ABCB - Earnings call transcript Q1 2022

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Operator

Hello, everyone, and welcome to the Ameris Bank First Quarter Earnings Conference Call. My name is Juan, and I will be coordinating your call today. [Operator Instructions] Now, I would like to turn the call over to Nicole, Chief Financial Officer. Please, Nicole, go ahead.

Nicole Stokes

Great. thank all and our have Jan, today. call you, you who to joined Thank

But we of referencing Jon the will open and call, Proctor, begin amerisbank.com. the and During be remind by our today then the statements Chief Q&A. details highlights of website comments, Palmer are up Credit I'm section I'll joined the any some materially. CEO; cause we I'll of a factors are our the will the that not before general our available we our opening with results Relations on you Palmer and Investor our our comments at in will available discuss Edwards, financial release required forward-looking financial financial press any begin, during to performance. risks may and website. to we by call, uncertainties, subject forward-looking as results obligation before in reference for our are statements. the measures discuss statements that include These do and press vary list that law. except new SEC to the result We information, certain the developments release might on otherwise, as Company's update in We could actual our Also or differ which early and filings, to of some Officer. assume non-GAAP results

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

Palmer Proctor

call, we you back the today. with highlights taking our our this and our we the stay some excited I reflective everybody time fundamentals the to the quarter on and and of of reported I to those from importance morning, I with control. on to and discipline core really And quarter's call the everyone. share results high am Nicole, focused can Thinking you, yesterday of pleased quarter. some constantly good on things financial ability last results that to that us expectations. I remind Thank join appreciate strategies the mentioned of execute are

fundamentals well the an ROA range ROTCE the ROA we And earnings The we above this first and between those consistent return said results of a XX%. and and within XXX represent XXX a range are on quarter, of those equity. in XX.X% adjusted a tangible high-performing had targeted. XXX Both with was

meeting quarter, you, talented Southeast our well all pipeline, fortunate deliver second a The we coming in with the of quarter loans It's In that fund XXXX Exclusive growth million such over single we $XXX especially gets during that quarter. have markets, Southeast the growth. bankers the this talked maintaining we're growth business. we're or grew thing incredibly an back runoff, terms of we upper fundamentals loan positioned markets. expectations anticipate the of to in strong X.X% We first annualized fourth and growth about this and that's quarter. of in in positioned encouraging be organic the growth CPP strong mind on continue we strong growth. and off continue had in last our to and to opportunities is of seeing as liquidity growth to digits, But certainly in to the

deposits certainly mix non-interest-bearing to our rate a this we muni importantly continue is low-cost decline to this expected, and rising low-cost to quarter, deposits cyclical account now betas for of grow total our more did end, us deposits due better going control As help deposit year at deposits. in deposits quarter XX% this environment. And but

affects capital. and which its ultimately impact and margin NII, sensitivity asset is fundamental third The on

variable rate rate asset-sensitive and an fixed loans of then like loans short We rate additional variable balance XX% loan. continue a with duration to an sheet have that XX% behave

positioned we're rising a environment. for So well rate

our to consistently by compared capital. that increased and proud over once quarter. $X.X expanded quarter, are book focused or sensitivity X% And million actually said basis This extremely we tangible just NII affects management XX quarter. last We've certainly our value, on again by and of and we're points margin that balance sheet this

So our are paid most portfolio. well team dilution experiencing through seeing banks due security losses in when to unrealized was or the

five pleased to few This have while quality just high-cost 'XX, and stewards over and and of a I'll remains 'XX includes during that remaining line year, the expectations. integration that XX% on very last Over the Balboa, our dilution remains and into existing growth tangible tangible years the from of in we're five quarter. million hit borrowings the We've X.X%, years the over inclusive with credit on than me value total $X.XX off growth the funded with a was purchase from highlights. was million. and $XXX the past with or Credit good our the value loan book I'm quarter over cognizant impact in our of going $XX March in or very Their net of March to banking core leadership let over Overall portfolio Since XX% five capital earn-back And fundamental quarter, solid segment. we and periods. liquidity paying mentioned in their addition and jump over was by and would Balboa Balboa. acquisitions, they production strong. for and book that by extremely increased the results. annualized. was their that positive we're more is last remember fourth of And annualized I well, been The credit,

was loans. basis Our total ratio charge-off points annualized of X net

and organic a after management is as and We've discuss first actions. Jon I and focused Credit points. in stop the with take rate environment due by now our solid rising and and capital assets that quarter, there percent on today we top-of-class and to we're total results. any remain core course, XX of basis Edwards, fundamentals, on over assets Chief growth, excited of turn want will in fundamentals sheet disciplined Officer future our our Nicole coming non-performing it But our to to was momentum remarks. Our and strong financial results preservation. us financial prepared reiterating our balance conclude about our a we're got of I'll to questions

Nicole Stokes

Great. Palmer. Thank you,

For recovery, the sale share. charges we diluted first servicing quarter, when $XX we're reporting per and an per we basis, diluted of On a and earned $X.XX net income gain million our share premises. of conversion $X.XX exclude asset merger or bank adjusted on million or $XX.X

and tangible Our on adjusted adjusted our was equity return common was XX.XX%. X.XX% ROA

unrealized and share stock to end over had And at been investment at this that this $X.XX purchases. decrease portfolio X%. to of we by less quarter Palmer tangible by on then bond our $XX.XX. the As our $X.XX now decline bought $X.XX the we're We've backfill items, with of strategy, back. and was book value disciplined saw from only year, or X.X% that dilution in tangible from retained X% the because at time tangible mentioned, to just we Compared We value value from than bond the with portfolio $X.XX we or the per beginning earnings last grew AOCI. our book deletion including book offset gains in from AACR $X.XX was in portfolio other

the of approximate at by to negatively X.XX% liquidity X.XX% equity end common our ratio on of was balance quarter this sheet that billion of $X end compared the impacted basis the points. at year. tangible Our the The remains excess XXX ratio

above have well about our stated exploited ratios X%. TCE X.XX%, which of cash and is that we So been total assets and target

dividend and outstanding leads We during We quarter and $XX our continue a about the We until that we repurchase have of less to well be comfortable on capital million share levels. XX this capitalized, year. the with program. did October $XX.X million first feel purchased program

on and net income Moving margins. to interest

million by $X.X in Our of by in That for in increased quarter bank offset a included net was mortgage revenue million driven PPP interest bank segment quarter million income Balboa. and the by warehouse was full $X.X of the million. the in a decline a decline segment, and $X.X the benefit $XX.X

by increased the X.XX% points basis X.XX% during XX from Our interest to net margin quarter.

liquidity, decreased to loan of Our basis points earning on basis points funding increased higher assets offset balances, XX portfolio. by XX was yields X%. and of reduction some basis point average basis due had in of point points while the a pending cost by total X that to due our yield of expansion the bond the our of X by X decrease on improvement We use and basis in costs, our yield

and quite have runoff we about high bond rates $X.X which loan $X excess X% to anticipate yields net $X.X stated, about to liquidity digits, billion in cyclical And are As in cash hope useful. growth. compared $X.X to We for investments NII rate million the deposit positioned the and growth a slide quite of this recorded remain. is $X.X about to billion portfolio munis. prepare to of X%, year but of of sensitive quarter. in for rate million on standpoint, presentation our approximately an the a the sensitivity servicing modeling information income everybody XX to with ourselves We've From that increasing added quarter. ALM million recovery last finds $X.X up-XXX asset loan billion to begin leaves single billion I for to the Non-interest we've excess rise be $X.X bit an environment. increased as not purchasing we that X.X% interest We

of we relationships was of decline, quarter and income refinance and it Mortgage quarter. to slowdown continued between run million X.XX% as pre-provision to quarter $X.X non-interest us to will to $X.X relatively non-interest Total Retail were increased billion. total million $X.X The returning our this $XXX.X balanced $X.X X.XX% originations businesses to in million million and XX.X% average forward. pretax Production the mortgage positioned activity, this levels, retail percentage believe MSR in revenues the normalized gain going X.XX% strong million. rate flat. division was our this quarter, the expenses in contribution pleased that excluding quarter. sale purchase by to on $XXX.X continue and that of mortgage expense for normal decreased see our well by from last a So activity. income network representing decreased has We a

the Excluding increased premises and the merger long-funding the quarter. non-interest expense million $X.X charges, for

$X for mortgage and million guided, quarter, things. million reduction million. those two three attributable expense was to the offset then of in things first as the the And was previously payroll increase However, quarter were expenses XXX(k) That of we $X.X taxes of additional cyclical match. by first Balboa having $X.X

all for other So when expenses, less you than X% at expenses look increased quarter. the

adjusted ratio XXX that points. affected XX.XX%, was by expenses basis efficiency so cyclical Our

of with PPP can on presentation. So annualized total our with the quarter that year. from We've $XXX.X our $XXX.X for of assets the the the that we the X.X% X.X% going And grow end these the or growth rose quarter. under XX% slightly normalize billion quickly runoff, see pleased had as $XX.X the ended or were excluding XX you balance of the And forward. on expect down organic slide the quarter. We we for return million investor loan at ratio loan expenses million annualized efficiency to $XX.X sheet, the net growth was detail of billion,

total deposits really $XX we're and the the million funds in we cyclical growth to Our that due public no continued now, pleased cost decreased deposits. with Worland running anticipated

betas total it momentum I'll increasing We our And reiterating mix our of that, scenario. We're and wrap turn Thank group. really I'm remainder weight today, they're disciplined performance. over our deposit helps about focused we've and the questions an operating to from to and continued XXXX. remain up That how on the back improved certainly deposits. of by going now as everyone's Wallen non-interest-bearing call the Wallen. deposits with XX.XX% any on you, for that maintained time excited appreciate our I the and

Operator

Thank Brady you. your question [Operator line KBW. Instructions] the comes Please line from is The Gailey from now first open. Brady, of

Brady Gailey

the wanted Altea. to just pieces they of on of then I some income fee on the know impact I So had moving side start an and the expense with side.

we kind there thinking. be related rate I of should your made adjustments view? think run that that forward to think a fusion higher point little fees expenses should ongoing to a of about than Is any you kind were came from of Balboa

Nicole Stokes

Yeah, that like we We from rate. did have Brady, is solid little I other were in feel lag. run have it expenses than a this acquisition. We think quarter But had few the acquisition a they a came that, good quarter. a

Brady Gailey

stock sure. notably But Then more on the inexpensive get right. just this see you all here. front if you want, so X.Xx I you Okay. tangible you getting can earnings. do cheap? All have you And say is The of buyback be authorization active I aggressive buyback heard left about how the on It's with think and great you Xx about get about stock more it's of -- can I'm being $XX to that, here. at the million you think and

Nicole Stokes

Sure.

past look you in weeks decline at big blackout. while when really So the the last been has couple quarter, in stock we this of the were

kind been active weeks of March, it we haven't the of into couple So last will blackout. move of

value one we we're the -- tangible, now. of be stock definitely make by book the can quite that could tangible that below back are So we when again, prices best investments probably is cognizant we're the prior buying of I think far, the -- our we -- and to right

Brady Gailey

close I charge-offs to the but quality Yes. know a kind bit. of up credit X, on front, were And still then NPAs net were little

that that Mae out maybe up too. some, and mortgages some up some were mortgages drove criticized and portfolio called you I think and classified the Ginnie

of I is you this bigger anything quality credit fairly worrisome guys low-risk there But at know Just loans picture, that a on loans. front those is are point? the lot for

Palmer Proctor

No, all of May, not seeing we moving any And we're Virginia a our keeping cracks the now, of up just the -- and the not as out. that's is eye anything, process it to a pretty to pertains verticals across we're working through anywhere. it Brady. but But seeing course, industry, everybody feel keen credit. obviously, right loans those process And

Brady Gailey

tangible congrats rare per this And That's quarter. to share. book see Okay. on value the

for to All it's Thanks for So guys. color. great see you right. the

Operator

Whitman comes next Our Casey Piper from Sandler. from question

Casey Whitman

environment, your from as wondering sale we net a to of is for two about last quarters. hikes. over XX% Can assume NII normalized like trends on Could sort that margins? ultimately what what you rates rate of the thinking range rate assume the best what that here in just more Maybe from PPL higher guess would down is more be

Nicole Stokes

kind I where a do that, retail go and there, as about the it's in XX%, little fact is the mortgage Yes. went two And of bit the and your that last you was especially been kind out and question up. but quarters think see we mortgage in rates of XX.X% that

So components to a that of couple one.

always been a a shop refi than shop. of We more purchase have

were XX% we this And historically up going refi. that purchase so XX% quarter were to versus we

down take of come So normal. billion But we $X which back room billion think bit just even little some that the $X.X of production started I first could quarter, have and some to into the that it a we do was go. taking still we a see still little more year. the to cyclicality comes production looking bit, you if be at $X billion for to even

feel I spot probably a for good is XX% like that us. So

Casey Whitman

Okay.

that you I just Or some XX% moves, I fine quarter, changes from still you the it's appropriate said overdraft. some the level? over Appreciate to an think last changed? the -- of overgrow announced is know has to a Okay. maybe maybe guys policies. And recently sort that NFF that of turning reduction

Nicole Stokes

bit. have may that think I been and XX%, misconstrued is It a little

XX% XX% the -- our not our just overdue. So income, of but of it's of

year, about so million. was last that $XX And

of And announced XX% that we the $X then would think so everybody had saw announcement about where probably doing. million. were And I publicly what we be

So that would are until year, full not $X a and into going really May. be million those effect

on down So behavior based an be we'll expecting $X that's or on about going $Xmillion annual up of portion hit will on million. based the $X 'XX to a historical million go and But we're then as of in have And that basis. well. again, that decline $XXmillion customer behavior,

Casey Whitman

Last Okay. for me.

Where a little tax the this, ask this think sort but lands the quarter. do of you rate next. higher that to Sorry over is

Nicole Stokes

in this part that and 'XX, should acquisition come last from hit that was there nonrecurring, costs was through the it a it back comes of XX.X be items probably, it quarter. 'XX quarter nondiscrete think I some of quarter of to Yes, and this

close XX to that XX or XX So to XX.X%.

Casey Whitman

you, Thank Good guys. quarter. Okay.

Operator

Our next line Kevin of Fitzsimmons question from DAD. comes the from

Kevin Fitzsimmons

focus point how when on pull that in on everyone times, back just this you into quarter. off up or it's this little yet, seen about curious, that? Can the dig holding -- purchases of you and matter deeper book you that come securities taking its tangible did the we were a quarter. you rates just actually a Did morning, Good -- haven't up of a -- to couple expanded tangible I book to shifting bank lower over it because maturity held was a just

you if on So can that. proactively what did give little detail more you a guys for

Nicole Stokes

I Absolutely think.

want not was I So cycle. And I payoffs last bonds. and that received fairly and when to amount We out that and we that it the the go decline I did think -- would buy said think rates a over go we our to guided, offset anemic loss quarter the bond asked that call, about buy we earnings up, We we rates go we would the and bonds on I loss, was have really the we lose earn like unrealized at this and in in by out as I felt rates unit. the even let the didn't the capital. portfolio were be would rates the expected third in before

So capital these X% earned we belove rates bonds, went soon by any we as that as up. buying

we to last and the not We for held So with our the at now better so kind sale mortgage that go cash mortgage. in kind of expect is sale levels far and than to much were back to starting from out. that rates getting normal we're to on go bond getting having portfolio that we of did using our some offset of looked our years use conjunction what use we for available loans the that X securities. over And to of really buy

assets, to earning of were look to -- we and bond earning So down we probably historically, When X% of XX% X% have would run we XX% you did that manage portfolio. of through that assets. a do are that quite we Again, buying to not getting so held more bonds level normal that now back anticipate But loans for offsetting was kind rates and up sale. more a

Palmer Proctor

comments. lot team have we what sale for you couple on with follow-up really of put an will A reaching job lot a that and then fact able warrant her keep is we of discipline of busy I paid because the growth, other to launch and be being buying through and the Nicole have modest, think did excellent people of and for people a places have lot money. questions didn't she but I received that portfolio. exhibits also furthermore, to And disciplines for off those A us. it did we any opportunities stick the

we happy a to with be to going rate out lever as were So bunch able low and stuff that to long-term of getting up opposed on.

on with kudos and for sticking the coal disciplines. their So her team

Kevin Fitzsimmons

would And as primary it -- That's M&A assume stock has like the it's focus not assuming expansion, in with quarters, like great. back, seems I'm less I recent been pulled in far But the and as focus today. a maybe growth equation the organic anticipate can about any might merger from in-market today? with come to feeling and disruption Balboa Just that with organic speak versus of team that you're acquisition how you lift-outs, you competitors? opportunities if

Palmer Proctor

Sure.

As any organic bank we've our over M&A have and and last we years. not year, the M&A, done is we've focus proven said -- year after consistently X primary that,

company a you've we to a feel good that. that. great the got on business, the the But were banks you of this lot that of lead have have when into prove operate making to into in in generate bank the don't which significant reason have of organic our compulsion if the growth your a do without move, do evidence more there. we've as at growth next world engine already fashion. clear the here. lines and And of us people were some investment retrenching, geography, recall, power like M&A of question, allows lot lot organic of and you'll look place. talent. M&A, held And so bankers ability is to that the to off there's we already part is got to seen to think in of of an market We're any markets. ourselves that's the we a importantly, And We've And I a that we even

a kept we single-digit already a years that ago, us everybody sudden, the on done for a and growth, people of based our We're loan then ramp letdown bet upper up. the already have we've So out lot of that to already wasn't out takes a lift in there. type a X we telling time and place of and all hit that lift and to wish

to those things look a do pulling we've continue the one performers that done do And lower then with on basis. is good to we Now of a job and performers. regular very we for -- top point, talent obviously replacing of out

hire retain you our continue I look think we past. on hired talent, initiatives time, yes, talent. in we've growth the based same the But when forward, attract still organic So at at or going what good will to and already

benefiting a made So there, and of results in already lot from or ago, of had some of what seeing we year we're today investment. out banks the competitor a that that our X from you're investment

Kevin Fitzsimmons

not And you. Nicole, those and what $X you liquidity Okay. I just keeping was were you talking was the going into repeat used then Can numbers? to was what growth when Great. up left. of about be and loan with last billion clarification. and excess one

Nicole Stokes

a about million run $X in about of in billion growth is loan $X half the purchases, is $XXX we cyclicality out to $X.X still It -- billion $XXX Sure. billion the we and quarter. billion, bond fund first have public $X.X million that to then

some with the quarter. We little billion Again, those to more growth potential $X bring runoff. of X.X, that post would million being of to to X, bit expect loan the run but ranges. $XXX second a then in up deposit And

Operator

comes from the next question of Raymond David Feaster James. line from Our

David Feaster

drivers do you able of was that wanted on behind then What could growth I expectations the trends just the some put that embedded the on of might option paydown primary you to just to and are single-digit and through provide be hoping high walk payoff for puts from in the organic expect touch I And that. outlook. pace you to contribution be that kind any outlook? details that Balboa. and on And takes expectations

Palmer Proctor

of breaking as When look down it tell remain our was is I there, the Yes, at just start by it we will off by you on the commercial very it vertical. pipeline over each strong bullish. I'll I front, as kind out And is it it's the The opportunities ever quarter. are responsible board primarily there some what of stronger out larger pricing, competition call for across big last the I there than growth. pressure comes to when banks the from and been.

place So with that we offset to the elongated just everyone is are a pertains but supply issues. an challenge due we some construction taking construction certainly able loans, projects from commercial I have going that banks. development to have in because as up larger pricing still think benefiting will the a the with in to it production -- to it's area. there chain for of we ramp period we'll be when like and up longer against place headwind, the feel you're pipeline Payoffs the be we still

So are kind all banks of from that. benefiting

But we are challenge of I'll we once very homes. our quarter. biggest So reached different. just there about model billion in now. and continue that you got strong, as consistent is we'll I to apps The did going so touch lift $X.X we've have again, is terms right Nicole consistently, the Mortgage production this there. our tell Right think supply being now,

remain feel ability for at what do. Balboa production stressed the confident will of because our provides throughout the only us is levering our rate. the run of we've us small share more we technology then, and than importance provide a addition current get the our to on course, business maintain also, we as and there not company. in is fair But activity, as level as which -- kind long we it diversification great they very of So focused they before, we lending, purchase of get entire

business as we and So bank. in through the of out being to other servicing is loan that have servicing land always business able banking small governor core retail that benefit release to But it the our we're grows, as that or we paper sales. the and with as speak retain package through securitizer rolling or a that luxury initiative sell certainly

great But a a our paper obviously. high that's have. it's small sheet. now, percentage the So of right is governor demand, balance It's in to

So we'll that I continue that the of addition. from all pretty And think lines business. to covers benefit much

we they is just a very the So PAN the of TV the we a as from like account sentiment the I lot lot from still the only right now. operate. and main call stand pipelines a very good positive. about would nutshell, that terms of feel tell on is negative The you, customer clients in hear I growth see issues. supply a There's falling. at chain hear on they in you not opportunity more there, of in pundits sky It's markets we least

see to So are reflective and that. to and of pipelines hear that's encouraging our

David Feaster

just extremely helpful. maybe touching with that increase breakdown then is helpful. the of expenses, table on That's the And

rate. looks that, kind negative But $XXX maybe I of think and a obviously, take the we expenses adjusted environment, if mortgage and million the investments inflationary is credit you that you resolution, like do it maybe look, strong continued base impact making, seasonal -- just given for forward? pace just are about think production expenses. the all and production of expenses I looking trends good is going how But to guess,

Nicole Stokes

the to production on because, and cyclical how And take at take we're just to up expecting So else obviously, kind look core. down, more payroll take exactly of of right, out some piece depending the or be is -- some of mortgage cyclical those everything out mortgage goes going to detail costs.

I think rate. that at run is good a

very technology. hold matching. I on how slight cyclical out to things and efficiency figuring to flat to the through and but payroll we that that taper through focused do our XXX(k) best of are And think really are increase, think I to we little takeout a use to increase, going very,

spend money that. do we look as case a expense saving somewhere to just to at it's on when our whether continuing and technology, growing So there's else it's or some whether revenue

David Feaster

the about going huge yields says pace just a pace. growth runoff. on the here color for gears to think any a to purchases, the of that you measured And how $X deploying do kind advantage Okay. about large into talked with And some of to My But I maybe deposit new that disciplined. pace gut investing seeing liquidity. you've shifting the of purchases? securities a been what on pretty the billion looking mean, buy? what loan of But purchases? then then extremely you excess liquidity. portion in in you're that potential be back you're got I you're mean We sitting and

Nicole Stokes

Sure.

have started our we to yet in a -- getting sheet through yesterday, so duration. kind purchased and up million, XX. But a far $XXX a all little X-year we million bit maybe the balance is about conversation that -- little of yield, about March X% a better with over So of on not $XXX this we're so as through than ALCO first

the that So we feel we could compared XXX to a really about gotten good ago. that have year

about a forward. $X.X So about quarter. will far, what share $X.XX interest we of That's $X million million, per income going thought add

in, So if earning assets. our put put $XXX to it X% portfolio we million X% we make $X X% And billion would and to would X%. be that our of

that at over could realistic. looking like few feel next quarters the to billion $X be $XXX I So million

David Feaster

AFS the And to assuming? bucket, those going Okay. are I'm

Nicole Stokes

it we last during the were question. that kind six all and to I went they they but some have buy We of bucket. months, thing don't -- the think kind held-to-maturity investments, think I of I bonds should So the earlier. year, I on last addressed Kevin's question really did CRA that, the was is one added

quarter, of filling So for available but everything purchases we this prior quarter sale. bit have did a little this fit to is

Operator

line from Jennifer of comes Securities. Demba question next from The the Instructions] Truist [Operator

Jennifer Demba

Question loan losses. on

are go can And buckets? think As Palmer, you like most rates talk rates do where Balboa vulnerable go interest up, you feel charge-offs the what net you land specifically? about will up as

Palmer Proctor

think area as work the what and then there, space. that obviously one are comes product A FICO Yes, important office they as people lot of there in portfolio, scores exposure. it sensitivity the going the I more indirect bank leases. loans worried helps our more to credit stress people of business, old to And I their very or the of obviously along from office just space thing Jennifer, and Balboa And extremely it their we're the specifically, in focus day. are Most guarantees. that at But a I we're I'm and other aware defaulting government to it figure think at. And close looking -- need But our keeping tell there on, listening all we when would which well each I I'll the the an to of at eye the on trying you going you are It's that loans, environment people limited on on, type then at look equated we're one when thing the of vertical our are you in eye in commercial, that's around is very that type. look what well close small about a they're to during those to to ones some close be of lines maturity. the keeping do so -- not needs in backdoor keep whether that more we're one terms people amount SBA. that's each out a are then through we're

look -- I'm wonder And going what if are so like. to you wondering what those

are scores the strong. I think extremely that there FICO

look charge-offs, over too is at the of when think could we've that I our extremely got XX in of XXX trends that And we bol charge-offs. portfolio FICO look terms is there of benefit you we around scores had average healthy. historical now FICO, years at which

may would basis very that business. you I most. good so line about of be X think right But we And feel peak now, the at points looking at there

in too, -- all is and So mind, keep those then -- also very they loans, duration short. small in loans that all loans the are and smaller

do construction very But feel probably think look office, its we comfortable carefully I primarily So at there. I to.

But on off our probably those we market to number, had diligence that close that to add me the the up follow were categories let X just X you total. basis would of be we a that inventory the think points I a it Keefer, housing kind the there on. levels so going forecasted keeping on so is turned low. would doing because less know, or be are forward when

business going be didn't to much more add given or bank pretty of that, will but quarter line anticipate than that's of of portfolio we kind And rest how this to about forward. how and the would its it the that any that group it. came clearly, So we own more the X than total expect it in size of it

Operator

from Janney question of from Christopher line Scott. next the Montgomery comes Marinac Our

Christopher Marinac

are will yields follow I see do think how new just last kind couple tightens wanted of of on what the kind beyond loan we in And the they of Fed disclosures How as in the night. new next reflect quarters? of you acting? yields up kind to

Palmer Proctor

that know, certainly get extremely yields but not the commercial you competitive the as residential lift going portfolio, through now. XX-year you for obviously, the portfolio to mortgage stronger in and both itself when they're look the experiencing at we're low is held-for-sale still but and we're Chris, rates, right

the a know downward contributor is So has there -- we passed that. the to -- the But some XX-year handle anybody the it, go you still passing on is at out seeing doing digits. yields. that of coming makes forward also of as continue look out we're a on be big there's there opportunities, -- And instruments. bigger have money rate there, banks when X there their It's will. be some on on in still I us we're will of we if Balboa got to floating double rate. going terms you pressure on don't several so in those which -- how to money on

And so improvement lift big be the that's to margin. going and to a

is look our the you when at think diversification beauty I the balance the of So board. across sheet

about feel we'll going most of of same competitive But operation. the rate in result on time, the probably the at obviously, mortgage then our I get primarily a very that's rising flote than the So do rate And a from outlook NIM, better instruments. environment, and lift sector. Balboa our competitors as to a be

Christopher Marinac

Sure.

some deals a probably be on selective in lower-margin you'll C&I of So result. as still more those

Palmer Proctor

rate-sensitive got with deposits stronger bank adjusted we're and to off that a quickly to all And betas. on a who not the the on access in And start deposit getting that quickly posit we good those benefit interesting with tide and think as rising that result as very base. our liquidity very banks Yes. have be news. on long-term from well a thing that, just because the -- real of it's And on into heavily EBITDA focused liability find as a because are sticky focusing when look Fed peers really I of other with the all all out our associated the rate, for benefit have, is going at hold fare relationship up I see job on what competitive less of we'll a the of those able especially to the will mean exceeded going lot be on to and going side you're we those probably change and because rates out to you fixed Absolutely. clearly core who everything move type people's but side we we as we'll deposits flip the going deposits of have are forward. there, But I be done think those the is of component

Christopher Marinac

servicing the then come on sort as that few some more quarters unfold? the recovery And one helpful. Should That's quick the asset. we of expect a next of just Great. of

Palmer Proctor

no. not, would I

Operator

Our next of Brody comes from Stephens from the Preston question Inc. line

Brody Preston

had to Brady minutes couple hop it for I Nicole, think was a on I of and Casey's question. is

me question. ask Babel? a it's division those bank origination just to you Nicole, quick were free yields, following transcript. anything feel ask to just Chris' I what more I The the wanted if do So know point ex redundant, to just up on

Nicole Stokes

Sure we I that's compared ex, $X.XX. $XX And last they -- to with quarter. and $X.XX think Balboa reported were

even a we without So sell bump Balboa.

Brody Preston

what Got higher Was ex-Balboa quarter it drove construction than the that increase it. the a was the in was bump? that? that linked And been book it had recently. saw bit I

Nicole Stokes

of cut environment. going base kind to is. being, in mean and as just it's mentioned, the general -- It of going rates in up as a anticipation rates rates. Palmer and better not we're I that on then this owing

Brody Preston

just fee through Or it for what's in then a sale there. on ask, consist of flowing I income? want the anything income? Thanks And putting that the Okay. other is on of gain size just to does all income. else it

Nicole Stokes

their production fit piece doesn't sale is box. It maybe on into the our that gain on portfolio quite a or of their credit

going that fee that. our will we on have forward income modeled And gain continue was our sell in them. or we acquisition would so that sale to income with And

Brody Preston

you in them do amount dollar happen quarter was? sold all And you it. Got month quarter was And loans the what what that the it of to know have acquire. this last you

Nicole Stokes

can not So, in I front that I do it. of have me, but get

Brody Preston

$X does to to a portfolio like with million All here somewhere considering was is just it is good bit on a level? size the $X just that. from right. HFS going per I follow Cool. more I'll think portfolio. well? little this that billion in origination going Or What billion of the Maybe that $XXX forward, shrink level fall we range Is guidance up the think as looks mortgage the year.

Nicole Stokes

X.X a X.X, little could the bit, X%. shrink think nearly not I but the to it down

I it. bulk think of the that's

I could and it somewhere XX.X%. think X between land X

Brody Preston

do principal And to portfolio you the end? quarter for happen of unpaid balances servicing know the with

Nicole Stokes

We'll get that for you.

Brody Preston

do actually the All in yields that Cool. but on Balboa, what to is And have the right. as on portfolio average know origination yield of putting there, you XQ?

Nicole Stokes

portfolio? on yield average the The Balboa

Brody Preston

through you you as percent to time? to Okay. All just of me a -- grow how loan let remind big right. the total want that portfolio And could portfolio what

Nicole Stokes

Sure.

as in technology in which we necessarily is their national well, now, right customers. -- are Balboa the So using vendor core as bank our well not

how So that doing that. -- but that using the are we're in and credit we we're comfortable with

now, figure So right it they're which to can X.X%. easily grow you XX%,

additional would be that, to we think I by would at we data, then, at if to volume. and it could think easily least but I look it. would tripling. then that reanalyze So it got And have that get XX%, And historical we their would we it's some and tripling

Palmer Proctor

we and securitize and it the versatility we yes, to sell over paper, income up, obviously thing a it some lot it's that package of got of is, appreciate. fee which The just can service next

Brody Preston

good were what changes. quickly. to right specific there's more I few went a here the if the CECL reserve that model waterfall, have -- That's to factors And just ask know. I wanted The next down?

up guess, the forecast specific for portfolios -- what -- XX%, you I So losses increased specific your the XX%. went like loss what kind went of where down were Qpack modeled was the the

you of that through bit? could So kind walk little a

Palmer Proctor

right, climate we the we scenarios, looked forecast what kind difficult were we that we looked at models that, were Moody's use, various that felt using. were been picked last economic to were it have double kind scenario. several representative dip felt model and of this those the weighting into. several would like baseline factors like blended at we we And options therefore, the to of going as that and there quarter, as key are more the used were include fairly from quarter The And we the basically that we in forecast up factor both had Q a that of

of of why model. looks included way like representative felt have in in the but it, that key it factors specific we that in don't more factors, overall in front using was that is the been you, necessarily model I we've those that scheme that So key were

were in needed that were they quarter. this So

Brody Preston

it's portion for Okay. on ask Can the Or the sensitivity floating? a billion? additional any just is that there or detail And truly variable rate. is call $X.X just then rate loans fixed percent of of you that XX% billion side. I variable have $X.X of Thank there. that rate What interest within that kind the

Nicole Stokes

all floating. That's

Brody Preston

period $X.X the the, looks I average those what typically the -- of And like? before remind me you reprice additional could time what just it. guess, quickly, of Got kind repriced Okay. billion

Nicole Stokes

Sure.

but technically a XX-month are So every rolling rolling the are as or that Those a there's But portfolio. lowing typically then section in are rates, and about construction balance those loans to that's again, X- repricing finance really days. duration. month. those And typically a premium also about fixed to XXX so our constantly, are our XX

main the those So are X.

Brody Preston

just that Does deposit include it deposit noninterest-bearing that does Or on nonmaturity And level? deposits forecast? Or one it that XX% is it. Got kind one assumption? Does XX% have guess, your then just And assumption? last I ramp the it's -- I the to questions. data. beta that throughout then within static the X assumption. that I of is date interest-bearing saw

Nicole Stokes

Yes.

bit includes XX% non-interest-bearing. question of is So we the just savings your a in modeling little money was the kind And the static. noninterest-bearing, of XX% -- Without -- it are the now closer a to markets. a then

Brody Preston

Yes, kind of time? start that yes, does it over increase to level

Nicole Stokes

what our In immediately it static using. do is No. we're modeling, we

we beat that we data. kind So feel that of

Brody Preston

Awesome. Thank you questions, very it. everyone. much for appreciate my I taking

Palmer Proctor

questions? further any Operator,

Operator

further for any on back questions phone will lines. We have no over Palmer final hand the Proto I to remarks.

Palmer Proctor

Great. very to like company core have type you results momentum the I'll and you that And into remain extremely Thank that feel doesn't and based well top that We're continue our keep first call. just financial focused out drive that, saying, happen. result exhibit. when disciplined beyond. of on, XXXX our you excited And as we and positioned very and listening quarter thank for entire as to everybody much, on it the obviously success, tell value. Juan. we're to diligent of fundamentals look throughout we again, like delivering I'd culture well the a I And It's to teammates shareholder once

Have in day. a interest your and time your great for again once all you thank So Ameris Bank.

Operator

concludes much This you call. today's for joining. Thank so

your lines. now may disconnect You

Ameris Bancorp (ABCB) 27 Apr 222022 Q1 Earnings call transcript