ABCB - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the Ameris Bancorp Second Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode [Operator Instructions]. Please note today’s event is being recorded. And with that, I’d now like to turn the conference over to Nicole Stokes, Chief Financial Officer. Please go ahead, ma’am.

Nicole Stokes

Brian. you, Thank to you have our joined And all today. call thank who

Relations third quarter quarter. referencing we general results. comments, are it release I’ll for outlook Investor Ed Dennis and website Hortman, call, Zember, the today our the will and for Dennis and am the amerisbank.com. available of I at opening will about the Executive the details completed over remarks. some back that time make During Ed for With some by highlights talk CEO the And spend be press the turn of going and acquisitions joined Bancorp. will to closing our financial that, and on over I financial Dennis Chairman; section President the Ameris the

website. by our the we result early We in measures of Company’s will or we factors certain the information, performance. might not materially. as obligation to assume you I’ll These results and on are our subject include during update The filings, press our may list risks as We in any new to available remind are developments except non-GAAP some could financial statements otherwise, a law. any Also forward-looking our required release which statements comments that do actual forward-looking SEC discuss and cause these call, uncertainties. results statements. to differ in vary reference begin, Before that of to

Ed Hortman to You it to I’ll presentation. opening that, and financial comments. And turn can GAAP measures in see our our the appendix of reconciliation measures these over for with

Ed Hortman

morning call. to our the good second and quarter I everyone. you, taking morning earnings appreciate join time XXXX this thank to Nicole,

as somewhat short of explain The busy noise, Dennis decades. but good to want quarter we’ve and they are for and go few will I do comments Ameris noisy second core us. The make the trends into seen those before details in that. very quarter was as Nicole a and a

strong The asset to a quarter. company proud forward margin, of growth, quartile results. keep very we’ve as company improving to and the and the stable and board. operating within momentum positive have the this team results what across built moving and look I’m extremely We energy we provide third financial top ratios our is

It As confident the announced, X, of we September so retired on I would you as in call. CEO my earnings and exceedingly relationships X call Executive be board. I’m with built team last previously will and I’ve and our each and on our greatly is and on this I’ll as to albeit proud even appreciate from level quarterly today the the Dennis I retire Chairman customer, I’ll and July the a still that confidence has and expectation greater and goes be celebrating retire. allowed of have every sideline. without will take to the team that shareholder a be It a confidence leadership cheerleader saying company successes. me I successes,

again, I’ll Dennis, turn Ameris you. and and congratulations as back of the over President that, new with stop Bancorp. CEO So call to here

Dennis Zember

well, [ph] was before been back I will Moultrie on a and and really move the to look with Mara, been years Rachel great. you XX professionally it’s building company me beyond going lot or And enjoyed a I’ve and that friendship and fun. Ed, like me going, Ed. years The at million old. it’s I I relationships to Atlanta took we’ve lot $XXX go from value Thank to that much, right. All from about And have, a of of done get kind we’ve – chance what ago. years convinced forward. to learned tell that that XX and that XX the we Ed billion, very the $X.X about to when value I have we’ve XX, forward over and me I you, market The Ameris, I’d called taking that so of created had years it

So We’ll best our Ed, going make and proud you on I do forward. congratulations to the that retirement. appreciate

our talk quarter results. Let’s second about

we’re minute. $X.XX earnings higher operating not share of And we about some I’ll For per to results the basis in XXXX. $XX.X reporting per comps quarter, get which share, do the or impact quarter’s just operating recurring. are of believe from credit million The those a on a include that is XX% do

with X.XX% Our our ROA the even our in coming operating operating and credit noise, ratio to XX.X%. ratios were at efficiency strong dipping

Premium million a after we Finance U.S. loan division about tax few in our and the earnings the share. defaulted impacted $X.XX or During that had negatively relationships quarter, $X.X by per

stated credit costs insurance of it’s an believe these our that we didn’t exclude led results, that this our of are kind we from industry. and this but included quarter, business in of these been not part $XX there is because the We our X.X% were unfortunate to balance isolated of we credit release, agencies on that quality purchase credit only Premium end This which the not portfolio. lines of of balance on lines and because agency and in division. defaulting profitability. to operating levels circumstances our is agencies. these million traditional indicative the these These and our not Finance leading loans quality in our the is growth sheet, carrying is on general are we’ve the original about issue the are the temporarily insurance As focusing of that loans of of not operating the the typical loan very that, At the profitability sheet. operating issue it for business total and press the And in overshadows

I think on going what levels. Nicole profitability to discuss on is

since considered comment losses purchase. which no two of the Today, So, CRE by approximately The or legacy let always municipalities either is our credit is investor me to – portfolio cash-secured CRE this portfolio, non-performers. mortgage our CRE just the able portfolio. side. investor negotiations be the dues points basis that guarantees of included has make of a about demand risky in part the side, XX% or portfolio on It than pool more six our been XX with customers. almost of the points backed past us well-positioned We in portfolio. has all loan We’ve in picky only have of the owner-occupied basis and still of part

a credit. But only dues this for the cycle there the we our And calls on points On points. perception the that only our really I good construction end portfolio, I basis residential, heard don’t the in we’re and mean, at understand of are of other speaking of XX basis out the side, our nearing some commercial I’ve seven legacy anything NPAs the category, were and Past generally that now, in us. is in see concerns overall or that end markets, quarter.

both about to the the that with and closed Both growth, billion. me we – to quarter. well, last to day. Hamilton – last $XX part a deals of bit assets just this total Let talk in quarter. next Hamilton yes, organic day pushed us our the closed Atlantic along closed last over little of acquisitions on both next together,

be consolidations the income On in are the Hamilton and all an deal, and Hamilton there’s will of expense mostly no along These branch with integration expense. or third spread claimed our finished the quarter to we with believe from end second the very Atlantic. so, at standpoint closed backroom respect in a ways. really, Atlantic quarter that from from quarter. the impact have couple The operating important revenues of deal deals the

– is years cost some financial will our saves efficiency results level once provide by slides to meaningful points. to they’re to that efficient fully catalysts get are leverage has need these all and for reset going It lines We and on from these again, our First, and they and through us are – we both deals business the base confidence to some going took us me, the scratch. got shareholders. about Hamilton doing succeed Nicole excuse integrated, be basis there several this there. move just are into lower These hundred that very the XXs converted determination believe lower to initiative by our getting ratio, building our integrated. XX%, to deals once out M&A of XX

is top the mid Our accretive to to ratio that the well. low to – range in in ROA low in mid quartile as deals are recurring already these the X.XX% and

going we strategic have some You is have both retained bolsters significant can in us but and Jacksonville financially, to wouldn’t Orlando rate of both my strategic these is value deals expect our we Tampa. most anchor believe community in opportunity as enthusiastic Atlantic years, acquisitions puts in us the that meaningful the the folks Hamilton gives and that have being leading the bank growth to deals, several and which deals M&A Coast for presence they believe we of among confidence this are are. in we which Atlanta, The employees found they in be realized. a have

at Our one core that XX% delivered in story. growth approximately on coming We story growth annualized. again with

we’ve even production the still and growth. the is yields that, the a and about funding able while is on markets is say some on higher for to core coming yields, I’ll growth production more fierce is are market the and Our type. clamoring growth that as talk in is rates especially years Nicole few seen going moving the I’m it competition past with in tough get from all increased X.XX% multiple to as and spectrum what to about little which across really product but happy the bank. we that people

on loan they’ve for another I bankers great put up. the really quarter profitable our So kind commend of growth

to these with believe market focused able several in converting deals, quick. to core makes we the interested last we’d go a total opportunity give the the more the And anybody these per to going a and make outstanding that clearer. much having a discussed results and and share has we integrating organic growth. be we per deals deal. in franchise saw has operating pick love our speed incremental in efficiency the we’ll asked metrics have that organic are first economics we’ll are that quickly are about I to growth given have We and will but a – more the The and to to as hard, part and still up us profitability is or Nicole we’re drive and in ratios. and machine new XXXX. in as the we expect. found We growth deal hunting M&A. hit say, for and with negotiating the great opportunity that Last of up us, on a it The her we and comment, spread the a the two or half that the still we over still run see are just rest growth that home will are front to M&A earnings in we we to are discuss the promised, our EPS strategies the only of markets presentation be the that We and on we much we year, past the the in confidence in of slides knew pathway the are share estimates drivers that getting suffice has existing beating integrating of any our deposit one ready that had than deliver we XXXX we believe or not good is on both few with at good organic think that with be to included while drive bit to conversations. offset us have on solid get of And not results earnings stretch integrating we a against organic that the real position year way want ROA Ameris getting so M&A XXXX is Earlier exclusively new we but don’t but challenge steal our year, growth. that can enough assets deal. For that we incremental with the thunder, Nicole and it we an level team markets. rate deals new a rely these bankers almost we

on will with details some Nicole, I Okay. hand over it for you to the numbers. that,

Nicole Stokes

Thank Dennis. you,

a a Ed hear teacher a with take to and traded go Ed. happy to I the I’m that and know that, quarter, CEO the and into I’m never quality successful miss leader retirement. I details hope to minute mentor. to the would stories listening the publicly everyone of I wavered. call knows His as wisdom and a and I and Before know support grandson you today I And the on your like Ed personally Well, thank to as company. you of also almost this Ed, going has time spending for want of grateful. in you’re family many former

financials. just – second XX% into of and the details to $X.XX other the so the approximately year. quarter, retirement of we of earnings reporting earnings or are go not $XX.X early Including any $XX.X charges, benefits. $X.XX exclude the and primarily of of the credit $X.XX share. on the the Today, of earlier, results I’ll So $X.X Dennis last million over repeating merger issue operating – discussed operating total for details the all improvement per These per of same share some quarter. or is of recording spend quarter that which charges we’re million time impact $X.X million million the

Our in same X.XX%, second XXXX. quarter operating quarter return of was in was reported from on X.XX% an which the we the the assets increase

the to standpoint operating the that the A ROA second ago I the adjust Dennis for discussed, experiencing. and I we reported tax adjusted the we operating that X.XX%. in X.XX%. When adjust our in to quarter, new them ROA we’re was Finance Although core that that results, X.XX%. trends it of rate from excluding the credit only our from of Premium equates actually profitability aren’t run rate, a division we costs our ROA if at an mentioned year

this grown So have essentially, increase bank focusing on several an organically did our as by profitability $X.X billion, our core areas. last year, by six by we of points. almost key to basis We

First, easy, margin. didn’t it but certainly we paid it attention to This isn’t the impossible. make yield curve

chase market, deposit offerings of for cheapest sake beta rates lines a the and growth. have credit business from to managed the of remarkable diversified keep credit period us just and of increasing We throughout our having the

and most we’re mindful of importantly, Secondly expenses. operating

We organic everything. and growth have used period this reengineer of to M&A

returning we best our leverage the in on lenders our margin around leaders especially we able take bank improve our and group, trust been more. quarter same our We have have administrative points them and profitability invested which get At Our of we've support still as we increased of point of to about level, ratios. We Atlantic Coast impact, but lowered allowed market the which six a from that levels a to thought exclusive strong three very seems the trying portfolio the also but accretion, nervous higher and to our years possibility two last have margin basis basis against achieve we to the two risks, to decline, of quarter by by a not growth year. host Again, one points. points with the is already had basis ago about to exclusive forecasted possible. great I'm wouldn't belabor potential, this, sag really our net interest only the

us something move of strong that. advantage non-interest-bearing half margin Concerning the second sustainable and our the is margin an we acquisitions, to Atlantic growth deposit should reduce gives the Coast on Hamilton beta and demand but Our by as will holding really the points, an additional in we basis neutralize year. four we interest-bearing believe XX% expect of

in hold closed continue margin reset So that the for the quarter the to we will this range. X.XX% we acquisitions expect low

yields caused little earning in and somewhat, on of all those XX X.XX% accelerated our things yield the earlier come for core same the the note loan comments, against are portfolio. bank loan assets core points in bit. the to production pools restate, production important year prepayment in our Our categories purchased X.XX% on mentioned by were Two to his but quarter quarter fee portfolio yields ago. the our increased Dennis The yield in a a briefly basis loan which broad here. to

we to the points, about First, XX production. into against to able flow higher basis beta, almost rate talks get been almost of last which short-term but nobody really loan means by increases all yield our loan year we're have

about Secondly, points core and growth market deposits the our basis with quarter mixed lending DTA, for in CD second repricing. growth in was incremental considering funding bank and XXX the in rate non-interest-bearing

which and is almost quarter curve strong relates our related of of reversal in intense division, production to in very at really and the hiring the year, XX%. by activity quarter, with level a $X.X close we in steady were retail growth competition. the Mortgage second repricing margins, having delighted the mortgage increase to We're expense increased For of levels I'm over pressure our all existing to last the yield of – coming quarter. our income are this producers construction during million compared which the sources XX%. we're bank, liability to million. had core a quarter Non-interest quarter million that given was increase that the some of sorry, able during increased the remaining non-interest When $X And of $XX.X real to About referrals grow a have to connections. the success number bankers or mortgage the in

Our and above-average profitability strong respect new with growth primary sales drive focus and markets as to still customer will to and Mortgage and in that our group. continuing continue the are believe of we homebuilding our pace builders realtors on to home

in of end first of we last acquisitions, ratio and, by like quarter quarter in expect and in earlier, efficiency something the our the drive said For Dennis in organic range year. lower from to with the and second leverage that ratio style to XX% this reset additional the gain our to along the Hamilton our reported expected Atlantic growth, operating is to quarter, the The second reported efficiency XX.XX% XX.XX% quarter year. improved XX.XX% from efficiencies the

and as quarter Tax same the XX.X% XX.X% XX.X% fourth and in was in XX.X% then rate We Jobs see between in compared XX.X% period will passed that first forward. the going to We quarter tax effects in our believe second was our positive continue year. tax of Act to effective rate income Cuts be effective quarter, the the and the last

or XX.XX% acquisition assets these sheet the $XXX.X increased of total $ totaled $XXX assets side, assets in XX.X% $X The quarter the first growth billion and gain This over Exclusive On and acquisition million compares balance assets. about approximately Atlantic just billion of the $X.X ahead for Hamilton organic year organic X.X%. the in million and added acquisitions, earning slightly over XXX in or increased XX% million in our forecasted year loan loan the quarter. growth of this to range. added

end seeing increased incentive reason, the about deposit million added for and, lower On in deposit Tampa. in the the were last we $XXX of side, for targeting. new can these if deposits. the which opportunity no see quarter, Atlantic growth in was and kind have added In for and first the coming we of I'm the $X.X over total little were better the a hoped. more we deposits of of that by Orlando we than deposits other deposit materially acquisition confident we million billion growth rates of quarter, that in the our the month, the we movement acquisition now Atlanta, Hamilton totaled that $XXX quarter, month Exclusive acquisitions, the

The when division second when can Premium XX% asset quarter strong warehouse these remains touched not believe Production total considering on production We believe which sustain retail that, remained in We Finance We quality the important double-digit quarter elevated of mortgage assets XXXX. compared of our of the growth our the lending was year. last the strengthen next Finance loan strong. annualized over year. non-performing in forward. assets do of last of ratios anticipate same really as Outside higher quarter year. of loan this a our half diversification both divisions among continue production flat. portfolio of last XX% to Premium our quarter increased in to we rate and increased the the we of the by for annualized to and acquisitions XX% provision issue, in same see over our type the our the years. growth when to continues were net and few Loan going lines is Finance earlier group in Premium expense in Outside as business than the our division, Production charge-off encouraging geography. percent second and this division compared

not top conclusion, include commercial positioned We if, in us excited recent into the to our really to loans And deterioration have third we portfolio and construction seen not well real quarter. are continue about going three from when of continue closing have when, it with third the results. that quarter. In efficiency I our The execute financial estate well. acquisitions perform but combined cost turn to our lines savings comments. over acquisitions, we operational for we growth in our quartile Dennis these we back the will will strategy believe organic With to that, and for business, see

Dennis Zember

No closing comments. Yes, for go let's questions. just

Nicole Stokes

It Okay. now for is the Q&A. time

Operator

And Brady [Operator will question come today’s first from ahead. go Gailey KBW. Instructions]. with Please

Brady Gailey

good morning, Hey, guys.

Dennis Zember

Good morning.

Ed Hortman

morning. Good

Nicole Stokes

morning. Good

Brady Gailey

Ed, congrats just good and the in Dennis, luck career congrats by telling retirement, on want promotion. start to on the and I successful

Dennis Zember

Thanks, Brady.

Brady Gailey

we'll are X.XX% NIM start, Hamilton the side what starting which the your of ACFC in kind the talk kind now of Maybe that with expectations in you're yield is on and guidance, accretable range, run low guess, maybe where at I in already. just So of core rate XQ. about kind

Nicole Stokes

Yes.

if – – financial our So have highlights. we accretion our in our you

to increased loan first $X.X of that So on accretion that million. this of was million. year an one is and Coast. the Part the quarter impact Atlantic quarter the was about in second That first of of $X.X payoff part

Hamilton from is some So from by the Atlantic anticipate based acquisitions. in off to future what's range what's what million $X running coming of the $X.X on that offset million Coast, previous and the we increasing on low

Brady Gailey

happened All Premium what in right. And then just Finance. on

insurance to want two don't to agencies default? the pressure. caused I what So

actually all unusual but what some you think I circumstances, them to mentioned like caused default?

Dennis Zember

the a really first insurance as the between – have a difference in Finance. the we're Since operating pricing-wise insurance wasn't funding the to about offerings something operating – with they've past did have results. that's by. it use I agencies lot agency get in not will Brady, weaken by customer get not Ameris, BB&T's – to we’ve we been kind the of don’t issue U.S. of principals want publicly, operating I that to lower we into go just it to or it's do of on want or and not Finance, bought used anything just It recurring not issue. – mean, I issue, they come not results, it's smaller – bad a we – – I on. There's so Ameris, we offering terms agencies the really face a of tell insurance something not more pricing. offerings to don't offerings funds customer are, and things Premium talk that that's you really before no cost and what difference you what U.S. wasn't owned. able means – to now credit expect bad to to really offerings, agencies a credit or I to offering means much don't was some that them in bad would us companies bigger decisions to unusual It want It was an the is, induce came the across they that to as circumstance board we've lot what Premium agency what the than any but the a say experienced the opportunity of in will our honestly, – especially in credit they compete, Finance in business take generally insurance the I the and that to side. to credit offerings, say Premium we'll what that this kind focusing but that

very So down really $XX compete to we portfolio see And we do offerings. to on of end why $XX the it successful this the be and amortizations. I million are million. And from that's can on the by and price these year, most can is – of credit short solely don't have

in next two out think were so I And XX pretty months we much to the of years, this. be

Brady Gailey

me. All liability. about million talk And a reversal $X last for Nicole right. the heard I of a

like captured So income. it other I it in looks think was captured fee – it was

detail us fee that a just that, little Just more other income. in give that was was what confirm far as and as

Nicole Stokes

$X It that million to of accruals had That’s of showing statement. that we the so longer a some right. Premium income is we related in and is Finance, our reversal pay. liabilities the liability income And it's a have non-interest that section no and that to

So were release, $X.X And expense million provision company if of in million. the the opportunity we it's reverse to net to of impact out a math I'll give the able million with $X the on stated that. you'll of we to press notice $X.X And that. take

you expense the million $X.X this gives $X You have reversal impact. less million million provision $X.X

the this Premium Finance Your to company that's tax-effect that impact to at XX% and where we situation. get the $X.X net million of

Brady Gailey

you. Got

guys. Thanks That’s Okay. helpful.

Nicole Stokes

Excellent.

Operator

with from Incorporated. Please comes ahead. Tyler go Stafford question Stephens next The

Tyler Stafford

Hey, morning, good everyone.

Dennis Zember

Good morning.

Nicole Stokes

morning. Good

Tyler Stafford

start a Slide the I on wanted on clarification Nicole, just Hey, question X, to expenses.

the million the the you million, the the negative there columns then middle three So non-interest on in $XX.X expense, $X.X got the million. $X.X and

million first way this is thinking less the run $XX.X is column, that $X.X the XQ we is pointing the should that rate – million $X.X So here? roughly plus the be the is million, $XX.X slide or you non-interest interpreting expense to million guys that are so

Nicole Stokes

Yeah.

You exactly. got it

Tyler Stafford

right. Perfect. All Okay.

by So, realized savings guess, I XX/XX. will full cost be the Hamilton then beyond that

And a will kind quarter? – so first full be clean XQ of the

Nicole Stokes

at right. that savings that Hamilton. cost $X.X X, the That’s third negative Actually, million, is remaining on that Slide column

have XX scheduled and October. closed system we conversion the data So June for on in we

some in have all quarter. $X.X the that is after obviously we'll October, And so be there immediately fourth million the will but not of cost – they savings – those are cost savings that

Tyler Stafford

In the first quarter.

Nicole Stokes

In the fourth, yeah.

Tyler Stafford

quarter, okay. In the fourth

Nicole Stokes

Because have Hamilton there. we coming out

Tyler Stafford

Yeah.

Got here? expenses, revenue guess, is improve the – you to up Dennis, quarter, are all quarter-over-quarter. guess, then going right. that see And do profitability nicely, about for of just that? the negatively profitability bottom-line kind you there Mortgage from the I What from All it. the can this division? talk the Obviously, that of of maybe, net the but opportunities business what I the kind Where impacted hiring kind of Okay. of

Dennis Zember

you if can… Nicole,

Nicole Stokes

a to little accurate. going certainly it Dennis I’m bit can Okay. and answer

So, they XX%, then are. a increased on. division, One, – look there's if increase is are we And line, there and you production but look portion small it at the an this by if their little portfolio-ed Mortgage benefits quarter. bit look does things they at that going because several a their salary you

in So gain on paid net where didn't necessarily on And XX% we of hires. have also have we commissions an we those sale. increase the then, producers new

getting they – we still onboard. are So

months built first of have back So that up. portfolio get draw until their we couple they

So we really difference. this that that's lag the and felt quarter

So speed, all once prior think profitability to I that we our to back we go in back where were up will get quarters.

Tyler Stafford

Maybe, investments starting just side, one on we so the got expense cumulative to growth expense there downs and kind a need? or more year. for trying or normal just Okay, Hamilton major or Are growth then from of framework planned there? next that any you like feel And get anything just kind get you think about and, expense it. – – XXXX, now, we once that should Beyond we realized, cost point the savings of the the how ACFC more for

Dennis Zember

opportunity we're love We're want the and the there we feel have are levels, hard, – we we producers Tampa. need but growth we say more. like really Yeah. and I especially to about to we will and in be Orlando recruiting the Atlanta and the like – going what excited

there. are we So

lift going I out, that if you is growth to as would I don't muted. know happen, will a tell whole far team expense the that like but As be

various out, slight pressure. looking – you curve to going does – give margin are yield We

flatter it seeing and We it, you have and exceptionally keep I but managed just more flatter reports. just well, and think, more gets

couple there a a and think, I and in the will be of efficiency. next we've help we're actually insulate us with have flat. just ourselves for we'll talk what about the of do even months that than And risk we a more margin few operating us be known to a there's things, ready going been muted So, past little growth may help that probably revenue having outside to in

found. has make far found driven saves been those right as an the what – we most ago everything what been that A different investments a go, the of that little have in IT year $XX with or pretty extra much more or extra – that extra Nicole ago changes, what law little risk has I we've she's the paid for really few to been extra saves pay but Nicole savings with was bit cost has now. than know going background that doing cost is for some we the as and over of think has months found is cost investments a billion and – Nicole it have investing that on or to a making that lot a and investments management in I of

Tyler Stafford

your pleasure. Ed, you I been retirement. Okay, well-deserved great. hope truly That’s again. Congrats a enjoy guys – a helpful. it's retirement, well-reserved

Ed Hortman

Thanks, Tyler.

Operator

Curtiss go Will from comes Jaffray. ahead. with question next The Please Piper

Will Curtiss

Hey, good morning, everyone.

Dennis Zember

Good morning.

Ed Hortman

Good morning.

Will Curtiss

the on and some get see, Ed, on And Dennis, let's I question – color – want had just on to it retirement. great run The balances. congratulations first this I the CRE the was keep up.

just of from legacy thoughts I think environment maybe what general regards kind book with this quarter. the heard in other to And on they are recently? competition, given flat we've banks the CRE in your

Ed Hortman

to, It intense. that's is of glad really offering and I go size is banks kind for guess, intense. the only really been smaller. Really our because that our mean, I not

the we'd there And is intense so competition love – notable.

the it Structure-wise the out actors comment we and of book bad the can you yield don't ago CRE. the really structure last recession. offerings I any what – that. Investor it yields in see that years not don't. on outset of we was Really, the You structure, there really you ahead on years or tell this that will side. can It's see

of projects what stabilized investors have to a have that kind had lot have become that get of out – do. getting the – have – a increases think that fully of investors things of couple opportunity are years seeing and I are are cash do RIN

you more seeing a in growth side. the payoffs, side, bigger for so little feedback did on And XX%, in If be that, – are that and could second we come kind above that on quarter little Lawton's sort quarters what with we a going on average pleased than were we but to which us. to third quarter better thought give at loan especially of of here, second we're actually expected investor we the CRE he but

think to is little the I quarter's, close, second as and scheduled I but CRE looking than the third be the pipeline think quarter, a I the maybe quarter payoffs at to think third what's strong, investor going – from stronger headwinds all are real.

looking that's new are a the probably commercial cautious a credit a that fully more new or end little the that before idea project perception the construction I new three you Beyond at stabilized, years I a that's affecting us multifamily deal mean, warehouse that get got like nearing that, of too. that. a on guess, apartment, the great us I really it a made that, cycle, I or about – mean, anything we're now it's into we comment

we we what a initially would And deal over a a you now. of her a year had don't little was deal. know year a maybe because had cautious you today, kind right think I ago, have mean, year Nicole I warehouse so three-year we're holding it we year a be to XX% a the – that the in some comments more – done had – want to or last of ago, And growth comparing just project ago. if multifamily

what sort I've and that So Did that of little I the been that's have Will? specific, a help, they think probably maybe too, is more but for pervasive that top us. across industry. some mind comments, of heard is not

Will Curtiss

And expected impact appreciate last then, on any the one updates Yeah, very Durbin? that. from just you the for helpful. me. I Do have

Nicole Stokes

before, $X of that said still the it’s we've kind million. same do, about impact We

So, starting million. about add have next year, we $X to

Will Curtiss

that million, pretax Okay. is All And or after? right. $X that

Nicole Stokes

Pre.

Will Curtiss

Okay. Thank you.

Operator

Jennifer Please with from go comes ahead. question Next SunTrust. Demba

Jennifer Demba

Thank you. this going your congratulations are pending year. really to retirement in Good Ed, morning. on

Ed Hortman

Thank you, ma’am.

Jennifer Demba

Dennis, congratulations

Dennis Zember

Thank you.

Jennifer Demba

So, can been haven't of can yet give ones on accomplished maybe the if efficiencies growth expenses what that to muted or top on expense little year? And you how you more next hope you find – merger-related you keep us for? detail a can you're looking

Dennis Zember

pick in now at several probably to we've of that move XX% our not a our we did been M&A to at going anything to years, to we've ratio, say without any service half thinking, half provider, of years which done we we’ve lines given we we're we’ve operating And and for, really – side XX% we I'm probably – that leverage our we're close from tell that, from to opportunities able there. giving the speaking, the what the And secondly it's broadly looking branch processing really months size – to getting just that we're coming and with We're last most And maturity look than now. will, the – and are you going XX%, been doing probably, it, from negotiated but I happy that really contract. were too. so be years, we’ve numbers not system. our core expansion had not the time of we – we about We're we're the been with that of last were core will time I I happy of was kind perennial on branches, to branch not we've given as really we're able really efficiency been What we're the able believe building easily known I'm of about done, the probably growth, is three that we less M&A and are business. since efficient there's to up have. to some move the going but deals, XX

more I load fact just for year. need when year – into the expense those the do see – some of we’ve taken the strategies combine both you with that already going to M&A the next opportunity investing, administrative the of So this this pending M&A plus think M&A don’t I a lot

speed, the are them, do – side, home, I them will giving to what offense, confident they somebody going side, we’re somebody we them we think if getting resources play Now, – the let and that – can are if producers the to hiring move do. we on speed, top we getting with need we our – revenue up them production them our find

at earnings look are that that’s We’re efforts, revenue from a and caused the on to the I us I standpoint, more riddle. the more interested us we’re in help – revenue the – in feel solve believe the It’s side. in not have me, But have misses afraid past. of excuse Nicole today, reengineering think we really past all misses production side, less bank earnings investment administrative what’s going like caused that investment and And what’s I us in at the when we when not to very to that. – mentioned

Jennifer Demba

It’s very you. Thank helpful.

Operator

comes ahead. go Next Whitman from Casey question O’Neill. Please with Sandler

Casey Whitman

Good morning.

Ed Hortman

Good morning.

Nicole Stokes

Casey. morning, Good

Casey Whitman

and I actually Or provision ACFC? it quarter? $XX think how – assuming was to what’s in just understand back the on Just Tyler’s between Or like million full there reported go in the a question expenses normalized I’m difference second a you quarter. I million the like was you rate expense run in at quarter Slide it got to $XX that include starting Does is that second like least normalized X. in the it of there? it trying of like to $XX I that believe was think a – million

Nicole Stokes

the in we part expenses in hires for add Yes. new are that end expense second incurring have know incurred quarter. we we quarter. that at the the some some that are as that maybe quarter There’s the There didn’t full things other we a included also of we of that only some

had get end added rate quarter. know that of what So the those we for normalized the will in that we a in came be run everything to at

Casey Whitman

kind your expenses group Premium I quarter versus but I on in was then last of be, out quarter? the I just coming guess, anything again to – this future? then those around commentary my and credits, up would the look appreciate driving, question Finance And there all I as what other come the guess, Okay. at Is expenses

Nicole Stokes

Yes.

So at premium looking the – of you’re reporting Premium in the expense Finance? of the the section segment non-interest

Casey Whitman

Yes.

Nicole Stokes

$X.X compared to That million $XXX,XXX?

Casey Whitman

Yes.

Nicole Stokes

first quarter. From

Casey Whitman

Exactly.

Nicole Stokes

that the amortization we most from Atlantic an basically but portion small how one here if the the And of had on it amortization – only a intangibles That’s month Okay. income Premium from the of is it And see that you’ll rest increase. and you then of there’s in that, main acquisition. statement, of the – Finance. look the

Casey Whitman

Okay.

So that stay? will

Nicole Stokes

the if we a And color second of quarter. – there. little amortization add can well, The I bit as in just

Dennis Zember

catch-up. With the

Nicole Stokes

a identifications evaluations catch-up. our of third-party catch-up, didn’t finalize and There’s until those intangibles so them identified January. the quarter. $XXX,XXX in of Was about second we all bought We

to had we So book months basically of expense. five

So that Does about better rate? gives a month, two that quarter $XXX,XXX it’s non-recurring. you of $XXX,XXX the months is a expense, for run

Casey Whitman

an wishing questions, All been does. you right. great a my you for taking it’s Ed It pleasure. Thank retirement

Ed Hortman

Thank you.

Operator

next from FIG Partners. today ahead. question go comes with Christopher Our Marinac Instructions] Please [Operator

Christopher Marinac

footprint from of want Dennis ask morning. I you on Ed, see just as an what in to good question or earlier deposit of you possible still pockets and deposits It’s pricing and the thanks low-cost Nicole this? indirect to kind about extent opportunities or Hey, have to remarks. back exploit what

Dennis Zember

And salespeople wouldn’t focused insurance would you warehouse they on have ended or you do. those walk with think a I they do. up the probably folks have some really, now, selling we complement opportunities, for offering just of out. just those have in – of or not are a our credit a meaningful but And us deposit the of that I much they two our deposit equipment of might mortgage you – business. complement are agencies – you divisions full tell think know weeks ago, a and relationship full you that finance, the the that It’s more might think than not not lines in

folks Premium customer, with Finance front we’ve time checking outstanding are walked salespeople. every we’ve out and Our in Mortgage especially gotten our folks a of account. And a

going the and account, walk have I’ll hard. Sometimes, our you we’re we’re that checking that a divisions still – to in talking in can recruiting and – getting those people also reliable. accounts hiring than still play tell about but more been back offense with we checking out

– there. some and hiring officers we our in game are been deposit class, the what salespeople our late know branch to don’t people and the moving think on that solely side. our today, sights we’re role. sales focus think best the – – I I who have doubling commercial deposit and best back of go treasury top that can – the amount on We’ve we’re not into into markets been We’ve number of that been is you definitely of but been gathering. our our have And of I the So hired managers role. We’ve moving We’ve head recruiting. we

same we’ve offset CD as so the the rates they energy about is deposit money growth of market fierce the kind the way to honestly because Fed accounts. people the are – movement And sort been are that creep so, and the just again, accounts And are if there, mentioned, getting so and the checking speaks laser-focused you Nicole of year-over-year, that at only betas as that it’s you now on up deposit And of rates growth and checking in really, look there. funds. to which betas. getting to some Chris, kind XX%, closer maybe I’ll more it’s of tell

every seriously people for they can. of as are one those fighting So

Christopher Marinac

It’s that. color, appreciate I very helpful Dennis.

benefit place sort future the are new we last in the those now of So therefore, the in in of any that, products? see are couple with incentives And could quarters? months of these

Dennis Zember

I. – but incents I May, date, plan exact end basically bank May, don’t out that very with anybody an came outside we We the incentive and start the of of our Yes. – know the at in Nicole end

getting not pretty for it, way anybody kidding. a to in any expected still Basically, for – but just incents the material We’re it new sell, deposit. bank incentive I’m but for in we’re

Now, it relative. is mean, I

money the amount, pay you especially rate don’t a based If your sell. where much on CDs quite account as what or is market rate and accounts pays checking substantial

Nicole Stokes

all of retail everybody included opened of Can and I as functions past incentive. bank, of that That’s banking the now in the just on think any add? did the on in to both anybody you when difference past not have kind people the the administrative well, side I up And the before. to to up think in has kind those all functions. really that of this when We’ve deposit side, the gathering the had, who wasn’t – said lending it we’ve opened of Dennis but on

Dennis Zember

a in that really, obviously, the of built. And – span with Yes. just enthusiasm

and top is in – that, more this stay of have their going impact, place. aggressive have they in assure But their can can It on is participate going about this deposit-orientated, an incentive year officers little plan a average, month, what it’s it through but deposit I pretty the we we’re just that of side. you’re the and which commercial varies, of as XX% on some think Atlanta incentive pretty and opportunity, I see one it’s about confident else from introduce on think, That Chris. it mean, Our going just we to is average And in XX% – to that’s and on to I we’re see nothing third results go to in quarter, was – Tampa you. if there, I good. Orlando. the going enthusiasm awareness, in did

Christopher Marinac

best help. Great guys. you to Thank you wishes well. for all the back that’s an really, really as And Ed,

Ed Hortman

Thanks, Chris.

Operator

today’s this Zember conference will Dennis over conclude question-and-answer to back session. this turn to At time our the for closing remarks. like I’d any

Dennis Zember

on participation I your call right. All appreciate today.

be happy have and you comments questions your e-mail. around If Thank weekend. have the a will to on you phone All or with and Nicole I right. get answer and great or any

Operator

This has conference you for concluded. now presentation. Thank attending today’s

disconnect. now may You

Ameris Bancorp (ABCB) 27 Jul 182018 Q2 Earnings call transcript