Ameris keeps earning through higher rates
- Q1 2026 diluted EPS rose to $1.63 from $1.27 a year earlier.
- Net interest margin, the spread between loan income and funding cost, reached 3.88% in Q1 2026.
- The bank bought back $115.7 million of common stock during the first quarter.
- Credit is still behaving, but annualized net charge-offs ticked up to 0.21%.
- The main debate is valuation, since the business is improving but the stock still needs a good entry price.
Margins are beating the worry
The bull case got stronger after Q1 2026. Ameris earned $1.63 per diluted share, up from $1.27 in Q1 2025. Its net interest margin rose to 3.88%, up 15 basis points from a year ago. Net interest margin means the gap between what the bank earns on loans and securities and what it pays for deposits and borrowings.
That matters because the main fear for many banks has been margin pressure. Ameris is showing the opposite so far. Full-year 2025 net interest margin was 3.79%, and Q1 2026 came in above that level. If the bank can hold margins near this range, earnings power should stay strong.
Capital return is also central to the case. Ameris repurchased $115.7 million of common stock in Q1 2026 after buying back $77.1 million during 2025. That can lift per-share value when done at sensible prices.
The bear case is not dead. Net charge-offs rose to 0.21% of average loans on an annualized basis, up from 0.18% a year earlier. That is still low, but real estate loans can sour fast if local markets weaken. The other issue is price: a better bank is not always a cheap stock.
Deposits set the speed limit
Ameris is a regional bank with a five-state Southeast footprint. Management says this region is expected to grow at 1.7 times the national average. The bank tries to turn that local growth into loans, deposits, and fee income.
The model starts with core deposits. These are checking, savings, and other customer funds that tend to stay with the bank. Low-cost deposits help Ameris fund loans at a lower cost, which supports its margin.
Ameris does not chase asset growth for its own sake. Management treats deposits as the governor on loan growth. If deposits do not grow, the bank has less room to add loans without paying up for funding.
The weak point is the loan book. The bank has meaningful real estate exposure, including commercial real estate. If Southeast property values fall, borrowers refinance less easily, or tenants weaken, credit costs could rise.
Loans, deposits, and fee lines
Core banking loans
This is the main engine. It includes commercial real estate and commercial and industrial lending, funded by deposits.
Core deposits
Deposits are the bank's raw material. A strong mix of low-cost deposits helps protect net interest margin.
Retail mortgage
Mortgage banking adds fee income and can help when home loan activity improves. Ameris reduced its mortgage servicing exposure in Q3 2024 by selling most Ginnie Mae mortgage servicing rights.
Warehouse lending
This line lends to mortgage companies for short periods while loans are being made and sold. It can be useful, but it is tied to mortgage market activity.
Equipment finance
Balboa Capital gives Ameris a way to lend to businesses that need equipment. It broadens the bank beyond traditional branch lending.
Premium finance
This business finances insurance premiums. It is smaller than core banking but adds another source of lending income.
Banking does most of the work
The mix uses Q1 2026 net income by division from Ameris' Form 10-Q. Banking supplied about four-fifths of profit, so the company is still mainly a traditional bank even with mortgage, warehouse, and premium finance lines.
What could break the case
Margin rollover
High impact · Medium oddsAmeris' current earnings strength depends on a wide spread between asset yields and funding costs. Management had previously warned that deposit pressure could pull margin lower. Q1 2026 pushed back on that worry, but it did not remove it.
Commercial real estate stress
High impact · Medium oddsAmeris has meaningful real estate lending exposure in the Southeast. Commercial real estate can weaken if rents fall, refinancing gets harder, or local job growth slows. A small rise in charge-offs can become a larger problem if property stress spreads.
Loan growth held back by CRE payoffs
Medium impact · Medium oddsManagement has said high commercial real estate payoffs moderated loan growth in prior periods. Payoffs can be healthy, but they also make it harder to grow the loan book. If new loans do not replace runoff, revenue growth may slow.
Tax law uncertainty
Medium impact · Medium oddsThe 2025 Form 10-K added a risk tied to the One Big Beautiful Bill Act, or OBBBA. Ameris said it was still evaluating the impact on its business and financial statements. The risk is not yet sized, which makes it an open question for 2026 earnings.
Buybacks at the wrong price
Medium impact · Low oddsBuybacks help shareholders most when the bank buys stock below fair value. Ameris has been aggressive, with $115.7 million repurchased in Q1 2026. If the stock is expensive, repurchases could add less value than investors expect.
In one breath
What does Ameris Bancorp do?
Ameris is a regional bank focused on the Southeast. It gathers deposits, makes loans, runs mortgage and warehouse lending lines, and earns fees from related banking services.
Why did the Ameris thesis improve in 2026?
Q1 2026 showed higher earnings, better net interest margin, and a large share buyback. Diluted EPS rose to $1.63, and net interest margin reached 3.88%.
What is the biggest risk for ABCB?
The biggest watch item is credit quality, especially in real estate loans. Net charge-offs are still low, but they rose to 0.21% on an annualized basis in Q1 2026.
Is Ameris mainly a mortgage company?
No. Mortgage is useful, but banking is the main profit driver. In Q1 2026, the Banking Division produced about 80% of net income by division.