AMERIS BANCORP 
By MOULTRIE, Ga., April 22, 2014 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB), today reported net income available to common shareholders of $8.1 million, or $0.32 per diluted share, for the quarter ended March 31, 2014, compared to $4.8 million, or $0.20 per diluted share, for the quarter ended March 31, 2013. Commenting on the Company's improved profitability, Edwin W. Hortman, Jr., the Company's President and Chief Executive Officer, said, "Our first quarter results reflect a full quarter of the additional revenues we expected from the acquisition of The Prosperity Banking Company and Prosperity Bank during the fourth quarter of 2013. On the expense side, we completed the data processing conversion and should have a full run rate of expense savings in the coming quarter."
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Highlights of the results of the first quarter of 2014 include the following:
-- Net income available to common shareholders increased 66.5%, compared to
the same quarter in 2013.
-- The remaining TARP preferred stock investment was redeemed during the
quarter with no additional borrowings or issuances of common stock.
-- The Company's net interest margin was 4.57%, compared to 4.43% in the
fourth quarter of 2013.
-- Return on average assets and return on average tangible equity improved
to 0.96% and 13.30%, respectively compared to 0.75% and 8.61% for the
same quarter in 2013.
-- Credit costs (provision and problem loan and OREO expenses) declined to
$3.9 million, compared to $7.8 million in the first quarter of 2013 and
$6.8 million in the fourth quarter of 2013.
-- Legacy loans (excluding purchased non-covered and covered loans)
increased by $76.9 million during the quarter, an annualized growth rate
of 19.3%.
-- Tangible common equity to tangible assets increased significantly to
7.53% at March 31, 2014, compared to 6.83% at December 31, 2013.
-- Total legacy classified loans (excluding purchased non-covered and
covered loans) decreased 8.1%, compared to December 31, 2013.
-- Noninterest income was $12.8 million, compared to $11.4 million in the
first quarter of 2013 and $11.5 million in the fourth quarter of 2013.
-- Net income from the Company's mortgage operation improved during the
first quarter of 2014, totaling $947,000, compared to $38,000 in the
fourth quarter of 2013.
Operating Results
Net income available to common shareholders for the first quarter of 2014 totaled $8.1 million, compared to $4.8 million for the same quarter in 2013. Revenue during the first quarter totaled $47.2 million, an increase of 19.0% compared to the first quarter of 2013. Increases in revenue resulted from the addition of The Prosperity Banking Company, as well as modest increases from growth in legacy portfolio loans with minimal decreases in yields. The Company's return on assets improved from 0.75% in the first quarter of 2013 to 0.96% in the first quarter of 2014. Return on tangible common equity increased to 13.30% in the current quarter, from 8.61% in the first quarter of 2013, due to additional earnings and capital utilization.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2014 totaled $34.5 million, an increase of $6.1 million, or 21.7%, compared to $28.3 million reported for the first quarter of 2013. The Company's net interest margin increased during the first quarter of 2014 to 4.57% compared to 4.43% in the fourth quarter of 2013. The higher net interest margin resulted from several factors, including steady yields on the Company's loan portfolios and lower levels of excess liquidity than those reported during the fourth quarter of 2013.
Yields on legacy loans declined only slightly from 5.15% in the fourth quarter of 2013 to 5.11% in the first quarter of 2014. Yields declined by a larger margin compared to the same quarter in 2013 when the Company reported legacy loan yields of 5.58%. The Company has expected a slower pace of compression on loan yields as loan production on new and renewed loans has been steady for several quarters at levels much closer to the overall portfolio yield than in the past.
The Company's cost of deposits decreased during the first quarter of 2014 to 0.30%, compared to 0.32% in the fourth quarter of 2013 and 0.36% in the first quarter of 2013. Continued shifts in the funding mix toward non-interest bearing demand and other lower cost deposit categories was the primary reason for the decline. A sales focus on business deposit accounts continues to result in favorable growth in non-interest bearing demand deposits, which increased to $698.9 million at the end of the first quarter of 2014, an annualized growth rate of 18.4%, when compared to balances at December 31, 2013. Compared to the same period in 2013, non-interest bearing demand deposits have increased $207.9 million, or 42.3%.
Non-interest Income
Recurring levels of non-interest income in the first quarter of 2014 improved to $12.8 million, compared to $11.4 million in the same quarter of 2013 and $11.5 million in the fourth quarter of 2013. As a percentage of total assets, recurring non-interest income has decreased from 1.61% at March 31, 2013 to 1.48% at the end of the current quarter. The majority of the decline in non-interest income contribution as a percentage of total assets relates to Prosperity's income statement which was more heavily centered on traditional spread income. The Company believes the new markets are attractive opportunities for its existing strategies and believes non-interest income levels will grow in the coming quarters commensurate with the rest of the Company's markets.
Much of the non-interest income growth has related to the Company's mortgage strategy, although fees and service charges on deposit accounts have remained at strong levels. Mortgage revenue increased compared to the same quarter of 2013, as loan pipelines and closings improved from the lower levels the Company reported in the fourth quarter of 2013. At the end of the first quarter of 2014, the Company's open pipeline of mortgage loans totaled $75.2 million, compared to $40.5 million at the end of 2013. Growth in the pipeline and growth in closings are the result of excellent relationships the Company has developed with certain realtors and builders. The Company is still selectively searching for strong, seasoned producers to add to the team but believes additional improvement in volumes will result from its builder and realtor contacts going forward.
Non-interest Expense
Total operating expenses for the first quarter of 2014 were $33.2 million, compared to $28.9 million for the same quarter of 2013. Increases in operating expenses were primarily the result of the recently closed Prosperity Bank acquisition, which added approximately $4.8 million in quarterly expenses. Additional expenses related to increases in mortgage volume totaled $1.1 million in the first quarter of 2014 compared to the same quarter in 2013. Offsetting these increases in operating expenses were declines in credit-related expenses of $2.7 million from the same quarter in 2013.
On a comparative basis, the Company recorded $30.6 million of core non-interest expense in the first quarter, (excluding credit and merger related expenses), an increase of $2.6 million compared to core non-interest expense in the fourth quarter of 2013, (excluding credit related expenses and $4.3 million of merger related expenses).
The Company completed the data conversion for the Prosperity Bank acquisition during the first quarter of 2014, which resulted in approximately $450,000 of conversion related expenses that will be non-recurring in future quarters. These costs were principally related to compensation, professional fees and travel expenses.
Credit Expenses and Asset Quality
Total classified legacy assets declined during the quarter to $87.3 million at March 31, 2014, compared to $106.8 million for the same quarter in 2013. As a percentage of capital, classified assets improved to 29.1% at the end of the current quarter, compared to 37.7% at March 31, 2013.
During the quarter, the Company downgraded certain assets acquired with the acquisition of Prosperity Bank to non-accrual in an effort to force borrower actions on assets that were well collateralized. The assets in question were identified by the Company in its due diligence as assets that would require more aggressive collection efforts and were marked accordingly. The Company does not anticipate losses from these downgraded assets and believes resolution will come relatively quickly given the operating status of the borrowers and underlying collateral values. Loan to value on the three largest relationships is approximately 53% in the aggregate.
Credit costs continued to improve as expected. During the quarter, credit expenses (provision and credit-related operating expenses) fell to $3.9 million, or 0.94% annualized, of non-covered loans, compared to $7.8 million, or 2.11% annualized, of non-covered loans in the same quarter in 2013. Higher levels of real estate activity and better prices were the primary factors for the improvement.
Balance Sheet Trends
Total assets at March 31, 2014 were $3.49 billion, a 4.9% decrease compared to the $3.67 billion reported at December 31, 2013. Earning assets declined $153.5 million to $3.06 billion at March 31, 2014. Short-term assets declined as a percentage of earning assets to 3.9%, compared to 8.3% at December 31, 2013 and 5.5% at March 31, 2013. Declines in earning assets were primarily related to excess liquidity at year end resulting from certain larger municipal and corporate deposits.
Total legacy loans (excluding purchased non-covered and covered loans) increased $76.9 million during the first quarter of 2014 at an annualized rate of 19.3%, to end at $1.70 billion at March 31, 2014. During the first quarter, purchased non-covered loans decreased by $11.5 million to $437.3 million, down from $448.8 million reported at December 31, 2013. Covered loans decreased by $17.5 million to $372.7 million at March 31, 2014, from $390.2 million at December 31, 2013. Increases in legacy loans were centered mostly in commercial real estate, municipal and residential loan types, while the declines in covered loans were centered mostly in classified assets resulting from normal workout efforts as the Company approaches the maturity of its first loss-share agreements.
Total deposits increased $11.4 million to $3.01 billion during the first quarter of 2014, compared to $3.00 billion at December 31, 2013. Non-interest bearing deposits grew to 23.2% of total deposits at March 31, 2014, compared to 19.7% at the same time in 2013.
During the first quarter of 2014, the Company redeemed the remaining $28 million in shares of the preferred stock originally issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP) in November 2008. The redemption of preferred stock was completed with no additional borrowings or issuances of common stock.
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 68 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.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
EARNINGS
Net Income
Available to
Common
Shareholders $8,064 $966 $6,234 $6,236 $4,844
PER COMMON SHARE DATA
Earnings per
share
available to
common
shareholders:
Basic $0.32 $0.04 $0.26 $0.26 $0.20
Diluted $0.32 $0.04 $0.26 $0.26 $0.20
Cash Dividends
per share $ - $ - $ - $ - $ -
Stock dividend - - - - -
Book value per
share (period
end) $11.93 $11.50 $10.98 $10.88 $10.72
Tangible book
value per
share (period
end) $10.31 $9.87 $10.85 $10.74 $10.57
Weighted
average number
of shares:
Basic 25,144,342 24,021,447 23,900,665 23,878,898 23,867,691
Diluted 25,573,320 24,450,619 24,315,821 24,287,628 24,246,346
Period-end
number of
shares 25,159,073 25,098,427 23,907,509 23,894,327 23,875,680
Market data:
High closing price $24.00 $21.42 $19.79 $16.94 $14.51
Low closing price $19.86 $17.69 $17.35 $13.16 $12.79
Period end closing price $23.30 $21.11 $18.38 $16.85 $14.35
Average daily volume 103,279 94,636 75,545 53,403 51,887
PERFORMANCE RATIOS
Return on
average assets 0.96% 0.19% 0.94% 0.95% 0.75%
Return on
average common
equity 11.66% 2.20% 10.75% 10.66% 8.53%
Earning asset
yield (TE) 5.01% 4.84% 5.20% 5.38% 5.23%
Total cost of
funds 0.43% 0.40% 0.39% 0.40% 0.40%
Net interest
margin (TE) 4.57% 4.43% 4.80% 4.96% 4.81%
Non-interest
income
excluding
securities
transactions,
as a percent of total
revenue (TE) (1) 25.02% 26.45% 27.76% 26.16% 26.44%
Efficiency
ratio 70.36% 92.74% 69.09% 65.32% 72.76%
CAPITAL ADEQUACY (period end)
Stockholders'
equity to
assets 8.60% 8.63% 10.30% 10.25% 9.91%
Tangible common
equity to
tangible
assets 7.53% 6.83% 9.22% 9.15% 8.83%
EQUITY TO ASSETS RECONCILIATION
Tangible common
equity to
tangible
assets 7.53% 6.83% 9.22% 9.15% 8.83%
Effect of
preferred
equity 0.00% 0.76% 0.99% 0.99% 0.97%
Effect of
goodwill and
other
intangibles 1.07% 1.04% 0.09% 0.11% 0.12%
Equity to assets (GAAP) 8.60% 8.63% 10.30% 10.25% 9.91%
==== ==== ===== ===== ====
OTHER PERIOD-END DATA
Banking
Division FTE 785 820 678 683 693
Mortgage
Division FTE 161 164 158 155 127
-------------
Total Ameris Bancorp FTE
Headcount 946 984 836 838 820
--- --- --- --- ---
Assets per
Banking
Division FTE $4,443 $4,473 $4,157 $4,112 $4,129
Branch
locations 68 68 57 57 57
Deposits per
branch
location $44,274 $44,106 $42,867 $42,861 $43,684
(1)Includes
gain from
acquisition.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
INCOME STATEMENT
Interest income
Interest and fees
on loans $34,469 $29,289 $29,633 $29,859 $28,716
Interest on
taxable
securities 2,985 1,998 1,720 1,719 1,697
Interest on
nontaxable
securities 335 342 352 344 375
Interest on
deposits in other
banks 79 118 44 29 85
Interest on
federal funds
sold 5 2 - - -
Total
interest
income 37,873 31,749 31,749 31,951 30,873
------ ------ ------ ------ ------
Interest expense
Interest on
deposits $2,183 $2,066 $2,025 $2,083 $2,226
Interest on other
borrowings 1,206 632 404 392 309
-----
Total
interest
expense 3,389 2,698 2,429 2,475 2,535
----- ----- ----- ----- -----
Net interest income 34,484 29,051 29,320 29,476 28,338
Provision for loan losses 1,726 1,478 2,920 4,165 2,923
----- ----- ----- ----- -----
Net interest income/(loss) after
provision for loan losses $32,758 $27,573 $26,400 $25,311 $25,415
------- ------- ------- ------- -------
Noninterest income
Service charges on
deposit accounts $5,586 $5,065 $4,948 $4,695 $4,837
Mortgage banking
activity 5,068 4,431 5,232 5,001 4,464
Other service
charges,
commissions and
fees 652 612 593 617 329
Gain(loss) on sale
of securities 6 - - (1) 172
Gains from
acquisitions - - - - -
Other non-
interest income 1,442 1,409 1,515 1,072 1,558
Total
noninterest
income 12,754 11,517 12,288 11,384 11,360
------ ------ ------ ------ ------
Noninterest expense
Salaries and
employee benefits 17,394 15,071 14,412 13,381 13,806
Occupancy and
equipment
expenses 4,064 3,228 3,149 2,978 2,931
Data processing
and
telecommunications
expenses 3,454 3,061 3,072 2,836 2,570
Credit related
expenses (1) 2,190 5,322 2,971 2,349 4,844
Advertising and
marketing
expenses 710 604 434 327 255
Amortization of
intangible assets 533 346 346 358 364
Other non-
interest expenses 4,894 9,992 4,365 4,459 4,114
Total
noninterest
expense 33,239 37,624 28,749 26,688 28,884
------ ------ ------ ------ ------
Operating profit $12,273 $1,466 $9,939 $10,007 $7,891
Income tax expense 3,923 88 3,262 3,329 2,606
-----
Net income $8,350 $1,378 $6,677 $6,678 $5,285
====== ====== ====== ====== ======
Preferred stock dividends 286 412 443 442 441
--- --- --- --- ---
Net income available to common
shareholders $8,064 $966 $6,234 $6,236 $4,844
====== ==== ====== ====== ======
Diluted earnings available to common
shareholders 0.32 0.04 0.26 0.26 0.20
==== ==== ==== ==== ====
(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.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
PERIOD-END BALANCE SHEET
Assets
Cash and due
from banks $71,387 $62,955 $53,516 $50,343 $50,487
Federal funds
sold and
interest
bearing
balances 48,677 204,984 73,899 43,904 81,205
Investment
securities
available for
sale, at fair
value 456,713 486,235 312,248 316,168 324,029
Other
investments 9,322 16,828 7,764 7,764 5,528
Mortgage loans
held for sale 51,693 67,278 69,634 62,580 42,332
Loans, net of
unearned income 1,695,382 1,618,454 1,589,267 1,555,827 1,492,753
Purchased non-
covered loans 437,269 448,753 - - -
Covered loans 372,694 390,237 417,649 443,517 460,724
Less allowance
for loan losses 22,744 22,377 23,854 24,217 23,382
-----------
Loans, net 2,482,601 2,435,067 1,983,062 1,975,127 1,930,095
Other real
estate owned 33,839 33,351 37,978 39,885 40,434
Purchased, non-
covered other
real estate
owned 3,864 4,276 - - -
Covered other
real estate
owned 42,636 45,893 52,552 62,178 77,915
-----------
Total other
real estate
owned 80,339 83,520 90,530 102,063 118,349
Premises and
equipment, net 87,430 103,188 65,661 70,167 72,340
Intangible
assets, net 5,477 6,009 1,972 2,318 2,676
Goodwill 35,049 35,049 956 956 956
FDIC loss
sharing
receivable 53,181 65,441 81,763 105,513 160,979
Cash value of
bank owned life
insurance 49,738 49,432 49,095 47,495 45,832
Other assets 56,377 51,663 28,402 24,277 26,843
Total assets $3,487,984 $3,667,649 $2,818,502 $2,808,675 $2,861,651
========== ========== ========== ========== ==========
Liabilities
Deposits:
Noninterest-
bearing $698,866 $668,531 $475,505 $475,445 $490,961
Interest-
bearing 2,311,781 2,330,700 1,967,916 1,967,658 1,999,012
--------- --------- --------- --------- ---------
Total deposits 3,010,647 2,999,231 2,443,421 2,443,103 2,489,973
Federal funds
purchased &
securities sold
under
agreements to
repurchase 49,974 83,516 20,255 19,142 22,919
Other borrowings 59,677 194,572 5,000 - -
Other
liabilities 12,028 18,165 17,201 16,384 22,768
Subordinated
deferrable
interest
debentures 55,628 55,466 42,269 42,269 42,269
Total
liabilities 3,187,954 3,350,950 2,528,146 2,520,898 2,577,929
--------- --------- --------- --------- ---------
Stockholders' equity
Preferred stock $ - $28,000 $27,938 $27,845 $27,753
Common stock 26,536 26,462 25,271 25,258 25,239
Capital surplus 190,513 189,722 165,835 165,483 165,078
Retained earnings 92,055 83,991 83,025 76,791 70,554
Accumulated other comprehensive
income/(loss) 2,374 (294) (531) 3,582 6,274
Less treasury stock (11,448) (11,182) (11,182) (11,182) (11,176)
Total
stockholders'
equity 300,030 316,699 290,356 287,777 283,722
------- ------- ------- ------- -------
Total
liabilities
and
stockholders'
equity $3,487,984 $3,667,649 $2,818,502 $2,808,675 $2,861,651
========== ========== ========== ========== ==========
Other Data
Earning Assets 3,062,428 3,215,941 2,462,697 2,421,996 2,401,043
Intangible Assets 40,526 41,058 2,928 3,274 3,632
Interest Bearing Liabilities 2,477,060 2,664,254 2,035,440 2,029,069 2,064,200
Average Assets 3,521,588 2,937,434 2,806,799 2,820,863 2,875,274
Average Common Stockholders'
Equity 290,462 248,429 246,490 251,240 251,214
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
ASSET QUALITY INFORMATION(1)
Allowance for loan losses
Balance at
beginning of
period $22,377 $23,854 $24,217 $23,382 $23,593
Provision for
loan loss (2) 1,501 1,200 2,449 3,695 2,603
Charge-offs 1,606 3,591 3,457 3,200 3,036
Recoveries 472 914 645 340 222
--- --- --- --- ---
Net charge-
offs
(recoveries) 1,134 2,677 2,812 2,860 2,814
Ending balance $22,744 $22,377 $23,854 $24,217 $23,382
=======
As a percentage
of loans 1.34% 1.38% 1.50% 1.56% 1.57%
As a percentage
of
nonperforming
loans 85.09% 76.63% 75.20% 76.13% 62.39%
Net charge-off information
Charge-offs
Commercial,
Financial and
Agricultural $743 $543 $482 $324 $410
Real Estate -
Residential 181 1,785 1,323 1,328 779
Real Estate -
Commercial and
Farmland 533 698 1,080 768 1,025
Real Estate -
Construction
and
Development 65 422 367 576 655
Consumer
Installment 84 143 205 204 167
Total charge-offs 1,606 3,591 3,457 3,200 3,036
----- ----- ----- ----- -----
Recoveries
Commercial,
Financial and
Agricultural 49 92 212 44 84
Real Estate -
Residential 83 368 291 144 85
Real Estate -
Commercial and
Farmland 143 12 5 10 3
Real Estate -
Construction
and
Development 108 385 84 2 2
Consumer
Installment 89 57 53 140 48
Total recoveries 472 914 645 340 222
--- --- --- --- ---
Net charge-
offs
(recoveries) $1,134 $2,677 $2,812 $2,860 $2,814
======
Non-accrual loans (excluding purchased
non-covered 26,729 29,203 31,720 31,811 37,476
and covered loans)
Non-accrual purchased non-covered loans 15,318 6,659 - - -
Foreclosed assets (excluding purchased
assets) 33,839 33,351 37,978 39,885 40,434
Purchased, non-covered other real estate
owned 3,864 4,276 - - -
Accruing loans delinquent 90 days or more - - - - -
--- --- --- --- ---
Total non-performing assets, excluding
covered assets 79,750 73,489 69,698 71,696 77,910
------ ------ ------ ------ ------
Non-performing assets as a percent of
total assets 2.29% 2.00% 2.47% 2.55% 2.72%
Net charge offs as a percent of loans
(Annualized) 0.27% 0.66% 0.70% 0.74% 0.76%
(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 2012 and 2013, 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 2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Commercial, financial & agricultural $270,571 $244,373 $244,991 $208,424 $180,888
Real estate - construction & development 149,543 146,371 132,277 134,607 130,161
Real estate - commercial & farmland 836,230 808,323 799,149 788,654 766,227
Real estate - residential 347,574 351,886 355,920 357,685 355,716
Consumer installment 32,345 34,249 36,303 36,923 37,335
Other 59,119 33,252 20,627 29,534 22,426
Total Legacy (excluding purchased non-
covered and covered) $1,695,382 $1,618,454 $1,589,267 $1,555,827 $1,492,753
---------- ---------- ---------- ---------- ----------
Commercial, financial & agricultural $30,810 $32,141 $ - $ - $ -
Real estate - construction & development 31,820 31,176 - - -
Real estate - commercial & farmland 174,281 179,898 - - -
Real estate - residential 196,078 200,851 - - -
Consumer installment 4,280 4,687 - - -
Total Purchased non-covered (at fair
value) $437,269 $448,753 $ - $ - $ -
-------- -------- --- --- ---
Commercial, financial & agricultural $24,813 $26,550 $27,768 $27,371 $28,568
Real estate - construction & development 41,434 43,179 50,702 52,972 57,114
Real estate - commercial & farmland 214,649 224,451 237,086 255,102 260,159
Real estate - residential 91,372 95,173 101,146 107,107 113,668
Consumer installment 426 884 947 965 1,215
Total Covered (at fair value) $372,694 $390,237 $417,649 $443,517 $460,724
-------- -------- -------- -------- --------
Total Loan Portfolio:
Commercial, financial & agricultural $326,194 $303,064 $272,759 $235,795 $209,456
Real estate - construction & development 222,797 220,726 182,979 187,579 187,275
Real estate - commercial & farmland 1,225,160 1,212,672 1,036,235 1,043,756 1,026,386
Real estate - residential 635,024 647,910 457,066 464,792 469,384
Consumer installment 37,051 39,820 37,250 37,888 38,550
Other 59,119 33,252 20,627 29,534 22,426
Total Loans $2,505,345 $2,457,444 $2,006,916 $1,999,344 $1,953,477
---------- ---------- ---------- ---------- ----------
Troubled Debt Restructurings, excluding
purchased non-covered and covered loans:
Accruing loan types:
Commercial, financial & agricultural $711 $515 $521 $1,059 $799
Real estate - construction & development 1,953 1,896 1,926 1,946 1,883
Real estate - commercial & farmland 8,733 6,913 6,693 7,529 8,878
Real estate - residential 7,364 7,818 7,871 7,468 6,953
Consumer installment 87 72 13 13 -
Total Accruing TDRs $18,848 $17,214 $17,024 $18,015 $18,513
------- ------- ------- ------- -------
Non-accruing loan types:
Commercial, financial & agricultural $40 $525 $533 $ - $ -
Real estate - construction & development 29 32 29 29 43
Real estate - commercial & farmland 1,316 2,273 1,858 1,493 3,595
Real estate - residential 961 834 704 1,046 1,111
Consumer installment 19 19 26 - 6
Total Non-accrual TDRs $2,365 $3,683 $3,150 $2,568 $4,755
------ ------ ------ ------ ------
Total Troubled Debt Restructurings $21,213 $20,897 $20,174 $20,583 $23,268
======= ======= ======= ======= =======
The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:
Grade 10 - Prime credit $93,805 $74,381 $72,759 $44,852 $40,268
Grade 15 - Good credit 243,963 230,212 230,810 241,690 232,773
Grade 20 - Satisfactory credit 817,718 773,051 731,154 708,606 665,777
Grade 23 - Performing, under-
collateralized credit 31,056 31,604 30,729 29,829 29,403
Grade 25 - Minimum acceptable credit 417,177 420,491 433,358 443,105 425,646
Grade 30 -Other asset especially
mentioned 38,240 30,591 28,952 29,265 32,485
Grade 40 - Substandard 53,286 57,987 61,270 57,880 66,147
Grade 50 - Doubtful 137 137 235 598 254
Grade 60 - Loss - - - 2 -
--- --- --- --- ---
Total $1,695,382 $1,618,454 $1,589,267 $1,555,827 $1,492,753
---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
AVERAGE BALANCES
Federal funds
sold $7,455 $3,243 $ - $ - $ -
Interest
bearing
deposits in
banks 99,751 172,117 66,424 52,090 101,452
Investment
securities -
taxable 411,251 276,702 260,262 271,282 286,745
Investment
securities -
nontaxable 51,092 51,291 52,279 50,300 53,819
Other
investments 12,330 8,255 7,764 7,002 6,687
Mortgage
loans held
for sale 49,397 65,683 61,249 48,890 32,639
Loans 1,639,672 1,602,942 1,564,311 1,523,654 1,455,687
Purchased
non-covered
loans 441,138 43,900 - - -
Covered loans 379,460 401,045 427,482 444,616 491,691
------- ------- ------- ------- -------
Total Earning
Assets $3,091,546 $2,625,178 $2,439,771 $2,397,834 2,428,720
---------- ---------- ---------- ---------- ---------
Noninterest
bearing
deposits $666,493 $528,732 $468,588 $479,054 $481,760
NOW accounts 675,199 604,828 573,088 579,312 633,313
MMDA 749,150 655,782 639,304 611,562 592,842
Savings
accounts 143,109 107,058 104,498 104,534 102,380
Retail CDs <
$100,000 373,523 293,689 290,771 298,553 313,191
Retail CDs >
$100,000 361,861 352,043 349,931 358,980 368,577
Brokered CDs 5,970 10,687 12,970 16,176 19,448
Total
Deposits 2,975,305 2,552,819 2,439,150 2,448,171 2,511,511
--------- --------- --------- --------- ---------
FHLB advances 68,333 9,521 - - -
Other
borrowings 30,004 6,304 1,739 - -
Subordinated
debentures 55,092 46,263 42,269 42,269 42,269
Federal funds
purchased
and
securities
sold
under
agreements
to
repurchase 57,112 41,402 18,446 20,530 27,191
Total Non-
Deposit
Funding 210,541 103,490 62,454 62,799 69,460
------- ------- ------ ------ ------
Total Funding $3,185,846 $2,656,309 $2,501,604 $2,510,970 $2,580,971
---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold $5 $2 $ - $ - $ -
Interest bearing deposits in banks 79 118 44 29 85
Investment securities - taxable 2,985 1,998 1,720 1,719 1,697
Investment securities - nontaxable (TE) 452 462 475 464 506
Mortgage loans held for sale 403 554 603 467 291
Loans (TE) 20,647 20,810 20,882 20,396 19,604
Purchased non-covered loans 6,865 570 - - -
Covered loans 6,761 7,508 8,248 9,066 8,765
-----
Total Earning Assets $38,197 $32,022 $31,972 $32,141 $30,948
-------
INTEREST EXPENSE
Non-interest bearing deposits $ - $ - $ - $ - $ -
NOW accounts 288 297 248 250 302
MMDA 681 625 606 555 522
Savings accounts 37 29 29 29 29
Retail CDs < $100,000 489 399 406 437 498
Retail CDs > $100,000 640 629 635 675 706
Brokered CDs 48 86 101 137 169
Total Deposits 2,183 2,065 2,025 2,083 2,226
-----
FHLB advances 37 63 - - -
Other borrowings 408 137 20 - -
Subordinated debentures 708 376 359 363 270
Federal funds purchased and securities sold
under agreements to repurchase 53 56 26 29 39
---
Total Non-Deposit Funding 1,206 632 405 392 309
-----
Total Funding $3,389 $2,697 $2,430 $2,475 $2,535
------
Net Interest Income (TE) $34,808 $29,325 $29,542 $29,666 $28,413
-------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2014 2013 2013 2013 2013
---- ---- ---- ---- ----
YIELDS (1)
Federal funds
sold 0.27% 0.24% 0.00% 0.00% 0.00%
Interest
bearing
deposits in
banks 0.32% 0.27% 0.26% 0.22% 0.34%
Investment
securities -
taxable 2.94% 2.86% 2.62% 2.54% 2.40%
Investment
securities -
nontaxable 3.59% 3.57% 3.61% 3.70% 3.81%
Mortgage
loans held
for sale 3.31% 3.35% 3.91% 3.83% 3.62%
Loans 5.11% 5.15% 5.30% 5.37% 5.46%
Purchased
non-covered
loans 6.31% 5.15% 0.00% 0.00% 0.00%
Covered loans 7.23% 7.43% 7.65% 8.18% 7.23%
---- ---- ---- ---- ----
Total Earning
Assets 5.01% 4.84% 5.20% 5.38% 5.17%
Noninterest
bearing
deposits 0.00% 0.00% 0.00% 0.00% 0.00%
NOW accounts 0.17% 0.19% 0.17% 0.17% 0.19%
MMDA 0.37% 0.38% 0.38% 0.36% 0.36%
Savings
accounts 0.10% 0.11% 0.11% 0.11% 0.11%
Retail CDs <
$100,000 0.53% 0.54% 0.55% 0.59% 0.64%
Retail CDs >
$100,000 0.72% 0.71% 0.72% 0.75% 0.78%
Brokered CDs 3.26% 3.19% 3.09% 3.40% 3.52%
---- ---- ---- ---- ----
Total
Deposits 0.30% 0.32% 0.33% 0.34% 0.36%
FHLB advances 0.22% 2.63% 0.00% 0.00% 0.00%
Other
borrowings 5.51% 8.62% 4.56% 0.00% 0.00%
Subordinated
debentures 5.21% 3.22% 3.37% 3.44% 2.59%
Federal funds
purchased
and
securities
sold
under
agreements
to
repurchase 0.38% 0.54% 0.56% 0.57% 0.58%
---- ---- ---- ---- ----
Total Non-
Deposit
Funding 2.32% 2.42% 2.57% 2.50% 1.80%
Total funding
(3) 0.43% 0.40% 0.39% 0.40% 0.40%
---- ---- ---- ---- ----
Net interest
spread 4.58% 4.44% 4.81% 4.98% 4.81%
Net interest
margin 4.57% 4.43% 4.80% 4.96% 4.74%
==== ==== ==== ==== ====
(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.
Pretax, Pre-provision Earnings Reconciliation 2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Pre-tax operating profit/(loss) $12,273 $1,466 $9,939 $10,007 $7,891
Plus: Credit Related Costs
Provision for loan losses 1,726 1,478 2,920 4,165 2,923
(Gains)/Losses on the sale of legacy OREO (55) 310 (157) 134 (20)
Problem loan and OREO expense 2,127 5,012 3,128 2,215 4,864
Interest reversed (received) on non-accrual loans 246 29 216 118 54
Total Credit-Related Costs 4,044 6,829 6,107 6,632 7,821
----- ----- ----- ----- -----
Plus: Non-recurring acquisition/conversion charges 450 4,350 512 - -
Less: Non-recurring gains
Gains related to FDIC acquisitions - - - - -
Gains on sales of securities (6) - - 1 (172)
Gains on sales of bank premises - - 159 (227) (242)
Other non-recurring adjustments - - (1,771) (2,067) (1,017)
--- --- ------ ------ ------
Pretax, Pre-provision earnings $16,761 $12,645 $14,946 $14,346 $14,281
======= ======= ======= ======= =======
As percentage of average assets, annualized 1.93% 1.71% 2.11% 2.04% 2.01%
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Recurring Operating Expenses 2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Total Operating Expenses 33,239 37,624 28,749 26,688 28,884
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO 55 (310) 157 (134) 20
Gains/(Losses) on the sale of covered OREO (118) - - - (3,176)
Problem loan and OREO expense (2,127) (5,012) (3,128) (2,215) (1,688)
Severance payments - - (99) - -
Conversion/acquisition expenses (450) (4,350) (413) - -
Gains/(Losses) on the sale of premises - - (159) 227 242
--- --- ---- --- ---
Recurring operating expenses $30,599 $27,952 $25,107 $24,566 $24,282
======= ======= ======= ======= =======
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 2014 2013 2013 2013 2013
---- ---- ---- ---- ----
Banking
Division:
Net interest
income $33,384 $27,930 $28,089 $28,517 $27,766
Provision for
loan losses 1,726 1,478 2,920 4,165 2,923
Noninterest
income 7,590 7,086 7,054 6,383 6,896
Noninterest
expense:
Salaries and
employee
benefits 13,826 11,841 10,799 10,478 11,037
Occupancy 3,762 3,080 3,029 2,781 2,765
Data Processing 3,332 2,953 2,908 2,634 2,471
Other expenses 7,512 14,257 7,473 6,444 8,890
----- ------ ----- ----- -----
Total
noninterest
expense 28,432 32,131 24,209 22,337 25,163
------ ------ ------ ------ ------
Income before
income taxes 10,816 1,407 8,014 8,398 6,576
Income Tax 3,413 67 2,588 2,766 2,146
Net income 7,403 1,340 5,426 5,632 4,430
Preferred stock
dividends 286 412 443 442 441
--- --- --- --- ---
Net income
available to
common
shareholders $7,117 $928 $4,983 $5,190 $3,989
====== ==== ====== ====== ======
Mortgage
Division:
Net interest
income $1,100 $1,121 $1,231 $959 $572
Provision for
loan losses - - - - -
Noninterest
income 5,164 4,431 5,234 5,001 4,464
Noninterest
expense:
Salaries and
employee
benefits 3,568 3,230 3,613 2,903 2,769
Occupancy 302 148 120 197 166
Data Processing 122 108 164 202 99
Other expenses 815 2,007 643 1,049 687
--- ----- --- ----- ---
Total
noninterest
expense 4,807 5,493 4,540 4,351 3,721
----- ----- ----- ----- -----
Income before
income taxes 1,457 59 1,925 1,609 1,315
Income Tax 510 21 674 563 460
Net income 947 38 1,251 1,046 855
Preferred stock
dividends - - - - -
--- --- --- --- ---
Net income
available to
common
shareholders $947 $38 $1,251 $1,046 $855
==== === ====== ====== ====
Total
Consolidated:
Net interest
income $34,484 $29,051 $29,320 $29,476 $28,338
Provision for
loan losses 1,726 1,478 2,920 4,165 2,923
Noninterest
income 12,754 11,517 12,288 11,384 11,360
Noninterest
expense:
Salaries and
employee
benefits 17,394 15,071 14,412 13,381 13,806
Occupancy 4,064 3,228 3,149 2,978 2,931
Data Processing 3,454 3,061 3,072 2,836 2,570
Other expenses 8,327 16,264 8,116 7,493 9,577
----- ------ ----- ----- -----
Total
noninterest
expense 33,239 37,624 28,749 26,688 28,884
------ ------ ------ ------ ------
Income before
income taxes 12,273 1,466 9,939 10,007 7,891
Income Tax 3,923 88 3,262 3,329 2,606
Net income 8,350 1,378 6,677 6,678 5,285
Preferred stock
dividends 286 412 443 442 441
--- --- --- --- ---
Net income
available to
common
shareholders $8,064 $966 $6,234 $6,236 $4,844
====== ==== ====== ====== ======
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SOURCE Ameris Bancorp
