Breaking Down Ameris Bancorp (ABCB) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a detailed analysis of Ameris Bancorp (ABCB)? Wondering how their financial performance stacks up and what key indicators you should be monitoring? With a market cap of $4.49 billion and a recent price of $53.20, ABCB has shown a 19.10% increase over the last year. But how sustainable is this growth? Dive in as we dissect their 2024 financial results, including a net income of $358.7 million, and explore what analysts are predicting for the future, with some forecasting a price target of $70.0. Is ABCB a strong buy, a steady hold, or a potential sell? Let's find out!

Ameris Bancorp (ABCB) Revenue Analysis

Understanding Ameris Bancorp's financial health requires a detailed look into its revenue streams. Here's a breakdown of key aspects:

Primary Revenue Sources:

Ameris Bancorp operates primarily through its subsidiary, Ameris Bank, offering a wide array of banking and financial services. These include:

• Commercial and consumer loans
• Deposit accounts
• Residential mortgage loans
• Specialized lending services

Ameris Bancorp operates 164 financial centers across the Southeast and serves customers nationwide through select lending channels.

Year-Over-Year Revenue Growth:

Ameris Bancorp experienced substantial revenue growth in 2024. The annual revenue for 2024 was $1.08 billion, representing a 16% increase from FY 2023.

Total revenue growth of 9.8% was annualized.

Net Interest Income:

The company saw an increase in net interest income (TE) of $7.7 million, bringing the total to $222.8 million.

Net Interest Margin:

Net interest margin (TE) expansion of 13bps to 3.64% for the fourth quarter of 2024.

Contribution of Business Segments:

Ameris Bancorp's revenue is generated through several key divisions:

• Banking Division: Offers commercial loans, consumer loans, and deposit accounts.
• Retail Mortgage Division: Originates, sells, and services residential mortgage loans. Mortgage banking activity increased by $7.0 million, or 17.7%, in the second quarter of 2024 to $46.4 million, compared with $39.4 million for the first quarter of 2024.
• Warehouse Lending Division: Provides warehouse lines of credit secured by residential mortgage loans.
• Premium Finance Division: Specializes in commercial insurance premium finance loans.
• SBA Division: Focuses on Small Business Administration (SBA) loans.

Key Financial Metrics for 2024:

Highlights of Ameris Bancorp's financial performance in 2024 include:

• Net income of $358.7 million, or $5.19 per diluted share.
• Adjusted net income of $346.6 million, or $5.02 per diluted share.
• Return on average assets (ROA) of 1.38%; adjusted ROA of 1.33%.
• Tangible book value growth of $4.95 per share, or 14.7%, to $38.59 at December 31, 2024.
• Total deposits increase of $1.01 billion, or 4.9%.

Analysis of Changes in Revenue Streams:

In the third quarter of 2024, noninterest income decreased by $19.0 million, or 21.4%, to $69.7 million, compared to $88.7 million in the second quarter. This was primarily due to decreased gains on securities and mortgage revenue. The second quarter included a gain on conversion of Visa Class B stock of $12.6 million, which was not present in the third quarter.

Here is a summary of Ameris Bancorp's financial performance metrics for the full year 2024:

For more insights into the company's values, review Mission Statement, Vision, & Core Values of Ameris Bancorp (ABCB).

Ameris Bancorp (ABCB) Profitability Metrics

Analyzing Ameris Bancorp's (ABCB) financial health involves examining its profitability metrics, which provide insights into its ability to generate earnings relative to its revenue, assets, and equity. Key profitability metrics include gross profit margin, operating profit margin, and net profit margin. Additionally, it's important to assess trends in these ratios over time and compare them against industry averages to gauge the company's competitive positioning and operational efficiency.

For the full year 2024, Ameris Bancorp (ABCB) reported a net income of $358.7 million, or $5.19 per diluted share. This compares favorably to the $269.1 million, or $3.89 per diluted share, reported for the same period in 2023.

Here's a breakdown of Ameris Bancorp's (ABCB) profitability metrics:

• Net Income: $358.7 million for 2024 ($5.19 per diluted share).
• Adjusted Net Income: $346.6 million, or $5.02 per diluted share.

Key profitability ratios for 2024 include:

• ROA: 1.38%
• Adjusted ROA: 1.33%
• Net Interest Margin (TE): 3.56% for the full year 2024.
• Efficiency Ratio: 52.26%

A review of Ameris Bancorp's (ABCB) performance indicators reveals:

• Net Interest Margin (NIM): 3.56% (down from 3.61% in FY 2023).
• Cost-to-income ratio: 53.9% (up from 52.6% in FY 2023).

Ameris Bancorp's (ABCB) net interest margin was 3.56% for 2024, compared with 3.61% for 2023. Yields on earning assets decreased 14 basis points during the fourth quarter to 5.67%, compared with 5.81% in the third quarter of 2024.

The company's net profit margin as of December 2024 was 33.56%.

Additionally, Ameris Bancorp (ABCB) reported the following for the full year 2024:

• Noninterest income increased $50.4 million, or 20.8%, to $293.3 million, compared with $242.8 million for 2023.
• Mortgage banking activity increased by $20.6 million, or 14.7%, to $160.5 million in 2024, compared with $139.9 million in 2023.

The following table presents a summary of Ameris Bancorp's (ABCB) key profitability metrics for 2024:

These metrics are useful when evaluating the underlying performance and efficiency of the company's operations and balance sheet.

Find more about Ameris Bancorp (ABCB) Financial Health: Breaking Down Ameris Bancorp (ABCB) Financial Health: Key Insights for Investors

Ameris Bancorp (ABCB) Debt vs. Equity Structure

Ameris Bancorp (ABCB) employs a mix of debt and equity to fund its growth and operations. Understanding the specifics of its debt levels, ratios, and financing activities provides key insights into its financial strategy.

As of December 31, 2024, Ameris Bancorp had a total long-term debt of $79.786 million. Additionally, the company has short-term debt obligations that form part of its overall capital structure. The effective management of these debts is crucial for maintaining financial stability and supporting future expansion.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. As of December 31, 2024, Ameris Bancorp's debt-to-equity ratio stood at approximately 0.027. This ratio indicates that Ameris Bancorp relies more on equity than debt to finance its assets, suggesting a conservative approach to financial leverage. When compared to industry standards, this ratio can provide insights into whether Ameris Bancorp's leverage is higher or lower than its peers, influencing investor perceptions of risk and stability.

Recent activities, such as debt issuances, credit ratings, and refinancing, offer additional context. For instance, a recent debt offering could provide the capital needed for strategic acquisitions or investments in technology, while a favorable credit rating can lower borrowing costs. Refinancing activities might be undertaken to take advantage of lower interest rates or to extend the maturity of existing debt, thereby improving cash flow management. No recent activity could be found regarding debt issuance, credit ratings, or refinancing activity for Ameris Bancorp. Therefore, it is important to consult the company's filings with the SEC for the most current details.

Ameris Bancorp strategically balances debt and equity to optimize its capital structure. While debt can provide a cost-effective means of financing growth, equity reduces financial risk. The optimal mix depends on various factors, including market conditions, growth opportunities, and the company's risk tolerance. Ameris Bancorp's approach reflects its overall financial strategy and impacts its ability to generate shareholder value.

Here's a breakdown of key debt-related figures for Ameris Bancorp:

• Total Long-Term Debt (as of December 31, 2024): $79.786 million
• Debt-to-Equity Ratio (as of December 31, 2024): 0.027

Understanding these components helps stakeholders assess the financial health and strategic decisions of Ameris Bancorp.

More insights into Ameris Bancorp and its investors can be found here: Exploring Ameris Bancorp (ABCB) Investor Profile: Who’s Buying and Why?

Ameris Bancorp (ABCB) Liquidity and Solvency

Understanding Ameris Bancorp's financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key metrics and trends provide insights into the bank's financial stability.

Assessing Ameris Bancorp's Liquidity:

Analyzing Ameris Bancorp's liquidity involves examining several key financial ratios and cash flow trends. These indicators help determine the company's ability to cover its short-term liabilities and maintain smooth operations.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory, focusing on the most liquid assets.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, indicates a company's operational efficiency and short-term financial health. Monitoring changes in working capital provides insights into whether the company is improving or deteriorating its liquidity position.
• Cash Flow Statements Overview: The cash flow statement is crucial for understanding the movement of cash both into and out of a company. It is divided into three main sections:
• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Cash from debt, equity, and dividends.

Cash Flow Trends: Analyzing these trends helps to evaluate the sustainability of Ameris Bancorp's cash generation and its ability to fund its operations and investments.

Potential Liquidity Concerns or Strengths: Identifying potential liquidity issues early is vital. For example, a declining current ratio or negative operating cash flow could signal problems. Conversely, a consistently high current ratio and strong operating cash flow indicate a solid liquidity position.

A comprehensive liquidity analysis involves comparing these metrics against industry benchmarks and historical data to provide a well-rounded view of Ameris Bancorp's financial health. Further insights into Ameris Bancorp's strategic vision can be found at: Mission Statement, Vision, & Core Values of Ameris Bancorp (ABCB).

Ameris Bancorp (ABCB) Valuation Analysis

Assessing whether Ameris Bancorp (ABCB) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These indicators provide a comprehensive view of the company's current market position relative to its intrinsic value. You might also be interested in: Exploring Ameris Bancorp (ABCB) Investor Profile: Who’s Buying and Why?

Key valuation ratios for Ameris Bancorp (ABCB) include:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A lower P/E ratio might suggest undervaluation, while a higher ratio could imply overvaluation relative to peers.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can indicate that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the total value of the company (enterprise value) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's useful for evaluating companies with different capital structures.

Analyzing the stock price trends of Ameris Bancorp (ABCB) over the past year offers insights into market sentiment and company performance:

• Reviewing the 12-month stock price chart to identify key trends, such as upward or downward movements, volatility, and significant price levels.
• Comparing Ameris Bancorp's stock performance against its industry peers and relevant market indices to assess relative performance.

For investors, dividend yield and payout ratios are essential, if applicable:

• Dividend Yield: This is the annual dividend payment as a percentage of the current stock price. It shows the return on investment from dividends alone. For the fiscal year 2024, Ameris Bancorp's dividend yield stood at approximately 2.8%.
• Payout Ratio: This ratio indicates the percentage of earnings paid out as dividends. A lower payout ratio suggests the company has more room to increase dividends in the future. The payout ratio for 2024 was about 30%, indicating a sustainable dividend policy.

Analyst consensus is another critical factor in valuation assessment:

• Tracking analyst ratings (buy, hold, sell) and price targets for Ameris Bancorp (ABCB) provides insights into how Wall Street views the stock's potential. As of April 2025, the consensus among analysts is a 'hold' rating, with price targets ranging from $45 to $55.
• Monitoring changes in analyst ratings and price targets can signal shifts in sentiment and expectations.

To illustrate key financial ratios, consider the following data from the 2024 fiscal year:

These metrics, combined with stock price analysis and analyst opinions, offer a rounded perspective on Ameris Bancorp's valuation, aiding investors in making informed decisions.

Ameris Bancorp (ABCB) Risk Factors

Several factors, both internal and external, could potentially impact Ameris Bancorp's financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these risks is crucial for investors.

Here's an overview of potential risks:

• Industry Competition: The financial services industry is highly competitive. Ameris Bancorp faces competition from other banks, credit unions, and non-bank financial institutions. Increased competition could lead to lower interest rates, reduced fees, and a loss of market share.
• Regulatory Changes: Banks are subject to extensive regulation. Changes in laws and regulations could increase compliance costs, restrict business activities, and impact profitability.
• Market Conditions: Economic downturns, changes in interest rates, and other market factors can affect Ameris Bancorp's financial performance. For example, rising interest rates could reduce demand for loans, while a recession could lead to increased loan defaults.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. These may include:

• Credit Risk: The risk that borrowers will default on their loans. This is a primary risk for any bank.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact earnings. Banks need to manage the gap between the interest they earn on assets and the interest they pay on liabilities.
• Liquidity Risk: The risk that a bank will not be able to meet its obligations when they come due.
• Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.
• Strategic Risk: The risk of making poor business decisions or failing to adapt to changes in the market.

Mitigation strategies are crucial for managing these risks. While specific strategies vary, common approaches include:

• Diversification: Spreading risk across different types of loans and business activities.
• Risk Management Systems: Implementing robust systems and controls to identify, measure, and manage risk.
• Compliance Programs: Establishing programs to ensure compliance with laws and regulations.
• Capital Management: Maintaining adequate capital levels to absorb potential losses.

For more in-depth information, you can check out: Breaking Down Ameris Bancorp (ABCB) Financial Health: Key Insights for Investors

Ameris Bancorp (ABCB) Growth Opportunities

Ameris Bancorp's future growth prospects are influenced by several factors, including strategic initiatives, market conditions, and competitive advantages. Let's explore these in more detail.

Key growth drivers for Ameris Bancorp include a combination of strategic initiatives and market expansions. The company's focus on enhancing customer experience and expanding its digital capabilities positions it well for future growth. Strategic acquisitions can also play a significant role in expanding Ameris Bancorp's market presence and service offerings.

While specific revenue growth projections and earnings estimates require up-to-date financial analysis, several strategic initiatives and partnerships could drive future growth for Ameris Bancorp:

• Digital Expansion: Investing in and expanding digital banking services to attract and retain customers.
• Strategic Partnerships: Collaborating with fintech companies or other financial institutions to offer innovative products and services.
• Market Diversification: Expanding into new geographic markets or business segments to reduce risk and increase revenue streams.

Ameris Bancorp possesses several competitive advantages that could support its growth trajectory:

• Strong Regional Presence: A well-established presence in key markets provides a solid foundation for expansion.
• Customer Relationships: Focus on building and maintaining strong customer relationships enhances loyalty and referrals.
• Experienced Management Team: A capable leadership team can effectively navigate market challenges and capitalize on opportunities.

Here's an overview of potential factors influencing Ameris Bancorp's growth:

For more detailed insights into Ameris Bancorp's financial health, you can refer to: Breaking Down Ameris Bancorp (ABCB) Financial Health: Key Insights for Investors