDIC. The Company made a $1.0 million donation to the Ameris Bank Foundation as well. The adjusted efficiency ratio was 52.67% in the fourth quarter of 2020, compared with 47.34% in the third quarter of 2020.

Income Tax Expense

The Company's effective tax rate for the fourth quarter of 2020 was 25.2%, compared with 22.7% in the third quarter of 2020. The increased rate for the fourth quarter of 2020 was primarily a result of a large return to provision adjustment when the Company filed its 2019 income tax returns in the fourth quarter of 2020.

Balance Sheet Trends

Total assets at December 31, 2020 were $20.44 billion, compared with $18.24 billion at December 31, 2019. Total loans, including loans held for sale, were $15.65 billion at December 31, 2020, compared with $14.48 billion at December 31, 2019. Total loans held for investment were $14.48 billion at December 31, 2020, compared with $12.82 billion at December 31, 2019, an increase of $1.66 billion, or 13.0%. Loan production in the banking division during the fourth quarter of 2020 was down 10% from the third quarter of 2020 and 28% from the fourth quarter of 2019. Loan growth for the year ended December 31, 2020 was driven by PPP loan originations, which totaled $827.6 million in outstanding balances at December 31, 2020, and increases in commercial real estate and warehouse lending.

At December 31, 2020, total deposits amounted to $16.96 billion, or 96.8% of total funding, compared with $14.03 billion and 90.1%, respectively, at December 31, 2019. At December 31, 2020, noninterest-bearing deposit accounts were $6.15 billion, or 36.3% of total deposits, compared with $4.20 billion, or 29.9% of total deposits, at December 31, 2019. Non-rate sensitive deposits (including noninterest-bearing, NOW and savings) totaled $10.23 billion at December 31, 2020, compared with $7.21 billion at December 31, 2019. These funds represented 60.3% of the Company's total deposits at December 31, 2020, compared with 51.4% at the end of 2019.

Shareholders' equity at December 31, 2020 totaled $2.65 billion, an increase of $177.5 million, or 7.2%, from December 31, 2019. The increase in shareholders' equity was primarily the result of earnings of $262.0 million during 2020, partially offset by the CECL adoption impact of $56.7 million and dividends declared. Tangible book value per share was $23.69 at December 31, 2020, compared with $20.81 at December 31, 2019. Tangible common equity as a percentage of tangible assets was 8.47% at December 31, 2020, compared with 8.40% at the end of the 2019.

Credit Quality

Credit quality remains strong in the Company. During the fourth quarter of 2020, the Company reversed provision for credit losses of $1.5 million, compared with a provision of $17.7 million in the third quarter of 2020. This decrease in provision was primarily attributable to improvements in forecast economic conditions, particularly levels of unemployment and GDP, compared with forecast conditions during the third quarter of 2020. The Company has been prudently working with borrowers to support their credit needs during the challenging economic conditions and monitoring the level of modifications on an ongoing basis, such that loans remaining on deferral at the end of the fourth quarter of 2020 equaled approximately 2.9% of total loans, down from approximately 19.0% of total loans at the end of the second quarter of 2020. Nonperforming assets as a percentage of total assets decreased by 34 basis points to 0.48% during the quarter. The decrease in nonperforming assets is primarily attributable to decreased nonaccrual loans in the residential real estate and commercial real estate loan categories. The net charge-off ratio was 70 basis points for the fourth quarter of 2020, compared with 10 basis points in the third quarter of 2020 and nine basis points in the fourth quarter of 2019. The increase in net charge-offs for the fourth quarter of 2020 was primarily attributable to approximately $17.2 million of charge-offs on certain hotel exposures sold during the quarter. The hotel loans sold were selected based on a number of factors, including the level of relationship with the borrower, tier of hotel brand underlying the property and market conditions in the area.

Conference Call

The Company will host a teleconference at 9:00 a.m. Eastern time on Friday, January 29, 2021, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants). The conference ID name is Ameris Bancorp ABCB. A replay of the call will be available one hour after the end of the conference call until February 12, 2021. To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for other international participants). The conference replay access code is 10151038. The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com.

About Ameris Bancorp

Ameris Bancorp is a bank holding company headquartered in Atlanta, Georgia. The Company's banking subsidiary, Ameris Bank, had 164 locations in Georgia, Florida, South Carolina and Alabama at the end of the most recent quarter.

This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, 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; legislative and regulatory changes; changes in U.S. government monetary and fiscal policy, including any changes that result from the recent U.S. elections; the impact of the COVID-19 pandemic on the general economy, our customers and the allowance for loan losses; the benefits that may be realized by our customers from government assistance programs and regulatory actions related to the COVID-19 pandemic; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive pressures on product pricing and services; the cost savings and any revenue synergies expected to result from acquisition transactions, which may not be fully realized within the expected timeframes if at all; the success and timing of other business strategies; 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. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019, as amended, and its subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES

Financial Highlights	Table 1
	Three Months Ended															Year Ended
	Dec			Sep			Jun			Mar			Dec			Dec			Dec
(dollars in thousands except per share data)	2020			2020			2020			2020			2019			2020			2019
EARNINGS
Net income	$	94,285		$	116,145		$	32,236		$	19,322		$	61,248		$	261,988		$	161,441
Adjusted net income	$	101,995		$	116,879		$	42,423		$	39,205		$	66,608		$	300,501		$	222,944

COMMON SHARE DATA
Earnings per share available to common shareholders
Basic	$	1.36		$	1.68		$	0.47		$	0.28		$	0.88		$	3.78		$	2.76
Diluted	$	1.36		$	1.67		$	0.47		$	0.28		$	0.88		$	3.77		$	2.75
Adjusted diluted EPS	$	1.47		$	1.69		$	0.61		$	0.56		$	0.96		$	4.33		$	3.80
Cash dividends per share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15		$	0.60		$	0.50
Book value per share (period end)	$	38.07		$	36.91		$	35.42		$	35.10		$	35.53		$	38.07		$	35.53
Tangible book value per share (period end)	$	23.69		$	22.46		$	20.90		$	20.44		$	20.81		$	23.69		$	20.81
Weighted average number of shares
Basic	69,252,307			69,230,667			69,191,778			69,247,661			69,429,193			69,256,020			58,462,137
Diluted	69,493,105			69,346,141			69,292,972			69,502,022			69,683,999			69,426,185			58,614,151
Period end number of shares	69,541,481			69,490,546			69,462,782			69,441,274			69,503,833			69,541,481			69,503,833
Market data
High intraday price	$	39.53		$	27.81		$	29.82		$	43.79		$	44.90		$	43.79		$	44.90
Low intraday price	$	22.37		$	19.91		$	17.12		$	17.89		$	38.34		$	17.12		$	31.27
Period end closing price	$	38.07		$	22.78		$	23.59		$	23.76		$	42.54		$	38.07		$	42.54
Average daily volume	394,641			359,059			470,151			461,692			353,783			420,874			389,112

PERFORMANCE RATIOS
Return on average assets	1.89		%	2.33		%	0.67		%	0.43		%	1.35		%	1.36		%	1.10		%
Adjusted return on average assets	2.04		%	2.35		%	0.89		%	0.87		%	1.47		%	1.56		%	1.52		%
Return on average common equity	14.30		%	18.27		%	5.23		%	3.16		%	9.97		%	10.35		%	8.19		%
Adjusted return on average tangible common equity	25.04		%	30.53		%	11.66		%	10.98		%	18.45		%	19.77		%	18.74		%
Earning asset yield (TE)	3.98		%	4.02		%	4.32		%	4.56		%	4.82		%	4.21		%	4.88		%
Total cost of funds	0.36		%	0.41		%	0.52		%	0.91		%	1.00		%	0.54		%	1.05		%
Net interest margin (TE)	3.64		%	3.64		%	3.83		%	3.70		%	3.86		%	3.70		%	3.88		%
Noninterest income excluding securities transactions, as a percent of total revenue (TE)	38.37		%	46.72		%	39.35		%	22.83		%	22.02		%	37.90		%	23.60		%
Efficiency ratio	54.83		%	47.80		%	54.70		%	68.23		%	58.24		%	55.21		%	67.11		%
Adjusted efficiency ratio (TE)	52.67		%	47.34		%	51.08		%	59.87		%	55.61		%	52.17		%	55.67		%

CAPITAL ADEQUACY (period end)
Shareholders' equity to assets	12.95		%	12.90		%	12.38		%	13.37		%	13.54		%	12.95		%	13.54		%
Tangible common equity to tangible assets	8.47		%	8.27		%	7.70		%	8.25		%	8.40		%	8.47		%	8.40		%

EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets	8.47		%	8.27		%	7.70		%	8.25		%	8.40		%	8.47		%	8.40		%
Effect of goodwill and other intangibles	4.48		%	4.63		%	4.68		%	5.12		%	5.14		%	4.48		%	5.14		%
Equity to assets (GAAP)	12.95		%	12.90		%	12.38		%	13.37		%	13.54		%	12.95		%	13.54		%

OTHER DATA (period end)
Full time equivalent employees
Banking Division	1,816			1,807			1,832			1,865			1,913			1,816			1,913
Retail Mortgage Division	748			734			692			689			690			748			690
Warehouse Lending Division	12			11			9			9			9			12			9
SBA Division	24			33			42			44			42			24			42
Premium Finance Division	71			71			70			72			68			71			68
Total Ameris Bancorp FTE headcount	2,671			2,656			2,645			2,679			2,722			2,671			2,722

Assets per Banking Division FTE	$	11,255		$	10,998		$	10,848		$	9,772		$	9,536		$	11,255		$	9,536
Branch locations	164			170			170			170			170			164			170
Deposits per branch location	$	103,401		$	94,493		$	91,705		$	81,439		$	82,512		$	103,401		$	82,512

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES

Income Statement	Table 2
	Three Months Ended										Year Ended
	Dec		Sep		Jun		Mar		Dec		Dec		Dec
(dollars in thousands except per share data)	2020		2020		2020		2020		2019		2020		2019
Interest income
Interest and fees on loans	$	171,971	$	172,351	$	175,345	$	171,242	$	182,391	$	690,909	$	586,848
Interest on taxable securities	6,398		7,259		9,347		10,082		10,358		33,086		40,138
Interest on nontaxable securities	150		159		157		157		167		623		593
Interest on deposits in other banks	252		153		123		1,211		1,091		1,739		8,139
Interest on federal funds sold	12		12		46		76		69		146		676
Total interest income	178,783		179,934		185,018		182,768		194,076		726,503		636,394

Interest expense
Interest on deposits	8,870		11,822		14,273		24,102		27,970		59,067		102,533
Interest on other borrowings	6,457		5,574		6,931		10,721		10,755		29,683		28,695
Total interest expense	15,327		17,396		21,204		34,823		38,725		88,750		131,228

Net interest income	163,456		162,538		163,814		147,945		155,351		637,753		505,166

Provision for loan losses	(6,700)		26,692		68,449		37,047		5,693		125,488		19,758
Provision for unfunded commitments	5,481		(10,131)		19,712		4,000		—		19,062		—
Provision for other credit losses	(291)		1,121		—		—		—		830		—
Provision for credit losses	(1,510)		17,682		88,161		41,047		5,693		145,380		19,758
Net interest income after provision for credit losses	164,966		144,856		75,653		106,898		149,658		492,373		485,408

Noninterest income
Service charges on deposits accounts	11,465		10,914		9,922		11,844		13,567		44,145		50,792
Mortgage banking activity	95,192		138,627		104,925		35,333		33,168		374,077		119,409
Other service charges, commissions and fees	965		1,039		949		961		935		3,914		3,566
Gain (loss) on securities	—		—		14		(9)		(1)		5		138
Other noninterest income	4,521		8,438		5,150		6,250		7,444		24,359		24,208
Total noninterest income	112,143		159,018		120,960		54,379		55,113		446,500		198,113

Noninterest expense
Salaries and employee benefits	92,466		96,698		95,168		75,946		69,642		360,278		223,938
Occupancy and equipment expenses	12,709		13,805		13,807		12,028		11,919		52,349		40,596
Data processing and telecommunications expenses	11,323		12,226		10,514		11,954		11,362		46,017		38,513
Credit resolution related expenses⁽¹⁾	1,156		802		950		2,198		1,098		5,106		4,082
Advertising and marketing expenses	3,267		966		1,455		2,358		2,250		8,046		7,927
Amortization of intangible assets	4,190		4,190		5,601		5,631		5,741		19,612		17,713
Merger and conversion charges	—		(44)		895		540		2,415		1,391		73,105
Other noninterest expenses	26,005		25,049		27,378		27,398		18,137		105,830		66,063
Total noninterest expense	151,116		153,692		155,768		138,053		122,564		598,629		471,937

Income before income tax expense	125,993		150,182		40,845		23,224		82,207		340,244		211,584
Income tax expense	31,708		34,037		8,609		3,902		20,959		78,256		50,143
Net income	$	94,285	$	116,145	$	32,236	$	19,322	$	61,248	$	261,988	$	161,441

Diluted earnings per common share	$	1.36	$	1.67	$	0.47	$	0.28	$	0.88	$	3.77	$	2.75

(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES

Period End Balance Sheet	Table 3
	Three Months Ended
	Dec		Sep		Jun		Mar		Dec
(dollars in thousands)	2020		2020		2020		2020		2019
Assets
Cash and due from banks	$	203,349	$	257,026	$	292,899	$	255,312	$	246,234
Federal funds sold and interest-bearing deposits in banks	1,913,957		494,765		428,560		396,844		375,615
Time deposits in other banks	249		249		249		249		249
Investment securities available for sale, at fair value	982,879		1,117,436		1,238,896		1,353,040		1,403,403
Other investments	28,202		47,329		76,453		81,754		66,919
Loans held for sale, at fair value	1,167,659		1,414,889		1,736,397		1,398,229		1,656,711

Loans, net of unearned income	14,480,925		14,943,593		14,503,157		13,094,106		12,818,476
Allowance for credit losses	(199,422)		(231,924)		(208,793)		(149,524)		(38,189)
Loans, net	14,281,503		14,711,669		14,294,364		12,944,582		12,780,287

Other real estate owned	11,880		17,969		23,563		21,027		19,500
Premises and equipment, net	222,890		231,278		230,118		231,347		233,102
Goodwill	928,005		928,005		928,005		931,947		931,637
Other intangible assets, net	71,974		76,164		80,354		85,955		91,586
Cash value of bank owned life insurance	176,467		175,605		175,011		176,239		175,270
Deferred income taxes, net	33,314		53,039		56,306		24,196		2,180
Other assets	416,310		348,428		311,454		323,827		259,886
Total assets	$	20,438,638	$	19,873,851	$	19,872,629	$	18,224,548	$	18,242,579

Liabilities
Deposits
Noninterest-bearing	$	6,151,070	$	5,909,316	$	5,595,868	$	4,226,253	$	4,199,448
Interest-bearing	10,806,753		10,154,490		9,993,950		9,618,365		9,827,625
Total deposits	16,957,823		16,063,806		15,589,818		13,844,618		14,027,073
Federal funds purchased and securities sold under agreements to repurchase	11,641		9,103		12,879		15,160		20,635
Other borrowings	425,155		875,255		1,418,336		1,543,371		1,398,709
Subordinated deferrable interest debentures	124,345		123,860		123,375		122,890		127,560
FDIC loss-share payable, net	—		19,476		18,903		18,111		19,642
Other liabilities	272,586		217,668		249,188		243,248		179,378
Total liabilities	17,791,550		17,309,168		17,412,499		15,787,398		15,772,997

Shareholders' Equity
Preferred stock	—		—		—		—		—
Common stock	71,754		71,703		71,674		71,652		71,500
Capital stock	1,913,285		1,911,031		1,909,839		1,908,721		1,907,108
Retained earnings	671,510		587,657		481,948		460,153		507,950
Accumulated other comprehensive income, net of tax	33,505		37,252		39,613		39,551		17,995
Treasury stock	(42,966)		(42,960)		(42,944)		(42,927)		(34,971)
Total shareholders' equity	2,647,088		2,564,683		2,460,130		2,437,150		2,469,582
Total liabilities and shareholders' equity	$	20,438,638	$	19,873,851	$	19,872,629	$	18,224,548	$	18,242,579

Other Data
Earning assets	$	18,573,871	$	18,018,261	$	17,983,712	$	16,324,222	$	16,321,373
Intangible assets	999,979		1,004,169		1,008,359		1,017,902		1,023,223
Interest-bearing liabilities	11,367,894		11,162,708		11,548,540		11,299,786		11,374,529
Average assets	19,876,338		19,810,084		19,222,181		18,056,445		17,998,494
Average common shareholders' equity	2,622,942		2,529,471		2,478,373		2,456,617		2,437,272

AMERIS BANCORP AND SUBSIDIARIES
FINANCIAL TABLES

Asset Quality Information	Table 4
	Three Months Ended										Year Ended
	Dec		Sep		Jun		Mar		Dec		Dec		Dec
(dollars in thousands)	2020		2020		2020		2020		2019		2020		2019
Allowance for Credit Losses
Balance at beginning of period	$	260,417	$	246,295	$	167,315	$	39,266	$	36,607	$	39,266	$	28,819

CECL adoption impact on allowance for loan losses	—		—		—		78,661		—		78,661		—
CECL adoption impact on allowance for unfunded commitments	—		—		—		12,714		—		12,714		—
Total CECL adoption impact	—		—		—		91,375		—		91,375		—

Acquired allowance for unfunded commitments	—		—		—		—		—		—		1,077

Provision for loan losses	(6,700)		26,692		68,449		37,047		5,693		125,488		19,758
Provision for unfunded commitments	5,481		(10,131)		19,712		4,000		—		19,062		—
Provision for other credit losses	(291)		1,121		—		—		—		830		—
Provision for credit losses	(1,510)		17,682		88,161		41,047		5,693		145,380		19,758

Charge-offs	29,094		7,370		11,282		6,718		5,664		54,464		19,861
Recoveries	3,292		3,810		2,101		2,345		2,630		11,548		9,473<

Ameris Bancorp Announces Fourth Quarter And Full Year 2020 Financial Results