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Ameris Bancorp.

Introduction:

Ameris Bancorp (NASDAQ:ABCB) is a multi-bank holding company. The Banks provide a broad range of retail and commercial banking services to its customers, including checking and savings deposits, commercial and consumer loans, trust services, discount brokerage services, and electronic funds transfer services. Ameris Bancorp operates in Georgia, Florida and Alabama. The company was founded in 1971 and is headquartered in Moultrie, Georgia.

Stock Snapshot:

As of Nov 30’ 2012, the stock for Ameris Bancorp (NASDAQ:ABCB) stood at USD 11.39 representing a total market capitalization of USD 271.30 million. The stock has traded between a range of USD 9.62 and USD 13.49 over the last 52 weeks. The stock has witnessed an average volume of 42,572 shares over the last 3 months.

Major Competitors:

BankUnited (NYSE:BKU), a bank holding company, provides a range of banking products and financial services to commercial and middle-market businesses, as well as individual customers primarily in Florida, the United States.  The stock for BankUnited (NYSE:BKU) stood at USD 23.50  as at 30th Nov’ 2012; representing total market capitalization of USD 2.22 billion. The stock has traded between a range of USD 21.29 and USD 26.33 over the last 52 weeks. The stock has witnessed an average volume of 192,602 shares over the last 3 months.

First Citizens BancShares Inc. (NASDAQ:FCNCA) operates as the holding company for First-Citizens Bank & Trust Company that provides various banking products and services to retail and commercial customers in the United States. The stock for First Citizens BancShares Inc. (NASDAQ:FCNCA) stood at USD 165 as at 30th Nov’ 2012; representing total market capitalization of USD 1.69 billion. The stock has traded between a range of USD 160.12 and USD 187. 72 over the last 52 weeks. The stock has witnessed an average volume of 10,154 shares over the last 3 months.

Multiple Analysis:

The stock for Ameris Bancorp (NASDAQ:ABCB) has been trading at a price to earnings ratio of 35.4, a price to sales ratio of 2.36 and a price to book ratio of 1.09. In comparison, the stock for BankUnited (NYSE:BKU) has been trading at a price to earnings ratio of 12.67, a price to sales ratio of 3.48 and a price to book ratio of 1.26 whereas the stock for First Citizens BancShares Inc. (NASDAQ:FCNCA) has been trading at a price to earnings ratio of 11.84, a price to sales ratio of 1.73 and a price to book ratio of 0.86.

Financial Highlights:

  • For 9M FY20112 , interest income was recorded at USD 85.1 million on a tax equivalent basis, as compared to USD 81.4 million for the corresponding period last year; representing a YoY absolute increase of USD 3.7 million.
  • For 9MFY12, average earning assets were recorded at USD 2.5 billion as compared to average assets of USD 2.47 billion for the corresponding period last year. The yield on average assets was recorded at 5.20% as compared to 5.59% for the corresponding period last year.
  • For 9MFY12, total interest expense amounted to USD 12.1 million as compared to USD 22.1 million for the corresponding period last year. During 9MFY12, the Company’s funding costs declined to 0.60% from 1.10% reported in the corresponding period last year.
  • The provision for loan losses was recorded at USD 26.6 million for 9MFY12 as compared to USD 23.7 million in the corresponding period last year due to charges related to the bulk sale of certain non-performing assets in 1QFY12.
  • At 30th  September ‘ 2012, gross loans outstanding stood at USD1.99 billion as compared to USD1.90 billion reported on 31st December’ 2012.

Factors to Watch Out For:

  • Lower relative valuation!
  • Strong financial condition!