Ameris Bancorp Reports Operating Net Income Of $10.0 Million, Or $0.40 Per Diluted Share, For Second Quarter 2014

MOULTRIE, Ga., July 22, 2014 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported operating net income of $10.0 million, or $0.40 per diluted share, for the quarter ended June 30, 2014, compared to $6.2 million, or $0.26 per diluted share, for the quarter ended June 30, 2013.  For the year to date period ending June 30, 2014, the Company reported operating net income of $18.1 million, or $0.71 per diluted share, compared to $11.1 million, or $0.46 per diluted share, for the same period in 2013.  During the second quarter of 2014, the Company completed the acquisition of Coastal Bankshares, Inc. ("Coastal") and recorded approximately $1.90 million, or $0.075 per share, of after-tax merger related charges.  Including these charges, the Company reported net income in the second quarter of 2014 of $8.1 million, or $0.32 per common share. Commenting on the Company's quarterly results, Edwin W. Hortman, Jr., the Company's President and Chief Executive Officer, said, "I am pleased with our operating results for the second quarter of 2014.  Our operating return on average assets and return on tangible equity for the quarter improved from the prior period to 1.15% and 15.85%, respectively.  Strong trends in loan growth, funded mostly with non-rate sensitive deposits, very solid mortgage results and over $1.1 million of SBA revenue were among the factors contributing to a successful quarter."

Highlights of the Company's performance and results for the second quarter of 2014 include the following:

  • Successful close of the Coastal acquisition on June 30, 2014
  • Net income available to common shareholders increased 30.4%, compared to the same quarter in 2013
  • The Company declared a cash dividend of $0.05 per common share
  • On an operating basis, return on assets and return on average tangible equity were 1.15% and 15.85%, respectively (including merger-related charges, return on assets and return on average tangible equity were 0.93% and 10.53%, respectively)
  • Total revenue increased to $54.4 million in the second quarter of 2014, compared to $43.3 million in the same quarter in 2013
  • The Company's net interest margin was 4.65%, compared to 4.57% in the first quarter of 2014
  • Legacy loans (loans excluding purchased non-covered and covered loans) increased by $74.7 million during the quarter, reflecting an annualized growth rate of 17.7%
  • Tangible common equity to tangible assets remained above 7.00% at 7.04% despite the acquisition of Coastal
  • Noninterest income was $15.8 million, compared to $11.4 million in the second quarter of 2013
  • Net income from the Company's mortgage operations increased to $1.6 million, compared to $1.0 million in the same quarter in 2013
  • SBA loan premium and servicing income increased to $1.4 million in the second quarter of 2014, compared to $406,000 in the same quarter in 2013

Acquisition of Coastal
The Company successfully completed the acquisition of Coastal on June 30, 2014.  Highlights of the merger are as follows:

  • Added $449.0 million in total assets and 6 retail offices in Chatham, Liberty and Effingham Counties, Georgia
  • Added $279.4 million in loans and $369.0 million in total deposits
  • The Company recorded $23.9 million in additional goodwill and $4.3 million in core deposit intangibles associated with the merger
  • Non-accretable credit marks totaling $16.7 million were recorded on the loan portfolio; an additional $3.5 million was recorded against OREO balances
  • A total of 1,598,987 shares were issued at a fair value on the closing date of $34.5 million
  • The system conversion is planned for the third quarter of 2014, at which time management expects to realize most of the operating efficiencies from the acquisition

Operating Results
Net income in the second quarter of 2014 totaled $8.1 million, an increase of 21.7% compared to the same quarter in 2013.  For the year to date period, the Company's earnings before preferred dividends were $16.5 million, compared to $12.0 million in the year to date period in 2013.  Return on average assets and average tangible common equity were 0.93% and 11.11%, respectively, in the second quarter of 2014 compared to 0.95% and 10.66%, respectively, in the same quarter of 2013.

Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2014 totaled $35.3 million, an increase of $5.8 million, or 19.6%, compared to the $29.5 million reported for the second quarter of 2013.  The Company's net interest margin decreased during the quarter to 4.65%, compared to 4.96% during the second quarter of 2013.  The declines in the Company's net interest margin results from continued repricing of the loan portfolio in the current low interest rate environment.

Yields on earning assets in the second quarter of 2014 were 5.08%, compared to 5.38% in the second quarter of 2013.  Total loan yields (including loans held for sale) reflected market pressures and the low rate environment, falling from 5.95% in the second quarter of 2013 to 5.59% in the second quarter of 2014.  Excluding the impact of accretion income, overall loan yields fell to 5.17% in the second quarter of 2014, compared to 5.59% in the same quarter of 2013.  Maturing loans at higher rates are being replaced with loan production in the current quarter of 2014 yielding 4.82%, compared to 4.89% in the same quarter of 2013.

Investment securities yields during the second quarter of 2014 were 2.89%, compared to 2.72% in the same quarter in 2013.   Yield opportunities have been generally higher over the past year and allowed for some expansion in yields and total balances of investment securities.

Total interest expense for the second quarter of 2014 was $3.3 million, compared to $2.5 million in the same quarter of 2013.  Increases in total interest expense were driven primarily by increases in total deposits and other borrowings resulting from both acquisition activity and organic growth.  Deposit costs were only slightly lower during the second quarter of 2014 at 0.29%, compared to 0.34% during the second quarter of 2013.  Yields on each deposit class were substantially unchanged over the past year except for CDs, which fell from 0.74% during the second quarter of 2013 to 0.64% in the second quarter of 2014.  Management does not expect deposit costs or overall funding costs to decrease materially in the coming quarters given tightening liquidity and increasingly stronger forecasts for asset growth.

Non-interest Income
Non-interest income in the second quarter of 2014 improved to $15.8 million, an increase of $4.4 million, or 39.0%, compared to the same quarter in 2013.  The Company's mortgage operations had its best quarter to date with total non-interest income of $7.0 million, an increase of $2.0 million, or 40.0%, compared to the same quarter in 2013.  Total production in the second quarter of 2014 amounted to $184.3 million (79.1% retail and 20.9% wholesale), compared to $143.5 million in the same quarter of 2013 (71.5% retail and 28.5% wholesale).  Relationships with larger builders and real estate firms have contributed to the Company's production increases and growth in net income contribution from this division.  Open pipelines finished the second quarter of 2014 at $86.2 million, compared to $73.0 million at the beginning of the second quarter of 2014 and $60.0 million at the end of the second quarter of 2013. 

Service charges in the second quarter of 2014 were $5.8 million, an increase of $1.2 million, or 24.5%, compared to the same quarter in 2013.  Stronger growth in commercial and treasury management accounts contributed to the growth in income, as did strong growth in balances that resulted from the Company's merger with The Prosperity Banking Company ("Prosperity") in December 2013.

During the quarter, the Company recorded approximately $1.4 million of SBA income, compared to $406,000 in the same quarter in 2013.  Expenses related to SBA lending also increased, from $152,000 in the second quarter of 2013 to $822,000 in the second quarter of 2014.  The Company has been building pipelines and production teams over the past year and anticipated some level of increased revenue during the year.  Management believes the current quarter's revenue levels are sustainable but believes net income contribution from SBA activities will be relatively higher due to limited recruiting costs going forward.

Non-interest Expense
Operating expenses for the second quarter of 2014 totaled $37.3 million, including approximately $2.9 million of pre-tax merger-related charges associated with the acquisition of Coastal on June 30, 2014.  Excluding the merger charges, operating expenses totaled $34.4 million for the second quarter of 2014, compared to $26.7 million for the same quarter in 2013.  Growth in expenses over the prior year relates mostly to the acquisition of Prosperity in December 2013 and growth in the Company's mortgage operations over the past year.

On a linked quarter basis, operating expenses exclusive of the merger-related charges reflected an increase of $1.2 million from $33.2 million in the first quarter of 2014 to $34.4 million in the second quarter of 2014.  Increases in salaries and benefits associated with higher commissions and incentive accruals were offset by reduced compensation resulting from Prosperity related conversion activity that occurred during the first quarter.  Salaries and benefits increased to $16.9 million in the current quarter of 2014, compared to $13.4 million in the same quarter in 2013, as commissions and support costs in the Company's mortgage operations increased commensurate with the increase in revenues.  Excluding compensation costs in the Company's mortgage operations, salaries and benefits were $13.0 million in the second quarter of 2014, compared to $13.8 million in the first quarter of 2014 and $10.5 million in the second quarter of 2013.  Total noninterest expenses in the Company's mortgage operations increased to $5.9 million in the second quarter of 2014, compared to $4.3 million in the second quarter of 2013.

Non-provision credit resolution-related costs increased from $2.3 million in the second quarter of 2013 to $2.8 million in the second quarter of 2014.  Occupancy and equipment costs increased from $3.0 million in the second quarter of 2013 to $4.1 million in the second quarter of 2014 due to the increased number of branches after the acquisition of Prosperity.  Data processing and telecommunications expenses increased from $2.8 million in the second quarter of 2013 to $3.9 million in the second quarter of 2014.    

Balance Sheet Trends
Total assets at June 30, 2014 were $3.97 billion, compared to $3.67 billion reported at December 31, 2013.  On June 30, 2014, the Company completed its acquisition of Coastal which increased total assets by $449.0 million

Loans, including loans held for sale totaled $2.88 billion at June 30, 2014, compared to $2.52 billion at December 31, 2013.  During the second quarter, organic growth in non-covered, non-purchased loans amounted to $74.7 million, or 17.7% on an annualized basis.  Growth during the second quarter of 2014 was spread evenly across most loan types, including agriculture, municipal, commercial real estate and mortgage.

Investment securities at the end of the quarter amounted to $546.6 million, or 15.7% of earning assets, compared to $503.1 million, or 15.6% of earning assets, at December 31, 2013. 

Funding sources continued to improve over year end levels.  At June 30, 2014, total deposits amounted to $3.39 billion, or 94.0% of total funding, compared to $3.0 billion and 90.0%, respectively, at December 31, 2013.  Non-interest bearing deposits reflected the largest growth, ending the current quarter at $790.8 million, or 23.3% of total deposits, compared to $668.5 million, or 22.3%, at December 31, 2013.  Reductions in borrowings with the FHLB of $112.0 million have occurred throughout the year and have been the primary driver of the Company's increased reliance on core deposits for its total funding.

Stockholders' equity at June 30, 2014 totaled $343.4 million, compared to $316.7 million reported at December 31, 2013.  The retirement of $28 million of preferred equity in the first quarter of 2014 has been more than offset by the Company's consolidated earnings and issuance of common stock associated with the acquisition of Coastal on June 30, 2014.  During the current quarter, the Company issued 1.6 million shares to complete the purchase of Coastal, increasing stockholders' equity by $34.5 million

Tangible book value declined only slightly during the quarter, from $10.31 per share at March 31, 2014 to $10.26 per share at June 30, 2014.  Increases in tangible book value associated with the Company's earnings during the second quarter were offset by the acquisition of Coastal, which increased goodwill and intangible assets by $28.1 million.  Management estimates the dilutive effect to tangible book associated with the acquisition of Coastal at approximately 4.2% and believes the earn-back for this dilution is approximately two years.

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 74 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


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

















EARNINGS































Net Income Available to Common Shareholders

$                   8,130


$                   8,064


$                      966


$               6,234


$               6,236


$             16,194


$             11,080

















PER COMMON SHARE DATA















Earnings per share available to common shareholders:
















Basic

$                     0.32


$                     0.32


$                     0.04


$                 0.26


$                 0.26


$                 0.64


$                 0.46



Diluted

$                     0.32


$                     0.32


$                     0.04


$                 0.26


$                 0.26


$                 0.63


$                 0.46


Cash Dividends per share

$                     0.05


$                           -


$                          -


$                       -


$                       -


$                 0.05


$                       -


Book value per share (period end)

$                   12.83


$                   11.93


$                   11.50


$               10.98


$               10.88


$               12.83


$               10.88


Tangible book value per share (period end)

$                   10.26


$                   10.31


$                     9.87


$               10.85


$               10.74


$               10.26


$               10.74


Weighted average number of shares:
















Basic

25,180,665


25,144,342


24,021,447


23,900,665


23,878,898


25,162,604


23,873,325



Diluted

25,633,130


25,573,320


24,450,619


24,315,821


24,287,628


25,615,069


24,282,055


Period-end number of shares

26,771,821


25,159,073


25,098,427


23,907,509


23,894,327


26,771,821


23,894,327


Market data:
















High closing price

$                   23.90


$                   24.00


$                   21.42


$               19.79


$               16.94


$               24.00


$               16.94



Low closing price

$                   19.73


$                   19.86


$                   17.69


$               17.35


$               13.16


$               19.73


$               12.79



Period end closing price

$                   21.56


$                   23.30


$                   21.11


$               18.38


$               16.85


$               21.56


$               16.85



Average daily volume

79,038


103,279


94,636


75,545


53,403


90,963


52,669

















PERFORMANCE RATIOS















Return on average assets

0.93%


0.96%


0.19%


0.94%


0.95%


0.95%


0.85%


Return on average common equity

10.53%


11.66%


2.20%


10.75%


10.66%


10.73%


9.60%


Earning asset yield (TE)

5.08%


5.01%


4.84%


5.20%


5.38%


5.05%


5.30%


Total cost of funds

0.42%


0.43%


0.40%


0.39%


0.40%


0.43%


0.40%


Net interest margin (TE)

4.65%


4.57%


4.43%


4.80%


4.96%


4.61%


4.88%


Non-interest income excluding securities transactions,
















as a percent of total revenue (TE)

28.87%


25.02%


26.45%


27.76%


26.16%


27.02%


26.21%


Efficiency ratio

73.05%


70.36%


92.74%


69.09%


65.32%


71.76%


68.98%

















CAPITAL ADEQUACY (period end)















Stockholders' equity to assets

8.64%


8.60%


8.63%


10.30%


10.25%


8.64%


10.25%


Tangible common equity to tangible assets

7.04%


7.53%


6.83%


9.22%


9.15%


7.04%


9.15%

















EQUITY TO ASSETS RECONCILIATION















Tangible common equity to tangible assets

7.04%


7.53%


6.83%


9.22%


9.15%


7.04%


9.15%


Effect of preferred equity

0.00%


0.00%


0.76%


0.99%


0.99%


0.00%


0.99%


Effect of goodwill and other intangibles

1.61%


1.07%


1.04%


0.09%


0.11%


1.61%


0.11%



Equity to assets (GAAP)

8.64%


8.60%


8.63%


10.30%


10.25%


8.64%


10.25%

















OTHER PERIOD-END DATA















Banking Division FTE

888


785


820


678


683


888


683


Mortgage Division FTE

175


161


164


158


155


175


155



Total Ameris Bancorp FTE Headcount

1,063


946


984


836


838


1,063


838


















Assets per Banking Division FTE

$                   4,474


$                   4,443


$                   4,473


$               4,157


$               4,112


$               4,474


$               4,112


Branch locations

74


68


68


57


57


74


57


Deposits per branch location

$                 45,798


$                 44,274


$                 44,106


$             42,867


$             42,861


$             45,798


$             42,861

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




















Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

































INCOME STATEMENT






























Interest income















Interest and fees on loans

$                 35,297


$                 34,469


$                 29,289


$             29,633


$             29,859


$             69,766


$             58,575


Interest on taxable securities

2,953


2,985


1,998


1,720


1,719


5,938


3,416


Interest on nontaxable securities

312


335


342


352


344


647


719


Interest on deposits in other banks

45


79


118


44


29


124


114


Interest on federal funds sold

-


5


2


-


-


5


0



Total interest income

38,607


37,873


31,749


31,749


31,951


76,480


62,824

















Interest expense















Interest on deposits

$                   2,205


$                   2,183


$                   2,066


$               2,025


$               2,083


$               4,388


$               4,309


Interest on other borrowings

1,138


1,206


632


404


392


2,344


701



Total interest expense

3,343


3,389


2,698


2,429


2,475


6,732


5,010

















Net interest income

35,264


34,484


29,051


29,320


29,476


69,748


57,814

















Provision for loan losses

1,365


1,726


1,478


2,920


4,165


3,091


7,088

















Net interest income after provision for loan losses

$                 33,899


$                 32,758


$                 27,573


$             26,400


$             25,311


$             66,657


$             50,726

















Noninterest income















Service charges on deposit accounts

$                   5,847


$                   5,586


$                   5,065


$               4,948


$               4,695


$             11,433


$               9,532


Mortgage banking activity

6,944


5,068


4,431


5,232


5,001


12,012


9,465


Other service charges, commissions and fees

662


652


612


593


617


1,314


946


Gain(loss) on sale of securities

-


6


-


-


(1)


6


171


Other non-interest income

2,366


1,442


1,409


1,515


1,072


3,808


2,630



Total noninterest income

15,819


12,754


11,517


12,288


11,384


28,573


22,744

















Noninterest expense















Salaries and employee benefits

16,942


17,394


15,071


14,412


13,381


34,336


27,187


Occupancy and equipment expenses

4,071


4,064


3,228


3,149


2,978


8,135


5,909


Data processing and telecommunications expenses

3,940


3,454


3,061


3,072


2,836


7,394


5,406


Credit resolution related expenses (1)

2,840


2,190


5,322


2,971


2,349


5,030


7,193


Advertising and marketing expenses

718


710


604


434


327


1,428


582


Amortization of intangible assets

437


533


346


346


358


970


722


Merger and conversion charges

2,872


450


4,350


512


-


3,322


-


Other non-interest expenses

5,498


4,444


5,642


3,853


4,459


9,942


8,573



Total noninterest expense

37,318


33,239


37,624


28,749


26,688


70,557


55,572

















Income before income taxes

$                 12,400


$                 12,273


$                   1,466


$               9,939


$             10,007


$             24,673


$             17,898


















Income tax expense

4,270


3,923


88


3,262


3,329


8,193


5,935

















Net income

$                   8,130


$                   8,350


$                   1,378


$               6,677


$               6,678


$             16,480


$             11,963

















Preferred stock dividends

-


286


412


443


442


286


883

















Net income available to common shareholders

$                   8,130


$                   8,064


$                      966


$               6,234


$               6,236


$             16,194


$             11,080

















Diluted earnings available to common shareholders

0.32


0.32


0.04


0.26


0.26


0.63


0.46

















(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




Jun.


Mar.


Dec.


Sept.


Jun.




2014


2014


2013


2013


2013













PERIOD-END BALANCE SHEET






















Assets











Cash and due from banks

$                 80,986


$                 71,387


$                 62,955


$             53,516


$             50,343


Federal funds sold and interest bearing balances

44,800


48,677


204,984


73,899


43,904


Investment securities available for sale, at fair value

535,630


456,713


486,235


312,248


316,168


Other investments

10,971


9,322


16,828


7,764


7,764


Mortgage loans held for sale

81,491


51,693


67,278


69,634


62,580














Loans, net of unearned income

1,770,059


1,695,382


1,618,454


1,589,267


1,555,827


Purchased, non-covered loans

702,131


437,269


448,753


-


-


Covered loans

331,250


372,694


390,237


417,649


443,517


Less allowance for loan losses

(22,254)


(22,744)


(22,377)


(23,854)


(24,217)



Loans, net

2,781,186


2,482,601


2,435,067


1,983,062


1,975,127














Other real estate owned

35,373


33,839


33,351


37,978


39,885


Purchased, non-covered other real estate owned

16,598


3,864


4,276


-


-


Covered other real estate owned

38,426


42,636


45,893


52,552


62,178



Total other real estate owned

90,397


80,339


83,520


90,530


102,063














Premises and equipment, net

99,495


87,430


103,188


65,661


70,167


Goodwill

58,903


35,049


35,049


956


956


Other intangibles, net

9,812


5,477


6,009


1,972


2,318


FDIC loss sharing receivable

49,180


53,181


65,441


81,763


105,513


Cash value of bank owned life insurance

57,864


49,738


49,432


49,095


47,495


Other assets

72,420


56,377


51,663


28,402


24,277



Total assets

$            3,973,135


$            3,487,984


$            3,667,649


$        2,818,502


$        2,808,675













Liabilities











Deposits:












Noninterest-bearing

$               790,798


$               698,866


$               668,531


$           475,505


$           475,445



Interest-bearing

2,598,237


2,311,781


2,330,700


1,967,916


1,967,658


Total deposits

3,389,035


3,010,647


2,999,231


2,443,421


2,443,103


Federal funds purchased & securities sold under












agreements to repurchase

51,109


49,974


83,516


20,255


19,142


Other borrowings

100,293


59,677


194,572


5,000


-


Other liabilities

24,457


12,028


18,165


17,201


16,384


Subordinated deferrable interest debentures

64,842


55,628


55,466


42,269


42,269



Total liabilities

3,629,736


3,187,954


3,350,950


2,528,146


2,520,898

























Stockholders' equity










  Preferred stock

$                           -


$                           -


$                 28,000


$             27,938


$             27,845

  Common stock

28,155


26,536


26,462


25,271


25,258

  Capital surplus

222,550


190,513


189,722


165,835


165,483

  Retained earnings

100,185


92,055


83,991


83,025


76,791

  Accumulated other comprehensive income/(loss)

4,123


2,374


(294)


(531)


3,582

  Less treasury stock

(11,614)


(11,448)


(11,182)


(11,182)


(11,182)



Total stockholders' equity

343,399


300,030


316,699


290,356


287,777



Total liabilities and stockholders' equity

$            3,973,135


$            3,487,984


$            3,667,649


$        2,818,502


$        2,808,675

























Other Data










Earning Assets

3,465,361


3,062,428


3,215,941


2,462,697


2,421,996

Intangible Assets

68,715


40,526


41,058


2,928


3,274

Interest Bearing Liabilities

2,814,481


2,477,060


2,664,254


2,035,440


2,029,069

Average Assets

3,494,466


3,521,588


2,937,434


2,806,799


2,820,863

Average Common Stockholders' Equity

309,696


290,462


248,429


246,490


251,240

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

















ASSET QUALITY INFORMATION(1)






























Allowance for loan losses















Balance at beginning of period

$                 22,744


$                 22,377


$                 23,854


$             24,217


$             23,382


$             22,377


$             23,593


















Provision for loan loss (2)

997


1,501


1,200


2,449


3,695


2,498


6,298



















Charge-offs

1,973


1,606


3,591


3,457


3,200


3,579


6,236



Recoveries

486


472


914


645


340


958


562


Net charge-offs (recoveries)

1,487


1,134


2,677


2,812


2,860


2,621


5,674


















Ending balance

$                 22,254


$                 22,744


$                 22,377


$             23,854


$             24,217


$             22,254


$             24,217


















As a percentage of loans

1.26%


1.34%


1.38%


1.50%


1.56%


1.26%


1.56%


As a percentage of nonperforming loans

100.65%


85.09%


76.63%


75.20%


76.13%


100.65%


76.13%

































Net charge-off information















Charge-offs















Commercial, financial & agricultural

$                      165


$                      743


$                      543


$                  482


$                  324


$                  908


$                  734


Real estate - residential

752


181


1,785


1,323


1,328


933


2,107


Real estate - commercial & farmland

769


533


698


1,080


768


1,302


1,793


Real estate - construction & development

157


65


422


367


576


222


1,231


Consumer installment

130


84


143


205


204


214


371



Total charge-offs

1,973


1,606


3,591


3,457


3,200


3,579


6,236


















Recoveries















Commercial, financial & agricultural

134


49


92


212


44


183


128


Real estate - residential

48


83


368


291


144


131


229


Real estate - commercial & farmland

9


143


12


5


10


152


13


Real estate - construction & development

96


108


385


84


2


204


4


Consumer installment

199


89


57


53


140


288


188



Total recoveries

486


472


914


645


340


958


562


















Net charge-offs (recoveries)

$                   1,487


$                   1,134


$                   2,677


$               2,812


$               2,860


$               2,621


$               5,674

















































Non-accrual loans (excluding purchased non-covered














    and covered loans)

22,111


26,729


29,203


31,720


31,811


22,111


31,811

Non-accrual purchased non-covered loans

15,770


15,318


6,659




-


15,770



Foreclosed assets (excluding purchased assets)

35,373


33,839


33,351


37,978


39,885


35,373


39,885

Purchased, non-covered other real estate owned

16,598


3,864


4,276




-


16,598



Accruing loans delinquent 90 days or more

-


-


-


-


-


-


-

Total non-performing assets, excluding covered assets

89,852


79,750


73,489


69,698


71,696


89,852


71,696

















Non-performing assets as a percent of total assets

2.26%


2.29%


2.00%


2.47%


2.55%


2.26%


2.55%

Net charge offs as a percent of loans (Annualized)

0.34%


0.27%


0.66%


0.70%


0.74%


0.30%


0.74%

(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 2013 and 2014, 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:




Jun.


Mar.


Dec.


Sept.


Jun.



Loans by Type

2014


2014


2013


2013


2013



Commercial, financial & agricultural

$               304,588


$               270,571


$               244,373


$           244,991


$           208,424



Real estate - construction & development

149,346


149,543


146,371


132,277


134,607



Real estate - commercial & farmland

850,000


836,230


808,323


799,149


788,654



Real estate - residential

422,731


393,001


351,886


355,920


357,685



Consumer installment

31,902


32,345


34,249


36,303


36,923



Other

11,492


13,692


33,252


20,627


29,534



    Total Legacy (excluding purchased












          non-covered and covered)

$            1,770,059


$            1,695,382


$            1,618,454


$        1,589,267


$        1,555,827















Commercial, financial & agricultural

$                 41,583


$                 30,810


$                 32,141


$                      -


$                       -



Real estate - construction & development

64,084


31,820


31,176


-


-



Real estate - commercial & farmland

311,748


174,281


179,898


-


-



Real estate - residential

278,451


196,078


200,851


-


-



Consumer installment

6,265


4,280


4,687


-


-



    Total Purchased non-covered (net of discounts)

$               702,131


$               437,269


$               448,753


$                      -


$                       -















Commercial, financial & agricultural

$                 25,209


$                 24,813


$                 26,550


$             27,768


$             27,371



Real estate - construction & development

31,600


41,434


43,179


50,702


52,972



Real estate - commercial & farmland

188,643


214,649


224,451


237,086


255,102



Real estate - residential

85,518


91,372


95,173


101,146


107,107



Consumer installment

280


426


884


947


965



    Total Covered (net of discounts)

$               331,250


$               372,694


$               390,237


$           417,649


$           443,517















Total Loan Portfolio:












Commercial, financial & agricultural

$               371,380


$               326,194


$               303,064


$           272,759


$           235,795



Real estate - construction & development

245,030


222,797


220,726


182,979


187,579



Real estate - commercial & farmland

1,350,391


1,225,160


1,212,672


1,036,235


1,043,756



Real estate - residential

786,700


680,451


647,910


457,066


464,792



Consumer installment

38,447


37,051


39,820


37,250


37,888



Other

11,492


13,692


33,252


20,627


29,534



    Total Loans

$            2,803,440


$            2,505,345


$            2,457,444


$        2,006,916


$        1,999,344







































Troubled Debt Restructurings, excluding purchased non-covered and covered loans:







Accruing loan types:












Commercial, financial & agricultural

$                      257


$                      711


$                      515


$                  521


$               1,059



Real estate - construction & development

2,080


1,953


1,896


1,926


1,946



Real estate - commercial & farmland

7,590


8,733


6,913


6,693


7,529



Real estate - residential

7,335


7,364


7,818


7,871


7,468



Consumer installment

75


87


72


13


13



    Total Accruing TDRs

$                 17,337


$                 18,848


$                 17,214


$             17,024


$             18,015















Non-accruing loan types:












Commercial, financial & agricultural

$                      465


$                        40


$                      525


$                  533


$                       -



Real estate - construction & development

32


29


32


29


29



Real estate - commercial & farmland

2,151


1,316


2,273


1,858


1,493



Real estate - residential

1,044


961


834


704


1,046



Consumer installment

51


19


19


26


-



    Total Non-accrual TDRs

$                   3,743


$                   2,365


$                   3,683


$               3,150


$               2,568















Total Troubled Debt Restructurings

$                 21,080


$                 21,213


$                 20,897


$             20,174


$             20,583





































The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:





Grade 10 - Prime credit

$               110,842


$                 93,805


$                 74,381


$             72,759


$             44,852



Grade 15 - Good credit

226,652


243,963


230,212


230,810


241,690



Grade 20 - Satisfactory credit

866,356


817,718


773,051


731,154


708,606



Grade 23 - Performing, under-collateralized credit

28,429


31,056


31,604


30,729


29,829



Grade 25 - Minimum acceptable credit

450,363


417,177


420,491


433,358


443,105



Grade 30 - Other asset especially mentioned

33,360


38,240


30,591


28,952


29,265



Grade 40 - Substandard

54,047


53,286


57,987


61,270


57,880



Grade 50 - Doubtful

10


137


137


235


598



Grade 60 - Loss

-


-


-


-


2



  Total

$            1,770,059


$            1,695,382


$            1,618,454


$        1,589,267


$        1,555,827

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

































AVERAGE BALANCES
































Federal funds sold

$                      500


$                   7,455


$                   3,243


$                      -


$                       -


$               3,958


$                       -



Interest bearing deposits in banks

50,850


99,751


172,117


66,424


52,090


75,165


76,635



Investment securities - taxable

418,498


411,251


276,702


260,262


271,282


414,895


278,971



Investment securities - nontaxable

49,631


51,092


51,291


52,279


50,300


50,357


52,050



Other investments

6,629


12,330


8,255


7,764


7,002


8,044


6,845



Mortgage loans held for sale

54,517


49,397


65,683


61,249


48,890


51,884


40,765



Loans

1,706,564


1,639,672


1,602,942


1,564,311


1,523,654


1,673,493


1,489,902



Purchased non-covered loans

433,249


441,138


43,900


-


-


437,068


-



Covered loans

354,766


379,460


401,045


427,482


444,616


367,045


468,024



  Total Earning Assets

$            3,075,204


3,091,546


2,625,178


2,439,771


$        2,397,834


$        3,081,909


$        2,413,192



















Noninterest bearing deposits

$               680,058


$               666,493


$               528,732


$           468,588


$           479,054


$           673,313


$           480,400



NOW accounts

691,353


675,199


604,828


573,088


579,312


683,321


606,163



MMDA

770,047


749,150


655,782


639,304


611,562


759,657


602,254



Savings accounts

145,528


143,109


107,058


104,498


104,534


144,325


103,463



Retail CDs < $100,000

356,483


373,523


293,689


290,771


298,553


364,956


308,270



Retail CDs > $100,000

360,703


361,861


352,043


349,931


358,980


361,279


361,314



Brokered CDs

5,970


5,970


10,687


12,970


16,176


5,970


17,803



  Total Deposits

3,010,142


2,975,305


2,552,819


2,439,150


2,448,171


2,992,821


2,479,667



















FHLB advances

28,626


68,333


9,521


-


-


48,370


-



Other borrowings

35,280


30,004


6,304


1,739


-


32,657


-



Subordinated debentures

55,789


55,092


46,263


42,269


42,269


55,442


42,269



Federal funds purchased and securities sold













-



under agreements to repurchase

40,008


57,112


41,402


18,446


20,530


48,513


23,842



  Total Non-Deposit Funding

159,703


210,541


103,490


62,454


62,799


184,982


66,111



















  Total Funding

$            3,169,845


$            3,185,846


$            2,656,309


$        2,501,604


$        2,510,970


$        3,177,803


$        2,545,778

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




















Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

















INTEREST INCOME/EXPENSE































INTEREST INCOME
















Federal funds sold

$                           -


$                          5


$                          2


$                      -


$                       -


$                      5


$                       -



Interest bearing deposits in banks

45


79


118


44


29


124


114



Investment securities - taxable

2,953


2,985


1,998


1,720


1,719


5,938


3,416



Investment securities - nontaxable (TE)

421


452


462


475


464


873


970



Mortgage loans held for sale

457


403


554


603


467


860


758



Loans (TE)

21,996


20,647


20,810


20,882


20,396


42,643


39,508



Purchased non-covered loans

7,933


6,865


570


-


-


14,798


-



Covered loans

5,164


6,761


7,508


8,248


9,066


11,925


17,831



     Total Earning Assets

$                 38,969


$                 38,197


$                 32,022


$             31,972


$             32,141


$             77,166


$             62,597


















INTEREST EXPENSE
















Non-interest bearing deposits

$                           -


$                           -


$                          -


$                      -


$                       -


$                       -


$                       -



NOW accounts

291


288


297


248


250


579


552



MMDA

722


681


625


606


555


1,403


1,077



Savings accounts

40


37


29


29


29


77


58



Retail CDs < $100,000

478


489


399


406


437


967


935



Retail CDs > $100,000

626


640


629


635


675


1,266


1,381



Brokered CDs

48


48


86


101


137


96


306



     Total Deposits

2,205


2,183


2,065


2,025


2,083


4,388


4,309



















FHLB advances

26


37


63


-


-


63


-



Other borrowings

415


408


137


20


-


823


-



Subordinated debentures

666


708


376


359


363


1,374


633



Federal funds purchased and securities sold











0





     under agreements to repurchase

31


53


56


26


29


84


68



  Total Non-Deposit Funding

1,138


1,206


632


405


392


2,344


701



















       Total Funding

$                   3,343


$                   3,389


$                   2,697


$               2,430


$               2,475


$               6,732


$               5,010



















Net Interest Income (TE)

$                 35,626


$                 34,808


$                 29,325


$             29,542


$             29,666


$             70,434


$             57,587

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.




2014


2014


2013


2013


2013


2014


2013

YIELDS (1)
































Federal funds sold

0.00%


0.27%


0.24%


0.00%


0.00%


0.25%


0.00%



Interest bearing deposits in banks

0.35%


0.32%


0.27%


0.26%


0.22%


0.33%


0.30%



Investment securities - taxable

2.83%


2.94%


2.86%


2.62%


2.54%


2.89%


2.47%



Investment securities - nontaxable

3.40%


3.59%


3.57%


3.60%


3.70%


3.50%


3.76%



Mortgage loans held for sale

3.36%


3.31%


3.35%


3.91%


3.83%


3.34%


3.75%



Loans

5.17%


5.11%


5.15%


5.30%


5.37%


5.14%


5.35%



Purchased non-covered loans

7.34%


6.31%


5.15%


0.00%


0.00%


6.83%


0.00%



Covered loans

5.84%


7.23%


7.43%


7.65%


8.18%


6.55%


7.68%



  Total Earning Assets

5.08%


5.01%


4.84%


5.20%


5.38%


5.05%


5.23%



















Noninterest bearing deposits

0.00%


0.00%


0.00%


0.00%


0.00%


0.00%


0.00%



NOW accounts

0.17%


0.17%


0.19%


0.17%


0.17%


0.17%


0.18%



MMDA

0.38%


0.37%


0.38%


0.38%


0.36%


0.37%


0.36%



Savings accounts

0.11%


0.10%


0.11%


0.11%


0.11%


0.11%


0.11%



Retail CDs < $100,000

0.54%


0.53%


0.54%


0.55%


0.59%


0.53%


0.61%



Retail CDs > $100,000

0.70%


0.72%


0.71%


0.72%


0.75%


0.71%


0.77%



Brokered CDs

3.22%


3.26%


3.19%


3.09%


3.40%


3.24%


3.47%



  Total Deposits

0.29%


0.30%


0.32%


0.33%


0.34%


0.30%


0.35%



















FHLB advances

0.36%


0.22%


2.63%


0.00%


0.00%


0.26%


0.00%



Other borrowings

4.72%


5.51%


8.62%


4.56%


0.00%


5.08%


0.00%



Subordinated debentures

4.79%


5.21%


3.22%


3.37%


3.44%


5.00%


3.02%



Federal funds purchased and securities sold
















     under agreements to repurchase

0.31%


0.38%


0.54%


0.56%


0.57%


0.35%


0.58%



  Total Non-Deposit Funding

2.86%


2.32%


2.42%


2.57%


2.50%


2.56%


2.14%



















  Total funding (3)

0.42%


0.43%


0.40%


0.39%


0.40%


0.43%


0.40%



















Net interest spread

4.66%


4.58%


4.44%


4.81%


4.98%


4.62%


4.83%



















Net interest margin

4.65%


4.57%


4.43%


4.80%


4.96%


4.61%


4.81%

(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 35%.      

(2) Rate calculated based on average earning assets.      

(3) Rate calculated based on total average funding including non-interest bearing liabilities.    

 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.



Net Operating Income Reconciliation

2014


2014


2013


2013


2013


2014


2013



















Net income available to common shareholders

$                   8,130


$                   8,064


$                      966


$               6,234


$               6,236


$             16,194


$             11,080



















Conversion charges

2,872


450


4,350


512


-


3,322


-



Tax effect of conversion charges

(989)


(144)


(261)


(168)


-


(1,103)


-



Plus: After tax conversion charges

1,883


306


4,089


344


-


2,219


-



















       Net operating income

10,013


8,370


5,055


6,578


6,236


18,413


11,080




















































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.



Core Earnings Reconciliation

2014


2014


2013


2013


2013


2014


2013



















Pre-tax operating profit/(loss)

$                 12,400


$                 12,273


$                   1,466


$               9,939


$             10,007


$             24,673


$             17,898



Plus: Credit Related Costs
















    Provision for loan losses

1,365


1,726


1,478


2,920


4,165


3,091


7,088



   (Gains)/Losses on the sale of legacy OREO

283


(55)


310


(157)


134


228


114



   Gains/(Losses) on the sale of covered OREO

249


118


-


-


-


367


3,176



    Problem loan and OREO expense

2,309


2,127


5,012


3,128


2,215


4,436


7,079



    Interest reversed (received) on non-accrual loans

71


246


29


216


118


317


172



       Total Credit-Related Costs

4,277


4,162


6,829


6,107


6,632


8,439


17,629



















Plus: Conversion charges

2,872


450


4,350


512


-


3,322


-



Less: Non-recurring gains
















    Gains related to FDIC acquisitions

-


-


-


-


-


-


-



    Gains on sales of securities

-


(6)


-


-


1


(6)


(171)



 Gains on sales of bank premises

-


-


-


159


(227)


-


(469)



    Other non-recurring adjustments

(870)


-


-


(1,771)


(2,067)


(870)


(3,084)



















Pretax, Pre-provision earnings

$                 18,679


$                 16,879


$                 12,645


$             14,946


$             14,346


$             35,558


$             31,803



















As percentage of average assets, annualized

2.14%


1.94%


1.71%


2.11%


2.04%


2.05%


2.27%




















































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.



Recurring Operating Expenses

2014


2014


2013


2013


2013


2014


2013



















Total Operating Expenses

37,318


33,239


37,624


28,749


26,688


70,557


55,572



Less: Credit costs & non-recurring charges
















   Gains/(Losses) on the sale of legacy OREO

(283)


55


(310)


157


(134)


(228)


(114)



   Gains/(Losses) on the sale of covered OREO

(249)


(118)


-


-


-


(367)


(3,176)



    Problem loan and OREO expense

(2,309)


(2,127)


(5,012)


(3,128)


(2,215)


(4,436)


(3,903)



   Severance payments

-


-


-


(99)


-


-


-



Conversion expenses

(2,872)


(450)


(4,350)


(413)


-


(3,322)


-



   Gains/(Losses) on the sale of premises

-


-


-


(159)


227


-


469



















Recurring operating expenses

$                 31,605


$                 30,599


$                 27,952


$             25,107


$             24,566


$             62,204


$             48,848

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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




































Three Months Ended


Six Months Ended




Jun.


Mar.


Dec.


Sept.


Jun.


Jun.


Jun.



Segment Reporting

2014


2014


2013


2013


2013


2014


2013



















Banking Division:
















   Net interest income

$                 33,925


$                 33,384


$                 27,930


$             28,089


$             28,517


$             67,309


$             56,283



   Provision for loan losses

1,365


1,726


1,478


2,920


4,165


3,091


7,088



   Noninterest income

8,817


7,590


7,086


7,054


6,383


16,407


13,279



   Noninterest expense:
















      Salaries and employee benefits

13,005


13,826


11,841


10,799


10,478


26,831


21,515



      Occupancy

3,771


3,762


3,080


3,029


2,781


7,533


5,546



      Data Processing

3,597


3,332


2,953


2,908


2,634


6,929


5,105



      Other expenses

11,053


7,512


14,257


7,473


6,444


18,565


15,334



         Total noninterest expense

31,426


28,432


32,131


24,209


22,337


59,858


47,500



Income before income taxes

9,951


10,816


1,407


8,014


8,398


20,767


14,974



   Income Tax

3,413


3,413


67


2,588


2,766


6,826


4,912



         Net income

6,538


7,403


1,340


5,426


5,632


13,941


10,062



   Preferred stock dividends

-


286


412


443


442


286


883



Net income available to common shareholders

$                   6,538


$                   7,117


$                      928


$               4,983


$               5,190


$             13,655


$               9,179



































Mortgage Division:
















   Net interest income

$                   1,339


$                   1,100


$                   1,121


$               1,231


$                  959


$               2,439


$               1,531



   Provision for loan losses

-


-


-


-


-


-


-



   Noninterest income

7,002


5,164


4,431


5,234


5,001


12,166


9,465



   Noninterest expense:
















      Salaries and employee benefits

3,937


3,568


3,230


3,613


2,903


7,505


5,672



      Occupancy

300


302


148


120


197


602


363



      Data Processing

343


122


108


164


202


465


301



      Other expenses

1,312


815


2,007


643


1,049


2,127


1,736



         Total noninterest expense

5,892


4,807


5,493


4,540


4,351


10,699


8,072



Income before income taxes

2,449


1,457


59


1,925


1,609


3,906


2,924



   Income Tax

857


510


21


674


563


1,367


1,023



         Net income

1,592


947


38


1,251


1,046


2,539


1,901



   Preferred stock dividends

-


-


-


-


-


-


-



Net income available to common shareholders

$                   1,592


$                      947


$                        38


$               1,251


$               1,046


$               2,539


$               1,901



































Total Consolidated:
















   Net interest income

$                 35,264


$                 34,484


$                 29,051


$             29,320


$             29,476


$             69,748


$             57,814



   Provision for loan losses

1,365


1,726


1,478


2,920


4,165


3,091


7,088



   Noninterest income

15,819


12,754


11,517


12,288


11,384


28,573


22,744



   Noninterest expense:
















      Salaries and employee benefits

16,942


17,394


15,071


14,412


13,381


34,336


27,187



      Occupancy

4,071


4,064


3,228


3,149


2,978


8,135


5,909



      Data Processing

3,940


3,454


3,061


3,072


2,836


7,394


5,406



      Other expenses

12,365


8,327


16,264


8,116


7,493


20,692


17,070



         Total noninterest expense

37,318


33,239


37,624


28,749


26,688


70,557


55,572



Income before income taxes

12,400


12,273


1,466


9,939


10,007


24,673


17,898



   Income Tax

4,270


3,923


88


3,262


3,329


8,193


5,935



         Net income

8,130


8,350


1,378


6,677


6,678


16,480


11,963



   Preferred stock dividends

-


286


412


443


442


286


883



Net income available to common shareholders

$                   8,130


$                   8,064


$                      966


$               6,234


$               6,236


$             16,194


$             11,080

 

 

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SOURCE Ameris Bancorp



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