Ameris Bancorp (ABCB) 29 Jan 212020 Q4 Earnings call transcript

Good morning, and welcome to the Ameris Bank Q4 Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Nicole Stokes, would like to to over conference the Chief turn I Financial Officer. Please go ahead.

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

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

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

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

like by all this teammates, and it’s for unprecedented in during provided commitment, what our year of good all Nicole, their Ameris us they demonstrated and certainly begin our loyalty a been. you, the lesson thanking I'd for and of all morning and humility great And all my their year. customers stakeholders to a flexibility XXXX everyone. continued of humanity, Thank to

we on the a not update I before the team spend But quickly opportunities year, about going minutes. is remained results. the share our and get focused into to few what financials because anticipated, And the want to I'm you we discussing and going did While in have disciplined time XXXX. XXXX adapted they and Nicole highlights and was had there, on plan some proud of a we quarter and then the few detailed

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

ratio given right increased that XX.XX%, guidance within of of the we is in our XX% XX% in guidelines As to expected, slightly which terms efficiency earlier the have our in year. terms to

per the XXXX, of This For the ROA equity average million share results. of tangible XX.XX. is on and XXX up an which XXXX or diluted basis, we year-to-date adjusted XX% earned $XXX.X over year-to-date a represents the year $X.XX on return

Our year over efficiency year. year this ratio last improved the to XX.XX% from XX.XX% during

that's year the X.X% with and digits We growth. year with the happened. terms in throughout loan we off fourth balance growth that I we've would closer quarter sheet of run anticipated that said growth exactly a that's of full last our what loan year loan XXXX, our ended some things, the and as the On bring in said PPP estimates, quarter of original mid-single to seasonal solid the side exclusive

are non-interest $XX XX% with of see our total deposits billion bearing to for almost growth deposit now deposits total over now accounting continue We deposits. strong and

preservation in capital we capital, tangible for value. remain growth and TCE on book and focused As

year-to-day very During XX% X% the meaningful. period, is grew quarter, over fourth over the tangible book and we value by for which

nor right any repurchase to if having presents do for year. October did near the don't good XX any of anticipate we option we As have buying future buy last the like a repurchase We do fourth in quarter. we opportunity this But in that’s quarter, program the itself. share reported place in the purchases

anticipate As at reduction time. dividend, today for this the we remain not and our dividends where any comfortable are do

our take credit, is Credit did and today Edwards, want with on credit. after Moving Officer highlights a I he's prepared questions few available any Chief to terms But hit us in to Jon remarks. our of to

any deterioration approximately $XX.X as as During the hotel lifting of exposure, the reserve, which remaining we far a opportunistically we selectively reduced $XX result greatly place a credits. believe been to we has the heavy and quarter, further of barring our continue and as million And fourth in of all downturn net loans specific hospitality charge-off. sold that, million economic have completed, taken and incurred

X.XX% So ratio, to net our excluding of coverage this allowance loans. brings commitments, PPP unfunded our

ratio Our in basis Exclusive charge-off sale, ratio annualized net compared XX points XX basis total annualized net loans to XXXX. of basis loans. points is hotel total of XX year-to-date charge-off the the of points was loan

end the our PPP. A of the and that were million which at deferral channels or were million. quick being anticipate unfortunately, remain swings quarter can percentage on continuing to don't having the opened shopping quarter to serve really about that basis XX to the on quarter the at pick XX% second those on third continues net basis are mostly of XX in traffic encouraging that a drive-throughs that the and decrease of end update assets And cases, the loans end retail approximately now of I last that on job placed in day, of extremely careful. need and rise the COVID year be restaurants, in to of start you until of able customers we been because points we've businesses CARES up March had last and said and through said, be total to or in have again compared Our to XXXX. positive down and open A included the the on loans done Act X.X% call reported cases. lobbies the the XX $XX we quarter, I've third earlier diligent lobbies back in is minimal every to we them half certainly due the by with in still open; total to closed pleased But PPP. non-accrual note the all points so seeing non-performing branches as wonderful some decrease of are as loans year up finally, hotel But digital But here we the appointment. see. decreased quick of $X tell a in the the the on we’ve many from total And in disruption. with deferral loans referenced Southeast, sale. million assets update approximately that's and we remain non-accrual in before mortgage programs, to the I that branch new the as OREO of the loans,

the started decreased During to million. loans by our XXX quarter, fourth we and about see forgiveness PPP

of On so for approximately received our PPP, far open and an we've just portal the about $XXX as update. is new round million, X,XXX applications

applicants. in XX% who draw of is requests applications from XX% new of participants also were customers that first and the So second round from are approximately

loan round our and of $XX,XXX request first obviously average expected amounts. the for the the loan and has for around as the second request, in is smaller So been terms size first this $XXX,XXX request than

always and got in are as reflect be I'd why our company fortunate challenges the proud and talents is of an our optimism throughout allows it importantly, growth for and first some you highest certainly and markets we XXXX, not faced me And, anticipated, We've to the the spent you is typical is but and funding look concerned. delivered on safely justified. and really Board securely us to we in we our too, Ameris challenges our grow and because and adapt briefly financial strategies virtual And makes in And year success that program goals. a overcome to Southeast. And all and good to consider strength quarter, time as I the energizing core our markets results. our Now, balance mentioned to rural our talent low was what and we our plans. continue and importantly the to future, of of and most we allowed about this on process as on improvise but is in like were our more this then markets far that's incredible When able top earlier, and has talk this it we the at really kind as time, retreat us got cost had, actually teammates. successfully of environment the deposit the us more

of XXXX technology focused we're our loan are Nicole of remain shareholder the resources, a results. drive over deposit and I'll on the you look to there and to quality, to continue strategies we lot operating discuss be to our and turn core these efficiencies are continue able the fund needs from measures to from asset imminent preservation, cost already So But saving see growth, we we it the expenses. will investments value. capital will and which that financial for reaping made in benefits of reallocation and and stop to

Thank Palmer. you, Great.

per impairment, we asset expenses, certain we're mentioned, fourth or quarter, diluted we sale earned fees legal XX% diluted per These represent income $X.XX of over XXXX earnings. servicing increase basis, share. reporting of excluding On adjusted fourth things and or a million a As that's million on share COVID-XX premises. for like gain of results financial net the $X.XX XX.X the and bank an quarter XXX

year. fourth was quarter was the from it last the That but in was ROA last decrease $X.XX adjusted X.XX fourth increase the reported Our quarter, from quarter X.XX. an a

was reported equity of quarter, an Our XXXX. adjusted the XX.XX tangible the increase in compared on quarter last from again, XX.XX return XX.XX this fourth common to quarter

per year. $X.XX we're $XXX recording full to of share. income XXX.X million net or diluted basis, earned XXXX, adjusted we the diluted On and $X.XX For compared That year per XXX.X or an last $X.XX million share. million

to that last XX.XX year year last compared to X.XX our and year. ROA compared to So to full year, full our X.XX brings ROTCE XX.XX

stated, focus on previously we've tangible growth. we’ve capital book our and emphasized As value

to the tangible XX.XX an the last $X.XX we for increase had increase year And at tangible book about the book we quarter, end year, XX.XX full $X.XX in from of year. saw this XX.XX. quarter For value in value, XX% to

ratio our that our tangible And as affect increased PPP this the ratio. you basis asset growth quarter. loans to points remember, XX equity addition, common X.XX In negatively from

XX basis This quarter, a that about point was impact.

target at excluding So loans of total X.XX ratio close TCE have the would from approximately to X%. end is stated our been the year, very which our of PPP those our assets,

going compression to we expected Talking margin level. that low be capital capitalized forward. with our mid margin, continue comfortable really we about feel guided well single We to and we previously digit

stable a That So the were in this was the many with what our points by moving quarter. third consistent while spread were extremely in you from actually that bankers quarter. we we X lot fourth improved margin pleased quarter the with and quarter. of margin parts there and show And work effort our in this hard of basis X.XX had

the also excess saw compression $X.X interest the on compression that points. of balance X approximately in on million the And hotel reversed note from sold the income on side, we So were liquidity sale. sheet we of basis loans then

stable netted However, there those really lot due to early negative are And of the out fees the by to accelerated but impacts those kind again, of parts, moving forgiveness. of PPP were highlights that accretion offset a three that margin. were the

the interest funding fourth the bearing basis points, while earning points, basis deposit XX hence yield improvement declined points, During assets basis by decreased X our and total by cost decreased X spread. our by quarter, in our on

slightly declined X.XX. see side, deposit the on bearing to yield in production bank core to success deposits. we But non-interest continue Our growing

XXX grew million in deposits bearing. XX% over that of total Our non-interest was and

deposits about return the bearing liquidity the in horizon. and believe the this closer We of XX.X% this year. excess last XX% this to is non-interest now represent time Our total market, affected to can by in our do compared believe XX.XX% long-term we that's and

and got. enhancements diligent improvements these technology we deposits remain through service, However, do that customer in superior product we've protecting

the declined X.XX cut points even X.XX, to with from for year-to-date, large basis So basis point March. the our in XXX XX Fed margin

by funding our decreased qualitative X.X related decreased I key we while added our deposit commercial reversed And quick felt to assets real Talking That provision basis unemployment factors we quarter, funding costs to primarily increased XX expense. fourth our portfolios. think forecasts, costs we in that our provisions, particularly previously was improvement construction recorded were the million to cut was points. the earning points, our to and during of that levels by or of that economic estate and We decrease cut offset of it's GDP. look at and about costs costs. on yield by basis XX

million that year. we year, XX full just million the of For compared recorded last and credit losses to provision was $XXX for

our Our million last ending end commitment year. and million allowance compared end of XX total production strong for fourth mortgage just decrease Non-interest loan of at X.X and loss was the and anticipate retail last income reserve, in quarter from at for more the at million gain division due XX.X levels third XXX million last quarter. with Net of Including to increased the in last compared the XX range compared was continued million last fourth XX to quarter, unfunded year. X% the million billion remained to allowance in quarter mortgage XXX XXX sale elevated in XX X.XX% but XXX.X gain million the at was quarter million the division. forward. Mortgage million in over We back normal on the was X%, quarter the year. production XX.X to going right income on that to sale up September

Expenses about in strong million levels prepared. million. to at decreased to XXX.X to the this while in X.X functions separately. to far, million so XXXX I quarter. administrative pipelines increased bank expenses do last and this this retail division return And point from this expense we're two remain strong mortgage normal production quarter core we and X.X in talk continued XXX want that those some we see could quarter year, the to decline million, While the realize and Total non-interest continue

with core Ameris early the our Bank attributable to a to expense the in was is of a $XXX,XXX down. and write So things. three related million newly OREO then termination and donation Foundation, increase administrative agreements FDIC, the bank we functions really to There $XXX,XXX loss-share $X made formed of the that

going terminate the recovery a usual, we although impact we as everybody will economic as efficiency quarter expense enhance despite first the moving our bank. So now functional as that forward. the prudently mortgage segment, want from to efficiencies expense We exiting -- do as increases to and back To there's agreements, accruals decreases overall them perspective to anticipate I always in with we And we're call our made continually production this the and the here. exam we do administrative operational going taxes. as normal variable pleased loss-share these in believe that the decreases remind minimal both forward, costs of ratio, non-interest anticipate on well progress sharing to that our level, such efficiency payroll cyclical back ratio we time and results quarter core

was quarter the our and ratio this of to Our gain efficiency ratio The of year. not improved year, quarters. adjusted the XX in future fourth impacted And the full We quarters, the mortgage the term. and the do be last quarter mortgage believe range long efficiency during to to will as from efficiency third for sustainable revenue in XX.XX XX.XX, anticipate the XX second XX.XX ratio year. to efficiency significantly we XX.XX down last mortgage level additional stabilize this and division compared revenue ratio in

to year. XX.X assets On that the quarter sheet total billion XX.X we side, billion a is ended excited with and billion billion and quarter we're balance XX the at XX.X over this compared say of to focus, last last really

you Palmer that give And the mentioned third -- were anticipating remember that. details quarter, as off. experience I did we want cyclical So, said sheet, run We we that. on on a to to little some a balance the if

down and by break a during I But net growth expected million, really XXX decreased had we the runs quarter. quarter. to offset the just the XXX explain that bank was that for XXX of or core of want decreases that total X.X% our million, and million So over in organic

that decreases and not briefly understand to was of us. -- of want it off talk surprise decreases, really I were those million intentional [ph] Let's everybody didn't lot rattle do about that but have known to a not to a numbers, $XXX

reduction, runoff, million in continued as homebuilder warehouse runoff about $XXX ag $XX million typical $XX $XX the event well cyclical decreases included hotel line million the the additional quarter a is mortgage note indirect the sale, strategic those million million of line, the $XXX in million of some lines an PPP in in $XX cyclical So as us. on that for fourth

held In for consumer sale transferred addition, of that we we to had the $XXX million category. loans

million with. we which was again the that of million leaves you loan pleased excluding us were So that, which for growth, with that take of quarter, XXX X.X% $XXX runoff, to million organic again, $XXX

For was That or included year, growth loan XX%. PPP. billion the full our net X.X

exclude which loan line was the PPP you million, loan our in was with expectations activity, growth XXX digit If net or growth. mid-single of X.X%,

and the growth the Additional found in loan investor be loan the information portfolio on can presentation.

are much and environment So margin rate to wrap we managing low as up, possible. through protecting this our as

We to group. and quarter. strong technology the the pay watching and first reallocation back the new that, resources, to going pipelines to as for we remain committed see ways into Grant expenses I'll the always, With to call capital. questions division any from non-interest preserving We, through finding mortgage strong and from income continue turn for over are remain are

question-and-answer [Operator will the Instructions]. now begin session. We

ahead. today will Whitman first with Piper Please come question Our Casey from Sandler. go

morning. Good Hi.

morning, Casey. Good

morning, Good Casey.

put can you've and sort about the the we you growth how range maybe the with guys growth think the some Maybe of about all indirect just us I'll should XXXX? you where takes thoughts hires just auto made, give up Southeast the call Given up thinking by with. around in continuing opening start loan left XX? all and you you're still puts running Can but that just off how in off, of

feel the look still really at you certainly in very which look the remains the at that. those C&I Palmer. where XX pipelines. we're seeing take it's whether And on which looking I’m in coming new there encouraging production it sustainability we've or we've But by headwinds got than of I in future whether through volume that, But got, have quarter front, when I'll pipelines, economy what now, like, We a terms commercial is Casey. we be the traditionally encouraged pullback. the it more mortgage first indicative of quarter, we've pipeline new Yes, be and This a what into is initiatives, when little got as is paydowns. looks pipelines the what seasonal incredible and the or lenders, of

I just think And of that confident still comments to very mortgage first us. the we're in of feel deliver for as we were the And you too, on year. mentioned above side. of last applications locks, I January if and result in benefit November, markets December. in we're it's double to our in look growth alone, of half in obviously ability strong continue being were in. going to think be we have is a positioned the my in that, well a we like And year it's where And where we still at the I almost

So solid see activity specifically I lot robust. to refi out we'll more to it's And rates a opportunity go But pretty should pertains the mortgage. terms Obviously, activity of slow up. it the think continues as purchase as of starting there activity. in be

we one how an of time thinking on maybe update, give It's the year this just us some can come And LION. ask M&A Palmer, you you're since out as pandemic? Okay, been it. got more, about

M&A? we for appetite additional think this how your should at point So, about

in and growth discipline of we M&A. the going there's do saying at allowed company, being focus and see and where foremost is And have been think of and without earnings with We've of I'll Well, it's and really I where the on very optimistic. all consistent always will more of that in as some organic you opportunities first over headed ability this the we've tier ease we that to headed for do power That proven our themselves said, generate terms here the some in our along our the months. noise to time XX terms technology. present little I in have top earnings, which we're in had of the very earnings to market over period strong last to tell us of terms think we're opportunities be remain the organization may and economy

M&A able advantage, to as take And for look industry. opportunity will in want do be necessary, target. the be position we to and for robust for we the if a potential nimble be what into appropriate think I deemed offense out of XXXX So if a is we remain and

let call. Makes else someone on. sense. Thanks the jump for I’ll

Thank you.

come next Our Gailey with Please Brady from ahead. question go will KBW.

Hi. Thank you. Good morning, guys.

Brady. morning, Good

Brady. morning, Good

did you in look mortgage just amazing. it's last if at year, So Ameris what

repeatable the year. on out banking unlikely fees. $XXX year? how could back down. could gain you got decline those coming magnitude What down idea and this volumes be? of If MSR million sale this there’s going Any impairments, much We've mortgage that's It's fees the

I different Well, going to down each very activity which MBA that estimates. the I the than you'll operation we operation the mortgage will in activity, we've to think you you relative drill at the the you specific a I same is year is, actually and drop refi thing forward, if terms our you'll peers, purchase do when find I to obviously be I think to of would the into reflected is tell think most individual of true in success But because this increase as and the find estimates, had that's what same that's bank. our be look look off. numbers is those

itself on people It’s we've and purchase relationships most activity and going shop we've hear got with many that's to years. you due part drop the the to over XX%, prided established refi builders saying it's well, I has mainly refi activity. activity. our for will you never all tell realtors when So

some falling be locked ones I relationships equally on some probably more that volume. out, you'll and So is you incremental we'll and the January, look of strong to the and find what gorged the as at of said, pipeline in detriment saw in third able of we're what when lot others seeing that as the have some pipeline I of shops up those it's we for what refi up of activity end fourth a the think our now will importantly quarter. And pick as to

can year. story activity. housing we the for with going our be and of So vibrant. mortgage than from half increase. mortgage different side is to at a construction capitalize our that. mortgage on the less on others, both to We rates many market first see certainly, I shops activity operate But makes year like predict we But the you back will when I look to the of market ponderous side, we markets the impactful others. what will the the the that and tell And think what our first look growth in like hard this is half on I being think extremely all-in-all, you to really continue But the said, just see pull refi as the of will it materiality after standpoint, in it's the a

his So and quarter. our can team and Odom maintaining the I way job this operation you people the a see I set see mortgage Robert that up. margin. do are will ours of excellent -- think anticipating feel be did happening an this with it's of margin lot not cliff not and the I that And dive

In it fact, improved.

a fire where that was are as differentiator is are to forward efficiencies between be too expense. a go people going continue to a hose. the to through down, of what's the have hope going that a generate know now, your that's ability that's our shops. I think I as disparity question, we answer garnered you're them other gives longwinded robotics I to mortgage that's and with color. Does but Because answer, see little with slows through So automation, a mortgage you and really that we because shops less kudos volume to that But expenses right the drinking inflated lot Brady? it big

the wanted you and sale impact to Palmer. off, loans. of had great, Yes. like the a about financial ask charged hotel It No, of built not there's the reserves this it reserve already the took I that's next lines. so much kind looks of versus those against allocated

of So loan still XX% any loss get that that hotel you about COVID thinking you sales areas? an lending on of Do but are impacted I the it, was like those other kind loans. think that content other real? doing it's And any for

operators non-performing maintenance lot And 'XX, operating. and back then to The And deferred our you the take look then I'll There's how and the question it, And there. themselves, got still of it typical -- real, for hotels in 'XX a of in and go operated starters. wouldn't to whole selectively to at was Yes, hotels, do struggling. done are have sector Today, back the open a many flag, you you hotel see didn't mind if hotels NSA do. some loans were through it identify we on a keep your to look And hotel that. and on have very portfolio at and did know, top parts with the you to not continuing good process, last you've these, lived one, they're got you and And where way foreclose we past taxes God answer were are able phone of to we into two and the through it, Number that stressed. the be you on property well going is a we also just were the different it looked upside. when see got were we due. as to forbid foreclosure still that call from and that lot folks downturn we we that account the think when And lot that performed. sector of factors, which everything the struggling. through the

bring got current. You to it

back in associated at If get You've lost of for The called been would me extremely at on those asset cost that. stressed, I the capital the you feel you we and the we losses and operator it's of look And And we that on cost 'XX look because back could 'XX, the hotel, the any to that anticipate dollar told you then, like gone dark. more you timeframe, a incurred were 'XX, that that tell do today, sales. $X.XX I that 'XX carry at the probably look $X.XX when with particular And of the type. were flag, we has have portfolio all by stressed, jump felt not over it. to then.

it's reopening, slow I dramatically a a future. gradual we this that of because others general, find in the near to ability economy the be fair of think them identify price. capitalize into it's not result just future, was hotels as a that And more a we an as will to be we out these following the look distressed a opportunity like price And picking decline going on. kind are was of these I have that -- I sophisticated sector operators clearly as up feel to it And buy the for think the in a there see before be some it much right will do of pay there out there in and now, you'll that, initially. instead suit, as

it. did we So

sense. on space, you what of of kind the banking? in hired people about side. expense makes And can expense for know we just just in that a do maybe XXXX? you lot of I Palmer, Okay, talented core me that Then know, the expect growth. in mortgage I then that of growth expenses depend outside continue mortgage XXXX. sort Will on finally of at kind talk will looking what But

to were we Well, things lenders. front, existing one making more seven to of on talent did job the that and of weight. pulling Matt also the going or team hire But eight have look C&I probably is C&I that about its specific an do the last [ph] is excellent sure we year his

future. us in we'll expense to C&I the you overhead were that overhead those, And to And, into But so Nicole, do some continue seven to be more near lenders see new process. we of and comment to expenses. able eight of can that reallocate I with additional hire another any looking the efficient on lenders

we very quarter. we then very, didn't of Sure. kind have probably non-interest last to that again, three we made the expense. in and branches those decision additional of a we that events quarter, are the fourth exit donation made make the decision we Brady, in we And year. confident closed – to fourth And

So, everything, market. we possible, as especially the core flat expenses in and are to potential trying the really keep margin with squeeze uncertainty just as bank

reinvest, finding resources. way of to we to we pay it spend that reallocation So planning a need do need those very for cognizant through money a to we places of internally for and may are

are following banking core well. same like We mortgage feel pull that still strategy variable origination And back, banking as back side of the we pull those bank. the mortgage costs on then will

all the Thanks Great. color, right. for All guys.

you. Thank

David The Please next question comes Feaster from go James. with ahead. Raymond

everybody. Hi. Good morning,

Good morning.

I just wanted to start on production.

Just curious, couple of nice hires a a pool had announced guys new ago. you months

ramp growth, of up, guess kind seeing they production curious of in as the just of pulse Just accelerate throughout opportunities continue still? then And point? broadly? the hiring how to market expect then the to you Are at year? kind more this would guys new you they're And hopefully to accelerate any I contributing much

you particular like a asset more the C&I definition that right third line to new of keep the at specifically, And when pipeline class, the it, the of that kind that specific I business core when that Yes, with your a is look over C&I billion, bank, we to answer now, $X longer for you And at or you initiative at which build. is have by typically lenders. XX everyone look our about just would tell question absolutely. to of look we'd that

where immediate longer, get loan CRE growth. a So take it you does unlike

them a ramp individuals getting and period getting up to board, up on move getting there So is and over running. business, them

So the another and out of have the have coming it opportunities continue because Carolinas for we've the been out most quite breakdown the Florida. XX% Florida the of Carolinas think is frankly growth, But of what a out I as you still pleased. to lot that seen part. Atlanta of you we see of coming at look come and that and coming about that XX% XX% is we're hiring pipeline, we'll another recent seeing out then got very of of When of

when probably to an again, that then we'll need And when seven areas to kind look going lenders we to with is will hire, that. we and proportionately those the at encouraged So eight those three you up so see to I you'll see. Atlanta, states. be what continue see we're advocate. be grow adding new what addition you're through with those patient excited you think But by in But we're that, to catch look of or

should for If pause – they're These you on you established start create it there, market erratic focused growth companies. relationships, not But you. transactions. middle are seeing probably

your encouraged that ramping so and a And that the we point, by that time made the so about investment does up seen the glad for And year. opens I I'm investment opportunity. to when will up see to last we bit, we've earlier but we're think economy take productivity very production it what of Because accelerate this I'm little far. it start encouraged

you then do team hires And and just to Okay. using and some did -- again, through new expansion geographic job great lift-outs new branching markets. some guys a

of M&A? do what commentary, your and you're Just kind the that to M&A and metrics, in? it -- attracted expansion? more you'd still on are interested Is be versus it to you hires interested? in with you market attractive up remind interested some you doing us just if some even of de could sizes curious, Is some potential And where priority following novo that geographic financial to deals

it's kind dual Yes, a approach. of

we growth the some look with the United you If top of the in standpoint already Ameris, markets are organic from operating it States. in at

focus meaningful need and existing out there our I terms loan Georgia of at look are. Alabama that getting the Florida you market types us Then at of and of at got in production is I in, look our So our beyond loans footprint, branching you we're to a offices tell and of there's could way, and look expansion you of meaningful of see and capturing that you you look We office other and there. expanding opportunity at look do plenty there a if Carolinas will when to additional in mid-Atlantic. in focus we parts footprint. you But and now, share. what right core branch where

two have that second through we where phase strategy you entry looking the of the markets. the would But of a market would M&A kind so be be of secondary at would acquisition secondary, And result an LPOs. a that's primarily some be And would where I an say perhaps. as tell the the I into in that's of this you of order at new would point. priorities Then

size be a Okay. you what interested And would for range transaction of in? kind

that anything as said along and billion. than probably nothing consistent, all been -- very Well, we've $X smaller

just you some income fees? a are in then front, we huge obviously Okay. the of cyclicality I guess, do The And the And on waived fee forward? going where of has these curious about how just mortgage the counter process help. think of been reinstating

Just lines premium scalability thoughts curious into in of lines? that just anything coming some the lines? like your the interested there fee income Are even expanding how finance new think other on or the about in and you of other you'd expanding be

show after a potential lot do steady this that, very a opportunities risk agencies a investment homerun And where I'm And us as for think has because Yes. of I for the reading smaller in as as that's focused some It and The income where there's banking there, fee acquisition forward Premium back that's that accounts, primarily be to increase an you that seeing you management, From up. there's and business. I of It's is economy of a it pull is core the We across and to I be stable, go increasing wealth to it's back and major income. think a we've That lot more reading terms experienced think year. there. obviously opportunities which I fees service board, may grow. focus on we we're that upon along there of that But it that very fees. takes the service risk. too economy see we investment opens banks the lot look been when right, source bank you're And that low if continue lines additional of will all that fee And a back, area just been you'll think will go XXXX. an a to area develop But and private income. we're reports includes for us got look opens to and income a the an credit of an to lot related the on of the continue the good go fee finance got saw up. and income. expand group, that opportunity start which fee time. we I sensitive even forward trusts to opportunity for type at will

Okay, that's everybody. Thanks, helpful.

Jennifer will question next ahead. Please Truist Demba The from with Securities. go come

Thanks.

but about think you Palmer seem be when have well the to rationalization you right I of think branch questions think operating covered, given with closed? reduction been my most do you how about lobbies now opportunities, expense pretty

forced frankly industry, we an think the all And whole back and a are. I Yes, to banks operation, step And change. that I to moving. at slow benefited is look I are from think, adapt herd retail it's think we've traditionally operation. And quite And very delivery more the as herd move and being mentality. and of

another account were digital -- transactions to come the combine technology the help here transactions. customers with they down is will company, numbers, to to trying to about and come experience, a that two, But or is make are yesterday the or that opening drafters. year all to the that that's meeting and Board going you're had that open we've sufficiently it's we've been what all make or that is, process branch divert and branch. into I even in and our way think traffic servicing Teller other that we're teller are still new them appealing through that reluctant compound and before. we draft branching pretty have from that heavily of a because in lot, line, next these need or what that walking rules to. about what terms a closures a that base. is tells our if effective sure proactive going been look a the Because folks And as I the changes. you as where we're some we when you a way to lot just the to over you even equally investing and to in in But of user what found And customer think that's of at

you to within utilized branches will grown for we've they're a for forgiveness now we've and will I many the like open, quickly those other continue you center, got call as that. keep And find in same branch right think branches the folks, number but remain our the look us dedicated closed. those then and to talent program lobbies so be drafters that to will at is will areas, what be dedicated of the PPP talent to allow

elsewhere. So without I be utilized to places at talent that having other lot hire think of can talent a

the footprint into network efficient than to whole the just and look for into into through it. rather at of an more same that's I our use. branching earlier more a efficient touched -- time, can believer and -- and think more efficiencies a a more having branch think a to mortgage a those for turn through we're costs additional on We've efficiencies we be in absorb look you allow destination processes but adding kind management if much you're lot center or taking of much can branches, as than and approach But I I'm experience rather growing the need And transaction. So overhead. it wealth still just and

you. Thank

question from will go Kevin with Davidson. come D.A. next Please ahead. The Fitzsimmons

Hi. Good morning, everyone.

morning. Good

guidance better margin that mid to low digit of single the prior did than Nicole, I understand that compression.

can we if wondering Just forward and look pivot now.

outlook core margin that is and different well. accretion just about X And I from the fee the here? talking lot PPP X of that's I'm there's assuming as a factors. you're still So accretion know

then about I to what touch but you're that's thinking might So maybe in on get contribution? of one And fees is tough quarters? the of on about you I what if -- you predict, it this quarter. start fees know in a where up terms fees you think mostly thinking just could much how there fees remaining? next have you what accretion you're it round assume or Thanks. be. two PPTP And can the that to reasonable thing if know taken came the kind in recognized core margin,

Sure.

year answer the I’ll I that is one right years original, So last as one first, said question remaining got that a answer first modeling, because think using if going of our $XX one. the of is contractual maturity about were into all of million the round that’s horizon. We’ve PPP and the actually we demand expected, the is internal lead we kind $XX a okay. with two million are to of -- we that for the amortizing we We had while

So second really quarter. end be that kind of would the of the

the or of XX of is the a be maybe in, So two that will very but that million million. XX I in think majority logical next a some to out, assume that quarters. extend that come There will that and half most the assumption to two

quarter. fourth forward margin bit what coming Kind a and little there's what the and things the to it. knowing So that already moving several to affect is affect on going has we that, that in margin do started that have that, protect it are helps forward, going to in of

costs. loan and So liquidity, deposit forgiveness PPP growth,

just about in liquidity. talk the there. potential forgiveness and growth, we we'll the Loan with So connection that PPP excess about talked

of sheet the of year. So billion end the about at end have liquidity always of the the $X.X year. at we excess And have the excess balance liquidity on we

deposits cyclical have We that come in.

put of run had XXX at of that looking run how we we cyclical have to we do We've $X.X I'm that million do So if in about XXX January. use how how off off So liquidity billion, about already or -- use? deposits. of do that million I

that the first kind again, come goes and quarter. our end -- a in in XXX lot of another Then that year funds in the public the We million at back expect have first we the out quarter. right of we've estimating in of -- at XXX to XXX kind And we're comes XXX million our in premium so bank about then are and got is PPP XXX of finance. guiding identified that we for through assuming the million. round two, That's expectation

us deposit opportunities that some additional side, liquidity. from think And either rate about side. we runoff the reductions that excess million we and on So is where really for what call or deposit some have XXX is was on the strategic leaves runoff it I'd

we terms Looking before have there. on some opportunity our CD still giving guidance forward or in pricing, of

first that quarter’s was We have points. XXX. currently about production Last They're re-priced $XXX million of basis in XX the at CDs quarter. about

that to points, there. we've So if an we basis keep improvement got production XX can our

Second million, quarter, XX that's about X.X basis we've another points. we XXX had in million got And the another quarter. then third

have offensive there just deposit have of -- of the the narrow So are that still plays market we norm. now point side specific some do some on outside and some at accounts we to are looking the we money

detail, quarter able as again. that where it long we in to execution but of that's costs, I I about was question. margin deposit the answer that thinking be That are they think point and anticipate low how the liquidity be. our compression your hope we answers board are coming in first as we're X But Depending out. deploy to and rates the that that X to on basis to upon range. a beat kind hope that I can

great. it to or And down fees, X just X clarify, does that includes PPP not? so that to that’s No,

It does.

much if first more And the in of maybe then could in But it -- comes, us of get we're X vary less in, If so that it that quarter, maybe X. to versus comes the X. quarter depending upon in that down. how could hit the of we second comes the

it. Got

Okay, you very Thank very helpful. much.

follow-up portfolio on is million XXX transferred portfolio, that’s that to and quick the why help there? the consumer one over What shifted was question Just sale. it

Sure.

of party. of several getting is ancillary And business. line that that an So ago funding kind product that out were we through a years of third we bought

bids And that. gotten so on we have

they the decision first selling held intentional to are that. That an anticipate for was We quarter. so that sell in And for sale. essentially us

Great.

Okay. Thank you very much.

Kevin. you, Thank

The next question Preston Please will Inc. ahead. come go from Brody Stephens with

morning, Good Hi. everyone.

morning. Good

ask more to specifically just wanted just I expenses. on Nicole

core this You running all job core sort growth flat good have excluding the Foundation quarter, the of termination, CRE and on But contribution is FDIC bank, the sort core expenses. the the was a growing C&I pretty done expense strong. pretty and of

moving of investments that And was that growth all so hires trajectory wondering if the but following given necessarily just done and could I growing the speak aren't offset the of bank, some you're core specific made, core because suit? given expenses forward, you've the new the just you've help to you to things sort

Yes.

done X. So additional closed the we've on branch branches things we One, optimization, there. several did October so we

We in that have has one January. far branch so closed additional

things. these kind that's when branch to said optimization other So the We were to for we some going we resources certainly those use that, of and we of update. did that pay

in they hires, third new kind the the came in really of quarter. of All

we year a we probably And And did implemented what so AI. We to and could and fourth quarter, some those quarter side. robotics happen. some our better about using in the run mortgage on expenses that because knowing and We've of started there, first also fourth innovation that we things decision are side some technology have in was last rate. made the quarter started not

only ratio And technology. that the efficiency an production, drive had efficiency also they that mortgage of improving have the but certainly did they division. in increased because helped the so Not

done we're opened through say, So some going areas you bank. cost this the employees on to I we started that of also done in -- and to kind help history and there. to of has they initiatives think company us and we've other help some benefit deploy at point And just then some, their it where we up every doing

And efficiency sense, our your question. we said the was remember be in scared of to and We’re we'll we've XXs. going when that find to raise get doing do going history And way ratio there's the Or asking better hand, were people things had why. to savings. out if we're a to XXs, that in raise things, to when make then get you're if I XXs. a don't don't said when we we cost and

and really, figure then we're the money, now in that out the at of if lot if our well, culture. it's And to have for become really compression that return the is also to a part The just definitely to to we market, going deciding had you we've use way dollar -- So are do is it and pay get where almost It's time uncertainty it's I a let's kind need we're of word spend just look investment spending. spend And culture looking the it. the we and about discipline. think and to message where of at a best we dollar. where on as going on that margin

companies and through with do ever I that never the of looking itself, some look do. Nicole’s move to But it The maintaining of to of there. return? And that's obviously to get really we with material we of that go company. of held all meaningful for we mentioned, to in dissect to that's the challenges I’ll make eliminate the there. we've to it's periodically think business. through and it's where we're other parts look relative of go and what at a it, sector a scale have continuously she through also company terms capital, sale the on and Look is resources in She's return portfolio. associated a not as going higher materiality what that in gone the the inefficiencies each are you for reinvestment to look that's never do going that can it, lines your and need needle, at at of invested be Brody, you Could what portfolio on of portfolio continue fine you're can providing echo size at right comments doing a that but we’re one

the And year and go activity think continued kind from like a more kind we decision we find of up each find more I that's this and activity how So company. in of the you'll came with that and through Ameris on the remainder as on kind kind up hotels a how conservation come with company held through for the of the mentality mortgage. as of revise we see that and sale. for had go you'll a throughout we year. the for And That's

Okay. Thank you.

banking make that continue single as just to tweaks, the be it to here, assuming the so core safe just And assume in some mid longer that you'll from think kind then would of digit trajectory? expense, growth expense rate growth about given I core from a here

low very single Yes, digits.

just that. for you then on guess Thank And last Okay. one expenses. I one

mortgage XQ and the levels kind into it XQ 'XX, to 'XX XQ that the be go down Assuming get production 'XX, at that half 'XX well? expenses, 'XX of towards XQ we would that 'XX in back would back some safe of here back point head to more towards and assume levels as

XQ and of XQ Fidelity little if better just were last in a Yes. to back of middle still bit year. It Ameris think be the the We even you could and integration. based

in have So and we had systems we dual some didn't robotics still also place. the

So tremendous improving their a job efficiency they've done ratios.

where also So variable costs, see some expect that's those you'll we efficiency. that of but then definitely

running the I you sorry I Okay, after And that was it? X% of it because the had missed I Just look I LION great. it, it to And of quarter. but is if ramp at securities closed. a deal in to what transitory or wanted at think do sort plan then, you I'm book, at it's big this some up cash when do know if with X%. wasn't,

the envision book in all I this ask, building wanted near you to so do term? at And

great a point. That's

our anticipate back another We've also will had come fourth $XXX first we in historical And and We in anticipate run out that January. go we quarter. million have of do some out just in basically of in we excess deposits just our municipalities already off liquidity. come and XXX through that quarter run had had So about deposits of that that million. XXX million in the the about Ameris, excess liquidity through that excess ag some we typically

really either our I I and about million too About excess that million those We've liquidity. the XXX X.X off. when million excess about would about see XXX about to million where deposit now of think accounts. for XXX sure run fits excess funding $XXX of an we then non-core So we be almost need about we opportunities run finance preferred will looking to of all through call about funding, some to our liquidity, the but But of in at earmarked deposits it credit the round, criteria. if message bank run PPP bank keep for strategic premium have, our new just -- of methodology, certain off additional that growth. deposits. but off it have about it’s we I'm that what core have funding can we some to that make And then growth our from be loan also million raises Again, Jon obviously got XX% safe. within

just we've or that could about run just XXX rate. the that potentially about reduce out everything we run million off we've else got can we So

understood. Okay,

build in portfolio sound at So feel like securities to need a doesn't it all. the you

Not necessarily right now.

Okay.

this last now. environment would point guess. [indiscernible] be the to just That at I We our give right rate don't with resort, want

opportunity an have because too in it’s -- to we obviously, And that call

mortgage Ameris mentioned on you being real traditionally towards Okay. just stronger quick, you mentioned purchase. Palmer, the the of mix

purchase XXXX? to ask so that mix versus just refi what I wanted And was in

at the now XX%. in run XXs, had XXs. right Traditionally, running we We're high

I think I in in terms end additional in a see place then refinances the too, share. in we ours what mortgage saw originators, the select core market we've got got on put migrates out that's now with I there incremental business any we you’ll pipeline efficiencies full closed where actually the in and is there's pulled it in picking the the now when companies primarily robotics towards. some that waited wave in still will mentioned, or tell and that's we've bring But talent Because some an has people And be up markets wave additional I that shop we in And to to fluid up you back, the garnered that's purchasing And there's that lot terms is right of as during movement last refi like layer market a opportunity think mortgage focused so for as it's these this production. next right left. when volume and in out up of capacity if pulled of will of of come, and there production. to this

Okay.

that So that background. we're is some people when rebound a with strong originators a off. once background, of run looking focus not offset purchase our will again, And for

understood. Okay,

looked wanted might hotel any just given the reserve an for XX million. those have this, to of not there the were aside a existing -- small quarter I had reserve, there specific mark like the On reserves at ask loans specific you sale, maybe you it them? set any any was But before were for sold on

and loans XX we were mix. quarter, portfolio. FAS non-accrual were, third some in and of had associated the there end that some that with because TDRs Yes, X more mix By in they that the both reserves the

couple then, And a yields of production a you Nicole, those do first seen decline production quarters steady yield. Where last but the bank, in going XXX quarter? Okay. the not -- you've see here sort at that of it's the in surprising, core steady the

anticipate to it offense so deposit would to they watch at the to stable is hope best point. rate the this stay I or flat. certainly defense well. those continue that and that trend that still to as cost far But Again,

relatively When historically, Okay. look at you done book. you the And but just like C&I the large portfolio customer NIB not of on job your is guys loan portion left good two base, for a core me. pretty a have

most non-interest wanted does base, customer of when so from? look ask, where your I at we to And deposits your come bearing

base, Believe our that's even it the come of the or small, not, where though from. deposits majority albeit they commercial come from

Okay.

think I especially deposits. what enhanced growth investing side. feature management And for pertains here balances of for in management treasury helps as to all additional the potential that accelerate it the is we’re treasury [Indiscernible] and

wanted your Okay. size Palmer, ask Thank to but targets equals? around you. I the of then, any mergers response heard I just about with potential your potential And again and M&A, on early thoughts

billion. the here many smaller before And I good I got going to same than you Yes. we pretty that a anything we've tell target with would gave answer we looked do, $X thing at Ameris.

equal financial to because we to to even Anything on three in you need that, the discussion go something we you one back meaningful. don't we've wonderful do we're line to MOE plus where is see, had situation be want can performance. or have consider you down a if do -- As do to where what of always accretive. And our a something pulling one of that's be like is we And would a have anything needs get year. doing type

So a performer. being top ourselves on we've prided always tier

in we've company. we for just here And the equal we've cake the find us. set mindset had enjoy sure we've the this same able to is been got M&A to of nice -- And retain that if M&A, that be of we right so and the an tremendous somebody that But ourselves would we it making level that’s now, don't power market icing thing if too on performance. earning do M&A, do show from on aside

time very this appreciate Understood. my for questions. Thank you the I taking much morning.

Please from today question Janney ahead. Montgomery Scott. with Christopher come last Marinac The go will

Nicole. Palmer, Hi,

earlier. Just comments I up the to note mortgage margin. the follow on

relevant Just history, curious as it at but a the really not low that perhaps that. the some, means it's history for that is paradigm making, that of not before of had been there downside which in Ameris the given and you you're margin new Fidelity as If terms changes is historically?

enhanced lot things, a discipline. I like of think Yes, it's an

we're there, a have of elevated. put to and see going always think the Fidelity up, as Odom new back maintaining start has the good are there is done I not But shops. that that to -- it as team they run think back. noted that is pull those both those And to we volume and focus the before, have as Robert helps that you'll an place company. margins. integrate seeing well have keep throughout margins and it I but But hold job pulls think his long excellent as mortgage that discipline he's volume Ameris we the as focused margins When I in

throughout just garnering in enhanced And so efficiencies while it's there that's his was a now. And I that improved delivers discipline that control more and place, in margin, or what his operation. he's think place

on still hire side? more Thanks there to And Great. that. mortgage producers the for are opportunities

Yes.

upcoming got making We've As I’ve some touched opportunities. in we've order. on short be earlier, we'll there and opportunity happen got that

in be -- mortgage shop. continued they'll new So growth that hires in the

for Great. all morning. Thanks this the much time very

Thank you. Okay.

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

Thank to everybody for again, year fourth want listening Great. And in earnings you, I full XXXX Grant. quarter call. to thank once and our

forward look And forward in positioned for you. XXXX, next talking future. to Thank well look we to the is you extremely Ameris we As quarter.

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

may disconnect. now You