Ameris Bancorp Q1 FY2025 earnings call

• Maintained top-tier profitability with a 1.36% ROA, over 2% PPNR ROA, and return on tangible common equity over 13%. Margin expanded while growing core deposits, with non-interest bearing deposits at 30%. - Enhanced revenue generation with positive operating leverage, reducing expenses and achieving an efficiency ratio 281 basis points better than the prior year's first quarter. - Strong capital position: common equity Tier 1 at 12.9%, TCE at 10.8%, and reserve at 1.67%. Repurchased $15 million of common stock. - Leveraged growth opportunities with 4% annualized deposit growth, stable loan balances, and anticipating mid-single digit loan and deposit growth in 2025, with growth expected to be back half loaded.

For the first quarter, Ameris Bancorp reported net income of $87.9 million or $1.27 per diluted share, a 17% increase from the first quarter of the previous year. Net interest income increased $20 million. The efficiency ratio improved to 52.83% from 55.64% in the prior year's first quarter. The net interest margin expanded 9 basis points to 3.73%. Core deposits grew, with non-interest bearing deposits making up 30.8% of total deposits. Loan production for the quarter was around 6.86%, with various divisions having specific averages, and loan balances were stable while deposits increased $190 million, representing a 4% annualized growth.

• Anticipate 2025 loan and deposit growth in the mid-single digits. - Margin expected to normalize above 3.60% over the next few quarters as public funds cycle out and loan growth picks up. - Growth is expected to be more prominent in the back half of 2025.

• Macroeconomic uncertainty posing challenges to loan growth and deposit pricing. - Reserve build influenced by economic forecasts and tariffs, which could impact provisioning. - Potential deposit pricing pressure as loan growth accelerates in the second half of the year.

Q: Catherine Mealor asked about the resilience of loan yields and margin.

A: Nicole Stokes said loan production for the quarter was around 6.86% with various divisions' averages, and the core bank's 8% and high mortgage rates contributed to strong loan yields.

Q: Stephen Scouten inquired about the balance of economic uncertainty and aggressiveness.

A: Palmer Proctor stated they would be measured, well-positioned capital-wise, and efficient in hiring with the ability to accelerate growth when appropriate.

Q: Russell Gunther asked about Balboa loan balances and capital deployment.

A: Nicole Stokes and Palmer Proctor discussed Balboa's $1.5 billion balance and capital optionality including buybacks and sub debt.

Q: Manuel Navas asked about reserve build and securities.

A: Doug Strange and Nicole Stokes explained the reserve model was influenced by economic forecasts and tariffs, and the securities portfolio was being built with maturing securities.

Q: Christopher Marinac asked about deposit cost trade-off and commitment lines.

A: Nicole Stokes and Doug Strange talked about deposit rate stability and how commitments impact reserves as loan growth picks up.