Ameris Bancorp's Q2 2025: Unpacking Contradictions in Loan Growth, Deposit Strategy, and Market Dynamics

Loan growth and competition, deposit costs and strategy, loan growth expectations, mortgage banking gain on sale expectations, and deposit beta assumptions are the key contradictions discussed in Ameris Bancorp's latest 2025Q2 earnings call.



Financial Performance and Growth:
- Ameris Bancorp reported net income of $109.8 million, representing a 21% increase over the year-ago quarter, and achieved a robust return on assets (ROA) of 1.65%.
- The growth was driven by strong loan growth, particularly in C&I, and expanded margins due to an increase in noninterest-bearing deposits.

Loan and Deposit Dynamics:
- The company's loan growth was 6.5% annualized, within their mid-single-digit guidance, with notable contributions from C&I, mortgage warehouse, and premium finance loans.
- Deposits increased by $20 million, with the percentage of noninterest-bearing deposits rising to 31%.
- This was primarily due to increased production and effective management of treasury, although cyclical municipal deposits saw a decline.

Capitalization and Earnings per Share:
- Ameris Bancorp's capital ratios improved, with common equity Tier 1 increasing to 13% and TCE to over 11%.
- Tangible book value per share rose to $41.32, a year-over-year increase of 15.5%.
- The company's strong capital generation allowed for additional stock repurchases, buying back $12.8 million in the quarter.

Margin Stability and Future Outlook:
- The net interest margin expanded to 3.77%, despite the absence of funding cost benefits.
- Looking ahead, Ameris Bancorp anticipates that margins will normalize above the 3.60% to 3.65% range due to expected pressure on deposit costs as loan growth picks up.