Sign in
AB

Ameris Bancorp (ABCB)·Q3 2025 Earnings Summary

Executive Summary

  • Ameris delivered another above-peer quarter: diluted EPS $1.54, ROA 1.56%, ROTCE 14.6%, NIM (TE) 3.80%, and efficiency ratio 49.19% .
  • Versus S&P Global consensus, EPS beat ($1.54 vs $1.47*) while revenue missed on S&P’s taxonomy ($291.6M actual vs $306.6M*), noting definitional differences with Ameris-reported “total revenue” of $314.2M; we anchor estimate comparisons to S&P data and explain the divergence below .
  • Management signaled slight NIM compression ahead given deposit competition and loan growth, and expects the efficiency ratio to move back above 50% in Q4, while reaffirming mid‑single‑digit loan/deposit growth .
  • Capital return is a clear catalyst: $8.5M repurchases in Q3 and a new $200M buyback authorization through Oct‑2026; sub debt redemptions at 8.22% and 3.875% further reduce funding costs .

What Went Well and What Went Wrong

What Went Well

  • Strong profitability and operating leverage: revenue grew ~18% annualized with a modest expense decline, pushing the efficiency ratio below 50%; CEO highlighted “above peer performance” across ROA, NIM, and efficiency .
  • Core deposit franchise remains a differentiator: noninterest-bearing deposits stayed over 30% (30.4%), supporting a robust 3.80% core NIM; loan and deposit growth tracked mid‑single‑digit guidance .
  • Capital actions and balance sheet optimization: $8.5M buybacks in Q3; board authorized $200M repurchase program; investment portfolio rebuilding toward 9–10% provides optionality while sub debt redemptions lower funding costs .

What Went Wrong

  • Revenue miss versus S&P consensus: S&P Global recorded revenue at $291.6M vs $306.6M consensus*, which screens as a miss despite Ameris’ reported “total revenue” at $314.2M; taxonomy differences likely drive the discrepancy (see Estimates Context) .
  • Provision elevated: $22.6M provision with ~51% linked to unfunded commitments; while constructive for future growth, it pressured net interest income after provision .
  • Management flagged emerging NIM headwinds: retail CDs maturing near 3.71% and new production at 3.89% amid deposit competition; efficiency ratio expected to revert >50% in Q4 .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Revenue ($USD Millions)$283.8 $285.9 $300.7 $314.2
Diluted EPS ($)$1.44 $1.27 $1.60 $1.54
Net Income ($USD Millions)$99.2 $87.9 $109.8 $106.0
Net Interest Margin (TE, %)3.51% 3.73% 3.77% 3.80%
Efficiency Ratio (%)53.49% 52.83% 51.63% 49.19%

Performance vs S&P Global consensus (Q3 2025):

  • EPS: Actual $1.54 vs Consensus $1.47* → Bold beat. Values retrieved from S&P Global.
  • Revenue: S&P Actual $291.6M vs Consensus $306.6M* → Bold miss. Values retrieved from S&P Global.
MetricActualConsensus
EPS ($)$1.54 $1.47*
Revenue ($USD Millions)$291.6 (S&P actual)$306.6*

Segment performance (Net Income, $USD Millions):

SegmentQ1 2025Q2 2025Q3 2025
Retail Mortgage Division$12.9 $15.6 $18.7
Warehouse Lending Division$4.6 $6.2 $5.8
Premium Finance Division$4.7 $5.5 $6.4
Banking Division$65.8 $82.6 $75.1

Key Performance Indicators:

KPIQ1 2025Q2 2025Q3 2025
Total Assets (Period End, $USD Billions)$26.515 $26.680 $27.100
Loans (Period End, $USD Billions)$20.707 $21.041 $21.258
Deposits (Period End, $USD Billions)$21.912 $21.933 $22.228
Noninterest-Bearing Deposit Mix (%)30.8% 31.0% 30.4%
Quarterly Loan Growth (Annualized, %)N/A6.5% 4.1%
Net Charge-offs (Annualized, % of Avg Loans)0.18% 0.14% 0.14%
ACL (% of Loans)1.67% 1.62% 1.62%
ROA (%)1.36% 1.65% 1.56%
ROTCE (%)13.16% (Adjusted) 15.82% 14.57%
Tangible Book Value per Share ($)$39.78 $41.32 $42.90

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest MarginLT outlookNormalize ~3.60–3.65% (Q2) Slight compression over next few quarters; deposit competition rising (Q3) Lowering trajectory
Efficiency RatioQ4 2025~Low-50s implied “Return above 50% in Q4” Raised (higher ratio)
Loan & Deposit GrowthOngoingMid‑single‑digit range Mid‑single‑digit range reaffirmed Maintained
Investment Portfolio SizeOngoingAdd to ~9–10% over time Target 9–10% of earning assets; ~9.3% now Clarified target
Share RepurchasesThrough Oct 2026Prior $100M program $200M authorization Raised
Sub DebtSep–Oct 2025Not previously specifiedRedeemed $74M 5.875% (8.22% current) on Sep 1; $110M 3.875% on Oct 1 Executed
DividendQ4 2025$0.20 run-rate $0.20 declared (paid Oct 6) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
NIM & deposit costsGuide to ~3.60–3.65% longer-term; deposit costs competitive; growth still margin-accretive Starting to see compression; retail CDs reprice near 3.89% vs 3.71% maturities; focus on growing NIB to keep NIM accretive Rising deposit competition; slight NIM compression
Equipment financeCredit box retooled; charge-offs in target range; balances ~7.2% of loans (Q2) Strong fees; ~75% recurring; preparing to securitize to scale while retaining servicing/fees Scaling with securitization
MortgageQ2 production up to ~$1.27B; GOS ~2.22% Q3 production ~$1.09B; GOS 2.20%; applications rising; potential refi/purchase tailwind if 30‑yr rates get a “five-handle” Improving pipeline; rates-sensitive upside
Investment securitiesOptionality; added ~$200–$285M at ~4.9%; maturities rolling off lower yields Portfolio ~9.3% of earning assets; targeting 9–10% (add ~$175M) Near target; modest add
Loan growth outlookMid‑single‑digit guide; upside with market disruption in SE footprint Potential to accelerate to upper single/double-digit if macro improves; pipelines healthy Upside optionality
M&A posturePrefer organic growth; buybacks/dividends considered “Mistake to get distracted” by M&A amid disruption; organic priority Steadfast organic focus
Tariffs/macroTariff addendum drove reserve weighting to adverse scenarios in Q1 No new tariff reserve commentary; asset quality stable Monitoring; stable credit
Capital & buybacks$12.8M repurchased in Q2; remaining authorization $8.5M repurchased; $200M program approved Increased capital return

Management Commentary

  • CEO: “Third quarter results again beat expectations with above peer performance across the board, including return on assets, PP&R ROA, return on tangible common equity, net interest margin, and efficiency ratio.”
  • CFO: “Efficiency ratio improved to 49.19% this quarter… fueled by 17.8% annualized revenue growth… I do anticipate the efficiency ratio to return above 50% in the fourth quarter.”
  • CFO on NIM/Deposits: “We’re starting to see [compression]… almost $1B of retail CDs maturing… production at 3.89% vs 3.71%… overall growth is still accretive to margin if we continue to grow non‑interest‑bearing deposits.”
  • CEO on strategy: “It would be a mistake for us to get distracted [by M&A]… we probably have far more opportunities organically… given the new opportunities with disruption.”
  • CCO on Equipment Finance: “We retooled [the credit box]… charge‑offs over recent quarters right in that target zone… we’re finalizing the opportunity to start securitizing that paper… increase production and still maintain servicing and fee income.”

Q&A Highlights

  • Deposit/NIM dynamics: Analysts probed deposit cost trajectory and NIM cadence; CFO detailed CD repricing headwinds and reiterated focus on growing NIB deposits to keep NIM accretive even as competition rises .
  • Loan growth upside: Stephens asked about accelerating above mid‑single‑digit growth; CEO sees potential to upper single/double-digit given macro improvement and SE market disruption; talent base already in place .
  • Equipment finance & fees: Raymond James discussed demand and fee sustainability; CCO expects ~75% of fee income recurring and outlined securitization plans to scale with servicing/fees retained .
  • Mortgage inflection: Piper Sandler asked about capacity and rate‑sensitive upside; CEO noted applications up and potential acceleration if 30‑yr rates approach “five‑handle”; team ready without adding headcount .
  • Investment portfolio sizing: CFO described nearing 9–10% target and optionality to allocate between loans and securities based on deposit growth .
  • Expense trajectory: KBW queried 2026 opex growth; CFO suggested ~5–5.5% noninterest expense growth next year, with mortgage efficiency improving to ~55% as volume returns .

Estimates Context

  • EPS: Ameris reported $1.54; S&P Global consensus was $1.47* → Bold beat. Values retrieved from S&P Global.
  • Revenue: S&P Global recorded Q3 “Revenue” as $291.6M versus $306.6M consensus* → Bold miss. Ameris’ company-reported “Total Revenue” was $314.2M, which reflects its net interest income plus noninterest income and TE presentation adjustments; differences in taxonomy between S&P and company disclosures drive the discrepancy. Values retrieved from S&P Global .
  • Implications: Street likely revises upward on EPS while reassessing revenue mapping; focus shifts to NIM path and deposit beta assumptions given management’s compression commentary .

Key Takeaways for Investors

  • Earnings quality remains high: sub‑50% efficiency and 3.80% core NIM underpin robust profitability; watch for NIM drift but NIB mix provides resilience .
  • Bold EPS beat vs consensus should support multiple, while the revenue “miss” hinges on S&P taxonomy—Ameris’ reported total revenue grew solidly; clarify definitions in models .
  • Deposit competition is the swing factor: CD repricing and funding costs are rising; bias NIM slightly lower, but organic NIB growth remains a lever to stay accretive .
  • Loan growth upside is real: pipelines healthy, equipment finance securitization adds capacity, SE market disruption favors share gains; base case mid‑single‑digit with upside on macro .
  • Capital return accelerates: $200M buyback authorization and sub debt redemptions reduce funding costs—model lower interest expense and share count over the next 12 months .
  • Mortgage optionality: production steady with potential tailwinds if rates fall; gain‑on‑sale spreads holding ~2.20%—efficiency improves with volume .
  • Near‑term trading setup: EPS beat plus buyback is supportive; monitor Q4 efficiency ratio normalization and deposit pricing commentary for NIM path signals .

Notes:

  • Ameris’ Q3 2025 earnings materials were furnished via press release and the earnings call; an 8‑K 2.02 press item was not separately cataloged in the dataset. We read the full press release and full Q3 call transcript, plus Q2 and Q1 quarters’ releases and transcripts, and relevant Q3 press releases (buyback, dividend) .
  • S&P Global consensus values are marked with an asterisk. Values retrieved from S&P Global.