Ameris Bancorp Q4 FY2025 earnings call

• Core Profitability: 2025 saw record earnings over $412 million, diluted EPS $6 (15% y-o-y organic growth), PPNR ROA consistently above 2%, margin expanded each quarter, and efficiency ratio improved to 50%.
• Capital Returns: Paid off sub debt, increased share repurchase program, bought back $40.8 million of stock in Q4, common equity Tier 1 at 13.2%, tangible common equity ratio 11.4%.
• Growth: Earning assets grew ~6% in Q4, loans grew ~5% in Q4 despite CRE payoffs, loan production $2.4 billion (highest since 2022), pipelines strong.
• Funding: Focus on core deposits, noninterest-bearing deposits 29% of total, broker deposits 5% of total.

In the fourth quarter, Ameris Bancorp reported net income of $108.4 million or $1.59 per diluted share. Net interest income increased $7.3 million (12.2% annualized) with the net interest margin expanding to 3.85%. Adjusted noninterest income decreased $10.5 million in the quarter but increased $1.4 million for the full year 2025. Total noninterest expense decreased $11.5 million in the quarter and $3.8 million for the full year. Asset quality remained strong with net charge-offs improving, and the allowance for loan losses was 1.62% of loans. For the full year 2025, net income was $412.2 million or $6 per diluted share, ROA was $1.54, PPNR ROA was $2.25, and ROTCE improved. Net interest income grew $87.7 million (10.3%) with the margin expanding from 3.56% in 2024 to 3.79% in 2025.

• Margin: Anticipate 5-10 basis points margin compression over next few quarters due to deposit cost pressure.
• Loan/Deposit Growth: Expect mid-single-digit loan and deposit growth, with deposit growth governing loan growth.
• Charge-offs: Anticipate net charge-offs in 20-25 basis point range in 2026.
• Provision: Q4 provision expense included $6.3 million for unfunded commitments, indicating future loan growth potential.

• Margin Pressure: Potential margin compression due to deposit cost acceleration and loan growth.
• Competitive Landscape: Increased competition, primarily on pricing, with some pressure on structures but mainly pricing.
• Macro Environment: Uncertainty in macro environment affecting loan growth and margin.

Q: Stephen Scouten asks about loan production and payoffs.

A: Palmer Proctor says payoffs are expected to moderate in Q1/Q2, pipeline is building.

Q: Catherine Mealor asks about margin expectations.

A: Nicole Stokes states 5-10 basis points compression over next few quarters due to deposit cost pressure.

Q: Russell Gunther asks about capital and charge-offs.

A: Palmer Proctor talks about CET1 target around 12%, Doug Strange discusses charge-off guidance of 20-25 basis points in 2026.

Q: John McDonald asks about deposit trends and provision.

A: Nicole Stokes talks about deposit cyclicality and Q4 provision including $6.3 million for unfunded commitments as a sign of future loan growth.

Q: Gary Tenner asks about mortgage segment.

A: Nicole Stokes discusses mortgage mix, MSR sale, and expense decline.

Q: David Feaster asks about production and competition.

A: Palmer Proctor talks about productivity and competitive pricing, primarily on pricing with some structure pressure.

Q: Christopher Marinac asks about deposit accounts and pricing.

A: Nicole Stokes and Palmer Proctor talk about core deposits, account growth, and focus on relationship-based pricing rather than hot money.