Q2 2026 Ameris Bancorp Earnings Call

July 24, 2026

Speaker #1: Good day, and welcome to the Ameris Bank Q2 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone.

Speaker #1: To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Nicole Stokes.

Speaker #1: Chief Financial Officer, please go ahead.

Speaker #2: Great, thank you, Dave. And thank you to all who have joined our call today. During the call, we will be referencing the press release and the financial highlights that are available on the Investor Relations section of our website at amerisbank.com.

Nicole S. Stokes: Great. Thank you, Dave, thank you to all who have joined our call today. During the call, we will be referencing the press release and the financial highlights that are available on the investor relations section of our website at amerisbank.com. I'm joined today by Palmer Proctor, our CEO, and Doug Strange, our Chief Credit Officer. Palmer will begin with some opening comments, I will discuss the details of our financial results before we open up for Q&A. Before we begin, I'll remind you that our comments may include forward-looking statements. These statements are subject to risks and uncertainties. The actual results could vary materially. We list some of the factors that might cause results to differ in our press release and in our SEC filings, which are available on our website.

Nicole Stokes: Great. Thank you, Dave, thank you to all who have joined our call today. During the call, we will be referencing the press release and the financial highlights that are available on the investor relations section of our website at amerisbank.com. I'm joined today by Palmer Proctor, our CEO, and Doug Strange, our Chief Credit Officer. Palmer will begin with some opening comments, I will discuss the details of our financial results before we open up for Q&A. Before we begin, I'll remind you that our comments may include forward-looking statements. These statements are subject to risks and uncertainties. The actual results could vary materially. We list some of the factors that might cause results to differ in our press release and in our SEC filings, which are available on our website.

Speaker #2: I'm joined today by Palmer Proctor, our CEO, and Doug Strange, our Chief Credit Officer. Palmer will begin with some opening comments, and then I will discuss the details of our financial results.

Speaker #2: Before we open up for Q&A, I'll remind you that our comments may include forward-looking statements. These statements are subject to risks and uncertainties.

Speaker #2: The actual results could vary materially. We list some of the factors that might cause results to differ in our press release and in our SEC filings, which are available on our website.

Speaker #2: We do not assume any obligation to update any forward-looking statements as a result of new information early developments or otherwise, except as required by law.

Nicole S. Stokes: We do not assume any obligation to update any forward-looking statements as a result of new information, early developments, or otherwise, except as required by law. Also during the call, we will discuss certain non-GAAP financial measures in reference to the company's performance. You can see our reconciliation of these measures and GAAP financial measures in the appendix to our presentation. With that, I'll turn it over to Palmer.

Nicole Stokes: We do not assume any obligation to update any forward-looking statements as a result of new information, early developments, or otherwise, except as required by law. Also during the call, we will discuss certain non-GAAP financial measures in reference to the company's performance. You can see our reconciliation of these measures and GAAP financial measures in the appendix to our presentation. With that, I'll turn it over to Palmer.

Speaker #2: Also, during the call, we will discuss certain non-GAAP financial measures in reference to the company's performance. You can see our reconciliation of these measures to GAAP financial measures in the appendix to our presentation.

Speaker #2: And with that, I'll turn it over to Palmer.

Speaker #3: Thank you, Nicole. Good morning, everyone. I appreciate you taking the time to join our second quarter earnings call today. Core fundamentals at Ameris remain strong in the second quarter, highlighted by several key metrics.

H. Palmer Proctor Jr.: Thank you, Nicole. Good morning, everyone. I appreciate you taking the time to join our Q2 earnings call today. Core fundamentals at Ameris remain strong in Q2, highlighted by several key metrics. First, we achieved core profitability levels well ahead of the industry with adjusted ROA of 153, adjusted PPNROA of 224, and adjusted return on TCE of over 14%, even with our high capital levels. Second, we experienced profitable growth this quarter with average earning assets increasing 8.5% annualized and loans over 6% annualized. For H1 of the year, we've organically grown the balance sheet by almost $1 billion while improving our margin. Third, our balance sheet remains strong, funded with almost 50% checking accounts and over 11% tangible common equity. Finally, our continued expense focus kept our adjusted efficiency ratio at 50%.

Palmer Proctor: Thank you, Nicole. Good morning, everyone. I appreciate you taking the time to join our Q2 earnings call today. Core fundamentals at Ameris remain strong in Q2, highlighted by several key metrics. First, we achieved core profitability levels well ahead of the industry with adjusted ROA of 153, adjusted PPNROA of 224, and adjusted return on TCE of over 14%, even with our high capital levels. Second, we experienced profitable growth this quarter with average earning assets increasing 8.5% annualized and loans over 6% annualized. For H1 of the year, we've organically grown the balance sheet by almost $1 billion while improving our margin. Third, our balance sheet remains strong, funded with almost 50% checking accounts and over 11% tangible common equity. Finally, our continued expense focus kept our adjusted efficiency ratio at 50%.

Speaker #3: First, we achieved core profitability levels well ahead of the industry, with adjusted ROA of 1.53%, adjusted PP&R ROA of 2.24%, and adjusted return on TCE of over 14%, even with our high capital levels.

Speaker #3: Second, we experienced profitable growth this quarter, with average earning assets increasing 8.5% annualized and loans over 6% annualized. For the first six months of the year, we've organically grown the balance sheet by almost $1 billion, while improving our margin.

Speaker #3: Third, our balance sheet remains strong, funded with almost 50% checking accounts and over 11% tangible common equity. Finally, our continued expense focus kept our adjusted efficiency ratio at 50%.

Speaker #3: Year over year, we grew adjusted revenue by 6%, while keeping adjusted expense growth at just 3%, which highlights our ability to generate organic profitable growth and positive operating leverage.

H. Palmer Proctor Jr.: Year over year, we grew adjusted revenue by 6% while keeping adjusted expense growth at just 3%, which highlights our ability to generate organic, profitable growth and positive operating leverage. In addition to these positives, our loan production was $2.4 billion in Q2, which represents a 24% increase over Q2 last year, and our loan pipeline remained robust at $2.7 billion. On the deposit side, our average deposits grew 4.4% annualized for the quarter. While we saw ending balances down, it was related to some quarter-end customer movement and not related to any loss of relationships. Our focus continues to be on core granular deposits and relationship banking with our non-interest-bearing deposits remaining strong at 30% of total deposits. Reported expenses were impacted by an $82.5 million litigation accrual related to a jury verdict in an employment case in California.

Palmer Proctor: Year over year, we grew adjusted revenue by 6% while keeping adjusted expense growth at just 3%, which highlights our ability to generate organic, profitable growth and positive operating leverage. In addition to these positives, our loan production was $2.4 billion in Q2, which represents a 24% increase over Q2 last year, and our loan pipeline remained robust at $2.7 billion. On the deposit side, our average deposits grew 4.4% annualized for the quarter. While we saw ending balances down, it was related to some quarter-end customer movement and not related to any loss of relationships. Our focus continues to be on core granular deposits and relationship banking with our non-interest-bearing deposits remaining strong at 30% of total deposits. Reported expenses were impacted by an $82.5 million litigation accrual related to a jury verdict in an employment case in California.

Speaker #3: In addition to these positives, our loan production was 2.4 billion in the second quarter, which represents a 24% increase over the second quarter last year, and our loan pipeline remained robust at 2.7 billion.

Speaker #3: On the deposit side, our average deposits grew 4.4% annualized for the quarter. While we saw end-of-quarter balances down, it's related to some quarter-end customer movement and not related to any loss of relationships.

Speaker #3: Our focus continues to be on core granular deposits and relationship banking, with our non-interest-bearing deposits remaining strong at 30% of total deposits. Reported expenses were impacted by an $82.5 million litigation accrual related to a jury verdict and an employment case in California.

Speaker #3: Despite our plan to appeal, we accrued the full amount of the verdict, plus related costs, this quarter in accordance with appropriate accounting guidance. As this is ongoing litigation, we are unable to comment any further on that.

H. Palmer Proctor Jr.: Despite our plan to appeal, we accrued the full amount of the verdict plus related costs in Q2 in accordance with appropriate accounting guidance. With this being ongoing litigation, we are unable to comment any further on that. Despite this accrual, we had positive earnings, and we grew tangible book value per share in Q2 due to our strong core profitability. Moving on, we continued returning capital in Q2 by repurchasing $19 million of our common stock, which brings year-to-date buybacks to approximately $94 million, or roughly 1.7% of our shares outstanding. Our capital levels remain robust, with CET1 at almost 13%, and our TCE ratio above 11%. These capital levels position us well for future growth in our attractive Southeastern markets. Credit quality was stable and clean in Q2. Our 162 reserve was unchanged, and both net charge-offs and NPAs were stable at very low levels.

Palmer Proctor: Despite our plan to appeal, we accrued the full amount of the verdict plus related costs in Q2 in accordance with appropriate accounting guidance. With this being ongoing litigation, we are unable to comment any further on that. Despite this accrual, we had positive earnings, and we grew tangible book value per share in Q2 due to our strong core profitability. Moving on, we continued returning capital in Q2 by repurchasing $19 million of our common stock, which brings year-to-date buybacks to approximately $94 million, or roughly 1.7% of our shares outstanding. Our capital levels remain robust, with CET1 at almost 13%, and our TCE ratio above 11%. These capital levels position us well for future growth in our attractive Southeastern markets. Credit quality was stable and clean in Q2. Our 162 reserve was unchanged, and both net charge-offs and NPAs were stable at very low levels.

Speaker #3: Despite this accrual, we had positive earnings, and we grew tangible book value per share in the quarter due to our strong core profitability. Moving on, we continued returning capital in the quarter by repurchasing 19 million of our common stock, which brings year-to-date buybacks to approximately 94 million, or roughly 1.7% of our shares, outstanding.

Speaker #3: Our capital levels remained robust, with CET-1 at almost 13%, and our TCE ratio above 11%. These capital levels position us well for future growth in our attractive Southeastern markets.

Speaker #3: Credit quality was stable and clean in the quarter. Our $162 million reserve was unchanged, and both net charge-offs and NPAs were stable at very low levels.

Speaker #3: Overall, our core fundamentals remained strong in the second quarter as we continue to grow our Southeastern footprint. As we recently announced, we are also excited to be expanding Ameris's footprint into the attractive Nashville, Tennessee market, which should be additive to our longer-term organic growth profile.

H. Palmer Proctor Jr.: Overall, our core fundamentals remained strong in Q2 as we continue to grow our Southeastern footprint. As we recently announced, we are also excited to be expanding Ameris' footprint into the attractive Nashville, Tennessee market, which should be additive to our longer-term organic growth profile. We're glad to have found a solid team of Nashville-focused bankers that have joined our growing franchise. I'll stop there and turn it over to Nicole to discuss our financial results in more detail.

Palmer Proctor: Overall, our core fundamentals remained strong in Q2 as we continue to grow our Southeastern footprint. As we recently announced, we are also excited to be expanding Ameris' footprint into the attractive Nashville, Tennessee market, which should be additive to our longer-term organic growth profile. We're glad to have found a solid team of Nashville-focused bankers that have joined our growing franchise. I'll stop there and turn it over to Nicole to discuss our financial results in more detail.

Speaker #3: And we're glad to have found a solid team of Nashville-focused bankers that have joined our growing franchise. I'll stop there and turn it over to Nicole to discuss our financial results in more detail.

Speaker #2: Great. Thank you, Palmer. We reported net income of 51.4 million, or 77 cents per diluted share in the second quarter, and adjusted net income of 107.3 million, or $1.60 per diluted share, when you exclude the litigation accrual and the vis-à-vis and Bowie gains.

Nicole S. Stokes: Great. Thank you, Palmer. We reported net income of $51.4 million, or $0.77 per diluted share in Q2, and adjusted net income of $107.3 million, or $1.60 per diluted share when you exclude the litigation accrual and the Visa B and BOLI gains. Our adjusted return on assets was 153, our adjusted PPNR ROA was 224, and our adjusted return on tangible common equity was 14.08 for the quarter. Tangible book value increased to $45.10. Our net interest margin was stable this quarter at 388, with a 4 basis point positive impact from higher asset yields exactly offsetting the increase in funding costs. This margin is well above peer levels and is 100% core without any purchase accounting accretion from M&A. Our asset liability sensitive remains effectively neutral, meaning any future interest rate movements likely have minimal impact on our spread income and margin.

Nicole Stokes: Great. Thank you, Palmer. We reported net income of $51.4 million, or $0.77 per diluted share in Q2, and adjusted net income of $107.3 million, or $1.60 per diluted share when you exclude the litigation accrual and the Visa B and BOLI gains. Our adjusted return on assets was 153, our adjusted PPNR ROA was 224, and our adjusted return on tangible common equity was 14.08 for the quarter. Tangible book value increased to $45.10. Our net interest margin was stable this quarter at 388, with a 4 basis point positive impact from higher asset yields exactly offsetting the increase in funding costs. This margin is well above peer levels and is 100% core without any purchase accounting accretion from M&A. Our asset liability sensitive remains effectively neutral, meaning any future interest rate movements likely have minimal impact on our spread income and margin.

Speaker #2: Our adjusted return on assets was 1.53%. Our adjusted PP&R ROA was 2.24%, and our adjusted return on tangible common equity was 14.08% for the quarter.

Speaker #2: Tangible book value increased to was stable this quarter at 388, with a 4 basis point positive impact from higher asset yields, exactly offsetting the increase in funding costs.

Speaker #2: This margin is well above peer levels and is 100% core, without any purchase accounting accretion from M&A. Our asset-liability sensitivity remains effectively neutral, meaning any future interest rate movements likely have minimal impact on our spread income and margin.

Speaker #2: As I've previously said, we do anticipate some slight margin compression over the next few quarters due to higher deposit costs to fund our balance sheet growth.

Nicole S. Stokes: As I previously said, we do anticipate some slight margin compression over the next few quarters due to higher deposit costs to fund our balance sheet growth. We believe the margin could decline just a few basis points per quarter over the next couple quarters. We will continue to focus on growth in net interest income or growth in NII through our continued earning asset growth. Adjusted non-interest income decreased $4.6 million this quarter, mostly from mortgage related revenue, and our adjusted non-interest expense increased about $3.1 million, and that was really driven by two things, higher legal costs and charitable donations. Our adjusted efficiency ratio in the quarter improved over 130 basis points, from 50.4% this year from 51.7% last year.

Nicole Stokes: As I previously said, we do anticipate some slight margin compression over the next few quarters due to higher deposit costs to fund our balance sheet growth. We believe the margin could decline just a few basis points per quarter over the next couple quarters. We will continue to focus on growth in net interest income or growth in NII through our continued earning asset growth. Adjusted non-interest income decreased $4.6 million this quarter, mostly from mortgage related revenue, and our adjusted non-interest expense increased about $3.1 million, and that was really driven by two things, higher legal costs and charitable donations. Our adjusted efficiency ratio in the quarter improved over 130 basis points, from 50.4% this year from 51.7% last year.

Speaker #2: We believe the margin could decline just a few basis points per quarter, over the next couple quarters. But we will continue to focus on growth in net interest income or growth in NII through our continued earning asset growth.

Speaker #2: Adjusted non-interest income decreased $4.6 million this quarter, mostly from mortgage-related revenue. And our adjusted non-interest expense increased about $3.1 million, and that was really driven by two things: higher legal costs and charitable donations.

Speaker #2: Our adjusted efficiency ratio in the quarter improved over 130 basis points, to 50.4% this year from 51.7% last year. This was driven by positive operating leverage, as year over year, adjusted quarterly revenue was up $17.4 million, or 6%, compared to adjusted expense growth at just $4.8 million, or 3%.

Nicole S. Stokes: This was driven by positive operating leverage as year-over-year adjusted quarterly revenue was $17.4 million or 6%, compared to adjusted expense growth of just $4.8 million or 3%. I continue to anticipate our efficiency ratio to be slightly above 50% for the rest of the year. During Q2, we recorded $17.3 million of provision expense. Annualized net charge-offs decreased to 20 basis points. We continue to anticipate net charge-offs in that 20 to 25 basis point range for the remainder of 2026, and our reserve remains strong at 162, the same as last quarter. Overall, asset quality trends remain strong, with Non-Performing Assets and net charge-offs relatively stable in the quarter, both at low levels. Looking at our balance sheet, we ended the quarter with $28.5 billion of total assets, compared to $28.1 billion last quarter.

Nicole Stokes: This was driven by positive operating leverage as year-over-year adjusted quarterly revenue was $17.4 million or 6%, compared to adjusted expense growth of just $4.8 million or 3%. I continue to anticipate our efficiency ratio to be slightly above 50% for the rest of the year. During Q2, we recorded $17.3 million of provision expense. Annualized net charge-offs decreased to 20 basis points. We continue to anticipate net charge-offs in that 20 to 25 basis point range for the remainder of 2026, and our reserve remains strong at 162, the same as last quarter. Overall, asset quality trends remain strong, with Non-Performing Assets and net charge-offs relatively stable in the quarter, both at low levels. Looking at our balance sheet, we ended the quarter with $28.5 billion of total assets, compared to $28.1 billion last quarter.

Speaker #2: I continue to anticipate our efficiency ratio to be slightly above 50% for the rest of the year. During the second quarter, we recorded 17.3 million of provision expense.

Speaker #2: Annualized net charge-offs decreased to 20 basis points. We continue to anticipate net charge-offs in that 20 to 25 basis point range for the remainder of 2026, and our reserve remained strong at 1.62%, the same as last quarter.

Speaker #2: Overall, asset quality trends remained strong, with non-performing assets and net charge-offs relatively stable in the quarter, both at low levels. Looking at our balance sheet, we ended the quarter with $28.5 billion of total assets, compared to $28.1 billion last quarter.

Speaker #2: Our average earning assets grew $544.6 million, or 8.5% annualized, as we grew both loans and the bond portfolio. Loans grew $349.9 million, or about 6% annualized, and our loan production and pipelines remained strong.

Nicole S. Stokes: Our average earning assets grew $544.6 million or 8.5% annualized as we grew both loans and the bond portfolio. Loans grew $349.9 million or about 6% annualized, and our loan production and pipelines remain strong. Loan growth was diversified through C&I, including premium finance, mortgage warehouse, and equipment finance, as well as construction and owner-occupied CRE. As Palmer mentioned, we saw some end-of-quarter deposit movement that left ending deposits down about $49 million, although our quarterly average balance grew over $240 million or about 4.4% annualized. Total non-interest bearing deposits grew during the quarter, it grew by $33.9 million, and that helped improve our NIB to total deposit ratio to 30% from 29.8% last quarter. We project loan and deposit growth in the mid-single digit range for the year, and we expect that longer term deposit growth will be the governor of our loan growth.

Nicole Stokes: Our average earning assets grew $544.6 million or 8.5% annualized as we grew both loans and the bond portfolio. Loans grew $349.9 million or about 6% annualized, and our loan production and pipelines remain strong. Loan growth was diversified through C&I, including premium finance, mortgage warehouse, and equipment finance, as well as construction and owner-occupied CRE. As Palmer mentioned, we saw some end-of-quarter deposit movement that left ending deposits down about $49 million, although our quarterly average balance grew over $240 million or about 4.4% annualized. Total non-interest bearing deposits grew during the quarter, it grew by $33.9 million, and that helped improve our NIB to total deposit ratio to 30% from 29.8% last quarter. We project loan and deposit growth in the mid-single digit range for the year, and we expect that longer term deposit growth will be the governor of our loan growth.

Speaker #2: Loan growth was diversified through C&I, including premium finance, mortgage warehouse, and equipment finance, as well as construction and owner-occupied CRE. As Palmer mentioned, we saw some end-of-quarter deposit movement that left ending deposits down about $49 million, although our quarterly average balance grew over $240 million, or about 4.4% annualized.

Speaker #2: And total non-interest-bearing deposits grew during the quarter, grew by 33.9 million, and that helped improve our NIB to total deposit ratio to 30% from 29.8% last quarter.

Speaker #2: We project loan and deposit growth in the mid-single-digit range for the year, and we expect that longer-term deposit growth will be the governor of our loan growth.

Speaker #2: Capital levels finished the second quarter strong, with TCE at 11% and CET-1 at 12.8%. We were again active in our share buyback during the quarter.

Nicole S. Stokes: Capital levels finished Q2 strong with TCE at 11%, CET1 at 12.8%. We were again active in our share buyback during the quarter. We repurchased about 226,600 shares at an average price of $83.71 per share, that brings our year to date share buybacks to $93.8 million, or about 1.7% of the company, and that was at an average price of $79.72. Our remaining share purchase authorization was $65.4 million at the end of Q2. With that, I'm going to wrap it up and turn the call back over to Dave for any questions from the group.

Nicole Stokes: Capital levels finished Q2 strong with TCE at 11%, CET1 at 12.8%. We were again active in our share buyback during the quarter. We repurchased about 226,600 shares at an average price of $83.71 per share, that brings our year to date share buybacks to $93.8 million, or about 1.7% of the company, and that was at an average price of $79.72. Our remaining share purchase authorization was $65.4 million at the end of Q2. With that, I'm going to wrap it up and turn the call back over to Dave for any questions from the group.

Speaker #2: We repurchased about 226,600 shares, at an average price of $83.71 per share, and that brings our year-to-date share buybacks to $93.8 million, or about 1.7 of the company, 1.7% of the company, and that was at an average price of $79.72.

Speaker #2: Our remaining share purchase authorization was $65.4 million at the end of the second quarter. And with that, I'm going to wrap it up and turn the call back over to Dave for any questions from the group.

Speaker #1: We will begin the question-and-answer session. To ask a question, you may press star, then 1 on your touchstone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

David Brown: We will begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Catherine Mealor with KBW. Please go ahead.

Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. Our first question comes from Catherine Miller with KBW.

David Brown: If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Catherine Mealor with KBW. Please go ahead.

Speaker #1: Please go ahead.

Speaker #2: Thanks. Good morning.

Catherine Mealor: Thanks. Good morning.

Speaker #3: Good morning.

H. Palmer Proctor Jr.: Morning.

Palmer Proctor: Morning.

Speaker #2: I wanted to start just with the margin. It looks like the deposit costs were up just a little bit, and that was offset by asset yields.

Catherine Mealor: I wanted to start just with the margin. It looks like the deposit costs were up just a little bit, and that was offset by asset yields. If we look into the asset yields, it looks like a lot of that came from the bond portfolio, and was just curious if you can speak to what drove that. Is this higher level of bond yield a good run rate, or is this something that going to pull back in the coming quarters? Thanks.

Speaker #2: But if we look into the asset yields, it looks like a lot of that came from the bond portfolio. We're just curious if you can speak to what drove that, and is this higher level of bond yields a good run rate, or is that going to pull back in the coming quarters?

Speaker #2: Thanks.

Speaker #4: Great. Good morning, Catherine. Thank you. We did have a bump of about 40 basis points in our bond yield, and that really comes from we have some tips, some inflation bonds, and there's about a quarter delay in that.

Nicole S. Stokes: Great. Good morning, Catherine. Thank you.

Nicole Stokes: Great. Good morning, Catherine. Thank you.

Catherine Mealor: Good morning.

Nicole S. Stokes: 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, and because there's about a quarter delay in that. Prior bump in inflation caused us a bump in the bond yield there. We also did swap out some bonds and picked up a little bit there. That bump in because of that inflation was about 3 basis points of margin. Margin would've actually declined had we not had that. The bond yield should come back down just a little bit, going forward.

Nicole Stokes: 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, and because there's about a quarter delay in that. Prior bump in inflation caused us a bump in the bond yield there. We also did swap out some bonds and picked up a little bit there. That bump in because of that inflation was about 3 basis points of margin. Margin would've actually declined had we not had that. The bond yield should come back down just a little bit, going forward.

Speaker #4: So, prior bump in inflation caused us a bump in the bond yield there. But then we also did swap out some bonds and picked up a little bit there.

Speaker #4: So, that bump in because of that inflation was about 3 basis points of margin. Margin would have actually declined had we not had that.

Speaker #4: So the yields—the bond yields—should come back down just a little bit going forward.

Speaker #2: Okay, great. And as I look at loan yields, that was down just 1 basis point, so it's been very steady. As you think about where new loan pricing is coming, do you feel like there's some upward momentum in your loan yields in the back half of the year?

Catherine Mealor: Okay, great. As I look at loan yields, that was down just one basis point, so it's been very steady. As you think about where new loan pricing is coming, do you feel like there's some upward momentum in your loan yields in the back half of the year?

Speaker #2: Or are we just more steady at this level?

Nicole S. Stokes: You know.

Nicole Stokes: You know.

Catherine Mealor: steady at this level?

Speaker #4: Yeah. So when we look at our loan production, and it's interesting because we did have some elevated CRE payoffs and so a good data point there is the CRE, the payoffs had about a weighted average rate of about 5.04.

Nicole S. Stokes: Yeah. When we look at our loan production, it's interesting because we did have some elevated CRE payoffs. A good data point there is the CRE, the payoffs had about a weighted average rate of about 5.04. You compare that to our total company production this quarter of 6.20. If you look at just the core bank, kind of take out the premium finance, the mortgage, SBA, and equipment finance, the core bank came on at 6.39 for the quarter. We definitely saw some good kind of the lower rate coming off and then the newer stuff coming in higher. That certainly helped. We've kind of seen that trend now for a couple of quarters.

Nicole Stokes: Yeah. When we look at our loan production, it's interesting because we did have some elevated CRE payoffs. A good data point there is the CRE, the payoffs had about a weighted average rate of about 5.04. You compare that to our total company production this quarter of 6.20. If you look at just the core bank, kind of take out the premium finance, the mortgage, SBA, and equipment finance, the core bank came on at 6.39 for the quarter. We definitely saw some good kind of the lower rate coming off and then the newer stuff coming in higher. That certainly helped. We've kind of seen that trend now for a couple of quarters.

Speaker #4: And you compare that to our total company production this quarter of 620. And if you look at just the core bank—kind of take out the premium finance, the mortgage, and SBA, and equipment finance—the core bank came in at 639 for the quarter.

Speaker #4: So we definitely saw some good, kind of the lower rate coming off, and then the newer stuff coming in higher. So that certainly helped.

Speaker #4: And we've kind of seen that trend now for a couple quarters.

Speaker #2: Okay, great. Thank you so much.

Catherine Mealor: Okay, great. Thank you so much.

Speaker #1: And the next question comes from Christopher Marinak with Breen Capital. Please go ahead.

David Brown: The next question comes from Christopher Marinac with Brean Capital. Please go ahead.

Speaker #3: Hey, thanks. Good reserve and losses, and kind of how we should think of this as well as kind of managing capital. So, I think it's 25 quarters since you adopted CECL, so we've had great experience for many, many years now on losses.

Christopher Marinac: Hey, thanks. Good morning. Wanted to ask about the reserve and losses and kind of how we should think of this, as well as kind of managing capital. I think it's 25 quarters since you adopted CECL. You've had great experience for many, many years now on losses. Do you look at the reserves kind of combined with capital as you kind of manage strategic ideas, buybacks, et cetera? Do you see any possibility to look differently at the reserve as time passes?

David Brown: Hey, thanks. Good morning. Wanted to ask about the reserve and losses and kind of how we should think of this, as well as kind of managing capital. I think it's 25 quarters since you adopted CECL. You've had great experience for many, many years now on losses. Do you look at the reserves kind of combined with capital as you kind of manage strategic ideas, buybacks, et cetera? Do you see any possibility to look differently at the reserve as time passes?

Speaker #3: Do you look at the reserves kind of combined with capital as you manage strategic ideas, buybacks, etc.? And do you see any possibility to look differently at the reserve as time passes?

Speaker #5: I'm curious to say, this is Doug. The reserve—we continue to be model-driven with Moody's, and if you look, the model, we've primarily gone to a 50/50 weighting.

H. Palmer Proctor Jr.: Chris, hey, this is Doug. The reserve, we continue to be model driven with Moody's. If you look at the model, we've primarily gone to a 50/50 weighting. We did go to 60/40 with the S2 last quarter with the war breaking out. We've kind of returned to that stride of 50/50. As a result of that, we've kind of maintained that 162 ratio, which is among top of peer if you add the unfunded is 186, which gives us about almost 9-year coverage on the net charge-offs.

Doug D. Strange: Chris, hey, this is Doug. The reserve, we continue to be model driven with Moody's. If you look at the model, we've primarily gone to a 50/50 weighting. We did go to 60/40 with the S2 last quarter with the war breaking out. We've kind of returned to that stride of 50/50. As a result of that, we've kind of maintained that 162 ratio, which is among top of peer if you add the unfunded is 186, which gives us about almost 9-year coverage on the net charge-offs.

Speaker #5: We did go to 60/40 with the S2 last quarter with the war breaking out, but we've kind of returned to that stride of 50/50.

Speaker #5: And as a result of that, we've kind of maintained that 1.62% ratio, which is among the top of the tier. If you add the unfunded, it's 1.86%, which gives us about almost 9-year coverage on the net charge-offs.

Speaker #3: Okay. And just given the level of criticize being somewhat stable again, should we think about these kind of low 20s charge-off rates still being sustainable?

Christopher Marinac: Okay. Just given the level of criticized being somewhat stable again, should we think about these low 20s charge-off rates still being sustainable?

Doug D. Strange: Okay. Just given the level of criticized being somewhat stable again, should we think about these low 20s charge-off rates still being sustainable?

Speaker #5: Yeah, I'll reiterate what Nicole touched on in her comments. For the year, we are providing guidance of 20 to 25 basis points.

Doug D. Strange: Yeah, I'll reiterate what Nicole touched on in her comments. For the year, we are providing guidance of 20 to 25 basis points.

Speaker #3: Okay. But even beyond this year, that still sounds like there's no reason to change that.

Christopher Marinac: Okay. Even beyond this year, it still sounds like there's no reason to change that.

Doug D. Strange: Okay. Even beyond this year, it still sounds like there's no reason to change that.

Speaker #5: Correct.

Doug D. Strange: Correct.

Christopher Marinac: Correct.

Speaker #3: Okay. And then, Nicole, should the buyback just be ongoing much as you have been? Is there any reason to think differently in terms of the pace or percentage of earnings that you redeploy?

Christopher Marinac: Okay. Nicole, should the buyback just be ongoing much as you have been? Is there any reason to think differently in terms of pace or percentage of earnings that you redeploy?

Doug D. Strange: Okay. Nicole, should the buyback just be ongoing much as you have been? Is there any reason to think differently in terms of pace or percentage of earnings that you redeploy?

Nicole S. Stokes: Chris, one of the things that we're really pleased with is that so far, this year, what we've bought back was at $79.72. I think the buyback, there's still definitely an option for the buyback. With our price being where it was, I certainly liked buying at $79 more so than today. I think we also are accreting capital and growing into capital. Even with our growth and the way the quarter came out, we still have really strong capital. I think we have it in our pocket, but I don't think you're going to see as aggressive as what you saw in the Q1. I think the Q2 was probably a more normalized level if we continue to buy at all.

Nicole Stokes: Chris, one of the things that we're really pleased with is that so far, this year, what we've bought back was at $79.72. I think the buyback, there's still definitely an option for the buyback. With our price being where it was, I certainly liked buying at $79 more so than today. I think we also are accreting capital and growing into capital. Even with our growth and the way the quarter came out, we still have really strong capital. I think we have it in our pocket, but I don't think you're going to see as aggressive as what you saw in the Q1. I think the Q2 was probably a more normalized level if we continue to buy at all.

Speaker #4: Chris, one of the things that we're really pleased with is that so far this year, what we've bought back was at $79.72. So I think the buyback—there's still definitely an option for the buyback.

Speaker #4: But with our price being where it was, I certainly liked buying at $79, more so than today. But I think we are also accreting capital and growing into capital, and even with our growth and the way the quarter came out, we still have really strong capital.

Speaker #4: So I think we haven't in our pocket, but I don't think you're going to see as aggressive it was what you saw in the first quarter.

Speaker #4: I think the second quarter was probably a more normalized level, if we continue to buy it all.

Speaker #3: Yeah. But we'll just remain opportunistic with that. Got it. Okay. And then last one for me is just about Nashville. I'm just curious how we should think of Nashville as an opportunity relative to many years of going into the Carolinas and other markets for Ameris.

H. Palmer Proctor Jr.: Yeah, we'll just remain opportunistic with that.

Palmer Proctor: Yeah, we'll just remain opportunistic with that.

Christopher Marinac: Got it. Okay. Last one for me is just about Nashville. I'm just curious how we should think of Nashville as an opportunity relative to many years of going into the Carolinas and other markets for Ameris.

Palmer Proctor: Got it. Okay. Last one for me is just about Nashville. I'm just curious how we should think of Nashville as an opportunity relative to many years of going into the Carolinas and other markets for Ameris.

Speaker #5: Yeah. It's clearly an emerging opportunity for us. But we do not take lightly moving into a new market just for the sake of going into a strong growth market like Nashville.

H. Palmer Proctor Jr.: Yeah, it's clearly an emerging opportunity for us. We do not take lightly moving into a new market just for the sake of going into a strong growth market like Nashville. We like to find talent, and we were very pleased with the group that we brought on board, and that's really what encouraged us to make the move. I think we've got high expectations just given the market and given the level of confidence we have in this new team. We're looking forward to continuing to grow in that market or beginning to grow in that market and more to come on that as we move forward.

Palmer Proctor: Yeah, it's clearly an emerging opportunity for us. We do not take lightly moving into a new market just for the sake of going into a strong growth market like Nashville. We like to find talent, and we were very pleased with the group that we brought on board, and that's really what encouraged us to make the move. I think we've got high expectations just given the market and given the level of confidence we have in this new team. We're looking forward to continuing to grow in that market or beginning to grow in that market and more to come on that as we move forward.

Speaker #5: We like to find talent. And we were very pleased with the group that we brought on board. And that's really what encouraged us to make the move.

Speaker #5: So, I think we've got high expectations, just given the market and given the level of confidence we have in this new team. So we're looking forward to continuing to grow in that market, or beginning to grow in that market, and more to come on that as we move forward.

Speaker #3: Very well. Thank you all for taking our questions.

Christopher Marinac: Very well. Thank you all for taking our questions.

Palmer Proctor: Very well. Thank you all for taking our questions.

Speaker #5: You bet.

H. Palmer Proctor Jr.: You bet.

Palmer Proctor: You bet.

Speaker #1: And the next question comes from Jacob Morton with Stevens. Please go ahead.

David Brown: The next question comes from Jake Morton with Stephens. Please go ahead.

Operator: The next question comes from Jake Morton with Stephens. Please go ahead.

Speaker #6: Hey, good morning. This is Jacob Morton on for Russell Gunther. I just want to start good morning. I wanted to start out on the loan growth.

Jake Morton: Hey, good morning. This is Jake Morton on for Russell Gunther.

H. Palmer Proctor Jr.: Good morning.

Nicole Stokes: Good morning.

Jake Morton: Good morning. I wanted to start out on the loan growth. I hear you with the mid-single-digit guide. I am just wondering if you could discuss the outlook from an asset class and geography mix perspective for the H2. Thank you.

Speaker #6: I hear you with the mid-single-digit guide. I'm just wondering if you could discuss the outlook from an asset class and geography-mixed perspective. For the second half.

Speaker #6: Thank you.

Speaker #5: Yeah. We are probably more encouraged now than we've been in a long time in terms of the outlook for growth, and that's really across all our verticals.

H. Palmer Proctor Jr.: Yeah. We are probably more encouraged now than we've been in long-term in terms of the outlook for growth. That's really across all our verticals. When you look at the different lines of business, and more importantly, when you look at the pipelines, they continue to grow. I think you're seeing some of that growth in the industry this quarter, but I think it will continue right now. That's across our entire southeastern footprint. There's not any one area that's surging more than the other. It's been very consistent. In terms of the geographics of it's throughout every state we have. That's very encouraging for us to see. I would expect to see, we feel very confident in our mid-single-digit estimates there in terms of growth.

Palmer Proctor: Yeah. We are probably more encouraged now than we've been in long-term in terms of the outlook for growth. That's really across all our verticals. When you look at the different lines of business, and more importantly, when you look at the pipelines, they continue to grow. I think you're seeing some of that growth in the industry this quarter, but I think it will continue right now. That's across our entire southeastern footprint. There's not any one area that's surging more than the other. It's been very consistent. In terms of the geographics of it's throughout every state we have. That's very encouraging for us to see. I would expect to see, we feel very confident in our mid-single-digit estimates there in terms of growth.

Speaker #5: So, when you look at the different lines of business, and more importantly, when you look at the pipelines, they continue to grow. I think you're seeing some of that growth in the industry this quarter.

Speaker #5: But I think it will continue. Right now, and that's across our entire Southeastern footprint. So there's not any one area that's surging more than the other.

Speaker #5: It's been very consistent. And in terms of the geographics of it, it's throughout every state we have. So that's very encouraging for us to see.

Speaker #5: So I would expect to see—we feel very confident in our mid-single-digit estimates there in terms of growth. But remember, too, that we're always going to have the governor, in terms of making sure that our funding is in place to accommodate that growth.

H. Palmer Proctor Jr.: Remember too, that we're always going to have the governor in terms of making sure that our funding is in place to accommodate that growth.

Palmer Proctor: Remember too, that we're always going to have the governor in terms of making sure that our funding is in place to accommodate that growth.

Speaker #6: Got it. Thank you. I appreciate that. And then on broker deposits, we saw an increase of 174 million during the quarter. And I see you're now at 6.7% of total deposits.

Jake Morton: Got it. Thank you. I appreciate that. Then on broker deposits, we saw an increase of $174 million during the quarter, and I see you're now at 6.7% of total deposits. I'm just wondering if we're going to see more increases like this and it will remain a larger part of the funding mix, or was this more really to offset the seasonal public fund trends?

Speaker #6: I'm just wondering if we're going to see more increases like this and remain a larger part of the funding mix, or was this more related to offset the seasonal public fund trends?

Speaker #4: Yeah, you're exactly right. It's really an offset of the seasonal public funds. It's interesting that what we're seeing, competition-wise in our market, is that we're seeing some of our peers actually pricing above brokered costs.

H. Palmer Proctor Jr.: Yeah, you're exactly right. It's really an offset of the seasonal public funds. It's interesting that what we're seeing competition-wise in our market is that we're seeing some of our peers actually pricing above brokered costs. Because we do have such a small amount of broker, we chose to go into some broker to backfill and to not compete on some of those hot deposits. Again, we have those cyclical public funds that'll start coming back in end of Q3 and into Q4. That's usual for us.

Nicole Stokes: Yeah, you're exactly right. It's really an offset of the seasonal public funds. It's interesting that what we're seeing competition-wise in our market is that we're seeing some of our peers actually pricing above brokered costs. Because we do have such a small amount of broker, we chose to go into some broker to backfill and to not compete on some of those hot deposits. Again, we have those cyclical public funds that'll start coming back in end of Q3 and into Q4. That's usual for us.

Speaker #4: And so, 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.

Speaker #4: And then again, we have the cyclical public funds that'll start coming back in at the end of the third and into the fourth quarter. That's usual for us.

Speaker #6: Got it. Okay. Thank you. And that's it for me. I'll step back.

Jake Morton: Got it. Okay. Thank you. That's it for me. I'll step back.

Speaker #4: Great. Thank you.

H. Palmer Proctor Jr.: Great. Thank you.

Nicole Stokes: Great. Thank you.

Speaker #1: And the next question comes from Zita Lopez Wong with DA Davidson. Please go ahead.

David Brown: The next question comes from Zeta Lopez Wong with D.A. Davidson. Please go ahead.

Operator: The next question comes from Zeta Lopez Wong with D.A. Davidson. Please go ahead.

Speaker #7: Hi, good morning. I'm calling in on behalf of Gary Tenner. I was wondering what was the driver for the pickup in taxable security yield, and how are you thinking about additional investment going forward?

Zeta Lopez Wong: Hi. Good morning. I am calling in on behalf of Gary Tanner. I wonder what was the driver for the pickup in the taxable security yield, and how are you thinking about additional investment going forward?

Speaker #4: Sure. So the bump in the taxable yield was related to some TIPS or inflation bonds that we picked up—a bump there. And then we also did a trade-out of some of those bonds.

Nicole S. Stokes: Sure. The bump in the taxable yield was related to some TIPS or inflation bonds that we picked up a bump there. We also did a trade-out of some of those bonds. That helped. That one time ended up being about 3 basis points of margin. We do continue to see some room in the securities book. We have about $240 million that mature in the Q3 in the low 4. Looking at repricing about $240 million up between 75 and 90 basis points within the Q3. We continue to watch that and monitor that. We have been rebuilding the bond book for 2 years now, and so we are getting closer to that 9%, 10% of earning assets. Now it is just kind of stabilizing that.

Nicole Stokes: Sure. The bump in the taxable yield was related to some TIPS or inflation bonds that we picked up a bump there. We also did a trade-out of some of those bonds. That helped. That one time ended up being about 3 basis points of margin. We do continue to see some room in the securities book. We have about $240 million that mature in the Q3 in the low 4. Looking at repricing about $240 million up between 75 and 90 basis points within the Q3. We continue to watch that and monitor that. We have been rebuilding the bond book for 2 years now, and so we are getting closer to that 9%, 10% of earning assets. Now it is just kind of stabilizing that.

Speaker #4: So that helped. That kind of one-time was, ended up being about three basis points of margin. But then we do continue to see some room in the securities book.

Speaker #4: We have about $240 million that mature in the third quarter, in the low fours. So, looking at repricing about $240 million up between 75 and 90 basis points within the third quarter.

Speaker #4: So, we continue to watch that and monitor that. We've been rebuilding the bond book for two years now, and so we're getting closer to that 9 to 10 percent of earning assets.

Speaker #4: And so now, it's just kind of stabilizing that.

Speaker #7: Perfect. And another question. There seems to be an inflection point on the deposit cost this quarter in NOW and also MMA.

Zeta Lopez Wong: Perfect. Another question. There seems to be an inflection point on the deposit cost this quarter in NOW, also MMA, which you have been telegraphing for a while. How are you thinking about the trends going forward from here? From a marginal spread perspective, do the higher market rates help offset that, at least in the short term?

Speaker #7: Which you have been telegraphing for a while. So how are you thinking about the trends going forward from here? And from a marginal spread perspective, do the higher market rates help offset that, at least in the short term?

Speaker #4: So, we do think that we see both loan and deposit pressure in our markets, but we definitely see the deposit pressure out there—probably a little bit stronger.

Nicole S. Stokes: We do think that we see both loan and deposit pressure in our markets, we definitely see the deposit pressure out there probably a little bit stronger. I think our bankers have done just a really good job of keeping the relationship, managing relationships, being a relationship bank. That's really part of where our non-interest-bearing being such a high percentage of our portfolio helps us, and we really do focus on the relationship which includes the non-interest-bearing when we get the relationship. We do think that that's part of our margin guidance going forward of coming down a few basis points as we see and have to pay up a little bit for deposits in order to continue to fund the loan growth that we expect.

Nicole Stokes: We do think that we see both loan and deposit pressure in our markets, we definitely see the deposit pressure out there probably a little bit stronger. I think our bankers have done just a really good job of keeping the relationship, managing relationships, being a relationship bank. That's really part of where our non-interest-bearing being such a high percentage of our portfolio helps us, and we really do focus on the relationship which includes the non-interest-bearing when we get the relationship. We do think that that's part of our margin guidance going forward of coming down a few basis points as we see and have to pay up a little bit for deposits in order to continue to fund the loan growth that we expect.

Speaker #4: And so, I think our bankers have done just a really good job of keeping the relationship, managing relationships, being a relationship bank. That's really part of why our non-interest bearing is such a high percentage of our portfolio.

Speaker #4: Helps us. And we really do focus on the relationship, which includes the non-interest bearing when we get the relationship. And so but we do think that that's part of our margin guidance going forward of coming down a few basis points as we see and have to pay up a little bit for deposits in order to continue to fund the loan growth that we expect.

Speaker #7: Perfect. Give me one second. One last question—I'll just squeeze it in. Your NIM was stable this quarter, and like you said, the seasonally lower deposits will come back in the third quarter.

Zeta Lopez Wong: Perfect. Give me 1 second. 1 last question. I'll just squeeze it in. Your NIM was stable this quarter, and like you said, the seasonally lower deposit will come back in Q3, and there's also a reduction in the FHLB borrowing. There seems to be a setup for NIM expansion in Q3. Would you put some more color on that, please?

Speaker #7: And there’s also a reduction in the FHLB borrowing. There seems to be a setup for NIM expansion in Q3. Would you put some color on that, please?

Speaker #4: Yep. So a lot of it comes from that deposit, the competition on the deposit side. So, and when you look at kind of our loan and our coming on rates of loans and deposits, with our all-in with non-interest bearing, our growth is still accretive to the margin.

Nicole S. Stokes: Yep. A lot of it comes from the competition on the deposit side. When you look at our coming on rates of loans and deposits with our all-in with non-interest-bearing, our growth is still accretive to the margin. That's assuming a 30% growth in non-interest-bearing, and that's a really tall standard to have. If we end up to fund our future growth, if we end up growing some of the interest-bearing at a faster pace than that non-interest-bearing, from an interest-bearing perspective, if you just look at interest-bearing deposits, it tends to be a little bit dilutive to the margin. That's where our guidance comes in, saying that we think those deposit costs could drive the margin down a little bit.

Nicole Stokes: Yep. A lot of it comes from the competition on the deposit side. When you look at our coming on rates of loans and deposits with our all-in with non-interest-bearing, our growth is still accretive to the margin. That's assuming a 30% growth in non-interest-bearing, and that's a really tall standard to have. If we end up to fund our future growth, if we end up growing some of the interest-bearing at a faster pace than that non-interest-bearing, from an interest-bearing perspective, if you just look at interest-bearing deposits, it tends to be a little bit dilutive to the margin. That's where our guidance comes in, saying that we think those deposit costs could drive the margin down a little bit.

Speaker #4: But that's assuming a 30% growth in non-interest bearing. And that's a really tall standard to have. So if we end up to fund our future growth, if we end up growing some of the interest bearing at a faster pace and that non-interest bearing, from an interest bearing perspective, our growth if you just look at interest bearing deposits, it tends to be a little bit dilutive to the margin.

Speaker #4: So that's where our guidance comes in, saying that we think those deposit costs could drive the margin down a little bit. This quarter, we really had great results on the loan side.

Nicole S. Stokes: This quarter, we had great results on the loan side and the loan yields, we also had that one-time bump on the bond portfolio that kept us from bumping down a little bit. If we don't have those one-offs next quarter, we could see a few basis points of compression.

Nicole Stokes: This quarter, we had great results on the loan side and the loan yields, we also had that one-time bump on the bond portfolio that kept us from bumping down a little bit. If we don't have those one-offs next quarter, we could see a few basis points of compression.

Speaker #4: And the loan yields. And then we also had that kind of one-time bump on the bond portfolio that kept us from bumping down a little bit.

Speaker #4: But if we don't have those one-offs next quarter, we could see a few basis points of compression.

Speaker #7: Okay. Perfect. I'll pass the message along. Thank you.

Zeta Lopez Wong: Okay, perfect. I'll pass the message along. Thank you.

Speaker #4: Thank you.

H. Palmer Proctor Jr.: Thank you.

Palmer Proctor: Thank you.

Speaker #1: And the next question comes from Steven Scooten with Piper Sandler. Please go ahead.

David Brown: The next question comes from Stephen Scouten with Piper Sandler. Please go ahead.

Speaker #5: Hey, good morning, guys. This is Jackson Andrew on for Steven. Appreciate all the color so far this morning. Just kind of wondering if you could talk a little bit more about your mortgage outlook?

Jackson Andrew: Hey, good morning, guys. This is Jackson Andrew on for Stephen. Appreciate all the color so far this morning. Just kind of wondering about if you could talk a little bit more about your mortgage outlook. What are you expecting for H2 of the year?

Speaker #5: What are you expecting for the second half of the year?

Speaker #2: Yeah, I think if you look at mortgage production, it was still solid. It remains consistent in terms of what we're delivering there. We did balance sheet a little bit more this quarter than we did sell.

H. Palmer Proctor Jr.: Yeah, I think if you look at mortgage, the production there was still solid. It remains consistent in terms of what we're delivering there. We did balance sheet a little bit more this quarter than we did sell, and therefore that obviously impacts the gain on sale. I think in terms of the stability of it, we're managing calls very closely there, but given the high interest rate market that we're operating in, until we see a little relief there, I don't think we'll get the incremental lift that we had all expected as an industry in H2 of the year unless we start seeing some relief. All in, it continues to perform well for us, and it continues to be managed very well.

Palmer Proctor: Yeah, I think if you look at mortgage, the production there was still solid. It remains consistent in terms of what we're delivering there. We did balance sheet a little bit more this quarter than we did sell, and therefore that obviously impacts the gain on sale. I think in terms of the stability of it, we're managing calls very closely there, but given the high interest rate market that we're operating in, until we see a little relief there, I don't think we'll get the incremental lift that we had all expected as an industry in H2 of the year unless we start seeing some relief. All in, it continues to perform well for us, and it continues to be managed very well.

Speaker #2: And therefore, that obviously impacts the gain on sale. And then, so I think, in terms of the stability of it, we're managing costs very closely there.

Speaker #2: But given the high interest rate market that we're operating in, until we see a little relief there, I don't think we'll get the incremental lift that we had all expected as an industry in the second half of the year—unless we start seeing some relief.

Speaker #2: But all in, it continues to perform well for us, and it continues to be managed very well.

Speaker #5: Got it. And then just one more on hiring—what kind of pace can we expect to see here in the back half of 2026?

Jackson Andrew: Got it. Just one more on hiring. What kind of pace can we expect to see here in H2 of 2026?

Speaker #2: Yeah. As we've said before, we've got all the talent we need to meet our budget, meet consensus in terms of expectations for growth. So we're selective in our talent.

H. Palmer Proctor Jr.: Yeah, as we've said before, we've got all the talent we need to meet our budget, meet consensus in terms of expectations for growth. We're selective in our talent. We're always looking to identify new talent and new opportunities like we have in Nashville. In terms of a need for us to have to go out and hire a bunch of bodies to hit our growth expectations, that's not a challenge for us at this point. We feel very good about where we stand there. Once again, we remain selective in terms of looking at new bankers out there. We're probably a little more focused on hiring customers than we are bankers, and that seems to work pretty well for our model.

Palmer Proctor: Yeah, as we've said before, we've got all the talent we need to meet our budget, meet consensus in terms of expectations for growth. We're selective in our talent. We're always looking to identify new talent and new opportunities like we have in Nashville. In terms of a need for us to have to go out and hire a bunch of bodies to hit our growth expectations, that's not a challenge for us at this point. We feel very good about where we stand there. Once again, we remain selective in terms of looking at new bankers out there. We're probably a little more focused on hiring customers than we are bankers, and that seems to work pretty well for our model.

Speaker #2: We're always looking to identify new talent and new opportunities like we have in Nashville. But in terms of the need for us to go out and hire a bunch of bodies to hit our growth expectations, that's not a challenge for us at this point.

Speaker #2: So we feel very good about where we stand there. But once again, we remain selective in terms of looking at new bankers out there.

Speaker #2: We're probably a little more focused on hiring customers than we are on hiring bankers, and that seems to work pretty well for our model.

Speaker #5: Okay. Thanks.

Jackson Andrew: Great. Thanks.

Speaker #1: And the next question comes from Tim Mitchell with Raymond James. Please go ahead.

David Brown: The next question comes from Tim Mitchell with Raymond James. Please go ahead.

Speaker #6: Hey, good morning, everyone. This is Tim on for David. I wanted to start on capital. I kind of heard what you said about your thoughts on the buyback at the current price.

Tim Mitchell: Hey, good morning, everyone. This is Tim on for David. On the side of capital, I hear what you said about thoughts on the buyback at the current price, but you're obviously continuing to accrete capital at a pretty solid clip. Outside of buybacks, is there anything else in terms of balance sheet optimization, obviously organic growth, or M&A that we should think about you guys are interested in? Thanks.

Speaker #6: But if you're obviously continuing to accrete capital at a pretty solid clip, so outside of buybacks, I mean, is there anything else in terms of balance sheet optimization?

Speaker #6: Obviously, organic growth. Or M&A that we should think about you guys are interested in? Thanks.

Speaker #2: Yeah. Our priority stack has not changed there; it will remain organic growth first. Then, obviously, as we said earlier, we will be opportunistic on the buybacks.

H. Palmer Proctor Jr.: Yeah. Our priority stack has not changed there. It will remain organic growth first. We'll obviously, as we said earlier, be opportunistic on the buybacks. Our dividend is we're fine with where the dividend is. For us with M&A, we are very selective and discerning in terms of M&A. As we've said, it would take something pretty special for us to consider M&A just because we've got a lot of opportunities on the organic growth side. That remains consistent with our outlook and our story.

Palmer Proctor: Yeah. Our priority stack has not changed there. It will remain organic growth first. We'll obviously, as we said earlier, be opportunistic on the buybacks. Our dividend is we're fine with where the dividend is. For us with M&A, we are very selective and discerning in terms of M&A. As we've said, it would take something pretty special for us to consider M&A just because we've got a lot of opportunities on the organic growth side. That remains consistent with our outlook and our story.

Speaker #2: Our dividend is—we're fine with where the dividend is. And then for us, with M&A, we are very selective and discerning in terms of M&A.

Speaker #2: And as we've said, it would take something pretty special for us to consider M&A, just because we've got a lot of opportunities on the organic growth side.

Speaker #2: And that remains consistent with our outlook and our story.

Speaker #6: Got it. Thank you. And then just kind of want to follow up more on the funding side. I've kind of heard what you guys were talking about.

Tim Mitchell: Got it. Thank you.

Tim Mitchell: I'm just going to want to follow up more on the funding side. I've kind of heard what you guys were talking about, the different puts and takes between new growth and interest-bearing growth. Just philosophically, how are you thinking right now just given the competitive backdrop around growing new core relationships maybe at thinner margins versus trying to defend the margin, maybe slowing balance sheet growth a little bit? Just where the loan deposit ratio is, how are you thinking about the funding base and the incremental margins as you grow the balance sheet?

Speaker #6: There are different puts and takes between new growth and interest-bearing growth. But just philosophically, how are you thinking right now, given the competitive backdrop around growing new core relationships?

Speaker #6: Maybe a thinner margin versus trying to defend the margin, maybe slowing balance sheet growth a little bit, just kind of where the loan-to-deposit ratio is. How are you thinking about the funding base and the incremental margins as you grow the balance sheet?

Speaker #2: Yeah, I would tell you that, with our margin as strong as it is, we are in a position where, if we choose to do so, we could sacrifice a little bit of that margin for good, solid growth.

H. Palmer Proctor Jr.: I would tell you that with our margin as strong as it is, we are in a position where if we choose to do so, we could sacrifice a little bit of that margin for good, solid growth. One of the things you will not find us doing is growth just for the sake of growth. It needs to be profitable growth, if we can find that type of growth opportunity, we are willing to sacrifice a little margin for that and are in a position of strength to be able to do that.

Palmer Proctor: I would tell you that with our margin as strong as it is, we are in a position where if we choose to do so, we could sacrifice a little bit of that margin for good, solid growth. One of the things you will not find us doing is growth just for the sake of growth. It needs to be profitable growth, if we can find that type of growth opportunity, we are willing to sacrifice a little margin for that and are in a position of strength to be able to do that.

Speaker #2: One of the things you will not find us doing is growth just for the sake of growth. It needs to be profitable growth. If we can find that type of growth opportunity, then we are willing to sacrifice a little margin for that and are in a position of strength to be able to do that.

Speaker #6: Great. Then this last one on the Nashville market entry. There's obviously been a lot of disruption kind of throughout your footprint in the past couple of years.

Tim Mitchell: Great. This last one on the Nashville market entry. There's obviously been a lot of disruptions kind of throughout your footprint in the past couple of years. Are there any other markets right now that you're interested in? Could you talk more to the point you made around hiring customers versus talent? Are you seeing a lot of opportunities to take on new customers given some of that disruption?

Speaker #6: Are there any other markets right now that you're interested in? And could you kind of talk more to the point you made around hiring customers versus talent?

Speaker #6: Are you seeing a lot of opportunities to take on new customers, given some of that disruption?

Speaker #2: We are. And one of the benefits we've had is that we already have a presence in most of these markets with obviously the exception of Nashville.

H. Palmer Proctor Jr.: We are. One of the benefits we've had is that we already have a presence in most of these markets with obviously the exception of Nashville. We've already got a presence, already got a brand, and already have bankers. You're starting there from a position of strength. We've already got the brand awareness, a lot of times we've also got some of the wallet share with some of the other banks. Our objective and mission is to garner more of that wallet share, as a result, you garner additional market share. We don't really need to move outside of our existing footprints to do that. We've been very fortunate to be in high growth markets. In terms of markets outside of our existing footprint, I don't see that as being necessary for us.

Palmer Proctor: We are. One of the benefits we've had is that we already have a presence in most of these markets with obviously the exception of Nashville. We've already got a presence, already got a brand, and already have bankers. You're starting there from a position of strength. We've already got the brand awareness, a lot of times we've also got some of the wallet share with some of the other banks. Our objective and mission is to garner more of that wallet share, as a result, you garner additional market share. We don't really need to move outside of our existing footprints to do that. We've been very fortunate to be in high growth markets. In terms of markets outside of our existing footprint, I don't see that as being necessary for us.

Speaker #2: But we already have a presence, already have a brand, and already have bankers. And that's a—you’re starting there from a position of strength.

Speaker #2: We've already got the brand awareness, and a lot of times we've also got some of the wallet share with some of the other banks.

Speaker #2: And our objective and mission is to garner more of that wallet share. And then, as a result, you garner additional market share. We don't really need to move outside of our existing footprints to do that.

Speaker #2: We've been very fortunate to be in high-growth markets. So, in terms of markets outside of our existing footprint, I don't see that as being necessary for us.

Speaker #6: All right. Great. Thanks for taking my questions.

Tim Mitchell: All right. Great. Thanks for taking my questions.

Speaker #2: You bet.

H. Palmer Proctor Jr.: You bet.

Palmer Proctor: You bet.

Speaker #1: This concludes our question and answer session. I would like to turn the conference back over to Palmer Proctor for any closing remarks.

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

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

Speaker #2: Great. Thank you, Dave. Core fundamentals remained strong in the second quarter as we continue to expand our attractive Southeastern footprint. I want to thank every Ameris teammate for their commitment and contributions, which drove another solid first half.

H. Palmer Proctor Jr.: Great. Thank you, Dave. Core fundamentals remain strong in Q2 as we continue to expand our attractive southeastern footprint. I want to thank every Ameris teammate for their commitment and their contributions, which drove another solid H1 and enabled us to continue delivering peer-leading results. As I've said before, we're going to remain focused on controlling what we can control, executing on our strategy with discipline, growing our core deposit franchise, and consistently building long-term value through profitable growth, a strong core deposit base, and increasing tangible book value per share. Thank you again for joining our Q2 earnings call, and we appreciate your continued interest in Ameris.

Palmer Proctor: Great. Thank you, Dave. Core fundamentals remain strong in Q2 as we continue to expand our attractive southeastern footprint. I want to thank every Ameris teammate for their commitment and their contributions, which drove another solid H1 and enabled us to continue delivering peer-leading results. As I've said before, we're going to remain focused on controlling what we can control, executing on our strategy with discipline, growing our core deposit franchise, and consistently building long-term value through profitable growth, a strong core deposit base, and increasing tangible book value per share. Thank you again for joining our Q2 earnings call, and we appreciate your continued interest in Ameris.

Speaker #2: And enabled us to continue delivering peer-leading results. As I've said before, we're going to remain focused on controlling what we can control, executing on our strategy with discipline, growing our core deposit franchise, and consistently building long-term value through profitable growth, a strong core deposit base, and increasing tangible book value per share.

Speaker #2: Thank you again for joining our second quarter earnings call. And we appreciate your continued interest in Ameris.

David Brown: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Q2 2026 Ameris Bancorp Earnings Call

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