ABCB - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Ameris Bank First Quarter Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Nicole Stokes, Chief Financial Officer. ahead. go Please

Nicole Stokes

Andrea. joined you, you all to Great. call And today. have our who Thank thank

we During we on the I'm financial section the release our joined highlights press call, of Proctor, that will today be comments for of our going to I'm by Chief Edwards, are our at will our Jon available then website the results Officer. Palmer up begin the and details Palmer open with Relations and the Investor Credit some amerisbank.com. Q&A. referencing financial before CEO, opening it general discuss and

website. factors I'll filings, that could available except non-GAAP during to might These statements we results and differ certain any financial forward-looking on to are Before SEC remind we performance. any early press will the cause reference the assume forward-looking to measures or company's and include uncertainties, comments vary statements. which result information, materially. obligation begin, our and law. to results do are risks that discuss Also update required subject in our you our new by the in developments our We a We actual may as release list call, not in the statements of of some as otherwise,

reconciliation I'll it turn over You GAAP financial Palmer, measures with that, opening our our these comments. can measures see to and to of And in the presentation. appendix for you,

Palmer Proctor Jr.

to thing I'm certain us. on the thrived. about we everyone to morning with but to the was and that growth ability sat actually and call believe proud Nicole, grow we survive, the you, on at our economy. pandemic book we uncertainty year But was survive to And say We've and later really tangible this the at that lot good are said whatever of joined year, we about at focused only It's of shareholder a not call we time sit value. our last Thank to who's I today. did a here time value threw one pandemic team consistently hard this

On by XX.X% the our March ratio assets for past by tangible increased X%, grew TCE year, from XXXX over we we over XXXX, loan while increased XX.X%. increased our our XX%. over book to by and We losses allowance value March

preview, earnings and In provision results, that's addition, share Bank. the our culture we've at our with my noise. really operating excited XX% success we to said due just core operating an highlights the update in of of here increased cultivated pure you to share future. from for diluted exclusive year-over-year Ameris the a disciplined that, I'm and outlook of core few This That's type on And is results. per having quarter

adjusted share an basis, return For average per million is we time from or almost This assets $X.XX $XXX.X quarter, diluted XX.XX% on a XXX% the which on tangible a this on X.XX% return equity. and year. up last earned represents

minutes. is details previous in EPS more diluted at for a for XX.XX% of adjusted recovery realized loan expectations events, to this ratio $X.XX asset Exclusive into exceeded improved quarter. and million quarter. conditions, per we provision reverse $XX.X the the improved financial reported from of positive of quarter of did economic service Our loss this to we adjusted these year still last efficiency our $XX.X Due a Nicole share to million impairment. first just XX.XX% going few expense quarter, get

the our things, balance the first was growth On side for sheet loan I pleased quarter. really of with

loan markets. to expect our look the single opportunities and at to over our see upper growth – loan we net We digit annualized growth the after that's was X% indirect and runoff headwinds. within Our after PPP year our pipelines mid for just and as still

non-interest now from bearing a our We continue over deposits. already quarter on of total XX% to see deposits strong perspective. I capital this are year-over-year and deposit touched growth

and in the growth saw tangible book great value. Just we quarter, for TCE

quarter, which book first strong. X.X%, the we During grew tangible per share value $X.XX very is by or

which X% X.XX%, to goal. very getting increased ratio to our is close TCE Our

itself. Our strong, we to transactions. any and in if today we the credit the first repurchase few like credit. us continue Edwards, and near option is repurchase support to in share available certainly to but anything points this to Credit prepared to have he's after anticipate buy our I program having place, opportunistic the take want but remains don't questions executing presents quarter. going Chief our terms capital did remarks, position our Jon right future, shares in a with growth in didn't high it's we a do while our future on opportunity the and And Officer, certainly And hit back of really

Our XX annualized to points compared net to basis of XX basis charge-off quarter. ratio points loans total decreased last

to Our from total last XX basis the And quarter were the deferral XX of points basis XX% of of of compared loans. non-performing on percent approximately remain that quarter. X% assets end loans second the to quarter as end down a that's the Loans approximately points total XXXX. at total assets of of improved at

hotel the all As in slides across gas. in as in you'll the in the presentation, commitments, you types diversification loan our loan investor was exposure unfunded portfolio. no ratio, PPP excluding our as our and that to well see net know, on loans we And the allowance of we've coverage have additional X.XX% our our corner. And included exposure details oil loan

Just update on COVID and a quick PPP.

get. open that Business might everyone over in businesses the year easy and in in we're and are were the first especially the really we're are is of quarter, our restaurants, seeing locations up, that picking last for to Vaccines available During opened to back I southeast. pandemic. and XX the even new all and age of we add, branches shuttered and Most seeing they're retail over coming taking instance, traffic, lobbies.

a many of markets. to incrementally the growth just fortunate top back moving seem strong definitely to we're in business And southeast. things presence around these So, have really

balance As of we at balance the leaving far of round approximately have forgiveness PPP, million. rounds X the March opening funded another payments And on weeks. anticipate and at we with for X PPP $XXX X outstanding in month portal the round million XX, April. next $XX new the $XXX XXXX far as We outstanding about so received the few million forgiveness million as of the this new in loans, round $XXX

we've received applications. So far, X,XXX over

$XX,XXX Our time these request, average second around with averaging request $XX,XXX. are around And around has first request participants loan the $XXX,XXX. size been averaging

And the smaller, and thing saw into So, we a balance this average it's overall one, lead round last in that's wanted great that's ESG. to than return. in touch a I but the much helped is increase on,

communities, PPP our initiatives. of process, just we and outreach Gordon. was established success. our the In to governance thereafter And that's and XXXX, first our certain then it working our diversity officer specific a example During officer, underserved a Karlene March first role, one on how chief ESG we've great Ameris had announced diligently been shortly

public We Nicole there near as management responsibility all over financial we're the regularly it. board. investors CSR end share hope we that and meets to out have in level to the that a them social our to that our that discuss everything or actually report show results. committee and ESG And quarter, to they I'll now preparing we call have with on corporate And and we turn we're of first front. in so it report the our stop doing can second But to

Nicole Stokes

Great. Thank you, Palmer.

I $XX.X adjusted improving of As per to BOLI gain or And increase so per the of quarter million you pre-tax those out that million represents the of diluted thought share. focus the we've much that's since Because XX% on sale the the and provision, We first quarter, last when the $X.XX also about conditions. the earned provision we a earned economic provision we an core talking on again, and been reversed of result diluted the of year, noise. mention for direct volatility culture of some million a that for operating we the quarter loss Fidelity basis, been credit during a year-over-year on due premise. million discipline or true earned $XX.X performance. stated, from the to asset That numbers, recovery $XXX.X acquisition. servicing expense where On gain first record $XXX taking impairment, for $X.XX I'd $XXX.X there's quarter adjusted compared million you kind pre-provision share exclude in

reported Our this reported adjusted time return the on points year. which quarter and was X.XX%, assets first in from was last the basis last XX quarter increase an X.XX%

due described on return XX.XX% first quarter tangible XX.XX% ratios XX.XX% year. adjusted these in provision common for was to Our increases credit compared last the reverse above. to expense last and Those quarter are loss equity

was ROA quarter. reversal still for robust of and provision excluding recovery, the MSR at the core our X.XX% the very However,

to That we've tangible Palmer increased X.X% the by $X.XX from on. mentioned, value, or As $XX.XX for $XX.XX. book focused remained quarter

increased year over $XX.XX XX.X% the by from the or the that was year. time this For last it we year, $X.XX that

tangible equity of PPP this balance billion the points. at our of approximately excess impacted year. by addition, The and ratio points basis end In on the XXX common X.XX from increased XX ratio our basis to sheet $X X.XX loans liquidity negatively

feel cash target PPP comfortable be the see said our with which you approximately is dividend we to can been capital So, of our and have above Having continue our our total at excess capitalized X%. the ratio X.X and levels. stated from would loans well assets, quarter-end, we well excluding and that, TCE that

Moving on to margin.

As from basis to by the X.XX% X.XX% expected, during margin points net interest our X declined quarter.

increase interest-bearing decreased by decreased The our previously and X in earning Those points points, offset that Our our billion of of X basis costs basis that including for sale XX $X total PPP assets investment, XX points funding accretion negatively basis were XX points. by loans, basis sheet XX yield I on total on costs affected liquidity But for excess by while basis margin yield net both held deposit declined decline mentioned. points. basis balance the points. on approximate our our

going expense We that particularly Index. excess deposit liquidity to putting $XX.X the work, the costs, mentioned economic GDP improving million of our continue to provision on reversed the we is and unemployment and to next occurring the three CRE the for quarter already to quarters. when forecasts stay drivers margin economy, forward over improving real but focused We've we anticipate which that our due the related

our of mortgage factors estate, continue portfolio segments hotels. various to to on qualitative real and carry commercial include We

elevated in that take out this the year-end. Our of year other $XXX.X year. at at and that's you quarter of end compared the continued a compared Mortgage to and commitment increased million year, last at strong prior $X higher billion to million quarters in quarter non-recurring income at $XXX.X end production ending losses, from last at mortgage $XXX.X was quarter open X.XX% to reserve and when compared million was to recovery losses then at of finishing unfunded the quarter and was $X.X the and non-interest of year out begun. year end gain at due quarter allowance quarter of for decreased non-interest last and MSR to also $X.X to quarter last gain not even our million to on to the first loss right total credit allowance compared the had The first first remained noise taking billion March on the end the million just $XXX.X if the the an billion the at BOLI income, XX% X.XX% quarter-end for $X.X Non-interest billion XX% $XXX.X the impairment compared of million this the of production $XXX.X the for Including of all allowance at year. noise, credit income year pipeline for the Kind the last loan the the than end at division. this pandemic sale an quarter. was quarter,

in slowing Palmer But we year, a quarter, While cliff we quote of foresee do last don't dive do later to monitor kind it. we the to see from there. production really continue

Last expense examine expense from quarter, $XXX I prudently and bank. minimal last expenses, $XXX non-interest we to continued increases guided this almost total that this $XXX.X decline continue core to quarter million, quarter. would million anticipated million non-interest in quarter the Moving on to to

determination our initiatives. I So, to quarter find for pay pleased new really with efforts ways and was our here this to

XXX our quarter. As in a efficiency during in million the result, declined division over ratio $X.X by improved division And expenses the points. that basis banking

really the the and previously sustainable. anticipate last don't XX% adjusted watch for range time to stabilize the efficiency XX% the year. continue very division to increased ratio quarter last from closely. because revenue to to in to XX.XX I very, of we ratio mortgage it Overall, this reported company, efficiency XX.XX the got our We but for by level XX.XX efficiency the declined be quarter, from this efficiency previous ratio

in came we So, line in with guidance. right that

monitor down However, we division. And of second to the costs continue as the anticipate mortgage half variable declines do production in year. we the the in those reducing

billion On annualized We sheet we ended X.X% for the $XX.X the loan $XX.X our were pleased million $XXX.X compared side, with year-end. of quarter. of to balance with billion assets at the or organic quarter growth

We that's that the balance lines earning the XX% this see the We And XX% tremendous $XXX the decline division. slide we or truly could in determine was sheet in to warehouse million grew growth we growth of cyclical As deposit in new already in trend. see due be can slide deposits growth lines about to our warehouse watching we on residential that's you We bearing on XX discussed the see you a against year, although our non-interest that growth in further the CRE, the other can beginning believe annualized. liquidity of million remainder deposit cyclical, are of over excess deck, $XXX and C&D could deposits. and headwind of assets and had those C&I the if quarter. or significant over

we the in. funds extra and in did we seasonal also million had expected come approximately While money PPP stimulus runoff, $XXX have

liquidity So, real put we now fast is, work. can the question how that to

is to $X We billion the continue anticipate range, kind which growth. the loan net X% year that for digits, PPP of growth about X% net of in of to mid-single activity

more begin So as excess see PPP also investments excess we've being might billion And funds got that money into of that buy and or leaves for going deployed loans. about from prepare billion $X liquidity, billion we deposit any to being rates of appealing. used $X that the that as $X become cash we stimulus to runoff

the So, up and Life as the excess we're of Thank our loan time is markets turn of company over are back best margin as up, this we're the call expense everyone's And back Q&A to fund to our as growth. and to with I And normal always ready that, about income utilize much of wrap to in We're strong. grow. the Andrea. fee control the excited today. liquidity XXXX. Mortgage to to DNA. southeast. I'll We're and getting part businesses remainder session. you, to starting remain in some appreciate is open protecting Andrea possible

Operator

[Operator Instructions].

Our of Casey first question will come from Whitman Piper Sandler.

Casey Whitman

And to to just that I maybe the you that X% you sold Nicole, much you think us Can thanks to this gave. for off, regards just that I was? that guess, quarter. we With you should continue that, loan have tell expectation may And expect gave? off X% growth of top loans runoff? guys that of auto more you some is guide some sell of consumer on assuming the part how to I'm growth of the

Nicole Stokes

is included It Correct. in that.

we sale this quarter the already last for year. in quarter, we portfolio So, that fourth moved to the had held only of sold

So, did we quarter. of of held out the – come sale. do other loan I'm anticipate investment the out any it held sorry, sale not this not for And for

for So, that out and last held then loan into we sale same of it that talked the held quarter. went this was sale, for sale quarter about transferring

Casey Whitman

it's still just runoff the indirect happening. So, really, auto

Nicole Stokes

slowed. has that And right. That's

quarter Fidelity, million million That think XXXX at July million. slowed was portfolio to quarter. than is back you $XXX first if less and to our off a of runoff, $XXX indirect when that had there to Our closer we million $XXX a acquired to about about running down $XXX

kind have to get we of going it. headwind of that end do are just eventually tail that slowing, So, to little and down we

Casey Whitman

then Makes sense. round, have guys. new of maybe originations? latest question the XXXX housekeeping so on with PPP kind or originations in million for a you And just do the associated fees the The $XXX new you in

Nicole Stokes

fees $XX.X of call million it X XA people On X, then, And rounds, we call deferred X. have XXXX on the $X.X fee, of round well, is on there. the million which left round both – X, $XX about million we're and some and round going deferred we round of PPP XB, to have

just fees total to So $XX million deferred are about $XX million.

Casey Whitman

from KBW. Gailey Brady of question Next comes

Brady Gailey

mortgage of robust But, very when thinking think start I it's some you it normalize got any keep great still feels remains to at see. for which could lower? still And robust. on yeah, idea slow down Mortgage mortgage seeing y'all, is pretty to it's just to point. color like And sort what you're Any today? of within

Palmer Proctor Jr.

Bankers her Palmer. mentioned up, never a that, based shop going along, as which the Mortgage set I second be quarter, tell mortgage things Association there strong our think, all in will that on we've see didn't It's numbers, [indiscernible], I industry you of the our Nicole did see is we've you to look terms said with would a tell comment, pipeline, expect nor way can that and was now And you I there. that positive that. we had April.

is I The which second of think at probably one second deliver predict mortgage the to But we're production year hard at industry. now the as XX% half. current to as of if all refi look point. things you business, of the our most an into with encouraged continue half will this purchased of But We so of had really had us recent, our much is was business, encouraging. production,

demand purchase the continue think So in, for will move it's back. albeit nice second housing we into tempered year, as in for coming and a to at XXXX. housing sector pace we're the markets the And all through I with half deliver remainder of especially to see the that growth of the banks the

Brady Gailey

share. the sold has sell about ask to to State Cadence, continued opportunity We to wanted take just Cadence saw BancorpSouth. I market next now The to

to lot a SouthCrest versus share transaction. opportunity steal be market There Can market. and the do Colony much M&A to about the sort just night. to to the it's hire in smaller continues of something just Atlanta more saw, even to via deal last You dislocation, some especially sold of transformational talk you that away continue opportunity

Palmer Proctor Jr.

transaction. a when transformational, think people think immediately of larger think of I they

for at I our have market, to we things. supplement a that's commercial growth, I seeing and you in you organic growth then can we we'll disruption our ourselves. And that. think And transformational the I disruption, do in internally meaningful. we the growth really get beginning good to I that, we're our think that's pretty that's investment opportunity. take think of then, us, explore us. of continue think the have you form certainly our think deliver first I and of takes advantage a is one you generate opportunities, we'll Number and on focus And throughout when is second half due that's And And over I put in to that opportunities, top to positioned now it's two delivered we kind And we accelerate it. But we have place And there. some the that the transformation. our if do on think look to which two too, growth have more And things more what is how year, improving for efforts M&A sustainable something significant we across music we'll well made number and of as in further into like for be organic that and people And economy. the of see we're disruption foremost, time. is is to that I the the together place. And But market. ability primarily because which couldn't ears talking potential opportunities excited about terms layer in. mentioned. to happens footprint that primarily of been positioned have M&A things. those that And about

Brady Gailey

That are And of bond just bond are know the will mentioned maybe you when you hopefully go put excess billion Half billion book. to pull your thoughts book? rates that liquidity. deploy some, on you into Nicole, for up for it another I leaves that of then have wait of to more? they're maybe low. bond do or finally, book. but still up the for the kind that in you the me, go now a loan rates What little you to into cash $X pretty trigger Is

Nicole Stokes

longer. like Brady, bit bit a we would go rates a logic would like up wait more. here's my little there. little to to And We

the While to We people billion runoff that. we do and billion $X do got to do using that anticipate $X $X as normal, going left money. of what loan deposit have again, $X of to some minus we've start growth back we're with as about – billion things start get billion

some So, investments. and is, we do position look go purchases at in through we up, when to that at do purchases. loss we with – on anticipate going piece eventually. that can now, come rates holding be yields unrealized back like duration, we that starting some would we an of to are right other that's book that we're OCI the and be negative you sitting be going would The And to and on some a value, tangible feel to that's sitting those get

And on value the on effect bond repeatedly that growth. so, term could have a on outlook we're today it we book get the that that longer tangible purchase that incremental could tangible we've said versus for little on focused book,

can I want continued So, do, NII today short-term there's in for things increase that other dollars. a we've If interest we very decision to net to don't a small margin. make grow my income,

as in of grow mortgage could portfolio, we feel that bond like get than continue because get there the held as loans this better yield that little bit sale, little we mortgage to much bit purpose see let a a on can kind a you'll that for quarter. more bubbled we portfolio. we So, well up have the and We to did have that that what with

are down time we rates start, mortgage at up. and held for that maybe rates going So, sale down come as the come same loans

XX basis be from probably points that would get So, XX today the may little we another that. start we what ahead of could is our but we bit a need buying answer to preferred, short

Operator

Next Truist. Demba question of comes from Jennifer

Jennifer Demba

update Could happy see the on with C&I have what if the hiring in are you future, opportunities and now. us Palmer, your internal versus how you an that's efforts, and more opportunities there team your you're you going give lending or budget

Palmer Proctor Jr.

I sorry, first I'm missed for Jennifer, Can kind the It your of part it was please? me, repeat you muffled. question. of

Jennifer Demba

Sure. has and update I'm making Could progress your panned C&I that And an sorry. hires you us how give versus on plan? out lending on that any today area? if more in you plan

Palmer Proctor Jr.

really When I look as C&I, I'm at mentioned, that's you where probably encouraged.

right all-time on an And high and forward. Our as success here our pipeline. say we key everybody's at high pipeline sit now is is lung future to at going I'm know to are all-time growth that we an I pleased today,

We different sectors. lot are several a in seeing certainly activity of

a another In the now. did Atlanta another got for and C&I opportunities opportunistic lenders in hiring, in those couple this market, us three terms of past We've And have we footprint. in hire the two also Carolinas throughout hire then and to this be Jacksonville quarter. down quarter we continue the

and transactions. terms So, meaningful good it, relationships robust model a of initiative, with growth same but versus the slower have a more. more the mind in about certainly think time, we it's we'll too, pipeline it's the of CRE we've At initiatives. feel touched seeing building as we're we and lot there, that, Keep momentum in a I start really that on C&I

and of southeast considerably we're this to and we're the picking just that. seeing throughout all we're activity up that it's take So, advantage fortunate going

Operator

comes Stephens. question Preston from Brody Next of

Brody Preston

quick balances do Nicole, have just any chance? by question, the average PPP loan a you

Nicole Stokes

I do.

of $XXX.X average the And XA, balances X, million say then average. and $XXX And round I PPP was for XB. kind the for Our X first round was and XXXX quarter when X X X that's million.

So, our total average was $XXX million.

Brody Preston

out to it out, back wanted core back to, ask you yield get that then, a call like right, PPP. like, loan so when X.XX% I I when you

quarter last wanted And or ask the the points so at of X.XX%, production think, down so, basis since new year I about and division. I third the now have least yields, XX come from to just banking about

to year, you trending see loan And the that just ask, forward given of head yield of the core for so, wanted do I where we like, as kind rest that dynamic?

Palmer Proctor Jr.

a there. There's couple things

Our production it, new production lot of – that, But of yield you of kind quarter. is did the down come because loan this when think a our about pipeline.

pipeline that was the funded in quarter. so, there already first And the

coming in maybe of the stable, kind seeing we're is pipeline more a now even bump and little what So, up.

some been pressure starting those a back starting to kind in players in. see we're and to competitive of yields Now, our other come markets in. on and have couple they're coming We've out had people that

where competitive see So, gone would some have to think pressure would the production really starting of we're offsetting those up. that's we yields – some yields have

forward. So, kind of having those stabilized going

to deposit be out But X on compression loan of I of points the additional cost say of that portfolio, from taking feel should portfolio, So, we portfolio. loan basis shouldn't I also X just X loan we we the potentially to X the savings. the basis like on straight kind PPP, could anticipate X exact. points points. have basis

So, those almost offset.

Brody Preston

looking here. you're to slightly be I guess core PPP, for ex flat from to down margin the

Palmer Proctor Jr.

two of PPP growth then And comes quickly wildcards quickly really, the quarter more to of wildcard least there, With X other I'll of use pays One same mid PPP, high compression. at we're Brody. That's there's say saying how kind PPP, quarter. and basis excess liquidity one second right. that in to how the of kind points, that single probably and that digits. some in off. Ex X is loan is

Brody Preston

of bulk retail, breakdown, you this I when categories, was that But particularly look commercial add and growth office by sort quarter, commercial up solid. it's the when was office, quarter. And that obviously the in of of it's you on grew carried ex growth about the linked Just by XX% have lines, kind the specifically the at CRE. the business

tenant ask is a from perspective? home geographic originating give single office to I to or gives the fears? bigger growth detail office some could just lawyers provide work what sort And like? so, building, this you looks And where just there. what then, from as from a of given coming of sense just like the it comfort And wanted loans, us exposure sort all it if you is Is these

Jon Edwards

fine. that's Okay,

geographic and And around, of think business if hires get in to some in So, you able over still new able last those business to the – year is the and Jacksonville so we've and through marketplaces. Charlotte that been been bring very dispersion the have good. in been and Tampa we

So, market. pretty diverse well it's been a

a a occasionally types there if mid-rises. There's have businesses of loans, then quite while the medical offices, been been better kind really larger an But from of the a tried okay So have to for with product. it. feel buildings we've lease on of a essential that long-term really in to have stick we market, We stick MLB, underwriting really. an suburban essential those. to to how function businesses, there can And to office that tried have about to and that's group we stick

Brody Preston

Could outlook line you Premium some of provide portfolios, for growth around some the Finance? thoughts your business particularly

Palmer Proctor Jr.

is, very what Premium think I you'll find it's been Finance, consistent.

for be continue it think a steady will us. to provider I

has reflect turning, a just an the the sign lot is won't a inventory The but are know, out there. income So, residential market. as feel our that right housing of that and reflects be a been class, lending won't revenue things And very we And how you healthy our generated growth of to growth, overly well division, of with of market sustainable group. continue low but that lot so ability because, been of that's to comfortable productivity now, tremendous quickly there's construction one terms asset oftentimes there. in generate

ability It and where we've the new does growth plus. sale take I encouraged portfolio the due that onboard So, continue. mentioned, we brought seeing all of part. fortunate And longer, to to with of is we're a see And last in growth but flexibility lot Nicole utilize what C&I mortgage be that for XX markets – by over the some markets to our lot most hires real months. to of that we as is. we're that of we're to our The advantage. there. the held the for the our will And focus continue got our as a and mentioned a that's

the want for is viable be up. that SBA that us as touched So, a Jon very product one will ramp CRE well. to on we still

to meaningful the of that. there we to out to growth make programs on fair I [indiscernible], which well not get as good think sure and in SBA you'll very of additional income. focus going are go non-interest we We've generating see there our coming some I but think ought that, forward be had want continued some a share of that terms meaningful be we as

pretty I down our think asset breaks of all classes. that much

Brody Preston

expenses core of the for dollar the run Nicole, what does And the and quarter? come both for in business increases out that bank seasonal was the the the lines? amount of rate second

Nicole Stokes

payroll that $X in about we of goes by. off had in core hit mortgage, those will the we And of had then had year the million as $X.X taper in to million bank, payroll What taxes quarter million the taxes. about we first that $X.X the

Brody Preston

follow-up on questions. just I Palmer, just want you have all to I appreciate the M&A. one taking my one. last

seen, the buyers types the that we've think higher MOE So, I the risk. and have bigger with lagged execution deals

as $X.X of enhance you'd seeing to So, along your bolt-on be lines could to ask billion, type a deal you're you I'd of the provide that kind of of the bank changed $X billion, smaller these environment, deals I looking acquire bit? if that little thoughts Ameris that in on it. thoughts just maybe And current appreciate hit you kind would some the all Are kind you, thinking same $X billion wanted just tape? the have

Palmer Proctor Jr.

anything been And I is our $X having billion. of consistent will between to take regardless said or going tell risk, $X billion pretty really to execution you, we've excessive $XX anything that sweet I $XX on said that, wouldn't think kind spot organization. billion of a it's bank, and accretive bank this. do not would We've a on nor we're billion that our whether be

we very we are at M&A. look the strategic in Now, way

if banks garner said so, it well. that are some market space. we within a non-bank be of it or we're there out that helps and opportunities that for may growing, before, us or in for There as And as some if certainly that those interested meaningful are some probably further I've opportunities are other helps markets line it provides us additional business need share in

plan. there, right but to need able we is cultural to our a remain be need will think to to initiatives. our we're need be to in going strategic it's do the that to I consistent further to have it's going going it's to making whatever It's be So, one. fit, and to overall to do opportunities be – some it strategic approach there there sure of And in going out terms our into meaningful and fits going

Operator

next from Raymond Feaster of question comes Our James. David

David Feaster

loan below about than wanted bit levels, slower how kind C&I the to that it's trending production or on million. levels production of PPP the north seeing closer pipeline. what it's the hear extremely quarter. of fourth pre-pandemic kind there. from expect of especially slower a pipeline, of quarter the in and start back distraction whether you're Still just a you'd fourth had was $XXX reaccelerate just and just we north to but curious encouraging I'm Obviously, I pre-pandemic even to levels, to much of

Jon Edwards

opportunity the is think out right banks for I there now. all

First slower a to typically seasonally quarter quarter with. begin is

commend were need two to to PPP everybody We that. is bring what out to XXX% the addition say and was parlay to their to of that on I in helped mindful wearing we've we able been whole day that that build issue I happen. the second, But we meaningful for like done. had And then being is opportunities. making in advantage and of kind would to jobs pandemic effort. strength people them of PPP, with a in it and So, of industry the get a all with that up obviously you And said, that, our do new also case. the this and And the of several time commercial pandemic it up stepping talent to pitched be not take that hats PPP, top were and

we're you to that XX been takes, kind lot calling. We doesn't out inwardly. been happen now is that actively were have get than in days to have know, focused overnight. And that more XX XX out period. see those XX-day been to going. we're a It pipelines people starting of think, who of we've as calling, well So, things I And I to what think built,

seeing So, compound the the what going in that's the with economy is And we hope end then, that benefit now year. to and of you all and list pipeline. be the the we're lift an improvement between in

our of And I get second quarter, pipeline. opportunistic about of quarter that for think looks probably you'll preempt just We'll of bit a all second But us. we're most. in growth pretty everybody, of current I see think as into probably a accelerated half second XXXX. the half year little given ahead for we the

David Feaster

clients just migration sentiment guess your just in are where at ready from you and PPP of the we versus how over clients at the you over? just – in are bringing new kind think of of clients is pipeline being and existing is invest? we growth demand I where much And those coming either that improved this new – then, to improved

Palmer Proctor Jr.

customers. included, existing majority with outreach of banks, lot production, we this but on round most of most XX% did a with of that ours about remains banks' it touched X, Well, the like

other customers. was new The XX%

all is. it, in of them has customers, We hang XX%. as heard that some of have meaningful on I growth new a think garnered our others have not that, don't migration hat been of Any but coming I if terms terms customers a others it know witnessed from But wouldn't I huge either, needle, lifts customer meaningful. the those – I certainly in of and They're about. the not and talk I've of that new moving customers the PPP. customers. huge And seen I've in value result

new customers, more exists markets. our embracing disruption I for new in, the and hunting out is opportunity came customers. bank that doing we're And taking what for So, but that's all going our now care ones importantly, right the the of PPP that think with the in

tell So, new always maintaining the would going pretty trying I focused, that importantly, and our customers, in of but of much opportunities. to more out we've way and you we terms retaining been identify existing outreach remain

David Feaster

it some the PPP? drove decent into think I about of here, kind I on would for still the reserve? And if qualitative expect do just wanted maybe in what you guess, exclusively you criticized a touch quality. on going can then and there's factors Or sounds like reserve It there. you curious, some to detail to how or you Just reserve increase you releases grow reserve maintain asset us give ratio additional of opportunity forward. the that could amount see just balances maybe just

Jon Edwards

reverse. Let me in take that

to want kind that within primarily to do and think day as built that, that. looking opportunities for are the the those the framework being to and of forecast of models CECL reserve – reserves, models, we so the improve are a to we the release. I So, lot back the forecast of on pressure continue really off under generally at to don't certainly but on get work, We on businesses are hold drive

question. the tell again The part first first the part, of me

David Feaster

Just quality criticized? increase what asset trends the and you're seeing and in then drove

Jon Edwards

the was single one restrictions both in still by and [indiscernible]. were both impacted two an of ALF, One just they was first which quarter really hotel, loans. a really increase criticized The relationships, was COVID were

just that is two deferrals of was was not hotels, the as up year, did It systemic to And anything say, I properties. stretch. will any middle us this so, by all quickly. look those which extraordinary the on very were And we out, we on of through of there's coming kind most

we watch believe, think not what the or back improvement those. to watch we'll I that reached of so just really whether forward able opportunities, are or and profitability, did going where sort going list. they've of I list breakeven some So, we kind the got, see that on as of many because hotels And in deferrals to point approach and the finalize that had comprise these we do we've we final customers that for to at the be we're kind

we'll very watching quarter. So, this be closely next very, that

Operator

Marinac of next comes FIG question Christopher Partners. The from

Christopher Marinac

gain help mortgage into building it to that, otherwise wanted the some in you're Just sale follow-up does of is and than gain the expense would? And sale on that going on quarter. this initiatives on far the mortgage less business efficiencies forward, the

Nicole Stokes

No, necessarily. not you question great that's But think that. through as a

our on so thing from the sale gain to X.XX% mortgage, So, X.XX%. did is, decline with

XX XX by that point But I want to – add and one basis expense that decline. know touched any was decline was that a on don't there another our very to I actually anticipate stable. side, about on you So, basis don't the point means. I thing did production

saw of And on was so, production of remain even stable the the quarter production. but though pretty expenses first kind kind you based the were cyclical payroll absorbing stable, units stable, that's even those really and taxes,

when the but kind of went down, so, expenses down, revenue on sale same. went stayed gain our the And our

seeing costs, or help move back up in of as production that group, that. help up XX% very gain which hard about their on we've the stabilize or So, variable XX% move But sale to down, will of they're certainly will mortgage also, that then worked cognizant total are really cost. comes

you'll when down, shift production the see So, falling going down, as the costs. as starts that's starts the production in

Palmer Proctor Jr.

production last year's last at Chris, variable if XX% you look about of expense. was production, year's

and disciplined So, to pretty in got the that, mortgage. key across is, with we've the a being very especially move as on, Nicole quickly board culture and able touched is

move tapering will and because me see it you're prudent we how always that not that doing. you And in be tell be it'd the as can should back, is, expenses is scalable move. – but of how that reality that you what it is adjust people hasty business So, accordingly is quickly

got So, good I we've handle a that. on think

you'll pullback, production the the see we see As accordingly. move expenses

Christopher Marinac

customers right on you wealth commercial direction. sounds the from are Palmer, like outreach Just your business? to want to follow-up the you in seeing the It and talked you moving account is in openings sort that new extent management of about, that it what

little Just a want background more there. to get

Palmer Proctor Jr.

and And in creates a we've opportunity grow groups area us because think for banks it base grow at I wonderful can't that. see we've market of in a will our present There's done doing my our guys can I a But quite of with within it types in see opinion, like outside got bringing can grow contribution. some afford. lot is. And are frankly, as out customers bank more opportunities area an focus of XX in right time the you that these I'd that the to go of initiative. to think the good it look banks days, forward. fast of know grown, as for annuity. may type efforts continue of a enough of disruption, of growth wealth a We're I the we due our same banks, and and meaningful the market, It one a big that way, wealth quite have we as and so that see our that of you job job of for void certainly those And double RIs the client forward. In the cross-selling it we the now, of have of that and at contribution management. a business there there scarcity to and of that's But all it. we grow last terms make, to and And lot I assets terms it the under certainly meaningful due those starting the to as in existing an us benefits earnings can is go growing But over if that for down to area. on an

Operator

The next of question Preston is Stephens. Brody a follow-up from

Christopher Marinac

folks. question getting inbound just to Sorry hop on. I'm back from some

on mortgage if due quarter. income it pipeline? this wanted MSR I I the to to hedge each so, lower on you And wanted ask, locked And actually back to was lower up write out quarter, ask, is the that

Nicole Stokes

do say is lower, you revenues? you mean it When

Christopher Marinac

Yeah

Nicole Stokes

that those our this think, was fairly Production stable. was, basis No, was And points production production actually gain dropping billion. $X.X it's because billion. sale $X.XX XX I almost quarter last on quarter

down. sale. points of So, Gain kind basis production was was at But net on XX stable. is fairly it that of drove revenue gain what sale on

Christopher Marinac

or went LION the we're been PPNR I so guys think through, you PPNR division. is mid-XXs, since down the of now banking the have the that one at up look out, core banking around in segments the last bouncing million the to division, when the XXs sort break of back and $XX The you of deal you just to for

wanted levers I important some into going division as be become that it's you back of are for to because of P banking the going so, kind that to just And move what the ask, higher the normalizes mortgage to half pull just more and to XXXX? of in PNR the year

Nicole Stokes

Absolutely.

really have We've efficiency, as got that's conversion of a got out some kind and aspect those, like talked One get efficiencies through some other start occupancy treasury. things. a some we've where looking and initiatives leases. saves cost some there. is go through how as with that you do got initiatives do We've going at some we the as really We've division it movement of your you expense going treasury and and you built big done We've After that acquisition, everything. everything and you also increase as you about banking So, income. some evaluating do then really see in of the there we on just a to really good well you that treasury, our Fidelity, with job. in far

say our of I XX%, and office. costs, well. top XX% when related delivery or that platform. – has kind roughly as about got automation IT as – huge we then we've far helped is I a think technology About of has is future about benefit. to another future And another look integration, really our as that efficiency project technology IT, XX% When our at IT So, that our of PMO, forward we benefit management projects. of And what include then,

this is have synergy coming that kind so, areas. those that to all of of that we really gaining And fruition and through

Operator

like conference turn closing question-and-answer to the over our to I would remarks. Palmer any concludes session. Proctor for This back

Palmer Proctor Jr.

Andrea. our thank on over quarter Great. first I want want XXXX are to we about emphasizing by for everybody how future. you, our energized close to here Once earnings results. Ameris listening in again, Thank just did I at

are. capture clearly are market share to where markets markets we And we in the some more advantage take We bankers in and of best in Southeast. additional the have some importantly, right

ourselves quartile focused want really efficiencies remain to strong I you garner XXXX asset We're for forward on to on and focus and today. rest the continuing thank And in listening looking results initiatives. through positioned Thank future, to the we've quality, so, technology and for of again producing And a well and of we'll lot you. beyond. top those our

Operator

The Thank you conference has presentation may for you disconnect. concluded. and now now attending today's

Ameris Bancorp (ABCB) 23 Apr 212021 Q1 Earnings call transcript