EX-99.1 2 d764398dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS OPERATING NET INCOME OF $10.0 MILLION, OR $0.40 PER

DILUTED SHARE, FOR SECOND QUARTER 2014

July 22, 2014

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.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
2013		     Jun.
2014		     Jun.
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.
2014		      Mar.
2014		      Dec.
2013		      Sept.
2013		      Jun.
2013		     Jun.
2014		      Jun.
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.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
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.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
2013		     Jun.
2014		     Jun.
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:  
Loans by Type    Jun.
2014		      Mar.
2014		      Dec.
2013		      Sept.
2013		      Jun.
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.
2014		      Mar.
2014		      Dec.
2013		      Sept.
2013		      Jun.
2013		      Jun.
2014		      Jun.
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.
2014		      Mar.
2014		      Dec.
2013		      Sept.
2013		      Jun.
2013		      Jun.
2014		      Jun.
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 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.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
2013		     Jun.
2014		     Jun.
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  
Core Earnings Reconciliation    Jun.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
2013		     Jun.
2014		     Jun.
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: Cconversion 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  
Recurring Operating Expenses    Jun.
2014		     Mar.
2014		     Dec.
2013		     Sept.
2013		     Jun.
2013		     Jun.
2014		     Jun.
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