On October 26, 2023, Ameris Bancorp (ABCB, Financial) released its financial results for the third quarter of 2023. The company reported a net income of $80.1 million, or $1.16 per diluted share, compared to $92.6 million, or $1.34 per diluted share, for the same quarter in 2022. For the year-to-date period ending September 30, 2023, the company reported a net income of $203.2 million, or $2.94 per diluted share, compared to $264.3 million, or $3.81 per diluted share, for the same period in 2022.
Financial Highlights
The company's return on average assets (ROA) for the third quarter was 1.25%, and the pre-tax, pre-provision net revenue (PPNR) ROA was 2.01%. The net interest margin for the third quarter of 2023 was 3.54%. The company also reported a growth in tangible book value of $0.96 per share, or 12.2% annualized, to $32.38 at September 30, 2023.
Palmer Proctor, the Company's Chief Executive Officer, commented on the results,
We are proud of another strong quarter, highlighted by core fundamentals and capital growth, which will continue to serve us well as we move into 2024. The profitability of our Company remains solid with an ROA of 1.25%, PPNR ROA of over 2%, net interest margin of 3.54% and efficiency ratio of just over 52%. We grew core deposits, tangible book value and improved our allowance for loan loss coverage ratio, all of which strengthened our balance sheet during the quarter. All of these things, combined with our focus on controlled growth, position us well for the remainder of 2023 and moving into 2024."
Balance Sheet Trends
Total assets at September 30, 2023 were $25.70 billion, compared with $25.05 billion at December 31, 2022. Cash and cash equivalents increased 38.2% to $1.55 billion at September 30, 2023, compared with $1.12 billion at December 31, 2022. Loans, net of unearned income, increased $345.8 million, or 2.3% annualized, to $20.20 billion at September 30, 2023, compared with $19.86 billion at December 31, 2022.
Share Repurchase Program
The Company's board of directors, on October 26, 2023, authorized the Company to repurchase up to $100.0 million of its outstanding common stock. The program does not require the Company to repurchase any specific number of shares and is a continuation of and increase in the Company's previously announced share repurchase program which was set to expire on October 31.
- Net interest income on a tax-equivalent basis (TE) was $208.7 million in the third quarter of 2023.
- Noninterest income decreased $4.2 million, or 6.2%, in the third quarter of 2023 to $63.2 million.
- Noninterest expense decreased $7.0 million, or 4.7%, to $141.4 million during the third quarter of 2023.
- The Company's effective tax rate for the third quarter of 2023 was 23.7%.
Explore the complete 8-K earnings release (here) from Ameris Bancorp for further details.
