Ameris earnings rose to $116.1 million, or $1.73 per diluted share, in the third quarter of 2026, up from $106.0 million, or $1.54 per share, a year earlier. The Atlanta-based bank expanded lending and reduced expenses, but higher deposit costs slightly narrowed its net interest margin. Results were released on October 22, followed by an earnings call on October 23.
Key Takeaways
- Quarterly profit rose year over year, although nine-month reported earnings remained below 2025.
- Earning-asset growth supported interest income despite a one-basis-point decline in net interest margin.
- Ameris renewed a $200 million buyback authorization, with organic growth remaining management’s first capital priority.
Table of Contents
- Ameris earnings improve as expenses decline
- Deposit growth comes with a higher funding bill
- Mortgage weakness offsets some operating progress
- Credit trends diverge as buyback authority is renewed
- Conclusion
Ameris earnings improve as expenses decline
Ameris Bancorp’s third-quarter results announcement showed a substantial recovery from second-quarter reported net income of $51.4 million. The comparison was heavily influenced by litigation expense: the litigation accrual declined by $80.8 million, accounting for most of the $84.0 million sequential reduction in noninterest expense.
The underlying expense improvement was smaller. Adjusted noninterest expense, a non-GAAP measure, fell $2.5 million, or 1.5%, mainly because of lower mortgage compensation and legal expenses. The adjusted efficiency ratio improved to 49.15% from 50.42%; a lower ratio indicates fewer expenses relative to revenue.
Adjusted diluted earnings per share reached $1.73, compared with $1.60 in the second quarter. For the first nine months, however, reported net income declined to $278.0 million from $303.8 million a year earlier. The stronger third quarter therefore did not erase the year-to-date decline in reported profit.
| Item | Details |
|---|---|
| Total assets | $28.55 billion at September 30, 2026, versus $28.49 billion at June 30. |
| Return on average assets | 1.61% in Q3 2026, versus 1.56% a year earlier. |
| Tangible book value per share | $45.65 at September 30, versus $45.10 at June 30; a non-GAAP measure. |
| Tangible common equity ratio | 11.14% at September 30, versus 11.04% at June 30; a non-GAAP measure. |
Deposit growth comes with a higher funding bill
Tax-equivalent net interest income increased $5.2 million from the previous quarter to $258.6 million, supported by a $300.5 million increase in average earning assets. Net interest margin slipped to 3.87% from 3.88%, although it remained above the 3.80% recorded a year earlier.
Deposit costs rose five basis points to 1.82%. Total deposits increased $319.4 million to $22.91 billion, but the growth came from interest-bearing accounts: those balances rose $407.2 million while noninterest-bearing deposits fell $87.8 million. Loans increased $173.1 million, or 3.1% annualized.
That funding mix matters because additional deposits can support lending while also increasing interest expense. On the earnings call, Chief Financial Officer Nicole Stokes identified competitive deposit pricing and migration into interest-bearing accounts as potential sources of margin pressure over the next several quarters.
Mortgage weakness offsets some operating progress
Mortgage banking revenue fell 10.1% from the second quarter to $29.2 million as retail mortgage production declined 13.7% to $994.4 million. The retail mortgage open pipeline also contracted, ending September at $439.9 million versus $609.3 million at the end of June.
Total noninterest income fell $9.4 million to $64.2 million. Most of that decrease reflected a $7.2 million reduction in securities gains, rather than mortgage activity alone.
Stokes indicated that core quarterly expenses could run at roughly $165 million to $169 million in 2027, assuming mortgage activity remains consistent or declines slightly. That is management’s outlook, not a reported result.
Credit trends diverge as buyback authority is renewed
The provision for credit losses declined to $12.6 million from $17.3 million in the second quarter, and annualized net charge-offs improved to 19 basis points from 20 basis points. However, nonperforming assets rose to 0.54% of total assets from 0.47%. Excluding government-guaranteed mortgage loans, the ratio increased to 0.40% from 0.35%.
Chief Credit Officer Douglas Strange maintained near-term net charge-off guidance of 20 to 25 basis points. The allowance for credit losses stood at 1.62% of loans at September 30.
The board authorized up to $200 million of share repurchases on October 16, with authority extending through October 31, 2027. No shares were repurchased during the third quarter. The authorization does not require purchases, and Chief Executive Officer Palmer Proctor said organic growth remains the first capital priority, ahead of opportunistic buybacks, dividends and selective acquisitions.
Conclusion
The fourth quarter will test whether earning-asset growth and expense discipline can continue to offset higher funding costs and softer mortgage activity. Margin performance and nonperforming assets are the key operating measures to watch, while the renewed buyback program remains discretionary.
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