Ameris Bancorp (ABCB) 8-K Results of Operations and Financial Condition

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP REPORTS RESULTS

FOR 2009

January 28, 2010

AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported results for 2009, including the following highlights:

·   Tangible book value and tangible common equity as a percentage of tangible assets increased during 2009 due to operating activities and FDIC-assisted transactions.

·   Higher levels of net interest income were achieved in 2009 than in 2008.

·   Non-CD deposits increased to 61% of total deposits at the end of 2009, up from 46% in 2008.

·   Net income available to common shareholders was affected by $54.8 million goodwill impairment recorded in the fourth quarter of 2009.

Earnings Summary

Excluding a non-cash charge for goodwill impairment that did not affect the Company’s tangible equity or liquidity, the Company reported net income available to common shareholders of $10.4 million, or $0.76 per diluted share, for the year ended December 31, 2009 compared to a net loss of $4.2 million, or $0.31 per diluted share, for 2008.  On the same basis, the Company’s net income available to common shareholders for the fourth quarter of 2009 totaled $15.8 million, or $1.15 per diluted share, compared to a net loss available to common shareholders of $10.7 million, or $0.78 per diluted share, for the same period in 2008.  The Company’s results were partially driven by gains recorded on FDIC-assisted transactions totaling approximately $25.1 million after tax.

During the fourth quarter of 2009, the Company recorded a non-cash charge for goodwill impairment totaling $54.8 million.  Including the effects of this charge, the Company’s net loss available to common shareholders during 2009 was $44.4 million, or $3.23 per diluted share.  On the same basis, the Company’s net loss available to common shareholders totaled $39.0 million, or $2.83 per common share, for the fourth quarter of 2009.

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Capital Levels – Improved Capital Levels without Shareholder Dilution

The Company strengthened capital levels with tangible book value increasing for the fifth consecutive year, as shown below, despite the recent economic challenges.  In addition to strong consolidated capital ratios, regulatory capital of Ameris Bank was higher at December 31, 2009 than at any other time during the past five years.  Significantly, improvements in capital ratios have been accomplished without issuing additional shares of Ameris Bancorp common stock and without shareholder dilution.

		As of December 31, (dollars in thousands)
Consolidated:		2009			2008		2007		2006	2005
	Tangible Common Equity (TCE)		$141,367	$131,887		$131,634		$118,268		$98,987
	TCE / Tangible Common Assets		5.84%	5.62%		6.41%		5.95%		6.01%
	Tangible Book Value		$10.22	$ 9.74		$9.67		$8.73		$7.64
Ameris Bank
	Tier 1 Leverage Capital		9.52%	7.25%		8.47%		8.64%		9.09%
	Total Risk Based Capital		14.34%	10.41%		11.68%		11.94%		12.14%

Improvement in Pre-tax, Pre-Credit Net Income

The Company continues to increase its core earnings (pre-tax, pre-credit) through various income and expense initiatives.  Pre-tax, pre-credit income increased during the current quarter to $9.6 million, compared to $9.4 million in the third quarter of 2009 and $4.7 million in the fourth quarter of 2008.  For the year to date period ended December 31, 2009, the Company’s pre-tax, pre-credit income totaled $33.8 million, an increase of $2.1 million, or 6.6%, when compared to 2008.  Edwin W. Hortman, Jr., President and CEO, commented on the Company’s trends in core earnings saying, “Although our current run rate suggests that 2010’s core earnings will continue to improve, we have developed and begun implementing “Project 2010”.  This new project covers numerous initiatives with the goal of improving our pre-tax, pre-credit income by approximately $7.5 million in 2010.  These improvements are anticipated to further strengthen our capital base as we manage through the current economic environment.  I am proud of our Company and the pace at which our employees have embraced the changes necessary to be successful in this initiative.”

Balance Sheet Trends

During 2009, the Company saw several significant trends in earning assets and in its funding mix.  With regard to earning assets, short-term assets (federal funds sold and interest bearing deposits) averaged $151.3 million during 2009 compared to $49.3 million in 2008.  Traditionally, the Company’s year-end balance sheet contains approximately $100 million of excess deposits from municipalities and businesses.  Expected declines in these balances will reduce the Company’s position in short-term assets and further improve capital ratios.  Loans increased during 2009 to $1.71 billion from $1.70 billion at the end of 2008.  The increase was the result of the loans acquired in the FDIC-assisted transactions during the fourth quarter of 2009 which amounted to $129.3 million at December 31, 2009.  Investment securities decreased substantially during 2009, from $367.9 million at the end of 2008 to $247.3 million at the end of 2009 because management has not invested material amounts of short-term assets in the current interest rate environment.

The Company’s funding mix improved dramatically during 2009, leading to significant savings in cost of funds.  At December 31, 2009, demand deposits (interest-bearing and non-interest bearing) amounted to $1.2 billion and comprised 55.8% of total deposits compared to $878 million, or 43.6% of total deposits, at December 31, 2008.  During the same time, the Company’s time deposits fell to $877 million, or 41.4% of total deposits, compared to $1.1 billion, or 56.4% of total deposits at the end of 2008.  Aggressive efforts marketing the Company’s treasury management platform as well as retail deposit sales efforts were successful, particularly in the fourth quarter of 2009.  Mr. Hortman commented on the Company’s momentum with regard to core deposits saying, “The current economy has limited our outlook for loan growth, but the opportunities to grow our core deposits with individuals and small to medium size businesses have grown exponentially.  I expect our Company to benefit significantly in 2010 and beyond from the expertise we have developed on business deposit sales in 2009.”

Net Interest Income

In 2009, the Company reported $74.0 million in net interest income, a modest increase of $1.3 million, or 1.9%, from levels reported in 2008.  Declines in interest income and yields on earning assets were offset by savings on interest expense realized from substantial improvements in the Company’s funding mix.

Yields on earning assets declined to 5.43% in 2009 compared to 6.43% in 2008.  Declines in loan yields and the Company’s concentration in low-yielding short-term assets accounted for the majority of the declines.  Loan yields in 2009 were 6.03% compared to 6.85% in 2008.  The concentration in short-term assets during 2009 amounted to 7.1% of earning assets, compared to 2.4% in 2008.  The average yield on this higher level of liquidity in 2009 was 0.20%, a decline from 1.06% in 2008.  The Company expects to begin managing toward incrementally lower levels of liquidity early in 2010.

Provision for Loan Losses and Credit Quality

Credit quality continues to be managed aggressively with significant impacts on the Company’s overall profitability.  During 2009, the Company reduced exposure in C&D and CRE concentrations considerably with yearend C&D and total CRE concentrations of 97% and 247%, respectively, as a percentage of bank capital.  This compares to 183% and 343% at December 31, 2008.  “I’m encouraged with our progress reducing concentrations in problem areas, but there remains much work to be done on non-performing assets,” said Mr. Hortman.  Non-performing assets at December 31, 2009 were 6.73%, up from 6.32% at the end of the third quarter of 2009 and from 4.13% at December 31, 2008.  “We believe that our level of investment in non-performing assets relative to current appraisals will allow us to move these assets quickly once activity and interest rebounds,” continued Mr. Hortman.

Non-interest Income

During the fourth quarter, the Company participated in two FDIC-assisted transactions in the metro-Atlanta area.  The Company has recorded gains on these transactions totaling $25.1 million after tax.  Excluding these gains and gain on the sales of investments, the Company’s non-interest income during 2009 decreased slightly to $18.9 million.  The decline was driven by a decrease in service charges totaling $323,000, or 2.3%, as well as a decline in mortgage fees of $130,000, or 4.1%.  The Company’s efforts to increase service charges in 2009 focused on the acquisition of new accounts as opposed to higher fees per account.

Lower Core Operating Expenses

During 2009, the Company recorded $124.8 million of operating expenses, including a non-cash charge of $54.8 million for impairment of the Company’s goodwill.  Excluding the charge for goodwill impairment, the Company’s operating expenses reflect an increase of $7.2 million, or 11.5%, when compared to 2008 levels.  This increase in operating expenses is attributable to increases in FDIC insurance premiums of $2.5 million over 2008 levels and increases in OREO and problem loan expenses totaling $6.6 million over 2008 levels.  Excluding these expenses, the Company’s operating expenses declined 3.0% when compared to 2008 amounts.  Mr. Hortman stated, “We have reduced our monthly run rate on core operating expenses, but I believe we can do more.  Success in our “Project 2010” initiative will provide meaningful savings in current operating expenses and allow us to continue increasing our core earnings, an important statement about our Company’s resolve to protect our capital ratios and to add shareholder value.”

Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 53 locations in Georgia, Alabama, northern Florida and South Carolina.

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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. Tangible common equity and Tier 1 capital ratios are non-GAAP measures. The Company calculates the Tier 1 capital using current call report instructions. The Company’s management uses these measures to assess the quality of capital and believes that investors may find them useful in their evaluation of the Company. These capital measures may or may not be necessarily comparable to similar capital 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

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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.
			2009			2009			2009			2009			2008			2009			2008
EARNINGS
	Net Income/(Loss) excluding Goodwill Impairment 1		15,815			(791	)		(3,359	)		(1,225	)		(10,725	)		10,441			(4,244	)
	Net Income/(Loss) Available to Common Shareholders	$	(38,998	)	$	(791	)	$	(3,359	)	$	(1,225	)	$	(10,725	)	$	(44,372	)	$	(4,244	)
PER COMMON SHARE DATA
	Earnings per share available to common shareholders:
	Basic	$	(2.83	)	$	(0.06	)	$	(0.24	)	$	(0.09	)	$	(0.78	)	$	(3.23	)	$	(0.31	)
	Diluted	$	(2.83	)	$	(0.06	)	$	(0.24	)	$	(0.09	)	$	(0.78	)	$	(3.23	)	$	(0.31	)
	Cash Dividends per share	$	-		$	-		$	0.05		$	0.05		$	0.05		$	-			0.38
	Stock dividend	1 for 130			1 for 130				-			-			-		2 for 130				-
	Book value per share (period end)	$	10.52		$	13.52		$	13.33		$	13.69		$	13.85		$	10.52			13.85
	Tangible book value per share (period end)	$	10.22		$	9.25		$	9.12		$	9.46		$	9.60		$	10.22			9.60
	Weighted average number of shares:
	Basic		13,761,824			13,734,740			13,732,682			13,736,352			13,721,360			13,741,399			13,722,844
	Diluted		13,761,824			13,734,740			13,732,682			13,736,352			13,721,360			13,741,399			13,722,844
	Period-end number of shares		13,829,674			13,789,356			13,790,924			13,793,897			13,743,626			13,829,674			13,743,626
	Market data:
	High closing price	$	7.25		$	7.47		$	8.09		$	11.73		$	14.21		$	11.73		$	16.55
	Low closing price	$	5.13		$	5.93		$	5.29		$	3.66		$	7.19		$	3.66		$	7.19
	Period end closing price	$	7.16		$	7.15		$	6.32		$	4.71		$	11.85		$	7.16		$	11.85
	Average daily volume		38,583			30,407			28,778			31,931			31,527			32,228			49,736
PERFORMANCE RATIOS
	Return on average assets (1) (2)		(1.44	%)		(0.02	%)		(0.47	%)		(0.11	%)		(1.76	%)		(0.52	%)		(0.18	%)
	Return on average common equity (1) (2)		(16.58	%)		(0.27	%)		(5.73	%)		(1.35	%)		(21.43	%)		(6.25	%)		(2.05	%)
	Earning asset yield (TE)		5.06	%		5.42	%		5.61	%		5.57	%		5.61	%		5.43	%		6.43	%
	Total cost of funds		1.51	%		1.83	%		2.08	%		2.45	%		2.73	%		1.97	%		2.82	%
	Net interest margin (TE)		3.59	%		3.65	%		3.60	%		3.21	%		2.96	%		3.52	%		3.65	%
	Non-interest income excluding securities transactions,
	as a percent of total revenue (TE)		7.10	%		13.89	%		13.26	%		12.02	%		11.62	%		10.89	%		12.60	%
	Efficiency ratio (1) (2)		85.10	%		65.83	%		76.63	%		70.01	%		80.67	%		74.61	%		68.34	%
CAPITAL ADEQUACY (period end)
	Stockholders' equity to assets		8.04	%		10.56	%		10.20	%		10.14	%		9.94	%		8.04	%		7.91	%
	Tangible common equity to tangible assets		5.84	%		5.84	%		5.65	%		5.71	%		5.62	%		5.84	%		5.62	%
OTHER PERIOD-END DATA
	FTE Headcount		615			595			589			597			595			615			595
	Assets per FTE	$	3,941		$	3,710		$	3,880		$	3,930		$	4,046		$	3,941		$	4,046
	Branch locations		53			50			50			48			50			53			50
	Deposits per branch location	$	40,059		$	37,751		$	39,527		$	42,264		$	40,271		$	40,059		$	40,271
	(1) Excludes the non-recurring, non-cash goodwill impairment charge of $54.8 million in the fourth quarter of 2009.
	(2) Excludes acquisition gains associated with FDIC-assisted transactions totaling $38.6 million in the fourth quarter of 2009.

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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.
		2009			2009			2009			2009			2008			2009			2008
INCOME STATEMENT
Interest income
Interest and fees on loans	$	24,864		$	24,888		$	25,829		$	25,727		$	26,582		$	101,310		$	113,335
Interest on taxable securities		2,570			2,725			2,906			3,657			3,677			11,858			14,469
Interest on nontaxable securities		319			329			255			167			171			1,070			685
Interest on deposits in other banks		60			68			109			25			123			262			514
Interest on federal funds sold		18			12			1			41			5			72			5
Total interest income		27,831			28,022			29,100			29,617			30,558			114,572			129,008
Interest expense
Interest on deposits	$	7,637		$	8,684		$	10,030		$	12,155		$	13,769			38,506			51,942
Interest on other borrowings		493			526			531			494			817			2,044			4,401
Total interest expense		8,130			9,210			10,561			12,649			14,586			40,550			56,343
Net interest income		19,701			18,812			18,539			16,968			15,972			74,022			72,665
Provision for loan losses		16,468			8,298			9,390			7,912			19,890			42,068			35,030
Net interest income/(loss) after provision for loan losses	$	3,233		$	10,514		$	9,149		$	9,056		$	(3,918	)	$	31,954			37,635
Noninterest income
Service charges on deposit accounts	$	3,654		$	3,510		$	3,393		$	3,035		$	3,279			13,593			13,916
Mortgage banking activity		718			692			877			763			711			3,050			3,180
Other service charges, commissions and fees		259			131			77			63			90			530			708
Gain(loss) on sale of securities		77			(20	)		101			713			316			871			316
Gains from acquisitions		38,566			-			-			-			-			38,566			-
Other non-interest income		465			208			148			922			(3	)		1,743			1,029
Total noninterest income		43,739			4,521			4,596			5,496			4,393			58,353			19,149
Noninterest expense
Salaries and employee benefits		8,616			7,431			7,899			7,991			7,309			31,939			31,700
Occupancy and equipment expenses		2,417			2,114			2,224			2,158			2,070			8,913			8,069
Amortization of intangible assets		205			146			147			146			291			644			1,170
Data processing and telecommunications expenses		1,801			1,746			1,704			1,627			1,600			6,878			6,457
Business restructuring		-			-			-			-			-			-			-
Advertising and marketing expenses		336			301			439			574			739			1,650			3,083
Goodwill impairment		54,813			-			-			-			-			54,813			-
Other non-interest expenses		7,794			3,622			5,316			3,231			4,419			19,963			12,274
Total noninterest expense		75,982			15,360			17,729			15,727			16,428			124,800			62,753
Operating profit/(loss)	$	(29,010	)	$	(325	)	$	(3,984	)	$	(1,175	)	$	(15,953	)	$	(34,493	)		(5,969	)
Income tax (benefit)/expense		9,323			(198	)		(1,290	)		(539	)		(5,556	)		7,296			(2,053	)
Net income/(loss)	$	(38,333	)	$	(127	)	$	(2,694	)	$	(636	)	$	(10,397	)	$	(41,789	)	$	(3,916	)
Preferred stock dividends		665			664			665			589			328			2,583			328
Net income/(loss) available
to common shareholders	$	(38,998	)	$	(791	)	$	(3,359	)	$	(1,225	)	$	(10,725	)	$	(44,372	)	$	(4,244	)
Diluted earnings available to common shareholders		(2.83	)		(0.06	)		(0.24	)		(0.09	)		(0.78	)		(3.23	)		(0.31	)

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AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended
	Dec.			Sept.			June			Mar.			Dec.
		2009			2009			2009			2009			2008
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	81,060		$	43,761		$	46,773		$	54,758		$	66,787
Federal funds sold and interest bearing balances		220,363			114,335			163,343			137,770			144,383
Investment securities available for sale, at fair value		247,344			251,189			257,771			344,032			367,894
Other investments		5,472			4,441			4,441			3,914			6,839
Loans, net of unearned income		1,584,359			1,652,689			1,677,045			1,672,923			1,695,777
Less allowance for loan losses		35,762			41,946			44,998			42,417			39,652
		1,548,597			1,610,743			1,632,047			1,630,506			1,656,125
		129,296			-			-			-			-
		1,677,893			1,610,743			1,632,047			1,630,506			1,656,125
Other real estate owned		21,551			21,923			19,180			14,271			4,742
Covered other real estate owned		12,807			-			-			-			-
		34,358			21,923			19,180			14,271			4,742
Premises and equipment, net		67,637			67,641			67,334			65,152			66,107
Intangible assets, net		4,053			3,193			3,339			3,485			3,631
Goodwill		-			54,813			54,813			54,813			54,813
FDIC loss sharing receivable		49,069			-			-			-			-
Other assets		36,721			35,436			36,204			37,577			35,769
	$	2,423,970		$	2,207,475		$	2,285,245		$	2,346,278		$	2,407,090
Liabilities
Deposits:
	$	236,962		$	205,699		$	210,456		$	207,686		$	208,532
		1,886,154			1,681,830			1,765,915			1,820,998			1,804,993
Total deposits		2,123,116			1,887,529			1,976,371			2,028,684			2,013,525
Federal funds purchased & securities sold under
		55,254			30,393			16,484			18,295			27,416
Other borrowings		2,000			7,000			7,000			7,000			72,000
Other liabilities		6,359			7,268			9,967			12,046			12,521
Subordinated deferrable interest debentures		42,269			42,269			42,269			42,269			42,269
		2,228,998			1,974,459			2,052,091			2,108,294			2,167,731
Stockholders' equity
Preferred stock	$	49,552		$	49,411		$	49,279		$	49,140		$	49,028
Common stock		15,058			15,018			15,018			15,018			14,968
Capital surplus		87,220			86,432			86,286			86,141			86,038
Retained earnings		46,714			86,425			87,348			91,516			93,594
Accumulated other comprehensive income/(loss)		7,240			6,542			6,033			6,956			6,518
Less treasury stock		(10,812	)		(10,812	)		(10,810	)		(10,787	)		(10,787	)
		194,972			233,016			233,154			237,984			239,359
	$	2,423,970		$	2,207,475		$	2,285,245		$	2,346,278		$	2,407,090
Other Data
Earning Assets		2,188,622			2,024,442			2,099,947			2,156,513			2,209,842
Intangible Assets		4,053			58,006			58,152			58,298			58,444
Interest Bearing Liabilities		1,985,677			1,761,492			1,831,668			1,888,562			1,946,678
Average Assets		2,361,508			2,244,527			2,285,190			2,346,958			2,354,142
Average Common Stockholders' Equity		205,500			186,858			188,442			190,395			192,479

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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.
			2009			2009			2009			2009			2008			2009			2008
ASSET QUALITY INFORMATION (1) (2)
Allowance for loan losses
Balance at beginning of period		$	41,946		$	44,998		$	42,417		$	39,652		$	30,144		$	39,652		$	27,640
Acquired Reserves			-			-			-			-			-						-
Provision for loan loss			16,468			8,298			9,390			7,912			19,890			42,068			35,030
			22,515			11,993			7,102			5,521			10,648			47,131			24,340
			(137	)		643			293			374			266			1,173			1,322
Net charge-offs (recoveries)			22,652			11,350			6,809			5,147			10,382			45,958			23,018
Ending balance		$	35,762		$	41,946		$	44,998		$	42,417		$	39,652		$	35,762		$	39,652
As a percentage of loans			2.26	%		2.54	%		2.68	%		2.54	%		2.34	%		2.26	%		2.33	%
As a percentage of nonperforming loans			37.20	%		49.99	%		65.35	%		66.37	%		60.62	%		37.20	%		60.62	%
As a percentage of nonperforming assets			30.39	%		39.63	%		51.11	%		54.25	%		56.52	%		30.39	%		56.52	%
Net charge-off information
Charge-offs
Commercial, Financial and Agricultural		$	1,831		$	601		$	815		$	1,389		$	1,090		$	4,636		$	2,725
Real Estate - Residential			3,911			3,846			1,364			1,738			1,951			10,859			4,514
Real Estate - Commercial and Farmland			4,571			482			902			277			1,288			6,232			2,264
Real Estate - Construction and Development			11,831			6,871			3,731			1,930			5,932			24,363			13,722
Consumer Installment			371			193			290			187			387			1,041			1,115
Other			-			-			-			-			-			-			-
			22,515			11,993			7,102			5,521			10,648			47,131			24,340
Recoveries
Commercial, Financial and Agricultural			79			64			16			82			11			241		$	202
Real Estate - Residential			(174	)		228			216			8			30			278			199
Real Estate - Commercial and Farmland			11			3			13			230			10			257			119
Real Estate - Construction and Development			(88	)		314			8			10			27			244			410
Consumer Installment			35			34			40			44			187			153			390
Other			-			-			-			-			1			-			2
			(137	)		643			293			374			266			1,173			1,322
Net charge-offs (recoveries)		$	22,652		$	11,350		$	6,809		$	5,147		$	10,382		$	45,958		$	23,018
Non-accrual loans (1)			96,131			83,917			68,858			63,908			65,414			96,131			65,414
Foreclosed assets (2)			21,551			21,923			19,180			14,271			4,742			21,551			4,742
Accruing loans delinquent 90 days or more			-			-			-			2			2						-
Total non-performing assets (1) (2)			117,682			105,840			88,038			78,181			70,158			117,682			70,156
Non-performing assets as a percent of loans
and foreclosed assets (excluding covered assets)			6.73	%		6.32	%		5.19	%		4.63	%		4.13	%		6.73	%		4.13	%
Net charge offs as a percent of loans (Annualized)			5.67	%		2.75	%		1.63	%		1.23	%		2.45	%		2.77	%		1.36	%
(1) Excludes total loans of $129.3 million, respectively, covered under loss-sharing agreements with the FDIC related to the acquisitions of
	American United Bank and United Security Bank during the fourth quarter of 2009.
(2) Excludes foreclosed assets of $12.7 million, covered under loss-sharing agreements with the FDIC related to the acquisitsions of
	American United Bank and United Security Bank during the fourth quarter of 2009.

-7-

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.
		2009		2009		2009		2009		2008		2009		2008
AVERAGE BALANCES
Federal funds sold	$	25,652	$	25,000	$	2,444	$	33,034	$	9,516	$	32,731		2,418
Interest bearing deposits in banks		127,092		112,827		159,510		83,424		123,876		118,587		46,833
Investment securities - taxable		254,648		216,471		229,493		339,508		309,036		253,475		281,916
Investment securities - nontaxable		39,038		38,693		27,488		18,458		18,132		31,110		18,567
Other investments		5,472		4,441		6,226		6,797		8,902		4,735		8,457
Loans		1,749,548		1,666,821		1,671,808		1,683,615		1,703,137		1,684,910		1,667,483
Total Earning Assets	$	2,201,450	$	2,064,253	$	2,096,969	$	2,164,836	$	2,172,599	$	2,125,548		2,025,674
Noninterest bearing deposits	$	232,215	$	207,495	$	205,403	$	204,010	$	203,810	$	213,786		198,422
NOW accounts		492,434		493,253		475,498		369,774		306,483		458,104		278,217
MMDA		410,909		384,266		333,998		268,946		276,106		349,073		324,311
Savings accounts		61,645		57,532		57,503		55,529		53,055		57,824		54,348
Retail CDs < $100,000		382,131		341,495		365,771		439,781		443,358		379,662		372,357
Retail CDs > $100,000		338,378		331,763		381,719		474,956		486,833		378,388		425,086
Brokered CDs		125,439	$	116,186		151,780		189,538		218,195		142,694		170,681
Total Deposits		2,043,151		1,931,990		1,971,672		2,002,534		1,987,840		1,979,531		1,823,422
FHLB advances		2,583		2,000		2,000		25,214		70,630		7,974		102,641
Subordinated debentures		42,269		42,269		42,269		42,269		42,269		42,269		42,269
Federal funds purchased and securities sold
under agreements to repurchase		48,375		20,047		15,211		19,233		22,158		25,813		17,294
Other borrowings		4,946		5,000		5,000		5,000		5,000		4,986		5,000
Total Non-Deposit Funding		98,173		69,316		64,480		91,716		140,057		81,042		167,204
Total Funding	$	2,141,324	$	2,001,306	$	2,036,152	$	2,094,250	$	2,127,897	$	2,060,573	$	1,990,626

-8-

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.
		2009		2009		2009		2009			2008		2009		2008
INTEREST INCOME/EXPENSE
INTEREST INCOME
Federal funds sold	$	18	$	12	$	1	$	41		$	5	$	72	$	5
Interest bearing deposits in banks		60		68		109		25			118		262		514
Investment securities - taxable		2,570		2,725		2,923		3,640			3,662		11,858		14,469
Investment securities - nontaxable (TE)		491		506		392		258			262		1,647		1,054
Loans (TE)		24,929		24,950		25,886		25,794			26,656		101,559		114,186
Total Earning Assets	$	28,068	$	28,261	$	29,311	$	29,758		$	30,703	$	115,398	$	130,228
INTEREST EXPENSE
Non-interest bearing deposits	$	-	$	-	$	-	$	-		$	-	$	-	$	-
NOW accounts		1,300		1,433		1,504		966			924		5,203		2,968
MMDA		1,520		1,510		1,404		1,051			1,444		5,484		8,152
Savings accounts		107		102		106		105			123		420		491
Retail CDs < $100,000		1,767		2,165		2,625		3,936			4,181		10,495		14,840
Retail CDs > $100,000		1,894		2,304		2,970		4,594			4,836		11,761		17,692
Brokered CDs		1,049		1,169		1,424		1,503			2,260		5,143		7,799
Total Deposits		7,637		8,683		10,033		12,155			13,768		38,506		51,942
FHLB advances		49		31		31		(8	)		186		104		1,500
Subordinated debentures		351		438		443		436			494		1,668		2,160
Repurchase agreements		70		33		33		38			73		174		353
Correspondent bank line of credit and other		22		23		25		28			65		98		388
Total Non-Deposit Funding		492		525		532		494			818		2,044		4,401
Total Funding	$	8,129	$	9,208	$	10,565	$	12,649		$	14,586	$	40,550	$	56,343
Net Interest Income (TE)	$	19,939	$	19,053	$	18,746	$	17,109		$	16,117	$	74,848	$	73,885

-9-

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.
		2009			2009			2009			2009			2008			2009			2008
YIELDS (1)
Federal funds sold		0.28	%		0.19	%		0.16	%		0.50	%		0.21	%		0.22	%		0.21	%
Interest bearing deposits in banks		0.19	%		0.24	%		0.27	%		0.12	%		0.38	%		0.22	%		1.10	%
Investment securities - taxable		4.00	%		4.99	%		5.11	%		4.35	%		4.70	%		4.68	%		5.13	%
Investment securities - nontaxable		4.99	%		5.19	%		5.72	%		5.67	%		5.73	%		5.29	%		5.68	%
Loans		5.65	%		5.93	%		6.21	%		6.21	%		6.21	%		6.03	%		6.85	%
Total Earning Assets		5.06	%		5.42	%		5.61	%		5.57	%		5.61	%		5.43	%		6.43	%
Noninterest bearing deposits		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
NOW accounts		1.05	%		1.15	%		1.27	%		1.06	%		1.20	%		1.14	%		1.07	%
MMDA		1.47	%		1.56	%		1.69	%		1.58	%		2.07	%		1.57	%		2.51	%
Savings accounts		0.69	%		0.70	%		0.74	%		0.77	%		0.92	%		0.73	%		0.90	%
Retail CDs < $100,000		1.83	%		2.52	%		2.88	%		3.63	%		3.74	%		2.76	%		3.99	%
Retail CDs > $100,000		2.22	%		2.76	%		3.12	%		3.92	%		3.94	%		3.11	%		4.16	%
Brokered CDs		3.32	%		3.99	%		3.76	%		3.22	%		4.11	%		3.60	%		4.57	%
Total Deposits		1.48	%		1.78	%		2.04	%		2.46	%		2.76	%		1.95	%		2.85	%
FHLB advances		7.53	%		6.15	%		6.22	%		(0.13	%)		1.04	%		1.30	%		1.46	%
Subordinated debentures		3.29	%		4.11	%		4.20	%		4.18	%		4.64	%		3.95	%		5.11	%
Repurchase agreements		0.57	%		0.65	%		0.87	%		0.80	%		1.31	%		1.97	%		7.76	%
Correspondent bank line of credit and other		1.76	%		1.83	%		2.01	%		2.27	%		5.16	%		2.52	%		2.63	%
Total Non-Deposit Funding		1.99	%		3.00	%		3.31	%		2.18	%		2.32	%		2.52	%		2.63	%
Total funding (3)		1.51	%		1.83	%		2.08	%		2.45	%		2.73	%		1.97	%		2.82	%
Net interest spread		3.55	%		3.60	%		3.54	%		3.13	%		2.88	%		3.46	%		3.60	%
Net interest margin		3.59	%		3.65	%		3.60	%		3.21	%		2.96	%		3.52	%		3.65	%
(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.

-10-

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.
Core Earnings Reconciliation		2009			2009			2009			2009			2008			2009			2008
Pre-tax operating profit/(loss) (GAAP)	$	(29,010	)	$	(325	)	$	(3,984	)	$	(1,175	)	$	(15,953	)	$	(34,493	)	$	(5,969	)
Plus: Credit Related Costs
Provision for loan losses		16,468			8,298			9,390			7,912			19,890			42,068			35,030
Losses on the sale of OREO		3,572			(76	)		621			161			27			4,278			(232	)
Problem loan & OREO expense		990			1,069			793			513			433			3,365			1,273
Interest reversed on non-accrual     loans		1,398			1,267			605			734			618			4,004			1,897
Total Credit-Related Costs		22,428			10,558			11,409			9,320			20,968			53,715			37,968
Plus: Non-recurring impairment charges		54,813			-			-			-			-			54,813			-
Less: Non-recurring gains
Gains related to FDIC acquisitions		(38,566	)		-			-			-			-			(38,566	)		-
Gains on sales of securities		(77	)		20			(101	)		(713	)		(316	)		(871	)		(316	)
Other non-recurring adjustments		-			(812	)		-			-			-			(812	)		-
Pretax, Pre-provision earnings	$	9,588		$	9,441		$	7,324		$	7,432		$	4,699		$	33,786		$	31,683

-11-

AMERIS BANCORP
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
	Three Months Ended															Twelve Months Ended
GAAP RECONCILIATIONS	Dec.			Sept.			June			Mar.			Dec.			Dec.			Dec.
		2009			2009			2009			2009			2008			2009			2008
Efficiency ratio
Operating efficiency ratio		85.10	%		65.83	%		76.63	%		70.01	%		80.67	%		74.61	%		68.34	%
Goodwill Impairment		86.40	%		-			-			-			-			41.41	%		-
Gains from Acquisitions		-51.74	%		-			-			-			-			-21.74	%		-
Efficiency ratio (GAAP)		119.77	%		65.83	%		76.63	%		70.01	%		80.67	%		94.28	%		68.35	%
Net Income/(Loss)
Net Income excluding Goodwill Impairment		15,815			(791	)		(3,359	)		(1,225	)		(10,725	)		10,441			(4,244	)
Goodwill Impairment		54,813			0			0			0			0			54,813			0		#
Net Income/(loss) GAAP	$	(38,998	)	$	(791	)	$	(3,359	)	$	(1,225	)	$	(10,725	)	$	(44,372	)	$	(4,244	)
Equity to Assets
Tangible common equity to tangible assets		5.84	%		5.84	%		5.65	%		5.71	%		5.62	%		5.84	%		5.62	%
Effect of preferred equity		2.04	%		2.24	%		2.16	%		2.09	%		2.04	%		2.04	%		2.04	%
Effect of goodwill and other intangibles		0.16	%		2.47	%		2.40	%		2.34	%		2.29	%		0.16	%		2.29	%
Equity to assets (GAAP)		8.04	%		10.56	%		10.20	%		10.14	%		9.94	%		8.04	%		9.94	%
Equity to Tangible Common Equity
Shareholders' Equity (GAAP)		194,972			233,016			233,154			237,984			239,359			194,972			239,359
Preferred Stock		49,552			49,411			49,279			49,140			49,028			49,552			49,028
Intangible assets		-			54,813			54,813			54,813			54,813			-			54,813
Goodwill		4,053			3,193			3,339			3,485			3,631			4,053			3,631
Tangible Common Equity		141,367			125,599			125,723			130,546			131,887			141,367			131,887
Return on Average Assets
Return on average assets (operating)		-1.44	%		-0.02	%		-0.47	%		-0.11	%		-1.76	%		-0.52	%		-0.18	%
Effect of goodwill impairment		-9.21	%		0.00	%		0.00	%		0.00	%		0.00	%		-2.32	%		0.00	%
Effect of gains from acquisitions		4.21	%		0.00	%		0.00	%		0.00	%		0.00	%		1.06	%		0.00	%
Return on average assets (GAAP)		-6.44	%		-0.02	%		-0.47	%		-0.11	%		-1.76	%		-1.78	%		-0.18	%
Return on Average Equity
Return on average equity (operating)		-16.58	%		-0.27	%		-5.73	%		-1.35	%		-21.43	%		-6.25	%		-2.05	%
Effect of goodwill impairment		-105.82	%		0.00	%		0.00	%		0.00	%		0.00	%		-28.43	%		0.00	%
Effect of gains from acquisitions		48.40	%		0.00	%		0.00	%		0.00	%		0.00	%		13.00	%		0.00	%
Return on average equity (GAAP)		-74.01	%		-0.27	%		-5.73	%		-1.35	%		-21.43	%		-21.67	%		-2.05	%