Key Highlights

● Net income was US$51.4 million after a US$82.5 million litigation accrual.

● Adjusted net income was US$107.3 million, or US$1.60 per diluted share.

● Loans reached US$22.18 billion, up 6.4% annualised, with a 3.88% net interest margin.

● Ameris disagrees with the verdict and intends to appeal.

Ameris Bancorp (NYSE:ABCB), the Atlanta-based holding company for Ameris Bank, reported second-quarter 2026 results on 23 July 2026. Its common stock trades on the New York Stock Exchange under the symbol ABCB; the company transferred its listing from Nasdaq, with trading on the NYSE beginning on 23 July 2024 and the ticker unchanged. Net income for the quarter ended 30 June 2026 was US$51.4 million, or US$0.77 per diluted share, after a US$82.5 million litigation accrual. Excluding that accrual and a securities gain, adjusted net income was US$107.3 million, or US$1.60 per diluted share. For the six months, diluted earnings per share were US$2.40 on a GAAP basis and US$3.23 adjusted.

The litigation charge

The accrual relates to a verdict in a California employment case. A federal jury found on 12 June 2026 that Ameris was liable to Patrick Byrne, co-founder and former chief executive of Balboa Capital, which Ameris acquired in December 2021. Byrne alleged wrongful termination, whistleblower retaliation, unpaid wages and breach of contract. The award was about US$80 million, comprising US$16.525 million in compensatory damages and statutory penalties and roughly US$62.9 million in punitive damages.

Ameris said it disagreed with the verdict, described it as not supported by the facts or applicable law, and intended to appeal. It has also said that final resolution could have a material adverse effect on its results. The accrual is therefore an accounting estimate, not a final payment, and the outcome of any appeal remains uncertain.

Balance sheet and profitability

Total assets were US$28.49 billion at 30 June 2026. Loans reached US$22.18 billion, up US$349.9 million in the quarter, equivalent to 6.4% annualised growth. Deposits were US$22.59 billion, of which noninterest-bearing balances were US$6.78 billion, or 30.0% of the total. The tax-equivalent net interest margin was 3.88%, unchanged from the first quarter and 11 basis points higher than a year earlier.

Efficiency shows the distortion caused by the accrual: the efficiency ratio was 74.45% on a GAAP basis but 50.42% adjusted. Return on assets was 0.73% GAAP and 1.53% adjusted, while return on tangible common equity was 6.75% GAAP and 14.08% adjusted.

Credit and capital

Credit quality, by the reported measures, looked reasonably contained. Net charge-offs were 0.20% of average loans on an annualised basis, the allowance for credit losses was 1.62% of loans, and the provision for credit losses was US$17.3 million. Nonperforming assets were 0.47% of total assets, or 0.35% excluding GNMA-guaranteed loans.

Capital remains strong. Shareholders' equity to assets was 14.36% and tangible common equity to tangible assets was 11.04%. Tangible book value per share was US$45.10, up US$0.92 since the start of the year. During the quarter the company repurchased 226,600 shares for US$19.0 million and paid a quarterly dividend of US$0.20 per share.

Why it matters and limitations

For a regional bank, a one-off charge of this scale is unusual, and the open question is whether the underlying earnings power shown in the adjusted figures persists. Adjusted measures are non-GAAP, defined by the company, and exclude items that are real costs.

A 22 October Report Will Test Whether Margin and Growth Hold Up

Ameris announced on 1 October 2026 that it will release third-quarter 2026 results after the market closes on Thursday, 22 October 2026, followed by a conference call at 9:00 a.m. Eastern Time on Friday, 23 October 2026, hosted by chief executive H. Palmer Proctor Jr. and management. That report should show whether litigation developments, loan growth and the margin have moved from the second-quarter position.