On Friday, Stephens maintained an Equal Weight rating for Ameris Bancorp (NASDAQ:NYSE:ABCB) with a steady price target of $64.00, following the bank's latest earnings report. Ameris Bancorp reported operating earnings per share (EPS) of $1.38, surpassing the consensus estimate of $1.25 and Stephens' projection of $1.27.
However, the company's core pre-provision net revenue (PPNR) of $127.8 million fell short of the expected $135.5 million consensus and Stephens' estimate by $7.7 million and $7.8 million respectively.
The bank's net interest income (NII) and core fees also did not meet expectations, missing the consensus by $0.02 and $0.05 respectively, while core expenses were $0.01 higher than anticipated. End-of-period (EOP) loans decreased by 0.5% on a last quarter annualized (LQA) basis, which was below both the consensus and Stephens' expectations of a 4.0% increase.
Excluding mortgage warehouse loans, there was a 1% increase in EOP loan balances on a LQA basis.
Ameris Bancorp's net interest margin (NIM) declined by 7 basis points to 3.51%, which was lower than the street estimate of 3.55% and Stephens' forecast of 3.54%. The provision expense for the bank was reported at $6.1 million, significantly below the consensus estimate of $20.7 million, with net charge-offs (NCOs) at 15 basis points, indicating strong and stable credit trends quarter over quarter.
Despite the bank's shares outperforming the KBW Regional Banking Index (KRX) by 4% intra-quarter, the PPNR miss has led Stephens to anticipate potential underperformance in share price relative to the market following the earnings release. The firm's Equal Weight rating reflects this cautious outlook.
In other recent news, Ameris Bancorp has announced a quarterly dividend of $0.15 per share, reflecting its commitment to delivering shareholder value. The company also reported a net income of over $90 million in the second quarter, driven by a significant increase in deposits, earning assets, and a diversified loan portfolio that grew by over $392 million.
In addition, securities firm Keefe, Bruyette & Woods has maintained an Outperform rating on Ameris Bancorp, while financial services firm Stephens has maintained an Equal Weight rating. Both firms have adjusted their earnings estimates for Ameris Bancorp, projecting growth in the coming years.
Furthermore, Ameris Bancorp has transitioned its stock listing to the New York Stock Exchange, a strategic move aimed at enhancing its market visibility.
InvestingPro Insights
Ameris Bancorp's recent performance reveals a mixed financial picture, as highlighted by InvestingPro data and tips. The bank's market capitalization stands at $4.34 billion, with a price-to-earnings ratio of 13.81, suggesting a relatively modest valuation compared to some peers. However, an InvestingPro Tip indicates that ABCB is trading at a high P/E ratio relative to its near-term earnings growth, with a PEG ratio of 3.01, which may warrant caution for value-focused investors.
On a positive note, Ameris Bancorp has demonstrated strong profitability, with an operating income margin of 45.68% for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip stating that the company has been profitable over the last twelve months. Additionally, ABCB has maintained dividend payments for 11 consecutive years, which may appeal to income-oriented investors, although the current dividend yield is modest at 0.95%.
The bank's recent stock performance has been impressive, with a 33.4% price total return over the past six months and a substantial 81.29% return over the last year. This robust performance is reflected in an InvestingPro Tip highlighting the large price uptick over the last six months.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform currently lists 7 more tips for Ameris Bancorp, providing a deeper understanding of the company's financial health and market position.
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