About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides a full range of banking services to its retail and commercial customers who are primarily concentrated in select markets in Georgia, Alabama, Florida, North Carolina, and South Carolina. The company operates branches primarily concentrated in select markets in Georgia, Alabama, Florida, North Carolina and South Carolina. Strategy The company seeks to increase its presence and grow the Ameris brand in the markets that it serves in Georgia, Alabama, Florida, North Carolina and South Carolina and in neighboring communities that present attractive opportunities for expansion. It has maintained its focus on a long-term strategy of expanding and diversifying its franchise in terms of revenues, profitability and asset size. The company’s growth over the past several years has been enhanced significantly through both organic growth and acquisitions. The company’s most recent bank acquisition was of Fidelity Southern Corporation (Fidelity), which was completed in 2019. In addition, in December 2021, the company acquired Balboa Capital Corporation (Balboa), a point of sale and direct online provider of lending solutions to small and mid-sized businesses nationwide. Banking Services Lending Activities The company maintains a diversified loan portfolio by providing a broad range of commercial and retail lending services to business entities and individuals. The company provides agricultural loans, commercial business loans, commercial and residential real estate construction and mortgage loans, consumer loans, revolving lines of credit and letters of credit. The company also originates first mortgage residential mortgage loans and generally enters into a commitment to sell these loans in the secondary market. Commercial Real Estate Loans: This portion of the company’s loan portfolio has grown significantly over the past few years and represents the largest segment of its loan portfolio. Commercial and farmland real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space. These loans also include extensions for the acquisition, development or construction of commercial properties. The loans are underwritten with an emphasis on the viability of the project, the borrower’s ability to meet certain minimum debt service requirements and an analysis and review of the collateral and guarantors, if any. Residential Real Estate Mortgage Loans: The company originates adjustable and fixed-rate residential mortgage loans. These mortgage loans are generally originated under terms and conditions consistent with secondary market guidelines. Some of these loans will be placed in the company’s loan portfolio; however, a majority are sold in the secondary market. The residential real estate mortgage loans that are included in the company’s loan portfolio are usually owner-occupied and generally amortized over a 20- to 30-year period with three- to five-year maturity or repricing. Agricultural Loans: The company’s agricultural loans are extended to finance crop production, the purchase of farm-related equipment or farmland and the operations of dairies, poultry producers, livestock producers and timber growers. Agricultural loans typically involve seasonal balance fluctuations. Although the company typically looks to an agricultural borrower’s cash flow as the principal source of repayment, agricultural loans are also generally secured by a security interest in the crops or the farm-related equipment and, in some cases, an assignment of crop insurance and mortgage on real estate. The lending officer visits the borrower regularly during the growing season and re-evaluates the loan in light of the borrower’s updated cash flow projections. A portion of the company’s agricultural loans is guaranteed by the Farm Service Agency Guaranteed Loan Program. Commercial and Industrial Loans: Generally, commercial and industrial loans consist of loans made primarily to manufacturers, wholesalers and retailers of goods, service companies, municipalities and other industries. These loans are made for acquisition, expansion, working capital and equipment financing and may be secured by accounts receivable, inventory, equipment, personal guarantees or other assets. The company monitors these loans by requesting submission of corporate and personal financial statements and income tax returns. The company has also generated loans which are guaranteed by the U.S. Small Business Administration (the SBA). SBA loans are generally underwritten in the same manner as conventional loans generated for the Bank’s portfolio. Periodically, a portion of the loans that are secured by the guaranty of the SBA will be sold in the secondary market. The company also originates, administers and services commercial insurance premium finance loans made to borrowers throughout the United States. Consumer Loans: The company’s consumer loans include home improvement, home equity, motor vehicle, loans secured by savings accounts and personal credit lines. The terms of these loans typically range from 12 to 240 months and vary based upon the nature of collateral and size of the loan. These loans are generally secured by various assets owned by the consumer. Investment Activities As of December 31, 2022, the company’s investment portfolio included U.S. Treasuries; U.S. government-sponsored agencies; state, county and municipal securities; corporate debt securities; SBA pool securities; and mortgage-backed securities. Deposits The company provides a full range of deposit accounts and services to both retail and commercial customers. These deposit accounts have a variety of interest rates and terms and consist of interest-bearing and noninterest-bearing accounts, including commercial and retail checking accounts, regular interest-bearing savings accounts, money market accounts, individual retirement accounts and certificates of deposit. The company obtains most of its deposits from individuals and businesses in its market areas. Brokered deposits are deposits obtained by utilizing an outside broker that is paid a fee. The company utilizes brokered deposits to accomplish several purposes, such as acquiring a certain maturity and dollar amount without repricing its customers which could increase or decrease the overall cost of deposits and acquiring certain maturities and dollar amounts to help manage interest rate risk. Other Funding Sources The Federal Home Loan Bank (FHLB) allows the company to obtain advances through its credit program. These advances are secured by securities owned by the company and held in safekeeping by the FHLB, FHLB stock owned by the Company and certain qualifying loans secured by real estate, including residential mortgage loans, home equity lines of credit and commercial real estate loans. The company maintains credit arrangements with various other financial institutions to purchase federal funds. The company participates in the Federal Reserve discount window borrowings program. The company also enters into repurchase agreements. Supervision And Regulation The company is extensively regulated, supervised and examined under federal and state law. Generally, these laws and regulations are intended to protect the bank’s depositors, the FDIC’s Deposit Insurance Fund (the DIF) and the broader banking system, and not its shareholders. These laws and regulations cover all aspects of the company’s business, including lending and collection practices, treatment of its customers, safeguarding deposits, customer privacy and information security, capital structure, liquidity, dividends and other capital distributions, and transactions with affiliates. Such laws and regulations directly and indirectly affect key drivers of the company’s profitability, including, for example, capital and liquidity, product offerings, risk management and costs of compliance. In addition, changes to these laws and regulations, including as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) and regulations promulgated thereunder, have had, and may continue to have, a significant impact on its business, results of operations and financial condition. As a bank holding company and financial holding company, the company is subject to regulation, supervision and enforcement by the Board of Governors of the Federal Reserve System (the Federal Reserve). The bank has a Georgia state charter and is subject to regulation, supervision and enforcement by the Georgia Department of Banking and Finance (the GDBF). In addition, as a state non-member bank, the bnk is subject to regulation, supervision and enforcement by the FDIC as the bank’s primary federal regulator. The Federal Reserve, the FDIC and the GDBF regularly examine the operations of the company and the bank and are given the authority to approve or disapprove mergers, consolidations, the establishment of branches and similar corporate actions. These agencies also have the power to prevent the continuance or development of unsafe or unsound banking practices or other violations of law. In addition, the Consumer Financial Protection Bureau (the CFPB) supervises the bank with respect to consumer protection laws and regulations. As a registered bank holding company, the company is subject to regulation under the Bank Holding Company Act (the BHCA) and to the supervision, examination and reporting requirements of the Federal Reserve. If the company or the bank ceased to be well capitalized or well managed under applicable regulatory standards, or if the bank received a rating of less than Satisfactory under the Community Reinvestment Act, its ability to conduct these broader financial activities would be limited. The bank is subject to certain restrictions in its dealings with the company and its affiliates. Transactions between banks and any affiliate are governed by Sections 23A and 23B of the Federal Reserve Act. An affiliate of a bank typically is any company or entity that controls or is under common control with the bank, including the bank’s parent holding company and non-bank subsidiaries of that holding company. Some but not all subsidiaries of a bank may be exempt from the definition of an affiliate. The bank’s deposits are insured to the maximum extent permitted by the DIF. The bank is required to pay quarterly premiums, known as assessments, for this deposit insurance coverage. The FDIC uses a risk-based assessment system that imposes insurance premiums as determined by multiplying an insured bank’s assessment base by its assessment rate. The bank’s regular assessments are determined within a range of base assessment rates based in part on the Bank’s CAMELS composite rating, taking into account other factors and adjustments. Under the methodology, the bank’s assessment rates are based on an initial base assessment rate of 3 to 30 cents per $100 of insured deposits, subject to certain adjustments, and may range from 1.5 to 40 cents after applying adjustments. The bank has branch offices in Alabama, Florida, Georgia, North Carolina and South Carolina. The bank is subject to a number of federal and state laws designed to protect customers and promote lending to various sectors of the economy and population. These consumer protection laws apply to a broad range of the company’s ctivities and to various aspects of its business, and include laws relating to interest rates, fair lending, disclosures of credit terms and estimated transaction costs to consumer borrowers, debt collection practices, the use of and the provision of information to consumer reporting agencies, and the prohibition of unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products and services. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act and the Fair Debt Collection Practices Act, as well as their state law counterparts. At the federal level, most consumer financial protection laws are administered by the CFPB, which supervises the bank. Among other things, the CFPB has promulgated many mortgage-related rules, including rules related to the ability to repay and qualified mortgage standards, mortgage servicing standards, loan originator compensation standards, high-cost mortgage requirements, Home Mortgage Disclosure Act requirements and appraisal and escrow standards for higher priced mortgages. The mortgage-related final rules issued by the CFPB have materially restructured the origination, servicing and securitization of residential mortgages in the United States, and have imposed significant compliance obligations and costs on mortgage lenders, including the bank. The Bank Secrecy Act, the USA PATRIOT Act of 2001 and other federal laws and regulations require financial institutions, among other things, to institute and maintain an effective anti-money laundering (AML) program. Under these laws and regulations, the bank is required to take steps to prevent the use of the bank to facilitate the flow of illegal or illicit money, to report large currency transactions and to file suspicious activity reports. In addition, the bank is required to develop and implement a comprehensive AML compliance program, as well as have in place appropriate know your customer policies and procedures. The company has a correspondent relationship with the Federal Home Loan Bank (FHLB) of Atlanta, which is one of 12 regional FHLBs that administer the home financing credit function of banking institutions. Each FHLB is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLB system and makes advances to members in accordance with policies and procedures established by the Board of Directors of the FHLB and subject to the oversight of the Federal Housing Finance Agency. All advances from an FHLB are required to be fully secured by sufficient collateral as determined by the FHLB. The FHLB of Atlanta offers certain services to the company, such as processing checks and other items, buying and selling federal funds, handling money transfers and exchanges, shipping coin and currency, providing security and safekeeping of funds or other valuable items, and furnishing limited management information and advice. As compensation for these services, the company maintains certain balances with the FHLB of Atlanta in interest-bearing accounts. History Ameris Bancorp was founded in 1971. The company was incorporated in 1980 as a Georgia corporation.