On July 25, 2024, Ameris Bancorp (ABCB, Financial) released its 8-K filing announcing financial results for the second quarter of 2024. The company reported a net income of $90.8 million, or $1.32 per diluted share, surpassing the analyst estimate of $1.14 per share. Revenue for the quarter reached $272.81 million, matching the estimated $272.81 million.
Company Overview
Ameris Bancorp is a bank holding company operating through its subsidiary, Ameris Bank. The company provides traditional banking services across Georgia, Alabama, Florida, and South Carolina. Ameris Bancorp is organized into five segments: banking, retail mortgage, warehouse lending, SBA, and premium finance, with the banking segment generating most of its revenue. The company aims to expand its market share through strategic acquisitions within its geographic region.
Performance Highlights
Ameris Bancorp's net income for Q2 2024 was $90.8 million, or $1.32 per diluted share, compared to $62.6 million, or $0.91 per diluted share, in Q2 2023. Adjusted net income was $80.8 million, or $1.17 per diluted share, up from $62.6 million, or $0.91 per diluted share, in the same period last year. For the year-to-date period ending June 30, 2024, net income was $165.1 million, or $2.39 per diluted share, compared to $123.1 million, or $1.78 per diluted share, for the same period in 2023.
"This quarter we achieved outstanding financial performance, marked by margin expansion, growth in net interest income, and an increase in core deposits, resulting in a PPNR ROA exceeding 2%," said Palmer Proctor, CEO of Ameris Bancorp.
Net Interest Income and Margin
Net interest income on a tax-equivalent basis was $212.9 million, a 5.2% increase from the previous quarter and a 1.1% increase from Q2 2023. The net interest margin was 3.58%, up from 3.51% in Q1 2024 but slightly down from 3.60% in Q2 2023. The increase in net interest margin compared to the previous quarter was primarily due to improved loan and securities yields, partially offset by higher funding costs.
Noninterest Income and Expense
Noninterest income rose by 34.7% to $88.7 million in Q2 2024, driven by increased mortgage revenue and gains on securities. Mortgage banking activity increased by 17.7% to $46.4 million. Noninterest expense increased by 4.5% to $155.4 million, primarily due to higher salaries and employee benefits related to mortgage production.
Balance Sheet and Credit Quality
Total assets as of June 30, 2024, were $26.52 billion, up from $25.20 billion at the end of 2023. Loans, net of unearned income, increased by 7.2% annualized to $20.99 billion. Total deposits grew to $21.44 billion, with noninterest-bearing accounts representing 31.0% of total deposits. The allowance for credit losses on loans was 1.60%, with nonperforming assets at 0.74% of total assets.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $90.8 million | $74.3 million | $62.6 million |
| Diluted EPS | $1.32 | $1.08 | $0.91 |
| Net Interest Income | $212.9 million | $202.4 million | $210.5 million |
| Net Interest Margin | 3.58% | 3.51% | 3.60% |
| Total Assets | $26.52 billion | $25.65 billion | $25.80 billion |
Analysis
Ameris Bancorp's strong performance in Q2 2024, marked by significant increases in net income and net interest income, demonstrates the company's effective management and strategic growth initiatives. The increase in core deposits and improved loan yields are positive indicators of the company's financial health. However, the slight increase in nonperforming assets and higher funding costs could pose challenges moving forward. Overall, Ameris Bancorp's robust financial results and strategic focus on expanding its market share position it well for future growth.
Explore the complete 8-K earnings release (here) from Ameris Bancorp for further details.
