Ameris Bancorp Announces 20% Increase In Operating Results For First Quarter 2017

MOULTRIE, Ga., April 21, 2017 /PRNewswire/ — Ameris Bancorp (Nasdaq: ABCB) (the “Company”) today reported net income of $21.2 million, or $0.59 per diluted share, for the quarter ended March 31, 2017, compared with $12.3 million, or $0.37 per diluted share, for the quarter ended March 31, 2016.  Commenting on the Company’s quarterly results, Edwin W. Hortman, Jr., the Company’s President and Chief Executive Officer, said, “We delivered another quarter of consistent financial results with very little noise.  Generally, the first quarter is our most challenging quarter, but control of operating expenses and double digit growth in year-over-year revenue led us to solid results.  Our pipelines are very strong and I expect reliable growth in earnings through the remainder of 2017.”

The Company reported operating net income of $21.6 million, or $0.60 per diluted share, for the quarter ended March 31, 2017, compared with $16.4 million, or $0.50 per diluted share, for the first quarter of 2016.  Operating net income for the first quarter of 2017 and 2016 excludes certain after-tax costs associated with acquisitions and sales of premises, as shown below.  Operating returns on average assets and average tangible common equity were 1.27% and 15.84%, respectively, for the first quarter of 2017, compared with 1.17% and 15.37%, respectively, for the same quarter of 2016.  

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

Three Months Ended

Adjusted Operating Net Income Reconciliation

Mar 17

Mar 16

Net income available to common shareholders

$       21,153

$       12,317

Merger and conversion charges

402

6,359

Losses (gains) on sale of premises

295

(77)

Tax effect of management-adjusted charges

(244)

(2,199)

Plus: After tax management-adjusted charges

453

4,083

       Adjusted Operating Net Income

$       21,606

$       16,400

Reported Return on Average Assets

1.24%

0.88%

Adjusted Operating Return on Average Assets

1.27%

1.17%

Highlights of the Company’s performance and results for the first quarter of 2017 include the following:

  • Operating return on average assets of 1.27% and return on average tangible equity of 15.84%
  • Increase in tangible book value per share to $16.57, compared with $14.42 per share at December 31, 2016
  • Organic loan growth of $98.5 million for the quarter, reflecting an annualized growth rate of 8.5%
  • Growth in non-interest bearing demand deposits of $81.3 million for the quarter, reflecting an annualized growth rate of 21.0%
  • 15.5% increase in total revenue, to $86.3 million, in the first quarter of 2017, compared with total revenue of $74.7 million in the first quarter of 2016
  • 12% improvement in the Company’s net overhead ratio from 1.79% in the first quarter of 2016 to 1.57% in the first quarter of 2017
  • Improvement in operating efficiency ratio, on a tax-equivalent basis, to 59.67% in the first quarter of 2017, compared with 65.4% in the same quarter in 2016
  • Improvement in net interest margin to 3.97% from 3.95% in the fourth quarter of 2016
  • Successful public offering of 2,012,500 shares of the Company’s common stock to prepare for future growth
  • Completion of public offering of $75 million of fixed-to-floating rate subordinated notes

Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis for the first quarter of 2017 totaled $62.1 million, compared with $51.2 million for the first quarter of 2016, an increase of $10.9 million, or 21.4%.  The Company’s net interest margin increased during the quarter to 3.97%, compared with 3.95% during the fourth quarter of 2016, but declined from 4.03% for the first quarter of 2016.  Accretion income for the first quarter of 2017 was $2.8 million, compared with $2.9 million in the first quarter of 2016.  Excluding the effect of accretion on purchased assets, the Company’s net interest margin was 3.79% in the first quarter of 2017, compared with 3.73% in the fourth quarter of 2016 and 3.80% in the first quarter of 2016.  During the first quarter of 2017, the Company experienced an increase in the margin of approximately 0.07% related to activity in the premium finance division.  The capital raise and debt offering completed during the first quarter of the year negatively impacted the margin by approximately 0.02%.  The Company’s improved asset mix with more concentrations in loans outstanding improved the margin by approximately 0.01%.

Yields on earning assets in the first quarter of 2017 were 4.38%, compared with 4.36% in the first quarter of 2016.  Interest income on loans on a tax-equivalent basis increased during the first quarter of 2017 to $62.8 million, compared with $59.4 million in the fourth quarter of 2016 and $49.8 million in the first quarter of 2016.  Yields on the funds invested in purchased mortgage pools were 2.84% during the first quarter of 2017, compared with 3.30% during the same period in 2016.  Excluding accretion income, yields on all loans were 4.56% in the first quarter of 2017, an increase of 0.05% from the fourth quarter of 2016, reflecting success in the Company’s pricing efforts on new and renewed credits in the current interest rate environment.

Total interest expense for the first quarter of 2017 was $6.5 million, compared with $4.1 million for the same quarter of 2016.  This increase in total interest expense was driven by increases in total deposits and other borrowings.  Deposit costs increased slightly, from 0.23% in the first quarter of 2016 to 0.28% in the first quarter of 2017.  Continued improvement in the Company’s mix of deposits, primarily toward non-interest bearing deposits, has allowed for more aggressive retention efforts on money market deposit accounts and CDs without negatively impacting overall deposit costs.  Non-interest bearing deposits were 29.2% of the total average deposits during the first quarter of 2017, compared with 27.9% for the first quarter of 2016.  During the first quarter of 2017, the average balance of Federal Home Loan Bank advances increased significantly as the Company used those proceeds to fund loans generated by the Company’s new premium finance division.

Non-interest Income
Non-interest income in the first quarter of 2017 was $25.7 million, an increase of $1.4 million, or 5.8%, compared with the same quarter in 2016.  Service charges in the first quarter of 2017 were $10.6 million, an increase of $648,000, or 6.5%, compared with the same quarter in 2016.  Growth in service charge-related revenues on commercial and consumer accounts was responsible for much of the increase in service charges, while NSF fee income was flat. 

The Company’s mortgage divisions continued to make strides in revenues and net income. Revenue in the retail mortgage group totaled $13.5 million in the first quarter of 2017, an increase of 11.9% compared with the same quarter in 2016.  Net income for the Company’s retail mortgage division increased 7.4% during the first quarter of 2017 to $2.8 million, compared with $2.6 million in the first quarter of 2016.  Total production in the first quarter of 2017 for the retail mortgage group amounted to $311.8 million (85% retail and 15% wholesale), compared with $268.6 million in the same quarter of 2016 (also 85% retail and 15% wholesale).  In addition to the strong results, the Company reported that its mortgage division received approval late in the quarter to become a GNMA (Government National Mortgage Association, or Ginnie Mae) issuer effective immediately.  Production in the first quarter that was GNMA eligible totaled approximately $120 million, and management estimates that between 35% – 40% of 2017 production will be eligible for these programs.

Net income for the Company’s warehouse lending division increased 41.2% during the quarter, from $667,000 in the first quarter of 2016 to $942,000 in the first quarter of 2017.  Loan production increased from $565.2 million in the first quarter of 2016 to approximately $647.4 million in the current quarter.  Sales efforts are focused on improving already strong penetration and capture rates among the customer base, as well as targeted sales towards mortgage companies focused more heavily on purchase transactions.  Although the average balances and production were strong compared with the linked quarter, the Company experienced a contraction in quarter-end balances of approximately $83 million that impacted overall loan growth.  Management believes the decline was centered more heavily in unusually high balances at the end of the year and that growth rates and comparisons against the same quarter in 2016 are more indicative of where the division is with respect to profitability and growth.

Revenues from the Company’s SBA division increased 24.3% during the first quarter of 2017 to $2.7 million, compared with $2.2 million during the first quarter of 2016.  Net income for the division increased 42.0%, from $833,000 for the first quarter of 2016 to $1.2 million for the first quarter of 2017.  The SBA pipeline totaled $55.0 million at the end of the first quarter, up $5.6 million compared with the same time in 2016.

Non-interest Expense
During the first quarter of 2017 and 2016, the Company incurred pre-tax merger and conversion charges of $402,000 and $6.4 million, respectively, as well as losses on the sale of premises totaling $295,000 in 2017 and gains on the sale of premises totaling $77,000 in 2016.  Excluding these charges, operating expenses increased approximately $3.1 million, to $52.4 million, from $49.3 million in the first quarter of 2016.  The acquisition of JAXB in the first quarter of 2016, together with the additional operating expenses associated with the premium finance division, impacted operating expenses by approximately $4.0 million in the first quarter of 2017.

Efforts to improve operating efficiency and the net overhead ratio have been very successful.  During the first quarter of 2017, the Company’s operating efficiency ratio declined to 59.67%, compared with 65.44% in the same quarter of 2016.  The Company’s operating net overhead ratio also declined materially, to 1.57% in the first quarter of 2017, compared with 1.79% in the first quarter of 2016.  Management attributes the improvement in efficiency-related ratios to expanded average portfolios of the Company’s commercial lenders, branches with higher deposit balances and the Company’s lending lines of business reaching a certain level of critical mass.

Salaries and benefits increased by $1.6 million to $27.8 million in the current quarter of 2017, compared with $26.2 million in the first quarter of 2016.  Growth in salaries and benefits from the first quarter of 2016 to the first quarter of 2017 relating to the Company’s ongoing Bank Secrecy Act compliance efforts and the addition of the premium finance division was $565,000 and $996,000, respectively.  Compared with the fourth quarter of 2016, salaries and benefits increased $2.7 million, primarily due to $996,000 of premium finance division salaries and benefits, $441,000 of Bank Secrecy Act compliance salaries and benefits and $1.0 million of payroll taxes that are typical for the first quarter of each year.

Data processing and telecommunications costs for the quarter were $6.6 million, an increase of $459,000, or 7.5%, over the first quarter in 2016.  Significant improvements in the Company’s infrastructure have been achieved and are included in the current run rate, including data center relocation, upgrades in connectivity speeds, hardware and data management and reporting, and the development of an on-line deposit origination platform that should augment the Company’s approach to deposit gathering in its local markets in the near future.  Repurposing of existing resources into new contracts and tools has allowed the Company to achieve material improvements in the reliability of its systems with only moderate increase in costs.

Total credit costs (provision and non-provision credit resolution-related costs) totaled $2.8 million in the first quarter of 2017, compared with $2.5 million in the same quarter in 2016 and $2.8 million in the fourth quarter of 2016.

Balance Sheet Trends
Total assets at March 31, 2017 were $7.09 billion, compared with $6.89 billion at December 31, 2016.  The growth in total assets was driven by the increase in interest bearing deposits held as a result of the Company’s capital raise and debt offering transactions. 

Loans, including loans held for sale, totaled $5.43 billion at March 31, 2017, compared with $5.37 billion at December 31, 2016.  During the quarter, growth in core loans (legacy and purchased non-covered loans) increased by $98.5 million, or 8.5% on an annualized basis. 

Lending activities in the core bank in the first quarter of 2017 were notably stronger than normal for the first quarter.  Commercial real estate lending grew $51.9 million during the quarter, or 15.0% on an annualized basis, while commercial and industrial lending (excluding operations of the new premium finance division) expanded $20.0 million, or 13.2% on an annualized basis.  Pipelines for the bank at the end of the first quarter of 2017 were similar to those at the end of 2016. 

Loan production and growth associated with the new premium finance division were very close to forecasted levels.  Loans outstanding grew from $353.9 million at the end of 2016 to $425.9 million at the end of the first quarter of 2017.  The Company believes it can sustain annualized growth rates in this division of 15% – 20% for the next few years, with steady credit and profitability levels.

The Company’s newest lending effort is in the equipment finance division, which provides financing for heavy equipment in the manufacturing, transportation and construction sectors.  At the end of the first quarter of 2017, the division had booked approximately $2.3 million in loans and had an immediate pipeline of approximately $50.0 million that is expected to close during the second quarter.  Activity and client calls have been brisk, and management remains confident in its full year forecast of $200 million of growth in this division.

Mortgage warehouse balances fell during the quarter from $189.3 million at the end of 2016 to $107.8 million at the end of the first quarter of 2017.  Mortgage warehouse balances were unusually high at the end of 2016, as mortgage volume swelled in the month following the presidential election.  While average balances were lower, the group’s loan production moved higher by 14.5% compared with the same quarter in 2016.  This increase resulted from continued growth in customers and approved lines of credit.  Management expects a rebound in the outstanding balances throughout the remainder of 2017 as mortgage volume picks up in the seasonally strong second and third quarters.

Investment securities at the end of the first quarter of 2017 were $866.7 million, or 13.3% of earning assets, compared with $852.2 million, or 13.5% of earning assets, at December 31, 2016. 

Deposits increased $67.2 million during the first quarter of 2017 to end the quarter at $5.64 billion, despite the runoff of approximately $67.6 million in seasonal deposits that the Company holds for municipal clients at the end of each year.  Excluding this runoff, the Company managed growth in deposits of $134.8 million during the first quarter, or 9.8% on an annualized basis. 

At March 31, 2017, non-interest bearing deposit accounts were $1.65 billion, or 29.3% of total deposits, compared with $1.57 billion and 28.2%, respectively, at December 31, 2016.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $3.09 billion at March 31, 2017, compared with $3.17 billion at the end of 2016.  These funds represented 54.8% of the Company’s total deposits at March 31, 2017, compared with 56.9% at the end of 2016.

Shareholders’ equity at March 31, 2017 totaled $758.2 million, compared with $646.4 million at December 31, 2016.  The increase in shareholders’ equity was the result of the issuance of shares of common stock in the Company’s public offering, plus earnings of $21.2 million during the quarter.  Tangible book value per share at March 31, 2017 was $16.57, up 14.9% from $14.42 at the end of 2016.  Tangible common equity as a percentage of tangible assets increased to 8.85% at the end of the first quarter of 2017, compared with 7.46% at the end of 2016. 

Conference Call
The Company will host a teleconference at 10:00 a.m. EDT today (April 21, 2017) 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 5, 2017. 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 10104743. 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 97 locations in Georgia, Alabama, northern Florida and South Carolina at the end of the most recent quarter.

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

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

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

EARNINGS

Net Income 

$                 21,153

$                 18,177

$                 21,557

$             20,049

$             12,317

Adjusted Operating Net Income

$                 21,606

$                 22,205

$                 21,712

$             20,310

$             16,400

PER COMMON SHARE DATA

Earnings per share available to common shareholders:

Basic

$                     0.59

$                     0.52

$                     0.62

$                 0.58

$                 0.38

Diluted

$                     0.59

$                     0.52

$                     0.61

$                 0.57

$                 0.37

Cash Dividends per share

$                     0.10

$                     0.10

$                     0.10

$                 0.05

$                 0.05

Book value per share (period end)

$                   20.42

$                   18.51

$                   18.42

$               17.96

$               17.25

Tangible book value per share (period end)

$                   16.57

$                   14.42

$                   14.38

$               13.89

$               13.13

Weighted average number of shares:

Basic

35,664,420

34,915,459

34,869,747

34,832,621

32,752,063

Diluted

36,040,240

35,293,035

35,194,739

35,153,311

33,053,554

Period-end number of shares

37,128,714

34,921,474

34,891,304

34,847,311

34,837,454

Market data:

High intraday price

$                   49.50

$                   47.70

$                   36.20

$               32.76

$               33.81

Low intraday price

$                   41.60

$                   34.61

$                   28.90

$               27.73

$               24.96

Period end closing price

$                   46.10

$                   43.60

$                   34.95

$               29.70

$               29.58

Average daily volume

242,982

191,894

166,841

215,409

253,779

PERFORMANCE RATIOS

Return on average assets

1.24%

1.10%

1.35%

1.31%

0.88%

Return on average common equity

12.33%

11.06%

13.39%

13.08%

9.14%

Earning asset yield (TE)

4.38%

4.34%

4.35%

4.35%

4.36%

Total cost of funds

0.42%

0.38%

0.36%

0.35%

0.33%

Net interest margin (TE)

3.97%

3.95%

3.99%

4.01%

4.03%

Non-interest income excluding securities transactions,

as a percent of total revenue (TE)

27.27%

27.32%

31.36%

32.01%

30.40%

Efficiency ratio

61.52%

67.05%

61.91%

63.11%

74.41%

CAPITAL ADEQUACY (period end)

Stockholders’ equity to assets

10.69%

9.38%

9.90%

10.06%

9.85%

Tangible common equity to tangible assets

8.85%

7.46%

7.90%

7.96%

7.68%

EQUITY TO ASSETS RECONCILIATION

Tangible common equity to tangible assets

8.85%

7.46%

7.90%

7.96%

7.68%

Effect of goodwill and other intangibles

1.83%

1.92%

2.00%

2.10%

2.17%

Equity to assets (GAAP)

10.69%

9.38%

9.90%

10.06%

9.85%

OTHER PERIOD-END DATA

Banking Division FTE

1,039

1,014

987

1,000

1,063

Retail Mortgage Division FTE

252

254

254

239

227

Warehouse Lending Division FTE

8

9

5

6

6

SBA Division FTE

20

21

24

23

22

Premium Finance Division FTE

50

Total Ameris Bancorp FTE Headcount

1,369

1,298

1,270

1,268

1,318

Assets per Banking Division FTE

$                   6,829

$                   6,797

$                   6,579

$               6,221

$               5,736

Branch locations

97

97

99

102

103

Deposits per branch location

$                 58,169

$                 57,476

$                 53,597

$             50,780

$             50,784

 

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

INCOME STATEMENT

Interest income

Interest and fees on loans

$                 61,521

$                 57,982

$                 57,322

$             54,164

$             49,191

Interest on taxable securities

4,800

4,348

4,336

4,554

4,586

Interest on nontaxable securities

416

425

397

454

446

Interest on deposits in other banks

313

193

147

159

328

Interest on federal funds sold

8

8

9

8

Total interest income

67,050

62,956

62,210

59,340

54,559

Interest expense

Interest on deposits

$                   3,763

$                   3,680

$                   3,074

$               2,915

$               2,741

Interest on other borrowings

2,697

1,997

2,069

1,836

1,382

Total interest expense

6,460

5,677

5,143

4,751

4,123

Net interest income

60,590

57,279

57,067

54,589

50,436

Provision for loan losses

1,836

1,710

811

889

681

Net interest income after provision for loan losses

$                 58,754

$                 55,569

$                 56,256

$             53,700

$             49,755

Noninterest income

Service charges on deposit accounts

$                 10,563

$                 11,036

$                 11,358

$             10,436

$               9,915

Mortgage banking activity

11,215

9,878

14,067

14,142

10,211

Other service charges, commissions and fees

709

706

791

967

1,111

Gain(loss) on sale of securities

94

Other non-interest income

3,219

2,652

2,648

2,834

2,955

Total noninterest income

25,706

24,272

28,864

28,379

24,286

Noninterest expense

Salaries and employee benefits

27,794

25,137

27,982

27,531

26,187

Occupancy and equipment expenses

5,877

6,337

5,989

6,371

5,700

Data processing and telecommunications expenses

6,572

6,244

6,185

6,049

6,113

Credit resolution related expenses (1)

933

1,083

1,526

1,764

1,799

Advertising and marketing expenses

1,106

1,273

1,249

854

805

Amortization of intangible assets

1,036

1,044

993

1,319

1,020

Merger and conversion charges

402

17

6,359

Other non-interest expenses

9,373

13,542

9,275

8,471

7,617

Total noninterest expense

53,093

54,677

53,199

52,359

55,600

Income before income taxes

$                 31,367

$                 25,164

$                 31,921

$             29,720

$             18,441

Income tax expense

10,214

6,987

10,364

9,671

6,124

Net income

$                 21,153

$                 18,177

$                 21,557

$             20,049

$             12,317

Diluted earnings available to common shareholders

0.59

0.52

0.61

0.57

0.37

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

 

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

PERIOD-END BALANCE SHEET

Assets

Cash and due from banks

$               127,164

$               127,164

$               123,270

$           116,255

$           146,863

Federal funds sold and interest bearing deposits in banks

232,045

71,221

90,801

68,273

107,373

Investment securities available for sale, at fair value

830,765

822,735

838,124

843,646

837,103

Other investments

35,950

29,464

24,578

19,125

12,802

Loans held for sale

105,637

105,924

126,263

102,757

97,439

Loans, net of unearned income

3,785,480

3,626,821

3,091,039

2,819,071

2,528,007

Purchased loans (excluding loan pools)

1,006,935

1,069,191

1,129,381

1,193,635

1,260,198

Purchased loan pools

529,099

568,314

624,886

610,425

656,734

Less allowance for loan losses

(25,250)

(23,920)

(22,963)

(21,734)

(21,482)

Loans, net

5,296,264

5,240,406

4,822,343

4,601,397

4,423,457

Other real estate owned

10,466

10,874

10,392

13,765

14,967

Purchased other real estate owned

11,668

12,540

15,126

16,670

18,812

Total other real estate owned

22,134

23,414

25,518

30,435

33,779

Premises and equipment, net

121,610

121,217

122,191

123,978

124,747

Goodwill

126,419

125,532

122,545

121,422

121,512

Other intangibles, net

16,391

17,428

18,472

20,574

21,892

Deferred income taxes, net

40,618

40,776

37,626

39,286

44,579

Cash value of bank owned life insurance

78,442

78,053

77,637

77,095

76,676

Other assets

61,417

88,697

64,127

57,051

49,549

Total assets

$            7,094,856

$            6,892,031

$            6,493,495

$        6,221,294

$        6,097,771

Liabilities

Deposits:

Noninterest-bearing

$            1,654,723

$            1,573,389

$            1,563,316

$        1,553,972

$        1,529,037

Interest-bearing

3,987,646

4,001,774

3,742,782

3,625,560

3,701,750

Total deposits

5,642,369

5,575,163

5,306,098

5,179,532

5,230,787

Federal funds purchased & securities sold under

agreements to repurchase

40,415

53,505

42,647

37,139

43,741

Other borrowings

525,669

492,321

373,461

260,191

110,531

Subordinated deferrable interest debentures

84,559

84,228

83,898

83,570

83,237

Other liabilities

43,628

40,377

44,808

34,947

28,647

Total liabilities

6,336,640

6,245,594

5,850,912

5,595,379

5,496,943

Shareholders’ equity

  Preferred stock

$                           –

$                           –

$                          –

$                      –

$                       –

  Common stock

38,603

36,378

36,348

36,303

36,272

  Capital surplus

503,543

410,276

409,630

408,549

407,726

  Retained earnings

231,894

214,454

199,769

181,701

163,395

  Accumulated other comprehensive income (loss)

(1,209)

(1,058)

10,449

12,960

6,411

  Less treasury stock

(14,615)

(13,613)

(13,613)

(13,598)

(12,976)

Total shareholders’ equity

758,216

646,437

642,583

625,915

600,828

Total liabilities and shareholders’ equity

$            7,094,856

$            6,892,031

$            6,493,495

$        6,221,294

$        6,097,771

Other Data

Earning Assets

6,525,911

6,293,670

5,925,072

5,656,932

5,499,656

Intangible Assets

142,810

142,960

141,017

141,996

143,404

Interest Bearing Liabilities

4,638,289

4,631,828

4,242,788

4,006,460

3,939,259

Average Assets

6,915,965

6,573,344

6,330,350

6,138,757

5,618,397

Average Common Stockholders’ Equity

695,830

653,991

640,382

616,361

542,264

 

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

ASSET QUALITY INFORMATION

Allowance for loan losses

Balance at beginning of period

$                 23,920

$                 22,963

$                 21,734

$             21,482

$             21,062

Provision for loan loss

1,836

1,710

811

889

681

Charge-offs

1,102

1,686

1,451

1,376

1,814

Recoveries

596

933

1,869

739

1,553

Net charge-offs (recoveries)

506

753

(418)

637

261

Ending balance

$                 25,250

$                 23,920

$                 22,963

$             21,734

$             21,482

Net charge-off information

Charge-offs

Commercial, financial & agricultural

$                      104

$                      726

$                      326

$                  541

$                  406

Real estate – residential

216

239

292

123

468

Real estate – commercial & farmland

9

361

347

Real estate – construction & development

53

264

60

109

155

Consumer installment

164

159

74

59

59

Purchased loans (excluding loan pools)

556

298

699

183

379

Purchased loan pools

Total charge-offs

1,102

1,686

1,451

1,376

1,814

Recoveries

Commercial, financial & agricultural

69

121

119

87

73

Real estate – residential

61

23

40

14

314

Real estate – commercial & farmland

9

78

13

57

121

Real estate – construction & development

20

16

131

221

122

Consumer installment

17

8

78

16

25

Purchased loans (excluding loan pools)

420

687

1,488

344

898

Purchased loan pools

Total recoveries

596

933

1,869

739

1,553

Net charge-offs (recoveries)

$                      506

$                      753

$                    (418)

$                  637

$                  261

Non-accrual loans (excluding purchased loans)

18,281

18,114

16,379

16,003

15,700

Non-accrual purchased loans

23,606

22,966

23,827

26,736

32,518

Non-accrual purchased loan pools

864

864

Foreclosed assets (excluding purchased assets)

10,466

10,874

10,392

13,765

14,967

Purchased other real estate owned

11,668

12,540

15,126

16,670

18,812

Accruing loans delinquent 90 days or more

933

Total non-performing assets

64,954

64,494

66,588

74,038

81,997

Non-performing assets as a percent of total assets

0.92%

0.94%

1.03%

1.19%

1.34%

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

0.04%

0.06%

-0.04%

0.06%

0.03%

Net charge offs, excluding purchased loans as a percent

    of average loans (annualized)

0.04%

0.14%

0.05%

0.12%

0.13%

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

For the quarter ended:

Mar.

Dec.

Sept.

Jun.

Mar.

Loans by Type

2017

2016

2016

2016

2016

Commercial, financial & agricultural

$            1,061,599

$               967,138

$               625,947

$           564,343

$           434,073

Real estate – construction & development

415,029

363,045

328,308

274,717

264,820

Real estate – commercial & farmland

1,458,110

1,406,219

1,297,582

1,248,580

1,154,887

Real estate – residential

726,795

781,018

766,933

680,233

629,138

Consumer installment

115,919

96,915

68,305

33,245

31,901

Other

8,028

12,486

3,964

17,953

13,188

    Total Legacy (excluding purchased loans)

$            3,785,480

$            3,626,821

$            3,091,039

$        2,819,071

$        2,528,007

Commercial, financial & agricultural

$                 89,897

$                 96,537

$               100,426

$           103,407

$           116,276

Real estate – construction & development

82,378

81,368

89,319

96,264

110,958

Real estate – commercial & farmland

538,046

576,355

604,076

639,921

665,990

Real estate – residential

292,911

310,277

330,626

348,353

360,946

Consumer installment

3,703

4,654

4,934

5,690

6,028

    Total Purchased loans (net of discounts)

$            1,006,935

$            1,069,191

$            1,129,381

$        1,193,635

$        1,260,198

Commercial, financial & agricultural

$                          –

$                          –

$                           –

$                       –

$                       –

Real estate – construction & development

Real estate – commercial & farmland

Real estate – residential

529,099

568,314

624,886

610,425

656,734

Consumer installment

    Total Purchased loan pools

$               529,099

$               568,314

$               624,886

$           610,425

$           656,734

Total Loan Portfolio:

Commercial, financial & agricultural

$            1,151,496

$            1,063,675

$               726,373

$           667,750

$           550,349

Real estate – construction & development

497,407

444,413

417,627

370,981

375,778

Real estate – commercial & farmland

1,996,156

1,982,574

1,901,658

1,888,501

1,820,877

Real estate – residential

1,548,805

1,659,609

1,722,445

1,639,011

1,646,818

Consumer installment

119,622

101,569

73,239

38,935

37,929

Other

8,028

12,486

3,964

17,953

13,188

    Total Loans

$            5,321,514

$            5,264,326

$            4,845,306

$        4,623,131

$        4,444,939

Troubled Debt Restructurings, excluding purchased loans:

Accruing loan types:

Commercial, financial & agricultural

$                        42

$                        47

$                        53

$                  275

$                  279

Real estate – construction & development

435

686

691

468

476

Real estate – commercial & farmland

3,944

4,119

5,535

5,802

5,945

Real estate – residential

9,220

9,340

7,713

8,226

7,648

Consumer installment

18

17

21

24

37

    Total Accruing TDRs

$                 13,659

$                 14,209

$                 14,013

$             14,795

$             14,385

Non-accruing loan types:

Commercial, financial & agricultural

$                      142

$                      114

$                      112

$                    86

$                    75

Real estate – construction & development

34

35

35

36

30

Real estate – commercial & farmland

1,617

2,970

2,015

1,832

1,871

Real estate – residential

998

738

849

899

1,040

Consumer installment

129

130

120

113

87

    Total Non-accrual TDRs

$                   2,920

$                   3,987

$                   3,131

$               2,966

$               3,103

Total Troubled Debt Restructurings

$                 16,579

$                 18,196

$                 17,144

$             17,761

$             17,488

The following table presents the loan portfolio by risk grade, excluding purchased loans:

Grade 10 – Prime credit

$               420,814

$               414,564

$               398,781

$           349,725

$           254,203

Grade 15 – Good credit

587,180

539,147

190,389

191,574

213,510

Grade 20 – Satisfactory credit

1,718,749

1,669,998

1,608,265

1,493,561

1,346,050

Grade 23 – Performing, under-collateralized credit

20,889

23,186

22,763

23,665

25,047

Grade 25 – Minimum acceptable credit

958,623

907,588

797,148

687,817

628,042

Grade 30 – Other asset especially mentioned

37,298

29,172

31,764

32,468

22,141

Grade 40 – Substandard

41,821

43,067

41,929

40,261

39,013

Grade 50 – Doubtful

106

99

Grade 60 – Loss

1

  Total

$            3,785,480

$            3,626,821

$            3,091,039

$        2,819,071

$        2,528,007

The following table presents the purchased loan portfolio by risk grade:

Grade 10 – Prime credit

$                   6,017

$                   6,536

$                   6,543

$               6,899

$             10,505

Grade 15 – Good credit

38,179

40,786

42,257

45,245

48,229

Grade 20 – Satisfactory credit

365,434

334,353

341,544

364,624

365,374

Grade 23 – Performing, under-collateralized credit

22,081

27,475

31,841

33,817

34,291

Grade 25 – Minimum acceptable credit

476,954

569,026

604,272

620,489

674,149

Grade 30 – Other asset especially mentioned

43,450

35,032

50,691

61,227

58,733

Grade 40 – Substandard

54,820

55,983

52,233

61,302

68,885

Grade 50 – Doubtful

30

30

Grade 60 – Loss

2

2

  Total

$            1,006,935

$            1,069,191

$            1,129,381

$        1,193,635

$        1,260,198

The following table presents the purchased loan pools by risk grade:

Grade 20 – Satisfactory credit

$               528,181

$               567,389

$               624,022

$           609,561

$           656,734

Grade 40 – Substandard

918

925

864

864

  Total

$               529,099

$               568,314

$               624,886

$           610,425

$           656,734

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

AVERAGE BALANCES

Federal funds sold

$                           –

$                   5,261

$                   5,500

$               7,186

$               6,200

Interest bearing deposits in banks

147,385

122,538

85,051

96,906

201,814

Investment securities – taxable

759,850

770,373

767,421

766,006

728,269

Investment securities – nontaxable

65,374

66,566

68,325

69,664

68,824

Other investments

37,392

19,732

21,687

14,765

9,606

Loans held for sale

77,617

102,926

105,859

96,998

82,803

Loans

3,678,149

3,145,714

2,897,771

2,653,171

2,410,747

Purchased loans (excluding loan pools)

1,034,983

1,101,907

1,199,175

1,239,409

970,570

Purchased loan pools

547,057

590,617

629,666

630,503

627,178

  Total Earning Assets

$            6,347,807

$            5,925,634

$            5,780,455

$        5,574,608

$        5,106,011

Noninterest bearing deposits

$            1,604,495

$            1,592,073

$            1,546,211

$        1,561,621

$        1,362,007

NOW accounts

1,169,567

1,253,849

1,085,828

1,087,442

1,137,076

MMDA

1,486,972

1,435,958

1,435,151

1,413,503

1,278,199

Savings accounts

268,741

262,782

266,344

265,936

251,108

Retail CDs < $100,000

444,195

445,132

431,570

437,899

438,122

Retail CDs > $100,000

517,354

497,113

451,115

439,954

406,699

Brokered CDs

3,750

5,000

5,000

1,099

  Total Deposits

5,491,324

5,490,657

5,221,219

5,211,355

4,874,310

Federal funds purchased and securities sold

under agreements to repurchase

42,589

44,000

37,305

43,286

52,787

FHLB advances

525,583

222,426

265,202

104,195

9,648

Other borrowings

47,738

38,728

49,345

51,970

42,096

Subordinated deferrable interest debentures

84,379

84,050

83,719

83,386

72,589

  Total Non-Deposit Funding

700,289

389,204

435,571

282,837

177,120

  Total Funding

$            6,191,613

$            5,879,861

$            5,656,790

$        5,494,192

$        5,051,430

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

INTEREST INCOME/EXPENSE

INTEREST INCOME

Federal funds sold

$                           –

$                          8

$                          8

$                      9

$                      8

Interest bearing deposits in banks

313

193

147

159

328

Investment securities – taxable

4,800

4,348

4,336

4,554

4,586

Investment securities – nontaxable (TE)

640

654

536

613

602

Loans held for sale

653

989

826

821

755

Loans (TE)

43,157

37,418

33,672

31,531

28,684

Purchased loans (excluding loan pools)

15,173

17,015

19,296

18,859

15,193

Purchased loan pools

3,832

3,950

4,346

3,730

5,144

Total Earning Assets

$                 68,568

$                 64,575

$                 63,167

$             60,276

$             55,300

    Accretion Income (included above)

2,810

3,370

3,604

4,196

2,942

INTEREST EXPENSE

Non-interest bearing deposits

$                           –

$                           –

$                          –

$                      –

$                       –

NOW accounts

497

613

433

439

468

MMDA

1,538

1,405

1,241

1,168

1,040

Savings accounts

43

44

45

45

43

Retail CDs < $100,000

562

553

493

476

512

Retail CDs > $100,000

1,123

1,060

854

779

676

Brokered CDs

6

8

8

2

Total Deposits

3,763

3,681

3,074

2,915

2,741

Federal funds purchased and securities sold

under agreements to repurchase

20

21

18

24

35

FHLB advances

907

328

393

155

23

Other borrowings

559

432

479

484

370

Subordinated deferrable interest debentures

1,211

1,216

1,179

1,173

954

  Total Non-Deposit Funding

2,697

1,997

2,069

1,836

1,382

  Total Funding

$                   6,460

$                   5,678

$                   5,143

$               4,751

$               4,123

Net Interest Income (TE)

$                 62,108

$                 58,897

$                 58,024

$             55,525

$             51,177

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

2017

2016

2016

2016

2016

YIELDS (1)

Federal funds sold

0.00%

0.60%

0.58%

0.50%

0.52%

Interest bearing deposits in banks

0.86%

0.63%

0.69%

0.66%

0.65%

Investment securities – taxable

2.56%

2.25%

2.25%

2.39%

2.53%

Investment securities – nontaxable

3.97%

3.91%

3.12%

3.54%

3.52%

Loans held for sale

3.41%

3.82%

3.10%

3.40%

3.67%

Loans

4.76%

4.73%

4.62%

4.78%

4.79%

Purchased loans (excluding loan pools)

5.95%

6.14%

6.40%

6.12%

6.30%

Purchased loan pools

2.84%

2.66%

2.75%

2.38%

3.30%

  Total Earning Assets

4.38%

4.34%

4.35%

4.35%

4.36%

Noninterest bearing deposits

0.00%

0.00%

0.00%

0.00%

0.00%

NOW accounts

0.17%

0.19%

0.16%

0.16%

0.17%

MMDA

0.42%

0.39%

0.34%

0.33%

0.33%

Savings accounts

0.06%

0.07%

0.07%

0.07%

0.07%

Retail CDs < $100,000

0.51%

0.49%

0.45%

0.44%

0.47%

Retail CDs > $100,000

0.88%

0.85%

0.75%

0.71%

0.67%

Brokered CDs

0.00%

0.64%

0.64%

0.64%

0.73%

  Total Deposits

0.28%

0.27%

0.23%

0.22%

0.23%

Federal funds purchased and securities sold

under agreements to repurchase

0.19%

0.19%

0.19%

0.22%

0.27%

FHLB advances

0.70%

0.59%

0.59%

0.60%

0.96%

Other borrowings

4.75%

4.44%

3.86%

3.75%

3.54%

Subordinated deferrable interest debentures

5.82%

5.76%

5.60%

5.66%

5.29%

  Total Non-Deposit Funding

1.56%

2.04%

1.89%

2.61%

3.14%

  Total funding (2)

0.42%

0.38%

0.36%

0.35%

0.33%

Net interest spread

3.96%

3.95%

3.99%

4.00%

4.03%

Net interest margin (3)

3.97%

3.95%

3.99%

4.01%

4.03%

(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 35%.

(2) Rate calculated based on total average funding including non-interest bearing deposits.

(3) Rate calculated based on average earning assets.

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

Adjusted Operating Net Income Reconciliation

2017

2016

2016

2016

2016

Net income available to common shareholders

$                 21,153

$                 18,177

$                 21,557

$             20,049

$             12,317

Merger and conversion charges

402

17

6,359

Certain compliance resolution expenses

5,750

Losses (gains) on the sale of premises

295

430

238

401

(77)

Tax effect of management-adjusted charges

(244)

(2,169)

(83)

(140)

(2,199)

Plus: After tax management-adjusted charges

453

4,028

155

261

4,083

       Adjusted Operating Net income

21,606

22,205

21,712

20,310

16,400

Adjusted operating net income per diluted share:

$                     0.60

$                     0.63

$                     0.62

$                 0.58

$                 0.50

Adjusted operating return on average assets

1.27%

1.34%

1.36%

1.33%

1.17%

Adjusted operating return on average common

    tangible equity

15.84%

17.25%

17.31%

17.25%

15.37%

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

Net Interest Margin and Yields on Total Loans

2017

2016

2016

2016

2016

    Excluding Accretion Reconciliation

Total Interest Income (TE)

$                 68,568

$                 64,575

$                 63,167

$             60,276

$             55,300

    Accretion Income

2,810

3,370

3,604

4,196

2,942

Total Interest Income (TE) Excluding Accretion

$                 65,758

$                 61,205

$                 59,563

$             56,080

$             52,358

Total Interest Expense

$                   6,460

$                   5,677

$                   5,143

$               4,751

$               4,123

Net Interest Income (TE) Excluding Accretion

$                 59,298

$                 55,528

$                 54,420

$             51,329

$             48,235

Yield on Total Loans (TE) Excluding Accretion

4.56%

4.51%

4.49%

4.42%

4.60%

Net Interest Margin (TE) Excluding Accretion

3.79%

3.73%

3.75%

3.70%

3.80%

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

Management-Adjusted Operating Expenses

2017

2016

2016

2016

2016

Total operating expenses

53,093

54,677

53,199

52,359

55,600

Less: Management-adjusted charges

  Merger and conversion expenses

(402)

(17)

(6,359)

   Certain compliance resolution expenses

(5,750)

   Gains/(Losses) on the sale of premises

(295)

(430)

(238)

(401)

77

Management-adjusted operating expenses

$                 52,396

$                 48,480

$                 52,961

$             51,958

$             49,318

Management-adjusted operating efficiency ratio (TE)

59.67%

58.29%

60.95%

61.93%

65.44%

 

 

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

Three Months Ended

Mar.

Dec.

Sept.

Jun.

Mar.

Segment Reporting

2017

2016

2016

2016

2016

Banking Division:

   Net interest income

$                 50,126

$                 50,528

$                 51,653

$             49,820

$             46,483

   Provision for loan losses

1,982

502

57

733

681

   Noninterest income

13,013

13,466

13,949

13,018

12,735

   Noninterest expense:

      Salaries and employee benefits

18,844

17,084

18,323

18,428

18,989

      Occupancy

5,257

5,668

5,490

5,901

5,150

      Data Processing

6,043

5,841

5,794

5,685

5,820

      Other expenses

9,241

15,398

11,533

11,071

16,436

         Total noninterest expense

39,385

43,991

41,140

41,085

46,395

Income before income taxes

21,772

19,501

24,405

21,020

12,142

   Income Tax

6,856

5,005

7,733

6,626

3,919

         Net income

$                 14,916

$                 14,496

$                 16,672

$             14,394

$               8,223

Retail Mortgage Division:

   Net interest income

$                   2,976

$                   3,032

$                   2,625

$               2,554

$               2,430

   Provision for loan losses

8

33

447

93

   Noninterest income

10,513

9,036

13,198

13,304

9,624

   Noninterest expense:

      Salaries and employee benefits

7,216

7,098

8,940

8,304

6,347

      Occupancy

519

602

433

405

488

      Data Processing

317

326

364

338

272

      Other expenses

1,141

1,093

1,303

1,133

956

         Total noninterest expense

9,193

9,119

11,040

10,180

8,063

Income before income taxes

4,288

2,916

4,336

5,585

3,991

   Income Tax

1,501

1,021

1,518

1,955

1,397

         Net income

$                   2,787

$                   1,895

$                   2,818

$               3,630

$               2,594

Warehouse Lending Division:

   Net interest income

$                   1,105

$                   1,706

$                   1,848

$               1,481

$                  927

   Provision for loan losses

(232)

496

94

   Noninterest income

319

462

555

440

333

   Noninterest expense:

      Salaries and employee benefits

147

220

103

108

188

      Occupancy

1

1

1

1

1

      Data Processing

27

32

26

25

20

      Other expenses

32

29

26

26

25

         Total noninterest expense

207

282

156

160

234

Income before income taxes

1,449

1,390

2,153

1,761

1,026

   Income Tax

507

487

754

616

359

         Net income

$                      942

$                      904

$                   1,399

$               1,145

$                  667

SBA Division:

   Net interest income

$                      907

$                      949

$                      941

$                  734

$                  596

   Provision for loan losses

48

571

213

63

   Noninterest income

1,815

1,308

1,162

1,617

1,594

   Noninterest expense:

      Salaries and employee benefits

591

735

616

691

663

      Occupancy

51

64

65

64

61

      Data Processing

1

1

1

1

1

      Other expenses

211

170

181

178

183

         Total noninterest expense

854

970

863

934

908

Income before income taxes

1,820

716

1,027

1,354

1,282

   Income Tax

637

251

359

474

449

         Net income

$                   1,183

$                      465

$                      668

$                  880

$                  833

Premium Finance Division:

   Net interest income

$                   5,476

$                   1,064

$                          –

$                      –

$                       –

   Provision for loan losses

30

108

   Noninterest income

46

   Noninterest expense:

      Salaries and employee benefits

996

      Occupancy

49

2

      Data Processing

184

44

      Other expenses

2,225

269

         Total noninterest expense

3,454

315

Income before income taxes

2,038

641

   Income Tax

713

224

         Net income

$                   1,325

$                      417

$                          –

$                      –

$                       –

Total Consolidated:

   Net interest income

$                 60,590

$                 57,279

$                 57,067

$             54,589

$             50,436

   Provision for loan losses

1,836

1,710

811

889

681

   Noninterest income

25,706

24,272

28,864

28,379

24,286

   Noninterest expense:

      Salaries and employee benefits

27,794

25,137

27,982

27,531

26,187

      Occupancy

5,877

6,337

5,989

6,371

5,700

      Data Processing

6,572

6,244

6,185

6,049

6,113

      Other expenses

12,850

16,959

13,043

12,408

17,600

         Total noninterest expense

53,093

54,677

53,199

52,359

55,600

Income before income taxes

31,367

25,164

31,921

29,720

18,441

   Income Tax

10,214

6,987

10,364

9,671

6,124

         Net income

$                 21,153

$                 18,177

$                 21,557

$             20,049

$             12,317

 

SOURCE Ameris Bancorp