Ameris Bancorp(ABCB)2025-02-01 02:47Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of 1.37 per diluted share, with adjusted net income at 1.38 per diluted share [14] - Full-year 2024 net income was 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 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 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]