Ameris Bancorp (ABCB) 8-K Ameris Bancorp Reports Results

 News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS RESULTS

FOR 2008

January 29, 2009

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported a net loss of $4.2 million, or $0.31 per diluted share, for the year ended December 31, 2008, compared to net income of $15.2 million, or $1.11 per diluted share, for 2007.  For the fourth quarter of 2008, the Company reported a net loss of $10.7 million, or $0.79 per diluted share, compared to net income of $1.2 million, or $0.09 per diluted share, during the fourth quarter of 2007.  The Company’s net loss for the year and the fourth quarter resulted primarily from increased provisions for loan losses which were associated with continued declines in credit quality.  In addition, deposit funding costs remained extraordinarily high as financial institutions placed a premium on liquidity.

Strong Capital and Liquidity Positions

During the fourth quarter, the Company took several steps to further improve its already strong capital and liquidity positions.  In November 2008, the Company sold preferred stock and a common stock purchase warrant to the U.S. Treasury for $52 million as part of the Treasury’s Capital Purchase Program.  The Company’s total capital to risk-based assets at December 31, 2008 increased to approximately 13.25% compared to 11.6% at December 31, 2007.

To further strengthen its liquidity position, the Company implemented several deposit campaigns focused on attracting less volatile, local-market deposits.  These sales efforts were successful in raising significant amounts of new funding and when combined with approximately $600 million of available lines of credit at December 31, 2008 provide Ameris Bank with very strong liquidity ratios.

Provision for Loan Losses and Credit Quality

Non-performing assets continued to increase during the fourth quarter, ending 2008 at $70.2 million, or 4.13% of total loans, an increase from the $43.2 million, or 2.52% of total loans reported at the end of the third quarter of 2008.  Net charge-offs in 2008 were $23.0 million, or 1.36% of total loans compared to $8.5 million, or 0.53% of total loans in 2007.

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This increase in non-performing assets and the accelerating level of net charge-offs led to a provision for loan losses of $19.9 million for the fourth quarter of 2008 compared to $6.9 million in the same quarter in 2007.  For the year, provision for loan losses amounted to $35.0 million compared to $11.3 million during 2007.  Included in the current quarter’s provision for loan losses was a $5.0 million charge to establish a reserve component reflecting economic uncertainties that management believes is prudent and timely given the economic outlook. Management anticipates a quarterly evaluation of economic trends and may increase or decrease this portion of the reserve in future periods.

“Although our credit quality metrics are disappointing, our Company continues to benefit from a conservative lending philosophy and several important decisions that we made before the current economic crisis began,” said Edwin W. Hortman, Jr., President and Chief Executive Officer.  “Most importantly, our lending philosophy focuses on relationship banking, forcing us to know and bank the customer rather than simply understanding a loan transaction.  Second, we originate our loans in local markets instead of relying on loan participations or deals outside the areas that we know best.  Lastly, we have resisted the trend to loan larger sums to individual borrowers for the sake of growth.  Our average loan size is only $88,500 and our largest loan is $9.8 million compared to our legal lending limit of $30 million.  We still face issues, despite these advantages, but we remain committed to working through the current credit crisis in a timely and prudent fashion,” finished Hortman.

Trends in Net Interest Income and Net Interest Margin

The Company’s net interest margin fell during the fourth quarter of 2008 to 2.92% compared to 3.92% during the same quarter in 2007.  For the year to date period, the Company’s net interest margin was 3.65% compared to 4.02% in 2007.  Reversals of interest on new non-accrual loans, increased levels of non-earning assets and relatively expensive funding costs combined to produce the lower margins in the current quarter and year-to-date periods.

Yields on earning assets fell to 5.58% during the current quarter, compared to 7.66% in the fourth quarter of 2007.  For the year, yields on earning assets fell to 6.43% from 7.79% in 2007.  The Company’s mix of earning assets played a significant role in producing lower yields on earning assets as did short-term rates and lending benchmark rates at historically low levels.  During the quarter, as the Company added to its liquidity position, short-term assets and investment securities with final maturities of less than 12 months increased to 10.8% of total earning assets compared to 0.8% at December 31, 2007.  The Company’s efforts during 2007 and 2008 to establish floors on variable rate loans cushioned the impact of sharp declines in indexes on which the Company normally loans money.  Still, approximately 16.6% of the Company’s total loan portfolio at December 31, 2008 were variable rate loans with no established floor and, as a result, produced only marginally profitable yields.

Deposit costs increased during the quarter as a result of several campaigns designed to bolster the Company’s liquidity using local-market deposits instead of brokered deposits or wholesale borrowings.  During the quarter, the Company saw total customer deposits increase by $198.6 million to $1.82 billion, an increase of 12.3% over the most recent linked quarter.  At December 31, 2008, the Company had $195.3 million in brokered deposits, which represents 9.06% of total funding and an increase of $67.3 million from the end of 2007.  The reduced level of volatility in local-market deposits versus the increasingly unfavorable opinions of brokered deposits by regulatory agencies have caused a significant rise in the cost of customer deposits relative to market yields on assets.  Profitability levels on deposit funding began to improve late in the fourth quarter, and if these trends continue, the Company expects wider spreads and margins to follow.

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Commenting on pricing challenges, Mr. Hortman said, “Significant disruption in our industry in the fourth quarter of 2008 created unique opportunities for new deposit accounts.  Our bankers responded with exceptionally strong sales in our local market, opening over 6,500 new accounts.  In 2009, our challenge will be to systematically reduce deposit pricing while we improve our deposit mix to be concentrated more heavily in low-cost, transaction-oriented business.  Success in this initiative will combine with greatly improved loan pricing and allow the Company to quickly return to acceptable net interest margins.”

Non-Interest Income

Total non-interest income for 2008 increased 8.3% to $19.1 million.  Service charges on deposit accounts increased 11.7% to $13.9 million.  This increase in service charges came as a result of significantly more transaction accounts as well as slight increases in related fee schedules.  Mortgage income increased slightly in 2008 to $3.2 million from $3.1 million in 2007.  As mortgage rates continue to fall to historically low levels, activity in the Company’s mortgage division has increased and higher levels of loan closings and revenue are anticipated.

Non-Interest Expense

Total operating expenses for 2008 increased 6.4% to $62.7 million.  Salaries and benefits during 2008 were $31.7 million, an increase of 6.2% when compared to $29.8 million in 2007.  These increases are mostly the result of expansion efforts in larger metro markets where the Company opened nine offices during 2008.  To help offset this expense, Ameris Bank announced seven branch office closings during 2008, including two in the fourth quarter of 2008.  Speaking on management’s efforts to balance the Company’s short-term and long-term decision making, Mr. Hortman said, “In 2009, we will focus more aggressively on reaching important levels of profitability in the offices we have opened since the beginning of 2007 and pause with additional de-novo branch projects.  We expect all markets in which we have expanded to be profitable in 2009 despite the challenges with credit and revenue growth.”

Occupancy and equipment expense increased during 2008 to $8.1 million, an increase of 7.0% when compared to 2007.  This increase also relates to expansion efforts in metro markets, the costs of which were offset to some degree by savings from branch closings during 2008.  Other operating expenses increased $1.3 million during 2008 to $17.1 million.  These increases were primarily the result of additional legal and collection expenses associated with non-performing assets as well as increases in advertising and marketing expense aimed at attracting new deposit accounts.

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 50 locations in Georgia, Alabama, northern Florida and South Carolina.

Ameris Bancorp Common Stock is quoted on the NASDAQ Global Select Market under the symbol “ABCB”. The preceding 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.

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended															Twelve Months Ended
	Dec.			Sept			June			Mar.			Dec.			Dec.			Dec.
	2008			2008			2008			2008			2007			2008			2007
EARNINGS
Net Income/(Loss) Available to Common Shareholders	$	(10,724	)	$	366		$	3,149		$	2,966		$	1,197		$	(4,243	)	$	15,153
PER COMMON SHARE DATA
Earnings per share:
Basic		(0.79	)		0.03			0.23			0.22			0.09			(0.31	)		1.12
Diluted		(0.79	)		0.03			0.23			0.22			0.09			(0.31	)		1.11
Cash Dividends per share		0.05			0.05			0.14			0.14			0.14			0.38			0.56
Book value per share (period end)		14.06			14.25			14.20			14.48			14.12			14.06			14.06
Tangible book value per share (period end)		9.74			9.92			9.84			10.11			9.72			9.74			9.67
Weighted average number of shares:
Basic		13,532,521			13,515,767			13,510,907			13,497,344			13,485,765			13,514,135			13,479,240
Diluted		13,562,286			13,543,612			13,563,032			13,559,761			13,573,626			13,562,690			13,631,069
Period-end number of shares		13,534,601			13,564,032			13,564,032			13,556,770			13,539,985			13,534,601			13,539,985
Market data:
High closing price		14.21			15.07			16.48			16.55			18.81			16.55			28.48
Low closing price		7.19			7.82			8.70			12.60			13.83			7.19			13.83
Period end closing price		11.85			14.85			8.70			16.06			16.85			11.85			16.85
Average daily volume		31,527			43,464			62,739			61,780			51,604			49,736			45,615
PERFORMANCE RATIOS
Return on average assets		(1.81	%)		0.07	%		0.59	%		0.56	%		0.23	%		(0.19	%)		0.74	%
Return on average common equity		(22.16	%)		0.78	%		6.58	%		6.15	%		2.49	%		(2.22	%)		8.14	%
Earning asset yield (TE)		5.58	%		6.38	%		6.64	%		7.17	%		7.66	%		6.43	%		7.79	%
Total cost of funds		2.72	%		2.54	%		2.74	%		3.30	%		3.79	%		2.82	%		3.83	%
Net interest margin (TE)		2.92	%		3.87	%		3.96	%		3.91	%		3.92	%		3.65	%		4.02	%
Non-interest income excluding securities transactions,
as a percent of total revenue (TE)		11.64	%		12.49	%		14.00	%		12.22	%		10.81	%		12.60	%		10.94	%
Efficiency ratio		80.66	%		61.97	%		65.52	%		67.05	%		67.31	%		68.34	%		63.58	%
CAPITAL ADEQUACY
Common equity to assets		7.91	%		8.56	%		8.78	%		9.27	%		9.06	%		7.91	%		9.06	%
Tangible common equity to tangible assets		5.62	%		6.12	%		6.26	%		6.66	%		6.41	%		5.62	%		6.41	%
OTHER PERIOD-END DATA
FTE Headcount		595			601			651			634			620			595			620
Assets per FTE	$	4,046		$	3,756		$	3,369		$	3,341		$	3,407		$	4,046		$	3,407
Branch locations		50			50			48			45			46			50			46
Deposits per branch location	$	40,271		$	36,127		$	36,893		$	39,651		$	38,201		$	40,271		$	38,201

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	Three Months Ended												Twelve Months Ended
	Dec.			Sept		June		Mar.		Dec.			Dec.			Dec.
	2008			2008		2008		2008		2007			2008			2007
INCOME STATEMENT
Interest income
Interest and fees on loans	$	26,582		$	28,280	$	28,339	$	30,134	$	32,999		$	113,335		$	128,869
Interest on taxable securities		3,677			3,563		3,646		3,583		3,576			14,469			14,171
Interest on nontaxable securities		171			169		173		172		158			685			688
Interest on deposits in other banks		123			100		91		200		259			514			2,306
Interest on federal funds sold		5			-		-		-		(20	)		5			43
Total interest income		30,558			32,112		32,249		34,089		36,972			129,008			146,077
Interest expense
Interest on deposits		13,769			11,717		12,314		14,142		15,620			51,942			62,380
Interest on other borrowings		817			1,218		879		1,487		2,367			4,401			8,619
Total interest expense		14,586			12,935		13,193		15,629		17,987			56,343			70,999
Net interest income		15,972			19,177		19,056		18,460		18,985			72,665			75,078
Provision for loan losses		19,890			8,220		3,720		3,200		6,914			35,030			11,321
Net interest income/(loss) after provision for loan losses		(3,918	)		10,957		15,336		15,260		12,071			37,635			63,757
Noninterest income
Service charges on deposit accounts		3,279			3,657		3,664		3,316		3,310			13,916			12,455
Mortgage banking activity		711			745		855		869		827			3,180			3,093
Other service charges, commissions and fees		90			120		220		278		233			708			1,268
Gain(loss) on sale of securities		316			-		-		-		(236	)		316			(297	)
Other non-interest income		(12	)		113		586		333		104			1,020			1,147
Total noninterest income		4,384			4,635		5,325		4,796		4,238			19,140			17,666
Noninterest expense
Salaries and employee benefits		7,309			7,113		8,660		8,618		7,122			31,700			29,844
Equipment and occupancy expense		2,070			1,904		2,103		1,992		2,118			8,069			7,540
Amortization of intangible assets		291			293		293		293		324			1,170			1,297
Data processing fees		1,169			1,238		1,226		1,093		1,096			4,726			4,532
Other operating expenses		5,580			4,209		3,692		3,598		4,972			17,079			15,757
Total noninterest expense		16,419			14,757		15,974		15,594		15,632			62,744			58,970
Operating profit/(loss)		(15,953	)		835		4,687		4,462		677			(5,969	)		22,453
Income tax (benefit)/expense		(5,556	)		469		1,538		1,496		(520	)		(2,053	)		7,300
Net income/(loss)	$	(10,397	)	$	366	$	3,149	$	2,966	$	1,197		$	(3,916	)	$	15,153
Preferred stock dividends		327			-		-		-		-			327			-
Net income/(loss) available
to common shareholders	$	(10,724	)	$	366	$	3,149	$	2,966	$	1,197		$	(4,243	)	$	15,153
Diluted earnings available to common shareholders	$	(0.79	)	$	0.03	$	0.23	$	0.22	$	0.09		$	(0.31	)	$	1.11

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	Three Months Ended
	Dec.			Sept.			June			Mar.			Dec.
	2008			2008			2008			2008			2007
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	66,787		$	43,549		$	47,720		$	63,401		$	59,804
Federal funds sold and interest bearing balances		144,383			75,458			38,125			4,389			12,022
Securities available for sale, at fair value		369,682			287,790			293,601			297,589			291,170
Restricted equity securities, at cost		6,839			9,836			9,651			6,996			7,559
Loans, net of unearned income		1,695,777			1,710,109			1,678,147			1,622,437			1,614,048
Less allowance for loan losses		39,652			30,144			28,660			28,094			27,640
Loans, net		1,656,125			1,679,965			1,649,487			1,594,343			1,586,408
Premises and equipment, net		66,107			65,868			63,291			60,053			59,132
Intangible assets, net		3,631			3,924			4,217			4,509			4,802
Goodwill		54,813			54,813			54,813			54,675			54,813
Other assets		38,723			36,440			32,116			32,288			36,353
Total Assets	$	2,407,090		$	2,257,643		$	2,193,021		$	2,118,243		$	2,112,063
Liabilities
Deposits:
Noninterest-bearing	$	208,532		$	198,900		$	200,936		$	199,692		$	197,345
Interest-bearing		1,804,993			1,607,439			1,569,925			1,584,599			1,559,920
Total deposits		2,013,525			1,806,339			1,770,861			1,784,291			1,757,265
Federal funds purchased & securities sold under
agreements to repurchase		27,416			63,973			39,795			4,987			14,705
Other borrowings		72,000			138,600			133,000			74,500			90,500
Other liabilities		12,521			13,118			14,541			15,888			16,075
Subordinated deferrable interest debentures		42,269			42,269			42,269			42,269			42,269
Total liabilities		2,167,731			2,064,299			2,000,466			1,921,935			1,920,814
Stockholders' equity
Preferred Stock	$	49,028		$	-		$	-		$	-		$	-
Common stock		14,866			14,895			14,895			14,887			14,870
Capital surplus		86,038			83,453			83,308			82,920			82,750
Retained earnings		93,696			105,117			105,430			104,182			103,095
Accumulated other comprehensive loss		6,518			666			(291	)		5,093			1,303
Less treasury stock		(10,787	)		(10,787	)		(10,787	)		(10,774	)		(10,769	)
Total stockholders' equity		239,359			193,344			192,555			196,308			191,249
Total liabilities and stockholders' equity	$	2,407,090		$	2,257,643		$	2,193,021		$	2,118,243		$	2,112,063
Other Data
Earning Assets	$	2,216,681		$	2,083,193		$	2,019,525		$	1,931,411		$	1,924,799
Intangible Assets		58,444			58,737			59,030			59,184			59,615
Interest Bearing Liabilities		1,946,678			1,852,281			1,784,989			1,706,355			1,707,394
Average Assets		2,354,142			2,192,501			2,141,940			2,115,561			2,102,579
Average Common Stockholders' Equity	$	192,479		$	186,541		$	192,605		$	193,971		$	191,124

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	Three Months Ended															Twelve Months Ended
	Dec.			Sept			June			Mar.			Dec.			Dec.			Dec.
	2008			2008			2008			2008			2007			2008			2007
ASSET QUALITY INFORMATION
Allowance for loan losses
Balance at beginning of period	$	30,144		$	28,660		$	28,094		$	27,640		$	26,434		$	27,640		$	24,863
Provision for loan loss		19,890			8,220			3,720			3,200			6,914			35,030			11,321
Charge-offs		10,648			6,946			3,801			2,945			6,465			24,340			10,386
Recoveries		266			210			647			199			757			1,322			1,842
Net charge-offs (recoveries)		10,382			6,736			3,154			2,746			5,708			23,018			8,544
Ending balance	$	39,652		$	30,144		$	28,660		$	28,094		$	27,640		$	39,652		$	27,640
As a percentage of loans		2.34	%		1.76	%		1.71	%		1.73	%		1.71	%		2.34	%		1.71	%
As a percentage of nonperforming loans		60.62	%		76.46	%		89.27	%		104.78	%		149.66	%		60.62	%		149.66	%
As a percentage of nonperforming assets		56.52	%		69.84	%		81.56	%		86.34	%		108.56	%		56.52	%		108.56	%
Net Charge-off information
Charge-offs
Commercial, Financial & Agricultural	$	1,090		$	963		$	282		$	390		$	421		$	2,725		$	1,177
Real Estate - Residential		1,951			989			902			672			1,262			4,514			2,269
Real Estate - Commercial & Farmland		1,288			628			49			299			621			2,264			1,244
Real Estate - Construction & Development		5,932			4,165			2,320			1,305			3,899			13,722			5,013
Consumer Installment		387			201			248			279			262			1,115			683
Other		-			-			-			-			-			-			-
Total charge-offs		10,648			6,946			3,801			2,945			6,465			24,340			10,386
Recoveries
Commercial, Financial & Agricultural		11			71			102			18		$	95		$	202		$	583
Real Estate - Residential		30			54			90			25			14			199			130
Real Estate - Commercial & Farmland		10			10			68			31			159			119			339
Real Estate - Construction & Development		27			26			323			34			401			410			415
Consumer Installment		187			49			64			90			88			390			369
Other		1			-			-			1			-			2			6
Total recoveries		266			210			647			199			757			1,322			1,842
Net charge-offs (recoveries)	$	10,382		$	6,736		$	3,154		$	2,746		$	5,708		$	23,018		$	8,544
Non-accrual loans	$	65,414		$	39,427		$	32,106		$	26,812		$	18,468		$	65,414		$	18,468
Foreclosed assets		4,742			3,734			3,032			5,727			6,993			4,742			6,993
Total non-performing assets	$	70,156		$	43,161		$	35,138		$	32,539		$	25,461		$	70,156		$	25,461
Non-performing assets as a percent of loans
and foreclosed assets		4.13	%		2.52	%		2.09	%		2.00	%		1.57	%		4.13	%		1.57	%
Net charge offs as a percent of loans (Annualized)		2.45	%		1.58	%		0.75	%		0.68	%		1.41	%		1.36	%		0.53	%

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	Three Months Ended										Twelve Months Ended
	Dec.		Sept		June		Mar.		Dec.		Dec.		Dec.
	2008		2008		2008		2008		2007		2008		2007
AVERAGE BALANCES
Short term assets	$	133,392	$	21,219	$	18,236	$	23,480	$	21,826		49,082	$	45,634
Investment securities		337,858		299,564		307,304		291,708		297,380		309,109		298,036
Loans		1,703,137		1,698,024		1,650,781		1,617,991		1,605,006		1,667,483		1,536,243
Total Earning Assets		2,174,387		2,018,807		1,976,321		1,933,179		1,924,212		2,025,674		1,879,913
Noninterest bearing deposits		203,810		200,357		197,662		191,860		187,908		198,422		192,575
Interest bearing deposits		582,589		607,534		607,777		612,212		596,053		602,528		574,600
Savings		53,055		55,143		54,973		54,221		55,305		54,348		59,687
CDs		1,148,386		929,787		903,655		890,668		886,117		968,124		874,609
Deposits		1,987,840		1,792,821		1,764,067		1,748,961		1,725,383		1,823,422		1,701,471
FHLB advances		70,630		130,849		111,922		97,162		105,570		102,641		92,570
Subordinated debentures		42,269		42,269		42,269		42,269		42,269		42,269		42,269
Other borrowings		27,158		30,713		13,815		17,490		22,298		22,294		16,425
Total non-deposit funding		140,057		203,831		168,006		156,921		170,137		167,204		151,264
Total funding	$	2,127,897	$	1,996,652	$	1,932,073	$	1,905,882	$	1,895,520	$	1,990,626	$	1,852,735

-8-

	Three Months Ended										Twelve Months Ended
	Dec.		Sept		June		Mar.		Dec.		Dec.		Dec.
	2008		2008		2008		2008		2007		2008		2007
INTEREST INCOME/EXPENSE
Short term assets	$	123	$	100	$	91	$	193	$	239		507	$	2,349
Investment securities (TE)		3,940		3,823		3,912		3,842		3,818		15,517		14,785
Loans (TE)		26,514		28,559		28,704		30,409		33,078		114,186		129,376
Total Earning Assets		30,577		32,482		32,707		34,444		37,135		130,210		146,510
Noninterest bearing deposits		-		-		-		-		-		-		-
Interest bearing deposits		2,368		2,722		2,580		3,450		4,238		11,120		17,391
Savings		123		121		129		118		142		491		623
CDs		11,277		8,874		9,605		10,575		11,379		40,331		44,367
Deposits		13,768		11,717		12,314		14,143		15,759		51,942		62,381
FHLB advances		186		359		302		653		1,299		1,500		4,732
Subordinated debentures		494		493		487		686		832		2,160		3,164
Other borrowings		138		222		90		148		236		598		722
Total non-deposit funding		818		1,074		879		1,487		2,367		4,258		8,618
Total funding	$	14,586	$	12,791	$	13,193	$	15,630	$	18,126	$	56,200	$	70,999
Net Interest Income (TE)	$	15,991	$	19,691	$	19,513	$	18,814	$	19,008	$	74,010	$	75,511

-9-

	Three Months Ended															Twelve Months Ended
	Dec.			Sept			June			Mar.			Dec.			Dec.			Dec.
	2008			2008			2008			2008			2007			2008			2007
YIELDS (1)
Short term assets		0.37	%		1.87	%		2.00	%		3.31	%		4.34	%		1.03	%		5.15	%
Investment securities		4.63	%		5.06	%		5.11	%		5.30	%		5.09	%		5.02	%		4.96	%
Loans		6.18	%		6.67	%		6.97	%		7.56	%		8.18	%		6.85	%		8.42	%
Total Earning Assets (2)		5.58	%		6.38	%		6.64	%		7.17	%		7.66	%		6.43	%		7.79	%
Noninterest bearing deposits
Interest bearing deposits		1.61	%		1.78	%		1.70	%		2.27	%		2.82	%		1.85	%		3.03	%
Savings		0.92	%		0.87	%		0.94	%		0.88	%		1.02	%		0.90	%		1.04	%
CDs		3.90	%		3.79	%		4.26	%		4.78	%		5.09	%		4.17	%		5.07	%
Deposits		2.75	%		2.59	%		2.80	%		3.25	%		3.62	%		2.85	%		3.67	%
FHLB advances		1.04	%		1.09	%		1.08	%		2.70	%		4.88	%		1.46	%		5.11	%
Subordinated debentures		4.64	%		4.63	%		4.62	%		6.53	%		7.81	%		5.11	%		7.49	%
Other borrowings		2.02	%		2.87	%		2.61	%		3.40	%		4.20	%		2.68	%		4.40	%
Total non-deposit funding		2.32	%		2.09	%		2.10	%		3.81	%		5.52	%		2.55	%		5.70	%
Total funding (3)		2.72	%		2.54	%		2.74	%		3.30	%		3.79	%		2.82	%		3.83	%
Net interest spread		2.86	%		3.84	%		3.90	%		3.87	%		3.86	%		3.60	%		3.96	%
Net interest margin		2.92	%		3.87	%		3.96	%		3.91	%		3.92	%		3.65	%		4.02	%
(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 average interest bearing liabilities.