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Ameris Bancorp (ABCB)·Q1 2025 Earnings Summary

Executive Summary

  • Ameris Bancorp delivered a strong Q1 2025: Diluted EPS of $1.27 (GAAP) beat S&P Global consensus by ~$0.13, while revenue missed consensus as noninterest income softened; net interest margin expanded 9 bps q/q to 3.73% and ROA was 1.36% . EPS consensus: $1.142*, revenue consensus: $276.8MM*, actual revenue: $263.97MM*.
  • Deposit growth was resilient despite seasonal municipal outflows: total deposits rose $190MM q/q, noninterest-bearing deposits increased to 30.8% of total, supporting margin strength and funding mix .
  • Credit remained stable; ACL rose to 1.67% (model-driven) and NCOs were 0.18% annualized; management skewed CECL scenarios toward downside after a Moody’s tariff addendum (baseline 1/3, adverse 2/3) .
  • Guidance/tone: management expects margin to normalize above ~3.60% over coming quarters, reaffirms mid-single-digit loan/deposit growth for 2025, and highlights capital optionality and disciplined expense control; $0.20 dividend declared in March .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.73% (+9 bps q/q), driven by lower deposit costs and positive deposit mix; CFO emphasized margin is “core” with no remaining accretion to backfill .
  • Core funding strength: noninterest-bearing deposits rose to 30.8% and brokered CDs remain <5% of deposits; management highlighted bankers’ success in deposit gathering .
  • Capital and tangible book value accretion: TCE ratio increased to 10.78%, and tangible book value per share rose $1.19 q/q (12.5% annualized) to $39.78; CEO: “Our strong core deposit base, healthy net interest margin… position us well” .
  • Quote: CEO Proctor—“Our first quarter performance showed a strong start for 2025… noninterest-bearing deposit growth to 30.8% of total deposits and continued above peer return metrics” .

What Went Wrong

  • Noninterest income fell $4.9MM q/q (−7.2%) on lower gains on sale of SBA loans and softer mortgage banking (gain-on-sale margin declined to 2.17% from 2.40%) .
  • Provision for credit losses increased to $21.9MM (from $12.8MM), with ACL up to 1.67% of loans; management cited model-driven reserve build amid tariff uncertainty, not asset quality deterioration .
  • Efficiency ratio ticked up modestly q/q to 52.83% (from 52.26%), reflecting lower noninterest income and typical seasonal payroll items, though expenses fell $915k q/q .

Financial Results

GAAP and Adjusted EPS, Revenue, and Estimates Comparison

Note: S&P Global consensus values marked with *, and S&P Global “actual” revenue used for estimate comparison.

MetricQ1 2024Q4 2024Q1 2025
Diluted EPS ($)1.08 1.37 1.27
Adjusted Diluted EPS ($)1.10 1.38 1.28
S&P EPS Consensus Mean ($)1.04*1.192*1.1417*
Total Revenue ($USD Millions, Company)267.3 290.8 285.9
S&P Revenue Consensus Mean ($USD Millions)258.0*276.2*276.8*
S&P “Actual” Revenue ($USD Millions)246.2*276.8*264.0*

Values retrieved from S&P Global*

Margins, Efficiency, Profitability, Credit

MetricQ1 2024Q4 2024Q1 2025
Net Interest Margin (TE, %)3.51 3.64 3.73
Efficiency Ratio (%)55.64 52.26 52.83
ROA (%)1.18 1.42 1.36
Total Cost of Funds (%)2.41 2.22 2.06
Net Charge-offs (% of avg loans, annualized)0.25 0.17 0.18
ACL on Loans (%)—1.63 1.67
TCE / Tangible Assets (%)9.71 10.59 10.78

Revenue Components (Company)

Metric ($USD Millions)Q1 2024Q4 2024Q1 2025
Net Interest Income201.4 221.8 221.8
Noninterest Income65.9 69.0 64.0
Total Revenue267.3 290.8 285.9

Segment Net Income

Segment Net Income ($USD Millions)Q1 2024Q4 2024Q1 2025
Retail Mortgage Division18.7 20.3 12.9
Warehouse Lending Division4.3 5.1 4.6
Premium Finance Division3.9 5.2 4.7
Banking Division47.4 63.8 65.8
Total Consolidated74.3 94.4 87.9

KPIs and Balance Sheet

KPIQ1 2024Q4 2024Q1 2025
Total Deposits ($USD Billions)21.00 21.72 21.91
Noninterest-bearing Deposits ($USD Billions)6.54 6.50 6.74
Total Loans ($USD Billions)20.60 20.74 20.71
Total Assets ($USD Billions)25.66 26.26 26.51
Efficiency Ratio (%)55.64 52.26 52.83

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin (TE)Next few quartersNormalize to ~3.50–3.55% after Q4’s 3.64% (10 bps boost from seasonal factors) “Margin normalize above 3.60% over the next few quarters”; March NIM 3.69%; expect some normalization as deposit base normalizes Raised vs prior normalization, with near-term normalization from elevated QTD
Loan GrowthFY 2025Mid-single digits (5–6%) Mid-single digits reaffirmed; back-half weighted (3Q/4Q) Maintained
Deposit GrowthFY 2025Mid-single digits Mid-single digits reaffirmed Maintained
Mortgage Gain-on-Sale Margin1H 20252.25–2.40% guided GOS margin 2.17% in Q1; management previously guided 2.25–2.40% based on demand; no change to range indicated Maintained range; Q1 below range
Expenses (Merit)From Apr 2025Not specified~$1.7MM per quarter merit increase begins in April; overall expense run-rate consistent with consensus into Q2 New detail
Funding Mix/Brokered CDsQ1 2025~$800MM brokered at ~4.5% expected to reprice down in Q1 Brokered CDs increased $246.8MM in Q1; funding kept short; pricing down as they reprice Maintained strategy
DividendOngoingRaised to $0.20 in Q4 $0.20 declared payable April 7, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Margin trajectoryQ3: Maintain ~3.50%, asset-sensitive neutral ; Q4: NIM 3.64% with 10 bps temporary boost; guide ~3.50–3.55% normalized NIM 3.73%; guide normalize above ~3.60% near term; March at 3.69% Improving, expected slight normalization
Deposit mix and pricingQ3/Q4: ~30% DDA; aggressive repricing after Fed moves; spot costs ~2% in Dec (skewed) DDA ratio at 30.8%; deposit growth 4% annualized; mix/costs favorable; non-brokered/non-municipal up $349MM Positive mix sustained
Credit/Reserve stanceQ3: ACL 1.60%; NPA improvement (GNMA MSR sale) ; Q4: ACL 1.63%; stable asset quality ACL 1.67%; model-driven increase; tariffs addendum prompted downside scenario weighting Conservative build
Tariffs/macro—Moody’s addendum on broader, deeper tariffs; reduced baseline weighting; more downside considered New headwind considered
Securities portfolioQ4: portfolio rebuild, maturities ahead Purchased ~$285MM at ~4.62%; ~$283MM maturities in Q2 at ~2.83% to reinvest up Yield-enhancing
Capital & buybacksQ3: $100MM authorization extended ; Q4: redeemed $106MM sub debt; strong CET1 12.6%; buybacks secondary to organic Repurchased ~$15MM (253k shares), ~$85MM remaining; optionality across growth/M&A/buybacks Active but disciplined
Mortgage gain-on-saleQ3: GOS fell to 2.17% ; Q4: rebounded to 2.40%; guided 2.25–2.40% GOS 2.17% in Q1; pipeline $771.6MM; seasonal production down Softer near-term

Management Commentary

  • CEO Palmer Proctor: “Our first quarter performance showed a strong start for 2025… nine basis point increase in our margin, noninterest-bearing deposit growth to 30.8% of total deposits and continued above peer return metrics… TCE growing to 10.8%… strengthened our allowance for credit losses to 1.67%” .
  • CFO Nicole Stokes: “Our net interest margin expanded 9 basis points to a strong 3.73%… this margin is a core margin, we don’t have any accretion left… bankers did a great job protecting and growing deposits… margin normalize above 3.60% over the next few quarters” .
  • Chief Credit Officer Doug Strange: “Reserve build had nothing to do with asset quality… influenced by weightings on the economic forecast; we moved to a 1/3 baseline, 2/3 downside in that scenario” .

Q&A Highlights

  • Margin outlook: After a better-than-expected Q1 (funding-side wins), management reiterated normalization above ~3.60% as deposit base normalizes; March NIM was 3.69% versus higher QTD .
  • Loan yields/production: Company-wide new loan production ~6.86–7.0% (bank ~8%, premium finance ~6.75%, mortgage ~6.64%, warehouse ~6.71%); margin accretive versus ~3.13% interest-bearing deposit production costs .
  • Reserve methodology: Downside scenario weighting increased after Moody’s tariff addendum; baseline retained at 1/3 due to certain components still having merit; build is model-driven .
  • Securities portfolio: ~$285MM bought at ~4.62%; ~$283MM maturing in Q2 at ~2.83%, providing uplift to interest income as reinvested .
  • Capital deployment: Organic growth prioritized; buybacks opportunistic; sub debt flip-to-float callable to be evaluated .

Estimates Context

  • Q1 2025 EPS beat: $1.27 actual vs $1.142* consensus; revenue miss: $264.0MM* actual vs $276.8MM* consensus. Drivers include lower noninterest income (SBA gains down $3.2MM) and mortgage revenue −$1.4MM, partly seasonal; margin resilience offset weaker fee trends . Values retrieved from S&P Global*
  • Trajectory vs prior: Q4 2024 EPS $1.38 vs $1.192* consensus (beat); revenue $276.8MM* vs $276.2MM* consensus (in line/slight beat). Q1 2024 EPS $1.10 vs $1.04* (beat); revenue $246.2MM* vs $258.0MM* (miss). Values retrieved from S&P Global*

Key Takeaways for Investors

  • Strong core profitability and margin resilience: NIM 3.73% with lower deposit costs and improved mix; management expects normalization above ~3.60% as funding mix normalizes .
  • Funding strength is a differentiator: DDA at 30.8% and ability to reprice deposits quickly post-Fed moves support NIM durability and operating flexibility .
  • Conservative credit stance amid macro uncertainty: ACL increased to 1.67% due to model changes; asset quality metrics remain stable (NCOs 0.18%, NPAs 0.44% of assets) .
  • Fee headwinds near term: mortgage gain-on-sale margin at 2.17% and SBA gains lower; watch for seasonal recovery and pipeline conversion in retail mortgage .
  • Capital optionality: TCE 10.78%, CET1 12.9% referenced by management, buyback capacity ($85MM remaining) and sub debt actions provide flexibility to balance organic growth and shareholder returns .
  • Near-term setup: Expect slight NIM normalization from elevated QTD levels, brokered CDs repricing down, and merit increases (~$1.7MM/quarter) from April; mid-single-digit loan/deposit growth back-half weighted .
  • Monitoring points: tariff developments (reserve modeling), mortgage market rates (gain-on-sale), deposit competition (spot pricing), and securities reinvestment yields .

Notes:

  • We did not locate an 8-K Item 2.02 for Q1 2025; we relied on the Q1 2025 earnings press release and the full earnings call transcript .
  • Values retrieved from S&P Global*