Ameris Bancorp (ABCB) AI Stock Analysis

296 Followers

Top Page

Ameris Bancorp

(NYSE:ABCB)

69Neutral

Ameris Bancorp's stock score is driven by its solid financial foundation and a strong earnings outlook, supported by efficient cost management and strategic growth plans. However, technical indicators suggest a bearish trend, which, along with challenges in asset utilization and credit provisions, slightly offsets the positive valuation and earnings sentiment.

Ameris Bancorp (ABCB) vs. S&P 500 (SPY)

Market Cap

$3.79B

Dividend Yield1.27%

Average Volume (3M)523.16K

Price to Earnings (P/E)10.6

Beta (1Y)1.41

Revenue Growth8.49%

EPS Growth33.58%

CountryUS

Employees2,691

SectorFinancial

Sector Strength79

IndustryBanks - Regional

Share Statistics

EPS (TTM)5.19

Shares Outstanding69,068,610

10 Day Avg. Volume515,111

30 Day Avg. Volume523,163

Financial Highlights & Ratios

PEG Ratio0.31

Price to Book (P/B)N/A

Price to Sales (P/S)3.62

Price to Cash Flow (P/CF)7.70

P/FCF Ratio4.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$75.00

Price Target Upside46.71% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Ameris Bancorp Business Overview & Revenue Model

Company DescriptionAmeris Bancorp (ABCB) is a financial holding company headquartered in Atlanta, Georgia. It operates primarily through its wholly-owned subsidiary, Ameris Bank, which provides a comprehensive range of banking products and financial services. The company serves customers across the Southeastern United States, offering services such as commercial banking, retail banking, mortgage banking, and wealth management.

How the Company Makes MoneyAmeris Bancorp makes money primarily through interest income and non-interest income. Interest income is generated from loans and leases, which include commercial, residential, and consumer lending. The bank earns interest from the difference between the interest it charges on loans and the interest it pays on deposits (net interest margin). Non-interest income is derived from service charges on deposit accounts, wealth management fees, mortgage banking revenue, and other financial services. Additionally, Ameris Bancorp benefits from strategic acquisitions and partnerships that expand its market reach and enhance its service offerings, contributing to its overall profitability.

Ameris Bancorp Financial Statement Overview

Summary

Ameris Bancorp exhibits a solid financial foundation with strong equity and manageable debt levels, contributing to financial stability. Despite challenges in profitability and revenue growth, the company maintains positive free cash flows, indicating ongoing liquidity. However, attention to asset utilization and operational efficiency could further enhance its financial health.

Income Statement

Positive

Ameris Bancorp has shown a mixed performance in terms of revenue growth. The 2023 to 2024 revenue saw a decline, though net profit margins improved, indicating better cost management or efficiency. The company has maintained a consistent gross profit margin, reflecting stable revenue streams within the banking sector. However, the absence of EBIT and EBITDA margins in 2024 suggests a need for better operational profitability tracking.

Balance Sheet

Positive

The balance sheet indicates strong equity growth and a significantly low debt-to-equity ratio, which suggests financial stability and a conservative leverage strategy. The equity ratio remains robust, signaling a solid capitalization structure. However, the decreasing trend in total assets from 2023 to 2024 may require attention to asset utilization.

Cash Flow

Positive

Cash flow analysis reveals a substantial drop in operating cash flow from 2023 to 2024, impacting free cash flow. The free cash flow to net income ratio has weakened, which could pose challenges for future investment or debt repayment. Despite this, the company maintains a positive free cash flow, indicating ongoing liquidity.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.10B	1.45B	1.09B	1.02B	1.08B
	Gross Profit
1.10B	1.52B	1.09B	1.02B	1.08B
	EBIT
0.00	2.79M	545.96M	496.11M	340.24M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
358.69M	269.11M	346.54M	376.91M	261.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.62B	1.17B	1.78B	857.43M	1.19B
	Total Assets
26.26B	25.20B	25.05B	23.86B	20.44B
	Total Debt
424.10M	639.90M	2.00B	866.21M	549.50M
	Net Debt
-796.28M	-527.40M	1.72B	601.40M	345.90M
	Total Liabilities
22.51B	21.89B	21.86B	866.21M	549.50M
	Stockholders Equity
26.04B	3.43B	3.20B	2.97B	2.65B
Cash Flow		Free Cash Flow
133.94M	551.43M	1.05B	-16.31M	780.28M
	Operating Cash Flow
133.94M	568.96M	1.06B	9.14M	798.40M
	Investing Cash Flow
-24.00K	-338.19M	-4.87B	-420.98M	-1.20B
	Financing Cash Flow
-157.29M	-181.59M	865.53M	2.36B	1.90B

Ameris Bancorp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price51.12

Price Trends

50DMA

60.44

Negative

100DMA

62.93

Negative

200DMA

61.14

Negative

Market Momentum

MACD

-1.29

Negative

RSI

36.45

Neutral

STOCH

42.29

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCB, the sentiment is Negative. The current price of 51.12 is below the 20-day moving average (MA) of 55.98, below the 50-day MA of 60.44, and below the 200-day MA of 61.14, indicating a bearish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABCB.

Ameris Bancorp Risk Analysis

Ameris Bancorp disclosed 37 risk factors in its most recent earnings report. Ameris Bancorp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Ameris Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBOC	77 Outperform	$3.75B	9.18	15.60%	2.25%	7.33%	-0.55%
BANF	70 Outperform	$3.60B	16.83	14.16%	1.67%	12.93%	1.40%
ABCB	69 Neutral	$3.79B	10.57	9.99%	1.27%	8.49%	33.58%
AX	69 Neutral	$3.50B	7.68	18.81%	―	26.87%	10.56%
AUB	67 Neutral	$3.48B	11.75	7.34%	5.01%	29.04%	-9.28%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
TFSL	63 Neutral	$3.42B	42.52	4.23%	9.29%	14.25%	10.46%

* Financial Sector Average

Performance Comparison

ABCB

Ameris Bancorp

51.41

6.80

15.24%

BANF

BancFirst

102.76

21.41

26.32%

Axos Financial

57.24

7.61

15.33%

IBOC

International Bancshares

56.46

5.13

9.99%

TFSL

TFS Financial

11.75

0.77

7.01%

AUB

Atlantic Union Bankshares

23.85

-7.09

-22.92%

Ameris Bancorp Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -21.76% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance for Ameris Bancorp in Q4 and throughout 2024, characterized by significant growth in net income, deposits, and efficiency improvements. However, challenges such as provision for credit losses and potential reversal of some margin expansion were noted. The company remains optimistic about its strategic positioning and growth prospects for 2025.

Highlights

Strong Financial Performance in Q4 and Full Year 2024

Reported a net income of $94.4 million or $1.37 per diluted share for Q4, and $358.7 million or $5.19 per diluted share for the full year 2024. Adjusted net income was $95.1 million for Q4 and $346.6 million for the full year, representing a 26% increase in year-over-year adjusted EPS.

Growth in Deposits and Reduction in Broker Deposits

Deposits grew by 5% for the year, with a reduction in broker deposits by $340 million. Core deposits grew by $675 million, or over 3%, in Q4.

Improvement in Efficiency Ratio and Operating Leverage

Adjusted efficiency ratio improved over 240 basis points in Q4 to under 52%. Total revenue increased 9.8% annualized, while expenses shrank by 1.9%, creating positive operating leverage.

Margin Expansion and Asset Growth

Net interest income increased by $7.7 million in Q4 with margin expanding by 13 basis points to 3.64%. Total assets grew to $26.3 billion from $25.2 billion last year.

Increase in Tangible Book Value and Equity Ratio

Tangible book value per share increased by 14.7% for the year. Tangible common equity ratio increased to 10.59% from 9.64% last year.

Lowlights

Provision for Credit Losses and Nonperforming Assets

Recorded a $12.8 million provision for credit losses in Q4, with total nonperforming assets as a percentage of assets at 47 basis points.

Potential Reversal of Margin Expansion

7 basis points of the Q4 margin expansion was due to temporary deposit mix changes, which are expected to reverse as public funds decline in early 2025.

Decline in Loan Balances Due to Seasonality

Loan balances declined slightly in Q4 due to seasonality in the mortgage warehouse and premium finance businesses.

Company Guidance

During Ameris Bancorp's fourth quarter conference call, the company provided strong financial guidance, highlighting their robust performance and strategic positioning for 2025. Key metrics included an adjusted return on assets (ROA) of 1.43% for the fourth quarter, with a pure pre-provision net revenue (PPNR) ROA exceeding 2%. The return on tangible common equity was over 14%, and the quarter's net interest margin stood at 3.64%, showing an increase due to a favorable deposit mix and cost management. Ameris Bancorp reported a full-year 2024 net income of $358.7 million or $5.19 per diluted share, with an adjusted net income of $346.6 million or $5.02 per diluted share, marking a 26% year-over-year increase in adjusted earnings per share. The company also maintained a strong capital position with a tangible common equity ratio of 10.59% and a common equity Tier 1 ratio of 12.6%. Ameris Bancorp emphasized their strategic goals of maintaining top-tier profitability, enhancing revenue, and leveraging growth within their Southeastern footprint, setting a positive outlook for the upcoming year.

Ameris Bancorp Corporate Events

DividendsFinancial Disclosures

Ameris Bancorp Reports Strong 2024 Financial Performance

Positive

Jan 30, 2025

Ameris Bancorp announced its financial results for the fourth quarter and full year 2024, showing strong performance with a net income of $94.4 million for Q4 and $358.7 million for the year, marking significant growth compared to 2023. The company achieved a revenue growth of 9.8% annualized, improved net interest margin, and increased dividends, reflecting a robust balance sheet and focus on efficiency, positioning it well for future success.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.