Ameris Bancorp Q2 2026 Earnings Hit by $82.5M Litigation Charge; Core Operations Remain Solid

summarizeSummary

Ameris Bancorp's Q2 2026 GAAP earnings were crushed by an $82.5M litigation accrual, but underlying trends—margin expansion, loan growth, and stable credit—were positive.

check_boxKey Events · Earnings and Guidance · ABCB

• $82.5M Litigation Charge

  An $82.5 million expense was recorded for a jury verdict in a California employment case, reducing Q2 net income to $51.4M ($0.77 EPS) from $109.8M ($1.60) a year ago.

• Core Profitability Resilient

  Net interest margin expanded 11 bps YoY to 3.88%, and net interest income rose 8.9% to $252.5M, driven by lower deposit costs and earning-asset growth.

• Balance Sheet Growth

  Total loans increased 3.1% YTD to $22.18B; deposits grew 0.9% to $22.59B. The loan-to-deposit ratio stood at 98.2%.

• Credit Quality Stable but Edging Higher

  Non-performing assets rose to 0.47% of total assets from 0.44% at year-end. Net charge-offs were 0.21% of average loans annualized, up from 0.16% a year ago.

auto_awesomeAnalysis · ABCB · Finance

An $82.5 million litigation accrual—stemming from a June 12 jury verdict in a wrongful termination case—dominated Ameris Bancorp's second-quarter results, slashing GAAP net income to $51.4 million, or $0.77 per share, from $109.8 million a year ago. Beneath that legal noise, the core bank performed well: net interest margin expanded 11 basis points to 3.88%, loans grew 3.1% year-to-date, and credit quality remained manageable with non-performing assets at just 0.47% of total assets. While the company intends to appeal the verdict, the ultimate financial impact remains uncertain. Capital ratios stay well above regulatory minimums, and the bank continued buying back stock aggressively, repurchasing $103.3 million in shares during the first half.