Ameris Bancorp Reports Strong Q2 2026 Earnings with Record Adjusted Net Income and Expansion into Nashville Market

Ameris Bancorp Announces Q2 2026 Results: Litigation Hit Masks Strong Core Performance

ATLANTA, GA, July 23, 2026 – Ameris Bancorp (NYSE: ABCB) has released its financial results for the second quarter ended June 30, 2026, revealing robust underlying operating performance but also a significant non-recurring litigation expense that materially impacted reported net income. Below is a detailed breakdown of the report, including critical data points and items that investors should carefully consider.

Key Financial Highlights

Net Income: \$51.4 million, or \$0.77 per diluted share (down from \$109.8 million, or \$1.60 per share, in Q2 2025).
Adjusted Net Income (Excluding litigation and securities gain): \$107.3 million, or \$1.60 per diluted share (virtually flat versus \$109.4 million, or \$1.59 per share, in Q2 2025).
Return on Average Assets (ROA): 0.73% (adjusted ROA: 1.53%).
Return on Average Tangible Common Equity (ROTCE): 6.75% (adjusted ROTCE: 14.08%).
Net Interest Margin (TE): Stable at 3.88% (up 11 bps from Q2 2025).
Annualized Revenue Growth: 14.9%.
Efficiency Ratio: 74.45% (adjusted: 50.42%).
Average Earning Asset Growth: \$544.6 million (8.5% annualized).
Loan Growth: \$349.9 million (6.4% annualized).
Noninterest-Bearing Deposit Mix: Improved to 30.0% of total deposits.
Net Charge-Off Rate: Declined to 0.20% of average loans.
Tangible Book Value per Share: Grew by \$0.31 per share (2.8% annualized) to \$45.10.
Share Repurchases: \$19.0 million (226,600 shares) during the quarter.

Litigation Accrual: A Critical One-Time Event

A major headline from this quarter is the \$82.5 million litigation expense accrual related to a jury verdict in a California employment case. This non-recurring charge severely reduced reported net income, overshadowing what was otherwise a quarter of strong operational results. On an adjusted basis, which excludes this litigation item plus a \$7.4 million gain on securities, the company’s earnings remain robust and in line with prior years. This litigation accrual is a key price-sensitive item for shareholders and may be a focus for market reaction.

Operational Performance and Strategic Developments

Resilient Core Operations: CEO Palmer Proctor emphasized Ameris’s strong underlying performance, highlighting a stable net interest margin, solid asset growth, and a high-quality funding mix (30% noninterest-bearing deposits, tangible common equity over 11%).
Nashville Market Expansion: The company announced its entry into the Nashville, TN market, marking the latest step in expanding its Southeast U.S. franchise and aiming for profitable growth in new geographies.

Net Interest Income and Margin

Net Interest Income (TE): \$253.4 million, up \$8.1 million (3.3%) from Q1 2026 and up \$20.7 million (8.9%) from Q2 2025.
Average Earning Assets: Grew by \$544.6 million, aided by increases in both portfolio loans and investment securities.
Yield on Earning Assets: Rose to 5.61% (from 5.57% in Q1 2026).
Cost of Funds: Rose to 1.91% (from 1.88% in Q1 2026).

Noninterest Income and Expense

Noninterest Income: \$73.5 million, up \$3.6 million or 5.2% from Q1 2026, driven by securities gains.
Mortgage Banking Revenues: Down \$4.5 million (12.1%) to \$32.5 million; total retail mortgage production increased to \$1.15 billion.
Noninterest Expense: \$242.7 million, up \$85.6 million (54.5%) from Q1 2026, almost entirely due to the aforementioned litigation accrual. Adjusted noninterest expense rose just 2% from Q1, reflecting good expense control outside this event.
Adjusted Efficiency Ratio: 50.42% (up slightly from 49.97% in Q1 2026).

Balance Sheet Trends

Total Assets: \$28.49 billion (up from \$28.11 billion at March 31, 2026).
Loans, Net of Unearned Income: \$22.18 billion (up \$349.9 million in Q2 2026).
Total Deposits: \$22.59 billion (compared to \$22.38 billion at December 31, 2025).
Noninterest-Bearing Deposits: \$6.78 billion, now 30.0% of total deposits (up from 28.7% at year-end 2025).
Tangible Book Value per Share: \$45.10 (up 4.2% annualized in the first half of 2026).
Shareholder’s Equity: \$4.09 billion (up \$14.5 million from December 31, 2025).
Tangible Common Equity to Tangible Assets: 11.04% (down from 11.37% at year-end, reflecting growth in assets and share repurchases).

Credit Quality

Provision for Credit Losses: \$17.3 million (up slightly from \$16.6 million in Q1 2026).
Allowance for Credit Losses on Loans: 1.62% (unchanged from year-end).
Nonperforming Assets: 0.47% of total assets; excluding GNMA-guaranteed mortgages (minimal loss exposure), nonperforming assets are 0.35% of assets.
Net Charge-Off Ratio: 0.20% for the quarter (down from 0.21% in Q1 2026).

Capital Actions

Share Repurchases: \$19.0 million spent to buy back 226,600 shares in Q2 2026.
Dividend: \$0.20 per share for the quarter.

Shareholder and Price-Sensitive Takeaways

The \$82.5 million litigation accrual is a material, non-recurring event that severely reduced net income and EPS for the quarter. Investors should focus on adjusted earnings to judge ongoing profitability.
Core banking operations, credit quality, and capital ratios remain strong, with tangible book value per share growing and efficiency ratios improving on an adjusted basis.
Continued execution of geographic expansion (Nashville market) and asset growth is positive for long-term value creation.
Share repurchases and stable dividend policy signal confidence in the company’s financial strength.
Watch for resolution and potential future developments from the litigation event, as it could impact future capital planning or regulatory discussions.

Conference Call Information

Ameris Bancorp will host a conference call on Friday, July 24, 2026, at 9:00 a.m. ET. Details for participation and webcast are available on the company’s investor relations website.

About Ameris Bancorp

Ameris Bancorp is the parent company of Ameris Bank, operating in five Southeastern states with \$28.5 billion in assets as of June 30, 2026. The company provides a comprehensive suite of banking, lending, treasury, insurance, and mortgage solutions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with financial professionals before making investment decisions. Past performance is not indicative of future results.