MOULTRIE, Ga., April 22, 2016 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported operating net income of $16.5 million, or $0.50 per diluted share, for the quarter ended March 31, 2016, compared with $9.8 million, or $0.32 per diluted share, for the quarter ended March 31, 2015. Commenting on the Company's quarterly results, Edwin W. Hortman, Jr., the Company's President and Chief Executive Officer, said, "We are very pleased with our operating results and performance ratios that our outstanding bankers produced in the first quarter. Even more encouraging is the positive momentum we see going into the second quarter of 2016 and the rest of the year. Against the linked quarter, we saw growth in spread income and non-interest income and made progress on our efficiency initiatives. Lastly, we completed our acquisition of Jacksonville Bancorp, Inc. late in the first quarter which pushed our total assets to approximately $6.1 billion."
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Operating results for the first quarter exclude acquisition costs totaling $4.2 million after tax associated with the acquisition of Jacksonville Bancorp, Inc. ("JAXB"). Including these expenses, the Company reported net income of $12.3 million, or $0.37 per diluted share, for the first quarter of 2016.
Highlights of the Company's performance and results for the first quarter of 2016 include the following:
-- Operating return on average assets of 1.18% and operating return on average tangible equity of 15.42% -- Completion of the acquisition of JAXB, adding $561.4 million in total assets with virtually no dilution to tangible book value -- Increase in tangible book value per share to $13.13, compared with $12.65 per share at December 31, 2015 -- Organic loan growth of $78.4 million, reflecting an annualized growth rate of 9.9% -- Organic growth in non-interest bearing demand deposits of $70.9 million, reflecting an annualized growth rate of 21.4% -- 5.0% increase in total recurring revenue to $78.8 million in the first quarter of 2016, compared with $75.0 million in the fourth quarter of 2015 -- $18.9 million, or 31.5%, increase in year-over-year revenue, compared to year-over-year growth in operating expenses (excluding merger costs) of $8.4 million, or 20.7% -- Improvement in net interest margin to 4.03% from 3.98% in the fourth quarter of 2015 -- Decline in the Company's net overhead ratio, on an operating basis, from 2.12% in the fourth quarter of 2015 to 1.78% in the first quarter of 2016
Acquisition of JAXB
The Company successfully completed the acquisition of JAXB on March 11, 2016. Highlights of the merger are as follows:
-- Added $561.4 million in total assets and eight retail offices within the Jacksonville, Florida market -- Added $401.1 million in loans and $401.4 million in total deposits -- Issuance of a total of 2,549,469 shares of the Company's common stock at a fair value on the closing date of $72.5 million -- $31.4 million in additional goodwill and $5.9 million in core deposit intangibles associated with the merger recorded by the Company -- Including all merger costs, the addition of $0.02 per share to the Company's consolidated tangible book value
The conversion of JAXB's systems to the Company's is scheduled to be completed during the second quarter of 2016, after which time management expects to realize most of the operating efficiencies from the acquisition.
Operating Results
Net income available to common shareholders in the first quarter of 2016 totaled $16.5 million, an increase of 68.3% over the same quarter in 2015. Revenue during the first quarter totaled $78.8 million, an increase of 31.5% over the first quarter of 2015. Increases in revenue resulted from the growth in earning assets over the prior year, as well as increased revenue from the Company's mortgage and SBA lines of business. Returns on average assets and average tangible common equity, on an operating basis, were 1.18% and 15.33%, respectively, for the first quarter of 2016, compared with 0.97% and 10.40%, respectively, for the same quarter of 2015. Operating results improved over the same period in 2015 due to consistently lower credit costs and the full deployment of excess liquidity in the last half of 2015.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2016 totaled $50.4 million, an increase of $11.6 million, or 29.9%, compared with $38.8 million for the first quarter of 2015. The Company's net interest margin increased during the quarter to 4.03%, compared with 3.98% during the fourth quarter of 2015, but declined from 4.39% for the first quarter of 2015. Accretion income for the first quarter of 2016 remained unchanged from the fourth quarter of 2015 at $2.9 million, compared with $3.1 million reported for the first quarter of 2015. Excluding the effect of accretion on purchased assets, the Company's net interest margin was 3.80% in the first quarter of 2016, compared with 3.74% in the fourth quarter of 2015 and 4.05% in the first quarter of 2015. Declines in the margin relative to the same quarter in 2015 stem from the Company's investment of excess liquidity, primarily in government-backed bonds and whole-loan mortgage pools with combined average yields of 2.89%.
Yields on earning assets in the first quarter of 2016 were 4.36%, compared with 4.79% in the first quarter of 2015, reflecting the investment in whole-loan mortgage pools and additional investment securities. Interest income on loans on a tax-equivalent basis increased during the first quarter of 2016 to $49.8 million, compared with $48.0 million in the fourth quarter of 2015 and $38.9 million in the first quarter of 2015. Excluding accretion income, yields on all loans were 4.59% in the first quarter of 2016, reflecting a decline of 0.42% from the first quarter of 2015. Excluding the effect of the purchased mortgage pools, the Company's loan yields declined by only 0.13% from the first quarter of 2015, reflecting success in the Company's pricing efforts on new and renewed credits in the current rate environment.
Total interest expense for the first quarter of 2016 was $4.1 million, compared with $3.5 million for the same quarter of 2015. 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 remained stable during the quarter, ending at 0.23%, which was consistent with levels reported in the fourth quarter of 2015, but lower than the 0.27% reported in the first quarter of 2015. Continued improvement in the Company's mix of deposits, primarily toward non-interest bearing deposits, has allowed for more aggressive retention efforts on MMDA and CDs without negatively impacting overall deposit costs. Non-interest bearing deposits were 27.9% of the total average deposits during the first quarter of 2016, compared with 26.2% for the first quarter of 2015. Management does not expect deposit costs or overall funding costs to decrease materially in the coming quarters despite tightening liquidity ratios and stronger forecasts for asset growth.
Non-interest Income
Non-interest income in the first quarter of 2016 was $24.3 million, an increase of $6.7 million, or 38.2%, compared with the same quarter in 2015. As a percentage of average assets, non-interest income increased from 1.72% in the first quarter of 2015 to 1.73% in the first quarter of 2016.
Service charges in the first quarter of 2016 were $9.9 million, an increase of $3.5 million, or 54.2%, compared with the same quarter in 2015. Stronger growth in commercial and treasury management accounts contributed to the growth in income, as did growth in balances that resulted from the Company's acquisitions during the second quarter of 2015. During the first quarter of 2016, the Company implemented several changes in service charge routines, mostly related to statement costs, which are expected to positively impact revenues in the second half of 2016 by approximately $2 million.
The Company's mortgage operations continued to make improvements in revenues and net income. Revenue in the mortgage group totaled $14.0 million in the first quarter of 2016, an increase 36.4% compared with the same quarter in 2015. Net income for the Company's retail mortgage division increased 54.7% during the first quarter of 2016 to $3.0 million, compared with $1.9 million in the first quarter of 2015. Net income for the Company's warehouse lending division increased 22.8% during the quarter, from $592,000 in the first quarter of 2015 to $727,000 in the first quarter of 2016. Total production in the first quarter of 2016 amounted to $268.6 million (85% retail and 15% wholesale), compared with $188.3 million in the same quarter of 2015 (83% retail and 17% wholesale). Open pipelines finished the first quarter of 2016 at $161.5 million, compared with $94.5 million at the beginning of the first quarter of 2016 and $110.9 million at the end of the first quarter of 2015.
Revenues from the Company's SBA division increased 43.6% during the first quarter of 2016 to $2.2 million, compared with $1.5 million during the first quarter of 2015. Net income for the division increased 56.3%, from $533,000 for the first quarter of 2015 to $833,000 for the first quarter of 2016. SBA pipelines totaled $49.4 million at the end of the first quarter, up $1.5 million compared with the same time in 2015.
Non-interest Expense
During the first quarter of 2016, the Company incurred merger and conversion charges of $6.4 million, before tax, compared with only de minimis amounts in the first quarter of 2015. Excluding these charges, operating expenses decreased approximately $2.0 million, to $49.2 million, from $51.2 million in the fourth quarter of 2015.
Operating expenses, excluding merger charges, as a percentage of average assets declined from 1.00% in the first quarter of 2015 to 0.88% in the first quarter of 2016. The Company's net overhead ratio declined materially to 1.78% in the first quarter of 2016 from 2.12% in the first quarter of 2015. Growth in non-interest income covered 79.6% of the incremental growth in operating expenses, which have been positively affected by the previously announced branch closings and the full integration of the Company's two most recent acquisitions.
Salaries and benefits increased by $0.2 million to $26.2 million in the current quarter of 2016, compared with $26.0 million in the fourth quarter of 2015. Growth in salaries and benefits over the same quarter of 2015 totaled $5.6 million, or 27%, and was driven by a 38% increase in average assets over the same period.
Occupancy and equipment expenses decreased $217,000, from $5.9 million in the fourth quarter of 2015 to $5.7 million in the first quarter of 2016, due principally to lower levels of repairs and maintenance, as well as lower levels of depreciation expense.
Total credit costs (provision and non-provision credit resolution-related costs) totaled $2.5 million in the first quarter of 2016, compared with $4.2 million in the same quarter in 2015 and $2.8 million in the fourth quarter of 2015.
Data processing and telecommunications costs increased to $6.1 million in the first quarter of 2016, an increase of 43.5%, or $1.9 million, compared with the first quarter of 2015. Account acquisition, both organic and through acquisition activity, has increased substantially in the last twelve months.
Balance Sheet Trends
Total assets at March 31, 2016 were $6.10 billion, compared with $5.59 billion at December 31, 2015. The growth in total assets was driven by the acquisition of JAXB during the quarter.
Loans, including loans held for sale, totaled $4.54 billion at March 31, 2016, compared with $4.02 billion at December 31, 2015. During the quarter, growth in legacy loans (total loans less mortgage loans held for sale, purchased non-covered loans, purchased non-covered loan pools and covered loans) amounted to $121.1 million, or 20.1% on an annualized basis. Loans held for sale decreased 12.4% from December 31, 2015 to $97.4 million. Purchased, non-covered loans increased $358.4 million, or 46.4% during the quarter, primarily due to the JAXB acquisition. Purchased non-covered loan pools were $656.7 million at March 31, 2016, compared with $593.3 million at December 31, 2015. Covered loans declined $7.3 million, or 5.33%, during the first quarter, to $130.3 million at March 31, 2016, representing the slowing of payoffs in that portfolio.
Investment securities at the end of the first quarter of 2016 were $837.1 million, or 15.3% of earning assets, compared with $783.2 million, or 15.4% of earning assets, at December 31, 2015.
Deposits increased $351.5 million during the first quarter of 2016 to end the quarter at $5.23 billion. At March 31, 2016, non-interest bearing deposit accounts were $1.53 billion, or 29.2% of total deposits, compared with $1.33 billion and 27.3%, respectively, at December 31, 2015. Non-rate sensitive deposits (including NIB, NOW and savings) totaled $2.81 billion at March 31, 2016, compared with $2.71 billion at the end of 2015. These funds represented 53.5% of the Company's total deposits at March 31, 2016, compared with 55.6% at the end of 2015.
Stockholders' equity at March 31, 2016 totaled $600.8 million, compared with $514.8 million at December 31, 2015. The increase in stockholders' equity was the result of the issuance of shares of common stock in the JAXB acquisition, plus earnings of $12.3 million during the quarter. Tangible book value per share at March 31, 2016 was $13.13 per share, up 3.8% from $12.65 per share at the end of 2015. Tangible common equity as a percentage of tangible assets increased to 7.68% at the end of the first quarter of 2016, compared with 7.44% at the end of 2015.
Conference Call
The Company will host a teleconference at 11:00 a.m. EDT today (April 22, 2016) to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants). The conference ID name is Ameris Bancorp ABCB. A replay of the call will be available one hour after the end of the conference call until May 6, 2016. To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for international participants). The conference replay access code is 10084409. 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.
About Ameris Bancorp
Ameris Bancorp is a bank holding company headquartered in Moultrie, Georgia. The Company's banking subsidiary, Ameris Bank, had 103 locations in Georgia, Alabama, northern Florida and South Carolina at the end of the most recent quarter.
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. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- EARNINGS Net Income $12,317 $14,148 $15,627 $1,308 $9,764 Operating Net Income $16,450 $15,323 $15,917 $12,327 $9,774 PER COMMON SHARE DATA Earnings per share available to common shareholders: Basic $0.38 $0.44 $0.49 $0.04 $0.32 Diluted $0.37 $0.43 $0.48 $0.04 $0.32 Cash Dividends per share $0.05 $0.05 $0.05 $0.05 $0.05 Book value per share (period end) $17.25 $15.98 $15.60 $15.12 $15.22 Tangible book value per share (period end) $13.13 $12.65 $12.31 $11.81 $13.01 Weighted average number of shares: Basic 32,752,063 32,199,632 32,195,435 32,184,355 30,442,998 Diluted 33,053,554 32,594,929 32,553,167 32,520,453 30,796,148 Period-end number of shares 34,837,454 32,211,385 32,196,117 32,195,089 32,182,143 Market data: High closing price $32.68 $34.90 $28.75 $26.87 $26.55 Low closing price $25.09 $27.65 $24.97 $24.73 $22.75 Period end closing price $29.58 $33.99 $28.75 $25.29 $26.39 Average daily volume 253,779 301,775 174,900 107,413 105,152 PERFORMANCE RATIOS Return on average assets 0.88% 1.03% 1.19% 0.12% 0.97% Return on average common equity 9.14% 10.94% 12.53% 1.07% 8.76% Earning asset yield (TE) 4.36% 4.30% 4.39% 4.49% 4.79% Total cost of funds 0.33% 0.32% 0.32% 0.36% 0.40% Net interest margin (TE) 4.03% 3.98% 4.07% 4.14% 4.39% Non-interest income excluding securities transactions, as a percent of total revenue (TE) 30.40% 29.56% 32.33% 31.51% 29.06% Efficiency ratio 74.41% 74.66% 66.87% 92.74% 72.38% CAPITAL ADEQUACY (period end) Stockholders' equity to assets 9.85% 9.21% 9.63% 9.35% 11.79% Tangible common equity to tangible assets 7.68% 7.44% 7.76% 7.46% 10.26% EQUITY TO ASSETS RECONCILIATION Tangible common equity to tangible assets 7.68% 7.44% 7.76% 7.46% 10.26% Effect of goodwill and other intangibles 2.17% 1.77% 1.87% 1.89% 1.54% Equity to assets (GAAP) 9.85% 9.21% 9.63% 9.35% 11.79% ==== ==== ==== ==== ===== OTHER PERIOD-END DATA Banking Division FTE 1,085 1,075 1,110 1,122 852 Mortgage Division FTE 233 229 218 191 170 ------------------- Total Ameris Bancorp FTE Headcount 1,318 1,304 1,328 1,313 1,022 ----- ----- ----- ----- ----- Assets per Banking Division FTE $5,620 $5,199 $4,699 $4,640 $4,874 Branch locations 103 101 103 103 73 Deposits per branch location $50,784 $48,310 $43,986 $43,801 $47,674
AMERIS BANCORP FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands except per share data and FTE headcount) Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- INCOME STATEMENT Interest income Interest and fees on loans $49,191 $47,336 $45,775 $39,838 $38,618 Interest on taxable securities 4,586 4,540 4,694 3,747 3,153 Interest on nontaxable securities 446 458 480 462 469 Interest on deposits in other banks 328 262 227 177 124 Interest on federal funds sold 8 5 19 5 4 Total interest income 54,559 52,601 51,195 44,229 42,368 ------ ------ ------ ------ ------ Interest expense Interest on deposits $2,741 $2,687 $2,521 $2,264 $2,280 Interest on other borrowings 1,382 1,296 1,275 1,277 1,256 ----------------- Total interest expense 4,123 3,983 3,796 3,541 3,536 ----- ----- ----- ----- ----- Net interest income 50,436 48,618 47,399 40,688 38,832 Provision for loan losses 681 553 986 2,656 1,069 --- --- --- ----- ----- Net interest income after provision for loan losses $49,755 $48,065 $46,413 $38,032 $37,763 ------- ------- ------- ------- ------- Noninterest income Service charges on deposit accounts $9,915 $10,119 $10,766 $7,151 $6,429 Mortgage banking activity 10,211 8,586 10,404 9,727 8,083 Other service charges, commissions and fees 1,111 1,112 1,145 829 668 Gain(loss) on sale of securities 94 - 115 10 12 Other non-interest income 2,955 2,590 2,548 2,909 2,383 Total noninterest income 24,286 22,407 24,978 20,626 17,575 ------ ------ ------ ------ ------ Noninterest expense Salaries and employee benefits 26,187 25,972 24,934 22,465 20,632 Occupancy and equipment expenses 5,700 5,917 5,915 4,809 4,554 Data processing and telecommunications expenses 6,113 6,046 5,329 4,214 4,260 Credit resolution related expenses (1) 1,799 2,223 1,083 11,240 3,161 Advertising and marketing expenses 805 1,171 667 833 641 Amortization of intangible assets 1,020 1,160 1,321 630 630 Merger and conversion charges 6,359 1,807 446 5,712 15 Other non-interest expenses 7,617 8,732 8,701 6,961 6,934 Total noninterest expense 55,600 53,028 48,396 56,864 40,827 ------ ------ ------ ------ ------ Income before income taxes $18,441 $17,444 $22,995 $1,794 $14,511 Income tax expense 6,124 3,296 7,368 486 4,747 ----------------- Net income $12,317 $14,148 $15,627 $1,308 $9,764 ======= ======= ======= ====== ====== Diluted earnings available to common shareholders 0.37 0.43 0.48 0.04 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. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- PERIOD-END BALANCE SHEET Assets Cash and due from banks $146,863 $118,518 $114,396 $115,413 $80,142 Federal funds sold and interest bearing balances 107,373 272,045 120,925 239,804 126,157 Investment securities available for sale, at fair value 837,103 783,185 811,385 862,154 610,330 Other investments 12,802 9,323 9,322 9,322 8,636 Mortgage loans held for sale 97,439 111,182 111,807 108,829 73,796 Loans, net of unearned income 2,528,007 2,406,877 2,290,649 2,171,600 1,999,420 Purchased, non-covered loans (excluding loan pools) 1,129,919 771,554 767,494 808,313 643,092 Purchased, non-covered loan pools 656,734 592,963 410,072 268,984 - Covered loans 130,279 137,529 191,021 209,598 245,745 Less allowance for loan losses (21,482) (21,062) (22,471) (21,658) (21,852) ------------------ Loans, net 4,423,457 3,887,861 3,636,765 3,436,837 2,866,405 Other real estate owned 14,967 16,147 20,730 22,567 32,339 Purchased, non-covered other real estate owned 15,048 14,333 11,538 13,112 13,818 Covered other real estate owned 3,764 5,011 12,203 12,626 16,089 ------------------ Total other real estate owned 33,779 35,491 44,471 48,305 62,246 Premises and equipment, net 124,747 121,639 124,756 124,916 98,292 Goodwill 121,512 90,082 87,701 87,367 63,547 Other intangibles, net 21,892 17,058 18,218 19,189 7,591 FDIC loss sharing receivable 1,197 6,301 4,506 14,957 23,312 Cash value of bank owned life insurance 76,676 64,251 59,894 59,552 59,212 Other assets 92,931 72,004 72,154 79,089 73,238 Total assets $6,097,771 $5,588,940 $5,216,300 $5,205,734 $4,152,904 ========== ========== ========== ========== ========== Liabilities Deposits: Noninterest-bearing $1,529,037 $1,329,857 $1,275,800 $1,280,174 $967,015 Interest-bearing 3,701,750 3,549,433 3,254,723 3,231,373 2,513,216 --------- --------- --------- --------- --------- Total deposits 5,230,787 4,879,290 4,530,523 4,511,547 3,480,231 Federal funds purchased & securities sold under agreements to repurchase 43,741 63,585 51,506 75,066 55,520 Other borrowings 110,531 39,000 39,000 39,000 43,851 Other liabilities 28,647 22,432 23,371 24,026 17,952 Subordinated deferrable interest debentures 83,237 69,874 69,600 69,325 65,567 Total liabilities 5,496,943 5,074,181 4,714,000 4,718,964 3,663,121 --------- --------- --------- --------- --------- Stockholders' equity Preferred stock $ - $ - $ - $ - $ - Common stock 36,272 33,625 33,610 33,609 33,593 Capital surplus 407,726 337,349 336,599 336,212 335,578 Retained earnings 163,395 152,820 140,282 126,265 126,566 Accumulated other comprehensive income/(loss) 6,411 3,353 4,197 3,072 6,353 Less treasury stock (12,976) (12,388) (12,388) (12,388) (12,307) Total stockholders' equity 600,828 514,759 502,300 486,770 489,783 ------- ------- ------- ------- ------- Total liabilities and stockholders' equity $6,097,771 $5,588,940 $5,216,300 $5,205,734 $4,152,904 ========== ========== ========== ========== ========== Other Data Earning Assets 5,486,854 5,075,335 4,703,353 4,669,282 3,698,540 Intangible Assets 143,404 107,140 105,919 106,556 71,138 Interest Bearing Liabilities 3,939,259 3,721,892 3,414,829 3,414,764 2,678,154 Average Assets 5,618,397 5,427,367 5,213,275 4,464,558 4,079,750 Average Common Stockholders' Equity 542,264 513,098 494,957 491,967 452,132
AMERIS BANCORP FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands except per share data and FTE headcount) Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- ASSET QUALITY INFORMATION(1) Allowance for loan losses Balance at beginning of period $21,062 $22,471 $21,658 $21,852 $21,157 Provision for loan loss (2) 1,200 800 1,050 1,800 1,100 Charge-offs 1,435 2,398 719 2,452 855 Recoveries 655 189 482 458 450 --- --- --- --- --- Net charge-offs (recoveries) 780 2,209 237 1,994 405 Ending balance $21,482 $21,062 $22,471 $21,658 $21,852 ============== As a percentage of loans 0.85% 0.88% 0.98% 1.00% 1.09% As a percentage of nonperforming loans 136.83% 124.92% 109.31% 104.43% 104.85% Net charge-off information Charge-offs Commercial, financial & agricultural $406 $501 $135 $410 $392 Real estate - residential 468 621 234 464 268 Real estate - commercial & farmland 347 1,009 184 1,162 12 Real estate - construction & development 155 157 105 263 97 Consumer installment 59 110 61 153 86 Total charge-offs 1,435 2,398 719 2,452 855 ----- ----- --- ----- --- Recoveries Commercial, financial & agricultural 73 134 117 115 285 Real estate - residential 314 13 54 27 57 Real estate - commercial & farmland 121 13 272 17 15 Real estate - construction & development 122 9 6 277 31 Consumer installment 25 20 33 22 62 Total recoveries 655 189 482 458 450 --- --- --- --- --- Net charge-offs (recoveries) $780 $2,209 $237 $1,994 $405 =========================== Non-accrual loans (excluding purchased non-covered and covered loans) 15,700 16,860 20,558 20,740 20,841 Non-accrual purchased non-covered loans 19,187 13,330 11,374 17,444 17,308 Foreclosed assets (excluding purchased assets) 14,967 16,147 20,730 22,567 32,339 Purchased, non-covered other real estate owned 15,048 14,333 11,538 13,112 13,818 Accruing loans delinquent 90 days or more - - - - - --- --- --- --- --- Total non-performing assets, excluding covered assets 64,902 60,670 64,200 73,863 84,306 ------ ------ ------ ------ ------ Non-performing assets as a percent of total assets 1.06% 1.09% 1.23% 1.42% 2.03% Net charge offs as a percent of loans (Annualized) 0.12% 0.36% 0.04% 0.37% 0.08% (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 2015 and 2016, 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 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- Commercial, financial & agricultural $434,073 $449,623 $427,747 $373,202 $334,917 Real estate - construction & development 264,820 244,693 220,798 205,019 178,568 Real estate - commercial & farmland 1,154,887 1,104,991 1,067,828 1,010,195 947,274 Real estate - residential 629,138 570,430 532,285 537,201 496,043 Consumer installment 31,901 31,125 31,299 30,080 29,113 Other 13,188 6,015 10,692 15,903 13,505 Total Legacy (excluding purchased non-covered and covered) $2,528,007 $2,406,877 $2,290,649 $2,171,600 $1,999,420 ---------- ---------- ---------- ---------- ---------- Commercial, financial & agricultural $111,537 $45,462 $42,350 $45,337 $36,258 Real estate - construction & development 103,753 72,080 71,109 75,302 53,668 Real estate - commercial & farmland 598,935 390,755 385,032 404,588 291,760 Real estate - residential 309,770 258,153 263,312 276,798 257,216 Consumer installment 5,924 5,104 5,691 6,288 4,190 Total Purchased non-covered (net of discounts) $1,129,919 $771,554 $767,494 $808,313 $643,092 ---------- -------- -------- -------- -------- Commercial, financial & agricultural $ - $ - $ - $ - $ - Real estate - construction & development - - - - - Real estate - commercial & farmland - - - - - Real estate - residential 656,734 592,963 410,072 268,984 - Consumer installment - - - - - Total Purchased non-covered loan pools $656,734 $592,963 $410,072 $268,984 $ - -------- -------- -------- -------- ------------------------- Commercial, financial & agricultural $4,739 $5,546 $13,349 $17,666 $20,905 Real estate - construction & development 7,205 7,612 14,266 15,002 19,519 Real estate - commercial & farmland 67,055 71,226 103,399 111,772 130,290 Real estate - residential 51,176 53,038 59,835 64,982 74,847 Consumer installment 104 107 172 176 184 Total Covered (net of discounts) $130,279 $137,529 $191,021 $209,598 $245,745 -------- -------- -------- -------- -------- Total Loan Portfolio: Commercial, financial & agricultural $550,349 $500,631 $483,446 $436,205 $392,080 Real estate - construction & development 375,778 324,385 306,173 295,323 251,755 Real estate - commercial & farmland 1,820,877 1,566,972 1,556,259 1,526,555 1,369,324 Real estate - residential 1,646,818 1,474,584 1,265,504 1,147,965 828,106 Consumer installment 37,929 36,336 37,162 36,544 33,487 Other 13,188 6,015 10,692 15,903 13,505 Total Loans $4,444,939 $3,908,923 $3,659,236 $3,458,495 $2,888,257 ---------- ---------- ---------- ---------- ---------- Troubled Debt Restructurings, excluding purchased non-covered and covered loans: Accruing loan types: Commercial, financial & agricultural $279 $240 $238 $278 $277 Real estate - construction & development 476 792 838 821 789 Real estate - commercial & farmland 5,945 5,766 5,719 6,617 7,309 Real estate - residential 7,648 7,574 5,209 4,702 4,513 Consumer installment 37 46 71 49 47 Total Accruing TDRs $14,385 $14,418 $12,075 $12,467 $12,935 ------- ------- ------- ------- ------- Non-accruing loan types: Commercial, financial & agricultural $75 $110 $68 $29 $17 Real estate - construction & development 30 63 30 57 90 Real estate - commercial & farmland 1,871 596 942 598 64 Real estate - residential 1,040 1,123 759 783 736 Consumer installment 87 94 64 82 90 Total Non-accrual TDRs $3,103 $1,986 $1,863 $1,549 $997 ------ ------ ------ ------ ---- Total Troubled Debt Restructurings $17,488 $16,404 $13,938 $14,016 $13,932 ======= ======= ======= ======= ======= The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans: Grade 10 - Prime credit $254,203 $250,609 $231,281 $181,933 $157,462 Grade 15 - Good credit 213,510 227,730 234,185 243,070 205,929 Grade 20 - Satisfactory credit 1,346,050 1,224,320 1,148,024 1,104,747 1,012,733 Grade 23 - Performing, under-collateralized credit 25,047 27,607 26,477 27,400 28,643 Grade 25 - Minimum acceptable credit 628,042 609,413 579,642 544,664 513,009 Grade 30 - Other asset especially mentioned 22,141 24,423 22,190 25,020 25,461 Grade 40 - Substandard 39,013 42,773 48,848 44,766 56,179 Grade 50 - Doubtful - - 2 - 4 Grade 60 - Loss 1 2 - - - --- --- --- --- --- Total $2,528,007 $2,406,877 $2,290,649 $2,171,600 $1,999,420 ---------- ---------- ---------- ---------- ---------- The following table presents the purchased, non-covered loan portfolio by risk grade: Grade 10 - Prime credit $10,505 $9,602 $9,801 $10,123 $7,444 Grade 15 - Good credit 48,229 51,168 50,906 53,220 23,640 Grade 20 - Satisfactory credit 344,479 336,990 348,034 362,304 206,480 Grade 23 - Performing, under-collateralized credit 27,445 12,029 10,612 10,537 10,024 Grade 25 - Minimum acceptable credit 607,838 294,829 290,272 300,411 337,386 Grade 30 - Other asset especially mentioned 50,517 30,693 26,458 34,779 22,323 Grade 40 - Substandard 40,874 36,211 31,381 36,887 35,743 Grade 50 - Doubtful 30 30 30 52 52 Grade 60 - Loss 2 2 - - - --- --- --- --- --- Total $1,129,919 $771,554 $767,494 $808,313 $643,092 ---------- -------- -------- -------- --------
AMERIS BANCORP FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands except per share data and FTE headcount) Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- AVERAGE BALANCES Federal funds sold $6,200 $5,500 $5,500 $5,500 $5,500 Interest bearing deposits in banks 201,814 291,303 199,057 201,765 158,286 Investment securities - taxable 728,269 730,608 772,252 600,176 485,922 Investment securities - nontaxable 68,824 69,711 72,549 70,653 71,229 Other investments 9,606 9,322 9,322 9,597 9,450 Mortgage loans held for sale 82,803 98,765 102,961 81,823 75,831 Loans 2,410,747 2,333,577 2,224,490 2,111,507 1,911,601 Purchased non-covered loans 836,187 752,508 788,351 654,397 650,331 Purchased non-covered loan pools 627,178 454,884 323,258 17,308 - Covered loans 134,383 180,493 195,175 246,422 262,693 ------- ------- ------- ------- ------- Total Earning Assets $5,106,011 $4,926,671 $4,692,915 $3,999,148 3,630,843 ---------- ---------- ---------- ---------- --------- Noninterest bearing deposits $1,362,007 $1,324,999 $1,300,870 $1,088,249 $897,937 NOW accounts 1,137,076 1,100,972 907,618 745,709 756,795 MMDA 1,278,199 1,212,087 1,219,736 981,143 857,346 Savings accounts 251,108 241,337 239,999 188,767 163,624 Retail CDs < $100,000 438,122 449,158 484,007 388,248 372,463 Retail CDs > $100,000 406,699 395,978 387,485 378,137 383,962 Brokered CDs 1,099 - - - - Total Deposits 4,874,310 4,724,531 4,539,715 3,770,253 3,432,127 --------- --------- --------- --------- --------- FHLB advances 9,648 - - 17,275 16,778 Other borrowings 42,096 39,000 39,000 41,930 43,871 Subordinated debentures 72,589 69,723 69,448 67,180 65,436 Federal funds purchased and securities sold under agreements to repurchase 52,787 61,986 44,480 58,722 52,707 Total Non-Deposit Funding 177,120 170,709 152,928 185,107 178,792 ------- ------- ------- ------- ------- Total Funding $5,051,430 $4,895,240 $4,692,643 $3,955,360 $3,610,919 ---------- ---------- ---------- ---------- ----------
AMERIS BANCORP FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands except per share data and FTE headcount) Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- INTEREST INCOME/EXPENSE INTEREST INCOME Federal funds sold $8 $5 $19 $5 $4 Interest bearing deposits in banks 328 262 227 177 124 Investment securities - taxable 4,586 4,540 4,694 3,747 3,153 Investment securities - nontaxable (TE) 602 618 648 624 633 Mortgage loans held for sale 755 1,040 970 764 692 Loans (TE) 28,684 27,901 27,258 25,629 22,418 Purchased non-covered loans 13,133 12,129 11,911 10,328 11,840 Purchased non-covered loan pools 5,144 3,335 2,997 149 - Covered loans 2,060 3,556 3,192 3,385 3,995 ----- ----- ----- ----- ----- Total Earning Assets $55,300 $53,386 $51,916 $44,808 $42,859 ------- ------- ------- ------- ------- Accretion Income (included above) 2,942 2,912 3,037 2,635 3,097 INTEREST EXPENSE Non-interest bearing deposits $ - $ - $ - $ - $ - NOW accounts 468 463 304 318 376 MMDA 1,040 929 877 760 663 Savings accounts 43 42 42 37 37 Retail CDs < $100,000 512 594 607 488 513 Retail CDs > $100,000 676 659 691 662 691 Brokered CDs 2 - - - - Total Deposits 2,741 2,687 2,521 2,265 2,280 ----- ----- ----- ----- ----- FHLB advances 23 - - 16 15 Other borrowings 370 328 322 346 366 Subordinated debentures 954 924 914 866 832 Federal funds purchased and securities sold under agreements to repurchase 35 44 39 48 43 --- --- --- --- --- Total Non-Deposit Funding 1,382 1,296 1,275 1,276 1,256 ----- ----- ----- ----- ----- Total Funding $4,123 $3,983 $3,796 $3,541 $3,536 ------ ------ ------ ------ ------ Net Interest Income (TE) $51,177 $49,403 $48,120 $41,267 $39,323 ------- ------- ------- ------- -------
AMERIS BANCORP FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands except per share data and FTE headcount) Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- YIELDS (1) 0.52% 0.36% 1.37% 0.36% 0.29% Federal funds sold 0.65% 0.36% 0.45% 0.35% 0.32% Interest bearing deposits in banks 2.53% 2.47% 2.41% 2.50% 2.63% Investment securities - taxable 3.52% 3.52% 3.54% 3.54% 3.60% Investment securities - nontaxable 3.67% 4.18% 3.74% 3.75% 3.70% Mortgage loans held for sale 4.79% 4.74% 4.86% 4.87% 4.76% Loans 6.32% 6.39% 5.99% 6.33% 7.38% Purchased non-covered loans 3.30% 2.91% 3.68% 3.45% 0.00% Purchased non-covered loan pools 6.17% 7.82% 6.49% 5.51% 6.17% Covered loans -------- 4.36% 4.30% 4.39% 4.49% 4.79% Total Earning Assets 0.00% 0.00% 0.00% 0.00% 0.00% Noninterest bearing deposits 0.17% 0.17% 0.13% 0.17% 0.20% NOW accounts 0.33% 0.30% 0.29% 0.31% 0.31% MMDA 0.07% 0.07% 0.07% 0.08% 0.09% Savings accounts 0.47% 0.52% 0.50% 0.50% 0.56% Retail CDs < $100,000 0.67% 0.66% 0.71% 0.70% 0.73% Retail CDs > $100,000 0.73% 0.00% 0.00% 0.00% 0.00% Brokered CDs -------- 0.23% 0.23% 0.22% 0.24% 0.27% Total Deposits 0.96% 0.00% 0.00% 0.37% 0.36% FHLB advances 3.54% 3.34% 3.28% 3.31% 3.38% Other borrowings 5.29% 5.26% 5.22% 5.17% 5.16% Subordinated debentures Federal funds purchased and securities sold 0.27% 0.28% 0.35% 0.33% 0.33% under agreements to repurchase -------- 3.14% 3.01% 3.31% 2.76% 2.85% Total Non-Deposit Funding 0.33% 0.32% 0.32% 0.36% 0.40% Total funding (3) -------- 4.03% 3.98% 4.07% 4.13% 4.39% Net interest spread 4.03% 3.98% 4.07% 4.14% 4.39% Net interest margin ======== (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. Operating Net Income Reconciliation 2016 2015 2015 2015 2015 ---- Net income available to common shareholders $12,317 $14,148 $15,627 $1,308 $9,764 Merger and conversion charges 6,359 1,807 446 5,712 15 Non-recurring credit resolution related expenses - - - 11,241 - Tax effect of non-recurring charges (2,226) (632) (156) (5,934) (5) ------- Plus: After tax non-recurring charges 4,133 1,175 290 11,019 10 Operating Net income 16,450 15,323 15,917 12,327 9,774 ------ Operating net income per diluted share: $0.50 $0.47 $0.49 $0.38 $0.32 Return on average assets 1.18% 1.12% 1.21% 1.11% 0.97% Return on average common tangible equity 15.42% 14.97% 16.23% 12.83% 10.40% Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. Net Interest Margin and Yields on Total Loans 2016 2015 2015 2015 2015 ---- Excluding Accretion Reconciliation Total Interest Income (TE) $55,300 $53,386 $51,916 $44,808 $42,859 Accretion Income 2,942 2,912 3,037 2,635 3,097 ----- Total Interest Income (TE) Excluding Accretion $52,358 $50,474 $48,879 $42,173 $39,762 Total Interest Expense $4,123 $3,983 $3,796 $3,541 $3,536 Net Interest Income (TE) Excluding Accretion $48,235 $46,491 $45,083 $38,632 $36,226 Yield on Total Loans Excluding Accretion 4.84% 4.92% 4.83% 4.86% 5.01% ----- Net Interest Margin Excluding Accretion 3.80% 3.74% 3.81% 3.87% 4.05% ----- Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. Core Earnings Reconciliation 2016 2015 2015 2015 2015 ---- Pre-tax operating profit/(loss) $18,441 $17,444 $22,995 $1,794 $14,511 Plus: Credit Related Costs Provision for loan losses 681 553 986 2,656 1,069 (Gains)/Losses on the sale of legacy OREO 753 535 36 436 110 (Gains)/Losses on the sale of covered OREO 166 610 56 194 20 Problem loan and OREO expense 880 1,078 991 10,632 3,031 Interest reversed (received) on non-accrual loans 34 58 17 413 156 Total Credit-Related Costs 2,514 2,834 2,086 14,331 4,386 ----- Plus: Conversion charges 6,359 1,807 446 5,712 15 Less: Non-recurring gains Gains on sales of securities (94) - (115) (10) (12) Gains on sales of bank premises (77) (267) - - - Other non-recurring adjustments - - - - - ------------------------------- Pretax, Pre-provision earnings $27,143 $21,818 $25,412 $21,827 $18,900 ============================== As percentage of average assets, annualized 1.94% 1.59% 1.93% 1.96% 1.88% Three Months Ended ------------------ Mar. Dec. Sept. Jun. Mar. Recurring Operating Expenses 2016 2015 2015 2015 2015 ---- Total Operating Expenses 55,600 53,028 48,396 56,864 40,827 Less: Credit costs & non-recurring charges Gains/(Losses) on the sale of legacy OREO (753) (535) (36) (436) (110) Gains/(Losses) on the sale of covered OREO (166) (610) (56) (194) (20) Problem loan and OREO expense (880) (1,078) (991) (10,632) (3,031) Severance payments - - - - - Conversion expenses (6,359) (1,807) (446) (5,712) (15) Gains/(Losses) on the sale of premises 77 267 - - - Other non-recurring adjustments - - - - - ------------------------------- Recurring operating expenses $47,519 $49,265 $46,867 $39,890 $37,651 ============================
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 2016 2015 2015 2015 2015 ---- ---- ---- ---- ---- Banking Division: Net interest income $45,801 $44,088 $43,044 $36,806 $35,839 Provision for loan losses 681 504 960 2,456 927 Noninterest income 12,735 12,739 13,470 9,262 8,780 Noninterest expense: Salaries and employee benefits 18,989 19,225 17,921 15,675 15,362 Occupancy 5,150 5,356 5,444 4,376 4,144 Data Processing 5,820 5,759 4,998 3,913 4,011 Other expenses 16,436 13,853 11,379 24,048 10,356 ------ ------ ------ ------ ------ Total noninterest expense 46,395 44,193 39,742 48,012 33,873 ------ ------ ------ ------ ------ Income before income taxes 11,460 12,130 15,812 (4,400) 9,819 Income Tax 3,681 1,436 4,854 (1,682) 3,105 Net income 7,779 10,694 10,958 (2,718) 6,714 Preferred stock dividends - - - - - --- --- --- --- --- Net income available to common shareholders $7,779 $10,694 $10,958 $(2,718) $6,714 ====== ======= ======= ======= ====== Retail Mortgage Division: Net interest income $3,020 $2,812 $2,485 $1,979 $1,545 Provision for loan losses - 49 26 200 142 Noninterest income 9,624 7,966 9,827 9,095 7,610 Noninterest expense: Salaries and employee benefits 6,347 5,855 6,138 5,592 4,527 Occupancy 488 501 397 396 380 Data Processing 272 266 308 279 212 Other expenses 956 1,043 662 1,150 932 --- ----- --- ----- --- Total noninterest expense 8,063 7,665 7,505 7,417 6,051 ----- ----- ----- ----- ----- Income before income taxes 4,581 3,064 4,781 3,457 2,962 Income Tax 1,603 1,072 1,673 1,210 1,037 Net income 2,978 1,992 3,108 2,247 1,925 Preferred stock dividends - - - - - --- --- --- --- --- Net income available to common shareholders $2,978 $1,992 $3,108 $2,247 $1,925 ====== ====== ====== ====== ====== Warehouse Lending: Net interest income $1,019 $995 $1,128 $1,179 $835 Provision for loan losses - - - - - Noninterest income 333 336 372 383 273 Noninterest expense: Salaries and employee benefits 188 156 137 99 127 Occupancy 1 3 1 1 2 Data Processing 20 20 22 20 33 Other expenses 25 28 40 19 36 --- --- --- --- --- Total noninterest expense 234 207 200 139 198 --- --- --- --- --- Income before income taxes 1,118 1,124 1,300 1,423 910 Income Tax 391 393 455 498 319 Net income 727 731 845 925 592 Preferred stock dividends - - - - - --- --- --- --- --- Net income available to common shareholders $727 $731 $845 $925 $592 ==== ==== ==== ==== ==== SBA Division: Net interest income $596 $723 $742 $724 $613 Provision for loan losses - - - - - Noninterest income 1,594 1,366 1,309 1,886 912 Noninterest expense: Salaries and employee benefits 663 736 738 1,099 616 Occupancy 61 57 73 36 28 Data Processing 1 1 1 2 4 Other expenses 183 169 137 159 57 --- --- --- --- --- Total noninterest expense 908 963 949 1,296 705 --- --- --- ----- --- Income before income taxes 1,282 1,126 1,102 1,314 820 Income Tax 449 394 386 460 287 Net income 833 732 716 854 533 Preferred stock dividends - - - - - --- --- --- --- --- Net income available to common shareholders $833 $732 $716 $854 $533 ==== ==== ==== ==== ==== Total Consolidated: Net interest income $50,436 $48,618 $47,399 $40,688 $38,832 Provision for loan losses 681 553 986 2,656 1,069 Noninterest income 24,286 22,407 24,978 20,626 17,575 Noninterest expense: Salaries and employee benefits 26,187 25,972 24,934 22,465 20,632 Occupancy 5,700 5,917 5,915 4,809 4,554 Data Processing 6,113 6,046 5,329 4,214 4,260 Other expenses 17,600 15,093 12,218 25,376 11,381 ------ ------ ------ ------ ------ Total noninterest expense 55,600 53,028 48,396 56,864 40,827 ------ ------ ------ ------ ------ Income before income taxes 18,441 17,444 22,995 1,794 14,511 Income Tax 6,124 3,296 7,368 486 4,747 Net income 12,317 14,148 15,627 1,308 9,764 Preferred stock dividends - - - - - --- --- --- --- --- Net income available to common shareholders $12,317 $14,148 $15,627 $1,308 $9,764 ======= ======= ======= ====== ======
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