OK, a preliminary look as these are pretty much the immediate disqualifiers for me, if there are issues with Tier 1 capital ratios then I just move on. The FDIC has some basic guidelines that can help along the way and they can differ a little bit depending on the bank's size. In the case of ABCB, here are the three pertinent ratios and their respective guidelines to meet the standard of "well capitalized" in parentheses:
This is Tier 1 capital to average assets - 12.01% (>=5%)
This is Tier 1 capital to risk weighted assets - 17.75% (>=6%)
Total Capital Ratio:
This is total capital to risk weighted assets - 19.01% (>=10%)
So these numbers are as of the end of 3Q2010 per the company's 10Q. If you look back to the same period a year ago, their ratios were, in the same order 8.69%; 11.28%; and 12.51%. So even then they were "well capitalized" and things seem to have gotten better.
I think it is also worth noting that Ameris has been picking up a number of failed institutions recently:
Of course these are FDIC-assisted deals, which ultimately I think is a good thing in a number of ways.
So the funny part of this story is that my parents actually live down in Moultrie, GA where Ameris is based. I never really had thought of it before as it is just a small Georgia bank. I mean I had driven by branches, but so what, right? So I was looking through the company's management on its website and saw what appeared to be a familiar face. It turns out my suspicion was correct. I played golf with the executive VP & Director of Credit Admin, Jon Edwards down in Moultrie about a year and a half ago. I never put two-and-two together as I was working at Travelers Insurance at the time in Atlanta and would not have really been focusing on Ameris as a possible investment. But there you go...small world huh? Maybe I could get an interview with him sometime. Maybe him and the CEO Edwin Hortman. That would be pretty sweet.
I will say in regard to our round of golf together that I thought he was an enjoyable fellow to play golf with. Not that it means anything one way or another, but seeing as I have played golf for 34 years, it is a gauge of sorts for me.
My interest is growing...
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