• Net Income: $87.9 million or $1.27 per diluted share, a 17% increase over the first quarter of last year.
• Net Interest Income: Increased by $20 million compared to the first quarter of last year.
• Efficiency Ratio: Improved to 52.83% from 55.64% in the first quarter of last year.
• Return on Assets (ROA): 1.36%.
• Pre-Provision Net Revenue (PPNR) ROA: 2.08%.
• Return on Tangible Common Equity: 13.16%.
• Tangible Book Value per Share: Increased by $1.19 to $39.78.
• Tangible Common Equity Ratio: 10.78% at the end of the quarter.
• Share Buyback: Repurchased approximately $15 million of common stock or 253,000 shares.
• Net Interest Margin: Expanded 9 basis points to 3.73%.
• Provision for Credit Losses: $21.9 million, increasing reserve to 1.67% of loans.
• Total Nonperforming Assets: Improved to 44 basis points of assets.
• Noninterest Income: Decreased by $4.9 million.
• Total Assets: $26.5 billion at the end of the quarter.
• Deposit Growth: Increased by $190 million, representing a 4% annualized growth rate.
• Noninterest-Bearing Deposits: Represent 30.8% of total deposits.
• Loan Production: $1.5 billion in the first quarter.

• Warning! GuruFocus has detected 1 Warning Sign with ABCB.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ameris Bancorp (NYSE:ABCB) reported a strong start to 2025 with a 1.36% return on assets (ROA) and a return on tangible common equity over 13%.
• The company achieved a net interest margin of 3.73%, which is well above most peer levels, supported by a strong 30% level of noninterest-bearing deposits.
• Ameris Bancorp (NYSE:ABCB) successfully reduced quarterly expenses, leading to an efficiency ratio improvement of 281 basis points compared to the first quarter of last year.
• The company strengthened its capital position with a common equity Tier 1 ratio of 12.9% and a tangible common equity ratio of 10.8%.
• Ameris Bancorp (NYSE:ABCB) achieved a 4% annualized growth in core deposits, with a significant portion being noninterest-bearing, and repurchased $15 million of stock during the quarter.

Negative Points

• Noninterest income decreased by $4.9 million, primarily due to reduced gains on the sale of SBA loans and a decline in mortgage division revenue.
• Loan balances were stable, reflecting continued seasonality in the mortgage warehouse and mortgage portfolio, with total loan production slightly down from the previous quarter.
• The company recorded a $21.9 million provision for credit losses, increasing the reserve to 1.67% of loans.
• There is an expectation of margin normalization above 3.60% in the coming quarters due to anticipated pressure on deposits as loan growth picks up.
• The reserve build was influenced by economic forecasts, with a shift to a more conservative weighting, reflecting uncertainties such as tariffs.

Q & A Highlights

Q: What is driving the resilience in loan yields, and do you expect them to improve further? A: Nicole Stokes, CFO, explained that the loan production for the quarter was around 6.86%, with the core bank at 8%. The resilience is due to high mortgage rates and the premium finance division's short maturity acting like variable rates. Loan yields are expected to remain consistent, with margin compression likely coming from the deposit side as loan growth picks up in the second half of the year.

Q: How is Ameris Bancorp balancing economic uncertainty with potential growth opportunities? A: CEO H. Proctor stated that the company will remain measured rather than aggressive in the current environment. They are well-positioned with capital and liquidity to seize opportunities when appropriate. The company has hired additional bankers and is ready to accelerate growth when conditions are favorable.

Q: Can you provide insights into the expense control and expectations for future quarters? A: Nicole Stokes noted that the quarter's expense control was strong, with no significant credits or reduced incentive compensation driving it. The company expects expenses to align with consensus, considering merit increases and seasonal payroll tax adjustments.

Q: What factors influenced the reserve build despite strong asset quality? A: Douglas Strange, Chief Credit Officer, explained that the reserve build was model-driven, influenced by economic forecasts and a shift to a more adverse scenario weighting due to unexpected economic data, particularly related to tariffs.

Q: How is Ameris Bancorp approaching capital deployment, including share buybacks and sub-debt considerations? A: CEO H. Proctor mentioned that the company prefers organic growth but is considering options like sub-debt and share buybacks. They are confident in their capital position for both offensive and defensive strategies in the current environment.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.