Ameris Bancorp Announces Financial Results For Second Quarter 2019

Company Release - 7/26/2019 7:01 AM ET

JACKSONVILLE, Fla., July 26, 2019 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $38.9 million, or $0.82 per diluted share, for the quarter ended June 30, 2019, compared with $9.4 million, or $0.24 per diluted share, for the quarter ended June 30, 2018.  The Company reported adjusted net income of $45.2 million, or $0.96 per diluted share, for the quarter ended June 30, 2019, compared with $29.2 million, or $0.74 per diluted share, for the same period in 2018.  Adjusted net income excludes after-tax merger and conversion charges, executive retirement benefits, mortgage servicing right ("MSR") valuation adjustments, restructuring charges related to previously announced branch consolidations, loss on sale of bank premises and expenses related to hurricanes.

Ameris Bancorp logo. (PRNewsFoto/Ameris Bancorp)

For the year-to-date period ending June 30, 2019, the Company reported net income of $78.8 million, or $1.66 per diluted share, compared with $36.0 million, or $0.92 per diluted share, for the same period in 2018.  The Company reported adjusted net income of $87.8 million, or $1.85 per diluted share for the six months ended June 30, 2019, compared with $57.0 million, or $1.46 per diluted share, for the same period in 2018.  Adjusted net income for the year-to-date period excludes the same items listed above for the Company's quarter-to-date period.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "The positive financial results from the second quarter are reflective of the hard work and dedication of our bankers.  Strong momentum on integration, growing pipelines and unique market opportunities reinforce our commitment to an organic growth strategy."

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

  • Increase of 5.5% in tangible book value per share to $20.81 at June 30, 2019, compared with $19.73 at March 31, 2019
  • Improvement in adjusted efficiency ratio to 53.77%, compared with 55.12% in the first quarter of 2019 and 57.53% in the second quarter of 2018
  • Adjusted return on average assets of 1.56%, compared with 1.51% in the first quarter of 2019 and 1.38% in the second quarter of 2018
  • Adjusted return on average tangible common equity of 18.79%, compared with 18.82% in the first quarter of 2019 and 17.26% in the second quarter of 2018
  • Growth in adjusted net income of $16.0 million, representing a 55% increase over second quarter of 2018
  • Organic growth in loans of $581.4 million, or 28% annualized
  • Annualized net charge-offs of 0.07% of average total loans and 0.11% of average non-purchased loans
  • Improvement in nonperforming assets, decreasing to 0.51% of total assets
  • Repurchase of 296,335 shares under the Company's previously announced common stock repurchase program
  • Received required approvals to complete the acquisition of Fidelity Southern Corporation effective July 1, 2019

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

Adjusted Net Income Reconciliation









Three Months Ended


Six Months Ended


June 30,


June 30,

(dollars in thousands, except per share data)

2019


2018


2019


2018

Net income available to common shareholders

$

38,904



$

9,387



$

78,809



$

36,047










Adjustment items:








Merger and conversion charges

3,475



18,391



5,532



19,226


Executive retirement benefits



5,457





5,457


Restructuring charges





245




MSR valuation adjustment

1,460





1,460




Financial impact of hurricanes

50





(39)




Loss on sale of premises

2,800



196



3,719



779


Tax effect of adjustment items

(1,479)



(4,192)



(1,929)



(4,490)


After-tax adjustment items

6,306



19,852



8,988



20,972


Adjusted net income

$

45,210



$

29,239



$

87,797



$

57,019










Reported net income per diluted share

$

0.82



$

0.24



$

1.66



$

0.92


Adjusted net income per diluted share

$

0.96



$

0.74



$

1.85



$

1.46










Reported return on average assets

1.34

%


0.44

%


1.38

%


0.89

%

Adjusted return on average assets

1.56

%


1.38

%


1.54

%


1.40

%









Reported return on average common equity

10.27

%