AMERIS BANCORP MOULTRIE, Ga., April 23, 2015 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB) today reported operating net income of $9.8 million, or $0.32 per diluted share, for the quarter ended March 31, 2015, compared to $8.1 million, or $0.32 per diluted share, for the quarter ended March 31, 2014. Commenting on the Company's quarterly results, Edwin W. Hortman, Jr., the Company's President and Chief Executive Officer, said, "In the first quarter of 2015, we announced two highly accretive acquisitions and a supporting capital raise. We had our strongest quarter in new loan originations with better than expected yields. Our mortgage group had its strongest quarter of profitability and finished the quarter with very robust pipelines. As we move into the second quarter and the last half of 2015, our challenge is to continue developing the pipelines and investment opportunities for the liquidity in our two pending acquisitions while limiting the impact on operating expenses."
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Highlights of the Company's performance and results for the first quarter of 2015 include the following:
-- Net income available to common shareholders increased 21.1% compared to
the first quarter of 2014
-- The Company completed a private placement of 5,320,000 shares of common
stock during the quarter
-- The Company announced agreements to acquire Merchants & Southern Banks
of Florida, Inc. and 18 additional branches located in North Florida and
South Georgia
-- Loans, excluding purchased non-covered and covered loans, increased by
$109.5 million during the quarter, reflecting an annualized growth rate
of 23.5%
-- Return on assets and return on average tangible equity were 0.97% and
8.76%, respectively
-- Total revenue increased to $59.9 million in the first quarter of 2015,
compared to $50.6 million in the first quarter of 2014
-- The Company's net interest margin remained strong at 4.39%
-- Noninterest income increased 37.8% in the first quarter of 2015 to $17.6
million, compared to $12.8 million in the first quarter of 2014
-- Tangible common equity to tangible assets increased to 10.26%, a 38.3%
increase compared to December 31, 2014
-- Tangible book value per share increased to $13.01, compared to $10.99 at
December 31, 2014
Pending Acquisitions
During the first quarter of 2015, the Company announced its intent to acquire Merchants & Southern Banks of Florida, Inc., the largest non-regional bank operating in Gainesville, Florida. The Company has received regulatory approval and anticipates an estimated closing date of May 22, 2015.
Additionally, the Company announced its intention to acquire 18 branches in its existing footprint from Bank of America. The branches, located in South Georgia and North Florida, include approximately $864 million of total deposits and a small amount of performing loans. The Company anticipates that the closing of this acquisition will occur during the second quarter of 2015.
The acquisitions, combined with the supporting capital raise, are expected to be over 15% accretive to 2016 earnings per share and 4.50% accretive to tangible book value reported at December 31, 2014.
Operating Results
Net income available to common shareholders in the first quarter of 2015 totaled $9.8 million, an increase of 21.1% compared to the same quarter in 2014. Revenue during the first quarter totaled $59.9 million, an increase of 18.4% compared to the first quarter of 2014. Increases in revenue resulted from the addition of The Coastal Bank, as well as strong organic growth in loans, excluding purchased non-covered and covered loans. Returns on average assets and average tangible common equity were 0.97% and 8.76%, respectively, in the first quarter of 2015 compared to 0.96% and 11.66%, respectively, in the same quarter of 2014. The capital raise was completed in the first quarter of 2015, but the Company does not expect to have the capital fully deployed until the second half of 2015, at which time management believes return on average tangible common equity will approach historical levels.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2015 totaled $38.8 million, an increase of $4.3 million, or 12.6%, compared to the $34.5 million reported for the first quarter of 2014. The Company's net interest margin decreased during the quarter to 4.39%, compared to 4.57% during the first quarter of 2014. Excluding accretion on purchased assets, the Company's net interest margin was 4.05% in the first quarter of 2015, compared to 4.17%% in the fourth quarter of 2014 and 4.21% in the first quarter of 2014. The Company's net interest margin was negatively impacted by 10bps due to the higher level of short-term assets as a percentage of earning assets. The Company intends to be fully invested in either investment securities or loans by the end of the year and to maintain minimal levels of short-term assets as it has in the past.
Yields on earning assets in the first quarter of 2015 were 4.79%, compared to 5.01% in the first quarter of 2014. Yields on total loans outstanding, excluding accretion, in the first quarter were 5.01%, compared to 5.05% in the fourth quarter of 2014. New loan production in the first quarter totaled $254.0 million, with weighted average yields of 4.55%, compared to $228.6 million and 4.65% in the fourth quarter of 2014.
Total interest expense for the first quarter of 2015 was $3.5 million, compared to $3.4 million in the same quarter of 2014. Increases in total interest expense were driven primarily by increases in total deposits and other borrowings resulting from both acquisition activity and organic growth. Deposit costs were lower during the first quarter of 2015 at 0.27%, compared to 0.30% during the first quarter of 2014. Yields on each deposit class were essentially unchanged from the prior year. Management does not expect deposit costs or overall funding costs to decrease materially in the coming quarters given tightening liquidity and increasingly stronger forecasts for asset growth.
Non-interest Income
Non-interest income in the first quarter of 2015 was $17.6 million, an increase of $4.8 million, or 37.8%, compared to the same quarter in 2014. The Company's mortgage operations continued to make improvements in revenues and net income, reporting its best quarter ever for the Company. Total revenue in the mortgage group grew to $10.3 million, an improvement of 64% compared to the same quarter in 2014. Net income improved at a faster pace to $2.5 million, compared to $947,000 in the first quarter of 2014. Total production in the first quarter of 2015 amounted to $188.3 million (83% retail and 17% wholesale), compared to $130.8 million in the same quarter of 2014 (80% retail and 20% wholesale). Relationships with larger builders and real estate firms continue to drive the Company's production from this division. Open pipelines finished the first quarter of 2015 at $110.9 million, compared to $57.0 million at the beginning of the first quarter of 2015 and $75.2 million at the end of the first quarter of 2014.
Service charges in the first quarter of 2015 were $6.4 million, an increase of $843,000, or 15.1%, compared to the same quarter in 2014. Stronger growth in commercial and treasury management accounts contributed to the growth in income, as did strong growth in balances that resulted from the Company's acquisition of The Coastal Bank in June 2014.
During the quarter, the Company recorded approximately $1.5 million of revenue from its SBA division, compared to $685,000 in the same quarter in 2014. Expenses related to SBA lending also increased, from $400,000 in the first quarter of 2014 to $705,000 in the first quarter of 2015. The pipeline of opportunities and closed loans going into the second quarter indicate a much stronger second quarter in revenue than what the Company experienced in the first quarter.
Non-interest Expense
During the first quarter of 2015, operating expenses decreased approximately $906,000 to $40.8 million from $41.7 million in the fourth quarter of 2014. Excluding merger and credit related costs, the Company's total operating expenses increased approximately $0.7 million during the current quarter of 2015 as compared to the fourth quarter of 2014. These increases related to the Company's aggressive investment in the scale of its operations, particularly in information technology and customer care centers. Additional costs are anticipated in the coming quarters as the Company approaches the closing of the acquisitions announced early in the first quarter of 2015.
Salaries and benefits increased to $20.6 million in the current quarter of 2015, compared to $17.4 million in the same quarter in 2014. Increases in compensation costs relate to staffing additions from the acquisition of The Coastal Bank in June 2014, as well as increases associated with higher mortgage revenue and originations in the current quarter compared to the same quarter in 2014.
Non-provision credit resolution-related costs increased from $2.2 million in the first quarter of 2014 to $3.2 million in the first quarter of 2015. During the quarter, the Company brought several larger non-performing assets closer to resolution and incurred higher than normal expenses associated with these efforts. Legal fees associated with OREO and non-accrual loans totaled $754,000 in the first quarter of 2015 compared to $403,000 in the first quarter of 2014.
Occupancy and equipment costs increased from $4.1 million in the first quarter of 2014 to $4.6 million in the first quarter of 2015, due to the increased number of branches operated by the Company since its acquisition of The Coastal Bank. Data processing and telecommunications expenses increased from $3.5 million in the first quarter of 2014 to $4.3 million in the first quarter of 2015. During the quarter, the Company renegotiated a series of contracts with its core service provider that should provide some savings in the coming quarters on a relative basis with the anticipated acquisitions.
Balance Sheet Trends
Total assets at March 31, 2015 were $4.15 billion, compared to $4.04 billion at December 31, 2014. Loans, including loans held for sale, totaled $2.96 billion at March 31, 2015, compared to $2.93 billion at December 31, 2014. During the first quarter, growth in legacy loans (loans excluding purchased non-covered and covered loans) amounted to $109.5 million, or 23.5% on an annualized basis. Growth during the first quarter of 2015 was spread evenly across most loan types, including agriculture, municipal, commercial real estate and mortgage.
Funding sources continued to improve over year end levels. At March 31, 2015, total deposits amounted to $3.48 billion, or 95.5% of total funding, compared to $3.43 billion and 94.0%, respectively, at December 31, 2014. Non-interest bearing deposits reflected the largest growth, ending the current quarter at $967.0 million, or 27.8% of total deposits, compared to $839.4 million, or 24.5%, at December 31, 2014. Aggressive sales efforts on both commercial and consumer balances, as well as the Coastal Bank acquisition, were the reason for the 38.4% growth in noninterest bearing deposits from March 31, 2014 to March 31, 2015.
Stockholders' equity at March 31, 2015 totaled $489.8 million, compared to $366.0 million reported at December 31, 2014. The increase in stockholders' equity was the result of the issuance of $114.9 million of common shares in the first quarter of 2015, together with earnings of $9.8 million during the quarter.
Tangible common equity as a percentage of tangible assets increased to 10.26% at the end of the first quarter of 2015, compared to 7.42% at the end of 2014. The additional common equity associated with the private placement completed during the quarter, together with net income for the quarter, account for the majority of the increase in the Company's capital ratios. Tangible book value increased to $13.01 per share at March 31, 2015, compared to $10.99 per share at December 31, 2014. On a pro forma basis, assuming the impacts of the pending mergers, the Company's tangible common equity to tangible assets ratio would be 7.04% and tangible book value would be $11.74 per share.
Conference Call
The Company will host a teleconference at 10:00 a.m. EDT today (April 23, 2015) to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 or 1-412-902-6630 for international participants and 1-855-669-9657 for Canada. The conference ID name is Ameris Bancorp. A replay of the call will be available one hour after the end of the conference call until May 8, 2015. To listen to the replay, dial 1-877-344-7529 or 1-412-317-0088 for international participants and 1-855-669-9658 for Canada. The conference replay access code is 10064031. The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at www.amerisbank.com.
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 73 locations in Georgia, Alabama, northern Florida and South Carolina.
This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management of Ameris Bancorp (the "Company") uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This news release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "estimate", "expect", "intend", "anticipate" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements and are referred to the Company's periodic filings with the Securities and Exchange Commission for a summary of certain factors that may impact the Company's results of operations and financial condition.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
EARNINGS
Net Income Available to Common Shareholders $9,764 $10,580 $11,663 $8,130 $8,064
PER COMMON SHARE DATA
Earnings per share available to common
shareholders:
Basic $0.32 $0.40 $0.44 $0.32 $0.32
Diluted $0.32 $0.39 $0.43 $0.32 $0.32
Cash Dividends per share $0.05 $0.05 $0.05 $0.05 $ -
Book value per share (period end) $15.22 $13.67 $13.22 $12.83 $11.93
Tangible book value per share (period end) $13.01 $10.99 $10.68 $10.26 $10.31
Weighted average number of shares:
Basic 30,442,998 26,771,636 26,773,033 25,180,665 25,144,342
Diluted 30,796,148 27,090,293 27,160,886 25,633,130 25,573,320
Period-end number of shares 32,182,143 26,773,863 26,774,402 26,771,821 25,159,073
Market data:
High closing price $26.55 $26.48 $24.04 $23.90 $24.00
Low closing price $22.75 $21.95 $21.00 $19.73 $19.86
Period end closing price $26.39 $25.64 $21.95 $21.56 $23.30
Average daily volume 105,152 111,473 79,377 79,038 103,279
PERFORMANCE RATIOS
Return on average assets 0.97% 1.05% 1.17% 0.93% 0.96%
Return on average common equity 8.76% 11.57% 13.19% 10.53% 11.66%
Earning asset yield (TE) 4.79% 5.08% 4.96% 5.08% 5.01%
Total cost of funds 0.40% 0.43% 0.45% 0.42% 0.43%
Net interest margin (TE) 4.39% 4.64% 4.50% 4.65% 4.57%
Non-interest income excluding securities
transactions,
as a percent of total revenue (TE) 29.06% 26.50% 28.86% 28.87% 25.02%
Efficiency ratio 72.38% 72.75% 67.64% 73.05% 70.36%
CAPITAL ADEQUACY (period end)
Stockholders' equity to assets 11.79% 9.07% 8.85% 8.64% 8.60%
Tangible common equity to tangible assets 10.26% 7.42% 7.27% 7.04% 7.53%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets 10.26% 7.42% 7.27% 7.04% 7.53%
Effect of goodwill and other intangibles 1.54% 1.65% 1.58% 1.61% 1.07%
Equity to assets (GAAP) 11.79% 9.07% 8.85% 8.64% 8.60%
===== ==== ==== ==== ====
OTHER PERIOD-END DATA
Banking Division FTE 852 853 867 888 785
Mortgage Division FTE 170 174 176 175 161
---------------------
Total Ameris Bancorp FTE Headcount 1,022 1,027 1,043 1,063 946
----- ----- ----- ----- ---
Assets per Banking Division FTE $4,874 $4,733 $4,613 $4,474 $4,443
Branch locations 73 73 74 74 68
Deposits per branch location $47,674 $47,002 $45,583 $45,798 $44,274
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
INCOME STATEMENT
Interest income
Interest and fees on loans $38,618 $41,235 $39,610 $35,297 $34,469
Interest on taxable securities 3,153 3,114 3,034 2,953 2,985
Interest on nontaxable
securities 469 483 496 312 335
Interest on deposits in other
banks 124 66 46 45 79
Interest on federal funds sold 4 2 - - 5
Total interest income 42,368 44,900 43,186 38,607 37,873
------ ------ ------ ------ ------
Interest expense
Interest on deposits $2,280 $2,560 $2,540 $2,205 $2,183
Interest on other borrowings 1,256 1,334 1,514 1,138 1,206
---------------------
Total interest expense 3,536 3,894 4,054 3,343 3,389
----- ----- ----- ----- -----
Net interest income 38,832 41,006 39,132 35,264 34,484
Provision for loan losses 1,069 888 1,669 1,365 1,726
----- --- ----- ----- -----
Net interest income after provision for loan losses $37,763 $40,118 $37,463 $33,899 $32,758
------- ------- ------- ------- -------
Noninterest income
Service charges on deposit
accounts $6,429 $6,522 $6,659 $5,847 $5,586
Mortgage banking activity 8,083 6,476 7,498 6,944 5,068
Other service charges,
commissions and fees 668 643 690 662 652
Gain(loss) on sale of securities 12 - 132 - 6
Other non-interest income 2,383 2,721 2,922 2,366 1,442
Total noninterest income 17,575 16,362 17,901 15,819 12,754
------ ------ ------ ------ ------
Noninterest expense
Salaries and employee benefits 20,632 19,316 20,226 16,942 17,394
Occupancy and equipment expenses 4,554 4,717 4,669 4,071 4,064
Data processing and
telecommunications expenses 4,260 4,229 3,928 3,940 3,454
Credit resolution related
expenses (1) 3,161 5,290 3,186 2,840 2,190
Advertising and marketing
expenses 641 847 594 718 710
Amortization of intangible
assets 630 662 698 437 533
Merger and conversion charges 15 67 551 2,872 450
Other non-interest expenses 6,934 6,605 4,727 5,498 4,444
Total noninterest expense 40,827 41,733 38,579 37,318 33,239
------ ------ ------ ------ ------
Income before income taxes $14,511 $14,747 $16,785 $12,400 $12,273
Income tax expense 4,747 4,167 5,122 4,270 3,923
------------------
Net income $9,764 $10,580 $11,663 $8,130 $8,350
====== ======= ======= ====== ======
Preferred stock dividends - - - - 286
--- --- --- --- ---
Net income available to common shareholders $9,764 $10,580 $11,663 $8,130 $8,064
====== ======= ======= ====== ======
Diluted earnings available to common shareholders 0.32 0.39 0.43 0.32 0.32
==== ==== ==== ==== ====
(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks $80,142 $78,036 $69,421 $80,986 $71,387
Federal funds sold and interest bearing
balances 126,157 92,323 40,165 44,800 48,677
Investment securities available for sale,
at fair value 610,330 541,805 529,509 535,630 456,713
Other investments 8,636 10,275 12,687 10,971 9,322
Mortgage loans held for sale 73,796 94,759 110,059 81,491 51,693
Loans, net of unearned income 1,999,420 1,889,881 1,848,759 1,770,059 1,695,382
Purchased, non-covered loans 643,092 674,239 673,724 702,131 437,269
Covered loans 245,745 271,279 313,589 331,250 372,694
Less allowance for loan losses (21,852) (21,157) (22,212) (22,254) (22,744)
----------------------
Loans, net 2,866,405 2,814,242 2,813,860 2,781,186 2,482,601
Other real estate owned 32,339 33,160 35,320 35,373 33,839
Purchased, non-covered other real estate
owned 13,818 15,585 13,660 16,598 3,864
Covered other real estate owned 16,089 19,907 28,883 38,426 42,636
----------------------
Total other real estate owned 62,246 68,652 77,863 90,397 80,339
Premises and equipment, net 98,292 97,251 98,752 99,495 87,430
Goodwill 63,547 63,547 58,879 58,903 35,049
Other intangibles, net 7,591 8,221 9,114 9,812 5,477
FDIC loss sharing receivable 23,312 31,351 38,233 49,180 53,181
Cash value of bank owned life insurance 59,212 58,867 58,217 57,864 49,738
Other assets 73,238 77,748 82,649 72,420 56,377
Total assets $4,152,904 $4,037,077 $3,999,408 $3,973,135 $3,487,984
========== ========== ========== ========== ==========
Liabilities
Deposits:
Noninterest-bearing $967,015 $839,377 $816,517 $790,798 $698,866
Interest-bearing 2,513,216 2,591,772 2,556,602 2,598,237 2,311,781
--------- --------- --------- --------- ---------
Total deposits 3,480,231 3,431,149 3,373,119 3,389,035 3,010,647
Federal funds purchased & securities sold
under
agreements to repurchase 55,520 73,310 32,351 51,109 49,974
Other borrowings 43,851 78,881 147,409 100,293 59,677
Other liabilities 17,952 22,384 27,615 24,457 12,028
Subordinated deferrable interest
debentures 65,567 65,325 65,084 64,842 55,628
Total liabilities 3,663,121 3,671,049 3,645,578 3,629,736 3,187,954
--------- --------- --------- --------- ---------
Stockholders' equity
Preferred stock $ - $ - $ - $ - $ -
Common stock 33,593 28,159 28,158 28,155 26,536
Capital surplus 335,578 225,015 224,142 222,550 190,513
Retained earnings 126,566 118,412 109,170 100,185 92,055
Accumulated other comprehensive income/(loss) 6,353 6,098 3,974 4,123 2,374
Less treasury stock (12,307) (11,656) (11,614) (11,614) (11,448)
Total stockholders' equity 489,783 366,028 353,830 343,399 300,030
------- ------- ------- ------- -------
Total liabilities and stockholders' equity $4,152,904 $4,037,077 $3,999,408 $3,973,135 $3,487,984
========== ========== ========== ========== ==========
Other Data
Earning Assets 3,698,540 3,564,286 3,515,805 3,465,361 3,062,428
Intangible Assets 71,138 71,768 67,993 68,715 40,526
Interest Bearing Liabilities 2,678,154 2,809,288 2,801,446 2,814,481 2,477,060
Average Assets 4,079,750 4,011,128 3,969,893 3,494,466 3,521,588
Average Common Stockholders' Equity 452,132 362,659 350,733 309,696 290,462
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
ASSET QUALITY INFORMATION(1)
Allowance for loan losses
Balance at beginning of period $21,157 $22,212 $22,254 $22,744 $22,377
Provision for loan loss (2) 1,100 650 1,573 997 1,501
Charge-offs 855 2,071 1,975 1,973 1,606
Recoveries 450 366 360 486 472
--- --- --- --- ---
Net charge-offs (recoveries) 405 1,705 1,615 1,487 1,134
Ending balance $21,852 $21,157 $22,212 $22,254 $22,744
==============
As a percentage of loans 1.09% 1.12% 1.20% 1.26% 1.34%
As a percentage of nonperforming loans 104.85% 97.37% 97.38% 100.65% 85.09%
Net charge-off information
Charge-offs
Commercial, financial & agricultural $392 $468 $191 $165 $743
Real estate - residential 268 368 406 752 181
Real estate - commercial & farmland 12 1,033 953 769 533
Real estate -construction &
development 97 74 296 157 65
Consumer installment 86 128 129 130 84
Total charge-offs 855 2,071 1,975 1,973 1,606
--- ----- ----- ----- -----
Recoveries
Commercial, financial & agricultural 285 91 47 134 49
Real estate - residential 57 71 52 48 83
Real estate - commercial & farmland 15 91 31 9 143
Real estate -construction &
development 31 49 96 96 108
Consumer installment 62 64 134 199 89
Total recoveries 450 366 360 486 472
--- --- --- --- ---
Net charge-offs (recoveries) $405 $1,705 $1,615 $1,487 $1,134
===========================
Non-accrual loans (excluding purchased non-covered
and covered loans) $20,841 $21,728 $22,810 $22,111 $26,729
Non-accrual purchased non-covered loans 17,308 18,249 17,007 15,770 15,318
Foreclosed assets (excluding purchased assets) 32,339 33,160 35,320 35,373 33,839
Purchased, non-covered other real estate owned 13,818 15,585 13,660 16,598 3,864
Accruing loans delinquent 90 days or more - 1 - - -
--- --- --- --- ---
Total non-performing assets, excluding covered assets $84,306 $88,723 $88,797 $89,852 $79,750
------- ------- ------- ------- -------
Non-performing assets as a percent of total assets 2.03% 2.20% 2.22% 2.26% 2.29%
Net charge offs as a percent of loans (Annualized) 0.08% 0.36% 0.35% 0.34% 0.27%
(1) Asset quality information is presented net of covered assets where the Company's risk exposure is limited substantially by loss-sharing agreements with the FDIC.
(2) During 2014 and 2015, the Company recorded provision for loan loss expense to account for losses where the initial estimate of cash flows was found to be excessive on loans
acquired in FDIC-assisted acquisitions. These amounts are excluded from the calculation above but reflected in the Company's Consolidated Statement of Operations.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
For the quarter ended:
----------------------
Mar. Dec. Sept. Jun. Mar.
Loans by Type 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Commercial, financial & agricultural $334,917 $319,654 $334,783 $304,588 $270,571
Real estate - construction & development 178,568 161,507 154,315 149,346 149,543
Real estate - commercial & farmland 947,274 907,524 882,160 850,000 836,230
Real estate - residential 496,043 456,106 436,515 422,731 393,001
Consumer installment 29,113 30,782 31,403 31,902 32,345
Other 13,505 14,308 9,583 11,492 13,692
Total Non-purchased $1,999,420 $1,889,881 $1,848,759 $1,770,059 $1,695,382
---------- ---------- ---------- ---------- ----------
Commercial, financial & agricultural $36,258 $38,041 $38,077 $41,583 $30,810
Real estate - construction & development 53,668 58,362 60,262 64,084 31,820
Real estate - commercial & farmland 291,760 306,706 296,790 311,748 174,281
Real estate - residential 257,216 266,342 273,347 278,451 196,078
Consumer installment 4,190 4,788 5,248 6,265 4,280
Total Purchased non-covered (net of discounts) $643,092 $674,239 $673,724 $702,131 $437,269
-------- -------- -------- -------- --------
Commercial, financial & agricultural $20,905 $21,467 $22,545 $25,209 $24,813
Real estate - construction & development 19,519 23,447 27,756 31,600 41,434
Real estate - commercial & farmland 130,290 147,627 180,566 188,643 214,649
Real estate - residential 74,847 78,520 82,445 85,518 91,372
Consumer installment 184 218 277 280 426
Total Covered (net of discounts) $245,745 $271,279 $313,589 $331,250 $372,694
-------- -------- -------- -------- --------
Total Loan Portfolio:
Commercial, financial & agricultural $392,080 $379,162 $395,405 $371,380 $326,194
Real estate - construction & development 251,755 243,316 242,333 245,030 222,797
Real estate - commercial & farmland 1,369,324 1,361,857 1,359,516 1,350,391 1,225,160
Real estate - residential 828,106 800,968 792,307 786,700 680,451
Consumer installment 33,487 35,788 36,928 38,447 37,051
Other 13,505 14,308 9,583 11,492 13,692
Total Loans $2,888,257 $2,835,399 $2,836,072 $2,803,440 $2,505,345
---------- ---------- ---------- ---------- ----------
Troubled Debt Restructurings, excluding purchased non-covered and covered loans:
Accruing loan types:
Commercial, financial & agricultural $277 $290 $257 $257 $711
Real estate - construction & development 789 679 1,917 2,080 1,953
Real estate - commercial & farmland 7,309 6,477 7,080 7,590 8,733
Real estate - residential 4,513 5,258 7,973 7,335 7,364
Consumer installment 47 55 34 75 87
Total Accruing TDRs $12,935 $12,759 $17,261 $17,337 $18,848
------- ------- ------- ------- -------
Non-accruing loan types:
Commercial, financial & agricultural $17 $13 $507 $465 $40
Real estate - construction & development 90 228 196 32 29
Real estate - commercial & farmland 64 724 1,672 2,151 1,316
Real estate - residential 736 1,485 759 1,044 961
Consumer installment 90 73 93 51 19
Total Non-accrual TDRs $997 $2,523 $3,227 $3,743 $2,365
---- ------ ------ ------ ------
Total Troubled Debt Restructurings $13,932 $15,282 $20,488 $21,080 $21,213
======= ======= ======= ======= =======
The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:
Grade 10 - Prime credit $157,462 $128,577 $121,486 $110,842 $93,805
Grade 15 - Good credit 205,929 217,804 222,714 226,652 243,963
Grade 20 - Satisfactory credit 1,012,733 947,948 908,054 866,356 817,718
Grade 23 - Performing, under-collateralized credit 28,643 29,205 28,826 28,429 31,056
Grade 25 - Minimum acceptable credit 513,009 488,187 484,200 450,363 417,177
Grade 30 - Other asset especially mentioned 25,461 25,983 31,750 33,360 38,240
Grade 40 - Substandard 56,179 52,176 51,640 54,047 53,286
Grade 50 - Doubtful 4 1 88 10 137
Grade 60 - Loss - - 1 - -
--- --- --- --- ---
Total $1,999,420 $1,889,881 $1,848,759 $1,770,059 $1,695,382
---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
AVERAGE BALANCES
Federal funds sold $5,500 $3,163 $500 $500 $7,455
Interest bearing deposits in banks 158,286 69,772 63,355 50,850 99,751
Investment securities - taxable 485,922 461,800 451,563 418,498 411,251
Investment securities - nontaxable 71,229 72,072 74,176 49,631 51,092
Other investments 9,450 9,804 8,209 6,629 12,330
Mortgage loans held for sale 75,831 97,406 83,751 54,517 49,397
Loans 1,911,601 1,871,618 1,795,059 1,706,564 1,639,672
Purchased non-covered loans 650,331 659,472 688,452 433,249 441,138
Covered loans 262,693 299,981 324,498 354,766 379,460
------- ------- ------- ------- -------
Total Earning Assets $3,630,843 $3,545,088 $3,489,563 3,075,204 3,091,546
---------- ---------- ---------- --------- ---------
Noninterest bearing deposits $897,937 $850,879 $807,416 $680,058 $666,493
NOW accounts 756,795 786,511 743,352 691,353 675,199
MMDA 857,346 840,397 861,197 770,047 749,150
Savings accounts 163,624 156,663 155,559 145,528 143,109
Retail CDs < $100,000 372,463 386,844 439,150 356,483 373,523
Retail CDs > $100,000 383,962 401,934 370,166 360,703 361,861
Brokered CDs - 4,023 5,970 5,970 5,970
Total Deposits 3,432,127 3,427,251 3,382,810 3,010,142 2,975,305
--------- --------- --------- --------- ---------
FHLB advances 16,778 35,815 55,435 28,626 68,333
Other borrowings 43,871 46,508 47,346 35,280 30,004
Subordinated debentures 65,436 65,195 64,953 55,789 55,092
Federal funds purchased and securities sold
under agreements to repurchase 52,707 47,247 44,316 40,008 57,112
Total Non-Deposit Funding 178,792 194,765 212,050 159,703 210,541
------- ------- ------- ------- -------
Total Funding $3,610,919 $3,622,016 $3,594,860 $3,169,845 $3,185,846
---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold $4 $2 $ - $ - $5
Interest bearing deposits in banks 124 66 47 45 79
Investment securities - taxable 3,153 3,114 3,034 2,953 2,985
Investment securities - nontaxable (TE) 633 652 670 421 452
Mortgage loans held for sale 692 947 787 457 403
Loans (TE) 22,418 23,294 21,790 21,996 20,647
Purchased non-covered loans 11,840 12,612 12,610 7,933 6,865
Covered loans 3,995 4,704 4,726 5,164 6,761
----- ----- ----- ----- -----
Total Earning Assets $42,859 $45,391 $43,663 $38,969 $38,197
------- ------- ------- ------- -------
INTEREST EXPENSE
Non-interest bearing deposits $ - $ - $ - $ - $ -
NOW accounts 376 414 324 291 288
MMDA 663 768 783 722 681
Savings accounts 37 45 42 40 37
Retail CDs < $100,000 513 553 596 478 489
Retail CDs > $100,000 691 746 749 626 640
Brokered CDs - 34 47 48 48
Total Deposits 2,280 2,560 2,541 2,205 2,183
----- ----- ----- ----- -----
FHLB advances 15 26 51 26 37
Other borrowings 366 379 558 415 408
Subordinated debentures 832 887 866 666 708
Federal funds purchased and securities sold
under agreements to repurchase 43 41 39 31 53
--- --- --- --- ---
Total Non-Deposit Funding 1,256 1,333 1,514 1,138 1,206
----- ----- ----- ----- -----
Total Funding $3,536 $3,893 $4,055 $3,343 $3,389
------ ------ ------ ------ ------
Net Interest Income (TE) $39,323 $41,498 $39,608 $35,626 $34,808
------- ------- ------- ------- -------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
YIELDS (1)
Federal funds sold 0.29% 0.25% 0.00% 0.00% 0.27%
Interest bearing deposits in banks 0.32% 0.38% 0.29% 0.35% 0.32%
Investment securities - taxable 2.63% 2.68% 2.67% 2.83% 2.94%
Investment securities - nontaxable 3.60% 3.59% 3.58% 3.40% 3.59%
Mortgage loans held for sale 3.70% 3.86% 3.73% 3.36% 3.31%
Loans 4.76% 4.94% 4.82% 5.17% 5.11%
Purchased non-covered loans 7.38% 7.59% 7.27% 7.34% 6.31%
Covered loans 6.17% 6.22% 5.78% 5.84% 7.23%
---- ---- ---- ---- ----
Total Earning Assets 4.79% 5.08% 4.96% 5.08% 5.01%
Noninterest bearing deposits 0.00% 0.00% 0.00% 0.00% 0.00%
NOW accounts 0.20% 0.21% 0.17% 0.17% 0.17%
MMDA 0.31% 0.36% 0.36% 0.38% 0.37%
Savings accounts 0.09% 0.11% 0.11% 0.11% 0.10%
Retail CDs < $100,000 0.56% 0.57% 0.54% 0.54% 0.53%
Retail CDs > $100,000 0.73% 0.74% 0.80% 0.70% 0.72%
Brokered CDs 0.00% 3.35% 3.12% 3.22% 3.26%
---- ---- ---- ---- ----
Total Deposits 0.27% 0.30% 0.30% 0.29% 0.30%
FHLB advances 0.36% 0.29% 0.36% 0.36% 0.22%
Other borrowings 3.38% 3.23% 4.68% 4.72% 5.51%
Subordinated debentures 5.16% 5.40% 5.29% 4.79% 5.21%
Federal funds purchased and securities sold
under agreements to repurchase 0.33% 0.34% 0.35% 0.31% 0.38%
---- ---- ---- ---- ----
Total Non-Deposit Funding 2.85% 2.72% 2.83% 2.86% 2.32%
Total funding (3) 0.40% 0.43% 0.45% 0.42% 0.43%
---- ---- ---- ---- ----
Net interest spread 4.39% 4.65% 4.52% 4.66% 4.58%
Net interest margin 4.39% 4.64% 4.50% 4.65% 4.57%
==== ==== ==== ==== ====
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 35%.
(2) Rate calculated based on average earning assets.
(3) Rate calculated based on total average funding including non-interest bearing liabilities.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Net Operating Income Reconciliation 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Net income available to common shareholders $9,764 $10,580 $11,663 $8,130 $8,064
Conversion charges 15 67 551 2,872 450
Tax effect of conversion charges (5) (23) (193) (1,005) (158)
--- --- ---- ------ ----
Plus: After tax conversion charges 10 44 358 1,867 293
Net operating income 9,774 10,624 12,021 9,997 8,357
----- ------ ------ ----- -----
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Net Interest Margin and Yields on Total Loans 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Excluding Accretion Reconciliation
Total Interest Income (TE) $42,859 $45,391 $43,663 $38,969 $38,197
Accretion Income 3,097 4,280 2,964 2,572 2,727
----- ----- ----- ----- -----
Total Interest Income (TE) Excluding Accretion $39,762 $41,111 $40,699 $36,397 $35,470
Yield on Total Loans Excluding Accretion 5.01% 5.05% 5.07% 5.19% 5.16%
---- ---- ---- ---- ----
Net Interest Margin Excluding Accretion 4.05% 4.17% 4.17% 4.31% 4.21%
---- ---- ---- ---- ----
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Core Earnings Reconciliation 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Pre-tax operating profit $14,511 $14,747 $16,785 $12,400 $12,273
Plus: Credit Related Costs
Provision for loan losses 1,069 888 1,669 1,365 1,726
(Gains)/Losses on the sale of legacy OREO 110 (228) (3) 283 (55)
Gains/(Losses) on the sale of covered OREO 20 344 (184) 249 118
Problem loan and OREO expense 3,031 5,175 3,373 2,309 2,127
Interest reversed (received) on non-accrual loans 156 (6) 94 71 246
Total Credit-Related Costs 4,386 6,173 4,949 4,277 4,162
----- ----- ----- ----- -----
Plus: Conversion charges 15 67 551 2,872 450
Less: Non-recurring gains
Gains on sales of securities (12) - (132) - (6)
Gains on sales of bank premises - - (616) - -
Other non-recurring adjustments - 188 - (870) -
--- --- --- ---- ---
Pretax, Pre-provision earnings $18,900 $21,175 $21,537 $18,679 $16,879
======= ======= ======= ======= =======
As percentage of average assets, annualized 1.88% 2.09% 2.15% 2.14% 1.94%
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Recurring Operating Expenses 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Total Operating Expenses 40,827 41,733 38,579 37,318 33,239
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO (110) 228 3 (283) 55
Gains/(Losses) on the sale of covered OREO (20) (344) 184 (249) (118)
Problem loan and OREO expense (3,031) (5,175) (3,373) (2,309) (2,127)
Severance payments - (188) - - -
Conversion expenses (15) (67) (551) (2,872) (450)
Gains/(Losses) on the sale of premises - - 616 - -
--- --- --- --- ---
Recurring operating expenses $37,651 $36,187 $35,458 $31,605 $30,599
======= ======= ======= ======= =======
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
------------------
Mar. Dec. Sept. Jun. Mar.
Segment Reporting 2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Banking Division:
Net interest income $35,839 $38,045 $36,142 $33,345 $32,928
Provision for loan losses 927 737 994 1,365 1,726
Noninterest income 8,780 8,595 8,932 7,449 7,361
Noninterest expense:
Salaries and employee benefits 15,362 14,196 14,819 12,509 13,577
Occupancy 4,144 4,319 4,277 3,752 3,749
Data Processing 4,011 3,901 3,619 3,590 3,326
Other expenses 10,356 12,320 8,722 10,753 7,380
------ ------ ----- ------ -----
Total noninterest expense 33,873 34,736 31,437 30,604 28,032
------ ------ ------ ------ ------
Income before income taxes 9,819 11,167 12,643 8,825 10,531
Income Tax 3,105 2,914 3,672 3,019 3,313
Net income 6,714 8,253 8,971 5,806 7,218
Preferred stock dividends - - - - 286
--- --- --- --- ---
Net income available to common shareholders $6,714 $8,253 $8,971 $5,806 $6,932
====== ====== ====== ====== ======
Mortgage Division:
Net interest income $2,380 $2,574 $2,347 $1,339 $1,100
Provision for loan losses 142 151 675 - -
Noninterest income 7,883 6,313 7,135 7,002 5,164
Noninterest expense:
Salaries and employee benefits 4,654 4,259 4,409 3,937 3,568
Occupancy 382 373 368 300 302
Data Processing 245 326 306 343 122
Other expenses 968 999 869 1,312 815
--- --- --- ----- ---
Total noninterest expense 6,249 5,957 5,952 5,892 4,807
----- ----- ----- ----- -----
Income before income taxes 3,872 2,779 2,855 2,449 1,457
Income Tax 1,355 973 999 857 510
Net income 2,517 1,806 1,856 1,592 947
Preferred stock dividends - - - - -
--- --- --- --- ---
Net income available to common shareholders $2,517 $1,806 $1,856 $1,592 $947
====== ====== ====== ====== ====
SBA Division:
Net interest income $613 $387 $643 $580 $456
Provision for loan losses - - - - -
Noninterest income 912 1,454 1,834 1,368 229
Noninterest expense:
Salaries and employee benefits 616 861 998 496 249
Occupancy 28 25 24 19 13
Data Processing 4 2 3 7 6
Other expenses 57 152 165 300 132
--- --- --- --- ---
Total noninterest expense 705 1,040 1,190 822 400
--- ----- ----- --- ---
Income before income taxes 820 801 1,287 1,126 285
Income Tax 287 280 450 394 100
Net income 533 521 837 732 185
Preferred stock dividends - - - - -
--- --- --- --- ---
Net income available to common shareholders $533 $521 $837 $732 $185
==== ==== ==== ==== ====
Total Consolidated:
Net interest income $38,832 $41,006 $39,132 $35,264 $34,484
Provision for loan losses 1,069 888 1,669 1,365 1,726
Noninterest income 17,575 16,362 17,901 15,819 12,754
Noninterest expense:
Salaries and employee benefits 20,632 19,316 20,226 16,942 17,394
Occupancy 4,554 4,717 4,669 4,071 4,064
Data Processing 4,260 4,229 3,928 3,940 3,454
Other expenses 11,381 13,471 9,756 12,365 8,327
------ ------ ----- ------ -----
Total noninterest expense 40,827 41,733 38,579 37,318 33,239
------ ------ ------ ------ ------
Income before income taxes 14,511 14,747 16,785 12,400 12,273
Income Tax 4,747 4,167 5,122 4,270 3,923
Net income 9,764 10,580 11,663 8,130 8,350
Preferred stock dividends - - - - 286
--- --- --- --- ---
Net income available to common shareholders $9,764 $10,580 $11,663 $8,130 $8,064
====== ======= ======= ====== ======
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SOURCE Ameris Bancorp
