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

Exhibit 99.1

News Release

For more information contact:

Dennis J. Zember Jr.

Executive Vice President & CFO

(229) 890-1111

AMERIS BANCORP’S NET INCOME UP 30% FOR

FIRST QUARTER OF 2006

AMERIS BANCORP (Nasdaq:ABCB), Moultrie, Georgia, reported net income of $5.1 million, or $0.39 per diluted share, for the quarter ended March 31, 2006, compared to net income for the same period in 2005 of $3.6 million, or $0.30 per diluted share. These results represent a 41.67% increase in net income and a 30.0% increase in diluted earnings per share over the same period in 2005.

Profitability of Core Balance Sheet Continues to Improve

Return on assets for the first quarter of 2006 improved to 1.20%, compared to 1.14% for the same quarter in 2005 and to 1.04% for the year to date period ending December 31, 2005. Return on equity also improved to 13.60% for the first quarter of 2006 compared to 11.80% for the first quarter of 2005 and to 10.87% for 2005. Ameris’s improved profitability resulted from several factors, the most prominent of which is the Company’s ability to maintain a steady to slightly improving net interest margin over the past year while growing earning assets at a healthy pace. In addition, Ameris’s efforts at placing more employees in sales and customer contact roles have resulted in improved efficiency ratios.

Significant Expansion of Net Interest Income and Total Revenue

Net interest income expanded in the first quarter to $16.4 million, an increase of 35.2% over the same quarter in 2005. Net interest income and each component of interest income and expense have been affected both by strong levels of internal growth and by the purchase of First National Banc, Inc. (“FNB”) late in the fourth quarter of 2005. Excluding the purchase of FNB, net interest income would have increased by approximately 20.9% in the first quarter of 2006, compared to the same quarter in 2005.

Total interest income increased to $27.1 million in the first quarter of 2006 compared to $17.6 million in the first quarter of 2005. Yields on earnings assets improved substantially as short term rates continued to climb. Yields on earning assets during the first quarter of 2006 were 7.13% compared to 6.21% in the same quarter of 2005. Total earning assets increased as well, growing $398.3 million to $1.55 billion at March 31, 2006.

Interest expense increased as well in the present interest rate environment. Interest expense on deposits increased from $3.5 million during the first quarter of 2005 to $8.6 million in the first quarter of 2006. Total interest expense, including the cost of non-deposit borrowings, increased to $10.7 million in the first quarter of 2006 compared to $5.4 million in the same quarter in 2005. Total cost of deposits increased from 1.44% in the first quarter of 2005 to 2.54% in the first quarter of 2006, while total cost of funds increased from 1.95% to 2.83% over the same time periods. Average non-interest bearing funds were 13.8% of total deposits during the first quarter of 2006 compared to 15.0% during the first quarter of 2005.

Balance Sheet Growth

Total assets at March 31, 2006 were $1.74 billion, an increase of $480 million and 38.1% over the $1.26 billion in total assets reported at the same time in 2005. Approximately $265 million of the growth in total assets resulted from the merger with FNB late in the fourth quarter of 2005. Excluding the assets acquired in the merger with FNB, Ameris reported growth in total assets of 17.1% when compared to the same period in 2005.

The pace of loan growth continued to be strong. The Company’s efforts to expand production capacities in markets have been successful with the addition of new producers in several attractive markets. Markets where production capacity has been expanded include Jacksonville, Orange Park, Gainesville and Tallahassee, Florida, St. Marys, Georgia and Dothan, Alabama. Loans increased $352.8 million in the first quarter of 2006 when compared to the same period in 2005, and $54.5 million when compared to balances at December 31, 2005.

Deposits grew at a slightly slower pace than loans, increasing to $1.42 billion at March 31, 2006, compared to $992 million at March 31, 2005 and to $1.38 billion at December 31, 2005. Deposits at quarter end represented 90.5% of our total funding compared to 87.8% a year ago. Significant efforts to improve the Company’s sales culture center mostly on deposit sales and have resulted in improved product delivery to the customer and have dramatically improved capacity to customize the relationship with each individual customer as the customer’s needs are known. The Company anticipates accelerated growth in core deposits from continued improvements in the Company’s deposit sales practices and from expanded sales forces in growth markets.

Efficiency Improvements

Efficiency improvements during the first quarter of 2006 result primarily from growth in revenue as opposed to reduced operating expenses. The Company’s efforts to continually improve the operational structure and its use of the related resources will accelerate as the remaining bank charters are collapsed. The collapse of the four remaining charters is anticipated to occur during the third quarter of 2006.

Ameris’s efficiency ratio improved solidly over the year resulting in an efficiency ratio of 59.57% in the first quarter of 2006 compared to 64.60% in the same quarter in 2005. The Company anticipates little improvement from the current level of efficiency as efforts to build and staff additional branches in several growth markets will likely replace most of the savings generated from improvements in its existing operational structure.

Credit Quality and the Provision for Loan Losses

Credit quality at March 31, 2006 showed a slight improvement from the previous quarter. Total non-performing assets at March 31, 2006 were 0.90% of total loans, compared to 0.90% at December 31, 2005. Significant resources have been committed to resolving several larger problem credits that were assumed in the FNB transactions in the fourth quarter of 2005 and the Company anticipates improvements from these efforts during the second quarter of 2006 and throughout the rest of the year.

Provision for loan losses in the first quarter of 2006 amounted to $510,000 compared to the $152,000 recorded in the first quarter of 2005. The Company’s allowance for loan losses was 1.84% and 1.80% of total loans at March 31, 2006 and 2005, respectively. Additional levels of loan loss provision expense were related primarily to loan growth experienced in the quarter.

One Time Gain Expected

During the first quarter of 2006, Ameris negotiated a definitive agreement with another bank for the purpose of selling one of its Florida bank charters for $1 million. Ameris expects to complete the transaction in conjunction with the collapse of the charter and will have the opportunity to retain its employees, offices and customers. The transaction is subject to the approval of various regulatory agencies and is expected to close during the third quarter of 2006.

Ameris Bancorp is headquartered in Moultrie, Georgia, and has 42 locations in Georgia, Alabama and northern Florida.

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Ameris Bancorp Common Stock is quoted on the NASDAQ National 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.

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006			Dec. 2005			Sept. 2005			June 2005			March 2005
EARNINGS
Net Income	$	5,100		$	2,723		$	3,905		$	3,500		$	3,600
PER COMMON SHARE DATA
Earnings per share:
Basic		0.39			0.22			0.33			0.29			0.31
Diluted		0.39			0.22			0.33			0.29			0.30
Cash Dividends per share		0.14			0.14			0.14			0.14			0.14
Book value per share (period end)		11.67			11.48			10.67			10.54			10.28
Tangible book value per share (period end)		7.67			7.64			8.30			8.15			7.93
Weighted average number of shares:
Basic		12,951,765			12,232,165			11,865,107			11,849,739			11,783,131
Diluted		13,102,633			12,365,296			11,990,917			11,958,176			11,885,081
Period-end number of shares		12,967,576			12,952,318			11,865,991			11,866,295			11,854,680
Market data:
High closing price		23.29			20.99			20.32			19.20			20.00
Low closing price		19.71			17.57			17.60			16.42			15.22
Period end closing price		23.26			19.84			19.19			18.08			16.89
Average daily volume		15,952			13,687			14,611			16,777			19,851
PERFORMANCE RATIOS
Return on average assets		1.20	%		0.77	%		1.18	%		1.10	%		1.14	%
Return on average equity		13.60	%		8.51	%		12.40	%		11.29	%		11.80	%
Earning asset yield (TE)		7.13	%		6.97	%		6.68	%		6.35	%		6.21	%
Total cost of funds		2.83	%		2.58	%		2.39	%		2.11	%		1.95	%
Net interest margin (TE)		4.32	%		4.46	%		4.35	%		4.30	%		4.30	%
Non-interest income excluding securities transactions, as a percent of total revenue (TE)		12.48	%		13.27	%		15.08	%		15.99	%		16.68	%
Efficiency ratio		59.57	%		74.71	%		61.16	%		62.84	%		64.60	%
CAPITAL ADEQUACY
Equity to assets		8.71	%		8.76	%		9.24	%		9.58	%		9.67	%
Tangible common equity to assets		6.03	%		6.01	%		7.34	%		7.58	%		7.63	%
OTHER PERIOD-END DATA
FTE Headcount		584			585			523			533			536
Assets per FTE	$	2,977		$	2,901		$	2,620		$	2,449		$	2,351
Branch locations		42			42			37			37			37
Deposits per branch location	$	33,840		$	32,744		$	29,005		$	27,260		$	26,822

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006		Dec. 2005			Sept. 2005		June 2005		March 2005
INCOME STATEMENT
Interest income
Interest and fees on loans	$	23,476	$	19,836		$	18,140	$	16,209	$	15,053
Interest on taxable securities		2,742		2,186			2,138		2,149		2,074
Interest on nontaxable securities		98		43			40		37		43
Interest on deposits in other banks		667		774			176		45		352
Interest on federal funds sold		158		53			—		155		36
Total interest income		27,141		22,892			20,494		18,595		17,558
Interest expense
Interest on deposits		8,628		6,238			4,861		4,020		3,510
Interest on federal funds purchased and securities sold under agreements to repurchase		33		38			24		20		21
Interest on other borrowings		2,088		2,015			2,297		1,986		1,904
Total interest expense		10,749		8,291			7,182		6,026		5,435
Net interest income		16,392		14,601			13,312		12,569		12,123
Provision for loan losses		510		28			718		753		152
Net interest income after provision for loan losses		15,882		14,573			12,594		11,816		11,971
Noninterest income
Service charges on deposit accounts		2,631		2,695			2,690		2,625		2,418
Other service charges, commissions and fees		719		286			843		881		860
Other		535		191			121		46		265
Gain(loss) on sale of securities		9		(452	)		—		—		61
Total noninterest income		3,894		2,720			3,654		3,552		3,604
Noninterest expense
Salaries and employee benefits		6,624		5,205			5,675		5,665		5,938
Equipment and occupancy expense		1,353		1,033			1,423		1,273		1,202
Amortization of intangible assets		209		206			204		198		211
Other operating expenses		3,899		6,496			3,075		2,995		2,808
Total noninterest expense		12,085		12,940			10,377		10,131		10,159
Operating Profit		7,691		4,353			5,871		5,237		5,416
Provision for income taxes		2,591		1,630			1,966		1,737		1,816
Net Income	$	5,100	$	2,723		$	3,905	$	3,500	$	3,600
Diluted earnings per share		0.39		0.22			0.33		0.30		0.30

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Mar. 2006			Dec. 2005			Sept. 2005			June 2005			March 2005
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	67,570		$	74,420		$	47,548		$	40,070		$	41,079
Federal funds sold & interest bearing balances		56,998			99,781			42,021			17,948			53,350
Securities available for sale, at fair value		279,981			235,145			207,832			218,371			210,938
Loans		1,241,144			1,186,601			1,004,614			962,412			888,368
Less: allowance for loan losses		22,790			22,294			17,261			16,557			15,976
Loans, net		1,218,354			1,164,307			987,353			945,855			872,392
Premises and equipment, net		40,194			39,606			28,355			28,218			27,870
Intangible assets, net		6,203			6,412			3,091			3,296			3,495
Goodwill		43,304			43,304			25,054			25,054			24,325
Other assets		25,818			34,234			29,185			26,344			26,582
Total Assets	$	1,738,422		$	1,697,209		$	1,370,439		$	1,305,156		$	1,260,031
Liabilities
Deposits:
Noninterest-bearing demand	$	193,869		$	200,840		$	153,946		$	150,930		$	146,682
Interest-bearing demand		423,682			420,248			312,880			311,220			315,951
Savings		73,532			73,268			70,911			72,700			77,369
Time deposits		730,194			680,876			535,440			501,013			452,407
Total deposits		1,421,277			1,375,232			1,073,177			1,035,863			992,409
Federal funds purchased & securities sold under agreements to repurchase		8,502			10,307			5,448			6,387			6,809
Other borrowings		100,095			106,022			121,130			95,237			95,298
Other liabilities		16,474			16,223			8,507			7,018			8,069
Subordinated deferrable interest debentures		40,722			40,722			35,567			35,567			35,567
Total liabilities		1,587,070			1,548,506			1,243,829			1,180,072			1,138,152
Stockholders’ equity
Common stock		14,286			14,271			13,184			13,181			13,160
Capital surplus		67,520			67,381			46,202			46,173			45,828
Retained earnings		83,892			80,683			79,791			77,549			75,708
Accumulated other comprehensive loss		(3,442	)		(2,625	)		(1,490	)		(736	)		(2,149	)
Unearned compensation		(423	)		(526	)		(603	)		(681	)		(448	)
Less treasury stock		(10,481	)		(10,481	)		(10,474	)		(10,402	)		(10,220	)
Total stockholders’ equity		151,352			148,703			126,610			125,084			121,879
Total liabilities and stockholders’ equity	$	1,738,422		$	1,697,209		$	1,370,439		$	1,305,156		$	1,260,031
Other Balance Sheet Data
Earning Assets		1,578,123			1,530,124			1,262,849			1,205,965			1,159,778
Intangible Assets		49,507			49,716			28,145			28,350			27,820
Interest bearing liabilities		1,376,727			1,331,443			1,081,376			1,022,124			983,400

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006			Dec. 2005			Sept. 2005			June 2005			March 2005
ASSET QUALITY INFORMATION
Allowance for loan losses
Balance at beginning of period	$	22,294		$	17,261		$	16,557		$	15,976		$	15,493
Acquired Reserves		—			5,528			—			—			—
Provision for loan loss		510			28			718			753			152
Charge-offs		200			863			321			625			346
Recoveries		(214	)		(340	)		(307	)		(453	)		(677	)
Net charge-offs (recoveries)		(14	)		523			14			172			(331	)
Ending balance	$	22,790		$	22,294		$	17,261		$	16,557		$	15,976
As a percentage of loans		1.84	%		1.88	%		1.72	%		1.72	%		1.80	%
As a percentage of nonperforming loans		233.46	%		232.57	%		437.65	%		377.50	%		312.58	%
As a percentage of nonperforming assets		204.61	%		207.68	%		383.32	%		323.25	%		288.27	%
Net Charge-off information
Charge-offs
Commercial	$	50		$	385		$	55		$	167		$	42
Installment		81			259			113			202			145
Real Estate		—			199			81			155			108
Agriculture		69			18			72			97			44
Other		—			2			—			4			7
Total charge-offs		200			863			321			625			346
Recoveries
Commercial		124			150			182			138			132
Installment		78			100			50			64			94
Real Estate		3			42			55			147			399
Agriculture		8			47			17			99			50
Other		1			1			3			5			2
Total recoveries		214			340			307			453			677
Net charge-offs (recoveries)	$	(14	)	$	523		$	14		$	172		$	(331	)
Non-accrual loans		9,762			9,586			3,944			4,386			5,111
Foreclosed assets		1,376			1,149			559			736			431
Total non-performing assets		11,138			10,735			4,503			5,122			5,542
Non-performing assets as a percent of loans and foreclosed assets		0.90	%		0.90	%		0.45	%		0.53	%		0.62	%

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006		Dec. 2005		Sept. 2005		June 2005		Mar. 2005
AVERAGE BALANCES
Short term assets	$	69,529	$	62,080	$	20,376	$	25,691	$	58,266
Investment securities		265,680		215,867		220,283		226,724		217,662
Loans		1,213,916		1,028,705		981,895		925,652		874,946
Total Earning Assets		1,549,125		1,306,652		1,222,554		1,178,067		1,150,874
Noninterest bearing deposits		190,075		161,398		152,521		149,068		148,528
Interest bearing deposits		409,215		332,980		310,807		319,203		314,852
Savings		73,062		70,502		71,927		74,768		79,504
CDs		707,895		568,205		514,614		462,829		446,798
Deposits		1,380,247		1,133,085		1,049,869		1,005,868		989,682
FHLB advances		100,866		97,794		99,869		99,907		101,729
Subordinated debentures		40,722		36,426		35,567		35,567		35,567
Other borrowings		17,664		8,879		5,856		5,830		6,196
Total non-deposit funding		159,252		143,099		141,292		141,304		143,492
Total funding	$	1,539,499	$	1,276,184	$	1,191,161	$	1,147,172	$	1,133,174

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006		Dec. 2005		Sept. 2005		June 2005		Mar. 2005
INTEREST INCOME/EXPENSE
Short term assets	$	825	$	827	$	176	$	200	$	388
Investment securities (TE)		2,890		2,252		2,199		2,207		2,139
Loans (TE)		23,529		19,890		18,197		16,258		15,106
Total Earning Assets		27,244		22,969		20,572		18,665		17,633
Noninterest bearing deposits		—		—		—		—		—
Interest bearing deposits		1,635		1,279		906		766		658
Savings		174		167		153		138		121
CDs		6,819		4,792		3,802		3,116		2,731
Deposits		8,628		6,238		4,861		4,020		3,510
FHLB advances		1,129		1,174		1,135		1,042		1,025
Subordinated debentures		884		800		800		801		800
Other borrowings		108		79		386		163		100
Total non-deposit funding		2,121		2,053		2,321		2,006		1,925
Total funding	$	10,749	$	8,291	$	7,182	$	6,026	$	5,435
Net Interest Income (TE)	$	16,495	$	14,678	$	13,390	$	12,639	$	12,198

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

(dollars in thousands except per share data and FTE headcount)

	Three Months Ended
	Mar. 2006		Dec. 2005		Sept. 2005		June 2005		Mar. 2005
YIELDS(1)
Short term assets	4.81	%	5.29	%	3.43	%	3.12	%	2.70	%
Investment securities	4.41	%	4.14	%	3.96	%	3.90	%	3.99	%
Loans	7.86	%	7.67	%	7.35	%	7.04	%	7.00	%
Total Earning Assets (2)	7.13	%	6.97	%	6.68	%	6.35	%	6.21	%
Noninterest bearing deposits
Interest bearing deposits	1.62	%	1.52	%	1.16	%	0.96	%	0.85	%
Savings	0.97	%	0.94	%	0.84	%	0.74	%	0.62	%
CDs	3.91	%	3.35	%	2.93	%	2.70	%	2.48	%
Deposits	2.54	%	2.18	%	1.84	%	1.60	%	1.44	%
FHLB advances	4.54	%	4.76	%	4.51	%	4.18	%	4.09	%
Subordinated debentures	8.80	%	8.71	%	8.92	%	9.03	%	9.12	%
Other borrowings	2.48	%	3.53	%	5.62	%	5.85	%	6.55	%
Total non-deposit funding	5.40	%	5.69	%	6.52	%	5.69	%	5.44	%
Total funding (3)	2.83	%	2.58	%	2.39	%	2.11	%	1.95	%
Net interest spread	4.30	%	4.40	%	4.28	%	4.25	%	4.27	%
Net interest margin	4.32	%	4.46	%	4.35	%	4.30	%	4.30	%

(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 34%.

(2) Rate calculated based on average earning assets.

(3) Rate calculated based on average interest bearing liabilities.