Ameris Bancorp - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - Ameris Bancorp	d340101d8k.htm

Exhibit 99.1

LOGO

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS NET INCOME

AND IMPROVEMENT IN NON-PERFORMING ASSETS FOR FIRST QUARTER 2012

April 24, 2012

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported net income available to common shareholders of $4.6 million, or $0.19 per diluted share, for the quarter ended March 31, 2012, compared to $580,000, or $0.02 per diluted share, for the quarter ended March 31, 2011. Highlights of the results of the first quarter of 2012 include:

•

The Company successfully completed its ninth FDIC-assisted transaction

•

The first quarter represented the 6th consecutive quarter of profitability for the Company

•

Non-performing assets declined 29% from March 31, 2011 and 24% from December 31, 2011

•

Legacy classified loans decreased $17.4 million, or 17%, from December 31, 2011

•

“In-migration” of new legacy problem loans amounted to $12.5 million, compared to $24.1 million in the fourth quarter of 2011.

•

The Company’s net interest margin was 4.48%

•

Tangible common equity as a percentage of tangible assets improved to 7.95%

Reconciliation of Operating Results

Included in the Company’s results for the first quarter of 2012 were several items that are considered non-recurring. The gain associated with the purchase of the assets of Central Bank of Georgia totaled $20.0 million before tax. Offsetting this gain were losses associated with the bulk sale of problem assets totaling $11.7 million before tax and additional write-downs on other real estate that the Company anticipates selling in the second quarter totaling $2.6 million before tax. Net of these non-recurring items, net income available to common shareholders would have been $591,000, or $0.02 per diluted share, for the first quarter of 2012.

Credit Quality

During the first quarter of 2012, the Company successfully sold $31.2 million of non-performing and classified assets through several individual transactions. Through these sales, the Company sold $16.1 million in non-performing loans, $13.3 million in other real estate owned and $1.8 million in classified accruing loans. Losses associated with the sales totaled $16.1 million. Commenting on the declines in non-performing assets, Edwin W. Hortman, Jr., the Company’s President and Chief Executive Officer, said, “During the quarter, we experienced a 23.6% decline in non-performing assets and still increased tangible book value through net earnings. I believe our carrying values on the remaining non-performing assets are attractive enough that we can see continued reduction in the second quarter and position the Company for a second half of 2012 where credit costs are noticeably lower.”

“In-migration” of new legacy problem loans amounted to $12.5 million, or 0.9% of legacy loans, compared to $14.0 million and $24.1 million in the third and fourth quarters of 2011, respectively. Forty percent of the new problem loans for the first quarter of 2012 were in one business relationship that resolved its problem loan status with the sale of the business shortly after the quarter ended.

Net charge-offs on loans during the first quarter of 2012 increased to $19.1 million, compared to $8.3 million during the fourth quarter of 2011 and $6.2 million during the first quarter of 2011. Increased levels of charge-offs relate almost entirely to the Company’s bulk sale of non-performing loans. Excluding amounts charged-off in the bulk sale, the Company’s net charge-offs would have been $8.7 million, or 2.65% of average loans on an annualized basis. The Company’s provision for loan losses during the first quarter of 2012 amounted to $12.9 million, an increase of $3.9 million as compared to the $9.0 million posted in the fourth quarter of 2011. At March 31, 2012, the Company’s loan loss allowance totaled $28.7 million, or 2.17% of legacy loans, compared to $35.2 million, or 2.64% of legacy loans, at the end of 2011.

Balance Sheet Trends

Total assets at March 31, 2012 were $3.04 billion, a 1.6% increase as compared to the $2.99 billion reported at December 31, 2011. Earning assets grew $73.9 million to $2.56 billion at March 31, 2012. Short-term assets declined as a percentage of earning assets to 10.1%, compared to 11.9% at December 31, 2011 and 14.5% at March 31, 2011.

Total loans outstanding increased $73.6 million during the first quarter of 2012, to $1.98 billion at March 31, 2012, from $1.90 billion at December 31, 2011. During the first quarter, covered loans acquired in FDIC-assisted transactions increased by $81.9 million due to the purchase of the assets of Central Bank of Georgia. Legacy loans declined slightly to $1.32 billion at March 31, 2012, compared to $1.33 billion at December 31, 2011.

Total deposits grew $73.8 million during the first quarter of 2012, from $2.59 billion at December 31, 2011 to $2.67 billion at March 31, 2012. Non-interest bearing deposits increased $49.4 million, accounting for 66.9% of the increase in total deposits. Time deposits decreased by $28.8 million, or 3.2%. Non-interest bearing deposits grew to 16.7% of total deposits at March 31, 2012, compared to 12.3% at the same time in 2011. Time deposits continued to decline as a funding source for the Company and at March 31, 2012 were 33.0% of total deposits, down from 40.5% at March 31, 2011.

Net Interest Income and Net Interest Margin

Net interest income during the first quarter of 2012 totaled $27.7 million, an increase of $3.5 million, or 14.5%, compared to the $24.2 million reported for first quarter of 2011. The Company’s net interest margin was 4.48% during the first quarter of 2012, compared to 4.04% during the same quarter in 2011.

Improvement in the earning asset mix and growth in total earning assets contributed to the higher margin and higher levels of net interest income. The yield on earning assets in the first quarter of 2012 was 5.22%, compared to 5.35% in the same quarter of 2011. The Company’s cost of funds saw a significant improvement in the first quarter of 2012, as it decreased from 1.22% in the first quarter of 2011 and 0.80% in the fourth quarter of 2011 to 0.69% in the first quarter of 2012. Total deposit costs declined from 0.74% in the fourth quarter of 2011 to 0.63% in the first quarter of 2012. Growth in the percentage of low cost deposits as a share of total deposits and continued declines in time deposit costs contributed to the declines.

Non-Interest Income and Expense

During the first quarter of 2012, the Company reported a $20.0 million pre-tax gain on the acquisition of the assets of Central Bank of Georgia. Exclusive of that gain, total non-interest income for the first quarter of 2012 increased 16.7% to $7.2 million from $6.2 million reported in the first quarter of 2011. Income from mortgage-related activities continued to increase as a result of the Company’s increased numbers of mortgage bankers and higher levels of production.

Increases in service charges were smaller, growing from $4.27 million in the first quarter of 2011 to $4.39 million in the first quarter of 2012. Much of the growth in service charges over the past few years has related to the growth in lower cost deposits and checking accounts versus higher fee schedules.

Non-interest expenses increased from $21.2 million in the first quarter of 2011 to $34.2 million in the first quarter of 2012. Salaries and employee benefits increased from $9.8 million in the first quarter of 2011 to $10.7 million in the fourth quarter of 2011 and $11.4 million in the first quarter of 2012. The majority of the increase in the most recent quarter resulted from the reinstatement of certain foregone compensation (including incentive accruals and board fees) totaling approximately $433,000 and from approximately $225,000 of compensation associated with Central Bank of Georgia.

Occupancy and equipment expense increased during the quarter from $2.7 million in the first quarter of 2011 to $3.3 million in the first quarter of 2012. Increases in occupancy and equipment over the same period in 2011 relate to eight additional branches acquired in FDIC transactions over the past year. These increases were mostly offset by decreases in data processing and telecommunications expense that resulted from renegotiation of the Company’s contract with its core service provider, as well as other synergies from recent conversions. Total data processing and telecommunications expenses in the first quarter of 2012 were $1.9 million, compared to $2.4 million in the first quarter of 2011.

Credit-related expenses in the first quarter of 2012 totaled $12.7 million, a significant increase from the same quarter in 2011. The majority of the non-provision credit costs related to the Company’s bulk sale in the first quarter of 2012, which totaled $8.4 million.

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter had 67 locations in Georgia, Alabama, northern Florida and South Carolina.

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 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 and are referred to the Company’s periodic filings with the Securities and Exchange Commission for a summary of certain factors that may impact the Company’s results of operations and financial condition.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar. 2012			Dec. 2011			Sept. 2011			Jun. 2011			Mar. 2011
EARNINGS
Net Income/(Loss) Available to Common Shareholders	$	4,550		$	322		$	15,643		$	1,307		$	580
PER COMMON SHARE DATA
Earnings per share available to common shareholders:
Basic	$	0.19		$	0.01		$	0.67		$	0.06		$	0.02
Diluted	$	0.19		$	0.01		$	0.66		$	0.06		$	0.02
Cash Dividends per share	$	—		$	—		$	—		$	—		$	—
Stock dividend		—			—			—			—			—
Book value per share (period end)	$	10.36		$	10.23		$	10.27		$	9.54		$	9.41
Tangible book value per share (period end)	$	10.15		$	10.06		$	10.08		$	9.34		$	9.20
Weighted average number of shares:
Basic		23,762,196			23,457,739			23,438,335			23,449,123			23,440,201
Diluted		23,916,421			23,611,964			23,559,063			23,508,419			23,474,424
Period-end number of shares		23,814,144			23,751,294			23,742,794			23,766,044			23,766,044
Market data:
High closing price	$	13.32		$	10.66		$	10.30		$	10.16		$	11.10
Low closing price	$	10.34		$	8.55		$	8.47		$	8.49		$	9.32
Period end closing price	$	13.14		$	10.28		$	8.71		$	8.87		$	10.16
Average daily volume		59,139			68,654			71,955			58,706			46,618
PERFORMANCE RATIOS
Return on average assets		0.72	%		0.15	%		2.14	%		0.29	%		0.19	%
Return on average common equity		8.89	%		1.82	%		28.55	%		3.69	%		2.51	%
Earning asset yield (TE)		5.22	%		6.07	%		5.55	%		5.98	%		5.35	%
Total cost of funds		0.69	%		0.80	%		1.02	%		1.10	%		1.22	%
Net interest margin (TE)		4.48	%		5.21	%		4.44	%		4.79	%		4.04	%
Non-interest income excluding securities transactions, as a percent of total revenue (TE) ⁽¹⁾		12.15	%		14.81	%		10.26	%		14.15	%		15.49	%
Efficiency ratio		62.28	%		72.76	%		47.75	%		65.08	%		69.59	%
CAPITAL ADEQUACY (period end)
Stockholders’ equity to assets		9.78	%		9.81	%		9.78	%		9.70	%		9.38	%
Tangible common equity to tangible assets		7.95	%		7.99	%		7.96	%		7.78	%		7.51	%
EQUITY TO ASSETS RECONCILIATION
Tangible common equity to tangible assets		7.95	%		7.99	%		7.96	%		7.78	%		7.51	%
Effect of preferred equity		1.67	%		1.69	%		1.68	%		1.76	%		1.72	%
Effect of goodwill and other intangibles		0.16	%		0.13	%		0.14	%		0.15	%		0.16	%

Equity to assets (GAAP)		9.78	%		9.81	%		9.78	%		9.70	%		9.38	%

OTHER PERIOD-END DATA
FTE Headcount		827			746			730			690			691
Assets per FTE	$	3,680		$	4,014		$	4,124		$	4,141		$	4,223
Branch locations		67			62			62			59			59
Deposits per branch location	$	39,781		$	41,799		$	42,401		$	42,565		$	43,605

(1)	Includes gain from acquisition.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.		Dec.		Sept.		Jun.		Mar.
	2012		2011		2011		2011		2011
INCOME STATEMENT
Interest income
Interest and fees on loans	$	29,482	$	35,361	$	31,633	$	32,876	$	28,971
Interest on taxable securities		2,309		2,350		2,672		2,574		2,658
Interest on nontaxable securities		365		357		330		314		320
Interest on deposits in other banks		120		148		144		150		175
Interest on federal funds sold		6		7		9		9		13

Total interest income		32,282		38,223		34,788		35,923		32,137

Interest expense
Interest on deposits	$	4,084	$	4,875	$	6,431	$	6,825	$	7,375
Interest on other borrowings		471		580		555		351		555

Total interest expense		4,555		5,455		6,986		7,176		7,930

Net interest income		27,727		32,768		27,802		28,747		24,207
Provision for loan losses		12,882		9,019		7,552		9,115		7,043

Net interest income/(loss) after provision for loan losses	$	14,845	$	23,749	$	20,250	$	19,632	$	17,164

Noninterest income
Service charges on deposit accounts	$	4,386	$	4,483	$	4,666	$	4,665	$	4,267
Mortgage banking activity		1,475		1,209		930		382		450
Other service charges, commissions and fees		391		340		392		276		239
Gain(loss) on sale of securities		—		—		—		14		224
Gains from acquisitions		20,037		—		26,867		—		—
Other non-interest income		975		657		1,090		643		1,013

Total noninterest income		27,264		6,689		33,945		5,980		6,193

Noninterest expense
Salaries and employee benefits		11,446		10,688		10,252		9,427		9,843
Occupancy and equipment expenses		3,335		2,705		3,203		2,752		2,730
Data processing and telecommunications expenses		1,925		2,650		2,817		2,452		2,396
FDIC Insurance expense		1,067		1,078		1,096		1,118		1,245
Credit related expenses ⁽¹⁾		12,739		7,784		8,985		3,882		1,797
Advertising and marketing expenses		349		221		189		149		163
Amortization of intangible assets		220		220		277		242		263
Goodwill impairment		—		—		—		—		—
Other non-interest expenses		3,165		3,364		2,667		2,580		2,718

Total noninterest expense		34,246		28,710		29,486		22,602		21,155

Operating profit/(loss)	$	7,863	$	1,728	$	24,709	$	3,010	$	2,202
Income tax (benefit)/expense		2,498		587		8,249		896		824

Net income/(loss)	$	5,365	$	1,141	$	16,460	$	2,114	$	1,378

Preferred stock dividends		815		819		817		807		798

Net income/(loss) available to common shareholders	$	4,550	$	322	$	15,643	$	1,307	$	580

Diluted earnings available to common shareholders		0.19		0.01		0.66		0.06		0.02

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

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.			Dec.			Sept.			Jun.			Mar.
	2012			2011			2011			2011			2011
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	64,963		$	65,528		$	55,761		$	68,552		$	88,386
Federal funds sold and interest bearing balances		194,172			229,042			170,349			218,330			264,508
Investment securities available for sale, at fair value		371,791			339,967			340,839			334,376			305,620
Other investments		10,967			9,878			11,089			10,354			12,436
Mortgage loans held for sale		14,863			11,563			8,867			—			—
Loans, net of unearned income		1,323,844			1,332,086			1,368,895			1,360,063			1,345,981
Covered loans		653,377			571,489			595,428			486,489			526,012
Less allowance for loan losses		28,689			35,156			35,238			34,523			35,443

Loans, net		1,948,532			1,868,419			1,929,085			1,812,029			1,836,550
Other real estate owned		40,035			50,301			54,487			61,533			62,258
Covered other real estate owned		85,803			78,617			81,907			63,583			59,757

Total other real estate owned		125,838			128,918			136,394			125,116			122,015
Premises and equipment, net		72,755			73,124			71,848			65,925			66,359
Intangible assets, net		4,179			3,250			3,471			3,745			3,973
Goodwill		956			956			956			956			956
FDIC loss sharing receivable		220,016			242,394			239,719			160,927			167,176
Other assets		14,202			21,268			42,001			56,927			50,444

Total assets	$	3,043,234		$	2,994,307		$	3,010,379		$	2,857,237		$	2,918,423

Liabilities
Deposits:
Noninterest-bearing	$	444,707		$	395,347		$	354,434		$	318,004		$	316,060
Interest-bearing		2,220,653			2,196,219			2,274,458			2,193,359			2,256,629

Total deposits		2,665,360			2,591,566			2,628,892			2,511,363			2,572,689
Federal funds purchased & securities sold under agreements to repurchase		28,790			37,665			13,180			17,136			20,257
Other borrowings		3,810			20,000			21,000			—			—
Other liabilities		5,308			9,037			10,616			9,311			9,351
Subordinated deferrable interest debentures		42,269			42,269			42,269			42,269			42,269

Total liabilities		2,745,537			2,700,537			2,715,957			2,580,079			2,644,566

Stockholders’ equity
Preferred stock	$	50,884		$	50,727		$	50,572		$	50,419		$	50,269
Common stock		25,150			25,087			25,079			25,102			25,102
Capital surplus		166,579			166,639			166,385			166,170			165,995
Retained earnings		59,403			54,852			54,530			38,888			37,580
Accumulated other comprehensive income/(loss)		6,512			7,296			8,687			7,410			5,742
Less treasury stock		(10,831	)		(10,831	)		(10,831	)		(10,831	)		(10,831	)

Total stockholders’ equity		297,697			293,770			294,422			277,158			273,857

Total liabilities and stockholders’ equity	$	3,043,234		$	2,994,307		$	3,010,379		$	2,857,237		$	2,918,423

Other Data
Earning Assets		2,558,047			2,484,147			2,484,378			2,399,258			2,442,121
Intangible Assets		5,135			4,206			4,427			4,701			4,929
Interest Bearing Liabilities		2,295,522			2,296,153			2,350,907			2,252,764			2,319,155
Average Assets		2,978,469			2,965,799			3,048,337			2,909,012			2,949,943
Average Common Stockholders’ Equity		242,817			248,729			228,716			229,794			222,675

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.			Dec.			Sept.			Jun.			Mar.
	2012			2011			2011			2011			2011
ASSET QUALITY INFORMATION⁽¹⁾
Allowance for loan losses
Balance at beginning of period	$	35,156		$	35,238		$	34,523		$	35,443		$	34,576
Provision for loan loss ⁽²⁾		12,600			8,243			7,544			7,462			7,092
Charge-offs		19,337			8,909			7,088			8,559			7,067
Recoveries		270			584			259			177			842

Net charge-offs (recoveries)		19,067			8,325			6,829			8,382			6,225
Ending balance	$	28,689		$	35,156		$	35,238		$	34,523		$	35,443

As a percentage of loans		2.17	%		2.64	%		2.57	%		2.54	%		2.63	%
As a percentage of nonperforming loans		54.90	%		49.64	%		59.66	%		57.02	%		51.82	%
Net charge-off information Charge-offs
Commercial, Financial and Agricultural	$	155		$	1,952		$	614		$	2,128		$	1,113
Real Estate - Residential		2,123			1,758			1,697			1,135			809
Real Estate - Commercial and Farmland		12,964			829			2,962			2,332			2,557
Real Estate - Construction and Development		3,930			4,129			1,612			2,822			2,425
Consumer Installment		165			241			203			142			163
Other		—			—			—			—			—

Total charge-offs		19,337			8,909			7,088			8,559			7,067

Recoveries
Commercial, Financial and Agricultural		48			21			85			48			20
Real Estate - Residential		141			39			48			45			14
Real Estate - Commercial and Farmland		16			9			37			4			2
Real Estate - Construction and Development		17			494			44			57			772
Consumer Installment		48			21			45			23			34
Other		—			—			—			—			—

Total recoveries		270			584			259			177			842

Net charge-offs (recoveries)	$	19,067		$	8,325		$	6,829		$	8,382		$	6,225

Non-accrual loans		52,258			70,823			59,067			60,545			68,391
Foreclosed assets		40,035			50,301			54,487			61,533			62,258
Accruing loans delinquent 90 days or more		—			—			20			—			—

Total non-performing assets		92,293			121,124			113,574			122,078			130,649

Non-performing assets as a percent of total assets		3.03	%		4.05	%		3.77	%		4.27	%		4.48	%
Net charge offs as a percent of loans (Annualized)		5.79	%		2.48	%		1.98	%		2.50	%		1.88	%

(1)	Asset quality information is presented net of covered assets where the Company’s risk exposure is limited substantially by loss sharing agreements with the FDIC.

(2)

During 2011 and 2012, the Company recorded provision for loan loss expense to account for losses where the initial estimate of cash flows was found to be excessive on loans acquired in FDIC assisted acquisitions. These amounts are excluded from the calculation above but reflected in the Company’s Consolidated Statement of Operations.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	For the quarter ended:
	Mar. 2012		Dec. 2011		Sept. 2011		Jun. 2011		Mar. 2011
Loans by Type
Commercial, financial & agricultural	$	149,320	$	142,960	$	159,020	$	150,377	$	142,826
Real estate - construction & development		122,331		130,270		145,770		143,684		152,863
Real estate - commercial & farmland		658,054		672,765		677,048		681,228		672,212
Real estate - residential		328,053		330,727		331,236		336,485		336,755
Consumer installment		42,085		37,296		38,163		35,584		33,698
Other		24,001		18,068		17,658		12,705		7,627

Total Legacy (non-covered)	$	1,323,844	$	1,332,086	$	1,368,895	$	1,360,063	$	1,345,981

Commercial, financial & agricultural	$	43,157	$	41,867	$	49,859	$	42,494	$	45,954
Real estate - construction & development		93,430		77,077		82,933		79,540		89,356
Real estate - commercial & farmland		350,244		321,257		323,760		229,924		242,153
Real estate - residential		162,768		127,644		135,318		129,721		140,239
Consumer installment		3,778		3,644		3,558		4,810		8,310

Total Covered (at fair value)	$	653,377	$	571,489	$	595,428	$	486,489	$	526,012

Total Loan Portfolio:
Commercial, financial & agricultural	$	192,477	$	184,827	$	208,879	$	192,871	$	188,780
Real estate - construction & development		215,761		207,347		228,703		223,224		242,219
Real estate - commercial & farmland		1,008,298		994,022		1,000,808		911,152		914,365
Real estate - residential		490,821		458,371		466,554		466,206		476,994
Consumer installment		45,863		40,940		41,721		40,394		42,008
Other		24,001		18,068		17,658		12,705		7,627

Total Loans	$	1,977,221	$	1,903,575	$	1,964,323	$	1,846,552	$	1,871,993

Troubled Debt Restructurings:
Accruing loan types:
Real estate - construction & development	$	1,305	$	1,774	$	1,697	$	2,179	$	2,908
Real estate - commercial & farmland		17,765		9,622		7,005		13,936		17,418
Real estate - residential		7,778		6,555		7,889		5,043		5,075

Total Accruing TDRs	$	26,848	$	17,951	$	16,591	$	21,158	$	25,401

Non-accruing loan types:
Real estate - construction & development	$	1,626	$	2,122	$	1,426	$	1,315	$	1,243
Real estate - commercial & farmland		2,176		4,737		5,392		8,541		8,747
Real estate - residential		1,065		1,296		227		233		-

Total Non-accrual TDRs	$	4,867	$	8,155	$	7,045	$	10,089	$	9,990

Total Troubled Debt Restructurings	$	31,715	$	26,106	$	23,636	$	31,247	$	35,391

The following table presents the non-covered loan portfolio by risk grade:


Grade 10 - Prime credit	$	26,454	$	23,930	$	23,461	$	20,376	$	20,934
Grade 15 - Good credit		256,854		261,489		193,881		202,152		188,663
Grade 20 - Satisfactory credit		495,252		485,364		550,748		534,498		497,230
Grade 23 - Performing, under-collateralized credit		29,631		29,730		30,538		29,833		26,749
Grade 25 - Minimum acceptable credit		387,133		386,365		425,142		407,133		435,779
Grade 30 - Other asset especially mentioned		42,329		41,584		52,760		65,528		65,272
Grade 40 - Substandard		85,666		102,947		91,857		99,612		111,041
Grade 50 - Doubtful		522		677		508		922		286
Grade 60 - Loss		3		—		—		9		27

Total	$	1,323,844	$	1,332,086	$	1,368,895	$	1,360,063	$	1,345,981

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.		Dec.		Sept.		Jun.		Mar.
	2012		2011		2011		2011		2011
AVERAGE BALANCES
Federal funds sold	$	27,160	$	29,108	$	24,583	$	34,241	$	32,891
Interest bearing deposits in banks		157,223		203,031		161,447		236,286		204,268
Investment securities - taxable		309,592		293,821		286,807		250,998		262,778
Investment securities - nontaxable		46,520		44,255		40,388		38,151		38,794
Other investments		10,076		10,276		11,328		11,022		12,218
Loans		1,329,146		1,335,242		1,351,695		1,348,067		1,356,698
Covered loans		602,353		600,367		626,873		507,276		545,393

Total Earning Assets	$	2,482,070	$	2,516,100	$	2,503,121	$	2,426,041	$	2,453,040

Noninterest bearing deposits	$	405,112	$	395,346	$	337,603	$	320,735	$	310,226
NOW accounts		619,047		607,258		593,801		582,773		584,338
MMDA		598,956		597,088		583,552		545,261		522,009
Savings accounts		87,219		80,074		82,210		78,674		76,341
Retail CDs < $100,000		373,519		396,058		448,597		417,297		427,143
Retail CDs > $100,000		444,838		471,329		511,205		490,660		504,011
Brokered CDs		61,287		76,250		82,880		105,338		124,441

Total Deposits		2,589,978		2,623,403		2,639,848		2,540,738		2,548,509

FHLB advances		8,282		20,707		17,804		—		25,114
Subordinated debentures		42,269		42,269		42,269		42,269		42,269
Federal funds purchased and securities sold under agreements to repurchase		29,898		29,417		14,504		23,078		22,100
Other borrowings		—		—		—		—		—

Total Non-Deposit Funding		80,449		92,393		74,577		65,347		89,483

Total Funding	$	2,670,427	$	2,715,796	$	2,714,425	$	2,606,085	$	2,637,992

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.		Dec.		Sept.		Jun.		Mar.
	2012		2011		2011		2011		2011
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold	$	6	$	7	$	9	$	9	$	13
Interest bearing deposits in banks		120		148		144		150		175
Investment securities - taxable		2,309		2,350		2,672		2,574		2,658
Investment securities - nontaxable (TE)		493		549		499		483		492
Loans (TE)		18,310		19,205		19,362		19,906		20,923
Covered loans		10,972		16,217		12,322		13,022		8,087

Total Earning Assets	$	32,210	$	38,476	$	35,008	$	36,144	$	32,348

INTEREST EXPENSE
Non-interest bearing deposits	$	—	$	—	$	—	$	—	$	—
NOW accounts		526		671		985		1,026		1,048
MMDA		841		930		1,466		1,421		1,407
Savings accounts		34		45		91		88		132
Retail CDs < $100,000		941		1,074		1,405		1,474		1,745
Retail CDs > $100,000		1,240		1,557		1,855		1,951		2,094
Brokered CDs		502		598		629		865		949

Total Deposits		4,084		4,875		6,431		6,825		7,375

FHLB advances		69		183		155		—		123
Subordinated debentures		361		363		375		323		351
Repurchase agreements		40		33		22		28		81
Correspondent bank line of credit and other		1		1		3		—		—

Total Non-Deposit Funding		471		580		555		351		555

Total Funding	$	4,555	$	5,455	$	6,986	$	7,176	$	7,930

Net Interest Income (TE)	$	27,655	$	33,021	$	28,022	$	28,968	$	24,418

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar.			Dec.			Sept.			Jun.			Mar.
	2012			2011			2011			2011			2011
YIELDS (1)
Federal funds sold		0.09	%		0.10	%		0.15	%		0.11	%		0.16	%
Interest bearing deposits in banks		0.31	%		0.29	%		0.35	%		0.25	%		0.35	%
Investment securities - taxable		3.00	%		3.17	%		3.70	%		4.11	%		4.10	%
Investment securities - nontaxable		4.26	%		4.92	%		4.90	%		5.08	%		5.14	%
Loans		5.54	%		5.71	%		5.68	%		5.92	%		6.25	%
Covered loans		7.33	%		10.72	%		7.80	%		10.30	%		6.01	%

Total Earning Assets		5.22	%		6.07	%		5.55	%		5.98	%		5.35	%
Noninterest bearing deposits		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
NOW accounts		0.34	%		0.44	%		0.66	%		0.71	%		0.73	%
MMDA		0.56	%		0.62	%		1.00	%		1.05	%		1.09	%
Savings accounts		0.16	%		0.22	%		0.44	%		0.45	%		0.70	%
Retail CDs < $100,000		1.01	%		1.08	%		1.24	%		1.42	%		1.66	%
Retail CDs > $100,000		1.12	%		1.31	%		1.44	%		1.59	%		1.68	%
Brokered CDs		3.29	%		3.11	%		3.01	%		3.29	%		3.09	%

Total Deposits		0.63	%		0.74	%		0.97	%		1.08	%		1.17	%
FHLB advances		3.35	%		3.51	%		3.45	%		0.00	%		1.99	%
Subordinated debentures		3.43	%		3.41	%		3.52	%		3.07	%		3.37	%
Repurchase agreements		0.54	%		0.45	%		0.60	%		0.49	%		1.49	%
Correspondent bank line of credit and other		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

Total Non-Deposit Funding		2.35	%		2.49	%		2.95	%		2.15	%		2.52	%

Total funding (3)		0.69	%		0.80	%		1.02	%		1.10	%		1.22	%

Net interest spread		4.53	%		5.27	%		4.53	%		4.87	%		4.13	%

Net interest margin		4.48	%		5.21	%		4.44	%		4.79	%		4.04	%

(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 total average funding including non-interest bearing liabilities.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)


	Three Months Ended
	Mar. 2012			Dec. 2011			Sept. 2011			Jun. 2011			Mar. 2011
Core Earnings Reconciliation
Pre-tax operating profit/(loss)	$	7,863		$	1,728		$	24,709		$	3,010		$	2,202
Plus: Credit Related Costs
Provision for loan losses		12,882			9,019			7,552			9,115			7,043
(Gains)/Losses on the sale of legacy OREO		7,252			4,533			5,906			1,324			1,591
Problem loan and OREO expense		5,487			3,251			3,079			2,558			2,498
Interest reversed (received) on non-accrual loans		187			410			452			140			(389	)

Total Credit-Related Costs		25,808			17,213			16,989			13,137			10,743

Plus: Non-recurring conversion charges		—			306			611			370			322
Plus: Costs associated with capital raise		—			—			—			—			—
Less: Non-recurring gains
Gains related to FDIC acquisitions		(20,037	)		—			(26,867	)		—			—
Gains on sales of securities		—			—			—			(14	)		(224	)
Gains on sales of bank premises		—			(19	)		(9	)		(11	)		(128	)
Other non-recurring adjustments		—			(4,198	)		—			(2,631	)		—

Pretax, Pre-provision earnings	$	13,634		$	15,030		$	15,433		$	13,861		$	12,915

As percentage of average assets, annualized		1.84	%		1.97	%		2.01	%		1.91	%		1.78	%

	Three Months Ended
	Mar. 2012			Dec. 2011			Sept. 2011			Jun. 2011			Mar. 2011
Recurring Operating Expenses
Total Operating Expenses		34,246			28,710			29,486			22,602			21,155
Less: Credit costs & non-recurring charges
Gains/(Losses) on the sale of legacy OREO		(7,252	)		(4,533	)		(5,906	)		(1,324	)		(1,591	)
Gains/(Losses) on the sale of covered OREO		—			—			—			—			2,292
Problem loan and OREO expense		(5,487	)		(3,251	)		(3,079	)		(2,558	)		(2,498	)
Costs associated with capital raise		—			—			—			—			—
Severance payments		(362	)		(290	)		—			—			—
Conversion expenses		—			(306	)		(611	)		(370	)		(322	)
(Gains)/Losses on the sale of premises		—			19			9			11			128
FDIC insurance expense		(1,067	)		(1,078	)		(1,096	)		(1,118	)		(1,245	)

Recurring operating expenses	$	20,078		$	19,271		$	18,803		$	17,243		$	17,919

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