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Ameris Bancorp Announces Record Earnings For Third Quarter 2018

JACKSONVILLE, Fla., Oct. 19, 2018 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $41.4 million, or $0.87 per diluted share, for the quarter ended September 30, 2018, compared with $20.2 million, or $0.54 per diluted share, for the quarter ended September 30, 2017.  The Company reported adjusted net income of $43.3 million, or $0.91 per diluted share, for the quarter ended September 30, 2018, compared with $23.6 million, or $0.63 per diluted share, for the third quarter of 2017.  Adjusted net income for the period excludes after-tax merger and conversion charges, executive retirement benefits, restructuring charges related to recently announced branch consolidations and loss on the sale of bank premises.

For the year-to-date period ending September 30, 2018, the Company reported net income of $77.5 million, or $1.85 per diluted share, compared with $64.4 million, or $1.74 per diluted share, for the same period in 2017.  The Company reported adjusted net income of $100.3 million, or $2.40 per diluted share, for the nine months ended September 30, 2018, compared with $68.7 million, or $1.86 per diluted share, for the same period of 2017.  Adjusted net income for the year-to-date period excludes the same items listed above for the Company's quarter-to-date results and as reflected in the table below.

Commenting on the Company's quarterly results, Dennis J. Zember, Jr., the Company's President and Chief Executive Officer, said, "We had an outstanding quarter of operating results where we saw a material move in our efficiency ratio, a stable margin, and solid deposit growth.  Realizing the remaining cost savings on Hamilton and our recently announced cost saving initiatives will move our efficiency closer to 50% and have a material impact on our earnings.  Our operating return on assets and return on tangible capital of 1.53% and 20.50% are already best in class before these additional drivers are fully realized and our operating strategies will deliver the earnings and book value growth that we have forecasted."

Highlights of the Company's performance and results for the third quarter of 2018 include the following:

  • Growth in adjusted net earnings of 83.3% compared with the third quarter of 2017
  • Improvement in the adjusted efficiency ratio to 54.42% in the third quarter of 2018, compared with 57.53% in the second quarter of 2018 and 61.09% in the third quarter of 2017
  • Adjusted return on average assets of 1.53%, compared with 1.26% in the third quarter of 2017
  • Adjusted return on average tangible common equity of 20.50%, compared with 14.28% in the third quarter of 2017
  • 37.7% increase in total revenue, to $129.2 million, in the third quarter of 2018, compared with total revenue of $93.9 million in the third quarter of 2017
  • Organic loan growth of $68.5 million for the quarter, reflecting an annualized growth rate of 3.4%; year-to-date organic loan growth of $490.3 million, or an annualized growth rate of 11.5%
  • Year-over-year organic growth in noninterest bearing deposits of $191.1 million, or 11.1%
  • Improvement in nonperforming assets, decreasing to 0.60% of total assets
  • Annualized net charge-offs of 0.26% of average total loans and 0.44% of average non-purchased loans for the third quarter of 2018

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

Adjusted Net Income Reconciliation









Three Months Ended


Nine Months Ended


September 30,


September 30,

(dollars in thousands except per share data)

2018


2017


2018


2017

Net income available to common shareholders

$

41,444



$

20,158



$

77,491



$

64,398










Adjustment items:








Merger and conversion charges

276



92



19,502



494


Executive retirement benefits

962





6,419




Restructuring charge

229





229




Certain compliance resolution expenses



4,729





4,729


Financial impact of Hurricane Irma



410





410


Loss on sale of premises

4



91



783



956


Tax effect of  adjustment items

377



(1,863)



(4,113)



(2,306)


After-tax adjustment items

1,848



3,459



22,820



4,283










Adjusted net income

$

43,292



$

23,617



$

100,311



$

68,681










Reported net income per diluted share

$

0.87



$

0.54



$

1.85



$

1.74


Adjusted net income per diluted share

$

0.91



$

0.63



$

2.40



$

1.86










Reported return on average assets

1.47

%


1.07

%


1.12

%


1.20

%

Adjusted return on average assets

1.53

%


1.26

%


1.46

%


1.28

%









Reported return on average common equity

11.78

%


10.04

%


9.47

%


11.39

%

Adjusted return on average tangible common equity

20.50

%


14.28

%


18.47

%


14.94

%

 

Credit Quality
During the third quarter of 2018, the Company recorded provision for loan loss expense of $2.1 million, compared with $9.1 million in the second quarter of 2018.  Credit quality in the premium finance division loan portfolio was stable and there was no unexpected additional provision expense in the third quarter, compared to the increased provision in the second quarter of 2018.  As expected, credit costs returned to normal compared with quarters prior to the second quarter of 2018.  Nonperforming assets as a percentage of total assets decreased seven basis points to 0.60% during the quarter.  The net charge-off ratio for non-purchased loans increased 18 basis points, all of which was due to the elevated charge offs in the premium finance division, which were provided for in the second quarter of 2018.

Net Interest Income and Net Interest Margin
Net interest income on a tax-equivalent basis increased to $100.1 million in the current quarter of 2018, an increase of $31.4 million, or 45.8%, from the same quarter in 2017.  The Company's net interest margin, excluding the effects of accretion income, decreased during the quarter to 3.77%, compared with 3.81% in the second quarter of 2018.  Compared with the same quarter in 2017, net interest margin, excluding the effects of accretion income, has decreased by three basis points, while average earning assets grew $3.25 billion during this period.

Interest income on a tax-equivalent basis increased to $122.2 million in the current quarter of 2018, an increase of $44.1 million, or 56.4%, from the same quarter in 2017.  Yields on total earning assets moved higher during the quarter to 4.78%, compared with 4.66% for the second quarter in 2018 and 4.50% in the third quarter of 2017.  Yields on all loans excluding the effect of accretion increased to 4.95% in the current quarter of 2018, compared with 4.81% in the second quarter of 2018 and 4.65% in the third quarter of 2017.  Accretion income in the current quarter increased to $3.7 million, compared with $2.7 million in the second quarter of 2018 and $2.7 million in the third quarter of 2017.  Loan production in the banking division during the third quarter of 2018 totaled $467.5 million, with a weighted average yield of 5.51%, compared with $439.3 million and 5.46%, respectively, in the second quarter of 2018 and $409.2 million and 4.74%, respectively, in the third quarter of 2017.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $2.0 billion during the third quarter of 2018.

Interest expense during the third quarter of 2018 moved higher to $22.1 million, compared with $13.9 million in the second quarter of 2018 and $9.5 million in the third quarter of 2017.  The Company's total cost of funds moved 15 basis points higher to 0.90% in the third quarter of 2018 as compared with the second quarter of 2018.  Deposit costs increased 22 basis points during the third quarter of 2018 to 0.69%, compared with 0.47% in the second quarter of 2018.  Costs of interest-bearing deposits increased during the quarter from 0.67% in the second quarter of 2018 to 0.93% in the third quarter, with approximately 12 basis points of this increase relating to the increase in brokered funds.

Non-interest Income
Non-interest income in the third quarter of 2018 was $30.2 million, an increase of $3.2 million, or 11.7%, compared with the same quarter in 2017.  Service charge revenue increased $2.2 million, or 20.5%, in the third quarter of 2018, as compared with the same period of 2017, due to the Company's recently completed acquisitions.

Revenue in the retail mortgage group totaled $17.6 million in the third quarter of 2018, an increase of 6.8% compared with $16.5 million in the third quarter of 2017.  Total production in the third quarter of 2018 for the retail mortgage group amounted to $479.1 million (87% purchase and 13% refinance), compared with $401.7 million in the same quarter of 2017 (89% purchase and 11% refinance).  Gain on sale spreads improved in the third quarter, moving to 3.00% from 2.94% in the second quarter.  The Company's open pipeline at the end of the third quarter of 2018 was $162.4 million, compared with $228.7 million at June 30, 2018 and $158.4 million at the end of the third quarter of 2017.

The Company's warehouse lending group continued to increase its profitability, as revenues from the division increased by $854,000, or 40.3%, during the third quarter of 2018, compared with the same period in 2017.  Net income for the division increased 94.0% from $1.1 million in the third quarter of 2017 to $2.2 million in the third quarter of 2018.  Loan production increased from $957.3 million in the third quarter of 2017 to approximately $1.22 billion in the current quarter.

Revenues from the Company's SBA division were $2.5 million during the third quarter of 2018, compared with $2.1 million during the third quarter of 2017, and net income for the division increased 62.8% from $734,000 for the third quarter of 2017 to $1.2 million for the third quarter of 2018.  The open pipeline increased to $99.5 million at the end of the quarter, compared with $56.0 million at the same time last year.

Non-interest Expense
Non-interest expense totaled $72.4 million in the third quarter of 2018, a decrease of $14.0 million compared with $86.4 million in the second quarter of 2018.  During the third quarter of 2018, the Company recorded $276,000 of merger and conversion charges, $962,000 of expense related to executive retirement, $229,000 of restructuring charges related to the Company's recently announced branch consolidation plan and $4,000 of loss on sale of bank premises, compared with $18.4 million of merger and conversion charges, $5.5 million of expense related to executive retirement and $196,000 of loss on sale of bank premises recorded in the second quarter of 2018.  Excluding these charges, operating expenses increased approximately $8.5 million, or 13.7%, to $70.9 million in the third quarter of 2018, up from $62.3 million in the second quarter of 2018.  Substantially all of the increase in operating expenses related to additional compensation and occupancy costs associated with the acquisitions of Atlantic Coast Financial Corporation ("Atlantic") and Hamilton State Bancshares, Inc. ("Hamilton") during the second quarter of 2018.

The Company continues to focus on improving its operating efficiency ratio. During the third quarter of 2018, the Company's adjusted efficiency ratio declined to 54.42%, compared with 57.53% in the second quarter of 2018.  Management expects to continue improving efficiency in future quarters as a result of the recently completed acquisitions of Atlantic and Hamilton, as well as from the recently announced cost savings strategies and branch consolidation plan.  Atlantic was fully integrated and cost savings were realized in the third quarter of 2018, while Hamilton was not fully integrated until early October 2018, with full cost savings benefits expected to be realized beginning in the fourth quarter of 2018.  The Company's additional branch consolidation and cost saving initiatives will take effect the first quarter of 2019.

Exclusive of the executive retirement expense in each quarter, salaries and benefits increased $3.2 million during the third quarter of 2018 to $37.5 million, from $34.3 million in the second quarter of 2018.  The increase is attributable to $4.8 million of additional salary expense from the acquisitions, offset by decreased expense in the retail mortgage division and reduced incentive and commission accruals based on production.  Management anticipates decreases in salary expense in the fourth quarter of 2018, when the full benefit of cost savings from the Hamilton acquisition and data conversion will become effective.

Occupancy costs increased 34.6% from $6.4 million in the second quarter of 2018 to $8.6 million in the third quarter of 2018, and data processing increased 32.3% from $6.4 million in the second quarter of 2018 to $8.5 million in the third quarter of 2018.  Both of these increases were directly attributable to the increased number of branches from the Hamilton acquisition, which was acquired the last business day of the second quarter of 2018.  Other operating costs increased by only $301,000, or 2.8%, to $11.1 million in the third quarter of 2018, primarily as a result of expenses from the increased branch network, offset by re-engineering efforts in the administrative and support cost centers.

Total credit costs (including provision and non-provision credit resolution-related costs) totaled $3.3 million in the third quarter of 2018, compared with $3.1 million in the same quarter in 2017 and $10.2 million in the second quarter of 2018.

Income Tax Expense
The Company's effective tax rate for the third quarter of 2018 was 24.3%, compared with 20.5% in the second quarter of 2018 and 28.8% during the third quarter of 2017.  The Company's effective tax rate for the nine months ended September 30, 2018 was 23.2% and management expects that its effective tax rates in the future will be consistent with the year-to-date blended rate of  22% to 24%.  The decrease in effective tax rates in 2018, compared with 2017, is a result of the Tax Cuts and Jobs Act that was enacted in the fourth quarter of 2017.

Balance Sheet Trends
Total assets at September 30, 2018 were $11.43 billion, compared with $7.86 billion at December 31, 2017.   Loans, including loans held for sale, totaled $8.66 billion at September 30, 2018, compared with $6.24 billion at December 31, 2017 and $8.63 billion at June 30, 2018. Excluding the effects of recent acquisitions, growth in core loans (including legacy and purchased non-covered loans) during the quarter amounted to $68.5 million, or 3.4% on an annualized basis, and amounted to $490.3 million, or 11.5%, for the year-to-date period.  Net loan growth slowed in the third quarter due to the negative impact of early paydowns while production remained strong, increasing by over 14% as compared with the third quarter of 2017.  The growth in legacy loans was realized in commercial real estate, residential real estate and consumer installment loans, while the commercial and industrial and agriculture and real estate construction and development categories both declined during the quarter.  Loans held for sale, which includes both residential mortgage and SBA-guaranteed loans, decreased $7.1 million during the third quarter of 2018.  The Company's efforts to manage a diversified loan portfolio have resulted in concentration levels that are solidly below applicable regulatory guidance.

Investment securities at the end of the third quarter of 2018 were $1.20 billion, or 11.6% of earning assets, compared with $853.1 million, or 11.7% of earning assets, at December 31, 2017.

At September 30, 2018, total deposits amounted to $9.18 billion, or 92.4% of total funding, compared with $6.63 billion and 94.8%, respectively, at December 31, 2017.  Compared with the same period in 2017, deposits have increased by $3.29 billion, or 55.7%.  Excluding the recently completed acquisitions, deposits increased $191.1 million, or 11.1%.  Non-interest bearing deposits at the end of the current quarter were $2.33 billion, or 25.4% of total deposits, compared with $1.78 billion, or 26.8%, at December 31, 2017.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $4.35 billion at September 30, 2018, compared with $3.52 billion at the end of 2017.  These funds represented 47.4% of the Company's total deposits at September 30, 2018, compared with 53.1% at the end of 2017.

Shareholders' equity at September 30, 2018 totaled $1.40 billion, compared with $804.5 million at December 31, 2017.  The increase in shareholders' equity resulted from the issuance of new shares of common stock in the Company's acquisitions of Atlantic, Hamilton and US Premium Finance Holding Company, plus earnings of $77.5 million during the year.  Tangible book value per share at September 30, 2018 was $17.78, compared with $17.12 per share at June 30, 2018.

Conference Call
The Company will host a teleconference at 10:00 a.m. Eastern time today (October 19, 2018) 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 November 2, 2018.  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 10124934.  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 125 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 on which they were made.  The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance.  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, including, without limitation, the following:  general competitive, economic, political and market conditions and fluctuations, including, without limitation, movements in interest rates; competitive pressures on product pricing and services; the businesses of the Company and Hamilton may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger transactions may not be fully realized within the expected timeframes; disruption from the merger transactions may make it more difficult to maintain relationships with customers, employees or others; diversion of management time to merger-related issues; and the success and timing of other business strategies.  For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017 and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  Forward-looking statements speak only as of the date they are made, and 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.

 


AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Financial Highlights



Table 1


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands except per share data)

2018


2018


2018


2017


2017


2018


2017















EARNINGS














Net income

$

41,444



$

9,387



$

26,660



$

9,150



$

20,158



$

77,491



$

64,398


Adjusted net income

$

43,292



$

29,239



$

27,780



$

23,590



$

23,617



$

100,311



$

68,681
















COMMON SHARE DATA














Earnings per share available to common

shareholders














Basic

$

0.87



$

0.24



$

0.70



$

0.25



$

0.54



$

1.86



$

1.76


Diluted

$

0.87



$

0.24



$

0.70



$

0.24



$

0.54



$

1.85



$

1.74


Adjusted Diluted EPS

$

0.91



$

0.74



$

0.73



$

0.63



$

0.63



$

2.40



$

1.86


Cash dividends per share

$

0.10



$

0.10



$

0.10



$

0.10



$

0.10



$

0.30



$

0.30


Book value per share (period end)

$

29.58



$

28.87



$

22.67



$

21.59



$

21.54



$

29.58



$

21.54


Tangible book value per share (period end)

$

17.78



$

17.12



$

16.90



$

17.86



$

17.78



$

17.78



$

17.78


Weighted average number of shares














Basic

47,514,653



39,432,021



37,966,781



37,238,564



37,225,418



41,672,792



36,689,934


Diluted

47,685,334



39,709,503



38,250,122



37,556,335



37,552,667



41,844,900



37,017,486


Period end number of shares

47,496,966



47,518,662



38,327,081



37,260,012



37,231,049



47,496,966



37,231,049


Market data














High intraday price

$

54.35



$

58.10



$

59.05



$

51.30



$

51.28



$

59.05



$

51.28


Low intraday price

$

45.15



$

50.20



$

47.90



$

44.75



$

41.05



$

45.15



$

41.05


Period end closing price

$

45.70



$

53.35



$

52.90



$

48.20



$

48.00



$

45.70



$

48.00


Average daily volume

382,622



253,413



235,964



206,178



168,911



291,061



193,555
















PERFORMANCE RATIOS














Return on average assets

1.47

%


0.44

%


1.38

%


0.47

%


1.07

%


1.12

%


1.20

%

Adjusted return on average assets

1.53

%


1.38

%


1.44

%


1.20

%


1.26

%


1.46

%


1.28

%

Return on average common equity

11.78

%


3.86

%


12.73

%


4.47

%


10.04

%


9.47

%


11.39

%

Adjusted return on average tangible common

equity

20.50

%


17.26

%


17.09

%


13.91

%


14.28

%


18.47

%


14.94

%

Earning asset yield (TE)

4.78

%


4.66

%


4.52

%


4.49

%


4.50

%


4.67

%


4.44

%

Total cost of funds

0.90

%


0.75

%


0.63

%


0.57

%


0.57

%


0.78

%


0.51

%

Net interest margin (TE)

3.92

%


3.95

%


3.92

%


3.94

%


3.95

%


3.93

%


3.96

%

Noninterest income excluding securities

transactions, as a percent of total revenue

(TE)

19.77

%


25.72

%


24.71

%


22.41

%


25.68

%


23.06

%


26.90

%

Efficiency ratio

56.00

%


80.50

%


62.04

%


63.74

%


67.94

%


65.66

%


63.57

%

Adjusted efficiency ratio (TE)

54.42

%


57.53

%


59.95

%


60.88

%


61.09

%


57.02

%


60.06

%















CAPITAL ADEQUACY (period end)














Shareholders' equity to assets

12.29

%


12.26

%


10.83

%


10.24

%


10.48

%


12.29

%


10.48

%

Tangible common equity to tangible assets

7.77

%


7.65

%


8.30

%


8.62

%


8.81

%


7.77

%


8.81

%















EQUITY TO ASSETS RECONCILIATION














Tangible common equity to tangible assets

7.77

%


7.65

%


8.30

%


8.62

%


8.81

%


7.77

%


8.81

%

Effect of goodwill and other intangibles

4.52

%


4.61

%


2.53

%


1.62

%


1.67

%


4.52

%


1.67

%

Equity to assets (GAAP)

12.29

%


12.26

%


10.83

%


10.24

%


10.48

%


12.29

%


10.48

%















OTHER DATA (period end)














Full time equivalent employees














Banking Division

1,432



1,477



1,072



1,085



1,080



1,432



1,080


Retail Mortgage Division

317



308



290



279



272



317



272


Warehouse Lending Division

8



7



7



8



8



8



8


SBA Division

23



22



21



20



23



23



23


Premium Finance Division

67



68



67



68



62



67



62


Total Ameris Bancorp FTE headcount

1,847



1,882



1,457



1,460



1,445



1,847



1,445
















Assets per Banking Division FTE

$

7,981



$

7,577



$

7,484



$

7,241



$

7,083



$

7,981



$

7,083


Branch locations

125



126



97



97



97



125



97


Deposits per branch location

$

73,451



$

69,536



$

66,455



$

68,308



$

60,778



$

73,451



$

60,778


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Income Statement



Table 2


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands except per share data)

2018


2018


2018


2017


2017


2018


2017















Interest income














Interest and fees on loans

$

110,470



$

82,723



$

73,267



$

73,440



$

70,462



$

266,460



$

197,447


Interest on taxable securities

8,792



6,321



5,207



5,097



5,062



20,320



15,057


Interest on nontaxable securities

204



179



322



372



392



705



1,209


Interest on deposits in other banks

1,581



723



716



655



406



3,020



1,070


Interest on federal funds sold

72











72




Total interest income

121,119



89,946



79,512



79,564



76,322



290,577



214,783
















Interest expense














Interest on deposits

15,630



7,794



6,772



6,398



5,136



30,196



13,479


Interest on other borrowings

6,451



6,153



3,939



3,643



4,331



16,543



10,702


Total interest expense

22,081



13,947



10,711



10,041



9,467



46,739



24,181
















Net interest income

99,038



75,999



68,801



69,523



66,855



243,838



190,602


Provision for loan losses

2,095



9,110



1,801



2,536



1,787



13,006



5,828


Net interest income after provision for loan

losses

96,943



66,889



67,000



66,987



65,068



230,832



184,774
















Noninterest income














Service charges on deposits accounts

12,690



10,613



10,228



10,340



10,535



33,531



31,714


Mortgage banking activity

13,413



14,890



11,900



10,037



13,340



40,203



38,498


Other service charges, commissions and fees

777



697



719



735



699



2,193



2,137


Gain (loss) on securities

48



(123)



37







(38)



37


Other noninterest income

3,243



5,230



3,580



2,451



2,425



12,053



8,508


Total noninterest income

30,171



31,307



26,464



23,563



26,999



87,942



80,894
















Noninterest expense














Salaries and employee benfits

38,446



39,776



32,089



30,507



32,583



110,311



89,509


Occupancy and equipment expenses

8,598



6,390



6,198



6,010



6,036



21,186



18,059


Data processing and telecommunications expenses

8,518



6,439



7,135



7,219



7,050



22,092



20,650


Credit resolution related expenses(1)

1,248



1,045



549



614



1,347



2,842



2,879


Advertising and marketing expenses

1,453



1,256



1,229



1,519



1,247



3,938



3,612


Amortization of intangible assets

2,676



2,252



934



942



941



5,862



2,990


Merger and conversion charges

276



18,391



835



421



92



19,502



494


Other noninterest expenses

11,138



10,837



10,129



12,105



14,471



32,104



34,406


Total noninterest expense

72,353



86,386



59,098



59,337



63,767



217,837



172,599
















Income before income tax expense

54,761



11,810



34,366



31,213



28,300



100,937



93,069


Income tax expense

13,317



2,423



7,706



22,063



8,142



23,446



28,671


Net income

$

41,444



$

9,387



$

26,660



$

9,150



$

20,158



$

77,491



$

64,398
















Diluted earnings per common share

$

0.87



$

0.24



$

0.70



$

0.24



$

0.54



$

1.85



$

1.74
















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





 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Period End Balance Sheet

Table 3


Three Months Ended


Sep


Jun


Mar


Dec


Sep

(dollars in thousands)

2018


2018


2018


2017


2017











Assets










Cash and due from banks

$

158,453



$

151,539



$

123,945



$

139,313



$

131,071


Federal funds sold and interest-bearing deposits in banks

470,804



273,170



210,930



191,345



112,844


Time deposits in other banks

11,558



11,558








Investment securities available for sale, at fair value

1,162,570



1,153,703



848,585



810,873



819,593


Other investments

35,929



44,769



32,227



42,270



47,977


Loans held for sale, at fair value

130,179



137,249



111,135



197,442



137,392












Loans

5,543,306



5,380,515



5,051,986



4,856,514



4,574,678


Purchased loans

2,711,460



2,812,510



818,587



861,595



917,126


Purchased loan pools

274,752



297,509



319,598



328,246



465,218


Loans, net of unearned income

8,529,518



8,490,534



6,190,171



6,046,355



5,957,022


Allowance for loan losses

(28,116)



(31,532)



(26,200)



(25,791)



(25,966)


Loans, net

8,501,402



8,459,002



6,163,971



6,020,564



5,931,056












Other real estate owned

9,375



8,003



9,171



8,464



9,391


Purchased other real estate owned

7,692



7,272



6,723



9,011



9,946


Total other real estate owned

17,067



15,275



15,894



17,475



19,337












Premises and equipment, net

145,885



144,484



116,381



117,738



119,458


Goodwill

505,604



504,764



208,513



125,532



125,532


Other intangible assets, net

54,729



53,561



12,562



13,496



14,437


Deferred income taxes, net

38,217



40,240



28,677



28,320



39,365


Cash value of bank owned life insurance

103,588



103,059



80,007



79,641



79,241


Other assets

93,009



98,324



70,001



72,194



72,517


Total assets

$

11,428,994



$

11,190,697



$

8,022,828



$

7,856,203



$

7,649,820












Liabilities










Deposits










Noninterest-bearing

$

2,333,992



$

2,356,420



$

1,867,900



$

1,777,141



$

1,718,022


Interest-bearing

6,847,371



6,405,173



4,578,265



4,848,704



4,177,482


Total deposits

9,181,363



8,761,593



6,446,165



6,625,845



5,895,504


Federal funds purchased and securities sold under agreements to repurchase

14,071



11,002



23,270



30,638



14,156


Other borrowings

656,831



862,136



555,535



250,554



808,572


Subordinated deferrable interest debentures

88,986



88,646



85,881



85,550



85,220


FDIC loss-share payable, net

18,740



18,716



9,255



8,803



8,190


Other liabilities

64,026



76,708



33,778



50,334



36,257


Total liabilities

10,024,017



9,818,801



7,153,884



7,051,724



6,847,899












Shareholders' Equity










Preferred stock










Common stock

49,012



49,012



39,820



38,735



38,706


Capital stock

1,050,752



1,049,283



559,040



508,404



506,779


Retained earnings

338,350



301,656



296,366



273,119



267,694


Accumulated other comprehensive income (loss), net of tax

(16,576)



(12,571)



(10,823)



(1,280)



3,241


Treasury stock

(16,561)



(15,484)



(15,459)



(14,499)



(14,499)


Total shareholders' equity

1,404,977



1,371,896



868,944



804,479



801,921


Total liabilities and shareholders' equity

$

11,428,994



$

11,190,697



$

8,022,828



$

7,856,203



$

7,649,820












Other Data










Earning assets

$

10,340,558



$

10,110,983



$

7,393,048



$

7,288,285



$

7,074,828


Intangible assets

560,333



558,325



221,075



139,028



139,969


Interest-bearing liabilities

7,607,259



7,366,957



5,242,951



5,215,446



5,085,430


Average assets

11,204,504



8,529,035



7,823,451



7,777,996



7,461,367


Average common shareholders' equity

1,395,479



974,494



849,346



812,264



796,856


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information



Table 4


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017















Allowance for Loan Losses














Balance at beginning of period

$

31,532



$

26,200



$

25,791



$

25,966



$

25,101



$

25,791



$

23,920
















Provision for loan losses

2,095



9,110



1,801



2,536



1,787



13,006



5,828
















Charge-offs

8,112



5,717



2,872



3,638



2,443



16,701



6,829


Recoveries

2,601



1,939



1,480



927



1,521



6,020



3,047


Net charge-offs (recoveries)

5,511



3,778



1,392



2,711



922



10,681



3,782
















Ending balance

$

28,116



$

31,532



$

26,200



$

25,791



$

25,966



$

28,116



$

25,966
















Net  Charge-off Information




























Charge-offs














Commercial, financial and agricultural

$

6,121



$

3,744



$

1,449



$

954



$

1,091



$

11,314



$

1,896


Real estate - construction and development

265



20







1



285



95


Real estate - commercial and farmland

27





142



440



18



169



413


Real estate - residential

293



204



198



120



852



695



2,031


Consumer installment

923



839



962



696



320



2,724



922


Purchased loans

483



910



121



1,428



161



1,514



1,472


Purchased loan pools














Total charge-offs

8,112



5,717



2,872



3,638



2,443



16,701



6,829
















Recoveries














Commercial, financial and agricultural

939



1,247



656



571



409



2,842



699


Real estate - construction and development

1



2



114



2



126



117



244


Real estate - commercial and farmland

134



11



24



28



26



169



156


Real estate - residential

44



29



182



47



56



255



190


Consumer installment

178



117



67



38



17



362



78


Purchased loans

1,305



533



437



241



887



2,275



1,680


Purchased loan pools














Total recoveries

2,601



1,939



1,480



927



1,521



6,020



3,047
















Net charge-offs (recoveries)

$

5,511



$

3,778



$

1,392



$

2,711



$

922



$

10,681



$

3,782
















Non-Performing Assets














Nonaccrual loans (excluding purchased loans)

$

15,986



$

16,813



$

14,420



$

14,202



$

15,325



$

15,986



$

15,325


Nonaccrual purchased loans

27,764



33,557



15,940



15,428



19,049



27,764



19,049


Nonaccrual purchased loan pools

4,696



2,197







915



4,696



915


Other real estate owned

9,375



8,003



9,171



8,464



9,391



9,375



9,391


Purchased other real estate owned

7,692



7,272



6,723



9,011



9,946



7,692



9,946


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

2,863



7,421



2,497



5,991



2,941



2,863



2,941


Accruing purchased loans delinquent 90 days or

more














Total non-performing assets

$

68,376



$

75,263



$

48,751



$

53,096



$

57,567



$

68,376



$

57,567
















Asset Quality Ratios














Non-performing assets as a percent of total assets

0.60

%


0.67

%


0.61

%


0.68

%


0.75

%


0.60

%


0.75

%

Net charge-offs as a percent of average loans

(annualized)

0.26

%


0.23

%


0.09

%


0.18

%


0.06

%


0.20

%


0.09

%

Net charge-offs, excluding purchased loans as a

percent of average loans (annualized)

0.44

%


0.26

%


0.14

%


0.13

%


0.15

%


0.29

%


0.13

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Sep


Jun


Mar


Dec


Sep

(dollars in thousands)

2018


2018


2018


2017


2017











Loans by Type










Legacy loans










Commercial, financial and agricultural

$

1,422,152



$

1,446,857



$

1,387,437



$

1,362,508



$

1,307,209


Real estate - construction and development

641,830



672,155



631,504



624,595



550,189


Real estate - commercial and farmland

1,804,265



1,640,411



1,636,654



1,535,439



1,558,882


Real estate - residential

1,275,201



1,245,370



1,080,028



1,009,461



969,289


Consumer installment

399,858



375,722



316,363



324,511



189,109


Total legacy loans

$

5,543,306



$

5,380,515



$

5,051,986



$

4,856,514



$

4,574,678


Purchased loans










Commercial, financial and agricultural

$

413,365



$

397,517



$

64,612



$

74,378



$

80,895


Real estate - construction and development

219,882



268,443



48,940



65,513



68,583


Real estate - commercial and farmland

1,399,174



1,428,490



465,870



468,246



500,169


Real estate - residential

649,352



679,205



236,453



250,539



264,312


Consumer installment

29,687



38,855



2,712



2,919



3,167


Total purchased loans

$

2,711,460



$

2,812,510



$

818,587



$

861,595



$

917,126


Purchased loan pools










Real estate - residential

$

274,752



$

297,509



$

319,598



$

328,246



$

465,218


Total purchased loan pools

$

274,752



$

297,509



$

319,598



$

328,246



$

465,218


Total loan portfolio










Commercial, financial and agricultural

$

1,835,517



$

1,844,374



$

1,452,049



$

1,436,886



$

1,388,104


Real estate - construction and development

861,712



940,598



680,444



690,108



618,772


Real estate - commercial and farmland

3,203,439



3,068,901



2,102,524



2,003,685



2,059,051


Real estate - residential

2,199,305



2,222,084



1,636,079



1,588,246



1,698,819


Consumer installment

429,545



414,577



319,075



327,430



192,276


Total loans

$

8,529,518



$

8,490,534



$

6,190,171



$

6,046,355



$

5,957,022












Troubled Debt Restructurings (excluding purchased loans)










Accruing troubled debt restructurings










Commercial, financial and agricultural

$

180



$

38



$

39



$

41



$

44


Real estate - construction and development

384



150



176



417



424


Real estate - commercial and farmland

3,817



4,531



4,606



4,680



4,769


Real estate - residential

6,558



6,299



6,547



6,199



7,209


Consumer installment

4



5



7



5



6


Total accruing troubled debt restructurings

$

10,943



$

11,023



$

11,375



$

11,342



$

12,452


Nonaccrual troubled debt restructurings










Commercial, financial and agricultural

$

208



$

330



$

224



$

120



$

129


Real estate - construction and development

6



30



7



34



34


Real estate - commercial and farmland

306



196



2,127



204



210


Real estate - residential

742



709



838



1,508



1,212


Consumer installment

92



102



93



98



130


Total nonaccrual troubled debt restructurings

$

1,354



$

1,367



$

3,289



$

1,964



$

1,715


 Total troubled debt restructurings (excluding purchased loans)

$

12,297



$

12,390



$

14,664



$

13,306



$

14,167


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information (continued)

Table 5


Sep


Jun


Mar


Dec


Sep

(dollars in thousands)

2018


2018


2018


2017


2017











Loans by Risk Grade










Legacy loans










Grade 1 - Prime credit

$

550,020



$

545,902



$

557,625



$

554,979



$

510,262


Grade 2 - Strong credit

645,612



660,495



673,591



688,481



692,217


Grade 3 - Good credit

2,289,584



2,211,703



2,050,717



2,033,979



2,003,173


Grade 4 - Satisfactory credit

1,939,518



1,820,884



1,676,308



1,487,781



1,277,969


Grade 5 - Fair credit

40,041



52,069



17,499



16,996



14,977


Grade 6 - Other assets especially mentioned

41,125



38,150



39,795



30,075



36,143


Grade 7 - Substandard

37,406



51,305



36,444



44,216



39,930


Grade 8 - Doubtful



7



7



7



7


Grade 9 - Loss










Total legacy loans

$

5,543,306



$

5,380,515



$

5,051,986



$

4,856,514



$

4,574,678


Purchased loans










Grade 1 - Prime credit

$

54,840



$

55,183



$

3,808



$

3,964



$

4,039


Grade 2 - Strong credit

132,454



139,683



97,448



101,098



107,097


Grade 3 - Good credit

463,307



449,317



243,730



259,872



275,855


Grade 4 - Satisfactory credit

1,828,090



1,908,143



367,997



385,080



411,776


Grade 5 - Fair credit

133,653



135,281



20,012



19,736



19,859


Grade 6 - Other assets especially mentioned

35,676



45,095



33,705



37,121



50,696


Grade 7 - Substandard

63,440



79,808



51,887



54,724



47,804


Grade 8 - Doubtful










Grade 9 - Loss










Total purchased loans

$

2,711,460



$

2,812,510



$

818,587



$

861,595



$

917,126


Purchased loan pools










Grade 3 - Good credit

$

270,056



$

295,312



$

318,696



$

327,342



$

464,303


Grade 7 - Substandard

4,696



2,197



902



904



915


Total purchased loan pools

$

274,752



$

297,509



$

319,598



$

328,246



$

465,218


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances



Table 6


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017















Earning Assets














Federal funds sold

$

15,074



$

203



$

9



$

3



$



$

5,150



$


Interest-bearing deposits in banks

283,604



151,332



147,481



184,287



109,266



196,145



126,014


Time deposits in other banks

11,557



254









3,979




Investment securities - taxable

1,117,517



839,772



777,310



759,253



760,907



912,820



762,381


Investment securities - nontaxable

31,641



26,626



48,455



58,858



60,862



35,512



63,132


Other investments

36,067



42,384



34,654



32,706



42,687



37,733



39,171


Loans held for sale

151,396



141,875



138,129



138,468



126,798



143,848



105,296


Loans

5,703,921



5,198,301



4,902,082



4,692,997



4,379,082



5,277,108



4,018,597


Purchased loans

2,499,393



1,107,184



842,509



888,854



937,595



1,483,029



982,033


Purchased loan pools

287,859



310,594



325,113



446,677



475,742



307,718



513,750


Total Earning Assets

$

10,138,029



$

7,818,525



$

7,215,742



$

7,202,103



$

6,892,939



$

8,403,042



$

6,610,374
















Deposits














Noninterest-bearing deposits

$

2,320,851



$

1,973,910



$

1,780,738



$

1,805,996



$

1,654,467



$

2,027,145



$

1,624,837


NOW accounts

1,567,111



1,311,952



1,337,718



1,301,628



1,201,151



1,406,434



1,175,143


MMDA

2,440,086



1,950,601



1,970,571



1,964,437



1,682,306



2,122,138



1,597,637


Savings accounts

423,449



295,326



278,080



273,979



278,991



332,817



275,504


Retail CDs < $100,000

744,145



475,965



422,771



433,303



437,641



548,805



441,107


Retail CDs $100,000 and over

978,842



585,632



593,635



592,916



582,598



720,781



553,663


Brokered CDs

487,686



14,132









169,059




Total Deposits

8,962,170



6,607,518



6,383,513



6,372,259



5,837,154



7,327,179



5,667,891


Non-Deposit Funding














Federal funds purchased and securities sold

under agreements to repurchase

12,529



14,762



20,909



25,970



19,414



16,036



29,612


FHLB advances

513,460



703,177



371,556



369,076



608,413



529,917



539,496


Other borrowings

145,513



86,302



75,553



75,571



75,590



102,713



66,420


Subordinated deferrable interest debentures

88,801



86,085



85,701



85,372



85,040



86,874



84,712


Total Non-Deposit Funding

760,303



890,326



553,719



555,989



788,457



735,540



720,240


Total Funding

$

9,722,473



$

7,497,844



$

6,937,232



$

6,928,248



$

6,625,611



$

8,062,719



$

6,388,131


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)













Table 7


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017















Interest Income














Federal funds sold

$

72



$



$



$



$



$

72



$


Interest-bearing deposits in banks

1,520



723



716



655



406



2,959



1,070


Time deposits in other banks

61











61




Investment securities - taxable

8,792



6,321



5,207



5,097



5,062



20,320



15,057


Investment securities - nontaxable (TE)

258



226



408



572



603



892



1,860


Loans held for sale

1,566



1,315



1,210



1,380



1,131



4,091



2,842


Loans (TE)

73,178



63,908



58,771



57,193



53,394



195,857



143,806


Purchased loans

34,692



16,130



11,762



13,150



14,048



62,584



43,986


Purchased loan pools

2,059



2,267



2,424



3,531



3,491



6,750



11,109


Total Earning Assets

$

122,198



$

90,890



$

80,498



$

81,578



$

78,135



$

293,586



$

219,730
















Accretion income (included above)

$

3,656



$

2,652



$

1,444



$

2,183



$

2,725



$

7,752



$

8,431
















Interest Expense














Deposits














Noninterest-bearing deposits

$



$



$



$



$



$



$


NOW accounts

1,142



1,142



953



811



600



3,237



1,617


MMDA

5,885



3,953



3,526



3,288



2,316



13,364



5,862


Savings accounts

82



54



47



46



47



183



135


Retail CDs < $100,000

1,827



907



668



702



684



3,402



1,882


Retail CDs $100,000 and over

3,643



1,670



1,578



1,551



1,489



6,891



3,983


Brokered CDs

3,051



68









3,119




Total Deposits

15,630



7,794



6,772



6,398



5,136



30,196



13,479


Non-Deposit Funding














Federal funds purchased and securities sold

under agreements to repurchase

4



5



9



12



11



18



44


FHLB advances

2,745



3,383



1,457



1,180



1,849



7,585



3,994


Other borrowings

2,180



1,320



1,134



1,144



1,183



4,634



2,900


Subordinated deferrable interest debentures

1,522



1,445



1,339



1,307



1,288



4,306



3,764


Total Non-Deposit Funding

6,451



6,153



3,939



3,643



4,331



16,543



10,702


Total Funding

$

22,081



$

13,947



$

10,711



$

10,041



$

9,467



$

46,739



$

24,181
















Net Interest Income (TE)

$

100,117



$

76,943



$

69,787



$

71,537



$

68,668



$

246,847



$

195,549


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Yields(1)













Table 8


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep


2018


2018


2018


2017


2017


2018


2017















Earning Assets














Federal funds sold

1.89

%


0.00

%


0.00

%


0.00

%


0.00

%


1.87

%


0.00

%

Interest-bearing deposits in banks

2.13

%


1.92

%


1.97

%


1.41

%


1.47

%


2.02

%


1.14

%

Time deposits in other banks

2.09

%


0.00

%


0.00

%


0.00

%


0.00

%


2.05

%


0.00

%

Investment securities - taxable

3.12

%


3.02

%


2.72

%


2.66

%


2.64

%


2.98

%


2.64

%

Investment securities - nontaxable (TE)

3.24

%


3.40

%


3.41

%


3.86

%


3.93

%


3.36

%


3.94

%

Loans held for sale

4.10

%


3.72

%


3.55

%


3.95

%


3.54

%


3.80

%


3.61

%

Loans (TE)

5.09

%


4.93

%


4.86

%


4.84

%


4.84

%


4.96

%


4.78

%

Purchased loans

5.51

%


5.84

%


5.66

%


5.87

%


5.94

%


5.64

%


5.99

%

Purchased loan pools

2.84

%


2.93

%


3.02

%


3.14

%


2.91

%


2.93

%


2.89

%

Total Earning Assets

4.78

%


4.66

%


4.52

%


4.49

%


4.50

%


4.67

%


4.44

%















Deposits














Noninterest-bearing deposits

0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%

NOW accounts

0.29

%


0.35

%


0.29

%


0.25

%


0.20

%


0.31

%


0.18

%

MMDA

0.96

%


0.81

%


0.73

%


0.66

%


0.55

%


0.84

%


0.49

%

Savings accounts

0.08

%


0.07

%


0.07

%


0.07

%


0.07

%


0.07

%


0.07

%

Retail CDs < $100,000

0.97

%


0.76

%


0.64

%


0.64

%


0.62

%


0.83

%


0.57

%

Retail CDs $100,000 and over

1.48

%


1.14

%


1.08

%


1.04

%


1.01

%


1.28

%


0.96

%

Brokered CDs

2.48

%


1.93

%


0.00

%


0.00

%


0.00

%


2.47

%


0.00

%

Total Deposits

0.69

%


0.47

%


0.43

%


0.40

%


0.35

%


0.55

%


0.32

%

Non-Deposit Funding














Federal funds purchased and securities sold

under agreements to repurchase

0.13

%


0.14

%


0.17

%


0.18

%


0.22

%


0.15

%


0.20

%

FHLB advances

2.12

%


1.93

%


1.59

%


1.27

%


1.21

%


1.91

%


0.99

%

Other borrowings

5.94

%


6.13

%


6.09

%


6.01

%


6.21

%


6.03

%


5.84

%

Subordinated deferrable interest debentures

6.80

%


6.73

%


6.34

%


6.07

%


6.01

%


6.63

%


5.94

%

Total Non-Deposit Funding

3.37

%


2.77

%


2.89

%


2.60

%


2.18

%


3.01

%


1.99

%

Total Funding(2)

0.90

%


0.75

%


0.63

%


0.57

%


0.57

%


0.78

%


0.51

%















Net Interest Spread

3.88

%


3.91

%


3.89

%


3.92

%


3.93

%


3.89

%


3.93

%















Net Interest Margin(3)

3.92

%


3.95

%


3.92

%


3.94

%


3.95

%


3.93

%


3.96

%















(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21% for 2018 and 35% for 2017.





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





(3) Rate calculated based on average earning assets.





 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations






Adjusted Net Income











Table 9A


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands except per share data)

2018


2018


2018


2017


2017


2018


2017

Net income available to common shareholders

$

41,444



$

9,387



$

26,660



$

9,150



$

20,158



$

77,491



$

64,398
















Adjustment items:














Merger and conversion charges

276



18,391



835



421



92



19,502



494


Executive retirement benefits

962



5,457









6,419




Restructuring charge

229











229




Certain compliance resolution expenses







434



4,729





4,729


Accelerated premium amortization on loans sold

from purchased loan pools







456








Financial impact of Hurricane Irma









410





410


Loss on sale of premises

4



196



583



308



91



783



956


Tax effect of adjustment items (Note 1)

377



(4,192)



(298)



(567)



(1,863)



(4,113)



(2,306)


After tax adjustment items

1,848



19,852



1,120



1,052



3,459



22,820



4,283
















Tax expense attributable to remeasurement of

deferred tax assets and deferred tax liabilities at

reduced federal corporate tax rate







13,388






















Adjusted net income

$

43,292



$

29,239



$

27,780



$

23,590



$

23,617



$

100,311



$

68,681
















Weighted average number of shares - diluted

47,685,334



39,709,503



38,250,122



37,556,335



37,552,667



41,844,900



37,017,486


Net income per diluted share

$

0.87



$

0.24



$

0.70



$

0.24



$

0.54



$

1.85



$

1.74


Adjusted net income per diluted share

$

0.91



$

0.74



$

0.73



$

0.63



$

0.63



$

2.40



$

1.86
















Average assets

$

11,204,504



$

8,529,035



$

7,823,451



$

7,777,996



$

7,461,367



$

9,217,174



$

7,180,330


Return on average assets

1.47

%


0.44

%


1.38

%


0.47

%


1.07

%


1.12

%


1.20

%

Adjusted return on average assets

1.53

%


1.38

%


1.44

%


1.20

%


1.26

%


1.46

%


1.28

%















Average common equity

$

1,395,479



$

974,494



$

849,346



$

812,264



$

796,856



$

1,094,233



$

756,153


Average tangible common equity

$

837,914



$

679,559



$

659,096



$

672,728



$

656,375



$

726,163



$

614,680


Return on average common equity

11.78

%


3.86

%


12.73

%


4.47

%


10.04

%


9.47

%


11.39

%

Adjusted return on average tangible common
equity

20.50

%


17.26

%


17.09

%


13.91

%


14.28

%


18.47

%


14.94

%















Note 1:  A portion of the 2Q18 and 3Q18 Merger and conversion charges and the 2Q18 Executive retirement benefits are nondeductible for tax purposes.















Net Interest Margin Excluding Accretion and

Yield on Total Loans Excluding Accretion











Table 9B


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017

Total interest income (TE)

$

122,198



$

90,890



$

80,498



$

81,578



$

78,135



$

293,586



$

219,730


Accretion income

3,656



2,652



1,444



2,183



2,725



7,752



8,431


Total interest income (TE) excluding accretion

118,542



88,238



79,054



79,395



75,410



285,834



211,299


Interest expense

22,081



13,947



10,711



10,041



9,467



46,739



24,181


Net interest income (TE) excluding accretion

$

96,461



$

74,291



$

68,343



$

69,354



$

65,943



$

239,095



$

187,118
















Yield on total loans (TE) excluding accretion

4.95

%


4.81

%


4.75

%


4.70

%


4.65

%


4.85

%


4.60

%

Net interest margin (TE) excluding accretion

3.77

%


3.81

%


3.84

%


3.82

%


3.80

%


3.80

%


3.78

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations (continued)






Adjusted Efficiency Ratio (TE)











Table 9C


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017

Adjusted Noninterest Expense














Total noninterest expense

$

72,353



$

86,386



$

59,098



$

59,337



$

63,767



$

217,837



$

172,599


Adjustment items:














Merger and conversion charges

(276)



(18,391)



(835)



(421)



(92)



(19,502)



(494)


Executive retirement benefits

(962)



(5,457)









(6,419)




Restructuring charge

(229)











(229)




Certain compliance resolution expenses







(434)



(4,729)





(4,729)


Financial impact of Hurricane Irma









(410)





(410)


Loss on sale of premises

(4)



(196)



(583)



(308)



(91)



(783)



(956)


Adjusted noninterest expense

$

70,882



$

62,342



$

57,680



$

58,174



$

58,445



$

190,904



$

166,010
















Total Revenue














Net interest income

$

99,038



$

75,999



$

68,801



$

69,523



$

66,855



$

243,838



$

190,602


Noninterest income

30,171



31,307



26,464



23,563



26,999



87,942



80,894


Total revenue

$

129,209



$

107,306



$

95,265



$

93,086



$

93,854



$

331,780



$

271,496
















Adjusted Total Revenue














Net interest income (TE)

$

100,117



$

76,943



$

69,787



$

71,537



$

68,668



$

246,847



$

195,549


Noninterest income

30,171



31,307



26,464



23,563



26,999



87,942



80,894


Total revenue (TE)

130,288



108,250



96,251



95,100



95,667



334,789



276,443


Adjustment items:














Loss (gain) on securities

(48)



123



(37)







38



(37)


Accelerated premium amortization on loans sold

from purchased loan pools







456








Adjusted total revenue (TE)

$

130,240



$

108,373



$

96,214



$

95,556



$

95,667



$

334,827



$

276,406
















Efficiency ratio

56.00

%


80.50

%


62.04

%


63.74

%


67.94

%


65.66

%


63.57

%

Adjusted efficiency ratio (TE)

54.42

%


57.53

%


59.95

%


60.88

%


61.09

%


57.02

%


60.06

%















Tangible Book Value Per Share











Table 9D


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands except per share data)

2018


2018


2018


2017


2017


2018


2017

Total shareholders' equity

$

1,404,977



$

1,371,896



$

868,944



$

804,479



$

801,921



$

1,404,977



$

801,921


Less:














Goodwill

505,604



504,764



208,513



125,532



125,532



505,604



125,532


Other intangibles, net

54,729



53,561



12,562



13,496



14,437



54,729



14,437


Total tangible shareholders' equity

$

844,644



$

813,571



$

647,869



$

665,451



$

661,952



$

844,644



$

661,952
















Period end number of shares

47,496,966



47,518,662



38,327,081



37,260,012



37,231,049



47,496,966



37,231,049


Book value per share (period end)

$

29.58



$

28.87



$

22.67



$

21.59



$

21.54



$

29.58



$

21.54


Tangible book value per share (period end)

$

17.78



$

17.12



$

16.90



$

17.86



$

17.78



$

17.78



$

17.78


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting











Table 10


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017















Banking Division














Net interest income

$

84,041



$

61,759



$

55,359



$

55,193



$

53,600



$

201,159



$

155,526


Provision for loan losses

1,229



766



888



2,277



1,037



2,883



4,510


Noninterest income

16,524



13,287



13,099



12,442



13,007



42,910



38,974


Noninterest expense














Salaries and employee benefits

26,120



26,646



22,068



20,100



20,554



74,834



58,757


Occupancy and equipment expenses

7,871



5,684



5,477



5,368



5,384



19,032



16,068


Data processing and telecommunications expenses

7,589



5,611



6,304



6,399



6,357



19,504



18,778


Other noninterest expenses

13,461



29,937



11,080



11,837



14,905



54,478



34,355


Total noninterest expense

55,041



67,878



44,929



43,704



47,200



167,848



127,958


Income before income tax expense

44,295



6,402



22,641



21,654



18,370



73,338



62,032


Income tax expense

11,156



1,716



5,242



18,717



4,850



18,114



17,801


Net income

$

33,139



$

4,686



$

17,399



$

2,937



$

13,520



$

55,224



$

44,231
















Retail Mortgage Division














Net interest income

$

5,544



$

5,046



$

4,997



$

4,876



$

4,265



$

15,587



$

10,711


Provision for loan losses

122



246



217



154



262



585



617


Noninterest income

12,097



13,889



11,585



9,090



12,257



37,571



35,823


Noninterest expense














Salaries and employee benefits

10,061



10,864



7,742



8,225



9,792



28,667



24,771


Occupancy and equipment expenses

618



545



593



533



555



1,756



1,684


Data processing and telecommunications expenses

347



383



389



429



425



1,119



1,182


Other noninterest expenses

1,828



1,778



1,731



1,230



1,001



5,337



3,030


Total noninterest expense

12,854



13,570



10,455



10,417



11,773



36,879



30,667


Income before income tax expense

4,665



5,119



5,910



3,395



4,487



15,694



15,250


Income tax expense

943



1,075



1,244



1,189



1,475



3,262



5,337


Net income

$

3,722



$

4,044



$

4,666



$

2,206



$

3,012



$

12,432



$

9,913
















Warehouse Lending Division














Net interest income

$

2,469



$

2,326



$

1,855



$

1,983



$

1,535



$

6,650



$

3,894


Provision for loan losses







27



215





159


Noninterest income

503



735



397



399



583



1,635



1,340


Noninterest expense














Salaries and employee benefits

136



128



138



127



129



402



403


Occupancy and equipment expenses

2







1



1



2



3


Data processing and telecommunications expenses

30



30



33



18



28



93



80


Other noninterest expenses

69



55



52



26



51



176



137


Total noninterest expense

237



213



223



172



209



673



623


Income before income tax expense

2,735



2,848



2,029



2,183



1,694



7,612



4,452


Income tax expense

574



598



426



763



580



1,598



1,559


Net income

$

2,161



$

2,250



$

1,603



$

1,420



$

1,114



$

6,014



$

2,893


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting (continued)











Table 10


Three Months Ended


Nine Months Ended


Sep


Jun


Mar


Dec


Sep


Sep


Sep

(dollars in thousands)

2018


2018


2018


2017


2017


2018


2017















SBA Division














Net interest income

$

1,459



$

1,320



$

924



$

971



$

981



$

3,703



$

2,773


Provision for loan losses

41



447



537



(209)



(1)



1,025



98


Noninterest income

1,045



1,349



1,370



1,614



1,130



3,764



4,663


Noninterest expense














Salaries and employee benefits

682



736



740



787



858



2,158



2,339


Occupancy and equipment expenses

58



55



58



56



54



171



159


Data processing and telecommunications expenses

1



9



9



9



9



19



12


Other noninterest expenses

210



290



236



205



63



736



533


Total noninterest expense

951



1,090



1,043



1,057



984



3,084



3,043


Income before income tax expense

1,512



1,132



714



1,737



1,128