AMERIS BANCORP (NYSE:ABCB) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance relative to Wall Street expectations. The regional bank surpassed earnings estimates but fell short on revenue, a dynamic that appears to have resulted in a muted initial market reaction.
Earnings and Revenue Versus Estimates
For the quarter ended December 31, 2025, Ameris reported net income of $108.4 million, or $1.59 per diluted share. This non-GAAP EPS figure came in slightly above the analyst consensus estimate of $1.605. However, the company's quarterly revenue of $307.1 million missed the estimated $316.5 million.
The full-year picture was one of record profitability. The company posted net income of $412.2 million, or $6.00 per diluted share, for 2025, a significant increase from $358.7 million, or $5.19 per share, in 2024.
- Q4 2025 Results vs. Estimates:
- Reported EPS (non-GAAP): $1.59
- Analyst Estimate: $1.605
- Verdict: Slight Beat
- Reported Revenue: $307.1 million
- Analyst Estimate: $316.5 million
- Verdict: Miss
Market Reaction and Price Action
Following the earnings release, the market's response has been notably subdued. The stock showed no significant movement in after-hours trading. This neutral reaction likely reflects the balancing act between the positive earnings beat and the revenue shortfall. Investors may be weighing the company's strong core profitability against the top-line miss and a sequential decline in certain noninterest income lines. The stock's performance over the past month shows a gain of approximately 8%, suggesting some positive sentiment leading into the report, but the immediate post-earnings action indicates a wait-and-see approach as analysts digest the details.
Key Takeaways from the Quarterly Report
Beyond the headline numbers, Ameris Bancorp's earnings release highlighted several fundamental strengths and areas of focus for management.
Core Profitability and Margin Expansion A central theme of the quarter was improved core banking profitability. Net interest income on a tax-equivalent basis rose 10.6% year-over-year to $246.3 million. Crucially, the net interest margin expanded to 3.85%, a 21 basis point improvement from the fourth quarter of 2024. This expansion was driven by a decreasing cost of funds, which fell to 1.95%, aided by the redemption of subordinated debt and lower deposit costs. CEO Palmer Proctor emphasized the company's "profitable asset growth that drove margin expansion and positive operating leverage," culminating in a strong return on assets (ROA) of 1.54% for the year.
Disciplined Expense Management The company demonstrated rigorous cost control, with noninterest expense decreasing by 7.4% sequentially to $143.1 million. This reduction was primarily due to lower salaries and employee benefits, advertising, and loan servicing expenses. Management's focus on efficiency was evident in the adjusted efficiency ratio, which improved to 46.54% from 49.47% in the prior quarter.
Balance Sheet Growth and Capital Strength Ameris ended the year with a stronger, larger balance sheet:
- Total assets grew to $27.52 billion.
- Total deposits increased to $22.38 billion.
- Tangible book value per share saw a substantial 14.5% increase over the full year to $44.18.
- The company continued to return capital to shareholders, repurchasing over $77 million of its common stock in 2025.
Credit Quality and Outlook Credit metrics remained stable overall. The allowance for credit losses held steady at 1.62% of loans. While the net charge-off ratio increased to 26 basis points for the quarter from 14 basis points in Q3, the full-year 2025 ratio improved slightly to 18 basis points. Nonperforming assets saw a modest increase, though a significant portion is backed by government guarantees, limiting potential losses.
The press release did not provide formal financial guidance for 2026. However, CEO Proctor expressed confidence, stating the company is "well positioned to capitalize on the growth opportunity across our Southeast footprint going forward." Analyst estimates currently project revenue of approximately $1.30 billion and EPS of around $6.38 for the full year 2026.
For a detailed breakdown of upcoming analyst estimates and historical earnings data, visit the Ameris Bancorp earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
