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 ANNOUNCES 51% INCREASE IN SECOND

QUARTER EARNINGS

AMERIS BANCORP (Nasdaq:ABCB), Moultrie, Georgia, and Edwin W. Hortman, Jr., President and CEO of Ameris Bancorp, today announced earnings for the quarter ended June 30, 2006. Ameris’s second quarter 2006 earnings were $5.3 million, an increase of $1.8 million, or 51.43%, from the second quarter of 2005. Diluted earnings per share for the second quarter of 2006 were $.40, an increase of $.11, or 37.93%, over the same quarter a year ago. Earnings for the year to date ending June 30, 2006 were $10.4 million, or $0.79 per diluted share, an increase of 31.67% in diluted earnings per share when compared to the same period in 2005.

Ameris’s second quarter performance was highlighted by the following significant items:

• Profitability Improvement: Return on average assets and return on average equity was 1.23% and 14.60%, respectively, for the second quarter of 2006.

• Balance Sheet Growth: Total assets for the second quarter were $1.78 billion, an increase of $478.2 million, or 36.64%, over the second quarter of 2005.

• Net interest income increased 40.61% over the same quarter in 2005, due to strong growth in earning assets and control of deposit costs.

• Non-recurring, pre-tax loss to restructure a portion of the investment portfolio of $315,000, or $0.02 per diluted share.

• Asset Quality improvements continued with non-performing assets down 13.27%, compared to levels at December 31, 2005.

• Efficiency ratio improved to 57.97% in the second quarter of 2006, compared to 62.84% in the same quarter of 2005.

• Announcement, subsequent to quarter end, of agreements for transfer of certain banking operations to result in one-time pre-tax gain of approximately $3.1 million, or $0.15 (net of tax) per diluted share.

Profitability

Return on assets for the second quarter of 2006 improved to 1.23%, compared to 1.10% for the same quarter in 2005. Return on equity for the same period improved to 14.60%, compared to 11.29% for the second quarter of 2005. Return on assets and return on equity were 1.21% and 13.78%, respectively for the year to date period in 2006, compared to 1.12% and 11.55% in 2005. Continued growth in earning assets, control of deposit costs, improvement in operating efficiency, and minimal loan charge-offs continue to fuel the Company’s profitability.

Net Interest Income Expansion

Net interest income expanded in the second quarter to $17.7 million, an improvement of 40.6% over the same quarter in 2005. The Company’s net interest margin was 4.48% in the second quarter of 2006, compared to 4.30% for the same quarter in 2005. The Company’s net interest margin was 4.43% for the year to date period ending June 30, 2006, compared to 4.38% in 2005.

Yields on earning assets climbed to 7.56% during the second quarter of 2006 compared to 6.35% for the same quarter in 2005. Loan and investment yields benefited from rising short term interest rates, and the loan portfolio comprised a larger percentage of earning assets than in the past. Loans represented 80.55% of the Company’s average earning assets during the second quarter of 2006, compared to 78.57% for the same quarter a year ago.

Deposit costs increased during the quarter, due to the interest rate environment as well as to aggressive deposit acquisition campaigns in several of the Company’s growth markets. Even with an aggressive posture on rates in some markets, the Company’s base of core deposits has been less rate sensitive and is a significant contributor to the improving net interest margin.

Balance Sheet Growth

Total assets at June 30, 2006 were $1.78 billion, an increase of $478 million, or 36.64%, over total assets reported at the same time in 2005. Strong growth in assets in many of Ameris’s markets combined with the First National acquisition in December 2005 contributed to the increase. Ameris’s internal growth rate in loans, excluding acquisitions, was 18.1% when compared to balances at June 30, 2005.

Deposits grew at a slightly slower pace than loans, increasing to $1.45 billion at June 30, 2006, compared to $1.04 billion at June 30, 2005. Deposits at quarter end represented 89.56% of our total funding compared to 88.30% a year ago. Excluding the deposits acquired in the First National transaction, the Company’s growth rate in deposits was 16.5% when compared to June 30, 2005 balances. The Company has continued its efforts to improve deposit growth to a level that can match the attractive growth in loans. This focus includes prioritizing sales goals and initiatives, better measurement of expectations and various other strategies to improve deposit growth rates. Focused efforts in all markets have been supported by aggressive sales and media campaigns in key markets where growth potential is considered to be good, including Jacksonville, Florida.

Credit Quality and the Provision for Loan Losses

The provision for loan losses in the second quarter of 2006 amounted to $901,000, compared to the $753,000 recorded in the second quarter of 2005. The Company’s allowance for loan losses was 1.76% and 1.72% of total loans at June 30, 2006 and 2005, respectively. The increased loan loss provision expense related primarily to loan growth experienced in the quarter as loan net charge-offs were again minimal. Annualized net charge-offs as a percentage of loans for the second quarter was 0.05%, compared to 0.07% for the same quarter in 2005. Year to date net charge-offs as a percentage of loans through June 30, 2006 were 0.03%, compared to net recoveries of 0.02% for the same period in 2005.

Non-performing assets as a percentage of total loans and foreclosed assets were $9.3 million, or 0.70%, as a percentage of loans and foreclosed assets at June 30, 2006, compared to $10.7 million, or 0.90%, as a percentage of loans and foreclosed assets at December 31, 2005. Non-performing assets decreased $1.4 million from December 31, 2005, reflecting primarily from a decrease in non-accrual loans.

Efficiency Improvements

Ameris’s efficiency ratio continued to improve, mostly through strong gains in revenue. The Company’s efficiency ratio improved to 57.97% during the second quarter of 2006, compared to 62.84% in the second quarter of 2005. Non-interest income (excluding the loss on investment sales) increased 8.4% to $3.9 million, compared to $3.6 million for the same quarter in 2005. Increases in service charges on deposit accounts were responsible for most of the increase, moving higher by 11.5% compared to the same period in 2005.

Non-interest expense increased to $12.3 million during the second quarter of 2006, an increase of 21.4% over the same quarter in 2005. Increased advertising and marketing expenses, professional fees and the merger of First National late in 2005 accounted for the majority of this increase. 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.

One time Gain

In a press release dated July 13, 2006, Ameris announced various definitive agreements for the transfer of certain limited banking operations to three unrelated financial institutions. As a result, the Company anticipates a pre-tax gain of approximately $3.1 million, or $0.15 (net of tax) per share. The transactions are subject to various regulatory approvals and are expected to close before December 31, 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															Six Months Ended
	June 2006			Mar. 2006			Dec. 2005			Sept. 2005			June 2005			June 2006			June 2005
EARNINGS
Net Income	$	5,315		$	5,100		$	2,723		$	3,905		$	3,500		$	10,415		$	7,100
PER COMMON SHARE DATA
Earnings per share:
Basic		0.41			0.39			0.22			0.33			0.30			0.80			0.60
Diluted		0.40			0.39			0.22			0.33			0.29			0.79			0.60
Cash Dividends per share		0.14			0.14			0.14			0.14			0.14			0.28			0.28
Book value per share (period end)		11.75			11.68			11.48			10.67			10.54			11.75			10.54
Tangible book value per share (period end)		7.99			7.86			7.64			8.30			8.15			7.99			8.15
Weighted average number of shares:
Basic		12,985,424			12,951,765			12,232,165			11,865,107			11,849,739			12,968,687			11,816,619
Diluted		13,139,130			13,102,633			12,365,296			11,990,917			11,958,176			13,118,881			11,921,183
Period-end number of shares		13,021,510			12,967,576			12,952,318			11,865,991			11,866,295			13,021,510			11,866,295
Market data:
High closing price		23.24			23.29			20.99			20.32			19.20			23.24			18.35
Low closing price		20.23			19.71			17.57			17.60			16.42			19.45			14.78
Period end closing price		23.14			23.26			19.84			19.19			18.08			23.14			17.59
Average daily volume		21,949			15,952			13,687			14,611			16,777			19,127			17,877
PERFORMANCE RATIOS
Return on average assets		1.23	%		1.20	%		0.77	%		1.18	%		1.10	%		1.21	%		1.12	%
Return on average equity		14.60	%		13.60	%		8.51	%		12.40	%		11.29	%		13.78	%		11.55	%
Earning asset yield (TE)		7.56	%		7.13	%		6.97	%		6.68	%		6.35	%		7.40	%		6.41	%
Total cost of funds		3.10	%		2.83	%		2.58	%		2.39	%		2.11	%		2.97	%		2.03	%
Net interest margin (TE)		4.48	%		4.32	%		4.46	%		4.35	%		4.30	%		4.43	%		4.38	%
Non-interest income excluding securities transactions, as a percent of total revenue (TE)		11.53	%		12.48	%		12.35	%		15.08	%		15.99	%		11.99	%		16.33	%
Efficiency ratio		57.97	%		59.57	%		74.71	%		61.16	%		62.84	%		58.75	%		63.71	%
CAPITAL ADEQUACY
Equity to assets		8.58	%		8.71	%		8.76	%		9.24	%		9.58	%		8.58	%		9.58	%
Tangible common equity to assets		6.00	%		6.03	%		6.01	%		7.34	%		7.58	%		6.00	%		7.58	%
OTHER PERIOD-END DATA
FTE Headcount		585			584			585			523			533			585			533
Assets per FTE	$	3,048		$	2,978		$	2,901		$	2,620		$	2,449		$	3,048		$	2,449
Branch locations		42			42			42			37			37			42			37
Deposits per branch location	$	34,432		$	33,836		$	32,744		$	29,005		$	27,996		$	34,432		$	27,996

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	Three Months Ended												Six Months Ended
	June 2006			Mar. 2006		Dec. 2005			Sept. 2005		June 2005		June 2006			June 2005
INCOME STATEMENT
Interest income
Interest and fees on loans	$	26,355		$	23,476	$	19,836		$	18,140	$	16,209	$	49,831		$	31,262
Interest on taxable securities		2,950			2,742		2,186			2,138		2,149		5,692			4,223
Interest on nontaxable securities		127			98		43			40		37		225			80
Interest on deposits in other banks		390			667		774			176		45		1,057			552
Interest on federal funds sold		—			158		53			—		155		158			36
Total interest income		29,822			27,141		22,892			20,494		18,595		56,963			36,153
Interest expense
Interest on deposits		9,979			8,628		6,238			4,861		4,020		18,607			7,530
Interest on federal funds purchased and securities sold under agreements to repurchase		48			33		38			24		20		81			41
Interest on other borrowings		2,122			2,088		2,015			2,297		1,986		4,210			3,890
Total interest expense		12,149			10,749		8,291			7,182		6,026		22,898			11,461
Net interest income		17,673			16,392		14,601			13,312		12,569		34,065			24,692
Provision for loan losses		901			510		28			718		753		1,411			905
Net interest income after provision for loan losses		16,772			15,882		14,573			12,594		11,816		32,654			23,787
Noninterest income
Service charges on deposit accounts		2,926			2,631		2,695			2,690		2,625		5,557			5,043
Other service charges, commissions and fees		803			719		286			843		881		1,522			1,741
Other		121			535		191			121		46		656			311
Gain(loss) on sale of securities		(314	)		9		(452	)		—		—		(305	)		61
Total noninterest income		3,536			3,894		2,720			3,654		3,552		7,430			7,156
Noninterest expense
Salaries and employee benefits		6,042			6,624		5,205			5,675		5,665		12,666			11,603
Equipment and occupancy expense		1,544			1,353		1,033			1,423		1,273		2,897			2,475
Amortization of intangible assets		232			209		206			204		198		441			409
Other operating expenses		4,476			3,899		6,496			3,075		2,995		8,375			5,803
Total noninterest expense		12,294			12,085		12,940			10,377		10,131		24,379			20,290
Operating Profit		8,014			7,691		4,353			5,871		5,237		15,705			10,653
Provision for income taxes		2,699			2,591		1,630			1,966		1,737		5,290			3,553
Net Income	$	5,315		$	5,100	$	2,723		$	3,905	$	3,500	$	10,415		$	7,100
Diluted earnings per share		0.40			0.39		0.22			0.33		0.29		0.79			0.60

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	June 2006			Mar. 2006			Dec. 2005			Sept. 2005			June 2005
PERIOD-END BALANCE SHEET
Assets
Cash and due from banks	$	63,894		$	67,570		$	74,420		$	47,548		$	40,070
Federal funds sold & interest bearing balances		26,642			56,998			99,781			42,021			17,948
Securities available for sale, at fair value		257,283			273,031			235,145			207,832			218,371
Loans		1,330,713			1,240,436			1,186,601			1,004,614			962,412
Less: allowance for loan losses		23,366			22,616			22,294			17,261			16,557
Loans, net		1,307,347			1,217,820			1,164,307			987,353			945,855
Premises and equipment, net		40,625			40,194			39,606			28,355			28,218
Intangible assets, net		5,971			6,203			6,412			3,091			3,296
Goodwill		42,933			43,304			43,304			25,054			25,054
Other assets		38,649			33,771			34,234			29,185			26,344
Total Assets	$	1,783,344		$	1,738,891		$	1,697,209		$	1,370,439		$	1,305,156
Liabilities
Deposits:
Noninterest-bearing demand	$	201,489		$	193,869		$	200,840		$	153,946		$	150,930
Interest-bearing demand		418,310			423,682			420,248			312,880			311,220
Savings		71,873			73,532			73,268			70,911			72,700
Time deposits		754,456			730,023			680,876			535,440			501,013
Total deposits		1,446,128			1,421,106			1,375,232			1,073,177			1,035,863
Federal funds purchased & securities sold under agreements to repurchase		3,769			8,502			10,307			5,448			6,387
Other borrowings		124,094			100,095			106,022			121,130			95,237
Other liabilities		15,629			17,036			16,223			8,507			7,018
Subordinated deferrable interest debentures		40,722			40,722			40,722			35,567			35,567
Total liabilities		1,630,342			1,587,461			1,548,506			1,243,829			1,180,072
Stockholders’ equity
Common stock		14,340			14,286			14,271			13,184			13,181
Capital surplus		68,459			67,520			67,381			46,202			46,173
Retained earnings		87,466			83,970			80,683			79,791			77,549
Accumulated other comprehensive loss		(5,675	)		(3,442	)		(2,625	)		(1,490	)		(736	)
Unearned compensation		(1,107	)		(423	)		(526	)		(603	)		(681	)
Less treasury stock		(10,481	)		(10,481	)		(10,481	)		(10,474	)		(10,402	)
Total stockholders’ equity		153,002			151,430			148,703			126,610			125,084
Total liabilities and stockholders’ equity	$	1,783,344		$	1,738,891		$	1,697,209		$	1,370,439		$	1,305,156
Other Balance Sheet Data
Earning Assets		1,614,638			1,570,465			1,521,527			1,254,467			1,198,731
Intangible Assets		48,904			49,507			49,716			28,145			28,350
Interest bearing liabilities		1,413,224			1,376,556			1,331,443			1,081,376			983,400

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	Three Months Ended															Six Months Ended
	June 2006			Mar. 2006			Dec. 2005			Sept. 2005			June 2005			June 2006			June 2005
ASSET QUALITY INFORMATION
Allowance for loan losses
Balance at beginning of period	$	22,616		$	22,294		$	17,261		$	16,557		$	15,976		$	22,294		$	15,493
Acquired Reserves		—			—			5,528			—			—			—			—
Provision for loan loss		901			510			28			718			753			1,411			905
Charge-offs		(339	)		(1,419	)		(863	)		(321	)		(625	)		(1,758	)		(971	)
Recoveries		188			1,231			340			307			453			1,419			1,130
Net (charge-offs) recoveries		(151	)		(188	)		(523	)		(14	)		(172	)		(339	)		159
Ending balance	$	23,366		$	22,616		$	22,294		$	17,261		$	16,557		$	23,366		$	16,557
As a percentage of loans		1.76	%		1.82	%		1.88	%		1.72	%		1.72	%		1.76	%		1.72	%
As a percentage of nonperforming loans		316.74	%		231.67	%		232.57	%		437.65	%		377.50	%		316.74	%		377.50	%
As a percentage of nonperforming assets		250.95	%		203.05	%		207.68	%		383.32	%		323.25	%		250.95	%		323.25	%
Net Charge-off information
Charge-offs
Commercial	$	153		$	181		$	385		$	55		$	167		$	334		$	194
Installment		167			163			259			113			202			330			347
Real Estate		14			1,005			199			81			155			1,019			375
Agriculture		3			—			18			72			97			3			44
Other		2			70			2			—			4			72			11
Total charge-offs		339			1,419			863			321			625			1,758			971
Recoveries
Commercial		55			636			150			182			138			691			172
Installment		62			247			100			50			64			309			158
Real Estate		27			335			42			55			147			362			758
Agriculture		32			—			47			17			99			32			35
Other		12			13			1			3			5			25			7
Total recoveries		188			1,231			340			307			453			1,419			1,130
Net (charge-offs) recoveries	$	151		$	188		$	523		$	14		$	172		$	339		$	(159	)
Non-accrual loans		7,377			9,762			9,586			3,944			4,386			7,377			4,386
Foreclosed assets		1,934			1,376			1,149			559			736			1,934			736
Total non-performing assets		9,311			11,138			10,735			4,503			5,122			9,311			5,122
Non-performing assets as a percent of loans and foreclosed assets		0.70	%		0.90	%		0.90	%		0.45	%		0.53	%		0.70	%		0.53	%

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	Three Months Ended										Six Months Ended
	June 2006		Mar. 2006		Dec. 2005		Sept. 2005		June 2005		June 2006		June 2005
AVERAGE BALANCES
Short term assets	$	25,277	$	69,529	$	62,080	$	20,376	$	25,691	$	40,445	$	20,334
Investment securities		270,842		265,680		215,867		220,283		226,724		264,550		222,194
Loans		1,289,354		1,213,916		1,028,705		981,895		925,652		1,251,841		900,229
Total Earning Assets		1,585,473		1,549,125		1,306,652		1,222,554		1,178,067		1,556,836		1,142,757
Noninterest bearing deposits		188,562		190,075		161,398		152,521		149,068		189,315		148,798
Interest bearing deposits		417,953		409,215		332,980		310,807		319,203		413,608		317,028
Savings		73,368		73,062		70,502		71,927		74,768		73,216		77,136
CDs		738,859		707,895		568,205		514,614		462,829		723,462		454,814
Deposits		1,418,742		1,380,247		1,133,085		1,049,869		1,005,868		1,399,601		997,776
FHLB advances		101,044		100,866		97,794		99,869		99,907		100,955		100,818
Subordinated debentures		40,722		40,722		36,426		35,567		35,567		40,722		35,567
Other borrowings		12,737		17,664		8,879		5,856		5,830		12,751		6,013
Total non-deposit funding		154,503		159,252		143,099		141,292		141,304		154,428		142,398
Total funding	$	1,573,245	$	1,539,499	$	1,276,184	$	1,191,161	$	1,147,172	$	1,554,029	$	1,140,174

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	Three Months Ended										Six Months Ended
	June 2006		Mar. 2006		Dec. 2005		Sept. 2005		June 2005		June 2006		June 2005
INTEREST INCOME/EXPENSE
Short term assets	$	303	$	825	$	827	$	176	$	200	$	1,128	$	588
Investment securities (TE)		3,143		2,890		2,252		2,199		2,207		6,033		4,345
Loans (TE)		26,419		23,529		19,890		18,197		16,258		49,948		31,364
Total Earning Assets		29,865		27,244		22,969		20,572		18,665		57,109		36,297
Noninterest bearing deposits		—		—		—		—		—		—		—
Interest bearing deposits		2,045		1,635		1,279		906		766		3,680		1,423
Savings		186		174		167		153		138		360		260
CDs		7,748		6,819		4,792		3,802		3,116		14,567		5,848
Deposits		9,979		8,628		6,238		4,861		4,020		18,607		7,531
FHLB advances		1,131		1,129		1,174		1,135		1,042		2,260		2,067
Subordinated debentures		909		884		800		800		801		1,793		1,815
Other borrowings		130		108		79		386		163		238		49
Total non-deposit funding		2,170		2,121		2,053		2,321		2,006		4,291		3,931
Total funding	$	12,149	$	10,749	$	8,291	$	7,182	$	6,026	$	22,898	$	11,462
Net Interest Income (TE)	$	17,716	$	16,495	$	14,678	$	13,390	$	12,639	$	34,211	$	24,835

AMERIS BANCORP

FINANCIAL HIGHLIGHTS

(unaudited)

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

	Three Months Ended										Six Months Ended
	June 2006		Mar. 2006		Dec. 2005		Sept. 2005		June 2005		June 2006		June 2005
YIELDS (1)
Short term assets	4.81	%	4.81	%	5.29	%	3.43	%	3.12	%	5.62	%	5.83	%
Investment securities	4.65	%	4.41	%	4.14	%	3.96	%	3.90	%	4.60	%	3.94	%
Loans	8.22	%	7.86	%	7.67	%	7.35	%	7.04	%	8.05	%	7.03	%
Total Earning Assets (2)	7.56	%	7.13	%	6.97	%	6.68	%	6.35	%	7.40	%	6.41	%
Noninterest bearing deposits
Interest bearing deposits	1.96	%	1.62	%	1.52	%	1.16	%	0.96	%	1.79	%	0.91	%
Savings	1.02	%	0.97	%	0.94	%	0.84	%	0.74	%	0.99	%	0.68	%
CDs	4.21	%	3.91	%	3.35	%	2.93	%	2.70	%	4.06	%	2.59	%
Deposits	2.82	%	2.54	%	2.18	%	1.84	%	1.60	%	2.68	%	1.52	%
FHLB advances	4.49	%	4.54	%	4.76	%	4.51	%	4.18	%	4.51	%	4.13	%
Subordinated debentures	8.95	%	8.80	%	8.71	%	8.92	%	9.03	%	8.88	%	10.29	%
Other borrowings	4.09	%	2.48	%	3.53	%	5.62	%	5.85	%	3.76	%	1.64	%
Total non-deposit funding	5.63	%	5.40	%	5.69	%	6.52	%	5.69	%	5.60	%	5.57	%
Total funding (3)	3.10	%	2.83	%	2.58	%	2.39	%	2.11	%	2.97	%	2.03	%
Net interest spread	4.46	%	4.30	%	4.40	%	4.28	%	4.25	%	4.43	%	4.38	%
Net interest margin	4.48	%	4.32	%	4.46	%	4.35	%	4.30	%	4.43	%	4.38	%

(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.