ABCB

• Core Profitability & Financial Strength

  • Core profitability outpaces industry peers, with adjusted ROA of 1.53%, adjusted PPNR ROA of 2.24%, and adjusted return on tangible common equity (TCE) of over 14%, even with high capital levels.
  • The balance sheet remains strongly capitalized: TCE ratio above 11%, CET1 ratio of 12.8%, and 50% of funding comes from checking accounts, with 30% of total deposits non-interest-bearing.
  • Year-over-year adjusted revenue grew 6% while adjusted expenses grew only 3%, delivering positive operating leverage.
  • Growth & Operational Activity
  • Organic profitable growth was achieved: average earning assets grew 8.5% annualized, loans grew 6% annualized, and the balance sheet grew almost $1 billion organically in the first half of 2026 while improving net interest margin.
  • Loan growth was diversified across commercial and industrial (C&I, including premium finance, mortgage warehouse, and equipment finance), construction, and owner-occupied commercial real estate (CRE).
  • The firm returned $19 million of capital to shareholders via share repurchases in Q2, bringing year-to-date repurchases to ~$94 million (1.7% of outstanding shares). Remaining share repurchase authorization was $65.34 million at quarter-end.
  • Credit Quality
  • Credit quality remains stable and clean, with net charge-offs and non-performing assets holding at very low, stable levels.
  • Strategic Expansion
  • Ameris announced entry into the new Nashville, Tennessee market, enabled by the recruitment of an experienced local banking team, to leverage the market's attractive growth profile.

• Net interest margin: Management expects slight margin compression of a few basis points per quarter over the next two quarters, driven by rising deposit costs to fund balance sheet growth. The one-time 3 bps margin boost from inflation-linked bond yields in Q2 will not repeat in coming quarters.
  • Loan and deposit growth: Full-year 2026 loan and deposit growth are projected to be in the mid-single-digit range. Longer-term, deposit growth will limit maximum loan growth, as management prioritizes organic funded growth.
  • Efficiency ratio: The adjusted efficiency ratio is expected to stay slightly above 50% for the remainder of 2026.
  • Net charge-offs: Full-year 2026 net charge-offs are expected to land in the 20 to 25 basis points range, which management views as sustainable beyond 2026 given current stable credit trends.
  • Share repurchases: Repurchases will remain opportunistic; the pace of buybacks will be lower than the first quarter of 2026, returning to a more normalized level, with management preferring repurchases at lower current price levels.

Ameris Bancorp is a single-segment regional bank holding company, so segment-level performance breakdown is not provided in the transcript. Aggregate company-wide financial results for Q2 2026 are: reported net income of $51.4 million ($0.77 per diluted share), adjusted net income (excluding the litigation accrual and one-time investment gains) of $107.3 million ($1.60 per diluted share). Total assets at quarter-end were $28.5 billion, up from $28.1 billion at the prior quarter-end. Average earning assets grew $544.6 million (8.5% annualized), with loans growing $349.9 million (6% annualized). Q2 loan production was $2.4 billion, a 24% increase year-over-year, with a remaining robust loan pipeline of $2.7 billion. Average deposits grew 4.4% annualized, ending deposits were down $49 million due to temporary quarter-end customer outflows that are not relationship-related. Non-interest-bearing deposits grew $33.9 million, reaching 30% of total deposits. Net interest margin held steady at 388 bps, unchanged from the prior quarter. Adjusted non-interest income decreased $4.6 million, driven primarily by lower mortgage-related revenue. Adjusted non-interest expense increased $3.1 million, driven by higher legal costs and charitable giving. The adjusted efficiency ratio improved 130 bps year-over-year to 50.4%. Provision expense was $17.3 million for the quarter, with annualized net charge-offs of 20 bps, and the allowance for credit losses remained unchanged at 162 bps of total loans.

• A $82.5 million litigation accrual was recorded in Q2 2026 for a jury verdict in a California employment case. The company plans to appeal the verdict, but accrued the full verdict amount plus related costs per accounting requirements.
  • Ongoing competitive pressure for core deposits has increased funding costs, which is expected to drive gradual margin compression in coming quarters.
  • Mortgage revenue remains pressured by the current high interest rate environment, with no expected incremental lift in the second half of 2026 unless market rates decline.
  • Forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from guidance, with key risk factors disclosed in the company's SEC filings and earnings press release.

Q: What drove the recent increase in bond portfolio yields, and is this higher yield level sustainable for coming quarters? / A: The 40 bps bump in bond yields came from two sources: delayed inflation adjustments on Treasury Inflation-Protected Securities (TIPS), which added a one-time boost, and yield improvement from swapping out lower-yielding bonds for higher-yielding alternatives. The one-time TIPS inflation adjustment added ~3 bps to the overall net interest margin; without this boost, margin would have declined this quarter. Bond yields will pull back slightly in coming quarters as this one-time effect reverses.

Q: Is there an opportunity to release credit loss reserves given many quarters of very low actual charge-offs, and how does reserve level factor into capital allocation decisions? / A: Reserves are model-driven in partnership with Moody's, with the current 162 bps reserve level (186 bps including unfunded commitments) among the highest peer group levels, providing almost nine years of coverage based on current run rates. The weighting methodology for scenario forecasts returned to a 50-50 balance between baseline and downside scenarios after a temporary 60-40 downside shift last quarter, and the reserve level is maintained at its current strong level. No reserve release is planned at this time.

Q: What is the outlook for loan growth across asset classes and geographies in the second half of 2026, and why did brokered deposits increase this quarter? / A: Management is more encouraged about growth prospects than it has been in the long term, with consistent, broad-based growth across all verticals and all existing states in the southeastern footprint, supporting confidence in the mid-single-digit full-year growth guidance, funded by appropriate deposit growth. The $174 million increase in brokered deposits was a temporary offset to seasonal outflows of public funds, which will flow back in late Q3 and Q4. Management chose to use brokered deposits rather than compete aggressively for high-cost core deposits to backfill the temporary gap, given the firm already has a very small brokered deposit share of 6.7% of total deposits.

Q: What is Ameris's priority for excess capital, outside of organic growth, and are there plans for additional new market entries beyond Nashville? / A: The capital priority stack remains unchanged: organic growth is first, followed by opportunistic share repurchases, with the current dividend considered appropriate, and M&A only for very selectively evaluated, special opportunities, since abundant organic growth options already exist in the firm's existing footprint. No additional new market entries outside the current footprint are planned; the Nashville entry was only enabled by the recruitment of a strong existing local team. Ameris is already seeing opportunities to gain additional wallet share from existing customers in its current high-growth footprint amid industry disruption, so no expansion into new geographies is needed.

Q: What is the outlook for mortgage business performance in the second half of 2026? / A: Mortgage production has remained solid and consistent, but gain-on-sale revenue was lower this quarter because the firm retained more production on its balance sheet rather than selling loans. No incremental industry-wide lift in mortgage activity is expected in the second half unless interest rates decline, but the business continues to perform well and is being closely cost-managed.