ABCB - Earnings call transcript Q3 2018

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Operator

Good morning and welcome to the Ameris Bancorp third quarter 2018 financial results conference call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Nicole Stokes, would like to to over conference the Chief turn I Financial Officer. Please go ahead.

Nicole Stokes

and today. Thank joined Chad thank all to you who our call you have

the Bancorp During some we and a opening of details to with comments, Dennis about Officer. highlights are I results before Chief I the our begin Credit expected on the Hurricane Dennis available quality discuss general Zember, am of portfolio our and CEO and our of Dennis will will impact and credit Investor on section the at include Jon will referencing President few that Relations call, provides financial Michael the Jon our website closing the Edwards, will press be make joined comments remarks. financial Ameris release of amerisbank.com. by today

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

the appendix Zember over in will presentation of for these with turn Dennis measures it can GAAP our opening that, reconciliation measures And and and You our comments. see in I financial to to press release. our

Dennis Zember

our morning good quarter taking I third join and XXXX on us the time Nicole you call. earnings this morning to you appreciate Thank everyone.

we the earnings We results our quarter have ratios. excited momentum are about our operating and this in with really and

some net or share momentum $X.XX million in and $X.X branch cost. excludes in operating reporting charges, the $XX.X in $XX.X quarter, retirement, consolidation particularly about still operating we and a the earnings earnings strong, million are third have know given those of costs million, our Including key. For merger of executive we which per acquisition very that reporting ratios share. are the I and came income this move in Besides quarter, $X.XX we

managed results the here grown that, we ratios apples-to-apples with sheet rate words, XX.X%. margin, have a quarter's To do this, to same ago profitable. to by earnings announced through of the are which you current XX% are I quarter Most how the grossed by few efficiency a material other our up this digits. and our profitability we rest how can see conference of in by going make improvement excited the now built staying rate. I tax operating Our class. about spending and the numbers. at just would operating cut? weeks the and a margins didn't Talking overall in in about we moved to bankers in cost have down go the still I in current came X.XX% in compared meeting, current the top assets, of strategy a at earlier the on I savings the operating cost the quarter gains transaction this the above a on amount come about our return or hear guess, just to am same in in Hamilton the and going the of assets would was dedicated remember was I I have have quarter. of the have today, XXXX. in that In core didn't ratio using double her quarter or wagging we on in invest Hopefully for with environment balance in proud results not industry Nicole tax really, the our little compared to return realize more the the X.XX% up that our savings question at less some test with We we The that on love third was last fear, Sitting almost year out year Washington. quarter would was performance to XXXX. law us That XX% me industry XX%, stable ratios that machine comes none improved know from I when we ratio next same a organic higher to punch from happen And acquisition that tax strategy and here. our our finger forecast would quarter just fact

ratio hyper it of mutually right long-term we profitable. leave quality realize that recalibrate are will feel being will still direction in of resources. I it the be can I for moving a alone. the these now. savings. So be and in have customers I for we do think on especially for I that's per ratio to the obvious believe yet expectations as If on top had earnings but it move efficiency share, assets. is exclusive, critical that be very see confident master this with But best don't with on second, keep focus what class to willing and to to customers I a efficiency the our XXXX's our success important on a the we without I for best efficiency company in hypercompetitive could in philosophically cost return having

quarter, higher third entire linked as the X.XX%. a move came earning came margin basis excluding which margin negatively the percentage only X.XX% impacted about in quarter four against margin in of a The quarter margin levels accretion, assets at short-term Our this of in assets by of points. from

third were of but and past wanted of we sheet borrowings. of Our managed Federal quarter, and cash balance integrated. Hamilton. we the extra cost on certain and closed exactly used we it we to liquidity the managing Bank our the Home extra been had paid that cash how yield years couple and off Subsequent Loan as have the sides for end both

expect mostly deposit but with And is, got a erased over ahead which evaluating moderate full the little on the business. betas I us sensitivity smaller past the pushed interest-bearing know Atlantic On were one these negative rate I cost, a but The saw banks was couple quarter cost of costs, on of both our will quarter quarter. of quarter we this the next of Coast to deposit a moves, which messy fully side cost this and to the that fact quarter. growth, those same influence there is We higher. move interest-bearing to on fourth we quarter payoffs we investor when a in a CRE lot comes discussing, our related this this and Hamilton, had commercial had industry be experienced this loan mostly quarter So growth of the past. loan we construction. will that quarter in the deposit than is slower what in the have levels it

now, but two have the marginal noticeable expect especially was acquisitions, important paid of mind And attention We what where or on large we I customers as small XX.X% than this has quarter XXXX. had, than call feel had is fierce quarter and we teams a deposit were in acquisitions this standards, has I a of growth off. second this enough growth more don't remember. counter going with see growth. as will nothing deposit more pipelines that is outside deposit profitable on XX% is confident because can core affect of growth. top great and This certain together, the that no in this that the attention has really market. the but just solid our production year. especially our competition in out two paid It's credit effect, company We out off going in for target that core move against in feat fierce. Core first This quarter year's balances we for move. do the also don't growth These will to of beat M&A meet annualized on been the Across about I forward right I year. last attractive we saying came accounts as This these deposit negative this close that at deposits, rate

margin a it doesn't So could digit to deposit clip an push manner is core entirely that double lower is be growing of different result. that at your in thing one a kind do

in loans. of anything to a for higher year. our respect compared look last with finished looking We loan quarter deposit growth inching this time in I rate. changing XX%, deposit this I rate to loan As ratio expected still don't growth about our towards growth forward. to continue are double digits and see for growth with We to XXX%

So we say if there growth have in about will Nicole past. some with more cushion in on I and more stop the Jon But something to the facts. rates let than results and we I lot weigh have a manage let first me had can. M&A,

to I me, for about or the shareholders, the this game. does deals. This doing the tone, two worry to like and but about a stock given and worry the have quarter that on that or nobody period. teenage some reacted how be prices a of Talking I later especially have will hurricane, would listens with worrisome to in whether need were about. they we raising in have all worry that pretty moving to now A reward questions deal be not a these by our have that of affected Ameris had lot a about lot come sons we not questions folks it our worried We M&A still particularly be lot markets call

formula meaningful And are in that's rewards to value. any our use market have book to boost for and past. that that economics rate. simple recipe the done The accretion. something we we market strategies deal deliver and it tangible in a is that the be the Our needs growth That EPS reliable would It been. to has a different is has long-term it not crafting ever than something neutral

and it more falling storm. even management price. but good enough give some team I with me stock today's have go aggressively we through customers today Jon's but our the quite and you can we blessed a not can. we are say hurricane your but branches after but comment, find where with Board his are Our obviously we deal affected help going rebuild and have ahead employees Please and tremendously a are am creative efforts of how we we the in employees came and deal had well about good deliver company with that the that storm aggressively and our being where how people impacts that services to suffered We do credit and resonates keep few story we were thoughts stock few that's our our concerned We prayers these let in all price for in that can't that closed. color business and branch to a up to is showing the a four we as and months for they rebuild. open a markets closed

So turn to it some I with that, Nicole, more for will you back details.

Nicole Stokes

Dennis. Thank you Great.

today was quarter consolidation per XX% and benefits charges, share plan the the per expenses in million million of exclude quarter over improvement related operating reporting to of mentioned, retirement merger announced at total $XX.X branch earnings $X.XX in same earnings are all the XXXX. are these you As share. operating which third These September. or we primarily $X.XX or reporting charges, we early Including an $XX.X results approximately for executive

our rate expectations presented deemed this adjusted XXX(m) impact deductible XA from to was notice an in effective line going rate net tax the and is an that our with that income increased this quarter. in will was of as forward. XX.X% effective of quarter this of rate calculation correctly over the on executive XX% our quarter. result last tax add-back. retirement We XX.X% adjustment, tax in You With Table the third the effective This XX% a expense not and

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

of representation our are an this We is profitability. of north core believe and proud ROA an impressive we of ROA X.XX%

margin balance both We the make while on curve and have such grow to sheet, organically as operating able been focus The challenge. through the yield keeping to margin key efficiency. a acquisitions continues results and

quarter. Our X.XXX mentioned, this accretion, margin Dennis points declined X.XX% quarter to quarter last basis excluding during as four the from

the during assets earning quarter short-term we Dennis balance our increased third to on X%. to As excess mentioned, over had assets sheet such liquidity that our ratio

off reflects expecting the north margin $XXX Hamilton increase fourth would to we quarter. Excluding excess of the to expect FHLB of were the paid X.XX% acquisition. X.XX$ quarter and advances our liquidity, we the Subsequent have and been matured they margin end, certain this million approximately from we as return in

third XX by For total basis yield quarter, basis the our earning points, funding cost XX our points. increased while on assets increased

in we On increases yields. saw both the asset side, and loans bond

production same quarter quarter X.XX% Our for were the the yields X.XX% core ago. bank a against year in

On the deposit conversion organic well were and there side, pricing, products Dennis to many the and as with and as parts our mentioned, as systems deposit moving strong acquisitions growth.

to line expectations, monitor. beta points is deposit with we continue of XX basis in something year-to-date Our our but

considering CD growth repricing. expectations funding the bank with Our in and rate and growth deposits our within money core for quarter third noninterest-bearing in mixed incremental market the the was

declined cyclical offset fourth curve by be the charge the we quarter to of the X.XX% will compared yield funding $XX.X and revenue deposit third up of quarter. despite our the remains Service and Hamilton allowing organic in influx to strong. Noninterest when we pressure full margin quarter deposit intense the million going competition, the but return growth above XX% income quarter quarter, With Atlantic income pipeline cost the and due fourth stable acquisitions. forward. to level the was believe the totaled second in Mortgage again, in slightly forecast

comparing increased rebounded saw year. third time we quarter premiums mortgage quarter still the premium time XX% on was when this year. is to same production fact, and remains gain stronger third sale it year this this last In the The year of over now last of the pipeline below than the quarter the last but somewhat

We or producers continue have to sources construction of connections. recruit that referrals steady

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

One most things am our of operating I of is ratio. the quarter this proud efficiency

improved it of the XX.X% third For to XX.X% XX.X% XXXX. the last quarter, third reported in and the quarter in quarter, quarter reported from

the fully the gives after throughout the year ratio integrated. will ratio initiatives our We low with is be fourth XXXX. in leverage expect additional improvement September the end efficiency in this saving the us year Hamilton This in XXs announced very quarter cost and that of efficiency the in combined confidence by of

in of strategy improving of as operating a have Our past we the ratio dedication year of the balance ability mark strategy. our to growing execute efficiency to while the sheet our our execution over is XX%

of we growth On the payoffs slower the came after and from earning close figure payoff materially acquisition, which X.X% growth million had expect the increased Organic the growth our which growth XX% growth million of quarters. by double-digit in is still all loan next loan production, by lowered X%. year-to-date of to Loan believe balance those was which by third rate net end net second this were $XXX strong our the XX% level actually sheet those quarter was to including this annualized, the side, higher strong and same over at than loan in and and at was deliberate year. or quarter, production In last than the for third total over in we but was period Pipelines year bank unfunded X% offset was strong attainable. in quarter of few the the quarter in assets. increased quarter loan loan was the we was negatively year of $XXX payoff XX% core payoffs which reduced Production organic production commitment which to The higher X.X%, this XX.X%. the fund an of time the markets, first forecast quarter early impacted acquisition. more to than assets early

our the quarter. deposit for cyclical effects Exclusive of deposit from Core of On this with the almost last pay acquisitions in core We funding total total excluding are still just $XXX continued will deposits and deposit of in higher of our up of at relatively or usual quarter, of flat this the anticipate the deposits the quarter. Atlanta, total DDA X%. grew of opportunities year-over-year year. growth that in third the the the is FHLB accounts end XX% million year-over-year noninterest-bearing deposit over our fourth strong advances growth deposit fourth growth markets newer really than XX%. Orlando Tampa. such up Because time as to growth, deposits of such mix faster keeping the ticked deposits over the see acquisitions, side, quarter improved that cost has the that XX% us We down some the allow increase

last this in we see fourth Production over to And XX% quarter over in considering total year. by was same retail XXXX. XXX% division quarter XXXX. quarter really production SBA continue of lines business to mortgage when have production third when of our Production higher is quarter and XX% the the over when compared loan in the the opportunity encouraging the division growth increased our third quarter remained We in division year. important last believe strong warehouse the to than and increased lending this throughout in the compared as

results will integration we recent financial quartile the we Chief results. that next Credit Jon the XXXX. a the We sustain saving rates and credit XXXX fourth our years. look and to we impact quarter it to and for continue double-digit of And confidence the potential to can for our continue really with successful proud in quarter two give with growth announced conclusion, acquisitions of on month Jon? comments and In combined these last Officer, Hurricane believe forward us quality the our are annualized Michael. to for I few divisions top over that, third initiatives turn outlook cost Edwards, in The

Jon Edwards

Nicole. Good everyone. morning you Thank

XX% First decreased Overall, improved X% primarily the improvement and other over me asset most the versus let third assets speak That capital. points after less of collection performance. within second but quarter assets Nonperforming placed second classified of on the regulatory and quality remain quarter and totaled assets. certain nominal was third total quality. demonstrated concentrations result of loans bank credit manageable to remain activities, Similarly, satisfactory and quarter metrics in quarter than basis of accrual of sustained loans total our back decreased during the our asset also and third XX having Past due totaled guidance. quarter. payments

Our charge-offs was that quarter were finance were in Overall, the quarter. little off third subject a markets the premium second the certain thing one to due build during and were higher the and primarily was quarter that loans robust. our remain charged to that really primary reserve

currently that's We deterioration. not segment are portfolio of any any material experiencing seeing our

So good quarter it was a overall.

Now the Hurricane let words about impact me a say of Michael. few

Florida knows, as is St. communities coastal developed Florida full the certainty when impacted west in Pensacola the the response Ameris Clearly, reality, speak to primary severely as real to this primarily will I a communities First, Matthew we but will about it's everyone Bank what our referencing in to Irma between impacted, the storm In coast. those to and effect our east along also. But communities, customers had template note, in as follow with early on not George on XXXX, whatever help aid and in that do know XXXX that necessary too Of businesses. most other strategies Island the impact many recovery. to areas, be I our their side. for in Georgia and customers and devastating likely bank. storm those to has will those or we were and am Hurricane individuals non-coastal

Depending of I term down loss of $XXX farm time to Clearly, million total of loan there as speak loans, those to amount material. of incurred need payments Our from that impact potentially disaster secured was as some into some both which our the were insurance affected about. located latter needed totals been primarily losses not broken within pecans, government really low agriculture, government including from located will payments. I that up The not overall businesses most bank's secured farmers total, loans, and proceeds exposure loans, those crop loans million, think the harvested many agricultural markets farmers as peanuts restructured portfolio are Of our I partners crops as all The related by believe parts, of and to be and by real farmland. estate operating low-interest material for if likely the production storm to our primary and well type areas, loss. impact may had the have affected of am have loan is going carry, consumer direct available which be the XX% been lines. most to yield ag the restructure a as most the in XX% Remedies on installment restructure really include where not through ag on that several forbearing about loan capacity programs should hit. your ranging and actual three the storm. or is $XXX related and a were loans really of cotton

will for Additionally, as guarantee lender preferred needed. Ameris Bank the and FSA utilize program a is we

construction as relates Now loans. our secured million, areas exposure residential, impacted commercial including to $XXX and those loans, to it estate primary approximately real total

and lending and entire City impact and X% visual of be is Panama still let of say for million a our In that But our to specific summary, sustained that, expect measure and the builders little it's $X to covered loans, loan markets. call of information determined for approximately clear, with Our or give but complete the a still of homes $XX that still closing in million our inspecting worth to residential the commitments, the are Tallahassee you by damage we than and watchlist inspections, I we of damages, in a small discussions as the becomes so segment assessing $XX process turn allowance construction early to example customers material to damage me than bit outstanding unclear. we have staff properties will have Dennis our million Subsequent make our will less necessary comments. to outstanding. for less loans. any will over insurance our the I impact, adjustments back losses. most With final

Dennis Zember

Well, quarter to guess, to on that if like for note, earnings any everyone third like would see I I thank our to and there okay, would results again listening are back to questions. turn Chad, it to

Operator

Instructions]. [Operator

Gailey The Please first ahead. question with Brady will come KBW. from go

Woody Lay

Hi actually This Brady. is guys. for Woody, on

Dennis Zember

Hi Woody.

Woody Lay

Okay.

So first, in related acquisitions. was the you deposit rise to I know two largely said costs the

you some could So I the bank's legacy if over wondering deposit quarter? the was how cost color performed on give

Nicole Stokes

Sure.

real shuffling were we papers quick. Sorry,

Woody Lay

okay. It's

Nicole Stokes

everything like our did overall see is a our But a we helped in non-interest-bearing we And because noise, second quarter, was of was you the back second core part maybe which if that of in for think were was market little quite money low. the the curve. felt was quarter coming there increase to increase deposit cost. beta of on, of pretty that So and we bit we the behind bank, but sure, did see XX% bit

quarter. bit a the that in have were So catch third going we we up little knew that to

So rate we did CD account market and our rates. then as raise money

fourth was at be to We is did it did to And quarter. a have from acquisitions. the that a majority come we larger increase some consistent. end the third the the believe going bank we next So have quarter. increase those increase have the quarter core huge going of but in the We quarter throughout that of did like feel impact that's entire

Dennis Zember

sort of past deposit in of deposit the and top I those Tampa, how to given of like the I and and will to want rightsizing Atlanta immediately that didn't But was am I not had thinking some deposit of Orlando too, that, is on transactions, would competition with as moved competition when do inherited sort have fierce Coast not we We And cost said, fierce. our where have the taken it would just and that. say adding we deposits we levels. them Atlantic Hamilton

So we where have are. kind of they sort of left those

the a margin grow our are there would it our forward so for doesn't up deposit beta cost going of the so of almost we deposit what think production I continue probably has the you been just zero, as conjunction from move but next and right two those and especially that can couple we remain managing asset of we I we everybody's way back core I inching a managing and cost deposit, continue in. mean years just a to yields deposits competitive, deposit not the at X.XX%. revenues are So in the ours we whatever to the do moves deposit are that but know that keep revenues beta, apply on see into we incremental cost to get higher come mean in take manner deposit for as betas the the affect as, keep so strategy in that asset mind, rate I levels, with those margin. our in smart top deposit

Woody Lay

helpful. the quarter. then this yields, Was those pretty also That's And that asset also they looking two Okay. really big at saw jump acquisitions? driven a from

Nicole Stokes

Yes. It rising rates of it was and some was the to some from acquisition due production. our loan also in then the

and they the yields increased it's last production But both. increased have Our yes, over loan year.

Woody Lay

Thanks. That's you. it. my all questions. Got Thank of

Dennis Zember

Great.

Nicole Stokes

Great. Thank you.

Operator

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

Tyler Stafford

guys. morning Hi. Good

Dennis Zember

morning. Good

Nicole Stokes

morning. Good

Tyler Stafford

Maybe credit. on just to start

USPF the obviously quarter, had you last So issues.

quarter. see issues to nice this was it So no

out You have some got pretty sizeable morning a bank reporting this peer CRE issues.

specifically, anything environment? about Anything last do then the that in credit particular Just bigger within picture worrisome? is well? How to And are quarter across you as you relates as balance just Ameris' feel sheet. the seeing USPF

Jon Edwards

XX% or that still the seven and are holding good. of Property you There carry probably take I investment are markets we part new values got or primary first more will going markets production first. on. know, about eight pretty I vibrant. our have our mentioned that pretty is

any real any seen haven't across markets. of We those deterioration

right now. estate feeling so am good And real still commercial I really about

in right good are we thinking projects and am has forth. so been it. feeling two looking about terms and not about years so months new I So to on But pretty construction next change. lease-up and any out there XX the for now

the On encapsulated will good second and I USPS that the the get. would they they we the I about really to that There got primarily. the pretty feel year, getting, the more quarter, terms watching little has that closely downpayments of segment very about side, we really are sure, small towards that be am end are a things fall that sort the good in some feel of the out, fact quickly but issues pretty

Tyler Stafford

Okay. Thanks. Very helpful.

the Hamilton. on much much remaining quarter? How you in savings with in how expect fourth realize would to And remaining total? the Just is cost

Nicole Stokes

So weekend the integration quarter incurred be complete. is that is $X the system quarter. did about million after We Hamilton we our in acquisition tax actually so will last third earnings fourth anticipate that and

So in million. of a will cost few we fully the year. in $X we And quarter a be then those savings expenses first September, implemented more about have weeks, announced it's few next but for the that

Tyler Stafford

Okay. it. Got

loan about, was On impact an the up can you growth? size repositioning to the talked loan third just that quarter that of you how much

Nicole Stokes

Yes. I have that here. got right

-- total our about were payoffs So right

Dennis Zember

$XXX about was million. It

Nicole Stokes

remaining was $XXX million. From we it and made that the estate $XXX commercial Atlantic that that about some of in up Half the and multi-family, then construction was and Hamilton million. C&I have acquisitions, real

Dennis Zember

than X%, impacted by little repositioning. X%, rate calculating are a alone growth annualized the just Nicole that and more that I about

Tyler Stafford

on I want correctly. one margins. sure make just am And thinking from this Okay. me to Got I about the then it. just more

overall cost be quarter move fourth fund relatively deposit costs So as I be continues guess just lower FHLB X.XX% deposit you what get costs those And to are you we as up Is overall there, and side. that the should are and you flattish with a offset at asset there lift pricing balances modestly total basically on saying? to so but then then cost margin? will

Dennis Zember

exactly. Yes,

Tyler Stafford

Okay.

Dennis Zember

off. mortgage deposit keep those asset keep with And mean have We to are to we move just We to I the still have. pools, think we rate going keep the yields last costs inching benefiting like mortgage move up portfolio, the continue paying got. the are going purchase they

a it, XXX pretty the a didn't on a have pickup same year loan-to-deposit about probably ratio there's now margin ago XXX%. was big we had about right those when much but ratio think renewals. deal of point we quarter, we exact every make loan-to-deposit Yes, basis I I the all so XX% a And and have

we hope So percentage all. sort on that worried even to us, there. the going of really, repositioned held margin a here we not sitting asset, the confident at of total still where fall pretty as loans earning have apart I is margin. have sounded I I have am

Tyler Stafford

Yes.

across. I Thanks that's think coming Dennis.

Dennis Zember

All right.

Operator

Whitman of Casey question will next O'Neill. be Sandler The from

Casey Whitman

Good morning.

Nicole Stokes

morning. Good

Casey Whitman

the appreciate the margin. color on I core

year? shake best we so next mean sense would going the out, helpful. income we the Just get in you get to can of where marginal Just I are a accretion much can be reported how assume guess

Nicole Stokes

quarter. million about are estimating we So a $X

million about So $XX the for year.

Casey Whitman

it? And then can portfolio of how how is much of then variable tied LIBOR much If Okay. Great. your And that loan prime? have you remind versus you to us today? is

Nicole Stokes

sorry. Yes,

Dennis Zember

through. going are No, found. it's We

Nicole Stokes

about XX%. is rate fixed The here. right it's XX% sorry, is variable am rate and I

Dennis Zember

rate includes $XXX one fixed are $XXX includes really the The year, premium from million million, credit. year which finance, one

really prime we on XXs rest as probably and the And XXs the high variable. in really are on high So probably, it's the in fixed then versus rate. rate LIBOR? fixed I mean Probably

Jon Edwards

Yes.

about it's far and as still quite prime. mix the based a It's of XX% based of that probably goes, XX% is up moved bit. As LIBOR probably,

Casey Whitman

the little using deposits with kind strategy terms just quarter? see between you of And borrowings next apologize Okay. I then Great. might what's what we of if And going in broker quarter? maybe walked help this of sort and But through more give us FHLB on this. already a

Nicole Stokes

Sure.

maturity. second we or So broker less. a shorter are that into quarter, They have term the entered year deposits a during

just when for Atlantic advances. and in cyclical entered those the Dennis and experienced we so deposits excess deposits. broker this liquidity we then was we and in also second part of FHLB quarter sometimes Coast in the do a And those have very into that on short to haven't like we have But like term, acquisitions, knowing that Hamilton. that we And are case time. have preparing And we mentioned, very, some those

And advances so already a portion off, those paid off we are in FHLB of paying have we October. significant

Dennis Zember

it and two-year have have dated to broker we may trying would CDs bank games. some play ago couple of margin we I that don't home you done for long are thinking have the term mean, been do and maybe again, advances, call to it deposits been. on deals. Casey, be not smart loan would But And years

We are not even margin. trying to necessarily grow the

think, banker are margin. X.XX%, size, a for solid I having, X.XX% for of the kind we customers is

margin. we short So maintain us trying funding to helps are all term as use that is that this do

Casey Whitman

it. Got

Okay.

should deposits And inflow normal core your broker to as fourth matures? in sort seasonal those a come deposits? quarter So we of of start off, will see

Nicole Stokes

fourth down. deposits the will for FHLB paid be The quarter, will broker advances but stay the

Casey Whitman

Okay. Got Helpful. it. All right.

I on us so to just loans you same for Just in there? we categories organic are remind how just get page your mean of you can what include loans? calculation you the here,

Nicole Stokes

then once covert Sure. have because shift call we legacy, is loans loans And difficult credit the what so category either into calculate take standards we we non-covered It's we are PNC, the all to or legacy, that exclude that. into our we and of they legacy do loans the do and what refinanced purchase under from purchased the

are So just movement what new so true the are growth loan saying our in then we we really excluding bank. between that is the buckets

Dennis Zember

including balance Nicole's looking are at in and you purchased we if financial tables, loans. are So the really loans sheet

movement quarter all. excluding is you including, only and is I we and the pools, are which the So mortgage purchase billion this for this $X.XXX include, quarter if $XX was we thing are guess $X.XXX totals billion it really million in

Casey Whitman

much. it. so Thanks Got

Dennis Zember

All right.

Operator

next from Humphrey. Our question Jennifer comes SunTrust with Demba Robinson

Jennifer Demba

Thank morning. you. Good

Dennis Zember

morning. Good

Jennifer Demba

growth question outlook. A your loan on

talk in makes and And kind the the of sense you Dennis, in Are able growth want are to you the are and to going require? you quality continue digit environment cycle? double point is credits this getting can at this just double you competitive digit you the loan with to about economic believe quality achievable. You produce environment? still

Dennis Zember

the from the still are were a no, with If two not they the answer sitting for I compete ago Well, customers you is efficiency we best we think, those yes. here because are right could the ago can't to of sitting XX% we now, answer are doing kind I yes. years yields is them. that with know was able ratio, I would to lower kind in XX% probably And a the growth to fact $X.X two of talking digits, we we billion XX% demanding. and down and position have position XXs to anymore of But growth. efficiency or bank XX% cheaper be grow double that mid being low mean, of moved used compete. what still where we I in not nominal growth XX% mean, to are XX%, able to close years amount because billion just do approaching XX% with loan us that's loan say loans $X.X were think I low the we than to loan XX%, broker, home fact or same compete on prudent. a do loan going still are ratio the and about core here which in gives been But we XX%. we deposits, I XX%, we have tell

out amount are something loan just not a about less. that We nominal to really shakes percentagewise of talking different growth

Jon up loaded have commercial briefly are concentration in CRE are I on ratios. on not pushing the one I here class. concentrated We investor fact we really the XXX%. touched over asset me am not don't just sitting that with construction. attractive

we that. So do got to I to want room have do CRE if

if and premium finance, there. opportunity. stays lending, Municipal on warehouse more room got have that an still on We there's an option opportunities mortgage

some weren't growth bank, good, we that an good especially feel that. outside loan opportunities a bank would where of Atlanta as and Tampa you, opportunity the they ago. even I Orlando like our with us, weren't year and for really I core looks being big tell or So core new still can do

Jennifer Demba

appreciate Thanks Dennis. it. I

Dennis Zember

right. All

Operator

FIG be ahead. Instructions]. Christopher question from go Please will Marinac with Partners. [Operator next The

Christopher Marinac

morning. issue. Good Thanks. the on stay to I Dennis, want growth loan

get kind the mean much? to we strong, growing balance I want go changes further cycle, continue as along As the not what's in too growing between along. thought. I appropriate that that just we on I but know of

Dennis Zember

we going think to am know. will back I Jennifer's I question.

and I think about that. here thinking more I sitting more am

If trying If the growth I if I ROA now, start right bankers the our continue like same when you managing we will about wouldn't our I way deals know to past. of structure, back growth our and that's growth not just we so got is and will is or to Chris, to that, are going and net mean, wanted we it our would sake we that can that push the level. think across, kind If growth kind pack am the commercial and we some we and the you, maybe charge-offs things send definitely into we we things work. start say are a we get to seeing at think bankers of it you to feeling costs tell for tailing credit like think give have Maybe little really where can earnings they through rates, cost on think our we hold come that that efficiency, years as on I and as or guarantees creative we do might to have quality have we know. is the of start for. XX old. are early rate possibly evaluating talk rate, Jon where to look know resources and to that construction loan are. big, peaking structure our loan this, loans, looking us I When tell believes on industry I do love deals bankers when our ahead bonded high cannot what anymore refuse only EPS we at customer quality. but and I are talking a on getting the credit case, I that comes and if it to would will what growth we in any start happens of I loan

couple I want the a loan And known when next fee tailing back makes So and start we economic be get in places, we When cycle, will whether looking we can to we that have want Does will on what to growth loan to start in we quality I through structure. sacrifice, we other have cost the live earnings growth cycles. of for we can't probably and And hold quality, will. the quality. economic sense? income, or it's get for the growth got

Christopher Marinac

No, the I appreciate it does and background.

of corridor central Just along Florida getting of on customers, deeper the the a calling deep on question terms a you remind quick you Can I-X you as into get penetration customer of as Florida? into much in a how branch it are that sort as follow-up. is us not

Dennis Zember

the end but I-X not I that mean, know of Yes. south the the I-X, considered that large. of world. really end at didn't go even of was really of MSA market We I-X. for kind instance, I Sarasota, really of south still there. or Ed we of Really did the here, go Tampa was maybe was world. I-X just When part Tampa

of deal I-X. concentration tell We be pretty I assisted wise So there's our might confident there but I construction anything. be living would of mean nothing. eyesight may very am is you, not I I would said south small. construction I-X, no guarantee, there within have

Christopher Marinac

Great. you appreciate it. this morning. the Okay. Thank time I for

Dennis Zember

right. All

Operator

the Zember any back turn for to Dennis question-and-answer concludes Ladies over I and like our conference would this remarks. session. closing gentlemen, to

Dennis Zember

you Thank and again willingness. participation for your your Okay.

have any call a might have questions. the think than I the in are little past. you well. longer has Jon, been been and if it I as available Nicole

and if feel us, email All phone detail, didn't or you right. free call. Thank or out more weekend. to question reach we answer a you want have So to good a

Operator

The today's has for conference Thank you now attending presentation. concluded.

may disconnect. now You

Ameris Bancorp (ABCB) 19 Oct 182018 Q3 Earnings call transcript