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BUSINESS COMBINATIONS (Tables)
 6 Months Ended
Jun. 30, 2016
Summary of Contractually Required Principal and Interest Cash Payment of the Loans As of Acquisition Date for Purchased Credit Impaired Loans
The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.
 
(Dollars in Thousands)
 
 
 
 
Contractually required principal and interest
 
$
42,314
 
Non-accretable difference
 
 
(7,877)
 
Cash flows expected to be collected
 
 
34,437
 
Accretable yield
 
 
(6,182)
 
Total purchased credit-impaired loans acquired
 
$
28,255
 
Rollforward of Acquired Non-Covered Loans
A rollforward of purchased non-covered loans for the six months ended June 30, 2016, the year ended December 31, 2015 and the six months ended June 30, 2015 is shown below:
 
(Dollars in Thousands)
 
June 30,
2016
 
December 31,
2015
 
June 30,
2015
 
Balance, January 1
 
$
771,554
 
$
674,239
 
$
674,239
 
Charge-offs, net of recoveries
 
 
(461)
 
 
(991)
 
 
(470)
 
Additions due to acquisitions
 
 
401,085
 
 
195,818
 
 
195,818
 
Accretion
 
 
6,597
 
 
10,590
 
 
5,388
 
Transfers to purchased non-covered other real estate owned
 
 
(2,663)
 
 
(4,473)
 
 
(2,039)
 
Transfer from covered loans due to loss-share expiration
 
 
-
 
 
50,568
 
 
15,462
 
Payments received
 
 
(103,985)
 
 
(154,666)
 
 
(80,085)
 
Other
 
 
90
 
 
469
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
1,072,217
 
$
771,554
 
$
808,313
 
Schedule of Changes in Accretable Discounts Related Acquired Loans
The following is a summary of changes in the accretable discounts of purchased non-covered loans during the six months ended June 30, 2016, the year ended December 31, 2015 and the six months ended June 30, 2015:
 
(Dollars in Thousands)
 
June 30,
2016
 
December 31,
2015
 
June 30,
2015
 
Balance, January 1
 
$
24,785
 
$
25,716
 
$
25,716
 
Additions due to acquisitions
 
 
9,991
 
 
5,788
 
 
4,686
 
Accretion
 
 
(6,597)
 
 
(10,590)
 
 
(5,388)
 
Transfer from covered loans due to loss-share expiration
 
 
-
 
 
1,665
 
 
-
 
Accretable discounts removed due to charge-offs
 
 
(11)
 
 
(1,768)
 
 
(1,685)
 
Transfers between non-accretable and accretable discounts, net
 
 
1,914
 
 
3,974
 
 
(1,007)
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
30,082
 
$
24,785
 
$
22,322
 
Bank Of America [Member]  
Estimated Fair Value of Assets Acquired and Liabilities Assumed
The following table presents the assets acquired and liabilities assumed as of June 12, 2015 and their fair value estimates.
 
(Dollars in Thousands)
 
As Recorded by
Bank of America
 
Initial Fair Value
Adjustments
 
 
Subsequent
Fair Value
Adjustments
 
 
As Recorded
by Ameris
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
630,220
 
$
-
 
 
$
-
 
 
$
630,220
 
Loans
 
 
4,363
 
 
-
 
 
 
(364)
(d)
 
 
3,999
 
Premises and equipment
 
 
10,348
 
 
1,060
(a)
 
 
(755)
(e)
 
 
10,653
 
Intangible assets
 
 
-
 
 
7,651
(b)
 
 
985
(f)
 
 
8,636
 
Other assets
 
 
126
 
 
-
 
 
 
-
 
 
 
126
 
Total assets
 
$
645,057
 
$
8,711
 
 
$
(134)
 
 
$
653,634
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
 
$
149,854
 
$
-
 
 
$
-
 
 
$
149,854
 
Interest-bearing
 
 
495,110
 
 
(215)
(c)
 
 
-
 
 
 
494,895
 
Total deposits
 
 
644,964
 
 
(215)
 
 
 
-
 
 
 
644,749
 
Other liabilities
 
 
93
 
 
-
 
 
 
-
 
 
 
93
 
Total liabilities
 
 
645,057
 
 
(215)
 
 
 
-
 
 
 
644,842
 
Net identifiable assets acquired over (under) liabilities assumed
 
 
-
 
 
8,926
 
 
 
(134)
 
 
 
8,792
 
Goodwill
 
 
-
 
 
11,076
 
 
 
134
 
 
 
11,210
 
Net assets acquired over (under) liabilities assumed
 
$
-
 
$
20,002
 
 
$
-
 
 
$
20,002
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid as deposit premium
 
$
20,002
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total consideration transferred
 
$
20,002
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Explanation of fair value adjustments
 
(a)
Adjustment reflects the fair value adjustments of the premises and equipment as of the acquisition date.
 
(b)
Adjustment reflects the recording of core deposit intangible on the acquired core deposit accounts.
 
(c)
Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired deposits.
 
(d)
Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio.
 
(e)
Adjustment reflects additional recording of fair value adjustment of the premises and equipment.
  
(f)
Adjustment reflects additional recording of core deposit intangible on the acquired core deposit accounts.
Merchants and Southern Banks of Florida [Member]  
Estimated Fair Value of Assets Acquired and Liabilities Assumed
The following table presents the assets acquired and liabilities of Merchants assumed as of May 22, 2015 and their fair value estimates.
 
(Dollars in Thousands)
 
As Recorded by
Merchants
 
Initial Fair
Value
Adjustments
 
 
Subsequent
Fair Value
Adjustments
 
 
As Recorded
by Ameris
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
7,527
 
$
-
 
 
$
-
 
 
$
7,527
 
Federal funds sold and interest-bearing balances
 
 
106,188
 
 
-
 
 
 
-
 
 
 
106,188
 
Investment securities
 
 
164,421
 
 
(533)
(a)
 
 
(639)
(j)
 
 
163,229
 
Other investments
 
 
872
 
 
-
 
 
 
(253)
(k)
 
 
619
 
Loans
 
 
199,955
 
 
(8,500)
(b)
 
 
91
(o)
 
 
191,546
 
Less allowance for loan losses
 
 
(3,354)
 
 
3,354
(c)
 
 
-
 
 
 
-
 
Loans, net
 
 
196,601
 
 
(5,146)
 
 
 
91
 
 
 
191,546
 
Other real estate owned
 
 
4,082
 
 
(1,115)
(d)
 
 
-
 
 
 
2,967
 
Premises and equipment
 
 
14,614
 
 
(3,680)
(e)
 
 
-
 
 
 
10,934
 
Intangible assets
 
 
-
 
 
4,577
(f)
 
 
(634)
(l)
 
 
3,943
 
Other assets
 
 
2,333
 
 
2,335
(g)
 
 
(1,109)
(m)
 
 
3,559
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
496,638
 
$
(3,582)
 
 
$
(2,544)
 
 
$
490,512
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
 
$
121,708
 
$
-
 
 
$
-
 
 
$
121,708
 
Interest-bearing
 
 
286,112
 
 
-
 
 
 
41,588
(n)
 
 
327,700
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total deposits
 
 
407,820
 
 
-
 
 
 
41,588
 
 
 
449,408
 
Federal funds purchased and securities sold under agreements to repurchase
 
 
41,588
 
 
-
 
 
 
(41,588)
(n)
 
 
-
 
Other liabilities
 
 
2,151
 
 
81
(h)
 
 
-
 
 
 
2,232
 
Subordinated deferrable interest debentures
 
 
6,186
 
 
(2,680)
(i)
 
 
-
 
 
 
3,506
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
457,745
 
 
(2,599)
 
 
 
-
 
 
 
455,146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net identifiable assets acquired over (under) liabilities assumed
 
 
38,893
 
 
(983)
 
 
 
(2,544)
 
 
 
35,366
 
Goodwill
 
 
-
 
 
12,090
 
 
 
2,544
 
 
 
14,634
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets acquired over (under) liabilities assumed
 
$
38,893
 
$
11,107
 
 
$
-
 
 
$
50,000
 
Consideration:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash exchanged for shares
 
$
50,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of total consideration transferred
 
$
50,000
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Explanation of fair value adjustments
 
(a)
Adjustment reflects the fair value adjustments of the portfolio of securities available for sale as of the acquisition date.
 
(b)
Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio.
 
(c)
Adjustment reflects the elimination of Merchants’ allowance for loan losses.
 
(d)
Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired OREO portfolio.
 
(e)
Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired premises.
 
(f)
Adjustment reflects the recording of core deposit intangible on the acquired core deposit accounts.
 
(g)
Adjustment reflects the deferred taxes on the difference in the carrying values of acquired assets and assumed liabilities for financial reporting purposes and their basis for federal income tax purposes.
 
(h)
Adjustment reflects the fair value adjustments based on the Company’s evaluation of interest rate swap liabilities.
 
(i)
Adjustment reflects the fair value adjustment to the subordinated deferrable interest debentures at the acquisition date.
 
(j)
Adjustment reflects the additional fair value adjustments of the portfolio of securities available for sale as of the acquisition date.
 
(k)
Adjustment reflects the fair value adjustments of other investments as of the acquisition date.
 
(l)
Adjustment reflects adjustment to the core deposit intangible on the acquired core deposit accounts.
 
(m)
Adjustment reflects the additional deferred taxes on the difference in the carrying values of acquired assets and assumed liabilities for financial reporting purposes and their basis for federal income tax purposes.
 
(n)
Subsequent to acquisition, the acquired securities sold under agreements to repurchase were converted to deposit accounts and are no longer reported as securities sold under agreements to repurchase on the Consolidated Balance Sheet as of December 31, 2015.
 
(o)
Adjustment reflects additional recording of fair value adjustment of the acquired loan portfolio.
Pro Forma Information of Acquisitions
 The following unaudited pro forma information reflects the Company’s estimated consolidated results of operations as if the acquisitions had occurred on January 1, 2015, unadjusted for potential cost savings (in thousands).
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Net interest income and noninterest income
 
$
82,968
 
$
66,635
 
$
161,766
 
$
127,924
 
Net income
 
$
20,049
 
$
5,086
 
$
33,101
 
$
16,178
 
Net income available to common stockholders
 
$
20,049
 
$
5,086
 
$
33,101
 
$
16,178
 
Income per common share available to common stockholders – basic
 
$
0.58
 
$
0.15
 
$
0.95
 
$
0.48
 
Income per common share available to common stockholders – diluted
 
$
0.57
 
$
0.15
 
$
0.94
 
$
0.47
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average number of shares outstanding, basic
 
 
34,833
 
 
34,734
 
 
34,786
 
 
33,867
 
Average number of shares outstanding, diluted
 
 
35,153
 
 
35,069
 
 
35,101
 
 
34,202
 
Summary of Contractually Required Principal and Interest Cash Payment of the Loans As of Acquisition Date for Purchased Credit Impaired Loans
The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.
 
(Dollars in Thousands)
 
 
 
 
Contractually required principal and interest
 
$
17,201
 
Non-accretable difference
 
 
(2,712)
 
Cash flows expected to be collected
 
 
14,489
 
Accretable yield
 
 
(3,254)
 
Total purchased credit-impaired loans acquired
 
$
11,235
 
Schedule of Acquired Loans
The following table presents the acquired loan data for the Merchants acquisition.
 
 
 
Fair Value of
Acquired Loans at
Acquisition Date
 
Gross
Contractual
Amounts
Receivable at
Acquisition
Date
 
Best Estimate
at Acquisition
Date of
Contractual
Cash Flows
Not Expected
to be Collected
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
 
Acquired receivables subject to ASC 310-30
 
$
11,235
 
$
14,086
 
$
2,712
 
Acquired receivables not subject to ASC 310-30
 
$
180,311
 
$
184,906
 
$
-
 
Jacksonville Bancorp, Inc [Member]  
Estimated Fair Value of Assets Acquired and Liabilities Assumed
The following table presents the assets acquired and liabilities of JAXB assumed as of March 11, 2016 and their initial fair value estimates. The fair value adjustments shown in the following table continue to be evaluated by management and may be subject to further adjustment:
 
(Dollars in Thousands)
 
As Recorded by
JAXB
 
Initial Fair
Value
Adjustments
 
 
As Recorded
by Ameris
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
9,704
 
$
-
 
 
$
9,704
 
Federal funds sold and interest-bearing balances
 
 
7,027
 
 
-
 
 
 
7,027
 
Investment securities
 
 
60,836
 
 
(942)
(a)
 
 
59,894
 
Other investments
 
 
2,458
 
 
-
 
 
 
2,458
 
Loans
 
 
416,831
 
 
(15,746)
(b)
 
 
401,085
 
Less allowance for loan losses
 
 
(12,613)
 
 
12,613
(c)
 
 
-
 
Loans, net
 
 
404,218
 
 
(3,133)
 
 
 
401,085
 
Other real estate owned
 
 
2,873
 
 
(1,035)
(d)
 
 
1,838
 
Premises and equipment
 
 
4,798
 
 
-
 
 
 
4,798
 
Intangible assets
 
 
288
 
 
5,566
(e)
 
 
5,854
 
Other assets
 
 
14,141
 
 
23,266
(f)
 
 
37,407
 
Total assets
 
$
506,343
 
$
23,722
 
 
$
530,065
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
 
$
123,399
 
$
-
 
 
$
123,399
 
Interest-bearing
 
 
277,539
 
 
421
(g)
 
 
277,960
 
Total deposits
 
 
400,938
 
 
421
 
 
 
401,359
 
Other borrowings
 
 
48,350
 
 
84
(h)
 
 
48,434
 
Other liabilities
 
 
2,354
 
 
-
 
 
 
2,354
 
Subordinated deferrable interest debentures
 
 
16,294
 
 
(3,393)
(i)
 
 
12,901
 
Total liabilities
 
 
467,936
 
 
(2,888)
 
 
 
465,048
 
Net identifiable assets acquired over (under) liabilities assumed
 
 
38,407
 
 
26,610
 
 
 
65,017
 
Goodwill
 
 
-
 
 
31,375
 
 
 
31,375
 
Net assets acquired over (under) liabilities assumed
 
$
38,407
 
$
57,985
 
 
$
96,392
 
Consideration:
 
 
 
 
 
 
 
 
 
 
 
Ameris Bancorp common shares issued
 
 
2,549,469
 
 
 
 
 
 
 
 
Purchase price per share of the Company's common stock
 
$
28.42
 
 
 
 
 
 
 
 
Company common stock issued
 
 
72,455
 
 
 
 
 
 
 
 
Cash exchanged for shares
 
 
23,937
 
 
 
 
 
 
 
 
Fair value of total consideration transferred
 
$
96,392
 
 
 
 
 
 
 
 
 
 
Explanation of fair value adjustments
 
(a) Adjustment reflects the fair value adjustments of the portfolio of securities available for sale as of the acquisition date.
 
(b) Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio, net of the reversal of JAXB remaining fair value adjustments from their prior acquisitions.
 
(c) Adjustment reflects the elimination of JAXB’s allowance for loan losses.
 
(d) Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired OREO portfolio, which is based largely on contracted sale prices.
 
(e) Adjustment reflects the recording of core deposit intangible on the acquired core deposit accounts.
 
(f) Adjustment reflects the deferred taxes on the difference in the carrying values of acquired assets and assumed liabilities for financial reporting purposes and their basis for federal income tax purposes and the reversal of JAXB valuation allowance established on their deferred tax assets.
 
(g) Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired deposits.
 
(h) Adjustment reflects the fair value adjustments based on the Company’s evaluation of the liability for other borrowings.
 
(i) Adjustment reflects the fair value adjustment to the subordinated deferrable interest debentures at the acquisition date, net of the reversal of JAXB remaining fair value adjustments from their prior acquisitions.
Schedule of Acquired Loans
The following table presents the acquired loan data for the JAXB acquisition.
 
 
 
Fair Value of
Acquired Loans at
Acquisition Date
 
Gross
Contractual
Amounts
Receivable at
Acquisition
Date
 
Best Estimate
at Acquisition
Date of
Contractual
Cash Flows
Not Expected
to be Collected
 
 
 
(Dollars in Thousands)
 
Acquired receivables subject to ASC 310-30
 
$
28,255
 
$
42,314
 
$
7,877
 
Acquired receivables not subject to ASC 310-30
 
$
372,830
 
$
488,346
 
$
-