2014

Ameris Bancorp Announces Third Quarter 2012 Financial Results

MOULTRIE, Ga., Oct. 23, 2012 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB), today reported net income of $1.1 million, or $0.04 per diluted share, for the quarter ended September 30, 2012, compared to $15.6 million, or $0.66 per diluted share, for the quarter ended September 30, 2011.  For the year to date period ending September 30, 2012, the Company reported net income available to common shareholders of $7.3 million, or $0.30 per diluted share, compared to $17.5 million, or $0.74 per diluted share, for the same period in 2011.  Income in the third quarter of 2011 included an after-tax gain of $17.5 million related to an FDIC-assisted acquisition. 

(Logo: http://photos.prnewswire.com/prnh/20051117/CLTH039LOGO )

Highlights of the results of the third quarter of 2012 include:

  • Legacy loans increased $74.4 million during the third quarter, representing a 21.7% annualized growth rate.
  • The Company completed its tenth FDIC-assisted transaction during the third quarter of 2012.
  • The Company's net interest margin remained strong, at 4.52% during the third quarter of 2012.
  • Total revenue (excluding gains and non-recurring adjustments) increased to $38.1 million in the third quarter of 2012, compared to $37.8 million in the second quarter of 2012.
  • Non-performing assets declined 35% from December 31, 2011.
  • Legacy classified loans decreased $28.6 million, or 28%, from December 31, 2011.
  • Annualized net charge-offs for the current quarter declined to 1.65% of total loans, compared to 2.23% for the year ended December 31, 2011.
  • "In-migration" of new legacy problem loans amounted to $9.7 million, compared to $9.4 million in the second quarter of 2012 and $12.5 million in the first quarter of 2012.

Operating Results

Net income in the third quarter of 2012 totaled $1.9 million before preferred dividends, a decrease when compared to the same quarter in 2011, resulting from the $26.9 million pre-tax gain on acquisitions recorded in the third quarter of 2011.  For the year to date period, the Company's earnings before preferred dividends were $9.8 million, compared to $20.0 million in the year to date period in 2011. 

Net Interest Income and Net Interest Margin

Net interest income during the third quarter of 2012 totaled $28.2 million, an increase of $436,000, or 1.57%, compared to the $27.8 million reported for the third quarter of 2011.  During the third quarter of 2012, the Company's net interest margin increased to 4.52%, compared to 4.44% during the same quarter of 2011.  Lower yields on most earning asset classes have been offset by lower funding costs and better allocation of earning assets.

Earning assets totaled $2.44 billion at the end of the third quarter of 2012, compared to $2.48 billion at the end of the third quarter of 2011.  Although earning assets declined by 1.7% during the current year, loans and investment securities increased.  Loans comprised 81.3% of total earning assets in the current quarter, compared to 79.1% in the same quarter in 2011, while investment securities have grown from 14.2% of total earning assets at September 30, 2011 to 15.1% at September 30, 2012.

Legacy loan yields continued to show little dilution, averaging 5.64% in the current quarter, compared to 5.34% in the same quarter of 2011.  Covered loan yields declined from 9.04% in the third quarter of 2011 to 6.19% in the third quarter of 2012.  The decline in covered loan yields relates mostly to one-time adjustments made during the third quarter of 2011 associated with certain fair value determinations.

The Company has offset the declines in earning asset yields with corresponding declines in funding costs.  Deposit costs, the Company's largest funding expense, declined from 0.97% in the third quarter of 2011, to 0.46% in the third quarter of 2012.  This decline relates to continued shifts in deposit mix, favoring lower cost transaction accounts and non-interest bearing balances, as well as lower market rates in our communities.  The Company anticipates a continued downward trend on funding costs, albeit at a slower pace.

Non-Interest Income

Recurring non-interest income (excluding gains on acquisitions) totaled $9.83 million during the third quarter of 2012, compared to $7.08 million during the third quarter of 2011, representing a 38.9% increase.  The Company's mortgage operations contributed significantly to the increase in non-interest income, growing $2.8 million when compared to the same quarter in 2011.  Higher volumes, mostly from growth in staffing levels over the past twelve months, led to the increase.  During the third quarter, the Company recruited a talented correspondent mortgage team to Ameris Bank and accelerated the process of delivering wholesale mortgage services to banks, credit unions and select mortgage brokers.  Mortgage pipelines continued to grow throughout the quarter, with a majority of the business from purchase transactions rather than refinance transactions.

Service charges increased to $5.12 million during the third quarter of 2012, compared to $4.67 million in the third quarter of 2011.  This 9.8% increase was driven by higher balances in accounts subject to service charges, as well as continued growth of core accounts through the Company's FDIC-assisted acquisition strategy.

Non-Interest Expense

Non-interest expenses totaled $28.8 million in the third quarter of 2012, a decline from $29.5 million reported for the third quarter of 2011.  The decrease in total operating expenses was primarily the result of declining credit related expenses, which fell to $3.7 million in the current quarter, compared to $9.0 million in the third quarter of 2011. Excluding credit related expenses, non-interest expense totaled $25.1 million in the third quarter of 2012, compared to $20.5 million in the third quarter of 2011. 

Trends in operating expenses have been heavily influenced by several factors.  First, the Company's mortgage strategy began in earnest in the second quarter of 2011 and has been growing steadily since that time.  As noted above, mortgage revenue has increased substantially during 2012, growing from $903,000 in the third quarter of 2011 to $3.7 million in the current period.  Costs associated with this strategy have increased as well.  Mortgage related costs, much of which are compensation costs, increased by $1.9 million in the third quarter of 2012 to $2.9 million.  Management expects continued growth in revenue from this strategy with moderating growth rates in expenses, as the platform is substantially in place and able to be leveraged.

In addition, the Company's consistent participation in failed bank transactions has caused faster growth in branches and branch operations than desired and contractual agreements with the FDIC restrict the Company's ability to consolidate branches acquired in FDIC-assisted transactions for a period of one year from the date of acquisition.  Current period numbers include $3.2 million of year to date total expenses ($1.6 million of which is compensation) related to the two transactions completed this year that is not included in prior periods. 

During the third quarter of 2012, the Company identified several branches for consolidation beginning in the fourth quarter with estimated annual expense reductions totaling approximately $2.0 million.  Additionally, other efficiencies resulting from re-engineered processes or redistribution of work duties were identified that the Company anticipates will result in $2.5 million of savings beginning in the latter part of the fourth quarter of 2012.  Further assessment of the Company's operations and branch infrastructure is underway in an effort to prepare for an extended low rate environment and to deliver higher shareholder returns.

Balance Sheet Trends

At September 30, 2012, the Company reported total assets of $2.95 billion, a slight decrease from the $3.0 billion reported at September 30, 2011.  Total loans at September 30, 2012 increased to $1.99 billion, compared to $1.96 billion at September 30, 2011.  Legacy loans, including mortgage loans held for sale, have increased 9.3% since December 31, 2011, surpassing management's estimate of 5% to 8% loan growth for 2012.  During the most recent linked quarter, legacy loans increased $74.4 million, or 21.7% on an annualized basis, to $1.44 billion

Management expects continued growth in loan balances, sufficient to offset declines in covered and non-performing assets.  Growth from core operations, as well as certain lines of business, in the coming year is anticipated to be similar to or slightly higher than year to date growth rates seen in 2012.

Total deposits increased $35.4 million during the third quarter of 2012, from $2.54 billion at June 30, 2012 to $2.58 billion at September 30, 2012.  The majority of the deposit growth was seen in non-interest bearing deposits, while interest bearing deposits remained stable at $2.12 billion.  Non-interest bearing deposits increased to $464.5 million, from $354.4 million at the same time in 2011.  Growth in non-interest bearing balances of 31.1% over the last year has resulted from continued acquisition of deposits related to FDIC-assisted acquisitions and the consistent efforts of the Company's business deposit sales teams.

Shareholders' equity was $299.2 million at the end of the third quarter of 2012, an increase of $5.4 million when compared to balances at December 31, 2011.  At September 30, 2012, the Company's tangible common equity to tangible assets was 8.27%, compared to 7.99% at December 31, 2011.  Tangible book value increased to $10.23 per share at the end of the third quarter of 2012 compared to $10.06 at December 31, 2011.

During the third quarter of 2012, the Company repurchased the warrant providing for the purchase of approximately 700,000 common shares, issued as part of the Company's participation in the United States Treasury's Capital Purchase Program in 2008, for $2.67 million.  As previously reported, the Company's preferred stock issued to the Treasury in 2008 was auctioned to private investors for approximately 93.1% of par value in June of this year.  The Company continues to evaluate repayment strategies to potentially retire the preferred stock before the dividend rate increases to 9.0% in February 2014.  No increase in outstanding shares is needed to retire this preferred stock.

Credit Quality

Non-performing assets at the end of the third quarter of 2012 declined to $75.9 million, compared to $117.5 million at December 31, 2011.  Non-performing loans declined to $38.2 million at September 30, 2012, compared to $70.8 million at the end of 2011.

Net charge-offs on loans during the third quarter of 2012 were $6.0 million, or 1.65% annualized as a percentage of legacy loans, compared to $8.6 million during the second quarter of 2012 and $6.8 million during the third quarter of 2011.  The Company's provision for loan losses during the third quarter of 2012 amounted to $6.5 million, a decrease of $1.0 million as compared to the $7.5 million posted in the third quarter of 2011.  Approximately $850,000 of the current quarter's provision for loan losses related to decreases in expected cash flows from recent FDIC-assisted transactions.  At September 30, 2012, the Company's loan loss allowance totaled $25.9 million, or 1.80% of legacy loans, compared to $35.2 million, or 2.64% of legacy loans, at the end of 2011. 

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 66 locations in Georgia, Alabama, northern Florida and South Carolina.

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management of Ameris Bancorp (the "Company") uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This news release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "estimate", "expect", "intend", "anticipate" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements and are referred to the Company's periodic filings with the Securities and Exchange Commission for a summary of certain factors that may impact the Company's results of operations and financial condition.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)




































Three Months Ended


Nine Months Ended




Sept.


Jun.


Mar.


Dec.


Sept.


Sept.


Sept.




2012


2012


2012


2011


2011


2012


2011

















EARNINGS































Net Income/(Loss) Available to Common Shareholders

$                   1,076


$                   1,678


$                   4,550


$                  322


$             15,643


$               7,304


$          17,530

















PER COMMON SHARE DATA















Earnings per share available to common shareholders:
















Basic

$                     0.05


$                     0.07


$                     0.19


$                 0.01


$                 0.67


$                 0.31


$              0.75



Diluted

$                     0.04


$                     0.07


$                     0.19


$                 0.01


$                 0.66


$                 0.30


$              0.74


Cash Dividends per share

$                           -


$                           -


$                           -


$                       -


$                       -


$                       -


$                    -


Stock dividend

-


-


-


-


-


-


-


Book value per share (period end)

$                   10.41


$                   10.49


$                   10.36


$               10.23


$               10.27


$               10.41


$            10.27


Tangible book value per share (period end)

$                   10.23


$                   10.29


$                   10.15


$               10.06


$               10.08


$               10.23


$            10.08


Weighted average number of shares:
















Basic

23,819,144


23,818,814


23,762,196


23,457,739


23,438,335


23,800,121


23,438,763



Diluted

23,973,369


23,973,039


23,916,421


23,611,964


23,559,063


23,954,346


23,530,278


Period-end number of shares

23,819,144


23,819,144


23,814,144


23,751,294


23,742,794


23,819,144


23,742,794


Market data:
















High closing price

$                   12.88


$                   13.40


$                   13.32


$               10.66


$               10.30


$               13.40


$            11.10



Low closing price

$                   11.27


$                   10.88


$                   10.34


$                 8.55


$                 8.47


$               10.34


$              8.47



Period end closing price

$                   12.59


$                   12.60


$                   13.14


$               10.28


$                 8.71


$               12.59


$              8.71



Average daily volume

45,543


58,370


59,139


68,654


71,955


54,325


59,275

















PERFORMANCE RATIOS















Return on average assets

0.26%


0.34%


0.72%


0.15%


2.14%


0.44%


0.79%


Return on average common equity

3.12%


4.12%


8.89%


1.82%


28.55%


5.38%


10.36%


Earning asset yield (TE)

5.06%


5.33%


5.22%


6.07%


5.55%


5.20%


5.59%


Total cost of funds

0.51%


0.62%


0.69%


0.80%


1.02%


0.60%


1.10%


Net interest margin (TE)

4.52%


4.66%


4.48%


5.21%


4.44%


4.55%


4.40%


Non-interest income excluding securities transactions,
















as a percent of total revenue (TE) (1)

23.60%


21.10%


12.15%


14.81%


10.26%


18.11%


12.57%


Efficiency ratio

75.68%


70.51%


62.28%


72.76%


47.75%


68.55%


57.65%

















CAPITAL ADEQUACY (period end)















Stockholders' equity to assets

10.14%


10.31%


9.78%


9.81%


9.78%


10.14%


9.78%


Tangible common equity to tangible assets

8.27%


8.41%


7.95%


7.99%


7.96%


8.27%


7.96%

















EQUITY TO ASSETS RECONCILIATION















Tangible common equity to tangible assets

8.27%


8.41%


7.95%


7.99%


7.96%


8.27%


7.96%


Effect of preferred equity

1.74%


1.75%


1.67%


1.69%


1.68%


1.74%


1.68%


Effect of goodwill and other intangibles

0.14%


0.15%


0.16%


0.13%


0.14%


0.14%


0.14%



Equity to assets (GAAP)

10.14%


10.31%


9.78%


9.81%


9.78%


10.14%


9.78%

















OTHER PERIOD-END DATA















FTE Headcount

872


839


827


746


730


872


730


Assets per FTE

$                   3,382


$                   3,481


$                   3,680


$               4,014


$               4,124


$               3,382


$            4,124


Branch locations

66


67


67


62


62


66


62


Deposits per branch location

$                 39,093


$                 37,980


$                 39,781


$             41,799


$             42,401


$             39,093


$          42,401


















(1)Includes gain from acquisition.






















AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)




















Three Months Ended


Nine Months Ended




Sept.


Jun.


Mar.


Dec.


Sept.


Sept.


Sept.




2012


2012


2012


2011


2011


2012


2011

































INCOME STATEMENT






























Interest income















Interest and fees on loans

$                 29,165


$                 30,334


$                 29,482


$             35,361


$             31,633


$             88,981


$          93,480


Interest on taxable securities

2,017


2,187


2,309


2,350


2,672


6,513


7,904


Interest on nontaxable securities

365


374


365


357


330


1,104


964


Interest on deposits in other banks

104


108


120


148


144


332


469


Interest on federal funds sold

-


4


6


7


9


10


31



Total interest income

31,651


33,007


32,282


38,223


34,788


96,940


102,848

















Interest expense















Interest on deposits

$                   3,005


$                   3,635


$                   4,084


$               4,875


$               6,431


$             10,724


$          20,631


Interest on other borrowings

408


491


471


580


555


1,370


1,461



Total interest expense

3,413


4,126


4,555


5,455


6,986


12,094


22,092

















Net interest income

28,238


28,881


27,727


32,768


27,802


84,846


80,756

















Provision for loan losses

6,540


7,225


12,882


9,019


7,552


26,647


23,710

















Net interest income/(loss) after provision for loan losses

$                 21,698


$                 21,656


$                 14,845


$             23,749


$             20,250


$             58,199


$          57,046

















Noninterest income















Service charges on deposit accounts

$                   5,121


$                   4,770


$                   4,386


$               4,483


$               4,666


$             14,277


$          13,598


Mortgage banking activity

3,740


3,006


1,475


1,209


930


8,221


1,533


Other service charges, commissions and fees

331


322


391


340


392


1,044


907


Gain(loss) on sale of securities

-


-


-


-


-


0


238


Gains from acquisitions

-


-


20,037


-


26,867


20,037


26,867


Other non-interest income

639


777


975


657


1,090


2,391


2,746



Total noninterest income

9,831


8,875


27,264


6,689


33,945


45,970


45,889

















Noninterest expense















Salaries and employee benefits

13,766


12,125


11,446


10,688


10,252


37,337


29,293


Occupancy and equipment expenses

3,340


2,880


3,335


2,705


3,203


9,555


8,685


Data processing and telecommunications expenses

2,599


2,905


1,925


2,650


2,817


7,429


7,665


FDIC Insurance expense

1,079


1,067


1,067


1,078


1,096


3,213


3,459


Credit related expenses (1)

3,706


3,423


12,739


7,784


8,985


19,868


14,664


Advertising and marketing expenses

421


364


349


221


189


1,134


501


Amortization of intangible assets

364


412


220


220


277


996


782


Goodwill impairment

-


-


-


-


-


-


-


Other non-interest expenses

3,535


3,447


3,165


3,364


2,667


10,147


7,965



Total noninterest expense

28,810


26,623


34,246


28,710


29,486


89,679


73,014

















Operating profit/(loss)

$                   2,719


$                   3,908


$                   7,863


$               1,728


$             24,709


$             14,490


$          29,921


















Income tax (benefit)/expense

816


1,413


2,498


587


8,249


4,727


9,969

















Net income/(loss)

$                   1,903


$                   2,495


$                   5,365


$               1,141


$             16,460


$               9,763


$          19,952

















Preferred stock dividends

827


817


815


819


817


2,459


2,422

















Net income/(loss) available














     to common shareholders

$                   1,076


$                   1,678


$                   4,550


$                  322


$             15,643


$               7,304


$          17,530

















Diluted earnings available to common shareholders

0.04


0.07


0.19


0.01


0.66


0.30


0.74


















(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.

















AMERIS BANCORP


FINANCIAL HIGHLIGHTS


(unaudited)


(dollars in thousands except per share data and FTE headcount)































Three Months Ended





Sept.


Jun.


Mar.


Dec.


Sept.





2012


2012


2012


2011


2011















PERIOD-END BALANCE SHEET
























Assets












Cash and due from banks

$                 57,289


$                 60,126


$                 64,963


$             65,528


$             55,761



Federal funds sold and interest bearing balances

66,872


111,251


194,172


229,042


170,349



Investment securities available for sale, at fair value

361,051


366,980


371,791


339,967


340,839



Other investments

7,003


7,884


10,967


9,878


11,089



Mortgage loans held for sale

29,021


19,659


14,863


11,563


8,867
















Loans, net of unearned income

1,439,862


1,365,489


1,323,844


1,332,086


1,368,895



Covered loans

546,234


601,737


653,377


571,489


595,428



Less allowance for loan losses

25,901


26,198


28,689


35,156


35,238




Loans, net

1,960,195


1,941,028


1,948,532


1,868,419


1,929,085
















Foreclosed assets

37,325


36,397


36,414


46,680


50,866



Covered foreclosed assets

88,895


83,467


85,803


78,617


81,907




Total foreclosed assets

126,220


119,864


122,217


125,297


132,773
















Premises and equipment, net

75,609


75,192


72,755


73,124


71,848



Intangible assets, net

3,404


3,767


4,179


3,250


3,471



Goodwill

956


956


956


956


956



FDIC loss sharing receivable

198,440


203,801


220,016


242,394


239,719



Cash value of bank owned life insurance

50,087


-


-


-


-



Other assets

13,236


9,803


17,823


24,889


45,622




Total assets

$            2,949,383


$            2,920,311


$            3,043,234


$        2,994,307


$        3,010,379















Liabilities












Deposits:













Noninterest-bearing

$               464,503


$               429,113


$               444,707


$           395,347


$           354,434




Interest-bearing

2,115,614


2,115,559


2,220,653


2,196,219


2,274,458



Total deposits

2,580,117


2,544,672


2,665,360


2,591,566


2,628,892



Federal funds purchased & securities sold under













agreements to repurchase

17,404


19,800


28,790


37,665


13,180



Other borrowings

-


3,810


3,810


20,000


21,000



Other liabilities

10,387


8,821


5,308


9,037


10,616



Subordinated deferrable interest debentures

42,269


42,269


42,269


42,269


42,269




Total liabilities

2,650,177


2,619,372


2,745,537


2,700,537


2,715,957




























Stockholders' equity











  Preferred stock

$                 51,207


$                 51,044


$                 50,884


$             50,727


$             50,572


  Common stock

25,155


25,155


25,150


25,087


25,079


  Capital surplus

164,182


166,685


166,579


166,639


166,385


  Retained earnings

62,156


61,081


59,403


54,852


54,530


  Accumulated other comprehensive income/(loss)

7,337


7,805


6,512


7,296


8,687


  Less treasury stock

(10,831)


(10,831)


(10,831)


(10,831)


(10,831)




Total stockholders' equity

299,206


300,939


297,697


293,770


294,422




Total liabilities and stockholders' equity

$            2,949,383


$            2,920,311


$            3,043,234


$        2,994,307


$        3,010,379




























Other Data











Earning Assets

2,443,040


2,465,116


2,558,047


2,484,147


2,484,378


Intangible Assets

4,360


4,723


5,135


4,206


4,427


Interest Bearing Liabilities

2,175,287


2,181,438


2,295,522


2,296,153


2,350,907


Average Assets

2,935,715


2,966,527


2,978,469


2,965,799


3,048,337


Average Common Stockholders' Equity

242,614


243,463


242,817


248,729


228,716


AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)




































Three Months Ended


Nine Months Ended




Sept.


Jun.


Mar.


Dec.


Sept.


Sept.


Sept.




2012


2012


2012


2011


2011


2012


2011

















ASSET QUALITY INFORMATION(1)






























Allowance for loan losses















Balance at beginning of period

$                 26,198


$                 28,689


$                 35,156


$             35,238


$             34,523


$             35,156


$          34,576














-


-


Provision for loan loss (2)

5,690


6,070


12,600


8,243


7,544


24,360


22,098



















Charge-offs

6,092


8,738


19,337


8,909


7,088


34,167


22,714



Recoveries

105


177


270


584


259


552


1,278


Net charge-offs (recoveries)

5,987


8,561


19,067


8,325


6,829


33,615


21,436


















Ending balance

$                 25,901


$                 26,198


$                 28,689


$             35,156


$             35,238


$             25,901


$          35,238


















As a percentage of loans

1.80%


1.92%


2.17%


2.64%


2.57%


1.80%


2.57%


As a percentage of nonperforming loans

67.76%


58.98%


54.90%


49.64%


59.66%


67.76%


59.66%

































Net charge-off information















Charge-offs















Commercial, Financial and Agricultural

$                      235


$                      499


$                      155


$               1,952


$                  614


$                  889


$            3,855


Real Estate - Residential

2,268


2,251


2,123


1,758


1,697


6,642


3,641


Real Estate - Commercial and Farmland

715


4,520


12,964


829


2,962


18,199


7,851


Real Estate - Construction and Development

2,608


1,281


3,930


4,129


1,612


7,819


6,859


Consumer Installment

266


187


165


241


203


618


508


Other

-


-


-


-


-


-


-



Total charge-offs

6,092


8,738


19,337


8,909


7,088


34,167


22,714


















Recoveries















Commercial, Financial and Agricultural

23


30


48


21


85


101


153


Real Estate - Residential

37


21


141


39


48


199


107


Real Estate - Commercial and Farmland

8


8


16


9


37


32


43


Real Estate - Construction and Development

4


2


17


494


44


23


873


Consumer Installment

33


116


48


21


45


197


102


Other

-


-


-


-


-


-


-



Total recoveries

105


177


270


584


259


552


1,278


















Net charge-offs (recoveries)

$                   5,987


$                   8,561


$                 19,067


$               8,325


$               6,829


$             33,615


$          21,436

















































Non-accrual loans

38,225


44,421


52,258


70,823


59,067


38,225


59,067

Foreclosed assets 

37,736


36,397


36,414


46,680


50,866


37,736


50,866

Accruing loans delinquent 90 days or more

-


1


-


-


20


-


20

Total non-performing assets

75,961


80,819


88,672


117,503


109,953


75,961


109,953

















Non-performing assets as a percent of total assets

2.58%


2.77%


2.91%


3.92%


3.65%


2.58%


3.65%

Net charge offs as a percent of loans (Annualized)

1.65%


2.52%


5.79%


2.48%


1.98%


3.12%


2.09%

































(1) Asset quality information is presented net of covered assets where the Company's risk exposure is limited substantially by loss sharing agreements with the FDIC.

(2) During 2011 and 2012, the Company recorded provision for loan loss expense to account for losses where the initial estimate of cash flows was found to be excessive on loans

      acquired in FDIC assisted acquisitions.  These amounts are excluded from the calculation above but reflected in the Company's Consolidated Statement of Operations.

















AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)




























For the quarter ended:




Sept.


Jun.


Mar.


Dec.


Sept.



Loans by Type

2012


2012


2012


2011


2011



Commercial, financial & agricultural

$               189,374


$               174,903


$               149,320


$           142,960


$           159,020



Real estate - construction & development

125,315


124,556


122,331


130,270


145,770



Real estate - commercial & farmland

713,240


675,404


658,054


672,765


677,048



Real estate - residential

343,332


332,124


328,053


330,727


331,236



Consumer installment

43,441


41,431


42,085


37,296


38,163



Other

25,160


17,071


24,001


18,068


17,658



    Total Legacy (non-covered)

$            1,439,862


$            1,365,489


$            1,323,844


$        1,332,086


$        1,368,895















Commercial, financial & agricultural

$                 37,167


$                 41,372


$                 43,157


$             41,867


$             49,859



Real estate - construction & development

73,356


83,991


93,430


77,077


82,933



Real estate - commercial & farmland

298,903


322,393


350,244


321,257


323,760



Real estate - residential

135,154


150,683


162,768


127,644


135,318



Consumer installment

1,654


3,298


3,778


3,644


3,558



    Total Covered (at fair value)

$               546,234


$               601,737


$               653,377


$           571,489


$           595,428















Total Loan Portfolio:












Commercial, financial & agricultural

$               226,541


$               216,275


$               192,477


$           184,827


$           208,879



Real estate - construction & development

198,671


208,547


215,761


207,347


228,703



Real estate - commercial & farmland

1,012,143


997,797


1,008,298


994,022


1,000,808



Real estate - residential

478,486


482,807


490,821


458,371


466,554



Consumer installment

45,095


44,729


45,863


40,940


41,721



Other

25,160


17,071


24,001


18,068


17,658



    Total Loans

$            1,986,096


$            1,967,226


$            1,977,221


$        1,903,575


$        1,964,323







































Troubled Debt Restructurings:












Accruing loan types:












Commercial, financial & agricultural

$                      804


$                           -


$                          -


$                      -


$                       -



Real estate - construction & development

1,481


1,205


1,305


1,774


1,697



Real estate - commercial & farmland

9,540


13,293


17,765


9,622


7,005



Real estate - residential

8,068


8,472


7,778


6,555


7,889



    Total Accruing TDRs

$                 19,893


$                 22,970


$                 26,848


$             17,951


$             16,591















Non-accruing loan types:












Commercial, financial & agricultural

$                           -


$                        18


$                          -


$                      -


$                       -



Real estate - construction & development

-


1,124


1,626


2,122


1,426



Real estate - commercial & farmland

2,770


2,815


2,176


4,737


5,392



Real estate - residential

620


1,213


1,065


1,296


227



    Total Non-accrual TDRs

$                   3,390


$                   5,170


$                   4,867


$               8,155


$               7,045















Total Troubled Debt Restructurings

$                 23,283


$                 28,140


$                 31,715


$             26,106


$             23,636





































The following table presents the non-covered loan portfolio by risk grade:











Grade 10 - Prime credit

$                 34,809


$                 28,282


$                 26,454


$             23,930


$             23,461



Grade 15 - Good credit

244,466


251,157


256,854


261,489


193,881



Grade 20 - Satisfactory credit

592,282


540,562


495,252


485,364


550,748



Grade 23 - Performing, under-collateralized credit

30,176


30,131


29,631


29,730


30,538



Grade 25 - Minimum acceptable credit

427,599


397,984


387,133


386,365


425,142



Grade 30 - Other asset especially mentioned

35,478


36,307


42,329


41,584


52,760



Grade 40 - Substandard

74,606


80,824


85,666


102,947


91,857



Grade 50 - Doubtful

446


242


522


677


508



Grade 60 - Loss

-


-


3


-


-



  Total

$            1,439,862


$            1,365,489


$            1,323,844


$        1,332,086


$        1,368,895

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)




































Three Months Ended


Nine Months Ended




Sept.


Jun.


Mar.


Dec.


Sept.


Sept.


Sept.




2012


2012


2012


2011


2011


2012