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ABCB Nasdaq· Ameris Ban Corporation
Earnings report Q4 2023

ABCB Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, ABCB reported total revenue of $200.6 million, representing a significant increase of 15.2% compared to the same quarter last year. The company's revenue growth was driven by several key segments:

  1. Net interest income: ABCB's net interest income increased by $10.3 million, or 8.6%, to $130.1 million in the latest quarter. This growth can be attributed to higher interest rates and an increase in loan volumes.

  2. Noninterest income: ABCB's noninterest income also showed strong growth, reaching $70.5 million in the latest quarter, an increase of $15.3 million, or 27.8%, compared to the same quarter last year. This growth was primarily driven by increases in other service charges, commissions, and fees, as well as gains on the sale of SBA loans.

Strengths

ABCB demonstrated several strengths in its latest quarter performance. The company's overall revenue growth of 15.2% reflects its ability to generate strong income from both interest and noninterest sources. The increase in net interest income can be attributed to favorable interest rate conditions and the company's effective management of loan volumes. Additionally, the growth in noninterest income was driven by various sources, including other service charges, commissions, and fees, which increased due to higher ATM fees. ABCB's management has also highlighted the positive impact of its equipment finance division, BOLI income, SBA servicing income, merchant fee income, and credit card interchange income on noninterest income growth.

Challenges

Despite its strong revenue performance, ABCB faced challenges in certain areas. The gain on sale of SBA loans decreased by $4.0 million, or 72.0%, compared to the same quarter last year. This decline was accompanied by a decrease in loans sold, which dropped by $26.2 million, or 52.5%. These challenges may indicate a slowdown in the SBA loan market or increased competition in this segment. Additionally, the company experienced a reduction in trust income of $4.4 million after exiting this business at the end of the previous year.

Noteworthy

It is worth noting that ABCB's revenue growth in the latest quarter was driven by a combination of factors, including favorable interest rate conditions, increased loan volumes, higher ATM fees, and growth in various noninterest income sources. The company's management has successfully capitalized on these opportunities to drive overall revenue growth.

Summary

ABCB reported strong revenue growth in its latest quarter, with total revenue increasing by 15.2% compared to the same quarter last year. The company demonstrated strengths in both net interest income and noninterest income, driven by favorable interest rate conditions, increased loan volumes, and growth in various fee-based income sources. However, challenges were observed in the SBA loan segment, with a decline in gains on sale of SBA loans and loans sold. Overall, ABCB's ability to generate strong revenue reflects its effective management and strategic focus on diversifying income sources.

Source documents

Form 10-K  filed on Feb 28, 2024
114 pages scanned

Reference data

Company financials Q4 revenue 241M
Analyst estimates Q4 EPS missed by -4.95%
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