Ameris Bancorp Q3 FY2025 earnings call

• Third quarter results beat expectations with above peer performance in various metrics.
• Core deposit base grew 5% annualized and tangible book value per share grew over 15% annualized.
• Revenue grew 18% annualized, efficiency ratio below 50% due to revenue growth and slight expense decline.
• Net interest margin expanded, loans grew 4% annualized within mid-single-digit guidance.
• Capital ratios grew, asset quality remained stable, loan portfolio production topped $2 billion, deposits grew 5% annualized with noninterest-bearing deposits over 30%.

Net income was $106 million or $1.54 per diluted share in the third quarter. Return on assets was 1.56%, PPNR ROA was 2.35%. Efficiency ratio improved to 49.19%. Tangible book value per share grew to $42.90, a strong 15.2% annualized growth. Net interest margin was 3.80%. Loans grew 4% annualized. Deposits increased 5% annualized, with noninterest-bearing deposits remaining at 30.4% of total deposits.

• Anticipates slight margin compression over next few quarters due to expected deposit cost pressure as loan growth picks up in 2026.
• Expects loan and deposit growth to continue in the mid-single-digit range.
• Long-term deposit growth will govern loan growth.

• Potential margin compression due to deposit cost pressure and competition leading to pricing pressure.
• Macro-economic changes could impact loan demand and asset quality.

Q: David Feaster asked about loan demand pipeline, competition, and equipment finance fee income.

A: H. Proctor and Doug Strange responded on loan demand being strong across verticals, pricing being primary competition pressure, and equipment finance fee income having recurring components and potential securitization for more fee income.

Q: Catherine Mealor inquired about expenses, margin, and deposits.

A: Nicole Stokes said efficiency ratio would increase next quarter, margin compression is coming due to deposit repricing lag and competition, and focus on noninterest-bearing deposit growth to maintain margin accretion.

Q: Russell Gunther asked about loan growth upside, investment portfolio, and M&A.

A: H. Proctor expressed optimism for loan growth acceleration with market disruption, Nicole Stokes talked about investment portfolio being close to 10% target, and H. Proctor stated organic growth is more prioritized than M&A currently.

Q: Stephen Scouten asked about hiring and mortgage activity.

A: H. Proctor discussed focus on existing teammates' talent for growth and hope for mortgage demand inflection with 10-year yield movement.