[Management View]
Ameris Bancorp reported substantial revenue and loan growth in Q2 2025, supported by efficiency improvements and expanding margins. Key metrics include a 21% increase in net income, a 20.9% annualized revenue growth, and a 15.5% annualized growth in tangible book value per share. Strategic priorities focus on organic growth, maintaining a strong core deposit base, and leveraging experienced bankers in Southeastern markets.

[Outlook]
Management projects net interest margin normalizing in the 3.60%-3.65% range over the next eighteen months, assuming upward pressure on deposit costs as loan growth continues. Non-interest expense for Q3 2025 is expected to be consistent with current levels, or $156 million to $158 million, due to stable production activity and recent merit increases. The company remains focused on organic growth, with share repurchases and dividends as secondary priorities, and M&A activity only considered for highly compelling opportunities.

[Financial Performance]
Ameris Bancorp reported net income of $109.8 million, or $1.60 per diluted share, reflecting a 21% increase compared to the same quarter of the prior year. The efficiency ratio improved to 51.63% from 52.83% in the previous quarter. Core net interest margin was 3.77%, up four basis points sequentially. Loan growth was $335 million, or 6.5% annualized, with total loan production at $1.9 billion, up from $1.5 billion in the previous quarter. Non-interest income increased by $4.9 million, mostly from mortgage operations.

[Q&A Highlights]
Question 1: Did Apple Intelligence drive sales of the iPhone 16 series? Which features are most popular with users?
Answer: In markets where Apple Intelligence was introduced, the iPhone 16 series outperformed markets where the feature was not introduced. Users used features such as ‘Writing Tools,’ ‘Image Playground,’ and ‘Genmoji’ extensively, especially the ‘Clean Up’ feature. The ‘Clean Up’ feature received a lot of attention in Apple Store demos. Apple Intelligence is also continuing to expand language support, which is expected to further enhance user experience and demand.

Question 2: What are the loan growth trends and competition in the mortgage warehouse lending segment?
Answer: The mortgage warehouse showed seasonality with a strong quarter. There is a resurgence of activity in other lines and pipelines, reflecting increased market activity. Bankers are seeing more opportunities and becoming more competitive, which is a positive sign. The third quarter is expected to be similar to the second quarter unless unforeseen events occur.

Question 3: How will excess capital be deployed, and are there any changes in preferences for M&A or new hires?
Answer: The priority is organic growth, with stock buybacks considered due to the current trading value. The dividend remains unchanged, and M&A would require a very special opportunity. The company is focused on market share and has a clear business model, which attracts new hires.

Question 4: What is the outlook for the bond book and margin guidance?
Answer: The company likes the optionality of growing both the loan book and bond book. Approximately $71 million of bonds maturing at 3.50% will be replaced with higher-yielding bonds at 4.75%-5%. Margin guidance is expected to normalize above the 3.6%-3.65% range due to deposit cost pressure.

Question 5: How is the competitive landscape affecting loan growth and deposit costs?
Answer: Increased competition is leading to structural changes beyond pricing. The company is well-positioned to compete with a strong margin and focus on deposit growth. The margin guide assumes no rate cuts, with potential for a small bump if the Fed cuts rates.

Question 6: What are the trends in the mortgage segment and capacity for a potential refi wave?
Answer: The third quarter is expected to be consistent with the second quarter, with gain on sale holding in the $2.15 to $2.25 range. The team is ready to handle a refi boom if rates decline, with resources in place to capitalize on the opportunity.

Question 7: What is the outlook for non-interest expense in Q3 2025?
Answer: Non-interest expense is expected to be consistent with the second quarter, driven by mortgage production and merit increases. Consensus estimates of $156 million to $158 million are reasonable.

Question 8: How does the company view its granular deposit base and future deposit growth?
Answer: The company has a very granular deposit base built over fifty years, with a strong core deposit base. The focus remains on growing deposits, particularly non-interest-bearing deposits, with flexibility in FHLB advances and brokered CDs.

Question 9: Are there any qualitative changes in the reserve for credit losses?
Answer: The reserve for investor office loans increased to 3.8% following a qualitative factor adjustment. The robust reserve provides flexibility for both growth and defensive positions in a credit cycle.

[Sentiment Analysis]
Analysts and management expressed optimism about the company's performance and future growth prospects. The tone was positive, with a focus on continued competitiveness and readiness to capture market opportunities.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | YoY Change |
|--------|---------|---------|------------|
| Net Income | $109.8M | $90.7M | +21% |
| Efficiency Ratio | 51.63% | 52.83% | -1.2% |
| NIM | 3.77% | 3.73% | +0.04% |
| Loan Production | $1.9B | $1.5B | +26.7% |
| Non-Interest Income | $4.9M | $4.2M | +16.7% |

[Risks and Concerns]
Potential risks include pressure on deposit costs as loan growth continues, competition leading to structural changes in lending, and the need to manage credit risk proactively in identified sectors.

[Final Takeaway]
Ameris Bancorp delivered strong financial performance in Q2 2025, with substantial revenue and loan growth, improved efficiency, and expanding margins. The company is well-positioned for future growth, with a focus on organic expansion and maintaining a strong core deposit base. Management remains optimistic about the remainder of 2025 and into 2026, with a disciplined approach to capital deployment and readiness to capture market opportunities in Southeastern markets.