A Southeast regional bank holding company whose subsidiary, Ameris Bank, runs full-service community banking from dozens of offices across Georgia, Alabama, Florida, North Carolina, and South Carolina, lending mainly to commercial real estate, residential mortgages, and local businesses. It traces back to the American Banking Company, opened in 1971 as a single office in Moultrie, Georgia; after years as "ABC Bancorp," it rebranded as Ameris in 2005, a name meant to echo "America."
Ameris Bancorp Q2 net income fell 53% to $51.4M as an $82.5M litigation accrual overwhelmed an 11-basis-point margin expansion.
A single litigation charge reshaped the quarter. rose 8.4% to $326.0 million and the expanded 11 to 3.88%, but an $82.5 million accrual for a California employment case verdict pushed down 53% to $51.4 million. The underlying business strengthened even as the bottom line absorbed a one-time hit.
Key takeaways
fell 53.2% to $51.4 million, driven by an $82.5 million litigation expense accrual for a California employment case verdict disclosed in the quarter.
Tax-equivalent rose 8.9% to $253.4 million as the expanded 11 to 3.88%, its highest level in at least four years, with lower deposit costs and growth in average earning assets.
The increased to $17.3 million from $2.8 million a year ago, reflecting an updated economic forecast, a higher qualitative factor on the office portfolio, and organic loan growth.
Section summaries
Management's Discussion and Analysis
Net income fell 53% YoY to $51.4M in Q2 2026, driven by an $82.5M litigation accrual, partially offset by higher net interest income and a securities gain.
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available to common shareholders dropped to $51.4 million from $109.8 million, primarily due to an $82.5 million litigation expense accrual for a California employment case verdict.
Noninterest income grew 6.7% to $73.5 million, boosted by a $7.4 million gain from the conversion of Visa Class B-2 shares, which offset a 17.1% decline in mortgage banking income.
Total deposits increased 0.9% to $22.59 billion, and the remained well above well-capitalized thresholds, with $2.46 billion in FHLB borrowing availability.
The company's interest rate simulation now projects a 400-basis-point parallel rate increase would lift by 5.1% over 12 months and 16.8% over 24 months, while a 300-basis-point decrease would reduce it by 1.1% over 12 months.
What changed
The expanded for a fourth consecutive quarter to 3.88%, up from 3.77% in Q2 2025 and 3.88% in Q1 2026, confirming the expansion trend flagged in earlier filings is holding even as the pace of deposit cost declines may be slowing.
The rose to $17.3 million from $2.8 million a year ago, driven partly by a higher qualitative factor on the office portfolio — a risk flagged repeatedly in prior filings given the commercial real estate concentration.
The $82.5 million litigation accrual is a new development with no precedent in the prior summaries; the DOJ consent order's mortgage subsidies and Jacksonville branch requirements, flagged in earlier filings, still have not appeared materially in noninterest expense.
Noninterest income excluding the $7.4 million Visa Class B-2 gain would have been roughly flat with the prior-year quarter's $68.9 million, suggesting the underlying fee-income base is stabilizing after the prior year's one-time Visa gain distortion.
The shift in rate sensitivity continues: the simulation now projects a 5.1% lift from a 400-basis-point rate increase over 12 months, up from the 2.2% lift projected in Q2 2025, reflecting the liability-sensitive position that has developed as deposit costs reprice downward.
What to watch
Whether the $82.5 million litigation accrual is a one-time charge or the start of a recurring liability, and whether any insurance recovery or settlement reduces the final cost.
Whether the can expand further from 3.88% as the yield on interest-bearing deposits falls to 2.50%, or whether the pace of decline slows enough to cap the margin near current levels.
Whether the continues to rise from $17.3 million as the higher qualitative factor on the office portfolio works through the allowance, particularly given the commercial real estate concentration.
Whether the DOJ consent order's mortgage subsidies and Jacksonville branch requirements, still absent from the income statement, begin to appear in noninterest expense in the second half of 2026.
on a rose 8.9% to $253.4 million, driven by lower deposit costs and growth in average earning assets, expanding the by 11 to 3.88%.
The increased to $17.3 million from $2.8 million, attributed to an updated economic forecast, a higher qualitative factor for the office portfolio, and organic loan growth.
Noninterest income grew 6.7% to $73.5 million, boosted by a $7.4 million gain from the conversion of Visa Class B-2 shares, which offset a 17.1% decline in mortgage banking income.
Total deposits increased 0.9% to $22.59 billion, and the Company maintained strong liquidity with $2.46 billion in FHLB borrowing availability and all regulatory capital ratios well above 'well capitalized' thresholds.
Quantitative and Qualitative Disclosures About Market Risk
The Company faces only U.S. dollar interest rate risk and uses hedging and simulation to manage net interest income sensitivity.
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The Company has no exposure to foreign currency, commodity, or other market risks.
It uses forward contracts and to hedge mortgage value changes from interest rate shifts, with combined fair values of $3.3M in assets and $0.5M in liabilities at June 30, 2026.
Client-related interest rate derivatives are fully offset with equal and opposite contracts with highly rated third parties, resulting in nearly matched assets ($7.3M) and liabilities ($7.4M) at quarter-end.
A simulation model projects that a 400 parallel rate increase would lift baseline by 5.1% over 12 months and 16.8% over 24 months.
A 300 parallel rate decrease would reduce baseline by 1.1% over 12 months and 14.8% over 24 months.
Disclosure concerning legal proceedings can be found in Part I - "Financial Information, Item 1. Financial Statements, Notes to Unaudited Consolidated Financial Statements, Note 8 – Commitments and Contingencies" under the caption, "Litigation and Regulatory Contingencies," whic…
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Disclosure concerning legal proceedings can be found in Part I - "Financial Information, Item 1. Financial Statements, Notes to Unaudited Consolidated Financial Statements, Note 8 – Commitments and Contingencies" under the caption, "Litigation and Regulatory Contingencies," which is incorporated herein by reference.
There have not been any material changes to the risk factors disclosed in Item 1A. of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, previously filed with the SEC.
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There have not been any material changes to the risk factors disclosed in Item 1A. of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, previously filed with the SEC.