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1. Company Snapshot

1.a. Company Description

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers primarily in Georgia, Alabama, Florida, North Carolina, and South Carolina.The company operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division.It offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts.


The company also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and small unsecured personal credit lines.In addition, it originates, administers, and services commercial insurance premium loans and small business administration loans.The company operates 165 full service domestic banking offices and 35 mortgage and loan production offices.


Ameris Bancorp was founded in 1971 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on ABCB

Ameris Bancorp's recent performance was driven by strong Q2 earnings, with net income of $109.8 million, or $1.60 per diluted share, representing a 36% year-over-year EPS increase. The company's quarterly earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.35 per share. A quarterly dividend of $0.20 per share was also declared. Furthermore, Ameris Bank's expansion efforts, including the opening of a new branch in downtown Jacksonville and the extension of its down payment assistance program, have likely contributed to its positive momentum.

1.c. Company Highlights

2. Ameris Bancorp's Strong Q4 Earnings: A Closer Look

Ameris Bancorp reported a strong fourth quarter with net income of $108.4 million, or $1.59 per diluted share, beating analyst estimates of $1.56. The company's return on assets was 1.57%, and the PPNR ROA was 2.38%. Net interest income increased by $7.3 million, or 12.2% annualized, driven by a net interest margin expansion of 5 basis points to 3.85%. Revenue growth was driven by the core bank, which grew by about $8.7 million. The company's EPS of $1.59 was above estimates, and the full-year net income was $412 million, with diluted EPS of $6 per share.

Publication Date: Feb -10

📋 Highlights
  • Record 2025 Net Income:: Achieved $412 million net income with $6 diluted EPS, driven by consistent PPNR ROA above 2% and margin expansion every quarter.
  • Q4 Profitability:: Fourth quarter net income reached $108.4 million ($1.59 diluted EPS), with PPNR ROA at 2.38% and ROE of 14.5%.
  • Net Interest Margin Expansion:: NIM grew 5 bps to 3.85% in Q4, supported by $7.3 million increase in net interest income (12.2% annualized).
  • Efficiency Ratio Improvement:: Q4 efficiency ratio hit 46.6%, down from 50% annually, but expected to rise to ~50% in Q1 due to seasonal payroll tax costs.
  • Capital Strength & Buybacks:: CET1 ratio at 13.2%, with a target of 12% long-term; plans to leverage buybacks and dividends to maintain capital levels.

Asset Quality and Credit Performance

The company's asset quality remained healthy, with an allowance for loan losses of 1.62% of loans. Net charge-offs normalized to 26 basis points, and annualized net charge-offs improved to 18 basis points for the full year. Management expects net charge-offs to be between 20-25 basis points in 2026. The company's focus on credit quality is evident in its strong performance, and management's guidance suggests a stable outlook for asset quality.

Capital Management and Dividend

The company's capital levels remained strong, with a common equity Tier 1 ratio of 13.2% and a tangible common equity ratio of 11.4%. Management plans to meet its capital targets through a combination of organic capital growth, buybacks, and maintaining a dividend. The company's CET1 target is around 12% for the longer term, and it plans to use buybacks to return capital to shareholders. The dividend yield is currently around 0.93%, which is attractive for income investors.

Valuation and Outlook

Based on the current price, the stock trades at a Price-to-Tangible Book Value (P/TBV) of approximately 1.43, which is reasonable given the company's strong financial performance and growth prospects. The Net Interest Margin (NIM) of 3.85% is also a positive. Analysts estimate revenue growth of 6.1% for the next year, which suggests a stable outlook for the company. With a strong track record of profitability and a solid capital position, Ameris Bancorp appears to be well-positioned for future growth.

3. NewsRoom

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Ameris Bank Introduces Business Invoice Management and Payment Solution

Feb -18

Source: businesswire.com

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Principal Financial Group Inc. Decreases Holdings in Ameris Bancorp $ABCB

Feb -04

Source: defenseworld.net

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Ameris Bancorp $ABCB Shares Sold by New York State Common Retirement Fund

Feb -02

Source: defenseworld.net

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Ameris Bancorp (ABCB) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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Ameris Bancorp (ABCB) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -30

Source: zacks.com

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Ameris Bancorp (ABCB) Beats Q4 Earnings Estimates

Jan -30

Source: zacks.com

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Ameris Bancorp Announces Fourth Quarter and Record Full Year 2025 Financial Results

Jan -29

Source: businesswire.com

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Unlocking Q4 Potential of Ameris Bancorp (ABCB): Exploring Wall Street Estimates for Key Metrics

Jan -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.93%)

6. Segments

Banking

Expected Growth: 8%

Ameris Bancorp's 8% growth is driven by strategic acquisitions, expanding commercial lending, and a strong mortgage banking segment. Additionally, the bank's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

Retail Mortgage

Expected Growth: 12%

Ameris Bancorp's 12% retail mortgage growth is driven by strategic expansion into high-growth markets, increased digital lending capabilities, and a strong brand reputation. Additionally, low interest rates and government-backed loan programs have increased demand, while the bank's efficient operations and cost management have enabled it to maintain profitability.

Premium Finance

Expected Growth: 9%

Ameris Bancorp's Premium Finance segment growth is driven by increasing demand for insurance premium financing, expansion into new markets, strategic partnerships, and investments in digital platforms. Additionally, the company's focus on customer service, competitive pricing, and efficient underwriting processes contribute to its 9% growth rate.

Warehouse Lending

Expected Growth: 11%

Ameris Bancorp's 11% growth in Warehouse Lending is driven by increasing demand for mortgage originations, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and process efficiencies has improved customer experience, leading to increased market share and revenue growth.

Small Business Administration

Expected Growth: 7%

Ameris Bancorp's Small Business Administration segment growth of 7% is driven by increased lending to small businesses, government-backed loan guarantees, and a strong economy. Additionally, the segment benefits from the bank's expanded footprint, digital platform enhancements, and strategic partnerships, enabling it to reach more customers and provide tailored financial solutions.

7. Detailed Products

Consumer Banking

Ameris Bancorp offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Ameris Bancorp provides commercial banking services, including cash management, commercial lending, and treasury management, to businesses of all sizes.

Mortgage Banking

Ameris Bancorp offers a range of mortgage banking services, including residential and commercial mortgage lending, to individuals and businesses.

SBA Lending

Ameris Bancorp provides Small Business Administration (SBA) loans to small businesses and entrepreneurs, offering flexible financing options and competitive rates.

Wealth Management

Ameris Bancorp offers wealth management services, including investment management, trust services, and financial planning, to individuals and families.

Treasury Management

Ameris Bancorp provides treasury management services, including cash management, wire transfers, and account reconciliation, to businesses and organizations.

8. Ameris Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

Ameris Bancorp operates in a highly competitive industry, and customers have various alternatives for banking services. However, the company's strong brand recognition and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Ameris Bancorp's customers are primarily individuals and small businesses, which have limited bargaining power. The company's large customer base and diversified product offerings also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

Ameris Bancorp's suppliers are primarily technology and service providers, which have limited bargaining power. The company's scale and financial resources also give it negotiating power over its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. Additionally, Ameris Bancorp's established brand and extensive branch network make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Ameris Bancorp faces intense competition from larger banks and fintech companies, which can impact its market share and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.97%
Debt Cost 9.19%
Equity Weight 84.03%
Equity Cost 9.19%
WACC 9.19%
Leverage 19.00%

11. Quality Control: Ameris Bancorp passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Hancock Whitney

A-Score: 6.3/10

Value: 6.0

Growth: 5.9

Quality: 7.2

Yield: 6.0

Momentum: 5.5

Volatility: 7.0

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Webster

A-Score: 6.2/10

Value: 6.2

Growth: 6.3

Quality: 7.5

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

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Atlantic Union Bankshares

A-Score: 5.9/10

Value: 6.2

Growth: 5.2

Quality: 7.0

Yield: 8.0

Momentum: 2.5

Volatility: 6.7

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Ameris

A-Score: 5.5/10

Value: 3.2

Growth: 7.8

Quality: 5.7

Yield: 2.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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SouthState

A-Score: 5.5/10

Value: 5.3

Growth: 5.4

Quality: 6.9

Yield: 5.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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UMB

A-Score: 5.4/10

Value: 5.9

Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.73$

Current Price

83.73$

Potential

-0.00%

Expected Cash-Flows