ABCB - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Ameris Bancorp Fourth Quarter Conference call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Nicole Stokes, Chief Financial Officer. Please go ahead.

Nicole Stokes

Thank you, Wyatt, and thank you to all who have joined our call today.

amerisbank.com. will that the Investor are of website we the release Relations call, our highlights financial available at the be press referencing and section During on the CEO; I'm and Officer. joined Palmer today Proctor, Doug our Chief by Strange, Credit our some Q&A. begin comments, general the with will before we and financial of our Palmer results I open discuss opening will then details up for

result results These and our you results our new begin, or developments except our our comments that actual statements. website. I'll in obligation uncertainties. forward-looking risks to information, SEC remind as factors that on vary list not otherwise, statements law. we required do to are a assume We any available forward-looking press subject Before include of release We are any the materially. some to could The may differ early filings, and of in update cause by might which as statement

in non-GAAP call, the during Also measures we the discuss certain company's performance. financial reference will to

can GAAP appendix financial these And to measures measures it Palmer. see and with over the our presentation. to of in our You I'll that, turn reconciliation

H. Proctor

with financial join as morning, you, the top-tier to Thank appreciate very our exceptional the as our well results. performance quarter pleased you call. XXXX good I fourth which time we I'm yesterday, taking Nicole, everyone. and reported year full

common ratio points XXX and our and up XX%, our well with [ profitability I'd adjusted year, now X.XX% emphasize share us base, full our well north This grew core basis achievements, balance built equity which to on quarter like per Before to we diving over the tangible both capital performance, our our XXXX. fourth of XXXX. into notably, year saw XXXX our sheet strengthened for over reserves ROA reflecting increase almost earnings ], positions strong management,

broker deposits We reducing also while X% grew deposits. by

a return our of PPNR over equity of on ROA and XX%. quarter, X.XX%, robust tangible with profitability ROA fourth over the pure above X%, common For remained an adjusted

This margin intact, resulted XX% net our X.XX% over under core quarter quarter increase. efficiency granular as strong margin with this remains continuing to Expense points XX%. and adjusted basis our fourth our improved from ratio control base Our XXX was to DDA composition. interest income deposit

continue loan-to-deposit maximizing through grew earning rate average strategically management. creating in this revenue earnings We our on concentrations our focus balance maintained ratio, positive reduced to growing while sheet share XX% leverage. effective construction margin all per lowered CRE almost our We've We and and operating annualized, environment. assets,

common execute thereby with Tier going giving our Organic forward XX.X%, footprint. high-growth optionality capital strength, remains X at generation us equity to a strategies within Southeastern

allowance we Our remain year the share, growing as growth ended tangible evidenced for losses XX.X% value the and X.XX%, year. a at book healthy per on our focused for by credit

enhancing focus strategic Nicole all detail. to And generation financial and growth operating XXXX, head our head into our in our and top-tier maintaining there we is and opportunities into capital to profitability, turn it position sustaining leverage, I'll we positive As XXXX, the dynamic revenue leveraging now stop as on discuss of of The more we support remains outlook footprint. continued bright a stakeholders. over appreciate and within our results strong

Nicole Stokes

Palmer. you, Thank

diluted those or million items in quarter, of small nature quarter. million in net income a $XX.X fourth was $XX.X $X.XX or did excluding share. diluted per net per reported the adjusted For items, we incur onetime our income $X.XX We few the share. But

year-over-year an diluted XX% we increase share. net net On For That's of adjusted or $XXX.X the $X.XX or income a diluted million full EPS. $X.XX adjusted year share. XXXX, million income per was in reported basis, per $XXX.X about

X.XX% our adjusted our for PPNR and the XXXX of both which strong ], our X.XX%, was ROTCE ROA adjusted was And improved at from XX.XX% year full year. full levels. Our year ROA [ remained

at continue $X.XX, build a XX.X% alone quarterly increase in of year. is which the ending we increased quarter. value $XX.XX a $XX.XX share, tangible and to book end also $X.XX XX% to our share from dividend increase $X.XX fourth from share $X.XX per or was quarter XXXX We a the capital with of last The this

the Our XX.XX% We equity to last and at ratio tangible last at quarter XX.XX% the the X.XX% year. increased the end common did to of compared quarter of end of at end XXXX, not and repurchase authorization in October stock 'XX. about of million in buyback full year repurchase did quarter, but $X we remains place our this any through million the $XXX of

net quarter. interest $X.X income this million Our increased

those seasonally the came the X.XX% margin. That decline first had X.XX% year. dynamic last more our And expanded benefited with from yields, partially the rates, the XX in [ when we also cost deposit Fed public that will funds points of recent half lowering used margin costs to loan decline envelope public fund higher funding. in expansion quarter. reversed an great be deposits This the our which basis from wholesale we've Our success to reduce cut of ] than

to continue sensitivity. liability to We asset be on neutral close

Even we XX of about side, about to On sub was was our to kept last it it basis X points in would at X the This strong about XXXX redemption million us during higher. quarter, redemption, redeemed save reset risk-based of have points basis basis because versus was the than this higher had total $XXX.X we going the been debt. if capital margin with XXX capital year. which is XX.X%, rate points

provision portfolio quarter, our fourth million recorded XXX% for and increasing X.XX% $XX.X the ratio credit During coverage losses, to a of loans to of we NPLs. improving

for low of percentage charge-offs XX basis a stable basis at points, our quarter And as this we at year, XX points XX points. XX compared points last the to assets at quarter. nonperforming assets again were basis and remain were total Our basis

in When leverage where division, on controlling on to it, increased our quarter. sale loans. SBA adjusted mortgage and mortgage the for the gains Adjusted job giving while quarter, revenue our at quarter. X.XX% ratio our in noninterest operating did quarter, positive from and our X.X%, gain expenses our you income million last XX.XX% sale X.X% volumes sale the our shrank rebounded on in adjusted $X a mostly Within increased efficiency the this both expenses of us total improved gain to grew look annualized, quarter. We X.XX% great

in a and adjusted expense, about lower $XXX,XXX mostly was advertising There it spend. and decrease marketing processing, noninterest came from data

our year, was the our For XX% range. adjusted efficiency XX.XX%, within well ratio XX% targeted to

the with last with a billion our up On side, $XX.X billion average to compared assets the of from billion earning of sheet $XX.X $XX.X ended year. balance billion, quarter were the $XX.X at end up assets we total year ago. And

the in premium and seasonality as finance paydowns book. our mortgage accelerated during in average slightly CRE well declined reflecting the balances warehouse businesses Loan as quarter, our

loans past However, balance was $X.X billion, the quarters. and ones held of the highest the loans roughly in as in down loan for stable many quarter sale slightly loans. the the offset seen production in quarter Total total we've of higher X portfolio these future average the was during fund fourth years, will

million We of that X% broker grew out million by by ] about million during deposits core growth deposits run to quarter. about cyclical $XXX strategically our [ back $XXX XXXX. and reduced included That our over during municipal deposits $XXX will the early or

broker increased million. deposits reduced XXXX, the deposits or we by X%, For $X about almost $XXX while year billion

less Our of CDs healthy deposits, than still total X% represent a deposits XX% total of and noninterest-bearing deposits. represent our brokered

the wrap going book group. governor deposit in will XXXX. how be to to with loan from a close anticipate on growth XXXX well mid-single deposit the the by and loan we and call just to to questions digits and growth continue Wyatt the growth. focused continue want successful on reiterating We I to and positioned that, expect And for how are I'm over we back are any the

Operator

question And come first with will KBW. Catherine our Mealor from

Catherine Mealor

great see deposit the this cost quarter, to was expansion really too want I was the of to The with impressive. start margin. production

your wanted rate just the for Nicole, to neutral. And I you're So year? see what margin this outlook know

happens And from like with so on what higher margin feels way a level. it best guess, feels you're to I but it, a stable coming rates, like of model the kind depending

here to 'XX? the you're the just any if over of how opportunities of course kind about So additional increase curious margin actually thinking from there's

Nicole Stokes

Sure.

guided, So were kind anything out above with. saw you're then pleased the X we we I of points last guided call and At of to points I right. margin, quarter, come exactly or were with we X.XX% kind X of X.XX%, of expansion. maybe basis a listen basis we quarter the And And of XX end last at some expansion.

some that points really But XX on what I what are related expansion that to going was focus things caused emphasize want back. to And is to of expansion. that that come basis

expansion So public points funds and we paying from basis off of was funding the in and coming from that X that wholesale. those mix deposit had margin the the coming

going is margin. into and out roll of funds broker, public basis out those we come as that some X points back go the back So to

after I basis our also And call that. Fed we've our repricing lags, very to what then X where we going quickly cut loans repriced the to catch are up had and of points deposits

knew loans the up. As pause, soon as our were going to that Fed catch we

side to the funding calling So X going from I the basis I'm feel what points are repricing and the basis from points like X those, come lags, back.

is quarter. margin So had range, guided X.XX% what that down our I to bring would last which that back

what our I and of consistent I'm X.XX% going to. margin point So I'm think in XX take can. X.XX%, realistically, a I that But with bump whenever kind coming to basis guiding guidance in do the still is previous

XX point we're basis I about accretive. everything you and points. that going on our will forward look at -- when say, is deposit production, What margin at again, expansion at or was So this elevated X.XX% you when our notice loan by on though, production, putting is look

XX% mix continue on that front. our depending been deposits, been been bankers successful the So at has noninterest-bearing can very, very, we've upon keeping have right Also we deposit helpful. if grow there, very to very

able tough, me you deposits we and did XX%, we would was ask it, did we that up be our it it. did would stepped have last -- it like -- and if maintain been grow to bankers if and very year we But would

has that well. as So helped

going headwinds So of into those tailwinds next the margin year. are kind and

Catherine Mealor

helpful. Okay. That's

margin just we if a do in model at So X.XX%? expansion, start

Nicole Stokes

Yes. Exactly.

Catherine Mealor

great. That's

very SBA to great. were Okay. And which fees, then levels over quarter, maybe was this elevated your

curious kind for you're thinking -- about Just appropriate of run into rate rate run what going year next a also? that

Nicole Stokes

Yes.

fee to looking income, of we're model excluding mortgage. So kind

growth a loan as out at growth they're bit deposit to rate mortgage of well. are kind going follow our and But little take different fees because So rates.

to of in X%, increase. to fee X% X% X% kind that income So

Catherine Mealor

this out to quarter, And of as level first anything just probably quarter to we quarter? said of elevated just level that that of was to this aware pushed That of? say be would this rate run this to the kind -- you pull Right. into want of fees, kind there we kind were go with with that

Nicole Stokes

if we of quarter, you had fourth you came appreciate demand GAAP starting had think we MSR the from quarter, -- our quarter, just because No, built third good did really noise elevated noninterest question so for the fourth up, the sale spot. have of of the some rate take little we There quarter, gain. that the I gain income, those MSR the and kind in the it there had a SBA I of bit second of run really a maybe flat then looks that is but we is at group. out a did MSR bump in sales, was it the remember, have as the but in sale -- when And look kind the

Operator

come James. the question with muted? be Feaster And David David, from next Raymond line your will may

David Feaster

seeing Just you to increase the on demand? talent do you gaining activity? hear, shift increase. origination Is team start production about added side. that, your stride? have what some and are to just wanted I what right? think great know drove kind in as mean, think a do strong driving How that well. market such you It's guys you it share, hit of I is just you curious, a in Or I

H. Proctor

I reflection just There's a lot of consumer out a think it's more there. optimism sentiment.

minds. clarity think in I folks' more some

optimistic as I think especially particular, but customers, are hopefully our post think, -- of lot in getting election, a they folks, commercial feeling look of bit out. our clarity I for provide little more a

and -- fourth production. reflected, So in quarter that's obviously, that

about rate feel feel run good that I out I in our as growth So good we and markets. look

we that. as always are So where I've we're to optimism see high-growth that in starting markets, and reflect said, we're pretty these be to blessed

on front. a But we the done job hiring good have

have that So we be what already of top incremental generated. would on volume

outlook. by feel look but So really more we the with exception tailwind the just about all of the verticals what potentially depending driven which rates the -- so. for be pretty optimistic across when out a us, could XX-year, I happens the environment rate with mortgage, on on We

David Feaster

then, It about And elevated improving. pace Obviously, we out like helpful. I How optimism mean XXXX? production. That's do payoffs We got had how we think you mean, as sounds to growth? Okay. growth quarter. the incremental is that do I think point, of this about to look you some

H. Proctor

as Well, pretty we're situation, you in our know. conservative,

And controlled growth. we've do until of this so accelerate or to But is get think we're focused we'll environment, kind new figure more thing it we moving maintain we're that I -- out on where not forward nice to what that the positioned in got. goes.

So -- ability just and to about the the growth. is is sake sheet having our nice too, driving for within then growth diversification the versus of optimize thing, margin balance

yield on was we're last that's risk So X when duration you the an what where curve able in the or asset and profiles, mix especially look inverted. we at years, -- focused really environment

the we on to on we different pretty -- growth. that EPS about our bullish So given I levers feel our look as ability out, pull, especially think can we deliver

David Feaster

ability And I pretty just to given great. of control the accretive. side it, visibility Nicole, the into expenses accelerating margin I growth, the do curious, we expense to opportunity positive think think mean, to some potential That's drive as that good revenue bring your to just some done. in is you there everything on and talked we invest? just you how mean, growth expense stability potentially expansion next strength in hires the the have about growth you XXXX? the pretty operating year? to I'm the about other Is in I'm forward then We've loan you got new and because about. right, you leverage right, expenses guys how that continue curious, alluded got

Nicole Stokes

a great No, it's point.

when kind of look now. they consensus think reasonable for right I look you year, So I expenses, very at think the

to X% I X.X% about a think they're in increase.

think in bit the a they're light little I first quarter.

all in always cyclical we matches payroll and have when that some that. first FICA think XXX(k) with I and resetting comes quarter the everybody

year, So I I a when I consensus. consensus, the light. at bit to growth quarter, X% is X.X% spot might for But be think look the first expenses exactly for little in on think

out and quarter, just and little But the first think the bit quarter need of a into third the shift is of quarter. right. I we I first fourth year-to-date kind to think the

H. Proctor

But folks of consequential. culled this different commercial bankers, And hired XX I a from make lack lot of of folks is one or that others, XX bringing may things that on for on also that we David, side. I deficiencies is And don't the compensate know. bankers. And from bankers, others. We've rate been your run we year. do expense instance, mistake think all do be your And production to add always pretty year, past we to this production additional you for the just

And and so XX, XX. eliminated we brought in we

more to And production keep standpoint, importantly. of And overhead have a allows when under an us from control it standpoint. kind to you the that from approach things, expenses

Operator

Gunther question Stephens. will with next Our come from Russell

Russell Elliott Gunther

sale a for you Can thinking guys production banking a about what the mortgage on perspective? both XXXX, spend minute and gain outlook on margin from are we

Nicole Stokes

Yes.

guiding that we're to -- we're X.XX%. we X.XX% from X.XX% So and We're of went based what seeing we're with to what in seeing on X.XX% demand just now. right kind

X.XX%, to that's that quarter, at very course, on today, second kind today. hovering about somewhere in what we're is of first, so X.XX% dependent. based looking it Of a where But of seeing market kind

Russell Elliott Gunther

deployment And gears excess Perfect. for Obviously, Okay. me, then X the switching and to capital reserves. here last just front. carry capital

the on have mentioned You what buyback. left you

the to talked catalyst you provide around increased might I think last that. accelerate election quarter, about clarity a

balancing buyback and guys lever acquisitions? growth organic like So trajectory what very sounds the a how you potentially with strong about thinking are

H. Proctor

at in organic you, we how just -- a But the for in then organic we like opportunities very just foremost, a would strategic M&A more strategic first take And up, be them. growth would different. I backseat got the sake take come and look the It's right M&A probably be to the and very assets. as Well, growth. would you And funding nature. obviously, tell accumulating and we look buybacks of back -- know, at come now don't are, as we'll that. to

to come buybacks, you, in will organic And if very So trying there, growth some would first. be but were in prioritize, that it selective then you Then to have would M&A tell selective. maybe order. I

Russell Elliott Gunther

I a appreciate that, Palmer. And just maybe follow-up.

what us and You guys strategic. the M&A of a the perspective? have characteristics take something look that been very maybe on would It from you a just clear size of front. give like and would to geographic Ameris, could And special sense

H. Proctor

Yes.

there has Our not approach changed.

love, that the could obviously, a that as core nature. core you that's something in bank it something initiative could support the to additional that deposit was be fit. that We funding. furthering could would noncore And bank side strong with a in So be be be have we're cultural It on something be business more on provide. in on Southeastern line side, for then core interest It to less base. bank terms could of it provides know, a commercial To of a us. there, C&I, whether

So that those of us. are kind the to need for check would boxes

Operator

Scott. will next come The with Marinac Janney Christopher Montgomery question from

Christopher Marinac

reserve and time? of that I criticized is I'm very build there over I up a couple and wanted some low for the of classified row any just is just criticized to had see might about of growth? quarters follow the a in we've curious you talk anticipation loan reserve if loans. numbers Or the backing

Douglas Strange

our is CECL Chris, reserve. model drives Doug. this The

your in our out than quarter, our on of produces reserve that We influence you then indices and XX. need. And bake that model CECL so that lay it's our economic that Slide so forecast more for anything. really just function obviously, a And

Christopher Marinac

it. Got

for the I sure, than of grow external losses end performing the fine. model into you'll continue that mean, is have the perfectly you're which day, as you at to on growth? better So

Douglas Strange

That's because loans. of true CECL's life

of downs. So you a a through loan, life experience and ups can

So correct. -- but you're

Christopher Marinac

another Palmer, that you've then from of acquire what's done aren't people? perhaps Do last M&A simply than the years? that Okay. angle, you asking more in And what businesses any of see banks few or opportunity to teams the

H. Proctor

now, Well, there unique to But is chatter doesn't more there. I some to think bank out to bank banks the opposed an as that opportunities mean industry, aren't as nonbank. obviously of right

going a funding the think are you nonbanks core challenge fund to funding. they a any if perspective, of I of is it how don't lot the have from

So our watch hold and that and to on diminish, funding traditional the given desire take our importance probably that bank given backseat M&A. core would to M&A, bank of not that to a

Christopher Marinac

Thanks Great. of for taking questions all this our morning.

H. Proctor

You bet.

Operator

question And next Manuel will come Davidson. D.A. from Navas with our

Manuel Navas

could types the that's On yields bit that of to the bringing go a NIM, you're you're more on that's production accretive on what going you on, NIM accretive, little into bringing detail loan forward?

Nicole Stokes

Sure.

X%, So finance is loan in bit coming of company up. of kind our quarter, at that's a and is X.X%-ish. a for little from at X%. was X%. around is right the Mortgage that, kind at on perspective production spot right split lower The total bank Premium

about rate book including was our compared new total at production. a that in X.XX%. blended for book about of And blended the That's the then look interest-bearing, X.XX% production of that's kind for X%. at to all-in of quarter, So company deposit the you when came

So higher little it's on book. than coming a average our bit

compared right a of was X%. on total about X.XX%, our that's interest-bearing And -- deposits, and book about to then production our the just

that higher putting XX of accretable So you our you than our see margin. to average book. that accretion that X%, -- on points total coming then basis running can when is we're production XX on But to everything coming loan where to about compare is on production

is spread The wire versus a pace to can at growing. about question continue in X.XX% that the grow we at spread. coming coming It's whether X.XX% real in noninterest-bearing a the spread. we're It's a

Our bankers a phenomenal done have just there. job

Manuel Navas

that. appreciate I

on the kind last about that costs -- a into just deposit there's the done the Is more side lag rate Could of on the cutting there You reprice loan more? implying still the on side a with might deposit loan side. cut? deposit yields bit talked where good are bit a from the detail You're on amount go that than December you you cut.

Nicole Stokes

Yes. Sure.

go teams, side, So deposit Fed of, day we on our they've after our done operations the are ready treasury great teams, our a the to job cuts.

of aggressive. been we've get that of ahead be to So able and kind

X Our on little have a betas been been has bit cuts. down with the better first these

of driven And market that some well. as is

the ahead the cutting, as as stopped then And were soon we've repricing curve that as were eventually lag going we of So there. Fed sorry, that to loans start those the the The reprice. we knew have going to down. to were as Fed loans going I'm that gotten cut of -- soon

got on to So of that $X kind we that's great. year. the that we've about been are mean that -- the average news next know been then and weighted billion has which -- The deposits going been the in I that that's aggressive reprice where good And of but loans that. we've is on

loan, So looks production the been it variable is of though rate a finance behaving like it's like even -- a fixed even rate. premium though some that's like pricing, there's it's that already

rate average current X.X% than is of our a the little is less production So and X%. those

that you what XX with cut. think in down seeing when we're X.XX% think on X%, repricing, down where about line that, with points with would be all we the spot came that kind Fed should that recent So from of you're to if what basis be I

think have So we any I outlier there. don't

And I you deposits We think side. portfolio. our also some on of it's some then being on the able bond fourth faster to we more progression then in some the coming quarter, than a have in in June. just payoffs have -- loan some and be or payoffs natural coming the the we maturities downside had of

portfolio higher our grow at rates. to bond So we've been able these

been that's helpful as well. so And

Manuel Navas

In replaced the seasonality. flows way Is quarter think to muni out first that in expectation somewhat right it? Is on borrowings? with back so that's just I the about that. that flows, the muni the come be the to brokered appreciate by might going and

Nicole Stokes

right. That's

say that of get the kind our always we of those We we which customers at always where we the fund. so bulges balance in balance sheet. public have year, appreciate the And end sheet our

back And That's about so first quarter. out typically the in that flows $XXX million.

purposely flows that short. But funding so back of now out, of funding all is keep third quarter and all funding, when second our kind So third -- right our at looking short. we we of quarter, very and

CDs very short. are brokered our of All

reprice. right got about million will $XXX they of X.X%. at brokered We've So

And so they will quarter. reprice the all down in first

Operator

And our next question Russell with will Gunther, Stephens. again, come from

Russell Elliott Gunther

wanted coming color just Manuel's deposit and sort a piggyback I on of that sense were the the production for quarter. Nicole, to on spot give tie are during together costs question, us appreciate for where I on shaking Could where and you deposit the kind of costs us out?

Nicole Stokes

because And a that, I'm a the skewed bit some of is public of why that do Yes. gave little that by some little I fund. leery to bit quarter

So for are basically costs? December you asking right are -- -- kind of spot

Russell Elliott Gunther

be It possible. helpful possible. if be would helpful, Would if

Nicole Stokes

Yes.

some clear So they our that right skewed funds. I'm amount I spot -- that's around very noninterest-bearing December, And came of want for some with in -- again, make were our we also growth of cost that a to X%. I December. tremendous that's don't sure in with public But skewed. had

we which you I'd where were average. basis XX than quarterly and able less good, our really rather quarter that down, points about biggest saw in to for about the we to average, our about that like third if of XX is drop kind from the so where X.XX% quarter, CD December points production at about change really, in But to So December growth CDs saw a trend. of we basis a X.XX% was we that kind fourth look down quarter

Operator

Palmer closing session. I to This the any like for would concludes conference our over question-and-answer Proctor turn remarks. to back

H. Proctor

performance build growth Ameris you incredible all we're in how a interest our for call, and your set today's our but opportunities. capital appreciate and optimism, want your really me Wyatt, for thank gives look Bank. another I we your asset lot which for at premier our I stable financial and all our We participation to is thank in quality, up XXXX, you, and our time of also Thank teammates revenue year. obviously of

Operator

The today's conference has Thank now attending for concluded. you presentation.

disconnect. You may now

Ameris Bancorp (ABCB) 31 Jan 252024 Q4 Earnings call transcript