Ameris Bancorp Posts 36% EPS Jump in Q2

Core Insights - Ameris Bancorp reported Q2 2025 results with non-GAAP earnings per share of $1.59, exceeding the consensus estimate of $1.33, while GAAP revenue of $231.8 million fell short of expectations by $65.6 million, representing a 22.0% shortfall [1][2] - The company experienced higher profitability with strong capital growth and improved efficiency metrics, despite underlying revenue softness and modest loan and deposit growth [1][5] Financial Performance - Non-GAAP EPS increased by 36.0% year-over-year from $1.17 to $1.59 [2] - Non-GAAP revenue rose to $301.3 million, a 6.1% increase from $284.1 million in Q2 2024 [2] - GAAP net income increased to $109.8 million, up 21.0% from $90.8 million in the prior-year period [5] - Return on average tangible common equity (non-GAAP) improved to 15.76%, up from 13.35% [2] Asset and Loan Growth - Total assets grew by 0.6% to $26.68 billion, with total loans increasing by $335 million to $21.04 billion [6] - The loan portfolio remains diversified, with commercial & industrial loans at $3.18 billion and commercial real estate loans at $8.88 billion [6] Revenue Generation - Net interest income increased to $232.7 million, a 9.3% year-over-year growth, with a net interest margin of 3.77% [7] - Noninterest income grew nearly 8% quarter-on-quarter to $68.9 million, driven by a rebound in mortgage banking revenue [8] Asset Quality and Credit Losses - Provision for credit losses (GAAP) significantly decreased to $2.8 million from $24.7 million a year earlier [9] - Nonperforming assets fell to 0.36% of total assets, down from 0.74% in the prior-year quarter [9] Shareholder Value and Capital Management - The company repurchased 212,472 shares and increased the quarterly dividend to $0.20 per share from $0.15 [10] - The tangible common equity (TCE) ratio (non-GAAP) improved to 11.09%, up from 9.72% a year ago [10] Strategic Focus and Outlook - Ameris Bancorp emphasizes organic growth and selective acquisitions, focusing on expanding its core banking presence in the Southeast [4] - Management anticipates mid-single-digit loan and deposit growth for 2025, with a slight adjustment in margin guidance to settle above 3.60% [11][12]