Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Ameris Bancorp (ABCB) , which belongs to the Zacks Banks - Southeast industry, could be a great candidate to consider.This bank has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 12.26%.For the last reported quarter, Ameris Ban ...

Loan Portfolio - As of December 31, 2024, the company's loan portfolio totaled approximately $21.27 billion, representing about 81.0% of total assets[29] - The commercial real estate loans segment has significantly grown and is the largest part of the loan portfolio, including loans for various commercial properties[29] - Residential real estate mortgage loans are primarily owner-occupied, amortized over 20 to 30 years, with a majority sold in the secondary market[30] - The Bank's construction and development (C&D) concentration as a percentage of capital totaled 63.3%, while the commercial real estate (CRE) concentration, net of owner-occupied loans, was 267.9%[100] Employee and Leadership Development - The company employed 2,691 full-time-equivalent employees as of December 31, 2024, primarily in core markets[53] - The company offers a comprehensive benefits package, including a 401(k) plan that matches 50% of employee contributions up to 8%[56] - The company has a formal mentorship program, "Mentor Ameris," with 26 mentees selected for 2024[59] - The Leadership Development Program had 481 teammates enrolled or completed by the end of 2024, focusing on various leadership skills[60] Regulatory Compliance and Capital Requirements - The Company is subject to extensive regulation, which significantly impacts its earnings, results of operations, financial condition, and competitive position[63] - As of December 31, 2024, the Company exceeded its minimum capital requirements with common equity Tier 1 capital, Tier 1 capital, and total capital equal to 12.65%, 12.65%, and 15.37% of its total risk-weighted assets, respectively[83] - The Bank's capital ratios as of December 31, 2024, were common equity Tier 1 capital, Tier 1 capital, and total capital equal to 13.15%, 13.15%, and 14.75% of its total risk-weighted assets, respectively, indicating it was "well-capitalized" for prompt corrective action purposes[83] - The Company has approximately $196.0 million of retained earnings available for payment of cash dividends under applicable regulations without obtaining regulatory approval as of December 31, 2024[76] - The Federal Reserve and the FDIC require the Company to maintain a common equity Tier 1 capital to total risk-weighted assets ratio of at least 4.5%[80] - The Company must maintain a capital conservation buffer of common equity Tier 1 capital of at least 2.5% of risk-weighted assets to avoid restrictions on capital distributions[80] - The ability of the Bank to pay dividends is restricted if it fails to satisfy regulatory capital conservation buffer requirements[77] - The Company is subject to federal law limitations on dividends paid to shareholders, requiring sufficient net income to cover cash dividends[78] Financial Performance and Risk Management - The Bank recognized an expense of $11.6 million in Q4 2023 related to a special assessment by the FDIC, which is based on an annual rate of 13.4 basis points applied to uninsured deposits exceeding $5 billion[94] - The Bank is mildly asset sensitive, with projected net interest income increasing by 0.7% over the next 12 months if interest rates rise by 100 basis points[336] - The earnings simulation model indicates that a 400 basis point increase in interest rates could lead to an 11.0% increase in projected baseline net interest income over 24 months[338] - The Bank's interest rate risk management involves monitoring changes in net interest income through simulation analysis, with quarterly assessments[336] Consumer Protection and Compliance - The Bank is required to maintain an effective anti-money laundering program and comply with OFAC sanctions, with significant penalties for violations[108][109] - The Bank is subject to various consumer protection laws, including the Equal Credit Opportunity Act and the Fair Credit Reporting Act, which impose significant compliance obligations and costs[111] - The CFPB's final rule on overdraft fees limits such fees to $5 or less, with compliance required by October 1, 2025, pending ongoing litigation[112] - The Bank must comply with the CFPB's final rule on data access by April 1, 2027, which mandates the provision of consumer financial data to authorized third parties without charging fees[120] Cybersecurity and Reporting Obligations - The Bank is required to report certain cybersecurity incidents within 36 hours, reflecting the importance of cybersecurity practices[117] - The SEC's new rule requires public issuers to enhance climate-related disclosures, impacting the Bank's reporting obligations[121] - The Bank is actively monitoring state-level privacy and cybersecurity regulations, which are increasingly being implemented across various states[119] Competitive Landscape - The competitive landscape includes various financial institutions, with the company facing strong competition for both deposits and loans[50]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $94.4 million or $1.37 per diluted share, with adjusted net income at $95.1 million or $1.38 per diluted share [14] - Full-year 2024 net income was $358.7 million or $5.19 per diluted share, representing a 26% increase in year-over-year adjusted EPS [15] - Adjusted ROA for the full year was 1.33% and adjusted ROTCE was 13.93%, both improved from 2023 levels [15] - The tangible common equity ratio increased to 10.59% at the end of Q4, up from 10.24% last quarter and 9.64% at the end of the previous year [16] Business Line Data and Key Metrics Changes - Adjusted non-interest income increased by $4 million in Q4, primarily from gains on the sale of SBA loans [20] - Total loan production in Q4 was $1.8 billion, the highest in the past two years [23] - The average balance of total loans during the quarter was stable, with higher loans held for sale offsetting slight declines in portfolio loans [22] Market Data and Key Metrics Changes - Deposits increased by approximately $1 billion or almost 5% for the year, while broker deposits were reduced by $340 million [24] - Non-interest-bearing deposits represented 30% of total deposits, with brokered CDs making up less than 5% [24] - The company anticipates mid-single-digit loan and deposit growth for 2025, with deposit growth expected to govern loan growth [25] Company Strategy and Development Direction - The strategic focus remains on maintaining top-tier profitability, enhancing revenue generation, and leveraging growth opportunities within the Southeastern footprint [12] - The company aims to control expenses while maximizing earnings per share through effective balance sheet management [10] - Organic growth is prioritized over buybacks, with selective M&A opportunities considered if they align strategically [78] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer sentiment and commercial customer confidence, which is reflected in increased production [55] - The company is positioned to accelerate growth or maintain current levels, focusing on controlled growth rather than aggressive expansion [59] - The outlook for 2025 is positive, with expectations for continued revenue growth and stable asset quality [120] Other Important Information - The company redeemed $105.8 million of subordinated debt, which is expected to save about 1 to 2 basis points of margin in 2025 [19] - The adjusted efficiency ratio improved to 51.82% for Q4, with a full-year adjusted efficiency ratio of 53.88% [21] Q&A Session Summary Question: Margin outlook for 2025 - Management indicated that while Q4 margin expansion was notable, some of it may revert due to seasonal factors and repricing lags, guiding for a margin around 3.50% to 3.55% [36] Question: SBA fee income run rate - The company expects fee income growth in the range of 5% to 7%, excluding mortgage-related fees [42] Question: Production increase drivers - Management attributed the increase in production to improved consumer sentiment and successful hiring, with optimism reflected in commercial customer activity [55] Question: Expense growth outlook - Consensus estimates for expense growth are around 4.5% to 5%, with some cyclical payroll expected in Q1 [64] Question: Mortgage banking gain on sale outlook - The company is guiding for a gain on sale margin in the range of 2.25% to 2.40% for the first half of 2025 [75] Question: Capital deployment strategy - Organic growth is prioritized, with buybacks taking a back seat, and M&A opportunities considered selectively [78] Question: Reserve build rationale - The reserve build is primarily driven by the CECL model and is reflective of expected loan growth rather than immediate concerns about credit quality [85]

4th Quarter 2024 Results Investor Presentation Cautionary Statements This presentation contains forward-looking statements, as defined by federal securities laws, including, among other forward- looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identif ...

Group 1 - Ameris Bancorp reported quarterly earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and up from $1.07 per share a year ago, representing a 15% earnings surprise [1] - The company achieved revenues of $290.78 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.10%, and an increase from $262.35 million year-over-year [2] - Ameris Bancorp has outperformed the S&P 500, with shares increasing about 4.2% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $280.45 million, and for the current fiscal year, it is $5.02 on revenues of $1.19 billion [7] - The Zacks Industry Rank indicates that the Banks - Southeast industry is in the top 10% of over 250 Zacks industries, suggesting strong performance potential [8]

Financial Performance - Net income for Q4 2024 was $94.4 million, or $1.37 per diluted share, up from $65.9 million, or $0.96 per diluted share in Q4 2023[3]. - Adjusted net income for the full year 2024 was $346.6 million, or $5.02 per diluted share, compared to $269.1 million, or $3.89 per diluted share in 2023[5]. - Net income for the three months ended December 2024 was $94,376 thousand, compared to $74,312 thousand for the same period in 2023, representing a year-over-year increase of 27%[25]. - Adjusted net income for the twelve months ended December 2024 was $346,640 thousand, up from $276,253 thousand in 2023, reflecting a growth of 25%[25]. - Earnings per share (EPS) for the three months ended December 2024 was $1.37, compared to $1.08 for the same period in 2023, indicating an increase of 27%[25]. - Net income for Q4 2024 was $94,376,000, compared to $65,934,000 in Q4 2023, indicating a significant increase of 43.1% year-over-year[27]. - Net income available to common shareholders for Q4 2024 was $94,376,000, compared to $65,934,000 in Q4 2023, representing a year-over-year increase of 43%[42]. Revenue and Income Growth - Total revenue growth for Q4 2024 was 9.8% annualized, with net interest income increasing by $7.7 million to $222.8 million[5]. - Noninterest income for the full year 2024 rose by $50.4 million, or 20.8%, to $293.3 million compared to 2023[12]. - Total revenue for the three months ended December 2024 was $290,780 thousand, an increase from $262,349 thousand in December 2023, representing a year-over-year growth of 10.9%[44]. - Noninterest income for the three months ended December 2024 was $68,959 thousand, compared to $56,248 thousand in December 2023, indicating a year-over-year increase of 22.7%[44]. - Total interest income for Q4 2024 was $346,363,000, an increase from $332,214,000 in Q4 2023, representing a growth of 4.4% year-over-year[27]. - Net interest income for the twelve months ended December 2024 was $849,190 thousand, compared to $835,044 thousand for the same period in 2023, reflecting a growth of 1.4%[44]. Asset and Equity Growth - Tangible book value per share grew by $4.95, or 14.7%, to $38.59 at December 31, 2024[5]. - Shareholders' equity increased by $324.8 million, or 9.5%, to $3.75 billion at December 31, 2024[17]. - The average common equity for Q4 2024 was $3,719,888,000, an increase from $3,383,554,000 in Q4 2023, reflecting a growth in equity base[42]. - Total tangible shareholders' equity as of December 2024 was $2,665,115 thousand, compared to $2,323,152 thousand in December 2023, showing a significant increase of 14.7%[45]. - Tangible common equity to tangible assets ratio improved to 10.59% at the end of December 2024, up from 9.64% at the end of December 2023[25]. Credit and Loan Performance - The Company recorded a provision for credit losses of $12.8 million in Q4 2024, raising the allowance for credit losses to 1.63% of loans[18]. - The allowance for credit losses was $338,084,000 as of December 2024, compared to $307,100,000 in December 2023, representing an increase of 10.1%[29]. - The provision for loan losses for the three months ended December 2024 was $12,657 thousand, compared to $30,401 thousand for the same period in 2023, a decrease of 58.3%[31]. - Non-performing assets totaled $122,393 thousand in December 2024, compared to $174,321 thousand in December 2023, showing a significant decrease of 29.8%[31]. - The net charge-offs for the twelve months ended December 2024 were $38,857 thousand, down from $50,381 thousand in the previous year, representing a reduction of 22.9%[31]. - Total loans increased to $20,739,906 thousand in December 2024, compared to $20,269,303 thousand in December 2023, reflecting a growth of approximately 2.3% year-over-year[33]. Efficiency and Cost Management - The efficiency ratio improved to 52.26% for the three months ended December 2024, compared to 55.64% for the same period in 2023[25]. - Total noninterest expense for the twelve months ended December 2024 was $607,794,000, compared to $578,281,000 in 2023, showing an increase of 5.1%[27]. - Adjusted noninterest expense for the three months ended December 2024 was $150,905 thousand, up from $139,348 thousand in December 2023, indicating an increase of 8.4%[44]. - The adjusted efficiency ratio (TE) for the three months ended December 2024 was 51.82%, an improvement from 52.58% in December 2023, suggesting better cost management[44]. Funding and Deposits - Total deposits increased by $1.01 billion, or 4.9%, to $21.72 billion at December 31, 2024[5]. - Total deposits reached $21,732,112 in December 2024, an increase from $21,623,386 in September 2024, marking a growth of 0.5%[35]. - Noninterest-bearing deposits rose to $6,684,851 in December 2024, compared to $6,622,952 in September 2024, a growth of 0.9%[35]. - The total cost of funds decreased to 2.22% for the three months ended December 2024, down from 2.41% in the previous quarter[25]. - Interest expense on total interest-bearing deposits was $124,542 for the three months ended December 2024, down from $141,086 in September 2024, a decrease of 11.7%[37]. Divisional Performance - The Banking Division's income before income tax expense was $87,305 in Q4 2024, up from $83,604 in Q3 2024, indicating a growth of 2.0%[51]. - The Warehouse Lending Division reported a net income of $5,149 in Q4 2024, down from $7,008 in Q3 2024, a decline of 26.5%[49]. - Noninterest expense in the Retail Mortgage Division totaled $37,167 in Q4 2024, compared to $31,158 in Q4 2023, an increase of 19.3%[49]. - Total noninterest income for the Banking Division increased to $31,647 in Q4 2024, up from $24,722 in Q4 2023, representing a growth of 27.9%[51].

Financial Performance - For the third quarter of 2024, the company reported net income of $99.2 million, or $1.44 per diluted share, compared to $80.1 million, or $1.16 per diluted share, in the same period of 2023, representing a 23.5% increase in net income [156]. - Adjusted net income for Q3 2024 was $95.2 million, or $1.38 per diluted share, up from $80.1 million, or $1.16 per diluted share, in Q3 2023, indicating a 19% increase [156]. - Ameris reported net income available to common shareholders of $264.3 million, or $3.83 per diluted share, for the nine months ended September 30, 2024, representing an increase from $203.2 million, or $2.94 per diluted share, in the same period in 2023 [174]. - Adjusted net income for the nine months ended September 30, 2024, was $251.6 million, or $3.64 per diluted share, compared to $202.7 million, or $2.93 per diluted share, for the same period in 2023 [175]. Income and Expenses - Total interest income for the banking division was $255.2 million in Q3 2024, compared to $233.2 million in Q3 2023, reflecting an increase of 9.4% [159]. - Noninterest income for the company was $69.7 million in Q3 2024, compared to $63.2 million in Q3 2023, representing a 10.3% increase [159]. - Total noninterest expense increased to $151.8 million in Q3 2024 from $141.4 million in Q3 2023, reflecting a rise of 7.3% [159]. - Noninterest income increased to $224.3 million for the nine months ended September 30, 2024, compared to $186.6 million in the same period in 2023 [177]. - Total noninterest expense for the nine months ended September 30, 2024, was $455.8 million, up from $429.3 million in the same period in 2023 [178]. Interest Income and Loans - Net interest income for the banking division was $176.8 million in Q3 2024, up from $169.6 million in Q3 2023, marking a 4.1% increase [159]. - Total interest income increased to $356.1 million in Q3 2024, compared to $331.5 million in Q3 2023, with yields on earning assets rising to 5.81% from 5.62% [164]. - Loan production in Q3 2024 amounted to $5.1 billion with a weighted average yield of 7.52%, compared to $4.8 billion and 7.56% in Q3 2023 [163]. - Total interest income for the nine months ended September 30, 2024, was $1,031.9 million, up from $948.2 million in the same period in 2023 [177]. Credit Losses and Provisions - The provision for credit losses was $6.1 million in Q3 2024, compared to $24.5 million in Q3 2023, indicating a significant decrease of 75% [159]. - Provision for loan losses decreased to $45.6 million for the nine months ended September 30, 2024, from $119.7 million in the same period in 2023 [177]. - The total provision for credit losses for the first nine months of 2024 was $46.0 million, down from $119.7 million for the same period in 2023 [206]. Asset Quality - Non-performing assets as a percentage of total assets decreased to 0.44% at September 30, 2024, from 0.69% at December 31, 2023 [167]. - Nonaccrual loans decreased from $151.1 million at December 31, 2023 to $95.5 million at September 30, 2024 [206]. - The ratio of total nonperforming assets to total assets decreased by 25 basis points from 0.69% at December 31, 2023 to 0.44% at September 30, 2024 [206]. Capital and Deposits - Total deposits increased by $1.17 billion, or 5.7%, to $21.88 billion as of September 30, 2024, compared to $20.71 billion at December 31, 2023 [225]. - The common equity Tier 1 capital ratio was 12.16% as of September 30, 2024, compared to 11.23% at December 31, 2023 [231]. - The total capital ratio was 15.35% as of September 30, 2024, up from 14.45% at December 31, 2023 [231]. Shareholder Actions - The Company repurchased $8.3 million worth of its common stock, totaling 194,274 shares, under the share repurchase program as of September 30, 2024 [226].

Financial Data and Key Metrics Changes - The company reported net income of $99.2 million or $1.44 per diluted share for Q3 2024, with adjusted net income of $95.2 million or $1.38 per diluted share after accounting for a $5.2 million gain on the sale of MSR portfolio and $150,000 in hurricane-related expenses [8][9] - The adjusted return on assets improved to 1.43% and the adjusted return on tangible common equity improved to 15% [9][12] - The tangible book value per share increased by $1.72, resulting in an annualized growth rate of approximately 19.1%, ending the quarter at $37.51 per share [9][10] - The total assets increased to $26.4 billion from $25.2 billion at the end of the previous year [13] Business Line Data and Key Metrics Changes - Adjusted non-interest income decreased by $6.7 million, primarily in the mortgage division due to decreased production and a reduced gain on sale margin [12] - Total loan production for the quarter was $509 million, the highest in the past four quarters, with a blended rate of just over 9% [13] - The average earning assets grew by 7.6% annualized in Q3 [7][13] Market Data and Key Metrics Changes - The company maintained a strong net interest margin of 3.51%, which is above peer levels, despite a slight margin compression of 3 basis points [6][11] - The loan-to-deposit ratio improved, with deposits increasing by $1.17 billion or 7.6% annualized year-to-date [14] Company Strategy and Development Direction - The company remains focused on growing tangible book value per share and exploring additional growth opportunities within its Southeastern footprint [5][6] - The management emphasized a disciplined approach to capital preservation while remaining open to future growth opportunities [20][54] - The company is committed to organic growth but is also open to M&A opportunities if they align with strategic goals [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth, citing strong fundamentals and a proven culture of expense control [4][7] - The impact of recent storms on operations was noted, but most locations did not experience significant damage, allowing for a quick recovery [7] - The company anticipates mid-single-digit loan and deposit growth for 2024, with deposit growth expected to govern loan growth [14] Other Important Information - The company executed its second MSR sale of the year, resulting in a pre-tax gain of over $5 million [6] - The allowance for credit losses remained stable, with a coverage ratio of 1.60% of loans and an improvement in non-performing assets [12] Q&A Session Summary Question: Margin outlook and NII growth - Management indicated that the guidance for margin remains around 3.50%, with a focus on growing net interest income despite slight margin compression [15][16][28] Question: Capital deployment strategy - Management confirmed a prudent approach to capital deployment, with a focus on organic growth while remaining open to M&A opportunities if they arise [19][54] Question: Trends in reserves and C&I losses - The reserve will be model-driven, and the C&I portfolio is diversified with minimal stress expected [23][24] Question: Mortgage segment capacity and outlook - Management expressed confidence in the mortgage segment's capacity to handle increased activity, supported by existing infrastructure and technology [34] Question: Deposit growth drivers - The company highlighted its relationship banking strategy as a key driver of organic deposit growth, with significant contributions from both commercial and retail sectors [39][41]

Core Insights - Ameris Bancorp reported revenue of $284.74 million for the quarter ended September 2024, reflecting a year-over-year increase of 5.1% [1] - Earnings per share (EPS) for the quarter was $1.38, up from $1.16 in the same quarter last year, resulting in an EPS surprise of +9.52% against the consensus estimate of $1.26 [1] - The reported revenue was below the Zacks Consensus Estimate of $290.6 million, showing a surprise of -2.02% [1] Financial Metrics - Net interest margin (TE) was reported at 3.5%, slightly below the estimated 3.6% [1] - Efficiency ratio stood at 53.5%, higher than the average estimate of 52.2% [1] - Book value per share at period end was $53.30, exceeding the estimated $52.76 [1] - Average balances of total earning assets were $24.37 billion, lower than the estimated $24.52 billion [1] - Net charge-offs as a percent of average loans (annualized) were 0.2%, better than the average estimate of 0.3% [1] - Net interest income (TE) was $215.03 million, below the average estimate of $217.70 million [1] - Total non-interest income was $69.71 million, also below the average estimate of $72.90 million [1] - Net interest income was reported at $214.06 million, compared to the estimated $218 million [1] Stock Performance - Shares of Ameris Bancorp have returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +1.5% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Group 1 - Ameris Bancorp reported quarterly earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and up from $1.16 per share a year ago, representing an earnings surprise of 9.52% [1] - The company posted revenues of $284.74 million for the quarter ended September 2024, which was 2.02% below the Zacks Consensus Estimate, compared to $270.93 million in the same quarter last year [1] - Over the last four quarters, Ameris Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Group 2 - The stock has gained approximately 18.2% since the beginning of the year, while the S&P 500 has increased by 21.5% [2] - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $286.2 million, and for the current fiscal year, it is $4.82 on revenues of $1.14 billion [4] - The Zacks Industry Rank for Banks - Southeast is in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [5]