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Ameris Bancorp Announces 2018 Financial Results

JACKSONVILLE, Fla., Jan. 25, 2019 /PRNewswire/ -- Ameris Bancorp (Nasdaq: ABCB) (the "Company") today reported net income of $121.0 million, or $2.80 per diluted share, for the year ended December 31, 2018, compared with $73.5 million, or $1.98 per diluted share, for 2017.  For the quarter ending December 31, 2018, reported results include net income of $43.5 million, or $0.91 per diluted share, compared with $9.2 million, or $0.24 per diluted share, for the same period in 2017.

Ameris Bancorp logo. (PRNewsFoto/Ameris Bancorp)

The Company reported adjusted net income of $146.2 million, or $3.38 per diluted share, for the year ended December 31, 2018, compared with $92.3 million, or $2.48 per diluted share, for 2017.  Adjusted net income for the fourth quarter of 2018 was $45.9 million, or $0.96 per diluted share, compared with $23.6 million, or $0.63 per diluted share, for the same quarter of 2017.  Adjusted net income for the 2018 fourth quarter and full year periods excludes after-tax merger and conversion charges, executive retirement benefits, restructuring charges related to recently announced branch consolidations, expenses related to Hurricane Michael, loss on the sale of bank premises and state tax credit related to the Company's 2017 income tax returns.  In addition, the 2017 financial results included expenses related to compliance resolution, accelerated premium amortization on sold loans and a charge of $13.4 million to income tax expense, related to the valuation of the Company's deferred tax asset, due to recent tax legislation that reduced the Company's future corporate income tax rate.

Commenting on the Company's earnings, Dennis J. Zember Jr., the Company's President and Chief Executive Officer, said, "I am delighted with how we finished 2018 and the momentum we have going into 2019.  We succeeded on the expense side, pushing our adjusted efficiency ratio down to 54% in the fourth quarter of 2018 and knowing we have more savings in the works. Despite the flat yield curve and enormous pressure on the margin, we reported the same margin, net of accretion, in 2018 that we did in 2017, notable especially given a 46% growth in total assets.  Lastly, we closed and fully integrated two bank acquisitions, in addition to finalizing the purchase of US Premium Finance, and closed out the year with an announcement regarding a merger with Fidelity Bank that, once closed, will make Ameris the largest non-super regional bank in the Atlanta MSA."

Highlights of the Company's results for the fourth quarter of 2018 include the following:

  • Increase of $1.05 in tangible book value per share to $18.83 at December 31, 2018, compared with $17.78 at September 30, 2018
  • Improvement in adjusted efficiency ratio to 54.10%, compared with 54.42% in the third quarter of 2018 and 60.88% in the fourth quarter of 2017
  • Adjusted return on average assets of 1.61%, compared with 1.53% in the third quarter of 2018 and 1.20% in the fourth quarter of 2017
  • Adjusted return on average tangible common equity of 20.95%, compared with 20.50% in the third quarter of 2018 and 13.91% in the fourth quarter of 2017

Highlights of the Company's results for 2018 include the following:

  • Growth in adjusted net earnings of $53.9 million, representing a 58.5% increase over 2017
  • Organic growth in loans of $482.6 million, or 8.5%, compared with $941.0 million, or 20.3%, in 2017
  • Adjusted return on average assets of 1.50%, compared with 1.26% in 2017
  • Adjusted return on average tangible common equity of 19.18%, compared with 14.66% in 2017
  • Stable net interest margin, excluding accretion, of 3.79% during 2018 and 2017
  • Loan-to-deposit ratio at the end of 2018 of 88.2%, compared with 91.3% at the end of 2017
  • Increase in total revenue of 26.7% to $461.8 million
  • Annualized net charge-offs of 0.18% of average total loans and 0.27% of average non-purchased loans
  • Year-over-year organic growth in non-interest bearing deposits of $183.5 million, or 10.3% 
  • Improvement in nonperforming assets, decreasing to 0.55% of total assets

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

Adjusted Net Income Reconciliation









Three Months Ended


Year Ended


December 31,


December 31,

(dollars in thousands except per share data)

2018


2017


2018


2017

Net income available to common shareholders

$

43,536


$

9,150


$

121,027


$

73,548









Adjustment items:








Merger and conversion charges

997


421


20,499


915

Executive retirement benefits

2,005



8,424


Restructuring charge

754



983


Certain compliance resolution expenses


434



5,163

Accelerated premium amortization on loans sold from purchased 
  loan pools


456



456

Financial impact of hurricanes

882



882


410

Loss on sale of premises

250


308


1,033


1,264

Tax effect of adjustment items

(810)


(567)


(4,923)


(2,873)

After-tax adjustment items

4,078


1,052


26,898


5,335

Tax expense attributable to remeasurement of deferred tax assets and
deferred tax liabilities at reduced federal corporate tax rate


13,388



13,388

Reduction in state tax expense accrued in prior year, net of federal
tax impact

(1,717)



(1,717)


Adjusted net income

$

45,897


$

23,590


$

146,208


$

92,271









Reported net income per diluted share

$

0.91


$

0.24


$

2.80


$

1.98

Adjusted net income per diluted share

$

0.96


$

0.63


$

3.38


$

2.48









Reported return on average assets

1.53%


0.47%


1.24%


1.00%

Adjusted return on average assets

1.61%


1.20%


1.50%


1.26%









Reported return on average common equity

12.09%


4.47%


10.27%


9.55%

Adjusted return on average tangible common equity

20.95%


13.91%


19.18%


14.66%

Increase in Net Interest Income
Net interest income on a tax-equivalent basis increased 30.1% in 2018 to $347.5 million, up from $267.1 million for 2017.  Growth in earning assets from the Company's two acquisitions in 2018, as well as internal sources, contributed to the increase.  Average earning assets increased 31.1% in 2018 to $8.86 billion, compared with $6.76 billion for 2017.  Although the Company's net interest income increased, net interest margin for 2018, including accretion, declined only slightly to 3.92%, compared with 3.95% for 2017.  Yields on earning assets in 2018 were 4.71%, compared with 4.46% in 2017.

Accretion income for 2018 increased to $11.8 million, or 2.6% of total revenue, compared with $10.6 million, or 2.9%, respectively, for 2017.  Excluding the effect of accretion, the Company's margin was stable at 3.79% for both 2018 and 2017.  Management believes this is particularly notable given the material increase in average earning assets and intense pressure on deposit costs.  Yields on all loans, excluding the effect of accretion, increased to 4.89% in 2018, compared with 4.63% in 2017.

The Company's net interest margin was 3.91% for the fourth quarter of 2018, down slightly from 3.92% reported for the third quarter of 2018 and 3.94% reported for the fourth quarter of 2017.  Accretion income for the fourth quarter of 2018 increased to $4.1 million, compared with $3.7 million for the third quarter of 2018, and up from $2.2 million reported for the fourth quarter of 2017.  Excluding the effect of accretion, the Company's margin for the fourth quarter of 2018 was 3.75%, a slight decrease compared with 3.77% for the third quarter of 2018 and 3.82% for the fourth quarter of 2017.

Yields on all loans, excluding the effect of accretion, increased to 5.00% during the fourth quarter of 2018, compared with 4.95% in the third quarter of 2018 and 4.70% during the fourth quarter of 2017.  Loan production in the banking division during the fourth quarter of 2018 totaled $604.9 million, with weighted average yields of 5.74%, compared with $467.5 million and 5.51%, respectively, in the third quarter of 2018 and $419.8 million and 4.89%, respectively, in the fourth quarter of 2017.  Loan production in the lines of business (to include retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $1.8 billion during the fourth quarter of 2018, compared with $1.5 billion during the fourth quarter of 2017.

Total interest expense for 2018 was $69.9 million, compared with $34.2 million for 2017.  Deposit costs increased during 2018 to 0.62%, compared with 0.34% for 2017.  Noninterest-bearing deposits represented 27.5% of the total average deposits for 2018, compared with 28.6% for 2017.  The Company has been successful in aggressive sales efforts that led strong growth in deposits while managing a flat margin through each rate increase.  Management believes that current deposit pricing at the end of the year has reached a level that better supports management's growth goals and that slower increases in costs in 2019 will not reduce the impressive momentum in deposit growth rates that the Company is experiencing.

Interest expense during the fourth quarter of 2018 moved higher to $23.2 million, compared with $22.1 million in the third quarter of 2018 and $10.0 million in the fourth quarter of 2017.  The Company's total cost of funds moved 4 basis points higher to 0.94% in the fourth quarter of 2018 as compared with the third quarter of 2018.  Deposit costs increased 10 basis points during the fourth quarter of 2018 to 0.79%, compared with 0.69% in the third quarter of 2018.  Costs of interest-bearing deposits increased during the quarter from 0.93% in the third quarter of 2018 to 1.09% in the fourth quarter, with the material portion of the increase relating to NOW and MMDA accounts.

Non-interest Income
Non-interest income increased 13.4% in 2018 to $118.4 million, compared with $104.5 million for 2017, as a result of increased service charges and mortgage banking activity during 2018.  Service charge revenue increased $4.1 million, or 9.7%, during 2018 due to the Company's increased number of deposit accounts from organic growth and the acquisitions completed in 2018.

Revenue in the retail mortgage group totaled $71.7 million in 2018, an increase of 18.5%, compared with $60.5 million in 2017.  Total production in 2018 for the retail mortgage group amounted to $1.77 billion (87% purchase and 13% refinance), compared with $1.50 billion in 2017 (70% purchase and 30% refinance).  Gain on sale spreads continued to improve in the fourth quarter of 2018, moving to 3.06% from 3.00% in the third quarter.  Revenue and profitability, which traditionally slow in the fourth quarter each year, increased during the fourth quarter of 2018 due to recent recruiting efforts.  Net income for the Company's retail mortgage division was $4.0 million for the fourth quarter of 2018, compared with $3.7 million in the third quarter of 2018 and $2.2 million for the fourth quarter of 2017.

Profitability in the Company's warehouse lending group continued to increase, as revenues from the division increased 45.9% during the year, from $7.6 million for 2017 to $11.1 million in 2018.  Net income for the division increased 86.8% from $4.3 million in 2017 to $8.1 million in 2018.  Loan production increased from $3.44 billion in 2017 to $4.52 billion in the current year.   Net income for the Company's warehouse lending division was $2.0 million for the fourth quarter of 2018, compared with $2.2 million for the third quarter of 2018 and $1.4 million for the fourth quarter of 2017.  The Company experienced zero losses in this division during 2017 or 2018.

Non-interest Expense
Non-interest expense increased $61.7 million, or 26.6%, to $293.6 million for the year ended December 31, 2018, compared with $231.9 million for 2017.  During 2018, the Company recorded $31.8 million of charges to earnings, the majority of which were related to merger and conversion activity and executive retirement, compared to $7.8 million in 2017 that were mostly merger and compliance oriented.  Excluding these charges, adjusted expenses increased approximately $37.6 million, or 16.8%, to $261.8 million in 2018, up from $224.2 million in 2017.  Growth in operating expenses in 2018 amounted to 1.57% of growth in average assets, materially lower than the Company's gross overhead ratio for 2017 at 3.06%.  Intense efforts to leverage administrative expenses alongside 2018's merger activity provided the Company with the opportunity to notably improve its operating efficiency ratio.  The following table shows the detail of these charges and analysis:

Non-interest Expense Analysis







Year Ended




December 31,





(dollars in thousands)

2018


2017


$ Change


% Change

Total non-interest expense

$

293,647


$

231,936


$

61,711


26.6%

Less:








Merger and conversion charges

20,499


915


19,584


2,140.3%

Executive retirement benefits

8,424



8,424


NM

Restructuring charge

983



983


NM

Certain compliance resolution expenses


5,163


(5,163)


(100.0)%

Financial impact of hurricanes

882


410


472


115.1%

Loss on sale of premises

1,033


1,264


(231)


(18.3)%

Subtotal

261,826


224,184


37,642


16.8%

Less:








Retail mortgage division non-interest expense

50,332


41,084


9,248


22.5%

Operating expenses of branches acquired in Hamilton acquisition

13,344



13,344


NM

Comparative bank non-interest expense

$

198,150


$

183,100


$

15,050


8.2%

NM denotes not meaningful








The Company continues to focus on improving its operating efficiency ratio. The Company's adjusted efficiency ratio declined from 60.27% in 2017 to 56.19% in 2018.  During the fourth quarter of 2018, the Company's adjusted efficiency ratio declined to 54.10%, compared with 54.42% in the third quarter of 2018 and 60.88% in the fourth quarter of 2017.  Management expects to continue improving efficiency in future quarters as a result of the Company's acquisitions completed in 2018 and its announced cost savings strategies and branch consolidation plan.  Atlantic Coast Bank and Hamilton State Bank were fully integrated by the end of the fourth quarter of 2018, and full cost savings benefits have been realized.  The Company's additional branch consolidation and cost saving initiatives will take effect the first quarter of 2019.

Income Tax Expense
The Company's effective tax rate for the fourth quarter of 2018 was 13.9%, compared with 24.3% in the third quarter of 2018.  The reduced rate in the fourth quarter is a result of a large return to provision adjustment when the Company filed its 2017 income tax returns in the fourth quarter of 2018.  These factors, determined in the fourth quarter, impacted the overall expected tax rate for the year and the full impact was realized in the fourth quarter.  Excluding this benefit, which was removed in the adjusted net income amounts discussed above, the Company's tax rate for the fourth quarter of 21.4% was more in line with the year-to-date tax rate of 20.1%. This is significantly lower than the 2017 effective tax rate of 40.8% because of the Tax Cuts and Jobs Act that was enacted in the fourth quarter of 2017.

Balance Sheet Trends
Total assets increased $3.59 billion, or 45.7%, during 2018.  Total loans, including loans held for sale, purchased loans and purchased loan pools, were $8.62 billion at the end of 2018, compared with $6.24 billion at the end of 2017.  Excluding the effects of recent acquisitions, growth in core loans (including legacy and purchased non-covered loans) totaled $482.6 million, or 8.5%, during 2018, compared with $941.0 million, or 20.3%, in 2017.  As management expected, loan growth rates in the fourth quarter of 2018 slowed due to the negative impact of early paydowns.  Production remained strong in the fourth quarter of 2018, increasing by 29.4% from the third quarter of 2018 and by 44.1% from the fourth quarter of 2017.

At December 31, 2018, total deposits amounted to $9.65 billion, or 97.4% of total funding, compared with $6.63 billion and 94.8%, respectively, at December 31, 2017.  Excluding the Company's recently completed acquisitions and brokered funds, deposits increased $549.7 million, or 8.6%.  At December 31, 2018, noninterest-bearing deposit accounts were $2.52 billion, or 26.1% of total deposits, compared with $1.78 billion, or 26.8% of total deposits, at December 31, 2017.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $4.60 billion at December 31, 2018, compared with $3.52 billion at the end of 2017.  These funds represented 47.6% of the Company's total deposits at the end of 2018, compared with 53.1% at the end of 2017.

Stockholders' equity at December 31, 2018 totaled $1.46 billion, an increase of $651.9 million, or 81.0%, from December 31, 2017.  The increase in stockholders' equity was the result of the issuance of new shares of common stock in the Company's recent acquisitions, plus earnings of $121.0 million during 2018.  Tangible book value per share was $18.83 at the end of 2018, up from $17.78 at September 30, 2018 and $17.86 at the end of 2017.  Tangible common equity as a percentage of tangible assets was 8.22% at the end of 2018, compared with 7.77% at the end of the third quarter of 2017 and 8.62% at the end of 2017.

Credit Quality
During the fourth quarter of 2018, the Company recorded provision for loan loss expense of $3.7 million, compared with $2.1 million in the third quarter of 2018.  The increase in provision expense is mostly attributable to increased general reserves on consumer and premium finance loans based on loss history and agricultural loans affected by Hurricane Michael.  Nonperforming assets as a percentage of total assets decreased five basis points to 0.55% during the quarter.  As management expected, the net charge-off ratio for non-purchased loans decreased, by 23 basis points, as the elevated charge offs in the prior quarter resulting from the premium finance division, which were provided for and discussed in the second quarter of 2018.

Conference Call
The Company will host a teleconference at 10:00 a.m. Eastern time today (January 25, 2019) 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 February 8, 2019.  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 10127703.  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 forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals, and including statements about the benefits of the proposed merger between the Company and Fidelity Southern Corporation ("Fidelity").  Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements.  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.  Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, 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 ability of the Company and Fidelity to consummate the proposed merger or satisfy the conditions to the completion of the proposed merger, including, without limitation, the receipt of required shareholder and regulatory approvals, on the terms expected or on the anticipated schedule; the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed merger; the businesses of the Company and Fidelity 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 proposed merger may not be fully realized within the expected timeframes; disruption from the proposed merger may make it more difficult to maintain relationships with customers, employees or others; diversion of management time to merger-related issues; dilution caused by the Company's issuance of additional shares of its common stock in connection with the proposed merger; 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 and Fidelity's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and its subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and Fidelity's Annual Report on Form 10-K for the year ended December 31, 2017 and its 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 neither the Company nor Fidelity undertakes any obligation to update or revise forward-looking statements.

Additional Information and Where to Find It

The Company intends to file a registration statement on Form S-4 with the Securities and Exchange Commission to register the shares of the Company's common stock that will be issued to Fidelity's shareholders in connection with the proposed merger transaction.  The registration statement will include a joint proxy statement/prospectus and other relevant materials in connection with the transaction.  BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.  Investors and security holders may obtain free copies of these documents and other documents filed with the Securities and Exchange Commission on its website at http://www.sec.gov.  Investors and security holders may also obtain free copies of the documents filed with the Securities and Exchange Commission by the Company on its website at http://www.AmerisBank.com and by Fidelity on its website at www.FidelitySouthern.com.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  Before making any voting or investment decision, investors and security holders of the Company and Fidelity are urged to read carefully the entire registration statement and joint proxy statement/prospectus when they become available, including any amendments thereto, because they will contain important information about the proposed merger transaction.  Free copies of these documents may be obtained as described above.

Participants in the Merger Solicitation

The Company and Fidelity, and certain of their respective directors, executive officers and other members of management and employees, may be deemed to be participants in the solicitation of proxies from the Company's shareholders and Fidelity's shareholders in respect of the proposed merger transaction.  Information regarding the directors and executive officers of the Company and Fidelity and other persons who may be deemed participants in the solicitation of the Company's shareholders and Fidelity's shareholders will be included in the joint proxy statement/prospectus for the Company's meeting of shareholders and Fidelity's meeting of shareholders, which will be filed by the Company with the Securities and Exchange Commission.  Information about the Company's directors and executive officers and their ownership of the Company's common stock can also be found in the Company's definitive proxy statement in connection with its 2018 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 2, 2018, and other documents subsequently filed by the Company with the Securities and Exchange Commission.  Information about Fidelity's directors and executive officers and their ownership of Fidelity common stock can also be found in Fidelity's definitive proxy statement in connection with its 2018 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 3, 2018, and other documents subsequently filed by Fidelity with the Securities and Exchange Commission.  Additional information regarding the interests of such participants will be included in the joint proxy statement/prospectus and other relevant documents regarding the proposed merger transaction filed with the Securities and Exchange Commission when they become available.

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Financial Highlights



Table 1


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands except per share data)

2018


2018


2018


2018


2017


2018


2017















EARNINGS














Net income

$

43,536



$

41,444



$

9,387



$

26,660



$

9,150



$

121,027



$

73,548


Adjusted net income

$

45,897



$

43,292



$

29,239



$

27,780



$

23,590



$

146,208



$

92,271
















COMMON SHARE DATA














Earnings per share available to common
shareholders














Basic

$

0.92



$

0.87



$

0.24



$

0.70



$

0.25



$

2.81



$

2.00


Diluted

$

0.91



$

0.87



$

0.24



$

0.70



$

0.24



$

2.80



$

1.98


Adjusted diluted EPS

$

0.96



$

0.91



$

0.74



$

0.73



$

0.63



$

3.38



$

2.48


Cash dividends per share

$

0.10



$

0.10



$

0.10



$

0.10



$

0.10



$

0.40



$

0.40


Book value per share (period end)

$

30.66



$

29.58



$

28.87



$

22.67



$

21.59



$

30.66



$

21.59


Tangible book value per share (period end)

$

18.83



$

17.78



$

17.12



$

16.90



$

17.86



$

18.83



$

17.86


Weighted average number of shares














Basic

47,501,150



47,514,653



39,432,021



37,966,781



37,238,564



43,141,859



36,828,219


Diluted

47,593,252



47,685,334



39,709,503



38,250,122



37,556,335



43,247,796



37,144,139


Period end number of shares

47,499,941



47,496,966



47,518,662



38,327,081



37,260,012



47,499,941



37,260,012


Market data














High intraday price

$

47.25



$

54.35



$

58.10



$

59.05



$

51.30



$

59.05



$

51.30


Low intraday price

$

29.97



$

45.15



$

50.20



$

47.90



$

44.75



$

29.97



$

41.05


Period end closing price

$

31.67



$

45.70



$

53.35



$

52.90



$

48.20



$

31.67



$

48.20


Average daily volume

375,773



382,622



253,413



235,964



206,178



312,388



196,717
















PERFORMANCE RATIOS














Return on average assets

1.53

%


1.47

%


0.44

%


1.38

%


0.47

%


1.24

%


1.00

%

Adjusted return on average assets

1.61

%


1.53

%


1.38

%


1.44

%


1.20

%


1.50

%


1.26

%

Return on average common equity

12.09

%


11.78

%


3.86

%


12.73

%


4.47

%


10.27

%


9.55

%

Adjusted return on average tangible common
equity

20.95

%


20.50

%


17.26

%


17.09

%


13.91

%


19.18

%


14.66

%

Earning asset yield (TE)

4.81

%


4.78

%


4.66

%


4.52

%


4.49

%


4.71

%


4.46

%

Total cost of funds

0.94

%


0.90

%


0.75

%


0.63

%


0.57

%


0.82

%


0.52

%

Net interest margin (TE)

3.91

%


3.92

%


3.95

%


3.92

%


3.94

%


3.92

%


3.95

%

Noninterest income excluding securities
transactions, as a percent of total revenue
(TE)

19.75

%


19.77

%


25.72

%


24.71

%


22.41

%


22.11

%


25.73

%

Efficiency ratio

58.30

%


56.00

%


80.50

%


62.04

%


63.74

%


63.59

%


63.62

%

Adjusted efficiency ratio (TE)

54.10

%


54.42

%


57.53

%


59.95

%


60.88

%


56.19

%


60.27

%















CAPITAL ADEQUACY (period end)














Shareholders' equity to assets

12.73

%


12.29

%


12.26

%


10.83

%


10.24

%


12.73

%


10.24

%

Tangible common equity to tangible assets

8.22

%


7.77

%


7.65

%


8.30

%


8.62

%


8.22

%


8.62

%















EQUITY TO ASSETS RECONCILIATION














Tangible common equity to tangible assets

8.22

%


7.77

%


7.65

%


8.30

%


8.62

%


8.22

%


8.62

%

Effect of goodwill and other intangibles

4.51

%


4.52

%


4.61

%


2.53

%


1.62

%


4.51

%


1.62

%

Equity to assets (GAAP)

12.73

%


12.29

%


12.26

%


10.83

%


10.24

%


12.73

%


10.24

%















OTHER DATA (period end)














Full time equivalent employees














Banking Division

1,370



1,432



1,477



1,072



1,085



1,370



1,085


Retail Mortgage Division

332



317



308



290



279



332



279


Warehouse Lending Division

8



8



7



7



8



8



8


SBA Division

22



23



22



21



20



22



20


Premium Finance Division

72



67



68



67



68



72



68


Total Ameris Bancorp FTE headcount

1,804



1,847



1,882



1,457



1,460



1,804



1,460
















Assets per Banking Division FTE

$

8,353



$

7,981



$

7,577



$

7,484



$

7,241



$

8,353



$

7,241


Branch locations

125



125



126



97



97



125



97


Deposits per branch location

$

77,195



$

73,451



$

69,536



$

66,455



$

68,308



$

77,195



$

68,308


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Income Statement



Table 2


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands except per share data)

2018


2018


2018


2018


2017


2018


2017















Interest income














Interest and fees on loans

$

111,749



$

110,470



$

82,723



$

73,267



$

73,440



$

378,209



$

270,887


Interest on taxable securities

8,686



8,792



6,321



5,207



5,097



29,006



20,154


Interest on nontaxable securities

195



204



179



322



372



900



1,581


Interest on deposits in other banks

1,964



1,581



723



716



655



4,984



1,725


Interest on federal funds sold

155



72









227




Total interest income

122,749



121,119



89,946



79,512



79,564



413,326



294,347
















Interest expense














Interest on deposits

18,858



15,630



7,794



6,772



6,398



49,054



19,877


Interest on other borrowings

4,337



6,451



6,153



3,939



3,643



20,880



14,345


Total interest expense

23,195



22,081



13,947



10,711



10,041



69,934



34,222
















Net interest income

99,554



99,038



75,999



68,801



69,523



343,392



260,125


Provision for loan losses

3,661



2,095



9,110



1,801



2,536



16,667



8,364


Net interest income after provision for loan

losses

95,893



96,943



66,889



67,000



66,987



326,725



251,761
















Noninterest income














Service charges on deposits accounts

12,597



12,690



10,613



10,228



10,340



46,128



42,054


Mortgage banking activity

11,089



13,413



14,890



11,900



10,037



51,292



48,535


Other service charges, commissions and fees

810



777



697



719



735



3,003



2,872


Gain (loss) on securities

1



48



(123)



37





(37)



37


Other noninterest income

5,973



3,243



5,230



3,580



2,451



18,026



10,959


Total noninterest income

30,470



30,171



31,307



26,464



23,563



118,412



104,457
















Noninterest expense














Salaries and employee benefits

38,982



38,446



39,776



32,089



30,507



149,293



120,016


Occupancy and equipment expenses

7,945



8,598



6,390



6,198



6,010



29,131



24,069


Data processing and telecommunications expenses

8,293



8,518



6,439



7,135



7,219



30,385



27,869


Credit resolution related expenses(1)

1,174



1,248



1,045



549



614



4,016



3,493


Advertising and marketing expenses

1,633



1,453



1,256



1,229



1,519



5,571



5,131


Amortization of intangible assets

3,650



2,676



2,252



934



942



9,512



3,932


Merger and conversion charges

997



276



18,391



835



421



20,499



915


Other noninterest expenses

13,136



11,138



10,837



10,129



12,105



45,240



46,511


Total noninterest expense

75,810



72,353



86,386



59,098



59,337



293,647



231,936
















Income before income tax expense

50,553



54,761



11,810



34,366



31,213



151,490



124,282


Income tax expense

7,017



13,317



2,423



7,706



22,063



30,463



50,734


Net income

$

43,536



$

41,444



$

9,387



$

26,660



$

9,150



$

121,027



$

73,548
















Diluted earnings per common share

$

0.91



$

0.87



$

0.24



$

0.70



$

0.24



$

2.80



$

1.98
















(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


Dec


Sep


Jun


Mar


Dec

(dollars in thousands)

2018


2018


2018


2018


2017











Assets










Cash and due from banks

$

172,036



$

158,453



$

151,539



$

123,945



$

139,313


Federal funds sold and interest-bearing deposits in banks

507,491



470,804



273,170



210,930



191,345


Time deposits in other banks

10,812



11,558



11,558






Investment securities available for sale, at fair value

1,192,423



1,162,570



1,153,703



848,585



810,873


Other investments

14,455



35,929



44,769



32,227



42,270


Loans held for sale, at fair value

111,298



130,179



137,249



111,135



197,442












Loans

5,660,457



5,543,306



5,380,515



5,051,986



4,856,514


Purchased loans

2,588,832



2,711,460



2,812,510



818,587



861,595


Purchased loan pools

262,625



274,752



297,509



319,598



328,246


Loans, net of unearned income

8,511,914



8,529,518



8,490,534



6,190,171



6,046,355


Allowance for loan losses

(28,819)



(28,116)



(31,532)



(26,200)



(25,791)


Loans, net

8,483,095



8,501,402



8,459,002



6,163,971



6,020,564












Other real estate owned

7,218



9,375



8,003



9,171



8,464


Purchased other real estate owned

9,535



7,692



7,272



6,723



9,011


Total other real estate owned

16,753



17,067



15,275



15,894



17,475












Premises and equipment, net

145,410



145,885



144,484



116,381



117,738


Goodwill

503,434



505,604



504,764



208,513



125,532


Other intangible assets, net

58,689



54,729



53,561



12,562



13,496


Deferred income taxes, net

35,126



38,217



40,240



28,677



28,320


Cash value of bank owned life insurance

104,096



103,588



103,059



80,007



79,641


Other assets

88,397



93,009



98,324



70,001



72,194


Total assets

$

11,443,515



$

11,428,994



$

11,190,697



$

8,022,828



$

7,856,203












Liabilities










Deposits










Noninterest-bearing

$

2,520,016



$

2,333,992



$

2,356,420



$

1,867,900



$

1,777,141


Interest-bearing

7,129,297



6,847,371



6,405,173



4,578,265



4,848,704


Total deposits

9,649,313



9,181,363



8,761,593



6,446,165



6,625,845


Federal funds purchased and securities sold under agreements to repurchase

20,384



14,071



11,002



23,270



30,638


Other borrowings

151,774



656,831



862,136



555,535



250,554


Subordinated deferrable interest debentures

89,187



88,986



88,646



85,881



85,550


FDIC loss-share payable, net

19,487



18,740



18,716



9,255



8,803


Other liabilities

57,023



64,026



76,708



33,778



50,334


Total liabilities

9,987,168



10,024,017



9,818,801



7,153,884



7,051,724












Shareholders' Equity










Preferred stock










Common stock

49,015



49,012



49,012



39,820



38,735


Capital stock

1,051,584



1,050,752



1,049,283



559,040



508,404


Retained earnings

377,135



338,350



301,656



296,366



273,119


Accumulated other comprehensive income (loss), net of tax

(4,826)



(16,576)



(12,571)



(10,823)



(1,280)


Treasury stock

(16,561)



(16,561)



(15,484)



(15,459)



(14,499)


Total shareholders' equity

1,456,347



1,404,977



1,371,896



868,944



804,479


Total liabilities and shareholders' equity

$

11,443,515



$

11,428,994



$

11,190,697



$

8,022,828



$

7,856,203












Other Data










Earning assets

$

10,348,393



$

10,340,558



$

10,110,983



$

7,393,048



$

7,288,285


Intangible assets

562,123



560,333



558,325



221,075



139,028


Interest-bearing liabilities

7,390,642



7,607,259



7,366,957



5,242,951



5,215,446


Average assets

11,307,980



11,204,504



8,529,035



7,823,451



7,777,996


Average common shareholders' equity

1,428,341



1,395,479



974,494



849,346



812,264


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Asset Quality Information



Table 4


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017















Allowance for Loan Losses














Balance at beginning of period

$

28,116



$

31,532



$

26,200



$

25,791



$

25,966



$

25,791



$

23,920
















Provision for loan losses

3,661



2,095



9,110



1,801



2,536



16,667



8,364
















Charge-offs

4,430



8,112



5,717



2,872



3,638



21,131



10,467


Recoveries

1,472



2,601



1,939



1,480



927



7,492



3,974


Net charge-offs (recoveries)

2,958



5,511



3,778



1,392



2,711



13,639



6,493
















Ending balance

$

28,819



$

28,116



$

31,532



$

26,200



$

25,791



$

28,819



$

25,791
















Net  Charge-off Information




























Charge-offs














Commercial, financial and agricultural

$

2,489



$

6,121



$

3,744



$

1,449



$

954



$

13,803



$

2,850


Real estate - construction and development

7



265



20







292



95


Real estate - commercial and farmland

169



27





142



440



338



853


Real estate - residential

76



293



204



198



120



771



2,151


Consumer installment

1,465



923



839



962



696



4,189



1,618


Purchased loans

224



483



910



121



1,428



1,738



2,900


Purchased loan pools














Total charge-offs

4,430



8,112



5,717



2,872



3,638



21,131



10,467
















Recoveries














Commercial, financial and agricultural

927



939



1,247



656



571



3,769



1,270


Real estate - construction and development

3



1



2



114



2



120



246


Real estate - commercial and farmland

7



134



11



24



28



176



184


Real estate - residential

91



44



29



182



47



346



237


Consumer installment

137



178



117



67



38



499



116


Purchased loans

307



1,305



533



437



241



2,582



1,921


Purchased loan pools














Total recoveries

1,472



2,601



1,939



1,480



927



7,492



3,974
















Net charge-offs (recoveries)

$

2,958



$

5,511



$

3,778



$

1,392



$

2,711



$

13,639



$

6,493
















Non-Performing Assets














Nonaccrual loans (excluding purchased loans)

$

17,952



$

15,986



$

16,813



$

14,420



$

14,202



$

17,952



$

14,202


Nonaccrual purchased loans

24,107



27,764



33,557



15,940



15,428



24,107



15,428


Nonaccrual purchased loan pools



4,696



2,197










Other real estate owned

7,218



9,375



8,003



9,171



8,464



7,218



8,464


Purchased other real estate owned

9,535



7,692



7,272



6,723



9,011



9,535



9,011


Accruing loans delinquent 90 days or more

(excluding purchased loans)

4,222



2,863



7,421



2,497



5,991



4,222



5,991


Accruing purchased loans delinquent 90 days or more














Total non-performing assets

$

63,034



$

68,376



$

75,263



$

48,751



$

53,096



$

63,034



$

53,096
















Asset Quality Ratios














Non-performing assets as a percent of total assets

0.55

%


0.60

%


0.67

%


0.61

%


0.68

%


0.55

%


0.68

%

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

0.14

%


0.26

%


0.23

%


0.09

%


0.18

%


0.18

%


0.12

%

Net charge-offs, excluding purchased loans as a
percent of average loans (annualized)

0.21

%


0.44

%


0.26

%


0.14

%


0.13

%


0.27

%


0.13

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information

Table 5


Dec


Sep


Jun


Mar


Dec

(dollars in thousands)

2018


2018


2018


2018


2017











Loans by Type










Legacy loans










Commercial, financial and agricultural

$

1,316,359



$

1,422,152



$

1,446,857



$

1,387,437



$

1,362,508


Real estate - construction and development

671,198



641,830



672,155



631,504



624,595


Real estate - commercial and farmland

1,814,529



1,804,265



1,640,411



1,636,654



1,535,439


Real estate - residential

1,403,000



1,275,201



1,245,370



1,080,028



1,009,461


Consumer installment

455,371



399,858



375,722



316,363



324,511


Total legacy loans

$

5,660,457



$

5,543,306



$

5,380,515



$

5,051,986



$

4,856,514


Purchased loans










Commercial, financial and agricultural

$

372,686



$

413,365



$

397,517



$

64,612



$

74,378


Real estate - construction and development

227,900



219,882



268,443



48,940



65,513


Real estate - commercial and farmland

1,337,859



1,399,174



1,428,490



465,870



468,246


Real estate - residential

623,199



649,352



679,205



236,453



250,539


Consumer installment

27,188



29,687



38,855



2,712



2,919


Total purchased loans

$

2,588,832



$

2,711,460



$

2,812,510



$

818,587



$

861,595


Purchased loan pools










Real estate - residential

$

262,625



$

274,752



$

297,509



$

319,598



$

328,246


Total purchased loan pools

$

262,625



$

274,752



$

297,509



$

319,598



$

328,246


Total loan portfolio










Commercial, financial and agricultural

$

1,689,045



$

1,835,517



$

1,844,374



$

1,452,049



$

1,436,886


Real estate - construction and development

899,098



861,712



940,598



680,444



690,108


Real estate - commercial and farmland

3,152,388



3,203,439



3,068,901



2,102,524



2,003,685


Real estate - residential

2,288,824



2,199,305



2,222,084



1,636,079



1,588,246


Consumer installment

482,559



429,545



414,577



319,075



327,430


Total loans

$

8,511,914



$

8,529,518



$

8,490,534



$

6,190,171



$

6,046,355












Troubled Debt Restructurings (excluding purchased loans)










Accruing troubled debt restructurings










Commercial, financial and agricultural

$

256



$

180



$

38



$

39



$

41


Real estate - construction and development

145



384



150



176



417


Real estate - commercial and farmland

2,863



3,817



4,531



4,606



4,680


Real estate - residential

6,043



6,558



6,299



6,547



6,199


Consumer installment

16



4



5



7



5


Total accruing troubled debt restructurings

$

9,323



$

10,943



$

11,023



$

11,375



$

11,342


Nonaccrual troubled debt restructurings










Commercial, financial and agricultural

$

138



$

208



$

330



$

224



$

120


Real estate - construction and development

2



6



30



7



34


Real estate - commercial and farmland

426



306



196



2,127



204


Real estate - residential

1,119



742



709



838



1,508


Consumer installment

69



92



102



93



98


Total nonaccrual troubled debt restructurings

$

1,754



$

1,354



$

1,367



$

3,289



$

1,964


   Total troubled debt restructurings (excluding purchased loans)

$

11,077



$

12,297



$

12,390



$

14,664



$

13,306


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Loan Information (continued)

Table 5


Dec


Sep


Jun


Mar


Dec

(dollars in thousands)

2018


2018


2018


2018


2017











Loans by Risk Grade










Legacy loans










Grade 1 - Prime credit

$

542,164



$

550,020



$

545,902



$

557,625



$

554,979


Grade 2 - Strong credit

523,101



645,612



660,495



673,591



688,481


Grade 3 - Good credit

2,408,128



2,289,584



2,211,703



2,050,717



2,033,979


Grade 4 - Satisfactory credit

2,047,688



1,939,518



1,820,884



1,676,308



1,487,781


Grade 5 - Fair credit

59,054



40,041



52,069



17,499



16,996


Grade 6 - Other assets especially mentioned

35,118



41,125



38,150



39,795



30,075


Grade 7 - Substandard

45,204



37,406



51,305



36,444



44,216


Grade 8 - Doubtful





7



7



7


Grade 9 - Loss










Total legacy loans

$

5,660,457



$

5,543,306



$

5,380,515



$

5,051,986



$

4,856,514


Purchased loans










Grade 1 - Prime credit

$

90,775



$

54,840



$

55,183



$

3,808



$

3,964


Grade 2 - Strong credit

84,617



132,454



139,683



97,448



101,098


Grade 3 - Good credit

656,289



463,307



449,317



243,730



259,872


Grade 4 - Satisfactory credit

1,586,377



1,828,090



1,908,143



367,997



385,080


Grade 5 - Fair credit

63,613



133,653



135,281



20,012



19,736


Grade 6 - Other assets especially mentioned

30,448



35,676



45,095



33,705



37,121


Grade 7 - Substandard

76,713



63,440



79,808



51,887



54,724


Grade 8 - Doubtful










Grade 9 - Loss










Total purchased loans

$

2,588,832



$

2,711,460



$

2,812,510



$

818,587



$

861,595


Purchased loan pools










Grade 3 - Good credit

$

262,625



$

270,056



$

295,312



$

318,696



$

327,342


Grade 7 - Substandard



4,696



2,197



902



904


Total purchased loan pools

$

262,625



$

274,752



$

297,509



$

319,598



$

328,246


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Average Balances



Table 6


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017















Earning Assets














Federal funds sold

$

28,755



$

15,074



$

203



$

9



$

3



$

11,100



$

1


Interest-bearing deposits in banks

373,068



283,604



151,332



147,481



184,287



240,740



140,702


Time deposits in other banks

10,961



11,557



254







5,739




Investment securities - taxable

1,138,981



1,117,517



839,772



777,310



759,253



969,825



761,593


Investment securities - nontaxable

29,962



31,641



26,626



48,455



58,858



34,113



62,055


Other investments

18,494



36,067



42,384



34,654



32,706



32,884



37,541


Loans held for sale

129,664



151,396



141,875



138,129



138,468



140,273



113,657


Loans

5,819,684



5,703,921



5,198,301



4,902,082



4,692,997



5,415,757



4,188,378


Purchased loans

2,402,610



2,499,393



1,107,184



842,509



888,854



1,712,924



958,738


Purchased loan pools

268,568



287,859



310,594



325,113



446,677



297,850



496,844


Total Earning Assets

$

10,220,747



$

10,138,029



$

7,818,525



$

7,215,742



$

7,202,103



$

8,861,205



$

6,759,509
















Deposits














Noninterest-bearing deposits

$

2,570,783



$

2,320,851



$

1,973,910



$

1,780,738



$

1,805,996



$

2,164,171



$

1,670,499


NOW accounts

1,546,939



1,567,111



1,311,952



1,337,718



1,301,628



1,441,849



1,207,024


MMDA

2,590,194



2,440,086



1,950,601



1,970,571



1,964,437



2,240,115



1,690,091


Savings accounts

401,836



423,449



295,326



278,080



273,979



350,214



275,119


Retail CDs < $100,000

776,556



744,145



475,965



422,771



433,303



606,210



439,140


Retail CDs $100,000 and over

1,055,973



978,842



585,632



593,635



592,916



805,267



563,557


Brokered CDs

510,663



487,686



14,132







255,162




Total Deposits

9,452,944



8,962,170



6,607,518



6,383,513



6,372,259



7,862,988



5,845,430


Non-Deposit Funding














Federal funds purchased and securities sold
under agreements to repurchase

14,670



12,529



14,762



20,909



25,970



15,692



28,694


FHLB advances

101,337



513,460



703,177



371,556



369,076



421,891



496,541


Other borrowings

145,494



145,513



86,302



75,553



75,571



113,496



68,726


Subordinated deferrable interest debentures

89,135



88,801



86,085



85,701



85,372



87,444



84,878


Total Non-Deposit Funding

350,636



760,303



890,326



553,719



555,989



638,523



678,839


Total Funding

$

9,803,580



$

9,722,473



$

7,497,844



$

6,937,232



$

6,928,248



$

8,501,511



$

6,524,269


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Interest Income and Interest Expense (TE)













Table 7


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017















Interest Income














Federal funds sold

$

155



$

72



$



$



$



$

227



$


Interest-bearing deposits in banks

1,906



1,520



723



716



655



4,865



1,725


Time deposits in other banks

58



61









119




Investment securities - taxable

8,686



8,792



6,321



5,207



5,097



29,006



20,154


Investment securities - nontaxable (TE)

247



258



226



408



572



1,139



2,432


Loans held for sale

1,618



1,566



1,315



1,210



1,380



5,709



4,222


Loans (TE)

73,594



73,178



63,908



58,771



57,193



269,451



200,999


Purchased loans

35,413



34,692



16,130



11,762



13,150



97,997



57,136


Purchased loan pools

2,151



2,059



2,267



2,424



3,531



8,901



14,640


Total Earning Assets

$

123,828



$

122,198



$

90,890



$

80,498



$

81,578



$

417,414



$

301,308
















Accretion income (included above)

$

4,077



$

3,656



$

2,652



$

1,444



$

2,183



$

11,829



$

10,614
















Interest Expense














Deposits














Noninterest-bearing deposits

$



$



$



$



$



$



$


NOW accounts

1,736



1,142



1,142



953



811



4,973



2,428


MMDA

7,991



5,885



3,953



3,526



3,288



21,355



9,150


Savings accounts

83



82



54



47



46



266



181


Retail CDs < $100,000

1,880



1,827



907



668



702



5,282



2,584


Retail CDs $100,000 and over

3,978



3,643



1,670



1,578



1,551



10,869



5,534


Brokered CDs

3,190



3,051



68







6,309




Total Deposits

18,858



15,630



7,794



6,772



6,398



49,054



19,877


Non-Deposit Funding














Federal funds purchased and securities sold
under agreements to repurchase

5



4



5



9



12



23



56


FHLB advances

568



2,745



3,383



1,457



1,180



8,153



5,174


Other borrowings

2,222



2,180



1,320



1,134



1,144



6,856



4,044


Subordinated deferrable interest debentures

1,542



1,522



1,445



1,339



1,307



5,848



5,071


Total Non-Deposit Funding

4,337



6,451



6,153



3,939



3,643



20,880



14,345


Total Funding

$

23,195



$

22,081



$

13,947



$

10,711



$

10,041



$

69,934



$

34,222
















Net Interest Income (TE)

$

100,633



$

100,117



$

76,943



$

69,787



$

71,537



$

347,480



$

267,086


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Yields(1)













Table 8


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec


2018


2018


2018


2018


2017


2018


2017















Earning Assets














Federal funds sold

2.14

%


1.89

%


0.00

%


0.00

%


0.00

%


2.05

%


0.00

%

Interest-bearing deposits in banks

2.03

%


2.13

%


1.92

%


1.97

%


1.41

%


2.02

%


1.23

%

Time deposits in other banks

2.10

%


2.09

%


0.00

%


0.00

%


0.00

%


2.07

%


0.00

%

Investment securities - taxable

3.03

%


3.12

%


3.02

%


2.72

%


2.66

%


2.99

%


2.65

%

Investment securities - nontaxable (TE)

3.27

%


3.24

%


3.40

%


3.41

%


3.86

%


3.34

%


3.92

%

Loans held for sale

4.95

%


4.10

%


3.72

%


3.55

%


3.95

%


4.07

%


3.71

%

Loans (TE)

5.02

%


5.09

%


4.93

%


4.86

%


4.84

%


4.98

%


4.80

%

Purchased loans

5.85

%


5.51

%


5.84

%


5.66

%


5.87

%


5.72

%


5.96

%

Purchased loan pools

3.18

%


2.84

%


2.93

%


3.02

%


3.14

%


2.99

%


2.95

%

Total Earning Assets

4.81

%


4.78

%


4.66

%


4.52

%


4.49

%


4.71

%


4.46

%















Deposits














Noninterest-bearing deposits

0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%


0.00

%

NOW accounts

0.45

%


0.29

%


0.35

%


0.29

%


0.25

%


0.34

%


0.20

%

MMDA

1.22

%


0.96

%


0.81

%


0.73

%


0.66

%


0.95

%


0.54

%

Savings accounts

0.08

%


0.08

%


0.07

%


0.07

%


0.07

%


0.08

%


0.07

%

Retail CDs < $100,000

0.96

%


0.97

%


0.76

%


0.64

%


0.64

%


0.87

%


0.59

%

Retail CDs $100,000 and over

1.49

%


1.48

%


1.14

%


1.08

%


1.04

%


1.35

%


0.98

%

Brokered CDs

2.48

%


2.48

%


1.93

%


0.00

%


0.00

%


2.47

%


0.00

%

Total Deposits

0.79

%


0.69

%


0.47

%


0.43

%


0.40

%


0.62

%


0.34

%

Non-Deposit Funding














Federal funds purchased and securities sold under agreements to
repurchase

0.14

%


0.13

%


0.14

%


0.17

%


0.18

%


0.15

%


0.20

%

FHLB advances

2.22

%


2.12

%


1.93

%


1.59

%


1.27

%


1.93

%


1.04

%

Other borrowings

6.06

%


5.94

%


6.13

%


6.09

%


6.01

%


6.04

%


5.88

%

Subordinated deferrable interest debentures

6.86

%


6.80

%


6.73

%


6.34

%


6.07

%


6.69

%


5.97

%

Total Non-Deposit Funding

4.91

%


3.37

%


2.77

%


2.89

%


2.60

%


3.27

%


2.11

%

Total Funding(2)

0.94

%


0.90

%


0.75

%


0.63

%


0.57

%


0.82

%


0.52

%















Net Interest Spread

3.87

%


3.88

%


3.91

%


3.89

%


3.92

%


3.89

%


3.94

%















Net Interest Margin(3)

3.91

%


3.92

%


3.95

%


3.92

%


3.94

%


3.92

%


3.95

%















(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


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands except per share data)

2018


2018


2018


2018


2017


2018


2017

Net income available to common shareholders

$

43,536



$

41,444



$

9,387



$

26,660



$

9,150



$

121,027



$

73,548
















Adjustment items:














Merger and conversion charges

997



276



18,391



835



421



20,499



915


Executive retirement benefits

2,005



962



5,457







8,424




Restructuring charge

754



229









983




Certain compliance resolution expenses









434





5,163


Accelerated premium amortization on loans sold
from purchased loan pools









456





456


Financial impact of hurricanes

882











882



410


Loss on sale of premises

250



4



196



583



308



1,033



1,264


Tax effect of adjustment items (Note 1)

(810)



377



(4,192)



(298)



(567)



(4,923)



(2,873)


After tax adjustment items

4,078



1,848



19,852



1,120



1,052



26,898



5,335
















Tax expense attributable to remeasurement of
deferred tax assets and deferred tax liabilities at
reduced federal corporate tax rate









13,388





13,388


Reduction in state tax expense accrued in prior
year net of federal tax impact

(1,717)











(1,717)


















Adjusted net income

$

45,897



$

43,292



$

29,239



$

27,780



$

23,590



$

146,208



$

92,271
















Weighted average number of shares - diluted

47,593,252



47,685,334



39,709,503



38,250,122



37,556,335



43,247,796



37,144,139


Net income per diluted share

$

0.91



$

0.87



$

0.24



$

0.70



$

0.24



$

2.80



$

1.98


Adjusted net income per diluted share

$

0.96



$

0.91



$

0.74



$

0.73



$

0.63



$

3.38



$

2.48
















Average assets

$

11,307,980



$

11,204,504



$

8,529,035



$

7,823,451



$

7,777,996



$

9,744,001



$

7,330,974


Return on average assets

1.53

%


1.47

%


0.44

%


1.38

%


0.47

%


1.24

%


1.00

%

Adjusted return on average assets

1.61

%


1.53

%


1.38

%


1.44

%


1.20

%


1.50

%


1.26

%















Average common equity

$

1,428,341



$

1,395,479



$

974,494



$

849,346



$

812,264



$

1,178,275



$

770,296


Average tangible common equity

$

869,201



$

837,914



$

679,559



$

659,096



$

672,728



$

762,274



$

629,312


Return on average common equity

12.09

%


11.78

%


3.86

%


12.73

%


4.47

%


10.27

%


9.55

%

Adjusted return on average tangible common equity

20.95

%


20.50

%


17.26

%


17.09

%


13.91

%


19.18

%


14.66

%















Note 1:  A portion of the 2Q18, 3Q18 and 4Q18 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


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017

Total interest income (TE)

$

123,828



$

122,198



$

90,890



$

80,498



$

81,578



$

417,414



$

301,308


Accretion income

4,077



3,656



2,652



1,444



2,183



11,829



10,614


Total interest income (TE) excluding accretion

119,751



118,542



88,238



79,054



79,395



405,585



290,694


Interest expense

23,195



22,081



13,947



10,711



10,041



69,934



34,222


Net interest income (TE) excluding accretion

$

96,556



$

96,461



$

74,291



$

68,343



$

69,354



$

335,651



$

256,472
















Yield on total loans (TE) excluding accretion

5.00

%


4.95

%


4.81

%


4.75

%


4.70

%


4.89

%


4.63

%

Net interest margin (TE) excluding accretion

3.75

%


3.77

%


3.81

%


3.84

%


3.82

%


3.79

%


3.79

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Non-GAAP Reconciliations (continued)






Adjusted Efficiency Ratio (TE)











Table 9C


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017

Adjusted Noninterest Expense














Total noninterest expense

$

75,810



$

72,353



$

86,386



$

59,098



$

59,337



$

293,647



$

231,936


Adjustment items:














Merger and conversion charges

(997)



(276)



(18,391)



(835)



(421)



(20,499)



(915)


Executive retirement benefits

(2,005)



(962)



(5,457)







(8,424)




Restructuring charge

(754)



(229)









(983)




Certain compliance resolution expenses









(434)





(5,163)


Financial impact of hurricanes

(882)











(882)



(410)


Loss on sale of premises

(250)



(4)



(196)



(583)



(308)



(1,033)



(1,264)


Adjusted noninterest expense

$

70,922



$

70,882



$

62,342



$

57,680



$

58,174



$

261,826



$

224,184
















Total Revenue














Net interest income

$

99,554



$

99,038



$

75,999



$

68,801



$

69,523



$

343,392



$

260,125


Noninterest income

30,470



30,171



31,307



26,464



23,563



118,412



104,457


Total revenue

$

130,024



$

129,209



$

107,306



$

95,265



$

93,086



$

461,804



$

364,582
















Adjusted Total Revenue














Net interest income (TE)

$

100,633



$

100,117



$

76,943



$

69,787



$

71,537



$

347,480



$

267,086


Noninterest income

30,470



30,171



31,307



26,464



23,563



118,412



104,457


Total revenue (TE)

131,103



130,288



108,250



96,251



95,100



465,892



371,543


Adjustment items:














Loss (gain) on securities

(1)



(48)



123



(37)





37



(37)


Accelerated premium amortization on loans sold

from purchased loan pools









456





456


Adjusted total revenue (TE)

$

131,102



$

130,240



$

108,373



$

96,214



$

95,556



$

465,929



$

371,962
















Efficiency ratio

58.30

%


56.00

%


80.50

%


62.04

%


63.74

%


63.59

%


63.62

%

Adjusted efficiency ratio (TE)

54.10

%


54.42

%


57.53

%


59.95

%


60.88

%


56.19

%


60.27

%















Tangible Book Value Per Share











Table 9D


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands except per share data)

2018


2018


2018


2018


2017


2018


2017

Total shareholders' equity

$

1,456,347



$

1,404,977



$

1,371,896



$

868,944



$

804,479



$

1,456,347



$

804,479


Less:














Goodwill

503,434



505,604



504,764



208,513



125,532



503,434



125,532


Other intangibles, net

58,689



54,729



53,561



12,562



13,496



58,689



13,496


Total tangible shareholders' equity

$

894,224



$

844,644



$

813,571



$

647,869



$

665,451



$

894,224



$

665,451
















Period end number of shares

47,499,941



47,496,966



47,518,662



38,327,081



37,260,012



47,499,941



37,260,012


Book value per share (period end)

$

30.66



$

29.58



$

28.87



$

22.67



$

21.59



$

30.66



$

21.59


Tangible book value per share (period end)

$

18.83



$

17.78



$

17.12



$

16.90



$

17.86



$

18.83



$

17.86


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting











Table 10


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017















Banking Division














Net interest income

$

84,399



$

84,041



$

61,759



$

55,359



$

55,193



$

285,558



$

210,719


Provision for loan losses

1,603



1,229



766



888



2,277



4,486



6,787


Noninterest income

15,784



16,524



13,287



13,099



12,442



58,694



51,416


Noninterest expense














Salaries and employee benefits

25,882



26,120



26,646



22,068



20,100



100,716



78,857


Occupancy and equipment expenses

7,080



7,871



5,684



5,477



5,368



26,112



21,436


Data processing and telecommunications expenses

7,522



7,589



5,611



6,304



6,399



27,026



25,177


Other noninterest expenses

17,310



13,461



29,937



11,080



11,837



71,788



46,192


Total noninterest expense

57,794



55,041



67,878



44,929



43,704



225,642



171,662


Income before income tax expense

40,786



44,295



6,402



22,641



21,654



114,124



83,686


Income tax expense

5,493



11,156



1,716



5,242



18,717



23,607



36,518


Net income

$

35,293



$

33,139



$

4,686



$

17,399



$

2,937



$

90,517



$

47,168
















Retail Mortgage Division














Net interest income

$

7,873



$

5,544



$

5,046



$

4,997



$

4,876



$

23,460



$

15,587


Provision for loan losses

(1)



122



246



217



154



584



771


Noninterest income

10,689



12,097



13,889



11,585



9,090



48,260



44,913


Noninterest expense














Salaries and employee benefits

10,802



10,061



10,864



7,742



8,225



39,469



32,996


Occupancy and equipment expenses

684



618



545



593



533



2,440



2,217


Data processing and telecommunications expenses

306



347



383



389



429



1,425



1,611


Other noninterest expenses

1,661



1,828



1,778



1,731



1,230



6,998



4,260


Total noninterest expense

13,453



12,854



13,570



10,455



10,417



50,332



41,084


Income before income tax expense

5,110



4,665



5,119



5,910



3,395



20,804



18,645


Income tax expense

1,073



943



1,075



1,244



1,189



4,335



6,526


Net income

$

4,037



$

3,722



$

4,044



$

4,666



$

2,206



$

16,469



$

12,119
















Warehouse Lending Division














Net interest income

$

2,438



$

2,469



$

2,326



$

1,855



$

1,983



$

9,088



$

5,877


Provision for loan losses









27





186


Noninterest income

386



503



735



397



399



2,021



1,739


Noninterest expense














Salaries and employee benefits

145



136



128



138



127



547



530


Occupancy and equipment expenses



2







1



2



4


Data processing and telecommunications expenses

29



30



30



33



18



122



98


Other noninterest expenses

62



69



55



52



26



238



163


Total noninterest expense

236



237



213



223



172



909



795


Income before income tax expense

2,588



2,735



2,848



2,029



2,183



10,200



6,635


Income tax expense

544



574



598



426



763



2,142



2,322


Net income

$

2,044



$

2,161



$

2,250



$

1,603



$

1,420



$

8,058



$

4,313


 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES


Segment Reporting (continued)











Table 10


Three Months Ended


Year Ended


Dec


Sep


Jun


Mar


Dec


Dec


Dec

(dollars in thousands)

2018


2018


2018


2018


2017


2018


2017















SBA Division














Net interest income

$

1,352



$

1,459



$

1,320



$

924



$

971



$

5,055



$

3,744


Provision for loan losses

112



41



447



537



(209)



1,137



(111)


Noninterest income

1,094



1,045



1,349



1,370



1,614



4,858



6,277


Noninterest expense