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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20051117/CLTH039LOGO )
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.
***********************************************************************
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.
http://www.newscom.com/cgi-bin/prnh/20051117/CLTH039LOGO
http://photoarchive.ap.org/ DATASOURCE: Ameris Bancorp CONTACT:
Dennis J. Zember Jr., Executive Vice President & CFO, +1-229-
890-1111 Web site: http://www.amerisbank.com/
Copyright