REGULATORY MATTERS

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

REGULATORY MATTERS

REGULATORY MATTERS

The Bank is subject to certain restrictions on the amount of dividends that may be declared without prior regulatory approval. At December 31, 2021, $202.7 million of retained earnings were available for dividend declaration without regulatory approval.

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Under the regulatory capital frameworks adopted by the Federal Reserve and the FDIC, Ameris 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%. Ameris 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 Federal Reserve 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 December 31, 2021 and 2020, the most recent notification from the regulatory authorities categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. Prompt corrective action provisions are not applicable to bank holding companies.

The Company’s and Bank’s actual capital amounts and ratios are presented in the following table.

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2021
Tier 1 Leverage Ratio (tier 1 capital to average assets):
Company	$	1,897,725	8.63	%	$	879,079	4.00	%			—N/A—
Bank	$	2,084,465	9.50	%	$	877,891	4.00	%	$	1,097,364	5.00	%
CET1 Ratio (common equity tier 1 capital to risk weighted assets):
Company	$	1,897,725	10.46	%	$	1,270,535	7.00	%			—N/A—
Bank	$	2,084,465	11.50	%	$	1,268,622	7.00	%	$	1,178,007	6.50	%
Tier 1 Capital Ratio (tier 1 capital to risk weighted assets):
Company	$	1,897,725	10.46	%	$	1,542,792	8.50	%			—N/A—
Bank	$	2,084,465	11.50	%	$	1,540,470	8.50	%	$	1,449,854	8.00	%
Total Capital Ratio (total capital to risk weighted assets):
Company	$	2,500,287	13.78	%	$	1,905,802	10.50	%			—N/A—
Bank	$	2,255,699	12.45	%	$	1,902,934	10.50	%	$	1,812,318	10.00	%
As of December 31, 2020
Tier 1 Leverage Ratio (tier 1 capital to average assets):
Company	$	1,701,997	8.99	%	$	757,195	4.00	%			—N/A—
Bank	$	1,964,717	10.39	%	$	756,510	4.00	%	$	945,637	5.00	%
CET1 Ratio (common equity tier 1 capital to risk weighted assets):
Company	$	1,701,997	11.14	%	$	1,069,425	7.00	%			—N/A—
Bank	$	1,964,717	12.87	%	$	1,068,756	7.00	%	$	992,417	6.50	%
Tier 1 Capital Ratio (tier 1 capital to risk weighted assets):
Company	$	1,701,997	11.14	%	$	1,298,588	8.50	%			—N/A—
Bank	$	1,964,717	12.87	%	$	1,297,775	8.50	%	$	1,221,436	8.00	%
Total Capital Ratio (total capital to risk weighted assets):
Company	$	2,332,385	15.27	%	$	1,604,138	10.50	%			—N/A—
Bank	$	2,165,760	14.19	%	$	1,603,134	10.50	%	$	1,526,795	10.00	%

The CET1 Ratios, the Tier 1 Capital Ratios, and the Total Capital Ratios displayed in the above table under the heading “For Capital Adequacy Purposes” includes the capital conservation buffer of 2.50% for December 31, 2021 and December 31, 2020.