Ameris Bancorp Q3 FY2024 earnings call

• Palmer highlighted strong third quarter financial performance, including 19% annualized tangible book value growth, 2% ROA, 15% return on tangible common equity, and TCE ratio in double-digits. CRE concentration to capital ratio improved. Margin was 3.51% due to granular core deposit base. Efficiency ratio reduced to 54%. Executed MSR sale with pre-tax gain over $5 million. Addressed storm impacts and Ameris Foundation support for recovery.
• Nicole discussed net income details, interest income/expense trends, $6.1 million provision for credit losses, balance sheet details (total assets $26.4 billion, earning assets $24.3 billion), loan and deposit growth, and loan-to-deposit ratio improvement.

For the third quarter, net income was $99.2 million or $1.44 per diluted share. Interest income increased $7.8 million over the previous quarter while interest expense increased 5.7%, leading to a net interest income increase of about $2.1 million. The margin was 3.51%, well above peer levels. The efficiency ratio improved to 54.25%. Loan production was $509 million, the highest in four quarters. Portfolio loans increased $695.7 million year-to-date, and deposits increased $1.17 billion year-to-date. Tangible book value per share grew 19.1% annualized to $37.51 per share. Capital levels were strong with TCE ratio at 10.2% and common equity Tier 1 over 12%.

• Margin guidance around 3.50%, with slight fluctuations expected but maintaining around that level. Board renewed buyback plan for $100 million through October 2025. Anticipate loan and deposit growth in mid-single-digits, with deposit growth being the governor for loan growth. Mid-single-digit loan and deposit growth expected for 2024.
• Strong capital levels provide optionality for growth opportunities and capital returns.

Forward-looking statements are subject to risks and uncertainties, with actual results potentially varying materially. Factors causing differences are listed in press release and SEC filings, but no specific operational failures discussed in detail.

Q: Will Jones asked about margin outlook and potential defensiveness.

A: Nicole stated margin guidance unchanged, focused on NII growth, with 3 basis points of core margin compression related to funding mix.

Q: Christopher Marinac asked about reserve growth and C&I trends.

A: Doug Strange said reserve model-driven, 1.60% coverage ratio, C&I book diversified with low expected charge-offs.

Q: Russell Gunther asked about NIM guide and loan growth outlook.

A: Nicole said NIM guide around 3.50%, Palmer discussed loan growth guidance and position to capitalize on opportunities.

Q: Manuel Navas asked about mortgage capacity and deposit growth drivers.

A: Palmer talked about mortgage infrastructure and systems, Nicole discussed core deposit growth from relationship banking and cyclical year-end deposits.

Q: David Feaster asked about premium finance and margin expansion.

A: Palmer discussed premium finance stability and potential margin expansion, Nicole and Palmer talked about deposit betas and margin outlook.