Ameris Bancorp (ABCB) Q4 2025 earnings review
An Efficiency Machine Firing on All Cylinders
Ameris Bancorp delivered a pristine Q4 to cap off a record 2025. While many peers struggle with deposit costs, Ameris expanded its Net Interest Margin (NIM) for the fifth consecutive quarter to 3.85%. The real story is operating leverage: revenue grew while expenses plummeted, driving the efficiency ratio down to an elite 46.59%. Tangible Book Value soared 14.5% YoY. The only blemish on an otherwise stellar report was a sequential dip in noninterest-bearing deposits and a seasonal drop in mortgage revenue.
🐂 Bull Case
Ameris defied industry gravity again, expanding Net Interest Margin by 5 bps QoQ to 3.85% (and +21 bps YoY). This was driven by a decrease in deposit costs (1.87% vs 1.94% prior quarter) and debt redemptions, proving their asset sensitivity is being managed perfectly.
The efficiency ratio improved dramatically to 46.59% from 49.19% last quarter and 52.26% a year ago. Management cut noninterest expense by $11.5M QoQ, showcasing exceptional discipline.
🐻 Bear Case
Noninterest-bearing (NIB) deposits fell significantly to 28.7% of total deposits, down from 30.4% in Q3 and 29.9% a year ago. A $331M outflow in NIB accounts suggests the 'higher for longer' rate environment is finally forcing some cash sorting.
Noninterest income fell 19% QoQ, primarily due to a 21.6% drop in mortgage banking activity. While some seasonality is expected, the magnitude of the drop ($8.8M) weighed on the top line.
⚖️ Verdict: 🟢🟢
Strong Buy. Ameris is executing a masterclass in profitability with a 1.57% ROA and expanding margins in a tough environment. The efficiency gains are structural, and capital build is robust. The NIB deposit dip is the only item to monitor.
Key Themes
Margin Expansion Accelerating
While many banks are seeing margin compression, Ameris is accelerating. NIM hit 3.85%, up 5bps QoQ. The driver? Aggressive management of liability costs. Total cost of funds dropped 10bps to 1.95%. This demonstrates pricing power and an advantageous deposit franchise.
Tangible Book Value Compounding
Shareholder value creation remains the core theme. Tangible Book Value (TBV) per share grew 14.5% YoY to $44.18. In Q4 alone, TBV grew $1.28/share (11.8% annualized). The bank is compounding capital at an elite rate while returning cash via buybacks ($40.8M in Q4).
Noninterest-Bearing Deposit Outflows
Reversing. For the first time in 2025, the percentage of noninterest-bearing deposits dropped significantly, falling below the psychological 30% threshold to 28.7%. NIB balances fell by $331 million sequentially. While total deposits grew (+2.6% annualized), they are becoming more expensive as the mix shifts toward Money Market accounts (up $471M).
Optically Higher NPAs
Stable/Negative. Nonperforming assets (NPAs) rose 4 basis points to 0.44% of assets. However, context is critical: ~20% of these NPAs are GNMA-guaranteed mortgage loans with minimal loss exposure. Excluding these, NPAs are 0.35%, up slightly from 0.33%. Net charge-offs rose to 26bps (from 14bps in Q3), indicating normalization rather than stress.
Operational Efficiency Breakout
Accelerating. The bank slashed noninterest expenses by $11.5M (7.4%) sequentially. Drivers included lower incentive comp, healthcare costs, and marketing. This drove the efficiency ratio to 46.59%, a massive improvement from 52.26% a year ago. This level of efficiency provides a massive buffer against credit costs or revenue headwinds.
Other KPIs
Accelerating. Up 15% YoY and 2% sequentially. The bank has consistently grown earnings throughout 2025.
Stable. Up 4.8% annualized from Q3. The bank is seeing consistent demand in C&I and Commercial Real Estate despite a high rate environment.
Stable. Capital levels remain robust, allowing for the $40.8M share repurchase in the quarter without denting the balance sheet fortress.
Decelerating. Down 21.6% from Q3. High rates and seasonality hit production volumes. Gain on sale spreads remained flat at 2.20%, indicating pricing discipline over volume chasing.
Guidance
Stable. Management continues to forecast strong internal capital generation, assuming a flat balance sheet.
Management has significant dry powder authorized for buybacks, having used ~$41M in Q4. This implies continued support for the stock price.
Key Questions
Sustainability of NIM Expansion
NIM expanded to 3.85% this quarter, largely due to lower deposit costs. With NIB deposits falling to 28.7%, is this expansion sustainable, or have we reached peak margins?
Expense Run-Rate
Noninterest expense dropped significantly to $143M. Was the reduction in incentive comp and healthcare costs a one-time Q4 true-up, or is this the new baseline for 2026 expenses?
Credit Normalization Pace
Net charge-offs ticked up to 26bps from 14bps. Is this a return to historical averages, or are you seeing specific stress in the C&I or non-GNMA portfolio?
Deposit Mix Shift
We saw a $331M outflow in noninterest-bearing deposits this quarter. Was this seasonal client behavior, or a structural shift in commercial client cash sorting?