Ameris: Margin Stability and a New Market — The Discipline of a Flat Yield Curve
Q2 2026 — Adjusted EPS $1.60, stable NIM 3.88%, Nashville entry, bond yield pops from TIPS, but deposit costs loom.
ABCB · Earnings Call · 2026-07-24
A Quarter of Core Strength
Ameris Bancorp rounded out the first half of 2026 on a strong note, delivering adjusted net income of $107.3 million ($1.60 per diluted share) and an adjusted return on tangible common equity above 14% — even as a $82.5 million litigation accrual weighed on reported results. Beyond the noise, the underlying story is one of disciplined execution: return on assets (adjusted) hit 1.53%, and the efficiency ratio improved 130 basis points year-over-year to 50.4%. The company continues to organically grow the balance sheet, with average earning assets up 8.5% annualized and loans up over 6% annualized. CEO Palmer Proctor framed it as a testament to the franchise: “Core fundamentals at Ameris remain strong in the second quarter... adjusted ROA of 1.53%, adjusted PPNR ROA of 2.24%.” — Palmer Proctor, CEO · 2026-07-24Margin Resilience: The TIPS Bump and the Deposit Overhang
Perhaps the most debated topic on the call was the net interest margin, which held at 3.88% — a number that stands out against a backdrop of rising funding costs. CFO Nicole Stokes explained the quarter's stability turned on a quirk: “We did have a bump of about 40 basis points in our bond yield, that really comes from, we have some TIPS, some inflation bonds... Prior bump in inflation caused us a bump in the bond yield there.” — Nicole Stokes, CFO · 2026-07-24 That one-time lift added roughly three basis points of margin, masking what would otherwise have been slight compression from deposit costs. Looking ahead, the team remains guarded, guiding to "a few basis points per quarter" of pressure as competition for deposits intensifies. That caution is well-founded. Deposits have been the bottleneck throughout the industry, and Ameris is no exception — though its mix is a strong defense. With deposit cost pressure increasingly evident, management is leaning on a 30% non-interest-bearing base to keep the margin from eroding. The bank's loan yields also remain resilient: production came on at 6.20% (core bank 6.39%), aided by payoffs at lower rates. The bond portfolio, now roughly 9-10% of earning assets, is also maturing into higher yields. Still, as Stokes noted: “We do see both loan and deposit pressure in our markets... probably a little bit stronger” — Nicole Stokes, CFO · 2026-07-24 on the deposit side. Net interest income ended the quarter at $244M, up 10% year-over-year despite the flat margin, reflecting balance-sheet growth.Funding Discipline and the Broader Disruption Theme
A quarter of margin resilience would not be complete without attention to the funding side. Brokered deposits rose $174 million during the quarter, but management was quick to frame it as seasonal backfill for public fund outflows, not a shift in strategy. "Because we do have such a small amount of brokered, we chose to go into some brokered to backfill and to not compete on some of those hot deposits," Stokes explained (component_hash 3468784014977641892). This ties directly to the market disruption that has swept the southeastern banking landscape — a theme Palmer Proctor has returned to repeatedly. Rather than chase rate-sensitive hot money, Ameris is leveraging its existing brand and relationships in high-growth markets like Nashville, where it just planted a flag with a new team. The consistency of this messaging is notable. In the April 2026 call, Nicole Stokes had already flagged the trend: “there's definitely that tailwind that was coming in on CDs has certainly slowed, which is feeding into my guidance” — Nicole Stokes, Chief Financial Officer · 2026-04-24. The bank's continued ability to grow non-interest-bearing deposits (up $33.9 million this quarter) is the crux of its margin defense.Nashville and the Return of a Growth Narrative
The other fresh item was the entry into Nashville. "We do not take lightly moving into a new market just for the sake of going into a strong growth market like Nashville," Proctor said (component_hash 1266662356618139984). "We were very pleased with the group that we brought on board." This is the first new market in memory for Ameris, a sign that it sees enough opportunity to invest selectively. The expansion fits within its Southeastern footprint, leveraging existing brand recognition while adding a high-growth metro. It also signals a preference for organic expansion over M&A — a stance reiterated throughout the call. Capital deployment remains centered on buybacks ($94 million year-to-date) and organic growth. The tangible book value per share rose to $45.10, and capital levels sit well above targets (CET1 ~12.8%). With the stock near its all-time high (though down 7.5% from July peak), management sounds comfortable being opportunistic but not aggressive."With our price being where it was, I certainly liked buying at $79 more so than today. I think the second quarter was probably a more normalized level if we continue to buy at all." — Nicole Stokes on the pace of buybacks.