Ameris Bancorp(ABCB) - 2018 Q4 - Annual Report

Loan Portfolio and Acquisitions - As of December 31, 2018, the company's loan portfolio totaled approximately $8.62 billion, representing about 75.4$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$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$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$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]