Ameris Bancorp(ABCB) - 2025 Q2 - Quarterly Results

Financial Highlights Ameris Bancorp reported strong Q2 2025 financial results, with significant year-over-year growth in net income and EPS, robust profitability, and strong capital growth Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $109.8 million | $90.8 million | | Diluted EPS | $1.60 | $1.32 | Year-to-Date Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Income | $197.8 million | $165.1 million | | Diluted EPS | $2.87 | $2.39 | Q2 2025 Key Performance Indicators | Indicator | Value | | :--- | :--- | | Return on Average Assets | 1.65% | | Return on Average Tangible Common Equity | 15.82% | | Tangible Book Value Growth (Annualized) | 15.5% | | Tangible Book Value per Share | $41.32 | | Net Interest Margin (TE) | 3.77% | | Efficiency Ratio | 51.63% | - CEO Palmer Proctor highlighted the company's above-peer profitability, strong balance sheet, and strategic focus on growing tangible book value per share, positioning Ameris to capitalize on growth opportunities[4] Financial Performance Analysis Financial performance was driven by strong net interest income growth, expanding net interest margin, increased noninterest income, and well-managed noninterest expenses Net Interest Income and Net Interest Margin Net interest income grew quarterly and annually, driven by increased average earning assets and an expanded net interest margin to 3.77% Net Interest Income & Margin Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income (TE) | $232.7M | $222.7M | $212.8M | | Net Interest Margin | 3.77% | 3.73% | 3.58% | - The growth in average earning assets was primarily due to increases in portfolio loans, loans held for sale, and investment securities[5] - The total cost of funds was stable at 2.06% compared to Q1 2025, and deposit costs decreased by 3 basis points to 1.95%[9] Noninterest Income Noninterest income increased by 7.6% quarter-over-quarter, primarily fueled by an 11.3% rise in mortgage banking activity Noninterest Income Breakdown (Q2 2025 vs Q1 2025) | Component | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $68.9M | $64.0M | +7.6% | | Mortgage Banking Activity | $39.2M | $35.3M | +11.3% | | Other Noninterest Income | $8.5M | $7.8M | +8.7% | Noninterest Expense Noninterest expenses rose slightly by 2.8% due to compensation and merit increases, improving the efficiency ratio to 51.63% - The primary drivers for the increase in noninterest expense were a $2.7 million rise in salaries and benefits and an $862,000 increase in advertising and marketing[11] Efficiency Ratio Trend | Period | Efficiency Ratio | | :--- | :--- | | Q2 2025 | 51.63% | | Q1 2025 | 52.83% | | Q2 2024 | 51.68% | Income Tax Expense The effective tax rate for Q2 2025 increased to 23.0% from 22.1% in Q1, driven by reduced equity compensation benefits and state tax changes - The company's effective tax rate increased to 23.0% in Q2 2025, up from 22.1% in Q1 2025[12] Balance Sheet and Capital The company maintained a strong balance sheet with modest asset growth, driven by loan expansion, healthy deposit growth, and improved capital ratios Balance Sheet Trends Total assets grew to $26.68 billion, supported by loan expansion and healthy deposit growth, with noninterest-bearing accounts reaching 31.0% Key Balance Sheet Items (as of June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $26.68B | $26.51B | $26.26B | | Loans, net | $21.04B | $20.71B | $20.74B | | Total Deposits | $21.93B | $21.91B | $21.72B | - Deposit growth in Q2 was driven by increases in noninterest-bearing accounts, brokered CDs, and interest-bearing demand accounts, which offset declines in retail CDs and money market accounts[14] Shareholders' Equity and Capital Ratios Shareholders' equity increased by 4.4% to $3.92 billion, driving tangible book value per share to $41.32 and improving the TCE ratio to 11.09% Equity and Capital Metrics (as of June 30, 2025) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Shareholders' Equity | $3.92B | $3.75B | | Tangible Book Value per Share | $41.32 | $38.59 | | TCE / Tangible Assets | 11.09% | 10.59% | - The company repurchased 212,472 shares in the second quarter of 2025[15] Subordinated Debt The company will redeem $74 million of its 5.875% Fixed-To-Floating Rate Subordinated Notes due 2030, currently yielding 8.22% - Ameris will redeem $74 million in subordinated notes, which currently carry an 8.22% interest rate, on September 1, 2025[16] Credit Quality Credit quality improved in Q2 2025 with a significantly lower provision for credit losses, strong allowance, and decreased nonperforming assets Key Credit Quality Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Provision for Credit Losses | $2.8M | $21.9M | | Allowance for Credit Losses / Loans | 1.62% | 1.67% (Implied) | | Nonperforming Assets / Total Assets | 0.36% | 0.44% | | Net Charge-off Ratio (Annualized) | 0.14% | 0.18% | - Nonperforming assets decreased, with the ratio to total assets falling to 0.36%. Excluding government-guaranteed loans with minimal loss exposure, this ratio was even lower at 0.32%[17] Segment Reporting The Banking Division was the largest contributor to net income in Q2 2025 at $82.6 million, with all segments reporting positive net income Net Income by Business Segment (in thousands) | Segment | Q2 2025 Net Income | Q2 2024 Net Income | | :--- | :--- | :--- | | Banking Division | $82,581 | $54,319 | | Retail Mortgage Division | $15,556 | $28,309 | | Warehouse Lending Division | $6,189 | $4,324 | | Premium Finance Division | $5,508 | $3,833 | | Total Consolidated | $109,834 | $90,785 | Other Information This section provides details for the upcoming investor conference call, an overview of Ameris Bancorp's business, and standard disclaimers Conference Call Ameris Bancorp will host a conference call on July 29, 2025, to discuss quarterly results, with dial-in and webcast details provided - The company will host a conference call on July 29, 2025, to discuss its financial results, with details provided for access and replay[18] About Ameris Bancorp Ameris Bancorp, headquartered in Atlanta, Georgia, manages $26.7 billion in assets, operates in five southeastern states, offering full banking services - Ameris Bancorp is a bank holding company with $26.7 billion in assets as of June 30, 2025, operating primarily in the southeastern United States[19] Appendix: Financial Tables This section contains detailed financial statements and supplementary data tables supporting the earnings release, covering key financial and segment data Table 1: Financial Highlights Table 2: Income Statement Table 3: Period End Balance Sheet Table 4: Asset Quality Information Table 5: Loan Information Table 6: Average Balances Table 7: Interest Income and Interest Expense (TE) Table 8: Yields Tables 9A-9D: Non-GAAP Reconciliations Table 10: Segment Reporting