Ameris Bancorp (ABCB) Financials

Ameris Bancorp’s (NASDAQ: ABCB) recent results show a bank with strong balance-sheet growth and improving core interest revenue, but sharply weaker earnings in the second quarter of 2026. The main issue was a substantial increase in non-interest expense and a higher provision for credit losses.

• Net interest income continues to trend higher. Q2 2026 net interest income reached $252.5 million, up 3.3% from Q1 2026 and 8.9% from Q2 2025. Compared with Q2 2023, net interest income has increased approximately 20.5%.
• Loan growth remains solid. Gross loans and leases increased to $22.2 billion at June 30, 2026, up 5.4% from $21.0 billion a year earlier and approximately 8.6% from Q2 2024. Net loans grew at a similar pace after allowances.
• Deposits expanded meaningfully year over year. Total deposits reached approximately $22.6 billion, a 7.6% increase from Q2 2025. Non-interest-bearing deposits also rose modestly, which can help reduce funding costs.
• Total assets and shareholders’ equity continued to grow. Assets rose 6.8% year over year to $28.5 billion, while common equity increased 4.4% to $4.1 billion. Retained earnings have risen consistently over the period provided.
• Operating cash flow remained positive. Cash flow from operating activities was $79.4 million in Q2 2026, compared with $61.4 million in Q2 2025. The quarter also included $13.4 million of dividends and $19.7 million of share repurchases, returning capital to shareholders.
• Non-interest revenue remains relatively stable but mixed. Q2 2026 non-interest income of $73.5 million was above Q2 2025’s $68.9 million, helped by $7.4 million of investment gains. However, other service charges declined from $55.4 million to $52.1 million, and investment gains may be volatile.
• Cash and liquidity balances shifted toward investment securities and funding markets. Cash and due from banks was broadly stable at $237.4 million, while interest-bearing deposits at other banks declined to $959.7 million. Trading account securities increased to $2.7 billion, suggesting a larger allocation to marketable assets.
• Net income fell sharply in Q2 2026. Net income attributable to common shareholders declined to $51.4 million from $109.8 million in Q2 2025. Basic and diluted EPS fell to $0.77 from $1.60, reversing the steady earnings growth recorded from 2023 through 2025.
• Non-interest expense surged. Total non-interest expense increased to $242.7 million from $155.3 million in Q2 2025. Other operating expenses alone rose to $116.5 million from $31.4 million, while salaries and employee benefits remained near $91.5 million. Investors should determine whether this increase reflects a one-time item or a new recurring cost structure.
• Credit costs and leverage require monitoring. The provision for credit losses rose to $17.3 million from $2.8 million in Q2 2025, while the allowance for loan losses increased to $359.5 million. Long-term debt also climbed to $1.4 billion from $510.0 million a year earlier, and Q2 investing outflows of $491.5 million contributed to a $132.2 million decline in cash and equivalents.

Over the longer period, Ameris has expanded its core banking franchise. Q2 net interest income rose from $209.5 million in 2023 to $252.5 million in 2026, while total assets increased from $25.8 billion in Q2 2023 to $28.5 billion. Loan balances, deposits and retained earnings also moved higher.

However, the latest quarter represents a significant break from that positive trend. Revenue increased 8.4% year over year to $326.0 million, but the benefit was more than offset by the jump in operating costs and higher credit-loss provisions. The key question for investors is whether Q2’s expense increase was temporary. If expenses normalize, Ameris’ growing loan and deposit base could support a recovery in earnings; if the increase is recurring, profitability and valuation could remain under pressure.