• Net Income (Q4 2024): $94.4 million or $1.37 per diluted share.
• Adjusted Net Income (Q4 2024): $95.1 million or $1.38 per diluted share.
• Net Income (Full Year 2024): $358.7 million or $5.19 per diluted share.
• Adjusted Net Income (Full Year 2024): $346.6 million or $5.02 per diluted share.
• Adjusted ROA (Q4 2024): 1.43%.
• Return on Tangible Common Equity (Q4 2024): Over 14%.
• Net Interest Margin (Q4 2024): 3.64%.
• Adjusted Efficiency Ratio (Q4 2024): Improved over 240 basis points to under 52%.
• Revenue Growth (Q4 2024): Almost 10% annualized.
• Tangible Book Value Per Share (End of 2024): $38.59, a 14.7% increase from last year.
• Tangible Common Equity Ratio (End of Q4 2024): 10.59%.
• Net Interest Income Increase (Q4 2024): $7.7 million.
• Total Assets (End of Q4 2024): $26.3 billion.
• Average Earning Assets (End of Q4 2024): $24.4 billion.
• Total Loan Production (Q4 2024): $1.8 billion.
• Core Deposits Growth (Q4 2024): $675 million or over 3%.
• Deposit Increase (Full Year 2024): About $1 billion or almost 5%.

• Warning! GuruFocus has detected 5 Warning Sign with ABCB.

Release Date: January 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ameris Bancorp (NYSE:ABCB) reported a strong fourth quarter with an adjusted ROA of 1.43% and a return on tangible common equity over 14%.
• The company achieved a notable increase in earnings per share for the full year 2024, with a 26% year-over-year growth in adjusted EPS.
• Ameris Bancorp (NYSE:ABCB) successfully grew deposits by 5% while reducing broker deposits, demonstrating effective balance sheet management.
• The company's tangible common equity ratio increased to over 10%, reflecting a strengthened capital base.
• Ameris Bancorp (NYSE:ABCB) maintained a healthy allowance for credit losses at 1.63% and achieved a 14.7% growth in tangible book value per share for the year.

Negative Points

• The company's net interest margin expansion in the fourth quarter was partly due to temporary factors, which are expected to reverse, potentially reducing the margin by 10 basis points.
• Ameris Bancorp (NYSE:ABCB) anticipates a seasonal decline in public fund deposits in early 2025, which may require replacement with higher-cost brokered deposits.
• Loan balances declined slightly during the quarter due to seasonality and accelerated paydowns in the CRE book.
• The company did not repurchase any stock in the fourth quarter, despite having a $100 million buyback authorization in place.
• Ameris Bancorp (NYSE:ABCB) recorded a $12.8 million provision for credit losses in the fourth quarter, indicating a cautious approach to potential credit risks.

Q & A Highlights

Q: Can you provide an outlook for the margin this year, considering the recent expansion and deposit cost reduction? A: Nicole Stokes, CFO, explained that while the margin expanded to 3.64% this quarter, 10 basis points of this expansion are expected to reverse due to temporary factors. The margin is anticipated to stabilize around 3.54% to 3.55% for 2025, with potential for accretive growth depending on deposit growth and maintaining a 30% non-interest-bearing deposit mix.

Q: What is the outlook for fee income, particularly SBA levels, for the upcoming year? A: Nicole Stokes noted that fee income, excluding mortgage, is expected to grow in line with loan and deposit growth, around 5% to 7%. The elevated SBA levels seen this quarter are considered a good starting run rate for 2025.

Q: What factors contributed to the strong loan production, and how do you view growth prospects for 2025? A: CEO Palmer Proctor attributed the strong loan production to increased consumer optimism and strategic hiring. He emphasized a focus on controlled growth, leveraging high-growth markets, and maintaining a diversified balance sheet to optimize margin and EPS growth.

Q: How do you plan to manage expenses and drive positive operating leverage in 2025? A: Nicole Stokes indicated that a 4.5% to 5% increase in expenses is expected for the year, with some cyclical payroll increases in the first quarter. The company aims to maintain expense control through strategic hiring and managing overhead.

Q: What is the strategy for capital deployment, considering organic growth, buybacks, and potential acquisitions? A: CEO Palmer Proctor stated that the priority is funding organic growth, followed by selective M&A opportunities that are strategic and culturally aligned. Buybacks are a lower priority compared to these growth strategies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.