Ameris Bancorp (NYSE:ABCB) reported core profitability well ahead of industry medians, posting an adjusted return on assets (ROA) of 153% and an adjusted return on tangible common equity (TCE) exceeding 14%, according to the company’s financial disclosures. Chief Financial Officer Nicole Stokes and CEO Palmer Proctor outlined the results, highlighting an annualized average earning asset growth of 8.5% alongside a stable net interest margin of 3.88%.
Balance Sheet Strength and Capital Ratios
Ameris Bancorp maintained a heavily core-funded balance sheet during the quarter, with checking accounts comprising nearly 50% of total deposits. According to the company’s report, tangible common equity stood above 11%, while the Common Equity Tier 1 (CET1) ratio reached 12.8%. Total assets hit $28.5 billion. Chief Credit Officer Doug Strange noted that credit reserves remain robust with a 162 ratio, supported by annualized net charge-offs held low at 20 basis points.
Did you know? Ameris Bancorp executed $19 million in share buybacks during the quarter, bringing total year-to-date buybacks to $93.8 million, though executives indicated future repurchases may moderate due to rising stock prices.
Loan Production and Deposit Dynamics
Loan production reached $2.4 billion, marking a 24% increase compared to the same period last year. Total loan growth hit $349.9 million, representing a 6% annualized expansion. Average deposits also grew at a 4.4% annualized rate, though non-core funding adjustments saw brokered deposits increase by $174 million, a shift monitored by market analysts concerned with wholesale funding reliance.
Margin Outlook and Nashville Expansion Strategy
Executives flagged potential margin compression of a few basis points over the coming quarters driven by climbing deposit costs and the non-recurrence of one-time items. CFO Nicole Stokes explained that recent bond yield bumps—contributing about 3 basis points to the margin—stemmed from inflation bonds and bond swaps, which are expected to taper off. Meanwhile, CEO Palmer Proctor pointed to the firm’s expansion into the Nashville market, anchored by an acquired local team, as a primary driver for regional asset growth.
Frequently Asked Questions
What was Ameris Bancorp’s adjusted ROA for the quarter?
According to the company’s financial report, Ameris Bancorp achieved an adjusted ROA of 153%.
How much did loan production increase year-over-year?
Loan production reached $2.4 billion, representing a 24% increase compared to the previous year.
What is the status of the company’s capital levels?
Capital levels remain strong, with a CET1 ratio of 12.8% and a tangible common equity ratio above 11%.
What caused the recent increase in bond yields?
CFO Nicole Stokes attributed the increase to inflation bonds and bond swaps that contributed about 3 basis points to the margin.
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