Monday, July 21, 2008

Mohawk Industries, Inc. Announces Second Quarter Earnings

PRNewswire-FirstCall/ -- Mohawk Industries, Inc. (NYSE:MHK) today announced 2008 second quarter net earnings of $89 million and diluted earnings per share (EPS) of $1.29 (both 23% below last year). In the second quarter of 2007, net earnings and EPS were $115 million and $1.68 per share, respectively. Net sales for the quarter were $1,840 million, a decrease of 7% from 2007. The company generated cash flow from operations of $267 million. In addition, $183 million of debt was paid down improving the company's debt to capital ratio to 30%.

For the first six months of 2008, net earnings were $154 million and EPS was $2.25 (both 25% below last year). Net earnings and EPS were $206 million and $3.01 per share, respectively, in the first six months of 2007. Net sales for the first six months of 2008 were $3,578 million representing a 7% decrease from 2007. The sales decreases for both the quarter and the year to date are attributable to slowing U.S. residential housing and European demand.

In commenting on the second quarter results, Jeffery S. Lorberbaum, Chairman and CEO stated, "Our results for the second quarter were impacted by the slowing economies in the U.S. and Europe and rapidly increasing commodity costs. Declining new U.S. home construction and residential remodeling, slowing European demand and rising raw material and energy costs have contributed to the flooring industry cyclical decline. The rapidly increasing costs are impacting our margins even as we raise selling prices to offset these costs.

Our management team remains focused on improving our market position, increasing quality, introducing innovative products and providing excellent customer service. The team is relentlessly pursuing cost control, working capital management, and process improvement to manage the cycle. We believe these efforts will better position our company for growth when the market improves.

The Mohawk segment performance is under pressure with sales declining 13% below last year. The commercial and rug products are performing better while the hard surface and the cushion products are declining more than residential carpet. Higher energy, raw material and freight costs are causing dramatic cost inflation. We have announced three carpet price increases since December to offset rising costs. We are increasing our commercial carpet tile offering with new value, performance and stylized options in our brands. We have re- engineered processes and improved manufacturing productivity, quality and yields.

Dal-Tile sales are down 5% during the quarter and are doing well in a very difficult environment. Commercial and Mexican sales growth continue to buffer the impact of the declining U.S. residential industry. In July, we purchased a stone center in North Carolina to continue expanding our national presence. The major factors affecting margins are rapidly rising energy and freight costs along with customers trading down. In the second quarter we have increased product prices and energy surcharges to offset rising costs and more may be required in the future. Many cost initiatives are being executed to improve labor productivity, control expenses and reduce energy consumption. Freight costs are being reduced by utilizing lower cost transportation modes, increasing weight per load and making more direct shipments.

Unilin sales were up 13% over last year and down 7% on a constant exchange rate basis excluding the Columbia acquisition. Sales declines were experienced in the U.S. and much of Western Europe, with Russia and Eastern Europe growing. Sales in the U.K. and Spain were most impacted by the slowing European industry. Oil based material and energy inflation continues to increase the cost of most products. A 5% - 6% price increase has been announced for the U.S. laminate business during the third quarter. The new laminate production in the U.S. will be operating in the third quarter and will reduce our costs on higher end products presently imported from Europe. We have many cost initiatives to reduce energy consumption, modify processes and lower material cost.

The wood operations continue to operate at a loss. New products are being launched in the third quarter to reposition both the Columbia and Mohawk brands in the market. We have made significant improvements in manufacturing processes, reducing labor, improving quality and material yields, but negative overhead absorption is offsetting the progress. We expect our new product strategy will improve our wood sales and product mix."

The third quarter outlook is challenging given the environment. Slow demand with higher material and energy costs will continue to compress our margins. As a result, we are raising product prices and transportation fees on most products. We will adapt our strategy to the changing environment. Based on these factors our guidance for the third quarter of 2008 is $1.06 to $1.15. We have many focused initiatives under way to reduce cost, minimize working capital, improve service and bring new products to market. We remain convinced Mohawk will be a stronger company as we come out of this cycle.

Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words "could," "should," "believes," "anticipates," "expects," and "estimates," or similar expressions constitute "forward-looking statements." For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; raw material and energy costs; timing and level of capital expenditures; integration of acquisitions; rationalization of operations; litigation and other risks identified in Mohawk's SEC reports and public announcements.

Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of carpet, ceramic tile, laminate, wood, stone, vinyl, and rugs. These products are marketed under the premier brands in the industry, which include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American Olean, Unilin and Quick Step. Mohawk's unique merchandising and marketing assist our customers in creating the consumers' dream. Mohawk provides a premium level of service with its own trucking fleet and over 250 local distribution locations.

There will be a conference call Tuesday, July 22, 2008 at 11:00 AM Eastern Time.

The telephone number to call is 1-800-603-9255 for US/Canada and 1-706-634-2294 for International/Local. Conference ID # 54459485. A conference call replay will also be available until Monday, July 28, 2008 by dialing 1-800-642-1687 for US/local calls and 1-706-645-9291 for International/Local calls and entering Conference ID # 54459485.

  MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

Consolidated Statement of
Earnings Data Three Months Ended Six Months Ended
(Amounts in thousands, June 28, June 30, June 28, June 30,
except per share data) 2008 2007 2008 2007

Net sales $1,840,045 1,977,210 3,578,142 3,841,073
Cost of sales 1,357,153 1,420,512 2,635,411 2,760,935
Gross profit 482,892 556,698 942,731 1,080,138
Selling, general and
administrative expenses 336,829 358,450 672,350 711,313
Operating income 146,063 198,248 270,381 368,825
Interest expense 32,742 39,138 66,509 80,717
Other (income) expense, net 1,650 (2,783) 4,429 1,476
U.S. Customs refund - - - (9,154)
Earnings before income
taxes 111,671 161,893 199,443 295,786
Income taxes 22,893 46,625 45,275 90,140
Net earnings $88,778 115,268 154,168 205,646
Basic earnings per share $1.30 1.69 2.25 3.02
Weighted-average shares
outstanding 68,403 68,167 68,389 68,037
Diluted earnings per share $1.29 1.68 2.25 3.01
Weighted-average common and
dilutive potential common
shares outstanding 68,617 68,533 68,598 68,394

Other Financial Information
(Amounts in thousands)
Net cash provided by
operating activities $266,871 225,685 186,692 314,452
Depreciation & amortization $75,052 75,382 148,308 149,228
Capital expenditures $49,839 35,428 105,810 60,384

Consolidated Balance Sheet Data
(Amounts in thousands)
June 28, June 30,
2008 2007
ASSETS
Current assets:
Cash & cash equivalents $64,038 57,763
Receivables 982,378 998,023
Inventories 1,250,300 1,229,326
Prepaid expenses 131,218 121,625
Deferred income taxes 138,332 173,252
Total current assets 2,566,266 2,579,989
Property, plant and equipment, net 2,018,813 1,858,282
Goodwill 2,876,724 2,719,724
Intangible assets 1,190,157 1,153,761
Deferred income taxes and other assets 307,572 27,972
$8,959,532 8,339,728
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $290,392 364,114
Accounts payable and accrued expenses 965,743 1,061,157
Total current liabilities 1,256,135 1,425,271
Long-term debt, less current portion 1,896,642 2,137,349
Deferred income taxes and other long-term
liabilities 763,858 768,278
Total liabilities 3,916,635 4,330,898
Total stockholders' equity 5,042,897 4,008,830
$8,959,532 8,339,728

Segment Information As of or for the Three As of or for the Six
Months Ended Months Ended
(Amounts in thousands) June 28, June 30, June 28, June 30,
2008 2007 2008 2007

Net sales:
Mohawk $968,426 1,113,412 1,873,470 2,161,073
Dal-Tile 481,511 505,187 930,562 972,148
Unilin 411,525 363,531 815,280 715,627
Corporate and eliminations (21,417) (4,920) (41,170) (7,775)
Consolidated net
sales $1,840,045 1,977,210 3,578,142 3,841,073

Operating income:
Mohawk $34,593 59,730 56,834 108,175
Dal-Tile 58,169 69,353 115,110 133,748
Unilin 60,121 81,737 110,077 142,236
Corporate and eliminations (6,820) (12,572) (11,640) (15,334)
Consolidated
operating income $146,063 198,248 270,381 368,825

Assets:
Mohawk $2,400,869 2,474,276
Dal-Tile 2,259,255 2,297,745
Unilin 4,109,314 3,337,870
Corporate and eliminations 190,094 229,837
Consolidated assets $8,959,532 8,339,728



Reconciliation of Debt to Capital

As of
(Amounts in thousands) June 28, 2008
Outstanding Debt (a) $2,187,034
Total stockholders' equity 5,042,897
Total capital (b) $7,229,931

Debt to capital percentage (a)/(b) 30%


Reconciliation of
Operating Income to
EBITDA
Trailing Four
Three Months Ended Quarters Ended
(Amounts in September December March 29, June 28, June 28,
thousands) 29, 2007 31, 2007 2008 2008 2008

EBITDA reconciliation:
Operating income 200,814 180,467 124,318 146,063 651,662
Other (expense)/
income 799 3 (2,779) (1,650) (3,627)
Depreciation and
amortization 75,636 81,573 73,256 75,052 305,517
Reconciliation
of debt to
EBITDA 277,249 262,043 194,795 219,465 (c) 953,552


Reconciliation of Debt to EBITDA

Debt to EBITDA (a)/(c) 2.3


Reconciliation of Unilin Segment Net
Sales to Adjusted Unilin Segment
Net Sales

Three Months Ended
(Amounts in thousands) June 28, 2008
Unilin segment net sales $411,525
Less: Exchange rate gain 41,000
Adjusted Unilin segment net sales 370,525
Less: Wood acquisition net sales 33,863
Adjusted Unilin segment net sales $336,662


The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company's business for planning and forecasting in subsequent periods.

Southern Company Announces Quarterly Dividend

PRNewswire-FirstCall/ -- Southern Company today announced a regular quarterly dividend of 42 cents per share on the company's common stock, payable Sept. 6, 2008, to shareholders of record Aug. 4, 2008.

This marks the 243rd consecutive quarter -- dating back to 1948 -- that Southern Company will have paid a dividend to its shareholders.

With nearly 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE:SO) is the premier energy company serving the Southeast, one of America's fastest-growing regions. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are significantly below the national average. Southern Company has been listed the top ranking U.S. electric service provider in customer satisfaction for nine consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com .

Triple Crown Media, Inc. Announces Nasdaq Staff Determination Letter

PRNewswire-FirstCall/ -- On April 15, 2007, Triple Crown Media, Inc. (NASDAQ:TCMI) (the "Company") received an initial notification from The Nasdaq Stock Market that the Company had not maintained a minimum market value of its shares of common stock in accordance with Marketplace Rule 4450(e)(1) and would be required to regain compliance by July 14, 2008.

On July 16, 2008 the Company received a follow-up notification from The Nasdaq Stock Market that the Company has not regained compliance in accordance with Marketplace Rule 4450(e)(1). Accordingly, its securities will be delisted from The Nasdaq Global Market. Trading of the Company's common stock will be suspended at the opening of business on July 25, 2008, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's securities from listing and registration on The Nasdaq Stock Market. The Company's securities will continue to be quoted in the pink sheets under the symbol TCMI.

Thursday, July 17, 2008

Fidelity Southern Corporation Reports Modest Profit and Increased Reserves

PRNewswire-FirstCall/ -- Fidelity Southern Corporation ("Fidelity" or "the Company") (NASDAQ:LION) , holding Company for Fidelity Bank, reported net income of $5,000 for the second quarter of 2008 compared to $2,070,000 for the same quarter of 2007. Basic and diluted income per share for the second quarter of 2008 were less than $.01 compared to earnings of $.22 for the same period in 2007. Net income for the first six months of 2008 was $1,115,000 compared to $4,634,000 for the same period in 2007. Basic and diluted earnings per share for the first six months of 2008 were $.12 compared to $.50 for the same period in 2007.

Chairman James B. Miller, Jr. said, "We have the capacity to manage through the cycle. Though we continue to focus on core earnings and building the franchise, these are obviously uncertain and troubled times. Even with extraordinary effort, charge-offs and reserves will increase well into next year."

Significant developments in the quarter and the first half included:

-- Net interest income grew 3.02% over the first quarter of 2007 and 3.6%
over the first half of 2007.
-- Margin was up slightly in the second quarter to 2.95% from 2.94% in the
first quarter of 2008. Cost of funds was down as a result of
conservative deposit pricing as loan pricing firmed.
-- Personnel expenses were down 7% in the second quarter when compared to
the first quarter of 2008.
-- Total assets grew only 2.5% in the quarter to $1.779 billion.
-- Demand deposit accounts increased 14% this year through June.
-- An updated website was introduced during the second quarter to meet
growing demand.
-- Remote deposit volume grew to 33.2% of all deposits.
-- Brokerage activities were moved to Reliance Trust into a managed
account program which will provide both a fixed and variable revenue
stream.
-- Reserves substantially increased to 1.48% of loans from 1.05% at June
30, 2007, and 1.34% at March 31, 2008. The increase was $2.4 million
over the second quarter of 2008 and $7.2 million greater than reserves
at June 30, 2007. Provision for loan losses was $4.8 million and $9.4
million for the second quarter and first six months of 2008,
respectively, compared to $1.7 million and $2.2 million for the same
periods in 2007.
-- Net charge-offs increased to $2.4 million in the second quarter from
$2.1 million in the first quarter of 2008. Indirect automobile lending
accounted for 81.6% of net charge-offs during the second quarter
compared to 75.7% in the first quarter.
-- The ratio of net charge-offs to average loans outstanding was .63% for
the first six months of 2008 compared to .33% for the same period in
2007.
-- Nonperforming loans, repossessions and other real estate owned totaled
$57.7 million at the end of the second quarter, an increase of $20.7
million in the quarter.
-- During the quarter $2.5 million of OREO assets were sold but $5.6
million was added to OREO net of $501,000 in charge-downs. OREO
consists of 50 houses, representing 73.4% of total balances, and 79
lots and includes no commercial property.
-- New residential construction loan advances made during the quarter
totaled $15.0 million, while the payoffs of construction loans totaled
$29.6 million. There are 832 houses and 2,024 lots financed at June
30, 2008, compared to 1,172 houses and 2,372 lots at June 30, 2007.
-- Nonperforming residential construction loans at June 30, 2008, included
140 houses totaling $25.7 million and 166 lots totaling $13.8 million.
During the quarter $2.0 million of nonperforming loans were paid off by
our customers while $25.7 million of loans were moved to nonperforming.
-- Dividend was cut to $.01 for the third quarter from $.09 in the
previous quarter.

The decrease in net income for both the second quarter and six month periods compared to the prior year was primarily the result of a higher provision for loan losses due to higher charge-offs and adverse credit trends in the real estate construction and to some extent consumer loan portfolios requiring an increase in the allowance for loan losses.

Net interest income for the second quarter increased 3.0% over the first quarter of 2008 and increased $369,000 or 3.2% over the same period in 2007. Net interest income for the first six months of 2008 increased $825,000 or 3.6% when compared to the same period in 2007. The increases were primarily a result of higher average interest-earning assets. The net interest margin stabilized in the second quarter. It increased slightly to 2.95% in the second quarter compared to 2.94% in the first quarter of 2008. The net interest margin decreased 13 basis points in the second quarter of 2008 when compared to the same period in 2007. The net interest margin decreased 10 basis points to 2.95% for the fist half of 2008 compared to the same period in 2007. The decline in net interest margin in the second quarter and first six months of 2008 was due primarily to reductions in the prime rate and an increase in nonperforming loans.

Total interest income for the second quarter and first six months of 2008 decreased $2.2 million and $2.1 million, or 7.6% and 3.7%, respectively, compared to the same periods in 2007. The decreases in interest income for the second quarter and first six months of 2008 were the result of a decrease of 104 basis points and 74 basis points in the yield on average interest-earning assets, respectively, offset in part by the growth in average interest-earning assets, which increased $120.1 million and $104.3 or 7.8% and 6.8%, respectively.

Interest expense for the second quarter and first six months of 2008 decreased $2.5 million and $2.9 million, or 15.2% and 8.9%, respectively, compared to the same periods in 2007. The decreases in interest expense for the second quarter and first six months of 2008 were attributable to an increase in average interest-bearing liabilities of $124.1 million and $113.0 million, respectively, more than offset by a 106 basis point and 77 basis point decrease in the cost of interest-bearing liabilities.

The provision for loan losses for the second quarter and first six months of 2008 was $4.8 million and $9.4 million, respectively, compared to $1.7 million and $2.2 million for the same periods in 2007, due to increased charge-offs and adverse credit trends in the construction loan portfolio and to some extent in the consumer loan portfolio. Net charge-offs increased $1.1 million and $2.3 million to $2.4 million and $4.5 million for the second quarter and first six months of 2008 when compared to the same periods in 2007. The allowance for loan losses as a percentage of loans increased from 1.19% at December 31, 2007, to 1.48% at June 30, 2008, compared to 1.05% at June 30, 2007. Nonperforming assets increased to $57.7 million at the end of the second quarter of 2008 compared to $12.4 million at the end of the second quarter of 2007 and $24.2 million at the end of 2007. Management believes it has identified and placed on nonaccrual, charged down, and charged off these nonperforming assets timely and appropriately.

Noninterest income increased $19,000 and $1.2 million or .4% and 14.0% to $4.4 million and $10.0 million, respectively, in the second quarter and first six months of 2008, compared to the same periods in 2007. The increase in noninterest income for the second quarter of 2008 compared to 2007 was a result of higher indirect lending revenues which increased $204,000 or 15.6% to $1.5 million because of an increase in the gain on sales and increases in net servicing and ancillary fees generated by the serviced portfolio. The increase in noninterest income of $1.2 million for the first six months of 2008 was due to the $1.3 million securities gain in the first quarter of 2008 from the mandatory redemption of 29,267 shares of Visa, Inc. common stock as a result of its initial public offering in March 2008. Indirect lending revenues also increased $417,000, or 15.6%, to $3.1 million during the first six months of 2008 when compared to the same period last year due to an increase in the gain on sales of indirect loans and increases in net servicing and ancillary fees from indirect loans serviced.

Noninterest expense for the second quarter and first six months of 2008 increased $720,000 and $569,000, or 6.3% and 2.5%, to $12.1 million and $23.5 million, respectively compared to the same periods in 2007. The increases for the second quarter and first six months of 2008 are a result of higher salaries and benefits expense, which increased $96,000 and $533,000 or 1.5% and 4.2% to $6.4 million and $13.2 million, respectively, compared to the same periods in 2007, primarily due to the addition of seasoned loan production and branch operations staff, including SBA, indirect automobile, and commercial lenders, and staff for the three branches opened in 2007. In addition, OREO write-downs increased to $501,000 in the second quarter of 2008 compared to none for the same period in 2007. The increase in noninterest expense for the first six months of 2008 was partially offset by the reversal of the fourth quarter 2007 Visa litigation expense accrual of $567,000 as the result of the Visa funding of a litigation escrow account through its initial public offering in March 2008.

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and a credit related insurance product through 23 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA loans are provided through employees located throughout the Southeast. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com .

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" on page 3 of Fidelity Southern Corporation's 2007 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

2008 Housing Counseling Demand Soars 184 Percent at Consumer Credit Counseling Service of Greater Atlanta

PRNewswire/ -- More than 30,000 Americans turned to Consumer Credit Counseling Service (CCCS) of Greater Atlanta for housing counseling in the first half of 2008, nearly equaling the agency's total number of housing clients for all of 2007.

The increase in families seeking the nonprofit agency's help tracks the deepening of a national mortgage crisis that initially affected mostly low-income borrowers, but is now spreading to people with higher household incomes. For the first time in the 44-year history of CCCS of Greater Atlanta, the average household income of clients seeking housing counseling exceeded $40,000.

In addition to a 184 percent jump in new housing counseling sessions in the first six months of 2008 compared to last year, the agency helped many more people overall in each area of service:

-- Total counseling sessions conducted in person, by phone and over the Internet, increased from 120,000 in the first half of 2007 to 170,641 in the same period this year, an increase of more than 41 percent.

-- Bankruptcy counseling sessions increased from 79,417 in the first half of 2007 to 100,789 in the same period this year, an increase of 26.9 percent.

-- Budget and debt counseling sessions increased from 29,544 in the first half of 2007 to 38,837 in the same period this year, an increase of 31.5 percent.

"Demand for our counseling services is rising significantly as people try to avoid foreclosure and bankruptcy, as well as cope with rising gasoline and food costs," said Suzanne Boas, president of CCCS of Greater Atlanta. "Our agency will add at least 80 new housing counselors in the second half of this year to continue to help people avoid foreclosure and meet other financial needs."

The hiring of 80 new housing counselors and plans to open a new metro Atlanta counseling center are the result of a $2 million grant made in June by the Ford Foundation. The grant will support the agency's expansion of a pilot test of a new software platform that lets credit counselors eliminate lengthy delays faced by homeowners in urgent need of modified mortgages.

Approximately three-fourths of housing counseling sessions during the first half of 2008 involved individuals seeking help to avoid foreclosure of their home. The Atlanta-based agency is one of the nation's leading nonprofit counseling agencies helping people seek solutions to foreclosure. It provides counseling to homeowners in all 50 states 24 hours a day, seven days a week, through a 24-hour hotline, 1-888-995-HOPE.

The rise in people seeking CCCS of Greater Atlanta bankruptcy counseling follows an increase in the country's bankruptcy rate. Federal bankruptcy law requires individuals to complete credit counseling before they can file for bankruptcy. Approximately 20 percent of all of Americans who file for bankruptcy seek counseling help from CCCS of Greater Atlanta.

Budget and debt counseling primarily serves individuals struggling with credit card, medical and other unsecured debt. These people often seek help to pay their creditors. The agency tries to work out debt management plans for people who cannot make their minimum payments.

Wednesday, July 16, 2008

Omni Financial Services Elects to Delist Voluntarily from Nasdaq Stock Market

BUSINESS WIRE --Omni Financial Services, Inc. (NASDAQ: OFSI) (the “Company”), the bank holding company for Omni National Bank (the “Bank”), today announced that on July 13, 2008, the Company’s Board of Directors voted to delist the Company’s common stock from the Nasdaq Stock Market (“Nasdaq”) on a voluntary basis. The Board determined that costs of maintaining the listing outweighed the benefits, given the relatively low public float and level of trading activity for the common stock and the expenses associated with continued listing, including listing fees and compliance costs relating to the issues identified below. The Company anticipates that Nasdaq will suspend trading in the common stock within 10 days after the date of this press release. The delisting will become final and effective 10 days after the Company files a Form 25 with the Securities and Exchange Commission (“SEC”), which the Company anticipates filing on or about July 25, 2008. The Company has not yet determined whether the common stock will continue to trade via the “pink sheets” after the delisting.

The Company has previously reported its receipt of notices from Nasdaq indicating that the Company is not in compliance with the following Nasdaq Global Market listing requirements: (i) Marketplace Rule 4310(c)(14), which requires timely filing of periodic reports with the SEC; (ii) Marketplace Rule 4450(a)(2), which requires a minimum market value of publicly held shares (“MVPHS”) of $5,000,000; and (iii) Marketplace Rule 4450(a)(5), which requires a minimum closing bid price of $1.00 per share. The Company has been given until July 15, 2008 to file its Annual Report on Form 10-K for the year ended December 31, 2007 (the “10-K”) and until August 15, 2008 to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, but is continuing to address the previously announced valuation issues relating to these reports and will be unable to file the 10-K within the time frame stated above. The compliance deadlines for the MVPHS and bid price requirements were October 8, 2008 and December 29, 2008.

Ameris Bancorp Reports Net Income of $3.1 Million for Second Quarter of 2008

PRNewswire-FirstCall -- AMERIS BANCORP (NASDAQ:ABCB) , reported net income of $3.1 million, or $0.23 per share, for the quarter ended June 30, 2008, compared to net income for the same quarter in 2007 of $5.4 million, or $0.39 per share. Net income for the year-to-date period totaled $6.1 million, or $0.45 per share, compared to $10.4 million, or $0.76 per share for the same period in 2007. Continued weakness in general economic conditions in several of the Company's markets led to higher levels of loan provisions and negatively impacted the results for both the quarter and year-to-date period. Commenting on the quarter's results, Edwin W. Hortman, Jr. said, "Given the current operating environment, I am encouraged by our Company's performance. During the most recent quarter, we dealt quickly and aggressively with credit quality issues and recorded provisions at levels that should not persist. We continue to experience dilution from the investment in our De Novo strategy and expect profitability to improve significantly as we move forward. Lastly, despite four quarters in this difficult environment, Ameris Bank has protected its capital base and remains well capitalized with approximately $30 million of excess capital."

The Company's provision for loan losses during the second quarter amounted to $3.7 million, an increase of $2.8 million over the $936,000 recorded in the second quarter of 2007. Similarly, provision for loan losses for the year-to-date period increased $5.5 million to $6.9
million for the first six months of 2008 compared to 2007. The high levels of provision for loan losses reflect the Company's efforts to quickly address problem credits and are the result of very weak real estate conditions in a few of the Company's markets. As in previous quarters, the majority of the deterioration in credit quality is concentrated in a small number of larger credits. The Company continues to benefit from a loan portfolio that is well diversified over four states and various loan categories.

Non-performing assets increased slightly during the current quarter to 2.08% of total loans, compared to 2.00% for the first quarter of 2008, and 1.57% at December 31, 2007. Net charge-offs on loans during the second quarter of 2008 were similar to levels experienced during the first quarter of 2008 at 0.75% of total loans. The Company's reserve for loan losses at June 30, 2008 was flat compared to December 31, 2007, at 1.71% of total loans.

Trends in Net Interest Margin

In spite of drastically lower short-term rates and intense competition for core deposits, the Company's net interest margin declined only slightly during the second quarter of 2008 to 3.98%, compared to 4.03% in the same quarter in 2007. For the six-month period ending June 30, 2008, the Company's net interest margin was 3.95%, compared to 4.08% in the same period in 2007.

Loan yields during the quarter decreased to 6.97%, compared to 8.46% in the same quarter in 2007. In the most recent quarter, loan yields decreased from the 7.56% reported in the first quarter of 2008. This decline in the most recent quarter was partially attributed to accelerated renegotiation of interest rates in the Company's fixed rate loan portfolio as customers have opportunities to significantly reduce expenses or accelerate repayment of principal.

The Company's cost of funds during the current quarter was 2.72%, compared to 3.84% in the same quarter in 2007, and 3.30% in the first quarter of 2008. During the quarter, deposit costs declined to 2.78% from 3.68% in the same quarter in 2007 and from 3.25% in the first quarter of 2008. The decline against the linked quarter resulted from continued repricing of all deposit accounts but the majority of the savings resulted from material savings on time deposit maturities. Non-deposit borrowing costs also declined in the second quarter of 2008 to 2.10% from 5.81% in the second quarter of 2007 due to the Company's restructure of these borrowings and the use of interest rate floors on several of the advances. Efforts continue to reduce interest expense and are focused primarily on time deposit maturities and improving the Company's overall funding mix.

Operating Income and Operating Expense Trends

For the year-to-date period ending June 30, 2008, net interest income increased 1.6% to $37.5 million, when compared to net interest income for the year-to-date period ending June 30, 2007. Non-interest income increased 17.4% to $5.3 million during the second quarter of 2008, when compared to the same quarter in 2007. Continued growth in service charges and mortgage fees led to the increase in non-interest income. Service charges on deposit accounts increased 19.3% to $3.7 million in the current quarter, when compared to the second quarter of 2007. Income from mortgage loan activities also increased primarily as a result of hiring and training efforts during the last half of 2007. Mortgage income rose to $855,000, an increase of 6.9% over the second quarter of 2007. The Company's mortgage lending activities do not subject the Company to appreciably higher levels of risk, as all loans are closed with guaranteed takeouts and are underwritten by the purchaser.

Operating expense increased during the quarter by 16.6% to $16.0 million, when compared to the same quarter in 2007. Year to date, operating expenses increased to $31.6 million, an increase of 11.9% when compared to the same period in 2007. As stated in past quarters, increases in salaries and benefits as well as in occupancy and equipment are largely the result of the Company's expansion efforts. While meaningful accretion to profitability levels and earnings per share are not expected for the next several quarters, the Company does not foresee additional dilution to current profitability and earnings levels.

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.