Ameris Bancorp Announces First Quarter 2025 Financial Results

Highlights of Ameris's results for the first quarter of 2025 include the following:

• Net income of $87.9 million, or $1.27 per diluted share
• Return on average assets ("ROA") of 1.36%
• Tangible book value⁽¹⁾ growth of $1.19 per share, or 12.5% annualized, to $39.78 at March 31, 2025
• TCE ratio⁽¹⁾ of 10.78%, compared with 9.71% one year ago
• Net interest margin (TE) expansion of 9bps to 3.73% for the first quarter of 2025
• Continued growth in noninterest bearing deposits, now representing 30.8% of total deposits
• Efficiency ratio of 52.83%
• Increase in the allowance for credit losses to 1.67% of loans, from 1.63% at December 31, 2024
• Annualized net charge-offs of 0.18% of average total loans

Ameris Bancorp (NYSE:ABCB) (the "Company") today reported net income of $87.9 million, or $1.27 per diluted share, for the quarter ended March 31, 2025, compared with $74.3 million, or $1.08 per diluted share, for the quarter ended March 31, 2024.

Commenting on the Company's results, Palmer Proctor, the Company's Chief Executive Officer, said, "Our first quarter performance showed a strong start for 2025 for Ameris. Results included 12.5% annualized tangible book value growth, a nine basis point increase in our margin, noninterest-bearing deposit growth to 30.8% of total deposits and continued above peer return metrics. We continued to build capital with TCE growing to 10.8% of tangible assets, and strengthened our allowance for credit losses to 1.67% of total loans. While economic uncertainty is currently high, Ameris will control what it can by focusing on our customers and prioritizing discipline in balance sheet management and operational efficiency. Our strong core deposit base, healthy net interest margin and continued focus on shareholder value, paired with the growth potential in our attractive Southeast markets, position us well for continued success over the years ahead."

Net Interest Income and Net Interest Margin

Net interest income on a tax-equivalent basis (TE) was $222.8 million in the first quarter of 2025, unchanged from last quarter and an increase of $20.4 million, or 10.1%, compared with the first quarter of 2024. The Company's net interest margin expanded to 3.73% for the first quarter of 2025, a nine basis point increase from 3.64% reported for the fourth quarter of 2024 and a 22 basis point improvement from the 3.51% reported for the first quarter of 2024. The increase in net interest margin is primarily attributable to decreased deposit costs.

Yields on earning assets decreased six basis points during the quarter to 5.61%, compared with 5.67% in the fourth quarter of 2024. This decrease is primarily related to a decrease in yields on loans from 5.87% for the fourth quarter of 2024 to 5.82% during the first quarter of 2025. Compared with the first quarter of 2024, loan yields decreased 10 basis points from 5.92%. Yields on earning assets decreased 12 basis points from 5.73% compared with the first quarter of 2024.

The Company's total cost of funds was 2.06% in the first quarter of 2025, a decrease of 16 and 35 basis points compared with the fourth quarter of 2024 and first quarter of 2024, respectively. Deposit costs decreased 14 basis points during the first quarter of 2025 to 1.98%, compared with 2.12% in the fourth quarter of 2024. Costs of interest-bearing deposits decreased during the quarter from 3.06% in the fourth quarter of 2024 to 2.83% in the first quarter of 2025, reflecting a decrease in brokered deposit account balances and costs, as well as money market account costs.

Noninterest Income

Noninterest income decreased $4.9 million, or 7.2%, in the first quarter of 2025 to $64.0 million, compared with $69.0 million for the fourth quarter of 2024, primarily as a result of a decrease in gains on sale of SBA loans. Mortgage banking activity decreased by $1.4 million, or 3.9%, to $35.3 million in the first quarter of 2025, compared with $36.7 million for the fourth quarter of 2025. Total production in the retail mortgage division seasonally declined $302.4 million, or 24.5%, to $933.0 million in the first quarter of 2025, compared with $1.24 billion for the fourth quarter of 2024. The retail mortgage open pipeline was $771.6 million at the end of the first quarter of 2025, compared with $638.5 million for the fourth quarter of 2024. Gain on sale spreads decreased to 2.17% in the first quarter of 2025 from 2.40% for the fourth quarter of 2024.

Other noninterest income decreased $3.8 million, or 32.9%, in the first quarter of 2025 to $7.8 million, compared with $11.6 million for the fourth quarter of 2024. This decrease primarily resulted from decreases of $3.2 million and $889,000 in gain on sale of SBA loans and customer swap income, respectively.

Noninterest Expense

The Company has remained disciplined on expense control, such that noninterest expense was down $915,000 to $151.0 million during the first quarter of 2025, compared with $151.9 million for the fourth quarter of 2024. Salaries and employee benefits during the first quarter of 2025 included cyclical increases in payroll tax and 401(k) expenses totaling $5.2 million, offset by reductions in incentives and mortgage commissions tied to production. Management continues to focus on operating efficiency, and the efficiency ratio was 52.83% in the first quarter of 2025, compared with 52.26% in the fourth quarter of 2024 and 55.64% in the first quarter of 2024.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2025 was 22.1%, compared with 25.1% for the fourth quarter of 2024. The decreased rate resulted primarily from a return to provision adjustment made when the Company filed its 2023 income tax returns in the fourth quarter of 2024 with no such adjustment in the first quarter of 2025.

Balance Sheet Trends

Total assets at March 31, 2025 were $26.51 billion, compared with $26.26 billion at December 31, 2024. Debt securities available-for-sale increased to $1.94 billion, compared with $1.67 billion at December 31, 2024. Loans, net of unearned income, decreased slightly by $33.3 million, or 0.2%, to $20.71 billion at March 31, 2025, compared with $20.74 billion at December 31, 2024. Loans held for sale increased to $545.4 million at March 31, 2025 from $528.6 million at December 31, 2024.

At March 31, 2025, total deposits amounted to $21.91 billion, compared with $21.72 billion at December 31, 2024. During the first quarter of 2025, deposits increased $190.0 million, with seasonal outflows of public funds totaling $405.9 million, brokered CDs increasing $246.8 million and the remaining (non-brokered, non-public funds) increasing $349.1 million. Noninterest bearing accounts increased $246.5 million, CDs increased $249.0 million and savings accounts increased $9.9 million, with such increases offset in part by money market accounts decreasing $256.9 million and a $58.5 million decrease in interest bearing demand accounts. Noninterest bearing accounts as a percentage of total deposits increased, such that at March 31, 2025, noninterest bearing deposit accounts represented $6.74 billion, or 30.8% of total deposits, compared with $6.50 billion, or 29.9% of total deposits, at December 31, 2024.

Shareholders' equity at March 31, 2025 totaled $3.82 billion, an increase of $72.3 million, or 1.9%, from December 31, 2024. The increase in shareholders' equity was primarily the result of earnings of $87.9 million during the first quarter of 2025, partially offset by dividends declared, share repurchases and an improvement in other comprehensive loss of $15.7 million resulting from changes in interest rates on the Company's investment portfolio. Tangible book value per share⁽¹⁾ increased $1.19 per share, or 12.5% annualized, during the first quarter of 2025 to $39.78 at March 31, 2025. Tangible common equity as a percentage of tangible assets was 10.78% at March 31, 2025, compared with 10.59% at the end of 2024. The Company repurchased 253,400 shares in the quarter ending March 31, 2025.

Credit Quality

During the first quarter of 2025, the Company recorded a provision for credit losses of $21.9 million, compared with a provision of $12.8 million in the fourth quarter of 2024. The allowance for credit losses on loans increased to 1.67% of loans at March 31, 2025, compared with 1.63% at the end of 2024. Nonperforming assets as a percentage of total assets decreased three basis points to 0.44% during the quarter. Approximately $13.4 million, or 11.6%, of the nonperforming assets at March 31, 2025 were GNMA-guaranteed mortgage loans, which have minimal loss exposure. Excluding these government-guaranteed loans, nonperforming assets as a percentage of total assets decreased four basis points to 0.38% at March 31, 2025, compared with 0.42% at the end of the fourth quarter of 2024. The net charge-off ratio was 18 basis points for the first quarter of 2025, compared with 17 basis points in the fourth quarter of 2024.

Conference Call

The Company will host a teleconference at 9:00 a.m. Eastern time on Tuesday, April 29, 2025, to discuss the Company's results and answer appropriate questions. The conference call can be accessed by dialing 1-844-481-2939. The conference call ID is Ameris Bancorp. A replay of the call will be available beginning one hour after the end of the conference call until May 6, 2025. To listen to the replay, dial 1-877-344-7529. The conference replay access code is 5049412. The financial information discussed will be available on the Investor Relations page of the Ameris Bank website at ir.amerisbank.com. Participants also may listen to a live webcast of the presentation by visiting the link on the Investor Relations page of the Ameris Bank website.

About Ameris Bancorp

Ameris Bancorp is the parent of Ameris Bank, a state-chartered bank headquartered in Atlanta, Georgia. Ameris operates 164 financial centers across the Southeast and also serves consumer and business customers nationwide through select lending channels. Ameris manages $26.5 billion in assets as of March 31, 2025, and provides a full range of traditional banking and lending products, treasury and cash management, insurance premium financing, and mortgage and refinancing services. Learn more about Ameris at www.amerisbank.com.

⁽¹⁾ Considered non-GAAP financial measure - See reconciliation of GAAP to non-GAAP financial measures in tables 9A - 9D.

This news release contains certain performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP financial measures in its analysis of the Company's performance. These measures are useful when evaluating the underlying performance and efficiency of the Company's operations and balance sheet. The Company's management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant gains and charges in the current period. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies.

This news release contains forward-looking statements, as defined by federal securities laws, including, among other forward-looking statements, certain plans, expectations and goals. Words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, as well as similar expressions, are meant to identify forward-looking statements. The forward-looking statements in this news release are based on current expectations and are provided to assist in the understanding of potential future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements, including, without limitation, the following: general competitive, economic, unemployment, political and market conditions and fluctuations, including real estate market conditions, and the effects of such conditions and fluctuations on the creditworthiness and payment behavior of borrowers, collateral values, asset recovery values and the value of investment securities; movements in interest rates and their impacts on net interest margin, investment security valuations and other performance measures; expectations on credit quality and performance; legislative and regulatory changes; changes in U.S. government trade, monetary and fiscal policies, including tariffs; competitive pressures on product pricing and services; fraud, theft or other misconduct impacting our customers or operations; cybersecurity risks, including data breaches, malware, ransomware and account takeover; the success and timing of our business strategies and plans; our outlook and long-term goals for future growth; and natural disasters, geopolitical events, acts of war or terrorism or other hostilities, public health crises and other catastrophic events beyond our control. For a discussion of some of the other risks and other factors that may cause such forward-looking statements to differ materially from actual results, please refer to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequently filed periodic reports and other filings. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.