x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
AMERIS
BANCORP
|
(Exact
name of registrant as specified in its
charter)
|
GEORGIA
|
58-1456434
|
|
(State
of incorporation)
|
(IRS
Employer ID No.)
|
310
FIRST STREET, S.E., MOULTRIE, GA 31768
|
(Address
of principal executive offices)
|
(229)
890-1111
|
(Registrant’s
telephone number)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Smaller
reporting company o
|
Non-accelerated
filer o (Do
not check if smaller reporting
company)
|
PART
I - FINANCIAL INFORMATION
|
Page
|
|
Item
1.
|
Financial
Statements
|
|
3
|
||
4
|
||
5
|
||
6
|
||
Item
2.
|
21
|
|
Item
3.
|
38
|
|
Item
4.
|
39
|
|
PART
II - OTHER INFORMATION
|
||
Item
1.
|
40
|
|
Item
1A.
|
40
|
|
Item
2.
|
40
|
|
Item
3.
|
40
|
|
Item
4.
|
41
|
|
Item
5.
|
41
|
|
Item
6.
|
41
|
|
42
|
||
Item 1.
|
Financial
Statements
|
AMERIS
BANCORP AND SUBSIDIARIES
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||
June
30,
|
December
31,
|
June
30,
|
||||||||||
2009
|
2008
|
2008
|
||||||||||
(Unaudited)
|
(Audited)
|
(Unaudited)
|
||||||||||
Assets
|
||||||||||||
Cash
and due from banks
|
$
|
46,773
|
$
|
66,787
|
$
|
47,720
|
||||||
Federal
funds sold and interest bearing accounts
|
163,343
|
144,383
|
38,125
|
|||||||||
Investment
securities available for sale, at fair value
|
257,771
|
366,106
|
291,813
|
|||||||||
Other
investments
|
4,441
|
8,627
|
9,651
|
|||||||||
Loans
|
1,677,045
|
1,695,777
|
1,678,147
|
|||||||||
Less: allowance for loan losses
|
44,998
|
39,652
|
28,660
|
|||||||||
Loans,
net
|
1,632,047
|
1,656,125
|
1,649,487
|
|||||||||
Premises
and equipment, net
|
67,334
|
66,107
|
63,291
|
|||||||||
Intangible
assets, net
|
3,339
|
3,631
|
4,217
|
|||||||||
Goodwill
|
54,813
|
54,813
|
54,813
|
|||||||||
Other real estate owned | 19,180 | 4,742 | 2,222 | |||||||||
Other
assets
|
36,204
|
35,769
|
31,682
|
|||||||||
Total assets
|
$
|
2,285,245
|
$
|
2,407,090
|
$
|
2,193,021
|
||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing
|
$
|
210,456
|
$
|
208,532
|
$
|
200,936
|
||||||
Interest-bearing
|
1,765,915
|
1,804,993
|
1,569,925
|
|||||||||
Total
deposits
|
1,976,371
|
2,013,525
|
1,770,861
|
|||||||||
Federal
funds purchased and securities sold under agreements to
repurchase
|
16,484
|
27,416
|
39,795
|
|||||||||
Other
borrowings
|
7,000
|
72,000
|
133,000
|
|||||||||
Other
liabilities
|
9,967
|
12,521
|
14,541
|
|||||||||
Subordinated
deferrable interest debentures
|
42,269
|
42,269
|
42,269
|
|||||||||
Total liabilities
|
2,052,091
|
2,167,731
|
2,000,466
|
|||||||||
Stockholders'
Equity
|
||||||||||||
Preferred
stock, par value$1; 5,000,000 shares authorized; 52,000 shares
issued
|
49,279
|
49,028
|
-
|
|||||||||
Common
stock, par value $1; 30,000,000 shares authorized; 14,915,209,
14,865,703 and 14,886,967 issued
|
14,915
|
14,866
|
14,895
|
|||||||||
Capital
surplus
|
86,286
|
86,038
|
83,308
|
|||||||||
Retained
earnings
|
87,451
|
93,696
|
105,430
|
|||||||||
Accumulated
other comprehensive income
|
6,033
|
6,518
|
(291
|
)
|
||||||||
Treasury
stock, at cost, 1,334,030, 1,331,102 and 1,330,197
shares
|
(10,810
|
)
|
(10,787
|
)
|
(10,787
|
)
|
||||||
Total stockholders' equity
|
233,154
|
239,359
|
192,555
|
|||||||||
Total liabilities and stockholders' equity
|
$
|
2,285,245
|
$
|
2,407,090
|
$
|
2,193,021
|
AMERIS BANCORP AND
SUBSIDIARIES
|
||||||||||||||||
(dollars
in thousands, except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
Income
|
||||||||||||||||
Interest
and fees on loans
|
$
|
25,829
|
$
|
28,339
|
$
|
51,556
|
$
|
58,472
|
||||||||
Interest
on taxable securities
|
2,906
|
3,646
|
6,563
|
7,228
|
||||||||||||
Interest
on nontaxable securities
|
255
|
173
|
422
|
346
|
||||||||||||
Interest
on deposits in other banks and federal funds sold
|
110
|
91
|
176
|
291
|
||||||||||||
Total
Interest Income
|
29,100
|
32,249
|
58,717
|
66,337
|
||||||||||||
Interest
Expense
|
||||||||||||||||
Interest
on deposits
|
10,030
|
12,314
|
22,185
|
26,456
|
||||||||||||
Interest
on other borrowings
|
531
|
879
|
1,025
|
2,366
|
||||||||||||
Total
Interest Expense
|
10,561
|
13,193
|
23,210
|
28,822
|
||||||||||||
Net
Interest Income
|
18,539
|
19,056
|
35,507
|
37,715
|
||||||||||||
Provision
for Loan Losses
|
9,390
|
3,720
|
17,302
|
6,920
|
||||||||||||
Net
Interest Income After Provision for Loan Losses
|
9,149
|
15,336
|
18,205
|
30,595
|
||||||||||||
Noninterest
Income
|
||||||||||||||||
Service
charges on deposit accounts
|
3,393
|
3,664
|
6,428
|
6,980
|
||||||||||||
Mortgage
banking activity
|
877
|
855
|
1,640
|
1,725
|
||||||||||||
Other
service charges, commissions and fees
|
77
|
220
|
140
|
498
|
||||||||||||
Gain
on sale of securities
|
101
|
-
|
814
|
-
|
||||||||||||
Other
noninterest income
|
148
|
588
|
1,070
|
953
|
||||||||||||
Total
Noninterest Income
|
4,596
|
5,327
|
10,092
|
10,156
|
||||||||||||
Noninterest
Expense
|
||||||||||||||||
Salaries
and employee benefits
|
7,899
|
8,660
|
15,890
|
17,278
|
||||||||||||
Equipment
and occupancy expenses
|
2,224
|
2,103
|
4,382
|
4,095
|
||||||||||||
Amortization
of intangible assets
|
147
|
293
|
293
|
585
|
||||||||||||
Data
processing and telecommunications expenses
|
1,704
|
1,655
|
3,331
|
3,179
|
||||||||||||
Advertising
and marketing expenses
|
439
|
656
|
1,013
|
1,534
|
||||||||||||
Other
non-interest expenses
|
5,316
|
2,609
|
8,547
|
4,931
|
||||||||||||
Total
Noninterest Expense
|
17,729
|
15,976
|
33,456
|
31,602
|
||||||||||||
(Loss)/Income
Before Tax (Benefit)/Expense
|
(3,984
|
)
|
4,687
|
(5,159
|
)
|
9,149
|
||||||||||
Applicable
Income Tax (Benefit)/Expense
|
(1,290
|
)
|
1,538
|
(1,829
|
)
|
3,034
|
||||||||||
Net
(Loss)/Income
|
$
|
(2,694
|
)
|
$
|
3,149
|
$
|
(3,330
|
)
|
$
|
6,115
|
||||||
Preferred
Stock Dividends
|
665
|
-
|
1,254
|
-
|
||||||||||||
Net (Loss)/Income Available to
Common Shareholders
|
(3,359
|
)
|
3,149
|
(4,584
|
)
|
6,115
|
||||||||||
Other Comprehensive Income | ||||||||||||||||
Unrealized
holding gain/(loss) arising during period on investment securities
available for sale, net of tax
|
(1,774
|
)
|
(4,447
|
)
|
(1,195
|
)
|
(1,770
|
)
|
||||||||
Unrealized
gain/(loss) on cash flow hedges arising during period , net of
tax
|
917
|
(1,344
|
)
|
1,239
|
249
|
|||||||||||
Reclassification
adjustment for (gains) included in net income, net of
tax
|
(66
|
)
|
-
|
(529
|
)
|
-
|
||||||||||
Comprehensive
Income
|
$
|
(4,282
|
)
|
$
|
(2,642
|
)
|
$
|
(5,069
|
)
|
$
|
4,594
|
|||||
Basic
(loss)/earnings per share
|
$
|
(0.25
|
)
|
$
|
0.23
|
$
|
(0.34
|
)
|
$
|
0.45
|
||||||
Diluted
(loss)/earnings per share
|
$
|
(0.25
|
)
|
$
|
0.23
|
$
|
(0.34
|
)
|
$
|
0.45
|
||||||
Weighted
Average Common Shares
Outstanding
|
||||||||||||||||
Basic
|
13,524
|
13,511
|
13,526
|
13,558
|
||||||||||||
Diluted
|
13,524
|
13,563
|
13,526
|
13,561
|
||||||||||||
Dividends
declared per share
|
$
|
0.05
|
$
|
0.14
|
$
|
0.10
|
$
|
0.28
|
AMERIS
BANCORP AND SUBSIDIARIES
|
||||||||
(Dollars
in Thousands)
|
||||||||
(Unaudited)
|
||||||||
Six Months
Ended
|
||||||||
June
30,
|
||||||||
2009
|
2008
|
|||||||
Cash
Flows From Operating Activities:
|
||||||||
Net
Income/(Loss)
|
$
|
(3,330
|
)
|
$
|
6,115
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
1,808
|
1,570
|
||||||
Net
(gains)/losses on sale or disposal of premises and
equipment
|
96
|
|
(34
|
)
|
||||
Net
(gains)/losses on sale of other real estate owned
|
782
|
(329
|
)
|
|||||
Provision
for loan losses
|
17,302
|
6,920
|
||||||
Amortization
of intangible assets
|
293
|
585
|
||||||
Net gains on securities available for sale | (794 | ) |
-
|
|||||
Other
prepaids, deferrals and accruals, net
|
1,890
|
(795
|
)
|
|||||
Net cash provided by operating
activities
|
18,047
|
14,032
|
||||||
Cash
Flows From Investing Activities:
|
||||||||
Net
decrease in federal funds sold and interest bearing
deposits
|
(18,960
|
) |
(26,103
|
) | ||||
Proceeds
from maturities of securities available for sale
|
124,501
|
52,155
|
||||||
Purchase
of securities available for sale
|
(48,191
|
)
|
(57,307
|
)
|
||||
Proceeds
from sales of securities available for sale
|
31,879
|
-
|
||||||
Net
(increase)/decrease in loans
|
(13,503
|
) |
(75,562
|
)
|
||||
Proceeds
from sales of other real estate owned
|
5,060
|
10,333
|
||||||
Proceeds
from sales of premises and equipment
|
1,647
|
350
|
||||||
Purchases
of premises and equipment
|
(4,778
|
)
|
(7,664
|
)
|
||||
Net cash used in investing
activities
|
77,655
|
(103,798
|
) | |||||
Cash
Flows From Financing Activities:
|
||||||||
Net
increase/(decrease) in deposits
|
(37,154
|
) |
13,596
|
|||||
Net
(increase)/decrease in federal funds purchased and securities sold
under agreements to repurchase
|
(10,932
|
)
|
25,090
|
|
||||
Net
increase/(decrease) in other borrowings
|
(65,000
|
)
|
42,500
|
|
||||
Dividends
paid - preferred stock
|
(1,254
|
)
|
-
|
|||||
Dividends
paid – common stock
|
(1,358
|
)
|
(3,798
|
)
|
||||
Purchase
of treasury shares
|
(24
|
) |
(18
|
)
|
||||
Proceeds
from exercise of stock options
|
6
|
312
|
||||||
Net cash provided by
financing activities
|
(115,716
|
)
|
77,682
|
|
||||
Net
decrease in cash and due from banks
|
$
|
(20,014
|
)
|
$
|
(12,084
|
) | ||
Cash
and due from banks at beginning of period
|
66,787
|
59,804
|
||||||
Cash
and due from banks at end of period
|
$
|
46,773
|
$
|
47,720
|
Type
(Maturity)
|
Notional
Amount
|
Rate
Received
/Floor
Rate
|
Rate
Paid
|
Fair
Value
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
LIBOR
Swap (12/15/2018)
|
$
|
37,114
|
2.95
|
%
|
4.15
|
%
|
$
|
3,003
|
||||||||
Total
Swaps:
|
37,114
|
2.95
|
4.15
|
3,003
|
||||||||||||
Prime
Interest Rate Floor (08/15/09)
|
35,000
|
7.00
|
-
|
231
|
||||||||||||
Prime
Interest Rate Floor (08/15/11)
|
35,000
|
7.00
|
-
|
2,380
|
||||||||||||
Total Floors:
|
70,000
|
7.00
|
%
|
-
|
%
|
2,611
|
||||||||||
Total Derivative
Contracts:
|
$
|
107,114
|
$
|
5,614
|
Deposits: The carrying amount of
demand deposits, savings deposits and variable-rate certificates of
deposit approximates fair value. The fair value of
fixed-rate
certificates of deposit is estimated based on discounted contractual cash
flows using interest rates currently offered for certificates with similar
maturities.
|
Repurchase Agreements and/or
Other Borrowings: The carrying amount of variable rate
borrowings and securities sold under repurchase agreements approximates
fair value. The fair value
of fixed rate other borrowings is estimated based on discounted
contractual cash flows using the current incremental borrowing rates for
similar type borrowing
arrangements.
|
Subordinated Deferrable
Interest Debentures: The carrying amount of the Company’s variable
rate trust preferred securities approximates fair
value.
|
Off-Balance-Sheet
Instruments: The carrying amount of commitments to
extend credit and standby letters of credit approximates fair
value. The carrying amount of the off-balance-sheet
financial instruments is based on fees charged to enter into such
agreements.
|
|
June
30, 2009
|
December
31, 2008
|
||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||||
Financial
assets:
|
||||||||||||||
Loans,
net
|
$
|
1,632,047
|
$
|
1,644,118
|
$
|
1,656,125
|
$
|
1,671,499
|
||||||
Financial
liabilities:
|
||||||||||||||
Deposits
|
1,976,371
|
1,982,813
|
2,013,525
|
2,019,964
|
||||||||||
Other
borrowings
|
7,000
|
7,088
|
72,000
|
71,545
|
Fair
Value Measurements on a Recurring Basis
|
||||||||||||||||
As
of June 30, 2009
|
||||||||||||||||
Quoted
Prices
|
||||||||||||||||
in
Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair
Value
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Securities
available for sale
|
$ | 257,771 | $ | - | $ | 255,771 | $ | 2,000 | ||||||||
Derivative
financial instruments
|
5,614 | - | 5,614 | - | ||||||||||||
Total
recurring assets at fair value
|
$ | 263,385 | $ | - | $ | 261,385 | $ | 2,000 |
Fair
Value Measurements on a Nonrecurring Basis
|
||||||||||||||||
As
of June 30, 2009
|
||||||||||||||||
Quoted
Prices
|
||||||||||||||||
in
Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Fair
Value
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Impaired
loans carried at fair value
|
$ | 68,858 | $ | - | $ | 68,858 | $ | - | ||||||||
Other
real estate owned
|
19,180 | - | 18,980 | 200 | ||||||||||||
Total
nonrecurring assets at fair value
|
$ | 88,038 | $ | - | $ | 87,838 | $ | 200 |
Investment
Securities
Available
for
Sale
|
Impaired
Loans
|
|||||||
Beginning
balance January 1, 2009
|
$
|
2,000
|
$
|
1,387
|
||||
Total
gains/(losses) included in net income
|
-
|
-
|
||||||
Purchases,
sales, issuances, and settlements, net
|
-
|
(1,387
|
)
|
|||||
Transfers
in or out of Level 3
|
-
|
-
|
||||||
Ending
balance June 30, 2009
|
$
|
2,000
|
$
|
-
|
|
Gross
|
Gross
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
June
30, 2009:
|
||||||||||||||||
U.
S. Government sponsored agencies
|
$
|
40,138
|
$
|
524
|
$
|
(127)
|
$
|
40,535
|
||||||||
State
and municipal securities
|
38,347
|
394
|
(376)
|
38,365
|
||||||||||||
Corporate
debt securities
|
12,183
|
51
|
(1,832)
|
10,402
|
||||||||||||
Mortgage-backed
securities
|