Ameris Bancorp Announces Financial Results For First Quarter 2019

Company Release - 4/23/2019 7:01 AM ET

JACKSONVILLE, Fla., April 23, 2019 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $39.9 million, or $0.84 per diluted share, for the quarter ended March 31, 2019, compared with $26.7 million, or $0.70 per diluted share, for the quarter ended March 31, 2018.  The Company reported adjusted net income of $42.6 million, or $0.90 per diluted share, for the quarter ended March 31, 2019, compared with $27.8 million, or $0.73 per diluted share, for the same period in 2018.  Adjusted net income excludes after-tax merger and conversion charges, restructuring charges related to recently announced branch consolidations, loss on sale of bank premises and expenses related to Hurricane Michael.

Ameris Bancorp logo. (PRNewsFoto/Ameris Bancorp)

Commenting on the Company's earnings, Dennis J. Zember Jr., the Company's President and Chief Executive Officer, said, "We started the year with solid growth in deposits and an impressive increase in net interest margin.  Compared with the same quarter a year ago, we have held the line on operating expenses while we have grown revenues over 37%.  Loan growth was not at the level we were budgeting, but our control of expenses and solid financial results within our lines of businesses almost made up the entire difference.  Looking ahead, I see pipelines and unfunded commitments that should move loan balances higher in the coming quarter."

Highlights of the Company's results for the first quarter of 2019 include the following:

  • Increase in tangible book value per share to $19.73, or a 16.7% increase, at March 31, 2019, compared with $16.90 at March 31, 2018
  • Net interest margin expansion of 3 basis points to 3.95% against the same period in 2018, despite reduction in loans to deposits from 96.0% at March 31, 2018 to 86.5% at March 31, 2019
  • Deposit growth over the last 12 months of $3.4 billion, which outpaced loan growth of $2.3 billion over the same period
  • Increase of $2.7 million in noninterest income from mortgage banking activities to $13.8 million for the first quarter of 2019, compared with $11.1 million in the fourth quarter of 2018 and $11.9 million in the first quarter of 2018
  • Reduction of 11 branch locations pursuant to our previously announced branch consolidation plan
  • Adjusted return on average assets of 1.51%, compared with 1.44% in the first quarter of 2018
  • Adjusted return on average tangible common equity of 18.82%, compared with 17.09% in the first quarter of 2018

Following is a summary of the adjustments between reported net income and adjusted net income:

Adjusted Net Income Reconciliation





Three Months Ended


March 31,

(dollars in thousands, except per share data)

2019


2018

Net income available to common shareholders

$

39,905



$

26,660






Adjustment items:




Merger and conversion charges

2,057



835


Restructuring charge

245




Financial impact of hurricanes

(89)




Loss on sale of premises

919



583


Tax effect of adjustment items

(450)



(298)


After-tax adjustment items

2,682



1,120


Adjusted net income

$

42,587



$

27,780






Reported net income per diluted share

$

0.84



$

0.70


Adjusted net income per diluted share

$

0.90



$

0.73






Reported return on average assets

1.42

%


1.38

%

Adjusted return on average assets

1.51

%


1.44

%





Reported return on average common equity

10.95

%


12.73

%

Adjusted return on average tangible common equity

18.82

%


17.09

%

 

Pending Acquisition 
During the fourth quarter of 2018, the Company announced its intent to acquire Fidelity Southern Corporation ("Fidelity"), the parent company of Fidelity Bank, Atlanta, Georgia.  Fidelity operates 70 full-service banking locations, 51 of which are located in Georgia and 19 of which are located in Florida.  The acquisition will further expand the Company's existing Southeastern footprint in the attractive Atlanta market, where the Company will be the largest community bank by deposit share after the acquisition.  The transaction is expected to close in the second quarter of 2019 and is subject to customary closing conditions, including receipt of regulatory approval and the approval of Fidelity and Ameris Bancorp shareholders.

Net Interest Income and Net Interest Margin 
Net interest income on a tax-equivalent basis for the first quarter of 2019 totaled $99.4 million, compared with $100.6 million for the fourth quarter of 2018 and $69.8 million for first quarter of 2018.  The Company's net interest margin, excluding the effects of accretion income, increased during the quarter to 3.83%, compared with 3.75% in the fourth quarter of 2018 and decreased slightly from 3.84% in the first quarter of 2018.  The linked quarter increase was primarily attributable to an increase in the yield on loans, excluding purchased loans, of 32 basis points compared with the linked quarter.

The Company's net interest margin was 3.95% for the first quarter of 2019, up from 3.91% reported for the fourth quarter of 2018 and 3.92% reported for the first quarter of 2018.  Accretion income for the first quarter of 2019 decreased to $2.9 million, compared with $4.1 million for the fourth quarter of 2018, and increased from $1.4 million reported for the first quarter of 2018.  Yields on all loans, excluding the effect of accretion, increased to 5.22% during the first quarter of 2019, compared with 5.00% for the fourth quarter of 2018 and 4.75% during the first quarter of 2018.  Loan production in the banking division during the first quarter of 2019 totaled $613.5 million, with weighted average yields of 5.78%, compared with $604.9 million and 5.74%, respectively, in the fourth quarter of 2018 and $365.0 million and 5.19%, respectively, in the first quarter of 2018.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $1.9 billion during the first quarter of 2019, with weighted average yields of 5.47%, compared with $1.8 billion and 5.56%, respectively, during the fourth quarter of 2018 and $1.6 billion and 4.96%, respectively, during the first quarter of 2018.

Interest expense during the first quarter of 2019 increased to $25.5 million, compared with $23.2 million in the fourth quarter of 2018 and $10.7 million in the first quarter of 2018.  The Company's total cost of funds moved 11 basis points higher to 1.05% in the first quarter of 2019,  as compared with the fourth quarter of 2018.  Deposit costs increased 13 basis points during the first quarter of 2019 to 0.92%, compared with 0.79% in the fourth quarter of 2018.  Costs of interest-bearing deposits increased during the quarter from 1.09% in the fourth quarter of 2018 to 1.25% in the first quarter of 2019, with the material portion of the increase relating to NOW and MMDA accounts.

Noninterest Income 
Noninterest income in the first quarter of 2019 was $30.8 million, an increase of $4.3 million, or 16.3%, compared with the same period in 2018, as a result of increased service charges and mortgage banking activity.  Service charge revenue for the first quarter of 2019 increased $1.4 million, or 13.9%, compared with the same period in 2018 due to the Company's increased number of deposit accounts from organic growth and the acquisitions completed in 2018.

Revenue in the retail mortgage division totaled $20.0 million in the first quarter of 2019, an increase of $3.5 million, or 20.9%, compared with the same period in 2018.  Total production was flat at $356.0 million for the first quarter of 2019 compared with the same period in 2018.  Gain on sale spreads continued to improve in the first quarter of 2019, moving to 3.18% from 3.06% in the linked quarter and 2.62% for the first quarter of 2018. Net income for the Company's retail mortgage division was $6.9 million for the first quarter of 2019, compared with $4.0 million for the fourth quarter of 2018 and $4.7 million for the first quarter of 2018.

Profitability in the Company's warehouse lending division continued to improve as net income for the division was $2.2 million for the first quarter of 2019, compared with $2.0 million for the fourth quarter of 2018 and $1.6 million for the first quarter of 2018.  The Company has experienced no losses in this division over the past two years.

Revenue in the SBA division increased to $2.8 million in the first quarter of 2019, compared with $2.4 million in the fourth quarter of 2018 and $2.3 million in the first quarter of 2018.  Net income for the division increased over 20% from the fourth quarter of 2018 and over 97% from the first quarter of 2018 to $1.1 million in the first quarter of 2019.

Noninterest Expense 
Noninterest expense decreased $385,000, or 0.5%, to $75.4 million during the first quarter of 2019, compared with $75.8 million for the fourth quarter of 2018.  During the first quarter of 2019, the Company recorded $3.1 million of charges to earnings, the majority of which was related to merger and conversion activity and loss on sale of premises, compared with $4.9 million in the fourth quarter of 2018 that were mostly merger, executive retirement and hurricane related.  Excluding these charges, adjusted expenses increased approximately $1.4 million, or 1.9%, to $72.3 million in the first quarter of 2019, from $70.9 million in the fourth quarter of 2018.  The majority of this increase is attributable to $1.2 million in increased payroll taxes in the first quarter of 2019.   The Company continues to focus on its operating efficiency ratio. The Company's adjusted efficiency ratio declined from 59.95% in the first quarter of 2018 to 55.12% in the first quarter of 2019, but was increased slightly from the 54.10% reported in the fourth quarter of 2018.  The increased payroll taxes accounted for the majority of the increase in the efficiency ratio.

Income Tax Expense 
The Company's effective tax rate for the first quarter of 2019 was 22.3%, compared with 13.9% in the fourth quarter of 2018.  The reduced rate in the fourth quarter is a result of a large return to provision adjustment  made when the Company filed its 2017 income tax returns in the fourth quarter of 2018.  These factors, determined in the fourth quarter, impacted the overall expected tax rate for the year and the full impact was realized in the fourth quarter.  Excluding this benefit, the Company's tax rate for the fourth quarter of 21.4% was more consistent with the year-to-date tax rate of 20.1%.  The increased rate for the first quarter of 2019 was attributable to certain non-deductible merger and compensation expenses.

Balance Sheet Trends 
Total assets at March 31, 2019 were $11.7 billion compared with $11.4 billion at December 31, 2018.  Total loans, including loans held for sale, purchased loans and purchased loan pools, were $8.59 billion at March 31, 2019, compared with $8.62 billion at December 31, 2018.  Although loan production was strong in the first quarter of 2019, net loan growth was negatively impacted by early pay downs and pay offs throughout the quarter.  Loan production in the banking division during the first quarter of 2019 was slightly higher than the fourth quarter of 2018 and was 68% higher than the first quarter of 2018.

At March 31, 2019, total deposits amounted to $9.80 billion, or 97.6% of total funding, compared with $9.65 billion and 97.4%, respectively, at December 31, 2018.  At March 31, 2019, noninterest-bearing deposit accounts were $2.75 billion, or 28.1% of total deposits, compared with $2.52 billion, or 26.1% of total deposits, at December 31, 2018.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $4.71 billion at March 31, 2019, compared with $4.60 billion at December 31, 2018.  These funds represented 48.0% of the Company's total deposits at March 31, 2019, compared with 47.6% at the end of 2018.

Stockholders' equity at March 31, 2019 totaled $1.50 billion, an increase of $39.2 million, or 2.7%, from December 31, 2018.  The increase in stockholders' equity was primarily the result of earnings of $39.9 million during the first quarter of 2019.  Tangible book value per share was $19.73 at March 31, 2019, up from $18.83 at December 31, 2018.  Tangible common equity as a percentage of tangible assets was 8.46% at March 31, 2019, compared with 8.22% at the end of the 2018.

Credit Quality 
Credit quality remains strong.  During the first quarter of 2019, the Company recorded provision for loan loss expense of $3.4 million, compared with $3.7 million in the fourth quarter of 2018.  Nonperforming assets as a percentage of total assets decreased by one basis point to 0.54% during the quarter.  The net charge-off ratio for non-purchased loans was 27 basis points for the first quarter of 2019, compared with 21 basis points in the fourth quarter of 2018 and 14 basis points in the first quarter of 2018.

Conference Call 
The Company will host a teleconference at 10:00 a.m. Eastern time today (April 23, 2019) 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 7, 2019.  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 other international participants).  The conference replay access code is 10130179.  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 114 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 forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals, and including statements about the benefits of the proposed merger between the Company and Fidelity Southern Corporation ("Fidelity").  Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements.  The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance.  Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following:  general competitive, economic, political and market conditions and fluctuations, including, without limitation, movements in interest rates; competitive pressures on product pricing and services; the ability of the Company and Fidelity to consummate the proposed merger or satisfy the conditions to the completion of the proposed merger, including, without limitation, the receipt of required shareholder and regulatory approvals, on the terms expected or on the anticipated schedule; the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed merger; the businesses of the Company and Fidelity may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the proposed merger may not be fully realized within the expected timeframes; disruption from the proposed merger may make it more difficult to maintain relationships with customers, employees or others; diversion of management time to merger-related issues; dilution caused by the Company's issuance of additional shares of its common stock in connection with the proposed merger; and the success and timing of other business strategies.  For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's and Fidelity's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and its subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and Fidelity's Annual Report on Form 10-K for the year ended December 31, 2018 and its subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  Forward-looking statements speak only as of the date they are made, and neither the Company nor Fidelity undertakes any obligation to update or revise forward-looking statements.

Additional Information and Where to Find It

In connection with the proposed merger of the Company with Fidelity, the Company has filed with the Securities and Exchange Commission a Registration Statement on Form S-4 (Registration Statement No. 333-229626) and a joint proxy statement/prospectus and other relevant materials in connection with the transaction.  BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY IN THEIR ENTIRETY THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.  Investors and security holders may obtain free copies of these documents and other documents filed with the Securities and Exchange Commission on its website at http://www.sec.gov.  Investors and security holders may also obtain free copies of the documents filed with the Securities and Exchange Commission by the Company on its website at http://www.AmerisBank.com and by Fidelity on its website at www.FidelitySouthern.com.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  Before making any voting or investment decision, investors and security holders of the Company and Fidelity are urged to read carefully the entire registration statement and joint proxy statement/prospectus  because it contains important information about the proposed merger transaction.  Free copies of this document may be obtained as described above.

Participants in the Merger Solicitation

The Company and Fidelity, and certain of their respective directors, executive officers and other members of management and employees, may be deemed to be participants in the solicitation of proxies from the Company's shareholders and Fidelity's shareholders in respect of the proposed merger transaction.  Information regarding the directors and executive officers of the Company and Fidelity and other persons who may be deemed participants in the solicitation of the Company's shareholders and Fidelity's shareholders has been included in the joint proxy statement/prospectus for the Company's meeting of shareholders and Fidelity's meeting of shareholders, which was filed with the Securities and Exchange Commission on March 25, 2019.  Information about the Company's directors and executive officers and their ownership of the Company's common stock can also be found in the Company's definitive proxy statement in connection with its 2019 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 1, 2019, and other documents subsequently filed by the Company with the Securities and Exchange Commission.  Information about Fidelity's directors and executive officers and their ownership of Fidelity common stock can also be found in Fidelity's Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 13, 2019, and other documents subsequently filed by Fidelity with the Securities and Exchange Commission.


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Financial Highlights

Table 1


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2019


2018


2018


2018


2018











EARNINGS










Net income

$

39,905



$

43,536



$

41,444



$

9,387



$

26,660


Adjusted net income

$

42,587



$

45,897



$

43,292



$

29,239



$

27,780












COMMON SHARE DATA










Earnings per share available to common shareholders










Basic

$

0.84



$

0.92



$

0.87



$

0.24



$

0.70


Diluted

$

0.84



$

0.91



$

0.87



$

0.24



$

0.70


Adjusted diluted EPS

$

0.90



$

0.96



$

0.91



$

0.74



$

0.73


Cash dividends per share

$

0.10



$

0.10



$

0.10



$

0.10



$

0.10


Book value per share (period end)

$

31.43



$

30.66



$

29.58



$

28.87



$

22.67


Tangible book value per share (period end)

$

19.73



$

18.83



$

17.78



$

17.12



$

16.90


Weighted average number of shares










Basic

47,366,296



47,501,150



47,514,653



39,432,021



37,966,781


Diluted

47,456,314



47,593,252



47,685,334



39,709,503



38,250,122


Period end number of shares

47,585,309



47,499,941



47,496,966



47,518,662



38,327,081


Market data










High intraday price

$

42.01



$

47.25



$

54.35



$

58.10



$

59.05


Low intraday price

$

31.27



$

29.97



$

45.15



$

50.20



$

47.90


Period end closing price

$

34.35



$

31.67



$

45.70



$

53.35



$

52.90


Average daily volume

387,800



375,773



382,622



253,413



235,964












PERFORMANCE RATIOS










Return on average assets

1.42

%


1.53

%


1.47

%


0.44

%


1.38

%

Adjusted return on average assets

1.51

%


1.61

%


1.53

%


1.38

%


1.44

%

Return on average common equity

10.95

%


12.09

%


11.78

%


3.86

%


12.73

%

Adjusted return on average tangible common equity

18.82

%


20.95

%


20.50

%


17.26

%


17.09

%

Earning asset yield (TE)

4.95

%


4.81

%


4.78

%


4.66

%


4.52

%

Total cost of funds

1.05

%


0.94

%


0.90

%


0.75

%


0.63

%

Net interest margin (TE)

3.95

%


3.91

%


3.92

%


3.95

%


3.92

%

Noninterest income excluding securities transactions, as a percent of total revenue (TE)

19.59

%


19.75

%


19.77

%


25.72

%


24.71

%

Efficiency ratio

57.95

%


58.30

%


56.00

%


80.50

%


62.04

%

Adjusted efficiency ratio (TE)

55.12

%


54.10

%


54.42

%


57.53

%


59.95

%











CAPITAL ADEQUACY (period end)










Shareholders' equity to assets

12.83

%


12.73

%


12.29

%


12.26

%


10.83

%

Tangible common equity to tangible assets

8.46

%


8.22

%


7.77

%


7.65

%


8.30

%











EQUITY TO ASSETS RECONCILIATION










Tangible common equity to tangible assets

8.46

%


8.22

%


7.77

%


7.65

%


8.30

%

Effect of goodwill and other intangibles

4.37

%


4.51

%


4.52

%


4.61

%


2.53

%

Equity to assets (GAAP)

12.83

%


12.73

%


12.29

%


12.26

%


10.83

%











OTHER DATA (period end)










Full time equivalent employees










Banking Division

1,343



1,370



1,432



1,477



1,072


Retail Mortgage Division

328



332



317



308



290


Warehouse Lending Division

9



8



8



7



7


SBA Division

22



22



23



22



21


Premium Finance Division

64



72



67



68



67


Total Ameris Bancorp FTE headcount

1,766



1,804



1,847



1,882



1,457












Assets per Banking Division FTE

$

8,679



$

8,353



$

7,981



$

7,577



$

7,484


Branch locations

114



125



125



126



97


Deposits per branch location

$

85,973



$

77,195



$

73,451



$

69,536



$

66,455


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Income Statement

Table 2


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands except per share data)

2019


2018


2018


2018


2018











Interest income










Interest and fees on loans

$

112,401



$

111,749



$

110,470



$

82,723



$

73,267


Interest on taxable securities

9,043



8,686



8,792



6,321



5,207


Interest on nontaxable securities

156



195



204



179



322


Interest on deposits in other banks

3,150



1,964



1,581



723



716


Interest on federal funds sold

179



155



72






Total interest income

124,929



122,749



121,119



89,946



79,512












Interest expense










Interest on deposits

21,684



18,858



15,630



7,794



6,772


Interest on other borrowings

3,850



4,337



6,451



6,153



3,939


Total interest expense

25,534



23,195



22,081



13,947



10,711












Net interest income

99,395



99,554



99,038



75,999



68,801


Provision for loan losses

3,408



3,661



2,095



9,110



1,801


Net interest income after provision for loan losses

95,987



95,893



96,943



66,889



67,000












Noninterest income










Service charges on deposits accounts

11,646



12,597



12,690



10,613



10,228


Mortgage banking activity

13,828



11,089



13,413



14,890



11,900


Other service charges, commissions and fees

768



810



777



697



719


Gain (loss) on securities

66



1



48



(123)



37


Other noninterest income

4,463



5,973



3,243



5,230



3,580


Total noninterest income

30,771



30,470



30,171



31,307



26,464












Noninterest expense










Salaries and employee benefits

38,370



38,982



38,446



39,776



32,089


Occupancy and equipment expenses

8,204



7,945



8,598



6,390



6,198


Data processing and telecommunications expenses

8,391



8,293



8,518



6,439



7,135


Credit resolution related expenses(1)

911



1,174



1,248



1,045



549


Advertising and marketing expenses

1,741



1,633



1,453



1,256



1,229


Amortization of intangible assets

3,132



3,650



2,676



2,252



934


Merger and conversion charges

2,057



997



276



18,391



835


Other noninterest expenses

12,619



13,136



11,138



10,837



10,129


Total noninterest expense

75,425



75,810



72,353



86,386



59,098












Income before income tax expense

51,333



50,553



54,761



11,810



34,366


Income tax expense

11,428



7,017



13,317



2,423



7,706


Net income

$

39,905



$

43,536



$

41,444



$

9,387



$

26,660












Diluted earnings per common share

$

0.84



$

0.91



$

0.87



$

0.24



$

0.70












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

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Period End Balance Sheet

Table 3


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Assets










Cash and due from banks

$

144,801



$

172,036



$

158,453



$

151,539



$

123,945


Federal funds sold and interest-bearing deposits in banks

712,199



507,491



470,804



273,170



210,930


Time deposits in other banks

7,371



10,812



11,558



11,558




Investment securities available for sale, at fair value

1,234,435



1,192,423



1,162,570



1,153,703



848,585


Other investments

15,157



14,455



35,929



44,769



32,227


Loans held for sale, at fair value

112,070



111,298



130,179



137,249



111,135












Loans

5,756,358



5,660,457



5,543,306



5,380,515



5,051,986


Purchased loans

2,472,271



2,588,832



2,711,460



2,812,510



818,587


Purchased loan pools

253,710



262,625



274,752



297,509



319,598


Loans, net of unearned income

8,482,339



8,511,914



8,529,518



8,490,534



6,190,171


Allowance for loan losses

(28,659)



(28,819)



(28,116)



(31,532)



(26,200)


Loans, net

8,453,680



8,483,095



8,501,402



8,459,002



6,163,971












Other real estate owned

6,014



7,218



9,375



8,003



9,171


Purchased other real estate owned

10,857



9,535



7,692



7,272



6,723


Total other real estate owned

16,871



16,753



17,067



15,275



15,894












Premises and equipment, net

167,437



145,410



145,885



144,484



116,381


Goodwill

501,308



503,434



505,604



504,764



208,513


Other intangible assets, net

55,557



58,689



54,729



53,561



12,562


Cash value of bank owned life insurance

104,597



104,096



103,588



103,059



80,007


Deferred income taxes, net

33,295



35,126



38,217



40,240



28,677


Other assets

97,497



88,397



93,009



98,324



70,001


Total assets

$

11,656,275



$

11,443,515



$

11,428,994



$

11,190,697



$

8,022,828












Liabilities










Deposits










Noninterest-bearing

$

2,753,173



$

2,520,016



$

2,333,992



$

2,356,420



$

1,867,900


Interest-bearing

7,047,702



7,129,297



6,847,371



6,405,173



4,578,265


Total deposits

9,800,875



9,649,313



9,181,363



8,761,593



6,446,165


Federal funds purchased and securities sold under agreements to repurchase

4,259



20,384



14,071



11,002



23,270


Other borrowings

151,454



151,774



656,831



862,136



555,535


Subordinated deferrable interest debentures

89,529



89,187



88,986



88,646



85,881


FDIC loss-share payable, net

18,834



19,487



18,740



18,716



9,255


Other liabilities

95,740



57,023



64,026



76,708



33,778


Total liabilities

10,160,691



9,987,168



10,024,017



9,818,801



7,153,884












Shareholders' Equity










Preferred stock










Common stock

49,126



49,015



49,012



49,012



39,820


Capital stock

1,053,190



1,051,584



1,050,752



1,049,283



559,040


Retained earnings

412,005



377,135



338,350



301,656



296,366


Accumulated other comprehensive income (loss), net of tax

(1,178)



(4,826)



(16,576)



(12,571)



(10,823)


Treasury stock

(17,559)



(16,561)



(16,561)



(15,484)



(15,459)


Total shareholders' equity

1,495,584



1,456,347



1,404,977



1,371,896



868,944


Total liabilities and shareholders' equity

$

11,656,275



$

11,443,515



$

11,428,994



$

11,190,697



$

8,022,828












Other Data










Earning assets

$

10,563,571



$

10,348,393



$

10,340,558



$

10,110,983



$

7,393,048


Intangible assets

556,865



562,123



560,333



558,325



221,075


Interest-bearing liabilities

7,292,944



7,390,642



7,607,259



7,366,957



5,242,951


Average assets

11,423,677



11,307,980



11,204,504



8,529,035



7,823,451


Average common shareholders' equity

1,478,462



1,428,341



1,395,479



974,494



849,346


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information

Table 4


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Allowance for Loan Losses










Balance at beginning of period

$

28,819



$

28,116



$

31,532



$

26,200



$

25,791












Provision for loan losses

3,408



3,661



2,095



9,110



1,801












Charge-offs

5,379



4,430



8,112



5,717



2,872


Recoveries

1,811



1,472



2,601



1,939



1,480


Net charge-offs (recoveries)

3,568



2,958



5,511



3,778



1,392












Ending balance

$

28,659



$

28,819



$

28,116



$

31,532



$

26,200












Net  Charge-off Information




















Charge-offs










Commercial, financial and agricultural

$

2,004



$

2,489



$

6,121



$

3,744



$

1,449


Real estate - construction and development

25



7



265



20




Real estate - commercial and farmland

1,253



169



27





142


Real estate - residential

20



76



293



204



198


Consumer installment

1,893



1,465



923



839



962


Purchased loans

184



224



483



910



121


Purchased loan pools










Total charge-offs

5,379



4,430



8,112



5,717



2,872












Recoveries










Commercial, financial and agricultural

1,065



927



939



1,247



656


Real estate - construction and development

1



3



1



2



114


Real estate - commercial and farmland

4



7



134



11



24


Real estate - residential

104



91



44



29



182


Consumer installment

164



137



178



117



67


Purchased loans

473



307



1,305



533



437


Purchased loan pools










Total recoveries

1,811



1,472



2,601



1,939



1,480












Net charge-offs (recoveries)

$

3,568



$

2,958



$

5,511



$

3,778



$

1,392












Non-Performing Assets










Nonaccrual loans (excluding purchased loans)

$

17,633



$

17,952



$

15,986



$

16,813



$

14,420


Nonaccrual purchased loans

23,846



24,107



27,764



33,557



15,940


Nonaccrual purchased loan pools

400





4,696



2,197




Other real estate owned

6,014



7,218



9,375



8,003



9,171


Purchased other real estate owned

10,857



9,535



7,692



7,272



6,723


Accruing loans delinquent 90 days or more (excluding purchased loans)

3,676



4,222



2,863



7,421



2,497


Accruing purchased loans delinquent 90 days or more










Total non-performing assets

$

62,426



$

63,034



$

68,376



$

75,263



$

48,751












Asset Quality Ratios










Non-performing assets as a percent of total assets

0.54

%


0.55

%


0.60

%


0.67

%


0.61

%

Net charge-offs as a percent of average loans (annualized)

0.17

%


0.14

%


0.26

%


0.23

%


0.09

%

Net charge-offs, excluding purchased loans as a percent of average loans (annualized)

0.27

%


0.21

%


0.44

%


0.26

%


0.14

%

 

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Loans by Type










Legacy loans










Commercial, financial and agricultural

$

1,382,907



$

1,316,359



$

1,422,152



$

1,446,857



$

1,387,437


Real estate - construction and development

676,563



671,198



641,830



672,155



631,504


Real estate - commercial and farmland

1,894,937



1,814,529



1,804,265



1,640,411



1,636,654


Real estate - residential

1,365,482



1,403,000



1,275,201



1,245,370



1,080,028


Consumer installment

436,469



455,371



399,858



375,722



316,363


Total legacy loans

$

5,756,358



$

5,660,457



$

5,543,306



$

5,380,515



$

5,051,986


Purchased loans










Commercial, financial and agricultural

$

327,972



$

372,686



$

413,365



$

397,517



$

64,612


Real estate - construction and development

239,413



227,900



219,882



268,443



48,940


Real estate - commercial and farmland

1,280,515



1,337,859



1,399,174



1,428,490



465,870


Real estate - residential

597,735



623,199



649,352



679,205



236,453


Consumer installment

26,636



27,188



29,687



38,855



2,712


Total purchased loans

$

2,472,271



$

2,588,832



$

2,711,460



$

2,812,510



$

818,587


Purchased loan pools










Real estate - residential

$

253,710



$

262,625



$

274,752



$

297,509



$

319,598


Total purchased loan pools

$

253,710



$

262,625



$

274,752



$

297,509



$

319,598


Total loan portfolio










Commercial, financial and agricultural

$

1,710,879



$

1,689,045



$

1,835,517



$

1,844,374



$

1,452,049


Real estate - construction and development

915,976



899,098



861,712



940,598



680,444


Real estate - commercial and farmland

3,175,452



3,152,388



3,203,439



3,068,901



2,102,524


Real estate - residential

2,216,927



2,288,824



2,199,305



2,222,084



1,636,079


Consumer installment

463,105



482,559



429,545



414,577



319,075


Total loans

$

8,482,339



$

8,511,914



$

8,529,518



$

8,490,534



$

6,190,171












Troubled Debt Restructurings (excluding purchased loans)










Accruing troubled debt restructurings










Commercial, financial and agricultural

$

116



$

256



$

180



$

38



$

39


Real estate - construction and development

142



145



384



150



176


Real estate - commercial and farmland

2,954



2,863



3,817



4,531



4,606


Real estate - residential

8,240



6,043



6,558



6,299



6,547


Consumer installment

11



16



4



5



7


Total accruing troubled debt restructurings

$

11,463



$

9,323



$

10,943



$

11,023



$

11,375


Nonaccrual troubled debt restructurings










Commercial, financial and agricultural

$

138



$

138



$

208



$

330



$

224


Real estate - construction and development

2



2



6



30



7


Real estate - commercial and farmland

450



426



306



196



2,127


Real estate - residential

832



1,119



742



709



838


Consumer installment

63



69



92



102



93


Total nonaccrual troubled debt restructurings

$

1,485



$

1,754



$

1,354



$

1,367



$

3,289


   Total troubled debt restructurings (excluding purchased loans)

$

12,948



$

11,077



$

12,297



$

12,390



$

14,664


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information (continued)

Table 5


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Loans by Risk Grade










Legacy loans










Grade 1 - Prime credit

$

540,646



$

542,164



$

550,020



$

545,902



$

557,625


Grade 2 - Strong credit

587,622



523,101



645,612



660,495



673,591


Grade 3 - Good credit

2,372,115



2,408,128



2,289,584



2,211,703



2,050,717


Grade 4 - Satisfactory credit

2,088,813



2,047,688



1,939,518



1,820,884



1,676,308


Grade 5 - Fair credit

87,785



59,054



40,041



52,069



17,499


Grade 6 - Other assets especially mentioned

32,949



35,118



41,125



38,150



39,795


Grade 7 - Substandard

46,428



45,204



37,406



51,305



36,444


Grade 8 - Doubtful







7



7


Grade 9 - Loss










Total legacy loans

$

5,756,358



$

5,660,457



$

5,543,306



$

5,380,515



$

5,051,986


Purchased loans










Grade 1 - Prime credit

$

80,682



$

90,775



$

54,840



$

55,183



$

3,808


Grade 2 - Strong credit

84,904



84,617



132,454



139,683



97,448


Grade 3 - Good credit

677,718



656,289



463,307



449,317



243,730


Grade 4 - Satisfactory credit

1,428,353



1,586,377



1,828,090



1,908,143



367,997


Grade 5 - Fair credit

90,391



63,613



133,653



135,281



20,012


Grade 6 - Other assets especially mentioned

38,599



30,448



35,676



45,095



33,705


Grade 7 - Substandard

71,618



76,713



63,440



79,808



51,887


Grade 8 - Doubtful










Grade 9 - Loss

6










Total purchased loans

$

2,472,271



$

2,588,832



$

2,711,460



$

2,812,510



$

818,587


Purchased loan pools










Grade 3 - Good credit

$

253,310



$

262,625



$

270,056



$

295,312



$

318,696


Grade 7 - Substandard

400





4,696



2,197



902


Total purchased loan pools

$

253,710



$

262,625



$

274,752



$

297,509



$

319,598


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances

Table 6


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Earning Assets










Federal funds sold

$

31,291



$

28,755



$

15,074



$

203



$

9


Interest-bearing deposits in banks

467,379



373,068



283,604



151,332



147,481


Time deposits in other banks

10,221



10,961



11,557



254




Investment securities - taxable

1,186,896



1,138,981



1,117,517



839,772



777,310


Investment securities - nontaxable

24,136



29,962



31,641



26,626



48,455


Other investments

14,532



18,494



36,067



42,384



34,654


Loans held for sale

101,521



129,664



151,396



141,875



138,129


Loans

5,867,037



5,819,684



5,703,921



5,198,301



4,902,082


Purchased loans

2,359,280



2,402,610



2,499,393



1,107,184



842,509


Purchased loan pools

257,661



268,568



287,859



310,594



325,113


Total Earning Assets

$

10,319,954



$

10,220,747



$

10,138,029



$

7,818,525



$

7,215,742












Deposits










Noninterest-bearing deposits

$

2,545,043



$

2,570,783



$

2,320,851



$

1,973,910



$

1,780,738


NOW accounts

1,553,988



1,546,939



1,567,111



1,311,952



1,337,718


MMDA

2,677,015



2,590,194



2,440,086



1,950,601



1,970,571


Savings accounts

399,089



401,836



423,449



295,326



278,080


Retail CDs < $100,000

767,405



776,556



744,145



475,965



422,771


Retail CDs $100,000 and over

1,124,733



1,055,973



978,842



585,632



593,635


Brokered CDs

510,301



510,663



487,686



14,132




Total Deposits

9,577,574



9,452,944



8,962,170



6,607,518



6,383,513


Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

15,879



14,670



12,529



14,762



20,909


FHLB advances

6,257



101,337



513,460



703,177



371,556


Other borrowings

145,473



145,494



145,513



86,302



75,553


Subordinated deferrable interest debentures

89,343



89,135



88,801



86,085



85,701


Total Non-Deposit Funding

256,952



350,636



760,303



890,326



553,719


Total Funding

$

9,834,526



$

9,803,580



$

9,722,473



$

7,497,844



$

6,937,232


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)









Table 7


Three Months Ended


Mar


Dec


Sep


Jun


Mar

(dollars in thousands)

2019


2018


2018


2018


2018











Interest Income










Federal funds sold

$

179



$

155



$

72



$



$


Interest-bearing deposits in banks

3,099



1,906



1,520



723



716


Time deposits in other banks

51



58



61






Investment securities - taxable

9,043



8,686



8,792



6,321



5,207


Investment securities - nontaxable (TE)

197



247



258



226



408


Loans held for sale

1,152



1,618



1,566



1,315



1,210


Loans (TE)

77,322



73,594



73,178



63,908



58,771


Purchased loans

33,011



35,413



34,692



16,130



11,762


Purchased loan pools

1,933



2,151



2,059



2,267



2,424


Total Earning Assets

$

125,987



$

123,828



$

122,198



$

90,890



$

80,498












Accretion income (included above)

$

2,883



$

4,077



$

3,656



$

2,652



$

1,444












Interest Expense










Deposits










Noninterest-bearing deposits

$



$



$



$



$


NOW accounts

2,109



1,736



1,142



1,142



953


MMDA

9,047



7,991



5,885



3,953



3,526


Savings accounts

77



83



82



54



47


Retail CDs < $100,000

2,312



1,880



1,827



907



668


Retail CDs $100,000 and over

5,018



3,978



3,643



1,670



1,578


Brokered CDs

3,121



3,190



3,051



68




Total Deposits

21,684



18,858



15,630



7,794



6,772


Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

11



5



4



5



9


FHLB advances

44



568



2,745



3,383



1,457


Other borrowings

2,227



2,222



2,180



1,320



1,134


Subordinated deferrable interest debentures

1,568



1,542



1,522



1,445



1,339


Total Non-Deposit Funding

3,850



4,337



6,451



6,153



3,939


Total Funding

$

25,534



$

23,195



$

22,081



$

13,947



$

10,711












Net Interest Income (TE)

$

100,453



$

100,633



$

100,117



$

76,943



$

69,787


 

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Yields(1)









Table 8


Three Months Ended


Mar


Dec


Sep


Jun


Mar


2019


2018


2018


2018


2018











Earning Assets










Federal funds sold

2.32

%


2.14

%


1.89

%


0.00

%


0.00

%

Interest-bearing deposits in banks

2.69

%


2.03

%


2.13

%


1.92

%


1.97

%

Time deposits in other banks

2.02

%


2.10

%


2.09

%


0.00

%


0.00

%

Investment securities - taxable

3.09

%


3.03

%


3.12

%


3.02

%


2.72

%

Investment securities - nontaxable (TE)

3.31

%


3.27

%


3.24

%


3.40

%


3.41

%

Loans held for sale

4.60

%


4.95

%


4.10

%


3.72

%


3.55

%

Loans (TE)

5.34

%


5.02

%


5.09

%


4.93

%


4.86

%

Purchased loans

5.67

%


5.85

%


5.51

%


5.84

%


5.66

%

Purchased loan pools

3.04

%


3.18

%


2.84

%


2.93

%


3.02

%

Total Earning Assets

4.95

%


4.81

%


4.78

%


4.66

%


4.52

%











Deposits










Noninterest-bearing deposits

0.00

%


0.00

%


0.00

%


0.00

%


0.00

%

NOW accounts

0.55

%


0.45

%


0.29

%


0.35

%


0.29

%

MMDA

1.37

%


1.22

%


0.96

%


0.81

%


0.73

%

Savings accounts

0.08

%


0.08

%


0.08

%


0.07

%


0.07

%

Retail CDs < $100,000

1.22

%


0.96

%


0.97

%


0.76

%


0.64

%

Retail CDs $100,000 and over

1.81

%


1.49

%


1.48

%


1.14

%


1.08

%

Brokered CDs

2.48

%


2.48

%


2.48

%


1.93

%


0.00

%

Total Deposits

0.92

%


0.79

%


0.69

%


0.47

%


0.43

%

Non-Deposit Funding










Federal funds purchased and securities sold under agreements to repurchase

0.28

%


0.14

%


0.13

%


0.14

%


0.17

%

FHLB advances

2.85

%


2.22

%


2.12

%


1.93

%


1.59

%

Other borrowings

6.21

%


6.06

%


5.94

%


6.13

%


6.09

%

Subordinated deferrable interest debentures

7.12

%


6.86

%


6.80

%


6.73

%


6.34

%

Total Non-Deposit Funding

6.08

%


4.91

%


3.37

%


2.77

%


2.89

%

Total Funding(2)

1.05

%


0.94

%


0.90

%


0.75

%


0.63

%