Ameris Bancorp is leveraging disciplined expense management and expanding earning assets to bolster its bottom line amid shifting macroeconomic conditions. The Atlanta-based financial institution reported net income of $116.1 million, or $1.73 per diluted share, for the third quarter ended September 30, 2026, marking an increase from the $106.0 million, or $1.54 per diluted share, reported in the same period last year. This growth comes as the company navigates a complex interest rate environment, managing a net interest margin of 3.87% while simultaneously scaling its loan portfolio and deposit base. By focusing on profitable growth and maintaining an efficiency ratio below 50%, Ameris is attempting to stabilize its earnings profile even as noninterest income faces headwinds from declining mortgage banking activity and reduced gains on securities. The company’s ability to grow average earning assets by $300.5 million, or 4.5% annualized, suggests a strategic push to deploy capital effectively within its Southeast franchise while maintaining prudent credit reserves and balance sheet stability.
Ameris Bancorp Q3 2026 Earnings and Asset Expansion
The company’s third-quarter performance was characterized by a notable expansion in its earning capacity and a significant reduction in noninterest expenses. Ameris reported that average earning assets grew by $300.5 million, representing a 4.5% annualized increase. This expansion was primarily fueled by a $260.0 million increase in average portfolio loans outstanding and a $99.3 million rise in the average balance of investment securities, which helped offset an $80.7 million decrease in average loans held for sale. Consequently, net interest income on a tax-equivalent basis reached $258.6 million, an 8.2% increase compared to the third quarter of 2025.
While net interest income rose, the company faced pressure in its noninterest income streams. Noninterest income fell by 12.7% to $64.2 million, largely due to a $7.2 million decline in gains on securities. The mortgage banking division also saw a $3.3 million decrease in activity, as total retail mortgage production dropped 13.7% to $994.4 million. Despite these declines, Ameris managed to improve its operational efficiency. The company reported an efficiency ratio of 49.32%, with an adjusted efficiency ratio of 49.15%, down from 50.42% in the second quarter of 2026. This improvement in efficiency was heavily influenced by a sharp decline in noninterest expenses, which fell to $158.7 million from $242.7 million in the previous quarter. The company attributed this $84.0 million reduction primarily to a $80.8 million decline in litigation expense accruals. This suggests that while core noninterest income is softening, the bottom line is being protected by the normalization of one-time legal costs and tighter expense discipline.
Deposit Composition and Credit Quality Trends
Ameris is navigating a shifting deposit landscape, characterized by a move toward higher-cost funding sources. Total deposits grew to $22.91 billion at the end of September 2026, an increase of $319.4 million, or 5.6% annualized, from the previous quarter. However, the composition of these deposits reveals a strategic pivot: interest-bearing deposits increased by $407.2 million, while noninterest-bearing deposits actually decreased by $87.8 million. This shift is evidenced by the fact that noninterest-bearing deposits now represent 29.2% of total deposits. The growth in interest-bearing balances was driven largely by a $399.7 million increase in money market accounts and a $129.5 million increase in brokered CDs, which partially offset a $79.8 million decline in retail CDs. This trend highlights the rising cost of maintaining a stable liquidity base as the company competes for deposits.
On the credit front, Ameris is maintaining a cautious but stable posture. The company recorded a provision for credit losses of $12.6 million during the quarter, a decrease from the $17.3 million recorded in the second quarter of 2026. The annualized net charge-off ratio also saw a slight improvement, declining to 0.19% of average total loans from 0.20% in the prior quarter. While nonperforming assets as a percentage of total assets rose seven basis points to 0.54%, the company noted that approximately 25.2% of these assets—totaling $38.8 million—are GNMA-guaranteed mortgage loans, which the company claims present minimal loss exposure. Excluding these government-guaranteed loans, the nonperforming asset ratio stood at 0.40%, a slight increase from 0.35% at the end of the second quarter.
Key Takeaways
- Ameris Bancorp reported Q3 2026 net income of $116.1 million, or $1.73 per diluted share, up from $106.0 million in Q3 2025.
- Total deposits grew by $319.4 million (5.6% annualized), though noninterest-bearing deposits fell by $87.8 million during the quarter.
- The company's board authorized a new share repurchase program of up to $200.0 million, continuing a program that saw $134.6 million in repurchases over the past 12 months.
FinanceInsyte's Take
In our view, Ameris Bancorp’s third-quarter results highlight a bank successfully managing the "squeeze" between rising funding costs and fluctuating noninterest income. The most striking element of the report is not the net income growth, but the underlying shift in the deposit mix. By seeing a significant increase in money market accounts and brokered CDs alongside a decline in noninterest-bearing deposits, Ameris is clearly feeling the pressure to pay more for liquidity. This trend could potentially compress net interest margins if the company cannot continue to scale its loan yields at a rate that outpaces these rising deposit costs.
However, the company is effectively using expense discipline to offset these pressures. The massive reduction in noninterest expenses—driven by the decline in litigation accruals—has allowed the efficiency ratio to remain under the 50% threshold, providing a temporary buffer for the bottom line. For institutional investors, the authorization of a $200 million share repurchase program signals management's confidence in its capital position and its intent to return value to shareholders despite the volatility in mortgage banking and securities gains.
Questions & Answers
How is the shift in deposit composition affecting Ameris Bancorp's cost of funds?
The company is seeing a transition toward more expensive funding sources. While total deposits grew by 5.6% annualized, interest-bearing deposits rose by $407.2 million while noninterest-bearing deposits fell by $87.8 million. This shift contributed to the total cost of funds increasing three basis points to 1.94% in Q3 2026, compared to 1.91% in the second quarter.
What drove the significant decrease in noninterest expenses during the third quarter?
The $84.0 million decrease in noninterest expenses, which dropped to $158.7 million from $242.7 million in the previous quarter, was primarily driven by an $80.8 million decline in litigation expense accruals.
What is the current status of Ameris Bancorp's credit risk and nonperforming assets?
The company reported an annualized net charge-off ratio of 0.19%. While nonperforming assets as a percentage of total assets increased to 0.54%, a significant portion (25.2%) consists of GNMA-guaranteed mortgage loans, which the company identifies as having minimal loss exposure.
How does the company plan to manage shareholder returns moving forward?
The board of directors has authorized a repurchase of up to $200.0 million of outstanding common stock. This program is intended to run through October 31, 2027, and serves as a replenishment of the previous program, which saw $134.6 million in repurchases over the last 12 months.
Source: Ameris Bancorp
