Ameris Bancorp Announces Record Earnings For Third Quarter 2018

Ameris Bancorp Announces Record Earnings For Third Quarter 2018

PR Newswire

JACKSONVILLE, Fla., Oct. 19, 2018 /PRNewswire/ -- Ameris Bancorp ABCB (the "Company") today reported net income of $41.4 million, or $0.87 per diluted share, for the quarter ended September 30, 2018, compared with $20.2 million, or $0.54 per diluted share, for the quarter ended September 30, 2017.  The Company reported adjusted net income of $43.3 million, or $0.91 per diluted share, for the quarter ended September 30, 2018, compared with $23.6 million, or $0.63 per diluted share, for the third quarter of 2017.  Adjusted net income for the period excludes after-tax merger and conversion charges, executive retirement benefits, restructuring charges related to recently announced branch consolidations and loss on the sale of bank premises.

For the year-to-date period ending September 30, 2018, the Company reported net income of $77.5 million, or $1.85 per diluted share, compared with $64.4 million, or $1.74 per diluted share, for the same period in 2017.  The Company reported adjusted net income of $100.3 million, or $2.40 per diluted share, for the nine months ended September 30, 2018, compared with $68.7 million, or $1.86 per diluted share, for the same period of 2017.  Adjusted net income for the year-to-date period excludes the same items listed above for the Company's quarter-to-date results and as reflected in the table below.

Commenting on the Company's quarterly results, Dennis J. Zember, Jr., the Company's President and Chief Executive Officer, said, "We had an outstanding quarter of operating results where we saw a material move in our efficiency ratio, a stable margin, and solid deposit growth.  Realizing the remaining cost savings on Hamilton and our recently announced cost saving initiatives will move our efficiency closer to 50% and have a material impact on our earnings.  Our operating return on assets and return on tangible capital of 1.53% and 20.50% are already best in class before these additional drivers are fully realized and our operating strategies will deliver the earnings and book value growth that we have forecasted."

Highlights of the Company's performance and results for the third quarter of 2018 include the following:

  • Growth in adjusted net earnings of 83.3% compared with the third quarter of 2017
  • Improvement in the adjusted efficiency ratio to 54.42% in the third quarter of 2018, compared with 57.53% in the second quarter of 2018 and 61.09% in the third quarter of 2017
  • Adjusted return on average assets of 1.53%, compared with 1.26% in the third quarter of 2017
  • Adjusted return on average tangible common equity of 20.50%, compared with 14.28% in the third quarter of 2017
  • 37.7% increase in total revenue, to $129.2 million, in the third quarter of 2018, compared with total revenue of $93.9 million in the third quarter of 2017
  • Organic loan growth of $68.5 million for the quarter, reflecting an annualized growth rate of 3.4%; year-to-date organic loan growth of $490.3 million, or an annualized growth rate of 11.5%
  • Year-over-year organic growth in noninterest bearing deposits of $191.1 million, or 11.1%
  • Improvement in nonperforming assets, decreasing to 0.60% of total assets
  • Annualized net charge-offs of 0.26% of average total loans and 0.44% of average non-purchased loans for the third quarter of 2018

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

Adjusted Net Income Reconciliation

















Three Months Ended



Nine Months Ended



September 30,



September 30,

(dollars in thousands except per share data)

2018



2017



2018



2017

Net income available to common shareholders

$

41,444





$

20,158





$

77,491





$

64,398



















Adjustment items:















Merger and conversion charges

276





92





19,502





494



Executive retirement benefits

962









6,419







Restructuring charge

229









229







Certain compliance resolution expenses





4,729









4,729



Financial impact of Hurricane Irma





410









410



Loss on sale of premises

4





91





783





956



Tax effect of  adjustment items

377





(1,863)





(4,113)





(2,306)



After-tax adjustment items

1,848





3,459





22,820





4,283



















Adjusted net income

$

43,292





$

23,617





$

100,311





$

68,681



















Reported net income per diluted share

$

0.87





$

0.54





$

1.85





$

1.74



Adjusted net income per diluted share

$

0.91





$

0.63





$

2.40





$

1.86



















Reported return on average assets

1.47

%



1.07

%



1.12

%



1.20

%

Adjusted return on average assets

1.53

%



1.26

%



1.46

%



1.28

%

















Reported return on average common equity

11.78

%



10.04

%



9.47

%



11.39

%

Adjusted return on average tangible common equity

20.50

%



14.28

%



18.47

%



14.94

%

 

Credit Quality

During the third quarter of 2018, the Company recorded provision for loan loss expense of $2.1 million, compared with $9.1 million in the second quarter of 2018.  Credit quality in the premium finance division loan portfolio was stable and there was no unexpected additional provision expense in the third quarter, compared to the increased provision in the second quarter of 2018.  As expected, credit costs returned to normal compared with quarters prior to the second quarter of 2018.  Nonperforming assets as a percentage of total assets decreased seven basis points to 0.60% during the quarter.  The net charge-off ratio for non-purchased loans increased 18 basis points, all of which was due to the elevated charge offs in the premium finance division, which were provided for in the second quarter of 2018.

Net Interest Income and Net Interest Margin

Net interest income on a tax-equivalent basis increased to $100.1 million in the current quarter of 2018, an increase of $31.4 million, or 45.8%, from the same quarter in 2017.  The Company's net interest margin, excluding the effects of accretion income, decreased during the quarter to 3.77%, compared with 3.81% in the second quarter of 2018.  Compared with the same quarter in 2017, net interest margin, excluding the effects of accretion income, has decreased by three basis points, while average earning assets grew $3.25 billion during this period.

Interest income on a tax-equivalent basis increased to $122.2 million in the current quarter of 2018, an increase of $44.1 million, or 56.4%, from the same quarter in 2017.  Yields on total earning assets moved higher during the quarter to 4.78%, compared with 4.66% for the second quarter in 2018 and 4.50% in the third quarter of 2017.  Yields on all loans excluding the effect of accretion increased to 4.95% in the current quarter of 2018, compared with 4.81% in the second quarter of 2018 and 4.65% in the third quarter of 2017.  Accretion income in the current quarter increased to $3.7 million, compared with $2.7 million in the second quarter of 2018 and $2.7 million in the third quarter of 2017.  Loan production in the banking division during the third quarter of 2018 totaled $467.5 million, with a weighted average yield of 5.51%, compared with $439.3 million and 5.46%, respectively, in the second quarter of 2018 and $409.2 million and 4.74%, respectively, in the third quarter of 2017.  Loan production in the lines of business (including retail mortgage, warehouse lending, SBA and premium finance) amounted to an additional $2.0 billion during the third quarter of 2018.

Interest expense during the third quarter of 2018 moved higher to $22.1 million, compared with $13.9 million in the second quarter of 2018 and $9.5 million in the third quarter of 2017.  The Company's total cost of funds moved 15 basis points higher to 0.90% in the third quarter of 2018 as compared with the second quarter of 2018.  Deposit costs increased 22 basis points during the third quarter of 2018 to 0.69%, compared with 0.47% in the second quarter of 2018.  Costs of interest-bearing deposits increased during the quarter from 0.67% in the second quarter of 2018 to 0.93% in the third quarter, with approximately 12 basis points of this increase relating to the increase in brokered funds.

Non-interest Income

Non-interest income in the third quarter of 2018 was $30.2 million, an increase of $3.2 million, or 11.7%, compared with the same quarter in 2017.  Service charge revenue increased $2.2 million, or 20.5%, in the third quarter of 2018, as compared with the same period of 2017, due to the Company's recently completed acquisitions.

Revenue in the retail mortgage group totaled $17.6 million in the third quarter of 2018, an increase of 6.8% compared with $16.5 million in the third quarter of 2017.  Total production in the third quarter of 2018 for the retail mortgage group amounted to $479.1 million (87% purchase and 13% refinance), compared with $401.7 million in the same quarter of 2017 (89% purchase and 11% refinance).  Gain on sale spreads improved in the third quarter, moving to 3.00% from 2.94% in the second quarter.  The Company's open pipeline at the end of the third quarter of 2018 was $162.4 million, compared with $228.7 million at June 30, 2018 and $158.4 million at the end of the third quarter of 2017.

The Company's warehouse lending group continued to increase its profitability, as revenues from the division increased by $854,000, or 40.3%, during the third quarter of 2018, compared with the same period in 2017.  Net income for the division increased 94.0% from $1.1 million in the third quarter of 2017 to $2.2 million in the third quarter of 2018.  Loan production increased from $957.3 million in the third quarter of 2017 to approximately $1.22 billion in the current quarter.

Revenues from the Company's SBA division were $2.5 million during the third quarter of 2018, compared with $2.1 million during the third quarter of 2017, and net income for the division increased 62.8% from $734,000 for the third quarter of 2017 to $1.2 million for the third quarter of 2018.  The open pipeline increased to $99.5 million at the end of the quarter, compared with $56.0 million at the same time last year.

Non-interest Expense

Non-interest expense totaled $72.4 million in the third quarter of 2018, a decrease of $14.0 million compared with $86.4 million in the second quarter of 2018.  During the third quarter of 2018, the Company recorded $276,000 of merger and conversion charges, $962,000 of expense related to executive retirement, $229,000 of restructuring charges related to the Company's recently announced branch consolidation plan and $4,000 of loss on sale of bank premises, compared with $18.4 million of merger and conversion charges, $5.5 million of expense related to executive retirement and $196,000 of loss on sale of bank premises recorded in the second quarter of 2018.  Excluding these charges, operating expenses increased approximately $8.5 million, or 13.7%, to $70.9 million in the third quarter of 2018, up from $62.3 million in the second quarter of 2018.  Substantially all of the increase in operating expenses related to additional compensation and occupancy costs associated with the acquisitions of Atlantic Coast Financial Corporation ("Atlantic") and Hamilton State Bancshares, Inc. ("Hamilton") during the second quarter of 2018.

The Company continues to focus on improving its operating efficiency ratio. During the third quarter of 2018, the Company's adjusted efficiency ratio declined to 54.42%, compared with 57.53% in the second quarter of 2018.  Management expects to continue improving efficiency in future quarters as a result of the recently completed acquisitions of Atlantic and Hamilton, as well as from the recently announced cost savings strategies and branch consolidation plan.  Atlantic was fully integrated and cost savings were realized in the third quarter of 2018, while Hamilton was not fully integrated until early October 2018, with full cost savings benefits expected to be realized beginning in the fourth quarter of 2018.  The Company's additional branch consolidation and cost saving initiatives will take effect the first quarter of 2019.

Exclusive of the executive retirement expense in each quarter, salaries and benefits increased $3.2 million during the third quarter of 2018 to $37.5 million, from $34.3 million in the second quarter of 2018.  The increase is attributable to $4.8 million of additional salary expense from the acquisitions, offset by decreased expense in the retail mortgage division and reduced incentive and commission accruals based on production.  Management anticipates decreases in salary expense in the fourth quarter of 2018, when the full benefit of cost savings from the Hamilton acquisition and data conversion will become effective.

Occupancy costs increased 34.6% from $6.4 million in the second quarter of 2018 to $8.6 million in the third quarter of 2018, and data processing increased 32.3% from $6.4 million in the second quarter of 2018 to $8.5 million in the third quarter of 2018.  Both of these increases were directly attributable to the increased number of branches from the Hamilton acquisition, which was acquired the last business day of the second quarter of 2018.  Other operating costs increased by only $301,000, or 2.8%, to $11.1 million in the third quarter of 2018, primarily as a result of expenses from the increased branch network, offset by re-engineering efforts in the administrative and support cost centers.

Total credit costs (including provision and non-provision credit resolution-related costs) totaled $3.3 million in the third quarter of 2018, compared with $3.1 million in the same quarter in 2017 and $10.2 million in the second quarter of 2018.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2018 was 24.3%, compared with 20.5% in the second quarter of 2018 and 28.8% during the third quarter of 2017.  The Company's effective tax rate for the nine months ended September 30, 2018 was 23.2% and management expects that its effective tax rates in the future will be consistent with the year-to-date blended rate of  22% to 24%.  The decrease in effective tax rates in 2018, compared with 2017, is a result of the Tax Cuts and Jobs Act that was enacted in the fourth quarter of 2017.

Balance Sheet Trends

Total assets at September 30, 2018 were $11.43 billion, compared with $7.86 billion at December 31, 2017.   Loans, including loans held for sale, totaled $8.66 billion at September 30, 2018, compared with $6.24 billion at December 31, 2017 and $8.63 billion at June 30, 2018. Excluding the effects of recent acquisitions, growth in core loans (including legacy and purchased non-covered loans) during the quarter amounted to $68.5 million, or 3.4% on an annualized basis, and amounted to $490.3 million, or 11.5%, for the year-to-date period.  Net loan growth slowed in the third quarter due to the negative impact of early paydowns while production remained strong, increasing by over 14% as compared with the third quarter of 2017.  The growth in legacy loans was realized in commercial real estate, residential real estate and consumer installment loans, while the commercial and industrial and agriculture and real estate construction and development categories both declined during the quarter.  Loans held for sale, which includes both residential mortgage and SBA-guaranteed loans, decreased $7.1 million during the third quarter of 2018.  The Company's efforts to manage a diversified loan portfolio have resulted in concentration levels that are solidly below applicable regulatory guidance.

Investment securities at the end of the third quarter of 2018 were $1.20 billion, or 11.6% of earning assets, compared with $853.1 million, or 11.7% of earning assets, at December 31, 2017.

At September 30, 2018, total deposits amounted to $9.18 billion, or 92.4% of total funding, compared with $6.63 billion and 94.8%, respectively, at December 31, 2017.  Compared with the same period in 2017, deposits have increased by $3.29 billion, or 55.7%.  Excluding the recently completed acquisitions, deposits increased $191.1 million, or 11.1%.  Non-interest bearing deposits at the end of the current quarter were $2.33 billion, or 25.4% of total deposits, compared with $1.78 billion, or 26.8%, at December 31, 2017.  Non-rate sensitive deposits (including non-interest bearing, NOW and savings) totaled $4.35 billion at September 30, 2018, compared with $3.52 billion at the end of 2017.  These funds represented 47.4% of the Company's total deposits at September 30, 2018, compared with 53.1% at the end of 2017.

Shareholders' equity at September 30, 2018 totaled $1.40 billion, compared with $804.5 million at December 31, 2017.  The increase in shareholders' equity resulted from the issuance of new shares of common stock in the Company's acquisitions of Atlantic, Hamilton and US Premium Finance Holding Company, plus earnings of $77.5 million during the year.  Tangible book value per share at September 30, 2018 was $17.78, compared with $17.12 per share at June 30, 2018.

Conference Call

The Company will host a teleconference at 10:00 a.m. Eastern time today (October 19, 2018) to discuss the Company's results and answer appropriate questions.  The conference call can be accessed by dialing 1-877-504-1190 (or 1-855-669-9657 for participants in Canada and 1-412-902-6630 for other international participants).  The conference ID name is Ameris Bancorp ABCB.   A replay of the call will be available one hour after the end of the conference call until November 2, 2018.  To listen to the replay, dial 1-877-344-7529 (or 1-855-669-9658 for participants in Canada and 1-412-317-0088 for other international participants).  The conference replay access code is 10124934.  The conference call replay and the financial information discussed will also be available on the Investor Relations page of the Ameris Bank website at www.amerisbank.com.

About Ameris Bancorp

Ameris Bancorp is a bank holding company headquartered in Moultrie, Georgia.  The Company's banking subsidiary, Ameris Bank, had 125 locations in Georgia, Alabama, northern Florida and South Carolina at the end of the most recent quarter.

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management of Ameris Bancorp (the "Company") uses these non-GAAP measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This news release contains 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 on which they were made.  The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance.  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, including, without limitation, the following:  general competitive, economic, political and market conditions and fluctuations, including, without limitation, movements in interest rates; competitive pressures on product pricing and services; the businesses of the Company and Hamilton may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger transactions may not be fully realized within the expected timeframes; disruption from the merger transactions may make it more difficult to maintain relationships with customers, employees or others; diversion of management time to merger-related issues; and the success and timing of other business strategies.  For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017 and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  Forward-looking statements speak only as of the date they are made, and 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.

 



AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Financial Highlights





Table 1



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands except per share data)

2018



2018



2018



2017



2017



2018



2017





























EARNINGS



























Net income

$

41,444





$

9,387





$

26,660





$

9,150





$

20,158





$

77,491





$

64,398



Adjusted net income

$

43,292





$

29,239





$

27,780





$

23,590





$

23,617





$

100,311





$

68,681































COMMON SHARE DATA



























Earnings per share available to common

shareholders



























Basic

$

0.87





$

0.24





$

0.70





$

0.25





$

0.54





$

1.86





$

1.76



Diluted

$

0.87





$

0.24





$

0.70





$

0.24





$

0.54





$

1.85





$

1.74



Adjusted Diluted EPS

$

0.91





$

0.74





$

0.73





$

0.63





$

0.63





$

2.40





$

1.86



Cash dividends per share

$

0.10





$

0.10





$

0.10





$

0.10





$

0.10





$

0.30





$

0.30



Book value per share (period end)

$

29.58





$

28.87





$

22.67





$

21.59





$

21.54





$

29.58





$

21.54



Tangible book value per share (period end)

$

17.78





$

17.12





$

16.90





$

17.86





$

17.78





$

17.78





$

17.78



Weighted average number of shares



























Basic

47,514,653





39,432,021





37,966,781





37,238,564





37,225,418





41,672,792





36,689,934



Diluted

47,685,334





39,709,503





38,250,122





37,556,335





37,552,667





41,844,900





37,017,486



Period end number of shares

47,496,966





47,518,662





38,327,081





37,260,012





37,231,049





47,496,966





37,231,049



Market data



























High intraday price

$

54.35





$

58.10





$

59.05





$

51.30





$

51.28





$

59.05





$

51.28



Low intraday price

$

45.15





$

50.20





$

47.90





$

44.75





$

41.05





$

45.15





$

41.05



Period end closing price

$

45.70





$

53.35





$

52.90





$

48.20





$

48.00





$

45.70





$

48.00



Average daily volume

382,622





253,413





235,964





206,178





168,911





291,061





193,555































PERFORMANCE RATIOS



























Return on average assets

1.47

%



0.44

%



1.38

%



0.47

%



1.07

%



1.12

%



1.20

%

Adjusted return on average assets

1.53

%



1.38

%



1.44

%



1.20

%



1.26

%



1.46

%



1.28

%

Return on average common equity

11.78

%



3.86

%



12.73

%



4.47

%



10.04

%



9.47

%



11.39

%

Adjusted return on average tangible common

equity

20.50

%



17.26

%



17.09

%



13.91

%



14.28

%



18.47

%



14.94

%

Earning asset yield (TE)

4.78

%



4.66

%



4.52

%



4.49

%



4.50

%



4.67

%



4.44

%

Total cost of funds

0.90

%



0.75

%



0.63

%



0.57

%



0.57

%



0.78

%



0.51

%

Net interest margin (TE)

3.92

%



3.95

%



3.92

%



3.94

%



3.95

%



3.93

%



3.96

%

Noninterest income excluding securities

transactions, as a percent of total revenue

(TE)

19.77

%



25.72

%



24.71

%



22.41

%



25.68

%



23.06

%



26.90

%

Efficiency ratio

56.00

%



80.50

%



62.04

%



63.74

%



67.94

%



65.66

%



63.57

%

Adjusted efficiency ratio (TE)

54.42

%



57.53

%



59.95

%



60.88

%



61.09

%



57.02

%



60.06

%





























CAPITAL ADEQUACY (period end)



























Shareholders' equity to assets

12.29

%



12.26

%



10.83

%



10.24

%



10.48

%



12.29

%



10.48

%

Tangible common equity to tangible assets

7.77

%



7.65

%



8.30

%



8.62

%



8.81

%



7.77

%



8.81

%





























EQUITY TO ASSETS RECONCILIATION



























Tangible common equity to tangible assets

7.77

%



7.65

%



8.30

%



8.62

%



8.81

%



7.77

%



8.81

%

Effect of goodwill and other intangibles

4.52

%



4.61

%



2.53

%



1.62

%



1.67

%



4.52

%



1.67

%

Equity to assets (GAAP)

12.29

%



12.26

%



10.83

%



10.24

%



10.48

%



12.29

%



10.48

%





























OTHER DATA (period end)



























Full time equivalent employees



























Banking Division

1,432





1,477





1,072





1,085





1,080





1,432





1,080



Retail Mortgage Division

317





308





290





279





272





317





272



Warehouse Lending Division

8





7





7





8





8





8





8



SBA Division

23





22





21





20





23





23





23



Premium Finance Division

67





68





67





68





62





67





62



Total Ameris Bancorp FTE headcount

1,847





1,882





1,457





1,460





1,445





1,847





1,445































Assets per Banking Division FTE

$

7,981





$

7,577





$

7,484





$

7,241





$

7,083





$

7,981





$

7,083



Branch locations

125





126





97





97





97





125





97



Deposits per branch location

$

73,451





$

69,536





$

66,455





$

68,308





$

60,778





$

73,451





$

60,778



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Income Statement





Table 2



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands except per share data)

2018



2018



2018



2017



2017



2018



2017





























Interest income



























Interest and fees on loans

$

110,470





$

82,723





$

73,267





$

73,440





$

70,462





$

266,460





$

197,447



Interest on taxable securities

8,792





6,321





5,207





5,097





5,062





20,320





15,057



Interest on nontaxable securities

204





179





322





372





392





705





1,209



Interest on deposits in other banks

1,581





723





716





655





406





3,020





1,070



Interest on federal funds sold

72





















72







Total interest income

121,119





89,946





79,512





79,564





76,322





290,577





214,783































Interest expense



























Interest on deposits

15,630





7,794





6,772





6,398





5,136





30,196





13,479



Interest on other borrowings

6,451





6,153





3,939





3,643





4,331





16,543





10,702



Total interest expense

22,081





13,947





10,711





10,041





9,467





46,739





24,181































Net interest income

99,038





75,999





68,801





69,523





66,855





243,838





190,602



Provision for loan losses

2,095





9,110





1,801





2,536





1,787





13,006





5,828



Net interest income after provision for loan

losses

96,943





66,889





67,000





66,987





65,068





230,832





184,774































Noninterest income



























Service charges on deposits accounts

12,690





10,613





10,228





10,340





10,535





33,531





31,714



Mortgage banking activity

13,413





14,890





11,900





10,037





13,340





40,203





38,498



Other service charges, commissions and fees

777





697





719





735





699





2,193





2,137



Gain (loss) on securities

48





(123)





37













(38)





37



Other noninterest income

3,243





5,230





3,580





2,451





2,425





12,053





8,508



Total noninterest income

30,171





31,307





26,464





23,563





26,999





87,942





80,894































Noninterest expense



























Salaries and employee benfits

38,446





39,776





32,089





30,507





32,583





110,311





89,509



Occupancy and equipment expenses

8,598





6,390





6,198





6,010





6,036





21,186





18,059



Data processing and telecommunications expenses

8,518





6,439





7,135





7,219





7,050





22,092





20,650



Credit resolution related expenses(1)

1,248





1,045





549





614





1,347





2,842





2,879



Advertising and marketing expenses

1,453





1,256





1,229





1,519





1,247





3,938





3,612



Amortization of intangible assets

2,676





2,252





934





942





941





5,862





2,990



Merger and conversion charges

276





18,391





835





421





92





19,502





494



Other noninterest expenses

11,138





10,837





10,129





12,105





14,471





32,104





34,406



Total noninterest expense

72,353





86,386





59,098





59,337





63,767





217,837





172,599































Income before income tax expense

54,761





11,810





34,366





31,213





28,300





100,937





93,069



Income tax expense

13,317





2,423





7,706





22,063





8,142





23,446





28,671



Net income

$

41,444





$

9,387





$

26,660





$

9,150





$

20,158





$

77,491





$

64,398































Diluted earnings per common share

$

0.87





$

0.24





$

0.70





$

0.24





$

0.54





$

1.85





$

1.74































(1) Includes expenses associated with problem loans and OREO, as well as OREO losses and writedowns.









 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Period End Balance Sheet

Table 3



Three Months Ended



Sep



Jun



Mar



Dec



Sep

(dollars in thousands)

2018



2018



2018



2017



2017





















Assets



















Cash and due from banks

$

158,453





$

151,539





$

123,945





$

139,313





$

131,071



Federal funds sold and interest-bearing deposits in banks

470,804





273,170





210,930





191,345





112,844



Time deposits in other banks

11,558





11,558















Investment securities available for sale, at fair value

1,162,570





1,153,703





848,585





810,873





819,593



Other investments

35,929





44,769





32,227





42,270





47,977



Loans held for sale, at fair value

130,179





137,249





111,135





197,442





137,392























Loans

5,543,306





5,380,515





5,051,986





4,856,514





4,574,678



Purchased loans

2,711,460





2,812,510





818,587





861,595





917,126



Purchased loan pools

274,752





297,509





319,598





328,246





465,218



Loans, net of unearned income

8,529,518





8,490,534





6,190,171





6,046,355





5,957,022



Allowance for loan losses

(28,116)





(31,532)





(26,200)





(25,791)





(25,966)



Loans, net

8,501,402





8,459,002





6,163,971





6,020,564





5,931,056























Other real estate owned

9,375





8,003





9,171





8,464





9,391



Purchased other real estate owned

7,692





7,272





6,723





9,011





9,946



Total other real estate owned

17,067





15,275





15,894





17,475





19,337























Premises and equipment, net

145,885





144,484





116,381





117,738





119,458



Goodwill

505,604





504,764





208,513





125,532





125,532



Other intangible assets, net

54,729





53,561





12,562





13,496





14,437



Deferred income taxes, net

38,217





40,240





28,677





28,320





39,365



Cash value of bank owned life insurance

103,588





103,059





80,007





79,641





79,241



Other assets

93,009





98,324





70,001





72,194





72,517



Total assets

$

11,428,994





$

11,190,697





$

8,022,828





$

7,856,203





$

7,649,820























Liabilities



















Deposits



















Noninterest-bearing

$

2,333,992





$

2,356,420





$

1,867,900





$

1,777,141





$

1,718,022



Interest-bearing

6,847,371





6,405,173





4,578,265





4,848,704





4,177,482



Total deposits

9,181,363





8,761,593





6,446,165





6,625,845





5,895,504



Federal funds purchased and securities sold under agreements to repurchase

14,071





11,002





23,270





30,638





14,156



Other borrowings

656,831





862,136





555,535





250,554





808,572



Subordinated deferrable interest debentures

88,986





88,646





85,881





85,550





85,220



FDIC loss-share payable, net

18,740





18,716





9,255





8,803





8,190



Other liabilities

64,026





76,708





33,778





50,334





36,257



Total liabilities

10,024,017





9,818,801





7,153,884





7,051,724





6,847,899























Shareholders' Equity



















Preferred stock



















Common stock

49,012





49,012





39,820





38,735





38,706



Capital stock

1,050,752





1,049,283





559,040





508,404





506,779



Retained earnings

338,350





301,656





296,366





273,119





267,694



Accumulated other comprehensive income (loss), net of tax

(16,576)





(12,571)





(10,823)





(1,280)





3,241



Treasury stock

(16,561)





(15,484)





(15,459)





(14,499)





(14,499)



Total shareholders' equity

1,404,977





1,371,896





868,944





804,479





801,921



Total liabilities and shareholders' equity

$

11,428,994





$

11,190,697





$

8,022,828





$

7,856,203





$

7,649,820























Other Data



















Earning assets

$

10,340,558





$

10,110,983





$

7,393,048





$

7,288,285





$

7,074,828



Intangible assets

560,333





558,325





221,075





139,028





139,969



Interest-bearing liabilities

7,607,259





7,366,957





5,242,951





5,215,446





5,085,430



Average assets

11,204,504





8,529,035





7,823,451





7,777,996





7,461,367



Average common shareholders' equity

1,395,479





974,494





849,346





812,264





796,856



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Asset Quality Information





Table 4



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017





























Allowance for Loan Losses



























Balance at beginning of period

$

31,532





$

26,200





$

25,791





$

25,966





$

25,101





$

25,791





$

23,920































Provision for loan losses

2,095





9,110





1,801





2,536





1,787





13,006





5,828































Charge-offs

8,112





5,717





2,872





3,638





2,443





16,701





6,829



Recoveries

2,601





1,939





1,480





927





1,521





6,020





3,047



Net charge-offs (recoveries)

5,511





3,778





1,392





2,711





922





10,681





3,782































Ending balance

$

28,116





$

31,532





$

26,200





$

25,791





$

25,966





$

28,116





$

25,966































Net  Charge-off Information























































Charge-offs



























Commercial, financial and agricultural

$

6,121





$

3,744





$

1,449





$

954





$

1,091





$

11,314





$

1,896



Real estate - construction and development

265





20













1





285





95



Real estate - commercial and farmland

27









142





440





18





169





413



Real estate - residential

293





204





198





120





852





695





2,031



Consumer installment

923





839





962





696





320





2,724





922



Purchased loans

483





910





121





1,428





161





1,514





1,472



Purchased loan pools



























Total charge-offs

8,112





5,717





2,872





3,638





2,443





16,701





6,829































Recoveries



























Commercial, financial and agricultural

939





1,247





656





571





409





2,842





699



Real estate - construction and development

1





2





114





2





126





117





244



Real estate - commercial and farmland

134





11





24





28





26





169





156



Real estate - residential

44





29





182





47





56





255





190



Consumer installment

178





117





67





38





17





362





78



Purchased loans

1,305





533





437





241





887





2,275





1,680



Purchased loan pools



























Total recoveries

2,601





1,939





1,480





927





1,521





6,020





3,047































Net charge-offs (recoveries)

$

5,511





$

3,778





$

1,392





$

2,711





$

922





$

10,681





$

3,782































Non-Performing Assets



























Nonaccrual loans (excluding purchased loans)

$

15,986





$

16,813





$

14,420





$

14,202





$

15,325





$

15,986





$

15,325



Nonaccrual purchased loans

27,764





33,557





15,940





15,428





19,049





27,764





19,049



Nonaccrual purchased loan pools

4,696





2,197













915





4,696





915



Other real estate owned

9,375





8,003





9,171





8,464





9,391





9,375





9,391



Purchased other real estate owned

7,692





7,272





6,723





9,011





9,946





7,692





9,946



Accruing loans delinquent 90 days or more

(excluding purchased loans)

2,863





7,421





2,497





5,991





2,941





2,863





2,941



Accruing purchased loans delinquent 90 days or

more



























Total non-performing assets

$

68,376





$

75,263





$

48,751





$

53,096





$

57,567





$

68,376





$

57,567































Asset Quality Ratios



























Non-performing assets as a percent of total assets

0.60

%



0.67

%



0.61

%



0.68

%



0.75

%



0.60

%



0.75

%

Net charge-offs as a percent of average loans

(annualized)

0.26

%



0.23

%



0.09

%



0.18

%



0.06

%



0.20

%



0.09

%

Net charge-offs, excluding purchased loans as a

percent of average loans (annualized)

0.44

%



0.26

%



0.14

%



0.13

%



0.15

%



0.29

%



0.13

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Loan Information

Table 5



Sep



Jun



Mar



Dec



Sep

(dollars in thousands)

2018



2018



2018



2017



2017





















Loans by Type



















Legacy loans



















Commercial, financial and agricultural

$

1,422,152





$

1,446,857





$

1,387,437





$

1,362,508





$

1,307,209



Real estate - construction and development

641,830





672,155





631,504





624,595





550,189



Real estate - commercial and farmland

1,804,265





1,640,411





1,636,654





1,535,439





1,558,882



Real estate - residential

1,275,201





1,245,370





1,080,028





1,009,461





969,289



Consumer installment

399,858





375,722





316,363





324,511





189,109



Total legacy loans

$

5,543,306





$

5,380,515





$

5,051,986





$

4,856,514





$

4,574,678



Purchased loans



















Commercial, financial and agricultural

$

413,365





$

397,517





$

64,612





$

74,378





$

80,895



Real estate - construction and development

219,882





268,443





48,940





65,513





68,583



Real estate - commercial and farmland

1,399,174





1,428,490





465,870





468,246





500,169



Real estate - residential

649,352





679,205





236,453





250,539





264,312



Consumer installment

29,687





38,855





2,712





2,919





3,167



Total purchased loans

$

2,711,460





$

2,812,510





$

818,587





$

861,595





$

917,126



Purchased loan pools



















Real estate - residential

$

274,752





$

297,509





$

319,598





$

328,246





$

465,218



Total purchased loan pools

$

274,752





$

297,509





$

319,598





$

328,246





$

465,218



Total loan portfolio



















Commercial, financial and agricultural

$

1,835,517





$

1,844,374





$

1,452,049





$

1,436,886





$

1,388,104



Real estate - construction and development

861,712





940,598





680,444





690,108





618,772



Real estate - commercial and farmland

3,203,439





3,068,901





2,102,524





2,003,685





2,059,051



Real estate - residential

2,199,305





2,222,084





1,636,079





1,588,246





1,698,819



Consumer installment

429,545





414,577





319,075





327,430





192,276



Total loans

$

8,529,518





$

8,490,534





$

6,190,171





$

6,046,355





$

5,957,022























Troubled Debt Restructurings (excluding purchased loans)



















Accruing troubled debt restructurings



















Commercial, financial and agricultural

$

180





$

38





$

39





$

41





$

44



Real estate - construction and development

384





150





176





417





424



Real estate - commercial and farmland

3,817





4,531





4,606





4,680





4,769



Real estate - residential

6,558





6,299





6,547





6,199





7,209



Consumer installment

4





5





7





5





6



Total accruing troubled debt restructurings

$

10,943





$

11,023





$

11,375





$

11,342





$

12,452



Nonaccrual troubled debt restructurings



















Commercial, financial and agricultural

$

208





$

330





$

224





$

120





$

129



Real estate - construction and development

6





30





7





34





34



Real estate - commercial and farmland

306





196





2,127





204





210



Real estate - residential

742





709





838





1,508





1,212



Consumer installment

92





102





93





98





130



Total nonaccrual troubled debt restructurings

$

1,354





$

1,367





$

3,289





$

1,964





$

1,715



 Total troubled debt restructurings (excluding purchased loans)

$

12,297





$

12,390





$

14,664





$

13,306





$

14,167



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Loan Information (continued)

Table 5



Sep



Jun



Mar



Dec



Sep

(dollars in thousands)

2018



2018



2018



2017



2017





















Loans by Risk Grade



















Legacy loans



















Grade 1 - Prime credit

$

550,020





$

545,902





$

557,625





$

554,979





$

510,262



Grade 2 - Strong credit

645,612





660,495





673,591





688,481





692,217



Grade 3 - Good credit

2,289,584





2,211,703





2,050,717





2,033,979





2,003,173



Grade 4 - Satisfactory credit

1,939,518





1,820,884





1,676,308





1,487,781





1,277,969



Grade 5 - Fair credit

40,041





52,069





17,499





16,996





14,977



Grade 6 - Other assets especially mentioned

41,125





38,150





39,795





30,075





36,143



Grade 7 - Substandard

37,406





51,305





36,444





44,216





39,930



Grade 8 - Doubtful





7





7





7





7



Grade 9 - Loss



















Total legacy loans

$

5,543,306





$

5,380,515





$

5,051,986





$

4,856,514





$

4,574,678



Purchased loans



















Grade 1 - Prime credit

$

54,840





$

55,183





$

3,808





$

3,964





$

4,039



Grade 2 - Strong credit

132,454





139,683





97,448





101,098





107,097



Grade 3 - Good credit

463,307





449,317





243,730





259,872





275,855



Grade 4 - Satisfactory credit

1,828,090





1,908,143





367,997





385,080





411,776



Grade 5 - Fair credit

133,653





135,281





20,012





19,736





19,859



Grade 6 - Other assets especially mentioned

35,676





45,095





33,705





37,121





50,696



Grade 7 - Substandard

63,440





79,808





51,887





54,724





47,804



Grade 8 - Doubtful



















Grade 9 - Loss



















Total purchased loans

$

2,711,460





$

2,812,510





$

818,587





$

861,595





$

917,126



Purchased loan pools



















Grade 3 - Good credit

$

270,056





$

295,312





$

318,696





$

327,342





$

464,303



Grade 7 - Substandard

4,696





2,197





902





904





915



Total purchased loan pools

$

274,752





$

297,509





$

319,598





$

328,246





$

465,218



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Average Balances





Table 6



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017





























Earning Assets



























Federal funds sold

$

15,074





$

203





$

9





$

3





$





$

5,150





$



Interest-bearing deposits in banks

283,604





151,332





147,481





184,287





109,266





196,145





126,014



Time deposits in other banks

11,557





254

















3,979







Investment securities - taxable

1,117,517





839,772





777,310





759,253





760,907





912,820





762,381



Investment securities - nontaxable

31,641





26,626





48,455





58,858





60,862





35,512





63,132



Other investments

36,067





42,384





34,654





32,706





42,687





37,733





39,171



Loans held for sale

151,396





141,875





138,129





138,468





126,798





143,848





105,296



Loans

5,703,921





5,198,301





4,902,082





4,692,997





4,379,082





5,277,108





4,018,597



Purchased loans

2,499,393





1,107,184





842,509





888,854





937,595





1,483,029





982,033



Purchased loan pools

287,859





310,594





325,113





446,677





475,742





307,718





513,750



Total Earning Assets

$

10,138,029





$

7,818,525





$

7,215,742





$

7,202,103





$

6,892,939





$

8,403,042





$

6,610,374































Deposits



























Noninterest-bearing deposits

$

2,320,851





$

1,973,910





$

1,780,738





$

1,805,996





$

1,654,467





$

2,027,145





$

1,624,837



NOW accounts

1,567,111





1,311,952





1,337,718





1,301,628





1,201,151





1,406,434





1,175,143



MMDA

2,440,086





1,950,601





1,970,571





1,964,437





1,682,306





2,122,138





1,597,637



Savings accounts

423,449





295,326





278,080





273,979





278,991





332,817





275,504



Retail CDs < $100,000

744,145





475,965





422,771





433,303





437,641





548,805





441,107



Retail CDs $100,000 and over

978,842





585,632





593,635





592,916





582,598





720,781





553,663



Brokered CDs

487,686





14,132

















169,059







Total Deposits

8,962,170





6,607,518





6,383,513





6,372,259





5,837,154





7,327,179





5,667,891



Non-Deposit Funding



























Federal funds purchased and securities sold

under agreements to repurchase

12,529





14,762





20,909





25,970





19,414





16,036





29,612



FHLB advances

513,460





703,177





371,556





369,076





608,413





529,917





539,496



Other borrowings

145,513





86,302





75,553





75,571





75,590





102,713





66,420



Subordinated deferrable interest debentures

88,801





86,085





85,701





85,372





85,040





86,874





84,712



Total Non-Deposit Funding

760,303





890,326





553,719





555,989





788,457





735,540





720,240



Total Funding

$

9,722,473





$

7,497,844





$

6,937,232





$

6,928,248





$

6,625,611





$

8,062,719





$

6,388,131



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Interest Income and Interest Expense (TE)

























Table 7



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017





























Interest Income



























Federal funds sold

$

72





$





$





$





$





$

72





$



Interest-bearing deposits in banks

1,520





723





716





655





406





2,959





1,070



Time deposits in other banks

61





















61







Investment securities - taxable

8,792





6,321





5,207





5,097





5,062





20,320





15,057



Investment securities - nontaxable (TE)

258





226





408





572





603





892





1,860



Loans held for sale

1,566





1,315





1,210





1,380





1,131





4,091





2,842



Loans (TE)

73,178





63,908





58,771





57,193





53,394





195,857





143,806



Purchased loans

34,692





16,130





11,762





13,150





14,048





62,584





43,986



Purchased loan pools

2,059





2,267





2,424





3,531





3,491





6,750





11,109



Total Earning Assets

$

122,198





$

90,890





$

80,498





$

81,578





$

78,135





$

293,586





$

219,730































Accretion income (included above)

$

3,656





$

2,652





$

1,444





$

2,183





$

2,725





$

7,752





$

8,431































Interest Expense



























Deposits



























Noninterest-bearing deposits

$





$





$





$





$





$





$



NOW accounts

1,142





1,142





953





811





600





3,237





1,617



MMDA

5,885





3,953





3,526





3,288





2,316





13,364





5,862



Savings accounts

82





54





47





46





47





183





135



Retail CDs < $100,000

1,827





907





668





702





684





3,402





1,882



Retail CDs $100,000 and over

3,643





1,670





1,578





1,551





1,489





6,891





3,983



Brokered CDs

3,051





68

















3,119







Total Deposits

15,630





7,794





6,772





6,398





5,136





30,196





13,479



Non-Deposit Funding



























Federal funds purchased and securities sold

under agreements to repurchase

4





5





9





12





11





18





44



FHLB advances

2,745





3,383





1,457





1,180





1,849





7,585





3,994



Other borrowings

2,180





1,320





1,134





1,144





1,183





4,634





2,900



Subordinated deferrable interest debentures

1,522





1,445





1,339





1,307





1,288





4,306





3,764



Total Non-Deposit Funding

6,451





6,153





3,939





3,643





4,331





16,543





10,702



Total Funding

$

22,081





$

13,947





$

10,711





$

10,041





$

9,467





$

46,739





$

24,181































Net Interest Income (TE)

$

100,117





$

76,943





$

69,787





$

71,537





$

68,668





$

246,847





$

195,549



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Yields(1)

























Table 8



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep



2018



2018



2018



2017



2017



2018



2017





























Earning Assets



























Federal funds sold

1.89

%



0.00

%



0.00

%



0.00

%



0.00

%



1.87

%



0.00

%

Interest-bearing deposits in banks

2.13

%



1.92

%



1.97

%



1.41

%



1.47

%



2.02

%



1.14

%

Time deposits in other banks

2.09

%



0.00

%



0.00

%



0.00

%



0.00

%



2.05

%



0.00

%

Investment securities - taxable

3.12

%



3.02

%



2.72

%



2.66

%



2.64

%



2.98

%



2.64

%

Investment securities - nontaxable (TE)

3.24

%



3.40

%



3.41

%



3.86

%



3.93

%



3.36

%



3.94

%

Loans held for sale

4.10

%



3.72

%



3.55

%



3.95

%



3.54

%



3.80

%



3.61

%

Loans (TE)

5.09

%



4.93

%



4.86

%



4.84

%



4.84

%



4.96

%



4.78

%

Purchased loans

5.51

%



5.84

%



5.66

%



5.87

%



5.94

%



5.64

%



5.99

%

Purchased loan pools

2.84

%



2.93

%



3.02

%



3.14

%



2.91

%



2.93

%



2.89

%

Total Earning Assets

4.78

%



4.66

%



4.52

%



4.49

%



4.50

%



4.67

%



4.44

%





























Deposits



























Noninterest-bearing deposits

0.00

%



0.00

%



0.00

%



0.00

%



0.00

%



0.00

%



0.00

%

NOW accounts

0.29

%



0.35

%



0.29

%



0.25

%



0.20

%



0.31

%



0.18

%

MMDA

0.96

%



0.81

%



0.73

%



0.66

%



0.55

%



0.84

%



0.49

%

Savings accounts

0.08

%



0.07

%



0.07

%



0.07

%



0.07

%



0.07

%



0.07

%

Retail CDs < $100,000

0.97

%



0.76

%



0.64

%



0.64

%



0.62

%



0.83

%



0.57

%

Retail CDs $100,000 and over

1.48

%



1.14

%



1.08

%



1.04

%



1.01

%



1.28

%



0.96

%

Brokered CDs

2.48

%



1.93

%



0.00

%



0.00

%



0.00

%



2.47

%



0.00

%

Total Deposits

0.69

%



0.47

%



0.43

%



0.40

%



0.35

%



0.55

%



0.32

%

Non-Deposit Funding



























Federal funds purchased and securities sold

under agreements to repurchase

0.13

%



0.14

%



0.17

%



0.18

%



0.22

%



0.15

%



0.20

%

FHLB advances

2.12

%



1.93

%



1.59

%



1.27

%



1.21

%



1.91

%



0.99

%

Other borrowings

5.94

%



6.13

%



6.09

%



6.01

%



6.21

%



6.03

%



5.84

%

Subordinated deferrable interest debentures

6.80

%



6.73

%



6.34

%



6.07

%



6.01

%



6.63

%



5.94

%

Total Non-Deposit Funding

3.37

%



2.77

%



2.89

%



2.60

%



2.18

%



3.01

%



1.99

%

Total Funding(2)

0.90

%



0.75

%



0.63

%



0.57

%



0.57

%



0.78

%



0.51

%





























Net Interest Spread

3.88

%



3.91

%



3.89

%



3.92

%



3.93

%



3.89

%



3.93

%





























Net Interest Margin(3)

3.92

%



3.95

%



3.92

%



3.94

%



3.95

%



3.93

%



3.96

%





























(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 21% for 2018 and 35% for 2017.









(2) Rate calculated based on total average funding including noninterest-bearing deposits.









(3) Rate calculated based on average earning assets.









 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Non-GAAP Reconciliations











Adjusted Net Income





















Table 9A



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands except per share data)

2018



2018



2018



2017



2017



2018



2017

Net income available to common shareholders

$

41,444





$

9,387





$

26,660





$

9,150





$

20,158





$

77,491





$

64,398































Adjustment items:



























Merger and conversion charges

276





18,391





835





421





92





19,502





494



Executive retirement benefits

962





5,457

















6,419







Restructuring charge

229





















229







Certain compliance resolution expenses













434





4,729









4,729



Accelerated premium amortization on loans sold

from purchased loan pools













456















Financial impact of Hurricane Irma

















410









410



Loss on sale of premises

4





196





583





308





91





783





956



Tax effect of adjustment items (Note 1)

377





(4,192)





(298)





(567)





(1,863)





(4,113)





(2,306)



After tax adjustment items

1,848





19,852





1,120





1,052





3,459





22,820





4,283































Tax expense attributable to remeasurement of

deferred tax assets and deferred tax liabilities at

reduced federal corporate tax rate













13,388











































Adjusted net income

$

43,292





$

29,239





$

27,780





$

23,590





$

23,617





$

100,311





$

68,681































Weighted average number of shares - diluted

47,685,334





39,709,503





38,250,122





37,556,335





37,552,667





41,844,900





37,017,486



Net income per diluted share

$

0.87





$

0.24





$

0.70





$

0.24





$

0.54





$

1.85





$

1.74



Adjusted net income per diluted share

$

0.91





$

0.74





$

0.73





$

0.63





$

0.63





$

2.40





$

1.86































Average assets

$

11,204,504





$

8,529,035





$

7,823,451





$

7,777,996





$

7,461,367





$

9,217,174





$

7,180,330



Return on average assets

1.47

%



0.44

%



1.38

%



0.47

%



1.07

%



1.12

%



1.20

%

Adjusted return on average assets

1.53

%



1.38

%



1.44

%



1.20

%



1.26

%



1.46

%



1.28

%





























Average common equity

$

1,395,479





$

974,494





$

849,346





$

812,264





$

796,856





$

1,094,233





$

756,153



Average tangible common equity

$

837,914





$

679,559





$

659,096





$

672,728





$

656,375





$

726,163





$

614,680



Return on average common equity

11.78

%



3.86

%



12.73

%



4.47

%



10.04

%



9.47

%



11.39

%

Adjusted return on average tangible common

equity

20.50

%



17.26

%



17.09

%



13.91

%



14.28

%



18.47

%



14.94

%





























Note 1:  A portion of the 2Q18 and 3Q18 Merger and conversion charges and the 2Q18 Executive retirement benefits are nondeductible for tax purposes.





























Net Interest Margin Excluding Accretion and

Yield on Total Loans Excluding Accretion





















Table 9B



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017

Total interest income (TE)

$

122,198





$

90,890





$

80,498





$

81,578





$

78,135





$

293,586





$

219,730



Accretion income

3,656





2,652





1,444





2,183





2,725





7,752





8,431



Total interest income (TE) excluding accretion

118,542





88,238





79,054





79,395





75,410





285,834





211,299



Interest expense

22,081





13,947





10,711





10,041





9,467





46,739





24,181



Net interest income (TE) excluding accretion

$

96,461





$

74,291





$

68,343





$

69,354





$

65,943





$

239,095





$

187,118































Yield on total loans (TE) excluding accretion

4.95

%



4.81

%



4.75

%



4.70

%



4.65

%



4.85

%



4.60

%

Net interest margin (TE) excluding accretion

3.77

%



3.81

%



3.84

%



3.82

%



3.80

%



3.80

%



3.78

%

 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Non-GAAP Reconciliations (continued)











Adjusted Efficiency Ratio (TE)





















Table 9C



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017

Adjusted Noninterest Expense



























Total noninterest expense

$

72,353





$

86,386





$

59,098





$

59,337





$

63,767





$

217,837





$

172,599



Adjustment items:



























Merger and conversion charges

(276)





(18,391)





(835)





(421)





(92)





(19,502)





(494)



Executive retirement benefits

(962)





(5,457)

















(6,419)







Restructuring charge

(229)





















(229)







Certain compliance resolution expenses













(434)





(4,729)









(4,729)



Financial impact of Hurricane Irma

















(410)









(410)



Loss on sale of premises

(4)





(196)





(583)





(308)





(91)





(783)





(956)



Adjusted noninterest expense

$

70,882





$

62,342





$

57,680





$

58,174





$

58,445





$

190,904





$

166,010































Total Revenue



























Net interest income

$

99,038





$

75,999





$

68,801





$

69,523





$

66,855





$

243,838





$

190,602



Noninterest income

30,171





31,307





26,464





23,563





26,999





87,942





80,894



Total revenue

$

129,209





$

107,306





$

95,265





$

93,086





$

93,854





$

331,780





$

271,496































Adjusted Total Revenue



























Net interest income (TE)

$

100,117





$

76,943





$

69,787





$

71,537





$

68,668





$

246,847





$

195,549



Noninterest income

30,171





31,307





26,464





23,563





26,999





87,942





80,894



Total revenue (TE)

130,288





108,250





96,251





95,100





95,667





334,789





276,443



Adjustment items:



























Loss (gain) on securities

(48)





123





(37)













38





(37)



Accelerated premium amortization on loans sold

from purchased loan pools













456















Adjusted total revenue (TE)

$

130,240





$

108,373





$

96,214





$

95,556





$

95,667





$

334,827





$

276,406































Efficiency ratio

56.00

%



80.50

%



62.04

%



63.74

%



67.94

%



65.66

%



63.57

%

Adjusted efficiency ratio (TE)

54.42

%



57.53

%



59.95

%



60.88

%



61.09

%



57.02

%



60.06

%





























Tangible Book Value Per Share





















Table 9D



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands except per share data)

2018



2018



2018



2017



2017



2018



2017

Total shareholders' equity

$

1,404,977





$

1,371,896





$

868,944





$

804,479





$

801,921





$

1,404,977





$

801,921



Less:



























Goodwill

505,604





504,764





208,513





125,532





125,532





505,604





125,532



Other intangibles, net

54,729





53,561





12,562





13,496





14,437





54,729





14,437



Total tangible shareholders' equity

$

844,644





$

813,571





$

647,869





$

665,451





$

661,952





$

844,644





$

661,952































Period end number of shares

47,496,966





47,518,662





38,327,081





37,260,012





37,231,049





47,496,966





37,231,049



Book value per share (period end)

$

29.58





$

28.87





$

22.67





$

21.59





$

21.54





$

29.58





$

21.54



Tangible book value per share (period end)

$

17.78





$

17.12





$

16.90





$

17.86





$

17.78





$

17.78





$

17.78



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Segment Reporting





















Table 10



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017





























Banking Division



























Net interest income

$

84,041





$

61,759





$

55,359





$

55,193





$

53,600





$

201,159





$

155,526



Provision for loan losses

1,229





766





888





2,277





1,037





2,883





4,510



Noninterest income

16,524





13,287





13,099





12,442





13,007





42,910





38,974



Noninterest expense



























Salaries and employee benefits

26,120





26,646





22,068





20,100





20,554





74,834





58,757



Occupancy and equipment expenses

7,871





5,684





5,477





5,368





5,384





19,032





16,068



Data processing and telecommunications expenses

7,589





5,611





6,304





6,399





6,357





19,504





18,778



Other noninterest expenses

13,461





29,937





11,080





11,837





14,905





54,478





34,355



Total noninterest expense

55,041





67,878





44,929





43,704





47,200





167,848





127,958



Income before income tax expense

44,295





6,402





22,641





21,654





18,370





73,338





62,032



Income tax expense

11,156





1,716





5,242





18,717





4,850





18,114





17,801



Net income

$

33,139





$

4,686





$

17,399





$

2,937





$

13,520





$

55,224





$

44,231































Retail Mortgage Division



























Net interest income

$

5,544





$

5,046





$

4,997





$

4,876





$

4,265





$

15,587





$

10,711



Provision for loan losses

122





246





217





154





262





585





617



Noninterest income

12,097





13,889





11,585





9,090





12,257





37,571





35,823



Noninterest expense



























Salaries and employee benefits

10,061





10,864





7,742





8,225





9,792





28,667





24,771



Occupancy and equipment expenses

618





545





593





533





555





1,756





1,684



Data processing and telecommunications expenses

347





383





389





429





425





1,119





1,182



Other noninterest expenses

1,828





1,778





1,731





1,230





1,001





5,337





3,030



Total noninterest expense

12,854





13,570





10,455





10,417





11,773





36,879





30,667



Income before income tax expense

4,665





5,119





5,910





3,395





4,487





15,694





15,250



Income tax expense

943





1,075





1,244





1,189





1,475





3,262





5,337



Net income

$

3,722





$

4,044





$

4,666





$

2,206





$

3,012





$

12,432





$

9,913































Warehouse Lending Division



























Net interest income

$

2,469





$

2,326





$

1,855





$

1,983





$

1,535





$

6,650





$

3,894



Provision for loan losses













27





215









159



Noninterest income

503





735





397





399





583





1,635





1,340



Noninterest expense



























Salaries and employee benefits

136





128





138





127





129





402





403



Occupancy and equipment expenses

2













1





1





2





3



Data processing and telecommunications expenses

30





30





33





18





28





93





80



Other noninterest expenses

69





55





52





26





51





176





137



Total noninterest expense

237





213





223





172





209





673





623



Income before income tax expense

2,735





2,848





2,029





2,183





1,694





7,612





4,452



Income tax expense

574





598





426





763





580





1,598





1,559



Net income

$

2,161





$

2,250





$

1,603





$

1,420





$

1,114





$

6,014





$

2,893



 

 

AMERIS BANCORP AND SUBSIDIARIES

FINANCIAL TABLES



Segment Reporting (continued)





















Table 10



Three Months Ended



Nine Months Ended



Sep



Jun



Mar



Dec



Sep



Sep



Sep

(dollars in thousands)

2018



2018



2018



2017



2017



2018



2017





























SBA Division



























Net interest income

$

1,459





$

1,320





$

924





$

971





$

981





$

3,703





$

2,773



Provision for loan losses

41





447





537





(209)





(1)





1,025





98



Noninterest income

1,045





1,349





1,370





1,614





1,130





3,764





4,663



Noninterest expense



























Salaries and employee benefits

682





736





740





787





858





2,158





2,339



Occupancy and equipment expenses

58





55





58





56





54





171





159



Data processing and telecommunications expenses

1





9





9





9





9





19





12



Other noninterest expenses

210





290





236





205





63





736





533



Total noninterest expense

951





1,090





1,043





1,057





984





3,084





3,043



Income before income tax expense

1,512





1,132





714





1,737





1,128





3,358





4,295



Income tax expense

317





238





150





608





394





705





1,503



Net income

$

1,195





$

894





$

564





$

1,129





$

734





$

2,653





$

2,792































Premium Finance Division



























Net interest income

$

5,525





$

5,548





$

5,666





$

6,500





$

6,474





$

16,739





$

17,698



Provision for loan losses

703





7,651





159





287





274





8,513





444



Noninterest income

2





2,047





13





18





22





2,062





94



Noninterest expense



























Salaries and employee benefits

1,447





1,402





1,401





1,268





1,250





4,250





3,239



Occupancy and equipment expenses

49





106





70





52





42





225





145



Data processing and telecommunications expenses

551





406





400





364





231





1,357





598



Other noninterest expenses

1,223





1,721





577





2,303





2,078





3,521





6,326



Total noninterest expense

3,270





3,635





2,448





3,987





3,601





9,353





10,308



Income before income tax expense

1,554





(3,691)





3,072





2,244





2,621





935





7,040



Income tax expense

327





(1,204)





644





786





843





(233)





2,471



Net income

$

1,227





$

(2,487)





$

2,428





$

1,458





$

1,778





$

1,168





$

4,569































Total Consolidated



























Net interest income

$

99,038





$

75,999





$

68,801





$

69,523





$

66,855





$

243,838





$

190,602



Provision for loan losses

2,095





9,110





1,801





2,536





1,787





13,006





5,828



Noninterest income

30,171





31,307





26,464





23,563





26,999





87,942





80,894



Noninterest expense



























Salaries and employee benefits

38,446





39,776





32,089





30,507





32,583





110,311





89,509



Occupancy and equipment expenses

8,598





6,390





6,198





6,010





6,036





21,186





18,059



Data processing and telecommunications expenses

8,518





6,439





7,135





7,219





7,050





22,092





20,650



Other noninterest expenses

16,791





33,781





13,676





15,601





18,098





64,248





44,381



Total noninterest expense

72,353





86,386





59,098





59,337





63,767





217,837





172,599



Income before income tax expense

54,761





11,810





34,366





31,213





28,300





100,937





93,069



Income tax expense

13,317





2,423





7,706





22,063





8,142





23,446





28,671



Net income

$

41,444





$

9,387





$

26,660





$

9,150





$

20,158





$

77,491





$

64,398



 

 

Cision View original content:http://www.prnewswire.com/news-releases/ameris-bancorp-announces-record-earnings-for-third-quarter-2018-300734128.html

SOURCE Ameris Bancorp

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