Regional banking company Ameris Bancorp (NYSE: ABCB) announced better-than-expected revenue in Q1 CY2025, with sales up 7% year on year to $285.9 million. Its non-GAAP profit of $1.28 per share was 12.1% above analysts’ consensus estimates.

Is now the time to buy ABCB? Find out in our full research report (it’s free).

StockStory’s Take

Ameris Bancorp’s first quarter results came in ahead of Wall Street’s revenue and earnings expectations, yet the market reaction was muted as the stock remained largely unchanged. Management attributed the quarter’s performance to robust growth in non-interest bearing deposits, stable loan yields, and disciplined expense control. CEO Palmer Proctor emphasized that “our first quarter financial results represent a strong start to 2025,” highlighting margin expansion and a healthy balance of core deposits. The company’s ability to curb expenses, even during a period that typically sees higher seasonal costs, further contributed to profitability.

Looking forward, Ameris Bancorp’s outlook is shaped by expectations of mid-single-digit loan and deposit growth, ongoing expense discipline, and careful balance sheet management amid economic uncertainty. Management noted that growth initiatives are likely to accelerate in the second half of the year, with Proctor stating, “the back half of 2025 will likely allow for more growth opportunities than the first half.” CFO Nicole Stokes cautioned that deposit pricing pressures could emerge as loan growth improves, but the company aims to maintain a strong margin and capitalize on its well-capitalized position to pursue strategic opportunities as they arise.

Key Insights from Management’s Remarks

Management cited successful deposit gathering, margin expansion, and expense controls as the main factors behind the quarter’s outperformance versus analyst expectations, while also addressing the impact of economic uncertainty on capital planning and reserve levels.

• Margin expansion supported results: The net interest margin increased to 3.73%, aided by a favorable mix of non-interest bearing deposits and resilience in loan yields. Management stressed that this margin expansion was a key differentiator versus peers and remains sustainable even without accretion from past acquisitions.

• Core deposit growth outpaced expectations: Non-interest bearing deposits grew at a 15% annualized rate, helping offset seasonal outflows in municipal funds. This shift reduced reliance on wholesale funding and provided stability to the funding base, a point repeatedly emphasized by the executive team.

• Expense control improved efficiency: Operating expenses declined despite typical first-quarter seasonal pressures such as payroll taxes and 401(k) contributions. The efficiency ratio improved by nearly 3 percentage points year-over-year, with management attributing this to “overall expense control” rather than one-time benefits.

• Capital and reserve strength: Ameris built capital ratios and increased reserves, with common equity Tier 1 reaching 12.9%. The reserve build was driven by more conservative weighting of downside economic scenarios, influenced by recent changes in macro forecasts, especially broader and deeper tariff expectations.

• Loan growth paced for later in year: Loan balances were stable in the quarter, with management reiterating that loan growth is expected to pick up in the second half of the year. Caution around commercial real estate and a measured approach to capital deployment were highlighted as near-term priorities.

Drivers of Future Performance

Management expects operating momentum in the second half of the year, with deposit competition and macroeconomic uncertainty as key themes shaping the outlook for 2025.

• Loan and deposit growth timing: The company expects mid-single-digit growth in both loans and deposits, but anticipates that this acceleration will be weighted toward the latter half of 2025. Management noted that clarity on the economic environment and potential easing of uncertainty could serve as catalysts for growth initiatives.

• Deposit pricing pressure risk: CFO Nicole Stokes warned that increased competition for deposits could compress margins as loan growth accelerates. The company intends to prioritize profitable growth and maintain flexibility to adjust pricing strategies as market conditions evolve.

• Capital deployment flexibility: With a strong capital position and high reserve levels, Ameris has optionality to pursue organic growth, share buybacks, or address maturing subordinated debt. Management stressed that any growth will be balanced and measured, depending on market opportunities and risk assessment.

Catalysts in Upcoming Quarters

Going forward, our analysts will closely monitor (1) the pace of loan growth in the second half of the year, (2) signs of increased deposit competition and its impact on net interest margin, and (3) management’s deployment of excess capital—whether toward organic growth, share repurchases, or debt repayment. Shifts in economic conditions and regulatory changes, such as tariffs, will also serve as important indicators for tracking the company’s execution.

Ameris Bancorp currently trades at $62.50, down from $63.49 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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