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Ameris Bancorp Announces Financial Results For Third Quarter 2021 Exhibit 99.1 ATLANTA , Oct. 28 , 2021 / PRNewswire / -- Ameris Bancorp ( Nasdaq : ABCB ) ( the " Company " ) today reported net income of $ 81.7 million , or $ 1.17 per diluted share , for the quarter ended September 30 , 2021 , compared with $ 116.1 million , or $ 1.67 per diluted share , for the quarter ended September 30 , 2020. The Company reported adjusted net income of $ 83.9 million , or $ 1.20 per diluted share , for the quarter ended September 30 , 2021 , compared with $ 116.9 million , or $ 1.69 per diluted share , for the same period in 2020. Adjusted net income excludes after - tax merger and conversion charges , servicing right valuation adjustments , restructuring charges related to branch consolidations and efficiency initiatives , certain legal expenses , gain on bank owned life insurance ( " BOLI " ) proceeds , ( gain ) / loss on bank premises and expenses related to the COVID - 19 pandemic . For the year - to - date period ending September 30 , 2021 , the Company reported net income of $ 295.0 million , or $ 4.23 per diluted share , compared with $ 167.7 million , or $ 2.42 per diluted share , for the same period in 2020 . The Company reported adjusted net income of $ 287.2 million , or $ 4.12 per diluted share , for the nine months ended September 30 , 2021 , compared with $ 198.5 million , or $ 2.86 per diluted share , for the same period in 2020. Adjusted net income for the year - to - date period excludes the same items listed above for the Company's quarter - to - date period . Commenting on the Company's results , Palmer Proctor , the Company's Chief Executive Officer , said , " Our continued organic success and strong third quarter results show the strength and focus of our team of bankers . We grew loans 7 % annualized , exclusive of PPP loans , while growing low cost deposits at the same pace . In addition , we had another solid quarter of tangible book value growth at 3.8 % for the quarter due to the core earnings power of our Company . We remain focused on growth opportunities in the premier markets in the Southeast , which we are confident will lead us to continue to deliver top financial results . I am energized by our momentum and look forward to a strong 2022. " Significant items from the Company's results for the third quarter of 2021 include the following : • Net income of $ 81.7 million , or $ 1.17 per diluted share , compared with $ 88.3 million , or $ 1.27 per diluted share , in the second quarter of 2021 • Growth in tangible book value of 3.8 % , or $ 1.01 per share , to $ 27.46 at September 30 , 2021 , compared with $ 26.45 at June 30 , 2021 • Organic growth in loans of $ 43.7 million , or 1.2 % annualized ( and $ 251.3 million , or 7.0 % annualized , exclusive of PPP loans ) , during the third quarter of 2021 • Increase in net interest income , excluding accretion , of $ 1.3 million , from $ 157.4 million in the second quarter of 2021 to $ 158.7 million in the third quarter of 2021 • Adjusted return on average assets of 1.51 % , compared with 1.63 % in the second quarter of 2021 • Continued growth in noninterest bearing deposits , representing 40.44 % of total deposits , up from 36.27 % at December 31 , 2020 and 36.79 % a year ago • Net recoveries during the third quarter of $ 127,000 , compared to net charge - offs of $ 2.6 million , or 0.07 % of loans , in the second quarter of 2021 • Repurchased 137,370 shares of the Company's common stock at a cost of $ 6.5 million , or an average price of $ 47.56 per share Net Interest Income and Net Interest Margin Net interest income on a tax - equivalent basis for the third quarter of 2021 totaled $ 162.8 million , compared with $ 163.0 million for the second quarter of 2021 and $ 163.9 million for the third quarter of 2020. The Company's net interest margin was 3.22 % for the third quarter of 2021 , down from 3.34 % reported for the second quarter of 2021 and 3.64 % reported for the third quarter of 2020. The decrease in net interest margin in the current quarter is attributable to excess liquidity held on the balance sheet , as the average balance in interest - bearing deposits in banks continued to increase during the quarter . The yield on earning assets declined 14 basis points due to this excess liquidity , as well as a decline in accretion income , and the decline was partially offset by improvement in the cost of interest - bearing liabilities of three basis points during the quarter and increases in average loans . Accretion income for the third quarter of 2021 decreased to $ 2.9 million , compared with $ 4.5 million for the second quarter of 2021 , and $ 6.5 million for the third quarter of 2020. The decrease in accretion income for the third quarter is primarily attributable to decreased accelerated income related to payoffs of acquired loans during the third quarter of 2021 and continued attrition of the purchased portfolio . Yields on loans decreased to 4.24 % during the third quarter of 2021 , compared with 4.33 % for the second quarter of 2021 and 4.42 % reported for the third quarter of 2020. Contributing to interest income on loans for the third quarter of 2021 was $ 6.2 million related to accelerated fee income on Paycheck Protection Program ( " PPP " ) loan forgiveness , compared with $ 6.1 million in the second quarter of 2021. Loan production in the banking division during the third quarter of 2021 was $ 913.3 million , with weighted average yields of 3.56 % , compared with $ 911.3 million and 3.75 % , respectively , in the second quarter of 2021 and $ 869.0 million and 4.00 % , respectively , in the third quarter of 2020. Loan production in the lines of business ( including retail mortgage , warehouse lending , SBA and premium finance ) amounted to an additional $ 5.8 billion during the third quarter of 2021 , with weighted average yields of 3.37 % , compared with $ 6.4 billion and 3.36 % , respectively , during the second quarter of 2021 and $ 7.7 billion and 3.33 % , respectively , during the third quarter of 2020 . Interest expense during the third quarter of 2021 decreased to $ 11.4 million , compared with $ 11.9 million in the second quarter of 2021 and $ 17.4 million in the third quarter of 2020. The Company's total cost of funds movec two basis points lower to 0.24 % in the third quarter of 2021 as compared with the second quarter of 2021. Deposit costs decreased two basis points during the third quarter of 2021 to 0.11 % , compared with 0.13 % in the second quarter of 2021. Costs of interest - bearing deposits decreased during the quarter from 0.21 % in the second quarter of 2021 to 0.18 % in the third quarter of 2021 . Noninterest Income Noninterest income decreased $ 12.7 million , or 14.2 % , in the third quarter of 2021 to $ 76.6 million , compared with $ 89.2 million for the second quarter of 2021 , primarily as a result of decreased mortgage banking activity , which declined by $ 13.8 million , or 19.6 % , to $ 56.5 million in the third quarter of 2021 , compared with $ 70.2 million for the second quarter of 2021. This decrease was primarily the result of a $ 18.5 million reduction in mortgage pair - off fees compared with the second quarter of 2021. Gain on sale spreads increased to 3.17 % in the third quarter of 2021 from 2.77 % for the second quarter of 2021. Total production in the retail mortgage division decreased to $ 2.06 billion in the third quarter of 2021 , compared with $ 2.39 billion for the second quarter of 2021. Mortgage banking activity was negatively impacted during the third quarter of 2021 by a $ 1.4 million servicing right impairment , compared with a recovery of $ 749,000 for the second quarter of 2021. The retail mortgage open pipeline was $ 1.93 billion at the end of the third quarter of 2021 , compared with $ 1.75 billion at June 30 , 2021 . Service charge revenue increased $ 479,000 , or 4.4 % , to $ 11.5 million in the third quarter of 2021 , compared with $ 11.0 million for the second quarter of 2021 , resulting from an increase in volume . Other noninterest income was flat in the third quarter of 2021 at $ 6.9 million , compared with the second quarter of 2021 , primarily as a result of increases in trust services income of $ 260,000 , BOLI income of $ 217,000 and merchant fee income of $ 130,000 , offset by a decrease in gain on sale of SBA loans of $ 654,000 . Noninterest Expense Noninterest expense increased $ 1.4 million , or 1.1 % , to $ 137.2 million during the third quarter of 2021 , compared with $ 135.8 million for the second quarter of 2021. During the third quarter of 2021 , the Company recorded a net loss of $ 1.1 million related to bank premises and merger and conversion charges of $ 183,000 , compared with a net gain on bank premises of $ 236,000 during the second quarter of 2021. Excluding these charges , adjusted expenses decreased approximately $ 120,000 , or 0.1 % , to $ 135.9 million in the third quarter of 2021 , from $ 136.0 million in the second quarter of 2021. The majority of this decrease is attributable to a $ 5.8 million reduction in salaries and employee benefits , primarily variable compensation related to mortgage production , and a $ 1.2 million decrease in data processing and telecommunications expense . These decreases were offset by increases in legal and other professional fees , loan servicing expenses and other mortgage expenses that are not expected to be recurring . The adjusted efficiency ratio was 56.56 % in the third quarter of 2021 , compared with 54.07 % in the second quarter of 2021 . Income Tax Expense The Company's effective tax rate for the third quarter of 2021 was 26.2 % , compared with 23.3 % in the second quarter of 2021. The increased rate for the third quarter of 2021 was primarily a result of an adjustment to the Company's state tax liability . The Company's future effective rate is expected to be between 23 % and 24 % . Balance Sheet Trends Total assets at September 30 , 2021 were $ 22.53 billion , compared with $ 20.44 billion at December 31 , 2020. Total loans , including loans held for sale , were $ 16.26 billion at September 30 , 2021 , compared with $ 15.65 billion at December 31 , 2020. Total loans held for investment were $ 14.82 billion at September 30 , 2021 , compared with $ 14.48 billion at December 31 , 2020 , an increase of $ 343.6 million , or 2.4 % . Loan production in the banking division during the third quarter of 2021 remained strong at $ 913.3 million , which was consistent with the second quarter of 2021 and up 5 % from the third quarter of 2020 . At September 30 , 2021 , total deposits amounted to $ 18.83 billion , or 97.1 % of total funding , compared with $ 16.96 billion and 96.8 % , respectively , at December 31 , 2020. At September 30 , 2021 , noninterest - bearing deposit accounts were $ 7.62 billion , or 40.4 % of total deposits , compared with $ 6.15 billion , or 36.3 % of total deposits , at December 31 , 2020. Non - rate sensitive deposits ( including noninterest - bearing , NOW and savings ) totaled $ 12.01 billion at September 30 , 2021 , compared with $ 10.23 billion at December 31 , 2020. These funds represented 63.8 % of the Company's total deposits at September 30 , 2021 , compared with 60.3 % at the end of 2020 . Shareholders ' equity at September 30 , 2021 totaled $ 2.90 billion , an increase of $ 253.7 million , or 9.6 % , from December 31 , 2020. The increase in shareholders ' equity was primarily the result of earnings of $ 295.0 million during the first nine months of 2021 , partially offset by dividends declared . Tangible book value per share was $ 27.46 at September 30 , 2021 , compared with $ 23.69 at December 31 , 2020. Tangible common equity as a percentage of tangible assets was 8.88 % at September 30 , 2021 , compared with 8.47 % at the end of 2020 . Credit Quality Credit quality remains strong in the Company . During the third quarter of 2021 , the Company recorded a provision for credit losses reversal of $ 9.7 million , compared with a provision of $ 142,000 in the second quarter of 2021. This provision reversal was primarily attributable to improvements in forecast economic conditions , particularly levels of home prices and commercial real estate prices , compared with forecast conditions during the second quarter of 2021. The Company has been prudently working with borrowers to support their credit needs during the challenging economic conditions and is monitoring the level of modifications on an ongoing basis , such that loans remaining on deferral at the end of the third quarter of 2021 equaled approximately 0.6 % of total loans , down from approximately 1.2 % and 4.3 % of total loans at the end of the second quarter of 2021 and the third quarter of 2020 , respectively . Nonperforming assets as a percentage of total assets was stable at 0.32 % during the quarter . The Company recorded net recoveries in the third quarter of 2021 of $ 127,000 , such that the net charge - off ratio was zero basis points for the quarter , compared with seven basis points in the second quarter of 2021 and 10 basis points in the third quarter of 2020 . Share Repurchase Program The Company's board of directors has also approved the extension of the share repurchase program authorized in September 2019 , under which the Company was authorized to repurchase up to $ 100 million of its outstanding common stock . As extended , the program now allows for repurchases of shares to occur through October 31 , 2022. Currently , $ 79,190,199 in aggregate value remains for repurchase under the program . Conference Call The Company will host teleconference at 9:00 a.m. Eastern time on Friday , October 29 , 2021 , to discuss the Company's results and answer appropriate questions . The conference call can be accessed by dialing 1-844-200-6205 ( or 1-833-950-0062 for participants in Canada and 1-929-526-1599 for other international participants ) . The conference call access code is 162447. A replay of the call will be available one hour after the enc of the conference call until November 5 , 2021. To listen to the replay , dial 1-866-813-9403 . The conference replay access code is 133904. The financial information discussed will also be available on the Investor Relations