Ameris Bancorp

11/07/2025 | Press release | Distributed by Public on 11/07/2025 11:33

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements made in this report are "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, uncertainties and other factors, many of which may be beyond our control and which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "predict," "could," "intend," "target," "potential" and other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness and payment behaviors of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government trade, monetary and fiscal policies, including tariffs; competitive pressures on product pricing and services; fraud, theft or other misconduct impacting our customers or operations; cybersecurity risks, including data breaches, malware, ransomware and account takeover; the success and timing of our business strategies and plans; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control; and other factors discussed in our filings with the Securities and Exchange Commission (the "SEC") under the Exchange Act.
All written or oral forward-looking statements that are made by or are attributable to us are expressly qualified in their entirety by this cautionary notice. Our forward-looking statements apply only as of the date of this report or the respective date of the document from which they are incorporated herein by reference. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date of this report, or after the respective dates on which such statements otherwise are made, whether as a result of new information, future events or otherwise.
Overview
The following is management's discussion and analysis of certain significant factors which have affected the financial condition and results of operations of the Company as reflected in the unaudited consolidated balance sheet as of September 30, 2025, as compared with December 31, 2024, and operating results for the three and nine month periods ended September 30, 2025 and 2024. These comments should be read in conjunction with the Company's unaudited consolidated financial statements and accompanying notes appearing elsewhere herein.
Critical Accounting Policies
There have been no significant changes to our critical accounting policies from those disclosed in our 2024 Annual Report on Form 10-K. The reader should refer to the notes to our consolidated financial statements in our 2024 Annual Report on Form 10-K for a full disclosure of all critical accounting policies.
Results of Operations for the Three Months Ended September 30, 2025 and 2024
Consolidated Earnings and Profitability
Ameris reported net income available to common shareholders of $106.0 million, or $1.54 per diluted share, for the quarter ended September 30, 2025, compared with $99.2 million, or $1.44 per diluted share, for the same period in 2024. The Company's return on average assets and average shareholders' equity were 1.56% and 10.61%, respectively, in the third quarter of 2025, compared with 1.49% and 10.91%, respectively, in the third quarter of 2024.
Below is additional information regarding the banking, retail mortgage, warehouse lending and premium finance divisions of the Company during the third quarter of 2025 and 2024, respectively:
Three Months Ended
September 30, 2025
(dollars in thousands) Banking
Division 		Retail
Mortgage
Division 		Warehouse
Lending
Division 		Premium
Finance
Division 		Total
Interest income $ 245,322 $ 60,261 $ 18,803 $ 30,660 $ 355,046
Interest expense 47,262 40,082 11,329 18,409 117,082
Net interest income 198,060 20,179 7,474 12,251 237,964
Provision for credit losses 21,617 529 23 461 22,630
Noninterest income 35,419 40,081 756 18 76,274
Noninterest expense
Salaries and employee benefits 66,301 21,589 566 2,492 90,948
Occupancy and equipment 10,718 760 7 39 11,524
Data processing and communications expenses 14,668 1,232 57 101 16,058
Other expenses 22,286 12,480 195 1,075 36,036
Total noninterest expense 113,973 36,061 825 3,707 154,566
Income before income tax expense 97,889 23,670 7,382 8,101 137,042
Income tax expense 22,824 4,970 1,550 1,669 31,013
Net income $ 75,065 $ 18,700 $ 5,832 $ 6,432 $ 106,029
Three Months Ended
September 30, 2024
(dollars in thousands) Banking
Division 		Retail
Mortgage
Division 		Warehouse
Lending
Division 		Premium
Finance
Division 		Total
Interest income $ 243,964 $ 60,789 $ 21,677 $ 28,716 $ 355,146
Interest expense 71,329 37,236 13,865 18,656 141,086
Net interest income 172,635 23,553 7,812 10,060 214,060
Provision for credit losses 5,566 254 (170) 457 6,107
Noninterest income 26,435 41,498 1,765 11 69,709
Noninterest expense
Salaries and employee benefits 62,634 23,233 621 2,212 88,700
Occupancy and equipment 10,725 957 6 28 11,716
Data processing and communications expenses 13,922 1,184 32 83 15,221
Other expenses 22,619 12,164 217 1,140 36,140
Total noninterest expense 109,900 37,538 876 3,463 151,777
Income before income tax expense 83,604 27,259 8,871 6,151 125,885
Income tax expense 17,832 5,724 1,863 1,254 26,673
Net income $ 65,772 $ 21,535 $ 7,008 $ 4,897 $ 99,212
Net Interest Income and Margins
The following table sets forth the average balance, interest income or interest expense, and average interest rate for each category of interest-earning assets and interest-bearing liabilities, net interest spread, and net interest margin on average interest-earning assets for the three months ended September 30, 2025 and 2024. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 21% federal tax rate.
Quarter Ended September 30,
2025 2024
(dollars in thousands) Average
Balance 		Interest
Income/
Expense 		Average
Yield/
Rate Paid 		Average
Balance 		Interest
Income/
Expense 		Average
Yield/
Rate Paid
Assets
Interest-earning assets:
Interest-bearing deposits in banks $ 883,976 $ 9,993 4.48% $ 997,308 $ 13,633 5.44%
Investment securities - taxable 2,282,470 23,253 4.04% 1,733,418 15,555 3.57%
Investment securities - nontaxable 44,823 434 3.84% 41,496 426 4.08%
Loans held for sale 706,679 11,237 6.31% 575,461 9,142 6.32%
Loans 21,038,350 311,082 5.87% 21,023,629 317,358 6.01%
Total interest-earning assets 24,956,298 355,999 5.66% 24,371,312 356,114 5.81%
Noninterest-earning assets 2,015,836 2,071,672
Total assets $ 26,972,134 $ 26,442,984
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $ 3,900,999 $ 18,230 1.85% $ 3,753,528 $ 20,535 2.18%
MMDA 6,977,134 54,657 3.11% 6,508,770 61,620 3.77%
Savings accounts 756,383 813 0.43% 765,909 960 0.50%
Retail CDs 2,344,084 21,253 3.60% 2,478,875 26,775 4.30%
Brokered CDs 1,070,735 11,898 4.41% 1,493,352 19,808 5.28%
Total interest-bearing deposits 15,049,335 106,851 2.82% 15,000,434 129,698 3.44%
Non-deposit funding
Securities sold under agreements to repurchase 1 - -% - - -%
FHLB advances 443,243 4,863 4.35% 358,332 4,443 4.93%
Other borrowings 169,994 2,328 5.43% 298,073 3,514 4.69%
Subordinated deferrable interest debentures 133,541 3,040 9.03% 131,547 3,431 10.38%
Total non-deposit funding 746,779 10,231 5.44% 787,952 11,388 5.75%
Total interest-bearing liabilities 15,796,114 117,082 2.94% 15,788,386 141,086 3.55%
Demand deposits 6,849,129 6,622,952
Other liabilities 362,684 413,594
Shareholders' equity 3,964,207 3,618,052
Total liabilities and shareholders' equity $ 26,972,134 $ 26,442,984
Interest rate spread 2.72% 2.26%
Net interest income $ 238,917 $ 215,028
Net interest margin 3.80% 3.51%
On a tax-equivalent basis, net interest income for the third quarter of 2025 was $238.9 million, an increase of $23.9 million, or 11.11%, compared with $215.0 million reported in the same quarter in 2024. The increase in net interest income is primarily a result of downward pricing adjustments on deposits as market rates decreased, in addition to growth in average earning assets, partially offset by a decrease in asset yields. Average interest-earning assetsincreased$585.0 million, or 2.40%, from $24.37 billion in the third quarter of 2024 to $24.96 billion for the third quarter of 2025.This growth in interest-earning assets resulted primarily from increased investment in our bond portfolio and organic loan growth. The Company's net interest margin during the third quarter of 2025 was 3.80%, up 29basis points from 3.51% reported in the third quarter of 2024. Loan production amounted to $5.4 billion during the third quarter of 2025, with weighted average yields of 6.77%, compared with $5.1 billion and 7.52%, respectively, during the third quarter of 2024.
Total interest income, on a tax-equivalent basis, was relatively flat at $356.0 million during the third quarter of 2025, compared with $356.1 million in the same quarter of 2024. Yields on earning assets decreased to 5.66% during the third quarter of 2025,
compared with 5.81% reported in the third quarter of 2024. During the third quarter of 2025, loans comprised 87.1% of average earning assets, compared with 88.6% in the same quarter of 2024. Yields on loansdecreasedto 5.87% in the third quarter of 2025, compared with 6.01% in the same period of 2024. Yields on taxable investment securities increasedto 4.04%in the third quarter of 2025, compared with 3.57%in the same period of 2024.
The yield on interest-bearing deposits decreased from 3.44% in the third quarter of 2024 to 2.82% in the third quarter of 2025. The yield on total interest-bearing liabilitiesdecreased from 3.55% in the third quarter of 2024 to 2.94% in the third quarter of 2025. Total funding costs, inclusive of noninterest-bearing demand deposits, decreased to 2.05% in the third quarter of 2025, compared with 2.50% during the third quarter of 2024. Deposit costs decreased from 2.39% in the third quarter of 2024 to 1.94% in the third quarter of 2025. Non-deposit funding costsdecreased from 5.75% in the third quarter of 2024 to 5.44% in the third quarter of 2025.
Provision for Credit Losses
The Company's provision for credit losses during the third quarter of 2025 amounted to $22.6 million, compared with $6.1 million in the third quarter of 2024. The provision for credit losses for the third quarter of 2025 was comprised of $11.2 million related to loans, $11.4 million related to unfunded commitments and $8,000related to other credit losses, compared with $6.3 million related to loans, negative $204,000 related to unfunded commitments and negative $2,000 related to other credit losses for the third quarter of 2024. The increase in the provision for credit losses on loans is primarily attributable to the updated economic forecast, an increase in the office portfolio qualitative factor and changes in the portfolio mix. The increase in the provision for unfunded commitments primarily resulted from new loan production not yet funded and an increase in loss rates attributable to the updated economic forecast. Non-performing assets as a percentage of total assets decreased seven basis points to 0.40% at September 30, 2025, compared with 0.47% at December 31, 2024. The decrease in non-performing assets is primarily attributable to decreases in nonaccrual loans of $5.3 million and accruing loans delinquent 90 days or more of $8.4 million. The Company recognized net charge-offs on loans during the third quarter of 2025 of approximately $7.4 million, or 0.14% of average loans on an annualized basis, compared with net charge-offs of approximately $8.1 million, or 0.15%, in the third quarter of 2024. The Company's total allowance for credit losses on loans at September 30, 2025 was $345.3 million, or 1.62% of total loans, compared with $338.1 million, or 1.63% of total loans, at December 31, 2024.
Noninterest Income
Total noninterest income for the third quarter of 2025 was $76.3 million, an increase of $6.6 million, or 9.4%, from the $69.7 million reported in the third quarter of 2024. Income from mortgage banking activities was $40.7 million in the third quarter of 2025, an increase of $2.7 million, or 7.2%, from $37.9 million in the third quarter of 2024. Total production in the third quarter of 2025 amounted to $1.09 billion, compared with $1.16 billion in the same quarter of 2024, while gain on sale spread increasedto 2.20%in the third quarter of 2025, compared with 2.17%in the same quarter of 2024. The retail mortgage open pipeline finished the third quarter of 2025 at $787.2 million, compared with $719.1 million at June 30, 2025 and $813.7 million at the end of the third quarter of 2024.
Service charges on deposit accounts increased $1.0 million, or 7.8%, to $13.9 million in the third quarter of 2025, compared with $12.9 million in the third quarter of 2024.The increase in service charges on deposit accounts was primarily attributable to increases in fee income on commercial accounts and debit card interchange income. Net gains on the sale of securities increased $1.6 million in the third quarter of 2025, compared with a net loss of $8,000 during the third quarter of 2024. Income from equipment finance activity increased $3.5 million, or 64.1%, to $8.9 million for the third quarter of 2025, compared with $5.4 million during the third quarter of 2024. The increase in equipment finance activity was primarily related to increased non-insurance charges.Other noninterest income decreased $2.2 million, or 17.7%, to $10.1 million for the third quarter of 2025, compared with $12.3 million during the third quarter of 2024. The decrease in other noninterest income was primarily attributable to a decrease in gain on sale of mortgage servicing rights of $5.1 million, partially offset by increases in derivative fee income of $1.9 million and gain on sale of SBA loans of $393,000.
Noninterest Expense
Total noninterest expense for the third quarter of 2025 increased $2.8 million, or 1.8%, to $154.6 million, compared with $151.8 million in the same quarter 2024. Salaries and employee benefits increased $2.2 million, or 2.5%, from $88.7 million in the third quarter of 2024 to $90.9 million in the third quarter of 2025, due primarily to annual merit increases and an increase in incentives, partially offset by decreases in mortgage commissions attributable to lower production and share-based compensation. Data processing and communication expenses increased $837,000, or 5.5%, to $16.1 million in the third quarter of 2025, compared with $15.2 million in the third quarter of 2024, with the increase primarily resulting from increased volume. Advertising and marketing expense was $3.4 million in the third quarter of 2025, compared with $4.0 million in the third
quarter of 2024. Amortization of intangible assets decreased $301,000, or 7.2%, from $4.2 million in the third quarter of 2024 to $3.9 million in the third quarter of 2025. This decrease was primarily related to a reduction in core deposit intangible amortization.Loan servicing expenses decreased $484,000, or 5.6%, from $8.6 million in the third quarter of 2024 to $8.1 million in the third quarter of 2025, primarily attributable to the sale of mortgage servicing rights in the second and third quarters of 2024, partially offset by additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $383,000, or 2.0%, from $19.5 million in the third quarter of 2024 to $19.9 million in the third quarter of 2025, due primarily to an increase in legal and other professional fees of $522,000, partially offset by a decrease of $150,000 in natural disaster expenses.
Income Taxes
Income tax expense is influenced by the statutory rate, the amount of taxable income, the amount of tax-exempt income and the amount of nondeductible expenses. For the third quarter of 2025, the Company reported income tax expense of $31.0 million, compared with $26.7 million in the same period of 2024. The Company's effective tax rate for the three months ended September 30, 2025 and 2024 was 22.6% and 21.2%, respectively. The increase in the effective rate for the three months ended September 30, 2025 is primarily related to a favorable return-to-provision adjustment resulting from reduced state apportionment during the third quarter of 2024, with no such adjustment in the third quarter of 2025.
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Consolidated Earnings and Profitability
Ameris reported net income available to common shareholders of $303.8 million, or $4.41 per diluted share, for the nine months ended September 30, 2025, compared with $264.3 million, or $3.83 per diluted share, for the same period in 2024. The Company's return on average assets and average shareholders' equity were 1.52% and 10.48%, respectively, in the nine months ended September 30, 2025, compared with 1.36% and 9.98%, respectively, in the same period in 2024. Results for the first nine months of 2025 include a pre-tax gain on sale of mortgage servicing rights of $467,000, a pre-tax gain on BOLI proceeds of $401,000 and a pre-tax reduction in FDIC special assessment of $318,000. During the first nine months of 2024, the Company recorded a pre-tax gain on conversion of its Visa Class B-1 stock of $12.6 million, a pre-tax gain on sale of mortgage servicing rights of $10.0 million, a pre-tax FDIC special assessment of $2.0 million, a pre-tax gain on BOLI proceeds of $1.5 million and a pre-tax natural disaster expense of $150,000. Additionally, the Company recorded $4.8 million in tax expense attributable to BOLI restructuring.
Below is additional information regarding the retail banking activities, mortgage banking activities, warehouse lending activities and premium finance activities of the Company during the nine months ended September 30, 2025 and 2024, respectively:
Nine Months Ended
September 30, 2025
(dollars in thousands) Banking
Division 		Retail
Mortgage
Division 		Warehouse
Lending
Division 		Premium
Finance
Division 		Total
Interest income $ 717,852 $ 179,549 $ 52,177 $ 86,884 $ 1,036,462
Interest expense 144,078 115,495 31,710 53,563 344,846
Net interest income 573,774 64,054 20,467 33,321 691,616
Provision for loan losses 38,714 6,730 217 1,633 47,294
Noninterest income 93,418 112,536 3,203 51 209,208
Noninterest expense
Salaries and employee benefits 191,018 66,942 1,736 7,175 266,871
Occupancy and equipment 31,069 2,400 21 112 33,602
Data processing and communications expenses 41,884 3,920 154 321 46,279
Other expenses 73,449 36,939 561 3,159 114,108
Total noninterest expense 337,420 110,201 2,472 10,767 460,860
Income before income tax expense 291,058 59,659 20,981 20,972 392,670
Income tax expense 67,645 12,528 4,406 4,293 88,872
Net income $ 223,413 $ 47,131 $ 16,575 $ 16,679 $ 303,798
Nine Months Ended
September 30, 2024
(dollars in thousands) Banking
Division 		Retail
Mortgage
Division 		Warehouse
Lending
Division 		Premium
Finance
Division 		Total
Interest income $ 722,943 $ 174,889 $ 57,540 $ 76,549 $ 1,031,921
Interest expense 212,303 104,307 37,408 50,534 404,552
Net interest income 510,640 70,582 20,132 26,015 627,369
Provision for loan losses 45,581 (296) 334 366 45,985
Noninterest income 90,325 130,408 3,533 32 224,298
Noninterest expense
Salaries and employee benefits 181,473 69,560 2,633 6,165 259,831
Occupancy and equipment 33,952 3,014 20 174 37,160
Data processing and communications expenses 40,862 3,826 116 264 45,068
Other expenses 71,680 38,091 752 3,263 113,786
Total noninterest expense 327,967 114,491 3,521 9,866 455,845
Income before income tax expense 227,417 86,795 19,810 15,815 349,837
Income tax expense 59,950 18,227 4,160 3,191 85,528
Net income $ 167,467 $ 68,568 $ 15,650 $ 12,624 $ 264,309
Net Interest Income and Margins
The following table sets forth the average balance, interest income or interest expense, and average yield/rate paid for each category of interest-earning assets and interest-bearing liabilities, net interest spread, and net interest margin on average interest-earning assets for the nine months ended September 30, 2025 and 2024. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 21% federal tax rate.
Nine Months Ended
September 30,
2025 2024
(dollars in thousands) Average
Balance 		Interest
Income/
Expense 		Average
Yield/
Rate Paid 		Average
Balance 		Interest
Income/
Expense 		Average
Yield/
Rate Paid
Assets
Interest-earning assets:
Interest-bearing deposits in banks $ 938,312 $ 31,497 4.49% $ 940,548 $ 38,646 5.49%
Investment securities - taxable 2,133,805 62,441 3.91% 1,665,902 45,595 3.66%
Investment securities - nontaxable 42,517 1,273 4.00% 41,393 1,267 4.09%
Loans held for sale 668,177 31,860 6.38% 463,680 22,679 6.53%
Loans 20,864,180 912,200 5.85% 20,722,659 926,612 5.97%
Total interest-earning assets 24,646,991 1,039,271 5.64% 23,834,182 1,034,799 5.80%
Noninterest-earning assets 2,008,689 2,065,435
Total assets $ 26,655,680 $ 25,899,617
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $ 3,942,766 $ 54,680 1.85% $ 3,802,501 $ 62,129 2.18%
MMDA 6,935,931 160,387 3.09% 6,238,615 173,905 3.72%
Savings accounts 763,248 2,469 0.43% 781,072 2,930 0.50%
Retail CDs 2,391,146 66,350 3.71% 2,429,505 77,062 4.24%
Brokered CDs 1,059,911 34,976 4.41% 1,347,836 53,091 5.26%
Total interest-bearing deposits 15,093,002 318,862 2.82% 14,599,529 369,117 3.38%
Non-deposit funding
FHLB advances 307,354 9,733 4.23% 375,328 14,188 5.05%
Other borrowings 185,574 7,177 5.17% 304,554 10,967 4.81%
Subordinated deferrable interest debentures 133,046 9,074 9.12% 131,052 10,280 10.48%
Total non-deposit funding 625,974 25,984 5.55% 810,934 35,435 5.84%
Total interest-bearing liabilities 15,718,976 344,846 2.93% 15,410,463 404,552 3.51%
Demand deposits 6,714,016 6,528,572
Other liabilities 346,284 423,023
Shareholders' equity 3,876,404 3,537,559
Total liabilities and shareholders' equity $ 26,655,680 $ 25,899,617
Interest rate spread 2.71% 2.29%
Net interest income $ 694,425 $ 630,247
Net interest margin 3.77% 3.53%
On a tax-equivalent basis, net interest income for the nine months ended September 30, 2025 was $694.4 million, an increase of $64.2 million, or 10.18%, compared with $630.2 million reported in the same period of 2024. The increase in net interest income is primarily a result of downward pricing adjustments on deposits as market rates decreased, in addition to growth in average earning assets, partially offset by a decrease in asset yields. Average interest earning assets increased $812.8 million, or 3.41%, from $23.83 billion in the first nine months of 2024 to $24.65 billion for the first nine months of 2025. This growth in interest-earning assets resulted primarily from increased investment in our bond portfolio and organic loan growth. The Company's net interest margin during the first nine months of 2025 was 3.77%, an increase of 24 basis points from 3.53% reported for the first nine months of 2024.Loan production amounted to $15.1 billion during the first nine months of 2025, with weighted average yields of 6.79%, compared with $14.1 billion and 7.54%, respectively, during the first nine months of 2024.
Total interest income, on a tax-equivalent basis,increased to $1.04 billion during the nine months ended September 30, 2025, compared with $1.03 billion in the same period of 2024. Yields on earning assetsdecreased to 5.64% during the first nine months of 2025, compared with 5.80% reported in the same period of 2024. During the first nine months of 2025, loans
comprised 87.4% of average earning assets, compared with 88.9% in the same period of 2024. Yields on loans decreased to 5.85% during the nine months ended September 30, 2025, compared with 5.97% in the same period of 2024. Yields on taxable investment securities increased to 3.91%during the nine months ended September 30, 2025, compared with 3.66%in the same period of 2024.
The yield on total interest-bearing liabilitiesdecreased from 3.51% during the nine months ended September 30, 2024 to 2.93% in the same period of 2025. Total funding costs, inclusive of noninterest-bearing demand deposits, decreased to 2.06% in the first nine months of 2025, compared with 2.46% during the same period of 2024. Deposit costsdecreased from 2.33% in the first nine months of 2024 to 1.95% in the same period of 2025. Non-deposit funding costs decreased from 5.84% in the first nine months of 2024 to 5.55% in the same period of 2025.
Provision for Credit Losses
The Company's provision for credit losses during the nine months ended September 30, 2025 amounted to $47.3 million, compared with $46.0 million in the nine months endedSeptember 30, 2024. This increase was primarily attributable to an increase in unfunded commitments, the updated economic forecast during the first nine months of 2025 and organic loan growth, partially offset by a shift in the loan mix. The provision for credit losses for the first nine months of 2025 was comprised of $30.8 million related to loans, $16.5 million related to unfunded commitments and $5,000 related to other credit losses, compared with $57.2 million related to loans, negative $11.2 million related to unfunded commitments and negative $3,000 related to other credit lossesfor the same period in 2024.Non-performing assets as a percentage of total assets decreased from 0.47% at December 31, 2024 to 0.40% at September 30, 2025. The decrease in non-performing assets is primarily attributable to a decrease in nonaccrual loans of $5.3 million and a decrease in accruing loans delinquent 90 days or more of $8.4 million. Net charge-offs on loans during the first nine months of 2025 were $23.6 million, or 0.15% of average loans on an annualized basis,compared with approximately $29.8 million, or 0.19%, in the first nine months of 2024. The Company's total allowance for credit losses on loans at September 30, 2025 was $345.3 million, or 1.62% of total loans, compared with $338.1 million, or 1.63% of total loans, at December 31, 2024.
Noninterest Income
Total noninterest income for the nine months ended September 30, 2025 was $209.2 million, a decrease of $15.1 million, or 6.7%, from the $224.3 million reported for the nine months ended September 30, 2024. This decrease primarily resulted from decreases in gains on sale of mortgage servicing rights and securities, partially offset by an increase in equipment finance activity. Income from mortgage banking activities decreased $8.6 million, or 7.0%, from $123.8 million in the first nine months of 2024 to $115.1 million in the same period of 2025. Total production in the first nine months of 2025 amounted to $3.30 billion, compared with $3.39 billion in the same period of 2024, while gain on sale spread decreasedto 2.20%during the nine months ended September 30, 2025, compared with 2.37%in the same period of 2024. The retail mortgage open pipeline was $787.2 million at September 30, 2025, compared with $638.5 million at December 31, 2024 and $813.7 million at September 30, 2024.
Net gain onsecurities decreased to $1.6 million for the nine months ended September 30, 2025, compared with a gain of $12.3 million for the nine months ended September 30, 2024. This decrease was primarily due to a gain of $12.6 million relating to the conversion of Visa Class B-1 stock, and related realized gain (loss) on subsequent sales and mark-to-market adjustments post-conversion, during the first nine months of 2024 that did not repeat in the first nine months of 2025. Other noninterest income decreased $5.2 million, or 16.4%, to $26.4 million for the first nine months of 2025, compared with $31.6 million during the same period of 2024. The decrease in other noninterest income was primarily attributable to decreases in gain on sale of mortgage servicing rights of $9.5 million and gain on BOLI proceeds of $1.1 million, compared with the nine months ended September 30, 2024. These decreases were partially offset by increases in derivative fee income of $1.3 million, gain on sale of SBA loans of $1.3 million, commercial card interchange income of $671,000 and BOLI income of $1.7 million.
Noninterest Expense
Total noninterest expenses for the nine months ended September 30, 2025 increased $5.0 million, or 1.1%, to $460.9 million, compared with $455.8 million in the same period of 2024. Salaries and employee benefits increased $7.0 million, or 2.7%, from $259.8 million in the first nine months of 2024 to $266.9 million in the same period of 2025,due primarily to annual merit increases and increases in incentives of $3.4 million, healthcare costs of $2.1 million and share-based compensation of $354,000, partially offset by a decrease in mortgage commissions of $2.4 million attributable to lower production.Occupancy and equipment expenses decreased $3.6 million, or 9.6%, to $33.6 million in the first nine months of 2025 from $37.2 million reported in the same period of 2024, primarily driven by lower depreciation expense and decreases in both building rent and repairs and maintenance.Data processing and communications expenses increased $1.2 million, or 2.7%, to $46.3 million in
the first nine months of 2025, from $45.1 million reported in the same period of 2024. Amortization of intangible assets decreased $1.0 million, or 7.3%, from $13.0 million in the first nine months of 2024 to $12.1 million in the first nine months of 2025. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses decreased $4.0 million, or 14.3%, from $27.9 million in the first nine months of 2024 to $23.9 million in the same period of 2025, primarily attributable to the sale of mortgage servicing rights in the second and third quarters of 2024, partially offset by additional mortgage loans serviced added from mortgage production over the previous year. Other noninterest expenses increased $4.2 million, or 6.7%, from $61.8 million in the first nine months of 2024 to $66.0 million in the same period of 2025, due primarily to increases in donations of $5.0 million and deposit and debit card losses of $1.6 million. These increases in other noninterest expense were partially offset by a decrease in FDIC special assessment expenses of $2.3 million.
Income Taxes
Income tax expense is influenced by the statutory rate, the amount of taxable income, the amount of tax-exempt income and the amount of nondeductible expenses. For the nine months ended September 30, 2025, the Company reported income tax expense of $88.9 million, compared with $85.5 million in the same period of 2024. The Company's effective tax rate for the nine months ended September 30, 2025 and 2024 was 22.6% and 24.4%, respectively. The decrease in the effective tax rate is primarily a result of a $4.8 million tax expense related to BOLI surrender during the first nine months of 2024 that did not repeat in 2025.
Financial Condition as of September 30, 2025
Securities
Debt securities classified as available-for-sale are recorded at fair value with unrealized holding gains and losses excluded from earnings and reported in accumulated other comprehensive income (loss), net of the related deferred tax effect. Securities available-for-sale may be bought and sold in response to changes in market conditions, including, but not limited to, fluctuations in interest rates, changes in securities' prepayment risk, increases in loan demand, general liquidity needs and positioning the portfolio to take advantage of market conditions that create more economically attractive returns. Debt securities which are classified as held-to-maturity are done so based on management's positive intent and ability to hold such securities to maturity and are carried at amortized cost. Restricted equity securities are classified as other investment securities and are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value or cost basis.
The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the expected life of the securities. Realized gains and losses, determined on the basis of the cost of specific securities sold, are included in earnings on the trade date.
The following table is a summary of our investment portfolio at the dates indicated:
September 30, 2025 December 31, 2024
(dollars in thousands) Amortized Cost Fair
Value 		Amortized Cost Fair
Value
Securities available-for-sale
U.S. Treasuries $ 677,981 $ 684,890 $ 800,860 $ 796,464
U.S. government-sponsored agencies - - 1,010 994
State, county and municipal securities 21,998 21,461 25,802 24,740
Corporate debt securities 10,945 10,411 10,946 10,283
SBA pool securities 13,603 12,912 72,036 70,482
Mortgage-backed securities 1,397,223 1,401,997 797,542 768,297
Total debt securities available-for-sale $ 2,121,750 $ 2,131,671 $ 1,708,196 $ 1,671,260
Securities held-to-maturity
State, county and municipal securities $ 33,483 $ 28,351 $ 33,623 $ 27,409
Mortgage-backed securities 169,098 159,261 131,054 116,619
Total debt securities held-to-maturity $ 202,581 $ 187,612 $ 164,677 $ 144,028
The amounts of securities available-for-sale and held-to-maturity in each category as of September 30, 2025 are shown in the following table according to contractual maturity classifications: (i) one year or less; (ii) after one year through five years; (iii) after five years through ten years; and (iv) after ten years:
U.S. Treasuries State, County and
Municipal Securities 		Corporate Debt Securities
(dollars in thousands)
Securities available-for-sale (1)
Amount Yield
(2) 		Amount Yield
(2)(3) 		Amount Yield
(2)
One year or less $ 246,008 4.27 % $ 3,681 4.06 % $ 1,000 4.81 %
After one year through five years 388,148 3.47 10,861 3.92 7,961 6.16
After five years through ten years 50,734 4.36 6,919 3.94 - -
After ten years - - - - 1,450 7.55
$ 684,890 3.82 % $ 21,461 3.95 % $ 10,411 6.28 %
SBA Pool Securities Mortgage-Backed Securities
(dollars in thousands)
Securities available-for-sale (1)
Amount Yield
(2) 		Amount Yield
(2)
One year or less $ 662 1.89 % $ 48,558 2.80 %
After one year through five years 865 3.39 245,963 3.24
After five years through ten years 10,244 2.62 206,132 4.39
After ten years 1,141 5.52 901,344 4.51
$ 12,912 2.89 % $ 1,401,997 4.21 %
State, County and
Municipal Securities 		Mortgage-Backed Securities
(dollars in thousands)
Securities held-to-maturity (1)
Amount Yield
(2)(3) 		Amount Yield
(2)
One year or less $ - - % $ 8,812 1.01 %
After one year through five years - - 35,527 4.17
After five years through ten years - - 72,694 2.93
After ten years 33,483 3.94 52,065 3.54
$ 33,483 3.94 % $ 169,098 3.28 %
(1)The amortized cost of securities held-to-maturity and fair value of securities available-for-sale are presented based on contractual maturities. Actual cash flows may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties.
(2)Yields were computed using coupon interest, adding discount accretion or subtracting premium amortization, as appropriate, on a ratable basis over the life of each security. The weighted average yield for each maturity range was computed using the amortized cost of each security in that range.
(3)Yields on securities of state and political subdivisions are stated on a taxable-equivalent basis, using a tax rate of 21%.
Loans and Allowance for Credit Losses
At September 30, 2025, gross loans outstanding (including loans and loans held for sale) were $21.86 billion, an increase of $594.0 million from $21.27 billion reported at December 31, 2024. Loans increased $518.5 million, or 2.5%, from $20.74 billion at December 31, 2024 to $21.26 billion at September 30, 2025. Loans held for sale increased from $528.6 million at December 31, 2024 to $604.1 million at September 30, 2025 primarily in our mortgage division.
At the end of the third quarter of 2025, the ACL on loans totaled $345.3 million, or 1.62% of loans, compared with $338.1 million, or 1.63% of loans, at December 31, 2024. Our nonaccrual loans decreased from $102.2 million at December 31, 2024 to $97.0 million at September 30, 2025. For the first nine months of 2025, our net charge off ratio as a percentage of average loans decreased to 0.15%, compared with 0.19% for the first nine months of 2024. The total provision for credit losses for the first nine months of 2025 was $47.3 million, compared with a provision of $46.0 million recorded for the first nine months of 2024. Our ratio of total nonperforming assets to total assets was down seven basis points from 0.47% at December 31, 2024 to 0.40% at September 30, 2025.
The following table presents an analysis of the allowance for credit losses on loans, provision for credit losses on loans and net charge-offs as of and for the nine months ended September 30, 2025 and 2024:
Nine Months Ended
September 30,
(dollars in thousands) 2025 2024
Balance of allowance for credit losses on loans at beginning of period $ 338,084 $ 307,100
Provision charged to operating expense 30,805 57,184
Charge-offs:
Commercial and industrial 32,368 40,150
Consumer 2,573 2,974
Premium finance 7,018 6,910
Real estate - commercial and farmland 692 571
Real estate - residential 590 49
Total charge-offs 43,241 50,654
Recoveries:
Commercial and industrial 12,172 12,286
Consumer 783 1,077
Premium finance 6,112 6,605
Real estate - construction and development 36 54
Real estate - commercial and farmland 216 655
Real estate - residential 327 150
Total recoveries 19,646 20,827
Net charge-offs 23,595 29,827
Balance of allowance for credit losses on loans at end of period $ 345,294 $ 334,457
The following table presents an analysis of the allowance for credit losses on loans and net charge-offs for loans held for investment:
As of and for the Nine Months Ended
(dollars in thousands) September 30, 2025 September 30, 2024
Allowance for credit losses on loans at end of period $ 345,294 $ 334,457
Net charge-offs for the period 23,595 29,827
Loan balances:
End of period 21,258,374 20,964,981
Average for the period 20,864,180 20,722,659
Net charge-offs as a percentage of average loans (annualized) 0.15 % 0.19 %
Allowance for credit losses on loans as a percentage of end of period loans 1.62 % 1.60 %
Loans
Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:
(dollars in thousands) September 30, 2025 December 31, 2024
Commercial and industrial $ 3,299,269 $ 2,953,135
Consumer 202,688 221,735
Mortgage warehouse 1,083,941 965,053
Municipal 437,823 441,408
Premium finance 1,358,259 1,155,614
Real estate - construction and development 1,411,178 1,998,506
Real estate - commercial and farmland 9,054,927 8,445,958
Real estate - residential 4,410,289 4,558,497
$ 21,258,374 $ 20,739,906
Commercial real estate ("CRE") represents the Company's largest loan category. The Company regularly monitors its CRE portfolio against regulatory concentration limits. Additionally, the Company manages its risk in the CRE portfolio through, among other things, established policy limits on loan-to-value or loan-to-cost at or below applicable regulatory guidance, use of internal lending limits on single loans to minimize exposure to a given project, annual reviews of borrowers and guarantors above certain total credit exposure thresholds, minimum required debt service coverage ratios and borrower equity levels. Exceptions to policy must be approved by an individual or committee with appropriate approval authority.
A summary of the Company's CRE portfolio by loan type and credit quality indicator as of September 30, 2025 and December 31, 2024 is below:
September 30, 2025
(dollars in thousands)
Pass Other Assets Especially Mentioned Substandard Total
Farmland $ 119,271 $ 2,113 $ 882 $ 122,266
Multifamily residential 1,969,501 - - 1,969,501
Owner occupied CRE 1,710,782 7,617 25,249 1,743,648
Non-owner occupied CRE 5,180,396 18,274 20,842 5,219,512
Total real estate - commercial and farmland $ 8,979,950 $ 28,004 $ 46,973 $ 9,054,927
December 31, 2024
(dollars in thousands)
Pass Other Assets Especially Mentioned Substandard Total
Farmland $ 137,503 $ 2,169 $ 1,192 $ 140,864
Multifamily residential 1,454,772 - - 1,454,772
Owner occupied CRE 1,839,329 11,826 28,905 1,880,060
Non-owner occupied CRE 4,872,745 82,341 15,176 4,970,262
Total real estate - commercial and farmland $ 8,304,349 $ 96,336 $ 45,273 $ 8,445,958
Investor CRE, which includes multifamily residential and non-owner occupied CRE loans, has several dynamics which individually, or in combination, pose potential challenges to the portfolio. These include levels of interest rates above those at origination for loan renewals and changes to occupancy rates as firms reevaluate space needs in light of factors such as the expansion of hybrid and remote work. The primary repayment source for these loans is cash flows from the securing property. The Company in the normal course performs periodic evaluations of its portfolio for continued soundness and appropriate risk ratings. These reviews include evaluation of current financials, stressed cash flows at increased interest rates and evaluation of property values at various occupancy levels and cap rates. The Company's Investor CRE portfolio continues to perform favorably with modest levels of past-due loans, such that past-due loans represented approximately eight basis points of Investor CRE loans at September 30, 2025.
The Company's multifamily residential portfolio is diversified geographically with the majority residing within our five-state footprint. Below is a summary of the multifamily residential portfolio by significant metropolitan statistical areas ("MSAs") or state as of September 30, 2025 and December 31, 2024:

(dollars in thousands) 		Atlanta Other Georgia Tampa Jacksonville Other Florida South Carolina North Carolina Alabama Other Total
September 30, 2025 $ 289,469 $ 243,450 $ 219,836 $ 211,823 $ 368,355 $ 140,581 $ 234,307 $ 53,239 $ 208,441 $ 1,969,501
December 31, 2024 239,371 237,679 150,344 147,590 208,835 158,247 85,517 53,933 173,256 1,454,772
The Company's non-owner occupied portfolio is well diversified. Below is a summary of the non-owner occupied CRE portfolio by property type and significant MSAs or state as of September 30, 2025 and December 31, 2024:
September 30, 2025
(dollars in thousands)
Atlanta Other Georgia Jacksonville Orlando Other Florida South Carolina North Carolina Alabama Other Total
Retail $ 492,382 $ 201,346 $ 226,692 $ 165,108 $ 257,879 $ 346,197 $ 164,677 $ 108,094 $ 152,918 $ 2,115,293
Office 512,238 23,500 70,517 134,615 176,458 182,228 89,230 4,136 61,279 1,254,201
Warehouse / industrial 322,946 11,822 45,536 72,049 97,792 89,958 94,390 8,426 160,294 903,213
Hotel 51,702 22,844 93,331 43,044 97,462 63,388 20,995 2,237 15,198 410,201
Mini storage warehouse 50,280 32,585 28,105 39,633 38,753 27,817 32,766 17,698 67,703 335,340
Assisted living facilities 68,349 - - 20 39,365 431 - - 313 108,478
Miscellaneous 30,102 9,736 9,450 15,746 14,547 4,156 7,833 - 1,216 92,786
Total non-owner occupied CRE $ 1,527,999 $ 301,833 $ 473,631 $ 470,215 $ 722,256 $ 714,175 $ 409,891 $ 140,591 $ 458,921 $ 5,219,512
December 31, 2024
(dollars in thousands)
Atlanta Other Georgia Jacksonville Orlando Other Florida South Carolina North Carolina Alabama Other Total
Retail $ 481,751 $ 169,255 $ 231,823 $ 175,140 $ 228,464 $ 344,985 $ 135,078 $ 106,166 $ 147,454 $ 2,020,116
Office 515,359 26,469 74,001 136,099 168,620 186,856 73,247 4,243 62,062 1,246,956
Warehouse / industrial 277,679 13,433 46,838 11,900 72,919 76,785 80,222 679 109,808 690,263
Hotel 43,500 27,383 102,186 47,249 104,365 73,960 12,204 2,369 16,248 429,464
Mini storage warehouse 51,505 37,427 32,432 40,441 41,402 39,118 33,204 18,035 67,552 361,116
Assisted living facilities 69,402 - 4,641 19 39,618 455 - - - 114,135
Miscellaneous 38,514 13,491 9,945 17,388 11,537 7,477 7,432 1,158 1,270 108,212
Total non-owner occupied CRE $ 1,477,710 $ 287,458 $ 501,866 $ 428,236 $ 666,925 $ 729,636 $ 341,387 $ 132,650 $ 404,394 $ 4,970,262
Non-Performing Assets
Non-performing assets include nonaccrual loans, accruing loans contractually past due 90 days or more, repossessed personal property, and OREO. Loans are placed on nonaccrual status when management has concerns relating to the ability to collect the principal and interest and generally when such loans are 90 days or more past due. Management performs a detailed review and valuation assessment of non-performing loans over $250,000 on a quarterly basis. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income.
Nonaccrual loans totaled $97.0 million at September 30, 2025, a decrease of $5.3 million, or 5.1%, from $102.2 million at December 31, 2024. Accruing loans delinquent 90 days or more totaled $9.3 million at September 30, 2025, a decrease of $8.4 million, or 47.4%, compared with $17.7 million at December 31, 2024. At September 30, 2025, OREO totaled $3.1 million, an increase of $704,000, or 28.9%, compared with $2.4 million at December 31, 2024. Management regularly assesses the valuation of OREO through periodic reappraisal and through inquiries received in the marketing process. At the end of the third quarter of 2025, total non-performing assets as a percent of total assets was down seven basis points from 0.47% at December 31, 2024 to 0.40% at September 30, 2025.
Non-performing assets at September 30, 2025 and December 31, 2024 were as follows:
(dollars in thousands) September 30, 2025 December 31, 2024
Nonaccrual loans(1)
$ 96,963 $ 102,218
Accruing loans delinquent 90 days or more 9,325 17,733
Repossessed assets 3 9
Other real estate owned 3,137 2,433
Total non-performing assets $ 109,428 $ 122,393
(1) Included in nonaccrual loans were $19.7 million and $12.0 million of serviced GNMA-guaranteed nonaccrual loans at September 30, 2025 and December 31, 2024, respectively.
Commercial Lending Practices
The federal bank regulatory agencies previously issued interagency guidance on commercial real estate lending and prudent risk management practices. This guidance defines CRE loans as loans secured by raw land, land development and construction (including one-to-four family residential construction), multi-family property and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property, excluding owner-occupied properties (loans for which 50% or more of the source of repayment is derived from the ongoing operations and activities conducted by the party, or affiliate of the party, who owns the property) or the proceeds of the sale, refinancing or permanent financing of the property. Loans for owner-occupied CRE are generally excluded from the CRE guidance.
The CRE guidance is applicable when either:
(1)total loans for construction, land development, and other land, net of owner-occupied loans, represent 100% or more of a tier I capital plus allowance for credit losses on loans and leases; or
(2)total loans secured by multifamily and nonfarm nonresidential properties and loans for construction, land development, and other land, net of owner-occupied loans, represent 300% or more of a bank's tier I capital plus allowance for credit losses on loans and leases.
Banks that are subject to the CRE guidance criteria are required to implement enhanced strategic planning, CRE underwriting policies, risk management and internal controls, portfolio stress testing, risk exposure limits, and other policies, including management compensation and incentives, to address the CRE risks. Higher allowances for loan losses and capital levels may also be appropriate.
As of September 30, 2025, the Company exhibited a concentration in the CRE loan category based on Federal Reserve Call codes. The primary risks of CRE lending are:
(1)within CRE loans, construction and development loans are somewhat dependent upon continued strength in demand for residential real estate, which is reliant on favorable real estate mortgage rates and changing population demographics;
(2)on average, CRE loan sizes are generally larger than non-CRE loan types; and
(3)certain construction and development loans may be less predictable and more difficult to evaluate and monitor.
The following table outlines CRE loan categories and CRE loans as a percentage of total loans as of September 30, 2025 and December 31, 2024. The loan categories and concentrations below are based on Federal Reserve Call codes:
September 30, 2025 December 31, 2024
(dollars in thousands) Balance % of Total
Loans 		Balance % of Total
Loans
Construction and development loans $ 1,411,178 7% $ 1,998,506 10%
Multi-family loans 1,969,501 8% 1,454,772 7%
Nonfarm non-residential loans (excluding owner-occupied) 5,219,512 25% 4,970,262 24%
Total CRE Loans(excluding owner-occupied)
8,600,191 40% 8,423,540 41%
All other loan types 12,658,183 60% 12,316,366 59%
Total Loans $ 21,258,374 100% $ 20,739,906 100%
The following table outlines the percentage of construction and development loans and total CRE loans, net of owner-occupied loans, to the Bank's tier I capital plus allowance for credit losses on loans and leases, and the Company's internal concentration limits as of September 30, 2025 and December 31, 2024:
Internal
Limit 		Actual
September 30, 2025 December 31, 2024
Construction and development loans 100% 42% 63%
Total CRE loans (excluding owner-occupied) 300% 261% 268%
Derivative Instruments and Hedging Activities
The Company has forward contracts and IRLCs to economically hedge changes in the value of the mortgage inventory due to changes in market interest rates. The fair value of IRLC instruments amounted to an asset of $5.0 million and $1.5 million at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024 forward contracts were recorded as a liability of $2.0 million and an asset of $5.8 million, respectively. The Company also enters into interest rate derivative agreements to facilitate the risk management strategies of certain clients. The Company mitigates this risk by entering into equal and offsetting interest rate derivative agreements with highly rated third-party financial institutions. The fair value of these instruments amounted to an asset of $7.1 million and $8.7 million at September 30, 2025 and December 31, 2024, respectively, and a liability of $7.4 million and $8.7 million at September 30, 2025 and December 31, 2024, respectively.
Deposits
Total deposits at the Company increased $505.6 million, or 2.3%, to $22.23 billion at September 30, 2025, compared with $21.72 billion at December 31, 2024. Noninterest-bearing deposits increased $258.9 million, or 4.0%, and interest-bearing deposits increased $246.7 million, or 1.6%, during the first nine months of 2025. At September 30, 2025, the Company had approximately $1.20 billion in short-term brokered CDs, compared with $804.9 million at December 31, 2024. As of September 30, 2025 and December 31, 2024, the Company had estimated uninsured deposits of $10.37 billion and $10.24 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $2.86 billion, or 27.6%, of the uninsured deposits at September 30, 2025 were for municipalities which are collateralized with investment securities or letters of credit.
Capital
Common Stock Repurchase Program
On September 19, 2019, the Company announced that its Board of Directors authorized the Company to repurchase up to $100.0 million of its outstanding common stock through October 31, 2020. The Board has subsequently extended the share repurchase program each year since that original authorization, with the most recent extension, which also included the increase in the size of the program to $200.0 million, being announced on October 20, 2025. As a result, the Company is currently authorized to engage in additional share repurchases up to $200.0 million through October 31, 2026. Repurchases of shares must be made in accordance with applicable securities laws and may be made from time to time in the open market or by negotiated transactions. The amount and timing of repurchases will be based on a variety of factors, including share acquisition price, regulatory limitations and other market and economic factors. The program does not require the Company to repurchase
any specific number of shares. As of September 30, 2025, an aggregate of $36.3 million, or 591,772 shares of the Company's common stock, had been repurchased under the program's October 24, 2024renewal.
Capital Management
Capital management consists of providing equity to support both current and anticipated future operations. The capital resources of the Company are monitored on a periodic basis by state and federal regulatory authorities.
Under the regulatory capital frameworks adopted by the Federal Reserve Board (the "FRB") and the Federal Deposit Insurance Corporation (the "FDIC"), the Company and the Bank must each maintain a common equity Tier 1 capital to total risk-weighted assets ratio of at least 4.5%, a Tier 1 capital to total risk-weighted assets ratio of at least 6%, a total capital to total risk-weighted assets ratio of at least 8% and a leverage ratio of Tier 1 capital to average total consolidated assets of at least 4%. The Company and the Bank are also required to maintain a capital conservation buffer of common equity Tier 1 capital of at least 2.5% of risk-weighted assets in addition to the minimum risk-based capital ratios in order to avoid certain restrictions on capital distributions and discretionary bonus payments.
In March 2020, the Office of the Comptroller of the Currency, the FRB and the FDIC issued an interim final rule that delays the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule provides banking organizations that implement CECL in 2020 the option to delay for two years an estimate of CECL's effect on regulatory capital, relative to the incurred loss methodology's effect on regulatory capital, followed by a three-year transition period. As a result, the Company and Bank elected the five-year transition relief allowed under the interim final rule effective March 31, 2020.
As of September 30, 2025, under the regulatory capital standards, the Bank was considered "well capitalized" under all capital measurements. The following table sets forth the regulatory capital ratios for the Company and the Bank at September 30, 2025 and December 31, 2024:
September 30, 2025 December 31, 2024
Tier 1 Leverage Ratio (tier 1 capital to average assets)
Consolidated 11.39% 10.74%
Ameris Bank 11.59% 11.17%
CET1 Ratio (common equity tier 1 capital to risk weighted assets)
Consolidated 13.20% 12.65%
Ameris Bank 13.43% 13.15%
Tier 1 Capital Ratio (tier 1 capital to risk weighted assets)
Consolidated 13.20% 12.65%
Ameris Bank 13.43% 13.15%
Total Capital Ratio (total capital to risk weighted assets)
Consolidated 15.05% 15.37%
Ameris Bank 14.69% 14.75%
Interest Rate Sensitivity and Liquidity
The Company's primary market risk exposures are credit risk, interest rate risk, and liquidity risk. The Bank operates under an Asset Liability Management Policy approved by the Company's Board of Directors and the ALCO Committee. The policy outlines limits on interest rate risk in terms of changes in net interest income and changes in the net market values of assets and liabilities over certain changes in interest rate environments. These measurements are made through a simulation model which projects the impact of changes in interest rates on the Bank's assets and liabilities. The policy also outlines responsibility for monitoring interest rate risk, and the process for the approval, implementation and monitoring of interest rate risk strategies to achieve the Bank's interest rate risk objectives.
The ALCO Committee is comprised of senior officers of Ameris. The ALCO Committee makes all strategic decisions with respect to the sources and uses of funds that may affect net interest income, including net interest spread and net interest margin. The objective of the ALCO Committee is to identify the interest rate, liquidity and market value risks of the Company's balance sheet and use reasonable methods approved by the Company's Board of Directors and executive management to minimize those identified risks.
The normal course of business activity exposes the Company to interest rate risk. Interest rate risk is managed within an overall asset and liability framework for the Company. The principal objectives of asset and liability management are to predict the sensitivity of net interest spreads to potential changes in interest rates, control risk and enhance profitability. Funding positions are kept within predetermined limits designed to properly manage risk and liquidity. The Company employs sensitivity analysis in the form of a net interest income simulation to help characterize the market risk arising from changes in interest rates. In addition, fluctuations in interest rates usually result in changes in the fair market value of the Company's financial instruments, cash flows and net interest income. The Company's interest rate risk position is managed by the ALCO Committee.
The Company uses a simulation modeling process to measure interest rate risk and evaluate potential strategies. Interest rate scenario models are prepared using software created and licensed from an outside vendor. The Company's simulation includes all financial assets and liabilities. Simulation results quantify interest rate risk under various interest rate scenarios. Management then develops and implements appropriate strategies. The ALCO Committee has determined that an acceptable level of interest rate risk would be for net interest income to increase/decrease no more than 20% given a change in selected interest rates of 200 basis points over any 24-month period.
Liquidity management involves the matching of the cash flow requirements of customers, who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs, and the ability of Ameris to manage those requirements. The Company strives to maintain an adequate liquidity position by managing the balances and maturities of interest-earning assets and interest-bearing liabilities so that the balance it has in short-term assets at any given time will adequately cover any reasonably anticipated immediate need for funds. Additionally, the Bank maintains relationships with correspondent banks, which could provide funds on short notice, if needed. The Company has invested in FHLB stock for the purpose of establishing credit lines with the FHLB. The credit availability to the Bank is equal to 30% of the Bank's total assets as reported on the most recent quarterly financial information submitted to the regulators subject to the pledging of sufficient collateral. At September 30, 2025 and December 31, 2024, the net carrying value of the Company's other borrowings was $337.1 million and $291.8 million, respectively. At September 30, 2025, the Company had availability with the FHLB and FRB Discount Window of $3.37 billion and $2.10 billion, respectively.
The following liquidity ratios compare certain assets and liabilities to total deposits or total assets:
September 30, 2025 June 30,
2025 		March 31,
2025 		December 31,
2024 		September 30,
2024
Investment securities available-for-sale to total deposits 9.59% 8.53% 8.87% 7.69% 6.59%
Loans (net of unearned income) to total deposits 95.64% 95.94% 94.50% 95.48% 95.82%
Interest-earning assets to total assets 92.60% 92.29% 92.30% 91.94% 92.09%
Interest-bearing deposits to total deposits 69.60% 68.99% 69.22% 70.08% 69.51%
The liquidity resources of the Company are monitored continually by the ALCO Committee and on a periodic basis by state and federal regulatory authorities. As determined under guidelines established by these regulatory authorities, the Company's and the Bank's liquidity ratios at September 30, 2025 were considered satisfactory. The Company is aware of no events or trends likely to result in a material change in liquidity.
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