AMERIS BANCORP 
By MOULTRIE, Ga., Jan. 29, 2013 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB), today reported net income available to common shareholders of $3.6 million, or $0.15 per diluted share, for the fourth quarter of 2012, compared to $322,000, or $0.01 per diluted share, for the same period in 2011. For the year, Ameris earned $10.9 million, or $0.46 per diluted share, compared to $17.9 million, or $0.76 per diluted share, in 2011. Results for the year to date period include non-recurring after-tax gains on FDIC-assisted acquisitions totaling $13.0 million in 2012 and $17.5 million in 2011.
(Logo: http://photos.prnewswire.com/prnh/20051117/CLTH039LOGO )
Highlights of the Company's results for 2012 include the following:
-- Increase in total revenue (excluding gains on FDIC-assisted
acquisitions) of 9.2% during 2012 as compared to 2011.
-- 46% of TARP preferred stock investment redeemed during the fourth
quarter, which will positively impact the Company's 2013 financial
results by $1.5 million.
-- Net interest margin increased slightly to 4.60% in 2012 from 4.57% in
2011.
-- Non-interest income growth (excluding gains on FDIC-assisted
acquisitions) of $11.9 million, or 45.9%, during 2012 when compared to
amounts recorded in 2011.
-- Credit costs declined in the current quarter to lowest level in 17
quarters.
-- Legacy loans increased by $118.5 million during 2012, or 8.9% compared
to balances at December 31, 2011.
-- Tangible common equity to tangible assets increased to 8.20% at December
31, 2012, compared to 7.99% at December 31, 2011.
-- Non-performing legacy assets declined 33.0% during 2012, ending the year
at $78.7 million, compared to $117.5 million at the end of December 31,
2011.
Increase in Net Interest Income
Net interest income increased in 2012 to $114.4 million, up from $113.5 million reported in 2011. During 2012, the Company's net interest margin increased to 4.60%, compared to 4.57% during 2011. Lower yields on most earning asset classes have been offset by lower funding costs and better allocation of earning assets. Earning assets totaled $2.55 billion at December 31, 2012, compared to $2.48 billion at the end of 2011. Loans comprised 78.8% of total earning assets at the end of 2012, compared to 77.1% at the end of 2011, while investment securities represented 13.9% of total earning assets at December 31, 2012, compared to 14.1% at December 31, 2011.
Legacy loan yields continued to decrease, averaging 5.58% in 2012, compared to 5.89% in 2011. Covered loan yields declined from 8.70% in 2011 to 7.33% in 2012. The decline in covered loan yields relates mostly to one-time adjustments made during 2011 associated with certain fair value determinations. As expected cash flow on covered loans improves, a portion of the loan discount that was previously attributable to credit problems is reclassified into interest income. This reclassification occurs over the estimated life of the loan.
The Company has offset the declines in earning asset yields with corresponding declines in funding costs. Deposit costs, the Company's largest funding expense, declined from 0.98% in 2011 to 0.51% in 2012. That decline relates to continued shifts in deposit mix, favoring lower cost transaction accounts and non-interest bearing balances, and lower market rates in the Company's communities.
Non-Interest Income
Successes impacting non-interest income augmented the smaller increases in net interest margin during 2012. Total non-interest income, excluding one-time gains on FDIC-assisted acquisitions, increased to $37.8 million in 2012 compared to $25.9 million in 2011. Income from mortgage banking activities increased substantially as the Company's efforts to build ranks of producers and various channels were successful. Total mortgage banking income increased to $13.0 million in 2012, up from $3.0 million in 2011. The Company anticipates continued growth in mortgage banking revenues and profitability during 2013 considering recent recruiting efforts and the growing pipelines and closings in the newly established wholesale business.
In addition to increases in mortgage banking revenues, service charges on deposit accounts also increased, growing 8.3% in 2012 to $19.6 million. Deposit growth from FDIC-assisted acquisitions, as well as strong growth internally in transaction accounts, led to continued growth in this area of fee income.
Non-Interest Expense
Excluding credit related costs, total operating expenses increased $17.5 million to $97.1 million in 2012 compared to $79.5 million in 2011. The majority of the increase is detailed in the following table:
Amount % of total Description
increase in operating
expenses
--- ----------------------
$7,269 41.42% Mortgage banking expenses, which
have increased with mortgage
banking revenues. This reflects
primarily commissions and
incentives.
5,532 31.52% Additional costs associated with
the two FDIC-assisted
acquisitions completed during
2012.
2,125 12.11% Restructuring charges recorded in
the fourth quarter of 2012 to
complete the restructuring
announced on December 7, 2012.
900 5.13% Increase in advertising and
marketing costs incurred to
support various revenue and
growth strategies.
(3,047) (17.36)% Decrease in FDIC insurance
expense associated with a fourth
quarter true-up of prepaid FDIC
insurance premiums.
2,041 11.63% Increase in benefits and
incentives due to the
reinstatement of various
employee and board benefits
during 2012.
----- -----
$14,820 84.45%
======= =====
On December 7, 2012, the Company announced a major restructuring effort aimed at reducing core operating expenses by at least $12.1 million during 2013. These plans included lower headcounts in both the bank and in corporate functions, accelerated efforts to focus more overhead resources on corporate clients and closing at least thirteen retail banking locations. Discussing the restructuring efforts, Edwin W. Hortman, Jr., President and CEO, said, "Our recently announced plans recognize that today's banking environment is different than in recent years. Today's net interest spread and opportunities for fee income necessitate greater efficiency in the way we operate the Company to derive the level of profitability we expect. We expect that our recently announced plan will be sufficient to bring operating efficiency back in line."
Balance Sheet Trends
Total assets were relatively unchanged during 2012, ending the year at $3.0 billion. Efforts in 2012 centered mostly on redeploying the cash flows from covered assets (including loans, OREO and the indemnification asset from FDIC-assisted acquisitions) into traditional and more stable earning assets. This effort was successful as the Company realized $136.8 million of reductions in those covered assets but grew legacy loans and investment securities by $159.7 million. A similar strategy is in place in 2013 as the Company anticipates continued growth in legacy loan balances and a slower pace in the decline in covered loan balances.
Average earning assets in 2012 were almost unchanged from 2011 levels, ending the year at $2.50 billion. Total average loans increased to $2.01 billion at December 31, 2012, compared to $1.92 billion in 2011. Legacy loans were $1.45 billion at December 31, 2012, increasing 8.9%, or $118.5 million, during the year. Expansion of loan officer teams in the Company's larger metro markets contributed significantly to the growth, as did several newer lines of business, including mortgage banking. Covered loans declined, as expected, by $63.8 million during 2012 to $507.7 million. The Company expects continued declines in covered loan balances, as well as lower yields due to lower amounts of accretable discounts.
Despite higher average balances of investment securities in 2012 compared to 2011, the Company recorded 16.0% less in interest revenue in 2012 than in 2011. Average balances grew 10.4% during 2012 to $361.5 million, but average yields slipped 24.5% to 2.83% on a tax-equivalent basis. Governmental intervention in the mortgage industry and FOMC actions have caused faster prepayments in the mortgage-backed portfolio and reduced yields on reinvestment alternatives. Although the Company reinvests most of the portfolio cash flows, efforts to grow the portfolio have been reduced and the Company has relied somewhat on mortgage loans held for sale as a short-term investment alternative in the current interest rate environment. Loans held for sale grew to $48.8 million at December 31, 2012, compared to $11.6 million at the end of 2011, and total interest revenue on mortgage loans increased $869,000 in 2012 compared to 2011, partially offsetting the decrease in interest revenue on investment securities.
Total deposits increased $33 million to $2.6 billion at December 31, 2012. Although the increase in total deposits was not significant, the continued growth in non-interest bearing deposits was noteworthy. Non-interest bearing demand deposits grew 29.2% in 2012 after growing 30.9% in 2011, ending the year at $510.8 million, or 19.5% of total deposits, compared to 15.3% of total deposits at December 31, 2011. CDs, conversely, fell 16.5% during 2012 and finished the year comprising only 28.4% of total funding compared to 34.4% at December 31, 2011. Aggressive sales efforts and multiple strategies on non-interest bearing demand accounts, combined with multiple acquisitions, have contributed to success on improving the Company's deposit mix.
Credit Quality
For the year ended December 31, 2012, nonperforming assets decreased $38.8 million, or 33.0%, to $78.7 million. Non-accrual loans declined $31.9 million to $38.9 million at December 31, 2012, and legacy OREO declined $6.8 million to $39.9 million at the end of the year. The Company's bulk sale of non-performing assets in the first quarter of 2012 reduced non-performing loans by $16.1 million, OREO by $13.3 million and classified accruing loans by $1.8 million.
Total classified loans declined 29.3% during 2012, ending the year at $73.3 million, compared to $103.6 million at December 31, 2011. A slower pace of migration to classified and non-accrual status during 2012 compared to prior years and an accelerated pace of resolution led to the improvement in classified assets.
The Company's provision for loan losses during 2012 totaled $31.1 million, compared to $32.7 million in 2011. Combined with non-provision expenses, credit costs totaled $54.2 million in 2012, only a slight decline from the $58.1 million in 2011. During the fourth quarter of 2012, credit costs totaled only $7.2 million, the Company's lowest amount of such costs in seventeen quarters. Speaking on credit quality, Mr. Hortman commented, "We were successful in our goal to make a major move on NPAs, reducing them by 33% during 2012. As we move into 2013, our efforts are focused on maintaining a downward slope on classified assets while managing materially lower credit costs. With classified assets to capital in the 30% range, credit quality is not an impediment to executing our strategies, and we believe the move we made on quality in 2012 will reflect positively in 2013's earnings."
Capital Levels
During the fourth quarter of 2012, the Company repurchased $24 million in shares of the preferred stock originally issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP) in November 2008. The reduction in preferred stock will reduce the dividends payable and will positively impact the Company's 2013 financial results by approximately $1.5 million. The Company anticipates repurchasing the remainder of the original $52 million TARP preferred stock investment prior to February 2014, subject to the receipt of regulatory approval.
In addition, the Company's tangible common equity as a percentage of tangible assets increased to 8.20% at December 31, 2012, compared to 7.99% at December 31, 2011.
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 66 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.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
----- ---- ---- ---- ---- ----
2012 2012 2012 2011 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
EARNINGS
Net Income/
(Loss)
Available to
Common
Shareholders $3,554 $1,076 $1,678 $4,550 $322 $10,859 $17,852
PER COMMON SHARE DATA
Earnings per
share
available to
common
shareholders:
Basic $0.15 $0.05 $0.07 $0.19 $0.01 $0.46 $0.76
Diluted $0.15 $0.04 $0.07 $0.19 $0.01 $0.46 $0.76
Cash
Dividends
per share $ - $ - $ - $ - $ - $ - $ -
Stock
dividend - - - - - - -
Book value
per share
(period end) $10.56 $10.41 $10.49 $10.36 $10.23 $10.56 $10.23
Tangible book
value per
share
(period end) $10.39 $10.23 $10.29 $10.15 $10.06 $10.39 $10.06
Weighted
average
number of
shares:
Basic 23,815,583 23,819,144 23,818,814 23,762,196 23,457,739 23,801,500 23,446,350
Diluted 23,857,095 23,973,369 23,973,039 23,916,421 23,611,964 23,843,012 23,538,468
Period-end
number of
shares 23,799,768 23,819,144 23,819,144 23,814,144 23,751,294 23,799,768 23,751,291
Market data:
High closing price $12.71 $12.88 $13.40 $13.32 $10.66 $13.40 $11.10
Low closing price $10.50 $11.27 $10.88 $10.34 $8.55 $10.34 $8.47
Period end closing price $12.49 $12.59 $12.60 $13.14 $10.28 $12.49 $10.28
Average daily volume 48,295 45,543 58,370 59,139 68,654 52,830 61,619
PERFORMANCE RATIOS
Return on
average
assets 0.62% 0.26% 0.34% 0.72% 0.15% 0.49% 0.71%
Return on
average
common
equity 7.72% 3.12% 4.12% 8.89% 1.82% 6.00% 8.52%
Earning asset
yield (TE) 5.22% 5.06% 5.33% 5.22% 6.07% 5.20% 5.68%
Total cost of
funds 0.44% 0.51% 0.62% 0.69% 0.80% 0.56% 1.03%
Net interest
margin (TE) 4.75% 4.52% 4.66% 4.48% 5.21% 4.60% 4.57%
Non-interest
income
excluding
securities
transactions,
as a percent of total
revenue (TE) (1) 25.39% 23.60% 21.10% 12.15% 14.81% 19.84% 13.20%
Efficiency
ratio 71.85% 75.68% 70.51% 62.27% 72.76% 69.35% 61.30%
CAPITAL ADEQUACY (period end)
Stockholders'
equity to
assets 9.24% 10.14% 10.31% 9.78% 9.81% 9.24% 9.81%
Tangible
common
equity to
tangible
assets 8.20% 8.27% 8.41% 7.95% 7.99% 8.20% 7.99%
EQUITY TO ASSETS RECONCILIATION
Tangible
common
equity to
tangible
assets 8.20% 8.27% 8.41% 7.95% 7.99% 8.20% 7.99%
Effect of
preferred
equity 0.92% 1.74% 1.75% 1.67% 1.69% 0.92% 1.69%
Effect of
goodwill and
other
intangibles 0.12% 0.14% 0.15% 0.16% 0.13% 0.12% 0.13%
Equity to assets (GAAP) 9.24% 10.15% 10.31% 9.78% 9.81% 9.24% 9.81%
==== ===== ===== ==== ==== ==== ====
OTHER PERIOD-END DATA
FTE Headcount 866 872 839 827 746 866 746
Assets per
FTE $3,486 $3,382 $3,481 $3,680 $4,014 $3,486 $4,014
Branch
locations 66 66 67 67 62 66 62
Deposits per
branch
location $39,768 $39,093 $37,980 $39,781 $41,799 $39,768 $41,799
(1)Includes gain from acquisition.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
INCOME STATEMENT
Interest income
Interest and fees
on loans $30,329 $29,165 $30,334 $29,482 $35,361 $119,310 $128,841
Interest on
taxable
securities 1,737 2,017 2,187 2,309 2,350 8,250 10,254
Interest on
nontaxable
securities 371 365 374 365 357 1,475 1,321
Interest on
deposits in other
banks 102 104 108 120 148 434 617
Interest on
federal funds
sold - - 4 6 7 10 38
Total interest income 32,539 31,651 33,007 32,282 38,223 129,479 141,071
------ ------ ------ ------ ------ ------- -------
Interest expense
Interest on
deposits $2,603 $3,005 $3,635 $4,084 $4,875 $13,327 $25,506
Interest on other
borrowings 377 408 491 471 580 1,747 2,041
-----------------
Total interest expense 2,980 3,413 4,126 4,555 5,455 15,074 27,547
----- ----- ----- ----- ----- ------ ------
Net interest income 29,559 28,238 28,881 27,727 32,768 114,405 113,524
Provision for loan losses 4,442 6,540 7,225 12,882 9,019 31,089 32,729
----- ----- ----- ------ ----- ------ ------
Net interest income/(loss) after provision for loan
losses $25,117 $21,698 $21,656 $14,845 $23,749 $83,316 $80,795
------- ------- ------- ------- ------- ------- -------
Noninterest income
Service charges on
deposit accounts $5,299 $5,121 $4,770 $4,386 $4,483 $19,576 $18,081
Mortgage banking
activity 4,768 3,740 3,006 1,475 1,209 12,989 2,971
Other service
charges,
commissions and
fees 387 331 322 391 340 1,431 1,247
Gain(loss) on sale
of securities 536 - - - - 536 238
Gains from
acquisitions - - - 20,037 - 20,037 26,867
Other non-
interest income 914 639 777 975 657 3,305 3,403
Total noninterest income 11,904 9,831 8,875 27,264 6,689 57,874 52,807
------ ----- ----- ------ ----- ------ ------
Noninterest expense
Salaries and
employee benefits 13,021 11,446 10,727 10,262 9,753 45,456 38,068
Occupancy and
equipment
expenses 3,476 3,190 2,807 3,253 2,642 12,726 11,241
Data processing
and
telecommunications
expenses 3,119 2,510 2,832 1,880 2,610 10,341 10,220
Mortgage banking
expenses
including
commissions 3,589 2,958 1,861 1,483 1,234 9,891 2,622
Credit related
expenses (1) 2,548 3,706 3,423 12,739 7,784 22,416 22,448
Advertising and
marketing
expenses 488 421 364 349 221 1,622 722
Amortization of
intangible assets 364 364 412 220 220 1,360 1,002
Goodwill
impairment - - - - - 0 -
Other non-
interest expenses 3,186 4,215 4,197 4,060 4,246 15,657 15,630
Total noninterest expense 29,791 28,810 26,623 34,246 28,710 119,469 101,953
------ ------ ------ ------ ------ ------- -------
Operating profit/(loss) $7,230 $2,719 $3,908 $7,863 $1,728 $21,721 $31,649
Income tax
(benefit)/expense 2,558 816 1,413 2,498 587 7,285 10,556
-----------------
Net income/(loss) $4,672 $1,903 $2,495 $5,365 $1,141 $14,436 $21,093
====== ====== ====== ====== ====== ======= =======
Preferred stock dividends 1,118 827 817 815 819 3,577 3,241
----- --- --- --- --- ----- -----
Net income/(loss) available
to common shareholders $3,554 $1,076 $1,678 $4,550 $322 $10,859 $17,852
====== ====== ====== ====== ==== ======= =======
Diluted earnings available to common shareholders 0.15 0.04 0.07 0.19 0.01 0.46 0.76
==== ==== ==== ==== ==== ==== ====
(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
------------------
Dec. Sept. Jun. Mar. Dec.
2012 2012 2012 2012 2011
---- ---- ---- ---- ----
PERIOD-END BALANCE SHEET
Assets
Cash and due
from banks $80,256 $57,289 $60,126 $64,963 $65,528
Federal funds
sold and
interest
bearing
balances 193,677 66,872 111,251 194,172 229,042
Investment
securities
available for
sale, at fair
value 346,909 361,051 366,980 371,791 339,967
Other
investments 6,832 7,003 7,884 10,967 9,878
Mortgage loans
held for sale 48,786 29,021 19,659 14,863 11,563
Loans, net of
unearned income 1,450,635 1,439,862 1,365,489 1,323,844 1,332,086
Covered loans 507,712 546,234 601,737 653,377 571,489
Less allowance
for loan losses 23,593 25,901 26,198 28,689 35,156
---------------
Loans, net 1,934,754 1,960,195 1,941,028 1,948,532 1,868,419
Foreclosed
assets 39,850 37,325 36,397 36,414 46,680
Covered
foreclosed
assets 88,273 88,895 83,467 85,803 78,617
-----------
Total foreclosed assets 128,123 126,220 119,864 122,217 125,297
Premises and
equipment, net 75,983 75,609 75,192 72,755 73,124
Intangible
assets, net 3,040 3,404 3,767 4,179 3,250
Goodwill 956 956 956 956 956
FDIC loss
sharing
receivable 159,724 198,440 203,801 220,016 242,394
Cash value of
bank owned life
insurance 15,603 50,087 - - -
Other assets 24,409 13,236 9,803 17,823 24,889
Total assets $3,019,052 $2,949,383 $2,920,311 $3,043,234 $2,994,307
========== ========== ========== ========== ==========
Liabilities
Deposits:
Noninterest-bearing $510,751 $464,503 $429,113 $444,707 $395,347
Interest-bearing 2,113,912 2,115,614 2,115,559 2,220,653 2,196,219
--------- --------- --------- --------- ---------
Total deposits 2,624,663 2,580,117 2,544,672 2,665,360 2,591,566
Federal funds
purchased &
securities sold
under
agreements to repurchase 50,120 17,404 19,800 28,790 37,665
Other borrowings - - 3,810 3,810 20,000
Other
liabilities 22,983 10,387 8,821 5,308 9,037
Subordinated
deferrable
interest
debentures 42,269 42,269 42,269 42,269 42,269
Total liabilities 2,740,035 2,650,177 2,619,372 2,745,537 2,700,537
--------- --------- --------- --------- ---------
Stockholders' equity
Preferred stock $27,662 $51,207 $51,044 $50,884 $50,727
Common stock 25,155 25,155 25,155 25,150 25,087
Capital surplus 164,949 164,182 166,685 166,579 166,639
Retained earnings 65,710 62,156 61,081 59,402 54,852
Accumulated other comprehensive income/(loss) 6,607 7,337 7,805 6,513 7,296
Less treasury stock (11,066) (10,831) (10,831) (10,831) (10,831)
-------
Total stockholders' equity 279,017 299,206 300,939 297,697 293,770
------- ------- ------- ------- -------
Total liabilities and
stockholders' equity $3,019,052 $2,949,383 $2,920,311 $3,043,234 $2,994,307
========== ========== ========== ========== ==========
Other Data
Earning Assets 2,547,719 2,443,040 2,465,116 2,558,047 2,484,147
Intangible Assets 3,996 4,360 4,723 5,135 4,206
Interest Bearing Liabilities 2,206,301 2,175,287 2,181,438 2,295,522 2,296,153
Average Assets 2,985,116 2,935,715 2,966,527 2,978,469 2,965,799
Average Common Stockholders' Equity 240,787 242,614 243,463 242,817 248,729
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
ASSET QUALITY INFORMATION(1)
Allowance for loan losses
Balance at
beginning of
period $25,901 $26,198 $28,689 $35,156 $35,238 $35,156 $34,576
- -
Provision for
loan loss (2) 4,091 5,690 6,070 12,600 8,243 28,451 30,341
Charge-offs 6,996 6,092 8,738 19,337 8,909 41,163 31,623
Recoveries 597 105 177 270 584 1,149 1,862
--- --- --- --- --- ----- -----
Net charge-
offs
(recoveries) 6,399 5,987 8,561 19,067 8,325 40,014 29,761
Ending balance $23,593 $25,901 $26,198 $28,689 $35,156 $23,593 $35,156
==============
As a percentage
of loans 1.63% 1.80% 1.92% 2.17% 2.64% 1.63% 2.64%
As a percentage
of
nonperforming
loans 60.67% 67.76% 58.98% 54.90% 49.64% 60.67% 49.64%
Net charge-off information
Charge-offs
Commercial,
Financial and
Agricultural $562 $235 $499 $155 $1,952 $1,451 $5,807
Real Estate -
Residential 2,080 2,268 2,251 2,123 1,758 8,722 5,399
Real Estate -
Commercial and
Farmland 2,352 715 4,520 12,964 829 20,551 8,680
Real Estate -
Construction
and
Development 1,561 2,608 1,281 3,930 4,129 9,380 10,988
Consumer
Installment 441 266 187 165 241 1,059 749
Other - - - - - - -
Total charge-offs 6,996 6,092 8,738 19,337 8,909 41,163 31,623
----- ----- ----- ------ ----- ------ ------
Recoveries
Commercial,
Financial and
Agricultural 56 23 30 48 21 157 174
Real Estate -
Residential 26 37 21 141 39 225 146
Real Estate -
Commercial and
Farmland 450 8 8 16 9 482 52
Real Estate -
Construction
and
Development 17 4 2 17 494 40 1,367
Consumer
Installment 48 33 116 48 21 245 123
Other - - - - - - -
Total recoveries 597 105 177 270 584 1,149 1,862
--- --- --- --- --- ----- -----
Net charge-
offs
(recoveries) $6,399 $5,987 $8,561 $19,067 $8,325 $40,014 $29,761
============
Non-accrual loans 38,885 38,225 44,421 52,258 70,823 38,885 70,823
Foreclosed assets 39,850 37,325 36,397 36,414 46,680 39,850 46,680
Accruing loans delinquent 90 days or more - - 1 - - - -
--- --- --- --- ---
Total non-performing assets 78,735 75,550 80,819 88,672 117,503 78,735 117,503
------ ------ ------ ------ ------- ------ -------
Non-performing assets as a percent of total
assets 2.61% 2.56% 2.77% 2.91% 3.92% 2.61% 3.92%
Net charge offs as a percent of loans
(Annualized) 1.75% 1.65% 2.52% 5.79% 2.48% 2.76% 2.23%
(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 2011 and 2012, the Company recorded provision for loan loss expense to account for losses where the initial estimate of cash flows was found to be excessive on loans
acquired in FDIC assisted acquisitions. These amounts are excluded from the calculation above but reflected in the Company's Consolidated Statement of Operations.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
For the quarter ended:
----------------------
Dec. Sept. Jun. Mar. Dec.
Loans by Type 2012 2012 2012 2012 2011
---- ---- ---- ---- ----
Commercial, financial & agricultural $174,217 $189,374 $174,903 $149,320 $142,960
Real estate - construction & development 114,199 125,315 124,556 122,331 130,270
Real estate - commercial & farmland 732,322 713,240 675,404 658,054 672,765
Real estate - residential 346,480 343,332 332,124 328,053 330,727
Consumer installment 40,178 43,441 41,431 42,085 37,296
Other 43,239 25,160 17,071 24,001 18,068
Total Legacy (non-covered) $1,450,635 $1,439,862 $1,365,489 $1,323,844 $1,332,086
---------- ---------- ---------- ---------- ----------
Commercial, financial & agricultural $32,606 $37,167 $41,372 $43,157 $41,867
Real estate - construction & development 70,184 73,356 83,991 93,430 77,077
Real estate - commercial & farmland 278,506 298,903 322,393 350,244 321,257
Real estate - residential 125,056 135,154 150,683 162,768 127,644
Consumer installment 1,360 1,654 3,298 3,778 3,644
Total Covered (at fair value) $507,712 $546,234 $601,737 $653,377 $571,489
-------- -------- -------- -------- --------
Total Loan Portfolio:
Commercial, financial & agricultural $206,823 $226,541 $216,275 $192,477 $184,827
Real estate - construction & development 184,383 198,671 208,547 215,761 207,347
Real estate - commercial & farmland 1,010,828 1,012,143 997,797 1,008,298 994,022
Real estate - residential 471,536 478,486 482,807 490,821 458,371
Consumer installment 41,538 45,095 44,729 45,863 40,940
Other 43,239 25,160 17,071 24,001 18,068
Total Loans $1,958,347 $1,986,096 $1,967,226 $1,977,221 $1,903,575
---------- ---------- ---------- ---------- ----------
Troubled Debt Restructurings:
Accruing loan types:
Commercial, financial & agricultural $802 $804 $ - $ - $ -
Real estate - construction & development 1,735 1,481 1,205 1,305 1,774
Real estate - commercial & farmland 8,947 9,540 13,293 17,765 9,622
Real estate - residential 7,254 8,068 8,472 7,778 6,555
Consumer installment 6 - - - -
Total Accruing TDRs $18,744 $19,893 $22,970 $26,848 $17,951
------- ------- ------- ------- -------
Non-accruing loan types:
Commercial, financial & agricultural $ - $ - $18 $ - $ -
Real estate - construction & development - - 1,124 1,626 2,122
Real estate - commercial & farmland 4,149 2,770 2,815 2,176 4,737
Real estate - residential 1,022 620 1,213 1,065 1,296
Consumer installment - - - - -
Total Non-accrual TDRs $5,171 $3,390 $5,170 $4,867 $8,155
------ ------ ------ ------ ------
Total Troubled Debt Restructurings $23,915 $23,283 $28,140 $31,715 $26,106
======= ======= ======= ======= =======
The following table presents the non-covered loan portfolio by risk grade:
Grade 10 - Prime credit $32,993 $34,809 $28,282 $26,454 $23,930
Grade 15 - Good credit 236,500 244,466 251,157 256,854 261,489
Grade 20 - Satisfactory credit 641,950 592,282 540,562 495,252 485,364
Grade 23 - Performing, under-
collateralized credit 31,433 30,176 30,131 29,631 29,730
Grade 25 - Minimum acceptable credit 399,210 427,599 397,984 387,133 386,365
Grade 30 -Other asset especially
mentioned 35,298 35,478 36,307 42,329 41,584
Grade 40 - Substandard 72,994 74,606 80,824 85,666 102,947
Grade 50 - Doubtful 257 446 242 522 677
Grade 60 - Loss - - - 3 -
--- --- --- --- ---
Total $1,450,635 $1,439,862 $1,365,489 $1,323,844 $1,332,086
---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
AVERAGE BALANCES
Federal funds sold $57 $10 $17,665 $27,160 $29,108 $14,800 $30,206
Interest bearing deposits in
banks 152,875 125,775 128,008 157,223 203,031 140,701 213,409
Investment securities - taxable 300,773 316,967 324,879 309,592 293,821 313,362 287,008
Investment securities -
nontaxable 52,017 47,819 46,049 46,520 44,255 48,111 40,420
Other investments 6,702 7,213 8,893 10,076 10,276 8,261 11,308
Mortgage loans held for sale 46,763 31,759 21,603 17,891 13,613 29,194 4,921
Loans 1,424,302 1,398,468 1,356,845 1,311,255 1,321,629 1,393,012 1,343,636
Covered loans 519,892 574,897 601,802 602,353 600,367 553,657 570,719
------- ------- ------- ------- -------
Total Earning Assets $2,503,381 $2,502,908 $2,505,744 $2,482,070 $2,516,100 $2,501,098 $2,501,627
---------- ---------- ---------- ---------- ---------- ---------- ----------
Noninterest bearing deposits $502,069 $452,019 $432,535 $405,112 $395,346 $447,111 $344,021
NOW accounts 626,440 593,204 605,494 619,047 607,258 610,399 592,043
MMDA 606,908 631,231 616,449 598,956 597,088 613,296 561,978
Savings accounts 100,722 102,129 97,097 87,219 80,074 96,493 79,325
Retail CDs < $100,000 342,518 365,807 369,651 373,519 396,058 361,083 422,274
Retail CDs > $100,000 391,075 430,677 410,855 444,838 471,329 412,185 494,301
Brokered CDs 34,588 41,799 59,526 61,287 76,250 57,273 97,242
------
Total Deposits 2,604,320 2,616,866 2,591,607 2,589,978 2,623,403 2,597,840 2,591,184
--------- --------- --------- --------- --------- --------- ---------
FHLB advances - 2,160 3,810 8,282 20,707 3,635 18,008
Subordinated debentures 42,269 42,269 42,269 42,269 42,269 42,269 42,269
Federal funds purchased and
securities sold
under agreements to repurchase 36,165 17,146 23,042 29,898 29,417 26,563 22,275
Other borrowings - - - - - - -
---
Total Non-Deposit Funding 78,434 61,575 69,121 80,449 92,393 72,467 82,552
------ ------ ------ ------ ------ ------ ------
Total Funding $2,682,754 $2,678,441 $2,660,728 $2,670,427 $2,715,796 $2,670,307 $2,673,736
---------- ---------- ---------- ---------- ---------- ---------- ----------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold $ - $ - $4 $6 $7 $10 $38
Interest bearing deposits in banks 102 104 108 120 148 434 617
Investment securities - taxable 1,737 2,017 2,187 2,309 2,350 8,250 10,245
Investment securities -nontaxable
(TE) 501 493 505 493 549 1,991 2,032
Mortgage loans held for sale 455 285 177 141 135 1,058 189
Loans (TE) 20,224 19,983 19,396 18,169 19,070 77,772 79,207
Covered loans 9,859 8,951 10,808 10,972 16,217 40,590 49,648
----- ----- ------ ------ ------
Total Earning Assets $32,878 $31,833 $33,185 $32,210 $38,476 $130,105 $141,976
------- ------- ------- ------- ------- -------- --------
INTEREST EXPENSE
Non-interest bearing deposits $ - $ - $ - $ - $ - $ - $ -
NOW accounts 340 300 447 526 671 1,613 3,730
MMDA 537 625 808 841 930 2,811 5,224
Savings accounts 30 32 36 34 45 132 356
Retail CDs < $100,000 600 726 834 941 1,074 3,101 5,698
Retail CDs > $100,000 815 990 1,072 1,240 1,557 4,117 7,455
Brokered CDs 281 332 438 502 598 1,553 3,041
Total Deposits 2,603 3,005 3,635 4,084 4,875 13,327 25,504
----- ----- ----- ----- ----- ------ ------
FHLB advances - 15 26 69 183 110 460
Subordinated debentures 332 362 427 361 363 1,482 1,410
Repurchase agreements 43 29 37 40 33 149 164
Correspondent bank line of credit
and other 2 2 1 1 1 6 3
--- --- --- --- --- ---
Total Non-Deposit Funding 377 408 491 471 580 1,747 2,037
--- --- --- --- --- ----- -----
Total Funding $2,980 $3,413 $4,126 $4,555 $5,455 $15,074 $27,541
------ ------ ------ ------ ------ ------- -------
Net Interest Income (TE) $29,898 $28,420 $29,059 $27,655 $33,021 $115,031 $114,435
------- ------- ------- ------- ------- -------- --------
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
YIELDS (1)
Federal funds sold 0.00% 0.00% 0.09% 0.09% 0.10% 0.07% 0.13%
Interest bearing deposits in banks 0.27% 0.33% 0.34% 0.31% 0.29% 0.31% 0.29%
Investment securities - taxable 2.30% 2.53% 2.71% 3.00% 3.17% 2.63% 3.57%
Investment securities - nontaxable 3.83% 4.10% 4.41% 4.26% 4.92% 4.14% 5.03%
Mortgage loans held for sale 3.87% 3.57% 3.30% 3.17% 3.93% 3.62% 3.84%
Loans 5.65% 5.68% 5.75% 5.57% 5.72% 5.58% 5.89%
Covered loans 7.54% 6.19% 7.22% 7.33% 10.72% 7.33% 8.70%
---- ---- ---- ---- ----- ---- ----
Total Earning Assets (2) 5.22% 5.06% 5.33% 5.22% 6.07% 5.20% 5.68%
Noninterest bearing deposits 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
NOW accounts 0.22% 0.20% 0.30% 0.34% 0.44% 0.26% 0.63%
MMDA 0.35% 0.39% 0.53% 0.56% 0.62% 0.46% 0.93%
Savings accounts 0.12% 0.12% 0.15% 0.16% 0.22% 0.14% 0.45%
Retail CDs < $100,000 0.70% 0.79% 0.91% 1.01% 1.08% 0.86% 1.35%
Retail CDs > $100,000 0.83% 0.91% 1.05% 1.12% 1.31% 1.00% 1.51%
Brokered CDs 3.23% 3.16% 2.96% 3.29% 3.11% 2.71% 3.13%
---- ---- ---- ---- ---- ---- ----
Total Deposits 0.40% 0.46% 0.56% 0.63% 0.74% 0.51% 0.98%
FHLB advances 0.00% 2.76% 2.74% 3.35% 3.51% 3.03% 2.55%
Subordinated debentures 3.12% 3.41% 4.06% 3.43% 3.41% 3.51% 3.34%
Repurchase agreements 0.47% 0.67% 0.65% 0.54% 0.45% 0.56% 0.74%
Correspondent bank line of credit
and other 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
---- ---- ---- ---- ---- ---- ----
Total Non-Deposit Funding 1.91% 2.64% 2.86% 2.35% 2.49% 2.41% 2.47%
Total funding (3) 0.44% 0.51% 0.62% 0.69% 0.80% 0.56% 1.03%
---- ---- ---- ---- ---- ---- ----
Net interest spread 4.78% 4.55% 4.70% 4.53% 5.27% 4.64% 4.65%
Net interest margin (2) 4.75% 4.52% 4.66% 4.48% 5.21% 4.60% 4.57%
==== ==== ==== ==== ==== ==== ====
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 35%.
(2) Rate calculated based on average earning assets.
(3) Rate calculated based on total average funding including non-interest bearing liabilities.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
Core Earnings Reconciliation 2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
Pre-tax operating profit/(loss) $7,230 $2,719 $3,908 $7,863 $1,728 $21,721 $31,649
Plus: Credit Related Costs
Provision for loan losses 4,442 6,540 7,225 12,882 9,019 31,089 32,729
(Gains)/Losses on the sale of legacy OREO 464 983 813 7,252 4,533 9,512 13,355
Problem loan and OREO expense 2,084 2,724 2,610 5,487 3,251 12,905 11,386
Interest reversed (received) on non-accrual loans 227 160 144 187 410 718 613
---
Total Credit-Related Costs 7,217 10,407 10,792 25,808 17,213 54,224 58,083
----- ------ ------ ------ ------ ------ ------
Plus: Non-recurring conversion charges 2,125 - - - 306 2,125 1,609
Plus: Costs associated with capital raise - - - - - - -
Less: Non-recurring gains -
Gains related to FDIC acquisitions - - - (20,037) - (20,037) (26,867)
Gains on sales of securities (536) - - - - (536) (238)
Gains on sales of bank premises - - - - (19) - (167)
Other non-recurring adjustments (2,423) 602 - - (4,198) 1,402 (6,829)
------ --- --- --- ------ ----- ------
Pretax, Pre-provision earnings $13,613 $13,728 $14,700 $13,634 $15,030 $58,899 $57,240
======= ======= ======= ======= ======= ======= =======
As percentage of average assets, annualized 1.81% 1.86% 1.99% 1.84% 2.01% 1.97% 1.93%
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. Sept. Jun. Mar. Dec. Dec. Dec.
Recurring Operating Expenses 2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
Total Operating Expenses 29,791 28,810 26,623 34,246 28,710 119,469 101,953
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO (464) (983) (813) (7,252) (4,533) (9,512) (13,355)
Gains/(Losses) on the sale of covered OREO - - - - - - 2,292
Problem loan and OREO expense (2,084) (2,724) (2,610) (5,487) (3,251) (12,905) (11,386)
Costs associated with capital raise - - - - - - -
Severance payments (750) - (190) (362) (290) (1,302) (290)
Conversion expenses (1,375) - (285) - (306) (1,660) (1,609)
(Gains)/Losses on the sale of premises - - - - 19 - 167
--- --- --- --- --- --- ---
Recurring operating expenses $25,118 $25,103 $22,725 $21,145 $20,349 $94,090 $77,772
======= ======= ======= ======= ======= ======= =======
SOURCE Ameris Bancorp
