ABCB 10-Q Quarterly Report March 31, 2025

AMERIS BANCORP

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abcb-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM			10-Q

(Mark One)


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Commission File Number:			001-13901


AMERIS BANCORP
(Exact name of registrant as specified in its charter)


Georgia			58-1456434
(State of incorporation)			(IRS Employer ID No.)


3490 Piedmont Rd N.E., Suite 1550
Atlanta	Georgia	30305
(Address of principal executive offices)


(404)			639-6500
(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1 per share	ABCB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	ý	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

There were 68,910,924 shares of Common Stock outstanding as of May 2, 2025.

AMERIS BANCORP

TABLE OF CONTENTS


		Page

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements.

	Consolidated Balance Sheets as of March 31 , 202 5 (unaudited) and December 31, 20 24	1

	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31 , 202 5 and 202 4 (unaudited)	2

	Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31 , 202 5 and 202 4 (unaudited)	3

	Consolidated Statements of Cash Flows for the T hree Months Ended March 31 , 202 5 and 202 4 (unaudited)	4

	Notes to Unaudited Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	46

Item 4.	Controls and Procedures.	47

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings.	48

Item 1A.	Risk Factors.	48

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	48

Item 3.	Defaults Upon Senior Securities.	48

Item 4.	Mine Safety Disclosures.	48

Item 5.	Other Information.	48

Item 6.	Exhibits.	49

Signatures		50

Item 1. Financial Statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Balance Sheets

(dollars in thousands, except share data)


	March 31, 2025 (unaudited)		December 31, 2024
Assets
Cash and due from banks	$	253,289	$	244,980
Interest-bearing deposits in banks	1,039,111		975,397
Cash and cash equivalents	1,292,400		1,220,377


Debt securities available-for-sale, at fair value, net of allowance for credit losses of $ 69 and $ 69	1,943,011		1,671,260
Debt securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 0 and $ 0 (fair value of $ 154,859 and $ 144,028 )	173,757		164,677
Other investments	65,630		66,298
Loans held for sale, at fair value	545,388		528,599

Loans, net of unearned income	20,706,644		20,739,906
Allowance for credit losses	( 345,555 )		( 338,084 )
Loans, net	20,361,089		20,401,822

Other real estate owned, net	863		2,433
Premises and equipment, net	207,895		209,460
Goodwill	1,015,646		1,015,646
Other intangible assets, net	66,658		70,761
Cash value of bank owned life insurance	410,890		408,574

Other assets	431,713		502,143
Total assets	$	26,514,940	$	26,262,050

Liabilities
Deposits:
Noninterest-bearing	$	6,744,781	$	6,498,293
Interest-bearing	15,167,628		15,224,155
Total deposits	21,912,409		21,722,448

Other borrowings	276,744		291,788
Subordinated deferrable interest debentures	132,807		132,309
Other liabilities	369,178		363,983
Total liabilities	22,691,138		22,510,528

Commitments and Contingencies (Note 8)

Shareholders’ Equity
Preferred stock, stated value $ 1,000 ; 5,000,000 shares authorized; 0 shares issued and outstanding	—		—
Common stock, par value $ 1 ; 200,000,000 shares authorized; 72,884,780 and 72,699,245 shares issued, respectively	72,885		72,699
Capital surplus	1,961,732		1,958,642
Retained earnings	1,927,489		1,853,428
Accumulated other comprehensive loss, net of tax	( 14,430 )		( 30,119 )
Treasury stock, at cost, 3,973,856 and 3,630,636 shares, respectively	( 123,874 )		( 103,128 )
Total shareholders’ equity	3,823,802		3,751,522
Total liabilities and shareholders’ equity	$	26,514,940	$	26,262,050

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Income and Comprehensive Income (unaudited)

(dollars in thousands, except per share data)


	Three Months Ended March 31,
	2025		2024
Interest income
Interest and fees on loans	$	304,168	$	303,393
Interest on taxable securities	18,492		13,092
Interest on nontaxable securities	329		330
Interest on deposits in other banks and federal funds sold	10,789		12,637
Total interest income	333,778		329,452

Interest expense
Interest on deposits	105,215		118,174
Interest on other borrowings	6,724		9,890
Total interest expense	111,939		128,064

Net interest income	221,839		201,388
Provision for loan losses	16,519		25,523
Provision for unfunded commitments	5,373		( 4,422 )
Provision for other credit losses	—		4
Provision for credit losses	21,892		21,105
Net interest income after provision for credit losses	199,947		180,283

Noninterest income
Service charges on deposit accounts	13,133		11,759
Mortgage banking activity	35,254		39,430
Other service charges, commissions and fees	1,109		1,202
Net gain (loss) on securities	40		( 7 )
Equipment finance activity	6,698		5,336
Other noninterest income	7,789		8,158
Total noninterest income	64,023		65,878

Noninterest expense
Salaries and employee benefits	86,615		82,930
Occupancy and equipment	10,677		12,885
Data processing and communications expenses	14,855		14,654
Credit resolution-related expenses	765		486
Advertising and marketing	2,883		2,467
Amortization of intangible assets	4,103		4,422

Loan servicing expense	7,823		9,439
Other noninterest expenses	23,313		21,428
Total noninterest expense	151,034		148,711

Income before income tax expense	112,936		97,450
Income tax expense	25,001		23,138
Net income	87,935		74,312

Other comprehensive income (loss)
Net unrealized holding gains (losses) arising during period on debt securities available-for-sale, net of tax expense (benefit) of $ 5,220 and $( 1,399 )	15,689		( 4,020 )



Total other comprehensive income (loss)	15,689		( 4,020 )
Comprehensive income	$	103,624	$	70,292

Basic earnings per common share	$	1.28	$	1.08
Diluted earnings per common share	$	1.27	$	1.08
Weighted average common shares outstanding
Basic	68,785,458		68,808,393
Diluted	69,030,331		69,014,116

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity (unaudited)

(dollars in thousands, except per share data)


	Three Months Ended March 31, 2025

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, December 31, 2024	72,699,245	$	72,699	$	1,958,642	$	1,853,428	$	( 30,119 )	3,630,636	$	( 103,128 )	$	3,751,522

Issuance of restricted shares	76,250	76		( 76 )		—		—		—	—		—
Forfeitures of restricted shares	( 13,619 )	( 13 )		( 404 )		—		—		—	—		( 417 )
Issuance of common shares pursuant to PSU agreements	122,904	123		( 123 )		—		—		—	—		—

Share-based compensation	—	—		3,693		—		—		—	—		3,693
Purchase of treasury shares	—	—		—		—		—		343,220	( 20,746 )		( 20,746 )
Net income	—	—		—		87,935		—		—	—		87,935
Dividends on common shares ($ 0.20 per share)	—	—		—		( 13,874 )		—		—	—		( 13,874 )


Other comprehensive income during the period	—	—		—		—		15,689		—	—		15,689
Balance, March 31, 2025	72,884,780	$	72,885	$	1,961,732	$	1,927,489	$	( 14,430 )	3,973,856	$	( 123,874 )	$	3,823,802


	Three Months Ended March 31, 2024

	Common Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Loss, Net of Tax		Treasury Stock			Total Shareholders' Equity
	Shares	Amount								Shares	Amount
Balance, December 31, 2023	72,516,079	$	72,516	$	1,945,385	$	1,539,957	$	( 35,939 )	3,462,738	$	( 95,172 )	$	3,426,747
Issuance of restricted shares	103,819	104		( 104 )		—		—		—	—		—

Issuance of common shares pursuant to PSU agreements	63,301	63		( 63 )		—		—		—	—		—


Share-based compensation	—	—		3,134		—		—		—	—		3,134
Purchase of treasury shares	—	—		—		—		—		105,198	( 4,998 )		( 4,998 )
Net income	—	—		—		74,312		—		—	—		74,312
Dividends on common shares ($ 0.15 per share)	—	—		—		( 10,437 )		—		—	—		( 10,437 )


Other comprehensive loss during the period	—	—		—		—		( 4,020 )		—	—		( 4,020 )
Balance, March 31, 2024	72,683,199	$	72,683	$	1,948,352	$	1,603,832	$	( 39,959 )	3,567,936	$	( 100,170 )	$	3,484,738

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2025		2024
Operating Activities
Net income	$	87,935	$	74,312
Adjustments reconciling net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net	8,358		9,436
Net (gains) losses on sale or disposal of premises and equipment	( 124 )		15

Provision for credit losses	21,892		21,105
Net write-downs and (gains) losses on sale of other real estate owned	( 9 )		( 177 )
Share-based compensation expense	3,276		3,134

Amortization of operating lease right of use assets	2,276		2,606
Provision for deferred taxes	( 2,443 )		( 644 )



Net (gain) loss on securities	( 40 )		7




Originations of mortgage loans held for sale	( 894,848 )		( 858,557 )
Payments received on mortgage loans held for sale	5,204		2,167
Proceeds from sales of mortgage loans held for sale	882,909		778,499
Net gains on mortgage loans held for sale	( 10,422 )		( 9,868 )
Originations of SBA loans	( 8,112 )		( 3,538 )
Proceeds from sales of SBA loans	8,638		2,432
Net gains on sale of SBA loans	( 526 )		( 223 )
Increase in cash surrender value of bank owned life insurance	( 3,297 )		( 2,568 )
Gain on bank owned life insurance proceeds	( 12 )		( 998 )


Gain on sale of mortgage servicing rights	14		—
Gain on debt redemption	—		( 169 )
Change attributable to other operating activities	16,183		1,609
Net cash provided by operating activities	116,852		18,580

Investing Activities

Purchases of debt securities available-for-sale	( 274,582 )		( 58,809 )
Purchases of debt securities held-to-maturity	( 9,979 )		( 6,321 )
Proceeds from maturities and paydowns of debt securities available-for-sale	24,355		42,835

Proceeds from maturities and paydowns of debt securities held-to-maturity	952		860
Net decrease (increase) in other investments	292		( 6,087 )
Net decrease (increase) in loans	17,002		( 345,953 )
Purchases of premises and equipment	( 2,687 )		( 3,437 )
Proceeds from sale of premises and equipment	150		214
Proceeds from sales of other real estate owned	2,746		6,661


Proceeds from bank owned life insurance	56,900		—



Net cash used in investing activities	( 184,851 )		( 370,037 )

			(Continued)

AMERIS BANCORP AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2025		2024
Financing Activities
Net increase in deposits	$	189,961	$	288,881

Proceeds from other borrowings	1,040,000		983,000
Repayment of other borrowings	( 1,055,060 )		( 861,105 )



Dividends paid - common stock	( 14,133 )		( 10,477 )
Purchase of treasury shares	( 20,746 )		( 4,894 )
Net cash provided by financing activities	140,022		395,405

Net increase in cash and cash equivalents	72,023		43,948
Cash and cash equivalents at beginning of period	1,220,377		1,167,304
Cash and cash equivalents at end of period	$	1,292,400	$	1,211,252

Supplemental Disclosures of Cash Flow Information
Cash paid (received) during the period for:
Interest	$	112,409	$	130,031
Income taxes	209		398
Loans transferred to other real estate owned	1,167		2,443
Loans transferred from loans held for sale to loans held for investment	348		6,088




Right-of-use assets obtained in exchange for new operating lease liabilities	369		982




Change in unrealized loss on securities available-for-sale, net of tax	15,689		( 4,020 )



			(Concluded)

See notes to unaudited consolidated financial statements.

AMERIS BANCORP AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

March 31, 2025

NOTE 1 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Nature of Business

Ameris Bancorp (the “Company” or “Ameris”) is a financial holding company headquartered in Atlanta, Georgia. Ameris conducts substantially all of its operations through its wholly owned banking subsidiary, Ameris Bank (the “Bank”). At March 31, 2025, the Bank operated 164 branches in select markets in Georgia, Alabama, Florida, North Carolina and South Carolina. Our business model capitalizes on the efficiencies of a large financial services company, while still providing the community with the personalized banking service expected by our customers. We manage our Bank through a balance of decentralized management responsibilities and efficient centralized operating systems, products and loan underwriting standards. The Company’s Board of Directors and senior managers establish corporate policy, strategy and administrative policies. Within our established guidelines and policies, the banker closest to the customer responds to the differing needs and demands of his or her unique market.

Basis of Presentation

The accompanying unaudited consolidated financial statements for Ameris have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statement presentation. The interim consolidated financial statements included herein are unaudited but reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In preparing the consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in banks and federal funds sold.

Reclassifications

Certain reclassifications of prior year amounts have been made to conform with the current year presentations. The reclassifications had no effect on net income or shareholders' equity as previously reported.

Accounting Standards Pending Adoption

ASU No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU No. 2023-09 provides for enhanced income tax disclosures by, among other things, requiring specific breakout of certain categories in the reconciliation of statutory income tax rate to effective rate, establishing a quantitative threshold for further breakout of reconciling items exceeding the threshold and not already required to be separately disclosed, requiring a qualitative description of the state and local jurisdictions making up the majority (greater than 50%) of the effect of state and local income taxes category, and provide further disaggregation of income taxes paid (net of refunds received) by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the guidance and it is not expected to have a significant impact on the Company's financial position or results of operations but will increase disclosures of income taxes.

ASU No. 2024-03 - Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures ("ASU 2024-03"). ASU No. 2024-03 requires additional disclosure of certain expense captions presented on the face of the Company’s income statement. ASU 2024-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and should be applied either on a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the effect that adoption of ASU 2024-03 will have on its disclosures.

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities available-for-sale along with gross unrealized gains and losses are summarized as follows:


(dollars in thousands) Securities available-for-sale	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2025
U.S. Treasuries	$	926,330	$	—	$	5,009	$	( 1,421 )	$	929,918
U.S. government-sponsored agencies	1,007		—		—		( 11 )		996
State, county and municipal securities	25,734		—		5		( 976 )		24,763
Corporate debt securities	10,946		( 69 )		—		( 435 )		10,442
SBA pool securities	66,747		—		47		( 1,084 )		65,710
Mortgage-backed securities	928,274		—		4,765		( 21,857 )		911,182
Total debt securities available-for-sale	$	1,959,038	$	( 69 )	$	9,826	$	( 25,784 )	$	1,943,011

December 31, 2024
U.S. Treasuries	$	800,860	$	—	$	669	$	( 5,065 )	$	796,464
U.S. government-sponsored agencies	1,010		—		—		( 16 )		994
State, county and municipal securities	25,802		—		8		( 1,070 )		24,740
Corporate debt securities	10,946		( 69 )		—		( 594 )		10,283
SBA pool securities	72,036		—		—		( 1,554 )		70,482
Mortgage-backed securities	797,542		—		1,494		( 30,739 )		768,297
Total debt securities available-for-sale	$	1,708,196	$	( 69 )	$	2,171	$	( 39,038 )	$	1,671,260

The amortized cost and estimated fair value of securities held-to-maturity along with gross unrealized gains and losses are summarized as follows:


(dollars in thousands) Securities held-to-maturity	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2025


State, county and municipal securities	$	33,597	$	—	$	( 6,960 )	$	26,637


Mortgage-backed securities	140,160		266		( 12,204 )		128,222
Total debt securities held-to-maturity	$	173,757	$	266	$	( 19,164 )	$	154,859



December 31, 2024


State, county and municipal securities	$	33,623	$	—	$	( 6,214 )	$	27,409


Mortgage-backed securities	131,054		80		( 14,515 )		116,619
Total debt securities held-to-maturity	$	164,677	$	80	$	( 20,729 )	$	144,028

The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of March 31, 2025, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying these securities may be called or repaid without penalty. Therefore, these securities are not included in the maturity categories in the following maturity summary:


	Available-for-Sale				Held-to-Maturity
( dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	309,115	$	308,492	$	—	$	—
Due from one year to five years	599,286		602,368		—		—
Due from five to ten years	114,430		113,835		—		—
Due after ten years	7,933		7,134		33,597		26,637
Mortgage-backed securities	928,274		911,182		140,160		128,222
	$	1,959,038	$	1,943,011	$	173,757	$	154,859

Securities with a carrying value of approximately $ 476.4 million and $ 449.2 million at March 31, 2025 and December 31, 2024, respectively, serve as collateral to secure public deposits and for other purposes required or permitted by law.

The following table shows the gross unrealized losses and estimated fair value of available-for-sale securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2025 and December 31, 2024:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands) Securities available-for-sale	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
March 31, 2025
U.S. Treasuries	$	125,476	$	( 88 )	$	329,568	$	( 1,333 )	$	455,044	$	( 1,421 )
U.S. government-sponsored agencies	—		—		996		( 11 )		996		( 11 )
State, county and municipal securities	512		( 6 )		15,959		( 970 )		16,471		( 976 )
Corporate debt securities	395		( 1 )		8,547		( 434 )		8,942		( 435 )
SBA pool securities	36		—		40,438		( 1,084 )		40,474		( 1,084 )
Mortgage-backed securities	87,618		( 707 )		494,731		( 21,150 )		582,349		( 21,857 )
Total debt securities available-for-sale	$	214,037	$	( 802 )	$	890,239	$	( 24,982 )	$	1,104,276	$	( 25,784 )

December 31, 2024
U.S. Treasuries	$	272,564	$	( 1,376 )	$	353,787	$	( 3,689 )	$	626,351	$	( 5,065 )
U.S. government sponsored agencies	—		—		994		( 16 )		994		( 16 )
State, county and municipal securities	3,953		( 17 )		15,940		( 1,053 )		19,893		( 1,070 )
Corporate debt securities	383		( 13 )		8,400		( 581 )		8,783		( 594 )
SBA pool securities	52,850		( 322 )		17,491		( 1,232 )		70,341		( 1,554 )
Mortgage-backed securities	177,438		( 1,968 )		481,617		( 28,771 )		659,055		( 30,739 )
Total debt securities available-for-sale	$	507,188	$	( 3,696 )	$	878,229	$	( 35,342 )	$	1,385,417	$	( 39,038 )

As of March 31, 2025, the Company’s available-for-sale security portfolio consisted of 417 securities, 356 of which were in an unrealized loss position. At March 31, 2025, the Company held 290 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At March 31, 2025, the Company held 30 U.S. Small Business Administration (“SBA”) pool securities, 16 state, county and municipal securities, six corporate securities, one U.S. government-sponsored agency security, and 13 U.S. Treasury securities that were in an unrealized loss position.

The following table shows the gross unrealized losses and estimated fair value of held-to-maturity securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2025 and December 31, 2024:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands) Securities held-to-maturity	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
March 31, 2025

State, county and municipal securities	$	—	$	—	$	26,637	$	( 6,960 )	$	26,637	$	( 6,960 )


Mortgage-backed securities	24,170		( 339 )		80,396		( 11,865 )		104,566		( 12,204 )
Total debt securities held-to-maturity	$	24,170	$	( 339 )	$	107,033	$	( 18,825 )	$	131,203	$	( 19,164 )

December 31, 2024

State, county and municipal securities	$	1,702	$	( 49 )	$	25,707	$	( 6,165 )	$	27,409	$	( 6,214 )


Mortgage-backed securities	22,710		( 848 )		79,366		( 13,667 )		102,076		( 14,515 )
Total debt securities held-to-maturity	$	24,412	$	( 897 )	$	105,073	$	( 19,832 )	$	129,485	$	( 20,729 )

As of March 31, 2025, the Company’s held-to-maturity security portfolio consisted of 41 securities, 32 of which were in an unrealized loss position. At March 31, 2025, the Company held 24 mortgage-backed securities and eight state, county and municipal securities that were in an unrealized loss position.

At March 31, 2025 and December 31, 2024, all of the Company’s mortgage-backed securities were obligations of government-sponsored agencies.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluate available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation, to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these available-for-sale investment securities at an unrealized loss position at March 31, 2025, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on the results of management's review, at March 31, 2025, management determined that $ 69,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $ 25.8 million in unrealized loss was determined to be from factors other than credit.


(dollars in thousands)	Three Months Ended March 31,
Allowance for credit losses	2025		2024
Beginning balance	$	69	$	69
Provision for other credit losses	—		4
Ending balance	$	69	$	73

The Company's held-to-maturity securities have no expected credit losses, and no related allowance for credit losses has been established.

Total net gain (loss) on securities reported on the consolidated statements of income and comprehensive income is comprised of the following for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
(dollars in thousands)	2025		2024

Unrealized holding gains (losses) on equity securities	$	40	$	( 7 )

Net gain (loss) on securities	$	40	$	( 7 )

NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:


(dollars in thousands)	March 31, 2025		December 31, 2024
Commercial and industrial	$	3,075,971	$	2,953,135
Consumer	213,902		221,735

Mortgage warehouse	891,412		965,053
Municipal	429,227		441,408
Premium finance	1,176,309		1,155,614
Real estate – construction and development	1,842,431		1,998,506
Real estate – commercial and farmland	8,574,626		8,445,958
Real estate – residential	4,502,766		4,558,497
Loans, net of unearned income	$	20,706,644	$	20,739,906

Accrued interest receivable on loans totaling $ 73.4 million and $ 77.3 million at March 31, 2025 and December 31, 2024, respectively, is reported in other assets on the consolidated balance sheets. The Company had no recorded allowance for credit losses related to accrued interest on loans at both March 31, 2025 and December 31, 2024.

Nonaccrual and Past-Due Loans

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged to interest income. Interest on loans that are classified as nonaccrual is subsequently applied to principal until the loans are returned to accrual status. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment, approved by the Company’s Chief Credit Officer. Past-due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.

The following table presents an analysis of loans accounted for on a nonaccrual basis:


(dollars in thousands)	March 31, 2025		December 31, 2024
Commercial and industrial	$	10,267	$	11,875
Consumer	826		782




Real estate – construction and development	2,921		3,718
Real estate – commercial and farmland	9,976		11,960
Real estate – residential (1)	75,680		73,883
	$	99,670	$	102,218

(1) Included in real estate - residential were $ 13.4 million and $ 12.0 million of serviced GNMA-guaranteed nonaccrual loans at March 31, 2025 and December 31, 2024, respectively.

Interest income recognized on nonaccrual loans during the three months ended March 31, 2025 and 2024 was not material.

The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:


(dollars in thousands)	March 31, 2025		December 31, 2024
Commercial and industrial	$	3,740	$	3,866





Real estate – construction and development	1,513		2,624
Real estate – commercial and farmland	7,460		9,357
Real estate – residential	37,392		36,512
	$	50,105	$	52,359

The following table presents an analysis of past-due loans as of March 31, 2025 and December 31, 2024:


(dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
March 31, 2025
Commercial and industrial	$	12,901	$	6,429	$	12,413	$	31,743	$	3,044,228	$	3,075,971	$	4,778
Consumer	1,124		483		317		1,924		211,978		213,902		—

Mortgage warehouse	—		—		—		—		891,412		891,412		—
Municipal	—		—		—		—		429,227		429,227		—
Premium finance	12,085		6,286		10,152		28,523		1,147,786		1,176,309		10,152
Real estate – construction and development	5,803		1,076		2,645		9,524		1,832,907		1,842,431		—
Real estate – commercial and farmland	7,389		973		6,653		15,015		8,559,611		8,574,626		—
Real estate – residential	36,117		19,431		72,844		128,392		4,374,374		4,502,766		—
Total	$	75,419	$	34,678	$	105,024	$	215,121	$	20,491,523	$	20,706,644	$	14,930

December 31, 2024
Commercial and industrial	$	12,300	$	5,908	$	12,849	$	31,057	$	2,922,078	$	2,953,135	$	5,159
Consumer	2,672		557		319		3,548		218,187		221,735		—

Mortgage warehouse	—		—		—		—		965,053		965,053		—
Municipal	—		—		—		—		441,408		441,408		—
Premium finance	15,068		6,315		12,485		33,868		1,121,746		1,155,614		12,485
Real estate – construction and development	23,102		461		3,786		27,349		1,971,157		1,998,506		89
Real estate – commercial and farmland	6,787		2,435		5,980		15,202		8,430,756		8,445,958		—
Real estate – residential	47,020		15,864		71,070		133,954		4,424,543		4,558,497		—
Total	$	106,949	$	31,540	$	106,489	$	244,978	$	20,494,928	$	20,739,906	$	17,733

Collateral-Dependent Loans

Collateral-dependent loans are loans where repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. If the Company determines that foreclosure is probable, these loans are written down to the lower of cost or fair value of the collateral less estimated costs to sell. When repayment is expected to be from the operation of the collateral, the allowance for credit losses is calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. The Company may, in the alternative, measure the allowance for credit loss as the amount by which the amortized cost basis of the financial asset exceeds the estimated fair value of the collateral.

The following table presents an analysis of individually evaluated collateral-dependent financial assets and related allowance for credit losses:


	March 31, 2025				December 31, 2024
(dollars in thousands)	Balance		Allowance for Credit Losses		Balance		Allowance for Credit Losses
Commercial and industrial	$	7,948	$	839	$	9,451	$	1,072




Premium finance	1,296		7		2,165		130
Real estate – construction and development	1,859		101		2,979		110
Real estate – commercial and farmland	8,855		60		10,882		149
Real estate – residential	25,039		2,210		23,983		2,302
	$	44,997	$	3,217	$	49,460	$	3,763

Credit Quality Indicators

The Company uses a five category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:

Pass – This grade represents acceptable credit risk to the Company based on factors including creditworthiness of the borrower, current performance and nature of the collateral.

Other Assets Especially Mentioned ("Special Mention") – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard – This grade represents loans which are inadequately protected by the current credit worthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

The following tables present the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands) as of March 31, 2025 and December 31, 2024. Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the tables below. The Company had an immaterial amount of revolving loans which converted to term loans and the amortized cost basis of those loans is included in the applicable origination year. There were no loans risk graded doubtful or loss at March 31, 2025 or December 31, 2024.


As of March 31, 2025	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2025		2024		2023		2022		2021		Prior				Total

Commercial and Industrial
Risk Grade:
Pass	$	345,549	$	806,864	$	552,584	$	498,712	$	226,602	$	100,128	$	514,453		$	3,044,892
Special mention	162		896		26		1,554		2,137		1,490		103			6,368
Substandard	—		795		1,697		3,917		6,499		5,469		6,334			24,711


Total commercial and industrial	$	345,711	$	808,555	$	554,307	$	504,183	$	235,238	$	107,087	$	520,890		$	3,075,971

Current-period gross charge offs	$	118	$	2,348	$	3,523	$	4,376	$	1,303	$	191	$	—		$	11,859
Consumer
Risk Grade:
Pass	$	45,757	$	20,529	$	16,044	$	7,138	$	1,875	$	41,959	$	79,059		$	212,361
Special mention	—		8		—		12		—		63		—			83
Substandard	5		212		192		74		56		780		139			1,458


Total consumer	$	45,762	$	20,749	$	16,236	$	7,224	$	1,931	$	42,802	$	79,198		$	213,902

Current-period gross charge offs	$	—	$	158	$	154	$	57	$	22	$	549	$	—		$	940










Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	890,508		$	890,508
Special mention	—		—		—		—		—		—		904			904



Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	891,412		$	891,412

Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Municipal
Risk Grade:
Pass	$	1,508	$	18,158	$	9,039	$	44,286	$	36,341	$	319,269	$	626		$	429,227




Total municipal	$	1,508	$	18,158	$	9,039	$	44,286	$	36,341	$	319,269	$	626		$	429,227

Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Premium Finance
Risk Grade:
Pass	$	579,662	$	585,673	$	789	$	—	$	34	$	—	$	—		$	1,166,158

Substandard	10		10,100		41		—		—		—		—			10,151


Total premium finance	$	579,672	$	595,773	$	830	$	—	$	34	$	—	$	—		$	1,176,309

Current-period gross charge offs	$	2	$	2,145	$	181	$	1	$	—	$	—	$	—		$	2,329


As of March 31, 2025	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2025		2024		2023		2022		2021		Prior				Total

Real Estate – Construction and Development
Risk Grade:
Pass	$	113,966	$	513,051	$	209,360	$	715,221	$	177,903	$	44,478	$	65,127		$	1,839,106
Special mention	—		—		—		157		—		265		—			422
Substandard	—		—		419		1,648		336		500		—			2,903


Total real estate – construction and development	$	113,966	$	513,051	$	209,779	$	717,026	$	178,239	$	45,243	$	65,127		$	1,842,431

Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	119,012	$	314,868	$	442,501	$	2,552,724	$	2,172,750	$	2,762,827	$	103,233		$	8,467,915
Special mention	—		—		1,207		4,741		15,184		41,298		—			62,430
Substandard	—		—		1,546		17,448		5,516		19,771		—			44,281


Total real estate – commercial and farmland	$	119,012	$	314,868	$	445,254	$	2,574,913	$	2,193,450	$	2,823,896	$	103,233		$	8,574,626

Current-period gross charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Real Estate - Residential
Risk Grade:
Pass	$	56,998	$	172,625	$	601,770	$	1,264,239	$	1,027,564	$	986,354	$	308,779		$	4,418,329
Special mention	—		—		10		51		1,162		1,815		538			3,576
Substandard	—		2,060		13,441		15,629		9,180		32,537		8,014			80,861


Total real estate - residential	$	56,998	$	174,685	$	615,221	$	1,279,919	$	1,037,906	$	1,020,706	$	317,331		$	4,502,766

Current-period gross charge offs	$	—	$	—	$	110	$	—	$	—	$	146	$	—		$	256
Total Loans
Risk Grade:
Pass	$	1,262,452	$	2,431,768	$	1,832,087	$	5,082,320	$	3,643,069	$	4,255,015	$	1,961,785		$	20,468,496
Special mention	162		904		1,243		6,515		18,483		44,931		1,545			73,783
Substandard	15		13,167		17,336		38,716		21,587		59,057		14,487			164,365


Total loans	$	1,262,629	$	2,445,839	$	1,850,666	$	5,127,551	$	3,683,139	$	4,359,003	$	1,977,817		$	20,706,644
Total current-period gross charge offs	$	120	$	4,651	$	3,968	$	4,434	$	1,325	$	886	$	—		$	15,384


As of December 31, 2024	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2024		2023		2022		2021		2020		Prior				Total

Commercial and Industrial
Risk Grade:
Pass	$	919,301	$	594,485	$	523,513	$	246,036	$	72,397	$	46,358	$	512,778		$	2,914,868
Special mention	892		28		1,938		1,311		777		2,960		3,319			11,225
Substandard	885		2,214		4,384		7,222		655		4,555		7,127			27,042


Total commercial and industrial	$	921,078	$	596,727	$	529,835	$	254,569	$	73,829	$	53,873	$	523,224		$	2,953,135

Consumer
Risk Grade:
Pass	$	58,113	$	18,575	$	8,684	$	2,371	$	17,405	$	31,962	$	83,143		$	220,253
Special mention	8		—		14		—		9		61		—			92
Substandard	113		206		81		48		179		648		115			1,390


Total consumer	$	58,234	$	18,781	$	8,779	$	2,419	$	17,593	$	32,671	$	83,258		$	221,735










Mortgage Warehouse
Risk Grade:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	965,053		$	965,053




Total mortgage warehouse	$	—	$	—	$	—	$	—	$	—	$	—	$	965,053		$	965,053

Municipal
Risk Grade:
Pass	$	20,133	$	9,094	$	44,482	$	36,468	$	139,046	$	191,559	$	626		$	441,408




Total municipal	$	20,133	$	9,094	$	44,482	$	36,468	$	139,046	$	191,559	$	626		$	441,408

Premium Finance
Risk Grade:
Pass	$	1,141,370	$	1,648	$	28	$	83	$	—	$	—	$	—		$	1,143,129

Substandard	12,001		483		1		—		—		—		—			12,485


Total premium finance	$	1,153,371	$	2,131	$	29	$	83	$	—	$	—	$	—		$	1,155,614

Real Estate – Construction and Development
Risk Grade:
Pass	$	523,704	$	245,526	$	835,742	$	245,091	$	3,619	$	73,816	$	66,449		$	1,993,947
Special mention	—		—		160		65		—		275		—			500
Substandard	—		151		3,020		337		—		551		—			4,059


Total real estate – construction and development	$	523,704	$	245,677	$	838,922	$	245,493	$	3,619	$	74,642	$	66,449		$	1,998,506

Real Estate – Commercial and Farmland
Risk Grade:
Pass	$	330,472	$	456,486	$	2,373,426	$	2,173,060	$	990,712	$	1,866,277	$	113,916		$	8,304,349
Special mention	—		—		3,069		14,844		14,706		63,717		—			96,336
Substandard	—		1,551		16,979		3,855		12,730		10,158		—			45,273


Total real estate – commercial and farmland	$	330,472	$	458,037	$	2,393,474	$	2,191,759	$	1,018,148	$	1,940,152	$	113,916		$	8,445,958


As of December 31, 2024	Term Loans by Origination Year												Revolving Loans Amortized Cost Basis
	2024		2023		2022		2021		2020		Prior				Total

Real Estate - Residential
Risk Grade:
Pass	$	193,939	$	628,098	$	1,291,666	$	1,046,164	$	460,887	$	561,386	$	292,193		$	4,474,333
Special mention	—		10		52		16		157		1,375		1,173			2,783
Substandard	2,718		9,880		14,040		9,885		10,603		26,236		8,019			81,381


Total real estate - residential	$	196,657	$	637,988	$	1,305,758	$	1,056,065	$	471,647	$	588,997	$	301,385		$	4,558,497

Total Loans
Risk Grade:
Pass	$	3,187,032	$	1,953,912	$	5,077,541	$	3,749,273	$	1,684,066	$	2,771,358	$	2,034,158		$	20,457,340
Special mention	900		38		5,233		16,236		15,649		68,388		4,492			110,936
Substandard	15,717		14,485		38,505		21,347		24,167		42,148		15,261			171,630


Total loans	$	3,203,649	$	1,968,435	$	5,121,279	$	3,786,856	$	1,723,882	$	2,881,894	$	2,053,911		$	20,739,906

Allowance for Credit Losses on Loans

The allowance for credit losses represents an allowance for expected losses over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged off in accordance with the Federal Financial Institutions Examination Council’s (the “FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of Loss, the uncollectible portion is charged off.

The Company’s methodologies for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of loans with similar risk characteristics for which the historical loss experience was observed. The Company utilizes a one year reasonable and supportable forecast period. The Company’s methodologies revert back to historical loss information on a straight-line basis over four quarters after the reasonable and supportable forecast period.

During the three months ended March 31, 2025, the allowance for credit losses increased due to the current economic forecast. The allowance for credit losses was determined at March 31, 2025 using an equal weighting of three economic forecasts from Moody's in order to align with management's best estimate over the reasonable and supportable forecast period. The Moody's baseline scenario, the downside 75th percentile S-2, and the downside 90th percentile S-3 scenario were equally weighted. The allowance for credit losses was determined at December 31, 2024 using the Moody's baseline scenario economic forecast weighted at 75 % and the downside 75th percentile S-2 scenario was weighted at 25 %. The current forecast reflects, among other things, increases in unemployment and multifamily vacancies, along with a decline in commercial real estate and home price indices compared with the forecast at December 31, 2024.

The following tables detail activity and end of period balances in the allowance for credit losses by portfolio segment for the periods indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


Three Months Ended March 31, 2025

(dollars in thousands)	Commercial and Industrial		Consumer		Mortgage Warehouse		Municipal		Premium Finance		Real Estate – Construction and Development
Balance, December 31, 2024	$	87,242	$	7,327	$	2,262	$	58	$	736	$	60,421


Provision for loan losses	3,388		( 537 )		( 438 )		( 1 )		195		8,661
Loans charged off	( 11,859 )		( 940 )		—		—		( 2,329 )		—
Recoveries of loans previously charged off	3,850		295		—		—		2,080		4
Balance, March 31, 2025	$	82,621	$	6,145	$	1,824	$	57	$	682	$	69,086

	Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2024	$	118,377	$	61,661	$	338,084


Provision for loan losses	( 20 )		5,271		16,519
Loans charged off	—		( 256 )		( 15,384 )
Recoveries of loans previously charged off	35		72		6,336
Balance, March 31, 2025	$	118,392	$	66,748	$	345,555


Three Months Ended March 31, 2024

(dollars in thousands)	Commercial and Industrial		Consumer		Mortgage Warehouse		Municipal		Premium Finance		Real Estate – Construction and Development
Balance, December 31, 2023	$	64,053	$	3,952	$	1,678	$	345	$	602	$	61,017


Provision for loan losses	12,147		766		145		( 282 )		( 431 )		11,148
Loans charged off	( 15,295 )		( 1,156 )		—		—		( 2,006 )		—
Recoveries of loans previously charged off	2,899		377		—		—		2,451		3
Balance, March 31, 2024	$	63,804	$	3,939	$	1,823	$	63	$	616	$	72,168

	Real Estate – Commercial and Farmland		Real Estate – Residential		Total
Balance, December 31, 2023	$	110,097	$	65,356	$	307,100


Provision for loan losses	474		1,556		25,523
Loans charged off	—		—		( 18,457 )
Recoveries of loans previously charged off	85		42		5,857
Balance, March 31, 2024	$	110,656	$	66,954	$	320,023

Modifications to Borrowers Experiencing Financial Difficulty

The Company periodically provides modifications to borrowers experiencing financial difficulty. These modifications include either payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan.

The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the three months ended March 31, 2025, and 2024:


Three Months Ended March 31, 2025
(dollars in thousands)	Payment Deferral		Term Extension		Combination Payment Deferral and Term Extension		Combination of Term Extension and Rate Reduction		Total		Percentage of Total Class of Financial Receivable







Real estate – commercial and farmland	$	2,420	$	2,764	$	9,361	$	—	$	14,545	0.2	%
Real estate – residential	563		1,336		—		683		2,582		0.1	%
Total	$	2,983	$	4,100	$	9,361	$	683	$	17,127	0.1	%


Three Months Ended March 31, 2024
(dollars in thousands)	Term Extension		Combination of Term Extension and Rate Reduction		Total		Percentage of Total Class of Financial Receivable








Real estate – residential	$	3,519	$	534	$	4,053	0.1	%
Total	$	3,519	$	534	$	4,053	—	%

The Company had unfunded commitments to borrowers experiencing financial difficulty for which the Company has modified their loans of $ 2.0 million and $ 179,000 at March 31, 2025 and December 31, 2024, respectively.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025, and 2024, respectively:


Three Months Ended March 31, 2025


Term Extension
Loan Type						Financial Effect
Real estate – commercial and farmland						Maturity dates were extended for a weighted average of 15 months
Real estate - residential						Maturity dates were extended for a weighted average of 109 months


Payment Deferral
Loan Type						Financial Effect
Real estate – commercial and farmland						Payments were moved to interest only for 9 months
Real estate - residential						Payments were deferred for 10 months


Combination Payment Deferral and Term Extension
Loan Type						Financial Effect
Real estate – commercial and farmland						Maturity date was extended 3 months and moved to interest only payments for 12 months


Combination of Term Extension and Rate Reduction
Loan Type						Financial Effect
Real estate - residential						Maturity date was extended for a weighted average 61 months and rate was reduced by a weighted average 0.91 %


Three Months Ended March 31, 2024


Term Extension
Loan Type						Financial Effect


Real estate - residential						Maturity dates were extended for 76 months.


Combination of Term Extension and Rate Reduction
Loan Type						Financial Effect
Real estate – residential						Maturity date was extended by 134 months and rate was reduced by 1.50 %.

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:


As of March 31, 2025
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total
Commercial and industrial	$	572	$	—	$	—	$	—	$	572






Real estate – commercial and farmland	13,404		1,739		—		—		15,143
Real estate – residential	12,656		1,246		1,565		3,293		18,760
Total	$	26,632	$	2,985	$	1,565	$	3,293	$	34,475


As of March 31, 2024
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total
Commercial and industrial	$	5,029	$	—	$	—	$	—	$	5,029






Real estate – commercial and farmland	5,875		—		—		1,115		6,990
Real estate – residential	8,547		648		235		1,980		11,410
Total	$	19,451	$	648	$	235	$	3,095	$	23,429

The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended March 31, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty.


(dollars in thousands)	Interest Rate Reduction		Term Extension		Payment Deferral		Combination of Term Extension and Rate Reduction		Total







Real estate – commercial and farmland	$	—	$	1,738	$	—	$	—	$	1,738
Real estate – residential	499		3,185		563		1,857		6,104
Total	$	499	$	4,923	$	563	$	1,857	$	7,842

The following table provides the amortized cost basis of financing receivables that had a payment default during three months ended March 31, 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty.


(dollars in thousands)	Term Extension		Payment Deferral		Combination of Term Extension and Rate Reduction		Total







Real estate – commercial and farmland	$	—	$	1,115	$	—	$	1,115
Real estate – residential	2,215		191		456		2,862
Total	$	2,215	$	1,306	$	456	$	3,977

NOTE 4 – OTHER BORROWINGS

Other borrowings consist of the following:


(dollars in thousands)	March 31, 2025		December 31, 2024
FHLB borrowings:
Fixed Rate Advance due January 21, 2025; fixed interest rate of 4.430 %	$	—	$	50,000







Fixed Rate Advance due March 3, 2025; fixed interest rate of 1.208 %	—		15,000
Fixed Rate Advance due April 25, 2025; fixed interest rate of 4.420 %	50,000		—
Fixed Rate Advance due March 2, 2027; fixed interest rate of 1.445 %	15,000		15,000
Fixed Rate Advance due March 4, 2030; fixed interest rate of 1.606 %	15,000		15,000
Fixed Rate Advance due December 9, 2030; fixed interest rate of 4.550 %	1,363		1,366
Fixed Rate Advance due December 9, 2030; fixed interest rate of 4.550 %	944		946
Principal Reducing Advance due September 29, 2031; fixed interest rate of 3.095 %	947		984

Subordinated notes payable:



Subordinated notes payable due May 31, 2030 net of unaccreted purchase accounting fair value adjustment of $ 623 and $ 653 , respectively; fixed interest rate of 5.875 % through May 31, 2025; variable interest rate thereafter at three-month SOFR plus 3.63 %	74,623		74,653
Subordinated notes payable due October 1, 2030 net of unamortized debt issuance cost of $ 1,110 and $ 1,161 , respectively; fixed interest rate of 3.875 % through September 30, 2025; variable interest rate thereafter at three-month SOFR plus 3.753 %	108,890		108,839





Other Debt:

Advance from correspondent bank due December 1, 2025; secured by a loan receivable; variable interest rate at one-month SOFR plus 2.65 %	9,977		10,000
	$	276,744	$	291,788

The advances from the FHLB are collateralized by a blanket lien on all eligible first mortgage loans and other specific loans in addition to FHLB stock. At March 31, 2025, $ 3.52 billion was available for borrowing on lines with the FHLB.

As of March 31, 2025, the Bank maintained credit arrangements with various financial institutions to purchase federal funds up to $ 92.0 million.

The Bank also participates in the Federal Reserve discount window borrowings program. At March 31, 2025, the Bank had $ 2.87 billion of loans pledged at the Federal Reserve discount window and had $ 2.29 billion available for borrowing.

NOTE 5 – ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income (loss) for the Company consists of changes in net unrealized gains and losses on debt securities available-for-sale. The reclassification for gains (losses) on sale of securities included in net income is recorded in net gain (loss) on securities in the consolidated statement of income and comprehensive income.

The following table presents a summary of the accumulated other comprehensive income (loss) balances, net of tax, for the periods indicated:


(dollars in thousands)	Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2025
Balance, December 31, 2024	$	( 30,119 )

Unrealized gain on debt securities available-for-sale, net of tax	15,689
Balance, March 31, 2025	$	( 14,430 )

Three Months Ended March 31, 2024
Balance, December 31, 2023	$	( 35,939 )

Unrealized loss on debt securities available-for-sale, net of tax	( 4,020 )
Balance, March 31, 2024	$	( 39,959 )

NOTE 6 – WEIGHTED AVERAGE SHARES OUTSTANDING

Earnings per share have been computed based on the following weighted average number of common shares outstanding:


	Three Months Ended March 31,
	2025	2024
Average common shares outstanding	68,785,458	68,808,393
Common share equivalents:

Nonvested restricted share grants	135,339	126,032
Performance stock units	109,534	79,691
Average common shares outstanding, assuming dilution	69,030,331	69,014,116

There were 141,026 anti-dilutive securities excluded from the computation of earnings per share for the three months ended March 31, 2025. There were no anti-dilutive securities excluded from the computation of earnings per share for the three months ended March 31, 2024

NOTE 7 – FAIR VALUE MEASURES

The fair value of an asset or liability is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair value is based on discounted cash flows or other valuation techniques. These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. The accounting standard for disclosures about the fair value measures excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The Company's loans held for sale under the fair value option are comprised of the following:


(dollars in thousands)	March 31, 2025		December 31, 2024
Mortgage loans held for sale	$	545,388	$	528,599

Total loans held for sale	$	545,388	$	528,599

The Company has elected to record mortgage loans held for sale at fair value in order to eliminate the complexities and inherent difficulties of achieving hedge accounting and to better align reported results with the underlying economic changes in value of the loans and related hedge instruments. This election impacts the timing and recognition of origination fees and costs, as well as servicing value, which are now recognized in earnings at the time of origination. Interest income on mortgage loans held for sale is recorded on an accrual basis in the consolidated statements of income and comprehensive income under the heading interest income – interest and fees on loans. The servicing value is included in the fair value of the interest rate lock commitments (“IRLCs”) with borrowers. The mark to market adjustments related to mortgage loans held for sale and the associated economic hedges are captured in mortgage banking activities.

A net gain of $ 7.3 million and a net loss of $ 413,000 resulting from changes in fair value of these mortgage loans were recorded in income during the three months ended March 31, 2025 and 2024, respectively. A net loss of $ 4.7 million and a net gain of $ 6.9 million resulting from changes in the fair value of the related derivative financial instruments used to hedge exposure to the market-related risks associated with these mortgage loans were recorded in income during the three months ended March 31, 2025 and 2024, respectively. The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal.

The following table summarizes the difference between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2025 and December 31, 2024:


(dollars in thousands)	March 31, 2025		December 31, 2024
Aggregate fair value of mortgage loans held for sale	$	545,388	$	528,599
Aggregate unpaid principal balance of mortgage loans held for sale	534,583		525,071
Past-due loans of 90 days or more	467		—
Nonaccrual loans	467		—
Unpaid principal balance of nonaccrual loans	462		—

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale, loans held for sale under the fair value option and derivative financial instruments are recorded at fair value on a recurring basis. From time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral-dependent loans, loan servicing rights and OREO. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments.

The following table presents the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of March 31, 2025 and December 31, 2024:


	Recurring Basis Fair Value Measurements
	March 31, 2025
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Debt securities available-for-sale:
U.S. Treasuries	$	929,918	$	929,918	$	—	$	—
U.S. government sponsored agencies	996		—		996		—
State, county and municipal securities	24,763		—		24,763		—
Corporate debt securities	10,442		—		9,392		1,050
SBA pool securities	65,710		—		65,710		—
Mortgage-backed securities	911,182		—		911,182		—
Loans held for sale	545,388		—		545,388		—
Derivative financial instruments	6,303		—		6,303		—
Mortgage banking derivative instruments	5,416		—		5,416		—
Total recurring assets at fair value	$	2,500,118	$	929,918	$	1,569,150	$	1,050
Financial liabilities:
Derivative financial instruments	$	6,439	$	—	$	6,439	$	—
Risk participation agreement	22		—		22		—
Mortgage banking derivative instruments	2,867		—		2,867		—
Total recurring liabilities at fair value	$	9,328	$	—	$	9,328	$	—


	Recurring Basis Fair Value Measurements
	December 31, 2024
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Debt securities available-for-sale:
U.S. Treasuries	$	796,464	$	796,464	$	—	$	—
U.S. government sponsored agencies	994		—		994		—
State, county and municipal securities	24,740		—		24,740		—
Corporate debt securities	10,283		—		9,263		1,020
SBA pool securities	70,482		—		70,482		—
Mortgage-backed securities	768,297		—		768,297		—
Loans held for sale	528,599		—		528,599		—
Derivative financial instruments	8,717		—		8,717		—
Mortgage banking derivative instruments	7,299		—		7,299		—
Total recurring assets at fair value	$	2,215,875	$	796,464	$	1,418,391	$	1,020
Financial liabilities:
Derivative financial instruments	$	8,718	$	—	$	8,718	$	—
Risk participation agreement	13		—		13		—
Total recurring liabilities at fair value	$	8,731	$	—	$	8,731	$	—

The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy as of March 31, 2025 and December 31, 2024:


	Nonrecurring Basis Fair Value Measurements
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3
March 31, 2025
Collateral-dependent loans	$	41,780	$	—	$	—	$	41,780
Other real estate owned	276		—		—		276


Total nonrecurring assets at fair value	$	42,056	$	—	$	—	$	42,056

December 31, 2024
Collateral-dependent loans	$	45,697	$	—	$	—	$	45,697
Other real estate owned	1,010		—		—		1,010


Total nonrecurring assets at fair value	$	46,707	$	—	$	—	$	46,707

The inputs used to determine estimated fair value of collateral-dependent loans include market conditions, loan term, underlying collateral characteristics and discount rates. The inputs used to determine fair value of OREO include market conditions, estimated marketing period or holding period, underlying collateral characteristics and discount rates.

For the three months ended March 31, 2025 and the year ended December 31, 2024, there were no changes in the methods and significant assumptions used to estimate fair value.

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets:


(dollars in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range of Discounts	Weighted Average Discount
March 31, 2025
Recurring:
Debt securities available-for-sale	$	1,050	Discounted cash flows	Probability of Default	10.2 %	10.2 %
				Loss Given Default	45 %	45 %
Nonrecurring:
Collateral-dependent loans	$	41,780	Third-party appraisals and discounted cash flows	Collateral discounts and discount rates	16 % - 51 %	29 %
Other real estate owned	$	276	Third-party appraisals and sales contracts	Collateral discounts and estimated costs to sell	15 %	15 %



December 31, 2024
Recurring:
Debt securities available-for-sale	$	1,020	Discounted cash flows	Probability of Default	10.3 %	10.3 %
				Loss Given Default	45 %	45 %
Nonrecurring:
Collateral-dependent loans	$	45,697	Third-party appraisals and discounted cash flows	Collateral discounts and discount rates	15 % - 60 %	30 %
Other real estate owned	$	1,010	Third-party appraisals and sales contracts	Collateral discounts and estimated costs to sell	15 % - 44 %	27 %

The carrying amount and estimated fair value of the Company’s financial instruments, not shown elsewhere in these financial statements, were as follows:


			Fair Value Measurements
			March 31, 2025
(dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	253,289	$	253,289	$	—	$	—	$	253,289
Interest-bearing deposits in banks	1,039,111		1,039,111		—		—		1,039,111

Debt securities held-to-maturity	173,757		—		154,859		—		154,859

Loans, net	20,319,309		—		—		19,900,724		19,900,724

Financial liabilities:
Deposits	21,912,409		—		21,911,054		—		21,911,054

Other borrowings	276,744		—		272,495		—		272,495
Subordinated deferrable interest debentures	132,807		—		141,372		—		141,372


			Fair Value Measurements
			December 31, 2024
(dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	244,980	$	244,980	$	—	$	—	$	244,980
Interest-bearing deposits in banks	975,397		975,397		—		—		975,397

Debt securities held-to-maturity	164,677		—		144,028		—		144,028
Loans, net	20,356,125		—		—		19,882,553		19,882,553

Financial liabilities:
Deposits	21,722,448		—		21,721,421		—		21,721,421

Other borrowings	291,788		—		291,213		—		291,213
Subordinated deferrable interest debentures	132,309		—		142,202		—		142,202

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Loan Commitments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. They involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in the Company’s balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. A summary of the Company’s commitments is as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024
Commitments to extend credit	$	3,606,465	$	3,578,227
Unused home equity lines of credit	436,414		437,304
Financial standby letters of credit	42,306		39,507
Mortgage interest rate lock commitments	347,944		192,528

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. These commitments, predominantly at variable interest rates, generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral is required in instances which the Company deems necessary. The Company has not been required to perform on any material financial standby letters of credit and the Company has not incurred any losses on financial standby letters of credit for the three months ended March 31, 2025 and the year ended December 31, 2024.

The Company maintains an allowance for credit losses on unfunded commitments which is recorded in other liabilities on the consolidated balance sheets. The following table presents activity in the allowance for unfunded commitments for the periods presented:


	Three Months Ended March 31,
(dollars in thousands)	2025		2024
Balance at beginning of period	$	30,510	$	41,558


Provision for unfunded commitments	5,373		( 4,422 )
Balance at end of period	$	35,883	$	37,136

Other Commitments

As of March 31, 2025, letters of credit issued by the FHLB totaling $ 1.3 billion were used to guarantee the Bank’s performance related to a portion of its public fund deposit balances.

Litigation and Regulatory Contingencies

From time to time, the Company and the Bank are subject to various legal proceedings, claims and disputes that arise in the ordinary course of business. The Company and the Bank are also subject to regulatory examinations, information gathering requests, inquiries and investigations in the ordinary course of business. Based on the Company’s current knowledge and advice of counsel, management presently does not believe that the liabilities arising from these legal and regulatory matters will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. However, it is possible that the ultimate resolution of these legal and regulatory matters could have a material adverse effect on the Company’s results of operations and financial condition for any particular period.

The Company’s management and its legal counsel periodically assess contingent liabilities, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

NOTE 9 – SEGMENT REPORTING

The Company has the following four reportable segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division and Premium Finance Division. The Banking Division derives its revenues from the delivery of full-service financial services, including commercial loans, consumer loans and deposit accounts. The Retail Mortgage Division derives its revenues from the origination, sales and servicing of one-to-four family residential mortgage loans. The Warehouse Lending Division derives its revenues from the origination and servicing of warehouse lines to other businesses that are secured by underlying one-to-four family residential mortgage loans. The Premium Finance Division derives its revenues from the origination and servicing of commercial insurance premium finance loans.

The Banking, Retail Mortgage, Warehouse Lending and Premium Finance Divisions are managed as separate business units because of the different products and services they provide. The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material intersegment sales or transfers.

The chief operating decision maker (CODM) within the Company is the Chief Executive Officer, who also serves as a member of the Board of Directors and as Chair of the Executive Committee of the Board. The CODM regularly receives a package of period-end reports and works with management in making necessary operating decisions, including the allocation of resources among the Company's segments. This includes evaluation of performance as measured by net income for each segment. Each segment that is reported has strategic planning, budgeting, and forecasting sessions at least annually with the CODM through executive management.

The following tables present selected financial information with respect to the Company’s reportable business segments for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31, 2025
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		Premium Finance Division		Total
Interest income	$	233,319	$	57,932	$	15,200	$	27,327	$	333,778
Interest expense	49,106		36,088		9,298		17,447		111,939
Net interest income	184,213		21,844		5,902		9,880		221,839
Provision for credit losses	16,420		5,191		( 175 )		456		21,892
Noninterest income	28,724		34,729		554		16		64,023
Noninterest expense
Salaries and employee benefits	62,716		20,995		552		2,352		86,615
Occupancy and equipment	9,804		829		7		37		10,677
Data processing and communications expenses	13,391		1,297		38		129		14,855
Other expenses (1)	25,685		11,963		270		969		38,887
Total noninterest expense	111,596		35,084		867		3,487		151,034
Income before income tax expense	84,921		16,298		5,764		5,953		112,936
Income tax expense	19,154		3,423		1,210		1,214		25,001
Net income	$	65,767	$	12,875	$	4,554	$	4,739	$	87,935

Total assets	$	19,291,312	$	4,762,848	$	911,361	$	1,549,419	$	26,514,940
Goodwill	951,148		—		—		64,498		1,015,646
Other intangible assets, net	64,330		—		—		2,328		66,658



	Three Months Ended March 31, 2024
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		Premium Finance Division		Total
Interest income	$	235,122	$	55,099	$	16,483	$	22,748	$	329,452
Interest expense	70,654		31,812		10,455		15,143		128,064
Net interest income	164,468		23,287		6,028		7,605		201,388
Provision for credit losses	19,127		2,332		145		( 499 )		21,105
Noninterest income	26,363		38,765		740		10		65,878
Noninterest expense
Salaries and employee benefits	58,916		21,073		888		2,053		82,930
Occupancy and equipment	11,753		1,049		7		76		12,885
Data processing and communications expenses	13,184		1,366		25		79		14,654
Other expenses (1)	24,447		12,530		237		1,028		38,242
Total noninterest expense	108,300		36,018		1,157		3,236		148,711
Income before income tax expense	63,404		23,702		5,466		4,878		97,450
Income tax expense	16,028		4,978		1,148		984		23,138
Net income	$	47,376	$	18,724	$	4,318	$	3,894	$	74,312

Total assets	$	18,553,964	$	4,971,058	$	897,460	$	1,232,963	$	25,655,445
Goodwill	951,148		—		—		64,498		1,015,646
Other intangible assets, net	78,275		—		—		5,252		83,527

(1) Other expenses for each reportable segment include credit resolution-related expenses, advertising and marketing expenses, amortization of intangible assets, and loan servicing expenses.

NOTE 10 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Mortgage Banking Derivatives

The Company maintains a risk management program to manage interest rate risk and pricing risk associated with its mortgage lending activities. This program includes the use of forward contracts and other derivatives that are used to offset changes in value of the mortgage inventory due to changes in market interest rates. Forward contracts to sell primarily fixed-rate mortgage loans are entered into to reduce the exposure to market risk arising from potential changes in interest rates, which could affect the fair value of mortgage loans held for sale and outstanding interest rate lock commitments, which guarantee a certain interest rate if the loan is ultimately funded or granted by the Company as a mortgage loan held for sale. The commitments to sell mortgage loans are at fixed prices and are scheduled to settle at specified dates.

The Company enters into interest rate lock commitments for residential mortgage loans which commits it to lend funds to a potential borrower at a specific interest rate and within a specified period of time. Interest rate lock commitments that relate to the origination of mortgage loans that, if originated, will be held for sale, are considered derivative financial instruments under applicable accounting guidance. Outstanding interest rate lock commitments expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan and the eventual commitment for sale into the secondary market.

These mortgage banking derivatives are carried at fair value and are not designated in hedge relationships. Fair values are estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage banking derivatives are included as a component of mortgage banking activity in the consolidated statements of income.

Customer Related Derivative Positions

The Company enters into interest rate derivative contracts to facilitate the risk management strategies of certain clients. The Company mitigates this risk largely by entering into equal and offsetting interest rate derivative agreements with highly rated counterparties. The interest rate contracts are free-standing derivatives and are recorded at fair value on the Company's consolidated balance sheets. The credit risk to these clients is evaluated and included in the calculation of fair value. Fair value changes including credit-related adjustments are recorded as a component of other noninterest income.

Risk Participation Agreement

The Company has entered into a risk participation agreement swap, that is associated with a loan participation, where the Company is not the counterparty to the interest rate swap that is associated with the risk participation sold. The interest rate swap mark to market only impacts the Company if the swap is in a liability position to the counterparty and the customer defaults on payments to the counterparty.

The following table reflects the notional amount and fair value of derivative instruments not designated as hedging instruments included in the consolidated balance sheets as of March 31, 2025 and December 31, 2024.


	March 31, 2025						December 31, 2024
			Fair Value						Fair Value
(dollars in thousands)	Notional Amount		Derivative Assets (1)		Derivative Liabilities (2)		Notional Amount		Derivative Assets (1)		Derivative Liabilities (2)
Interest rate contracts (3)	$	881,916	$	6,303	$	6,439	$	901,597	$	8,717	$	8,718
Risk participation agreement	26,163		—		22		26,163		—		13
Mortgage derivatives - interest rate lock commitments	347,944		5,416		—		192,528		1,504		—
Mortgage derivatives - forward contracts related to mortgage loans held for sale	1,134,013		—		2,867		1,153,717		5,795		—

(1) Derivative assets are included in other assets on the consolidated balance sheets.

(2) Derivative liabilities are included in other liabilities on the consolidated balance sheets.

(3) Includes interest rate contracts for client swaps and offsetting positions.

The net gains (losses) relating to changes in fair value from derivative instruments not designated as hedging instruments are summarized below for the three months ended March 31, 2025 and 2024.


		Three Months Ended March 31,
(dollars in thousands)	Location	2025		2024
Interest rate contracts (1)	Other noninterest income	$	( 134 )	$	143
Risk participation agreement	Other noninterest income	( 9 )		33
Interest rate lock commitments	Mortgage banking activity	3,912		2,116
Forward contracts related to mortgage loans held for sale	Mortgage banking activity	( 8,662 )		4,760

(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps and offsetting positions.

NOTE 11 – LOAN SERVICING RIGHTS

The Company sells certain residential mortgage loans and SBA loans to third parties. All such transfers are accounted for as sales and the continuing involvement in the loans sold is limited to certain servicing responsibilities. The Company has also acquired servicing portfolios of residential mortgage and SBA loans. Loan servicing rights are initially recorded at fair value and subsequently recorded at the lower of cost or fair value, and are amortized over the remaining service life of the loans, with consideration given to prepayment assumptions. Loan servicing rights are recorded in other assets on the consolidated balance sheets.

The carrying value of the loan servicing rights assets is shown in the table below:


(dollars in thousands)	March 31, 2025		December 31, 2024
Loan Servicing Rights
Residential mortgage	$	116,584	$	112,514
SBA	2,927		2,926

Total loan servicing rights	$	119,511	$	115,440

Residential Mortgage Loans

The Company sells certain first-lien residential mortgage loans to third party investors, primarily the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and the Federal Home Loan Mortgage Corporation (“FHLMC”). For a portion of these loans, the Company retains the related mortgage servicing rights (“MSRs”) and receives servicing fees. The net gain on loan sales, MSRs amortization and recoveries/impairment, and ongoing servicing fees on the portfolio of loans serviced for others are recorded in the consolidated statements of income and comprehensive income as part of mortgage banking activity.

During the three months ended March 31, 2025 and 2024, the Company recorded servicing fee income of $ 12.5 million and $ 17.2 million, respectively. Servicing fee income includes servicing fees, late fees and ancillary fees earned for each period.

The table below is an analysis of the activity in the Company’s MSRs and valuation allowance:


(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing rights	2025		2024
Beginning carrying value, net	$	112,514	$	171,915
Additions	7,317		5,456

Amortization	( 3,247 )		( 5,403 )


Ending carrying value, net	$	116,584	$	171,968

The key metrics and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below:


(dollars in thousands)	March 31, 2025			December 31, 2024
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	9,194,125		$	8,856,724
Composition of residential loans serviced for others:
FHLMC	25.29		%	24.51		%
FNMA	67.16		%	68.42		%
GNMA	7.55		%	7.07		%
Total	100.00		%	100.00		%
Weighted average term (months)	354			353
Weighted average age (months)	34			33
Modeled prepayment speed	8.13		%	7.37		%
Decline in fair value due to a 10% adverse change	$	( 4,709 )		$	( 2,474 )
Decline in fair value due to a 20% adverse change	$	( 9,207 )		$	( 5,227 )
Weighted average discount rate	9.75		%	10.79		%
Decline in fair value due to a 10% adverse change	$	( 5,798 )		$	( 3,283 )
Decline in fair value due to a 20% adverse change	$	( 11,303 )		$	( 7,379 )

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in model inputs and/or assumptions generally cannot be extrapolated because the relationship of a change in input or assumption to the change in fair value may not be linear. In addition, the effect of an adverse variation in a particular input or assumption on the value of the residential mortgage servicing rights is calculated without changing any other input or assumption. In reality, a change in another factor may magnify or counteract the effect of the change in the first.

SBA Loans

All sales of SBA loans, consisting of the guaranteed portion, are executed on a servicing retained basis. These loans, which are partially guaranteed by the SBA, are generally secured by business property such as real estate, inventory, equipment and accounts receivable. The net gain on SBA loan sales, amortization and impairment/recoveries of servicing rights, and ongoing servicing fees are recorded in the consolidated statements of income and comprehensive income as part of other noninterest income.

During the three months ended March 31, 2025 and 2024, the Company recorded servicing fee income of $ 459,000 and $ 592,000 , respectively. Servicing fee income includes servicing fees, late fees and ancillary fees earned for each period.

The table below is an analysis of the activity in the Company’s SBA loan servicing rights and valuation allowance:


(dollars in thousands)	Three Months Ended March 31,
SBA servicing rights	2025		2024
Beginning carrying value, net	$	2,926	$	2,737
Additions	157		19


Amortization	( 156 )		( 455 )

Ending carrying value, net	$	2,927	$	2,301


(dollars in thousands)	March 31, 2025			December 31, 2024
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	233,035		$	235,793
Weighted average life (in years)	3.27			3.18
Modeled prepayment speed	18.40		%	18.95		%
Decline in fair value due to a 10% adverse change	$	( 174 )		$	( 192 )
Decline in fair value due to a 20% adverse change	$	( 331 )		$	( 366 )
Weighted average discount rate	10.66		%	11.27		%
Decline in fair value due to a 100 basis point adverse change	$	( 82 )		$	( 97 )
Decline in fair value due to a 200 basis point adverse change	$	( 159 )		$	( 190 )

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in model inputs and/or assumptions generally cannot be extrapolated because the relationship of a change in input or assumption to the change in fair value may not be linear. In addition, the effect of an adverse variation in a particular input or assumption on the value of the SBA servicing rights is calculated without changing any other input or assumption. In reality, a change in another factor may magnify or counteract the effect of the change in the first.

Item 2. 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 March 31, 2025, as compared with December 31, 2024, and operating results for the three month periods ended March 31, 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 March 31, 2025 and 2024

Consolidated Earnings and Profitability

Ameris reported net income available to common shareholders of $87.9 million, or $1.27 per diluted share, for the quarter ended March 31, 2025, compared with $74.3 million, or $1.08 per diluted share, for the same period in 2024. The Company’s return on average assets and average shareholders’ equity were 1.36% and 9.39%, respectively, in the first quarter of 2025, compared with 1.18% and 8.63%, respectively, in the first quarter of 2024.

Below is additional information regarding the banking, retail mortgage, warehouse lending and premium finance divisions of the Company during the first quarter of 2025 and 2024, respectively:


	Three Months Ended March 31, 2025
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		Premium Finance Division		Total
Interest income	$	233,319	$	57,932	$	15,200	$	27,327	$	333,778
Interest expense	49,106		36,088		9,298		17,447		111,939
Net interest income	184,213		21,844		5,902		9,880		221,839
Provision for credit losses	16,420		5,191		(175)		456		21,892
Noninterest income	28,724		34,729		554		16		64,023
Noninterest expense
Salaries and employee benefits	62,716		20,995		552		2,352		86,615
Occupancy and equipment	9,804		829		7		37		10,677
Data processing and communications expenses	13,391		1,297		38		129		14,855
Other expenses	25,685		11,963		270		969		38,887
Total noninterest expense	111,596		35,084		867		3,487		151,034
Income before income tax expense	84,921		16,298		5,764		5,953		112,936
Income tax expense	19,154		3,423		1,210		1,214		25,001
Net income	$	65,767	$	12,875	$	4,554	$	4,739	$	87,935


	Three Months Ended March 31, 2024
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		Premium Finance Division		Total
Interest income	$	235,122	$	55,099	$	16,483	$	22,748	$	329,452
Interest expense	70,654		31,812		10,455		15,143		128,064
Net interest income	164,468		23,287		6,028		7,605		201,388
Provision for credit losses	19,127		2,332		145		(499)		21,105
Noninterest income	26,363		38,765		740		10		65,878
Noninterest expense
Salaries and employee benefits	58,916		21,073		888		2,053		82,930
Occupancy and equipment	11,753		1,049		7		76		12,885
Data processing and communications expenses	13,184		1,366		25		79		14,654
Other expenses	24,447		12,530		237		1,028		38,242
Total noninterest expense	108,300		36,018		1,157		3,236		148,711
Income before income tax expense	63,404		23,702		5,466		4,878		97,450
Income tax expense	16,028		4,978		1,148		984		23,138
Net income	$	47,376	$	18,724	$	4,318	$	3,894	$	74,312

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 March 31, 2025 and 2024. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 21% federal tax rate.


	Quarter Ended March 31,
	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	$	980,164	$	10,789	4.46%	$	923,845	$	12,637	5.50%


Investment securities - taxable	1,998,226		18,492		3.75%	1,599,705		13,092		3.29%
Investment securities - nontaxable	41,391		416		4.08%	41,287		418		4.07%
Loans held for sale	565,531		9,045		6.49%	323,351		5,348		6.65%
Loans	20,620,777		295,964		5.82%	20,320,678		298,907		5.92%
Total interest-earning assets	24,206,089		334,706		5.61%	23,208,866		330,402		5.73%
Noninterest-earning assets	2,023,334					2,086,222
Total assets	$	26,229,423				$	25,295,088

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts	$	3,988,458	$	18,306	1.86%	$	3,829,977	$	20,574	2.16%
MMDA	6,911,554		52,261		3.07%	5,952,389		53,953		3.65%
Savings accounts	767,148		830		0.44%	795,887		986		0.50%
Retail CDs	2,436,974		23,245		3.87%	2,378,678		24,576		4.16%
Brokered CDs	962,768		10,573		4.45%	1,381,382		18,085		5.27%
Total interest-bearing deposits	15,066,902		105,215		2.83%	14,338,313		118,174		3.31%
Non-deposit funding

FHLB advances	149,537		1,362		3.69%	219,589		2,578		4.72%
Other borrowings	193,494		2,350		4.93%	308,210		3,879		5.06%
Subordinated deferrable interest debentures	132,544		3,012		9.22%	130,551		3,433		10.58%
Total non-deposit funding	475,575		6,724		5.73%	658,350		9,890		6.04%
Total interest-bearing liabilities	15,542,477		111,939		2.92%	14,996,663		128,064		3.43%
Demand deposits	6,522,784					6,403,300
Other liabilities	366,013					432,254
Shareholders’ equity	3,798,149					3,462,871
Total liabilities and shareholders’ equity	$	26,229,423				$	25,295,088
Interest rate spread					2.69%					2.30%
Net interest income			$	222,767				$	202,338
Net interest margin					3.73%					3.51%

On a tax-equivalent basis, net interest income for the first quarter of 2025 was $222.8 million, an in crease of $20.4 million , or 10.10% , compared with $202.3 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 assets increased $997.2 million, or 4.30%, from $23.21 billion in the first quarter of 2024 to $24.21 billion for the first quarter of 2025. This growth in interest-earning assets resulted primarily from organic loan growth and increased investment in our bond portfolio. The Company’s net interest margin during the first quarter of 2025 was 3.73%, up 22 basis points from 3.51% reported in the first quarter of 2024. Loan production amounted to $4.1 billion during the first quarter of 2025, with weighted average yields of 6.86%, compared with $3.9 billion and 7.70%, respectively, during the first quarter of 2024.

Total interest income, on a tax-equivalent basis, increased to $334.7 million during the first quarter of 2025, compared with $330.4 million in the same quarter of 2024. Yields on earning assets increased to 5.61% during the first quarter of 2025, compared with 5.73% reported in the first quarter of 2024. During the first quarter of 2025, loans comprised 87.5% of average

earning assets, compared with 88.9% in the same quarter of 2024. Yields on loans decreased to 5.82% in the first quarter of 2025, compared with 5.92% in the same period of 2024.

The yield on interest-bearing deposits decreased from 3.31% in the first quarter of 2024 to 2.83% in the first quarter of 2025. The yield on total interest-bearing liabilities decreased from 3.43% in the first quarter of 2024 to 2.92% in the first quarter of 2025. Total funding costs, inclusive of noninterest-bearing demand deposits, decreased to 2.06% in the first quarter of 2025, compared with 2.41% during the first quarter of 2024. Deposit costs decreased from 2.29% in the first quarter of 2024 to 1.98% in the first quarter of 2025. Non-deposit funding costs decreased from 6.04% in the first quarter of 2024 to 5.73% in the first quarter of 2025.

Provision for Credit Losses

The Company’s provision for credit losses during the first quarter of 2025 amounted to $21.9 million, compared with $21.1 million in the first quarter of 2024. The provision for credit losses for the first quarter of 2025 was comprised of $16.5 million related to loans and $5.4 million related to unfunded commitments, compared with $25.5 million related to loans, negative $4.4 million related to unfunded commitments and $4,000 provision related to other credit losses for the first quarter of 2024. The increase in the provision for unfunded commitments is primarily attributable to the updated economic forecast and funding rates used in the model. Non-performing assets as a percentage of total assets decreased three basis points to 0.44% at March 31, 2025, compared with 0.47% at December 31, 2024. The decrease in non-performing assets is primarily attributable to decreases in nonaccrual loans of $2.5 million, accruing loans delinquent 90 days or more of $2.8 million and other real estate owned of $1.6 million . The Company recognized net charge-offs on loans during the first quarter of 2025 of approximately $9.0 million, or 0.18% of average loans on an annualized basis, compared with net charge-offs of approximately $12.6 million, or 0.25%, in the first quarter of 2024. The Company’s total allowance for credit losses on loans at March 31, 2025 was $345.6 million, or 1.67% of total loans, compared with $338.1 million, or 1.63% of total loans, at December 31, 2024. This increase is primarily attributable to the updated economic forecast.

Noninterest Income

Total noninterest income for the first quarter of 2025 was $64.0 million, a decrease of $1.9 million, or 2.8%, from the $65.9 million reported in the first quarter of 2024. Income from mortgage banking activities was $35.3 million in the first quarter of 2025, a decrease of $4.2 million, or 10.6%, from $39.4 million in the first quarter of 2024. Total production in the first quarter of 2025 amounted to $933.0 million, compared with $910.2 million in the same quarter of 2024, while gain on sale spread decreased to 2.17% in the current quarter, compared with 2.49% in the same quarter of 2024. The retail mortgage open pipeline finished the first quarter of 2025 at $771.6 million, compared with $638.5 million at December 31, 2024 and $606.7 million at the end of the first quarter of 2024.

Service charges on deposit accounts increased $1.4 million, or 11.7%, to $13.1 million in the first quarter of 2025, compared with $11.8 million in the first quarter of 2024. The increase in service charges on deposit accounts was primarily attributable to increases in both debit card and commercial account fee income. Income from equipment finance activity increased $1.4 million , or 25.5%, to $6.7 million for the first quarter of 2025 , compared with $5.3 million during the first quarter of 2024. The increase in equipment finance activity was primarily related to increased non-insurance charges and gain on sale of leased equipment. Other noninterest income decreased $369,000, or 4.5%, to $7.8 million for the first quarter of 2025, compared with $8.2 million during the first quarter of 2024. The decrease in other noninterest income was primarily attributable to a decline in derivative income of $615,000 and gain on BOLI proceeds of $986,000, partially offset by increases in BOLI income of $731,000, commercial card interchange income of $258,000 and in gain on sale of SBA loans of $303,000.

Noninterest Expense

Total noninterest expense for the first quarter of 2025 increased $2.3 million, or 1.6%, to $151.0 million, compared with $148.7 million in the same quarter 2024. Salaries and employee benefits increased $3.7 million, or 4.4%, from $82.9 million in the first quarter of 2024 to $86.6 million in the first quarter of 2025, due primarily to increases in health insurance cost and annual merit increases. Occupancy and equipment expenses decreased $2.2 million , or 17.1%, to $10.7 million in the first quarter of 2025, compared with $12.9 million in the first quarter of 2024, with the decrease primarily related to both building rent and repairs and maintenance. Advertising and marketing expense was $2.9 million in the first quarter of 2025, compared with $2.5 million in the first quarter of 2024, with the increase primarily due to a new deposit marketing campaign initiated in the second quarter of 2024. Amortization of intangible assets decreased $319,000, or 7.2%, from $4.4 million in the first quarter of 2024 to $4.1 million in the first quarter of 2025. This decrease was primarily related to a reduction in core deposit intangible amortization. Loan servicing expenses decreased $1.6 million, or 17.1%, from $9.4 million in the first quarter of 2024 to $7.8 million in the first 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 $1.9 million, or 8.8%, from $21.4 million in the first quarter of 2024 to $23.3 million in the first quarter of 2025, due primarily to an increase in donations of $3.6 million and a decrease in deferred origination costs of $2.0 million, partially offset by a decrease in FDIC insurance of $3.4 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 first quarter of 2025, the Company reported income tax expense of $25.0 million, compared with $23.1 million in the same period of 2024. The Company’s effective tax rate for the three months ended March 31, 2025 and 2024 was 22.1% and 23.7%, respectively. The decrease in the effective rate for the three months ended March 31, 2025 is primarily related to reduced state apportionment and an increase in tax credits.

Financial Condition as of March 31, 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, 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:


	March 31, 2025				December 31, 2024
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities available-for-sale
U.S. Treasuries	$	926,330	$	929,918	$	800,860	$	796,464
U.S. government-sponsored agencies	1,007		996		1,010		994
State, county and municipal securities	25,734		24,763		25,802		24,740
Corporate debt securities	10,946		10,442		10,946		10,283
SBA pool securities	66,747		65,710		72,036		70,482
Mortgage-backed securities	928,274		911,182		797,542		768,297
Total debt securities available-for-sale	$	1,959,038	$	1,943,011	$	1,708,196	$	1,671,260

Securities held-to-maturity

State, county and municipal securities	$	33,597	$	26,637	$	33,623	$	27,409


Mortgage-backed securities	140,160		128,222		131,054		116,619
Total debt securities held-to-maturity	$	173,757	$	154,859	$	164,677	$	144,028

The amounts of securities available-for-sale and held-to-maturity in each category as of March 31, 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				U.S. Government-Sponsored Agencies				State, County and Municipal Securities
(dollars in thousands) Securities available-for-sale (1)	Amount		Yield (2)		Amount		Yield (2)		Amount		Yield (2)(3)
One year or less	$	299,383	2.93	%	$	996	2.16	%	$	6,480	4.08	%
After one year through five years	580,379		3.77		—		—		11,657		3.91
After five years through ten years	50,156		4.36		—		—		6,626		3.94
After ten years	—		—		—		—		—		—
	$	929,918	3.53	%	$	996	2.16	%	$	24,763	3.96	%

	Corporate Debt Securities				SBA Pool Securities				Mortgage-Backed Securities
(dollars in thousands) Securities available-for-sale (1)	Amount		Yield (2)		Amount		Yield (2)		Amount		Yield (2)
One year or less	$	500	4.31	%	$	1,134	2.61	%	$	25,063	2.69	%
After one year through five years	8,497		6.12		1,833		2.45		264,234		3.07
After five years through ten years	—		—		57,054		4.65		178,569		4.38
After ten years	1,445		7.80		5,689		3.43		443,316		3.94
	$	10,442	6.33	%	$	65,710	4.44	%	$	911,182	3.74	%

	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	$	—	—	%	$	—	—	%
After one year through five years	—		—		28,824		3.18
After five years through ten years	—		—		64,732		2.74
After ten years	33,597		3.94		46,604		3.37
	$	33,597	3.94	%	$	140,160	3.04	%

(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 March 31, 2025, gross loans outstanding (including loans and loans held for sale) were $21.25 billion, minimally changed from $21.27 billion reported at December 31, 2024. Loans decreased $33.3 million, or 0.2%, from $20.74 billion at December 31, 2024 to $20.71 billion at March 31, 2025. Loans held for sale increased from $528.6 million at December 31, 2024 to $545.4 million at March 31, 2025 primarily in our mortgage division.

At the end of the first quarter of 2025, the ACL on loans totaled $345.6 million, or 1.67% 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 $99.7 million at March 31, 2025. For the first three months of 2025, our net charge off ratio as a percentage of average loans decreased to 0.18%, compared with 0.25% for the first three months of 2024. The total provision for credit losses for the first three months of 2025 was $21.9 million, compared with a provision of $21.1 million recorded for the first three months of 2024. Our ratio of total nonperforming assets to total assets was down three basis points from 0.47% at December 31, 2024 to 0.44% at March 31, 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 three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
(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	16,519		25,523
Charge-offs:
Commercial and industrial	11,859		15,295
Consumer	940		1,156



Premium finance	2,329		2,006


Real estate – residential	256		—
Total charge-offs	15,384		18,457

Recoveries:
Commercial and industrial	3,850		2,899
Consumer	295		377



Premium finance	2,080		2,451
Real estate – construction and development	4		3
Real estate – commercial and farmland	35		85
Real estate – residential	72		42
Total recoveries	6,336		5,857
Net charge-offs	9,048		12,600
Balance of allowance for credit losses on loans at end of period	$	345,555	$	320,023

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 Three Months Ended
(dollars in thousands)	March 31, 2025			March 31, 2024
Allowance for credit losses on loans at end of period	$	345,555		$	320,023
Net charge-offs for the period	9,048			12,600
Loan balances:
End of period	20,706,644			20,600,260
Average for the period	20,620,777			20,320,678
Net charge-offs as a percentage of average loans (annualized)	0.18		%	0.25		%
Allowance for credit losses on loans as a percentage of end of period loans	1.67		%	1.55		%

Loans

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:


(dollars in thousands)	March 31, 2025		December 31, 2024
Commercial and industrial	$	3,075,971	$	2,953,135
Consumer	213,902		221,735

Mortgage warehouse	891,412		965,053
Municipal	429,227		441,408
Premium finance	1,176,309		1,155,614
Real estate – construction and development	1,842,431		1,998,506
Real estate – commercial and farmland	8,574,626		8,445,958
Real estate – residential	4,502,766		4,558,497
	$	20,706,644	$	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 March 31, 2025 and December 31, 2024 is below:


March 31, 2025 (dollars in thousands)	Pass		Other Assets Especially Mentioned		Substandard		Total
Farmland	$	120,834	$	2,149	$	551	$	123,534
Multifamily residential	1,630,120		644		—		1,630,764
Owner occupied CRE	1,823,484		15,742		28,627		1,867,853
Non-owner occupied CRE	4,893,479		43,894		15,102		4,952,475
Total real estate - commercial and farmland	$	8,467,917	$	62,429	$	44,280	$	8,574,626


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 five basis points of Investor CRE loans at March 31, 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 MSAs or state as of March 31, 2025 and December 31, 2024:


(dollars in thousands)	Atlanta		Other Georgia		Tampa		Jacksonville		Other Florida		South Carolina		North Carolina		Alabama		Other		Total
March 31, 2025	$	238,883	$	259,001	$	152,212	$	171,728	$	298,239	$	104,795	$	179,060	$	53,732	$	173,114	$	1,630,764
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 March 31, 2025 and December 31, 2024:


March 31, 2025 (dollars in thousands)	Atlanta		Other Georgia		Jacksonville		Orlando		Other Florida		South Carolina		North Carolina		Alabama		Other		Total
Retail	$	474,884	$	168,571	$	229,270	$	150,516	$	247,293	$	352,922	$	136,319	$	106,301	$	142,452	$	2,008,528
Office	518,398		24,497		71,723		135,433		167,693		185,663		88,344		4,220		61,637		1,257,608
Warehouse / industrial	279,225		12,278		46,125		15,344		75,397		77,788		72,085		661		134,186		713,089
Hotel	43,212		23,563		94,877		46,118		98,990		75,507		12,355		2,325		18,103		415,050
Mini storage warehouse	50,984		34,242		28,538		40,207		48,579		28,040		33,054		17,926		67,359		348,929
Assisted living facilities	69,049		—		4,594		19		39,553		447		—		—		—		113,662
Miscellaneous	31,204		8,931		9,804		17,333		11,419		4,271		11,392		2		1,253		95,609
Total non-owner occupied CRE	$	1,466,956	$	272,082	$	484,931	$	404,970	$	688,924	$	724,638	$	353,549	$	131,435	$	424,990	$	4,952,475


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 $99.7 million at March 31, 2025, a decrease of $2.5 million, or 2.5%, from $102.2 million at December 31, 2024. Accruing loans delinquent 90 days or more totaled $14.9 million at March 31, 2025, a decrease of $2.8 million, or 15.8%, compared with $17.7 million at December 31, 2024. At March 31, 2025, OREO totaled $863,000, a decrease of $1.6 million, or 64.5%, 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 first quarter of 2025, total non-performing assets as a percent of total assets was down three basis points from 0.47% at December 31, 2024 to 0.44% at March 31, 2025.

Non-performing assets at March 31, 2025 and December 31, 2024 were as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024
Nonaccrual loans (1)	$	99,670	$	102,218
Accruing loans delinquent 90 days or more	14,930		17,733
Repossessed assets	—		9
Other real estate owned	863		2,433
Total non-performing assets	$	115,463	$	122,393

(1) Included in nonaccrual loans were $13.4 million and $12.0 million of serviced GNMA-guaranteed nonaccrual loans at March 31, 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 March 31, 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 March 31, 2025 and December 31, 2024. The loan categories and concentrations below are based on Federal Reserve Call codes:


	March 31, 2025			December 31, 2024
(dollars in thousands)	Balance		% of Total Loans	Balance		% of Total Loans
Construction and development loans	$	1,842,431	9%	$	1,998,506	10%
Multi-family loans	1,630,764		8%	1,454,772		7%
Nonfarm non-residential loans (excluding owner-occupied)	4,952,475		24%	4,970,262		24%
Total CRE Loans (excluding owner-occupied)	8,425,670		41%	8,423,540		41%
All other loan types	12,280,974		59%	12,316,366		59%
Total Loans	$	20,706,644	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 March 31, 2025 and December 31, 2024:


	Internal Limit	Actual
		March 31, 2025	December 31, 2024
Construction and development loans	100%	57%	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 $5.4 million and $1.5 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024 forward contracts were recorded as a liability of $2.9 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 $6.3 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively, and a liability of $6.4 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively.

Deposits

Total deposits at the Company increased $190.0 million, or 0.9%, to $21.91 billion at March 31, 2025, compared with $21.72 billion at December 31, 2024. Noninterest-bearing deposits increased $246.5 million, or 3.8%, and interest-bearing deposits decreased $56.5 million, or 0.4%, during the first three months of 2025. At March 31, 2025, the Company had approximately $1.05 billion in short-term brokered CDs, compared with $804.9 million at December 31, 2024. As of March 31, 2025 and December 31, 2024, the Company had estimated uninsured deposits of $10.01 billion and $10.24 billion, respectively. These estimates were derived using the same methodologies and assumptions used for the Bank's regulatory reporting. Approximately $3.07 billion, or 30.7%, of the uninsured deposits at March 31, 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 replenishment of the program to $100.0 million, being announced on October 24, 2024. As a result, the Company is currently authorized to engage in additional share repurchases up to $100.0 million through October 31, 2025. 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 March 31, 2025, an aggregate of $15.0 million, or 253,400 shares of the Company's common stock, had been repurchased under the program's October 24, 2024 renewal.

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 March 31, 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 of for the Company and the Bank at March 31, 2025 and December 31, 2024:


	March 31, 2025	December 31, 2024
Tier 1 Leverage Ratio (tier 1 capital to average assets)
Consolidated	11.00%	10.74%
Ameris Bank	11.58%	11.17%
CET1 Ratio (common equity tier 1 capital to risk weighted assets)
Consolidated	12.87%	12.65%
Ameris Bank	13.54%	13.15%
Tier 1 Capital Ratio (tier 1 capital to risk weighted assets)
Consolidated	12.87%	12.65%
Ameris Bank	13.54%	13.15%
Total Capital Ratio (total capital to risk weighted assets)
Consolidated	15.60%	15.37%
Ameris Bank	15.14%	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 March 31, 2025 and December 31, 2024, the net carrying value of the Company’s other borrowings was $276.7 million and $291.8 million, respectively. At March 31, 2025, the Company had availability with the FHLB and FRB Discount Window of $3.52 billion and $2.29 billion, respectively.

The following liquidity ratios compare certain assets and liabilities to total deposits or total assets:


	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Investment securities available-for-sale to total deposits	8.87%	7.69%	6.59%	7.14%	6.74%
Loans (net of unearned income) to total deposits	94.50%	95.48%	95.82%	97.89%	98.11%
Interest-earning assets to total assets	92.30%	91.94%	92.09%	92.17%	91.91%
Interest-bearing deposits to total deposits	69.22%	70.08%	69.51%	68.99%	68.86%

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 March 31, 2025 were considered satisfactory. The Company is aware of no events or trends likely to result in a material change in liquidity.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Company is exposed only to U.S. dollar interest rate changes, and, accordingly, the Company manages exposure by considering the possible changes in the net interest margin. The Company does not have any trading instruments nor does it classify any portion of the investment portfolio as held for trading.

The Company also 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 these instruments amounted to an asset of $5.4 million and $7.3 million at March 31, 2025 and December 31, 2024, respectively, and a liability of $2.9 million at March 31, 2025. 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 $6.3 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively, and a liability of $6.4 million and $8.7 million at March 31, 2025 and December 31, 2024, respectively.

The Company has no exposure to foreign currency exchange rate risk, commodity price risk and other market risks.

Interest rates play a major part in the net interest income of a financial institution. The sensitivity to rate changes is known as “interest rate risk.” The repricing of interest-earning assets and interest-bearing liabilities can influence the changes in net interest income. As part of the Company’s asset/liability management program, the timing of repriced assets and liabilities is referred to as “gap management.”

The Company uses simulation analysis to monitor changes in net interest income due to changes in market interest rates. The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to minimize the impact of market interest rate swings. The analysis of the impact on net interest income over a 12-month and 24-month period is subjected to gradual and parallel shocks of 100, 200, 300 and 400 basis point increases and decreases in market rates and is monitored on a quarterly basis.

The following table presents the earnings simulation model’s projected impact of a change in interest rates on the projected baseline net interest income for the 12- and 24-month periods commencing April 1, 2025. This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve.


Earnings Simulation Model Results
Change in	% Change in Projected Baseline
Interest Rates	Net Interest Income
(in bps)	12 Months	24 Months
400	3.2%	14.2%
300	2.6%	11.0%
200	1.9%	7.6%
100	1.0%	3.9%
(100)	(1.1)%	(4.3)%
(200)	(2.0)%	(9.0)%
(300)	(3.2)%	(14.5)%

Additional information required by Item 305 of Regulation S-K is set forth under Part I, Item 2 of this report.

Item 4. Controls and Procedures.

The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Exchange Act) as of the end of the period covered by this report, as required by paragraph (b) of Rules 13a-15 or 15d-15 of the Exchange Act. Based on such evaluation, such officers have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.

During the quarter ended March 31, 2025, there was no change in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 of the Exchange Act that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Disclosure concerning legal proceedings can be found in Part I - "Financial Information, Item 1. Financial Statements, Notes to Unaudited Consolidated Financial Statements, Note 8 – Commitments and Contingencies" under the caption, "Litigation and Regulatory Contingencies," which is incorporated herein by reference.

Item 1A. Risk Factors.

There have not been any material changes to the risk factors disclosed in Item 1A. of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, previously filed with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

c) Issuer Purchases of Equity Securities.

The table below sets forth information regarding the Company’s repurchase of shares of its outstanding common stock during the three-month period ended March 31, 2025.


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (2)
January 1, 2025 through January 31, 2025	—	$	—	—	$	100,000,000
February 1, 2025 through February 28, 2025	89,820	$	64.20	—	$	100,000,000
March 1, 2025 through March 31, 2025	253,400	$	59.09	253,400	$	85,027,197
Total	343,220	$	60.43	253,400	$	85,027,197

(1) The shares purchased in February 2025 were surrendered to the Company in payment of the income tax withholding obligations relating to the vesting of shares of restricted stock and performance stock units

(2) 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 the original authorization, with the most recent extension, which also included the replenishment of the program to $100.0 million, being announced on October 24, 2024. As a result, the Company is currently authorized to engage in additional share repurchases totaling up to $100.0 million through October 31, 2025. 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 March 31, 2025, an aggregate of $15.0 million, or 253,400 shares of the Company's common stock, had been repurchased under the program's October 24, 2024 renewal.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended March 31, 2025, no director or Section 16 officer of the Company adopted or terminated any Rule 10b5-1 trading arrangement or any non-Rule 10b5-1 trading arrangement (in each case, as defined in Item 408(a) of Regulation S-K).

Item 6. Exhibits.


Exhibit Number						Description

3.1						Restated Articles of Incorporation of Ameris Bancorp (incorporated by reference to Exhibit 3.1 to Ameris Bancorp’s Annual Report on Form 10-K filed with the SEC on February 28, 2023).

3.2						Bylaws of Ameris Bancorp, as amended and restated through February 23, 2023 (incorporated by reference to Exhibit 3.2 to Ameris Bancorp's Quarterly Report on Form 10-Q filed with the SEC on May 8, 2023).

31.1						Rule 13a-14(a)/15d-14(a) Certification by the Company’s Chief Executive Officer.

31.2						Rule 13a-14(a)/15d-14(a) Certification by the Company’s Chief Financial Officer.

32.1						Section 1350 Certification by the Company’s Chief Executive Officer.

32.2						Section 1350 Certification by the Company’s Chief Financial Officer.

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						Inline XBRL Taxonomy Extension Schema Document.

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104						Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

* Management contract or a compensatory plan or arrangement.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Dated: May 9, 2025			AMERIS BANCORP

			/s/ Nicole S. Stokes
			Nicole S. Stokes
			Chief Financial Officer (duly authorized signatory and principal accounting and financial officer)

TABLE OF CONTENTS

Item 1. Financial Statements Note 1 Basis Of Presentation and Accounting Policies Note 2 Investment Securities Note 3 Loans and Allowance For Credit Losses Note 4 Other Borrowings Note 5 Accumulated Other Comprehensive Income Note 6 Weighted Average Shares Outstanding Note 7 Fair Value Measures Note 8 Commitments and Contingencies Note 9 Segment Reporting Note 10 Derivative Instruments and Hedging Activities Note 11 Loan Servicing Rights Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II - Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

3.1 Restated Articles of Incorporation of Ameris Bancorp (incorporated by reference to Exhibit 3.1 to Ameris Bancorps Annual Report on Form 10-K filed with the SEC on February 28, 2023). 3.2 Bylaws of Ameris Bancorp, as amended and restated through February 23, 2023 (incorporated by reference to Exhibit 3.2 to Ameris Bancorp's Quarterly Report on Form 10-Q filed with the SEC on May 8, 2023). 31.1 Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer. 31.2 Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer. 32.1 Section 1350 Certification by the Companys Chief Executive Officer. 32.2 Section 1350 Certification by the Companys Chief Financial Officer.

ABCB 10-Q Quarter ended March 31, 2025

Exhibits