EX-99.1 2 dex991.htm PRESS RELEASE Press Release

 

Exhibit 99.1

LOGO

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS THIRD QUARTER 2010 RESULTS

October 20, 2010

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported a net loss available to common shareholders of $1.7 million, or $0.07 per diluted share, for the quarter ended September 30, 2010, compared to a net loss of $0.9 million, or $0.07 per diluted share, for the third quarter of 2009. For the year to date period ending September 30, 2010, the Company reported a net loss available to common shareholders of $8.3 million, or $0.42 per diluted share, compared to a net loss of $5.8 million, or $0.41 per diluted share, for the same period in 2009. “We continue to make progress with several initiatives,” said Edwin W. Hortman, Jr., President and CEO. “Our operations continue to produce strong levels of pre-tax, pre-provision earnings, at levels close to 2.00% on average assets. This is due to higher net interest margins and reduced levels of operating expenses. With respect to credit quality, we are seeing positive trends in classified assets and problem loan formation and we believe that efforts to sell OREO will yield results in the coming quarters,” continued Mr. Hortman.

Credit Quality Trends

At the end of the third quarter of 2010, nonperforming assets totaled $138.3 million, or 5.67% of total assets, compared to $136.0 million or 5.62% of total assets, at June 30, 2010. A relatively small decline in non-performing loans of $2.5 million to $89.8 million in the current quarter was more than offset by increases in foreclosed assets of $4.7 million to $48.4 million when compared to the second quarter of 2010. Net charge offs were lower in the current quarter, at 2.14% of total loans on an annualized basis, compared to 4.22% in the second quarter of 2010.

“We continue to see declines in problem loan formation across all risk classifications,” stated Mr. Hortman. “In the current cycle from their peak levels, criticized assets are down 35%, classified accruing loans are down 57% and non-accrual loans are down 10%. Our continuing challenge is to accelerate sales of our OREO which will restore more favorable levels of credit quality.”

At the end of the second quarter of 2010, the Company entered into an agreement to sell certain OREO and non-performing loans in three pools to a single investor group. Transactions for two of the three pools closed, resulting in a reduction of non-performing loans during the third quarter of $3.7 million. The third pool did not close as anticipated, leaving $9.6 million of non-performing loans and OREO marked at significant discounts. The Company has begun remarketing these assets for sale and has entered into several sales contracts at prices higher than those agreed upon in the initial bulk sale.

 

Balance Sheet

Total assets increased $227.2 million, or 10.3%, to $2.43 billion at September 30, 2010 when compared to balances at September 30, 2009. Loans outstanding, at $1.65 billion, were substantially unchanged at the end of the third quarter of 2010 compared to the same period in 2009, but were down approximately $36.7 million from the most recent linked quarter. Cash flows from loan repayments or workouts, together with increased success with deposit sales and retention, have provided significant liquidity reserves for the Company. Total cash and short-term assets at the end of the third quarter of 2010 was $350.7 million, an increase of $192.6 million from the same period in 2009.

Shareholders’ equity was $274.0 million at the end of the third quarter of 2010, an increase of $79.0 million when compared to balances at December 31, 2009. The Company’s successful capital raise in the second quarter of 2010, coupled with strong core earnings, has delivered higher capital ratios and higher levels of tangible book value. At September 30, 2010, the Company’s tangible common equity to tangible assets was 9.08% compared to 5.84% at September 30, 2009. Tangible book value increased slightly to $9.35 per share at the end of the third quarter of 2010 compared to $9.00 at the same period in 2009.

Operating Results

Core earnings (pre-tax, pre-provision) increased in the third quarter of 2010 to $11.8 million compared to $9.4 million in the third quarter of 2009. For the year to date period in 2010, the Company’s core earnings increased 41.7% to $34.3 million when compared to the same period in 2009. Margin expansion, steady yields on earning assets and flat operating expenses contributed to the success in higher core earnings.

For the third quarter of 2010, the Company reported $22.2 million of tax equivalent net interest income compared to $19.0 million for the same quarter in 2009. The Company’s yield on earning assets declined slightly to 5.34% compared to 5.42% for the third quarter of 2009. Lower yields on uncovered loans and higher levels of short-term assets were offset by covered loans with attractive net yields to the Company.

Total interest expense on deposits in the third quarter of 2010 amounted to $6.9 million, compared to $8.7 million in the same quarter in 2009. The Company’s cost of deposits in the third quarter of 2010 was 1.31% compared to 1.78% in the same quarter in 2009. While all classes of deposits produced lower yields than in 2009, the majority of the savings were in retail CDs where current renewal rates are significantly less than they were in 2009.

Non-interest income increased during the current quarter to $5.0 million, compared to $4.5 million in the third quarter of 2009. Service charges were higher by $0.3 million, increasing to $3.8 million due mostly to fees associated with deposits acquired in FDIC assisted acquisitions. Mortgage related revenue was mostly flat at $0.7 million when compared to the third quarter of 2009.

Efforts to reduce controllable expenses over the past year have been successful considering Ameris Bank’s growth and the additional operations acquired in FDIC-assisted transactions. In the third quarter of 2010, the Company reported operating expenses of $18.9 million, compared to $15.4 million in the same quarter of 2009. As seen in the attached financial highlights, recurring operating expense normalized for credit costs and FDIC insurance expense shows expenses substantially flat at $14.4 million for the third quarter of 2010 compared to $14.1 million in the same quarter in 2009. For the year to date period, the Company reported $43.1 million of core operating expense compared to $43.5 million in the year to date period ended September 30, 2009.

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.

 

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. Tangible common equity and Tier 1 capital ratios are non-GAAP measures. The Company calculates Tier 1 capital using current call report instructions. The Company’s management uses these measures to assess the quality of capital and believes that investors may find them useful in their evaluation of the Company. These capital measures may or may not be necessarily comparable to similar capital 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.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

EARNINGS

              

Net Income/(Loss) Available to Common Shareholders

   $ (1,704 )    $ (4,218 )    $ (2,330 )    $ (39,192 )    $ (923 )    $ (8,252 )    $ (5,757 ) 

PER COMMON SHARE DATA

              

Earnings per share available to common shareholders:

              

Basic

   $ (0.07 )    $ (0.20 )    $ (0.17 )    $ (2.82 )    $ (0.07 )    $ (0.42 )    $ (0.41 ) 

Diluted

   $ (0.07 )    $ (0.20 )    $ (0.17 )    $ (2.82 )    $ (0.07 )    $ (0.42 )    $ (0.41 ) 

Cash Dividends per share

     —        $ —        $ —        $ —        $ —        $ —          0.10   

Stock dividend

     —          1 for 210        1 for 130        1 for 130        1 for 130        3 for 157        1 for 130   

Book value per share (period end)

   $ 9.48      $ 9.57      $ 10.18      $ 10.39      $ 13.15      $ 9.48      $ 13.15   

Tangible book value per share (period end)

   $ 9.35      $ 9.43      $ 9.94      $ 10.13      $ 9.00      $ 9.35      $ 9.00   

Weighted average number of shares:

              

Basic

     23,570,929        21,231,367        13,906,137        13,912,458        13,906,299        19,569,478        13,945,216   

Diluted

     23,570,929        21,231,367        13,906,137        13,912,458        13,906,299        19,569,478        13,925,559   

Period-end number of shares

     23,626,129        23,515,468        14,108,672        14,001,044        13,961,597        23,626,129        13,961,597   

Market data:

              

High closing price

   $ 10.49      $ 11.55      $ 10.32      $ 7.25      $ 7.47      $ 11.55      $ 11.73   

Low closing price

   $ 7.83      $ 9.00      $ 7.36      $ 5.13      $ 5.93      $ 7.36      $ 3.66   

Period end closing price

   $ 9.35      $ 9.66      $ 9.03      $ 7.16      $ 7.15      $ 9.35      $ 7.15   

Average daily volume

     75,573        205,388        37,715        38,583        30,407        106,881        29,835   

PERFORMANCE RATIOS

              

Return on average assets

     (0.28 %)      (0.68 %)      (0.26 %)      (6.54 %)      (0.14 %)      (0.45 %)      (0.32 %) 

Return on average common equity

     (3.01 %)      (8.77 %)      (4.33 %)      (75.56 %)      (1.68 %)      (4.91 %)      (3.55 %) 

Earning asset yield (TE)

     5.34 %      5.32 %      5.36 %      5.01 %      5.42 %      5.48 %      5.53 % 

Total cost of funds

     1.33 %      1.34 %      1.41 %      1.51 %      1.83 %      1.36 %      2.12 % 

Net interest margin (TE)

     4.04 %      4.01 %      3.92 %      3.55 %      3.65 %      4.14 %      3.47 % 

Non-interest income excluding securities transactions, as a percent of total revenue (TE) (1)

     16.74 %      12.40 %      14.15 %      68.82 %      13.89 %      14.58 %      13.57 % 

Efficiency ratio (2)

     70.08 %      63.35 %      66.93 %      119.77 %      65.83 %      66.40 %      70.82 % 

CAPITAL ADEQUACY (period end)

              

Stockholders’ equity to assets

     11.25 %      11.35 %      8.22 %      8.04 %      10.56 %      11.25 %      10.56 % 

Tangible common equity to tangible assets

     9.08 %      9.17 %      5.97 %      5.86 %      5.84 %      9.08 %      5.84 % 

EQUITY TO ASSETS RECONCILIATION

              

Tangible common equity to tangible assets

     9.08 %      9.17 %      5.97 %      5.86 %      5.84 %      9.08 %      5.84 % 

Effect of preferred equity

     2.05 %      2.06 %      2.11 %      2.04 %      2.24 %      2.05 %      2.24 % 

Effect of goodwill and other intangibles

     0.12 %      0.12 %      0.13 %      0.14 %      2.47 %      0.12 %      2.47 % 
                                                       

Equity to assets (GAAP)

     11.25 %      11.35 %      8.22 %      8.04 %      10.56 %      11.25 %      10.56 % 
                                                       

OTHER PERIOD-END DATA

              

FTE Headcount

     570        581        594        615        595        570        595   

Assets per FTE

   $ 4,271      $ 4,169      $ 3,959      $ 3,928      $ 3,710      $ 4,271      $ 3,710   

Branch locations

     50        53        53        53        50        50        50   

Deposits per branch location

   $ 41,980      $ 39,246      $ 39,402      $ 40,059      $ 37,751      $ 41,980      $ 37,751   

 

(1)

Includes gain from acquisition of $38.6 million, net of income tax expense of $13.5 million in the fourth quarter of 2009 .

(2)

Includes the non-recurring, non-cash goodwill impairment charge of $54.8 million in the fourth quarter of 2009 and the gain on acquisition of $38.6 million.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

     Three Months Ended     Nine Months Ended  
     Sept.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

INCOME STATEMENT

               

Interest income

               

Interest and fees on loans

    $ 26,465      $ 28,187      $ 25,156      $ 24,864      $ 24,888      $ 79,808      $ 76,444   

Interest on taxable securities

      2,295        2,502        2,462        2,570        2,725        7,259        9,288   

Interest on nontaxable securities

      295        299        304        319        329        898        751   

Interest on deposits in other banks

      104        97        57        60        68        258        202   

Interest on federal funds sold

      13        12        12        18        12        37        54   
                                                        

Total interest income

      29,172        31,097        27,991        27,831        28,022        88,260        86,740   
                                                        

Interest expense

               

Interest on deposits

    $ 6,903      $ 7,084      $ 7,332      $ 7,637      $ 8,684        21,319        30,869   

Interest on other borrowings

      270        154        246        493        526        670        1,551   
                                                        

Total interest expense

      7,173        7,238        7,578        8,130        9,210        21,989        32,420   
                                                        

Net interest income

      21,999        23,859        20,413        19,701        18,812        66,271        54,320   

Provision for loan losses

      9,739        18,608        10,770        16,468        8,298        39,117        25,600   
                                                        

Net interest income after provision for loan losses

    $ 12,260      $ 5,251      $ 9,643      $ 3,233      $ 10,514      $ 27,154      $ 28,720   
                                                        

Noninterest income

               

Service charges on deposit accounts

    $ 3,761      $ 3,620      $ 3,439      $ 3,654      $ 3,510        10,820        9,938   

Mortgage banking activity

      713        675        554        718        692        1,942        2,332   

Other service charges, commissions and fees

      180        232        213        259        131        625        271   

Gain(loss) on sale of securities

      —          —          200        77        (20 )      200        794   

Gains from acquisitions

      —          8,209        —          38,566        —          8,209        —     

Other non-interest income

      357        313        479        465        208        1,149        1,278   
                                                        

Total noninterest income

      5,011        13,049        4,885        43,739        4,521        22,945        14,613   
                                                        

Noninterest expense

               

Salaries and employee benefits

      7,555        8,027        7,826        8,616        7,431        23,408        23,321   

Occupancy and equipment expenses

      2,171        2,025        2,027        2,417        2,114        6,223        6,496   

Data processing and telecommunications expenses

      1,729        2,077        1,763        1,801        1,746        5,569        5,077   

FDIC insurance expense

      1,304        1,285        1,248        858        654        3,837        2,594   

Credit related expenses (1)

      3,232        6,224        2,020        4,562        993        11,476        3,081   

Advertising and marketing expenses

      167        143        159        336        301        469        1,314   

Amortization of intangible assets

      254        239        271        205        146        764        439   

Goodwill impairment

      —          —          —          54,813        —          —          —     

Other non-interest expenses

      2,516        3,363        1,617        2,374        1,975        7,496        6,494   
                                                        

Total noninterest expense

      18,928        23,383        16,931        75,982        15,360        59,242        48,816   
                                                        

Operating profit/(loss)

    $ (1,657 )    $ (5,083 )    $ (2,403 )    $ (29,010 )    $ (325 )    $ (9,143 )    $ (5,483 ) 

Income tax (benefit)/expense

      (760 )      (1,664 )      (869 )      9,323        (198 )      (3,293 )      (2,027 ) 
                                                        

Net income/(loss)

    $ (897 )    $ (3,419 )    $ (1,534 )    $ (38,333 )    $ (127 )    $ (5,850 )    $ (3,456 ) 
                                                        

Preferred stock dividends

    $ 807      $ 799        796        859        796        2,402        2,301   
                                                        

Net income/(loss) available to common shareholders

    $ (1,704 )    $ (4,218 )    $ (2,330 )    $ (39,192 )    $ (923 )    $ (8,252 )    $ (5,757 ) 
                                                        

Diluted earnings available to common shareholders

      (0.07 )      (0.20 )      (0.17 )      (2.82 )      (0.07 )      (0.42 )      (0.41 ) 
                                                        

 

(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.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		  

PERIOD-END BALANCE SHEET

           

Assets

           

Cash and due from banks

    $ 43,814      $ 54,444      $ 68,859      $ 81,060      $ 43,761   

Federal funds sold and interest bearing balances

      306,867        240,075        200,942        220,363        114,335   

Investment securities available for sale, at fair value

      236,048        237,985        248,013        245,556        251,189   

Other investments

      7,106        7,531        7,260        7,260        4,441   

Loans, net of unearned income

      1,455,853        1,493,126        1,536,528        1,584,359        1,652,689   

Covered loans

      192,267        191,663        123,771        137,248        —     

Less: allowance for loan losses

      34,072        33,585        33,562        35,762        41,946   
                                        

Loans, net

      1,614,048        1,651,204        1,626,737        1,685,845        1,610,743   

Other real estate owned

      50,919        41,079        34,682        23,316        21,923   

Covered other real estate owned

      28,416        25,845        17,862        9,337        —     
                                        

Total other real estate owned

      79,335        66,924        52,544        32,653        21,923   

Premises and equipment, net

      66,056        66,708        66,523        67,637        67,641   

Intangible assets, net

      3,097        3,314        3,364        3,586        3,193   

Goodwill

      —          —          —          —          54,813   

FDIC loss sharing receivable

      42,532        57,946        47,579        45,840        —     

Other assets

      35,801        35,779        29,711        34,171        35,436   
                                        

Total assets

    $ 2,434,703      $ 2,421,910      $ 2,351,532      $ 2,423,971      $ 2,207,475   
                                        

Liabilities

           

Deposits:

           

Noninterest-bearing

    $ 235,646      $ 218,012      $ 222,454      $ 236,962      $ 205,699   

Interest-bearing

      1,863,355        1,862,014        1,865,852        1,886,154        1,681,830   
                                        

Total deposits

      2,099,001        2,080,026        2,088,306        2,123,116        1,887,529   

Federal funds purchased & securities sold under agreements to repurchase

      13,186        17,600        20,640        55,254        30,393   

Other borrowings

      —          —          2,000        2,000        7,000   

Other liabilities

      6,279        7,145        5,082        6,368        7,268   

Subordinated deferrable interest debentures

      42,269        42,269        42,269        42,269        42,269   
                                        

Total liabilities

      2,160,735        2,147,040        2,158,297        2,229,007        1,974,459   
                                        

Stockholders’ equity

           

Preferred stock

    $ 49,975      $ 49,832      $ 49,691      $ 49,552      $ 49,411   

Common stock

      24,961        24,961        15,379        15,273        15,128   

Capital surplus

      165,544        165,544        88,996        88,956        87,598   

Retained earnings

      35,948        37,519        42,431        44,755        85,149   

Accumulated other comprehensive income/(loss)

      8,371        7,834        7,676        7,240        6,542   

Less treasury stock

      (10,831 )      (10,820 )      (10,812 )      (10,812 )      (10,812 ) 
                                        

Total stockholders’ equity

      273,968        274,870        193,361        194,964        233,016   
                                        

Total liabilities and stockholders’ equity

    $ 2,434,703      $ 2,421,910      $ 2,351,658      $ 2,423,971      $ 2,207,475   
                                        

Other Data

           

Earning Assets

      2,199,929        2,171,262        2,270,427        2,188,622        2,024,442   

Intangible Assets

      3,097        3,314        3,364        4,053        58,006   

Interest Bearing Liabilities

      1,918,810        1,921,883        1,930,761        1,985,677        1,761,492   

Average Assets

      2,429,709        2,444,425        2,377,348        2,374,352        2,244,527   

Average Common Stockholders’ Equity

      224,656        217,042        143,655        205,500        186,858   

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

 

     Three Months Ended     Nine Months Ended  
     Sept.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

ASSET QUALITY INFORMATION (1)

               

Allowance for loan losses

               

Balance at beginning of period

    $ 33,585      $ 33,563      $ 35,762      $ 41,946      $ 44,998      $ 35,762      $ 39,652   

Provision for loan loss (2)

      9,602        17,725        10,770        16,468        8,298        38,097        25,600   

Charge-offs

      10,108        18,756        13,246        22,515        11,993        42,110        24,616   

Recoveries

      993        1,053        277        (137 )      643        2,323        1,310   
                                                        

Net charge-offs (recoveries)

      9,115        17,703        12,969        22,652        11,350        39,787        23,306   

Ending balance

    $ 34,072      $ 33,585      $ 33,563      $ 35,762      $ 41,946      $ 34,072      $ 41,946   
                                                        

As a percentage of loans

      2.34 %      2.25 %      2.18 %      2.26 %      2.54 %      2.34 %      2.54 % 

As a percentage of nonperforming loans

      37.27 %      36.37 %      37.44 %      37.20 %      49.99 %      37.27 %      49.99 % 

Net charge-off information

               

Charge-offs

               

Commercial, Financial and Agricultural

    $ 866      $ 703      $ 2,008      $ 1,831      $ 601      $ 3,577      $ 2,805   

Real Estate - Residential

      3,100        4,739        924        3,911        3,846        8,763        6,948   

Real Estate - Commercial and Farmland

      4,118        5,023        4,593        4,571        482        13,734        1,661   

Real Estate - Construction and Development

      1,557        8,202        5,576        11,831        6,871        15,335        12,532   

Consumer Installment

      467        89        145        371        193        701        670   

Other

      —          —          —          —          —          —          —     
                                                        

Total charge-offs

      10,108        18,756        13,246        22,515        11,993        42,110        24,616   
                                                        

Recoveries

               

Commercial, Financial and Agricultural

      41        430        78        79        64        549        162   

Real Estate - Residential

      54        84        28        (174 )      228        166        452   

Real Estate - Commercial and Farmland

      392        202        64        11        3        658        246   

Real Estate - Construction and Development

      458        140        64        (88 )      314        662        332   

Consumer Installment

      48        197        43        35        34        288        118   

Other

      —          —          —          —          —          —          —     
                                                        

Total recoveries

      993        1,053        277        (137 )      643        2,323        1,310   
                                                        

Net charge-offs (recoveries)

    $ 9,115      $ 17,703      $ 12,969      $ 22,652      $ 11,350      $ 39,787      $ 23,306   
                                                        

Non-accrual loans

      89,862        92,336        89,649        96,131        83,917        89,862        83,917   

Foreclosed assets

     48,430        43,686        32,800        21,551        21,923        48,430        21,923   

Accruing loans delinquent 90 days or more

      —          —          —          —          —            —     
                                                        

Total non-performing assets

      138,292        136,022        122,449        117,682        105,840        138,292        105,840   
                                                        

Non-performing assets as a percent of total assets

      5.67 %      5.62 %      5.21 %      4.85 %      4.79 %      5.67 %      4.79 % 

Net charge offs as a percent of loans (Annualized)

      2.14 %      4.22 %      3.12 %      5.14 %      2.70 %      3.16 %      1.86 % 

 

(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 the second and third quarter of 2010, the Company recorded provision for loan loss expense of $0.9 million and $0.1 million, respectively, to account for losses where the initial estimate of cash flows was found to be excessive on loan acquired in FDIC assisted acquisitions. These amounts are excluded from the calculation above but reflected in the Company Consolidated Statement of Operations.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

 

     Three Months Ended      Nine Months Ended  
     Sept.
2010		      Jun.
2010		      Mar.
2010		      Dec.
2009		      Sept.
2009		      Sept.
2010		      Sept.
2009		  

AVERAGE BALANCES

                     

Federal funds sold

    $ 61,465       $ 54,245       $ 25,831       $ 25,652       $ 25,000       $ 47,180       $ 20,092   

Interest bearing deposits in banks

      190,203         232,733         173,125         127,092         112,827         198,687         119,515   

Investment securities - taxable

      199,244         209,532         209,465         215,610         216,471         206,080         264,387   

Investment securities - nontaxable

      35,813         35,650         36,430         39,038         38,693         35,964         28,436   

Other investments

      7,246         8,061         5,495         5,472         4,441         6,934         4,604   

Loans

      1,503,149         1,528,220         1,563,307         1,669,753         1,666,821         1,531,559         1,674,015   

Covered loans

      187,556         155,302         120,211         79,795         —           154,356         —     
                                                              

Total Earning Assets

    $ 2,184,676       $ 2,223,743       $ 2,133,864       $ 2,162,412       $ 2,064,253       $ 2,180,760       $ 2,111,049   
                                                              

Non-interest bearing deposits

    $ 225,907       $ 237,276       $ 231,765       $ 232,215       $ 207,495       $ 231,649       $ 205,563   

NOW accounts

      478,105         482,798         505,566         492,434         493,253         488,823         446,712   

MMDA

      448,955         441,445         424,913         410,909         384,266         438,438         329,507   

Savings accounts

      64,575         64,887         63,436         61,645         57,532         64,299         56,862   

Retail CDs < $100,000

      367,353         375,339         331,294         382,131         341,495         357,995         386,712   

Retail CDs > $100,000

      375,756         371,754         393,473         338,378         331,763         380,328         395,494   

Brokered CDs

      128,346         138,113         151,333         125,439       $ 116,186         139,264         148,510   
                                                              

Total Deposits

      2,088,997         2,111,612         2,101,780         2,043,151         1,931,990         2,100,796         1,969,360   
                                                              

FHLB advances

    $ —         $ 747       $ 2,000       $ 2,583       $ 2,000       $ 908       $ 9,857   

Subordinated debentures

      42,269         42,269         42,269         42,269         42,269         42,269         42,269   

Federal funds purchased and securities sold under agreements to repurchase

      14,246         18,698         30,650         48,375         20,047         21,138         18,210   

Other borrowings

      —           —           —           4,946         5,000         —           5,000   
                                                              

Total Non-Deposit Funding

      56,515         61,714         74,919         98,173         69,316         64,315         75,336   
                                                              

Total Funding

    $ 2,145,512       $ 2,173,326       $ 2,176,699       $ 2,141,324       $ 2,001,306       $ 2,165,111       $ 2,044,696   
                                                              

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

     Three Months Ended      Nine Months Ended  
     Sept.
2010		      Jun.
2010		      Mar.
2010		      Dec.
2009		      Sept.
2009		      Sept.
2010		      Sept.
2009		  

INTEREST INCOME/EXPENSE

                     

INTEREST INCOME

                     

Federal funds sold

    $ 13       $ 12       $ 12       $ 18       $ 12       $ 37       $ 54   

Interest bearing deposits in banks

      104         97         57         60         68         258         171   

Investment securities - taxable

      2,295         2,438         2,462         2,570         2,725         7,195         9,255   

Investment securities - nontaxable (TE)

      453         460         468         491         506         1,381         1,156   

Loans (TE)

      22,054         22,986         22,849         23,668         24,895         67,889         76,575   

Covered loans

      4,473         5,832         2,375         1,261         —           12,680         —     
                                                              

Total Earning Assets

    $ 29,392       $ 31,825       $ 28,223       $ 28,068       $ 28,206       $ 89,440       $ 87,211   
                                                              

INTEREST EXPENSE

                     

Non-interest bearing deposits

    $ —         $ —         $ —         $ —         $ —         $ —         $ —     

NOW accounts

      1,087         1,135         1,234         1,300         1,433         3,456         3,903   

MMDA

      1,428         1,446         1,484         1,520         1,510         4,358         3,965   

Savings accounts

      76         75         90         107         102         241         313   

Retail CDs < $100,000

      1,596         1,689         1,568         1,769         2,165         4,853         8,726   

Retail CDs > $100,000

      1,709         1,674         1,881         1,894         2,304         5,264         9,868   

Brokered CDs

      1,006         1,065         1,076         1,047         1,169         3,147         4,096   
                                                              

Total Deposits

      6,902         7,084         7,333         7,637         8,683         21,319         30,871   
                                                              

FHLB advances

    $ —         $ 12       $ 30       $ 49       $ 31       $ 42       $ 54   

Subordinated debentures

      246         113         178         351         438         537         1,317   

Repurchase agreements

      19         26         36         70         33         81         104   

Correspondent bank line of credit and other

      5         2         2         22         23         9         86   
                                                              

Total Non-Deposit Funding

      270         153         246         492         525         669         1,561   
                                                              

Total Funding

    $ 7,172       $ 7,237       $ 7,579       $ 8,129       $ 9,208       $ 21,988       $ 32,432   
                                                              

Net Interest Income (TE)

    $ 22,220       $ 24,588       $ 20,644       $ 19,939       $ 18,998       $ 67,452       $ 54,779   
                                                              

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

 

     Three Months Ended     Nine Months Ended  
     Sept.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

YIELDS (1)

               

Federal funds sold

      0.08 %      0.09 %      0.19 %      0.28 %      0.19 %      0.10 %      0.36 % 

Interest bearing deposits in banks

      0.22 %      0.17 %      0.13 %      0.19 %      0.24 %      0.17 %      0.23 % 

Investment securities - taxable

      4.57 %      4.67 %      4.77 %      4.73 %      4.99 %      4.67 %      4.68 % 

Investment securities - nontaxable

      5.02 %      5.18 %      5.21 %      4.99 %      5.19 %      5.13 %      5.44 % 

Loans

      5.82 %      6.03 %      5.93 %      5.62 %      5.93 %      5.93 %      6.12 % 

Covered loans

      9.46 %      15.06 %      8.01 %      6.27 %      0.00 %      10.98 %      0.00 % 
                                                        

Total Earning Assets

      5.34 %      5.74 %      5.36 %      5.15 %      5.42 %      5.48 %      5.53 % 
                                                        

Noninterest bearing deposits

      0.00 %      0.00 %      0.00 %      0.00 %      0.00 %      0.00 %      0.00 % 

NOW accounts

      0.90 %      0.94 %      0.99 %      1.05 %      1.15 %      0.95 %      1.17 % 

MMDA

      1.26 %      1.31 %      1.42 %      1.47 %      1.56 %      1.33 %      1.61 % 

Savings accounts

      0.47 %      0.46 %      0.58 %      0.69 %      0.70 %      0.50 %      0.74 % 

Retail CDs < $100,000

      1.72 %      1.80 %      1.92 %      1.84 %      2.52 %      1.81 %      3.02 % 

Retail CDs > $100,000

      1.80 %      1.81 %      1.94 %      2.22 %      2.76 %      1.85 %      3.34 % 

Brokered CDs

      3.11 %      3.09 %      2.88 %      3.31 %      3.99 %      3.02 %      3.69 % 
                                                        

Total Deposits

      1.31 %      1.35 %      1.41 %      1.48 %      1.78 %      1.36 %      2.10 % 

FHLB advances

      0.00 %      6.44 %      6.08 %      7.53 %      6.15 %      6.18 %      0.73 % 

Subordinated debentures

      2.31 %      1.07 %      1.71 %      3.29 %      4.11 %      1.70 %      4.17 % 

Repurchase agreements

      0.53 %      0.56 %      0.48 %      0.57 %      0.65 %      0.00 %      3.07 % 

Correspondent bank line of credit and other

      0.00 %      0.00 %      0.00 %      1.76 %      1.83 %      1.39 %      2.77 % 
                                                        

Total Non-Deposit Funding

      1.90 %      0.99 %      1.33 %      1.99 %      3.00 %      1.39 %      2.77 % 
                                                        

Total funding (3)

      1.33 %      1.34 %      1.41 %      1.51 %      1.83 %      1.36 %      2.12 % 
                                                        

Net interest spread

      4.01 %      4.40 %      3.95 %      3.64 %      3.60 %      4.13 %      3.41 % 
                                                        

Net interest margin

      4.04 %      4.43 %      3.92 %      3.66 %      3.65 %      4.14 %      3.47 % 
                                                        

 

(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.

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

 

     Three Months Ended     Nine Months Ended  
     Sept.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

Core Earnings Reconciliation

               

Pre-tax operating profit/(loss)

    $ (1,657 )    $ (5,083 )    $ (2,403 )    $ (29,010 )    $ (325 )    $ (9,143 )    $ (5,484 ) 

Plus: Credit Related Costs

               

Provision for loan losses

      9,739        18,608        10,770        16,468        8,298        39,117        25,600   

(Gains)/Losses on the sale of OREO

      1,263        4,173        487        3,572        (76 )      5,923        706   

Problem loan and OREO expense

      1,969        2,051        1,533        990        1,069        5,553        2,375   

Interest reversed on non-accrual loans

      533        1,017        575        1,398        1,267        2,125        2,606   
                                                        

Total Credit-Related Costs

      13,504        25,849        13,365        22,428        10,558        52,718        31,287   
                                                        

Plus: Non-recurring impairment charges

      —          —          —          54,813        —          —          —     

Plus: Costs associated with capital raise

      —          933              933        —     

Less: Non-recurring gains

                  —     

Gains related to FDIC acquisitions

      —          (8,208 )      —          (38,566 )      —          (8,208 )      —     

Gains/(losses) on sales of securities

      —          —          (200 )      (77 )      20        (200 )      (794 ) 

Gains on sales of bank premises

      —          (149 )      (249 )          (398 )      —     

Other non-recurring adjustments

      —          (1,408 )      —          —          (812 )      (1,408 )      (812 ) 
                                                        

Pretax, Pre-provision earnings

    $ 11,847      $ 11,934      $ 10,513      $ 9,588      $ 9,441      $ 34,294      $ 24,197   
                                                        

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

 

 

     Three Months Ended     Nine Months Ended  
     Sept.
2010		     Jun.
2010		     Mar.
2010		     Dec.
2009		     Sept.
2009		     Sept.
2010		     Sept.
2009		  

Recurring Operating Expenses

               

Total Operating Expenses

    $ 18,928      $ 23,383      $ 16,931      $ 75,982      $ 15,360      $ 59,242      $ 48,816   

Less: Credit costs & non-recurring charges

               

(Gains)/Losses on the sale of OREO

      (1,263 )      (4,173 )      (487 )      (3,572 )      76        (5,923 )      (706 ) 

Problem loan and OREO expense

      (1,969 )      (2,051 )      (1,533 )      (990 )      (1,069 )      (5,553 )      (2,375 ) 

Acquisition related expenses

      —          (933 )      —          —          —          (933 )      —     

Goodwill impairment

      —          —          —          (54,813 )      —          —          —     

Severance payments

      (16 )      (310 )      —          —          —          (326 )      —     

Reversal of retirement expense (one time)

      —          —          —          —          380        —          380   

Gains/(Losses) on the sale of premises

      (124 )      149        249        —          —          274        —     

FDIC insurance expense

      (1,304 )      (1,285 )      (1,248 )      (858 )      (654 )      (3,837 )      (2,594 ) 
                                                        

Recurring operating expenses

    $ 14,252      $ 14,780      $ 13,912      $ 15,749      $ 14,093      $ 42,944      $ 43,521