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 $15.9 MILLION, OR $0.49 PER DILUTED SHARE, FOR THIRD QUARTER 2015

 

October 23, 2015

 

AMERIS BANCORP (NASDAQ-GS: ABCB) (the “Company”), Moultrie, Georgia, today reported operating net income of $15.9 million, or $0.49 per diluted share, for the quarter ended September 30, 2015, compared with $12.0 million, or $0.44 per diluted share, for the quarter ended September 30, 2014. Operating earnings for the quarter exclude $75,000 of after-tax gains on the sale of securities and $283,000 of after-tax costs associated with the conversion of the Company’s recently completed acquisitions. For the year-to-date period ending September 30, 2015, the Company reported operating net income of $38.0 million, or $1.19 per diluted share, compared with $30.4 million, or $1.16 per share, for the same period in 2014. Earnings per share for 2015 reflect an additional 5.3 million common shares issued in the Company’s private placement completed in January 2015. Commenting on the Company’s quarterly results, Edwin W. Hortman, Jr., the Company’s President and Chief Executive Officer, said, “We had a great third quarter at Ameris Bank highlighted by solid loan growth, higher revenue than our target numbers, credit quality expenses greatly reduced from past quarters and several expense initiatives that are in place that should help continue moving earnings higher. The integration of our two recent acquisitions has been completed, and we look forward to completing the acquisition of Jacksonville Bancorp, Inc. early in 2016.”

 

Including the recently announced acquisition, non-recurring credit charges and gains on the sale of securities, the Company reported net income of $15.6 million, or $0.48 per share, in the third quarter of 2015, compared with $11.7 million, or $0.43 per share, in the same quarter in 2014, and for the year-to-date period in 2015, the Company’s earnings totaled $26.7 million, or $0.84 per share, compared with $27.9 million, or $1.07 per share, in 2014.

 

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

 

·

Announcement of an agreement to acquire Jacksonville Bancorp, Inc., which will add $502 million in total assets and eight additional locations within the Jacksonville MSA

 

·

Operating return on average assets and operating return on average tangible equity of 1.21% and 16.23%, respectively

 

·

Successful data conversion of the 13 branches acquired in the acquisition of Merchants and Southern Bank in Gainesville, Florida

 

·

Total loan growth (including mortgage loans held for sale) of $203.7 million in the third quarter of 2015, or 22.7% annualized

 

·

Organic loan growth of $78.2 million, or 10.4% (annualized), during the third quarter of 2015

 

 

·

27% increase in total recurring revenue to $72.3 million in the third quarter of 2015 as compared with the same quarter in 2014, with recurring revenue defined as net interest income plus noninterest income, but excluding gain on sale of securities

 

·

15.3% increase in tangible book value per share to $12.31, compared with $10.68 per share at September 30, 2014

 

·

39.5% increase in noninterest income to $25.0 million, compared with $17.9 million in the third quarter of 2014

 

·

73.4% increase in profitability from mortgage, SBA and warehouse lines of business to $4.7 million, compared with $2.7 million in the same quarter in 2014.

 

Pending Acquisition

During the third quarter of 2015, the Company announced its intent to acquire Jacksonville Bancorp, Inc., the parent company of The Jacksonville Bank. Upon completion of the transaction, the combined company will have approximately $5.7 billion in assets, $4.0 billion in loans and $4.9 billion in deposits. The acquisition will further expand Ameris’s existing Southeastern footprint in the attractive Jacksonville, Florida market. The Jacksonville Bank currently operates eight banking locations, all of which are located within the Jacksonville MSA. After the acquisition, Ameris will become the largest community bank by deposit market share in the Jacksonville, Florida market. The transaction is expected to close in the first quarter of 2016 and is subject to customary closing conditions, regulatory approvals and approval by Jacksonville Bancorp shareholders.

 

Net Interest Income and Net Interest Margin

 

Net interest income (taxable equivalent) for the third quarter of 2015 totaled $48.1 million, an increase of $8.5 million, or 21.5%, compared with $39.6 million reported for the third quarter of 2014. Accretion income in the current quarter increased to $3.0 million, compared with $2.6 million in the second quarter of 2015, and was consistent with the $3.0 million recorded in the third quarter of 2014. Higher levels of interest income resulted mostly from growth in average loans outstanding of approximately $742.5 million as compared with the third quarter of 2014.

 

The Company’s net interest margin decreased during the quarter to 4.07%, compared with 4.50% during the third quarter of 2014. This decline in net interest margin was expected and resulted from the excess liquidity and short-term investment strategy for the funds in the second and third quarters. Excluding accretion on purchased loans, the Company’s net interest margin was 3.81% in the third quarter of 2015, compared with 4.17% in the third quarter of 2014.

 

Yields on earning assets in the third quarter of 2015 were 4.39%, compared with 4.96% in the third quarter of 2014. The decline in earning asset yields relates almost entirely to the short-term investment strategy associated with the Company’s recent acquisitions. Current yields on the invested funds were approximately 2.80%, consisting of shorter duration mortgage pools, investment securities and some federal funds sold. Current yields on all loans (including purchased non-covered and covered loans and excluding accretion income) declined in the third quarter of 2015 to 4.75%, compared with 5.11% in the same quarter in 2014. Higher yielding covered loans as a percentage of total loans has declined from 11.2% in the third quarter of 2014 to only 6.2% for the current quarter of 2015. Additionally, some of the growth in the legacy portfolio has been in both municipal loans and adjustable rate mortgages that have a significantly better risk profile but lower yields than consolidated levels seen in the past.

 

Total interest expense for the third quarter of 2015 was $3.8 million, compared with $4.1 million in the same quarter of 2014. Decreases in total interest expense were driven primarily by the deposit mix in the portfolio, both from acquisition activity and organic growth. Noninterest bearing deposits were 28.7% of the total average deposits in the third quarter of 2015, compared with 23.9% in the same period in 2014. Deposit costs of funds were lower during the third quarter of 2015 at 0.22%, compared with 0.30% during the third quarter of 2014. Management does not expect deposit costs or overall funding costs to change materially in the coming quarters despite tightening liquidity and increasingly stronger forecasts for asset growth.

 

 

Non-interest Income

Non-interest income in the third quarter of 2015 improved to $25.0 million, an increase of $7.1 million, or 39.5%, compared with the same quarter in 2014. Continued growth and profitability in the Company’s mortgage operations provided most of the improvement, with revenue from mortgage operations increasing to $10.4 million, an increase of 38.8% compared with the same quarter of 2014. Total mortgage loan production increased to $311.0 million in the quarter, compared with $217.7 million in the third quarter of 2014, while spreads (gain on sale) were relatively unchanged at 3.51% in the current quarter compared with 3.46% in the same quarter of 2014.

 

Service charges on deposit accounts increased by $4.1 million to $10.8 million during the quarter, an increase of 61.7% compared with the same quarter in 2014.  Service charge increases associated with the recently closed acquisitions totaled $2.7 million in the third quarter of 2015, or $10.9 million annually.

 

Non-interest Expense

Non-interest expenses totaled $48.4 million in the third quarter of 2015, compared with $38.6 million in the third quarter of 2014. Substantially all of the increase in operating expenses in the third quarter of 2015 over the third quarter of 2014 relates to additional expenses associated with recently acquired branches, as well as increased expenses in the Company’s non-interest lines of business. Line of business operating expenses increased $1.5 million during the current quarter as compared with the same quarter in 2014. Growth in line of business revenue more than eclipsed the growth in related operating expenses, contributing to a measurable increase in profitability.

 

Salaries and benefits increased to $24.9 million in the current quarter of 2015, compared with $22.5 million in the second quarter of 2015 and $20.2 million in the same quarter in 2014. Increases in compensation costs derive from the staffing additions resulting from the acquisition of Merchants and Southern Bank and 18 Bank of America branches in the second quarter of 2015.

 

Non-provision credit resolution-related costs decreased from $3.2 million in the third quarter of 2014 to $1.1 million in the third quarter of 2015. Occupancy and equipment costs increased from $4.7 million in the third quarter of 2014 to $5.9 million in the third quarter of 2015 due to the increased number of branches that are now operated by the Company. Data processing and telecommunications expenses increased from $3.9 million in the third quarter of 2014 to $5.3 million in the third quarter of 2015 for the same reason.

 

Balance Sheet Trends

Total assets at September 30, 2015 were $5.22 billion, compared with $4.04 billion reported at December 31, 2014. The growth in total assets was driven by the acquisitions of Merchants and Southern Bank and 18 additional retail branches during the second quarter of 2015.

 

Loans, including loans held for sale, totaled $3.77 billion at September 30, 2015, compared with $2.90 billion at December 31, 2014. During the third quarter, organic growth in loans amounted to $78.2 million, or 10.4% on an annualized basis. Purchased, non-covered loans (excluding loan pools) decreased $40.8 million during the quarter to $767.5 million, down from $808.3 million at June 30, 2015. Purchased, non-covered loan pools increased $141.1 million during the quarter, to $410.1 million, as the Company purchased additional whole-loan, adjustable rate mortgage pools to invest its excess cash. Covered loans continued to decline and ended the quarter at $191.0 million, a decrease of $18.6 million during the quarter.

 

Investment securities at the end of the quarter amounted to $820.7 million, or 19.1% of earning assets, compared with $552.1 million, or 15.5% of earning assets, at December 31, 2014.

 

At September 30, 2015, total deposits amounted to $4.53 billion, or 98.0% of total funding, compared with $3.43 billion and 95.8%, respectively, at December 31, 2014. Non-interest bearing deposits at the end of the current quarter were $1.28 billion, or 28.2% of total deposits, compared with $839.4 million, or 24.5%, at December 31, 2014.

 

Stockholders’ equity at September 30, 2015 totaled $502.3 million, compared with $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 and earnings of $26.7 million during the first nine months of 2015. Tangible book value increased during the first nine months of 2015, from $10.99 per share at December 31, 2014 to $12.31 per share at September 30, 2015.

 

 

Tangible common equity as a percentage of tangible assets increased to 7.76% at the end of the third quarter of 2015, compared with 7.42% at the end of 2014.

 

Conference Call

The Company will host a teleconference at 10:00 a.m. EDT today (October 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 November 7, 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 10074804. 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 103 locations in Georgia, Alabama, northern Florida and South Carolina, with ten of those locations announced to be consolidated within the coming months.  

 

 

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																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
EARNINGS
Net Income Available to Common Shareholders		$	15,627			$	1,308			$	9,764			$	10,580			$	11,663			$	26,699			$	27,857
PER COMMON SHARE DATA
Earnings per share available to common shareholders:
Basic		$	0.49			$	0.04			$	0.32			$	0.40			$	0.44			$	0.84			$	1.08
Diluted		$	0.48			$	0.04			$	0.32			$	0.39			$	0.43			$	0.84			$	1.07
Cash Dividends per share		$	0.05			$	0.05			$	0.05			$	0.05			$	0.05			$	0.15			$	0.10
Book value per share (period end)		$	15.60			$	15.12			$	15.22			$	13.67			$	13.22			$	15.60			$	13.22
Tangible book value per share (period end)		$	12.31			$	11.81			$	13.01			$	10.99			$	10.68			$	12.31			$	10.68
Weighted average number of shares:
Basic			32,195,435				32,184,355				30,442,998				26,771,636				26,773,033				31,614,015				25,705,313
Diluted			32,553,167				32,520,453				30,796,148				27,090,293				27,160,886				31,961,969				26,099,413
Period-end number of shares			32,196,117				32,195,089				32,182,143				26,773,863				26,774,402				32,196,117				26,774,402
Market data:
High closing price		$	28.75			$	26.87			$	26.55			$	26.48			$	24.04			$	28.75			$	24.04
Low closing price		$	24.97			$	24.73			$	22.75			$	21.95			$	21.00			$	22.75			$	19.73
Period end closing price		$	28.75			$	25.29			$	26.39			$	25.64			$	21.95			$	28.75			$	21.95
Average daily volume			174,900				107,413				105,152				111,473				79,377				129,678				87,019
PERFORMANCE RATIOS
Return on average assets			1.19	%			0.12	%			0.97	%			1.05	%			1.17	%			0.74	%			1.01	%
Return on average common equity			12.53	%			1.07	%			8.76	%			11.57	%			13.19	%			7.21	%			10.73	%
Earning asset yield (TE)			4.39	%			4.49	%			4.79	%			5.08	%			4.96	%			4.54	%			5.02	%
Total cost of funds			0.32	%			0.36	%			0.40	%			0.43	%			0.45	%			0.36	%			0.43	%
Net interest margin (TE)			4.07	%			4.14	%			4.39	%			4.64	%			4.50	%			4.18	%			4.57	%
Non-interest income excluding securities transactions, as a percent of total revenue (TE)			32.33	%			31.51	%			29.06	%			26.50	%			28.86	%			31.09	%			27.70	%
Efficiency ratio			66.87	%			92.74	%			72.38	%			72.75	%			67.64	%			76.85	%			70.25	%
CAPITAL ADEQUACY (period end)
Stockholders' equity to assets			9.63	%			9.35	%			11.79	%			9.07	%			8.85	%			9.63	%			8.85	%
Tangible common equity to tangible assets			7.76	%			7.46	%			10.26	%			7.42	%			7.27	%			7.76	%			7.27	%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets			7.76	%			7.46	%			10.26	%			7.42	%			7.27	%			7.76	%			7.27	%
Effect of goodwill and other intangibles			1.87	%			1.89	%			1.54	%			1.65	%			1.58	%			1.87	%			1.58	%
Equity to assets (GAAP)			9.63	%			9.35	%			11.79	%			9.07	%			8.85	%			9.63	%			8.85	%
OTHER PERIOD-END DATA
Banking Division FTE			1,110				1,122				852				853				867				1,110				867
Mortgage Division FTE			218				191				170				174				176				218				176
Total Ameris Bancorp FTE Headcount			1,328				1,313				1,022				1,027				1,043				1,328				1,043
Assets per Banking Division FTE		$	4,699			$	4,640			$	4,874			$	4,733			$	4,613			$	4,699			$	4,613
Branch locations			103				103				73				73				74				103				74
Deposits per branch location		$	43,986			$	43,801			$	47,674			$	47,002			$	45,583			$	43,986			$	45,583

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
INCOME STATEMENT
Interest income
Interest and fees on loans		$	45,775			$	39,838			$	38,618			$	41,235			$	39,610			$	124,231			$	109,376
Interest on taxable securities			4,694				3,747				3,153				3,114				3,034				11,594				8,972
Interest on nontaxable securities			480				462				469				483				496				1,411				1,143
Interest on deposits in other banks			227				177				124				66				46				528				170
Interest on federal funds sold			19				5				4				2				-				28				5
Total interest income			51,195				44,229				42,368				44,900				43,186				137,792				119,666
Interest expense
Interest on deposits		$	2,521			$	2,264			$	2,280			$	2,560			$	2,540			$	7,065			$	6,928
Interest on other borrowings			1,275				1,277				1,256				1,334				1,514				3,808				3,858
Total interest expense			3,796				3,541				3,536				3,894				4,054				10,873				10,786
Net interest income			47,399				40,688				38,832				41,006				39,132				126,919				108,880
Provision for loan losses			986				2,656				1,069				888				1,669				4,711				4,760
Net interest income after provision for loan losses		$	46,413			$	38,032			$	37,763			$	40,118			$	37,463			$	122,208			$	104,120
Noninterest income
Service charges on deposit accounts		$	10,766			$	7,151			$	6,429			$	6,522			$	6,659			$	24,346			$	18,092
Mortgage banking activity			10,404				9,727				8,083				6,476				7,498				28,214				19,510
Other service charges, commissions and fees			1,145				829				668				643				690				2,642				2,004
Gain(loss) on sale of securities			115				10				12				-				132				137				138
Other non-interest income			2,548				2,909				2,383				2,721				2,922				7,840				6,730
Total noninterest income			24,978				20,626				17,575				16,362				17,901				63,179				46,474
Noninterest expense
Salaries and employee benefits			24,934				22,465				20,632				19,316				20,226				68,031				54,562
Occupancy and equipment expenses			5,915				4,809				4,554				4,717				4,669				15,278				12,804
Data processing and telecommunications expenses			5,329				4,214				4,260				4,229				3,928				13,803				11,322
Credit resolution related expenses (1)			1,083				11,240				3,161				5,290				3,186				15,484				8,216
Advertising and marketing expenses			667				833				641				847				594				2,141				2,022
Amortization of intangible assets			1,321				630				630				662				698				2,581				1,668
Merger and conversion charges			446				5,712				15				67				551				6,173				3,873
Other non-interest expenses			8,701				6,961				6,934				6,605				4,727				22,596				14,669
Total noninterest expense			48,396				56,864				40,827				41,733				38,579				146,087				109,136
Income before income taxes		$	22,995			$	1,794			$	14,511			$	14,747			$	16,785			$	39,300			$	41,458
Income tax expense			7,368				486				4,747				4,167				5,122				12,601				13,315
Net income		$	15,627			$	1,308			$	9,764			$	10,580			$	11,663			$	26,699			$	28,143
Preferred stock dividends			-				-				-				-				-				-				286
Net income available to common shareholders		$	15,627			$	1,308			$	9,764			$	10,580			$	11,663			$	26,699			$	27,857
Diluted earnings available to common shareholders			0.48				0.04				0.32				0.39				0.43				0.84				1.07

 

(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.
		2015				2015				2015				2014				2014
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks		$	114,396			$	115,413			$	80,142			$	78,036			$	69,421
Federal funds sold and interest bearing balances			120,925				239,804				126,157				92,323				40,165
Investment securities available for sale, at fair value			811,385				862,154				610,330				541,805				529,509
Other investments			9,322				9,322				8,636				10,275				12,687
Mortgage loans held for sale			111,807				108,829				73,796				94,759				110,059
Loans, net of unearned income			2,290,649				2,171,600				1,999,420				1,889,881				1,848,759
Purchased, non-covered loans (excluding loan pools)			767,494				808,313				643,092				674,239				673,724
Purchased, non-covered loan pools			410,072				268,984				-				-				-
Covered loans			191,021				209,598				245,745				271,279				313,589
Less allowance for loan losses			(22,471	)			(21,658	)			(21,852	)			(21,157	)			(22,212	)
Loans, net			3,636,765				3,436,837				2,866,405				2,814,242				2,813,860
Other real estate owned			20,730				22,567				32,339				33,160				35,320
Purchased, non-covered other real estate owned			11,538				13,112				13,818				15,585				13,660
Covered other real estate owned			12,203				12,626				16,089				19,907				28,883
Total other real estate owned			44,471				48,305				62,246				68,652				77,863
Premises and equipment, net			124,756				124,916				98,292				97,251				98,752
Goodwill			87,701				87,367				63,547				63,547				58,879
Other intangibles, net			18,218				19,189				7,591				8,221				9,114
FDIC loss sharing receivable			4,506				14,957				23,312				31,351				38,233
Cash value of bank owned life insurance			59,894				59,552				59,212				58,867				58,217
Other assets			72,154				79,089				73,238				77,748				82,649
Total assets		$	5,216,300			$	5,205,734			$	4,152,904			$	4,037,077			$	3,999,408
Liabilities
Deposits:
Noninterest-bearing		$	1,275,800			$	1,280,174			$	967,015			$	839,377			$	816,517
Interest-bearing			3,254,723				3,231,373				2,513,216				2,591,772				2,556,602
Total deposits			4,530,523				4,511,547				3,480,231				3,431,149				3,373,119
Federal funds purchased & securities sold under agreements to repurchase			51,506				75,066				55,520				73,310				32,351
Other borrowings			39,000				39,000				43,851				78,881				147,409
Other liabilities			23,371				24,026				17,952				22,384				27,615
Subordinated deferrable interest debentures			69,600				69,325				65,567				65,325				65,084
Total liabilities			4,714,000				4,718,964				3,663,121				3,671,049				3,645,578
Stockholders' equity
Preferred stock		$	-			$	-			$	-			$	-			$	-
Common stock			33,610				33,609				33,593				28,159				28,158
Capital surplus			336,599				336,212				335,578				225,015				224,142
Retained earnings			140,282				126,265				126,566				118,412				109,170
Accumulated other comprehensive income/(loss)			4,197				3,072				6,353				6,098				3,974
Less treasury stock			(12,388	)			(12,388	)			(12,307	)			(11,656	)			(11,614	)
Total stockholders' equity			502,300				486,770				489,783				366,028				353,830
Total liabilities and stockholders' equity		$	5,216,300			$	5,205,734			$	4,152,904			$	4,037,077			$	3,999,408
Other Data
Earning Assets			4,703,353				4,669,282				3,698,540				3,564,286				3,515,805
Intangible Assets			105,919				106,556				71,138				71,768				67,993
Interest Bearing Liabilities			3,414,829				3,414,764				2,678,154				2,809,288				2,801,446
Average Assets			5,213,275				4,464,558				4,079,750				4,011,128				3,969,893
Average Common Stockholders' Equity			494,957				491,967				452,132				362,659				350,733

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
ASSET QUALITY INFORMATION (1)
Allowance for loan losses
Balance at beginning of period		$	21,658			$	21,852			$	21,157			$	22,212			$	22,254			$	21,157			$	22,377
Provision for loan loss (2)			1,050				1,800				1,100				650				1,573				3,950				4,071
Charge-offs			719				2,452				855				2,071				1,975				4,026				5,554
Recoveries			482				458				450				366				360				1,390				1,318
Net charge-offs (recoveries)			237				1,994				405				1,705				1,615				2,636				4,236
Ending balance		$	22,471			$	21,658			$	21,852			$	21,157			$	22,212			$	22,471			$	22,212
As a percentage of loans			0.98	%			1.00	%			1.09	%			1.12	%			1.20	%			0.98	%			1.20	%
As a percentage of nonperforming loans			109.31	%			104.43	%			104.85	%			97.37	%			97.38	%			109.31	%			97.38	%
Net charge-off information
Charge-offs
Commercial, financial & agricultural		$	135			$	410			$	392			$	468			$	191			$	937			$	1,099
Real estate - residential			234				464				268				368				406				966				1,339
Real estate - commercial & farmland			184				1,162				12				1,033				953				1,358				2,255
Real estate - construction & development			105				263				97				74				296				465				518
Consumer installment			61				153				86				128				129				300				343
Total charge-offs			719				2,452				855				2,071				1,975				4,026				5,554
Recoveries
Commercial, financial & agricultural			117				115				285				91				47				517				230
Real estate - residential			54				27				57				71				52				138				183
Real estate - commercial & farmland			272				17				15				91				31				304				183
Real estate - construction & development			6				277				31				49				96				314				300
Consumer installment			33				22				62				64				134				117				422
Total recoveries			482				458				450				366				360				1,390				1,318
Net charge-offs (recoveries)		$	237			$	1,994			$	405			$	1,705			$	1,615			$	2,636			$	4,236
Non-accrual loans (excluding purchased non-covered and covered loans)			20,558				20,740				20,841				21,728				22,810				20,558				22,810
Non-accrual purchased non-covered loans			11,374				17,444				17,308				18,249				17,007				11,374				17,007
Foreclosed assets (excluding purchased assets)			20,730				22,567				32,339				33,160				35,320				20,730				35,320
Purchased, non-covered other real estate owned			11,538				13,112				13,818				15,585				13,660				11,538				13,660
Accruing loans delinquent 90 days or more			-				-				-				1				-				-				-
Total non-performing assets, excluding covered assets			64,200				73,863				84,306				88,723				88,797				64,200				88,797
Non-performing assets as a percent of total assets			1.23	%			1.42	%			2.03	%			2.20	%			2.22	%			1.23	%			2.22	%
Net charge offs as a percent of loans (Annualized)			0.04	%			0.37	%			0.08	%			0.36	%			0.35	%			0.15	%			0.31	%

 

(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:
		Sept.				Jun.				Mar.				Dec.				Sept.
		2015				2015				2015				2014				2014
Loans by Type
Commercial, financial & agricultural		$	427,747			$	373,202			$	334,917			$	319,654			$	334,783
Real estate - construction & development			220,798				205,019				178,568				161,507				154,315
Real estate - commercial & farmland			1,067,828				1,010,195				947,274				907,524				882,160
Real estate - residential			532,285				537,201				496,043				456,106				436,515
Consumer installment			31,299				30,080				29,113				30,782				31,403
Other			10,692				15,903				13,505				14,308				9,583
Total Legacy (excluding purchased non-covered and covered)		$	2,290,649			$	2,171,600			$	1,999,420			$	1,889,881			$	1,848,759
Commercial, financial & agricultural		$	42,350			$	45,337			$	36,258			$	38,041			$	38,077
Real estate - construction & development			71,109				75,302				53,668				58,362				60,262
Real estate - commercial & farmland			385,032				404,588				291,760				306,706				296,790
Real estate - residential			263,312				276,798				257,216				266,342				273,347
Consumer installment			5,691				6,288				4,190				4,788				5,248
Total Purchased non-covered (net of discounts)		$	767,494			$	808,313			$	643,092			$	674,239			$	673,724
Commercial, financial & agricultural		$	-			$	-			$	-			$	-			$	-
Real estate - construction & development			-				-				-				-				-
Real estate - commercial & farmland			-				-				-				-				-
Real estate - residential			410,072				268,984				-				-				-
Consumer installment			-				-				-				-				-
Total Purchased non-covered loan pools		$	410,072			$	268,984			$	-			$	-			$	-
Commercial, financial & agricultural		$	13,349			$	17,666			$	20,905			$	21,467			$	22,545
Real estate - construction & development			14,266				15,002				19,519				23,447				27,756
Real estate - commercial & farmland			103,399				111,772				130,290				147,627				180,566
Real estate - residential			59,835				64,982				74,847				78,520				82,445
Consumer installment			172				176				184				218				277
Total Covered (net of discounts)		$	191,021			$	209,598			$	245,745			$	271,279			$	313,589
Total Loan Portfolio:
Commercial, financial & agricultural		$	483,446			$	436,205			$	392,080			$	379,162			$	395,405
Real estate - construction & development			306,173				295,323				251,755				243,316				242,333
Real estate - commercial & farmland			1,556,259				1,526,555				1,369,324				1,361,857				1,359,516
Real estate - residential			1,265,504				1,147,965				828,106				800,968				792,307
Consumer installment			37,162				36,544				33,487				35,788				36,928
Other			10,692				15,903				13,505				14,308				9,583
Total Loans		$	3,659,236			$	3,458,495			$	2,888,257			$	2,835,399			$	2,836,072
Troubled Debt Restructurings, excluding purchased non-covered and covered loans:
Accruing loan types:
Commercial, financial & agricultural		$	238			$	278			$	277			$	290			$	257
Real estate - construction & development			838				821				789				679				1,917
Real estate - commercial & farmland			5,719				6,617				7,309				6,477				7,080
Real estate - residential			5,209				4,702				4,513				5,258				7,973
Consumer installment			71				49				47				55				34
Total Accruing TDRs		$	12,075			$	12,467			$	12,935			$	12,759			$	17,261
Non-accruing loan types:
Commercial, financial & agricultural		$	68			$	29			$	17			$	13			$	507
Real estate - construction & development			30				57				90				228				196
Real estate - commercial & farmland			942				598				64				724				1,672
Real estate - residential			759				783				736				1,485				759
Consumer installment			64				82				90				73				93
Total Non-accrual TDRs		$	1,863			$	1,549			$	997			$	2,523			$	3,227
Total Troubled Debt Restructurings		$	13,938			$	14,016			$	13,932			$	15,282			$	20,488
The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:
Grade 10 - Prime credit		$	231,281			$	181,933			$	157,462			$	128,577			$	121,486
Grade 15 - Good credit			234,185				243,070				205,929				217,804				222,714
Grade 20 - Satisfactory credit			1,148,024				1,104,747				1,012,733				947,948				908,054
Grade 23 - Performing, under-collateralized credit			26,477				27,400				28,643				29,205				28,826
Grade 25 - Minimum acceptable credit			579,642				544,664				513,009				488,187				484,200
Grade 30 - Other asset especially mentioned			22,190				25,020				25,461				25,983				31,750
Grade 40 - Substandard			48,848				44,766				56,179				52,176				51,640
Grade 50 - Doubtful			2				-				4				1				88
Grade 60 - Loss			-				-				-				-				1
Total		$	2,290,649			$	2,171,600			$	1,999,420			$	1,889,881			$	1,848,759
The following table presents the purchased, non-covered loan portfolio by risk grade:
Grade 10 - Prime credit		$	9,801			$	10,123			$	7,444			$	7,394			$	3,965
Grade 15 - Good credit			50,906				53,220				23,640				29,727				35,461
Grade 20 - Satisfactory credit			348,034				362,304				206,480				208,686				180,702
Grade 23 - Performing, under-collateralized credit			10,612				10,537				10,024				6,578				1,216
Grade 25 - Minimum acceptable credit			290,272				300,411				337,386				361,155				399,729
Grade 30 - Other asset especially mentioned			26,458				34,779				22,323				25,747				20,048
Grade 40 - Substandard			31,381				36,887				35,743				34,889				32,565
Grade 50 - Doubtful			30				52				52				63				38
Grade 60 - Loss			-				-				-				-				-
Total		$	767,494			$	808,313			$	643,092			$	674,239			$	673,724

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
AVERAGE BALANCES
Federal funds sold		$	5,500			$	5,500			$	5,500			$	3,163			$	500			$	5,500			$	2,793
Interest bearing deposits in banks			199,057				201,765				158,286				69,772				63,355				188,110				71,185
Investment securities - taxable			772,252				600,176				485,922				461,800				451,563				620,500				427,252
Investment securities - nontaxable			72,549				70,653				71,229				72,072				74,176				71,481				58,384
Other investments			9,322				9,597				9,450				9,804				8,209				9,456				8,100
Mortgage loans held for sale			102,961				81,823				75,831				97,406				83,751				86,387				62,506
Loans			2,193,364				2,111,507				1,911,601				1,871,618				1,795,059				2,062,648				1,697,559
Purchased non-covered loans			788,351				654,397				650,331				659,472				688,452				702,117				538,802
Purchased non-covered loan pools			323,258				17,308				-				-				-				116,363				-
Covered loans			226,301				246,422				262,693				299,981				324,498				250,979				352,707
Total Earning Assets		$	4,692,915			$	3,999,148				3,630,843				3,545,088				3,489,563			$	4,113,541			$	3,219,288
Noninterest bearing deposits		$	1,300,870			$	1,088,249			$	897,937			$	850,879			$	807,416			$	1,097,750			$	718,505
NOW accounts			907,618				745,709				756,795				786,511				743,352				802,800				703,551
MMDA			1,219,736				981,143				857,346				840,397				861,197				1,027,932				793,875
Savings accounts			239,999				188,767				163,624				156,663				155,559				198,379				148,111
Retail CDs < $100,000			484,007				388,248				372,463				386,844				439,150				417,638				389,959
Retail CDs > $100,000			387,485				378,137				383,962				401,934				370,166				380,980				364,274
Brokered CDs			-				-				-				4,023				5,970				-				5,970
Total Deposits			4,539,715				3,770,253				3,432,127				3,427,251				3,382,810				3,925,479				3,124,245
FHLB advances			-				17,275				16,778				35,815				55,435				11,289				50,751
Other borrowings			39,000				41,930				43,871				46,508				47,346				41,582				37,607
Subordinated debentures			69,448				67,180				65,436				65,195				64,953				67,369				58,647
Federal funds purchased and securities sold under agreements to repurchase			44,480				58,722				52,707				47,247				44,316				47,282				47,099
Total Non-Deposit Funding			152,928				185,107				178,792				194,765				212,050				167,522				194,104
Total Funding		$	4,692,643			$	3,955,360			$	3,610,919			$	3,622,016			$	3,594,860			$	4,093,001			$	3,318,349

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold		$	19			$	5			$	4			$	2			$	-			$	28			$	5
Interest bearing deposits in banks			227				177				124				66				47				528				171
Investment securities - taxable			4,694				3,747				3,153				3,114				3,034				11,594				8,972
Investment securities - nontaxable (TE)			648				624				633				652				670				1,905				1,543
Mortgage loans held for sale			970				764				692				947				787				2,426				1,646
Loans (TE)			27,258				25,629				22,418				23,294				21,790				75,305				64,433
Purchased non-covered loans			11,911				10,328				11,840				12,612				12,610				34,079				27,408
Purchased non-covered loan pools			2,997				149				-				-				-				3,146				-
Covered loans			3,192				3,385				3,995				4,704				4,726				10,572				16,651
Total Earning Assets		$	51,916			$	44,808			$	42,859			$	45,391			$	43,663			$	139,583			$	120,829
Accretion Income (included above)			3,037				2,635				3,097				4,280				2,964				8,769				8,263
INTEREST EXPENSE
Non-interest bearing deposits		$	-			$	-			$	-			$	-			$	-			$	-			$	-
NOW accounts			304				318				376				414				324				998				903
MMDA			877				760				663				768				783				2,300				2,186
Savings accounts			42				37				37				45				42				116				119
Retail CDs < $100,000			607				488				513				553				596				1,608				1,563
Retail CDs > $100,000			691				662				691				746				749				2,044				2,015
Brokered CDs			-				-				-				34				47				-				143
Total Deposits			2,521				2,265				2,280				2,560				2,541				7,066				6,929
FHLB advances			-				16				15				26				51				31				114
Other borrowings			322				346				366				379				558				1,034				1,381
Subordinated debentures			914				866				832				887				866				2,612				2,240
Federal funds purchased and securities sold under agreements to repurchase			39				48				43				41				39				130				123
Total Non-Deposit Funding			1,275				1,276				1,256				1,333				1,514				3,807				3,858
Total Funding		$	3,796			$	3,541			$	3,536			$	3,893			$	4,055			$	10,873			$	10,787
Net Interest Income (TE)		$	48,120			$	41,267			$	39,323			$	41,498			$	39,608			$	128,710			$	110,042

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
YIELDS (1)
Federal funds sold			1.37	%			0.36	%			0.29	%			0.25	%			0.00	%			0.68	%			0.24	%
Interest bearing deposits in banks			0.45	%			0.35	%			0.32	%			0.38	%			0.29	%			0.38	%			0.32	%
Investment securities - taxable			2.41	%			2.50	%			2.63	%			2.68	%			2.67	%			2.50	%			2.81	%
Investment securities - nontaxable			3.54	%			3.54	%			3.60	%			3.59	%			3.58	%			3.56	%			3.53	%
Mortgage loans held for sale			3.74	%			3.75	%			3.70	%			3.86	%			3.73	%			3.75	%			3.52	%
Loans			4.93	%			4.87	%			4.76	%			4.94	%			4.82	%			4.88	%			5.07	%
Purchased non-covered loans			5.99	%			6.33	%			7.38	%			7.59	%			7.27	%			6.49	%			6.80	%
Purchased non-covered loan pools			3.68	%			3.45	%			0.00	%			0.00	%			0.00	%			3.61	%			0.00	%
Covered loans			5.60	%			5.51	%			6.17	%			6.22	%			5.78	%			5.63	%			6.31	%
Total Earning Assets			4.39	%			4.49	%			4.79	%			5.08	%			4.96	%			4.54	%			5.02	%
Noninterest bearing deposits			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
NOW accounts			0.13	%			0.17	%			0.20	%			0.21	%			0.17	%			0.17	%			0.17	%
MMDA			0.29	%			0.31	%			0.31	%			0.36	%			0.36	%			0.30	%			0.37	%
Savings accounts			0.07	%			0.08	%			0.09	%			0.11	%			0.11	%			0.08	%			0.11	%
Retail CDs < $100,000			0.50	%			0.50	%			0.56	%			0.57	%			0.54	%			0.51	%			0.54	%
Retail CDs > $100,000			0.71	%			0.70	%			0.73	%			0.74	%			0.80	%			0.72	%			0.74	%
Brokered CDs			0.00	%			0.00	%			0.00	%			3.35	%			3.12	%			0.00	%			3.20	%
Total Deposits			0.22	%			0.24	%			0.27	%			0.30	%			0.30	%			0.24	%			0.30	%
FHLB advances			0.00	%			0.37	%			0.36	%			0.29	%			0.36	%			0.37	%			0.30	%
Other borrowings			3.28	%			3.31	%			3.38	%			3.23	%			4.68	%			3.32	%			4.91	%
Subordinated debentures			5.22	%			5.17	%			5.16	%			5.40	%			5.29	%			5.18	%			5.11	%
Federal funds purchased and securities sold under agreements to repurchase			0.35	%			0.33	%			0.33	%			0.34	%			0.35	%			0.37	%			0.35	%
Total Non-Deposit Funding			3.31	%			2.76	%			2.85	%			2.72	%			2.83	%			3.04	%			2.66	%
Total funding (3)			0.32	%			0.36	%			0.40	%			0.43	%			0.45	%			0.36	%			0.43	%
Net interest spread			4.07	%			4.13	%			4.39	%			4.65	%			4.52	%			4.18	%			4.58	%
Net interest margin			4.07	%			4.14	%			4.39	%			4.64	%			4.50	%			4.18	%			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																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
Operating Net Income Reconciliation
Net income available to common shareholders		$	15,627			$	1,308			$	9,764			$	10,580			$	11,663			$	26,699			$	27,857
Merger and conversion charges			446				5,712				15				67				551				6,173				3,873
Non-recurring credit resolution related expenses			-				11,241				-				-				-				11,241				-
Tax effect of non-recurring charges			(156	)			(5,934	)			(5	)			(23	)			(193	)			(6,095	)			(1,356	)
Plus: After tax non-recurring charges			290				11,019				10				44				358				11,319				2,517
Operating Net income			15,917				12,327				9,774				10,624				12,021				38,018				30,374
Operating net income per diluted share:		$	0.49			$	0.38			$	0.32			$	0.39			$	0.44			$	1.19			$	1.16
Return on average assets			1.21	%			1.11	%			0.97	%			1.05	%			1.20	%			1.05	%			1.16	%
Return on average common tangible equity			16.23	%			12.83	%			10.40	%			14.49	%			16.87	%			12.74	%			16.25	%

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
Net Interest Margin and Yields on Total Loans Excluding Accretion Reconciliation
Total Interest Income (TE)		$	51,916			$	44,808			$	42,859			$	45,391			$	43,663			$	139,583			$	120,829
Accretion Income			3,037				2,635				3,097				4,280				2,964				8,769				8,263
Total Interest Income (TE) Excluding Accretion		$	48,879			$	42,173			$	39,762			$	41,111			$	40,699			$	130,814			$	112,566
Total Interest Expense		$	3,796			$	3,541			$	3,536			$	3,893			$	4,055			$	10,873			$	10,787
Net Interest Income (TE) Excluding Accretion		$	45,083			$	38,632			$	36,226			$	37,218			$	36,644			$	119,941			$	101,779
Yield on Total Loans Excluding Accretion			4.83	%			4.86	%			5.01	%			5.05	%			5.07	%			4.90	%			5.14	%
Net Interest Margin Excluding Accretion			3.81	%			3.87	%			4.05	%			4.17	%			4.17	%			3.90	%			4.23	%

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
Core Earnings Reconciliation		2015				2015				2015				2014				2014				2015				2014
Pre-tax operating profit/(loss)		$	22,995			$	1,794			$	14,511			$	14,747			$	16,785			$	39,300			$	41,458
Plus: Credit Related Costs
Provision for loan losses			986				2,656				1,069				888				1,669				4,711				4,760
(Gains)/Losses on the sale of legacy OREO			36				436				110				(228	)			(3	)			582				228
(Gains)/Losses on the sale of covered OREO			56				194				20				344				(184	)			270				183
Problem loan and OREO expense			991				10,632				3,031				5,175				3,373				14,654				7,809
Interest reversed (received) on non-accrual loans			17				413				156				(6	)			94				586				411
Total Credit-Related Costs			2,086				14,331				4,386				6,173				4,949				20,803				13,391
Plus: Cconversion charges			446				5,712				15				67				551				6,173				3,873
Less: Non-recurring gains
Gains on sales of securities			(115	)			(10	)			(12	)			-				(132	)			(137	)			(138	)
Gains on sales of bank premises			-				-				-				-				(616	)			-				(616	)
Other non-recurring adjustments			-				-				-				188				-				-				(870	)
Pretax, Pre-provision earnings		$	25,412			$	21,827			$	18,900			$	21,175			$	21,537			$	66,139			$	57,098
As percentage of average assets, annualized			1.93	%			1.96	%			1.88	%			2.09	%			2.15	%			1.70	%			1.92	%

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
Recurring Operating Expenses		2015				2015				2015				2014				2014				2015				2014
Total Operating Expenses			48,396				56,864				40,827				41,733				38,579				146,087				109,136
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO			(36	)			(436	)			(110	)			228				3				(582	)			(225	)
Gains/(Losses) on the sale of covered OREO			(56	)			(194	)			(20	)			(344	)			184				(270	)			(183	)
Problem loan and OREO expense			(991	)			(10,632	)			(3,031	)			(5,175	)			(3,373	)			(14,654	)			(7,809	)
Severance payments			-				-				-				(188	)			-				-				-
Conversion expenses			(446	)			(5,712	)			(15	)			(67	)			(551	)			(6,173	)			(3,873	)
Gains/(Losses) on the sale of premises			-				-				-				-				616				-				616
Recurring operating expenses		$	46,867			$	39,890			$	37,651			$	36,187			$	35,458			$	124,408			$	97,662

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

 

		Three Months Ended																				Nine Months Ended
		Sept.				Jun.				Mar.				Dec.				Sept.				Sept.				Sept.
		2015				2015				2015				2014				2014				2015				2014
Segment Reporting
Banking Division:
Net interest income		$	43,044			$	36,806			$	35,839			$	38,045			$	36,142			$	115,689			$	102,415
Provision for loan losses			960				2,456				927				737				994				4,343				4,085
Noninterest income			13,470				9,262				8,780				8,595				8,932				31,512				23,742
Noninterest expense:
Salaries and employee benefits			17,921				15,675				15,362				14,196				14,819				48,958				40,905
Occupancy			5,444				4,376				4,144				4,319				4,277				13,964				11,778
Data Processing			4,998				3,913				4,011				3,901				3,619				12,922				10,535
Other expenses			11,379				24,048				10,356				12,320				8,722				45,783				26,855
Total noninterest expense			39,742				48,012				33,873				34,736				31,437				121,627				90,073
Income before income taxes			15,812				(4,400	)			9,819				11,167				12,643				21,231				31,999
Income Tax			4,854				(1,682	)			3,105				2,914				3,672				6,277				10,004
Net income			10,958				(2,718	)			6,714				8,253				8,971				14,954				21,995
Preferred stock dividends			-				-				-				-				-				-				286
Net income available to common shareholders		$	10,958			$	(2,718	)		$	6,714			$	8,253			$	8,971			$	14,954			$	21,709
Retail Mortgage Division:
Net interest income		$	2,485			$	1,979			$	1,545			$	1,822			$	1,636			$	6,009			$	3,522
Provision for loan losses			26				200				142				151				675				368				675
Noninterest income			9,827				9,095				7,610				6,076				6,967				26,532				18,883
Noninterest expense:
Salaries and employee benefits			6,138				5,592				4,527				4,175				4,340				16,257				11,743
Occupancy			397				396				380				373				368				1,173				969
Data Processing			308				279				212				315				285				799				728
Other expenses			662				1,150				932				828				735				2,744				2,764
Total noninterest expense			7,505				7,417				6,051				5,691				5,728				20,973				16,204
Income before income taxes			4,781				3,457				2,962				2,056				2,200				11,200				5,526
Income Tax			1,673				1,210				1,037				720				770				3,920				1,934
Net income			3,108				2,247				1,925				1,336				1,430				7,280				3,592
Preferred stock dividends			-				-				-				-				-				-				-
Net income available to common shareholders		$	3,108			$	2,247			$	1,925			$	1,336			$	1,430			$	7,280			$	3,592
Warehouse Lending:
Net interest income		$	1,128			$	1,179			$	835			$	752			$	711			$	3,142			$	1,264
Provision for loan losses			-				-				-				-				-				-				-
Noninterest income			372				383				273				237				168				1,028				418
Noninterest expense:
Salaries and employee benefits			137				99				127				84				69				363				171
Occupancy			1				1				2				-				-				4				1
Data Processing			22				20				33				11				21				75				43
Other expenses			40				19				36				171				134				95				232
Total noninterest expense			200				139				198				266				224				537				447
Income before income taxes			1,300				1,423				910				723				655				3,633				1,235
Income Tax			455				498				319				253				229				1,272				432
Net income			845				925				592				470				426				2,361				803
Preferred stock dividends			-				-				-				-				-				-				-
Net income available to common shareholders		$	845			$	925			$	592			$	470			$	426			$	2,361			$	803
SBA Division:
Net interest income		$	742			$	724			$	613			$	387			$	643			$	2,079			$	1,679
Provision for loan losses			-				-				-				-				-				-				-
Noninterest income			1,309				1,886				912				1,454				1,834				4,107				3,431
Noninterest expense:
Salaries and employee benefits			738				1,099				616				861				998				2,453				1,743
Occupancy			73				36				28				25				24				137				56
Data Processing			1				2				4				2				3				7				16
Other expenses			137				159				57				152				165				353				597
Total noninterest expense			949				1,296				705				1,040				1,190				2,950				2,412
Income before income taxes			1,102				1,314				820				801				1,287				3,236				2,698
Income Tax			386				460				287				280				450				1,133				944
Net income			716				854				533				521				837				2,103				1,754
Preferred stock dividends			-				-				-				-				-				-				-
Net income available to common shareholders		$	716			$	854			$	533			$	521			$	837			$	2,103			$	1,754
Total Consolidated:
Net interest income		$	47,399			$	40,688			$	38,832			$	41,006			$	39,132			$	126,919			$	108,880
Provision for loan losses			986				2,656				1,069				888				1,669				4,711				4,760
Noninterest income			24,978				20,626				17,575				16,362				17,901				63,179				46,474
Noninterest expense:
Salaries and employee benefits			24,934				22,465				20,632				19,316				20,226				68,031				54,562
Occupancy			5,915				4,809				4,554				4,717				4,669				15,278				12,804
Data Processing			5,329				4,214				4,260				4,229				3,928				13,803				11,322
Other expenses			12,218				25,376				11,381				13,471				9,756				48,975				30,448
Total noninterest expense			48,396				56,864				40,827				41,733				38,579				146,087				109,136
Income before income taxes			22,995				1,794				14,511				14,747				16,785				39,300				41,458
Income Tax			7,368				486				4,747				4,167				5,122				12,601				13,315
Net income			15,627				1,308				9,764				10,580				11,663				26,699				28,143
Preferred stock dividends			-				-				-				-				-				-				286
Net income available to common shareholders		$	15,627			$	1,308			$	9,764			$	10,580			$	11,663			$	26,699			$	27,857