Ameris Bancorp (NASDAQ:ABCB) Q3 2019 Earnings Conference Call - Final Transcript

Oct 18, 2019 • 09:00 am ET

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Ameris Bancorp (NASDAQ:ABCB) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Nicole S. Stokes

coming out of the third quarter, I should say. And then about 30% coming out in the -- another 30% coming out in the fourth quarter and then the rest of it coming out in 2020.

So we have our data conversion set for the first weekend of November and so we still have what I call kind of some of that that overhang of expenses from running two systems and so that's really the pick up in the fourth quarter over the third quarter is that we will have lot of those administrative costs gone and the duplicate of systems by the end of November.

So we were a little bit ahead of our cost saves. We had projected 20%, we're closer to 25% to 30%. And then we anticipate another 20% to 25% in the third quarter which is or sorry in the fourth quarter, which is similar to what we had said before, it's just, we picked up 5% more in the third quarter and then the rest will be coming out in the first quarter.

Analyst
Casey Whitman

Very helpful. Thank you guys for the questions. Go ahead, Nicole.

Executive
Nicole S. Stokes

Thank you, Casey.

Analyst
Casey Whitman

Okay.

Operator
Operator

Our next question comes from Jennifer Demba with SunTrust.

Analyst
Jennifer Demba

Thank you. Good morning.

Executive
Palmer Proctor

Good morning.

Analyst
Jennifer Demba

Question, will any of this mortgage production activity bleed into fourth quarter?

Executive
Nicole S. Stokes

Jennifer, the piece that might bleed. So we have -- it's the bundling and the selling of that, but we have those market fair value. So we don't anticipate -- now there could still be, I mean, I don't think, all of the volume just shut off September 30. So there will be some overhang some -- like a little bit. But we really think the fourth quarter is going to come back to more normal volumes.

The biggest impact in the fourth quarter is going to be bundling and selling of those loans. But there shouldn't be an income statement impact for that.

Executive
Palmer Proctor

As Nicole said to Jennifer. The momentum is certainly there. And so that will carry us into the fourth quarter, but it will be at a much more normalized rate than what we've experienced this quarter.

Analyst
Jennifer Demba

Okay. Nicole, do you guys have a preliminary estimate for your loan loss reserve adjustment for CECL?

Executive
Nicole S. Stokes

That's a great question -- and Jennifer. And what we have not given out guidance in the past with a specific number with the Fidelity acquisition coming on. We have run that that third quarter run, and we're still analyzing that. I think there will be some additional guidance in the 10-Q about that. What we have said and we'll continue to say, even with this knowing that it's only October 18 and to get all of the Fidelity data from two systems into the CECL model is that we still are not surprised and that what the model is showing is still in line with our projection, so we are certainly not surprised with the results and I think there will