Ameris Bancorp’s Earnings Call Highlights Strong Profitability

Ameris ((ABCB)) has held its Q1 earnings call. Read on for the main highlights of the call.

Ameris Bancorp’s recent earnings call highlighted a robust performance in profitability, net interest margin expansion, and capital growth. Despite these positive aspects, the company faced challenges with increased provisions for credit losses and a decline in non-interest income.

Strong Profitability Metrics

Ameris Bancorp reported impressive profitability metrics for the first quarter of 2025, with a return on assets (ROA) of 136, a pre-provision net revenue (PPNR) ROA exceeding 2%, and a return on tangible common equity of over 13%. These figures underscore the company’s strong financial health and operational efficiency.

Net Interest Margin Expansion

The company achieved a notable expansion in its net interest margin, which increased by 9 basis points to 3.73%. This expansion is significantly above most of its peers and was supported by a strong 30% level of non-interest-bearing deposits, highlighting effective asset-liability management.

Capital and Shareholder Value Growth

Ameris Bancorp demonstrated robust capital growth, with its tangible book value increasing by over 12.5% and a common equity Tier 1 ratio reaching 12.9%. Additionally, the company repurchased $15 million worth of stock, reflecting a commitment to enhancing shareholder value.

Deposit Growth

The bank reported a $190 million increase in deposits, translating to a 4% annualized growth rate. Notably, non-interest-bearing deposits grew at a 15% annualized rate, indicating strong customer trust and a solid deposit base.

Provision for Credit Losses

Ameris Bancorp recorded a $21.9 million provision for credit losses, increasing the reserve to 1.67% of loans. This was influenced by a shift in economic forecast weightings, reflecting a cautious approach to potential credit risks.

Decline in Non-Interest Income

The company experienced a decline in non-interest income, which decreased by $4.9 million. This was primarily due to reduced gains on the sale of SBA loans and a decline in mortgage division revenue, highlighting areas for potential improvement.

Forward-Looking Guidance

Looking ahead, Ameris Bancorp anticipates mid-single-digit growth in loans and deposits for 2025. The company expects the net interest margin to normalize above 3.60% in the coming quarters, supported by continued strong deposit growth and effective expense management. These forecasts indicate a positive outlook for the bank’s future performance.

In summary, Ameris Bancorp’s earnings call revealed a strong financial performance with significant profitability and capital growth. While challenges such as increased credit loss provisions and declining non-interest income were noted, the company’s forward-looking guidance suggests continued growth and stability. Investors and stakeholders can remain optimistic about Ameris Bancorp’s strategic direction and financial health.