Ameris Bancorp (NASDAQ:ABCB)
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From Jul 2019 to Jul 2024
MOULTRIE, Ga., Oct. 21 /PRNewswire-FirstCall/ -- AMERIS BANCORP (NASDAQ: ABCB), reported net income of $366,000, or $0.03 per share, for the quarter ended September 30, 2008, compared to net income for the same quarter in 2007 of $3.6 million, or $0.26 per share. Net income for the year-to-date period totaled $6.5 million, or $0.48 per share, compared to $14.0 million, or $1.02 per share for the same period in 2007. Unusually high levels of loan loss provision have been required as several of the Company's markets have been adversely affected by increasingly negative economic trends.
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Provision for Loan Losses and Credit Quality
The Company's provision for loan losses during the third quarter amounted to $8.2 million, an increase of $5.2 million over the $3.0 million recorded in the third quarter of 2007. Similarly, provision for loan losses for the year- to-date period increased $10.7 million to $15.1 million for the first nine months of 2008, compared to 2007.
Non-performing assets increased during the current quarter to 2.52% of total loans, compared to 2.09% for the second quarter of 2008 and 1.57% at December 31, 2007. Net charge-offs on loans during the third quarter of 2008 increased to $6.7 million, compared to $3.2 million in the second quarter of 2008 and $1.6 million in the same quarter of 2007.
The Company's credit quality has declined as real estate activity and valuations continue to fall. Construction and development loans account for approximately 61% and 59% of the net charge-offs in the current quarter and year-to-date periods ended September 30, 2008, respectively. In addition to losses in the construction and development portfolio, residential real estate loans account for approximately 14% and 19% of the net charge-offs in the current quarter and year-to-date periods ended September 30, 2008, respectively. Construction and development loans account for approximately 21.1% and 24.7% of total loans for the period ended September 30, 2008 and September 30, 2007, respectively, while residential real estate loans account for approximately 20.3% and 19.2% of total loans during that same time period.
Trends in Net Interest Income and Net Interest Margin
Total net interest income of $19.2 million for the third quarter of 2008 represented only a slight increase over the $19.1 million recorded in the third quarter of 2007. Similarly, the year-to-date period reflected small increases in total net interest income, increasing 1.5% to $56.7 million. Lower levels of growth in net interest income were the result of modest levels of loan growth combined with declining overall margins.
The Company's net interest margin declined in the current quarter to 3.87%, compared to 4.03% in the same quarter in 2007. For the year-to-date period ended September 30, 2008, the Company reported a decline in the net interest margin to 3.92% from 4.05% in the same period in 2007. Increases in non-performing assets of $21.2 million from September 30, 2007, to September 30, 2008, accounted for 44% of the decline in net interest margin.
Yields on earning assets declined to 6.38% in the current quarter, from 7.87% in the same quarter in 2007. This decline in overall yields resulted primarily from changes in loan yields, which fell from 8.48% during the third quarter of 2007 to 6.67% during the third quarter of 2008. Decreases in interest income on loans were partially offset by increases in investment securities, the yields on which increased to 5.06% for the third quarter of 2008, compared to 4.96% in the third quarter of 2007.
Funding costs also offset some of the declines in earning asset yields. Total funding costs declined to 2.54% in the third quarter of 2008, compared to 3.90% in the same quarter of 2007. Declines in the yields on time deposits accounted for most of the decline in funding costs, falling to 3.79% in the current quarter, compared to 5.08% in the third quarter of 2007. The cost of non-deposit borrowing fell significantly to 2.09% in the third quarter of 2008, from 5.78% in the third quarter of 2007. The majority of the Company's non-deposit borrowings are LIBOR-based and have benefited materially from both declining rates and interest rate floors tied to the Company's borrowings from the FHLB.
Non-Interest Income
Total non-interest income remained virtually unchanged during the third quarter at $4.6 million when compared to the third quarter of 2007. Increases in service charges on deposit accounts to $3.7 million offset smaller declines in the other non-interest income categories, including mortgage banking activities. Increases in charges and fees have allowed the Company to experience better than average growth in fee income while slower activity in residential real estate in many of the Company's markets has slowed the growth of mortgage-related revenue.
Non-Interest Expense
Total non-interest expense for the third quarter of 2008 was $14.8 million, a decrease of approximately $408,000 from the same period in 2007. Salaries and benefits in the current quarter decreased approximately 4.4% to $7.1 million, when compared to the third quarter of 2007. This decline is primarily attributable to a reduction in incentive pay expense of approximately $1.3 million. Although the Company's previously announced workforce reduction was completed during the third quarter, the impact will not begin to be realized until the fourth quarter of 2008 due to its timing during the quarter and the related severance expense. Occupancy and equipment expense increased during the quarter to $1.9 million, an increase of 8.4% when compared to the same period in 2007. Additional offices, primarily in South Carolina and Jacksonville, Florida, are the primary reasons for the additional occupancy expenses.
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 50 locations in Georgia, Alabama, northern Florida and South Carolina.
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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.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Sept. June Mar. Dec. Sept.
2008 2008 2008 2007 2007
EARNINGS
Net Income $366 $3,149 $2,966 $1,197 $3,570
PER COMMON SHARE DATA
Earnings per share:
Basic 0.03 0.23 0.22 0.09 0.26
Diluted 0.03 0.23 0.22 0.09 0.26
Cash Dividends
per share 0.05 0.14 0.14 0.14 0.14
Book value per
share (period end) 14.25 14.20 14.48 14.12 13.93
Tangible book value
per share (period
end) 9.92 9.84 10.11 9.72 9.51
Weighted average
number of
shares:
Basic 13,515,767 13,510,907 13,550,744 13,485,765 13,501,663
Diluted 13,543,612 13,563,032 13,559,761 13,573,626 13,620,069
Period-end
number of
shares 13,564,032 13,564,032 13,556,770 13,539,985 13,539,195
Market data:
High closing
price 15.02 16.20 16.41 18.67 23.05
Low closing
price 7.79 8.70 12.49 13.73 17.72
Period end
closing price 14.85 8.70 16.06 16.85 18.08
Average daily
volume 43,464 62,739 61,780 51,604 50,547
PERFORMANCE RATIOS
Return on
average assets 0.07% 0.59% 0.56% 0.23% 0.68%
Return on
average equity 0.78% 6.58% 6.15% 2.49% 7.56%
Earning asset
yield (TE) 6.38% 6.64% 7.17% 7.66% 7.87%
Total cost of
funds 2.54% 2.74% 3.30% 3.79% 3.90%
Net interest
margin (TE) 3.87% 3.96% 3.91% 3.92% 4.03%
Non-interest
income excluding
securities
transactions, as
a percent of
total revenue
(TE) 12.50% 13.97% 12.33% 10.09% 10.87%
Efficiency ratio 61.98% 65.50% 67.12% 67.21% 64.08%
CAPITAL ADEQUACY
Equity to assets 8.56% 8.78% 9.27% 9.06% 8.96%
Tangible common
equity to assets 6.12% 6.26% 6.66% 6.41% 6.30%
OTHER PERIOD-END DATA
FTE Headcount 601 651 634 620 621
Assets per FTE $3,756 $3,369 $3,341 $3,407 $3,390
Branch locations 50 48 45 46 47
Deposits per
branch location $36,127 $36,893 $39,651 $38,201 $36,345
Nine Months Ended
Sept. Sept.
2008 2007
EARNINGS
Net Income $ 6,481 $13,967
PER COMMON SHARE DATA
Earnings per share:
Basic 0.48 1.04
Diluted 0.48 1.02
Cash Dividends per share 0.33 0.42
Book value per share (period end) 14.25 13.93
Tangible book value per share (period end) 9.92 9.51
Weighted average number of shares:
Basic 13,508,006 13,477,065
Diluted 13,555,469 13,650,217
Period-end number of shares 13,564,032 13,539,195
Market data:
High closing price 16.20 27.94
Low closing price 7.79 17.72
Period end closing price 14.85 18.08
Average daily volume 55,903 43,565
PERFORMANCE RATIOS
Return on average assets 0.40% 0.92%
Return on average equity 4.53% 10.10%
Earning asset yield (TE) 6.73% 7.84%
Total cost of funds 2.86% 3.85%
Net interest margin (TE) 3.92% 4.05%
Non-interest income excluding securities
transactions, as a percent of total
revenue (TE) 12.93% 11.17%
Efficiency ratio 64.86% 62.36%
CAPITAL ADEQUACY
Equity to assets 8.56% 8.96%
Tangible common equity to assets 6.12% 6.30%
OTHER PERIOD-END DATA
FTE Headcount 601 621
Assets per FTE $3,756 $3,390
Branch locations 50 47
Deposits per branch location $36,127 $36,345
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Nine Months Ended
Sept. June Mar. Dec. Sept. Sept. Sept.
2008 2008 2008 2007 2007 2008 2007
INCOME STATEMENT
Interest income
Interest and
fees on loans 28,280 28,339 30,134 32,999 33,479 $86,752 $95,811
Interest on
taxable
securities 3,563 3,646 3,583 3,576 3,480 10,793 10,252
Interest on
nontaxable
securities 169 173 172 158 175 514 530
Interest on
deposits in
other banks 100 91 200 259 317 391 2,017
Interest on
federal
funds sold 0 0 0 (20) 0 0 92
Total
interest
income 32,112 32,249 34,089 36,972 37,451 98,450 108,702
Interest expense
Interest on
deposits 11,717 12,314 14,142 15,620 15,877 38,173 46,621
Interest on
other
borrowings 1,218 879 1,487 2,367 2,493 3,584 6,252
Total
interest
expense 12,935 13,193 15,629 17,987 18,370 41,757 52,873
Net interest
income 19,177 19,056 18,460 18,985 19,081 56,693 55,829
Provision for
loan losses 8,220 3,720 3,200 6,914 2,964 15,140 4,407
Net interest
income after
provision for
loan losses 10,957 15,336 15,260 12,071 16,117 41,553 51,422
Noninterest
income
Service
charges on
deposit
accounts 3,657 3,664 3,316 3,310 3,197 10,637 9,133
Mortgage
banking
activity 745 855 869 827 783 2,469 2,265
Other service
charges,
commissions
and fees 120 220 278 942 203 618 1,008
Gain(loss) on
sale of
securities 0 0 0 (236) (69) 0 (61)
Other non-
interest income 117 574 379 (677) 477 1,070 1,414
Total non
interest
income 4,639 5,313 4,842 4,166 4,591 14,794 13,759
Noninterest
expense
Salaries and
employee
benefits 7,113 8,660 8,618 7,122 7,438 24,391 22,662
Equipment and
occupancy
expense 1,904 2,103 1,992 2,118 1,757 5,999 5,151
Amortization
of intangible
assets 293 293 293 324 324 879 973
Data Processing
Fees 1,238 1,226 1,093 1,096 1,110 3,557 3,436
Other operating
expenses 4,213 3,680 3,644 4,900 4,540 11,537 11,171
Total non
interest
expense 14,761 15,962 15,640 15,560 15,169 46,363 43,393
Operating Profit 835 4,687 4,462 677 5,539 9,984 21,788
Provision for
income taxes 469 1,538 1,496 (520) 1,969 3,503 7,821
Net Income 366 3,149 2,966 1,197 3,570 $6,481 $13,967
Diluted earnings
per share 0.03 0.23 0.22 0.09 0.26 0.48 1.02
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Sept. June Mar. Dec. Sept.
2008 2008 2008 2007 2007
PERIOD-END BALANCE SHEET
Assets
Cash and due from
banks $43,549 $47,720 $63,401 $59,804 $58,634
Federal funds sold
and interest
bearing balances 75,458 38,125 4,389 12,022 22,910
Securities
available for
sale, at fair
value 287,790 293,601 297,589 291,170 301,978
Restricted equity
securities, at cost 9,836 9,651 6,996 7,559 8,729
Loans, net of
unearned income 1,710,109 1,678,147 1,622,437 1,614,048 1,593,014
Less allowance
for loan losses 30,144 28,660 28,094 27,640 26,434
Loans, net 1,679,965 1,649,487 1,594,343 1,586,408 1,566,580
Premises and
equipment, net 65,868 63,291 60,053 59,132 54,639
Intangible assets,
net 3,924 4,217 4,509 4,802 5,126
Goodwill 54,813 54,813 54,675 54,813 54,675
Other assets 36,440 32,116 32,288 36,353 31,923
Total Assets $2,257,643 $2,193,021 $2,118,243 $2,112,063 $2,105,194
Liabilities
Deposits:
Noninterest-
bearing $198,900 $200,936 $199,692 $197,345 $185,803
Interest-
bearing 1,607,439 1,569,925 1,584,599 1,559,920 1,522,405
Total deposits 1,806,339 1,770,861 1,784,291 1,757,265 1,708,208
Federal funds
purchased &
securities sold
under agreements
to repurchase 63,973 39,795 4,987 14,705 32,359
Other borrowings 138,600 133,000 74,500 90,500 116,500
Other liabilities 13,118 14,541 15,888 16,075 17,262
Subordinated
deferrable interest
debentures 42,269 42,269 42,269 42,269 42,269
Total
liabilities 2,064,299 2,000,466 1,921,935 1,920,814 1,916,598
Stockholders' equity
Common stock 14,895 14,895 14,887 14,870 14,869
Capital surplus 83,453 83,308 82,920 82,750 82,308
Retained earnings 105,117 105,430 104,182 103,095 103,803
Accumulated other
comprehensive loss 666 (291) 5,093 1,303 (1,616)
Less treasury
stock (10,787) (10,787) (10,774) (10,769) (10,768)
Total
stockholders'
equity 193,344 192,555 196,308 191,249 188,596
Total
liabilities and
stockholders'
equity $2,257,643 $2,193,021 $2,118,243 $2,112,063 $2,105,194
Other Data
Earning Assets 2,073,357 2,009,873 1,924,415 1,917,240 1,917,902
Intangible Assets 58,737 59,030 59,184 59,615 59,801
Interest Bearing
Liabilities 1,852,281 1,784,989 1,706,355 1,707,394 1,713,533
Average Assets 2,192,501 2,141,940 2,115,561 2,102,579 2,069,715
Average
Stockholders'
Equity 186,541 192,605 193,971 191,124 187,290
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Nine Months Ended
Sept. June Mar. Dec. Sept. Sept. Sept.
2008 2008 2008 2007 2007 2008 2007
ASSET QUALITY
INFORMATION
Allowance for
loan losses
Balance at
beginning of
period $28,660 $28,094 $27,640 $26,434 $25,032 $27,640 $24,863
Provision for
loan loss 8,220 3,720 3,200 6,914 2,964 15,140 4,407
Charge-offs 6,946 3,800 2,945 6,465 1,807 13,691 3,921
Recoveries 210 646 199 757 245 1,055 1,086
Net charge-
offs
(recoveries) 6,736 3,154 2,746 5,708 1,562 12,636 2,835
Ending
balance $30,144 $28,660 $28,094 $27,640 $26,434 $30,144 $26,435
As a percentage
of loans 1.76% 1.71% 1.73% 1.71% 1.66% 1.76% 1.66%
As a percentage
of
nonperforming
loans 76.46% 89.27% 104.78% 149.66% 135.81% 76.46% 135.82%
As a percentage
of
nonperforming
assets 69.84% 81.56% 86.34% 108.56% 120.37% 69.84% 120.37%
Net Charge-off
information
Charge-offs
Commercial,
Financial &
Agricultural $963 $282 $390 $421 $353 $1,635 $757
Real Estate
- Residential 989 902 672 1,262 433 2,563 1,007
Real Estate
- Commercial
& Farmland 628 49 299 621 119 976 622
Real Estate
- Construction
& Development 4,165 2,319 1,305 3,899 709 7,789 1,114
Consumer
Installment 201 248 279 262 193 728 421
Other 0 0 0 0 0 0 0
Total charge
-offs 6,946 3,800 2,945 6,465 1,807 13,691 3,921
Recoveries
Commercial,
Financial &
Agricultural $83 $102 $18 $95 $41 $203 $494
Real Estate -
Residential 54 90 25 14 48 169 116
Real Estate -
Commercial &
Farmland (3) 68 31 159 79 96 181
Real Estate -
Construction
& Development 26 322 34 401 13 382 14
Consumer
Installment 50 64 90 88 64 204 281
Other 0 0 1 0 0 1 0
Total
recoveries 210 - 646 - 199 - 757
Net charge-
offs
(recoveries) $6,736 $3,154 $2,746 $5,708 $1,562 $12,636 $2,835
Non-accrual
loans 39,427 32,106 26,812 18,468 19,464 39,427 19,464
Foreclosed
assets 3,734 3,032 5,727 6,993 2,497 3,734 2,497
Total non-
performing
assets 43,161 35,138 32,539 25,461 21,961 43,161 21,961
Non-performing
assets as a
percent of
loans and
foreclosed
assets 2.52% 2.09% 2.00% 1.57% 1.38% 2.52% 1.38%
Net charge offs
as a percent
of loans
(Annualized) 1.58% 0.75% 0.68% 1.41% 0.39% 2.22% 0.53%
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Sept. June Mar. Dec. Sept.
2008 2008 2008 2007 2007
AVERAGE BALANCES
Short term assets $21,219 $18,236 $23,480 $21,826 $26,212
Investment
securities 299,564 307,304 291,708 297,380 299,925
Loans 1,698,024 1,650,781 1,617,991 1,605,006 1,569,906
Total Earning
Assets 2,018,807 1,976,321 1,933,179 1,924,212 1,896,043
Noninterest
bearing deposits 200,357 197,662 191,860 187,908 190,315
Interest
bearing deposits 607,534 607,777 612,212 596,053 575,415
Savings 55,143 54,973 54,221 55,305 58,778
CDs 929,787 903,655 890,668 886,117 870,731
Deposits 1,792,821 1,764,067 1,748,961 1,725,383 1,695,239
FHLB advances 130,849 111,922 97,162 105,570 110,056
Subordinated
debentures 42,269 42,269 42,269 42,269 42,269
Other borrowings 30,713 13,815 17,490 22,298 18,878
Total non-
deposit
funding 203,831 168,006 156,921 170,137 171,203
Total funding $1,996,652 $1,932,073 $1,905,882 $1,895,520 $1,866,442
Nine Months Ended
Sept. Sept.
2008 2007
AVERAGE BALANCES
Short term assets $20,978 $53,570
Investment securities 299,525 298,251
Loans 1,655,599 1,513,321
Total Earning Assets 1,976,102 1,865,142
Noninterest bearing deposits 196,626 194,131
Interest bearing deposits 609,174 567,448
Savings 54,779 61,148
CDs 908,037 870,774
Deposits 1,768,616 1,693,501
FHLB advances 113,311 88,237
Subordinated debentures 42,269 42,269
Other borrowings 20,673 14,467
Total non-deposit funding 176,253 144,973
Total funding $1,944,869 $1,838,474
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended Nine Months Ended
Sept. June Mar. Dec. Sept. Sept. Sept.
2008 2008 2008 2007 2007 2008 2007
INTEREST INCOME/
EXPENSE
Short term assets $100 $91 $193 $239 $317 $384 $2,111
Investment
securities (TE) 3,823 3,912 3,842 3,818 3,750 11,577 11,067
Loans (TE) 28,559 28,704 30,409 33,078 33,560 87,672 96,239
Total Earning
Assets 32,482 32,707 34,444 37,135 37,627 99,633 109,417
Noninterest
bearing
deposits - - - - - - -
Interest
bearing
deposits 2,722 2,580 3,450 4,238 4,577 8,752 13,153
Savings 121 129 118 142 154 368 481
CDs 8,874 9,605 10,575 11,379 11,146 29,054 32,987
Deposits 11,717 12,314 14,143 15,759 15,877 38,174 46,621
FHLB advances 359 302 653 1,299 1,461 1,314 3,433
Subordinated
debentures 493 487 686 832 811 1,666 2,333
Other borrowings 222 90 148 236 221 460 486
Total non-
deposit
funding 1,074 879 1,487 2,367 2,493 3,440 6,252
Total
funding $12,791 $13,193 $15,630 $18,126 $18,370 $41,614 $52,873
Net Interest
Income (TE) $19,691 $19,514 $18,814 $19,009 $19,257 $58,019 $56,544
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Nine
Three Months Ended Months Ended
Sept. June Mar. Dec. Sept. Sept. Sept.
2008 2008 2008 2007 2007 2008 2007
YIELDS (1)
Short term
assets 1.87% 2.00% 3.31% 4.34% 4.80% 2.45% 5.27%
Investment
securities 5.06% 5.11% 5.30% 5.09% 4.96% 5.16% 4.96%
Loans 6.67% 6.97% 7.56% 8.18% 8.48% 7.07% 8.50%
Total Earning
Assets (2) 6.38% 6.64% 7.17% 7.66% 7.87% 6.73% 7.84%
Noninterest
bearing deposits
Interest bearing
deposits 1.78% 1.70% 2.27% 2.82% 3.16% 1.92% 3.10%
Savings 0.87% 0.94% 0.88% 1.02% 1.04% 0.90% 1.05%
CDs 3.79% 4.26% 4.78% 5.09% 5.08% 4.27% 5.06%
Deposits 2.59% 2.80% 3.25% 3.62% 3.72% 2.88% 3.68%
FHLB advances 1.09% 1.08% 2.70% 4.88% 5.27% 1.55% 5.20%
Subordinated
debentures 4.63% 4.62% 6.53% 7.81% 7.61% 5.26% 7.38%
Other borrowings 2.87% 2.61% 3.40% 4.20% 4.64% 2.97% 4.49%
Total non-
deposit
funding 2.09% 2.10% 3.81% 5.52% 5.78% 2.61% 5.77%
Total
funding (3) 2.54% 2.74% 3.30% 3.79% 3.90% 2.86% 3.85%
Net interest
spread 3.84% 3.90% 3.87% 3.86% 3.97% 3.88% 4.00%
Net interest
margin 3.87% 3.96% 3.91% 3.92% 4.03% 3.92% 4.05%
(1) Interest and average rates are calculated on a tax-equivalent basis
using an effective tax rate of 35%.
(2) Rate calculated based on average earning assets.
(3) Rate calculated based on average interest bearing liabilities.
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DATASOURCE: Ameris Bancorp
CONTACT: Dennis J. Zember Jr., Executive Vice President & CFO, +1-229-
890-1111
Web site: http://www.amerisbank.com/