Ameris Bancorp (NYSE:ABCB) delivered a first-quarter performance that comfortably beat analyst expectations, driven by steady net interest margin expansion and disciplined expense management, even as the bank signaled it is making good on its promise to return more capital to shareholders.
The Atlanta-based regional bank reported net income of $110.5 million, or $1.63 per diluted share, for the quarter ended March 31, 2026. This compares favorably to the $1.27 per share it earned in the same quarter last year and came in ahead of the consensus analyst estimate of $1.5892 per share. On the top line, the bank generated revenue of $315.3 million, essentially matching the analyst estimate of $315.52 million.
Shares have risen roughly 2.4% over the past week and are up more than 9% over the last month, suggesting the market has been pricing in a strong report. The stock has been trending higher since hitting a low near $73.20 during the quarter, closing the period at $77.99.
Profitability and Margin Strength
The core story this quarter was the continued expansion of the net interest margin (NIM), which widened to 3.88% from 3.85% in the fourth quarter of 2025 and 3.73% a year ago. This improvement was driven by a continued decline in funding costs.
Key performance metrics for the quarter include:
- Return on Average Assets (ROA): 1.62%, up from 1.36% in the year-ago quarter.
- Return on Average Tangible Common Equity (ROTCE): 14.75%, compared to 13.15% in Q1 2025.
- Net Interest Margin (Tax-Equivalent): 3.88%, a 15-basis-point improvement year-over-year.
- Efficiency Ratio: 49.97%, a significant improvement from 52.83% in the first quarter of 2025. Management noted this was achieved despite seasonal expense headwinds.
The decline in the cost of funds was central to the margin story. Total cost of funds fell 7 basis points sequentially to 1.88%, while deposit costs dropped 11 basis points to 1.76%. This allowed the bank to offset a slight dip in earning asset yields.
Balance Sheet Trends and Capital Management
Loan growth remained steady, with net loans increasing by $314.5 million, or 5.9% on an annualized basis. Total deposits also grew, rising $260.7 million during the quarter. Importantly, the mix improved; noninterest-bearing deposits increased to 29.8% of total deposits, up from 28.7% at the end of 2025, a positive sign for funding stability.
The bank was notably active in its share repurchase program, buying back approximately $75 million of its stock, or about 1.4% of outstanding equity. Tangible book value per share increased to $44.79, up from $44.18 at the end of the prior quarter.
Credit quality metrics remained stable during the quarter:
- Provision for Credit Losses: $16.6 million, down from $23.0 million in Q4 2025.
- Allowance for Credit Losses as a % of Loans: 1.62%, unchanged from the prior quarter.
- Net Charge-Off Ratio: 21 basis points, compared to 26 basis points in Q4 2025.
- Nonperforming Assets (excluding GNMA-guaranteed loans): 0.33% of total assets, down from 0.35%.
Noninterest Income and Expenses
Noninterest income rebounded to $69.9 million, a 13.1% increase over the fourth quarter. The improvement was largely driven by a 16.1% rise in mortgage banking revenue to $37.0 million, along with a $2.8 million increase in other noninterest income, which included the absence of losses on mortgage servicing rights that had weighed on the prior quarter.
Noninterest expenses rose 9.8% sequentially to $157.1 million, a figure management attributed to typical seasonal increases in payroll taxes and 401(k) costs, higher incentive compensation, and elevated advertising and FDIC assessment expenses.
Outlook and Analyst Estimates
The press release did not include explicit forward guidance, but the operating momentum creates a high bar for the coming quarters. Analysts are currently modeling earnings per share of $1.63 for the second quarter of 2026 on sales of roughly $325.5 million. For the full fiscal year 2026, the sell-side consensus stands at earnings per share of $6.64 on total sales of $1.31 billion.
Given the current trajectory of margin expansion, loan growth, and active buybacks, the bank appears well-positioned to meet or exceed these estimates, though the pace of mortgage banking revenue and the broader economic environment will be key swing factors.
For more detailed historical earnings data and to track Ameris Bancorp’s performance against future projections and analyst estimates, you can view the full earnings history and future forecasts here and analyst ratings here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decisions.