Ameris Bancorp Announces Steps to Strengthen Balance Sheet and Operating Results
17 Septembre 2008 - 11:00PM
PR Newswire (US)
MOULTRIE, Ga., Sept. 17 /PRNewswire-FirstCall/ -- AMERIS BANCORP
(NASDAQ: ABCB), today reported that its board of directors and
executive management team have taken steps to strengthen the
Company's balance sheet and operating results during this period of
economic uncertainty in the financial institution industry. These
steps include the following: -- Reduced quarterly dividend from
$0.14 per share to $0.05 per share. -- Pursued efficiency gains
resulting in approximately a 10% reduction in our workforce. --
Established new funding lines resulting in $270 million of
additional borrowing capacity. -- Reduced investment portfolio
risk, leading to significant appreciation in market value of the
investment portfolio with no exposure to common or preferred stock
of Fannie Mae or Freddie Mac. (Logo:
http://www.newscom.com/cgi-bin/prnh/20051117/CLTH039LOGO )
Quarterly Dividend Commenting on the lower dividend, Edwin W.
Hortman, Jr., President & Chief Executive Officer, said,
"Although our capital levels are strong, we believe proactively
managing capital through this economic downturn is critical. Our
credit quality metrics remain manageable despite elevated credit
costs. This move to temporarily reduce the quarterly dividend is a
defensive move against a potentially prolonged period of uncertain
economic activity. This action will strengthen our balance sheet
and better position us to take advantage of opportunities in the
future as our industry emerges from the current downturn." Other
strategies to maintain and improve capital ratios include
suspending the Company's announced stock buy-back and slowing the
growth of assets. The reduced dividend combined with slower growth
goals will add approximately 50 basis points to forecasted tangible
capital ratios over a 12 month period. The announced dividend will
be payable to shareholders of record on September 30, 2008.
Efficiency Gains Efforts to reduce operating expenses and gain
efficiencies continue and recently resulted in a reduction of
approximately 65 positions. This reduction was completed in full on
September 1, 2008 and is expected to produce annual savings of
approximately $2.6 million before tax. Speaking about the reduction
in force, Mr. Hortman commented, "These decisions to right-size our
staffing levels have been very difficult, but necessary and our
commitment to deliver exceptional customer service remains a top
priority." Strengthened Liquidity Additional liquidity sources have
been developed to provide for safety against various contingencies.
These sources include lines with the Federal Reserve Bank and the
Federal Home Loan Bank, as well as expanded lines of credit with
commercial banks. These lines of credit total approximately $520
million, or 60% of non-CD deposits. Today, approximately $400
million is available under these lines. Also, aggressive deposit
campaigns have been successful and continue to add liquidity to our
balance sheet while maintaining acceptable net interest margins.
Quality Investment Portfolio The Company's investment portfolio has
been managed to contain very little credit risk. As such, the
Company has no exposure to risks or devaluation associated with
either the common or preferred stock of Fannie Mae or Freddie Mac
or non-agency mortgage investments. Since the announcement of the
government takeover of the GSEs, the Company's investment portfolio
has increased in market value by approximately $5 million and
management does not anticipate any non-cash charges for permanent
impairment in the investment portfolio. Ameris Bancorp is
headquartered in Moultrie, Georgia, and at the end of the most
recent quarter, had 48 locations in Georgia, Alabama, northern
Florida and South Carolina. Ameris Bancorp Common Stock is quoted
on the NASDAQ Global Select 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.
http://www.newscom.com/cgi-bin/prnh/20051117/CLTH039LOGO
http://photoarchive.ap.org/ DATASOURCE: Ameris Bancorp CONTACT:
Dennis J. Zember Jr., Executive Vice President & CFO,
+1-229-890-1111 Web site: http://www.amerisbank.com/
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