EX-99.1 2 pressrelease.htm PRESS RELEASE pressrelease.htm
 



 
 
 

News Release

For more information contact:
Dennis J. Zember Jr.
Executive Vice President & CFO
(229) 890-1111

AMERIS BANCORP REPORTS NET INCOME
OF $3.1 MILLION FOR SECOND QUARTER OF 2008

July 15, 2008


AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, reported net income of $3.1 million, or $0.23 per share, for the quarter ended June 30, 2008, compared to net income for the same quarter in 2007 of $5.4 million, or $0.39 per share.  Net income for the year-to-date period totaled $6.1 million, or $0.45 per share, compared to $10.4 million, or $0.76 per share for the same period in 2007.  Continued weakness in general economic conditions in several of the Company’s markets led to higher levels of loan provisions and negatively impacted the results for both the quarter and year-to-date period.  Commenting on the quarter’s results, Edwin W. Hortman, Jr. said, “Given the current operating environment, I am encouraged by our Company’s performance.  During the most recent quarter, we dealt quickly and aggressively with credit quality issues and recorded provisions at levels that should not persist.  We continue to experience dilution from the investment in our De Novo strategy and expect profitability to improve significantly as we move forward.  Lastly, despite four quarters in this difficult environment, Ameris Bank has protected its capital base and remains well capitalized with approximately $30 million of excess capital.”
 
Provision for Loan Losses and Credit Quality
The Company’s provision for loan losses during the second quarter amounted to $3.7 million, an increase of $2.8 million over the $936,000 recorded in the second quarter of 2007.  Similarly, provision for loan losses for the year-to-date period increased $5.5 million to $6.9 million for the first six months of 2008 compared to 2007.  The high levels of provision for loan losses reflect the Company’s efforts to quickly address problem credits and are the result of very weak real estate conditions in a few of the Company’s markets.  As in previous quarters, the majority of the deterioration in credit quality is concentrated in a small number of larger credits.  The Company continues to benefit from a loan portfolio that is well diversified over four states and various loan categories.
 
Non-performing assets increased slightly during the current quarter to 2.09% of total loans, compared to 2.00% for the first quarter of 2008, and 1.57% at December 31, 2007.  Net charge-offs on loans during the second quarter of 2008 were similar to levels experienced during the first quarter of 2008 at 0.75% of total loans.  The Company’s reserve for loan losses at June 30, 2008 was flat compared to December 31, 2007, at 1.71% of total loans.
 
 
 

 
Trends in Net Interest Margin
In spite of drastically lower short-term rates and intense competition for core deposits, the Company’s net interest margin declined only slightly during the second quarter of 2008 to 3.96%, compared to 4.03% in the same quarter in 2007.  For the six-month period ending June 30, 2008, the Company’s net interest margin was 3.94%, compared to 4.08% in the same period in 2007.
 
Loan yields during the quarter decreased to 6.97%, compared to 8.46% in the same quarter in 2007.  In the most recent quarter, loan yields decreased from the 7.56% reported in the first quarter of 2008.  This decline in the most recent quarter was partially attributed to accelerated renegotiation of interest rates in the Company’s fixed rate loan portfolio as customers have opportunities to significantly reduce expenses or accelerate repayment of principal.
 
The Company’s cost of funds during the current quarter was 2.74%, compared to 3.84% in the same quarter in 2007, and 3.30% in the first quarter of 2008.  During the quarter, deposit costs declined to 2.80% from 3.68% in the same quarter in 2007 and from 3.25% in the first quarter of 2008.  The decline against the linked quarter resulted from continued repricing of all deposit accounts but the majority of the savings resulted from material savings on time deposit maturities.  Non-deposit borrowing costs also declined in the second quarter of 2008 to 2.10% from 5.81% in the second quarter of 2007 due to the Company’s restructure of these borrowings and the use of interest rate floors on several of the advances.  Efforts continue to reduce interest expense and are focused primarily on time deposit maturities and improving the Company’s overall funding mix
 
Operating Income and Operating Expense Trends
For the year-to-date period ending June 30, 2008, net interest income increased 1.6% to $37.5 million, when compared to net interest income for the year-to-date period ending June 30, 2007.  Non-interest income increased 17.4% to $5.3 million during the second quarter of 2008, when compared to the same quarter in 2007.  Continued growth in service charges and mortgage fees led to the increase in non-interest income.  Service charges on deposit accounts increased 19.3% to $3.7 million in the current quarter, when compared to the second quarter of 2007.  Income from mortgage loan activities also increased primarily as a result of hiring and training efforts during the last half of 2007.  Mortgage income rose to $855,000, an increase of 6.9% over the second quarter of 2007.  The Company’s mortgage lending activities do not subject the Company to appreciably higher levels of risk, as all loans are closed with guaranteed takeouts and are underwritten by the purchaser.
 
Operating expense increased during the quarter by 16.6% to $16.0 million, when compared to the same quarter in 2007.  Year to date, operating expenses increased to $31.6 million, an increase of 11.9% when compared to the same period in 2007.  As stated in past quarters, increases in salaries and benefits as well as in occupancy and equipment are largely the result of the Company’s expansion efforts.  While meaningful accretion to profitability levels and earnings per share are not expected for the next several quarters, the Company does not foresee additional dilution to current profitability and earnings levels.
 
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 48 locations in Georgia, Alabama, northern Florida and South Carolina.

 
 

 

********************************************************************************************Ameris Bancorp Common Stock is quoted on the NASDAQ Global Select Market under the symbol “ABCB”. The preceding release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “estimate”, “expect”, “intend”, “anticipate” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

 
-2-

 
 

AMERIS BANCORP
FINANCIAL HIGHLIGHTS

(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
                                           
                                           
   
Three Months Ended
   
Six Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept
   
June
   
June
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
   
2008
   
2007
 
                                           
                                           
EARNINGS
                                         
Net Income
  $ 3,149     $ 2,966     $ 1,196     $ 3,561     $ 5,372     $ 6,115     $ 10,396  
                                                         
PER COMMON SHARE DATA
                                                       
Earnings per share:
                                                       
Basic
    0.23       0.22       0.09       0.26       0.40       0.45       0.77  
Diluted
    0.23       0.22       0.09       0.26       0.39       0.45       0.76  
Cash Dividends per share
    0.14       0.14       0.14       0.14       0.14       0.28       0.28  
Book value per share (period end)
    14.20       14.48       14.12       13.93       13.60       14.20       13.60  
Tangible book value per share (period end)
    9.84       10.11       9.72       9.51       9.16       9.84       9.16  
Weighted average number of shares:
                                                       
Basic
    13,564,337       13,550,744       13,485,765       13,501,663       13,485,683       13,557,704       13,464,766  
Diluted
    13,563,032       13,559,761       13,573,626       13,620,069       13,663,072       13,561,397       13,665,050  
Period-end number of shares
    13,564,032       13,556,770       13,539,985       13,539,195       13,541,476       13,564,032       13,541,476  
Market data:
                                                       
High closing price
    16.26       16.41       18.67       23.05       25.58       16.26       28.15  
Low closing price
    8.70       12.49       13.73       17.72       21.76       8.70       21.76  
Period end closing price
    8.70       16.06       16.85       18.08       22.47       8.70       22.47  
Average daily volume
    62,739       61,780       51,604       50,547       38,941       62,271       40,017  
                                                         
PERFORMANCE RATIOS
                                                       
Return on average assets
    0.59 %     0.56 %     0.23 %     0.68 %     1.06 %     0.58 %     1.04 %
Return on average equity
    6.58 %     6.15 %     2.48 %     7.54 %     11.64 %     6.42 %     11.43 %
Earning asset yield (TE)
    6.64 %     7.17 %     7.66 %     7.90 %     7.80 %     6.91 %     7.84 %
Total cost of funds
    2.74 %     3.30 %     3.79 %     3.90 %     3.84 %     3.02 %     3.81 %
Net interest margin (TE)
    3.96 %     3.91 %     3.92 %     4.06 %     4.03 %     3.94 %     4.08 %
Non-interest income excluding securities transactions,
                                                 
as a percent of total revenue (TE)
    13.98 %     12.33 %     10.09 %     10.48 %     11.10 %     13.14 %     11.12 %
Efficiency ratio
    65.50 %     67.12 %     67.21 %     63.97 %     59.83 %     66.29 %     61.49 %
                                                         
CAPITAL ADEQUACY
                                                       
Equity to assets
    8.78 %     9.27 %     9.06 %     8.96 %     8.97 %     8.78 %     8.97 %
Tangible common equity to assets
    6.26 %     6.66 %     6.41 %     6.30 %     6.23 %     6.26 %     6.23 %
                                                         
OTHER PERIOD-END DATA
                                                       
FTE Headcount
    651       634       620       621       604       651       604  
Assets per FTE
  $ 3,369     $ 3,341     $ 3,407     $ 3,390     $ 3,398     $ 3,369     $ 3,398  
Branch locations
    48       45       46       47       46       48       46  
Deposits per branch location
  $ 36,893     $ 39,651     $ 38,201     $ 36,345     $ 36,859     $ 36,893     $ 36,859  

 
-3-

 


(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
 
                                           
   
Three Months Ended
   
Six Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept
   
June
   
June
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
   
2008
   
2007
 
                                           
                                           
INCOME STATEMENT
                                         
                                           
Interest income
                                         
Interest and fees on loans
  $ 28,339     $ 30,134     $ 32,999     $ 33,471     $ 31,565     $ 58,473     $ 62,400  
Interest on taxable securities
    3,645       3,583       3,576       3,628       3,539       7,228       6,966  
Interest on nontaxable securities
    173       172       158       175       176       346       355  
Interest on deposits in other banks
    91       200       259       332       669       291       1,715  
Interest on federal funds sold
    (0 )     -       (20 )     (15 )     (10 )     (0 )     77  
Total interest income
    32,249       34,089       36,972       37,591       35,940       66,338       71,513  
                                                         
Interest expense
                                                       
Interest on deposits
    12,314       14,142       15,620       15,945       15,611       26,456       30,815  
Interest on other borrowings
    879       1,487       2,367       2,493       1,973       2,366       3,759  
Total interest expense
    13,193       15,629       17,987       18,438       17,583       28,822       34,573  
                                                         
Net interest income
    19,056       18,460       18,984       19,153       18,356       37,515       36,940  
                                                         
Provision for loan losses
    3,720       3,200       6,914       2,964       936       6,920       1,444  
                                                         
Net interest income after provision for loan losses
    15,336       15,260       12,071       16,189       17,420       30,595       35,496  
                                                         
Noninterest income
                                                       
Service charges on deposit accounts
    3,664       3,316       3,310       3,199       3,071       6,980       5,945  
Mortgage banking activity
    855       869       827       783       800       1,725       1,483  
Other service charges, commissions and fees
    220       278       942       230       460       498       805  
Gain(loss) on sale of securities
    -       -       (236 )     (69 )     8       -       8  
Other non-interest income
    574       379       (677 )     277       187       953       764  
Total noninterest income
    5,313       4,842       4,167       4,420       4,525       10,156       9,004  
                                                         
Noninterest expense
                                                       
Salaries and employee benefits
    8,660       8,618       7,122       7,430       7,485       17,278       15,292  
Equipment and occupancy expense
    2,103       1,992       2,118       1,850       1,811       4,095       3,571  
Amortization of intangible assets
    293       293       324       324       324       585       648  
Data Processing Fees
    638       604       598       607       581       1,241       1,374  
Business Restructuring
    -       -       -       -       -       -       -  
Other operating expenses
    4,268       4,133       5,398       4,868       3,489       8,401       7,367  
Total noninterest expense
    15,961       15,640       15,561       15,079       13,690       31,601       28,253  
                                                         
Operating Profit
    4,688       4,462       676       5,530       8,255       9,151       16,247  
                                                         
Provision for income taxes
    1,538       1,496       (520 )     1,968       2,884       3,034       5,852  
                                                         
Net Income
  $ 3,149     $ 2,966     $ 1,196     $ 3,561     $ 5,372     $ 6,115     $ 10,396  
                                                         
Diluted earnings per share
    0.23       0.22       0.09       0.26       0.39       0.45       0.76  


 
-4-

 

(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
 
                               
                               
   
Three Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept.
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
 
                               
PERIOD-END BALANCE SHEET
                             
                               
Assets
                             
Cash and due from banks
  $ 47,720     $ 63,401     $ 59,804     $ 58,634     $ 50,679  
Federal funds sold and interest bearing balances
    38,125       4,389       12,022       22,910       16,342  
Securities available for sale, at fair value
    293,601       297,589       291,170       301,978       300,642  
Restricted equity securities, at cost
    9,651       6,996       7,559       8,729       8,234  
                                         
Loans, net of unearned income
    1,678,147       1,622,437       1,614,048       1,593,014       1,556,862  
Less allowance for loan losses
    28,660       28,094       27,640       26,434       25,032  
Loans, net
    1,649,487       1,594,343       1,586,408       1,566,581       1,531,831  
                                         
Premises and equipment, net
    63,291       60,053       59,133       54,639       52,385  
Intangible assets, net
    4,216       4,509       4,802       5,126       5,450  
Goodwill
    54,813       54,675       54,813       54,675       54,629  
Other assets
    32,116       32,288       36,353       31,923       31,924  
Total Assets
  $ 2,193,020     $ 2,118,243     $ 2,112,064     $ 2,105,194     $ 2,052,115  
                                         
Liabilities
                                       
Deposits:
                                       
Noninterest-bearing
  $ 200,936     $ 199,692     $ 197,345     $ 185,803     $ 198,428  
Interest-bearing
    1,569,925       1,584,599       1,559,920       1,522,405       1,497,109  
Total deposits
    1,770,861       1,784,291       1,757,265       1,708,208       1,695,536  
Federal funds purchased & securities sold under
                                       
agreements to repurchase
    39,794       4,987       14,705       32,359       6,966  
Other borrowings
    133,000       74,500       90,500       116,500       105,500  
Other liabilities
    14,541       15,888       16,076       17,262       17,745  
Subordinated deferrable interest debentures
    42,269       42,269       42,269       42,269       42,269  
Total liabilities
    2,000,465       1,921,935       1,920,815       1,916,598       1,868,016  
                                         
                                         
Stockholders' equity
                                       
  Common stock
    14,895       14,887       14,870       14,869       14,868  
  Capital surplus
    83,308       82,920       82,732       82,308       82,019  
  Retained earnings
    105,430       104,182       103,113       103,803       102,124  
  Accumulated other comprehensive loss
    (291 )     5,093       1,303       (1,616 )     (4,231 )
  Less treasury stock
    (10,787 )     (10,773 )     (10,769 )     (10,769 )     (10,681 )
Total stockholders' equity
    192,555       196,308       191,249       188,596       184,099  
Total liabilities and stockholders' equity
  $ 2,193,020     $ 2,118,243     $ 2,112,064     $ 2,105,194     $ 2,052,115  
                                         
                                         
Other Data
                                       
Earning Assets
    2,009,873       1,924,415       1,917,240       1,917,902       1,873,846  
Intangible Assets
    59,029       59,184       59,615       59,801       60,079  
Interest Bearing Liabilities
    1,784,988       1,706,355       1,707,394       1,713,533       1,651,844  
Average Assets
    2,141,940       2,115,561       2,102,579       2,069,715       2,030,018  
Average Stockholders' Equity
    192,605       193,971       191,124       187,290       185,177  

 
-5-

 



(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
 
                                           
                                           
   
Three Months Ended
   
Six Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept
   
June
   
June
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
   
2008
   
2007
 
                                           
ASSET QUALITY INFORMATION
                                         
                                           
Allowance for loan losses
                                         
Balance at beginning of period
  $ 28,094     $ 27,640     $ 26,434     $ 25,032     $ 25,113     $ 27,640     $ 24,863  
Acquired Reserves
    -       -       -       -       -       -       -  
Provision for loan loss
    3,720       3,200       6,914       2,964       936       6,920       1,444  
                                                         
Charge-offs
    3,800       2,945       6,465       1,806       1,326       6,745       2,114  
Recoveries
    646       199       757       247       308       845       839  
Net charge-offs (recoveries)
    3,154       2,746       5,708       1,559       1,018       5,900       1,275  
                                                         
Ending balance
  $ 28,660     $ 28,094     $ 27,640     $ 26,434     $ 25,032     $ 28,660     $ 25,032  
                                                         
As a percentage of loans
    1.71 %     1.73 %     1.71 %     1.66 %     1.61 %     1.71 %     1.61 %
As a percentage of nonperforming loans
    89.27 %     104.78 %     149.66 %     135.81 %     154.51 %     89.27 %     154.51 %
As a percentage of nonperforming assets
    81.56 %     86.34 %     108.56 %     120.37 %     136.90 %     81.56 %     136.90 %
                                                         
                                                         
Net Charge-off information
                                                       
Charge-offs
                                                       
Commercial, Financial & Agricultural
  $ 283     $ 390     $ 421     $ 352     $ 231     $ 673     $ 404  
Real Estate - Residential
    902       672       1,262       433       286       1,574       574  
Real Estate - Commerical & Farmland
    49       299       621       119       323       348       504  
Real Estate - Construction & Development
    2,319       1,305       3,899       709       405       3,624       405  
Consumer Installment
    248       279       262       193       81       527       228  
Other
    -       -       -       -       -       -       -  
Total charge-offs
    3,800       2,945       6,465       1,806       1,326       6,745       2,114  
                                                         
Recoveries
                                                       
Commercial, Financial & Agricultural
  $ 102     $ 18     $ 95     $ 42     $ 101     $ 120     $ 453  
Real Estate - Residential
    90       25       14       49       16       115       67  
Real Estate - Commerical & Farmland
    68       31       159       79       94       99       101  
Real Estate - Construction & Development
    322       34       401       13       -       356       1  
Consumer Installment
    64       90       88       64       97       154       217  
Other
    -       -       -       -       -       -       -  
Total recoveries
    646       199       757       247       308       845       839  
                                                         
Net charge-offs (recoveries)
  $ 3,154     $ 2,746     $ 5,708     $ 1,559     $ 1,018     $ 5,900     $ 1,275  
                                                         
                                                         
                                                         
Non-accrual loans
    32,106       26,812       18,468       19,464       16,201       32,106       16,201  
Foreclosed assets
    3,032       5,727       6,993       2,497       2,084       3,032       2,084  
Total non-performing assets
    35,138       32,539       25,461       21,961       18,285       35,138       18,285  
Non-performing assets as a percent of loans
                                                       
and foreclosed assets
    2.09 %     2.00 %     1.57 %     1.38 %     1.17 %     2.09 %     1.17 %
Net charge offs as a percent of loans (Annualized)
    0.75 %     0.68 %     1.41 %     0.39 %     0.26 %     0.70 %     0.16 %

 
-6-

 
 

(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
 
                                           
                                           
   
Three Months Ended
   
Six Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept
   
June
   
June
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
   
2008
   
2007
 
                                           
                                           
AVERAGE BALANCES
                                         
                                           
Short term assets
  $ 18,236     $ 23,480     $ 21,827     $ 26,212     $ 49,200       20,858     $ 67,249  
Investment securities
    307,304       291,708       297,380       299,925       301,848       299,506       297,414  
Loans
    1,650,781       1,617,991       1,605,006       1,569,906       1,511,333       1,634,386       1,485,029  
  Total Earning Assets
    1,976,321       1,933,179       1,924,212       1,896,044       1,862,381       1,954,750       1,849,691  
                                                         
Noninterest bearing deposits
    197,662       191,860       187,908       190,316       192,298       194,761       196,039  
Interest bearing deposits
    607,777       612,212       596,053       575,415       572,400       609,995       563,465  
Savings
    54,973       54,221       55,305       58,778       61,733       54,597       62,333  
CDs
    903,656       890,668       886,116       870,731       866,589       897,162       870,796  
  Deposits
    1,764,067       1,748,961       1,725,383       1,695,239       1,693,020       1,756,514       1,692,633  
                                                         
FHLB advances
    111,922       97,162       105,570       110,056       83,109       104,542       77,328  
Subordinated debentures
    42,269       42,269       42,269       42,269       42,269       42,269       42,269  
Other borrowings
    13,815       17,490       22,298       18,878       10,688       15,653       12,261  
  Total non-deposit funding
    168,006       156,921       170,137       171,203       136,066       162,464       131,858  
                                                         
  Total funding
  $ 1,932,073     $ 1,905,882     $ 1,895,520     $ 1,866,442     $ 1,829,086     $ 1,918,978     $ 1,824,491  

 
-7-

 
 

(unaudited)
 
(dollars in thousands except per share data and FTE headcount)
 
                                           
   
Three Months Ended
   
Six Months Ended
 
   
June
   
Mar.
   
Dec.
   
Sept
   
June
   
June
   
June
 
   
2008
   
2008
   
2007
   
2007
   
2007
   
2008
   
2007
 
                                           
INTEREST INCOME/EXPENSE
                                         
                                           
Short term assets
  $ 91     $ 193     $ 239     $ 317     $ 659     $ 284     $ 1,792  
Investment securities (TE)
    3,912       3,842       3,818       3,897       3,705       7,754       7,407  
Loans (TE)
    28,704       30,409       33,078       33,552       31,861       59,113       62,746  
  Total Earning Assets
    32,707       34,444       37,135       37,767       36,225       67,151       71,945  
                                                         
Noninterest bearing deposits
    -       -       -       -       -