News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS RESULTS

FOR THIRD QUARTER OF 2008

October 21, 2008

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, reported net income of $366,000, or $0.03 per share, for the quarter ended September 30, 2008, compared to net income for the same quarter in 2007 of $3.6 million, or $0.26 per share.  Net income for the year-to-date period totaled $6.5 million, or $0.48 per share, compared to $14.0 million, or $1.02 per share for the same period in 2007.  Unusually high levels of loan loss provision have been required as several of the Company’s markets have been adversely affected by increasingly negative economic trends.

Provision for Loan Losses and Credit Quality

The Company’s provision for loan losses during the third quarter amounted to $8.2 million, an increase of $5.2 million over the $3.0 million recorded in the third quarter of 2007.  Similarly, provision for loan losses for the year-to-date period increased $10.7 million to $15.1 million for the first nine months of 2008, compared to 2007.

Non-performing assets increased during the current quarter to 2.52% of total loans, compared to 2.09% for the second quarter of 2008 and 1.57% at December 31, 2007.  Net charge-offs on loans during the third quarter of 2008 increased to $6.7 million, compared to $3.2 million in the second quarter of 2008 and $1.6 million in the same quarter of 2007.

The Company’s credit quality has declined as real estate activity and valuations continue to fall.  Construction and development loans account for approximately 61% and 59% of the net charge-offs in the current quarter and year-to-date periods ended September 30, 2008, respectively.  In addition to losses in the construction and development portfolio, residential real estate loans account for approximately14% and 19% of the net charge-offs in the current quarter and year-to-date periods ended September 30, 2008, respectively.  Construction and development loans account for approximately 21.1% and 24.7% of total loans for the period ended September 30, 2008 and September 30, 2007, respectively, while residential real estate loans account for approximately 20.3% and 19.2% of total loans during that same time period.

Trends in Net Interest Income and Net Interest Margin

Total net interest income of $19.2 million for the third quarter of 2008 represented only a slight increase over the $19.1 million recorded in the third quarter of 2007.  Similarly, the year-to-date period reflected small increases in total net interest income, increasing 1.5% to $56.7 million.  Lower levels of growth in net interest income were the result of modest levels of loan growth combined with declining overall margins.

-1-

The Company’s net interest margin declined in the current quarter to 3.87%, compared to 4.03% in the same quarter in 2007.  For the year-to-date period ended September 30, 2008, the Company reported a decline in the net interest margin to 3.92% from 4.05% in the same period in 2007. Increases in non-performing assets of $21.2 million from September 30, 2007, to September 30, 2008, accounted for 44% of the decline in net interest margin.

Yields on earning assets declined to 6.38% in the current quarter, from 7.87% in the same quarter in 2007.  This decline in overall yields resulted primarily from changes in loan yields, which fell from 8.48% during the third quarter of 2007 to 6.67% during the third quarter of 2008.  Decreases in interest income on loans were partially offset by increases in investment securities, the yields on which increased to 5.06% for the third quarter of 2008, compared to 4.96% in the third quarter of 2007.

Funding costs also offset some of the declines in earning asset yields.  Total funding costs declined to 2.54% in the third quarter of 2008, compared to 3.90% in the same quarter of 2007.  Declines in the yields on time deposits accounted for most of the decline in funding costs, falling to 3.79% in the current quarter, compared to 5.08% in the third quarter of 2007.  The cost of non-deposit borrowing fell significantly to 2.09% in the third quarter of 2008, from 5.78% in the third quarter of 2007.  The majority of the Company’s non-deposit borrowings are LIBOR-based and have benefitted materially from both declining rates and interest rate floors tied to the Company’s borrowings from the FHLB.

Non-Interest Income

Total non-interest income remained virtually unchanged during the third quarter at $4.6 million when compared to the third quarter of 2007.  Increases in service charges on deposit accounts to $3.7 million offset smaller declines in the other non-interest income categories, including mortgage banking activities. Increases in charges and fees have allowed the Company to experience better than average growth in fee income while slower activity in residential real estate in many of the Company’s markets has slowed the growth of mortgage-related revenue.

Non-Interest Expense

Total non-interest expense for the third quarter of 2008 was $14.8 million, a decrease of approximately $408,000 from the same period in 2007.  Salaries and benefits in the current quarter decreased approximately 4.4% to $7.1 million, when compared to the third quarter of 2007.  This decline is primarily attributable to a reduction in incentive pay expense of approximately $1.3 million.  Although the Company’s previously announced workforce reduction was completed during the third quarter, the impact will not begin to be realized until the fourth quarter of 2008 due to its timing during the quarter and the related severance expense.   Occupancy and equipment expense increased during the quarter to $1.9 million, an increase of 8.4% when compared to the same period in 2007.  Additional offices, primarily in South Carolina and Jacksonville, Florida, are the primary reasons for the additional occupancy expenses.

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 50 locations in Georgia, Alabama, northern Florida and South Carolina.

Ameris Bancorp Common Stock is quoted on the NASDAQ Global Select Market under the symbol “ABCB”. The preceding 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.

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended															Nine Months Ended
	Sept			June			Mar.			Dec.			Sept			Sept			Sept
	2008			2008			2008			2007			2007			2008			2007
EARNINGS
Net Income	$	366		$	3,149		$	2,966		$	1,197		$	3,570		$	6,481		$	13,967
PER COMMON SHARE DATA
Earnings per share:
Basic		0.03			0.23			0.22			0.09			0.26			0.48			1.04
Diluted		0.03			0.23			0.22			0.09			0.26			0.48			1.02
Cash Dividends per share		0.05			0.14			0.14			0.14			0.14			0.33			0.42
Book value per share (period end)		14.25			14.20			14.48			14.12			13.93			14.25			13.93
Tangible book value per share (period end)		9.92			9.84			10.11			9.72			9.51			9.92			9.51
Weighted average number of shares:
Basic		13,515,767			13,510,907			13,550,744			13,485,765			13,501,663			13,508,006			13,477,065
Diluted		13,543,612			13,563,032			13,559,761			13,573,626			13,620,069			13,555,469			13,650,217
Period-end number of shares		13,564,032			13,564,032			13,556,770			13,539,985			13,539,195			13,564,032			13,539,195
Market data:
High closing price		15.02			16.20			16.41			18.67			23.05			16.20			27.94
Low closing price		7.79			8.70			12.49			13.73			17.72			7.79			17.72
Period end closing price		14.85			8.70			16.06			16.85			18.08			14.85			18.08
Average daily volume		43,464			62,739			61,780			51,604			50,547			55,903			43,565
PERFORMANCE RATIOS
Return on average assets		0.07	%		0.59	%		0.56	%		0.23	%		0.68	%		0.40	%		0.92	%
Return on average equity		0.78	%		6.58	%		6.15	%		2.49	%		7.56	%		4.53	%		10.10	%
Earning asset yield (TE)		6.38	%		6.64	%		7.17	%		7.66	%		7.87	%		6.73	%		7.84	%
Total cost of funds		2.54	%		2.74	%		3.30	%		3.79	%		3.90	%		2.86	%		3.85	%
Net interest margin (TE)		3.87	%		3.96	%		3.91	%		3.92	%		4.03	%		3.92	%		4.05	%
Non-interest income excluding securities transactions,
as a percent of total revenue (TE)		12.50	%		13.97	%		12.33	%		10.09	%		10.87	%		12.93	%		11.17	%
Efficiency ratio		61.98	%		65.50	%		67.12	%		67.21	%		64.08	%		64.86	%		62.36	%
CAPITAL ADEQUACY
Equity to assets		8.56	%		8.78	%		9.27	%		9.06	%		8.96	%		8.56	%		8.96	%
Tangible common equity to assets		6.12	%		6.26	%		6.66	%		6.41	%		6.30	%		6.12	%		6.30	%
OTHER PERIOD-END DATA
FTE Headcount		601			651			634			620			621			601			621
Assets per FTE	$	3,756		$	3,369		$	3,341		$	3,407		$	3,390		$	3,756		$	3,390
Branch locations		50			48			45			46			47			50			47
Deposits per branch location	$	36,127		$	36,893		$	39,651		$	38,201		$	36,345		$	36,127		$	36,345

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended												Nine Months Ended
	Sept		June		Mar.		Dec.			Sept			Sept		Sept
	2008		2008		2008		2007			2007			2008		2007
INCOME STATEMENT
Interest income
Interest and fees on loans	$	28,280	$	28,339	$	30,134	$	32,999		$	33,479		$	86,752	$	95,811
Interest on taxable securities		3,563		3,646		3,583		3,576			3,480			10,793		10,252
Interest on nontaxable securities		169		173		172		158			175			514		530
Interest on deposits in other banks		100		91		200		259			317			391		2,017
Interest on federal funds sold		0		0		0		(20	)		0			0		92
Total interest income		32,112		32,249		34,089		36,972			37,451			98,450		108,702
Interest expense
Interest on deposits		11,717		12,314		14,142		15,620			15,877			38,173		46,621
Interest on other borrowings		1,218		879		1,487		2,367			2,493			3,584		6,252
Total interest expense		12,935		13,193		15,629		17,987			18,370			41,757		52,873
Net interest income		19,177		19,056		18,460		18,985			19,081			56,693		55,829
Provision for loan losses		8,220		3,720		3,200		6,914			2,964			15,140		4,407
Net interest income after provision for loan losses		10,957		15,336		15,260		12,071			16,117			41,553		51,422
Noninterest income
Service charges on deposit accounts		3,657		3,664		3,316		3,310			3,197			10,637		9,133
Mortgage banking activity		745		855		869		827			783			2,469		2,265
Other service charges, commissions and fees		120		220		278		942			203			618		1,008
Gain(loss) on sale of securities		0		0		0		(236	)		(69	)		0		(61	)
Other non-interest income		117		574		379		(677	)		477			1,070		1,414
Total noninterest income		4,639		5,313		4,842		4,166			4,591			14,794		13,759
Noninterest expense
Salaries and employee benefits		7,113		8,660		8,618		7,122			7,438			24,391		22,662
Equipment and occupancy expense		1,904		2,103		1,992		2,118			1,757			5,999		5,151
Amortization of intangible assets		293		293		293		324			324			879		973
Data Processing Fees		1,238		1,226		1,093		1,096			1,110			3,557		3,436
Other operating expenses		4,213		3,680		3,644		4,900			4,540			11,537		11,171
Total noninterest expense		14,761		15,962		15,640		15,560			15,169			46,363		43,393
Operating Profit		835		4,687		4,462		677			5,539			9,984		21,788
Provision for income taxes		469		1,538		1,496		(520	)		1,969			3,503		7,821
Net Income	$	366	$	3,149	$	2,966	$	1,197		$	3,570		$	6,481	$	13,967
Diluted earnings per share		0.03		0.23		0.22		0.09			0.26			0.48		1.02

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended
	Sept.			June			Mar.			Dec.			Sept.
	2008			2008			2008			2007			2007
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	43,549		$	47,720		$	63,401		$	59,804		$	58,634
Federal funds sold and interest bearing balances		75,458			38,125			4,389			12,022			22,910
Securities available for sale, at fair value		287,790			293,601			297,589			291,170			301,978
Restricted equity securities, at cost		9,836			9,651			6,996			7,559			8,729
Loans, net of unearned income		1,710,109			1,678,147			1,622,437			1,614,048			1,593,014
Less allowance for loan losses		30,144			28,660			28,094			27,640			26,434
Loans, net		1,679,965			1,649,487			1,594,343			1,586,408			1,566,580
Premises and equipment, net		65,868			63,291			60,053			59,132			54,639
Intangible assets, net		3,924			4,217			4,509			4,802			5,126
Goodwill		54,813			54,813			54,675			54,813			54,675
Other assets		36,440			32,116			32,288			36,353			31,923
Total Assets	$	2,257,643		$	2,193,021		$	2,118,243		$	2,112,063		$	2,105,194
Liabilities
Deposits:
Noninterest-bearing	$	198,900		$	200,936		$	199,692		$	197,345		$	185,803
Interest-bearing		1,607,439			1,569,925			1,584,599			1,559,920			1,522,405
Total deposits		1,806,339			1,770,861			1,784,291			1,757,265			1,708,208
Federal funds purchased & securities sold under
agreements to repurchase		63,973			39,795			4,987			14,705			32,359
Other borrowings		138,600			133,000			74,500			90,500			116,500
Other liabilities		13,118			14,541			15,888			16,075			17,262
Subordinated deferrable interest debentures		42,269			42,269			42,269			42,269			42,269
Total liabilities		2,064,299			2,000,466			1,921,935			1,920,814			1,916,598
Stockholders' equity
Common stock		14,895			14,895			14,887			14,870			14,869
Capital surplus		83,453			83,308			82,920			82,750			82,308
Retained earnings		105,117			105,430			104,182			103,095			103,803
Accumulated other comprehensive loss		666			(291	)		5,093			1,303			(1,616	)
Less treasury stock		(10,787	)		(10,787	)		(10,774	)		(10,769	)		(10,768	)
Total stockholders' equity		193,344			192,555			196,308			191,249			188,596
Total liabilities and stockholders' equity	$	2,257,643		$	2,193,021		$	2,118,243		$	2,112,063		$	2,105,194
Other Data
Earning Assets		2,073,357			2,009,873			1,924,415			1,917,240			1,917,902
Intangible Assets		58,737			59,030			59,184			59,615			59,801
Interest Bearing Liabilities		1,852,281			1,784,989			1,706,355			1,707,394			1,713,533
Average Assets		2,192,501			2,141,940			2,115,561			2,102,579			2,069,715
Average Stockholders' Equity		186,541			192,605			193,971			191,124			187,290

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended															Nine Months Ended
	Sept			June			Mar.			Dec.			Sept			Sept			Sept
	2008			2008			2008			2007			2007			2008			2007
ASSET QUALITY INFORMATION
Allowance for loan losses
Balance at beginning of period	$	28,660		$	28,094		$	27,640		$	26,434		$	25,032		$	27,640		$	24,863
Provision for loan loss		8,220			3,720			3,200			6,914			2,964			15,140			4,407
Charge-offs		6,946			3,800			2,945			6,465			1,807			13,691			3,921
Recoveries		210			646			199			757			245			1,055			1,086
Net charge-offs (recoveries)		6,736			3,154			2,746			5,708			1,562			12,636			2,835
Ending balance	$	30,144		$	28,660		$	28,094		$	27,640		$	26,434		$	30,144		$	26,435
As a percentage of loans		1.76	%		1.71	%		1.73	%		1.71	%		1.66	%		1.76	%		1.66	%
As a percentage of nonperforming loans		76.46	%		89.27	%		104.78	%		149.66	%		135.81	%		76.46	%		135.82	%
As a percentage of nonperforming assets		69.84	%		81.56	%		86.34	%		108.56	%		120.37	%		69.84	%		120.37	%
Net charge-off information
Charge-offs
Commercial, Financial & Agricultural	$	963		$	282		$	390		$	421		$	353		$	1,635		$	757
Real Estate - Residential		989			902			672			1,262			433			2,563			1,007
Real Estate - Commercial & Farmland		628			49			299			621			119			976			622
Real Estate - Construction & Development		4,165			2,319			1,305			3,899			709			7,789			1,114
Consumer Installment		201			248			279			262			193			728			421
Other		0			0			0			0			0			0			0
Total charge-offs		6,946			3,800			2,945			6,465			1,807			13,691			3,921
Recoveries
Commercial, Financial & Agricultural	$	83		$	102		$	18		$	95		$	41		$	203		$	494
Real Estate - Residential		54			90			25			14			48			169			116
Real Estate - Commercial & Farmland		(3	)		68			31			159			79			96			181
Real Estate - Construction & Development		26			322			34			401			13			382			14
Consumer Installment		50			64			90			88			64			204			281
Other		0			0			1			0			0			1			0
Total recoveries		210			646			199			757			245			1,055			1,086
Net charge-offs (recoveries)	$	6,736		$	3,154		$	2,746		$	5,708		$	1,562		$	12,636		$	2,835
Non-accrual loans		39,427			32,106			26,812			18,468			19,464			39,427			19,464
Foreclosed assets		3,734			3,032			5,727			6,993			2,497			3,734			2,497
Total non-performing assets		43,161			35,138			32,539			25,461			21,961			43,161			21,961
Non-performing assets as a percent of loans
and foreclosed assets		2.52	%		2.09	%		2.00	%		1.57	%		1.38	%		2.52	%		1.38	%
Net charge offs as a percent of loans (Annualized)		1.58	%		0.75	%		0.68	%		1.41	%		0.39	%		0.99	%		0.24	%

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended										Nine Months Ended
	Sept		June		Mar.		Dec.		Sept		Sept		Sept
	2008		2008		2008		2007		2007		2008		2007
AVERAGE BALANCES
Short term assets	$	21,219	$	18,236	$	23,480	$	21,826	$	26,212	$	20,978	$	53,570
Investment securities		299,564		307,304		291,708		297,380		299,925		299,525		298,251
Loans		1,698,024		1,650,781		1,617,991		1,605,006		1,569,906		1,655,599		1,513,321
Total Earning Assets		2,018,807		1,976,321		1,933,179		1,924,212		1,896,043		1,976,102		1,865,142
Noninterest bearing deposits		200,357		197,662		191,860		187,908		190,315		196,626		194,131
Interest bearing deposits		607,534		607,777		612,212		596,053		575,415		609,174		567,448
Savings		55,143		54,973		54,221		55,305		58,778		54,779		61,148
CDs		929,787		903,655		890,668		886,117		870,731		908,037		870,774
Deposits		1,792,821		1,764,067		1,748,961		1,725,383		1,695,239		1,768,616		1,693,501
FHLB advances		130,849		111,922		97,162		105,570		110,056		113,311		88,237
Subordinated debentures		42,269		42,269		42,269		42,269		42,269		42,269		42,269
Other borrowings		30,713		13,815		17,490		22,298		18,878		20,673		14,467
Total non-deposit funding		203,831		168,006		156,921		170,137		171,203		176,253		144,973
Total funding	$	1,996,652	$	1,932,073	$	1,905,882	$	1,895,520	$	1,866,442	$	1,944,869	$	1,838,474

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended										Nine Months Ended
	Sept		June		Mar.		Dec.		Sept		Sept		Sept
	2008		2008		2008		2007		2007		2008		2007
INTEREST INCOME/EXPENSE
Short term assets	$	100	$	91	$	193	$	239	$	317	$	384	$	2,111
Investment securities (TE)		3,823		3,912		3,842		3,818		3,750		11,577		11,067
Loans (TE)		28,559		28,704		30,409		33,078		33,560		87,672		96,239
Total Earning Assets		32,482		32,707		34,444		37,135		37,627		99,633		109,417
Noninterest bearing deposits		-		-		-		-		-		-		-
Interest bearing deposits		2,722		2,580		3,450		4,238		4,577		8,752		13,153
Savings		121		129		118		142		154		368		481
CDs		8,874		9,605		10,575		11,379		11,146		29,054		32,987
Deposits		11,717		12,314		14,143		15,759		15,877		38,174		46,621
FHLB advances		359		302		653		1,299		1,461		1,314		3,433
Subordinated debentures		493		487		686		832		811		1,666		2,333
Other borrowings		222		90		148		236		221		460		486
Total non-deposit funding		1,074		879		1,487		2,367		2,493		3,440		6,252
Total funding	$	12,791	$	13,193	$	15,630	$	18,126	$	18,370	$	41,614	$	52,873
Net Interest Income (TE)	$	19,691	$	19,514	$	18,814	$	19,009	$	19,257	$	58,019	$	56,544

-8-

AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended															Nine Months Ended
	Sept			June			Mar.			Dec.			Sept			Sept			Sept
	2008			2008			2008			2007			2007			2008			2007
YIELDS (1)
Short term assets		1.87	%		2.00	%		3.31	%		4.34	%		4.80	%		2.45	%		5.27	%
Investment securities		5.06	%		5.11	%		5.30	%		5.09	%		4.96	%		5.16	%		4.96	%
Loans		6.67	%		6.97	%		7.56	%		8.18	%		8.48	%		7.07	%		8.50	%
Total Earning Assets (2)		6.38	%		6.64	%		7.17	%		7.66	%		7.87	%		6.73	%		7.84	%
Noninterest bearing deposits
Interest bearing deposits		1.78	%		1.70	%		2.27	%		2.82	%		3.16	%		1.92	%		3.10	%
Savings		0.87	%		0.94	%		0.88	%		1.02	%		1.04	%		0.90	%		1.05	%
CDs		3.79	%		4.26	%		4.78	%		5.09	%		5.08	%		4.27	%		5.06	%
Deposits		2.59	%		2.80	%		3.25	%		3.62	%		3.72	%		2.88	%		3.68	%
FHLB advances		1.09	%		1.08	%		2.70	%		4.88	%		5.27	%		1.55	%		5.20	%
Subordinated debentures		4.63	%		4.62	%		6.53	%		7.81	%		7.61	%		5.26	%		7.38	%
Other borrowings		2.87	%		2.61	%		3.40	%		4.20	%		4.64	%		2.97	%		4.49	%
Total non-deposit funding		2.09	%		2.10	%		3.81	%		5.52	%		5.78	%		2.61	%		5.77	%
Total funding (3)		2.54	%		2.74	%		3.30	%		3.79	%		3.90	%		2.86	%		3.85	%
Net interest spread		3.84	%		3.90	%		3.87	%		3.86	%		3.97	%		3.88	%		4.00	%
Net interest margin		3.87	%		3.96	%		3.91	%		3.92	%		4.03	%		3.92	%		4.05	%
(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 average interest bearing liabilities.