Ameris Bancorp(US:ABCB)2025-11-07 17:32Financial Performance - For the quarter ended September 30, 2025, the company reported net income of $106.0 million, or $1.54 per diluted share, an increase from $99.2 million, or $1.44 per diluted share in the same period of 2024, representing a 6.9% increase in net income [143]. - Ameris reported net income of $303.8 million, or $4.41 per diluted share, for the nine months ended September 30, 2025, compared to $264.3 million, or $3.83 per diluted share, for the same period in 2024, representing a 14.93% increase in net income [157]. - Net interest income increased by $64.2 million, or 10.18%, to $694.4 million for the nine months ended September 30, 2025, from $630.2 million in the same period of 2024 [160]. Interest Income and Expenses - Total interest income for the retail banking division was $245.3 million in Q3 2025, compared to $244.0 million in Q3 2024, reflecting a marginal increase [144]. - The company's net interest income for the quarter was $237.9 million, up from $214.1 million in the same quarter of the previous year, representing an increase of 11.1% [144]. - The average interest rate on interest-earning assets for Q3 2025 was 4.12%, compared to 3.92% in Q3 2024, indicating a rise in interest rates [145]. Credit Losses and Asset Quality - The provision for credit losses increased to $22.6 million in Q3 2025 from $6.1 million in Q3 2024, indicating a significant rise in expected credit losses [144]. - Non-performing assets as a percentage of total assets decreased to 0.40% at September 30, 2025, from 0.47% at December 31, 2024 [3]. - The total allowance for credit losses on loans at September 30, 2025, was $345.3 million, or 1.62% of total loans, compared to $338.1 million, or 1.63%, at December 31, 2024 [177]. Noninterest Income and Expenses - Noninterest income for the company reached $76.3 million in Q3 2025, compared to $69.7 million in Q3 2024, marking a 9.1% increase [144]. - Total noninterest expense rose to $154.6 million in Q3 2025 from $151.8 million in Q3 2024, reflecting a 1.8% increase [144]. - Total noninterest income for the nine months ended September 30, 2025, was $209.2 million, a decrease of $15.1 million, or 6.7%, from $224.3 million in the same period of 2024 [166]. Capital and Liquidity - The Company’s common equity Tier 1 capital ratio increased to 13.20% at September 30, 2025, compared to 12.65% at December 31, 2024 [201]. - Total deposits increased by $505.6 million, or 2.3%, to $22.23 billion at September 30, 2025, compared to $21.72 billion at December 31, 2024 [195]. - As of September 30, 2025, the Company had liquidity availability with the FHLB and FRB Discount Window amounting to $3.37 billion and $2.10 billion, respectively [206]. Loan Production and Yields - Loan production in Q3 2025 amounted to $5.4 billion, with weighted average yields of 6.77% [1]. - Loan production amounted to $15.1 billion during the first nine months of 2025, with a weighted average yield of 6.79%, compared to $14.1 billion and 7.54% in the same period of 2024 [160]. - The yield on interest-bearing deposits decreased from 3.44% in Q3 2024 to 2.82% in Q3 2025 [2]. Tax and Regulatory Compliance - The effective tax rate for Q3 2025 was 22.6%, up from 21.2% in Q3 2024 [5]. - Income tax expense for the nine months ended September 30, 2025, was $88.9 million, compared to $85.5 million in the same period of 2024, with an effective tax rate decrease from 24.4% to 22.6% [170]. Risk Management - The Company aims to manage interest rate risk such that net interest income does not increase or decrease by more than 20% given a change of 200 basis points over any 24-month period [205]. - The ALCO Committee continuously monitors the Company's liquidity resources, which were deemed satisfactory as of September 30, 2025 [207]. - The Company has no exposure to foreign currency exchange rate risk, commodity price risk, or other market risks [210].