Ameris Bancorp Q2 2025 slides: EPS jumps to $1.60 as profitability metrics improve

Introduction & Market Context

Ameris Bancorp (NASDAQ:NYSE:ABCB) released its second quarter 2025 investor presentation on July 29, showcasing strong financial performance with significant improvements across key metrics. The Southeast-focused bank reported substantial earnings growth, expanding margins, and improved asset quality metrics while maintaining its strong capital position.

Building on its solid first quarter performance, where the bank exceeded analyst expectations with an EPS of $1.28, Ameris has continued its upward trajectory in Q2 with an EPS of $1.60, representing a 26% increase quarter-over-quarter and a 21% increase year-over-year.

The bank’s stock, which saw a 1.9% increase following its Q1 earnings announcement, has been trading near $66.40, well above its 52-week low of $48.27 but still below its 52-week high of $74.56, suggesting potential upside based on the strong Q2 results.

Quarterly Performance Highlights

Ameris Bancorp reported net income of $109.8 million or $1.60 per diluted share for Q2 2025, compared to $87.9 million or $1.27 per share in Q1 2025, representing a substantial 25% increase quarter-over-quarter. Return on average assets (ROA) improved to 1.65% from 1.36% in the previous quarter, while return on average tangible common equity (ROTCE) rose to 15.82% from 13.14%.

The bank’s efficiency ratio improved to 51.63% from 52.83% in Q1 2025, demonstrating enhanced operational efficiency. Total (EPA:TTEF) revenue increased by $14.9 million or 20.9% annualized from the previous quarter, driven by growth in both net interest income and noninterest income.

As shown in the following comprehensive financial highlights table comparing current results with previous periods:

Loan growth remained solid at $335 million or 6.5% annualized during the quarter, while the bank maintained a strong deposit base with noninterest-bearing deposits representing 31.0% of total deposits at June 30, 2025, slightly up from 30.8% at the end of the previous quarter.

Detailed Financial Analysis

Ameris Bancorp’s net interest margin (NIM) expanded by 4 basis points to 3.77% in Q2 2025, continuing the positive trend from previous quarters. Net interest income (tax equivalent) grew by $10.0 million to $232.7 million, driven by a $13.9 million increase in interest income partially offset by a $3.9 million increase in interest expense.

The following chart illustrates the consistent improvement in net interest margin and income over the past five quarters:

The bank maintains a diversified revenue stream, with net interest income representing 77% of total revenue, mortgage banking activity contributing 13%, and other noninterest income accounting for 10% in Q2 2025. The mortgage gain on sale margin improved to 2.22% from 2.17% in the previous quarter, with purchase business representing 83% of mortgage activity.

As shown in the revenue composition chart below:

Expense control remains a key focus for management, with the efficiency ratio improving to 51.63% in Q2 2025. Total expenses increased by $4.2 million compared to Q1 2025, primarily due to a $2.7 million increase in salaries and employee benefits related to variable mortgage incentives tied to production, along with modest increases in occupancy, equipment, and marketing expenses.

Asset Quality and Loan Portfolio

Ameris Bancorp maintains a well-diversified loan portfolio across various sectors, reducing concentration risk. The portfolio is spread across over 155,000 loans with an average size of approximately $135,000.

The following chart illustrates the diversification of the loan portfolio by category:

Asset quality metrics showed improvement in Q2 2025, with non-performing assets decreasing to 0.36% of total assets from 0.44% in the previous quarter. Net charge-offs improved to 0.14% of average total loans from 0.18% in Q1 2025.

The allowance for credit losses (ACL) on loans stood at $341.6 million or 1.62% of total loans at the end of Q2 2025, slightly down from 1.67% in the previous quarter but still providing strong coverage for potential credit losses. During the quarter, the company recorded provision expense of $2.8 million.

As shown in the following chart, problem loan trends have been improving across all categories:

The bank’s investor commercial real estate (CRE) portfolio, which represents 24% of total loans, shows strong credit metrics with past dues at 0.05% and non-performing loans at 0.06%. The portfolio is well-diversified across property types and locations, with an average loan-to-value ratio of 58% and debt service coverage of 1.61x for stabilized term loans.

Capital Position and Outlook

Ameris Bancorp continues to strengthen its capital position, with tangible book value increasing by $1.54 per share or 15.5% annualized to $41.32 at June 30, 2025. The tangible common equity to tangible assets ratio improved to 11.09% from 9.72% a year ago.

The following chart illustrates the consistent growth in tangible book value over the past five years, with a compound annual growth rate of 15%:

The bank maintains strong regulatory capital ratios, with an estimated Common Equity Tier 1 (CET1) ratio of 13.0%. This solid capital position provides flexibility for potential growth opportunities and shareholder returns.

Ameris Bancorp’s core deposit base remains stable, with total deposits increasing by $20.3 million or 0.4% annualized during Q2 2025. The deposit mix is well-balanced across customer segments, with commercial customers representing 45%, consumers 35%, public funds 15%, and brokered deposits just 5% of the total.

The following chart details the bank’s deposit composition:

Looking ahead, Ameris Bancorp appears well-positioned to continue its strong performance, building on the momentum from the first half of 2025. The bank’s focus on maintaining a diversified loan portfolio, stable deposit base, and strong capital position, combined with its presence in high-growth Southeast markets, provides a solid foundation for future growth.

Full presentation:

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