Ameris Bancorp (Nasdaq: ABCB) reported a substantial increase in fourth-quarter earnings for 2025, supported by expanding interest margins and significantly improved operational efficiency. The Atlanta-based regional lender posted net income of $108.4 million, or $1.59 per diluted share, representing a 15% increase compared with the $94.4 million reported in the same period of 2024.
Core Financial Performance
The bank’s fourth-quarter results were highlighted by a tax-equivalent net interest margin (NIM) expansion to 3.85%, up five basis points from the third quarter and 21 basis points from the prior year. This margin expansion fueled net interest income (TE) of $246.3 million, a 10.6% increase over the fourth quarter of 2024.
For the full fiscal year 2025, Ameris recorded net income of $412.2 million, or $6.00 per diluted share, up from $358.7 million in 2024.
Key profitability metrics for the year included:
Return on Average Assets (ROA): 1.54% (up from 1.38% in 2024)
Return on Average Tangible Common Equity (ROTCE): 14.51%
Tangible Book Value (TBV) Growth: Increased 14.5% year-over-year to $44.18 per share
Operational discipline remained a central theme, as the bank’s efficiency ratio improved to 46.59% in the fourth quarter, down from 52.26% a year ago. Total noninterest expenses for the quarter were $143.1 million, a decrease of approximately $11.5 million from the third quarter. This reduction was driven primarily by lower incentive compensation and healthcare costs within the core banking division, alongside reduced loan servicing expenses following mortgage servicing right (MSR) sales.
Loan Portfolio and Asset Quality
Ameris reported earning asset growth of $374.0 million in the final quarter, an annualized increase of 5.9%. Total loans grew by $255.1 million during the period, despite more than $500 million in payoffs within the investor commercial real estate (CRE) and multi-family segments. Loan production reached $2.4 billion for the quarter, the highest level recorded since 2022 and a 37% increase over the fourth quarter of 2024.
The bank’s loan portfolio remains diversified, with investor CRE and commercial and industrial (C&I) loans each representing roughly 25-26% of the $21.5 billion total balance.
Credit quality metrics were characterized by management as stable:
Allowance for Credit Losses (ACL): Maintained at 1.62% of total loans.
Net Charge-Offs (NCOs): Totaled 0.18% of average total loans for the full year.
Non-Performing Assets (NPAs): Stood at 0.44% of total assets, with 35.5% of these assets consisting of government-guaranteed mortgages.
Deposits and Capital Management
The deposit base grew to $22.4 billion at year-end, a 3.0% increase for the full year. Noninterest-bearing deposits remained a strength, accounting for 28.7% of the total deposit mix. The bank noted seasonal public fund inflows of $892.6 million in the fourth quarter, which offset a decrease of $744.3 million in non-brokered, non-public fund deposits.
Management continues to emphasize capital strength, reporting a Common Equity Tier 1 (CET1) ratio of 13.2% and a Tangible Common Equity (TCE) ratio of 11.4%. During the fourth quarter, the bank repurchased 563,798 shares of common stock for $40.8 million. As of December 31, 2025, approximately $159.2 million remains available under the current $200 million share repurchase authorization.
Strategy and Market Outlook
Ameris leadership maintains a focus on high-growth Southeast markets—including Atlanta, Jacksonville, and Savannah—where population growth is projected to outpace the national average by approximately 1.9 times over the next five years.
Regarding future interest rate environments, the bank’s internal modeling suggests it is near interest rate neutrality. Management noted that approximately $12.5 billion in total loans are scheduled to reprice within one year through maturities or floating rate indices, positioning the institution for potential shifts in federal monetary policy.
Reasons to Pass on ABCB
- Net interest margin near peak, with management indicating the balance sheet is close to interest rate neutrality.
- Earnings growth driven mainly by funding cost reductions, not higher asset yields.
- Sequential decline in noninterest income, reflecting weaker mortgage banking activity.
- High loan payoffs offset production, requiring elevated origination volumes to sustain modest net loan growth.
- Meaningful exposure to investor CRE and multifamily loans, together accounting for roughly half of total loans.
- Deposit growth supported by seasonal public funds, while non-brokered, non-public deposits declined.
- Expense improvements partly tied to variable items, such as incentive compensation and healthcare costs.
- Limited near-term upside to credit costs, with reserves maintained and provisioning ongoing.
- Moderate growth outlook, with no indication of accelerating balance sheet or earnings expansion.