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Ameris Bancorp Rewards Shareholders With a 33.3% Dividend Hike

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Ameris Bancorp (ABCB - Free Report) hiked its quarterly cash dividend by 33.3% to 20 cents per share. The dividend will be paid out on Jan. 6, 2025, to shareholders of record as of Dec. 31.

This is ABCB’s first dividend hike in the last five years. Before the recent hike, the bank increased its dividend by 50% to 15 cents per share in September 2019. It has a dividend payout ratio of 13%.

Based on its closing price of $62.08 as of Dec. 18, ABCB’s forward dividend yield considering the increased payout is 1.3%.

Ameris Bancorp’s Other Capital Distribution Activities

Ameris Bancorp has an ongoing repurchase program, announced in October, authorizing it to buy back up to $100 million worth of shares. The program is set to expire on Oct. 31, 2025. The previous plan, announced in October 2023, authorized the buyback of up to $100 million worth of shares and expired on Oct. 31, 2024. As of Sept. 30, 2024, $8.3 million of shares were repurchased under the previous authorization.

Before that, ABCB had announced a $100 million repurchase plan in October 2022, which expired in October 2023.

Our Take on ABCB Stock

ABCB enjoys a decent balance sheet position. As of Sept. 30, 2024, cash and due from banks were $231.5 million and other borrowings were $346.4 million. Further, net loans were $20.6 billion and total deposits were $21.9 billion.

Further, at the end of the third quarter of 2024, its common equity Tier-1 capital ratio of 12.16% and the total capital ratio of 15.35% were well above regulatory requirements.

Given the decent capital and liquidity positions, ABCB is expected to sustain its current capital distribution activities and enhance shareholder value.

Year to date, shares of Ameris Bancorp have risen 17% compared with the industry’s 23.7% growth.

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ABCB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Firms That Announced Dividend Hike

Earlier this month, ServisFirst Bancshares, Inc.’s (SFBS - Free Report) board of directors approved an increase in its quarterly dividend to 34 cents per share, marking a 12% hike from the prior payout. The increased amount will be paid out on Jan. 10, 2025, to shareholders on record as of Jan. 2.

SBFS has hiked its dividend every year since 2014. Before the latest hike, the company increased its dividend by 7.1% to 30 cents per share in December 2023.
 
Similarly, SEI Investments Company’s (SEIC - Free Report) board of directors announced a semi-annual cash dividend of 49 cents per share, representing an increase of 6.5% from the prior payout. The dividend will be paid out on Jan. 8, 2025, to shareholders on record as of Dec. 27, 2024.

Prior to this, the company increased its dividend by 7% to 46 cents per share in December 2023. SEIC has raised its semi-annual dividend six times in the last five years.


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