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, which ranks at the higher end of the rating category. Earnings remain a key strength (ROA of 1.5% in 9M25) and serve as the first line of defense against potential credit losses, with the company consistently generating peer-leading returns across various interest rate cycles. This performance reflects a healthy NIM in higher-rate environments - driven by a fairly low-cost deposit base and loan-heavy balance sheet - and strong fee income generation (23% of total revenues in 2025; above 40% in 2020) during lower-rate periods through its mortgage banking operations. 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 (on track for ~$4.5 billion in volume in 2025) despite limited refinance activity. Management has also demonstrated prudence in reserve building (~1.6% of total loans), maintaining elevated coverage levels despite a solid economic backdrop, while remaining mindful of moderating trends across CRE and residential markets in the Southeast. Additionally, measured balance sheet growth and a modest dividend payout have facilitated strong internal capital generation, supporting a favorable capital position, including a TCE ratio above 11% as of 3Q25 (CET1 ratio of 13.2%). Collectively, these factors leave ABCB well-positioned to withstand material credit losses, if they were to arise, and provide a substantial buffer for debt holders (limited to TruPS) and uninsured depositors (~31% of deposits excluding collateralized).

Ameris’ balance sheet reflects a moderate degree of higher credit risk - driven by its larger loan portfolio relative to total assets - and certain areas of concentration within the loan book, specifically C&D and investor CRE lending, which have tracked above average historically but are currently in line with rated peer averages. The company’s equipment finance vertical exhibits modestly higher loss rates, though these are offset by elevated loan yields, producing strong risk-adjusted returns. Overall, the portfolio appears well-managed and conservatively underwritten, supporting solid credit quality metrics in recent years. That said, KBRA remains mindful of potential further pullbacks in CRE and residential markets in the Southeast as demand softens and consumers contend with persistent inflationary pressures. KBRA notes that ABCB maintains a moderately sized investor office portfolio (6.5% of total loans), which is primarily concentrated in class A, credit-tenant, and medical properties that have demonstrated greater resilience. Additionally, most of this portfolio is located in suburban markets, which we view favorably. Moreover, multifamily exposures represent a meaningful concentration (9.0% of total loans), but we view the segment as conservatively underwritten and performing well despite some supply-side pressures.

The company’s liquidity position is managed somewhat aggressively, reflected in a higher loan-to-deposit ratio and a lower level of on-balance-sheet liquidity. However, liquidity remains adequate considering the durability of deposits and strong core deposit generation capabilities. KBRA also views favorably management’s decision to avoid deploying excess liquidity into the bond portfolio during the low-rate environment, thereby avoiding the sizable unrealized losses seen across peers. As a result, ABCB is one of the few banks with a positive AOCI position. KBRA also recognizes the quality of Ameris’ core deposit franchise, which constitutes the majority of total funding and remains above peer levels (89% of total funding). The deposit composition is favorable, featuring a higher proportion of NIB accounts (30%). This, combined with the overall granularity of deposits and a leading market share among local banks in footprint, supports a respectable total deposit cost (1.96% average during 3Q25).

Rating Sensitivities

A rating upgrade is not expected in the short-term given the Stable Outlook, though continued maintenance of stronger-than-peer earnings and capital, along with moderately better on-balance sheet liquidity could support positive rating momentum over time. A rating downgrade is also not anticipated, though any unexpected credit issues, a more aggressive stance with capital or liquidity, or any unforeseen credit/earnings problems could potentially pressure the ratings.

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