• | the accompanying notes to the unaudited pro forma combined condensed financial information; |
• | Ameris’s audited consolidated financial statements and accompanying notes, included in Ameris’s Annual Report on Form 10-K for the year ended December 31, 2018; |
• | Fidelity’s audited consolidated financial statements and accompanying notes as of and for the years ended December 31, 2018 and 2017, attached as Exhibit 99.2 to this Current Report on Form 8-K/A; |
• | Ameris’s unaudited consolidated financial statements and accompanying notes as of and for the three and six months ended June 30, 2019, included in Ameris’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019; and |
• | Fidelity’s unaudited consolidated financial statements and accompanying notes as of and for the three and six months ended June 30, 2019, attached as Exhibit 99.3 to this Current Report on Form 8-K/A. |
Unaudited Pro Forma Combined Condensed Balance Sheet | ||||||||||||||||
As of June 30, 2019 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Ameris As Reported | Fidelity As Reported | Fidelity Pro Forma Adjustments | Ameris Pro Forma Total Consolidated | |||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 151,186 | $ | 26,264 | $ | (19 | ) | A | $ | 177,431 | ||||||
Federal funds sold and interest-bearing deposits in banks | 186,969 | 217,936 | — | 404,905 | ||||||||||||
Time deposits in other banks | 748 | — | — | 748 | ||||||||||||
Investment securities available for sale, at fair value | 1,273,244 | 279,746 | 19,703 | B | 1,572,693 | |||||||||||
Investment securities held to maturity, at amortized cost | — | 19,595 | (19,595 | ) | C | — | ||||||||||
Other investments | 32,481 | 7,449 | — | 39,930 | ||||||||||||
Loans held for sale | 261,073 | 328,657 | — | 589,730 | ||||||||||||
— | ||||||||||||||||
Loans held for investment | 9,049,870 | 3,587,412 | (67,396 | ) | D | 12,569,886 | ||||||||||
Less allowance for loan losses | (31,793 | ) | (31,245 | ) | 31,245 | E | (31,793 | ) | ||||||||
Loans held for investment, net | 9,018,077 | 3,556,167 | (36,151 | ) | 12,538,093 | |||||||||||
Other real estate owned, net | 14,675 | 7,605 | (1,191 | ) | F | 21,089 | ||||||||||
Premises and equipment, net | 141,378 | 93,662 | 30,900 | G | 265,940 | |||||||||||
Goodwill | 501,140 | 5,164 | 399,217 | H | 905,521 | |||||||||||
Other intangible assets, net | 52,437 | 5,506 | 45,104 | I | 103,047 | |||||||||||
Cash value of bank owned life insurance | 105,064 | 72,328 | — | 177,392 | ||||||||||||
Deferred income taxes, net | 30,812 | 104 | (23,000 | ) | J | 7,916 | ||||||||||
Other assets | 120,052 | 157,863 | — | 277,915 | ||||||||||||
Total assets | $ | 11,889,336 | $ | 4,778,046 | $ | 414,968 | $ | 17,082,350 | ||||||||
Liabilities | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 2,771,443 | $ | 1,301,829 | $ | — | $ | 4,073,272 | ||||||||
Interest-bearing | 6,810,927 | 2,740,552 | (699 | ) | K | 9,550,780 | ||||||||||
Total deposits | 9,582,370 | 4,042,381 | (699 | ) | 13,624,052 | |||||||||||
Securities sold under agreements to repurchase | 3,307 | 22,345 | — | 25,652 | ||||||||||||
Other borrowings | 564,636 | 149,367 | 1,333 | L | 715,336 | |||||||||||
Subordinated deferrable interest debentures | 89,871 | 46,393 | (9,675 | ) | M | 126,589 | ||||||||||
FDIC loss-share payable, net | 20,596 | — | — | 20,596 | ||||||||||||
Deferred tax liability, net | — | 12,222 | (12,222 | ) | N | — | ||||||||||
Other liabilities | 91,435 | 65,027 | 156,462 | |||||||||||||
Total liabilities | 10,352,215 | 4,337,735 | (21,263 | ) | 14,668,687 | |||||||||||
Shareholders’ Equity | ||||||||||||||||
Preferred stock | — | — | — | — | ||||||||||||
Common stock | 49,099 | 209,852 | (187,670 | ) | O | 71,281 | ||||||||||
Capital surplus | 1,053,500 | 35,089 | 819,271 | P | 1,907,860 | |||||||||||
Retained earnings | 446,182 | 188,144 | (188,144 | ) | Q | 446,182 | ||||||||||
Accumulated other comprehensive income, net of tax | 16,462 | 7,226 | (7,226 | ) | R | 16,462 | ||||||||||
Treasury stock, at cost | (28,122 | ) | — | — | (28,122 | ) | ||||||||||
Total shareholders’ equity | 1,537,121 | 440,311 | 436,231 | 2,413,663 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 11,889,336 | $ | 4,778,046 | $ | 414,968 | $ | 17,082,350 | ||||||||
Unaudited Pro Forma Combined Condensed Income Statement | ||||||||||||||||
For the six months ended June 30, 2019 | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Ameris as Reported | Fidelity as Reported | Fidelity Pro Forma Adjustments | Ameris Pro Forma Total Consolidated | |||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans | $ | 229,411 | $ | 88,495 | $ | 2,886 | S | $ | 320,792 | |||||||
Interest on taxable securities | 18,426 | 4,769 | — | 23,195 | ||||||||||||
Interest on nontaxable securities | 258 | 161 | — | 419 | ||||||||||||
Interest on deposits in other banks | 5,426 | 1,477 | — | 6,903 | ||||||||||||
Interest on federal funds sold | 436 | 69 | — | 505 | ||||||||||||
Total interest income | 253,957 | 94,971 | 2,886 | 351,814 | ||||||||||||
Interest expense | ||||||||||||||||
Interest on deposits | 45,138 | 13,168 | (116 | ) | T | 58,190 | ||||||||||
Interest on other borrowings | 7,773 | 5,008 | 225 | U | 13,006 | |||||||||||
Total interest expense | 52,911 | 18,176 | 109 | 71,196 | ||||||||||||
Net interest income | 201,046 | 76,795 | 2,777 | 280,618 | ||||||||||||
Provision for loan losses | 8,076 | 3,078 | — | 11,154 | ||||||||||||
Net interest income after provision for loan losses | 192,970 | 73,717 | 2,777 | 269,464 | ||||||||||||
Noninterest income | ||||||||||||||||
Service charges on deposit accounts | 23,814 | 3,610 | — | 27,424 | ||||||||||||
Mortgage banking activity | 33,200 | 38,470 | — | 71,670 | ||||||||||||
Other service charges, commissions and fees | 1,561 | 4,853 | — | 6,414 | ||||||||||||
Net gain (loss) on securities | 135 | — | — | 135 | ||||||||||||
Gain on sale of SBA loans | 2,476 | 1,996 | — | 4,472 | ||||||||||||
Other noninterest income | 4,821 | (391 | ) | — | 4,430 | |||||||||||
Total noninterest income | 66,007 | 48,538 | — | 114,545 | ||||||||||||
Noninterest expense | ||||||||||||||||
Salaries and employee benefits | 76,811 | 71,067 | — | 147,878 | ||||||||||||
Occupancy and equipment | 16,038 | 6,824 | 432 | V | 23,294 | |||||||||||
Data processing and communications expenses | 16,779 | 10,552 | — | 27,331 | ||||||||||||
Legal and other professional fees | 4,008 | 2,066 | — | 6,074 | ||||||||||||
Credit resolution-related expenses | 1,890 | 837 | — | 2,727 | ||||||||||||
Advertising and marketing | 3,728 | 1,305 | — | 5,033 | ||||||||||||
Amortization of intangible assets | 6,253 | 527 | 2,004 | W | 8,784 | |||||||||||
FDIC insurance | 1,631 | 2,238 | — | 3,869 | ||||||||||||
Merger and conversion charges | 5,532 | 31,661 | — | 37,193 | ||||||||||||
Other noninterest expenses | 24,006 | 15,604 | — | 39,610 | ||||||||||||
Total noninterest expense | 156,676 | 142,681 | 2,436 | 301,793 | ||||||||||||
Income before income tax expense | 102,301 | (20,426 | ) | 341 | 82,216 | |||||||||||
Income tax expense | 23,492 | (5,271 | ) | 72 | X | 18,293 | ||||||||||
Net income | 78,809 | (15,155 | ) | 269 | 63,923 | |||||||||||
Basic earnings per common share | $ | 1.66 | $ | (0.55 | ) | $ | 0.92 | |||||||||
Diluted earnings per common share | $ | 1.66 | $ | (0.55 | ) | $ | 0.92 | |||||||||
Weighted average common shares outstanding (in thousands) | ||||||||||||||||
Basic | 47,354 | 27,584 | 69,536 | |||||||||||||
Diluted | 47,395 | 27,584 | 69,737 | |||||||||||||
Unaudited Pro Forma Combined Condensed Income Statement | |||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||||||
Ameris as Reported | USPF Pro Forma Adjustments | Atlantic As Reported | Atlantic Pro Forma Adjustments | Hamilton as Reported | Hamilton Pro Forma Adjustments | Fidelity as Reported | Fidelity Pro Forma Adjustments | Ameris Pro Forma Total Consolidated | |||||||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 378,209 | $ | — | $ | 8,846 | $ | 445 | BB | $ | 17,657 | $ | 690 | EE | $ | 172,673 | $ | 5,771 | S | $ | 584,291 | ||||||||||||||||||
Interest on taxable securities | 29,006 | — | 265 | — | 1,488 | — | 5,991 | — | 36,750 | ||||||||||||||||||||||||||||||
Interest on nontaxable securities | 900 | — | 29 | — | 40 | — | 326 | — | 1,295 | ||||||||||||||||||||||||||||||
Interest on deposits in other banks | 4,984 | — | 114 | — | 426 | — | 1,945 | — | 7,469 | ||||||||||||||||||||||||||||||
Interest on federal funds sold | 227 | — | — | — | 11 | — | 510 | — | 748 | ||||||||||||||||||||||||||||||
Total interest income | 413,326 | — | 9,254 | 445 | 19,622 | 690 | 181,445 | 5,771 | 630,553 | ||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||
Interest on deposits | 49,054 | — | 1,438 | — | 1,513 | 242 | FF | 20,849 | (182 | ) | T | 72,914 | |||||||||||||||||||||||||||
Interest on other borrowings | 20,880 | — | 688 | — | 102 | 41 | GG | 11,051 | 451 | U | 33,213 | ||||||||||||||||||||||||||||
Total interest expense | 69,934 | — | 2,126 | — | 1,615 | 283 | 31,900 | 269 | 106,127 | ||||||||||||||||||||||||||||||
Net interest income | 343,392 | — | 7,128 | 445 | 18,007 | 407 | 149,545 | 5,502 | 524,426 | ||||||||||||||||||||||||||||||
Provision for loan losses | 16,667 | — | 168 | — | (87 | ) | — | 5,521 | — | 22,269 | |||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 326,725 | — | 6,960 | 445 | 18,094 | 407 | 144,024 | 5,502 | 502,157 | ||||||||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 46,128 | — | 727 | — | 952 | — | 6,427 | — | 54,234 | ||||||||||||||||||||||||||||||
Mortgage banking activity | 51,292 | — | — | — | 164 | — | 103,077 | — | 154,533 | ||||||||||||||||||||||||||||||
Other service charges, commissions and fees | 3,003 | — | 19 | — | 729 | — | 9,522 | — | 13,273 | ||||||||||||||||||||||||||||||
Net gain (loss) on securities | (37 | ) | — | — | — | (3 | ) | — | — | — | (40 | ) | |||||||||||||||||||||||||||
Gain on sale of SBA loans | 2,728 | — | — | — | — | — | 6,728 | — | 9,456 | ||||||||||||||||||||||||||||||
Other noninterest income | 15,298 | — | 490 | — | 39 | — | 13,097 | — | 28,924 | ||||||||||||||||||||||||||||||
Total noninterest income | 118,412 | — | 1,236 | — | 1,881 | — | 138,851 | — | 260,380 | ||||||||||||||||||||||||||||||
Unaudited Pro Forma Combined Condensed Income Statement | |||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||||||
Ameris as Reported | USPF Pro Forma Adjustments | Atlantic As Reported | Atlantic Pro Forma Adjustments | Hamilton as Reported | Hamilton Pro Forma Adjustments | Fidelity as Reported | Fidelity Pro Forma Adjustments | Ameris Pro Forma Total Consolidated | |||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 149,293 | — | 3,600 | — | 6,914 | — | 149,651 | — | 309,458 | ||||||||||||||||||||||||||||||
Occupancy and equipment | 29,131 | — | 585 | — | 1,759 | — | 13,584 | 863 | V | 45,922 | |||||||||||||||||||||||||||||
Data processing and communications expenses | 30,385 | — | 582 | — | 969 | — | 22,390 | — | 54,326 | ||||||||||||||||||||||||||||||
Legal and other professional fees | 6,386 | (274 | ) | Y | 513 | — | 445 | — | 4,233 | — | 11,303 | ||||||||||||||||||||||||||||
Credit resolution-related expenses | 4,016 | — | 9 | — | 367 | — | 1,649 | — | 6,041 | ||||||||||||||||||||||||||||||
Advertising and marketing | 5,571 | — | 16 | — | 20 | — | 2,853 | — | 8,460 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 9,512 | 250 | Z | — | 148 | CC | 282 | 119 | HH | 1,109 | 3,952 | W | 15,372 | ||||||||||||||||||||||||||
FDIC insurance | 3,408 | — | 83 | — | 125 | — | 3,613 | — | 7,229 | ||||||||||||||||||||||||||||||
Merger and conversion charges | 20,499 | — | 233 | — | 1,509 | — | 1,176 | — | 23,417 | ||||||||||||||||||||||||||||||
Other noninterest expenses | 35,446 | — | 729 | — | 1,815 | — | 25,034 | — | 63,024 | ||||||||||||||||||||||||||||||
Total noninterest expense | 293,647 | (24 | ) | 6,350 | 148 | 14,205 | 119 | 225,292 | 4,815 | 544,552 | |||||||||||||||||||||||||||||
Income before income tax expense | 151,490 | 24 | 1,846 | 297 | 5,770 | 288 | 57,583 | 687 | 217,985 | ||||||||||||||||||||||||||||||
Income tax expense | 30,463 | 5 | AA | 430 | 62 | DD | 1,370 | 60 | II | 13,760 | 144 | X | 46,294 | ||||||||||||||||||||||||||
Net income | $ | 121,027 | $ | 19 | $ | 1,416 | $ | 235 | $ | 4,400 | $ | 228 | $ | 43,823 | $ | 543 | $ | 171,691 | |||||||||||||||||||||
Basic earnings per common share | $ | 2.81 | $ | 0.09 | $ | 0.11 | $ | 1.61 | $ | 2.47 | |||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 2.80 | $ | 0.09 | $ | 0.10 | $ | 1.61 | $ | 2.45 | |||||||||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||||
Basic | 43,142 | 15,438 | 40,411 | 27,155 | 69.642 | ||||||||||||||||||||||||||||||||||
Diluted | 43,248 | 15,449 | 42,478 | 27,259 | 70.016 | ||||||||||||||||||||||||||||||||||
Number of shares of Ameris common stock – as exchanged | 1,073 | ||
Fair value of Ameris common stock issued (weighted average of $52.047 per share) | $ | 55,855 | |
Cash paid to former shareholders of USPF | $ | 21,421 | |
Present value of contingent earn-out consideration expected to be paid out | $ | 5,705 | |
Total Acquisition Consideration – USPF | $ | 82,981 | |
Total number of shares of Atlantic common stock outstanding at May 25, 2018 | 15,541 | ||
Less: Unallocated shares of Atlantic common stock held by ESOP and benefit plans | (61 | ) | |
Total number of shares of Atlantic common stock to be converted | 15,480 | ||
Per share exchange ratio | 0.17 | ||
Number of shares of Ameris common stock – as exchanged | 2,632 | ||
Multiplied by Ameris common stock price on May 25, 2018 | $ | 56.15 | |
Fair value of Ameris common stock issued | $ | 147,760 | |
Per share cash exchange price | $ | 1.39 | |
Cash paid at acquisition to Atlantic’s shareholders | $ | 21,527 | |
Total Acquisition Consideration – Atlantic | $ | 169,287 | |
Total number of shares of Hamilton common stock outstanding at June 29, 2018 including restricted share units that automatically vest under a change in control | 40,927 | ||
Per share exchange ratio | 0.16 | ||
Number of shares of Ameris common stock – as exchanged | 6,548 | ||
Multiplied by Ameris common stock price on June 29, 2018 | $ | 53.35 | |
Fair value of Ameris common stock issued | $ | 349,356 | |
Per share cash exchange price | $ | 0.93 | |
Cash paid at acquisition to Hamilton’s shareholders | $ | 38,068 | |
Cash paid at acquisition to holders of Hamilton stock warrants | $ | 9,711 | |
Total Acquisition Consideration - Hamilton | $ | 397,135 | |
Total number of shares of Fidelity common stock outstanding at July 1, 2019, including restricted shares that immediately vest on the merger date | 27,728 | ||
Per share exchange ratio | 0.80 | ||
Number of shares of Ameris common stock - as exchanged | 22,182 | ||
Multiplied by Ameris common stock price on June 28, 2019 | $ | 39.19 | |
Fair value of Ameris common stock issued | $ | 869,294 | |
Total number of Fidelity options outstanding at July 1, 2019 | 721 | ||
Per option exchange ratio | 0.80 | ||
Number of Ameris options - as exchanged | 577 | ||
Weighted average fair value per option | $ | 12.57 | |
Fair value of rolled over stock options | $ | 7,248 | |
Cash payment for fractional shares | $ | 19 | |
Total Acquisition Consideration - Fidelity | $ | 876,561 | |
USPF | Atlantic | Hamilton | Fidelity | ||||||||||||
Cash and due from banks | $ | — | $ | 3,990 | $ | 13,927 | $ | 26,264 | |||||||
Federal funds sold and interest-bearing deposits in banks | — | 22,149 | 102,156 | 217,936 | |||||||||||
Time deposits in other banks | — | — | 11,558 | — | |||||||||||
Investment securities | — | 35,126 | 285,830 | 299,449 | |||||||||||
Other investments | — | 9,576 | 2,094 | 7,449 | |||||||||||
Loans held for sale | — | 358 | — | 328,657 | |||||||||||
Loans | — | 755,704 | 1,293,186 | 3,520,016 | |||||||||||
Other real estate owned, net | — | 1,041 | 847 | 6,414 | |||||||||||
Premises and equipment, net | — | 10,735 | 28,971 | 124,562 | |||||||||||
Goodwill | 64,498 | 90,342 | 220,768 | 404,381 | |||||||||||
Other intangible assets, net | 23,607 | 7,488 | 23,610 | 50,610 | |||||||||||
Cash value of bank owned life insurance | — | 18,182 | 4,454 | 72,328 | |||||||||||
Deferred income taxes, net | (5,124 | ) | 7,711 | 10,079 | (22,896 | ) | |||||||||
Other assets | — | 2,959 | 10,955 | 157,863 | |||||||||||
Deposits | — | (585,167 | ) | (1,585,250 | ) | (4,041,682 | ) | ||||||||
Securities sold under agreements to repurchase | — | — | — | (22,345 | ) | ||||||||||
Other borrowings | — | (204,475 | ) | (10,907 | ) | (150,700 | ) | ||||||||
Subordinated deferrable interest debentures | — | — | (2,292 | ) | (36,718 | ) | |||||||||
Other liabilities | — | (6,432 | ) | (12,851 | ) | (65,027 | ) | ||||||||
Total Acquisition Consideration | $ | 82,981 | $ | 169,287 | $ | 397,135 | $ | 876,561 | |||||||
As of June 30, 2019 | ||||
A | Adjustment to cash and due from banks to reflect cash paid at closing to Fidelity's shareholders | $ | (19 | ) |
B | Adjustment to investment securities available for sale | |||
To reclass at amortized cost investment securities designated as held to maturity by Fidelity to investment securities available for sale | $ | 19,595 | ||
To reflect fair value at acquisition date for investment securities designated as held to maturity by Fidelity but will be designated as available for sale by Ameris | $ | 108 | ||
Total adjustment to investment securities available for sale | $ | 19,703 | ||
C | Adjustment to investment securities held to maturity to reclass at amortized cost investment securities designated as held to maturity by Fidelity to investment securities available for sale | $ | (19,595 | ) |
D | Adjustment to loans | |||
To reflect the reversal of Fidelity’s June 30, 2019 unamortized accounting adjustments for its prior acquisitions, loan premiums, loan discounts, deferred loan origination costs, and deferred loan origination fees | $ | (16,642 | ) | |
To reflect the estimated fair value at acquisition date of loans | $ | (50,754 | ) | |
Total adjustment to loans | $ | (67,396 | ) | |
E | Adjustment to allowance for loan losses to reflect the reversal of Fidelity’s June 30, 2019 allowance for loan losses | $ | 31,245 | |
F | Adjustment to other real estate owned to reflect the estimated fair value at acquisition date based on Ameris’s more aggressive liquidation strategy | $ | (1,191 | ) |
G | Adjustment to premises and equipment to reflect the estimated fair value at acquisition date | $ | 30,900 | |
H | Adjustment to goodwill | |||
To reflect reversal of Fidelity's June 30, 2019 goodwill recorded from its prior acquisitions | $ | (5,164 | ) | |
Adjustment to goodwill to reflect the estimated goodwill generated as a result of consideration paid being greater than the net assets acquired | $ | 404,381 | ||
Total adjustment to goodwill | $ | 399,217 | ||
I | Adjustment to intangible assets | |||
To reflect reversal of Fidelity’s June 30, 2019 unamortized intangible assets | $ | (5,506 | ) | |
To reflect the recording of the estimated core deposit intangible | $ | 50,610 | ||
Total adjustment to intangible assets | $ | 45,104 | ||
J | Adjustment to deferred tax asset, net | |||
To reclass Fidelity's June 30, 2019 net deferred tax liability position against Ameris's net deferred tax asset position | $ | (12,222 | ) | |
To reflect the deferred tax impact resulting from the net fair value adjustments based on assumed effective tax rate of 21% | $ | (10,778 | ) | |
Total adjustment to deferred tax asset, net | $ | (23,000 | ) | |
K | Adjustment to interest-bearing deposits | |||
To reflect reversal of Fidelity’s June 30, 2019 unamortized fair value adjustment on certificates of deposit from its prior acquisitions | $ | (176 | ) | |
To reflect the estimated fair value at acquisition date of certificate of deposits | $ | (523 | ) | |
Total adjustment to interest-bearing deposits | $ | (699 | ) | |
L | Adjustment to other borrowings to reflect the estimated fair value at acquisition | $ | 1,333 | |
M | Adjustment to subordinated deferrable interest debentures to reflect the estimated fair value at acquisition | $ | (9,675 | ) |
As of June 30, 2019 | ||||
N | Adjustment to deferred tax liability, net to reflect reclass of Fidelity's June 30, 2019 net deferred tax liability position against Ameris's net deferred tax asset position | $ | (12,222 | ) |
O | Adjustment to common stock | |||
To reflect the reversal of Fidelity’s June 30, 2019 common stock | $ | (209,852 | ) | |
To reflect the value of Ameris common stock issued to Fidelity’s shareholders | $ | 22,182 | ||
Total adjustment to common stock | $ | (187,670 | ) | |
P | Adjustment to capital surplus | |||
To reflect the reversal of Fidelity's June 30, 2019 capital surplus | $ | (35,089 | ) | |
To reflect the value of Ameris common stock issued to Fidelity’s shareholders | $ | 847,112 | ||
To reflect the value of Ameris options issued to Fidelity optionholders | $ | 7,248 | ||
Total adjustment to capital surplus | $ | 819,271 | ||
Q | Adjustment to retained earnings to reflect the reversal of Fidelity's June 30, 2019 retained earnings | $ | (188,144 | ) |
R | Adjustment to accumulated other comprehensive income to reflect the reversal of Fidelity's June 30, 2019 accumulated other comprehensive income | $ | (7,226 | ) |
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||
S | Adjustment to interest income and fees on loans to reflect estimated additional accretion on loan portfolio | $ | 2,886 | $ | 5,771 | |||
T | Adjustment to interest expense on deposits | |||||||
To reflect the reversal of Fidelity’s amortization of fair value adjustment on certificates of deposits resulting from its prior acquisitions | $ | 59 | $ | 167 | ||||
To reflect the estimated amortization of the fair value adjustment on certificates of deposit | $ | (175 | ) | $ | (349 | ) | ||
Total adjustment to interest expense on deposits | $ | (116 | ) | $ | (182 | ) | ||
U | Adjustment to interest expense on other borrowings and subordinated deferrable interest debentures | $ | 225 | $ | 451 | |||
V | Adjustment to occupancy and equipment expense to reflect estimated additional depreciation resulting from fair value adjustments on premises and equipment | $ | 432 | $ | 863 | |||
W | Adjustment to amortization of intangible assets | |||||||
To reflect the reversal of Fidelity’s amortization expense on its existing core deposit intangible resulting from its prior acquisitions | $ | (527 | ) | $ | (1,109 | ) | ||
To reflect the estimated amortization expense on the core deposit intangible | $ | 2,531 | $ | 5,061 | ||||
Total adjustment to amortization of intangible assets | $ | 2,004 | $ | 3,952 | ||||
X | Adjustment to income tax expense to reflect the tax effect of the Fidelity income statement pro forma adjustments using an assumed effective tax rate of 21% | $ | 72 | $ | 144 | |||
Year Ended December 31, 2018 | ||||
Y | Adjustment to amortization of intangible assets to reflect estimated amortization expense on the insurance agent relationships, trade name, and non-compete intangible assets | $ | 250 | |
Z | Adjustment to legal and other professional fees to reflect elimination of fees previously paid under the USPF Management and License Agreement that are no longer incurred after acquisition of the final 70% investment in USPF | $ | (274 | ) |
AA | Adjustment to income tax expense to reflect the tax effect of the USPF income statement pro forma adjustments using an assumed effective tax rate of 21% | $ | 5 | |
Year Ended December 31, 2018 | ||||
BB | Adjustment to interest income and fees on loans to reflect estimated additional accretion on loan portfolio | $ | 445 | |
CC | Adjustment to amortization of intangible assets to reflect the estimated amortization of the core deposit intangible | $ | 148 | |
DD | Adjustment to income tax expense to reflect the tax effect of the Atlantic income statement pro forma adjustments using an assumed effective tax rate of 21% | $ | 62 | |
Year Ended December 31, 2018 | ||||
EE | Adjustment to interest income and fees on loans to reflect estimated additional accretion on loan portfolio | $ | 690 | |
FF | Adjustment to interest expense on deposits | |||
To reflect the reversal of Hamilton’s amortization of fair value adjustment on certificates of deposits resulting from its prior acquisitions | $ | 6 | ||
To reflect the estimated amortization of the fair value adjustment on certificates of deposit | $ | 236 | ||
Total adjustment to interest expense on deposits | $ | 242 | ||
GG | Adjustment to interest expense on other borrowings and subordinated deferrable interest debentures | |||
To reflect the reversal of Hamilton’s amortization of fair value adjustment in other borrowings from its prior acquisitions | $ | 32 | ||
To reflect the estimated amortization of the fair value adjustment on subordinated deferrable interest debentures | $ | 9 | ||
Total adjustment to interest expense on other borrowings and subordinated deferrable interest debentures | $ | 41 | ||
HH | Adjustment to amortization of intangible assets | |||
To reflect the reversal of Hamilton’s amortization expense on its existing core deposit intangible resulting from its prior acquisitions | $ | (281 | ) | |
To reflect the estimated amortization expense on the core deposit intangible | $ | 400 | ||
Total adjustment to amortization of intangible assets | $ | 119 | ||
II | Adjustment to income tax expense to reflect the tax effect of the Hamilton income statement pro forma adjustments using an assumed effective tax rate of 21% | $ | 60 | |
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | ||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||
Pro forma net income available to common shareholders | $ | 63,923 | $ | 63,923 | $ | 171,691 | $ | 171,691 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Ameris | 47,354 | 47,395 | 43,142 | 43,248 | |||||||||||
Common shares issued to USPF’s shareholders | — | — | 69 | 69 | |||||||||||
Common shares issued to Atlantic’s shareholders | — | — | 1,038 | 1,038 | |||||||||||
Common shares issued to Hamilton’s shareholders | — | — | 3,211 | 3,211 | |||||||||||
Common shares issued to Fidelity’s shareholders | 22,182 | 22,342 | 22,182 | 22,450 | |||||||||||
Pro forma | 69,536 | 69,737 | 69,642 | 70,016 | |||||||||||
Pro forma earnings per common share | $ | 0.92 | $ | 0.92 | $ | 2.47 | $ | 2.45 | |||||||