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Ameris Bancorp Reports Net Income
for First Quarter 2008
MOULTRIE, Ga., April 17 /PRNewswire-FirstCall/ -- AMERIS BANCORP (
NASDAQ:ABCB
) , Moultrie, Georgia, reported net income of $3.0 million, or $0.22 per
share, for the quarter ended March 31, 2008, compared to net income for
the same quarter in 2007 of $5.0 million, or $0.37 per share. Several
issues combined to cause the decrease in earnings, including continued
pressure on credit quality and slightly lower net interest margins.
Margin Pressures are Lessening and Spreads are Improving
The Company's net interest margin for the first quarter of
2008 declined only 0.01% to 3.91%, when compared to the fourth quarter of
2007. Lower short-term interest rates and a steeper yield curve are
providing the Company with pricing opportunities that have not been
available in recent years. Profitability related to the Company's lending
activities has improved as spreads to prime and certain treasury
benchmarks have increased over historically thin levels seen in recent
years. Loan yields decreased to 7.56% in the first quarter of 2008,
compared to 8.59% in the first quarter of 2007 mainly due to rapid
decreases in benchmark interest rates since October 2007. At the end of
the first quarter, yields on the Company's variable loan portfolio had
decreased to 6.34%, compared to 8.78% for the same quarter of 2007. When
compared to the first quarter of 2007, yields on fixed rate loans in the
first quarter of 2008 remained unchanged at 8.03%. Fixed rate loans
account for approximately 47.5% of the total portfolio.
The Company has also taken advantage of opportunities to
improve its cost of funds during the recent fall in short-term interest
rates. Total cost of funds decreased to 3.30% in the first quarter of
2008, compared to 3.79% in the same quarter of 2007. Declining yields on
deposit costs were realized across the board, but mostly in time deposits
where the yield fell to 4.78% in the first quarter of 2008, compared to
5.03% in the same quarter of 2007. When compared to the fourth quarter of
2007, time deposit yields declined from 5.09% as renewal activity on time
deposits only recently started producing meaningful savings.
Repricing opportunities on non-deposit funding presented
greater cost saving opportunities during the quarter. Yields on
non-deposit funding dropped from 5.68% in the first quarter of 2007 to
3.81% in the first quarter of 2008. Additional savings are expected in
coming quarters due to significant repricing on additional non-deposit
funding which occurred at the end of the first quarter.
Operating Income and Operating Expense Trends
Non-interest income increased 8.1% to $4.8 million during
the first quarter of 2008 when compared to the same quarter in 2007. The
Company's low- cost deposit campaign produced a significant increase in
the number of checking accounts which are subject to various charges. As a
result, service charges increased 15.3% to $3.3 million compared to $2.9
million in the first quarter of 2007. Income from mortgage loan activities
increased substantially as a result of significant hiring and training
efforts in the last half of 2007. Mortgage income increased to $869,000,
an increase of 27.2% over the first quarter of 2007. The Company's
mortgage lending activities do not subject the Company to higher levels of
risk, as all loans are closed with guaranteed takeouts and are
underwritten by the purchaser.
Operating expense increased during the quarter by $1.1
million or 7.4% to $15.6 million when compared to the same quarter in
2007. Increases in salaries and benefits were responsible for most of the
increase and were the result of continued expansion in South Carolina and
growth in the Company's mortgage unit. Total salaries and benefits
increased 10.4% during the first quarter of 2008, to $8.6 million when
compared to the first quarter of 2007. Equipment and occupancy expense
increased during the quarter by 13.2% to $2.0 million when compared to the
first quarter of 2007. These increases are also related to the quick
build-out of branch infrastructure and staffing levels necessary for the
South Carolina expansion, which accelerated in the second half of 2007.
While hiring efforts and branch acquisition efforts continue, the Company
expects earlier activity to move closer to breaking even or becoming
profitable. While meaningful accretion to profitability levels and
earnings is not expected for several quarters, the Company does not
foresee additional dilution to profitability and earnings.
Provision for Loan Losses and Credit Quality
The Company's provision for loan losses during the quarter
amounted to $3.2 million, a significant increase over the $507,000
recorded in the first quarter of 2007. These historically high levels of
provision for loan losses reflect deterioration in loans and underlying
real estate collateral primarily in northern Florida as well as aggressive
write-downs to facilitate the liquidation of non-performing assets. The
Company's exposure to large individual loans is limited and the portfolio
is diversified over four states and more than twenty distinct communities,
however certain markets have experienced severe slowdowns in real estate
activity that has stressed certain borrowers.
Non-performing assets increased $6.6 million during the
quarter to $32.5 million from the fourth quarter of 2007. During the
quarter, the Company disposed of $6.6 million in other real estate owned
(OREO) but foreclosed on an additional $4.7 million. While non-performing
assets as a percentage of loans increased to 2.00% at the end of the
quarter, binding contracts with sufficient earnest money exists on
approximately 18.5% of the quarter ending non-performing assets.
Balance Sheet Growth and Capital Levels
Total loans increased during the quarter by minimal levels
as new loan production was sufficient to counter the Company's efforts in
reducing exposure in construction and development loans, as well as other
criticized assets. Total loans increased to $1.62 billion, a 9.9% increase
over the first quarter of 2007, but an increase of only 0.52% when
compared to December 31, 2007. Deposits also grew at slower paces than
seen in recent periods as anticipated slow growth in loans allowed for
tighter deposit pricing. In addition, focus on growing banking
relationships with customers has reduced pressure on the Company's bankers
to retain higher priced deposit accounts leading to additional decreases
in balances. Total deposits increased 4.2% to $1.78 billion when compared
to the first quarter of 2007. Demand deposits (non-interest bearing and
interest bearing) increased 6.6% to $804.1 million while time deposits
increased 1.8% to $890.7 million when compared to the first quarter of
2007.
Slower growth in total loans and assets for several
quarters has strengthened the Company's tangible capital levels. Tangible
capital at the holding company level increased from $122.6 million and
6.19% of tangible assets at March 31, 2007, to $137.1 million and 6.66% at
March 31, 2008. Ameris Bank's total risk based capital ratio decreased
from 12.16% at March 31, 2007 to approximately 11.79% at March 31, 2008.
Minimum standards to remain "well-capitalized" indicate that the
Bank has excess capital of approximately $29 million at March 31, 2008.
Ameris Bancorp is headquartered in Moultrie, Georgia, and has 45 locations
in Georgia, Alabama, northern Florida and South Carolina.
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept.
2008 2007 2007
EARNINGS
Net Income $2,966 $1,196 $3,561
PER COMMON SHARE DATA
Earnings per share:
Basic 0.22 0.09 0.26
Diluted 0.22 0.09 0.26
Cash Dividends per share 0.14 0.14 0.14
Book value per share (period end) 14.48 14.12 13.93
Tangible book value per share
(period end) 10.11 9.72 9.51
Weighted average number of shares:
Basic 13,550,744 13,485,765 13,501,663
Diluted 13,559,761 13,573,626 13,620,069
Period-end number of shares 13,556,770 13,539,985 13,539,195
Market data:
High closing price 16.41 18.67 23.05
Low closing price 12.49 13.73 17.72
Period end closing price 16.06 16.85 18.08
Average daily volume 61,780 51,604 50,547
PERFORMANCE RATIOS
Return on average assets 0.56% 0.23% 0.68%
Return on average equity 6.15% 2.48% 7.54%
Earning asset yield (TE) 7.17% 7.66% 7.90%
Total cost of funds 3.30% 3.79% 3.90%
Net interest margin (TE) 3.91% 3.92% 4.06%
Non-interest income excluding
securities transactions,
as a percent of total revenue (TE) 12.32% 8.76% 10.48%
Efficiency ratio 67.12% 66.34% 63.97%
CAPITAL ADEQUACY
Equity to assets 9.27% 9.06% 8.96%
Tangible common equity to assets 6.66% 6.41% 6.30%
OTHER PERIOD-END DATA
FTE Headcount 634 620 621
Assets per FTE $3,341 $3,407 $3,390
Branch locations 45 46 47
Deposits per branch location $39,651 $38,201 $36,345
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
June Mar.
2007 2007
EARNINGS
Net Income $5,372 $5,024
PER COMMON SHARE DATA
Earnings per share:
Basic 0.40 0.37
Diluted 0.39 0.37
Cash Dividends per share 0.14 0.14
Book value per share (period end) 13.60 13.51
Tangible book value per share
(period end) 9.16 9.06
Weighted average number of shares:
Basic 13,485,683 13,443,850
Diluted 13,663,072 13,667,509
Period-end number of shares 13,541,476 13,527,520
Market data:
High closing price 25.58 27.73
Low closing price 21.76 23.11
Period end closing price 22.47 24.33
Average daily volume 38,941 41,130
PERFORMANCE RATIOS
Return on average assets 1.06% 1.01%
Return on average equity 11.64% 11.22%
Earning asset yield (TE) 7.80% 7.89%
Total cost of funds 3.84% 3.79%
Net interest margin (TE) 4.03% 4.13%
Non-interest income excluding
securities transactions,
as a percent of total revenue (TE) 11.10% 11.14%
Efficiency ratio 59.83% 63.15%
CAPITAL ADEQUACY
Equity to assets 8.97% 8.96%
Tangible common equity to assets 6.23% 6.19%
OTHER PERIOD-END DATA
FTE Headcount 604 600
Assets per FTE $3,398 $3,401
Branch locations 46 46
Deposits per branch location $36,859 $37,236
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept. June Mar.
2008 2007 2007 2007 2007
INCOME STATEMENT
Interest income
Interest and fees on loans $30,133 $32,999 $33,471 $31,565 $30,835
Interest on taxable
securities 3,583 3,576 3,628 3,539 3,427
Interest on nontaxable
securities 172 158 175 176 179
Interest on deposits in
other banks 200 259 332 669 1,046
Interest on federal funds
sold - (20) (15) (10) 87
Total interest income 34,089 36,972 37,591 35,940 35,574
Interest expense
Interest on deposits 14,141 15,620 15,945 15,611 15,204
Interest on other
borrowings 1,487 2,367 2,493 1,973 1,786
Total interest expense 15,629 17,987 18,438 17,583 16,990
Net interest income 18,460 18,984 19,153 18,356 18,583
Provision for loan losses 3,200 6,914 2,964 936 507
Net interest income after
provision for loan losses 15,260 12,071 16,189 17,420 18,076
Noninterest income
Service charges on deposit
accounts 3,315 3,310 3,199 3,071 2,874
Mortgage banking activity 869 827 783 800 683
Other service chares,
commissions and fees 278 942 230 460 345
Gain(loss) on sale of
securities - (236) (69) 8 -
Other non-interest income 379 (677) 277 187 577
Total noninterest income 4,842 4,166 4,420 4,525 4,479
Noninterest expense
Salaries and employee
benefits 8,618 7,122 7,430 7,485 7,807
Equipment and occupancy
expense 1,992 2,118 1,850 1,811 1,760
Amortization of intangible
assets 293 324 324 324 324
Data Processing Fees 604 598 607 581 793
Business Restructuring - - - - -
Other operating expenses 4,133 5,398 4,868 3,489 3,878
Total noninterest expense 15,640 15,560 15,079 13,690 14,563
Operating Profit 4,462 676 5,530 8,255 7,992
Provision for income taxes 1,496 (520) 1,968 2,884 2,968
Net Income $2,966 $1,196 $3,561 $5,372 $5,024
Diluted earnings per share 0.22 0.09 0.26 0.39 0.37
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept.
2008 2007 2007
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks $63,401 $59,804 $58,634
Federal funds sold and interest
bearing balances 4,389 12,022 22,910
Securities available for sale, at
fair value 297,589 291,170 301,978
Restricted equity securities, at
cost 6,996 7,559 8,729
Loans, net of unearned income 1,622,437 1,614,048 1,593,014
Less allowance for loan losses 28,094 27,640 26,434
Loans, net 1,594,343 1,586,408 1,566,581
Premises and equipment, net 60,053 59,133 54,639
Intangible assets, net 4,509 4,802 5,126
Goodwill 54,675 54,813 54,675
Other assets 32,288 36,353 31,923
Total Assets $2,118,243 $2,112,064 $2,105,194
Liabilities
Deposits:
Noninterest-bearing $199,692 $197,345 $185,803
Interest-bearing 1,584,599 1,559,920 1,522,405
Total deposits 1,784,291 1,757,265 1,708,208
Federal funds purchased & securities
sold under agreements to repurchase 4,987 14,705 32,359
Other borrowings 74,500 90,500 116,500
Other liabilities 15,887 16,076 17,262
Subordinated deferrable interest
debentures 42,269 42,269 42,269
Total liabilities 1,921,935 1,920,815 1,916,598
Stockholders' equity
Common stock 14,887 14,870 14,869
Capital surplus 82,920 82,732 82,308
Retained earnings 104,182 103,113 103,803
Accumulated other comprehensive loss 5,093 1,303 (1,616)
Less treasury stock (10,773) (10,769) (10,769)
Total stockholders' equity 196,308 191,249 188,596
Total liabilities and
stockholders' equity $2,118,243 $2,112,064 $2,105,194
Other Data
Earning Assets 1,924,415 1,917,240 1,917,902
Intangible Assets 59,184 59,615 59,801
Interest bearing liabilities 1,706,355 1,707,394 1,713,533
Average Assets 2,115,561 2,102,579 2,069,715
Average Stockholders' Equity 193,971 191,124 187,290
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
June Mar.
2007 2007
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks $50,679 $49,967
Federal funds sold and interest
bearing balances 16,342 94,364
Securities available for sale, at
fair value 300,642 300,322
Restricted equity securities, at cost 8,234 6,884
Loans, net of unearned income 1,556,862 1,475,869
Less allowance for loan losses 25,032 25,113
Loans, net 1,531,831 1,450,756
Premises and equipment, net 52,385 47,251
Intangible assets, net 5,450 5,775
Goodwill 54,629 54,419
Other assets 31,924 31,154
Total Assets $2,052,115 $2,040,892
Liabilities
Deposits:
Noninterest-bearing $198,428 $196,625
Interest-bearing 1,497,109 1,516,208
Total deposits 1,695,536 1,712,833
Federal funds purchased & securities
sold under agreements to repurchase 6,966 5,370
Other borrowings 105,500 75,500
Other liabilities 17,745 22,156
Subordinated deferrable interest
debentures 42,269 42,269
Total liabilities 1,868,016 1,858,128
Stockholders' equity
Common stock 14,868 14,850
Capital surplus 82,019 81,620
Retained earnings 102,124 98,631
Accumulated other comprehensive loss (4,231) (1,744)
Less treasury stock (10,681) (10,593)
Total stockholders' equity 184,099 182,764
Total liabilities and
stockholders' equity $2,052,115 $2,040,892
Other Data
Earning Assets 1,873,846 1,870,555
Intangible Assets 60,079 60,194
Interest bearing liabilities 1,651,844 1,639,347
Average Assets 2,030,018 2,014,040
Average Stockholders' Equity 185,177 181,645
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept. June Mar.
2008 2007 2007 2007 2007
ASSET QUALITY INFORMATION
Allowance for loan losses
Balance at beginning of
period $27,640 $26,434 $25,032 $25,113 $24,863
Acquired Reserves - - - - -
Provision for loan loss 3,200 6,914 2,964 936 507
Charge-offs 2,945 6,499 1,806 1,327 787
Recoveries 199 791 244 309 530
Net charge-offs
(recoveries) 2,746 5,708 1,562 1,018 257
Ending balance $28,094 $27,640 $26,434 $25,032 $25,113
As a percentage of loans 1.73% 1.71% 1.66% 1.61% 1.70%
As a percentage of
nonperforming loans 104.78% 145.72% 135.81% 154.51% 282.46%
As a percentage of
nonperforming assets 86.34% 106.47% 120.37% 136.90% 252.93%
Net Charge-off information
Charge-offs
Commercial, mortgage,
financial & agricultural $2,058 $6,069 $1,358 $959 $353
Consumer 272 406 423 82 146
Residential Mortgage 615 24 25 286 288
Total charge-offs 2,945 6,499 1,806 1,327 787
Recoveries
Commercial, mortgage,
financial & agricultural 84 649 142 192 357
Consumer 91 122 70 100 121
Residential Mortgage 24 20 31 17 51
Total recoveries 199 791 244 309 530
Net charge-offs
(recoveries) $2,746 $5,708 $1,562 $1,018 $257
Non-accrual loans 26,812 18,968 19,464 16,201 8,891
Foreclosed assets 5,727 6,993 2,497 2,084 1,038
Total non-performing assets 32,539 25,961 21,961 18,285 9,929
Non-performing assets as a
percent of loans
and foreclosed assets 2.00% 1.60% 1.38% 1.17% 0.67%
Net charge offs as a percent
of loans (Annualized) 0.68% 1.41% 0.39% 0.26% 0.07%
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept.
2008 2007 2007
AVERAGE BALANCES
Short term assets $23,480 $21,827 $26,212
Investment securities 291,708 297,380 299,925
Loans 1,617,991 1,605,006 1,569,906
Total Earning Assets 1,933,179 1,924,212 1,896,044
Noninterest bearing deposits 191,860 187,908 190,316
Interest bearing deposits 612,212 596,053 575,415
Savings 54,221 55,305 58,778
CDs 890,668 886,116 870,731
Deposits 1,748,961 1,725,383 1,695,239
FHLB advances 97,162 105,570 110,056
Subordinated debentures 42,269 42,269 42,269
Other borrowings 17,490 22,298 18,878
Total non-deposit funding 156,921 170,137 171,203
Total funding $1,905,882 $1,895,520 $1,866,442
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
June Mar.
2007 2007
AVERAGE BALANCES
Short term assets $49,200 $85,297
Investment securities 301,848 292,979
Loans 1,511,333 1,458,725
Total Earning Assets 1,862,381 1,837,001
Noninterest bearing deposits 192,298 199,779
Interest bearing deposits 572,400 554,530
Savings 61,733 62,933
CDs 866,589 875,003
Deposits 1,693,020 1,692,245
FHLB advances 83,109 71,547
Subordinated debentures 42,269 42,269
Other borrowings 10,688 13,834
Total non-deposit funding 136,066 127,650
Total funding $1,829,086 $1,819,895
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept. June Mar.
2008 2007 2007 2007 2007
INTEREST INCOME/EXPENSE
Short term assets $193 $239 $317 $659 $1,133
Investment securities (TE) 3,842 3,818 3,897 3,705 3,702
Loans (TE) 30,409 33,078 33,552 31,861 30,885
Total Earning Assets 34,444 37,135 37,767 36,225 35,720
Noninterest bearing
deposits - - - - -
Interest bearing deposits 3,450 4,238 4,577 4,393 4,183
Savings 118 142 154 163 164
CDs 10,575 11,379 11,146 10,983 10,858
Deposits 14,143 15,759 15,877 15,539 15,204
FHLB advances 653 1,299 1,461 1,084 888
Subordinated debentures 686 832 811 768 754
Other borrowings 148 237 221 120 144
Total non-deposit
funding 1,487 2,367 2,493 1,973 1,786
Total funding $15,630 $18,126 $18,370 $17,512 $16,991
Net Interest Income (TE) $18,814 $19,009 $19,397 $18,713 $18,729
AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
Three Months Ended
Mar. Dec. Sept. June Mar.
2008 2007 2007 2007 2007
YIELDS (1)
Short term assets 3.31% 4.34% 4.80% 5.37% 5.39%
Investment securities 5.30% 5.09% 5.16% 4.92% 5.12%
Loans 7.56% 8.18% 8.48% 8.46% 8.59%
Total Earning Assets (2) 7.17% 7.66% 7.90% 7.80% 7.89%
Noninterest bearing deposits
Interest bearing deposits 2.27% 2.82% 3.16% 3.08% 3.06%
Savings 0.88% 1.02% 1.04% 1.06% 1.06%
CDs 4.78% 5.09% 5.08% 5.08% 5.03%
Deposits 3.25% 3.62% 3.72% 3.68% 3.64%
FHLB advances 2.70% 4.88% 5.27% 5.23% 5.03%
Subordinated debentures 6.53% 7.81% 7.61% 7.29% 7.23%
Other borrowings 3.40% 4.21% 4.64% 4.50% 4.24%
Total non-deposit funding 3.81% 5.52% 5.78% 5.81% 5.68%
Total funding (3) 3.30% 3.79% 3.90% 3.84% 3.79%
Net interest spread 3.87% 3.86% 4.00% 3.96% 4.10%
Net interest margin 3.91% 3.92% 4.06% 4.03% 4.13%
(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.
Source: Ameris Bancorp
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