Ameris Bancorp Reports Net Income And Improvement In Non-Performing Assets For First Quarter 2012

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Apr 24, 2012, 04:30 ET

MOULTRIE, Ga., April 24, 2012 /PRNewswire/ -- AMERIS BANCORP (NASDAQ-GS: ABCB), 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%

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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.	Dec.	Sept.	Jun.	Mar.
			2012	2011	2011	2011	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.	Dec.	Sept.	Jun.	Mar.
	Loans by Type	2012	2011	2011	2011	2011
	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.	Dec.	Sept.	Jun.	Mar.
	Core Earnings Reconciliation	2012	2011	2011	2011	2011

	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.	Dec.	Sept.	Jun.	Mar.
	Recurring Operating Expenses	2012	2011	2011	2011	2011

	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