UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):  July 24, 2015

 

Ameris Bancorp
(Exact Name of Registrant as Specified in Charter)

 

Georgia 001-13901 58-1456434
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of   Identification No.)
Incorporation)    

 

310 First Street, S.E., Moultrie, Georgia 31768
(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code:  (229) 890-1111

 

 
(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

The information contained in this Current Report on this Form 8-K (this “Report”), including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, the information contained in this Report shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

 

Item 2.02.Results of Operations and Financial Condition.

 

On July 24, 2015, Ameris Bancorp (the “Company”) issued a press release announcing its unaudited second quarter 2015 results. A copy of that press release is attached to this Report as Exhibit 99.1.

 

Item 7.01.Regulation FD Disclosure

 

A copy of the slide presentation that the Company will present during the earnings teleconference beginning at 10:00 a.m. EDT on July 24, 2015, is attached to this Report as Exhibit 99.2. The slide presentation is also available on the Company’s website, www.amerisbank.com, under the Investor Relations section.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Press release dated July 24, 2015.

 

99.2Slide Presentation dated July 24, 2015.

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  AMERIS BANCORP
     
  By: /s/ Dennis J. Zember Jr.
    Dennis J. Zember Jr.
    Executive Vice President and Chief Financial Officer

 

Dated: July 24, 2015

 

 
 

 

EXHIBIT INDEX

 

Exhibit No.   Exhibit
99.1   Press release dated July 24, 2015.
99.2   Slide Presentation dated July 24, 2015.

 

 



 

Exhibit 99.1

 

 

News Release

 

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

 

AMERIS BANCORP REPORTS FINANCIAL RESULTS FOR SECOND QUARTER 2015

 

July 24, 2015

 

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported operating net income of $12.3 million, or $0.38 per diluted share, for the quarter ended June 30, 2015, compared with $10.0 million, or $0.39 per diluted share, for the quarter ended June 30, 2014. For the year-to-date period ending June 30, 2015, the Company reported operating net income of $22.1 million, or $0.70 per diluted share, compared with $18.4 million, or $0.72 per share, for the same period in 2014. The earnings per share results for 2015 reflect an additional 5.3 million common shares outstanding. These shares were issued early in the first quarter of 2015 in the Company’s private placement, which was completed for the purposes of capitalizing the Company’s acquisitions that closed late in the second quarter of 2015.

 

Operating net income for the second quarter of 2015 excluded after-tax merger-related charges totaling approximately $3.7 million, or $0.11 per share, and a non-recurring after tax charge of $7.3 million, or $0.23 per share, related to an aggressive write-down on remaining non-performing assets. Commenting on the rationale for this credit charge, Edwin W. Hortman, Jr., President and CEO said, “Lingering credit costs have overshadowed the improvements we have made in our operating results for too long and depressed our earnings valuation.  The charge we recorded in the second quarter will allow us to manage the disposition of non-performing assets in an accelerated fashion with credit costs that are commensurate with our peer group.  Deploying the liquidity from the recent deals and achieving the cost savings we have projected will further improve our return on assets and return on equity and I do not want that overshadowed by outsized credit related costs.”

 

Including the merger and non-recurring credit charges, the Company reported net income of $1.3 million, or $0.04 per share, in the second quarter of 2015, compared with $8.1 million, or $0.32 per share, in the same quarter in 2014, and for the year-to-date period in 2015, the Company’s earnings totaled $11.1 million, or $0.35 per share, compared with $16.2 million, or $0.63 per share, in 2014.

 

Highlights of the Company’s performance and results for the second quarter of 2015 include the following:

 

·Successful purchase and data conversion of 18 retail branches, including approximately $644.7 million in deposits, in South Georgia and North Florida

 

·Completion of the acquisition of Merchants and Southern Bank (“M&S”) in Gainesville, Florida, with assets totaling $505.1 million

 

·Total loan growth (including mortgage loans held for sale) of $605.3 million in the second quarter of 2015

 

·Organic loan growth of $125.1 million, or 15.4% (annualized), during the second quarter of 2015

 

1
 

 

·Return on assets and return on average tangible equity, on an operating basis, of 1.11% and 12.83%, respectively

 

·Increase in total revenue to $64.9 million in the second quarter of 2015, compared with $54.4 million in the same quarter in 2014

 

·Tangible common equity to tangible assets of 7.46% at June 30, 2015, compared with 7.42% at December 31, 2014

 

·Noninterest income of $20.6 million, compared with $15.8 million in the second quarter of 2014

 

·Increase in net income from the Company’s total mortgage operations to $3.2 million, compared with $1.6 million in the same quarter in 2014

 

·Closed loan production of $9.5 million and total revenue of $2.6 million in the second quarter from the Company’s SBA division

 

Acquisition Activity

The Company closed the acquisition of M&S on May 22, 2015 and the branch acquisition on June 12, 2015. These acquisitions increased the Company’s total assets and earning assets by approximately 28% and the Company’s total deposits by approximately 30%. Initially, the acquisitions are detrimental to the Company’s mix of earning assets and net interest margin because the majority of the assets acquired were short-term. The following chart outlines the balances acquired at closing and the Company’s target mix of these earning assets over the coming quarters:

 

   Balances at closing (in millions)             
   M&S
Acquisition
   Branch
Acquisition
   Total   Initial
E/A mix
   Actual
6/30/15
   Target
9/30/15
   Target
12/31/15
 
Cash and short term assets   55    630    686    65.6%   31.8%   17.4%   5.5%
Investments   164    -    164    15.7%   24.1%   21.8%   19.4%
Loans   192    4    196    18.7%   44.1%   60.8%   75.1%
Earning Assets   411    635    1,046    100.0%   100.0%   100.0%   100.0%

 

The Company is initially concentrating the deployment of the funds in areas with little to no incremental overhead burden to effectively improve the efficiency ratio and maximize the earnings effect of the two acquisitions. Retention of some of the Company’s mortgage and SBA production, a more aggressive push for municipal lending assets and purchases of higher quality, adjustable-rate mortgage loan pools are the most likely strategies the Company will use to deploy this liquidity.

 

Fee income associated with the branch acquisition was a material part of the initial assumptions. Total deposits acquired declined by 24% from the announcement date to the closing date, but indications reflect that fee income will not decline at that high of a level. Management’s current estimate of fee income associated with the acquisition is approximately $16.0 million per year, slightly less than the Company’s initial expectation of $16.8 million per year.

 

Net Interest Income and Net Interest Margin

Net interest income (taxable equivalent) for the second quarter of 2015 totaled $41.3 million, an increase of $5.6 million, or 15.8%, compared with the $35.3 million reported for the second quarter of 2014. Impacts of the recently closed acquisitions in the second quarter were minimal at $1.4 million because of the timing of closing and due to 66% of the initial growth in earning assets being in lower yielding federal funds sold or short-term assets. By the end of the second quarter, the Company had improved the incremental asset mix, and management is confident that the net interest income targets originally projected can be achieved given better than expected yields and quicker deployment of the funds acquired.

 

2
 

 

Excluding the impact of accretion, net interest income (taxable equivalent) was $38.6 million, an increase of 6.64% compared with the first quarter of 2015 and 16.88% compared with the second quarter of 2014. Accretion income in the current quarter declined to $2.6 million, compared with $3.1 million in the first quarter of 2015, but was slightly higher as compared with the $2.5 million recorded in the second quarter of 2014. Higher levels of non-interest income resulted mostly from growth in average loans outstanding of approximately $199.9 million when compared to the first quarter of 2015. Average balances of covered loans continued to decline, falling by $16.3 million from the first quarter of 2015.

 

Yields on all loans (including purchased non-covered and covered loans and excluding accretion income) declined in the second quarter of 2015 to 4.86%, compared with 5.19% in the same quarter in 2014. Higher yielding covered loans as a percentage of total loans has declined from 13.9% in the second quarter of 2014 to only 7.9% for the current quarter of 2015. Additionally, some of the growth in the legacy portfolio has been in both municipal and adjustable mortgages that have a significantly better risk profile but lower yields than consolidated levels seen in the past.

 

Loan production in the second quarter of 2015 totaled $282.6 million, with weighted average yields of 4.47%, compared with $254.0 million and 4.55%, respectively, in the first quarter of 2015. Investment securities yields during the second quarter of 2015 were 2.61%, compared with 2.89% in the same quarter in 2014.

 

Total interest expense for the second quarter of 2015 was $3.5 million, compared with $3.3 million in the same quarter of 2014. Increases in total interest expense were driven primarily by increases in total deposits and other borrowings resulting from both acquisition activity and organic growth. Deposit costs of funds were only slightly lower during the second quarter of 2015 at 0.24%, compared with 0.29% during the second quarter of 2014. Yields on each deposit class were substantially unchanged over the past year except for MMDAs, which fell from 0.38% during the second quarter of 2014 to 0.31% in the second quarter of 2015. Management does not expect deposit costs or overall funding costs to decrease materially in the coming quarters given tightening liquidity and increasingly stronger forecasts for asset growth.

 

Non-interest Income

Non-interest income in the second quarter of 2015 improved to $20.6 million, an increase of $4.8 million, or 30.4%, compared with the same quarter in 2014. Continued growth and profitability in the Company’s mortgage operations provided most of the improvement, with revenue from mortgage operations increasing to $9.7 million, an increase of 40% compared with the same quarter of 2014. Total loan production increased to $285.6 million in the quarter, compared with $184.3 million in the second quarter of 2014, while spreads (gain on sale) were relatively unchanged at 3.67% in the current quarter compared with 3.56% in the same quarter of 2014.

 

Service charges on deposit accounts increased by $1.3 million to $7.2 million during the quarter, an increase of 22.3% compared with the same quarter in 2014.  Because of the late-quarter close of the recent acquisitions, increases in service charges related to the Company’s recent acquisitions totaled only $742,000 during the quarter.  Going forward, management estimates approximately $4.0 million of additional fee income on the two acquisitions.

 

Revenues from the Company’s SBA division totaled $2.6 million, compared with $1.9 million in the second quarter of 2014. Due to the excess liquidity obtained in the acquisitions as well as the preferential duration and yields, management decided to retain a portion of its SBA production, which resulted in unrecognized gains on guaranteed portions of new production of $675,000 during the current quarter. Total principal of closed loans in the second quarter of 2015 totaled $9.5 million, and the Company projects an additional $22.0 million of production for the third quarter of 2015.

 

3
 

 

Non-interest Expense

Excluding merger- and credit-related costs, non-interest expenses totaled $39.9 million in the second quarter of 2015, compared with $37.7 million in the first quarter of 2015 and $31.6 million in the second quarter of 2014. Substantially all of the increase in operating expenses in the second quarter of 2015 over the first quarter of the year relates to increases associated with higher revenues in the mortgage and SBA divisions, which totaled $1.9 million. Against the second quarter of 2014 and on the same basis, operating expenses have increased $8.3 million, which includes $2.1 million of higher costs in the mortgage and SBA divisions, $2.4 million associated with the additional branches acquired in the Company’s acquisition of The Coastal Bank on June 30, 2014 and approximately $1.4 million related to increased costs in information technology and customer support centers in anticipation of the acquisitions completed in the second quarter.

 

Impacts to overall operating expenses in the second quarter of 2015 associated with the recently closed acquisitions were limited to only $1.1 million. Five overlapping branches have been identified for consolidation, which is expected to save approximately $2.8 million per year. An additional $2.9 million of annual savings is anticipated to be in place shortly after the conversion of M&S late in the third quarter of 2015.

 

Salaries and benefits increased to $22.5 million in the current quarter of 2015, compared with $20.6 million in the first quarter of 2015 and $16.9 million in the same quarter in 2014. Increases in compensation costs against the first quarter reflect an increase of $889,000 in higher levels of commissions for mortgage and SBA personnel and the impact of staffing additions from the acquisition of The Coastal Bank in June 2014 and the acquisitions completed in 2015.

 

Non-provision credit resolution-related costs increased from $2.8 million in the second quarter of 2014 to $11.2 million in the second quarter of 2015. During the quarter, the Company recorded a non-recurring, after-tax charge of $7.3 million to aggressively mark certain non-performing assets in a manner that would facilitate quick disposition. The Company believes that normal credit costs for the Company are closer to $2.5 million going forward and that levels of non-performing and substandard assets should decline materially before year end.

 

Occupancy and equipment costs increased from $4.1 million in the second quarter of 2014 to $4.8 million in the second quarter of 2015, due to the increased number of branches that are now operated by the Company. Data processing and telecommunications expenses increased from $3.9 million in the second quarter of 2014 to $4.2 million in the second quarter of 2015.

 

Balance Sheet Trends

Total assets at June 30, 2015 were $5.21 billion, compared with $4.04 billion reported at December 31, 2014. The growth in total assets was driven by the acquisitions of M&S and 18 additional retail branches during the second quarter of 2015.

 

Loans, including loans held for sale, totaled $3.57 billion at June 30, 2015, compared with $2.90 billion at December 31, 2014. During the second quarter, organic growth in non-covered, non-purchased loans amounted to $172.2 million, or 34.5% on an annualized basis. Purchased, non-covered loans increased $434.2 million during the quarter, to $1.08 billion from $643.1 million at March 31, 2015. In addition to the loans acquired through the M&S and branch acquisitions, the Company purchased approximately $269.0 million of whole-loan, adjustable rate mortgage pools to deploy the excess cash received in the acquisitions.

 

Investment securities at the end of the quarter amounted to $871.5 million, or 19.8% of earning assets, compared with $552.1 million, or 15.5% of earning assets, at December 31, 2014.

 

At June 30, 2015, total deposits amounted to $4.51 billion, or 97.5% of total funding, compared with $3.43 billion and 95.8%, respectively, at December 31, 2014. Non-interest bearing deposits at the end of the current quarter were $1.28 billion, or 28.4% of total deposits, compared with $839.4 million, or 24.5%, at December 31, 2014.

 

Stockholders’ equity at June 30, 2015 totaled $486.8 million, compared with $366.0 million reported at December 31, 2014. The increase in stockholders’ equity was the result of the issuance of $114.9 million of common shares in the first quarter of 2015 and earnings of $11.1 million during the first six months of 2015. Tangible book value increased during the first six months of 2015, from $10.99 per share at December 31, 2014 to $11.81 per share at June 30, 2015. Tangible common equity as a percentage of tangible assets increased to 7.46% at the end of the second quarter of 2015, compared with 7.42% at the end of 2014.

 

4
 

 

Conference Call

The Company will host a teleconference at 10:00 a.m. EDT today (July 24, 2015) to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-877-504-1190 or 1-412-902-6630 for international participants and 1-855-669-9657 for Canada. The conference ID name is Ameris Bancorp.  A replay of the call will be available one hour after the end of the conference call until August 7, 2015. To listen to the replay, dial 1-877-344-7529 or 1-412-317-0088 for international participants and 1-855-669-9658 for Canada. The conference replay access code is 10069080. The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at www.amerisbank.com

 

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 103 locations in Georgia, Alabama, northern Florida and South Carolina.  

 

 

 

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management of Ameris Bancorp (the “Company”) uses these non-GAAP measures in its analysis of the Company’s performance. These measures are useful when evaluating the underlying performance and efficiency of the Company’s operations and balance sheet. The Company’s management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company’s management believes that investors may use these non-GAAP financial measures to evaluate the Company’s financial performance without the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

 

This news release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “estimate”, “expect”, “intend”, “anticipate” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements and are referred to the Company’s periodic filings with the Securities and Exchange Commission for a summary of certain factors that may impact the Company’s results of operations and financial condition.

 

5
 

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
EARNINGS                                   
                                    
Net Income Available to Common Shareholders  $1,308   $9,764   $10,580   $11,663   $8,130   $11,072   $16,194 
                                    
PER COMMON SHARE DATA                                   
Earnings per share available to common shareholders:                                   
Basic  $0.04   $0.32   $0.40   $0.44   $0.32   $0.35   $0.64 
Diluted  $0.04   $0.32   $0.39   $0.43   $0.32   $0.35   $0.63 
Cash Dividends per share  $0.05   $0.05   $0.05   $0.05   $-   $0.10   $0.05 
Book value per share (period end)  $15.12   $15.22   $13.67   $13.22   $12.83   $15.12   $12.83 
Tangible book value per share (period end)  $11.81   $13.01   $10.99   $10.68   $10.26   $11.81   $10.26 
Weighted average number of shares:                                   
Basic   32,184,355    30,442,998    26,771,636    26,773,033    25,180,665    31,318,487    25,162,604 
Diluted   32,520,453    30,796,148    27,090,293    27,160,886    25,633,130    31,652,557    25,615,069 
Period-end number of shares   32,195,089    32,182,143    26,773,863    26,774,402    26,771,821    32,195,089    26,771,821 
Market data:                                   
High closing price  $26.87   $26.55   $26.48   $24.04   $23.90   $26.87   $24.00 
Low closing price  $24.73   $22.75   $21.95   $21.00   $19.73   $22.75   $19.73 
Period end closing price  $25.29   $26.39   $25.64   $21.95   $21.56   $25.29   $21.56 
Average daily volume   107,413    105,152    111,473    79,377    79,038    106,301    90,963 
                                    
PERFORMANCE RATIOS                                   
Return on average assets   0.12%   0.97%   1.05%   1.17%   0.93%   0.52%   0.95%
Return on average common equity   1.07%   8.76%   11.57%   13.19%   10.53%   4.54%   10.73%
Earning asset yield (TE)   4.49%   4.79%   5.08%   4.96%   5.08%   4.63%   5.05%
Total cost of funds   0.36%   0.40%   0.43%   0.45%   0.42%   0.38%   0.43%
Net interest margin (TE)   4.14%   4.39%   4.64%   4.50%   4.65%   4.26%   4.61%
Non-interest income excluding securities transactions, as a percent of total revenue (TE)   31.51%   29.06%   26.50%   28.86%   28.87%   30.33%   27.02%
Efficiency ratio   92.74%   72.38%   72.75%   67.64%   73.05%   82.99%   71.76%
                                    
CAPITAL ADEQUACY (period end)                                   
Stockholders' equity to assets   9.35%   11.79%   9.07%   8.85%   8.64%   9.35%   8.64%
Tangible common equity to tangible assets   7.46%   10.26%   7.42%   7.27%   7.04%   7.46%   7.04%
                                    
EQUITY TO ASSETS RECONCILIATION                                   
Tangible common equity to tangible assets   7.46%   10.26%   7.42%   7.27%   7.04%   7.46%   7.04%
Effect of goodwill and other intangibles   1.89%   1.54%   1.65%   1.58%   1.61%   1.89%   1.61%
Equity to assets (GAAP)   9.35%   11.79%   9.07%   8.85%   8.64%   9.35%   8.64%
                                    
OTHER PERIOD-END DATA                                   
Banking Division FTE   1,122    852    853    867    888    1,122    888 
Mortgage Division FTE   191    170    174    176    175    191    175 
Total Ameris Bancorp FTE Headcount   1,313    1,022    1,027    1,043    1,063    1,313    1,063 
                                    
Assets per Banking Division FTE  $4,640   $4,874   $4,733   $4,613   $4,474   $4,640   $4,474 
Branch locations   103    73    73    74    74    103    74 
Deposits per branch location  $43,801   $47,674   $47,002   $45,583   $45,798   $43,801   $45,798 

  

6
 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
INCOME STATEMENT                                   
                                    
Interest income                                   
Interest and fees on loans  $39,838   $38,618   $41,235   $39,610   $35,297   $78,456   $69,766 
Interest on taxable securities   3,747    3,153    3,114    3,034    2,953    6,900    5,938 
Interest on nontaxable securities   462    469    483    496    312    931    647 
Interest on deposits in other banks   177    124    66    46    45    301    124 
Interest on federal funds sold   5    4    2    -    -    9    5 
Total interest income   44,229    42,368    44,900    43,186    38,607    86,597    76,480 
                                    
Interest expense                                   
Interest on deposits  $2,264   $2,280   $2,560   $2,540   $2,205   $4,544   $4,388 
Interest on other borrowings   1,277    1,256    1,334    1,514    1,138    2,533    2,344 
Total interest expense   3,541    3,536    3,894    4,054    3,343    7,077    6,732 
                                    
Net interest income   40,688    38,832    41,006    39,132    35,264    79,520    69,748 
                                    
Provision for loan losses   2,656    1,069    888    1,669    1,365    3,725    3,091 
                                    
Net interest income after provision for loan losses  $38,032   $37,763   $40,118   $37,463   $33,899   $75,795   $66,657 
                                    
Noninterest income                                   
Service charges on deposit accounts  $7,151   $6,429   $6,522   $6,659   $5,847   $13,580   $11,433 
Mortgage banking activity   9,727    8,083    6,476    7,498    6,944    17,810    12,012 
Other service charges, commissions and fees   829    668    643    690    662    1,497    1,314 
Gain(loss) on sale of securities   10    12    -    132    -    22    6 
Other non-interest income   2,909    2,383    2,721    2,922    2,366    5,292    3,808 
Total noninterest income   20,626    17,575    16,362    17,901    15,819    38,201    28,573 
                                    
Noninterest expense                                   
Salaries and employee benefits   22,465    20,632    19,316    20,226    16,942    43,097    34,336 
Occupancy and equipment expenses   4,809    4,554    4,717    4,669    4,071    9,363    8,135 
Data processing and telecommunications expenses   4,214    4,260    4,229    3,928    3,940    8,474    7,394 
Credit resolution related expenses (1)   11,240    3,161    5,290    3,186    2,840    14,401    5,030 
Advertising and marketing expenses   833    641    847    594    718    1,474    1,428 
Amortization of intangible assets   630    630    662    698    437    1,260    970 
Merger and conversion charges   5,712    15    67    551    2,872    5,727    3,322 
Other non-interest expenses   6,961    6,934    6,605    4,727    5,498    13,895    9,942 
Total noninterest expense   56,864    40,827    41,733    38,579    37,318    97,691    70,557 
                                    
Income before income taxes  $1,794   $14,511   $14,747   $16,785   $12,400   $16,305   $24,673 
                                    
Income tax expense   486    4,747    4,167    5,122    4,270    5,233    8,193 
                                    
Net income  $1,308   $9,764   $10,580   $11,663   $8,130   $11,072   $16,480 
                                    
Preferred stock dividends   -    -    -    -    -    -    286 
                                    
Net income available to common shareholders  $1,308   $9,764   $10,580   $11,663   $8,130   $11,072   $16,194 
                                    
Diluted earnings available to common shareholders   0.04    0.32    0.39    0.43    0.32    0.35    0.63 

 

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

 

7
 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun. 
   2015   2015   2014   2014   2014 
                     
PERIOD-END BALANCE SHEET                         
                          
Assets                         
Cash and due from banks  $115,413   $80,142   $78,036   $69,421   $80,986 
Federal funds sold and interest bearing balances   239,804    126,157    92,323    40,165    44,800 
Investment securities available for sale, at fair value   862,154    610,330    541,805    529,509    535,630 
Other investments   9,322    8,636    10,275    12,687    10,971 
Mortgage loans held for sale   108,829    73,796    94,759    110,059    81,491 
                          
Loans, net of unearned income   2,171,600    1,999,420    1,889,881    1,848,759    1,770,059 
Purchased, non-covered loans (excluding loan pools)   808,313    643,092    674,239    673,724    702,131 
Purchased, non-covered loan pools   268,984    -    -    -    - 
Covered loans   209,598    245,745    271,279    313,589    331,250 
Less allowance for loan losses   (21,658)   (21,852)   (21,157)   (22,212)   (22,254)
Loans, net   3,436,837    2,866,405    2,814,242    2,813,860    2,781,186 
                          
Other real estate owned   22,567    32,339    33,160    35,320    35,373 
Purchased, non-covered other real estate owned   13,112    13,818    15,585    13,660    16,598 
Covered other real estate owned   12,626    16,089    19,907    28,883    38,426 
Total other real estate owned   48,305    62,246    68,652    77,863    90,397 
                          
Premises and equipment, net   124,916    98,292    97,251    98,752    99,495 
Goodwill   87,367    63,547    63,547    58,879    58,903 
Other intangibles, net   19,189    7,591    8,221    9,114    9,812 
FDIC loss sharing receivable   14,957    23,312    31,351    38,233    49,180 
Cash value of bank owned life insurance   59,552    59,212    58,867    58,217    57,864 
Other assets   79,089    73,238    77,748    82,649    72,420 
Total assets  $5,205,734   $4,152,904   $4,037,077   $3,999,408   $3,973,135 
                          
Liabilities                         
Deposits:                         
Noninterest-bearing  $1,280,174   $967,015   $839,377   $816,517   $790,798 
Interest-bearing   3,231,373    2,513,216    2,591,772    2,556,602    2,598,237 
Total deposits   4,511,547    3,480,231    3,431,149    3,373,119    3,389,035 
Federal funds purchased & securities sold under agreements to repurchase   75,066    55,520    73,310    32,351    51,109 
Other borrowings   39,000    43,851    78,881    147,409    100,293 
Other liabilities   24,026    17,952    22,384    27,615    24,457 
Subordinated deferrable interest debentures   69,325    65,567    65,325    65,084    64,842 
Total liabilities   4,718,964    3,663,121    3,671,049    3,645,578    3,629,736 
                          
Stockholders' equity                         
Preferred stock  $-   $-   $-   $-   $- 
Common stock   33,609    33,593    28,159    28,158    28,155 
Capital surplus   336,212    335,578    225,015    224,142    222,550 
Retained earnings   126,265    126,566    118,412    109,170    100,185 
Accumulated other comprehensive income/(loss)   3,072    6,353    6,098    3,974    4,123 
Less treasury stock   (12,388)   (12,307)   (11,656)   (11,614)   (11,614)
Total stockholders' equity   486,770    489,783    366,028    353,830    343,399 
Total liabilities and stockholders' equity  $5,205,734   $4,152,904   $4,037,077   $3,999,408   $3,973,135 
                          
Other Data                         
Earning Assets   4,400,298    3,698,540    3,564,286    3,515,805    3,465,361 
Intangible Assets   106,556    71,138    71,768    67,993    68,715 
Interest Bearing Liabilities   3,414,764    2,678,154    2,809,288    2,801,446    2,814,481 
Average Assets   4,464,558    4,079,750    4,011,128    3,969,893    3,494,466 
Average Common Stockholders' Equity   491,967    452,132    362,659    350,733    309,696 

 

8
 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
ASSET QUALITY INFORMATION (1)                                   
                                    
Allowance for loan losses                                   
Balance at beginning of period  $21,852   $21,157   $22,212   $22,254   $22,744   $21,157   $22,377 
                                    
Provision for loan loss (2)   1,800    1,100    650    1,573    997    2,900    2,498 
                                    
Charge-offs   2,452    855    2,071    1,975    1,973    3,307    3,579 
Recoveries   458    450    366    360    486    908    958 
Net charge-offs (recoveries)   1,994    405    1,705    1,615    1,487    2,399    2,621 
                                    
Ending balance  $21,658   $21,852   $21,157   $22,212   $22,254   $21,658   $22,254 
                                    
As a percentage of loans   1.00%   1.09%   1.12%   1.20%   1.26%   1.00%   1.26%
As a percentage of nonperforming loans   104.43%   104.85%   97.37%   97.38%   100.65%   104.43%   100.65%
                                    
Net charge-off information                                   
Charge-offs                                   
Commercial, financial & agricultural  $410   $392   $468   $191   $165   $802   $908 
Real estate – residential   464    268    368    406    752    732    933 
Real estate - commercial & farmland   1,162    12    1,033    953    769    1,174    1,302 
Real estate - construction & development   263    97    74    296    157    360    222 
Consumer installment   153    86    128    129    130    239    214 
Total charge-offs   2,452    855    2,071    1,975    1,973    3,307    3,579 
                                    
Recoveries                                   
Commercial, financial & agricultural   115    285    91    47    134    400    183 
Real estate - residential   27    57    71    52    48    84    131 
Real estate - commercial & farmland   17    15    91    31    9    32    152 
Real estate - construction & development   277    31    49    96    96    308    204 
Consumer installment   22    62    64    134    199    84    288 
Total recoveries   458    450    366    360    486    908    958 
                                    
Net charge-offs (recoveries)  $1,994   $405   $1,705   $1,615   $1,487   $2,399   $2,621 
                                    
Non-accrual loans (excluding purchased non-covered and covered loans)   20,740    20,841    21,728    22,810    22,111    20,740    22,111 
Non-accrual purchased non-covered loans   17,444    17,308    18,249    17,007    15,770    17,444    15,770 
Foreclosed assets (excluding purchased assets)   22,567    32,339    33,160    35,320    35,373    22,567    35,373 
Purchased, non-covered other real estate owned   13,112    13,818    15,585    13,660    16,598    13,112    16,598 
Accruing loans delinquent 90 days or more   -    -    1    -    -    -    - 
Total non-performing assets, excluding covered assets   73,863    84,306    88,723    88,797    89,852    73,863    89,852 
                                    
Non-performing assets as a percent of total assets   1.42%   2.03%   2.20%   2.22%   2.26%   1.42%   2.26%
Net charge offs as a percent of loans (Annualized)   0.37%   0.08%   0.36%   0.35%   0.34%   0.22%   0.30%

 

 

(1)Asset quality information is presented net of covered assets where the Company's risk exposure is limited substantially by loss sharing agreements with the FDIC.
(2)During 2014 and 2015, the Company recorded provision for loan loss expense to account for losses where the initial estimate of cash flows was found to be excessive on loans acquired in FDIC assisted acquisitions. These amounts are excluded from the calculation above but reflected in the Company's Consolidated Statement of Operations.

 

9
 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   For the quarter ended: 
   Jun.   Mar.   Dec.   Sept.   Jun. 
   2015   2015   2014   2014   2014 
Loans by Type                         
Commercial, financial & agricultural  $373,202   $334,917   $319,654   $334,783   $304,588 
Real estate - construction & development   205,019    178,568    161,507    154,315    149,346 
Real estate - commercial & farmland   1,010,195    947,274    907,524    882,160    850,000 
Real estate - residential   537,201    496,043    456,106    436,515    422,731 
Consumer installment   30,080    29,113    30,782    31,403    31,902 
Other   15,903    13,505    14,308    9,583    11,492 
Total Legacy (excluding purchased non-covered and covered)  $2,171,600   $1,999,420   $1,889,881   $1,848,759   $1,770,059 
                          
Commercial, financial & agricultural  $45,337   $36,258   $38,041   $38,077   $41,583 
Real estate - construction & development   75,302    53,668    58,362    60,262    64,084 
Real estate - commercial & farmland   404,588    291,760    306,706    296,790    311,748 
Real estate - residential   276,798    257,216    266,342    273,347    278,451 
Consumer installment   6,288    4,190    4,788    5,248    6,265 
Total Purchased non-covered (net of discounts)  $808,313   $643,092   $674,239   $673,724   $702,131 
                          
Commercial, financial & agricultural  $-   $-   $-   $-   $- 
Real estate - construction & development   -    -    -    -    - 
Real estate - commercial & farmland   -    -    -    -    - 
Real estate - residential   268,984    -    -    -    - 
Consumer installment   -    -    -    -    - 
Total Purchased non-covered loan pools  $268,984   $-   $-   $-   $- 
                          
Commercial, financial & agricultural  $17,666   $20,905   $21,467   $22,545   $25,209 
Real estate - construction & development   15,002    19,519    23,447    27,756    31,600 
Real estate - commercial & farmland   111,772    130,290    147,627    180,566    188,643 
Real estate - residential   64,982    74,847    78,520    82,445    85,518 
Consumer installment   176    184    218    277    280 
Total Covered (net of discounts)  $209,598   $245,745   $271,279   $313,589   $331,250 
                          
Total Loan Portfolio:                         
Commercial, financial & agricultural  $436,205   $392,080   $379,162   $395,405   $371,380 
Real estate - construction & development   295,323    251,755    243,316    242,333    245,030 
Real estate - commercial & farmland   1,526,555    1,369,324    1,361,857    1,359,516    1,350,391 
Real estate - residential   1,147,965    828,106    800,968    792,307    786,700 
Consumer installment   36,544    33,487    35,788    36,928    38,447 
Other   15,903    13,505    14,308    9,583    11,492 
Total Loans  $3,458,495   $2,888,257   $2,835,399   $2,836,072   $2,803,440 
                          
Troubled Debt Restructurings, excluding purchased non-covered and covered loans:                         
Accruing loan types:                         
Commercial, financial & agricultural  $278   $277   $290   $257   $257 
Real estate - construction & development   821    789    679    1,917    2,080 
Real estate - commercial & farmland   6,617    7,309    6,477    7,080    7,590 
Real estate - residential   4,702    4,513    5,258    7,973    7,335 
Consumer installment   49    47    55    34    75 
Total Accruing TDRs  $12,467   $12,935   $12,759   $17,261   $17,337 
                          
Non-accruing loan types:                         
Commercial, financial & agricultural  $29   $17   $13   $507   $465 
Real estate - construction & development   57    90    228    196    32 
Real estate - commercial & farmland   598    64    724    1,672    2,151 
Real estate - residential   783    736    1,485    759    1,044 
Consumer installment   82    90    73    93    51 
Total Non-accrual TDRs  $1,549   $997   $2,523   $3,227   $3,743 
                          
Total Troubled Debt Restructurings  $14,016   $13,932   $15,282   $20,488   $21,080 
                          
The following table presents the loan portfolio by risk grade, excluding purchased non-covered and covered loans:                         
Grade 10 - Prime credit  $181,933   $157,462   $128,577   $121,486   $110,842 
Grade 15 - Good credit   243,070    205,929    217,804    222,714    226,652 
Grade 20 - Satisfactory credit   1,104,747    1,012,733    947,948    908,054    866,356 
Grade 23 - Performing, under-collateralized credit   27,400    28,643    29,205    28,826    28,429 
Grade 25 - Minimum acceptable credit   544,664    513,009    488,187    484,200    450,363 
Grade 30 - Other asset especially mentioned   25,020    25,461    25,983    31,750    33,360 
Grade 40 - Substandard   44,766    56,179    52,176    51,640    54,047 
Grade 50 - Doubtful   -    4    1    88    10 
Grade 60 - Loss   -    -    -    1    - 
Total  $2,171,600   $1,999,420   $1,889,881   $1,848,759   $1,770,059 
                          
The following table presents the purchased, non-covered loan portfolio by risk grade:                         
Grade 10 - Prime credit  $10,123   $7,444   $7,394   $3,965   $4,344 
Grade 15 - Good credit   53,220    23,640    29,727    35,461    35,540 
Grade 20 - Satisfactory credit   362,304    206,480    208,686    180,702    186,690 
Grade 23 - Performing, under-collateralized credit   10,537    10,024    6,578    1,216    165 
Grade 25 - Minimum acceptable credit   300,411    337,386    361,155    399,729    416,671 
Grade 30 - Other asset especially mentioned   34,779    22,323    25,747    20,048    32,309 
Grade 40 - Substandard   36,887    35,743    34,889    32,565    26,412 
Grade 50 - Doubtful   52    52    63    38    - 
Grade 60 - Loss   -    -    -    -    - 
Total  $808,313   $643,092   $674,239   $673,724   $702,131 

10
 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
AVERAGE BALANCES                                   
                                    
Federal funds sold  $5,500   $5,500   $3,163   $500   $500   $5,500   $3,958 
Interest bearing deposits in banks   201,765    158,286    69,772    63,355    50,850    180,146    75,165 
Investment securities - taxable   600,176    485,922    461,800    451,563    418,498    543,365    414,895 
Investment securities - nontaxable   70,653    71,229    72,072    74,176    49,631    70,939    50,357 
Other investments   9,597    9,450    9,804    8,209    6,629    9,524    8,044 
Mortgage loans held for sale   81,823    75,831    97,406    83,751    54,517    75,281    51,884 
Loans   2,111,507    1,911,601    1,871,618    1,795,059    1,706,564    2,007,914    1,673,493 
Purchased non-covered loans   654,397    650,331    659,472    688,452    433,249    655,485    437,068 
Purchased non-covered loan pools   17,308    -    -    -    -    8,702    - 
Covered loans   246,422    262,693    299,981    324,498    354,766    259,157    367,045 
Total Earning Assets  $3,999,148    3,630,843    3,545,088    3,489,563   $3,075,204   $3,816,013   $3,081,909 
                                    
Noninterest bearing deposits  $1,088,249   $897,937   $850,879   $807,416   $680,058   $993,619   $673,313 
NOW accounts   745,709    756,795    786,511    743,352    691,353    751,221    683,321 
MMDA   981,143    857,346    840,397    861,197    770,047    919,586    759,657 
Savings accounts   188,767    163,624    156,663    155,559    145,528    176,265    144,325 
Retail CDs < $100,000   388,248    372,463    386,844    439,150    356,483    380,399    364,956 
Retail CDs > $100,000   378,137    383,962    401,934    370,166    360,703    381,033    361,279 
Brokered CDs   -    -    4,023    5,970    5,970    -    5,970 
Total Deposits   3,770,253    3,432,127    3,427,251    3,382,810    3,010,142    3,602,123    2,992,821 
                                    
FHLB advances   17,275    16,778    35,815    55,435    28,626    17,028    48,370 
Other borrowings   41,930    43,871    46,508    47,346    35,280    42,895    32,657 
Subordinated debentures   67,180    65,436    65,195    64,953    55,789    66,313    55,442 
Federal funds purchased and securities sold under agreements to repurchase   58,722    52,707    47,247    44,316    40,008    55,731    48,513 
Total Non-Deposit Funding   185,107    178,792    194,765    212,050    159,703    181,967    184,982 
                                    
Total Funding  $3,955,360   $3,610,919   $3,622,016   $3,594,860   $3,169,845   $3,784,090   $3,177,803 

 

11
 

  

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

  

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
INTEREST INCOME/EXPENSE                                   
                                    
INTEREST INCOME                                   
Federal funds sold  $5   $4   $2   $-   $-   $9   $5 
Interest bearing deposits in banks   177    124    66    47    45    301    124 
Investment securities - taxable   3,747    3,153    3,114    3,034    2,953    6,900    5,938 
Investment securities - nontaxable (TE)   624    633    652    670    421    1,257    873 
Mortgage loans held for sale   764    692    947    787    457    1,456    860 
Loans (TE)   25,629    22,418    23,294    21,790    21,996    48,047    42,643 
Purchased non-covered loans   10,328    11,840    12,612    12,610    7,933    22,168    14,798 
Purchased non-covered loan pools   149    -    -    -    -    149    - 
Covered loans   3,385    3,995    4,704    4,726    5,164    7,380    11,925 
Total Earning Assets  $44,808   $42,859   $45,391   $43,663   $38,969   $87,667   $77,166 
                                    
Accretion Income (included above)   2,635    3,097    4,280    2,964    2,572    5,732    5,299 
                                    
INTEREST EXPENSE                                   
Non-interest bearing deposits  $-   $-   $-   $-   $-   $-   $- 
NOW accounts   318    376    414    324    291    694    579 
MMDA   760    663    768    783    722    1,423    1,403 
Savings accounts   37    37    45    42    40    74    77 
Retail CDs < $100,000   488    513    553    596    478    1,001    967 
Retail CDs > $100,000   662    691    746    749    626    1,353    1,266 
Brokered CDs   -    -    34    47    48    -    96 
Total Deposits   2,265    2,280    2,560    2,541    2,205    4,545    4,388 
                                    
FHLB advances   16    15    26    51    26    31    63 
Other borrowings   346    366    379    558    415    712    823 
Subordinated debentures   866    832    887    866    666    1,698    1,374 
Federal funds purchased and securities sold under agreements to repurchase   48    43    41    39    31    91    84 
Total Non-Deposit Funding   1,276    1,256    1,333    1,514    1,138    2,532    2,344 
                                    
Total Funding  $3,541   $3,536   $3,893   $4,055   $3,343   $7,077   $6,732 
                                    
Net Interest Income (TE)  $41,267   $39,323   $41,498   $39,608   $35,626   $80,590   $70,434 

 

12
 

  

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

  

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
   2015   2015   2014   2014   2014   2015   2014 
                             
YIELDS (1)                                   
                                    
Federal funds sold   0.36%   0.29%   0.25%   0.00%   0.00%   0.33%   0.25%
Interest bearing deposits in banks   0.35%   0.32%   0.38%   0.29%   0.35%   0.34%   0.33%
Investment securities - taxable   2.50%   2.63%   2.68%   2.67%   2.83%   2.56%   2.89%
Investment securities - nontaxable   3.54%   3.60%   3.59%   3.58%   3.40%   3.57%   3.50%
Mortgage loans held for sale   3.75%   3.70%   3.86%   3.73%   3.36%   3.90%   3.34%
Loans   4.87%   4.76%   4.94%   4.82%   5.17%   4.83%   5.14%
Purchased non-covered loans   6.33%   7.38%   7.59%   7.27%   7.34%   6.82%   6.83%
Purchased non-covered loan pools   3.45%   0.00%   0.00%   0.00%   0.00%   3.45%   0.00%
Covered loans   5.51%   6.17%   6.22%   5.78%   5.84%   5.74%   6.55%
Total Earning Assets   4.49%   4.79%   5.08%   4.96%   5.08%   4.63%   5.05%
                                    
Noninterest bearing deposits   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%
NOW accounts   0.17%   0.20%   0.21%   0.17%   0.17%   0.19%   0.17%
MMDA   0.31%   0.31%   0.36%   0.36%   0.38%   0.31%   0.37%
Savings accounts   0.08%   0.09%   0.11%   0.11%   0.11%   0.08%   0.11%
Retail CDs < $100,000   0.50%   0.56%   0.57%   0.54%   0.54%   0.53%   0.53%
Retail CDs > $100,000   0.70%   0.73%   0.74%   0.80%   0.70%   0.72%   0.71%
Brokered CDs   0.00%   0.00%   3.35%   3.12%   3.22%   0.00%   3.24%
Total Deposits   0.24%   0.27%   0.30%   0.30%   0.29%   0.25%   0.30%
                                    
FHLB advances   0.37%   0.36%   0.29%   0.36%   0.36%   0.37%   0.26%
Other borrowings   3.31%   3.38%   3.23%   4.68%   4.72%   3.35%   5.08%
Subordinated debentures   5.17%   5.16%   5.40%   5.29%   4.79%   5.16%   5.00%
Federal funds purchased and securities sold under agreements to repurchase   0.33%   0.33%   0.34%   0.35%   0.31%   0.33%   0.35%
Total Non-Deposit Funding   2.76%   2.85%   2.72%   2.83%   2.86%   2.81%   2.56%
                                    
Total funding (3)   0.36%   0.40%   0.43%   0.45%   0.42%   0.38%   0.43%
                                    
Net interest spread   4.13%   4.39%   4.65%   4.52%   4.66%   4.26%   4.62%
                                    
Net interest margin   4.14%   4.39%   4.64%   4.50%   4.65%   4.26%   4.61%

 

(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.

 

13
 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
  2015   2015   2014   2014   2014   2015   2014 
Operating Net Income Reconciliation                            
                             
Net income available to common shareholders  $1,308   $9,764   $10,580   $11,663   $8,130   $11,072   $16,194 
                                    
Merger and conversion charges   5,712    15    67    551    2,872    5,727    3,322 
Non-recurring credit resolution related expenses   11,241    -    -    -    -    11,241    - 
Tax effect of non-recurring charges   (5,934)   (5)   (23)   (193)   (1,005)   (5,939)   (1,163)
Plus: After tax non-recurring charges   11,019    10    44    358    1,867    11,029    2,159 
                                    
Operating Net income   12,327    9,774    10,624    12,021    9,997    22,101    18,353 
                                    
Operating net income per diluted share:  $0.38   $0.32   $0.39   $0.44   $0.39   $0.70   $0.72 
Return on average assets   1.11%   0.97%   1.05%   1.20%   1.15%   1.04%   1.06%
Return on average common tangible equity   12.83%   10.40%   14.49%   16.87%   16.64%   11.46%   14.81%

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
  2015   2015   2014   2014   2014   2015   2014 
Net Interest Margin and Yields on Total Loans Excluding Accretion Reconciliation                            
                             
Total Interest Income (TE)  $44,808   $42,859   $45,391   $43,663   $38,969   $87,667   $77,166 
Accretion Income   2,635    3,097    4,280    2,964    2,572    5,732    5,299 
Total Interest Income (TE) Excluding Accretion  $42,173   $39,762   $41,111   $40,699   $36,397   $81,935   $71,867 
                                    
Total Interest Expense  $3,541   $3,536   $3,894   $4,054   $3,343   $7,077   $6,732 
Net Interest Income (TE) Excluding Accretion  $38,632   $36,226   $37,217   $36,645   $33,054   $74,858   $65,135 
                                    
Yield on Total Loans Excluding Accretion   4.86%   5.01%   5.05%   5.07%   5.19%   4.93%   5.18%
                                    
Net Interest Margin Excluding Accretion   3.87%   4.05%   4.17%   4.17%   4.31%   3.96%   4.26%

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
  2015   2015   2014   2014   2014   2015   2014 
Core Earnings Reconciliation                            
                             
Pre-tax operating profit/(loss)  $1,794   $14,511   $14,747   $16,785   $12,400   $16,305   $24,673 
Plus: Credit Related Costs                                   
Provision for loan losses   2,656    1,069    888    1,669    1,365    3,725    3,091 
(Gains)/Losses on the sale of legacy OREO   436    110    (228)   (3)   283    546    228 
Gains/(Losses) on the sale of covered OREO   194    20    344    (184)   249    214    367 
Problem loan and OREO expense   10,632    3,031    5,175    3,373    2,309    13,663    4,436 
Interest reversed (received) on non-accrual loans   413    156    (6)   94    71    569    317 
Total Credit-Related Costs   14,331    4,386    6,173    4,949    4,277    18,717    8,439 
                                    
Plus: Cconversion charges   5,712    15    67    551    2,872    5,727    3,322 
Less: Non-recurring gains                                   
Gains on sales of securities   (10)   (12)   -    (132)   -    (22)   (6)
Gains on sales of bank premises   -    -    -    (616)   -    -    - 
Other non-recurring adjustments   -    -    188    -    (870)   -    (870)
                                    
Pretax, Pre-provision earnings  $21,827   $18,900   $21,175   $21,537   $18,679   $40,727   $35,558 
                                    
As percentage of average assets, annualized   1.96%   1.88%   2.09%   2.15%   2.14%   1.84%   2.05%

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
  2015   2015   2014   2014   2014   2015   2014 
Recurring Operating Expenses                            
                             
Total Operating Expenses   56,864    40,827    41,733    38,579    37,318    97,691    70,557 
Less: Credit costs & non-recurring charges                                   
Gains/(Losses) on the sale of legacy OREO   (436)   (110)   228    3    (283)   (546)   (228)
Gains/(Losses) on the sale of covered OREO   (194)   (20)   (344)   184    (249)   (214)   (367)
Problem loan and OREO expense   (10,632)   (3,031)   (5,175)   (3,373)   (2,309)   (13,663)   (4,436)
Severance payments   -    -    (188)   -    -    -    - 
Conversion expenses   (5,712)   (15)   (67)   (551)   (2,872)   (5,727)   (3,322)
Gains/(Losses) on the sale of premises   -    -    -    616    -    -    - 
                                    
Recurring operating expenses  $39,890   $37,651   $36,187   $35,458   $31,605   $77,541   $62,204 

14
 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

 

   Three Months Ended   Six Months Ended 
   Jun.   Mar.   Dec.   Sept.   Jun.   Jun.   Jun. 
  2015   2015   2014   2014   2014   2015   2014 
Segment Reporting                            
                             
Banking Division:                                   
Net interest income  $36,806   $35,839   $38,045   $36,142   $33,345   $72,645   $66,273 
Provision for loan losses   2,456    927    737    994    1,365    3,383    3,091 
Noninterest income   9,262    8,780    8,595    8,932    7,449    18,042    14,810 
Noninterest expense:                                   
Salaries and employee benefits   15,675    15,362    14,196    14,819    12,509    31,037    26,086 
Occupancy   4,376    4,144    4,319    4,277    3,752    8,520    7,501 
Data Processing   3,913    4,011    3,901    3,619    3,590    7,924    6,916 
Other expenses   24,048    10,356    12,320    8,722    10,753    34,404    18,133 
Total noninterest expense   48,012    33,873    34,736    31,437    30,604    81,885    58,636 
Income before income taxes   (4,400)   9,819    11,167    12,643    8,825    5,419    19,356 
Income Tax   (1,682)   3,105    2,914    3,672    3,019    1,423    6,332 
Net income   (2,718)   6,714    8,253    8,971    5,806    3,996    13,024 
Preferred stock dividends   -    -    -    -    -    -    286 
Net income available to common shareholders  $(2,718)  $6,714   $8,253   $8,971   $5,806   $3,996   $12,738 
                                    
Retail Mortgage Division:                                   
Net interest income  $1,979   $1,545   $1,822   $1,636   $972   $3,524   $1,886 
Provision for loan losses   200    142    151    675    -    342    - 
Noninterest income   9,095    7,610    6,076    6,967    6,836    16,705    11,916 
Noninterest expense:                                   
Salaries and employee benefits   5,592    4,527    4,175    4,340    3,881    10,119    7,403 
Occupancy   396    380    373    368    300    776    601 
Data Processing   279    212    315    285    329    491    443 
Other expenses   1,150    932    828    735    1,233    2,082    2,008 
Total noninterest expense   7,417    6,051    5,691    5,728    5,743    13,468    10,455 
Income before income taxes   3,457    2,962    2,056    2,200    2,065    6,419    3,347 
Income Tax   1,210    1,037    720    770    723    2,247    1,171 
Net income   2,247    1,925    1,336    1,430    1,342    4,172    2,176 
Preferred stock dividends   -    -    -    -    -    -    - 
Net income available to common shareholders  $2,247   $1,925   $1,336   $1,430   $1,342   $4,172   $2,176 
                                    
Warehouse Lending:                                   
Net interest income  $1,179   $835   $752   $711   $367   $2,014   $553 
Provision for loan losses   -    -    -    -    -    -    - 
Noninterest income   383    273    237    168    166    656    250 
Noninterest expense:                                   
Salaries and employee benefits   99    127    84    69    56    226    102 
Occupancy   1    2    -    -    -    3    1 
Data Processing   20    33    11    21    14    53    22 
Other expenses   19    36    171    134    79    55    119 
Total noninterest expense   139    198    266    224    149    337    244 
Income before income taxes   1,423    910    723    655    384    2,333    559 
Income Tax   498    319    253    229    134    817    196 
Net income   925    592    470    426    250    1,516    363 
Preferred stock dividends   -    -    -    -    -    -    - 
Net income available to common shareholders  $925   $592   $470   $426   $250   $1,516   $363 
                                    
SBA Division:                                   
Net interest income  $724   $613   $387   $643   $580   $1,337   $1,036 
Provision for loan losses   -    -    -    -    -    -    - 
Noninterest income   1,886    912    1,454    1,834    1,368    2,798    1,597 
Noninterest expense:                                   
Salaries and employee benefits   1,099    616    861    998    496    1,715    745 
Occupancy   36    28    25    24    19    64    32 
Data Processing   2    4    2    3    7    6    13 
Other expenses   159    57    152    165    300    216    432 
Total noninterest expense   1,296    705    1,040    1,190    822    2,001    1,222 
Income before income taxes   1,314    820    801    1,287    1,126    2,134    1,411 
Income Tax   460    287    280    450    394    747    494 
Net income   854    533    521    837    732    1,387    917 
Preferred stock dividends   -    -    -    -    -    -    - 
Net income available to common shareholders  $854   $533   $521   $837   $732   $1,387   $917 
                                    
Total Consolidated:                                   
Net interest income  $40,688   $38,832   $41,006   $39,132   $35,264   $79,520   $69,748 
Provision for loan losses   2,656    1,069    888    1,669    1,365    3,725    3,091 
Noninterest income   20,626    17,575    16,362    17,901    15,819    38,201    28,573 
Noninterest expense:                                   
Salaries and employee benefits   22,465    20,632    19,316    20,226    16,942    43,097    34,336 
Occupancy   4,809    4,554    4,717    4,669    4,071    9,363    8,135 
Data Processing   4,214    4,260    4,229    3,928    3,940    8,474    7,394 
Other expenses   25,376    11,381    13,471    9,756    12,365    36,757    20,692 
Total noninterest expense   56,864    40,827    41,733    38,579    37,318    97,691    70,557 
Income before income taxes   1,794    14,511    14,747    16,785    12,400    16,305    24,673 
Income Tax   486    4,747    4,167    5,122    4,270    5,233    8,193 
Net income   1,308    9,764    10,580    11,663    8,130    11,072    16,480 
Preferred stock dividends   -    -    -    -    -    -    286 
Net income available to common shareholders  $1,308   $9,764   $10,580   $11,663   $8,130   $11,072   $16,194 

 

15



 

Exhibit 99.2

 

 

Ameris Bancorp 2 nd Quarter 2015 Earnings Presentation Edwin W. Hortman, Jr. – President & CEO Dennis J. Zember, Jr. – EVP & CFO

 
 

This presentation 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 . Tangible common equity and Tier 1 capital ratios are non - GAAP measures . The Company calculates the Tier 1 capital using current call report instructions . The Company’s management uses these measures to assess the quality of capital and believes that investors may find them useful in their evaluation of the Company . These capital measures may, or may not be necessarily comparable to similar capital measures that may be presented by other companies . This presentation may contain statements that constitute “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E 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 . Cautionary Statements

 
 

Achieving the metrics we projected improves ROA, ROTCE and Efficiency by considerable margins ▪ Deploy the liquidity in higher quality assets with little incremental overhead burden ▪ Achieve the cost savings we identified from branch closures upcoming conversion Current Focus Integrate Acquisitions & Achieve Announced Metrics M&A Opportunities Seeking opportunities in our larger markets that improve our franchise and operating results Avoid auctions as much as possible where the buyer doesn’t give any credit to our culture Earn a Peer Level Valuation on our Earnings Develop more consistency in our earnings Manage to higher ROAs and ROTCEs, lower efficiency ratios

 
 

2 nd Quarter Operating Results • Net Operating Income (excluding one time charges) of $ 12 . 3 million, up 23 . 3 % vs . 2 Q 14 • Operating EPS of $ 0 . 38 per share, down $ 0 . 01 per share from 2 Q 14 due to additional shares . • Total Revenue increased 19 . 2 % vs . year ago period • Spread income up 15 % vs . a year ago . • Non - interest income, driven by mortgage success, increased 30 . 4 % to $ 20 . 6 million • Core Operating Expenses up 26 . 3 % vs . 2 Q 14 due to Coastal Acquisition, IT and Support center spend and costs associated with LOB revenue improvement . • Organic loan growth rate of 15 . 4 % (annualized) vs . linked quarter • Total loan growth of $ 606 million . • Tangible Book Value per share of $ 11 . 81 per share compared to initial proforma of $ 11 . 74 for recent acquisitions 2Q15 2Q14 Chg 2Q15 2Q14 Chg Int Inc before Accretion 41,594$ 36,035$ 15% 80,865$ 71,181$ 14% Accretion income 2,635 2,573 2% 5,732 5,299 8% Interest Expense 3,541 3,343 6% 7,077 6,732 5% Net Interest Income 40,688 35,265 15% 79,520 69,748 14% Provision (1) 1,286 1,365 -6% 2,355 3,091 -24% Non-Interest Income 20,626 15,819 30% 38,201 28,573 34% Core Opex (1) 39,912 31,606 26% 77,563 62,205 25% Credit Costs, recurring 1,369 2,840 -52% 4,530 5,030 -10% Income before taxes 18,747 15,273 23% 33,273 27,995 19% Income tax expense 6,420 5,275 22% 11,172 9,356 19% Preferred Dividends - - 0% - 286 -100% Operating Net Income 12,327$ 9,998$ 23% 22,101$ 18,353$ 20% Earnings Per Share $0.38 $0.39 -3% $0.70 $0.72 -3% Avg Diluted Shares 32,520 25,633 27% 31,653 25,615 24% One-time charges 2Q15 2Q14 Chg 2Q15 2Q14 Chg Merger-related expenses 5,712$ 2,872 5,727 3,322$ Credit charge - Provision 1,370 - 1,370 - Credit charge - OREO 9,871 - 9,871 - Total 16,953 2,872 16,968 3,322 After tax effect 11,019$ 1,867 11,029 2,159$ Reported Net Income $ 1,308 8,131 -84% 11,072 16,194 -32% Reported EPS 0.04$ 0.32$ -87% 0.35$ 0.63$ -45% (1) - excludes amounts seen below related to one time charges Quarter to date results Year to date results

 
 

Revenues – 2Q15 10 . 2 % improvement in 2 Q revenues resulted from : • Growth in net i nterest i ncome of $ 1 . 9 million or 4 . 9 % increase over 1 Q 15 from steady yields on total loans, growth of $ 200 mm in average loans and advance purchases of securities in anticipation of acquisitions . • Mortgage and SBA revenues increased $ 3 . 5 million or 29 . 3 % over 1 Q 15 . $38.7 $47.6 $48.9 $54.6 $53.6 $53.8 $59.3 $67.4 $72.1 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q Proj 4Q Proj Total Quarterly FTE Revenue, excluding accretion (in millions) 2Q Improvement in T otal Revenue • 2 Q improvement in total revenue had minimal contribution from recent acquisitions . • Recent acquisitions are expected to contribute $ 8 . 1 million in incremental revenue in 3 Q 15 and an additional $ 12 . 8 million in 4 Q 15 . • Fee income on both acquisitions estimated to be approximately $ 20 . 3 million, annually . • Initial yield on incremental earning assets from acquisitions was only 1 . 38 % vs . target yield of 3 . 15 % - 3 . 25 % . Material Lift in Total Revenue Expected

 
 

Non - Interest Income – 2Q15 Earnings from Mortgage and SBA increased 73 % and totaled $ 4 . 0 million in 2 Q 15 vs . $ 2 . 3 million in 2 Q 14 . Earnings growing faster than revenue . 2Q15 1Q15 2Q14 Mortgage production (000's) 285,611 188,296 184,308 Mortgage GOS (1) - retail 3.67% 4.04% 3.56% Open Pipeline 115,890 110,856 86,218 SBA Production: 9,500 17,100 14,500 SBA sold loans 12,300 9,100 10,400 SBA GOS % 12% 12% 11% SBA Pipeline 41,000 67,000 14,400 • Service charges in 2 Q 15 up 22 % over 2 Q 14 • Mortgage non - interest income in 2 Q 15 up 35 % over 2 Q 14 • SBA non - interest income in 2 Q 15 up 38 % over 2 Q 14 • Recently closed acquisitions should have approximately 1 . 60 % non - interest income to average assets in only deposit related fees . 1 – GOS – “gain on sale” of loans 1.61% 1.75% 1.57% 1.45% 1.81% 1.80% 1.63% 1.72% 1.85% 1.0% 1.5% 2.0% 2Q 13 4Q 13 2Q 14 4Q 14 2Q 15 Non - Interest Income as a % of Average Assets $6.4 $5.9 $5.6 $6.9 $10.3 $12.0 $10.7 $11.8 $15.2 $0.0 $4.0 $8.0 $12.0 $16.0 2Q 13 4Q 13 2Q 14 4Q 14 2Q 15 Mortgage & SBA Revenues (in millions)

 
 

Expenses – 2Q15 • Expenses in LOBs up 33 % vs . last year . Revenue is up 48 % over same period . 55 % on incremental revenue . • Mortgage expenses up mostly in higher commissions . Additional hires have been made in Florida and around recent M&A transactions . • Warehouse LOB leverages existing relationships in mortgage . Still a lot of growth potential for this highly profitable and efficient LOB . • SBA aggressively recruiting experienced, high volume producers . Target is 12 - 15 bankers, currently have 9 bankers on staff . • Bank level opex up 25 % vs . 2 Q 14 but up only 1 . 3 % against 1 Q 15 . • 2 Q 15 opex includes approx . $ 800 k of opex related to M&S and BoA • Bank opex includes purchase of Coastal Bank as well as spend related to IT and Customer Support centers in recent quarters preparing for 2 nd Quarter M&A . • Expect $ 4 million in additional Opex related to 2 nd Quarter M&A in 3 Q and 4 Q . • Branch closings and integration savings at both banks total approx . $ 1 million per quarter . 1 – Core operating expenses exclude Problem loan and OREO costs as well as merger - related charges $20.0 $20.8 $22.5 $25.8 $24.9 $27.7 $29.4 $30.7 $31.1 $4.4 $4.5 $5.5 $4.8 $6.7 $7.1 $7.0 $7.0 $8.9 $0.0 $10.0 $20.0 $30.0 $40.0 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Source of Operating Expenses (in millions, excluding credit & merger costs) Bank Level Opex LOB Opex Bank Level Opex LOB Opex

 
 

Expenses – 2Q15 Change compared to: Expense 2Q15 1Q15 2Q14 1Q15 2Q14 Salaries (ex mortgage & SBA) $12,409 $11,556 $10,263 $854 $2,147 Against 1Q15, BoA and M&S salaries were $595,000 while customer support and I/T costs were $167,000. Against 2Q14, Coastal Salaries were an additional $1.37 million Incentive & FICA 3,676 3,242 1,900 $434 $1,776 Payroll taxes were down but incentive accruals were higher by approx $800k Mortgage Expense 7,556 6,249 5,892 $1,307 $1,664 Revenue is up $2.4 million against 1Q15 and up $4.3 million against 2Q14. SBA Expenses 1,296 705 822 $591 $474 Revenue is up $1.1 million against 1Q15 and up $662,000 against 2Q14. Recruited two new producers in 2Q15. DP & IT 4,214 4,260 3,940 ($46) $274 Steady costs in 2Q15 and against earlier quarters reflect lower costs in new contract offset by higher volumes/ adoption rate of electronic banking and debit. FDIC Insurance 783 783 739 $0 $44 Growth relates to Coastal Acquisition in year ago period. Expect an increase of approximately $210,000 related to recent acquisitions. Occupancy 4,809 4,554 4,071 $255 $738 Higher costs associated with Coastal acquisitions as well as upgraded systems and software for customer support. Printing & Postage $1,096 $1,060 $896 $36 $200 Steady levels in 2Q15 vs. 1Q15. Higher against 2Q14 due to Coastal Acquisition in June 2014.

 
 

Expenses – Credit Related Costs • Every NPA over $ 200 , 000 evaluated on a 90 - 120 day disposition value . • Includes reserve for expiring LSA’s and larger Covered assets • “Normal” range is a $ 9 . 2 million annual improvement over 2014 levels or $ 0 . 18 per share 1 – Credit costs include provision for loan losses and OREO related costs. $5.9 $6.8 $3.9 $4.2 $4.9 $6.2 $4.2 $13.9 $2.5 $- $4.0 $8.0 $12.0 $16.0 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Normal Credit Costs, Including Provision (in millions) • Removes the primary driver for inconsistent earnings • Payback period in 4 - 5 quarters using run - rate from previous 5 quarters . • ROA and ROTCE performance can track towards top quartile with normal credit costs . • 2016 forecasts are achievable with normal costs . Rationale for Credit Charge Formulation of One - time charge

 
 

Loans – 2Q15 Total Loan Growth of $ 606 . 3 million against linked quarter from : • Organic Growth during 2 Q 15 of $ 125 . 1 million or 15 . 4 % annualized • Growth of $ 191 . 5 million related to M&S acquisition • Growth of $ 269 . 0 million related to purchased whole loan mortgage pools . • Reclass of $ 15 . 5 million from expiring LSA agreements (out of covered into PNC) 1 – PNC – purchased, non - covered loans. 2 – combined yield includes transaction fees and interest earned. Loan Production Details Period Fixed Rate (2) Variable Rate (2) Total 2Q15 $ 233.9 4.49% $ 96.9 4.44% $ 330.8 4.48% 1Q15 $ 210.5 4.65% $ 103.8 4.74% $ 314.3 4.68% 2 Q14 $ 192.8 5.20% $ 105.9 4.61% $ 298.8 4.99% $1.98 $2.44 $2.48 $2.78 $2.81 $2.81 $2.87 $3.44 $1.0 $2.0 $3.0 $4.0 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Total Loans Oustanding (in billions)

 
 

Loans – Purchased Mortgage Pools 1 – PNC – purchased, non - covered loans. 2 – combined yield includes transaction fees and interest earned. Purchased mortgage pools have the following characteristics: • Seasoned pools of 5/1, 7/1 and 10/1 adjustable rate mortgages. • LTVs in the 60% range or below • Yields of 3.0% to 3.35% beat comparable mortgage backed yields by 75bps – 125bps. • No mark - to - market risk as rates rise versus a comparable mortgage backed portfolio Anticipate additional purchases of this product through the end of 2015. Modeling 3 – 4 year durations to reinvest the cash flows into higher yielding commercial assets. Balance Price Book Value Duration Yield LTV DTI FICO Pool 1 $41,308 103.0 $42,547 3.7 3.54% 59.5 38.8 759 Pool 2 $129,351 101.3 $131,129 3.5 3.61% 49.0 35.6 724 Pool 3 $93,100 102.4 $95,311 3.9 3.21% 71.4 36.7 747 Total $263,758 102.0 $268,987 3.7 3.46% 58.6 36.5 738

 
 

Deposits – 2Q15 Deposit mix has materially improved our interest rate risk profile . In the last 12 months, we have grown : • Approximately $ 489 million in NIB checking . • Approximately $ 740 million in total non - rate sensitive deposits Not all of the growth is in M&A . Organic growth accounts for $ 218 million or 44 % of the growth . • Non - rate sensitive deposits continue to climb, now at 53 . 7 % of total deposits • Percentage of fixed rate loans funded with non - rate sensitive deposits improved from 86 % at 2 Q 13 to 115 % at 2 Q 15 . $476 $669 $699 $791 $817 $839 $967 $1,280 $0 $400 $800 $1,200 $1,600 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Non - Interest Bearing Demand Deposits (in millions) 84% 88% 87% 97% 91% 98% 100% 115% 60% 80% 100% 120% 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 F/R Loans Funded with Non - Rate Sensitive Deposits Improved Sensitivity to Interest Rates Non - Rate Sensitive Deposits include NIB, NOW and Savings Accounts.

 
 

Capital and TBV – 2Q15 Combination of Capital Raise and 2 M&A deals: – Grew our Balance Sheet by 29% – Produced Higher TCE ratios – Resulted in Higher Tangible Book Value – Improved Regulatory Capital Ratios at Ameris Bank Recent acquisitions and capital raise accretive to TBV by 5 . 1 % . $10.23 $10.39 $10.31 $10.26 $10.68 $10.99 $13.01 $11.81 $6.0 $8.5 $11.0 $13.5 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Tangible Book Value 6.83% 7.53% 7.04% 7.27% 7.42% 10.26% 7.46% 4.0% 8.0% 12.0% 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Tangible Common Equity to Tangible Assets Looking Back:

 
 

• 25 % - 35 % discount to our peer group . • The overhangs causing discounted P/E are behind us . • Lift in operating performance ratios and lower volatility in earnings will drive higher multiples . Investment Rationale Discounted P/E valuation • Top Quartile ROA and ROTCE once we deploy the liquidity and achieve the cost savings projected . • Diversified revenue sources ( 66 % spread, 34 % non - interest income) . Operating Performance M&A Opportunities • Disciplined Acquirer • Announced/Executed low risk deals • Enough conversations underway so that we can avoid auctions • Strong Capital Ratios support additional M&A • Regulatory reputation presents no hurdle

 

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