This comprehensive report, updated October 27, 2025, provides a multi-faceted analysis of Ameris Bancorp (ABCB), examining its business moat, financial statements, past performance, and future growth to determine a fair value. The evaluation is further contextualized by benchmarking ABCB against competitors like Synovus Financial Corp. (SNV) and Pinnacle Financial Partners, Inc. (PNFP), with all findings interpreted through the investment framework of Warren Buffett and Charlie Munger.
The overall outlook for Ameris Bancorp is mixed. The bank benefits from operating in the high-growth Southeastern U.S., which supports its strong profitability and efficiency. However, its growth strategy, which relies on acquisitions, has led to inconsistent earnings and volatile performance. While management effectively controls interest rate risk, the balance sheet carries potential liquidity concerns with a high loan-to-deposit ratio of 96%. The bank also lacks a strong competitive advantage to differentiate itself from peers. At its current price, the stock appears fairly valued, suggesting little margin of safety for new investors. Investors should weigh the bank's attractive location against the risks from its inconsistent execution.
US: NASDAQ
Ameris Bancorp (ABCB) is a regional bank holding company operating primarily through its subsidiary, Ameris Bank, with a significant presence in Georgia, Alabama, Florida, North Carolina, and South Carolina. The bank's business model is fundamentally straightforward: it gathers deposits from individuals and businesses within its local communities and uses these funds to originate loans. Its primary revenue source is net interest income, the spread between the interest it earns on its loan portfolio and the interest it pays on deposits. The bank's core operations are divided into several key product and service lines, including commercial and real estate lending, residential mortgage lending, and a suite of deposit and treasury services for both retail and commercial clients. These traditional banking activities are supplemented by noninterest income streams, most notably from mortgage banking activities.
Commercial and Industrial (C&I) and Commercial Real Estate (CRE) lending represent the largest and most critical part of Ameris's business, collectively accounting for over 60% of its loan portfolio and driving a majority of its net interest income. C&I loans provide working capital and financing for equipment to small and medium-sized businesses, while CRE loans finance properties like multi-family housing, office buildings, and retail centers. The market for this type of lending in the economically vibrant Southeast is large but fiercely competitive, with Ameris facing off against national giants like Truist, other super-regionals like Regions Financial, and a host of smaller community banks. Competitors are distinguished by scale, service, and pricing. Ameris aims to build a moat through personalized, relationship-based service and local decision-making, which can be a key differentiator for business clients who are often underserved by larger institutions. These customers, typically local businesses and real estate developers, exhibit high stickiness due to the significant hassle and potential business disruption involved in switching their primary lending and treasury relationships. This customer inertia provides Ameris with a narrow moat, but one that is constantly under pressure from competitors and exposed to the cyclical nature of the commercial real estate market.
Residential mortgage lending is another key business line, contributing to both interest income from loans held on the balance sheet and fee income from mortgage banking. Mortgage banking involves originating mortgages and then selling them to the secondary market, generating gains on sale. This segment, likely contributing 15-20% of total revenue, is highly sensitive to interest rates and the health of the housing market. The U.S. mortgage market is exceptionally competitive, with Ameris competing against large non-bank lenders like Rocket Mortgage, national banks, and local brokers, all of whom can often compete aggressively on price. The consumer for these products is the homebuyer, who generally shows little loyalty to the originator and prioritizes securing the lowest possible interest rate. As a result, Ameris possesses almost no competitive moat in mortgage origination itself. Its only tangible advantage is its existing retail banking footprint, which provides a natural, albeit not exclusive, channel to capture mortgage business from its current customers. The value lies more in using mortgages as a tool to deepen customer relationships rather than as a standalone profit center with durable advantages.
On the other side of the balance sheet are deposit and treasury services, the foundation of the entire banking model. Ameris gathers funds through products like checking and savings accounts, money market accounts, and CDs. The ability to attract and retain a large base of low-cost core deposits (particularly noninterest-bearing checking accounts) is the single most important source of a bank's competitive advantage. A stable, cheap funding base directly translates into a higher net interest margin and greater profitability. The market for deposits is intensely local, with Ameris competing with every financial institution in its footprint, from the largest national players to local credit unions and digital-only banks. The stickiness of these core deposit relationships is very high; it is a significant undertaking for a business or individual to move their primary operating accounts. This creates high switching costs, which form the core of Ameris's moat. The strength of this moat is measured by metrics like the percentage of noninterest-bearing deposits and the overall cost of funds relative to peers. Any erosion in this funding advantage would directly threaten the bank's long-term profitability.
Finally, Ameris generates fee-based, or noninterest, income from a variety of sources to diversify its revenue stream. Key contributors include service charges on deposit accounts, wealth management fees, card interchange fees, and the previously mentioned mortgage banking income. This collection of services typically accounts for 20-25% of the bank's total revenue. While diversification is a clear strength, Ameris lacks significant scale or a dominant market position in any single fee-generating category. For instance, its wealth management division is much smaller than those of larger competitors, and its mortgage banking income is notoriously volatile. The moat for these services is derived almost entirely from the bank's core deposit and lending relationships. The high switching costs associated with primary banking make it convenient for customers to use ancillary services from the same provider. However, this advantage is narrow, as customers can and do seek out best-in-class providers for services like wealth management, limiting Ameris's pricing power and market share.
In conclusion, Ameris Bancorp's business model is that of a solid, traditional regional bank. Its competitive moat is built almost exclusively on the high switching costs associated with its core commercial and retail deposit accounts in its local Southeastern markets. This provides a tangible, albeit narrow, competitive advantage in the form of a relatively stable funding base. However, the bank's heavy concentration in the cyclical commercial real estate sector, its reliance on volatile mortgage banking fees, and the intense competition from larger and smaller rivals limit the durability of this edge. The business model is resilient enough to compete effectively in its chosen markets, but it lacks the deep, structural advantages that would allow it to consistently outperform peers or insulate it from broader economic headwinds. Its long-term success hinges on its ability to defend its local deposit franchise and maintain disciplined credit quality.
Ameris Bancorp's recent financial statements paint a picture of a highly profitable and efficient operator, but with notable risks on its balance sheet. On the income statement, the bank shows strength. Revenue and net interest income have both grown consistently over the last few quarters, with net interest income up 9.39% year-over-year in the most recent quarter. Profitability metrics are strong, with a return on assets (ROA) of 1.65% and return on equity (ROE) of 11.35% in the latest period, both of which are solid for a regional bank. This performance is underpinned by excellent cost control, evidenced by an efficiency ratio that has remained impressively low, around 52-53%.
However, the balance sheet presents a more nuanced view. The bank's tangible common equity to total assets ratio of 10.6% indicates a solid capital base, providing a good cushion against unexpected losses. A significant strength is the bank's apparent management of interest rate risk; the accumulated other comprehensive income (AOCI) has a negligible negative impact of less than 1% on tangible equity, a much better position than many peers who have suffered from large unrealized losses on their bond portfolios. The primary red flag is the high loan-to-deposit ratio, which stood at 95.9% in the latest quarter. A ratio this high suggests the bank has loaned out nearly all of its deposits, potentially making it more vulnerable to funding pressures if deposit outflows occur.
Credit quality and cash generation are areas that require closer inspection. The provision for credit losses was minimal in the most recent quarter at $2.77 million, but was significantly higher at $21.89 million in the prior quarter, indicating some volatility in credit cost recognition. A major weakness in the available data is the absence of key metrics like nonperforming loans and net charge-offs, which makes a full assessment of asset quality difficult. While operating cash flow is positive, overall net cash flow was negative in the latest quarter, driven by investing activities, including an increase in loans held on the balance sheet.
In conclusion, Ameris Bancorp's financial foundation is a trade-off. It possesses strong earnings power and operational discipline, which are very attractive qualities. However, its aggressive lending relative to its deposit base and the lack of transparency on asset quality metrics present clear risks. The bank appears stable for now, but investors should be mindful of these balance sheet vulnerabilities, particularly in an uncertain economic environment.
Over the analysis period of fiscal years 2020 through 2024, Ameris Bancorp has demonstrated a pattern of growth through acquisition, resulting in a significantly larger balance sheet but a volatile and inconsistent operating history. The bank's total assets expanded from approximately $20.4 billion to $26.3 billion, while net loans grew from $14.3 billion to $20.4 billion. This top-line expansion, however, has produced a choppy and unpredictable earnings stream, making it difficult to discern a clear, positive operational trend.
The bank's growth and profitability metrics highlight this inconsistency. While revenue grew from $979 million in 2020 to $1.08 billion in 2024, the path was not linear. More concerning is the volatility in earnings. EPS was $3.78 in 2020, peaked at $5.43 in 2021, then fell for two straight years to a low of $3.90 in 2023 before recovering. This contrasts with the steadier performance of higher-quality peers. Profitability durability has also been weak, with Return on Equity (ROE) fluctuating significantly, ranging from a high of 13.43% in 2021 to a low of 8.13% in 2023. This inconsistency suggests challenges in managing credit cycles and integrating acquisitions effectively.
From a cash flow and shareholder return perspective, the record is similarly mixed. Operating cash flow has been extremely erratic, swinging from $798 million in 2020 to just $9 million in 2021 and back up to over $1 billion in 2022, indicating a lack of predictability in its core operations. On the other hand, capital returns have been conservative and reliable. The dividend per share was held flat at $0.60 for four years before a modest increase to $0.65 in 2024. The payout ratio has remained very low, typically under 16%, making the dividend very safe. Share buybacks have been opportunistic and small, doing little to reduce the share count meaningfully over the period.
In conclusion, Ameris Bancorp's historical record does not inspire strong confidence in its execution and resilience. While the bank has successfully scaled its operations through M&A, its inability to deliver consistent earnings growth, stable profitability, and predictable cash flows are significant weaknesses. Compared to industry peers who have demonstrated better cost control and more stable earnings, ABCB's past performance suggests that while the growth potential exists, it comes with a higher degree of execution risk and historical volatility.
The U.S. regional banking industry is navigating a period of significant change, with the next 3-5 years expected to be defined by consolidation, technological disruption, and a challenging interest rate environment. Industry-wide revenue growth is projected to be modest, likely in the 2-4% CAGR range, as banks grapple with compressed net interest margins (NIMs). A primary driver of change is the increased regulatory scrutiny following the 2023 banking failures, which raises compliance costs and makes scale a critical advantage, thus fueling M&A activity. Furthermore, customer expectations are forcing banks to accelerate their digital transformation. Digital banking adoption now exceeds 70% in many segments, and institutions that fail to invest in modern, user-friendly platforms risk losing customers to larger national players and nimble fintech competitors. The competitive landscape is intensifying. Entry barriers are rising due to capital and regulatory requirements, but competition from existing players and non-bank lenders is fierce. A key catalyst for improved demand would be a sustained period of lower, more stable interest rates, which would reinvigorate loan demand, particularly in the mortgage and commercial real estate sectors, and potentially ease the pressure on deposit costs. However, the path of monetary policy remains a major uncertainty.
This evolving landscape directly impacts the growth prospects for regional banks like Ameris Bancorp. The flight to safety in 2023 disproportionately benefited the largest "too-big-to-fail" institutions, leaving regional banks to compete more aggressively for a smaller pool of deposits. This has fundamentally shifted the liability side of the balance sheet, increasing the cost of funds and squeezing profitability. To grow in this environment, banks must either find defensible lending niches, build out high-margin fee-based businesses, or pursue acquisitions to gain scale and efficiencies. For Ameris, which operates in the economically vibrant but highly competitive Southeast, growth will depend on its ability to leverage its local relationships while effectively managing these powerful industry-wide headwinds. The bank's future performance will be a function of its success in defending its deposit base, prudently growing its loan book in a slowing economy, and potentially executing strategic M&A to bolster its market position and earnings power.
Ameris's primary growth engine is its Commercial & Industrial (C&I) and Commercial Real Estate (CRE) lending, which constitutes the majority of its loan portfolio. Currently, consumption in this area is constrained by high interest rates, which have increased the cost of capital and slowed transaction volumes, particularly in office and retail CRE. Over the next 3-5 years, growth is expected to shift away from these challenged sectors towards multi-family housing, industrial, and warehouse properties, driven by favorable demographic trends in the Southeast. The total CRE market in Ameris's footprint is vast, measured in the trillions, but growth will likely be in the low-single digits. Customers in this space choose banks based on a combination of relationship, speed of execution, and loan structure, with price being a secondary factor for strong sponsors. Ameris can outperform larger rivals like Truist or Regions Financial by offering localized decision-making and more flexible terms to small and medium-sized businesses. However, larger banks will win on larger deals and more competitive pricing. The number of regional bank competitors has been steadily decreasing due to consolidation and is expected to continue this trend as scale becomes more critical for technology and compliance spending. A key future risk for Ameris is a sharp downturn in the Southeastern real estate market, which would directly impact loan quality and growth (medium probability). Another risk is increased competition from non-bank private credit funds that are less regulated and can be more aggressive on terms (medium probability).
Residential mortgage lending is another significant, albeit volatile, business for Ameris. Current consumption is severely constrained by housing affordability issues, with mortgage rates near two-decade highs. Activity is largely limited to purchase mortgages rather than refinancings. Looking ahead 3-5 years, any meaningful decline in interest rates could unlock significant pent-up demand, causing a surge in both purchase and refinance activity. However, the segment's core consumption is unlikely to change; it will remain highly sensitive to rates. The U.S. mortgage origination market is expected to fluctuate between $1.5 trillion and $2.5 trillion annually. Customers in this market are overwhelmingly price-sensitive, choosing lenders primarily based on the lowest interest rate. This gives a significant advantage to large, scaled non-bank lenders like Rocket Mortgage and United Wholesale Mortgage, who can operate on razor-thin margins. Ameris is unlikely to win significant share here; its primary advantage is cross-selling to its existing deposit customers. The primary future risk is a 'higher-for-longer' interest rate scenario, which would keep the mortgage market stagnant and depress this key source of fee income for Ameris (medium probability). A secondary risk is further technological disruption from fintechs that could erode the value of traditional bank origination channels (high probability).
On the funding side, deposit gathering and treasury services are fundamental to growth but face immense pressure. The current environment is defined by intense competition for customer funds, which has dramatically increased deposit costs and limited growth. The primary constraint is the availability of higher-yielding alternatives for customers, from Treasury bills to high-yield savings accounts at online banks. Over the next 3-5 years, the mix of deposits will continue to shift away from low-cost noninterest-bearing accounts towards higher-cost certificates of deposit (CDs) and money market accounts. Growth in total deposits for the industry is expected to be slow, tracking nominal GDP. Customers choose their primary bank based on convenience, digital tools, and trust, but are increasingly moving excess funds based on yield. Ameris's success will depend on its ability to offer competitive rates and services to retain its core operating accounts. Larger national banks with bigger marketing budgets and more advanced digital offerings are most likely to win share. The number of deposit-taking institutions will continue to decline through M&A. A critical risk for Ameris is a failure to manage its deposit pricing strategy effectively, leading to either margin-crushing costs or significant deposit outflows if rates are uncompetitive (high probability). A related risk is a liquidity squeeze during a market stress event, forcing reliance on higher-cost wholesale funding (low probability, but high impact).
Finally, Ameris’s non-mortgage fee income streams, such as wealth management, treasury services, and card fees, are underdeveloped and represent a potential but unrealized growth area. Current consumption is limited by the bank's lack of scale and brand recognition in these areas compared to larger competitors. For these services to become a meaningful growth driver over the next 3-5 years, Ameris would need to significantly invest in talent and technology. Growth would likely come from deepening relationships with existing C&I and high-net-worth deposit customers. The U.S. wealth management market is a multi-trillion dollar industry, but Ameris holds a minuscule share. Customers in this segment choose providers based on expertise, performance, and trust, where established players like Charles Schwab, Fidelity, or the private banking arms of major banks have a powerful advantage. Ameris is unlikely to win significant share from competitors without a major strategic shift or acquisition. The most significant risk is one of omission: by failing to build a robust and diversified fee income base, Ameris's earnings will remain overly dependent on the narrow and volatile net interest margin (high probability). This makes its entire business model more vulnerable to interest rate cycles.
Ameris Bancorp's (ABCB) valuation on October 27, 2025, suggests the stock is fairly priced at $74.02. For a regional bank like ABCB, a comprehensive valuation relies on a triangulation of methods, with the most weight given to asset-based and multiples-based approaches common in the banking sector. These methods compare the bank's market price to its core assets and earnings power relative to its peers. The analysis points to a fair value range of approximately $68 to $78, which squarely contains the current stock price, indicating limited immediate upside or downside and a neutral outlook for investors seeking a bargain.
The multiples approach provides crucial context by comparing ABCB to its peers. Its Price-to-Earnings (P/E) ratio of 13.06 is slightly above the regional bank average of 12.65, a premium supported by strong recent earnings growth. More critical for a bank, the Price-to-Tangible Book Value (P/TBV) ratio stands at 1.78x, based on a tangible book value per share of $41.49. This is a notable premium to the historical industry median of around 1.5x. However, this higher valuation is justified by ABCB's superior profitability, evidenced by a Return on Equity (ROE) of 11.35%, which is well above the industry average.
From a cash-flow perspective, ABCB's dividend yield of 1.08% is modest. However, its low payout ratio of 14.11% signals that the dividend is very secure and has significant room to grow. The primary valuation support, however, comes from the asset-based approach, which centers on the P/TBV ratio. Given ABCB's high profitability and efficient use of its asset base to generate earnings, a P/TBV ratio in the 1.6x to 1.9x range is considered reasonable. This asset-based view reinforces the conclusion that the current market price is aligned with the company's fundamental performance.
In conclusion, by synthesizing the multiples, yield, and asset-based valuations, a clear picture emerges. The asset-based P/TBV approach, which is most relevant for financial institutions, confirms that the stock's premium valuation is warranted by its strong profitability. While the dividend yield is low and the P/E multiple offers no discount, the alignment between the bank's performance (high ROE) and its valuation (premium P/TBV) leads to a fair value estimate of $68 to $78. This solidifies the view that ABCB is fairly valued at its current price.
Warren Buffett would view Ameris Bancorp as a perfectly understandable but ultimately second-tier regional bank. He primarily seeks banks with a durable moat, which comes from a low-cost deposit base and exceptional operational efficiency, leading to consistently high returns. While ABCB operates in the attractive, high-growth Southeastern U.S. market, its financial performance, with a Return on Average Assets (ROAA) around 1.10% and an efficiency ratio often above 60%, would be seen as merely adequate, not excellent. Buffett would contrast this with best-in-class peers like Pinnacle Financial Partners, which boast ROAAs over 1.40% and efficiency ratios below 50%. The bank's heavy reliance on acquisitions for growth is another point of caution, as Buffett prefers steady, organic growth and is wary of the risks that come with integrating other companies. For retail investors, the takeaway is that while ABCB isn't a poorly run bank, it doesn't possess the 'wonderful business' characteristics Buffett demands, making it a likely pass at its current valuation. A significant price drop of 20-25%, creating a much larger margin of safety, or a multi-year track record of improved efficiency would be needed for him to reconsider. If forced to choose the best banks, Buffett would likely favor Pinnacle Financial Partners (PNFP) for its best-in-class profitability (ROAA >1.40%), Commerce Bancshares (CBSH) for its fortress balance sheet and century-long track record of conservative management, and Synovus Financial (SNV) for its superior operational execution compared to direct peers (ROAA >1.20%).
Bill Ackman would view Ameris Bancorp in 2025 as a classic activist candidate: a simple, understandable regional bank that is materially underperforming its potential. He would focus on the bank's high efficiency ratio, which often exceeds 60%, as a clear sign of operational fat that could be trimmed to improve profitability, especially when best-in-class peers like Pinnacle Financial operate below 50%. The bank's solid footprint in the growing Southeast and its discounted valuation, often around 1.3x price-to-tangible-book-value, would provide the margin of safety and upside potential he requires. However, he would be concerned about management's M&A-driven strategy, questioning whether capital could be better allocated to aggressive share buybacks or technology investments to drive down costs. For retail investors, Ackman's perspective suggests that ABCB is not a high-quality compounder today, but rather a value stock with significant potential if operational performance can be brought in line with more efficient peers.
Charlie Munger would view Ameris Bancorp as a decidedly average bank operating in an attractive, growing region. He would predicate any investment in the banking sector on a simple, predictable business model with a durable low-cost deposit moat, a culture of risk aversion, and management that avoids the folly of empire-building through reckless acquisitions. While ABCB's Southeastern footprint offers a long runway for growth, Munger would be unimpressed by its mediocre operational metrics, such as a high efficiency ratio often above 60% and a return on assets around 1.10%, which lag significantly behind best-in-class peers. The bank's heavy reliance on M&A for growth would be a major red flag, as he would see it as a source of unnecessary complexity and execution risk, preferring the quiet compounding of a superior organic operator. Ultimately, Munger would avoid Ameris Bancorp, concluding that its discounted valuation does not compensate for its lack of a truly great business model, a key tenet of his philosophy to buy wonderful businesses at fair prices. The key takeaway for investors is that it is better to pay a fair price for a superior bank than to buy an average one at a discount. If forced to choose the best banks, Munger would likely favor Commerce Bancshares (CBSH) for its fortress balance sheet and conservative culture, Pinnacle Financial Partners (PNFP) for its exceptional organic growth engine and profitability, and Synovus Financial (SNV) as a higher-quality regional operator. Munger might reconsider his position only if ABCB demonstrated a multi-year track record of improved organic growth and operational efficiency independent of major acquisitions.
Ameris Bancorp positions itself as a significant player in the competitive Southeastern United States banking market, primarily growing through a series of strategic acquisitions. This strategy has successfully expanded its asset base and geographic reach, giving it a presence in several economically vibrant states. The bank's core business revolves around traditional community banking, focusing on commercial real estate, C&I (commercial and industrial) loans, and retail banking services. This focus allows it to build deep relationships within its communities, a hallmark of successful regional banks.
When benchmarked against its competition, ABCB's performance reveals both opportunities and challenges. Its location is a distinct advantage, as the Southeast continues to experience population and economic growth above the national average, creating a fertile ground for lending activities. However, the bank's operational efficiency has historically lagged some of its more streamlined peers. Its efficiency ratio, a measure of noninterest expense as a percentage of revenue, has often been higher than that of top competitors, indicating that it costs ABCB more to generate a dollar of revenue. This can weigh on profitability and shareholder returns over time.
From a financial health perspective, Ameris Bancorp maintains adequate capital levels, in line with regulatory requirements, providing a buffer against economic downturns. Its loan portfolio is diversified, though it has a significant concentration in commercial real estate, which can be a source of risk depending on the economic cycle. Compared to peers, its profitability metrics, such as Return on Average Assets (ROAA), are often solid but not typically at the top of the peer group. This suggests that while ABCB is a competent operator, there is room for improvement in translating its strong market presence into superior financial results.
For a potential investor, the key consideration is whether ABCB's attractive valuation compensates for its operational performance gap relative to premium competitors. The stock often trades at a discount on a price-to-tangible-book-value basis compared to more profitable peers like Pinnacle Financial Partners. This discount reflects the market's pricing of its lower efficiency and returns. The investment thesis hinges on management's ability to successfully integrate past acquisitions, improve its cost structure, and capitalize on its prime geographic location to close the profitability gap with the industry's leaders.
Synovus Financial Corp. and Ameris Bancorp are direct competitors with significant operational overlap in the Southeastern U.S., particularly in Georgia and Florida. Both banks follow a traditional commercial-focused model, but Synovus is a larger institution with a longer operating history and a more established brand in its core markets. While Ameris has grown rapidly through acquisitions, Synovus has focused more on organic growth and refining its operations in recent years. This fundamental difference in strategy leads to distinct profiles in efficiency, profitability, and risk, making for a compelling head-to-head comparison for investors looking for exposure to the region.
In terms of business and moat, Synovus holds a slight edge. Both banks benefit from high regulatory barriers to entry, a key moat for the entire banking industry. However, Synovus's brand is arguably stronger in legacy markets like Columbus, GA, and it boasts a larger scale with total assets of around $60 billion compared to ABCB's $25 billion. This larger scale can translate into better operational leverage. Switching costs are high for both, as customers are reluctant to move primary banking relationships. Synovus also has a more significant wealth management division, which adds a network effect and stickier customer relationships. ABCB's moat is solid due to its community ties, but Synovus's greater scale gives it a narrow win. Winner: Synovus Financial Corp. for its superior scale and more diversified revenue streams.
Analyzing their financial statements reveals Synovus's stronger profitability profile. Synovus consistently reports a better efficiency ratio, often in the mid-50s percentage range, while ABCB's has historically been higher, sometimes above 60%. A lower efficiency ratio means the bank is more cost-effective. Synovus also tends to post a higher Return on Average Assets (ROAA), a key measure of profitability, often above 1.20% versus ABCB's which is typically closer to 1.10%. Both maintain strong liquidity with loan-to-deposit ratios below 100% and robust capital with Tier 1 capital ratios well above the 8% regulatory minimum. However, Synovus is better on revenue growth and margins, while both are strong on liquidity and leverage. Winner: Synovus Financial Corp. due to its superior efficiency and profitability metrics.
Looking at past performance, Synovus has delivered more consistent returns. Over the last five years, Synovus has shown more stable earnings per share (EPS) growth, whereas ABCB's performance has been more volatile, partly due to the integration of large acquisitions like Fidelity Southern. In terms of total shareholder return (TSR), performance can vary based on the time frame, but Synovus has provided a less volatile journey for investors, with a lower beta (a measure of stock price volatility) compared to ABCB. ABCB's revenue has grown faster due to M&A, but its margin trend has been less consistent. Synovus wins on TSR and risk, while ABCB wins on top-line growth. Winner: Synovus Financial Corp. for providing a better risk-adjusted return and more stable operational performance.
For future growth, the outlook is balanced but favors Ameris Bancorp slightly. Both banks operate in the same high-growth Southeastern markets, providing a strong tailwind from favorable demographics and economic expansion. Ameris, being the smaller bank, has a longer runway for growth and has been more aggressive with acquisitions, which could be a key driver of future expansion. Synovus is more focused on organic growth and leveraging its existing franchise. Analyst consensus often projects slightly higher long-term EPS growth for ABCB, assuming it can successfully improve its efficiency. The edge goes to ABCB for its higher growth potential, though this comes with higher execution risk. Winner: Ameris Bancorp on the basis of its greater potential for M&A-driven growth.
From a valuation perspective, Ameris Bancorp often appears cheaper, which reflects its lower profitability and higher perceived risk. ABCB typically trades at a lower price-to-tangible book value (P/TBV) multiple, sometimes around 1.3x compared to Synovus's 1.5x. Similarly, its forward P/E ratio is often a turn or two lower. Both offer competitive dividend yields, usually in the 3-4% range, with sustainable payout ratios. The quality vs. price argument is central here: Synovus commands a premium for its higher quality and more consistent earnings, while ABCB offers value for investors willing to bet on an operational turnaround. For a value-oriented investor, ABCB is the more attractive choice. Winner: Ameris Bancorp as it offers better value on a risk-adjusted basis for those with a longer time horizon.
Winner: Synovus Financial Corp. over Ameris Bancorp. Although Ameris Bancorp offers a more attractive valuation and potentially higher growth through acquisitions, Synovus stands out as the superior operator. Synovus consistently demonstrates better profitability with a higher ROAA (often >1.20%) and superior cost control, reflected in a lower efficiency ratio. Its larger scale and more stable performance history provide a more reliable investment case. While an investment in ABCB is a bet on improving its execution and closing the performance gap, Synovus is already a high-performing institution, making it the stronger choice for investors prioritizing quality and consistency.
Pinnacle Financial Partners (PNFP) and Ameris Bancorp are both significant players in the Southeastern banking scene, but they operate with distinct models and philosophies. PNFP, headquartered in Tennessee, has built its reputation on a culture of high-touch client service, primarily targeting urban markets and attracting seasoned bankers to drive organic growth. In contrast, ABCB has relied more heavily on M&A to expand its footprint across a mix of urban and rural markets in Georgia, Florida, and the Carolinas. This comparison pits a premier organic growth story against a strategic acquirer, highlighting different pathways to success in regional banking.
PNFP possesses a stronger business and moat. Its primary moat is its human capital and brand reputation, which creates significant intangible value. The company's model of attracting top banking talent who bring their client books with them has created a powerful growth engine and a strong Net Promoter Score that is among the industry's best. While ABCB has a solid community banking brand, it doesn't match PNFP's reputation for service excellence. Both benefit from regulatory barriers and high switching costs. However, PNFP's scale is now larger, with assets over $45 billion versus ABCB's $25 billion, and its network effect is concentrated in high-growth metro areas, giving it an advantage. Winner: Pinnacle Financial Partners, Inc. due to its superior brand, unique talent-acquisition model, and focused market strategy.
Financially, Pinnacle is a top-tier performer and outshines Ameris Bancorp. PNFP consistently posts one of the best efficiency ratios in the industry, often below 50%, which is significantly better than ABCB's typical 60%+. This efficiency translates directly to superior profitability; PNFP's ROAA is frequently above 1.40%, a benchmark of excellence that ABCB rarely meets. While both banks maintain strong capital (Tier 1 ratios above 10%) and liquidity, PNFP's revenue growth has been more consistent and organic. ABCB's net interest margin (NIM) is often comparable, but its higher cost base eats into profits. PNFP is better on revenue growth, margins, and profitability. Winner: Pinnacle Financial Partners, Inc. for its elite levels of efficiency and profitability.
An analysis of past performance further solidifies Pinnacle's lead. Over the past decade, PNFP has been one of the best-performing bank stocks in the U.S., delivering exceptional long-term total shareholder return (TSR). Its EPS CAGR over the last five years has been robust and driven by strong organic loan and deposit growth, unlike ABCB's lumpier, M&A-driven growth. PNFP's stock has been more volatile at times due to its high growth expectations, but its fundamental performance trend has been consistently upward. ABCB's margin trend has been less stable due to acquisition accounting and integration challenges. PNFP wins on growth, margins, and TSR. Winner: Pinnacle Financial Partners, Inc. for its track record of superior, organically-driven shareholder value creation.
Looking ahead, both banks are positioned in attractive markets, but Pinnacle's growth engine appears more reliable. PNFP continues to expand into new high-growth urban markets in the Southeast with its proven model of hiring experienced local bankers. This strategy is scalable and has a clear track record. ABCB's future growth is more dependent on identifying and successfully integrating future acquisitions, which carries inherent execution risk. Analyst consensus typically forecasts stronger and more consistent EPS growth for PNFP. PNFP has the edge in demand signals and its proven growth pipeline. Winner: Pinnacle Financial Partners, Inc. due to its more predictable and proven organic growth strategy.
In terms of valuation, Pinnacle consistently trades at a significant premium, which is a direct reflection of its superior performance. PNFP's P/TBV multiple is often above 1.8x, while ABCB's is much lower, around 1.3x. This means investors are willing to pay more for each dollar of PNFP's tangible equity because they expect higher returns from it. From a pure value perspective, ABCB is undeniably cheaper. However, the quality vs. price argument strongly favors PNFP; its premium is justified by its best-in-class profitability, efficiency, and growth. A cheaper stock isn't a better value if the underlying business is weaker. Winner: Ameris Bancorp for being the better value, but only for investors who believe the performance gap can close.
Winner: Pinnacle Financial Partners, Inc. over Ameris Bancorp. Pinnacle is a clear winner and represents a best-in-class regional bank. Its superiority is evident across nearly every key metric, from its remarkably low efficiency ratio (often below 50%) to its high ROAA (frequently exceeding 1.40%). Its organic growth model, built on attracting top talent and providing exceptional service, is a more sustainable and predictable engine for value creation than ABCB's M&A-focused strategy. While ABCB offers a much lower valuation, the significant and persistent performance gap makes Pinnacle the higher-quality investment, justifying its premium price.
United Community Banks (UCBI) is a very close competitor to Ameris Bancorp, both in terms of size and geographic focus. Headquartered in Georgia, UCBI has a strong presence across the Southeast, overlapping significantly with ABCB's footprint. Both banks have grown through a mix of organic efforts and acquisitions, and both employ a community-centric banking model. This comparison is particularly relevant as it pits two very similar institutions against each other, allowing investors to scrutinize the subtle but important differences in execution, financial performance, and strategy that separate them.
In the realm of business and moat, the two are very evenly matched. Both have established brands in their local communities and benefit from the high switching costs and regulatory barriers inherent in banking. UCBI, with assets around $24 billion, is almost identical in scale to ABCB's $25 billion. UCBI has built a reputation for excellent customer service, frequently winning J.D. Power awards, which strengthens its brand moat. ABCB's moat is derived from its slightly more aggressive M&A posture and deep roots in its acquired banks' communities. Neither has a decisive network effect advantage over the other. This is too close to call. Winner: Even, as both banks possess comparable moats rooted in community presence and scale.
Financially, United Community Banks often demonstrates a slight operational edge. UCBI has historically managed a more consistent efficiency ratio, typically in the high-50s percentage range, while ABCB's has been more volatile and often above 60%, especially following acquisitions. This better cost control at UCBI often leads to slightly stronger profitability, with its ROAA hovering around 1.20%, sometimes edging out ABCB's 1.10%. Both maintain healthy balance sheets with strong capital ratios (Tier 1 >11%) and good liquidity. Revenue growth has been similar over time, driven by the same regional economic trends. UCBI is slightly better on margins and profitability. Winner: United Community Banks, Inc. for its modestly better efficiency and resulting profitability.
Their past performance records are quite similar, reflecting their parallel strategies and market exposures. Over 1, 3, and 5-year periods, their total shareholder returns have often tracked each other closely, with periods of outperformance by one being followed by the other. Both have seen their EPS growth impacted by M&A activity, leading to some lumpiness. UCBI's margin trend has been slightly more stable, whereas ABCB has seen larger swings due to the size of its acquisitions. From a risk perspective, their stock betas and credit quality metrics have been broadly comparable. This category is a virtual tie. Winner: Even, as both have delivered similar long-term results with comparable levels of risk.
Assessing future growth prospects, both banks are well-positioned to benefit from the continued economic vitality of the Southeast. Their growth drivers are nearly identical: capturing new business from population inflows and commercial expansion in their markets. Both are expected to continue to be opportunistic acquirers of smaller banks. Analyst estimates for their forward EPS growth are typically very close, often in the mid-single digits. Neither bank has articulated a unique strategic initiative that would give it a clear growth advantage over the other. The outlook for both is tied to the same macroeconomic factors. Winner: Even, as their future growth paths are highly correlated and similarly promising.
From a valuation standpoint, both banks tend to trade in a very tight range. Their P/E and P/TBV multiples are often within 10-15% of each other. For example, it is common to see both trade at a P/TBV of 1.2x to 1.4x. They also offer similar dividend yields, generally in the 3-4% range, supported by healthy payout ratios. The market appears to view these two banks as very close peers, and as such, does not assign a consistent premium to either one. Any valuation difference is usually temporary, making one a slightly better value than the other at different times. Winner: Even, as they are typically valued almost identically by the market.
Winner: United Community Banks, Inc. over Ameris Bancorp. This is a very close contest between two highly similar banks, but UCBI earns a narrow victory due to its slightly superior operational execution. UCBI has consistently demonstrated better cost control, as evidenced by its more stable and slightly lower efficiency ratio. This operational discipline translates into marginally better and more reliable profitability (ROAA). While both banks offer similar growth prospects and trade at nearly identical valuations, an investor is paying the same price for a slightly better-run institution in UCBI. The difference is not large, but in a head-to-head matchup, UCBI's consistent execution makes it the more compelling choice.
Bank OZK presents a unique and specialized competitor to the more traditional Ameris Bancorp. While both operate across the Southeast, their business models are fundamentally different. Bank OZK is renowned for its Real Estate Specialties Group (RESG), which originates large, complex construction and development loans nationwide, a high-yield but higher-risk strategy. Ameris Bancorp, in contrast, is a diversified community bank with a more conventional loan portfolio spread across commercial real estate, C&I, and consumer lending within its specific geographic footprint. This comparison contrasts a focused, high-octane specialist with a diversified generalist.
Bank OZK's business and moat are built on its niche expertise. Its primary moat is the specialized knowledge and industry relationships within its RESG division, which allows it to underwrite complex, high-value projects that few other banks of its size can handle. This creates a moat based on intangible assets (expertise) rather than a broad brand or network. ABCB's moat is more traditional, based on its community presence and customer relationships. Bank OZK's model is more scalable nationally, but also more concentrated. ABCB's scale is about $25 billion in assets, while Bank OZK's is larger at over $34 billion. ABCB has a broader deposit-gathering network, which is a key advantage. Winner: Ameris Bancorp for its more diversified and stable business model, which constitutes a more durable long-term moat.
Financially, Bank OZK is a profitability powerhouse, but this comes with a different risk profile. Bank OZK consistently generates one of the highest net interest margins (NIM) in the industry, often exceeding 4.5%, thanks to the high yields on its RESG loans. This drives elite profitability, with an ROAA that is frequently above 1.80%, dwarfing ABCB's 1.10%. It also runs an incredibly efficient operation, with an efficiency ratio often below 40%. However, its loan book is heavily concentrated in commercial real estate, which is inherently riskier than ABCB's more diversified portfolio. Both have strong capital levels, but Bank OZK's earnings are more exposed to a downturn in the CRE market. Bank OZK is far better on margins and profitability. Winner: Bank OZK for its industry-leading profitability metrics, albeit with higher concentration risk.
Examining past performance, Bank OZK has delivered explosive growth. Over the last decade, Bank OZK grew its assets and earnings at a phenomenal rate, and its stock was a top performer for many years. Its EPS CAGR has significantly outpaced ABCB's. However, its stock performance has also been much more volatile, with significant drawdowns during periods of fear about the commercial real estate market. ABCB's performance has been more measured and less cyclical. Bank OZK wins decisively on growth, while ABCB offers a lower-risk profile. Winner: Bank OZK for its stellar historical growth in earnings and assets.
In terms of future growth, Bank OZK's prospects are tied to the health of the national commercial real estate market and its ability to continue sourcing high-quality loans. Its growth can be lumpy and is sensitive to economic cycles. Ameris Bancorp's growth is more closely linked to the steady economic expansion of the Southeast. While ABCB's ceiling may be lower, its floor is likely higher. Analyst forecasts for Bank OZK are often higher but carry a wider range of outcomes. ABCB's path is more predictable. The edge goes to ABCB for a more reliable, if less spectacular, growth outlook. Winner: Ameris Bancorp for its more stable and less cyclical growth drivers.
From a valuation standpoint, Bank OZK has historically traded at a discount to other high-profitability banks due to the market's concern over its CRE concentration. It is common to see OZK trade at a P/TBV multiple below 1.2x and a very low P/E ratio, despite its superior returns. ABCB trades at a higher P/TBV (around 1.3x) but a similar P/E. This means investors get OZK's elite profitability for a cheaper price than ABCB's average profitability. The quality vs. price argument is complex; OZK is higher quality on a returns basis, but lower quality on a risk basis. Given the deep discount, OZK often represents compelling value. Winner: Bank OZK because its valuation does not seem to fully reflect its exceptional profitability.
Winner: Bank OZK over Ameris Bancorp. This verdict comes with a significant caveat regarding risk tolerance. Bank OZK is the superior choice for investors seeking high returns and who are comfortable with the concentrated risk of its specialized real estate lending model. Its financial performance is objectively in a different class, with an ROAA often 70% higher than ABCB's and an efficiency ratio that is 2,000 basis points better. While ABCB offers a more traditional, diversified, and arguably safer banking model, Bank OZK's deeply discounted valuation relative to its incredible profitability makes it a more compelling investment on a risk-adjusted return basis for those willing to underwrite the CRE cycle. The performance gap is simply too wide to ignore.
Cadence Bank (CADE) and Ameris Bancorp are two regional banks of significant scale operating in overlapping Southern markets. Cadence, following its merger with BancorpSouth, has a major presence in Texas and across the South, while Ameris is focused more on the Southeast. Both have utilized M&A as a key growth strategy, and both are now in a phase of trying to integrate large acquisitions and realize cost savings. This makes the comparison a timely look at two institutions facing similar strategic challenges of operational integration and profitable growth in dynamic, competitive markets.
Regarding their business and moat, Cadence Bank has a slight edge due to its broader geographic diversification and specific business lines. With total assets approaching $50 billion, Cadence is roughly double the size of ABCB, providing greater economies of scale. Its presence in the fast-growing Texas market is a key differentiator. Furthermore, Cadence has a more developed insurance brokerage and wealth management business, which contributes a meaningful amount of noninterest income and helps create stickier client relationships. ABCB's moat is strong in its core markets like Georgia and Florida, but Cadence's larger scale and more diversified revenue streams give it a stronger overall position. Winner: Cadence Bank for its superior scale and better revenue diversification.
From a financial statement perspective, the comparison is nuanced, as both banks are working through merger-related issues. Historically, both banks have had challenges with efficiency. Cadence's efficiency ratio is often in the low-60s percentage range, similar to or slightly better than ABCB's. Profitability metrics like ROAA have been comparable for both, typically in the 1.0% to 1.1% range, which is solid but not spectacular. Both banks are well-capitalized. A key difference can be seen in their net interest margins (NIMs), where Cadence's large Texas footprint can sometimes provide a different asset yield dynamic. The financials are very close, but Cadence's path to realizing merger synergies gives it a slight potential edge. Winner: Cadence Bank on a narrow basis, due to the greater potential for post-merger efficiency gains.
Past performance for both has been heavily influenced by M&A. ABCB's large acquisition of Fidelity Southern and Cadence's merger of equals with BancorpSouth make a clean comparison of historical organic growth difficult. Both have seen periods of strong top-line growth followed by periods of flat or declining EPS as they digest the deals. Total shareholder returns for both have been volatile and have generally tracked the regional bank index. Neither has stood out as a consistent outperformer over the last five years; both have been 'show me' stories for the market. Winner: Even, as both stocks have delivered similar, choppy performance while undergoing major strategic transformations.
Looking at future growth, Cadence's exposure to Texas is a significant advantage. The Texas economy is one of the largest and fastest-growing in the country, providing a robust environment for loan demand. While ABCB's Southeast markets are also growing rapidly, the scale of the Texas market gives Cadence a larger sandbox to play in. The primary growth driver for both in the near term will be successfully executing on their merger integration plans and achieving the targeted cost savings, which should flow directly to the bottom line. Cadence has a slight edge due to its prime Texas positioning. Winner: Cadence Bank due to its more favorable geographic footprint for long-term organic growth.
From a valuation perspective, both banks often trade at a discount to the regional bank average, reflecting the market's skepticism about their ability to execute on their merger plans and improve efficiency. They frequently trade at similar P/TBV multiples, often in the 1.1x to 1.3x range, and offer comparable dividend yields. Neither is clearly 'cheaper' than the other on a consistent basis. An investment in either is a bet that management can deliver on its promises, which would lead to a re-rating of the stock. The choice comes down to which management team and geographic footprint an investor prefers. Winner: Even, as both represent similar value propositions based on a successful operational turnaround.
Winner: Cadence Bank over Ameris Bancorp. This is a matchup of two M&A-driven banks that are currently priced as 'fixer-uppers' by the market. Cadence Bank gets the nod due to its superior scale and more attractive geographic footprint, particularly its substantial presence in the dynamic Texas market. While both banks face similar challenges in improving their operational efficiency post-merger, Cadence's larger asset base (~$50B vs. ABCB's ~$25B) and more diversified revenue streams provide a stronger foundation. With both stocks trading at similar, discounted valuations, an investor is getting access to a larger and arguably better-positioned franchise with Cadence.
Based on industry classification and performance score:
Ameris Bancorp operates as a traditional regional bank, focusing on lending to local businesses and consumers in the Southeastern U.S., funded by community deposits. The bank demonstrates effective branch network management and maintains a healthy, diversified deposit customer base with low reliance on volatile brokered funds. However, its competitive moat is narrow, evidenced by funding costs that are not meaningfully lower than peers, a below-average contribution from fee income, and a lack of a distinct lending niche beyond a heavy concentration in commercial real estate. For investors, the takeaway is mixed; while the bank is a solid regional operator, it lacks the strong competitive advantages that would protect profits through economic cycles.
The bank's revenue is overly dependent on interest income from loans, as its fee-based income is below average and heavily weighted towards the cyclical mortgage market.
A robust stream of noninterest income can cushion a bank's earnings when lending margins are tight. Ameris lags its peers in this area. Noninterest income accounts for just 22% of its total revenue, which is below the typical regional bank average of around 25%. This higher reliance on net interest income makes its earnings more vulnerable to fluctuations in interest rates. Furthermore, a significant portion of its fee income comes from mortgage banking. While profitable during housing booms, this income source is highly cyclical and can decline sharply when interest rates rise and refinancing activity dries up. The lack of a more substantial and diversified fee income stream from more stable sources like wealth management or treasury services is a strategic weakness.
The bank maintains a stable funding base with a low reliance on volatile brokered deposits, indicating a well-diversified and healthy mix of customers.
Ameris shows strength in the composition of its deposit base. The bank's reliance on brokered deposits, which are essentially 'hot money' sourced from third parties seeking the highest yield, is low at approximately 5% of total deposits. This is meaningfully below the peer average, which can be closer to 8% or higher. A lower dependence on brokered deposits indicates a healthier, more organic funding model built on direct customer relationships. This reduces the risk of sudden deposit outflows during times of market stress and gives the bank a more stable foundation for its lending operations. While detailed data on the retail versus business mix is not always available, the low level of brokered funds is a strong proxy for a stable, relationship-driven deposit franchise.
Ameris operates as a generalist lender with a heavy concentration in commercial real estate, lacking a specialized or defensible niche that would provide a competitive edge.
While some community and regional banks build a competitive moat through deep expertise in a specific lending category like SBA loans or agriculture, Ameris does not demonstrate such a focus. Its loan portfolio is that of a generalist, with its largest exposure being to commercial real estate (CRE), which constitutes around 40% of its loans. While being a major CRE lender is common, it is more of a concentration risk than a defensible niche, as the market is highly competitive and cyclical. The bank does not have a standout presence in SBA, agriculture, or another specialized C&I lending area that would indicate unique underwriting skills or pricing power. Without a differentiated lending franchise, Ameris must compete on generalist terms, which limits its ability to earn superior, risk-adjusted returns over the long term.
While Ameris benefits from a relatively low level of uninsured deposits, its funding costs are not meaningfully better than peers and its base of noninterest-bearing deposits is eroding, signaling a weak funding advantage.
A bank's primary moat comes from a low-cost, stable deposit base. Ameris's performance here is mixed and ultimately unconvincing. On the positive side, its level of uninsured deposits, at around 35%, is below the peer average of 40%, indicating a slightly less risky funding profile. However, its percentage of noninterest-bearing deposits, the cheapest funding source, has fallen to 26% of total deposits, only marginally better than the peer average of 25% and down from higher levels previously. More importantly, its overall cost of total deposits, at 2.50%, is slightly above the peer average of 2.40%. In an environment of rising interest rates, this lack of a clear cost advantage is a significant weakness. Because it cannot fund its loans more cheaply than its rivals, its profitability is constrained, leading to a 'Fail' for this critical factor.
The bank operates an efficient branch network with deposit levels per branch that are in line with industry peers, indicating effective physical asset management.
Ameris Bancorp has demonstrated a rational approach to its physical footprint. With approximately 165 branches and total deposits around $21 billion, its deposits per branch stand at roughly $127 million. This figure is solidly in line with the average for regional banks of a similar size, which typically falls in the $100 million to $150 million range. This suggests the bank is not burdened by an underproductive or excessively large branch network. Furthermore, recent trends show a slight reduction in branch count, pointing to an active strategy of optimizing its network by consolidating or closing less productive locations. While not a significant competitive advantage, this operational efficiency is a positive sign of disciplined management and supports the bank's ability to gather deposits without wasteful overhead.
Ameris Bancorp demonstrates strong profitability and operational efficiency, driven by a healthy return on assets of 1.65% and a very competitive efficiency ratio under 53%. The bank is effectively managing its interest rate risk, with minimal negative impact on its equity from securities holdings. However, a high loan-to-deposit ratio of 96% suggests a reliance on wholesale funding, and a lack of data on key credit quality metrics like nonperforming loans creates uncertainty. The investor takeaway is mixed; while the bank's current earnings are robust, its balance sheet carries liquidity and potential credit risks that warrant caution.
The bank's capital levels appear solid, but its high loan-to-deposit ratio of nearly `96%` is a significant liquidity concern.
Ameris Bancorp presents a mixed picture in terms of its financial buffers. On the capital front, the bank looks reasonably healthy with a tangible common equity to total assets ratio of 10.6% as of the last quarter. This is a solid cushion that is generally considered strong for a regional bank, providing a good buffer to absorb potential losses. However, critical metrics like the CET1 ratio are not provided, limiting a full regulatory capital assessment.
The primary weakness lies in its liquidity position. The bank's loan-to-deposit ratio was 95.9% ($21.04 billion in loans vs. $21.93 billion in deposits). A ratio above 90% is typically viewed as aggressive, suggesting the bank is lending out almost all of its core deposit funding and may have less flexibility to meet unexpected withdrawals without selling assets or seeking more expensive wholesale funding. Furthermore, crucial data on the level of uninsured deposits and the liquidity coverage available for them is missing. Given the recent focus on deposit stability in the banking sector, this lack of transparency combined with a high loan-to-deposit ratio is a material risk for investors.
The bank's loan loss reserves appear adequate, but a complete assessment of credit risk is impossible due to the lack of data on nonperforming loans and charge-offs.
Evaluating Ameris Bancorp's credit health is challenging due to significant gaps in the provided data. On the positive side, the bank's allowance for credit losses stood at $341.57 million, which covers 1.62% of its total gross loans. A reserve level above 1.5% is generally considered robust and suggests the bank is well-provisioned for expected losses. However, the provision for these losses has been volatile, dropping from $21.89 million in Q1 2025 to just $2.77 million in Q2 2025, which could signal either improving credit trends or management discretion.
The main issue is the absence of critical credit quality indicators. The data does not include figures for nonperforming loans (NPLs) or net charge-offs (NCOs). Without these metrics, investors cannot see how many loans are currently past due or what amount the bank is actually writing off as uncollectible. These are the most direct measures of a bank's underwriting discipline and the health of its loan book. Because this essential information is missing, it is impossible to confirm if the 1.62% reserve is truly sufficient, making it a significant blind spot and a key risk.
The bank shows exceptional management of interest rate risk in its securities portfolio, with accumulated losses having a negligible impact on its tangible equity.
Ameris Bancorp appears to be managing its balance sheet's sensitivity to interest rate changes effectively. The most compelling evidence is the minimal impact of Accumulated Other Comprehensive Income (AOCI) on its capital. In the latest quarter, the negative AOCI adjustment was just -$6.89 million, which represents only 0.24% of the bank's tangible common equity of $2.84 billion. This is a significant strength, as many other banks have seen their tangible book value erode by double-digit percentages due to unrealized losses on their bond portfolios. This suggests the bank either had a well-hedged or shorter-duration securities portfolio heading into the rate hiking cycle.
While specific data points such as the percentage of variable-rate loans or the average duration of the securities portfolio are not provided, the extremely low AOCI impact is a powerful proxy for prudent asset-liability management. It indicates that the bank is not overly exposed to fixed-rate assets that lose value when rates rise, preserving its capital base and providing greater financial flexibility. This strong performance in managing its securities portfolio is a key defensive characteristic for investors.
The bank is successfully growing its core earnings power, as shown by consistent year-over-year growth in net interest income.
Ameris Bancorp's core profitability from lending and funding activities appears healthy and is on a positive trajectory. The bank's net interest income (NII)—the difference between interest earned on loans and interest paid on deposits—grew by 9.39% year-over-year in the most recent quarter to $231.81 million, following 10.15% growth in the prior quarter. This steady growth is a strong signal that the bank is effectively managing its loan pricing and funding costs in the current interest rate environment.
While a precise Net Interest Margin (NIM) percentage is not provided, we can infer its health from the underlying components. Total interest income is growing faster than total interest expense, leading to the expansion of NII. An estimated NIM of around 3.5% (based on annualized NII divided by average assets) is strong compared to the industry average, which often hovers around 3.25%. This suggests the bank is earning a healthy spread on its assets, which is the fundamental driver of earnings for a community bank.
The bank operates with excellent efficiency, consistently keeping its noninterest expenses low relative to revenue, which is a clear strength that supports profitability.
Ameris Bancorp demonstrates strong discipline in managing its operating costs. The bank's efficiency ratio, which measures noninterest expense as a percentage of revenue, is a standout metric. In the most recent quarter, it was 51.6%, and it has consistently remained in the low 50s (52.8% in Q1 2025 and 53.1% for the full year 2024). For regional banks, an efficiency ratio below 60% is considered good, and a ratio below 55% is viewed as excellent. Ameris Bancorp is therefore a top performer in this category.
This low ratio indicates that the bank is highly effective at converting its revenue into profit without being weighed down by excessive overhead. The largest expense, salaries and benefits, represents about 57% of total noninterest expenses, which is a typical proportion. The ability to maintain such a lean cost structure provides a durable competitive advantage, allowing the bank to remain profitable even if revenue growth slows or credit costs rise. This operational excellence is a key positive for investors.
Ameris Bancorp's past performance presents a mixed picture for investors, characterized by significant balance sheet growth but inconsistent profitability. Over the last five years, the bank has substantially increased its loans and deposits, with total assets growing from $20.4 billion to $26.3 billion. However, this growth has not translated into stable earnings, with Earnings Per Share (EPS) showing significant volatility, such as a -22% drop in 2023 followed by a 33% rebound in 2024. Compared to peers like Synovus and Pinnacle Financial Partners, Ameris has a less consistent track record on profitability and efficiency. The investor takeaway is mixed; while the bank has successfully grown, its inconsistent execution on earnings and credit management introduces a higher level of risk.
The bank has achieved strong growth in both loans and deposits over the past five years, though its balance sheet management has shown some volatility.
Ameris has successfully expanded its balance sheet, a key indicator of market share gains. From fiscal year-end 2020 to 2024, total deposits grew from $16.96 billion to $21.72 billion, and net loans increased from $14.28 billion to $20.40 billion. This represents a compound annual growth rate of approximately 6.4% for deposits and 9.4% for loans, a solid performance for a regional bank.
However, a closer look at its balance sheet management reveals some inconsistency. The loan-to-deposit ratio, a measure of liquidity and lending aggressiveness, has been volatile. It rose from 85.4% in 2020 to a high of 102.0% in 2022, suggesting the bank was lending out more than it was taking in deposits, a riskier stance. It has since moderated to a more prudent 95.5% in 2024. While the overall growth is a clear strength, the fluctuations in key management ratios suggest a less steady strategic approach.
The bank has failed to show consistent improvement in efficiency and has experienced erratic growth in net interest income, indicating persistent challenges in cost control and margin management.
A bank's efficiency ratio measures how much it costs to generate a dollar of revenue; lower is better. While ABCB's efficiency ratio has been in the low-to-mid 50% range over the past five years, it remains worse than best-in-class peers like Pinnacle Financial (often below 50%). There has been no clear trend of improvement, suggesting ongoing issues with cost discipline, particularly as the bank integrates acquisitions. For instance, the ratio was 53.1% in 2020 and 53.1% again in 2024, showing no progress over the period.
More importantly, Net Interest Income (NII) growth has been highly unstable, swinging from 2.76% in 2021 to 22.23% in 2022 and back down to 1.69% in 2024. This volatility makes it difficult to assess the bank's core earning power and its ability to manage its interest-earning assets and liabilities effectively through different rate cycles. A lack of steady NII growth is a fundamental weakness for a traditional lender.
Earnings per share have been extremely volatile, with large swings from one year to the next that demonstrate a clear lack of consistent performance.
Ameris Bancorp's earnings track record is a significant concern. Over the last five fiscal years (2020-2024), diluted EPS followed an erratic path: $3.78, $5.43, $5.01, $3.90, and $5.21. The year-over-year growth figures highlight the turbulence: +43% in 2021, -8% in 2022, -22% in 2023, and +33% in 2024. This is not the profile of a company with a stable and predictable business model. The sharp decline in 2023, a year when many banks were benefiting from rising rates, is particularly troubling and points to company-specific issues, likely related to credit costs and non-interest expenses.
This inconsistency is also reflected in the bank's Return on Equity (ROE), which fell from a strong 13.43% in 2021 to a subpar 8.13% in 2023. Investors typically reward banks that can produce steady, reliable earnings growth. ABCB's historical performance fails this test and compares unfavorably to more stable peers like Synovus or Commerce Bancshares.
The bank's provision for credit losses has been highly volatile over the past five years, suggesting a reactive approach to managing credit risk rather than stable and predictable underwriting.
A key measure of a bank's underwriting discipline is the stability of its provision for credit losses. Ameris Bancorp's record here is poor. In FY2021, the bank recorded a negative provision of -$35.37 million, meaning it released reserves back into earnings. This was followed by a large spike in provisions to $142.66 million in FY2023, which heavily impacted that year's earnings. This rollercoaster pattern, from releasing reserves one year to aggressively building them two years later, suggests potential weaknesses in forecasting credit trends or inconsistency in underwriting.
While the current allowance for loan losses appears adequate at 1.63% of gross loans in 2024, the erratic journey to this level is a concern. Stable, high-performing banks typically exhibit much smoother and more predictable provisioning expenses through economic cycles. The sharp increase in 2023 raises questions about the quality of the loan book and management's foresight.
Ameris Bancorp has a conservative capital return policy, characterized by a very safe, slowly growing dividend and minimal, inconsistent share buybacks.
The bank's dividend history shows reliability but a lack of aggressive growth. The annual dividend per share remained flat at $0.60 from FY2020 through FY2023, before increasing modestly to $0.65 in FY2024. This conservatism is reflected in the very low payout ratio, which was just 11.56% in 2024. While this ensures the dividend is exceptionally well-covered by earnings, it also suggests that returning capital to shareholders is not a top priority compared to reinvesting for growth.
Share repurchases have been inconsistent and have not meaningfully reduced the share count over the last five years. The company repurchased $7.95 million of stock in 2024 and $20.35 million in 2023, which is minor relative to its market capitalization of over $4 billion. Overall, the capital return program is stable and safe but lacks the dynamism that dividend growth or value-focused investors might seek.
Ameris Bancorp's future growth outlook is mixed, heavily tied to the economic health of its Southeastern U.S. markets. Key tailwinds include strong regional demographics and the potential for value-accretive M&A to build scale. However, the bank faces significant headwinds from intense competition, persistent pressure on net interest margins due to rising funding costs, and an underdeveloped fee income portfolio that remains reliant on cyclical mortgage banking. Compared to peers, Ameris does not possess clear, differentiated growth drivers. The investor takeaway is cautious, as growth is likely to be modest and dependent on external factors rather than superior execution or competitive advantages.
While operating in the economically attractive Southeast, the bank faces intense competition and macroeconomic headwinds that are likely to limit its organic loan growth to modest, low-single-digit levels.
Ameris benefits from its geographic footprint in the Southeast, a region with favorable demographic and economic trends. However, this advantage is tempered by a challenging environment for loan growth industry-wide. Higher interest rates have cooled demand for both commercial and consumer credit. Management has not provided specific loan growth guidance that suggests it will significantly outpace the industry's expected low-single-digit growth rate. Without a unique lending niche or a clear competitive advantage to take market share, Ameris's loan growth will likely be tethered to the broader, slowing economy. This outlook does not support a compelling future growth story.
For a bank of its size, M&A is a crucial path to growth, yet Ameris has not presented a clear and active acquisition strategy, limiting a key avenue for shareholder value creation.
In the highly fragmented regional banking sector, disciplined M&A is one of the most effective tools for achieving scale, entering new markets, and driving earnings per share growth. While Ameris maintains adequate capital levels, with a CET1 ratio sufficient to meet regulatory requirements, it lacks a publicly articulated and compelling M&A strategy. There have been no recent transformative deals announced, nor has management provided a clear framework for how it intends to deploy capital for inorganic growth. Without acquisitions, the bank is reliant on low-single-digit organic growth in a competitive market. This passive stance on capital deployment is a significant weakness for a bank that needs scale to compete effectively with larger rivals.
The bank manages its branch footprint efficiently, but lacks a clear strategy for leveraging digital channels to drive future growth beyond simply keeping pace with industry standards.
Ameris Bancorp demonstrates operational competence in managing its physical presence, maintaining deposits per branch around $127 million, which is in line with peer averages. This indicates the bank is not burdened by unproductive real estate. However, a forward-looking growth strategy requires more than just efficiency; it requires a clear vision for digital customer acquisition and service. The bank has not articulated specific targets for digital user growth or a strategy to use its digital platform as a primary engine for gathering low-cost deposits or cross-selling products. In an era where digital capabilities are a key differentiator, simply maintaining the status quo is insufficient to drive outperformance. This lack of a clear, forward-thinking digital and branch optimization plan represents a missed opportunity for growth.
The bank's lack of a funding cost advantage puts its net interest margin (NIM) under significant pressure in a rising rate environment, with no clear offset from its asset portfolio.
Net interest margin is the primary driver of profitability for a bank like Ameris. The bank's future NIM outlook is challenged by its funding structure. Its cost of deposits is slightly above the peer average, indicating it lacks a low-cost funding moat. In the current environment, where competition for deposits is fierce, this disadvantage is magnified and will likely lead to further NIM compression as funding costs continue to rise. While the bank has a portion of its loan book in variable-rate assets, it has not provided guidance suggesting that asset repricing will be sufficient to overcome the rapid increase in deposit costs. This structural profitability challenge is a core weakness for future earnings growth.
The bank's earnings are overly exposed to interest rate fluctuations due to a below-average and cyclically-concentrated fee income stream, with no clear plan to address this structural weakness.
A diversified revenue stream is critical for stable earnings growth. Ameris's noninterest income is structurally weak, contributing only 22% of total revenue, below the peer average of 25%. More concerning is that a large portion of this fee income is derived from highly cyclical mortgage banking activities. The bank has not announced meaningful growth targets or strategic initiatives to build more stable fee businesses like wealth management or treasury services. This failure to diversify revenue leaves the bank's profitability highly dependent on net interest margin, a key vulnerability in the current macroeconomic environment. The lack of a strategic plan to grow stable, high-margin fee income is a major flaw in its future growth profile.
As of October 27, 2025, Ameris Bancorp (ABCB) appears to be fairly valued. With a stock price of $74.02, the bank trades at a Price-to-Earnings (P/E) ratio of 13.06 and a Price-to-Tangible Book Value (P/TBV) of approximately 1.78, which are in line with or slightly above sector averages. While the bank demonstrates solid profitability with a Return on Equity (ROE) of 11.35%, its stock is trading near its 52-week high, suggesting positive sentiment is already priced in. The investor takeaway is neutral; while the bank is a solid performer, the current price does not suggest a significant discount or margin of safety.
The stock trades at a significant premium to its tangible book value, which may limit the margin of safety for investors.
Price to Tangible Book Value (P/TBV) is a critical valuation metric for banks. As of the second quarter of 2025, Ameris Bancorp's tangible book value per share was $41.49. With a current stock price of $74.02, the P/TBV ratio is approximately 1.78x. A ratio significantly above 1.0x implies that investors are paying a premium over the stated value of the company's tangible assets. While a premium can be justified by high profitability (a strong Return on Tangible Common Equity or ROTCE), a P/TBV of 1.78x is on the higher side compared to historical industry averages, which are often closer to 1.5x. This elevated multiple suggests the market has already priced in a good deal of optimism, leaving less room for error or unforeseen challenges.
The company's high Return on Equity justifies its premium Price-to-Book valuation, as it demonstrates efficient use of shareholder capital to generate profits.
Ameris Bancorp's current Price-to-Book (P/B) ratio is 1.29, while its Return on Equity (ROE) in the most recent period was a strong 11.35%. Banks with higher ROE are expected to trade at higher P/B multiples because they generate more profit from each dollar of shareholder equity. The average ROE for community banks has historically been around 8.55%, and more recently, the average for regional banks has been around 8.3%. ABCB's ROE is clearly above these benchmarks. This superior profitability supports the premium P/B multiple and suggests that the valuation is aligned with the company's financial performance.
The stock's P/E ratio is reasonable when viewed in the context of its strong recent earnings growth, suggesting that the price is not overly expensive relative to its performance.
Ameris Bancorp's trailing P/E ratio is 13.06, which is slightly higher than the regional bank industry average of 12.65. However, this valuation is supported by impressive earnings per share (EPS) growth, which was 21.3% in the most recent quarter and 33.42% in the last fiscal year. A PEG ratio, which combines the P/E ratio and growth, is reported to be a low 0.36, indicating potential undervaluation if this growth rate is sustainable. While past growth is not a guarantee of future results, the current P/E multiple appears justified given the bank's demonstrated earnings power.
Ameris Bancorp provides a secure, albeit modest, dividend yield, supported by a low payout ratio and some share repurchase activity, indicating a commitment to shareholder returns.
The company offers a dividend yield of 1.08% based on an annual dividend of $0.80 per share. While this yield is not particularly high, its sustainability is a key strength. The dividend payout ratio is a conservative 14.11%, which means the dividend is well-covered by earnings and there is significant capacity for future increases. Furthermore, the company has demonstrated a willingness to return capital to shareholders through buybacks, as evidenced by a -0.32% change in shares outstanding in the most recent quarter. This combination of a safe dividend and share repurchases enhances the total return for shareholders.
Compared to its regional banking peers, Ameris Bancorp's valuation multiples are not indicative of a discount, suggesting the stock is fully priced relative to the sector.
On a relative basis, Ameris Bancorp does not appear cheap. Its TTM P/E ratio of 13.06 is slightly above the industry average of 12.65. Similarly, its Price-to-Tangible Book value of ~1.78x is likely at a premium to the sector median. The dividend yield of 1.08% is also below the average for regional banks, which stands at 2.29%. While the stock has shown strong 52-week price performance with a gain of over 18%, this momentum has pushed its valuation to a point where it no longer looks undervalued compared to its competitors.
The primary macroeconomic risk for Ameris Bancorp is the uncertainty surrounding interest rates and the overall economy. In a 'higher-for-longer' interest rate scenario, the bank's funding costs could remain elevated as it competes for customer deposits, compressing its net interest margin (NIM)—the key measure of its core profitability. Conversely, a sharp economic downturn forcing the Federal Reserve to cut rates could cause loan yields to fall faster than deposit costs, also hurting margins. As a regional bank concentrated in the Southeastern U.S., its health is directly tied to the economic vitality of that area, and a recession would inevitably lead to an increase in loan defaults and charge-offs.
From an industry perspective, competition and regulation are major headwinds. Ameris competes fiercely not only with large national banks but also with smaller community banks, credit unions, and non-bank fintech companies. This intense competition for deposits forces the bank to offer higher interest rates, while the battle for quality loans can lead to tighter spreads. Additionally, following the banking turmoil of 2023, regional banks of Ameris's size are under increased regulatory scrutiny. This translates into higher compliance costs, stricter capital and liquidity requirements, and potentially limits on future growth activities like mergers and acquisitions, which have been a part of the bank's past strategy.
Company-specific risks are centered on its balance sheet and growth model. Ameris has a substantial portfolio of commercial real estate (CRE) loans. While geographically diverse within its footprint, this asset class, particularly office and some retail properties, faces structural challenges from remote work and e-commerce. A downturn in the CRE market could lead to significant credit losses for the bank. The bank's historical reliance on acquisitions for growth also introduces integration risk; a poorly executed merger could disrupt operations and be a drag on earnings. Looking forward, Ameris must successfully navigate these portfolio concentrations and find paths for organic growth that are less dependent on the cyclical M&A market.
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