Ameris Bancorp (ABCB) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $99.2 million ($1.44 per diluted share), up 24% year-over-year; adjusted net income was $95.2 million ($1.38 per share), reflecting robust core performance and industry-leading profitability metrics.

• Tangible book value per share grew at a 19.1% annualized rate to $37.51, with a five-year increase of 85%.

• Core deposit and asset growth continued, with total assets reaching $26.4 billion and deposits at $21.88 billion as of September 30, 2024.

• Completed sale of mortgage servicing rights, reducing GNMA nonaccrual loan exposure by $85.4 million and recognizing a $5.2 million gain.

• Maintained a strong noninterest-bearing deposit base at about 30% of total deposits.

Financial highlights

• Net interest income (tax-equivalent) was $215.0 million, up 3% year-over-year; net interest margin was 3.51%, with minor compression in line with guidance.

• Allowance for credit losses coverage ratio steady at 1.60% of loans; annualized net charge-offs declined to 0.15% of average loans.

• Nonperforming assets as a percentage of total assets improved to 0.44% from 0.74% sequentially.

• Efficiency ratio improved to 53.49%; adjusted efficiency ratio at 54.25%.

• Loans grew to $21.0 billion, up $695.7 million (3.4%) from year-end 2023; deposits increased $1.17 billion (5.7%) to $21.88 billion.

Outlook and guidance

• Expect loan and deposit growth in the mid-single digits for 2024, with deposit growth as the main constraint on loan growth.

• Net interest margin guidance remains around 3.50%, with minor fluctuations expected each quarter.

• Management remains focused on capital build, core deposit growth, and Southeast market expansion.

• Board authorized a new $100 million share repurchase program through October 2025.

• Asset sensitivity approaching neutrality in anticipation of potential FOMC rate cuts.