Ameris Bancorp (NYSE:ABCB) Q1 2019 Earnings Conference Call April 23, 2019 10:00 AM ET Company Participants Nicole Stokes - CFO Dennis Zember - President, CEO Jon Edwards - Chief Credit Officer Conference Call Participants Tyler Stafford - Stephens Inc Brady Gailey - KBW Jennifer Demba - SunTrust Brett Rabatin - Piper Jaffray Operator Good morning, and welcome to the Ameris Bank First Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After ...

Loan Portfolio and Acquisitions - As of December 31, 2018, the company's loan portfolio totaled approximately $8.62 billion, representing about 75.4% of total assets[27] - The company reported significant growth in its commercial real estate loans, which are the largest segment of its loan portfolio[27] - The company has agricultural loans secured by crops or farm-related equipment, with a portion guaranteed by the Farm Service Agency Guaranteed Loan Program[29] - The company completed the acquisition of Hamilton State Bancshares, Inc. for an aggregate purchase price of approximately $397.1 million[50] - The company entered into a merger agreement with Fidelity Southern Corporation, with an estimated purchase price of $750.7 million based on a share exchange ratio[49] - The acquisition of US Premium Finance Holding Company was completed for an aggregate purchase price of $83.0 million, which included $55.9 million in common stock and $21.4 million in cash[52] - Ameris Bancorp acquired JAXB for approximately $96.4 million, consisting of $23.9 million in cash and 2,549,469 shares of common stock valued at $72.5 million[54] - The acquisition of Merchants & Southern Banks of Florida was significant for Ameris, with a total purchase price of $50.0 million[55] - Ameris acquired 18 branches from Bank of America for a deposit premium of $20.0 million, which was 3.00% of the average daily deposits prior to the acquisition, along with $644.7 million in deposits[56] - The acquisition of Coastal Bank was completed for approximately $37.3 million, including 1,599,000 shares of common stock valued at $34.5 million and $2.8 million in cash[57] - The acquisition of Prosperity Bank was valued at approximately $24.6 million, consisting of $162,000 in cash and 1,169,000 shares of common stock worth approximately $24.5 million[58] Regulatory Compliance and Capital Requirements - Following the acquisition of Hamilton in June 2018, Ameris and the Bank exceeded $10 billion in total consolidated assets, triggering heightened regulatory requirements[75] - The Dodd-Frank Act requires publicly traded bank holding companies with assets over $10 billion to perform capital stress testing and establish a risk committee[78] - As of December 31, 2018, the Bank had approximately $67.2 million of retained earnings available for payment of cash dividends without obtaining regulatory approval[81] - The total risk-based capital ratio, Tier 1 risk-based capital ratio, and common equity Tier 1 capital ratio were 12.23%, 11.07%, and 10.07%, respectively, as of December 31, 2018[94] - The leverage ratio was 9.17% as of December 31, 2018, compared to 9.71% at December 31, 2017[95] - The minimum risk-based capital requirements including the 1.875% capital conservation buffer are 9.875% Total Risk-Based Capital Ratio, 7.875% Tier 1 Risk-Based Capital Ratio, and 6.375% Common Equity Tier 1 Risk Based Capital Ratio as of December 31, 2018[93] - The Federal Reserve requires a minimum Tier 1 leverage ratio of 4% for all institutions[91] - The Dodd-Frank Act mandates that the reserve ratio of the Deposit Insurance Fund (DIF) reach 1.35% by September 30, 2020, with the reserve ratio at 1.36% as of September 30, 2018[103] - The capital conservation buffer requirement is being phased in, requiring a buffer amount greater than 2.5% of risk-weighted assets to avoid limitations on dividends and share repurchases starting January 1, 2019[92] - The Federal Reserve has indicated that a bank holding company should pay cash dividends only if net income is sufficient to cover both dividends and a rate of earnings retention consistent with capital needs[84] - The Bank is required to maintain Common Equity Tier 1 Capital equal to 4.5% of risk-weighted assets[91] - The Dodd-Frank Act has introduced significant changes to capital regulations, impacting profitability and requiring compliance with new standards[88] - The Bank's adjusted average consolidated total assets are expected to exceed $10 billion for four consecutive quarters starting Q1 2019, leading to a change in deposit insurance assessment classification from small to large institution[106] - The FDIC's new assessment rates range from 3 to 30 basis points for large insured depository institutions, with total base assessment rates ranging from 1.5 to 40 basis points after adjustments[106] - As of June 30, 2016, the FDIC reported a reserve ratio of 1.17%, triggering the new assessment methodology[105] - Future changes in insurance premiums could adversely affect the Bank's operating expenses and results of operations, with uncertainty regarding future assessment rates[107] Risk Management and Interest Rate Sensitivity - The company has a risk management program that includes the use of derivatives to manage interest rate risk, with an interest rate swap of $37.1 million[47] - The company is slightly asset sensitive to changes in market interest rates, which means net interest income would increase in a rising rate environment[396] - A simulation analysis indicates that net interest income is projected to increase slightly if rates rise by 100 basis points over the next year[398] - The projected impact of a 400 basis point increase in interest rates is a 4.0% increase in net interest income over 12 months and a 9.9% increase over 24 months[402] - The company has a management-adjusted gap ratio policy in the one-year time horizon of 0.80 to 1.20 to manage interest rate risk[396] - The company does not have exposure to foreign currency exchange rate risk, commodity price risk, or other market risks[395] - The company may take actions to mitigate negative impacts on net interest income, including restructuring interest-earning assets and liabilities[400] Compliance and Consumer Protection - The Bank is required to maintain an effective anti-money laundering program and file suspicious activity reports as mandated by the Bank Secrecy Act and the USA PATRIOT Act[120] - The Community Reinvestment Act mandates that financial institutions meet the credit needs of low and moderate-income borrowers, with examination types based on institution size[111] - The CFPB has exclusive supervisory authority over insured depository institutions with more than $10 billion in total assets, focusing on consumer protection laws[114] - The Bank's compliance with federal and state consumer protection laws is critical, covering various aspects of lending and customer interactions[113] - The Bank's lending operations may face enhanced scrutiny due to concentrations in commercial real estate loans, particularly if total CRE loans exceed 300% of total capital[131] - The FDIC may terminate deposit insurance if the institution is found to be engaging in unsafe practices or is in an unsafe condition[108] - As of December 31, 2018, the company's construction and development (C&D) concentration as a percentage of capital totaled 58.0%, while the commercial real estate (CRE) concentration, net of owner-occupied loans, was 154.6%[132] - Including purchased non-covered and covered loans subject to loss-sharing agreements with the FDIC, the C&D concentration increased to 77.7%, and the CRE concentration rose to 248.1%[132] Financial Reporting and Regulatory Environment - The consolidated financial statements are prepared in accordance with GAAP, focusing on historical dollars without considering inflation effects[401] - The evolving regulatory environment, including the Dodd-Frank Act, may impact the company's operations and financial condition, but the specific effects are currently unpredictable[138]

Ameris Bancorp (NYSE:ABCB) Q4 2018 Earnings Conference Call January 25, 2018 10:00 AM ET Company Participants Nicole Stokes - Chief Financial Officer Dennis Zember - President, Chief Executive Officer Jon Edwards - Chief Credit Officer Conference Call Participants Tyler Stafford - Stephens Inc. Brady Gailey - KBW Jennifer Demba - SunTrust Casey Whitman - Sandler O'Neill Operator Good morning and welcome to the Ameris Bancorp Fourth Quarter 2018 Financial Results Conference Call. All participants will be in ...