KBRA Affirms Ratings for Ameris Bancorp

KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Atlanta, Georgia-based Ameris Bancorp (NYSE: ABCB) ("Ameris" or "the company"). In addition, KBRA affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for Ameris Bank, the main subsidiary. The Outlook for all long-term ratings is Stable.

Key Credit Considerations

Ameris’ ratings are supported by its robust loss-absorbing capacity, ranking at the higher end of the rating category. Earnings remain a key strength (core ROA of ~1.6% during 9M26) and the first line of defense against potential credit losses, with the company consistently generating peer-leading returns across interest rate cycles (ROA exceeding 1.0% over the last decade). This reflects a healthy NIM (3.87% in 3Q26), supported by a relatively low-cost deposit base (1.82% in 3Q26) and loan-heavy balance sheet (loan-to-earning asset ratio typically between 85%-90%), complemented by meaningful fee income (22% of total revenues during 9M26), primarily generated through mortgage banking. While noninterest income contributions are more concentrated in mortgage banking compared to most peers, the company’s robust direct origination retail operations - focused on the purchase-money space through established relationships with realtors and builders in footprint - have supported steady production (~$3.2 billion of volume in 2026) despite higher rates and limited refinance activity. Management has also demonstrated prudence in reserve building (1.62% of total loans), maintaining healthy coverage despite favorable credit trends. Additionally, measured growth, a modest dividend payout, and strong internal capital generation have supported robust capitalization (CET1 ratio of 13.2% at 3Q26). Collectively, these factors position ABCB to withstand material credit losses and provide substantial protection for debt holders (limited to TruPS) and uninsured depositors (32% of total deposits excluding collateralized relationships).

While ABCB maintains areas of loan concentrations, particularly investor CRE, these remain manageable and generally consistent with rated peers. Specialty lending, including equipment finance, exhibit somewhat higher credit risk, though elevated yields support attractive risk-adjusted returns. Overall, the portfolio appears well-managed and conservatively underwritten, supporting favorable asset quality metrics, including modest NCOs and low NPAs in recent years. That said, KBRA remains mindful of rising criticized loans and potential pressure across CRE and residential in footprint. However, these risks are partly mitigated by portfolio granularity, geographic diversification, and disciplined underwriting practices.

Ameris' ratings also recognize its well-established franchise in Southeastern markets (over 165 branches across five different states), including meaningful deposit market share (leading deposit market share among locally headquartered banks in Georgia and Atlanta). KBRA also appreciates management's more conservative growth strategy in recent years, emphasizing organic growth and selective M&A (last whole bank transaction was completed in 2019). Nonetheless, the high loan-to-deposit ratio (LHFI to total deposits of 98% at 3Q26) and smaller securities portfolio (9% of total assets) somewhat constrains on-balance-sheet liquidity. This necessitates deposit growth alongside future loan expansion, which could pressure funding costs and profitability amid heightened competition. These considerations are partly offset by the stability of its deposit franchise, meaningful NIB balances (29% of total deposits), and access to diversified contingent liquidity sources.

Rating Sensitivities

Given the Stable Outlook, a rating upgrade is not anticipated over the near term. However, sustained above-peer earnings and capital levels, further improvement in liquidity metrics, and continued diversification of the operating footprint and loan portfolio could support positive rating momentum over time. Conversely, while a rating downgrade is not anticipated, material deterioration in asset quality, more aggressive capital or liquidity management, or sustained deterioration in earnings performance could result in negative rating pressure.

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