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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Executive
Palmer Proctor

this quarter over the third quarter of last year. Yields of course, were down on the new production as we would all expect with the recent Fed cuts but the pipelines are encouraging, they are strong as we look into the fourth quarter. So we feel very encouraged about that.

As expected, we did see some dilution in tangible book value this quarter compared to last quarter and that's really due to the Fidelity acquisition, but we anticipate that consistent growth in tangible book that you will see going forward, as we're still haven't paused on the M&A activity, but even with the dilution from the acquisition, we have tangible book growth of over 14% growth since September of last year, which is certainly noteworthy.

Nicole is going to get into the financial details in a few minutes, but I did want to hit on a few things first. And looking back at and we like to do look backs, what do we say versus what we did. And looking back at what we said, we were going to do last December, when the Ameris Fidelity merger was announced, and where we are today. I'm really proud of our team's accomplishments.

We announced the deal, we had pro forma branches at about 199 branches combined. By the end of the third quarter, we're down to 172 branches, which is a net reduction of 27 branches, since the announcement of the merger and we've done this very strategically and with very little attrition in terms of our core funding.

And then also at announcement of the deal, we said there'd be $0.18 dilution on the EPS during 2019 that would then bring single digit accretion in 2020 with the built-in cost saves and we've actually had better than expected results so far, based on our execution and accelerated execution of some of the cost saves strategies earlier than we had initially expected.

We projected our pro forma TCE to tangible asset ratio to be at 8.37% post-acquisition and we're reporting 8.43% TCE ratio today, which is slightly above our projections. And I mentioned, all these things really to reinforce how serious we are about executing the strategy and ensuring that we're on track with the plans that we had outlined.

So far, we've hit all the targets we're looking for and we've delivered on the goals we've established and we're confident that hitting our targets is what's going to continue to create franchise value for our Company and our investors and it's going to position us exceptionally well for any economic environment that we operate in. One other noteworthy milestone that I'll mention in our Company's history, is that we, we have officially moved the bank charter and the holding company offices to Atlanta and we will become the largest bank holding company headquartered in Atlanta, Georgia, after the truest [Phonetic] deal closes.

We initiated the formal launch of our rebranding, hopefully some of you have seen that in terms of