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What changed in Ameris Bancorp's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Ameris Bancorp's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+282 added−281 removedSource: 10-K (2024-02-28) vs 10-K (2023-02-28)

Top changes in Ameris Bancorp's 2023 10-K

282 paragraphs added · 281 removed · 193 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

55 edited+21 added−24 removed129 unchanged
Biggest changeCommercial Real Estate Concentrations Under guidance issued by the federal banking regulators, a financial institution will be considered to have a significant commercial real estate (“CRE”) concentration risk, and will be subject to enhanced supervisory expectations to manage that 16 risk, if (i) total reported loans for construction, land development and other land (“C&D”) represent 100% or more of the institution’s total capital or (ii) total CRE loans represent 300% or more of the institution’s total capital and the outstanding balance of the institution’s CRE loan portfolio has increased by 50% or more during the prior 36 months.
Biggest changeOur Company’s loan policies establish limits on loan-to-value ratios that are equal to or less than those established in such regulations. 13 Commercial Real Estate Concentrations Under guidance issued by the federal banking regulators, a financial institution will be considered to have a significant commercial real estate (“CRE”) concentration risk, and will be subject to enhanced supervisory expectations to manage that risk, if (i) total reported loans for construction, land development and other land (“C&D”) represent 100% or more of the institution’s tier 1 capital plus the allowance for credit losses attributable to loans and leases or (ii) total CRE loans represent 300% or more of the institution’s tier 1 capital plus the allowance for credit losses attributable to loans and leases and the outstanding balance of the institution’s CRE loan portfolio has increased by 50% or more during the prior 36 months.
This portion of our loan portfolio has grown significantly over the past few years and represents the largest segment of our loan portfolio. Commercial and farmland real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space.
This portion of our loan portfolio has grown significantly over the past few years and represents the largest segment of our loan portfolio. Commercial real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space.
Investment Activities Our investment policy is designed to maximize income from funds not needed to meet loan demand in a manner consistent with appropriate liquidity and risk management objectives. Under this policy, our Company may invest in U.S. Treasury obligations, securities issued by U.S. government-sponsored agencies, state and municipal obligations, mortgage-backed securities, corporate obligations, securities and satisfactorily-rated trust preferred obligations.
Investment Activities Our investment policy is designed to maximize income from funds not needed to meet loan demand in a manner consistent with appropriate liquidity and risk management objectives. Under this policy, our Company may invest in U.S. Treasury obligations, securities issued by U.S. government-sponsored agencies, state and municipal obligations, mortgage-backed securities, corporate obligations and satisfactorily-rated trust preferred obligations.
Under the March 31, 2020 interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period includes both the initial impact of a banking organization’s adoption of CECL at January 1, 2020 and 25% of subsequent changes in its allowance for credit losses during each quarter of the two-year period ended December 31, 2021.
Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period includes both the initial impact of a banking organization’s adoption of CECL at January 1, 2020 and 25% of subsequent changes in its allowance for credit losses during each quarter of the two-year period ended December 31, 2021.
Our most recent bank acquisition was of Fidelity Southern Corporation ("Fidelity"), which was completed in July 2019 and which added $4.0 billion in deposits. In addition, in December 2021, the Bank acquired Balboa Capital Corporation ("Balboa"), a point of sale and direct online provider of lending solutions to small and mid-sized businesses nationwide. 5 BANKING SERVICES Lending Activities General .
Our most recent bank acquisition was of Fidelity Southern Corporation ("Fidelity"), which was completed in July 2019 and which added $4.0 billion in deposits. In addition, in December 2021, the Bank acquired Balboa Capital Corporation ("Balboa"), a point of sale and direct online provider of lending solutions to small and mid-sized businesses nationwide. 4 BANKING SERVICES Lending Activities General .
Federal law makes it a criminal offense, except in limited circumstances, to obtain or attempt to obtain customer information of a financial nature by fraudulent or deceptive means. The federal banking agencies pay close attention to the cybersecurity practices of banks, and the agencies include review of an institution’s information technology and its ability to thwart cyberattacks in their examinations.
Federal law makes it a criminal offense, except in limited circumstances, to obtain or attempt to obtain customer information of a financial nature by fraudulent or deceptive means. 15 The federal banking agencies pay close attention to the cybersecurity practices of banks, and the agencies include review of an institution’s information technology and its ability to thwart cyberattacks in their examinations.
As a result, the extensive 10 laws and regulations to which we are subject and with which we must comply significantly impact our earnings, results of operations, financial condition and competitive position. Set forth below is a summary of certain provisions of key federal and state laws that affect the regulation of bank holding companies and banks.
As a result, the extensive laws and regulations to which we are subject and with which we must comply significantly impact our earnings, results of operations, financial condition and competitive position. Set forth below is a summary of certain provisions of key federal and state laws that affect the regulation of bank holding companies and banks.
Our behavioral health benefit offers support for such issues as alcohol and drug use recovery, medication management, coping with grief and loss, and depression, anxiety and stress management. 9 Personal and Professional Growth At Ameris, our leaders develop action plans and provide mentorship to help employees reach their aspirations.
Our behavioral health benefit offers support for such issues as alcohol and drug use recovery, medication management, coping with grief and loss, and depression, anxiety and stress management. Personal and Professional Growth At Ameris, our leaders develop action plans and provide mentorship to help employees reach their aspirations.
During 2020, in response to the COVID-19 pandemic, the Federal Reserve reduced all reserve requirement ratios to zero. The Federal Reserve indicated that it may adjust reserve requirement ratios in the future if conditions warrant. FDIC Insurance Assessments The Bank’s deposits are insured to the maximum extent permitted by the DIF.
During 2020, in response to the COVID-19 pandemic, the 12 Federal Reserve reduced all reserve requirement ratios to zero. The Federal Reserve indicated that it may adjust reserve requirement ratios in the future if conditions warrant. FDIC Insurance Assessments The Bank’s deposits are insured to the maximum extent permitted by the DIF.
During 2021 and 2020, the Company participated in the SBA's Paycheck Protection Program (the "PPP"), a temporary product under the SBA's 7(a) loan program created under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The primary repayment risk for commercial loans is the failure of the business due to economic or financial factors.
During 2021 and 2020, the Company participated in the SBA's Paycheck Protection Program, a temporary product under the SBA's 7(a) loan program created under the Coronavirus Aid, Relief, and Economic Security Act. The primary repayment risk for commercial loans is the failure of the business due to economic or financial factors.
As part of that commitment, the Bank appointed its first Diversity and Inclusion Officer in 2020 and established a Diversity Task Force comprised of a diverse group of 19 teammates from across the Company.
As part of that commitment, the Bank appointed its first Diversity and Inclusion Officer in 2020 and established a Diversity Task Force comprised of a diverse group of 29 teammates from across the Company.
HUMAN CAPITAL At Ameris, we consider our teammates to be our greatest strength. At December 31, 2022, the Company employed 2,847 full-time-equivalent employees, primarily located in our core markets of Georgia, Alabama, Florida, North Carolina and South Carolina. We take pride in listening to our employees, welcoming unique perspectives, supporting personal and professional growth and developing natural strengths.
HUMAN CAPITAL At Ameris, we consider our teammates to be our greatest strength. At December 31, 2023, the Company employed 2,765 full-time-equivalent employees, primarily located in our core markets of Georgia, Alabama, Florida, North Carolina and South Carolina. We take pride in listening to our employees, welcoming unique perspectives, supporting personal and professional growth and developing natural strengths.
In a related action, the joint federal bank regulatory agencies issued an interim final rule effective March 31, 2020 that allows banking organizations that implemented CECL in 2020 to elect to mitigate the effects of the CECL accounting standard on their regulatory capital for two years.
In March 2020, the joint federal bank regulatory agencies issued an interim final rule effective March 31, 2020 that allows banking organizations that implemented CECL in 2020 to elect to mitigate the effects of the CECL accounting standard on their regulatory capital for two years.
An institution’s size and business strategy determines the type of examination that it will receive. The FDIC evaluates the Bank as a large, retail-oriented institution and applies performance-based lending, investment and service tests. In its most recent CRA evaluation, as of August 26, 2019, the Bank was rated Satisfactory under the CRA.
An institution’s size and business strategy determines the type of examination that it will receive. The FDIC evaluates the Bank as a large, retail-oriented institution and applies performance-based lending, investment and service tests. In its most recent CRA evaluation, as of October 31, 2022, the Bank was rated Satisfactory under the CRA.
At December 31, 2022, the Bank exceeded its minimum capital requirements, inclusive of the capital conservation buffer, with common equity Tier 1 capital, Tier 1 capital and total capital equal to 11.12%, 11.12% and 12.28% of its total risk-weighted assets, respectively, and a Tier 1 leverage ratio of 10.56%, and was “well-capitalized” for prompt corrective action purposes based on the ratios and guidelines described above.
At December 31, 2023, the Bank exceeded its minimum capital requirements, inclusive of the capital conservation buffer, with common equity Tier 1 capital, Tier 1 capital 11 and total capital equal to 12.09%, 12.09% and 13.69% of its total risk-weighted assets, respectively, and a Tier 1 leverage ratio of 10.69%, and was “well-capitalized” for prompt corrective action purposes based on the ratios and guidelines described above.
These repurchase agreements are treated as short-term borrowings and are reflected on the Company’s balance sheet as such. 8 MARKET AREAS AND COMPETITION The banking industry in general, and in the southeastern United States specifically, is highly competitive and dramatic changes continue to occur throughout the industry.
The Company may also enter into repurchase agreements. These repurchase agreements are treated as short-term borrowings and are reflected on the Company’s balance sheet as such. MARKET AREAS AND COMPETITION The banking industry in general, and in the southeastern United States specifically, is highly competitive and dramatic changes continue to occur throughout the industry.
Additionally, the Federal Deposit Insurance Act and Georgia law limit asset sales and purchases between a bank and its insiders. 13 Under anti-tying rules of federal law, a bank may not extend credit, lease, sell property or furnish any service or fix or vary the consideration for them on the condition that (i) the customer obtain or provide some additional credit, property or service from or to the bank or its holding company or their subsidiaries (other than those related to and usually provided in connection with a loan, discount, deposit or trust service) or (ii) the customer not obtain some other credit, property or service from a competitor, except to the extent reasonable conditions are imposed to assure the soundness of the credit extended.
Under anti-tying rules of federal law, a bank may not extend credit, lease, sell property or furnish any service or fix or vary the consideration for them on the condition that (i) the customer obtain or provide some additional credit, property or service from or to the bank or its holding company or their subsidiaries (other than those related to and usually provided in connection with a loan, discount, deposit or trust service) or (ii) the customer not obtain some other credit, property or service from a competitor, except to the extent reasonable conditions are imposed to assure the soundness of the credit extended.
This two-year delay is in addition to the three-year transition period that the agencies had already made available in December 2018. Ameris and the Bank elected to defer the regulatory capital effects of CECL in accordance with the interim final rule and not to apply the deferral of CECL available under the CARES Act.
This two-year delay is in addition to the three-year transition period that the agencies had already made available in December 2018. Ameris and the Bank elected to defer the regulatory capital effects of CECL in accordance with the interim final rule.
The input obtained from these surveys helps the Company’s Board of Directors and executive officers to execute on initiatives such as the Ameris Bank Foundation, leadership training and diversity and inclusion initiatives.
The input obtained from these surveys helps the Board and executive officers to execute on initiatives such as the Ameris Foundation, leadership training and diversity and inclusion initiatives.
We actively market our services to qualified lending customers in both the commercial and consumer sectors. Our commercial lending officers actively solicit the business of new companies entering the market as well as longstanding members of that market’s business community. Through personalized professional service and competitive pricing, we have been successful in attracting new commercial lending customers.
Our commercial lending officers actively solicit the business of new companies entering the market as well as longstanding members of that market’s business community. Through personalized professional service and competitive pricing, we have been successful in attracting new commercial lending customers.
Employee resource groups currently include women in banking, LGBTQIA+, veterans, BIPOC (Black, Indigenous and People of Color), multigenerational, caregivers and mindfulness-mental health. As of December 31, 2022, females represent 66% of the Company’s employee population, and minorities represent 31%. In addition, females represent 42% of the Company’s senior management staff, consisting of Vice Presidents and above, and minorities represent 17%.
Employee resource groups currently include women in banking, LGBTQIA+, veterans, BIPOC (Black, Indigenous and People of Color), multigenerational, caregivers and mindfulness-mental health. As of December 31, 2023, females represent 65% of the Company’s employee population, and minorities represent 32%. In addition, females represent 43% of the Company’s senior management staff, consisting of Vice Presidents and above, and minorities represent 18%.
We believe that effective and meaningful leadership development will further elevate the Company and support us in continuing to attract and retain top talent. At the end of 2022, we had a total of 337 teammates who were enrolled in or completed the program, of which 72% were female and 34% were minorities.
We believe that effective and meaningful leadership development will further elevate the Company and support us in continuing to attract and retain top 8 talent. At the end of 2023, we had a total of 424 teammates who were enrolled in or completed the program, of which 73% were female and 38% were minorities.
At December 31, 2022, we had approximately $25.05 billion in total assets, $20.25 billion in total loans, $19.46 billion in total deposits and $3.20 billion of shareholders’ equity. Our deposits are insured, up to applicable limits, by the Federal Deposit Insurance Corporation (the “FDIC”).
At December 31, 2023, we had approximately $25.20 billion in total assets, $20.55 billion in total loans, $20.71 billion in total deposits and $3.43 billion of shareholders’ equity. Our deposits are insured, up to applicable limits, by the Federal Deposit Insurance Corporation (the “FDIC”).
Mentor Ameris is the Bank’s formal mentorship program, whereby annually, high potential colleagues are identified as mentees and paired with a selected mentor at the Bank. A total of 26 mentees were selected to participate in the program in 2022, of which 40% were female and 28% were minorities.
Mentor Ameris is the Bank’s formal mentorship program, whereby annually, high potential colleagues are identified as mentees and paired with a selected mentor at the Bank. A total of 27 mentees were selected to participate in the program in 2023, of which 62% were female and 41% were minorities.
There are no such restrictions on a bank that is “well-capitalized.” At December 31, 2022, the Company exceeded its minimum capital requirements, inclusive of the capital conservation buffer, on a consolidated basis with common equity Tier 1 capital, Tier 1 capital and total capital equal to 9.86%, 9.86% and 12.90% of its total risk-weighted assets, respectively, and a Tier 1 leverage ratio of 9.36%.
There are no such restrictions on a bank that is “well-capitalized.” At December 31, 2023, the Company exceeded its minimum capital requirements, inclusive of the capital conservation buffer, on a consolidated basis with common equity Tier 1 capital, Tier 1 capital and total capital equal to 11.23%, 11.23% and 14.45% of its total risk-weighted assets, respectively, and a Tier 1 leverage ratio of 9.93%.
All requests for extensions of credit in excess of any of these limits are reviewed by one of seven regional credit officers. When the request for approval exceeds the authority level of the regional credit officer, the approval of the Company’s Chief Credit Officer and/or the Company’s loan committee is required.
All requests for extensions of credit in excess of any of these limits are reviewed by either a market or regional credit officer as appropriate. When the request for approval exceeds the authority level of the market or regional credit officer, the approval of the Company’s Chief Credit Officer and/or the Company’s loan committee is required.
At December 31, 2022, our loan portfolio totaled approximately $20.25 billion, representing approximately 80.8% of our total assets. For additional discussion of our loan portfolio, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Loans.” Commercial Real Estate Loans.
At December 31, 2023, our loan portfolio totaled approximately $20.55 billion, representing approximately 81.5% of our total assets. For additional discussion of our loan portfolio, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Loans.” Commercial Real Estate Loans.
On March 13, 2017, the Company completed the public offering and sale of $75.0 million in aggregate principal amount of its 5.75% Fixed-To-Floating Rate Subordinated Notes due 2027. The subordinated notes were sold to the public at par.
During 2023, the Company repurchased on the open market and subsequently redeemed $12.0 million in aggregate principal of the 2029 subordinated notes. On March 13, 2017, the Company completed the public offering and sale of $75.0 million in aggregate principal amount of its 5.75% Fixed-To-Floating Rate Subordinated Notes due 2027. The subordinated notes were sold to the public at par.
These loans are generally secured by various assets owned by the consumer. 6 Credit Administration We have sought to maintain a comprehensive lending policy that meets the credit needs of each of the communities served by the Bank, including low and moderate-income customers, and to employ lending procedures and policies consistent with this approach.
Credit Administration We have sought to maintain a comprehensive lending policy that meets the credit needs of each of the communities served by the Bank, including low and moderate-income customers, and to employ lending procedures and policies consistent with this 5 approach.
A provision of the BHCA known as the Volcker Rule limits our and the Bank’s ability to engage in proprietary trading ( i.e. , engaging as principal in any purchase or sale of one or more financial instruments) or to acquire or retain as principal any ownership interest in or sponsor a covered fund, including private equity and hedge funds. 11 Source of Strength As a bank holding company, we are expected to act as a source of financial strength for the Bank and to commit resources to support the Bank.
A provision of the BHCA known as the Volcker Rule limits our and the Bank’s ability to engage in proprietary trading ( i.e. , engaging as principal in any purchase or sale of one or more financial instruments) or to acquire or retain as principal any ownership interest in or sponsor a covered fund, including private equity and hedge funds.
The FDIC also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance if the institution has no tangible capital. Management is not aware of any existing circumstances that would result in termination of the Bank’s deposit insurance. Branching The Bank has branch offices in Alabama, Florida, Georgia, North Carolina and South Carolina.
The FDIC also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance if the institution has no tangible capital. Management is not aware of any existing circumstances that would result in termination of the Bank’s deposit insurance.
The Company also originates first mortgage residential mortgage loans and generally enters into a commitment to sell these loans in the secondary market. We have not made or participated in foreign, energy-related or subprime loans.
The Company also originates first mortgage residential mortgage loans and generally enters into a commitment to sell these loans in the secondary market. We have not made or participated in foreign, energy-related or subprime loans. In addition, the Company may buy loan participations or portions of national credits from time to time.
The terms of these loans typically range from 12 to 240 months and vary based upon the nature of collateral and size of the loan.
The terms of these loans typically range from 12 to 240 months and vary based upon the nature of collateral and size of the loan. These loans are generally secured by various assets owned by the consumer.
In addition, the Consumer Financial Protection Bureau (the "CFPB") supervises the Bank with respect to consumer protection laws and regulations. Federal Law Restrictions on the Company’s Activities and Investments As a registered bank holding company, we are subject to regulation under the Bank Holding Company Act (the “BHCA”) and to the supervision, examination and reporting requirements of the Federal Reserve.
Federal Law Restrictions on the Company’s Activities and Investments As a registered bank holding company, we are subject to regulation under the Bank Holding Company Act (the “BHCA”) and to the supervision, examination and reporting requirements of the Federal Reserve.
Over the past few years, our Bank has faced strong competition in attracting deposits at profitable levels. Competition for deposits comes from other commercial banks, thrift institutions, savings banks, internet banks, credit unions, and brokerage and investment banking firms. Interest rates, online banking capabilities, convenience of office locations and marketing are all significant factors in our Bank’s competition for deposits.
Over the past few years, our Bank has faced strong competition in attracting deposits at profitable levels. Competition for deposits comes from other commercial banks, thrift institutions, savings banks, internet banks, credit unions, and brokerage 7 and investment banking firms.
The Company’s securities are held in safekeeping accounts at approved correspondent banks Deposits The Company provides a full range of deposit accounts and services to both retail and commercial customers.
The written investment policy is reviewed annually by the Board and updated as needed. 6 The Company’s securities are held in safekeeping accounts at approved correspondent banks Deposits The Company provides a full range of deposit accounts and services to both retail and commercial customers.
Under federal law, the ability of an insured depository institution such as the Bank to pay dividends or other distributions is restricted or prohibited if (i) the institution would fail to satisfy the regulatory capital conservation buffer requirement following the distribution, (ii) the distribution would cause the institution to become undercapitalized or (iii) the institution is in default of its payment of deposit insurance assessments to the FDIC.
As of December 31, 2023, there was approximately $149.3 million of retained earnings of our Bank available for payment of cash dividends under applicable regulations without obtaining regulatory approval. 10 Under federal law, the ability of an insured depository institution such as the Bank to pay dividends or other distributions is restricted or prohibited if (i) the institution would fail to satisfy the regulatory capital conservation buffer requirement following the distribution, (ii) the distribution would cause the institution to become undercapitalized or (iii) the institution is in default of its payment of deposit insurance assessments to the FDIC.
This support may be required at times when we might not be inclined to provide it. In addition, any capital loans made by us to the Bank will be repaid only after the Bank’s deposits and various other obligations are repaid in full. Payment of Dividends and Other Restrictions Ameris is a legal entity separate and distinct from its subsidiaries.
In addition, any capital loans made by us to the Bank will be repaid only after the Bank’s deposits and various other obligations are repaid in full. Payment of Dividends and Other Restrictions Ameris is a legal entity separate and distinct from its subsidiaries. The principal source of our cash revenues is dividends from the Bank.
The Company’s benefits programs also include access to a network of nearby providers with options for either in-person care or virtual visits at any time.
The Company’s 401(k) plan matches 50% of each employee’s elective deferral amount, up to the first 8% of the contribution. The Company’s benefits programs also include access to a network of nearby providers with options for either in-person care or virtual visits at any time.
Our ALCO committee implements the investment policy and portfolio strategies and monitors the portfolio. Reports on all purchases, sales, net profits or losses and market appreciation or depreciation of the bond portfolio are reviewed by our Board of Directors each quarter. The written investment policy is reviewed annually by the Company’s Board of Directors and updated as needed.
Reports on all purchases, sales, net profits or losses and market appreciation or depreciation of the bond portfolio are reviewed by our board of directors (the “Board”) each quarter.
Failure to meet these capital requirements could subject Ameris and the Bank to a variety of enforcement actions, including the issuance of a capital directive, the termination of deposit insurance by the FDIC and certain other restrictions on our business. 12 In addition, under the FDIC’s “prompt corrective action” framework, the FDIC may impose various restrictions, including limitations on growth and the payment of dividends, if the Bank becomes undercapitalized.
Failure to meet these capital requirements could subject Ameris and the Bank to a variety of enforcement actions, including the issuance of a capital directive, the termination of deposit insurance by the FDIC and certain other restrictions on our business.
The Federal Reserve, the FDIC and the GDBF regularly examine the operations of the Company and the Bank and are given the authority to approve or disapprove mergers, consolidations, the establishment of branches and similar corporate actions. These agencies also have the power to prevent the continuance or development of unsafe or unsound banking practices or other violations of law.
The Federal Reserve, the FDIC and the GDBF regularly examine the operations of the Company and the Bank and are given the authority to approve or disapprove mergers, consolidations, the establishment of branches and 9 similar corporate actions.
We and the Bank maintain policies, procedures and other internal controls designed to comply with these AML requirements and sanctions programs. Federal Home Loan Bank System Our Company has a correspondent relationship with the Federal Home Loan Bank (“FHLB”) of Atlanta, which is one of 12 regional FHLBs that administer the home financing credit function of banking institutions.
Federal Home Loan Bank System Our Company has a correspondent relationship with the FHLB of Atlanta, which is one of 12 regional FHLBs that administer the home financing credit function of banking institutions.
The Federal Reserve also has established rules governing routing and exclusivity that require debit card issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product. Consumer Protection Laws The Bank is subject to a number of federal and state laws designed to protect customers and promote lending to various sectors of the economy and population.
The Federal Reserve also has established rules governing routing and exclusivity that require debit card issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.
After a bank has established branches in a state through an interstate merger transaction, the bank may establish and acquire additional branches at any location in the state where a bank headquartered in that state could have established or acquired branches under applicable federal or state law. 14 Community Reinvestment Act The Community Reinvestment Act (the “CRA”) requires federal bank regulatory agencies to encourage financial institutions to meet the credit needs of low- and moderate-income borrowers in their local communities.
After a bank has established branches in a state through an interstate merger transaction, the bank may establish and acquire additional branches at any location in the state where a bank headquartered in that state could have established or acquired branches under applicable federal or state law.
Under the current methodology, the Bank’s assessment rates are based on an initial base assessment rate of 3 to 30 cents per $100 of insured deposits, subject to certain adjustments, and may range from 1.5 to 40 cents after applying adjustments.
Under the current methodology, the Bank’s assessment rates are based on an initial base assessment rate of 5 to 32 cents per $100 of insured deposits, subject to certain adjustments, and may range from 2.5 to 42 cents after applying adjustments. These rates will remain in effect until the designated reserve ratio meets or exceeds 2%, absent further FDIC action.
The principal source of our cash revenues is dividends from the Bank. Federal and state law limit the Bank’s ability to pay dividends to Ameris.
Federal and state law limit the Bank’s ability to pay dividends to Ameris.
Traditionally, the Company has purchased and held investment securities with very high levels of credit quality, favoring investments backed by direct or indirect guarantees of the U.S. government. 7 While our asset/liability management policy permits our Company to trade securities to improve the quality of yields or marketability or to realign the composition of the portfolio, the Bank historically has not done so to any significant extent.
While our asset/liability management policy permits our Company to trade securities to improve the quality of yields or marketability or to realign the composition of the portfolio, the Bank historically has not done so to any significant extent. Our Asset and Liability Committee (the “ALCO Committee”) implements the investment policy and portfolio strategies and monitors the portfolio.
In November 2021, the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency issued a joint final rule to establish computer-security incident notification requirements for banking organizations and their bank service providers. 15 Banks and their service providers must comply with this rule as of May 1, 2022.
An institution’s failure to have adequate cybersecurity safeguards in place can result in supervisory criticism, monetary penalties and reputational harm. In November 2021, the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency issued a joint final rule to establish computer-security incident notification requirements for banking organizations and their bank service providers.
Competition for loans comes from other commercial banks, thrift institutions, savings banks, insurance companies, consumer finance companies, credit unions, mortgage companies, leasing companies and other institutional and non-traditional lenders. In order to remain competitive, our Bank has varied interest rates and loan fees to some degree as well as increased the number and complexity of services provided.
In order to remain competitive, our Bank has varied interest rates and loan fees to some degree as well as increased the number and complexity of services provided.
Anti-Money Laundering and Sanctions Compliance The Bank Secrecy Act, the USA PATRIOT Act of 2001 and other federal laws and regulations require financial institutions, among other things, to institute and maintain an effective anti-money laundering (“AML”) program.
The proposal would adopt an approach for future adjustments to the interchange fee cap, which would occur every other year based on issuer cost data gathered by the Federal Reserve from large debit card issuers. 14 Anti-Money Laundering and Sanctions Compliance The Bank Secrecy Act, the USA PATRIOT Act of 2001 and other federal laws and regulations require financial institutions, among other things, to institute and maintain an effective anti-money laundering (“AML”) program.
In February 2023, the Company notified holders of its 5.75% Fixed-To-Floating Rate Subordinated Notes due 2027 that the notes would be redeemed in full at the March 15, 2023 interest payment date. The Company has long-term subordinated deferrable interest debentures with a net book carrying value of $128.3 million as of December 31, 2022.
The Company redeemed these notes in full on the March 15, 2023 interest payment date. The Company has long-term subordinated deferrable interest debentures with a net book carrying value of $130.3 million as of December 31, 2023. The majority of these trust preferred securities were assumed as liabilities in previous whole bank acquisitions.
Certain extensions of credit to these insiders also require the approval of the bank’s board of directors.
Certain extensions of credit to these insiders also require the approval of the bank’s board of directors. Additionally, the Federal Deposit Insurance Act and Georgia law limit asset sales and purchases between a bank and its insiders.
As of December 31, 2022, our C&D concentration as a percentage of capital totaled 79.4% and our CRE concentration, net of owner-occupied loans, as a percentage of capital totaled 291.7%.
As of December 31, 2023, our C&D concentration as a percentage of capital totaled 74.0% and our CRE concentration, net of owner-occupied loans, as a percentage of capital totaled 281.9%. Branching The Bank has branch offices in Alabama, Florida, Georgia, North Carolina and South Carolina.
Our lending policy requires analysis of the borrower’s projected cash flow and ability to service the debt. The Bank has purchased loans outside of its market area.
Our lending policy requires analysis of the borrower’s projected cash flow and ability to service the debt. The Bank originates loans outside of our market areas through our national lines of business, including equipment finance, premium finance and government guaranteed lending. We actively market our services to qualified lending customers in both the commercial and consumer sectors.
Removed
In addition, the Company does not regularly buy loan participations or portions of national credits but from time to time, may acquire balances subject to participation agreements through acquisition. Approximately 1% of the Company’s loan portfolio was loan participations purchased at December 31, 2022.
Added
Traditionally, the Company has purchased and held investment securities with very high levels of credit quality, favoring investments backed by direct or indirect guarantees of the U.S. government.
Removed
These include residential mortgage loan pools collateralized by properties located outside our Southeast markets, specifically in California, Washington and Illinois, consumer installment home improvement loans made to borrowers throughout the United States and commercial insurance premium finance loans made to borrowers throughout the United States. These purchases were reviewed and approved by the Company's loan committee.
Added
Interest rates, online banking capabilities, convenience of office locations and marketing are all significant factors in our Bank’s competition for deposits. Competition for loans comes from other commercial banks, thrift institutions, savings banks, insurance companies, consumer finance companies, credit unions, mortgage companies, leasing companies and other institutional and non-traditional lenders.
Removed
The majority of these trust preferred securities were assumed as liabilities in previous whole bank acquisitions. The Company also enters into repurchase agreements.
Added
These agencies also have the power to prevent the continuance or development of unsafe or unsound banking practices or other violations of law. In addition, the Consumer Financial Protection Bureau (the "CFPB") supervises the Bank with respect to consumer protection laws and regulations.
Removed
The Company’s 401(k) plan matches 50% of each employee’s elective deferral amount, up to the first 6% of the contribution. Beginning January 1, 2023, the Company's 401(k) Plan match increased to 50% of each employee’s elective deferral amount, up to the first 8% of the contribution.
Added
Source of Strength As a bank holding company, we are expected to act as a source of financial strength for the Bank and to commit resources to support the Bank. This support may be required at times when we might not be inclined to provide it.
Removed
As of December 31, 2022, there was approximately $186.5 million of retained earnings of our Bank available for payment of cash dividends under applicable regulations without obtaining regulatory approval.
Added
In addition, under the FDIC’s “prompt corrective action” framework, the FDIC may impose various restrictions, including limitations on growth and the payment of dividends, if the Bank becomes undercapitalized.
Removed
On March 27, 2020, the CARES Act was signed into law and includes a provision that permits financial institutions to defer temporarily the use of CECL.
Added
On November 16, 2023, the FDIC approved a final rule to implement a special assessment to recover the loss to the DIF resulting from the closures of Silicon Valley Bank and Signature Bank.
Removed
Beginning with the first quarterly assessment period of 2023, the Bank’s assessment rates will be based on an initial base assessment rate of 5 to 32 cents per $100 of insured deposits, subject to certain adjustments, and may range from 2.5 to 42 cents after applying adjustments.
Added
The special assessment was determined based on an annual rate of 13.4 basis points applied to an institution's estimated uninsured deposits in excess of $5 billion over an anticipated eight quarterly assessment periods.
Removed
These elevated rates will remain in effect until the designated reserve ratio meets or exceeds 2%, absent further FDIC board action.
Added
The FDIC retains the ability to cease collection early or impose an extended special assessment collection period after the initial eight-quarter collection period to collect the difference between losses and the amounts collected, and impose a one-time final shortfall special assessment after both receiverships terminate.
Removed
An institution’s failure to have adequate cybersecurity safeguards in place can result in supervisory criticism, monetary penalties and reputational harm.
Added
The Company recognized an expense of $11.6 million in the fourth quarter of 2023 related to the special assessment. On February 23, 2024, the FDIC provided an updated estimated loss to the DIF resulting from the receiverships of approximately $20.4 billion from the previous estimate of $16.3 billion.
Removed
Our Company’s loan policies establish limits on loan-to-value ratios that are equal to or less than those established in such regulations.
Added
Loss estimates will be periodically updated based on losses incurred and recoveries received. The amount of any additional assessment to the Company is unknown and will be recognized, if applicable, when it becomes reasonably estimable.
Removed
COVID-19 Relief Measures Congress, various federal agencies and state governments have taken measures to address the economic and social consequences of the COVID-19 pandemic, including the enactment on March 27, 2020 of the CARES Act, which, among other things, established various initiatives to protect individuals, businesses and local economies in an effort to lessen the impact of the pandemic on consumers and businesses.
Added
Community Reinvestment Act The Community Reinvestment Act (the “CRA”) requires federal bank regulatory agencies to encourage financial institutions to meet the credit needs of low- and moderate-income borrowers in their local communities.
Removed
These initiatives included the PPP, relief with respect to troubled debt restructurings (“TDRs”), mortgage forbearance and extended unemployment benefits. The Consolidated Appropriations Act, 2021, enacted on December 27, 2020, extended some of these relief provisions in certain respects.
Added
In October 2023, the federal regulatory agencies issued a joint final rule to modernize the CRA regulatory framework. The final rule is intended, among other things, to adapt to changes in the banking industry, including the expanded role of mobile and online banking, and to tailor performance standards to account for differences in bank size and business models.
Removed
The PPP permitted small businesses, sole proprietorships, independent contractors and self-employed individuals to apply for loans from existing SBA lenders and other approved regulated lenders that enroll in the program, subject to numerous limitations and eligibility criteria.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

29 edited+30 added−28 removed88 unchanged
Biggest changeThe burden imposed by federal and state regulations puts banks at a competitive disadvantage compared to less regulated competitors such as finance companies, mortgage banking companies and leasing companies. In addition, from time to time, various legislative and regulatory initiatives are introduced in Congress and state legislatures, or by regulatory agencies, that may impact the Company or the Bank.
Biggest changeBanking regulations are primarily intended to protect the broader banking system, the FDIC’s Deposit Insurance Fund and depositors, not shareholders. The burden imposed by federal and state regulations puts banks at a competitive disadvantage compared to less regulated competitors such as finance companies, mortgage banking companies and leasing companies.
De novo branching and any acquisition carry with it numerous risks, including the following: • the inability to obtain all required regulatory approvals; • significant costs and anticipated operating losses associated with establishing a de novo branch or a new bank; • the inability to secure the services of qualified senior management; • the local market may not accept the services of a new bank owned and managed by a bank holding company headquartered outside of the market area of the new bank; • economic downturns in the new market; • the inability to obtain attractive locations within a new market at a reasonable cost; and • the additional strain on management resources and internal systems and controls.
De novo branching and any acquisition carry with it numerous risks, including the following: • the inability to obtain all required regulatory approvals; • significant costs and anticipated operating losses associated with establishing a de novo branch or a new bank; • the inability to secure the services of qualified senior management; • the local market may not accept the services of a new bank owned and managed by a bank holding company headquartered outside of the market area of the new bank; 20 • economic downturns in the new market; • the inability to obtain attractive locations within a new market at a reasonable cost; and • the additional strain on management resources and internal systems and controls.
We carefully monitor internal and external developments for areas of potential reputational risk and have established governance structures to assist in evaluating such risks in our business practices and decisions, but we cannot be certain that our efforts will completely mitigate these risks. We may not be able to attract and retain skilled people.
We carefully monitor internal and external developments for areas of potential reputational risk and have established governance structures to assist in evaluating such risks in our business practices and decisions, but we cannot be certain that our efforts will completely mitigate these risks. 22 We may not be able to attract and retain skilled people.
Adverse developments with respect to the consumer or other external perceptions regarding the practices of our competitors, or our industry as a whole, may also adversely impact our reputation. In addition, adverse reputational 23 impacts on third parties with whom we have important relationships may also adversely impact our reputation.
Adverse developments with respect to the consumer or other external perceptions regarding the practices of our competitors, or our industry as a whole, may also adversely impact our reputation. In addition, adverse reputational impacts on third parties with whom we have important relationships may also adversely impact our reputation.
Additional risks and 17 uncertainties that management is not aware of or focused on or that management currently deems immaterial may also impair the Company’s business operations. This Annual Report is qualified in its entirety by these risk factors.
Additional risks and uncertainties that management is not aware of or focused on or that management currently deems immaterial may also impair the Company’s business operations. This Annual Report is qualified in its entirety by these risk factors.
We employ detection and response mechanisms designed to contain and mitigate security incidents, but early detection may be thwarted by sophisticated attacks and malware designed to avoid detection. 18 We rely heavily on communications and information systems to conduct our business.
We employ detection and response mechanisms designed to contain and mitigate security incidents, but early detection may be thwarted by sophisticated attacks and malware designed to avoid detection. We rely heavily on communications and information systems to conduct our business.
The difference between interest rates charged on interest-earning assets and interest rates paid on interest-bearing liabilities may be affected by changes in market interest rates, changes in relationships between interest rate indices, and changes in the relationships between long-term and short-term market interest rates.
The difference between interest rates charged on interest-earning assets and interest rates paid on interest-bearing liabilities may be affected by 16 changes in market interest rates, changes in relationships between interest rate indices, and changes in the relationships between long-term and short-term market interest rates.
In 2022, net interest income made up 73.8% of our revenue. Unexpected movement in interest rates, that may or may not change the slope of the current yield curve, could cause our net interest margins to decrease, subsequently decreasing net interest income. In addition, such changes could materially adversely affect the valuation of our assets and liabilities.
In 2023, net interest income made up 77.5% of our revenue. Unexpected movement in interest rates, that may or may not change the slope of the current yield curve, could cause our net interest margins to decrease, subsequently decreasing net interest income. In addition, such changes could materially adversely affect the valuation of our assets and liabilities.
We are subject to regulation by various federal and state entities. 21 We are subject to the regulations of the SEC, the Federal Reserve, the FDIC, the GDBF, the CFPB and other governmental agencies and regulatory bodies. New regulations issued by these agencies may adversely affect our ability to carry on our business activities.
We are subject to the regulations of the SEC, the Federal Reserve, the FDIC, the GDBF, the CFPB and other governmental agencies and regulatory bodies. New regulations issued by these agencies may adversely affect our ability to carry on our business activities.
We face risks related to our operational, technological and organizational infrastructure. Our ability to grow and compete is dependent on our ability to build or acquire the necessary operational and technological infrastructure and to manage the cost of that infrastructure while we expand.
Our ability to grow and compete is dependent on our ability to build or acquire the necessary operational and technological infrastructure and to manage the cost of that infrastructure while we expand.
Disruption in the secondary market for residential mortgage loans as well as declines in real estate values, among other economic variables, could result in one or more of the following: • rising interest rates has caused a decline in mortgage originations, which could continue and potentially worsen, negatively impacting our earnings; • our inability to sell mortgage loans on the secondary market could negatively impact our liquidity position; • reductions in real estate values could decrease the potential for mortgage originations, which could negatively impact our earnings; • if it is determined that loans were made in breach of our representations and warranties to the secondary market, we could incur losses associated with the loans; and • increased compliance requirements could result in higher compliance costs, higher foreclosure proceedings or lower loan origination volume, all which could negatively impact future earnings Legislation and regulatory proposals enacted in response to market and economic conditions may materially adversely affect our business and results of operations.
Disruption in the secondary market for residential mortgage loans as well as declines in real estate values, among other economic variables, could result in one or more of the following: • rising interest rates has caused a decline in mortgage originations, which could continue and potentially worsen, negatively impacting our earnings; • our inability to sell mortgage loans on the secondary market could negatively impact our liquidity position; • reductions in real estate values could decrease the potential for mortgage originations, which could negatively impact our earnings; 19 • if it is determined that loans were made in breach of our representations and warranties to the secondary market, we could incur losses associated with the loans; and • increased compliance requirements could result in higher compliance costs, higher foreclosure proceedings or lower loan origination volume, all which could negatively impact future earnings.
Our concentration of real estate loans subjects the Company to risks that could materially adversely affect our results of operations and financial condition. The majority of our loan portfolio is secured by real estate.
Our concentration of real estate loans subjects the Company to risks that could materially adversely affect our results of operations and financial condition. The majority of our loan portfolio is secured by real estate, including commercial and industrial, construction and commercial real estate mortgage loans.
These broad market fluctuations have adversely affected and may continue to adversely affect the market price of our Common Stock. 24 Among the factors that could affect our stock price are: • actual or anticipated quarterly fluctuations in our operating results and financial condition; • changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other financial institutions; • failure to meet analysts’ revenue or earnings estimates; • speculation in the press or investment community; • strategic actions by us or our competitors, such as acquisitions or restructurings; • actions by institutional shareholders; • fluctuations in the stock price and operating results of our competitors; • general market conditions and, in particular, developments related to market conditions for the financial services industry; • proposed or adopted regulatory changes or developments, including changes in accounting rules; • proposed or adopted changes or developments in tax policies or rates; • anticipated or pending investigations, proceedings or litigation that involve or affect us; or • domestic and international economic factors unrelated to our performance.
Among the factors that could affect our stock price are: • actual or anticipated quarterly fluctuations in our operating results and financial condition; • changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other financial institutions; • failure to meet analysts’ revenue or earnings estimates; • speculation in the press or investment community, or in social media; • strategic actions by us or our competitors, such as acquisitions or restructurings; 23 • actions by institutional shareholders; • the soundness of other financial institutions; • fluctuations in the stock price and operating results of our competitors; • general market conditions and, in particular, developments related to market conditions for the financial services industry; • proposed or adopted regulatory changes or developments, including changes in accounting rules; • government intervention in the U.S. financial system; • proposed or adopted changes or developments in tax policies or rates; • anticipated or pending investigations, proceedings or litigation that involve or affect us; and • domestic and international economic or financial services industry factors unrelated to our performance.
As of December 31, 2022, we had outstanding trust preferred securities and accompanying junior subordinated debentures with a carrying value of $128.3 million and other subordinated notes payable with a carrying value of $377.1 million.
As of December 31, 2023, we had outstanding trust preferred securities and accompanying junior subordinated debentures with a carrying value of $130.3 million and other subordinated notes payable with a carrying value of $291.1 million.
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including escalating military tension between Russia and Ukraine, terrorism or other geopolitical events. RISKS RELATED TO OUR COMMON STOCK The price of our Common Stock is volatile and may decline.
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including the current wars in Ukraine and Israel, acts of terrorism or other geopolitical events. RISKS RELATED TO OUR COMMON STOCK The price of our Common Stock is volatile and may decline.
If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities or affect 20 the competitive balance among banks, savings associations, credit unions and other financial institutions.
Such legislation could change the operating environment of Ameris in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive balance among banks, savings associations, credit unions and other financial institutions.
To the extent we are involved in any future cyberattacks or other breaches, our brand and reputation could be affected, which could also have a material adverse effect on our business, financial condition or results of operations.
To the extent we are involved in any future cyberattacks or other breaches, our brand and reputation could be affected, which could also have a material adverse effect on our business, financial condition or results of operations. Our business is highly correlated to local economic conditions in a geographically concentrated part of the United States.
Information security risks for financial institutions like us continue to increase in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.
Additionally, information security may be adversely affected by the current or anticipated impact of military conflict, including the current wars in Ukraine and Israel, acts of terrorism or other geopolitical events. 18 Information security risks for financial institutions like us continue to increase in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.
Consequently, cash-based activities, including further investments in the Bank or in support of the Bank, could require borrowings or additional issuances of common or preferred stock.
Consequently, cash-based activities, including further investments in the Bank or in support of the Bank, could require borrowings or additional issuances of common or preferred stock. We are subject to regulation by various federal and state entities.
In addition, actual net investment income and/or cash flows from investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, may differ from those anticipated at the time of investment as a result of interest rate fluctuations. Cyberattacks or other security breaches could have a material adverse effect on our business.
In addition, actual net investment income and/or cash flows from investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, may differ from those anticipated at the time of investment as a result of interest rate fluctuations. Our capital position could be adversely impacted by declines in the fair market value of our securities portfolio.
Fiscal policy, the other principal tool of the federal government to oversee the national economy is largely in the hands of Congress through its authority to make taxation and budget decisions, subject to Presidential approval. These decisions may have a significant impact on the economic sectors in which we operate and could adversely affect our results of operations.
Fiscal policy, the other principal tool of the federal government to oversee the national economy is largely in the hands of Congress through its authority to make taxation and budget decisions, subject to Presidential approval.
We may need to rely on the financial markets to provide needed capital. Our Common Stock is listed and traded on the Nasdaq Global Select Market (“Nasdaq”).
These decisions may have a significant impact on the economic sectors in which we operate and could adversely affect our results of operations. 21 We may need to rely on the financial markets to provide needed capital. Our Common Stock is listed and traded on the Nasdaq Global Select Market (“Nasdaq”).
Holders of our Common Stock are only entitled to receive such dividends as our Board of Directors may declare out of funds legally available for such payments. Although we have consistently paid dividends on our Common Stock in recent years, the payment of dividends could be suspended at any time.
You may not receive dividends on the Common Stock. Holders of our Common Stock are only entitled to receive such dividends as our Board may declare out of funds legally available for such payments.
Sales of a significant number of shares of our Common Stock in the public markets, or the perception of such sales, could depress the market price of our Common Stock.
Although we have consistently paid dividends on our Common Stock in recent years, the payment of dividends could be suspended at any time. 24 Sales of a significant number of shares of our Common Stock in the public markets, or the perception of such sales, could depress the market price of our Common Stock.
Declines in real estate values could cause the revenue stream from those loans to come under stress and require additional provision to the allowance for loan losses.
Declines in real estate values could cause the revenue stream from those loans to come under stress and require additional provision to the allowance for loan losses. In addition, our ability to dispose of foreclosed real estate and resolve credit quality issues is dependent upon real estate activity and real estate prices, both of which can be highly unpredictable.
Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future.
Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future. In addition, the borrowing of funds or issuance of debt would increase our leverage and decrease our liquidity, and the issuance of additional equity securities would dilute the interests of our existing shareholders.
Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system. Such legislation could change the operating environment of Ameris in substantial and unpredictable ways.
In addition, from time to time, various legislative and regulatory initiatives are introduced in Congress and state legislatures, or by regulatory agencies, that may impact the Company or the Bank. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system.
The banking industry is heavily regulated. We are subject to examinations, supervision and comprehensive regulation by various federal and state agencies. Our compliance with these regulations is costly and restricts certain of our activities. Banking regulations are primarily intended to protect the broader banking system, the FDIC’s Deposit Insurance Fund and depositors, not shareholders.
Legislation and regulatory proposals enacted in response to market and economic conditions may materially adversely affect our business and results of operations. The banking industry is heavily regulated. We are subject to examinations, supervision and comprehensive regulation by various federal and state agencies. Our compliance with these regulations is costly and restricts certain of our activities.
In addition, we may use all or a portion of the proceeds of an offering to support our capital.
In addition, we may use all or a portion of the proceeds of an offering to support our capital. You may not agree with the ways we decide to use the proceeds of any stock offerings, and our use of the proceeds may not yield any profits. We face risks related to our operational, technological and organizational infrastructure.
Removed
Additionally, information security may be adversely affected by the current or anticipated impact of military conflict, including escalating military tension between Russia and Ukraine, terrorism or other geopolitical events.
Added
These types of loans are generally viewed as having more risk of default and are typically larger than residential real estate loans or consumer loans.
Removed
The COVID-19 pandemic continues to affect us and our customers, employees and third-party service providers, and while the adverse impacts on our business, financial position, operations and prospects have dissipated, they have not been completely eliminated.
Added
Because our loan portfolio contains a significant number of commercial and industrial, construction and commercial real estate loans with relatively large balances, the deterioration of one or a few of these loans could cause a significant increase in non-performing loans.
Removed
During 2020, as a result of the uncertainty, volatility and disruption in financial markets and in governmental, commercial and consumer activity caused by the COVID-19 pandemic, our business and consumer customers experienced varying degrees of financial distress, adversely affecting their ability to timely pay interest and principal on their loans and the value of the collateral securing their obligations.
Added
Increases in non-performing loans have resulted in a net loss of earnings from particular loans, an increase in credit loss expense and an increase in loan charge-offs, and these and future instances could have a material adverse effect on our business, financial condition and results of operations. Our allowance for credit losses may be insufficient.
Removed
While all our branch locations are currently open and operating during normal business hours, in order to protect the health of our customers and employees, we continue to take additional precautions within our branch locations, including enhanced cleaning procedures.
Added
We maintain allowances for credit losses on loans, securities and off-balance sheet credit exposures. In the case of loans and securities, allowances for credit losses are contra-asset valuation accounts that are deducted from the amortized cost basis of these assets to present the net amount expected to be collected.
Removed
These actions in response to the COVID-19 pandemic, and similar actions by our vendors and business partners, have not materially impaired our ability to support our employees, conduct our business or serve our customers, but there is no assurance that these actions will be sufficient to successfully mitigate the risks presented by COVID-19 or that our ability to operate will not be materially affected going forward.
Added
In the case of off-balance-sheet credit exposures, the allowance for credit losses is a liability account reported as a component of accrued interest payable and other liabilities in our consolidated balance sheets.
Removed
For instance, business operations may be disrupted if key personnel or significant portions of employees are unable to work effectively, including because of illness, quarantines, government actions or other restrictions in connection with the COVID-19 pandemic.
Added
The amount of each allowance account represents management's best estimate of current expected credit losses on these financial instruments considering available information, from internal and external sources, relevant to assessing exposure to credit loss over the contractual term of the instrument. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts.
Removed
Similarly, if any of our vendors or business partners become unable to continue to provide their products and services which we rely upon to maintain our day-to-day operations, our ability to serve our customers could be impacted. Although the aforementioned risks have much dissipated compared to prior periods, they have not been completely eliminated.
Added
As a result, the determination of the appropriate level of allowance for credit losses inherently involves a high degree of subjectivity and requires us to make significant estimates related to current and expected future credit risks and trends, all of which may undergo material changes.
Removed
The risks of new variants and new outbreaks continue to exist. Given the ongoing and dynamic nature of the circumstances, it is not possible to accurately predict the extent, severity or duration of these conditions or when normal economic and operating conditions will fully resume.
Added
Deterioration in economic conditions, including the possibility of a recession, affecting borrowers and securities issuers; inflation; rising interest rates; new information regarding existing loans, credit commitments and securities holdings; natural disasters and risks related to climate change; and identification of additional problem loans, ratings down-grades and other factors, both within and outside of our control, may require an increase in the allowances for credit losses on loans, securities and off-balance sheet credit exposures.
Removed
For this reason, the extent to which the COVID-19 pandemic affects our business, operations and financial condition, as well as our regulatory capital and liquidity ratios and credit ratings, is highly uncertain and unpredictable and depends on, among other things, new information that may emerge concerning the scope, duration and severity of the COVID-19 pandemic, actions taken by governmental authorities and other parties in response to the pandemic, the scale of distribution and public acceptance of the vaccines for COVID-19 and the effectiveness of such vaccines in stemming or stopping the spread of COVID-19.
Added
In addition, bank regulatory agencies periodically review our allowance for credit losses and may require an increase in credit loss expense or the recognition of further loan charge-offs, based on judgments different than those of management.
Removed
Our ability to dispose of foreclosed real estate and resolve credit quality issues is dependent upon real estate activity and real estate prices, both of which can become highly unpredictable. 19 Greater loan losses than expected may materially adversely affect our earnings.
Added
Furthermore, if any charge-offs related to loans, securities or off-balance sheet credit exposures in future periods exceed our allowances for credit losses on loans, securities or off-balance sheet credit exposures, we will need to recognize additional credit loss expense to increase the applicable allowance.
Removed
We, as lenders, are exposed to the risk that our customers will be unable to repay their loans in accordance with their terms and that any collateral securing the payment of their loans may not be sufficient to assure repayment.
Added
Any increase in the allowance for credit losses on loans, securities and/or off-balance sheet credit exposures will result in a decrease in net income and, possibly, capital, and may have a material adverse effect on our business, financial condition and results of operations. We are subject to risk arising from conditions in the commercial real estate market.
Removed
Credit losses are inherent in the business of making loans and could have a material adverse effect on our operating results. Our credit risk with respect to our real estate and construction loan portfolio will relate principally to the creditworthiness of business entities and the value of the real estate serving as security for the repayment of loans.
Added
As of December 31, 2023, commercial real estate mortgage loans comprised approximately 39.8% of our loan portfolio. Commercial real estate mortgage loans generally involve a greater degree of credit risk than residential real estate mortgage 17 loans because they typically have larger balances and are more affected by adverse conditions in the economy.
Removed
Our credit risk with respect to our commercial loan portfolio will relate principally to the general creditworthiness of businesses within our local markets. Our credit risk with respect to our consumer loan portfolio will relate principally to the general creditworthiness of individuals.
Added
Because payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy or changes in government regulations.
Removed
We make various assumptions and judgments about the collectability of our loan portfolio and provide an allowance for estimated loan losses based on a number of factors. We believe that our current allowance for loan losses is adequate.
Added
In recent years, commercial real estate markets have been particularly impacted by the economic disruption resulting from the COVID-19 pandemic, which has also been a catalyst for the evolution of various remote work options that could impact the long-term performance of some types of office properties within our commercial real estate portfolio.
Removed
However, if our assumptions or judgments prove to be incorrect, the allowance for loan losses may not be sufficient to cover actual loan losses.
Added
Accordingly, the federal banking regulatory agencies have expressed concerns about weaknesses in the current commercial real estate market.
Removed
We may have to increase our allowance in the future in response to the request of one of our primary banking regulators, to adjust for changing conditions and assumptions, or as a result of any deterioration in the quality of our loan portfolio.
Added
Failures in our risk management policies, procedures and controls could adversely affect our ability to manage this portfolio going forward and could result in an increased rate of delinquencies in, and increased losses from, this portfolio, which, accordingly, could have a material adverse effect on our business, financial condition and results of operations. We are subject to liquidity risk.
Removed
The actual amount of future provisions for loan losses cannot be determined at this time and may vary from the amounts of past provisions. Our business is highly correlated to local economic conditions in a geographically concentrated part of the United States.
Added
We require liquidity to meet our deposit and debt obligations as they come due. Our access to funding sources in amounts adequate to finance our activities or on terms that are acceptable to us could be impaired by factors that affect us specifically or the financial services industry or economy generally.
Removed
You may not agree with the ways we decide to use the proceeds of any stock offerings, and our use of the proceeds may not yield any profits. 22 We may be adversely affected by the transition away from LIBOR for our variable rate loans, derivative contracts and other financial assets and liabilities.
Added
Factors that could reduce our access to liquidity sources include a downturn in the economy in the southeastern United States, difficult credit markets or adverse regulatory actions against us. Our access to deposits may also be affected by the liquidity needs of our depositors.
Removed
Our business relies upon a large volume of loans, derivative contracts and other financial instruments which are directly or indirectly dependent on LIBOR to establish their interest rate and/or value. The administrator of LIBOR extended publication of the most commonly used U.S. dollar LIBOR settings to June 30, 2023 and ceased publishing other LIBOR settings on December 31, 2021.
Added
A substantial majority of our liabilities are demand, savings, interest checking and money market deposits, which are payable on demand or upon several days’ notice, while by comparison, a substantial portion of our assets are loans, which cannot be called or sold in the same timeframe.
Removed
On March 15, 2022, President Biden signed into law the “Adjustable Interest Rate (LIBOR) Act,” as part of the Consolidated Appropriations Act, 2022, which provides for a statutory transition to a replacement rate selected by the Federal Reserve based on the SOFR for contracts referencing LIBOR that contain no fallback provisions or ineffective fallback provisions, unless a replacement rate is selected by a determining person as outlined in the statute.
Added
We may not be able to replace maturing deposits and advances as necessary in the future, especially if a large number of our depositors sought to withdraw their accounts, regardless of the reason.
Removed
On December 16, 2022, the Federal Reserve adopted a final rule implementing the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023.
Added
Our access to deposits may be negatively impacted by, among other factors, periods of low interest rates or higher interest rates which could promote increased competition for deposits, including from new financial technology competitors, or provide customers with alternative investment options.
Removed
The U.S. federal banking agencies issued guidance strongly encouraging banking organizations to cease using U.S. dollar LIBOR as a reference rate in new contracts as soon as practicable and in any event by December 31, 2021.
Added
Additionally, negative news about us or the banking industry in general could negatively impact market and/or customer perceptions of the Company, which could lead to a loss of depositor confidence and an increase in deposit withdrawals, particularly among those with uninsured deposits.
Removed
We have significant but declining exposure to financial instruments with attributes that are either directly or indirectly dependent on LIBOR to establish their interest rate and/or value, some of which mature after June 30, 2023.
Added
Furthermore, as we and other regional banking organizations experienced in 2023, the failure of other financial institutions may cause deposit outflows as customers spread deposits among several different banks so as to maximize their amount of FDIC insurance, move deposits to banks deemed "too big to fail" or remove deposits from the banking system entirely.
Removed
We have established a working group, consisting of key stakeholders from throughout the Company, to monitor developments relating to LIBOR changes and to guide the Bank’s response.
Added
As of December 31, 2023, approximately 43.7% of our deposits were uninsured, and we rely on these deposits for liquidity. A failure to maintain adequate liquidity could have a material adverse effect on our business, financial condition and results of operations. Unrealized losses in our securities portfolio could affect liquidity.
Removed
This team is continuing to work to ensure that technology systems are prepared for the transition, loan documents that reference LIBOR-based rates have been appropriately amended to reference other methods of interest rate determinations and internal and external stakeholders are apprised of the transition.
Added
As market interest rates have increased, we have experienced unrealized losses on our available for sale securities portfolio. Unrealized losses related to available for sale securities are reflected in accumulated other comprehensive income in our consolidated balance sheets and reduce the level of our book capital and tangible common equity.
Removed
Over the next several months, we will continue to transition all remaining LIBOR-based products to an alternative benchmark. We will also continue to evaluate the transition process and align the Company’s trajectory with regulatory guidelines regarding the cessation of LIBOR, including monitoring new developments for transitioning to alternative reference rates, if necessary and as needed.

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Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed2 unchanged
Biggest changeAmeris also operates 32 mortgage and loan production offices, all of which are subject to building leases. At December 31, 2022, there were no significant encumbrances on the offices, equipment or other operational facilities owned by Ameris and the Bank. The Company believes that our properties are suitable for the purposes of our operations.
Biggest changeAmeris also operates 32 mortgage and loan production offices, all of which are subject to building leases. At December 31, 2023, there were no significant encumbrances on the offices, equipment or other operational facilities owned by Ameris and the Bank. We believe that our properties are suitable for the purposes of our operations. 26

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS Disclosure concerning legal proceedings can be found in Item 8. "Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 19. Commitments and Contingent Liabilities" under the caption, "Litigation and Regulatory Contingencies," which is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 26 PART II
Biggest changeITEM 3. LEGAL PROCEEDINGS Disclosure concerning legal proceedings can be found in Item 8. "Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 19. Commitments and Contingent Liabilities" under the caption, "Litigation and Regulatory Contingencies," which is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 27 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Company is required to comply with the restrictions on the payment of dividends in respect of the Common Stock discussed in the section of Part I, Item 1 of this Annual Report captioned “Payment of Dividends and Other Restrictions.” Performance Graph Set forth below is a line graph comparing the change in the cumulative total shareholder return on the Common Stock against the cumulative return of the NASDAQ Stock Market (U.S.
Biggest changeThe Company is required to comply with the restrictions on the payment of dividends in respect of the Common Stock discussed in the section of Part I, Item 1 of this Annual Report captioned “Payment of Dividends and Other Restrictions.” Repurchases of Common Stock The following table provides information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our Common Stock during the three-month period ended December 31, 2023.
Companies) index and the index of KBW NASDAQ Bank Stocks for the five-year period commencing December 31, 2017 and ending December 31, 2022. This line graph assumes an investment of $100 on December 31, 2017, and reinvestment of dividends and other distributions to shareholders.
Companies) index and the index of KBW NASDAQ Bank Stocks for the five-year period commencing December 31, 2018 and ending December 31, 2023. This line graph assumes an investment of $100 on December 31, 2018, and reinvestment of dividends and other distributions to shareholders.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Common Stock is listed on Nasdaq under the symbol “ABCB”. As of February 17, 2023, there were approximately 3,556 holders of record of the Common Stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Our Common Stock The Common Stock is listed on Nasdaq under the symbol “ABCB”. As of February 20, 2024, there were approximately 2,644 holders of record of the Common Stock.
The Company believes a portion of Common Stock outstanding is held either in nominee name or street name brokerage accounts; therefore, the Company is unable to determine the number of beneficial owners of the Common Stock.
We believe a portion of Common Stock outstanding is held either in nominee name or street name brokerage accounts; therefore, the Company is unable to determine the number of beneficial owners of the Common Stock. The amount of and nature of any dividends declared on our Common Stock will be determined by our Board in its sole discretion.
Period Ending Index 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 Ameris Bancorp 100.00 66.31 90.22 82.73 109.23 105.04 NASDAQ Stock Market (US Companies) 100.00 97.16 132.81 192.47 235.15 158.65 KBW NASDAQ Bank Stocks 100.00 82.29 112.01 100.46 138.97 109.23 Source: S&P Global Market Intelligence Pursuant to the regulations of the SEC, this performance graph is not “soliciting material,” is not deemed filed with the SEC and is not to be incorporated by reference in any filing of the Company under the Securities Act or the Exchange Act.
Period Ending Index 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Ameris Bancorp 100.00 136.06 124.77 164.72 158.41 181.02 NASDAQ Stock Market (US Companies) 100.00 136.69 198.10 242.03 163.28 236.17 KBW NASDAQ Bank Stocks 100.00 136.13 122.09 168.88 132.75 131.57 Source: S&P Global Market Intelligence Pursuant to the regulations of the SEC, this performance graph is not “soliciting material,” is not deemed filed with the SEC and is not to be incorporated by reference in any filing of the Company under the Securities Act or the Exchange Act.
Removed
The amount of and nature of any dividends declared on our Common Stock will be determined by our Board of Directors in its sole discretion.
Added
Period Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (2) October 1, 2023 through October 31, 2023 60,761 $ 37.37 60,000 $ 97,759,204 November 1, 2023 through November 30, 2023 26,400 $ 37.71 26,400 $ 96,763,673 December 1, 2023 through December 31, 2023 — $ — — $ 96,763,673 Total 87,161 $ 37.47 86,400 $ 96,763,673 (1) The shares purchased from October 1, 2023 through October 31, 2023 include 761 shares of common stock surrendered to the Company in payment of the income tax withholding obligations relating to the vesting of shares of restricted stock.
Added
(2) 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.
Added
The Board has subsequently extended the share repurchase program each year since the original authorization, with the most recent extension, which also included the replenishment of the program to $100.0 million, being announced on October 26, 2023. As a result, the Company is currently authorized to engage in additional share repurchases totaling up to $100.0 million through October 31, 2024.
Added
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.
Added
The program does not require the Company to repurchase any specific number of shares.
Added
As of December 31, 2023, an aggregate of $3.2 million, or 86,400 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. 28 Performance Graph Set forth below is a line graph comparing the change in the cumulative total shareholder return on the Common Stock against the cumulative return of the NASDAQ Stock Market (U.S.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeHighlights of the Company’s performance in 2022 include the following: • Growth in net interest income of $145.7 million, representing a 22.2% increase over 2021 • Organic growth in loans of $3.51 billion, or 22.1% • Growth in tangible book value per share 1 of 13.9%, from $26.26 at the end of 2021 to $29.92 at the end of 2022 • Net interest margin of 3.76% during 2022, up 44 basis points from 2021 • Adjusted efficiency ratio 1 of 52.48%, compared with 55.00% in 2021 • Adjusted return on average assets 1 of 1.39%, compared with 1.69% in 2021 • Adjusted return on average tangible common equity 1 of 16.92%, compared with 20.19% in 2021 • Improvement in deposit mix with noninterest bearing deposits representing 40.74% of total deposits at the end of 2022 • Annualized net charge-offs of 0.08% of average total loans ______________________________________________________________________________________________________ 1 A reconciliation of non-GAAP financial measures can be found in the following tables. 28 Adjusted Net Income Reconciliation Year Ended December 31, (dollars in thousands except per share data) 2022 2021 Net income available to common shareholders $ 346,540 $ 376,913 Adjustment items: Merger and conversion charges 1,212 4,206 Gain on sale of mortgage servicing rights (1,356) — Servicing right impairment (21,824) (14,530) Natural disaster expenses 151 — Gain on BOLI proceeds (55) (603) (Gain) loss on sale of premises (45) 510 Tax effect of adjustment items (Note 1) 4,792 2,203 After-tax adjustment items (17,125) (8,214) Adjusted net income $ 329,415 $ 368,699 Average assets $ 23,644,754 $ 21,847,731 Reported return on average assets 1.47 % 1.73 % Adjusted return on average assets 1.39 % 1.69 % Average common equity $ 3,083,081 $ 2,827,669 Average tangible common equity $ 1,947,222 $ 1,826,433 Reported return on average common equity 11.24 % 13.33 % Adjusted return on average tangible common equity 16.92 % 20.19 % Total shareholders' equity $ 3,197,400 $ 2,966,451 Less: Goodwill 1,015,646 1,012,620 Other intangibles, net 106,194 125,938 Total tangible shareholders' equity $ 2,075,560 $ 1,827,893 Period end number of shares 69,369,050 69,609,228 Book value per share $ 46.09 $ 42.62 Tangible book value per share $ 29.92 $ 26.26 Note 1: Tax effect is calculated utilizing a 21% rate for taxable adjustments.
Biggest changeHighlights of the Company’s performance in 2023 include the following: • Growth in tangible book value per share 1 of 12.4%, from $29.92 at the end of 2022 to $33.64 at the end of 2023 • Adjusted efficiency ratio 1 of 52.58%, compared with 52.48% in 2022 • Organic growth in loans of $414.1 million, or 2.1% • Growth in total deposits of $1.25 billion, or 6.4% • Nonperforming portfolio assets, excluding government-guaranteed loans, as a percentage of total assets improved to 0.33% at December 31, 2023, compared with 0.34% at December 31, 2022 • Increase in the allowance for credit losses to 1.52% of loans, from 1.04% at December 31, 2022, due to forecasted economic conditions, particularly related to commercial real estate price levels ______________________________________________________________________________________________________ 1 A reconciliation of non-GAAP financial measures can be found in the following tables. 30 Adjusted Net Income Reconciliation Year Ended December 31, (dollars in thousands except per share data) 2023 2022 Net income available to common shareholders $ 269,105 $ 346,540 Adjustment items: Merger and conversion charges — 1,212 Gain on sale of mortgage servicing rights — (1,356) Servicing right impairment (recovery) — (21,824) FDIC special assessment 11,566 — Natural disaster expenses — 151 Gain on BOLI proceeds (486) (55) Gain on sale of premises (1,903) (45) Tax effect of adjustment items (Note 1) (2,029) 4,792 After-tax adjustment items 7,148 (17,125) Adjusted net income $ 276,253 $ 329,415 Total shareholders' equity $ 3,426,747 $ 3,197,400 Less: Goodwill 1,015,646 1,015,646 Other intangibles, net 87,949 106,194 Total tangible shareholders' equity $ 2,323,152 $ 2,075,560 Period end number of shares 69,053,341 69,369,050 Book value per share $ 49.62 $ 46.09 Tangible book value per share $ 33.64 $ 29.92 Note 1: Tax effect is calculated utilizing a 21% rate for taxable adjustments.
This process involves estimating our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as the provision for credit losses and gains on FDIC-assisted transactions, for tax and financial reporting purposes. These differences result in deferred tax assets and liabilities that are included in our consolidated balance sheet.
This process involves estimating our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as the provision for credit losses and gains on FDIC- 33 assisted transactions, for tax and financial reporting purposes. These differences result in deferred tax assets and liabilities that are included in our consolidated balance sheet.
Past due loans are placed on nonaccrual status when principal or interest is past due 90 days or more unless the loan is well secured and in the process of collection. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.
Past due loans are placed on nonaccrual status when principal or interest is past due 90 days or more unless the loan is well secured and in the process of 44 collection. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.
The allowance for unfunded commitments on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees.
The allowance for unfunded commitments on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the 37 same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees.
If our assets and liabilities were equally flexible and moved concurrently, the impact of any increase or decrease in interest rates on net interest income would be minimal. 44 A simple interest rate “gap” analysis by itself may not be an accurate indicator of how net interest income will be affected by changes in interest rates.
If our assets and liabilities were equally flexible and moved concurrently, the impact of any increase or decrease in interest rates on net interest income would be minimal. A simple interest rate “gap” analysis by itself may not be an accurate indicator of how net interest income will be affected by changes in interest rates.
Management uses the discounted cash flow method or the PD×LGD method, which may be adjusted for qualitative factors, in measuring the ACL for 30 pooled loans. Loans which do not share common risk characteristics are evaluated on an individual basis.
Management uses the discounted cash flow method or the PD×LGD method, which may be adjusted for qualitative factors, in measuring the ACL for pooled loans. Loans which do not share common risk characteristics are evaluated on an individual basis.
It is possible that others, given the same information, may at any point in time reach a different reasonable conclusion. Loans which share common risk characteristics are pooled for the purposes of determining the ACL.
It is possible that others, given the same information, may at any point in time reach a different reasonable conclusion. 32 Loans which share common risk characteristics are pooled for the purposes of determining the ACL.
Also contributing to the decrease was a decrease in variable expenses related to our elevated mortgage production. Income Taxes Income tax expense is influenced by statutory federal and state tax rates, the amount of taxable income, the amount of tax-exempt income and the amount of non-deductible expenses.
Also contributing to the decrease was a decrease in variable expenses related to our mortgage production Income Taxes Income tax expense is influenced by statutory federal and state tax rates, the amount of taxable income, the amount of tax-exempt income and the amount of non-deductible expenses.
The following statistical information should be read in conjunction with the remainder of “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated financial statements and related notes included elsewhere in this Annual Report and in the documents incorporated herein by reference. 31 The following tables set forth the amount of average balance, interest income or interest expense, and average interest rate for each category of interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin on average interest-earning assets.
The following statistical information should be read in conjunction with the remainder of “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated financial statements and related notes included elsewhere in this Annual Report and in the documents incorporated herein by reference. 34 The following tables set forth the amount of average balance, interest income or interest expense, and average interest rate for each category of interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin on average interest-earning assets.
Such agencies may require the Company to recognize additions to the ACL based on their judgments about information available to them at the time of their examination. As discussed in Note 4 to the consolidated financial statements, Management determined the ACL on loans at December 31, 2022 utilizing the Moody's baseline economic forecast.
Such agencies may require the Company to recognize additions to the ACL based on their judgments about information available to them at the time of their examination. As discussed in Note 4 to the consolidated financial statements, Management determined the ACL on loans at December 31, 2023 utilizing the Moody's baseline economic forecast.
The Company does not intend to sell these investment securities at an unrealized loss position at December 31, 2022, and it is more 48 likely than not that the Company will not be required to sell these securities prior to recovery or maturity.
The Company does not intend to sell these investment securities at an unrealized loss position at December 31, 2023, and it is more 48 likely than not that the Company will not be required to sell these securities prior to recovery or maturity.
As a result, the Company and Bank elected the five-year transition relief allowed under the interim final rule effective March 31, 2020. The following table summarizes the regulatory capital levels of Ameris at December 31, 2022.
As a result, the Company and Bank elected the five-year transition relief allowed under the interim final rule effective March 31, 2020. The following table summarizes the regulatory capital levels of Ameris at December 31, 2023.
For both 2022 and 2021, other capital related transactions, such as share-based compensation, common stock issuances through the exercise of stock options, and issuances of shares of restricted stock accounted for only a small change in the capital of the Company.
For both 2023 and 2022, other capital related transactions, such as share-based compensation, common stock issuances through the exercise of stock options, and issuances of shares of restricted stock accounted for only a small change in the capital of the Company.
The Company regularly monitors its largest loan relationships to avoid a concentration with a single borrower. The largest 25 loan relationships as of December 31, 2022 based on committed amount are summarized below by type.
The Company regularly monitors its largest loan relationships to avoid a concentration with a single borrower. The largest 25 loan relationships as of December 31, 2023 based on committed amount are summarized below by type.
These items were partially offset by increases in fraud 36 and forgery losses, armored car expense, ATM expense, tax and license expense and payment processing expenses related to our equipment finance division. Also contributing to the decrease was a decrease in variable expenses related to our mortgage production. 2021 compared with 2020.
These items were partially offset by increases in fraud and forgery losses, armored car expense, ATM expense, tax and license expense and payment processing expenses related to our equipment finance division. Also contributing to the decrease was a decrease in variable expenses related to our mortgage production. 2022 compared with 2021.
Except for its effect on the general level of interest rates, inflation does not have a material impact on the balance sheet due to the rate variability and short-term maturities of its earning assets. In particular, approximately 48.1% of earning assets mature or reprice within one year or less.
Except for its effect on the general level of interest rates, inflation does not have a material impact on the balance sheet due to the rate variability and short-term maturities of its earning assets. In particular, approximately 38.4% of earning assets mature or reprice within one year or less.
Year Ended December 31, 2022 2021 2020 (dollars in thousands) Average Balance Average Rate Average Balance Average Rate Average Balance Average Rate Federal funds purchased and securities sold under agreement to repurchase $ 1,477 0.27 % $ 6,700 0.30 % $ 12,115 0.68 % Year Ended December 31, 2022 2021 2020 (dollars in thousands) Total Balance Total Balance Total Balance Total maximum short-term borrowings outstanding at any month-end during the year $ 6,924 $ 9,320 $ 15,998 As of December 31, 2022, letters of credit issued by the Federal Home Loan Bank totaling $400.0 million were used to guarantee the Bank’s performance related to a portion of its public fund deposit balances.
Year Ended December 31, 2023 2022 2021 (dollars in thousands) Average Balance Average Rate Average Balance Average Rate Average Balance Average Rate Federal funds purchased and securities sold under agreement to repurchase $ — — % $ 1,477 0.27 % $ 6,700 0.30 % Year Ended December 31, 2023 2022 2021 (dollars in thousands) Total Balance Total Balance Total Balance Total maximum short-term borrowings outstanding at any month-end during the year $ — $ 6,924 $ 9,320 As of December 31, 2023, letters of credit issued by the Federal Home Loan Bank totaling $950.0 million were used to guarantee the Bank’s performance related to a portion of its public fund deposit balances.
The following table sets forth certain information about contractual cash obligations as of December 31, 2022.
The following table sets forth certain information about contractual cash obligations as of December 31, 2023.
The amounts of time certificates of deposit issued in amounts of more than $250,000 as of December 31, 2022, are shown below by category, which is based on time remaining until maturity of (i) three months or less, (ii) over three through twelve months and (iii) greater than one year.
The amounts of time certificates of deposit issued in amounts of more than $250,000 as of December 31, 2023, are shown below by category, which is based on time remaining until maturity of (i) three months or less, (ii) over three through six months, (iii) over six months through one year and (iv) over one year.
For the year ended December 31, 2022, our net charge off ratio as a percentage of average loans increased to 0.08%, compared with 0.04% for the year ended December 31, 2021.
For the year ended December 31, 2023, our net charge off ratio as a percentage of average loans increased to 0.25%, compared with 0.08% for the year ended December 31, 2022.
For the year ended December 31, 2022, the Company recorded income tax expense of approximately $106.6 million, compared with $119.2 million recorded in 2021 and $78.3 million recorded in 2020. The Company’s effective tax rate was 23.5%, 24.0% and 23.0% for the years ended December 31, 2022, 2021 and 2020, respectively.
For the year ended December 31, 2023, the Company recorded income tax expense of approximately $87.8 million, compared with $106.6 million recorded in 2022 and $119.2 million recorded in 2021. The Company’s effective tax rate was 24.6%, 23.5% and 24.0% for the years ended December 31, 2023, 2022 and 2021, respectively.
EARNING ASSETS AND LIABILITIES Average earning assets were approximately $21.41 billion in 2022, compared with approximately $19.89 billion in 2021. The earning asset and interest-bearing liability mix is regularly monitored to maximize the net interest margin and, therefore, increase return on assets and shareholders’ equity.
EARNING ASSETS AND LIABILITIES Average earning assets were approximately $23.26 billion in 2023, compared with approximately $21.41 billion in 2022. The earning asset and interest-bearing liability mix is regularly monitored to maximize the net interest margin and, therefore, increase return on assets and shareholders’ equity.
As of December 31, 2022, approximately 71.1% of our loan portfolio was secured by real estate, compared with 71.7% at December 31, 2021. 37 The amount of loans outstanding at the indicated dates is shown in the following table according to type of loans.
As of December 31, 2023, approximately 74.2% of our loan portfolio was secured by real estate, compared with 71.1% at December 31, 2022. 40 The amount of loans outstanding at the indicated dates is shown in the following table according to type of loans.
This strategy is overseen in part through the direction of our Asset and Liability Committee (the “ALCO Committee”) which establishes policies and monitors results to control interest rate sensitivity.
This strategy is overseen in part through the direction of our ALCO Committee which establishes policies and monitors results to control interest rate sensitivity.
Included in non-performing assets were serviced GNMA-guaranteed residential mortgage loans totaling $69.6 million and $30.4 million at December 31, 2022 and 2021, respectively. Non-performing assets, excluding GNMA-guaranteed loans, represented 0.34% of total assets at December 31, 2022, compared with 0.30% of total assets at December 31, 2021.
Included in non-performing assets were serviced GNMA-guaranteed residential mortgage loans totaling $90.2 million and $69.6 million at December 31, 2023 and 2022, respectively. Non-performing assets, excluding GNMA-guaranteed loans, represented 0.33% of total assets at December 31, 2023, compared with 0.34% of total assets at December 31, 2022.
Included in non-performing assets were serviced GNMA-guaranteed residential mortgage loans totaling $69.6 million and $30.4 million at December 31, 2022 and 2021, respectively. Non-performing assets, excluding GNMA-guaranteed loans, represented 0.34% of total assets at December 31, 2022, compared with 0.30% of total assets at December 31, 2021.
Included in non-performing assets were serviced GNMA-guaranteed residential mortgage loans totaling $90.2 million and $69.6 million at December 31, 2023 and 2022, respectively. Non-performing assets, excluding GNMA-guaranteed loans, represented 0.33% of total assets at December 31, 2023, compared with 0.34% of total assets at December 31, 2022.
For the fourth quarter of 2022, the Company recorded net income of $82.2 million, or $1.18 per diluted share, compared with $81.9 million, or $1.18 per diluted share, for the quarter ended December 31, 2021, and $94.3 million, or $1.36 per diluted share, for the quarter ended December 31, 2020.
For the fourth quarter of 2023, the Company recorded net income of $65.9 million, or $0.96 per diluted share, compared with $82.2 million, or $1.18 per diluted share, for the quarter ended December 31, 2022, and $81.9 million, or $1.18 per diluted share, for the quarter ended December 31, 2021.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW During 2022, the Company reported net income of $346.5 million, or $4.99 per diluted share, compared with $376.9 million, or $5.40 per diluted share, in 2021.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW During 2023, the Company reported net income of $269.1 million, or $3.89 per diluted share, compared with $346.5 million, or $4.99 per diluted share, in 2022.
Based on the results of management's review, at December 31, 2022, management determined $75,000 was attributable to credit impairment and increased the allowance for credit losses accordingly. The remaining $59.1 million in unrealized loss was determined to be from factors other than credit.
Based on the results of management's review, at December 31, 2023, management determined $69,000 was attributable to credit impairment and decreased the allowance for credit losses accordingly. The remaining $44.7 million in unrealized loss was determined to be from factors other than credit.
NET INCOME AND EARNINGS PER SHARE The Company’s net income during 2022 was $346.5 million, or $4.99 per diluted share, compared with $376.9 million, or $5.40 per diluted share, in 2021, and $262.0 million, or $3.77 per diluted share, in 2020.
NET INCOME AND EARNINGS PER SHARE The Company’s net income during 2023 was $269.1 million, or $3.89 per diluted share, compared with $346.5 million, or $4.99 per diluted share, in 2022, and $376.9 million, or $5.40 per diluted share, in 2021.
Yield on average earning assets on a taxable equivalent basis decreased during 2021 to 3.56%, compared with 4.21% for the year ended December 31, 2020. Average yields on all interest-earning asset categories except investment securities decreased from 2020 to 2021 as market interest rates declined.
Yield on average earning assets on a taxable equivalent basis increased during 2022 to 4.19%, compared with 3.56% for the year ended December 31, 2021. Average yields on all interest-earning asset categories increased from 2021 to 2022 as market interest rates increased.
Our interest-bearing liabilities include deposits, securities sold under agreements to repurchase, other borrowings and subordinated deferrable interest debentures. 2022 compared with 2021. For the year ended December 31, 2022, interest income was $893.9 million, an increase of $190.8 million, or 27.1%, compared with the same period in 2021.
Our interest-bearing liabilities include deposits, securities sold under agreements to repurchase, other borrowings and subordinated deferrable interest debentures. 2023 compared with 2022. For the year ended December 31, 2023, interest income was $1.28 billion, an increase of $386.5 million, or 43.2%, compared with the same period in 2022.
The Company’s net income as a percentage of average assets for 2022 and 2021 was 1.47% and 1.73%, respectively, while the Company’s net income as a percentage of average shareholders’ equity was 11.24% and 13.33%, respectively.
The Company’s net income as a percentage of average assets for 2023 and 2022 was 1.06% and 1.47%, respectively, while the Company’s net income as a percentage of average shareholders’ equity was 8.12% and 11.24%, respectively.
Average earning assets increased $1.52 billion, or 7.6%, to $21.41 billion for the year ended December 31, 2022, compared with $19.89 billion for 2021. Yield on average earning assets on a taxable equivalent basis increased during 2022 to 4.19%, compared with 3.56% for the year ended December 31, 2021.
Average earning assets increased $1.85 billion, or 8.6%, to $23.26 billion for the year ended December 31, 2023, compared with $21.41 billion for 2022. Yield on average earning assets on a taxable equivalent basis increased during 2023 to 5.52%, compared with 4.19% for the year ended December 31, 2022.
Treasuries $ 759,534 $ — U.S. government-sponsored agencies 979 7,172 State, county and municipal securities 34,195 47,812 Corporate debt securities 15,926 28,496 SBA pool securities 27,398 45,201 Mortgage-backed securities 662,028 463,940 Total debt securities available-for-sale $ 1,500,060 $ 592,621 Following is a summary of the carrying value of debt securities held-to-maturity as of the end of each reported period: December 31, (dollars in thousands) 2022 2021 State, county and municipal securities $ 31,905 $ 8,905 Mortgage-backed securities 102,959 70,945 Total debt securities held-to-maturity $ 134,864 $ 79,850 47 The amounts of securities available-for-sale and held-to in each category as of December 31, 2022 are shown in the following table according to contractual maturity classifications: (i) one year or less, (ii) after one year through five years, (iii) after five years through ten years and (iv) after ten years.
Treasuries $ 720,877 $ 759,534 U.S. government-sponsored agencies 985 979 State, county and municipal securities 28,051 34,195 Corporate debt securities 10,027 15,926 SBA pool securities 51,516 27,398 Mortgage-backed securities 591,488 662,028 Total debt securities available-for-sale $ 1,402,944 $ 1,500,060 Following is a summary of the carrying value of debt securities held-to-maturity as of the end of each reported period: December 31, (dollars in thousands) 2023 2022 State, county and municipal securities $ 31,905 $ 31,905 Mortgage-backed securities 109,607 102,959 Total debt securities held-to-maturity $ 141,512 $ 134,864 47 The amounts of securities available-for-sale and held-to in each category as of December 31, 2023 are shown in the following table according to contractual maturity classifications: (i) one year or less, (ii) after one year through five years, (iii) after five years through ten years and (iv) after ten years.
This decrease was primarily attributable to the elimination of certain overdraft fees on consumer accounts and a reduction in debit card interchange income, partially offset by an increase in corporate services charges compared with 2021. Income from mortgage banking activities decreased $101.0 million, or 35.3%, to $184.9 million during 2022 compared with 2021.
Service charges on deposit accounts decreased $607,000, or 1.3%, to $44.5 million during 2022 compared with 2021. This decrease was primarily attributable to the elimination of certain overdraft fees on consumer accounts and a reduction in debit card interchange income, partially offset by an increase in corporate services charges compared with 2021.
See Note 12, “Income Taxes,” in the notes to consolidated financial statements for additional details. As part of the process of preparing our consolidated financial statements we are required to estimate our income taxes in each of the jurisdictions in which we operate.
As part of the process of preparing our consolidated financial statements we are required to estimate our income taxes in each of the jurisdictions in which we operate.
During 2021, average noninterest-bearing deposit accounts were $7.02 billion and comprised 38.5% of average total deposits, compared with $5.23 billion, or 34.4% of average total deposits, during 2020. Average balances of time deposits amounted to $1.95 billion and comprised 10.7% of average total deposits during 2021, compared with $2.39 billion, or 15.7% of average total deposits, during 2020.
During 2022, average noninterest-bearing deposit accounts were $8.01 billion and comprised 41.2% of average total deposits, compared with $7.02 billion, or 38.5% of average total deposits, during 2021. Average balances of time deposits amounted to $1.60 billion and comprised 8.3% of average total deposits during 2022, compared with $1.95 billion, or 10.7% of average total deposits, during 2021.
Years Ended December 31, (dollars in thousands) 2022 2021 2020 Service charges on deposit accounts $ 44,499 $ 45,106 $ 44,145 Mortgage banking activity 184,904 285,900 374,077 Other service charges, commissions and fees 3,875 4,188 3,914 Net gain (loss) on securities 203 515 5 Gain on sale of SBA loans 5,552 6,623 7,226 Other noninterest income 45,391 23,212 17,133 $ 284,424 $ 365,544 $ 446,500 2022 compared with 2021.
Years Ended December 31, (dollars in thousands) 2023 2022 2021 Service charges on deposit accounts $ 46,575 $ 44,499 $ 45,106 Mortgage banking activity 139,885 184,904 285,900 Other service charges, commissions and fees 4,401 3,875 4,188 Net gain (loss) on securities (304) 203 515 Gain on sale of SBA loans 1,557 5,552 6,623 Other noninterest income 50,714 45,391 23,212 $ 242,828 $ 284,424 $ 365,544 2023 compared with 2022.
Years Ended December 31, (dollars in thousands) 2022 2021 2020 Salaries and employee benefits $ 319,719 $ 337,776 $ 360,278 Occupancy and equipment 51,361 48,066 52,349 Advertising and marketing 12,481 8,434 8,046 Amortization of intangible assets 19,744 14,965 19,612 Data processing and communications expenses 49,228 45,976 46,017 Legal and other professional fees 16,439 11,920 15,972 Credit resolution-related expenses 29 3,538 5,106 Merger and conversion charges 1,212 4,206 1,391 FDIC insurance 8,063 5,614 14,078 Loan servicing expenses 36,835 26,481 20,910 Other noninterest expenses 45,544 53,148 54,870 $ 560,655 $ 560,124 $ 598,629 2022 compared with 2021.
Years Ended December 31, (dollars in thousands) 2023 2022 2021 Salaries and employee benefits $ 320,110 $ 319,719 $ 337,776 Occupancy and equipment 51,450 51,361 48,066 Advertising and marketing 11,856 12,481 8,434 Amortization of intangible assets 18,244 19,744 14,965 Data processing and communications expenses 53,486 49,228 45,976 Legal and other professional fees 17,726 16,439 11,920 Credit resolution-related expenses 80 29 3,538 Merger and conversion charges — 1,212 4,206 FDIC insurance 26,940 8,063 5,614 Loan servicing expenses 35,283 36,835 26,481 Other noninterest expenses 43,106 45,544 53,148 $ 578,281 $ 560,655 $ 560,124 2023 compared with 2022.
December 31, (dollars in thousands) 2022 2021 2020 Allowance for credit losses on loans at end of period $ 205,677 $ 167,582 $ 199,422 Loan balances: End of period 19,855,253 15,874,258 14,480,925 Allowance for credit losses on loans as a percentage of end of period loans 1.04 % 1.06 % 1.38 % Nonaccrual loans as a percentage of end of period loans 0.68 % 0.54 % 0.53 % Allowance for credit losses to nonaccrual loans at end of period 152.57 % 196.54 % 260.83 % At December 31, 2022, the allowance for credit losses on loans totaled $205.7 million, or 1.04% of loans, compared with $167.6 million, or 1.06% of loans, at December 31, 2021.
December 31, (dollars in thousands) 2023 2022 2021 Allowance for credit losses on loans at end of period $ 307,100 $ 205,677 $ 167,582 Loan balances: End of period 20,269,303 19,855,253 15,874,258 Allowance for credit losses on loans as a percentage of end of period loans 1.52 % 1.04 % 1.06 % Nonaccrual loans as a percentage of end of period loans 0.75 % 0.68 % 0.54 % Allowance for credit losses to nonaccrual loans at end of period 203.22 % 152.57 % 196.54 % At December 31, 2023, the allowance for credit losses on loans totaled $307.1 million, or 1.52% of loans, compared with $205.7 million, or 1.04% of loans, at December 31, 2022.
Other service charges, commission and fees decreased by $313,000 to $3.9 million during 2022, a decrease of 7.5% compared with 2021 due primarily to a decrease in ATM fees.
Noninterest income from the Company's warehouse lending division was $4.5 million for 2022 compared with $4.6 million for 2021. Other service charges, commission and fees decreased by $313,000 to $3.9 million during 2022, a decrease of 7.5% compared with 2021 due primarily to a decrease in ATM fees.
Generally, these commitments to extend credit have been granted on a temporary basis for seasonal or inventory requirements or for construction period financing and have been approved within the Bank’s credit guidelines. Our Bank has also granted commitments to approved customers for financial standby letters of credit.
OFF-BALANCE-SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS In the ordinary course of business, our Bank has granted commitments to extend credit to approved customers. Generally, these commitments to extend credit have been granted on a temporary basis for seasonal or inventory requirements or for construction period financing and have been approved within the Bank’s credit guidelines.
On a taxable-equivalent basis, net interest income for 2021 was $659.9 million, compared with $642.9 million in 2020, an increase of $17.0 million, or 2.6%. The Company’s net interest margin, on a tax equivalent basis, decreased 38 basis points to 3.32% for the year ended December 31, 2021, compared with 3.70% for the year ended December 31, 2020.
On a taxable-equivalent basis, net interest income for 2022 was $804.9 million, compared with $659.9 million in 2021, an increase of $145.0 million, or 22.0%. The Company’s net interest margin, on a tax equivalent basis, increased 44 basis points to 3.76% for the year ended December 31, 2022, compared with 3.32% for the year ended December 31, 2021.
In the event of a change in interest rates, prepayment and early withdrawal levels also could deviate significantly from those assumed in calculating the interest rate gap. The ability of many borrowers to service their debts also may decrease in the event of an interest rate increase.
In the event of a change in interest rates, prepayment and early withdrawal levels also could deviate significantly from those assumed in calculating the interest rate gap.
During 2022 average interest-bearing liabilities were $12.22 billion as compared with $11.77 billion for 2021, an increase of $442.6 million, or 3.8%. During 2022, average noninterest-bearing deposit accounts were $8.01 billion and comprised 41.2% of average total deposits, compared with $7.02 billion, or 38.5% of average total deposits, during 2021.
During 2023 average interest-bearing liabilities were $14.92 billion as compared with $12.22 billion for 2022, an increase of $2.70 billion, or 22.1%. During 2023, average noninterest-bearing deposit accounts were $6.77 billion and comprised 33.8% of average total deposits, compared with $8.01 billion, or 41.2% of average total deposits, during 2022.
This increase was primarily due to increases in noninterest income in our equipment finance division, BOLI income, merchant fee income and gain on sale of mortgage servicing rights of $18.1 million, $1.9 million, $2.0 million and $1.4 million, respectively.
This increase was primarily due to increases in noninterest income in our equipment finance division, BOLI income, merchant fee income and gain on sale of mortgage servicing rights of $18.1 million, $1.9 million, $2.0 million and $1.4 million, respectively. These increases were partially offset by reduction in recovery of prior SBA servicing right impairment of $906,000 compared with 2021.
December 31, 2022 2021 2020 (dollars in thousands) Amount % of Loans to Total Loans Amount % of Loans to Total Loans Amount % of Loans to Total Loans Commercial, financial and agricultural $ 39,455 13 % $ 26,829 12 % $ 7,359 11 % Consumer 5,413 2 6,097 1 4,076 2 Indirect automobile 174 1 476 2 1,929 4 Mortgage warehouse 2,118 5 3,231 5 3,666 6 Municipal 357 3 401 4 791 5 Premium finance 1,025 5 2,729 5 3,879 5 Real estate – construction and development 32,659 11 22,045 9 45,304 11 Real estate – commercial and farmland 67,433 38 77,831 43 88,894 37 Real estate - residential 57,043 22 27,943 19 43,524 19 Total $ 205,677 100 % $ 167,582 100 % $ 199,422 100 % The following table provides an analysis of the net charge-offs (recoveries) by loan category for the years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Net charge-offs (recoveries) Average Balance Rate Net charge-offs (recoveries) Average balance Rate Net charge-offs (recoveries) Average balance Rate Commercial, financial and agricultural $ 8,681 $ 2,116,723 0.41 % $ 2,033 $ 1,526,100 0.13 % $ 8,758 $ 1,400,398 0.63 % Consumer 4,044 214,162 1.89 5,309 235,056 2.26 3,889 472,253 0.82 Indirect automobile (780) 178,305 (0.44) (491) 404,461 (0.12) 1,945 803,212 0.24 Mortgage warehouse — 891,285 — — 827,159 — — 749,671 — Municipal — 531,324 — — 623,839 — — 688,585 — Premium finance 387 922,551 0.04 (1,202) 752,094 (0.16) 2,944 683,630 0.43 Real estate - construction and development (865) 1,761,853 (0.05) (273) 1,493,855 (0.02) (734) 1,616,655 (0.05) Real estate - commercial and farmland 3,349 7,155,542 0.05 1,279 5,958,257 0.02 26,055 4,835,463 0.54 Real estate - residential (301) 3,749,716 (0.01) (464) 2,883,135 (0.02) 59 2,768,715 — $ 14,515 $ 17,521,461 0.08 % $ 6,191 $ 14,703,956 0.04 % $ 42,916 $ 14,018,582 0.31 % The following table provides an analysis of the allowance for credit losses on loans held for investment.
December 31, 2023 2022 2021 (dollars in thousands) Amount % of Loans to Total Loans Amount % of Loans to Total Loans Amount % of Loans to Total Loans Commercial, financial and agricultural $ 64,053 13 % $ 39,455 13 % $ 26,829 12 % Consumer 3,902 1 5,413 2 6,097 1 Indirect automobile 50 — 174 1 476 2 Mortgage warehouse 1,678 4 2,118 5 3,231 5 Municipal 345 2 357 3 401 4 Premium finance 602 5 1,025 5 2,729 5 Real estate – construction and development 61,017 11 32,659 11 22,045 9 Real estate – commercial and farmland 110,097 40 67,433 38 77,831 43 Real estate - residential 65,356 24 57,043 22 27,943 19 Total $ 307,100 100 % $ 205,677 100 % $ 167,582 100 % 43 The following table provides an analysis of the net charge-offs (recoveries) by loan category for the years ended December 31, 2023, 2022 and 2021. 2023 2022 2021 Net charge-offs (recoveries) Average Balance Rate Net charge-offs (recoveries) Average balance Rate Net charge-offs (recoveries) Average balance Rate Commercial, financial and agricultural $ 43,646 $ 2,687,805 1.62 % $ 8,681 $ 2,116,723 0.41 % $ 2,033 $ 1,526,100 0.13 % Consumer 4,474 308,457 1.45 4,044 214,162 1.89 5,309 235,056 2.26 Indirect automobile (621) 67,326 (0.92) (780) 178,305 (0.44) (491) 404,461 (0.12) Mortgage warehouse — 963,035 — — 891,285 — — 827,159 — Municipal — 502,849 — — 531,324 — — 623,839 — Premium finance 766 982,442 0.08 387 922,551 0.04 (1,202) 752,094 (0.16) Real estate - construction and development (949) 2,162,424 (0.04) (865) 1,761,853 (0.05) (273) 1,493,855 (0.02) Real estate - commercial and farmland 3,693 7,811,671 0.05 3,349 7,155,542 0.05 1,279 5,958,257 0.02 Real estate - residential (628) 4,668,312 (0.01) (301) 3,749,716 (0.01) (464) 2,883,135 (0.02) $ 50,381 $ 20,154,321 0.25 % $ 14,515 $ 17,521,461 0.08 % $ 6,191 $ 14,703,956 0.04 % The following table provides an analysis of the allowance for credit losses on loans held for investment.
Reported net income for the year ended December 31, 2022 includes $71.7 million in provision for credit losses, primarily related to organic loan growth, updated economic forecast and related impacts to unfunded commitments, compared with a provision release of $35.4 million in 2021 resulting from improvement in forecast economic conditions compared with 2020.
Reported net income for the year ended December 31, 2023 includes $142.7 million in provision for credit losses, primarily related to updated economic forecasts and organic growth, partially offset by a reduction in unfunded commitments and the related allowance, compared with a provision of $71.7 million in 2022 resulting from organic growth in loans and the updated economic forecast.
December 31, (dollars in thousands) 2022 2021 Commitments to extend credit $ 6,318,039 $ 4,328,749 Unused lines of credit 345,001 272,029 Financial standby letters of credit 33,557 36,184 Mortgage interest rate lock commitments 148,148 417,126 Mortgage forward contracts with positive fair value - notional amount 689,500 — Mortgage forward contracts with negative fair value - notional amount — 1,935,237 $ 7,534,245 $ 6,989,325 The following table summarizes short-term borrowings for the periods indicated.
December 31, (dollars in thousands) 2023 2022 Commitments to extend credit $ 4,412,818 $ 6,318,039 Unused lines of credit 386,574 345,001 Financial standby letters of credit 37,546 33,557 Mortgage interest rate lock commitments 171,750 148,148 Mortgage forward contracts with positive fair value - notional amount — 689,500 Mortgage forward contracts with negative fair value - notional amount 663,015 — $ 5,671,703 $ 7,534,245 The following table summarizes short-term borrowings for the periods indicated.
The Company’s allowance for credit losses on loans at December 31, 2022 was $205.7 million, or 1.04% of loans compared with $167.6 million, or 1.06%, and $199.4 million, or 1.38%, at December 31, 2021 and 2020, respectively.
Other real estate was approximately $6.2 million as of December 31, 2023, compared with $843,000 at December 31, 2022. The Company’s allowance for credit losses on loans at December 31, 2023 was $307.1 million, or 1.52% of loans compared with $205.7 million, or 1.04%, and $167.6 million, or 1.06%, at December 31, 2022 and 2021, respectively.
The decrease in the allowance for credit losses on loans as a 40 percentage of loans compared with December 31, 2021 was primarily attributable to improvements in forecast economic conditions during 2022.
The increase in the allowance for credit losses on loans as a percentage of loans compared with December 31, 2022 was primarily attributable to declines in forecast economic conditions, particularly levels of commercial real estate prices, compared with 2022.
Average yields on all interest-earning asset categories increased from 2021 to 2022 as market interest rates increased. Interest expense on deposits and other borrowings for the year ended December 31, 2022 was $92.9 million, an increase of $45.1 million, or 94.3%, compared with $47.8 million for the year ended December 31, 2021.
Average yields on all interest-earning asset categories increased from 2022 to 2023 as market interest rates increased. Interest expense for the year ended December 31, 2023 was $445.4 million, an increase of $352.5 million, or 379.6%, compared with $92.9 million for the year ended December 31, 2022.
We manage the mix of asset and liability maturities in an effort to control the effects of changes in the general level of interest rates on net interest income.
The ability of many borrowers to service their debts also may decrease in the event of an interest rate increase. 45 We manage the mix of asset and liability maturities in an effort to control the effects of changes in the general level of interest rates on net interest income.
Other noninterest expense decreased $7.6 million, or 14.3%, to $45.5 million in 2022 from $53.1 million in 2021, resulting primarily from an increase in deferred costs related to our equipment finance division production and net gains on sale of other real estate owned and a decrease in other real estate owned expenses.
Other noninterest expense decreased $2.4 million, or 5.4%, to $43.1 million in 2023 from $45.5 million in 2022, resulting primarily from an increase in deferred costs related to our equipment finance division production and net gains on sale of bank premises.
Since many of the commitment amounts expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. 49 The following table summarizes commitments outstanding at December 31, 2022 and 2021.
Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitment amounts expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The following table summarizes commitments outstanding at December 31, 2023 and 2022.
The provision for credit losses on loans for the year ended December 31, 2022 was a provision of $52.6 million, compared with a release of $35.1 million for the year ended December 31, 2021. This increase primarily resulted from organic loan growth during 2022 and the updated economic forecast.
Excluding those charge-offs, net charge-offs for 2023 would have been 0.22%. The provision for credit losses on loans for the year ended December 31, 2023 was $153.5 million, compared with $52.6 million for the year ended December 31, 2022. This increase primarily resulted from the updated economic forecast and organic loan growth during 2023.
This decrease was a result of a decline in production and tightening of gain on sale spreads compared with 2021. Total production in the retail mortgage division decreased to $5.5 billion for 2022, compared with $8.9 billion for 2021, while gain on sale spreads decreased in 2022 to 2.27% from 3.31% in 2021.
Total production in the retail mortgage division decreased to $5.5 billion for 2022, compared with $8.9 billion for 2021, while gain on sale spreads decreased in 2022 to 2.27% from 3.31% in 2021. The decrease in gain on sale spread is primarily related to 38 normalization of pricing in the industry after experiencing record production levels in 2020.
Excluding the impact of the hotel sale, net charge-offs for 2020 would have been 0.18% of average loans. At December 31, 2022, non-performing assets amounted to $153.5 million, or 0.61% of total assets, compared with $101.8 million, or 0.43% of total assets, at December 31, 2021.
Excluding those charge-offs, the net charge-off rate for 2023 would have been 0.22%. At December 31, 2023, non-performing assets amounted to $174.3 million, or 0.69% of total assets, compared with $153.5 million, or 0.61% of total assets, at December 31, 2022.
December 31, (dollars in thousands) 2022 2021 Commercial, financial and agricultural $ 2,679,403 $ 1,875,993 Consumer 384,037 191,298 Indirect automobile 108,648 265,779 Mortgage warehouse 1,038,924 787,837 Municipal 509,151 572,701 Premium finance 1,023,479 798,409 Real estate - construction and development 2,086,438 1,452,339 Real estate - commercial and farmland 7,604,867 6,834,917 Real estate - residential 4,420,306 3,094,985 Loans, net of unearned income $ 19,855,253 $ 15,874,258 The Company seeks to diversify its loan portfolio across its geographic footprint and in various loan types.
December 31, (dollars in thousands) 2023 2022 Commercial, financial and agricultural $ 2,688,929 $ 2,679,403 Consumer 241,552 384,037 Indirect automobile 34,257 108,648 Mortgage warehouse 818,728 1,038,924 Municipal 492,668 509,151 Premium finance 946,562 1,023,479 Real estate - construction and development 2,129,187 2,086,438 Real estate - commercial and farmland 8,059,754 7,604,867 Real estate - residential 4,857,666 4,420,306 Loans, net of unearned income $ 20,269,303 $ 19,855,253 The Company seeks to diversify its loan portfolio across its geographic footprint and in various loan types.
Payments Due After December 31, 2022 (dollars in thousands) Total 1 Year or Less 1-3 Years 4-5 Years >5 Years Deposits without a stated maturity $ 17,993,271 $ 17,993,271 $ — $ — $ — Time certificates of deposit 1,469,467 1,233,023 199,564 36,019 861 Other borrowings 1,878,469 1,525,000 15,000 15,000 323,469 Subordinated deferrable interest debentures 154,390 — — — 154,390 Operating lease obligations 68,524 11,327 17,666 13,797 25,734 Total contractual cash obligations $ 21,564,121 $ 20,762,621 $ 232,230 $ 64,816 $ 504,454 At December 31, 2022, estimated costs to complete construction projects in progress and other binding commitments for capital expenditures were not a material amount. 50 CAPITAL ADEQUACY Capital Regulations The capital resources of the Company are monitored on a periodic basis by state and federal regulatory authorities.
Payments Due After December 31, 2023 (dollars in thousands) Total 1 Year or Less 1-3 Years 4-5 Years >5 Years Deposits without a stated maturity $ 17,240,603 $ 17,240,603 $ — $ — $ — Time certificates of deposit 3,467,906 3,333,066 107,084 27,004 752 Other borrowings 511,324 160,000 25,000 15,000 311,324 Subordinated deferrable interest debentures 154,390 — — — 154,390 Operating lease obligations 63,060 11,245 17,717 13,565 20,533 Total contractual cash obligations $ 21,437,283 $ 20,744,914 $ 149,801 $ 55,569 $ 486,999 At December 31, 2023, estimated costs to complete construction projects in progress and other binding commitments for capital expenditures were not a material amount. 50 CAPITAL ADEQUACY Capital Regulations The capital resources of the Company are monitored on a periodic basis by state and federal regulatory authorities.
The Company’s net interest margin, on a tax equivalent basis, increased 44 basis points to 3.76% for the year ended December 31, 2022, compared with 3.32% for the year ended December 31, 2021. Accretion expense for 2022 was $285,000, compared with accretion income of $16.3 million for 2021. 2021 compared with 2020.
The Company’s net interest margin, on a tax equivalent basis, decreased 15 basis points to 3.61% for the year ended December 31, 2023, compared with 3.76% for the year ended December 31, 2022. 2022 compared with 2021.
During 2021, the Company’s capital increased $319.4 million, primarily due to net income of $376.9 million, which was partially offset by the cash dividends declared on common shares of $42.0 million.
During 2023, the Company’s capital increased $229.3 million, primarily due to net income of $269.1 million, which was partially offset by the cash dividends declared on common shares of $41.7 million and share repurchases of $20.3 million.
(dollars in thousands) December 31, 2022 Three months or less $ 68,318 Over three months through six months 47,294 Over six months through one year 191,774 Over one year 49,459 Total $ 356,845 As of December 31, 2022 and 2021, the Company had estimated uninsured deposits of $9.15 billion and $9.11 billion, respectively.
(dollars in thousands) December 31, 2023 Three months or less $ 268,104 Over three months through six months 177,888 Over six months through one year 297,029 Over one year 30,982 Total $ 774,003 As of December 31, 2023 and 2022, the Company had estimated uninsured deposits of $9.13 billion and $9.30 billion, respectively.
These commitments are recorded in the financial statements when funds are disbursed or the financial instruments become payable. The Bank uses the same credit policies for these off-balance-sheet commitments as it does for financial instruments that are recorded in the consolidated financial statements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.
Our Bank has also granted commitments to approved customers for financial standby letters of credit. These commitments are recorded in the financial 49 statements when funds are disbursed or the financial instruments become payable. The Bank uses the same credit policies for these off-balance-sheet commitments as it does for financial instruments that are recorded in the consolidated financial statements.
Mortgage loans, generally our loan category with the longest maturity, are usually made with fifteen to thirty year maturities, but a portion is at a variable interest rate with an adjustment between origination date and maturity date. 45 The following table sets forth the distribution of the repricing of our interest-earning assets and interest-bearing liabilities as of December 31, 2022, the interest rate sensitivity gap (i.e., interest rate sensitive assets minus interest rate sensitive liabilities), the cumulative interest rate sensitivity gap, the interest rate sensitivity gap ratio (i.e., interest rate sensitive assets divided by interest rate sensitive liabilities) and the cumulative interest rate sensitivity gap ratio.
Mortgage loans, generally our loan category with the longest maturity, are usually made with fifteen to thirty year maturities, but a portion is at a variable interest rate with an adjustment between origination date and maturity date.
This increase was primarily a result of the expansion of our equipment finance division at the end of 2021 which resulted in increased net charge-offs in our commercial, financial and agricultural loan segment.
This increase was primarily a result of increased charge-offs in our equipment finance division, which we expanded at the end of 2021, resulting in increased net charge-offs in our commercial, financial and agricultural loan segment. Included in net charge-offs for the year ended December 31, 2023 was $5.6 million in charge-offs on loans which were fully reserved upon acquisition.
For the year ended December 31, 2021, interest income was $703.1 million, a decrease of $23.4 million, or 3.2%, compared with the same period in 2020. Average earning assets increased $2.52 billion, or 14.5%, to $19.89 billion for the year ended December 31, 2021, compared with $17.37 billion for 2020.
For the year ended December 31, 2022, interest income was $893.9 million, an increase of $190.8 million, or 27.1%, compared with the same period in 2021. Average earning assets increased $1.52 billion, or 7.6%, to $21.41 billion for the year ended December 31, 2022, compared with $19.89 billion for 2021.
While overall forecast economic conditions improved compared with those at December 31, 2021, the rate of improvement in the economic variables slowed. As of December 31, 2022 our ratio of nonperforming assets to total assets had increased to 0.61% from 0.43% at December 31, 2021.
While the forecast level of certain economic variables used in our CECL model improved year over year, the forecast commercial real estate price index declined compared with the forecast used at December 31, 2022. As of December 31, 2023 our ratio of nonperforming assets to total assets had increased to 0.69% from 0.61% at December 31, 2022.
The decrease in the allowance for credit losses on loans as a percentage of loans compared with December 31, 2021 was primarily attributable to improvements in forecast economic conditions in the Company's CECL model. The Company's provision for unfunded commitments during 2022 amounted to $19.2 million, compared with $332,000 for 2021 and $19.1 million for 2020.
The increase in the allowance for credit losses on loans as a percentage of loans compared with December 31, 2022 was primarily attributable to a decline in forecast economic conditions, particularly commercial real estate price levels, in the Company's CECL model.
Three Months Ended (dollars in thousands, except per share data) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Selected Income Statement Data: Interest income $ 273,642 $ 234,302 $ 202,568 $ 183,374 Interest expense 49,505 21,321 11,204 10,830 Net interest income 224,137 212,981 191,364 172,544 Provision for credit losses 32,890 17,652 14,924 6,231 Net interest income after provision for credit losses 191,247 195,329 176,440 166,313 Noninterest income 48,348 65,324 83,841 86,911 Noninterest expense excluding merger and conversion charges 134,826 139,578 142,196 142,843 Merger and conversion charges 235 — — 977 Income before income taxes 104,534 121,075 118,085 109,404 Income tax 22,313 28,520 28,019 27,706 Net income $ 82,221 $ 92,555 $ 90,066 $ 81,698 Per Share Data: Basic earnings per common share $ 1.19 $ 1.34 $ 1.30 $ 1.18 Diluted earnings per common share 1.18 1.34 1.30 1.17 Common dividends - cash 0.15 0.15 0.15 0.15 52 Three Months Ended (dollars in thousands) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Selected Income Statement Data: Interest income $ 178,365 $ 173,046 $ 173,751 $ 177,950 Interest expense 11,528 11,385 11,899 12,973 Net interest income 166,837 161,661 161,852 164,977 Provision for credit losses 2,759 (9,675) 142 (28,591) Net interest income after provision for credit losses 164,078 171,336 161,710 193,568 Noninterest income 81,769 76,562 89,240 117,973 Noninterest expense excluding merger and conversion charges 134,346 137,013 135,761 148,798 Merger and conversion charges 4,023 183 — — Income before income taxes 107,478 110,702 115,189 162,743 Income tax 25,534 29,022 26,862 37,781 Net income $ 81,944 $ 81,680 $ 88,327 $ 124,962 Per Share Data: Basic earnings per common share $ 1.18 $ 1.18 $ 1.27 $ 1.80 Diluted earnings per common share 1.18 1.17 1.27 1.79 Common dividends - cash 0.15 0.15 0.15 0.15 53
Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Selected Income Statement Data: Interest income $ 332,214 $ 330,553 $ 321,952 $ 295,716 Interest expense 126,113 122,802 112,412 84,064 Net interest income 206,101 207,751 209,540 211,652 Provision for credit losses 22,952 24,459 45,516 49,729 Net interest income after provision for credit losses 183,149 183,292 164,024 161,923 Noninterest income 56,248 63,181 67,349 56,050 Noninterest expense excluding merger and conversion charges 149,011 141,446 148,403 139,421 Merger and conversion charges — — — — Income before income taxes 90,386 105,027 82,970 78,552 Income tax 24,452 24,912 20,335 18,131 Net income $ 65,934 $ 80,115 $ 62,635 $ 60,421 Per Share Data: Basic earnings per common share $ 0.96 $ 1.16 $ 0.91 $ 0.87 Diluted earnings per common share 0.96 1.16 0.91 0.87 Common dividends - cash 0.15 0.15 0.15 0.15 52 Three Months Ended (dollars in thousands) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Selected Income Statement Data: Interest income $ 273,642 $ 234,302 $ 202,568 $ 183,374 Interest expense 49,505 21,321 11,204 10,830 Net interest income 224,137 212,981 191,364 172,544 Provision for credit losses 32,890 17,652 14,924 6,231 Net interest income after provision for credit losses 191,247 195,329 176,440 166,313 Noninterest income 48,348 65,324 83,841 86,911 Noninterest expense excluding merger and conversion charges 134,826 139,578 142,196 142,843 Merger and conversion charges 235 — — 977 Income before income taxes 104,534 121,075 118,085 109,404 Income tax 22,313 28,520 28,019 27,706 Net income $ 82,221 $ 92,555 $ 90,066 $ 81,698 Per Share Data: Basic earnings per common share $ 1.19 $ 1.34 $ 1.30 $ 1.18 Diluted earnings per common share 1.18 1.34 1.30 1.17 Common dividends - cash 0.15 0.15 0.15 0.15 53
Interest expense on deposits and other borrowings for the year ended December 31, 2021 was $47.8 million, a decrease of $41.0 million, or 46.2%, compared with $88.8 million for the year ended December 31, 2020. During 2021 average interest-bearing liabilities were $11.77 billion as compared with $11.25 billion for 2020, an increase of $520.4 million, or 4.6%.
Interest expense for the year ended December 31, 2022 was $92.9 million, an increase of $45.1 million, or 94.3%, compared with $47.8 million for the year ended December 31, 2021. During 2022 average interest-bearing liabilities were $12.22 billion as compared with $11.77 billion for 2021, an increase of $442.6 million, or 3.8%.
This decrease was a result of a decline in production and tightening of gain on sale spreads compared with 2020. Total production in the retail mortgage division decreased to $8.9 billion for 2021, compared with $9.8 billion for 2020, while gain on sale spreads decreased in 2021 to 3.31% from 3.79% in 2020.
Income from mortgage banking activities decreased $101.0 million, or 35.3%, to $184.9 million during 2022 compared with 2021. This decrease was a result of a decline in production and tightening of gain on sale spreads compared with 2021.
Excluding these amounts, expenses in 2021 decreased by $33.3 million, or 5.7%, compared with 2020 levels. Salaries and benefits decreased $22.5 million, or 6.2%, from $360.3 million in 2020 to $337.8 million in 2021. This decrease was primarily attributable to a decrease in variable pay resulting from decreased production levels in our retail mortgage division.
This increase was primarily attributable to a decrease in deferred costs resulting from decreased loan production, nearly offset by a decrease in variable pay resulting from decreased production levels in our retail mortgage division. Salaries and benefits in our mortgage division decreased $27.5 million, or 25.5%, to $80.3 million in 2023.
(dollars in thousands) Committed Amount Average Rate Average Maturity (months) % Unsecured % in Nonaccrual Status Commercial, financial and agricultural $ 332,779 7.32 % 12 39.02 % — % Mortgage warehouse 582,500 5.33 % 3 — — % Real estate - construction and development 948,399 6.20 % 42 — — % Real estate - commercial and farmland 687,370 5.30 % 40 — — % Total $ 2,551,048 5.90 % 29 5.09 % — % Total loans as of December 31, 2022, are shown in the following table according to their contractual maturity.
(dollars in thousands) Committed Amount Average Rate Average Maturity (months) % Unsecured % in Nonaccrual Status Commercial, financial and agricultural $ 247,432 8.77 % 20 60.83 % — % Mortgage warehouse 625,000 7.92 % 24 — — % Real estate - construction and development 764,497 7.04 % 42 — — % Real estate - commercial and farmland 851,021 5.92 % 44 — — % Total $ 2,487,950 7.05 % 36 6.05 % — % Total loans as of December 31, 2023, are shown in the following table according to their contractual maturity.
Gain on BOLI proceeds is non-taxable and no tax effect is included.
Gain on BOLI proceeds is non-taxable and no tax effect is included. A portion of the merger and conversion charges for 2022 are nondeductible for tax purposes.
Total noninterest income in 2022 was $284.4 million, compared with $365.5 million in 2021, reflecting a decrease of 22.2%, or $81.1 million. Service charges on deposit accounts decreased $607,000, or 1.3%, to $44.5 million during 2022 compared with 2021.
Total noninterest income in 2023 was $242.8 million, compared with $284.4 million in 2022, reflecting a decrease of 14.6%, or $41.6 million. Service charges on deposit accounts increased $2.1 million, or 4.7%, to $46.6 million during 2023 compared with 2022. This increase was primarily attributable to an increase in corporate services charges compared with 2022.
These increases were partially offset by reduction in recovery of prior SBA servicing right impairment of $906,000 compared with 2021. 2021 compared with 2020. Total noninterest income in 2021 was $365.5 million, compared with $446.5 million in 2020, reflecting a decrease of 18.1%, or $81.0 million.
These increases were partially offset by a reduction in trust income of $4.4 million in 2023 after exiting this business at the end of 2022. 2022 compared with 2021. Total noninterest income in 2022 was $284.4 million, compared with $365.5 million in 2021, reflecting a decrease of 22.2%, or $81.1 million.
A portion of the merger and conversion charges for both periods are nondeductible for tax purposes. 29 Adjusted Efficiency Ratio Reconciliation Year Ended December 31, (dollars in thousands except per share data) 2022 2021 Adjusted Noninterest Expense Total noninterest expense $ 560,655 $ 560,124 Adjustment items: Merger and conversion charges (1,212) (4,206) Natural disaster expenses (151) — Gain (loss) on sale of premises 45 (510) Adjusted noninterest expense $ 559,337 $ 555,408 Total Revenue Net interest income $ 801,026 $ 655,327 Noninterest income 284,424 365,544 Total revenue $ 1,085,450 $ 1,020,871 Adjusted Total Revenue Net interest income (TE) $ 804,895 $ 659,903 Noninterest income 284,424 365,544 Total revenue (TE) 1,089,319 1,025,447 Adjustment items: Gain on securities (203) (515) Gain on sale of mortgage servicing rights (1,356) — Gain on BOLI proceeds (55) (603) Servicing right impairment (21,824) (14,530) Adjusted total revenue (TE) $ 1,065,881 $ 1,009,799 Efficiency ratio 51.65 % 54.87 % Adjusted efficiency ratio (TE) 52.48 % 55.00 % CRITICAL ACCOUNTING POLICIES AND ESTIMATES Ameris has established certain accounting and financial reporting policies to govern the application of accounting principles generally accepted in the United States of America (“GAAP”) in the preparation of its financial statements.
Non-performing Portfolio Assets Reconciliation Year Ended December 31, (dollars in thousands) 2023 2022 Nonaccrual portfolio loans $ 60,961 $ 65,221 Other real estate owned 6,199 843 Repossessed assets 17 28 Accruing loans delinquent 90 days or more 16,988 17,865 Non-performing portfolio assets $ 84,165 $ 83,957 Serviced GNMA-guaranteed mortgage nonaccrual loans 90,156 69,587 Total non-performing assets $ 174,321 $ 153,544 Total assets 25,203,699 25,053,286 Non-performing portfolio assets as a percent of total assets 0.33 % 0.34 % Total non-performing assets as a percent of total assets 0.69 % 0.61 % 31 Adjusted Efficiency Ratio Reconciliation Year Ended December 31, (dollars in thousands except per share data) 2023 2022 Adjusted Noninterest Expense Total noninterest expense $ 578,281 $ 560,655 Adjustment items: Merger and conversion charges — (1,212) FDIC special assessment (11,566) — Natural disaster expenses — (151) Gain on sale of premises 1,903 45 Adjusted noninterest expense $ 568,618 $ 559,337 Total Revenue Net interest income $ 835,044 $ 801,026 Noninterest income 242,828 284,424 Total revenue $ 1,077,872 $ 1,085,450 Adjusted Total Revenue Net interest income (TE) $ 838,824 $ 804,895 Noninterest income 242,828 284,424 Total revenue (TE) 1,081,652 1,089,319 Adjustment items: (Gain) loss on securities 304 (203) Gain on sale of mortgage servicing rights — (1,356) Gain on BOLI proceeds (486) (55) Servicing right impairment (recovery) — (21,824) Adjusted total revenue (TE) $ 1,081,470 $ 1,065,881 Efficiency ratio 53.65 % 51.65 % Adjusted efficiency ratio (TE) 52.58 % 52.48 % CRITICAL ACCOUNTING POLICIES AND ESTIMATES Ameris has established certain accounting and financial reporting policies to govern the application of accounting principles generally accepted in the United States of America (“GAAP”) in the preparation of its financial statements.
Year Ended December 31, 2022 2021 2020 (dollars in thousands) Average Balance Interest Income/ Expense Average Yield/ Rate Paid Average Balance Interest Income/ Expense Average Yield/ Rate Paid Average Balance Interest Income/ Expense Average Yield/ Rate Paid Assets Interest-earning assets: Federal funds sold, interest-bearing deposits in banks and time deposits in other banks $ 2,004,508 $ 23,085 1.15 % $ 2,877,263 $ 3,924 0.14 % $ 564,921 $ 1,886 0.33 % Investment securities 1,163,460 36,145 3.11 842,201 23,252 2.76 1,289,800 33,875 2.63 Loans held for sale 718,599 29,699 4.13 1,463,614 42,651 2.91 1,497,051 47,760 3.19 Loans 17,521,461 808,826 4.62 14,703,956 637,861 4.34 14,018,582 648,137 4.62 Total interest-earning assets 21,408,028 897,755 4.19 19,887,034 707,688 3.56 17,370,354 731,658 4.21 Noninterest-earning assets 2,236,726 1,960,697 1,870,139 Total assets $ 23,644,754 $ 21,847,731 $ 19,240,493 Liabilities and Shareholders' Equity Interest-bearing liabilities: Savings and interest-bearing demand deposits $ 9,809,835 $ 48,797 0.50 % $ 9,238,812 $ 11,764 0.13 % $ 7,584,732 $ 25,744 0.34 % Time deposits 1,604,978 7,308 0.46 1,954,552 10,593 0.54 2,385,296 33,323 1.40 Federal funds purchased and securities sold under agreements to repurchase 1,477 4 0.27 6,700 20 0.30 12,115 82 0.68 FHLB advances 279,409 9,710 3.48 48,888 775 1.59 849,546 7,701 0.91 Other borrowings 393,393 19,209 4.88 399,485 19,278 4.83 297,023 15,191 5.11 Subordinated deferrable interest debentures 127,316 7,832 6.15 125,324 5,355 4.27 124,632 6,709 5.38 Total interest-bearing liabilities 12,216,408 92,860 0.76 11,773,761 47,785 0.41 11,253,344 88,750 0.79 Noninterest-bearing demand deposits 8,005,201 7,017,614 5,227,399 Other liabilities 340,064 228,687 228,331 Shareholders' equity 3,083,081 2,827,669 2,531,419 Total liabilities and shareholders’ equity $ 23,644,754 $ 21,847,731 $ 19,240,493 Interest rate spread 3.43 % 3.15 % 3.42 % Net interest income $ 804,895 $ 659,903 $ 642,908 Net interest margin 3.76 % 3.32 % 3.70 % 32 RESULTS OF OPERATIONS Net Interest Income Net interest income represents the amount by which interest income on interest-earning assets exceeds interest expense incurred on interest-bearing liabilities.
Year Ended December 31, 2023 2022 2021 (dollars in thousands) Average Balance Interest Income/ Expense Average Yield/ Rate Paid Average Balance Interest Income/ Expense Average Yield/ Rate Paid Average Balance Interest Income/ Expense Average Yield/ Rate Paid Assets Interest-earning assets: Interest-bearing deposits in banks $ 914,818 $ 47,936 5.24 % $ 1,993,672 $ 23,008 1.15 % $ 2,857,141 $ 3,880 0.14 % Federal funds sold — — — 10,836 77 0.71 20,000 42 0.21 Time deposits in other banks — — — — — — 122 2 1.64 Investment securities - taxable 1,664,184 59,002 3.55 1,123,681 34,656 3.08 822,408 22,524 2.74 Investment securities - nontaxable 41,679 1,690 4.05 39,779 1,489 3.74 19,793 728 3.68 Loans held for sale 484,070 29,711 6.14 718,599 29,699 4.13 1,463,614 42,651 2.91 Loans 20,154,321 1,145,876 5.69 17,521,461 808,826 4.62 14,703,956 637,861 4.34 Total interest-earning assets 23,259,072 1,284,215 5.52 21,408,028 897,755 4.19 19,887,034 707,688 3.56 Noninterest-earning assets 2,145,801 2,236,726 1,960,697 Total assets $ 25,404,873 $ 23,644,754 $ 21,847,731 Liabilities and Shareholders' Equity Interest-bearing liabilities: Interest-bearing deposits NOW Accounts $ 3,878,034 $ 69,584 1.79 % $ 3,675,586 $ 14,367 0.39 % $ 3,400,441 $ 3,414 0.10 % MMDA 5,382,865 162,718 3.02 5,128,497 33,143 0.65 4,953,748 7,847 0.16 Savings Accounts 936,454 6,349 0.68 1,005,752 1,287 0.13 884,623 503 0.06 Retail CDs 2,031,828 63,650 3.13 1,604,978 7,308 0.46 1,953,927 10,575 0.54 Brokered CDs 1,024,606 53,716 5.24 — — — 625 18 2.88 Total Interest-Bearing Deposits 13,253,787 356,017 2.69 11,414,813 56,105 0.49 11,193,364 22,357 0.20 Non-deposit funding Federal funds purchased and securities sold under agreements to repurchase — — — 1,477 4 0.27 6,700 20 0.30 FHLB advances 1,210,242 59,302 4.90 279,409 9,710 3.48 48,888 775 1.59 Other borrowings 325,260 16,870 5.19 393,393 19,209 4.88 399,485 19,278 4.83 Subordinated deferrable interest debentures 129,310 13,202 10.21 127,316 7,832 6.15 125,324 5,355 4.27 Total non-deposit funding 1,664,812 89,374 5.37 801,595 36,755 4.59 580,397 25,428 4.38 Total interest-bearing liabilities 14,918,599 445,391 2.99 12,216,408 92,860 0.76 11,773,761 47,785 0.41 Noninterest-bearing demand deposits 6,771,464 8,005,201 7,017,614 Other liabilities 401,449 340,064 228,687 Shareholders' equity 3,313,361 3,083,081 2,827,669 Total liabilities and shareholders’ equity $ 25,404,873 $ 23,644,754 $ 21,847,731 Interest rate spread 2.53 % 3.43 % 3.15 % Net interest income $ 838,824 $ 804,895 $ 659,903 Net interest margin 3.61 % 3.76 % 3.32 % 35 RESULTS OF OPERATIONS Net Interest Income Net interest income represents the amount by which interest income on interest-earning assets exceeds interest expense incurred on interest-bearing liabilities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−8 removed8 unchanged
Biggest changeEarnings Simulation Model Results Change in % Change in Projected Baseline Interest Rates Net Interest Income (in bps) 12 Months 24 Months 400 3.7% 14.9% 300 4.3% 12.1% 200 3.5% 8.4% 100 1.8% 4.3% (100) (2.1)% (4.8)% (200) (5.4)% (10.9)% In the event of a shift in interest rates, we may take certain actions intended to mitigate the negative impact to net interest income or to maximize the positive impact to net interest income.
Biggest changeEarnings Simulation Model Results Change in % Change in Projected Baseline Interest Rates Net Interest Income (in bps) 12 Months 24 Months 300 (1.7)% 6.1% 200 0.6% 5.6% 100 0.6% 3.1% (100) (0.8)% (3.5)% (200) (1.8)% (7.5)% (300) (3.0)% (12.0)% In the event of a shift in interest rates, we may take certain actions intended to mitigate the negative impact to net interest income or to maximize the positive impact to net interest income.
As part of our asset/liability management program, the timing of repriced assets and liabilities is referred to as gap management. Interest Rate Risk Management As indicated by the table below, we are asset sensitive in relation to changes in market interest rates in the one-year and two-year time horizons.
As part of our asset/liability management program, the timing of repriced assets and liabilities is referred to as gap management. Interest Rate Risk Management As indicated by the table below, we are mildly asset sensitive in relation to changes in market interest rates in the one-year and two-year time horizons.
Our most recent model projects net interest income would increase if rates rise 100 basis points over the next year. The following table presents the earnings simulation model’s projected impact of a change in interest rates on the projected baseline net interest income for the 12- and 24-month periods commencing January 1, 2023.
Our most recent model projects net interest income would increase if rates rise 100 basis points over the next year. The following table presents the earnings simulation model’s projected impact of a change in interest rates on the projected baseline net interest income for the 12- and 24-month periods commencing January 1, 2024.
As a result, interest rates have a greater impact on our performance than do the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. 54 LIBOR Transition In 2017, the U.K.
As a result, interest rates have a greater impact on our performance than do the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. 54
Removed
Financial Conduct Authority announced that it would no longer compel banks to submit rates for the calculation of LIBOR after 2021. The administrator of LIBOR extended publication of the most commonly used U.S. dollar LIBOR settings to June 30, 2023 and ceased publishing other LIBOR settings on December 31, 2021.
Removed
On March 15, 2022, President Biden signed into law the “Adjustable Interest Rate (LIBOR) Act,” as part of the Consolidated Appropriations Act, 2022, which provides for a statutory transition to a replacement rate selected by the Federal Reserve based on the SOFR for contracts referencing LIBOR that contain no fallback provisions or ineffective fallback provisions, unless a replacement rate is selected by a determining person as outlined in the statute.
Removed
On December 16, 2022, the Federal Reserve adopted a final rule implementing the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023.
Removed
The U.S. federal banking agencies issued guidance strongly encouraging banking organizations to cease using U.S. dollar LIBOR as a reference rate in new contracts as soon as practicable and in any event by December 31, 2021.
Removed
We have significant but declining exposure to financial instruments with attributes that are either directly or indirectly dependent on LIBOR to establish their interest rate and/or value, some of which mature after June 30, 2023.
Removed
We have established a working group, consisting of key stakeholders from throughout the Company, to monitor developments relating to LIBOR changes and to guide the Bank’s response.
Removed
This team is continuing to work to ensure that technology systems are prepared for the transition, loan documents that reference LIBOR-based rates have been appropriately amended to reference other methods of interest rate determinations and internal and external stakeholders are apprised of the transition.
Removed
Over the next several months, we will continue to transition all remaining LIBOR-based products to an alternative benchmark. We will also continue to evaluate the transition process and align the Company’s trajectory with regulatory guidelines regarding the cessation of LIBOR, including monitoring new developments for transitioning to alternative reference rates. 55

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