Exhibit 99.1

 

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

 

AMERIS BANCORP REPORTS OPERATING NET INCOME OF $9.8 MILLION, OR $0.32 PER DILUTED SHARE, FOR FIRST QUARTER 2015

 

April 23, 2015

 

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported operating net income of $9.8 million, or $0.32 per diluted share, for the quarter ended March 31, 2015, compared to $8.1 million, or $0.32 per diluted share, for the quarter ended March 31, 2014. Commenting on the Company’s quarterly results, Edwin W. Hortman, Jr., the Company’s President and Chief Executive Officer, said, “In the first quarter of 2015, we announced two highly accretive acquisitions and a supporting capital raise. We had our strongest quarter in new loan originations with better than expected yields. Our mortgage group had its strongest quarter of profitability and finished the quarter with very robust pipelines. As we move into the second quarter and the last half of 2015, our challenge is to continue developing the pipelines and investment opportunities for the liquidity in our two pending acquisitions while limiting the impact on operating expenses.”

 

Highlights of the Company’s performance and results for the first quarter of 2015 include the following:

 

·

Net income available to common shareholders increased 21.1% compared to the first quarter of 2014

 

·

The Company completed a private placement of 5,320,000 shares of common stock during the quarter

 

·

The Company announced agreements to acquire Merchants & Southern Banks of Florida, Inc. and 18 additional branches located in North Florida and South Georgia

 

·

Loans, excluding purchased non-covered and covered loans, increased by $109.5 million during the quarter, reflecting an annualized growth rate of 23.5%

 

·

Return on assets and return on average tangible equity were 0.97% and 8.76%, respectively

 

·

Total revenue increased to $59.9 million in the first quarter of 2015, compared to $50.6 million in the first quarter of 2014

 

·

The Company’s net interest margin remained strong at 4.39%

 

·

Noninterest income increased 37.8% in the first quarter of 2015 to $17.6 million, compared to $12.8 million in the first quarter of 2014

·

Tangible common equity to tangible assets increased to 10.26%, a 38.3% increase compared to December 31, 2014

 

·

Tangible book value per share increased to $13.01, compared to $10.99 at December 31, 2014

 

 

Pending Acquisitions

During the first quarter of 2015, the Company announced its intent to acquire Merchants & Southern Banks of Florida, Inc., the largest non-regional bank operating in Gainesville, Florida. The Company has received regulatory approval and anticipates an estimated closing date of May 22, 2015.

 

Additionally, the Company announced its intention to acquire 18 branches in its existing footprint from Bank of America. The branches, located in South Georgia and North Florida, include approximately $864 million of total deposits and a small amount of performing loans. The Company anticipates that the closing of this acquisition will occur during the second quarter of 2015.

 

The acquisitions, combined with the supporting capital raise, are expected to be over 15% accretive to 2016 earnings per share and 4.50% accretive to tangible book value reported at December 31, 2014.

 

Operating Results

Net income available to common shareholders in the first quarter of 2015 totaled $9.8 million, an increase of 21.1% compared to the same quarter in 2014. Revenue during the first quarter totaled $59.9 million, an increase of 18.4% compared to the first quarter of 2014. Increases in revenue resulted from the addition of The Coastal Bank, as well as strong organic growth in loans, excluding purchased non-covered and covered loans. Returns on average assets and average tangible common equity were 0.97% and 8.76%, respectively, in the first quarter of 2015 compared to 0.96% and 11.66%, respectively, in the same quarter of 2014. The capital raise was completed in the first quarter of 2015, but the Company does not expect to have the capital fully deployed until the second half of 2015, at which time management believes return on average tangible common equity will approach historical levels.

 

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2015 totaled $38.8 million, an increase of $4.3 million, or 12.6%, compared to the $34.5 million reported for the first quarter of 2014. The Company’s net interest margin decreased during the quarter to 4.39%, compared to 4.57% during the first quarter of 2014. Excluding accretion on purchased assets, the Company’s net interest margin was 4.05% in the first quarter of 2015, compared to 4.17%% in the fourth quarter of 2014 and 4.21% in the first quarter of 2014. The Company’s net interest margin was negatively impacted by 10bps due to the higher level of short-term assets as a percentage of earning assets. The Company intends to be fully invested in either investment securities or loans by the end of the year and to maintain minimal levels of short-term assets as it has in the past.

 

Yields on earning assets in the first quarter of 2015 were 4.79%, compared to 5.01% in the first quarter of 2014. Yields on total loans outstanding, excluding accretion, in the first quarter were 5.01%, compared to 5.05% in the fourth quarter of 2014. New loan production in the first quarter totaled $254.0 million, with weighted average yields of 4.55%, compared to $228.6 million and 4.65% in the fourth quarter of 2014.

 

Total interest expense for the first quarter of 2015 was $3.5 million, compared to $3.4 million in the same quarter of 2014. 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 lower during the first quarter of 2015 at 0.27%, compared to 0.30% during the first quarter of 2014. Yields on each deposit class were essentially unchanged from the prior year. 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 first quarter of 2015 was $17.6 million, an increase of $4.8 million, or 37.8%, compared to the same quarter in 2014. The Company’s mortgage operations continued to make improvements in revenues and net income, reporting its best quarter ever for the Company. Total revenue in the mortgage group grew to $10.3 million, an improvement of 64% compared to the same quarter in 2014. Net income improved at a faster pace to $2.5 million, compared to $947,000 in the first quarter of 2014. Total production in the first quarter of 2015 amounted to $188.3 million (83% retail and 17% wholesale), compared to $130.8 million in the same quarter of 2014 (80% retail and 20% wholesale). Relationships with larger builders and real estate firms continue to drive the Company’s production from this division. Open pipelines finished the first quarter of 2015 at $110.9 million, compared to $57.0 million at the beginning of the first quarter of 2015 and $75.2 million at the end of the first quarter of 2014.

 

 

Service charges in the first quarter of 2015 were $6.4 million, an increase of $843,000, or 15.1%, compared to the same quarter in 2014. 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 acquisition of The Coastal Bank in June 2014.

 

During the quarter, the Company recorded approximately $1.5 million of revenue from its SBA division, compared to $685,000 in the same quarter in 2014. Expenses related to SBA lending also increased, from $400,000 in the first quarter of 2014 to $705,000 in the first quarter of 2015. The pipeline of opportunities and closed loans going into the second quarter indicate a much stronger second quarter in revenue than what the Company experienced in the first quarter.

 

Non-interest Expense

During the first quarter of 2015, operating expenses decreased approximately $906,000 to $40.8 million from $41.7 million in the fourth quarter of 2014. Excluding merger and credit related costs, the Company’s total operating expenses increased approximately $0.7 million during the current quarter of 2015 as compared to the fourth quarter of 2014. These increases related to the Company’s aggressive investment in the scale of its operations, particularly in information technology and customer care centers. Additional costs are anticipated in the coming quarters as the Company approaches the closing of the acquisitions announced early in the first quarter of 2015.

 

Salaries and benefits increased to $20.6 million in the current quarter of 2015, compared to $17.4 million in the same quarter in 2014. Increases in compensation costs relate to staffing additions from the acquisition of The Coastal Bank in June 2014, as well as increases associated with higher mortgage revenue and originations in the current quarter compared to the same quarter in 2014.

 

Non-provision credit resolution-related costs increased from $2.2 million in the first quarter of 2014 to $3.2 million in the first quarter of 2015. During the quarter, the Company brought several larger non-performing assets closer to resolution and incurred higher than normal expenses associated with these efforts. Legal fees associated with OREO and non-accrual loans totaled $754,000 in the first quarter of 2015 compared to $403,000 in the first quarter of 2014.

 

Occupancy and equipment costs increased from $4.1 million in the first quarter of 2014 to $4.6 million in the first quarter of 2015, due to the increased number of branches operated by the Company since its acquisition of The Coastal Bank. Data processing and telecommunications expenses increased from $3.5 million in the first quarter of 2014 to $4.3 million in the first quarter of 2015. During the quarter, the Company renegotiated a series of contracts with its core service provider that should provide some savings in the coming quarters on a relative basis with the anticipated acquisitions.

 

Balance Sheet Trends

Total assets at March 31, 2015 were $4.15 billion, compared to $4.04 billion at December 31, 2014. Loans, including loans held for sale, totaled $2.96 billion at March 31, 2015, compared to $2.93 billion at December 31, 2014. During the first quarter, growth in legacy loans (loans excluding purchased non-covered and covered loans) amounted to $109.5 million, or 23.5% on an annualized basis. Growth during the first quarter of 2015 was spread evenly across most loan types, including agriculture, municipal, commercial real estate and mortgage.

 

Funding sources continued to improve over year end levels. At March 31, 2015, total deposits amounted to $3.48 billion, or 95.5% of total funding, compared to $3.43 billion and 94.0%, respectively, at December 31, 2014. Non-interest bearing deposits reflected the largest growth, ending the current quarter at $967.0 million, or 27.8% of total deposits, compared to $839.4 million, or 24.5%, at December 31, 2014. Aggressive sales efforts on both commercial and consumer balances, as well as the Coastal Bank acquisition, were the reason for the 38.4% growth in noninterest bearing deposits from March 31, 2014 to March 31, 2015.

 

Stockholders’ equity at March 31, 2015 totaled $489.8 million, compared to $366.0 million reported at December 31, 2014. The increase in stockholders’ equity was the result of the issuance of $114.9 million of common shares in the first quarter of 2015, together with earnings of $9.8 million during the quarter.

 

 

Tangible common equity as a percentage of tangible assets increased to 10.26% at the end of the first quarter of 2015, compared to 7.42% at the end of 2014. The additional common equity associated with the private placement completed during the quarter, together with net income for the quarter, account for the majority of the increase in the Company’s capital ratios. Tangible book value increased to $13.01 per share at March 31, 2015, compared to $10.99 per share at December 31, 2014. On a pro forma basis, assuming the impacts of the pending mergers, the Company’s tangible common equity to tangible assets ratio would be 7.04% and tangible book value would be $11.74 per share.

 

Conference Call

The Company will host a teleconference at 10:00 a.m. EDT today (April 23, 2015) to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 or 1-412-902-6630 for international participants and 1-855-669-9657 for Canada. The conference ID name is Ameris Bancorp.  A replay of the call will be available one hour after the end of the conference call until May 8, 2015. To listen to the replay, dial 1-877-344-7529 or 1-412-317-0088 for international participants and 1-855-669-9658 for Canada. The conference replay access code is 10064031. The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at www.amerisbank.com. 

 

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 73 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
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
EARNINGS
Net Income Available to Common Shareholders		$	9,764			$	10,580			$	11,663			$	8,130			$	8,064
PER COMMON SHARE DATA
Earnings per share available to common shareholders:
Basic		$	0.32			$	0.40			$	0.44			$	0.32			$	0.32
Diluted		$	0.32			$	0.39			$	0.43			$	0.32			$	0.32
Cash Dividends per share		$	0.05			$	0.05			$	0.05			$	0.05			$	-
Book value per share (period end)		$	15.22			$	13.67			$	13.22			$	12.83			$	11.93
Tangible book value per share (period end)		$	13.01			$	10.99			$	10.68			$	10.26			$	10.31
Weighted average number of shares:
Basic			30,442,998				26,771,636				26,773,033				25,180,665				25,144,342
Diluted			30,796,148				27,090,293				27,160,886				25,633,130				25,573,320
Period-end number of shares			32,182,143				26,773,863				26,774,402				26,771,821				25,159,073
Market data:
High closing price		$	26.55			$	26.48			$	24.04			$	23.90			$	24.00
Low closing price		$	22.75			$	21.95			$	21.00			$	19.73			$	19.86
Period end closing price		$	26.39			$	25.64			$	21.95			$	21.56			$	23.30
Average daily volume			105,152				111,473				79,377				79,038				103,279
PERFORMANCE RATIOS
Return on average assets			0.97	%			1.05	%			1.17	%			0.93	%			0.96	%
Return on average common equity			8.76	%			11.57	%			13.19	%			10.53	%			11.66	%
Earning asset yield (TE)			4.79	%			5.08	%			4.96	%			5.08	%			5.01	%
Total cost of funds			0.40	%			0.43	%			0.45	%			0.42	%			0.43	%
Net interest margin (TE)			4.39	%			4.64	%			4.50	%			4.65	%			4.57	%
Non-interest income excluding securities transactions,
as a percent of total revenue (TE)			29.06	%			26.50	%			28.86	%			28.87	%			25.02	%
Efficiency ratio			72.38	%			72.75	%			67.64	%			73.05	%			70.36	%
CAPITAL ADEQUACY (period end)
Stockholders' equity to assets			11.79	%			9.07	%			8.85	%			8.64	%			8.60	%
Tangible common equity to tangible assets			10.26	%			7.42	%			7.27	%			7.04	%			7.53	%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets			10.26	%			7.42	%			7.27	%			7.04	%			7.53	%
Effect of goodwill and other intangibles			1.54	%			1.65	%			1.58	%			1.61	%			1.07	%
Equity to assets (GAAP)			11.79	%			9.07	%			8.85	%			8.64	%			8.60	%
OTHER PERIOD-END DATA
Banking Division FTE			852				853				867				888				785
Mortgage Division FTE			170				174				176				175				161
Total Ameris Bancorp FTE Headcount			1,022				1,027				1,043				1,063				946
Assets per Banking Division FTE		$	4,874			$	4,733			$	4,613			$	4,474			$	4,443
Branch locations			73				73				74				74				68
Deposits per branch location		$	47,674			$	47,002			$	45,583			$	45,798			$	44,274

 

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

 

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
INCOME STATEMENT
Interest income
Interest and fees on loans		$	38,618			$	41,235			$	39,610			$	35,297			$	34,469
Interest on taxable securities			3,153				3,114				3,034				2,953				2,985
Interest on nontaxable securities			469				483				496				312				335
Interest on deposits in other banks			124				66				46				45				79
Interest on federal funds sold			4				2				-				-				5
Total interest income			42,368				44,900				43,186				38,607				37,873
Interest expense
Interest on deposits		$	2,280			$	2,560			$	2,540			$	2,205			$	2,183
Interest on other borrowings			1,256				1,334				1,514				1,138				1,206
Total interest expense			3,536				3,894				4,054				3,343				3,389
Net interest income			38,832				41,006				39,132				35,264				34,484
Provision for loan losses			1,069				888				1,669				1,365				1,726
Net interest income after provision for loan losses		$	37,763			$	40,118			$	37,463			$	33,899			$	32,758
Noninterest income
Service charges on deposit accounts		$	6,429			$	6,522			$	6,659			$	5,847			$	5,586
Mortgage banking activity			8,083				6,476				7,498				6,944				5,068
Other service charges, commissions and fees			668				643				690				662				652
Gain(loss) on sale of securities			12				-				132				-				6
Other non-interest income			2,383				2,721				2,922				2,366				1,442
Total noninterest income			17,575				16,362				17,901				15,819				12,754
Noninterest expense
Salaries and employee benefits			20,632				19,316				20,226				16,942				17,394
Occupancy and equipment expenses			4,554				4,717				4,669				4,071				4,064
Data processing and telecommunications expenses			4,260				4,229				3,928				3,940				3,454
Credit resolution related expenses (1)			3,161				5,290				3,186				2,840				2,190
Advertising and marketing expenses			641				847				594				718				710
Amortization of intangible assets			630				662				698				437				533
Merger and conversion charges			15				67				551				2,872				450
Other non-interest expenses			6,934				6,605				4,727				5,498				4,444
Total noninterest expense			40,827				41,733				38,579				37,318				33,239
Income before income taxes		$	14,511			$	14,747			$	16,785			$	12,400			$	12,273
Income tax expense			4,747				4,167				5,122				4,270				3,923
Net income		$	9,764			$	10,580			$	11,663			$	8,130			$	8,350
Preferred stock dividends			-				-				-				-				286
Net income available to common shareholders		$	9,764			$	10,580			$	11,663			$	8,130			$	8,064
Diluted earnings available to common shareholders			0.32				0.39				0.43				0.32				0.32

 

 

(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
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks		$	80,142			$	78,036			$	69,421			$	80,986			$	71,387
Federal funds sold and interest bearing balances			126,157				92,323				40,165				44,800				48,677
Investment securities available for sale, at fair value			610,330				541,805				529,509				535,630				456,713
Other investments			8,636				10,275				12,687				10,971				9,322
Mortgage loans held for sale			73,796				94,759				110,059				81,491				51,693
Loans, net of unearned income			1,999,420				1,889,881				1,848,759				1,770,059				1,695,382
Purchased, non-covered loans			643,092				674,239				673,724				702,131				437,269
Covered loans			245,745				271,279				313,589				331,250				372,694
Less allowance for loan losses			(21,852	)			(21,157	)			(22,212	)			(22,254	)			(22,744	)
Loans, net			2,866,405				2,814,242				2,813,860				2,781,186				2,482,601
Other real estate owned			32,339				33,160				35,320				35,373				33,839
Purchased, non-covered other real estate owned			13,818				15,585				13,660				16,598				3,864
Covered other real estate owned			16,089				19,907				28,883				38,426				42,636
Total other real estate owned			62,246				68,652				77,863				90,397				80,339
Premises and equipment, net			98,292				97,251				98,752				99,495				87,430
Goodwill			63,547				63,547				58,879				58,903				35,049
Other intangibles, net			7,591				8,221				9,114				9,812				5,477
FDIC loss sharing receivable			23,312				31,351				38,233				49,180				53,181
Cash value of bank owned life insurance			59,212				58,867				58,217				57,864				49,738
Other assets			73,238				77,748				82,649				72,420				56,377
Total assets		$	4,152,904			$	4,037,077			$	3,999,408			$	3,973,135			$	3,487,984
Liabilities
Deposits:
Noninterest-bearing		$	967,015			$	839,377			$	816,517			$	790,798			$	698,866
Interest-bearing			2,513,216				2,591,772				2,556,602				2,598,237				2,311,781
Total deposits			3,480,231				3,431,149				3,373,119				3,389,035				3,010,647
Federal funds purchased & securities sold under
agreements to repurchase			55,520				73,310				32,351				51,109				49,974
Other borrowings			43,851				78,881				147,409				100,293				59,677
Other liabilities			17,952				22,384				27,615				24,457				12,028
Subordinated deferrable interest debentures			65,567				65,325				65,084				64,842				55,628
Total liabilities			3,663,121				3,671,049				3,645,578				3,629,736				3,187,954
Stockholders' equity
Preferred stock		$	-			$	-			$	-			$	-			$	-
Common stock			33,593				28,159				28,158				28,155				26,536
Capital surplus			335,578				225,015				224,142				222,550				190,513
Retained earnings			126,566				118,412				109,170				100,185				92,055
Accumulated other comprehensive income/(loss)			6,353				6,098				3,974				4,123				2,374
Less treasury stock			(12,307	)			(11,656	)			(11,614	)			(11,614	)			(11,448	)
Total stockholders' equity			489,783				366,028				353,830				343,399				300,030
Total liabilities and stockholders' equity		$	4,152,904			$	4,037,077			$	3,999,408			$	3,973,135			$	3,487,984
Other Data
Earning Assets			3,698,540				3,564,286				3,515,805				3,465,361				3,062,428
Intangible Assets			71,138				71,768				67,993				68,715				40,526
Interest Bearing Liabilities			2,678,154				2,809,288				2,801,446				2,814,481				2,477,060
Average Assets			4,079,750				4,011,128				3,969,893				3,494,466				3,521,588
Average Common Stockholders' Equity			452,132				362,659				350,733				309,696				290,462

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

 

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
ASSET QUALITY INFORMATION (1)
Allowance for loan losses
Balance at beginning of period		$	21,157			$	22,212			$	22,254			$	22,744			$	22,377
Provision for loan loss (2)			1,100				650				1,573				997				1,501
Charge-offs			855				2,071				1,975				1,973				1,606
Recoveries			450				366				360				486				472
Net charge-offs (recoveries)			405				1,705				1,615				1,487				1,134
Ending balance		$	21,852			$	21,157			$	22,212			$	22,254			$	22,744
As a percentage of loans			1.09	%			1.12	%			1.20	%			1.26	%			1.34	%
As a percentage of nonperforming loans			104.85	%			97.37	%			97.38	%			100.65	%			85.09	%
Net charge-off information
Charge-offs
Commercial, financial & agricultural		$	392			$	468			$	191			$	165			$	743
Real estate - residential			268				368				406				752				181
Real estate - commercial & farmland			12				1,033				953				769				533
Real estate - construction & development			97				74				296				157				65
Consumer installment			86				128				129				130				84
Total charge-offs			855				2,071				1,975				1,973				1,606
Recoveries
Commercial, financial & agricultural			285				91				47				134				49
Real estate - residential			57				71				52				48				83
Real estate - commercial & farmland			15				91				31				9				143
Real estate - construction & development			31				49				96				96				108
Consumer installment			62				64				134				199				89
Total recoveries			450				366				360				486				472
Net charge-offs (recoveries)		$	405			$	1,705			$	1,615			$	1,487			$	1,134
Non-accrual loans (excluding purchased non-covered
and covered loans)		$	20,841			$	21,728			$	22,810			$	22,111			$	26,729
Non-accrual purchased non-covered loans			17,308				18,249				17,007				15,770				15,318
Foreclosed assets (excluding purchased assets)			32,339				33,160				35,320				35,373				33,839
Purchased, non-covered other real estate owned			13,818				15,585				13,660				16,598				3,864
Accruing loans delinquent 90 days or more			-				1				-				-				-
Total non-performing assets, excluding covered assets		$	84,306			$	88,723			$	88,797			$	89,852			$	79,750
Non-performing assets as a percent of total assets			2.03	%			2.20	%			2.22	%			2.26	%			2.29	%
Net charge offs as a percent of loans (Annualized)			0.08	%			0.36	%			0.35	%			0.34	%			0.27	%

 

 

(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 2014 and 2015, 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:
		Mar.				Dec.				Sept.				Jun.				Mar.
Loans by Type		2015				2014				2014				2014				2014
Commercial, financial & agricultural		$	334,917			$	319,654			$	334,783			$	304,588			$	270,571
Real estate - construction & development			178,568				161,507				154,315				149,346				149,543
Real estate - commercial & farmland			947,274				907,524				882,160				850,000				836,230
Real estate - residential			496,043				456,106				436,515				422,731				393,001
Consumer installment			29,113				30,782				31,403				31,902				32,345
Other			13,505				14,308				9,583				11,492				13,692
Total Non-purchased		$	1,999,420			$	1,889,881			$	1,848,759			$	1,770,059			$	1,695,382
Commercial, financial & agricultural		$	36,258			$	38,041			$	38,077			$	41,583			$	30,810
Real estate - construction & development			53,668				58,362				60,262				64,084				31,820
Real estate - commercial & farmland			291,760				306,706				296,790				311,748				174,281
Real estate - residential			257,216				266,342				273,347				278,451				196,078
Consumer installment			4,190				4,788				5,248				6,265				4,280
Total Purchased non-covered (net of discounts)		$	643,092			$	674,239			$	673,724			$	702,131			$	437,269
Commercial, financial & agricultural		$	20,905			$	21,467			$	22,545			$	25,209			$	24,813
Real estate - construction & development			19,519				23,447				27,756				31,600				41,434
Real estate - commercial & farmland			130,290				147,627				180,566				188,643				214,649
Real estate - residential			74,847				78,520				82,445				85,518				91,372
Consumer installment			184				218				277				280				426
Total Covered (net of discounts)		$	245,745			$	271,279			$	313,589			$	331,250			$	372,694
Total Loan Portfolio:
Commercial, financial & agricultural		$	392,080			$	379,162			$	395,405			$	371,380			$	326,194
Real estate - construction & development			251,755				243,316				242,333				245,030				222,797
Real estate - commercial & farmland			1,369,324				1,361,857				1,359,516				1,350,391				1,225,160
Real estate - residential			828,106				800,968				792,307				786,700				680,451
Consumer installment			33,487				35,788				36,928				38,447				37,051
Other			13,505				14,308				9,583				11,492				13,692
Total Loans		$	2,888,257			$	2,835,399			$	2,836,072			$	2,803,440			$	2,505,345
Troubled Debt Restructurings, excluding purchased non-covered and covered loans:
Accruing loan types:
Commercial, financial & agricultural		$	277			$	290			$	257			$	257			$	711
Real estate - construction & development			789				679				1,917				2,080				1,953
Real estate - commercial & farmland			7,309				6,477				7,080				7,590				8,733
Real estate - residential			4,513				5,258				7,973				7,335				7,364
Consumer installment			47				55				34				75				87
Total Accruing TDRs		$	12,935			$	12,759			$	17,261			$	17,337			$	18,848
Non-accruing loan types:
Commercial, financial & agricultural		$	17			$	13			$	507			$	465			$	40
Real estate - construction & development			90				228				196				32				29
Real estate - commercial & farmland			64				724				1,672				2,151				1,316
Real estate - residential			736				1,485				759				1,044				961
Consumer installment			90				73				93				51				19
Total Non-accrual TDRs		$	997			$	2,523			$	3,227			$	3,743			$	2,365
Total Troubled Debt Restructurings		$	13,932			$	15,282			$	20,488			$	21,080			$	21,213
The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:
Grade 10 - Prime credit		$	157,462			$	128,577			$	121,486			$	110,842			$	93,805
Grade 15 - Good credit			205,929				217,804				222,714				226,652				243,963
Grade 20 - Satisfactory credit			1,012,733				947,948				908,054				866,356				817,718
Grade 23 - Performing, under-collateralized credit			28,643				29,205				28,826				28,429				31,056
Grade 25 - Minimum acceptable credit			513,009				488,187				484,200				450,363				417,177
Grade 30 - Other asset especially mentioned			25,461				25,983				31,750				33,360				38,240
Grade 40 - Substandard			56,179				52,176				51,640				54,047				53,286
Grade 50 - Doubtful			4				1				88				10				137
Grade 60 - Loss			-				-				1				-				-
Total		$	1,999,420			$	1,889,881			$	1,848,759			$	1,770,059			$	1,695,382

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
AVERAGE BALANCES
Federal funds sold		$	5,500			$	3,163			$	500			$	500			$	7,455
Interest bearing deposits in banks			158,286				69,772				63,355				50,850				99,751
Investment securities - taxable			485,922				461,800				451,563				418,498				411,251
Investment securities - nontaxable			71,229				72,072				74,176				49,631				51,092
Other investments			9,450				9,804				8,209				6,629				12,330
Mortgage loans held for sale			75,831				97,406				83,751				54,517				49,397
Loans			1,911,601				1,871,618				1,795,059				1,706,564				1,639,672
Purchased non-covered loans			650,331				659,472				688,452				433,249				441,138
Covered loans			262,693				299,981				324,498				354,766				379,460
Total Earning Assets		$	3,630,843			$	3,545,088			$	3,489,563				3,075,204				3,091,546
Noninterest bearing deposits		$	897,937			$	850,879			$	807,416			$	680,058			$	666,493
NOW accounts			756,795				786,511				743,352				691,353				675,199
MMDA			857,346				840,397				861,197				770,047				749,150
Savings accounts			163,624				156,663				155,559				145,528				143,109
Retail CDs < $100,000			372,463				386,844				439,150				356,483				373,523
Retail CDs > $100,000			383,962				401,934				370,166				360,703				361,861
Brokered CDs			-				4,023				5,970				5,970				5,970
Total Deposits			3,432,127				3,427,251				3,382,810				3,010,142				2,975,305
FHLB advances			16,778				35,815				55,435				28,626				68,333
Other borrowings			43,871				46,508				47,346				35,280				30,004
Subordinated debentures			65,436				65,195				64,953				55,789				55,092
Federal funds purchased and securities sold
under agreements to repurchase			52,707				47,247				44,316				40,008				57,112
Total Non-Deposit Funding			178,792				194,765				212,050				159,703				210,541
Total Funding		$	3,610,919			$	3,622,016			$	3,594,860			$	3,169,845			$	3,185,846

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

 

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold		$	4			$	2			$	-			$	-			$	5
Interest bearing deposits in banks			124				66				47				45				79
Investment securities - taxable			3,153				3,114				3,034				2,953				2,985
Investment securities - nontaxable (TE)			633				652				670				421				452
Mortgage loans held for sale			692				947				787				457				403
Loans (TE)			22,418				23,294				21,790				21,996				20,647
Purchased non-covered loans			11,840				12,612				12,610				7,933				6,865
Covered loans			3,995				4,704				4,726				5,164				6,761
Total Earning Assets		$	42,859			$	45,391			$	43,663			$	38,969			$	38,197
INTEREST EXPENSE
Non-interest bearing deposits		$	-			$	-			$	-			$	-			$	-
NOW accounts			376				414				324				291				288
MMDA			663				768				783				722				681
Savings accounts			37				45				42				40				37
Retail CDs < $100,000			513				553				596				478				489
Retail CDs > $100,000			691				746				749				626				640
Brokered CDs			-				34				47				48				48
Total Deposits			2,280				2,560				2,541				2,205				2,183
FHLB advances			15				26				51				26				37
Other borrowings			366				379				558				415				408
Subordinated debentures			832				887				866				666				708
Federal funds purchased and securities sold
under agreements to repurchase			43				41				39				31				53
Total Non-Deposit Funding			1,256				1,333				1,514				1,138				1,206
Total Funding		$	3,536			$	3,893			$	4,055			$	3,343			$	3,389
Net Interest Income (TE)		$	39,323			$	41,498			$	39,608			$	35,626			$	34,808

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

 

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
		2015				2014				2014				2014				2014
YIELDS (1)
Federal funds sold			0.29	%			0.25	%			0.00	%			0.00	%			0.27	%
Interest bearing deposits in banks			0.32	%			0.38	%			0.29	%			0.35	%			0.32	%
Investment securities - taxable			2.63	%			2.68	%			2.67	%			2.83	%			2.94	%
Investment securities - nontaxable			3.60	%			3.59	%			3.58	%			3.40	%			3.59	%
Mortgage loans held for sale			3.70	%			3.86	%			3.73	%			3.36	%			3.31	%
Loans			4.76	%			4.94	%			4.82	%			5.17	%			5.11	%
Purchased non-covered loans			7.38	%			7.59	%			7.27	%			7.34	%			6.31	%
Covered loans			6.17	%			6.22	%			5.78	%			5.84	%			7.23	%
Total Earning Assets			4.79	%			5.08	%			4.96	%			5.08	%			5.01	%
Noninterest bearing deposits			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
NOW accounts			0.20	%			0.21	%			0.17	%			0.17	%			0.17	%
MMDA			0.31	%			0.36	%			0.36	%			0.38	%			0.37	%
Savings accounts			0.09	%			0.11	%			0.11	%			0.11	%			0.10	%
Retail CDs < $100,000			0.56	%			0.57	%			0.54	%			0.54	%			0.53	%
Retail CDs > $100,000			0.73	%			0.74	%			0.80	%			0.70	%			0.72	%
Brokered CDs			0.00	%			3.35	%			3.12	%			3.22	%			3.26	%
Total Deposits			0.27	%			0.30	%			0.30	%			0.29	%			0.30	%
FHLB advances			0.36	%			0.29	%			0.36	%			0.36	%			0.22	%
Other borrowings			3.38	%			3.23	%			4.68	%			4.72	%			5.51	%
Subordinated debentures			5.16	%			5.40	%			5.29	%			4.79	%			5.21	%
Federal funds purchased and securities sold
under agreements to repurchase			0.33	%			0.34	%			0.35	%			0.31	%			0.38	%
Total Non-Deposit Funding			2.85	%			2.72	%			2.83	%			2.86	%			2.32	%
Total funding (3)			0.40	%			0.43	%			0.45	%			0.42	%			0.43	%
Net interest spread			4.39	%			4.65	%			4.52	%			4.66	%			4.58	%
Net interest margin			4.39	%			4.64	%			4.50	%			4.65	%			4.57	%

 

(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
		Mar.				Dec.				Sept.				Jun.				Mar.
Net Operating Income Reconciliation		2015				2014				2014				2014				2014
Net income available to common shareholders		$	9,764			$	10,580			$	11,663			$	8,130			$	8,064
Conversion charges			15				67				551				2,872				450
Tax effect of conversion charges			(5	)			(23	)			(193	)			(1,005	)			(158	)
Plus: After tax conversion charges			10				44				358				1,867				293
Net operating income			9,774				10,624				12,021				9,997				8,357
			Three Months Ended
			Mar.				Dec.				Sept.				Jun.				Mar.
Net Interest Margin and Yields on Total Loans			2015				2014				2014				2014				2014
Excluding Accretion Reconciliation.
Total Interest Income (TE)		$	42,859			$	45,391			$	43,663			$	38,969			$	38,197
Accretion Income			3,097				4,280				2,964				2,572				2,727
Total Interest Income (TE) Excluding Accretion		$	39,762			$	41,111			$	40,699			$	36,397			$	35,470
Yield on Total Loans Excluding Accretion			5.01	%			5.05	%			5.07	%			5.19	%			5.16	%
Net Interest Margin Excluding Accretion			4.05	%			4.17	%			4.17	%			4.31	%			4.21	%
			Three Months Ended
			Mar.				Dec.				Sept.				Jun.				Mar.
Core Earnings Reconciliation			2015				2014				2014				2014				2014
Pre-tax operating profit		$	14,511			$	14,747			$	16,785			$	12,400			$	12,273
Plus: Credit Related Costs
Provision for loan losses			1,069				888				1,669				1,365				1,726
(Gains)/Losses on the sale of legacy OREO			110				(228	)			(3	)			283				(55	)
Gains/(Losses) on the sale of covered OREO			20				344				(184	)			249				118
Problem loan and OREO expense			3,031				5,175				3,373				2,309				2,127
Interest reversed (received) on non-accrual loans			156				(6	)			94				71				246
Total Credit-Related Costs			4,386				6,173				4,949				4,277				4,162
Plus: Conversion charges			15				67				551				2,872				450
Less: Non-recurring gains
Gains on sales of securities			(12	)			-				(132	)			-				(6	)
Gains on sales of bank premises			-				-				(616	)			-				-
Other non-recurring adjustments			-				188				-				(870	)			-
Pretax, Pre-provision earnings		$	18,900			$	21,175			$	21,537			$	18,679			$	16,879
As percentage of average assets, annualized			1.88	%			2.09	%			2.15	%			2.14	%			1.94	%
			Three Months Ended
			Mar.				Dec.				Sept.				Jun.				Mar.
Recurring Operating Expenses			2015				2014				2014				2014				2014
Total Operating Expenses			40,827				41,733				38,579				37,318				33,239
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO			(110	)			228				3				(283	)			55
Gains/(Losses) on the sale of covered OREO			(20	)			(344	)			184				(249	)			(118	)
Problem loan and OREO expense			(3,031	)			(5,175	)			(3,373	)			(2,309	)			(2,127	)
Severance payments			-				(188	)			-				-				-
Conversion expenses			(15	)			(67	)			(551	)			(2,872	)			(450	)
Gains/(Losses) on the sale of premises			-				-				616				-				-
Recurring operating expenses		$	37,651			$	36,187			$	35,458			$	31,605			$	30,599

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

 

(unaudited)

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

 

		Three Months Ended
		Mar.				Dec.				Sept.				Jun.				Mar.
Segment Reporting		2015				2014				2014				2014				2014
Banking Division:
Net interest income		$	35,839			$	38,045			$	36,142			$	33,345			$	32,928
Provision for loan losses			927				737				994				1,365				1,726
Noninterest income			8,780				8,595				8,932				7,449				7,361
Noninterest expense:
Salaries and employee benefits			15,362				14,196				14,819				12,509				13,577
Occupancy			4,144				4,319				4,277				3,752				3,749
Data Processing			4,011				3,901				3,619				3,590				3,326
Other expenses			10,356				12,320				8,722				10,753				7,380
Total noninterest expense			33,873				34,736				31,437				30,604				28,032
Income before income taxes			9,819				11,167				12,643				8,825				10,531
Income Tax			3,105				2,914				3,672				3,019				3,313
Net income			6,714				8,253				8,971				5,806				7,218
Preferred stock dividends			-				-				-				-				286
Net income available to common shareholders		$	6,714			$	8,253			$	8,971			$	5,806			$	6,932
Mortgage Division:
Net interest income		$	2,380			$	2,574			$	2,347			$	1,339			$	1,100
Provision for loan losses			142				151				675				-				-
Noninterest income			7,883				6,313				7,135				7,002				5,164
Noninterest expense:
Salaries and employee benefits			4,654				4,259				4,409				3,937				3,568
Occupancy			382				373				368				300				302
Data Processing			245				326				306				343				122
Other expenses			968				999				869				1,312				815
Total noninterest expense			6,249				5,957				5,952				5,892				4,807
Income before income taxes			3,872				2,779				2,855				2,449				1,457
Income Tax			1,355				973				999				857				510
Net income			2,517				1,806				1,856				1,592				947
Preferred stock dividends			-				-				-				-				-
Net income available to common shareholders		$	2,517			$	1,806			$	1,856			$	1,592			$	947
SBA Division:
Net interest income		$	613			$	387			$	643			$	580			$	456
Provision for loan losses			-				-				-				-				-
Noninterest income			912				1,454				1,834				1,368				229
Noninterest expense:
Salaries and employee benefits			616				861				998				496				249
Occupancy			28				25				24				19				13
Data Processing			4				2				3				7				6
Other expenses			57				152				165				300				132
Total noninterest expense			705				1,040				1,190				822				400
Income before income taxes			820				801				1,287				1,126				285
Income Tax			287				280				450				394				100
Net income			533				521				837				732				185
Preferred stock dividends			-				-				-				-				-
Net income available to common shareholders		$	533			$	521			$	837			$	732			$	185
Total Consolidated:
Net interest income		$	38,832			$	41,006			$	39,132			$	35,264			$	34,484
Provision for loan losses			1,069				888				1,669				1,365				1,726
Noninterest income			17,575				16,362				17,901				15,819				12,754
Noninterest expense:
Salaries and employee benefits			20,632				19,316				20,226				16,942				17,394
Occupancy			4,554				4,717				4,669				4,071				4,064
Data Processing			4,260				4,229				3,928				3,940				3,454
Other expenses			11,381				13,471				9,756				12,365				8,327
Total noninterest expense			40,827				41,733				38,579				37,318				33,239
Income before income taxes			14,511				14,747				16,785				12,400				12,273
Income Tax			4,747				4,167				5,122				4,270				3,923
Net income			9,764				10,580				11,663				8,130				8,350
Preferred stock dividends			-				-				-				-				286
Net income available to common shareholders		$	9,764			$	10,580			$	11,663			$	8,130			$	8,064