The First Bancshares, Inc. (“FBMS” or “the Company”) (NYSE:
FBMS), holding company for The First Bank, (www.thefirstbank.com)
reported today financial results for the quarter ended June 30,
2024.
Highlights for the Quarter:
- Net income available to common shareholders totaled $19.7
million for the quarter ended June 30, 2024, representing a
decrease of 4.5% when compared to $20.6 million for the quarter
ended March 31, 2024. The Company recorded $1.7 million provision
for credit losses for the quarter ended June 30, 2024 and no
provision for credit losses for the quarter ended March 31,
2024.
- Pre-tax pre-provision operating earnings (non-GAAP) totaled
$27.4 million for the quarter ended June 30, 2024, representing an
increase of 2.9% when compared to $26.6 million for the quarter
ended March 31, 2024.
- Total loans increased $110.9 million during the quarter ended
June 30, 2024, which represented an annualized increase of
8.6%.
- Annualized net interest margin increased 6 basis points to
3.26% for the quarter ended June 30, 2024 from 3.20% for the
quarter ended March 31, 2024.
- Core net interest margin increased 9 basis points during the
quarter ended June 30, 2024 from 3.10% to 3.19%.
- Cost of deposits averaged 178 basis points for the second and
first quarter of 2024.
- Past due loans to total loans were $20.8 million or 0.40% for
the quarter ending June 30, 2024, compared to $13.4 million, or
0.26% for the quarter ending March 31, 2024, and $12.6 million, or
0.25% for the quarter ending June 30, 2023.
- Annualized quarter-to-date net charge-offs to total loans were
$0.5 million, or 0.04% for the quarter ending June 30, 2024,
compared to $0.1 million, or 0.01% for the quarter ending March 31,
2024 and $0.8 million, or 0.07% for the quarter ending June 30,
2023.
- Nonperforming assets to total assets were $21.1 million, or
0.26% for the quarter ending June 30, 2024, compared to $18.4
million, or 0.23% for the quarter ending March 31, 2024, and $21.6
million, 0.28% for the quarter ending June 30, 2023.
- On May 17, 2024, the Company, acting pursuant to authorization
from its Board of Directors, provided written notice to The Nasdaq
Stock Market LLC ("Nasdaq") of its determination to voluntarily
withdraw the principal listing of the Company's voting common
stock, $1.00 par value per share (the "Common Stock"), from Nasdaq
and transfer the listing to the New York Stock Exchange ("NYSE").
The listing and trading of the Common Stock on Nasdaq ended at
market close on May 29, 2024, and trading commenced on the NYSE at
market open on May 30, 2024. The Common Stock is traded on the NYSE
under the symbol "FBMS."
- For additional information, see the investor presentation filed
and available under presentations and press releases included in
the investor relations section of the Company's website:
www.thefirstbank.com.
M. Ray “Hoppy” Cole, Jr., President and Chief Executive Officer,
commented, "We are pleased with the results of the second quarter.
Strong loan growth and improvement in our net interest margin
combined to produce a 2.9% increase in pre- tax pre- provision
income. Credit quality continued to be solid and operating expenses
were well controlled. Our markets continue to do well and we are
optimistic about our performance for the second half of 2024."
Quarterly Earnings
Net income available to common shareholders totaled $19.7
million for the quarter ended June 30, 2024, a decrease of $0.9
million, or 4.5%, when compared to $20.6 million for the quarter
ended March 31, 2024.
Excluding one-time items detailed in the tables included with
this press release, net earnings available to common shareholders,
operating (non-GAAP) decreased $0.7 million, or 3.3%, to $20.0
million for quarter ended June 30, 2024 as compared to $20.6
million for the quarter ended March 31, 2024. The decrease in net
earnings is largely attributable to an increase in provision for
credit losses of $1.7 million, which was due primarily to loan
growth.
The Company recorded $1.7 million provision for credit losses
for the quarter ended June 30, 2024 and no provision for credit
losses for the quarter ended March 31, 2024.
Earnings Per Share
For the second quarter of 2024, diluted earnings per share were
$0.62 compared to $0.65 for the first quarter of 2024 and $0.75 for
the second quarter of 2023.
Diluted earnings per share, operating (non-GAAP) were $0.63 for
the second quarter of 2024 compared to $0.65 for the first quarter
of 2024 and $0.85 for the second quarter of 2023.
Balance Sheet
Consolidated assets increased $2.0 million to $7.966 billion at
June 30, 2024 from $7.964 billion at March 31, 2024. Loans
increased $110.9 million, or 2.2%, for the quarterly comparison and
deposits decreased $84.2 million for the quarterly comparison.
Total loans were $5.251 billion for the quarter ended June 30,
2024, as compared to $5.140 billion for the quarter ended March 31,
2024, and $5.011 billion for the quarter ended June 30, 2023,
representing an increase of $110.9 million, or 2.2%, for the
sequential quarter comparison, and an increase of $240.0 million,
or 4.8%, for the prior year quarterly comparison.
Total deposits were $6.626 billion for the quarter ended June
30, 2024, as compared to $6.710 billion for the quarter ended March
31, 2024, and $6.492 billion for the quarter ended June 30, 2023,
representing a decrease of $84.2 million, or 1.3%, for the
sequential quarter comparison, and an increase of $133.9 million,
or 2.1%, for the prior year quarterly comparison. Excluding a
decrease in public funds of $38.3 million, deposits decreased $45.9
million, or 0.7% for the sequential quarter comparison.
Non-interest bearing deposits as a percentage of total deposits
increased to 28.2% for the quarter ended June 30, 2024.
Asset Quality
Nonperforming assets totaled $21.1 million at June 30, 2024, an
increase of $2.7 million compared to $18.4 million at March 31,
2024 and a decrease of $0.5 million compared to $21.6 million at
June 30, 2023.
Nonaccrual loans totaled $13.6 million, an increase of $2.6
million as compared to March 31, 2024 and a decrease of $2.5
million as compared to June 30, 2023.
The ratio of the allowance for credit losses (ACL) to total
loans was 1.05% at June 30, 2024, 1.05% at March 31, 2024 and 1.05%
at June 30, 2023. The ratio of annualized net charge-offs to total
loans was 0.04% for the quarter ended June 30, 2024 compared to
0.01% for the quarter ended March 31, 2024 and 0.07% for the
quarter ended June 30, 2023.
Second Quarter 2024 vs First Quarter 2024 Earnings
Comparison
Net income available to common shareholders for the second
quarter of 2024 decreased $0.9 million to $19.7 million compared to
$20.6 million for the first quarter of 2024. The Company recorded a
$1.7 million provision for credit losses for the quarter ended June
30, 2024 and none for the quarter ended March 31, 2024.
Excluding one-time items detailed in the tables included with
this press release, net earnings available to common shareholders,
operating (non-GAAP) decreased $0.7 million, or 3.3%, to $20.0
million for quarter ended June 30, 2024 as compared to $20.6
million for the quarter ended March 31, 2024. The decrease in net
earnings is largely attributable to an increase in provision for
credit losses of $1.7 million.
Net interest income for the second quarter of 2024 was $57.8
million as compared to $57.3 million for the first quarter of 2024,
an increase of $0.5 million. The increase was largely due to the
decrease in interest expense on borrowings of $1.1 million offset
by a decrease in interest income of $0.6 million.
Second quarter 2024 net interest margin of 3.26% included 12
basis points related to purchase accounting adjustments compared to
3.20% for the first quarter in 2024, which included 15 basis points
related to purchase accounting adjustments.
Core net interest margin increased 9 basis points to 3.19% for
the second quarter of 2024 from 3.10% for the first quarter of
2024.
Investment securities increased $26.0 million to $1.771 billion,
or 22.2% of total assets at June 30, 2024, compared to $1.745
billion, or 21.9% of total assets at March 31, 2024. The average
balance of investment securities decreased $23.5 million in
sequential-quarter comparison. The average tax equivalent yield on
investment securities (non-GAAP) increased 17 basis points to 2.65%
from 2.48% in sequential-quarter comparison. The investment
portfolio had a net unrealized loss of $129.0 million at June 30,
2024 as compared to a net unrealized loss of $127.6 million at
March 31, 2024.
The average yield on all earning assets (non-GAAP) increased in
sequential-quarter comparison from 5.12% to 5.14%. Interest expense
on average interest bearing liabilities decreased 3 basis points
from 2.65% for the first quarter of 2024 to 2.62% for the second
quarter of 2024.
Cost of all deposits averaged 178 basis points for the second
and first quarter of 2024.
Non-interest income increased $0.6 million from $12.7 million in
the first quarter of 2024 to $13.3 million in the second quarter of
2024, primarily attributable to an increase in interchange fee
income of $0.7 million.
Non-interest expense for the second quarter of 2024 was $44.1
million compared to $43.4 million for the first quarter of 2024, an
increase of $0.7 million.
Second Quarter 2024 vs. Second Quarter 2023 Earnings
Comparison
Net income available to common shareholders for the second
quarter of 2024 totaled $19.7 million compared to $23.8 million for
the second quarter of 2023, a decrease of $4.1 million or 17.2%.
This decrease is largely attributable to a decrease in net interest
income of $8.2 million.
Excluding one-time items detailed in the tables included with
this press release, net earnings available to common shareholders,
operating (non-GAAP) decreased $6.9 million, or 25.6%, to $20.0
million for quarter ended June 30, 2024, as compared to $26.8
million for the quarter ended June 30, 2023. This decrease is
attributable to a decrease in net interest income of $8.2 million
offset by a decrease in other expenses of $2.0 million.
Net interest income for the second quarter of 2024 was $57.8
million, a decrease of $8.2 million or 12.5% when compared to the
second quarter of 2023. Fully tax equivalent (“FTE”) net interest
income (non-GAAP) totaled $58.8 million and $67.0 million for the
second quarter of 2024 and 2023, respectively. Purchase accounting
adjustments decreased $4.5 million for the second quarter
comparisons. The decrease was largely due to increased interest
expense due to increased competition for deposits offset by an
increase in interest income of $4.8 million.
Second quarter of 2024 net interest margin was 3.26%, which
included 12 basis points related to purchase accounting adjustments
compared to 3.76% for the same quarter in 2023, which included 37
basis points related to purchase accounting adjustments. Excluding
the purchase accounting adjustments, the core net interest margin
(non-GAAP) decreased 25 basis points in prior year quarterly
comparison primarily due to an increase in rates on interest
bearing liabilities.
Non-interest income increased $0.9 million for the second
quarter of 2024 as compared to the second quarter of 2023.
Second quarter 2024 non-interest expense was $44.1 million, a
decrease of $2.8 million, or 6.0% as compared to the second quarter
of 2023. Excluding acquisition charges, non-interest expense
increased $0.9 million of which salaries and employee benefits,
occupancy and professional service increased $ 2.6 million offset
by a decrease in other expenses of $2.0 million.
Investment securities totaled $1.771 billion, or 22.2% of total
assets at June 30, 2024, compared to $1.898 billion, or 24.1% of
total assets at June 30, 2023. For the second quarter of 2024
compared to the second quarter of 2023, the average balance of
investment securities decreased $156.4 million. The average tax
equivalent yield on investment securities (non-GAAP) increased 42
basis points to 2.65% from 2.23% in the prior year quarterly
comparison. The investment portfolio had a net unrealized loss of
$129.0 million at June 30, 2024 as compared to a net unrealized
loss of $157.6 million at June 30, 2023.
The average yield on all earning assets increased 23 basis
points in prior year quarterly comparison, from 4.91% for the
second quarter of 2023 to 5.14% for the second quarter of 2024.
Interest expense on average interest bearing liabilities increased
97 basis points from 1.65% for the second quarter of 2023 to 2.62%
for the second quarter of 2024.
Cost of all deposits averaged 178 basis points for the second
quarter of 2024 compared to 91 basis points for the second quarter
of 2023.
Year-to-Date Earnings Comparison
In the year-over-year comparison, net income available to common
shareholders increased $0.3 million, or 0.7%, from $40.1 million
for the six months ended June 30, 2023, to $40.3 million for the
same period ended June 30, 2024.
Net interest income was $115.1 million for the six months ended
June 30, 2024, a decrease of $15.8 million as compared to the same
period ended June 30, 2023, primarily due to an increase in
interest expense on deposits offset by an increase in loan interest
income.
Non-interest income was $26.0 million for the six months ended
June 30, 2024, an increase of $1.0 million as compared to the same
period ended June 30, 2023. An increase in other charges and fees
accounted for the change.
Non-interest expense was $87.5 million for the six months ended
June 30, 2024, a decrease of $5.1 million as compared to the same
period ended June 30, 2023. The decrease was primarily due to
decreased acquisition charges of $7.5 million offset by an increase
in salaries and employee benefits of $2.7 million.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a
cash dividend of $0.25 per share to be paid on its common stock on
August 23, 2024 to shareholders of record as of the close of
business on August 8, 2024.
Conference Call
The Company will host a conference call for analysts and
investors to discuss the Company’s financial results at 10:00 a.m.
Central Time on Thursday, July 25, 2024. Investors and analysts may
participate by clicking on the Participant Conference Link:
https://register.vevent.com/register/BI543394697ff8411dad8a7bcdd9804108.
An audio archive of the conference call along with the transcript
will be available within 24-48 hours after the call and placed in
the Investor Relations section of our website.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg,
Mississippi, is the parent company of The First Bank (“The First”).
Founded in 1996, The First has operations in Mississippi,
Louisiana, Alabama, Florida and Georgia. The Company’s stock is
traded on the New York Stock Exchange under the symbol FBMS.
Information is available on the Company’s website:
www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally
accepted accounting principles (“GAAP”) in the United States and
prevailing practices in the banking industry. However, certain
non-GAAP measures are used by management to supplement the
evaluation of our performance. This press release includes pre-tax,
pre-provision operating earnings, FTE net interest income, FTE net
interest margin, core net interest margin, FTE average yield on
investment securities, FTE average yield on all earning assets,
total tangible common equity, tangible book value per common share,
net earnings available to common shareholders, operating, diluted
earnings per share, operating, efficiency ratio, operating and
certain ratios derived from these non-GAAP financial measures. The
Company believes that the non-GAAP financial measures included in
this press release allow management and investors to understand and
compare results in a more consistent manner for the periods
presented in this press release. Fully-tax equivalent, or "FTE",
financial metrics are measures used by management to evaluate the
corresponding GAAP financial metrics in a manner that takes into
account the tax benefits associated with income sources that are
exempt from state or federal taxes. Core net interest margin is
used by management to measure the net return on earnings assets,
which includes investment securities, loans, and leases but
excludes certain income and expense items that the Company's
management considers to be non-core/adjusted in nature. Similarly,
"operating" financial metrics, including operating efficiency ratio
and operating earnings per share, are used by management to
evaluate operating results exclusive of items that are not
indicative of ongoing operations and impact period-to-period
comparisons. Management uses "tangible" financial metrics,
including tangible common equity and tangible book value, to
measure the value of the Company's assets net of intangible assets,
such as goodwill. Non-GAAP financial measures should be considered
supplemental and not a substitute for the Company’s results
reported in accordance with GAAP for the periods presented, and
other bank holding companies may define or calculate these measures
differently. These non-GAAP financial measures should not be
considered in isolation and do not purport to be an alternative to
net income, earnings per share, net interest income, book value,
net interest margin, common equity, net earnings available to
common shareholders, diluted earnings per share, efficiency ratio,
average yield on investment securities, average yield on all
earning assets, or other GAAP financial measures as a measure of
operating performance. A reconciliation of these non-GAAP financial
measures to the most comparable GAAP measure is provided in this
press release following the Condensed Consolidated Financial
Information (unaudited).
Forward Looking Statements
This news release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute “forward looking statements” within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended.
All statements other than statements of historical fact are
forward-looking statements. Such statements can generally be
identified by such words as “believes,” “anticipates,” “expects,”
“may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,”
“intends,” “targets,” “estimates,” “projects,” “plans,”
“potential,” “positioned” and other similar words and expressions
of the future or otherwise regarding the outlook for the Company’s
future business and financial performance and/or the performance of
the banking industry and economy in general. Prospective investors
are cautioned that any such forward-looking statements are not
guarantees of future performance and involve known and unknown risk
and uncertainties which may cause the actual results, performance
or achievements of the Company to be materially different from the
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are
based on the information known to, and current beliefs and
expectations of, the Company’s management and are subject to
significant risks and uncertainties. Actual results may differ
materially from those contemplated by such forward-looking
statements. Factors that might cause such differences include, but
are not limited to: (1) competitive pressures among financial
institutions increasing significantly; (2) prevailing, or changes
in, economic or political conditions, either nationally or locally,
particularly in areas in which the Company conducts operations,
including the effects of declines in the real estate market, high
unemployment rates, inflationary pressure, elevated interest rates
and slowdowns in economic growth, as well as the financial stress
on borrowers as a result of the foregoing; (3) interest rate risk,
including the effects of rising interest rates; (4) developments in
our mortgage banking business, including loan modifications,
general demand, and the effects of judicial or regulatory
requirements or guidance; (5) changes in applicable laws, rules, or
regulations; (6) risks related to the Company’s recently completed
acquisitions, including that the anticipated benefits from the
recently completed acquisitions are not realized in the time frame
anticipated or at all as a result of changes in general economic
and market conditions or other unexpected factors or events; (7)
changes in management’s plans for the future; (8) credit risk
associated with our lending activities; (9) changes in loan demand,
real estate values, or competition; (10) changes in accounting
principles, policies, or guidelines; (11) adverse results from
current or future litigation, regulatory examinations or other
legal and/or regulatory actions, including as a result of the
Company's participation in and execution of government programs
related to the COVID-19 pandemic and related variants; (12) higher
inflation and its impacts; (13) significant turbulence or
disruption in the capital or financial markets and the effect of a
fall in stock market prices on our investment securities; (14)
potential impacts of the adverse developments in the banking
industry highlighted by high-profile bank failures, including
impacts on customer confidence, deposit outflows, liquidity and the
regulatory response thereto; (15) the effects of war or other
conflicts including the impacts relating to or resulting from
Russia's military action in Ukraine or the conflict in Israel and
surrounding areas, and (16) other general competitive, economic,
political, and market factors, including those affecting our
business, operations, pricing, products, or services.
These and other factors that could cause results to differ
materially from those described in the forward-looking statements,
as well as a discussion of the risks and uncertainties that may
affect our business, can be found in our Annual Report on Form 10-K
and in other filings we make with the SEC, which are available on
the SEC’s website, http://www.sec.gov. Undue reliance should not be
placed on forward-looking statements. The Company disclaims any
obligation to update such factors or to publicly announce the
results of any revisions to any of the forward-looking statements
included herein to reflect future events or developments.
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(Dollars in thousands except per share
data)
EARNINGS DATA
Quarter
Ended
6/30/24
Quarter
Ended
3/31/24
Quarter
Ended
12/31/23
Quarter
Ended
9/30/23
Quarter
Ended
6/30/23
Total Interest Income
$
91,027
$
91,663
$
88,720
$
85,681
$
86,194
Total Interest Expense
33,233
34,322
31,055
24,977
20,164
Net Interest Income
57,794
57,341
57,665
60,704
66,030
Net Interest Income excluding PPP Fee
Income
57,793
57,340
57,664
60,703
66,029
FTE net interest income*
58,797
58,339
58,651
61,696
67,028
Provision for credit losses
1,650
—
1,250
1,000
1,250
Non-interest income
13,319
12,679
2,346
19,324
12,423
Non-interest expense
44,089
43,425
44,433
47,724
46,899
Earnings before income taxes
25,374
26,595
14,328
31,304
30,304
Income tax expense
5,677
5,967
3,281
6,944
6,525
Net income available to common
shareholders
$
19,697
$
20,628
$
11,047
$
24,360
$
23,779
PER COMMON SHARE DATA
Basic earnings per share
$
0.62
$
0.66
$
0.35
$
0.78
$
0.76
Diluted earnings per share
0.62
0.65
0.35
0.77
0.75
Diluted earnings per share, operating*
0.63
0.65
0.59
0.76
0.85
Quarterly dividends per share
0.25
0.25
0.24
0.23
0.22
Book value per common share at end of
period
30.83
30.45
30.22
28.57
28.64
Tangible book value per common share at
period end*
20.15
19.70
19.35
17.62
17.62
Market price at end of period
25.98
25.95
29.33
26.97
25.84
Shares outstanding at period end
31,525,232
31,528,748
31,399,803
31,404,231
31,406,220
Weighted average shares outstanding:
Basic
31,527,592
31,475,254
31,401,612
31,405,439
31,378,364
Diluted
31,679,827
31,630,745
31,587,506
31,609,564
31,591,665
AVERAGE BALANCE SHEET DATA
Total assets
$
7,939,783
$
8,005,574
$
7,917,303
$
7,873,345
$
7,882,130
Loans and leases
5,202,006
5,158,071
5,145,228
5,038,928
4,982,368
Total deposits
6,625,500
6,599,287
6,440,774
6,466,141
6,501,372
Total common equity
963,445
952,708
901,530
905,070
901,499
Total tangible common equity*
625,586
612,470
558,889
560,071
554,792
SELECTED RATIOS
Annualized return on avg assets (ROA)
0.99
%
1.03
%
0.56
%
1.24
%
1.21
%
Annualized return on avg assets,
operating*
1.01
%
1.03
%
0.95
%
1.22
%
1.36
%
Annualized pre-tax, pre-provision,
operating*
1.38
%
1.33
%
1.31
%
1.62
%
1.81
%
Annualized return on avg common equity,
operating*
8.29
%
8.66
%
8.32
%
10.63
%
11.91
%
Annualized return on avg tangible common
equity, operating*
12.76
%
13.48
%
13.41
%
17.17
%
19.35
%
Average loans to average deposits
78.51
%
78.16
%
79.89
%
77.93
%
76.64
%
FTE Net Interest Margin*
3.32
%
3.26
%
3.33
%
3.52
%
3.82
%
Efficiency Ratio
61.14
%
61.15
%
72.84
%
58.90
%
59.02
%
Efficiency Ratio, operating*
60.65
%
61.14
%
62.00
%
56.06
%
53.87
%
*See reconciliation of non-GAAP financial
measures
CREDIT QUALITY
Allowance for credit losses (ACL) as a %
of total loans
1.05
%
1.05
%
1.05
%
1.05
%
1.05
%
Nonperforming assets to tangible equity +
ACL
3.05
%
2.72
%
3.05
%
3.69
%
3.57
%
Nonperforming assets to total loans +
OREO
0.40
%
0.36
%
0.39
%
0.44
%
0.43
%
Annualized QTD net charge-offs
(recoveries) to total loans
0.036
%
0.006
%
0.061
%
0.004
%
0.070
%
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(in thousands)
BALANCE SHEET
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
Assets
Cash and cash equivalents
$
207,606
$
339,964
$
355,147
$
197,632
$
194,050
Securities available for sale
1,124,462
1,088,568
1,042,365
1,141,971
1,199,103
Securities held to maturity
607,502
622,574
654,539
658,524
663,473
Other investments
39,293
34,094
37,754
35,872
35,725
Total investment securities
1,771,257
1,745,236
1,734,658
1,836,367
1,898,301
Loans held for sale
5,892
4,241
2,914
5,960
6,602
Total loans
5,250,893
5,139,952
5,170,042
5,089,800
5,010,925
Allowance for credit losses
(55,133
)
(53,959
)
(54,032
)
(53,565
)
(52,614
)
Loans, net
5,195,760
5,085,993
5,116,010
5,036,235
4,958,311
Premises and equipment
179,289
181,194
182,162
183,740
186,381
Other Real Estate Owned
6,356
6,743
8,320
4,920
5,588
Goodwill and other intangibles
336,561
338,946
341,332
343,869
346,104
Other assets
263,079
261,442
258,802
275,562
266,771
Total assets
$
7,965,800
$
7,963,759
$
7,999,345
$
7,884,285
$
7,862,108
Liabilities and Shareholders’
Equity
Non-interest bearing deposits
$
1,870,305
$
1,836,952
$
1,849,013
$
1,967,661
$
2,086,666
Interest-bearing deposits
4,755,812
4,873,403
4,613,859
4,512,364
4,405,601
Total deposits
6,626,117
6,710,355
6,462,872
6,480,025
6,492,267
Borrowings
182,400
110,000
390,000
302,000
280,000
Subordinated debentures
123,558
123,472
123,386
128,300
128,214
Other liabilities
61,840
60,020
74,053
76,739
62,181
Total liabilities
6,993,915
7,003,847
7,050,311
6,987,064
6,962,662
Total shareholders’ equity
971,885
959,912
949,034
897,221
899,446
Total liabilities and shareholders’
equity
$
7,965,800
$
7,963,759
$
7,999,345
$
7,884,285
$
7,862,108
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(in thousands except per share
data)
EARNINGS STATEMENT
Three Months Ended
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Interest Income:
Loans, including fees
$
76,269
$
76,172
$
74,357
$
70,349
$
68,057
Investment securities
11,833
11,248
10,803
10,614
10,815
Accretion of purchase accounting
adjustments
2,067
2,627
3,235
4,277
6,533
Other interest income
858
1,616
325
441
789
Total interest income
91,027
91,663
88,720
85,681
86,194
Interest Expense:
Deposits
29,247
29,182
24,489
19,314
14,613
Borrowings
1,956
3,022
4,500
3,556
3,264
Subordinated debentures
1,814
1,887
1,807
1,849
2,138
Accretion of purchase accounting
adjustments
216
231
259
258
149
Total interest expense
33,233
34,322
31,055
24,977
20,164
Net interest income
57,794
57,341
57,665
60,704
66,030
Provision for credit losses
1,650
—
1,250
1,000
1,250
Net interest income after provision for
credit losses
56,144
57,341
56,415
59,704
64,780
Non-interest Income:
Service charges on deposit accounts
3,334
3,367
3,447
3,646
3,425
Mortgage Income
972
704
582
878
773
Interchange Fee Income
4,893
4,195
4,593
5,280
4,543
Gain (Loss) on securities, net
14
(48
)
(9,670
)
2
(48
)
Treasury Awards
—
—
—
6,197
—
Loss on sale of premises and equipment
163
—
(524
)
(104
)
—
Other charges and fees
3,943
4,461
3,918
3,425
3,730
Total non-interest income
13,319
12,679
2,346
19,324
12,423
Non-interest expense:
Salaries and employee benefits
25,045
24,508
23,717
22,807
23,315
Occupancy expense
5,490
5,714
5,688
5,343
5,041
FDIC/OCC premiums
1,020
1,008
1,263
1,158
758
Marketing
59
139
71
559
45
Amortization of core deposit
intangibles
2,385
2,385
2,385
2,385
2,391
Other professional services
2,028
1,833
2,309
1,499
1,570
Acquisition and charter conversion
charges
352
8
593
588
4,101
Other non-interest expense
7,710
7,830
8,407
13,385
9,678
Total non-interest expense
44,089
43,425
44,433
47,724
46,899
Earnings before income taxes
25,374
26,595
14,328
31,304
30,304
Income tax expense
5,677
5,967
3,281
6,944
6,525
Net income available to common
shareholders
$
19,697
$
20,628
$
11,047
$
24,360
$
23,779
Diluted earnings per common share
$
0.62
$
0.65
$
0.35
$
0.77
$
0.75
Diluted earnings per common share,
operating*
$
0.63
$
0.65
$
0.59
$
0.76
$
0.85
*See reconciliation of non-GAAP financial
measures
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(in thousands except per share
data)
EARNINGS STATEMENT
Year to Date
2024
2023
Interest Income:
Loans, including fees
$
152,440
$
132,113
PPP loan fee income
1
209
Investment securities
23,081
22,522
Accretion of purchase accounting
adjustments
4,694
10,002
Other interest income
2,474
1,686
Total interest income
182,690
166,532
Interest Expense:
Deposits
58,429
26,796
Borrowings
4,978
4,223
Subordinated debentures
3,701
4,314
Amortization of purchase accounting
adjustments
447
243
Total interest expense
67,555
35,576
Net interest income
115,135
130,956
Provision for credit losses
1,650
12,250
Net interest income after provision for
credit losses
113,485
118,706
Non-interest Income:
Service charges on deposit accounts
6,701
7,082
Mortgage Income
1,676
1,406
Interchange Fee Income
9,088
9,041
Gain (loss) on securities, net
(34
)
(48
)
Bargain Purchase Gain and gain on sale of
premises and equipment
163
—
Other charges and fees
8,404
7,554
Total non-interest income
25,998
25,035
Non-interest expense:
Salaries and employee benefits
49,553
46,888
Occupancy expense
11,204
10,337
FDIC/OCC premiums
2,028
1,428
Marketing
198
203
Amortization of core deposit
intangibles
4,770
4,793
Other professional services
3,861
2,638
Acquisition & charter conversion
charges
360
7,894
Other non-interest expense
15,540
18,388
Total non-interest expense
87,514
92,569
Earnings before income taxes
51,969
51,172
Income tax expense
11,644
11,122
Net income available to common
shareholders
40,325
40,050
Diluted earnings per common share
$
1.27
$
1.27
Diluted earnings per common share,
operating*
$
1.28
$
1.71
*See reconciliation of non-GAAP financial
measures
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(Dollars in thousands)
COMPOSITION OF LOANS
June 30, 2024
Percent
of Total
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
Percent
of Total
Commercial, financial and agricultural
$
710,808
13.5
%
$
737,511
$
765,422
$
753,120
$
753,415
15.0
%
Real estate – construction
639,931
12.2
%
633,804
629,660
633,682
634,120
12.6
%
Real estate – commercial
2,435,853
46.4
%
2,356,552
2,377,864
2,317,666
2,251,710
44.9
%
Real estate – residential
1,387,102
26.4
%
1,330,589
1,311,395
1,298,980
1,286,343
25.6
%
Lease Financing Receivable
1,749
—
%
1,794
1,292
1,548
1,187
—
%
Obligations of States &
subdivisions
27,286
0.5
%
28,541
29,316
29,650
31,137
0.6
%
Consumer
48,164
0.9
%
51,161
55,094
55,154
53,013
1.1
%
Loans held for sale
5,892
0.1
%
4,241
2,914
5,960
6,602
0.1
%
Total loans
$
5,256,785
100
%
$
5,144,193
$
5,172,957
$
5,095,760
$
5,017,527
100.0
%
COMPOSITION OF DEPOSITS
June 30, 2024
Percent
of Total
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
Percent
of Total
Non-interest bearing
$
1,870,305
28.2
%
$
1,836,952
$
1,849,013
$
1,967,661
$
2,086,666
32.1
%
NOW and other
2,075,566
31.4
%
2,135,343
1,914,792
1,962,383
2,014,420
31.0
%
Money Market/Savings
1,573,194
23.7
%
1,656,688
1,623,311
1,532,822
1,565,212
24.1
%
Time Deposits of less than $250,000
825,460
12.5
%
816,153
813,877
766,553
627,782
9.7
%
Time Deposits of $250,000 or more
281,591
4.2
%
265,219
261,879
250,606
198,187
3.1
%
Total Deposits
$
6,626,116
100
%
$
6,710,355
$
6,462,872
$
6,480,025
$
6,492,267
100.0
%
ASSET QUALITY DATA
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
Nonaccrual loans
$
13,553
$
10,961
$
10,691
$
17,423
$
16,037
Loans past due 90 days and over
1,174
687
1,163
53
—
Total nonperforming loans
14,727
11,648
11,854
17,476
16,037
Other real estate owned
6,356
6,743
8,320
4,920
5,588
Total nonperforming assets
$
21,083
$
18,391
$
20,174
$
22,396
$
21,625
Nonperforming assets to total assets
0.26
%
0.23
%
0.25
%
0.28
%
0.28
%
Nonperforming assets to total loans +
OREO
0.40
%
0.36
%
0.39
%
0.44
%
0.43
%
ACL to nonperforming loans
374.37
%
463.25
%
455.81
%
306.51
%
328.08
%
ACL to total loans
1.05
%
1.05
%
1.05
%
1.05
%
1.05
%
Qtr-to-date net charge-offs
(recoveries)
$
476
$
73
$
783
$
49
$
837
Annualized QTD net chg-offs (recs) to
loans
0.036
%
0.006
%
0.061
%
0.004
%
0.070
%
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Condensed Consolidated Financial
Information (unaudited)
(in thousands)
Yield
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Analysis
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Tax
Tax
Tax
Tax
Tax
Avg
Equivalent
Yield/
Avg
Equivalent
Yield/
Avg
Equivalent
Yield/
Avg
Equivalent
Yield/
Avg
Equivalent
Yield/
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Taxable securities
$
1,328,780
$
8,868
2.67
%
$
1,342,644
$
8,303
2.47
%
$
1,375,695
$
7,892
2.29
%
$
1,419,343
$
7,685
2.17
%
$
1,473,166
$
7,867
2.14
%
Tax-exempt securities
458,752
3,968
3.46
%
468,432
3,944
3.37
%
446,348
3,897
3.49
%
463,329
3,921
3.39
%
470,742
3,946
3.35
%
Total investment securities
1,787,532
12,836
2.87
%
1,811,076
12,247
2.70
%
1,822,043
11,789
2.59
%
1,882,672
11,606
2.47
%
1,943,908
11,813
2.43
%
Int bearing dep in other banks
99,290
858
3.46
%
189,785
1,616
3.41
%
70,193
325
1.85
%
79,448
441
2.22
%
93,464
789
3.38
%
Loans
5,202,006
78,336
6.02
%
5,158,071
78,798
6.11
%
5,145,228
77,592
6.03
%
5,038,928
74,626
5.92
%
4,982,368
74,590
5.99
%
Total interest earning assets
7,088,828
92,030
5.19
%
7,158,932
92,661
5.18
%
7,037,464
89,706
5.10
%
7,001,048
86,673
4.95
%
7,019,740
87,192
4.97
%
Other assets
850,955
846,642
879,839
872,297
862,390
Total assets
$
7,939,783
$
8,005,574
$
7,917,303
$
7,873,345
$
7,882,130
Interest-bearing liabilities:
Deposits
$
4,795,120
$
29,463
2.46
%
$
4,803,277
$
29,412
2.45
%
$
4,533,386
$
24,748
2.18
%
$
4,459,869
$
19,572
1.76
%
$
4,465,800
$
14,762
1.32
%
Borrowed Funds
157,045
1,956
4.98
%
254,505
3,023
4.75
%
361,445
4,500
4.98
%
296,963
3,556
4.79
%
277,531
3,264
4.70
%
Subordinated debentures
123,510
1,814
5.87
%
123,424
1,887
6.12
%
126,925
1,807
5.69
%
128,251
1,849
5.77
%
145,418
2,138
5.88
%
Total interest bearing
liabilities
5,075,675
33,233
2.62
%
5,181,206
34,322
2.65
%
5,021,756
31,055
2.47
%
4,885,083
24,977
2.05
%
4,888,749
20,164
1.65
%
Other liabilities
1,900,663
1,871,660
1,994,017
2,083,192
2,091,882
Shareholders' equity
963,445
952,708
901,530
905,070
901,499
Total liabilities and
shareholders' equity
$
7,939,783
$
8,005,574
$
7,917,303
$
7,873,345
$
7,882,130
Net interest
income (FTE)*
$
58,797
2.57
%
$
58,339
2.53
%
$
58,651
2.63
%
$
61,696
2.91
%
$
67,028
3.32
%
Net interest margin (FTE)*
3.32
%
3.26
%
3.33
%
3.52
%
3.82
%
Core net interest margin*
3.19
%
3.10
%
3.14
%
3.27
%
3.43
%
*See reconciliation for non-GAAP financial
measures
THE FIRST BANCSHARES, INC and
SUBSIDIARIES
Reconciliation of Non-GAAP Financial
Measures (unaudited)
(in thousands except per share
data)
Three Months Ended
Per Common Share Data
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Book value per common share
$
30.83
$
30.45
$
30.22
$
28.57
$
28.64
Effect of intangible assets per share
10.68
10.75
10.87
10.95
11.02
Tangible book value per common share
$
20.15
$
19.70
$
19.35
$
17.62
$
17.62
Diluted earnings per share
$
0.62
$
0.65
$
0.35
$
0.77
$
0.75
Effect of acquisition and charter
conversion charges
0.01
—
0.02
0.02
0.13
Tax on acquisition and charter conversion
charges
—
—
(0.01
)
(0.01
)
(0.03
)
Effect of Treasury awards
—
—
—
(0.20
)
—
Tax on Treasury awards
—
—
—
0.05
—
Effect on
contributions/consulting/advertising related to Treasury awards
—
—
—
0.17
—
Tax on
contributions/consulting/advertising related to Treasury awards
—
—
—
(0.04
)
—
Loss on securities repositioning
—
—
0.31
—
—
Tax loss on securities repositioning
—
—
(0.08
)
—
—
Diluted earnings per share, operating
$
0.63
$
0.65
$
0.59
$
0.76
$
0.85
Year to Date
2024
2023
Diluted earnings per share
$
1.27
$
1.27
Effect of acquisition and charter
conversion charges
0.01
0.25
Tax on acquisition and charter conversion
charges
—
(0.06
)
Initial provision for acquired loans
—
0.34
Tax on initial provision for acquired
loans
—
(0.09
)
Diluted earnings per share, operating
$
1.28
$
1.71
Year to Date
2024
2023
Net income available to common
shareholders
$
40,325
$
40,050
Acquisition and charter conversion
charges
360
7,894
Tax on acquisition and charter conversion
charges
(91
)
(1,997
)
Initial provision for acquired loans
—
10,727
Tax on initial provision for acquired
loans
—
(2,714
)
Net earnings available to common
shareholders, operating
$
40,594
$
53,960
Three Months Ended
Average Balance Sheet Data
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Total average assets
A
$
7,939,783
$
8,005,574
$
7,917,303
$
7,873,345
$
7,882,130
Total average earning assets
B
$
7,088,828
$
7,158,932
$
7,037,464
$
7,001,048
$
7,019,740
Common Equity
C
$
963,445
$
952,708
$
901,530
$
905,070
$
901,499
Less intangible assets
337,859
340,238
342,641
344,999
346,707
Total Tangible common equity
D
$
625,586
$
612,470
$
558,889
$
560,071
$
554,792
Three Months Ended
Net Interest Income Fully Tax
Equivalent
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Net interest income
E
$
57,794
$
57,341
$
57,665
$
60,704
$
66,030
Tax-exempt investment income
(2,965
)
(2,946
)
(2,911
)
(2,929
)
(2,948
)
Taxable investment income
3,968
3,944
3,897
3,921
3,946
Net Interest Income Fully Tax
Equivalent
F
$
58,797
$
58,339
$
58,651
$
61,696
$
67,028
Annualized Net Interest Margin
E/B
3.26
%
3.20
%
3.28
%
3.47
%
3.76
%
Annualized Net Interest Margin, Fully Tax
Equivalent
F/B
3.32
%
3.26
%
3.33
%
3.52
%
3.82
%
Total Interest Income, Fully Tax
Equivalent
Total Interest Income
R
$
91,027
$
91,663
$
88,720
$
85,681
$
86,194
Tax-exempt investment income
(2,965
)
(2,946
)
(2,911
)
(2,929
)
(2,948
)
Taxable investment income
3,968
3,944
3,897
3,921
3,946
Total Interest Income, Fully Tax
Equivalent
G
$
92,030
$
92,661
$
89,706
$
86,673
$
87,192
Yield on Average Earning Assets
R/B
5.14
%
5.12
%
5.04
%
4.90
%
4.91
%
Yield on Average Earning Assets, Fully Tax
Equivalent
G/B
5.19
%
5.18
%
5.10
%
4.95
%
4.97
%
Interest Income Investment Securities,
Fully Tax Equivalent
Interest Income Investment Securities
S
$
11,833
$
11,248
$
10,803
$
10,614
$
10,815
Tax-exempt investment income
(2,965
)
(2,946
)
(2,911
)
(2,929
)
(2,948
)
Taxable investment Income
3,968
3,944
3,897
3,921
3,946
Interest Income Investment Securities,
Fully Tax Equivalent
H
$
12,836
$
12,246
$
11,789
$
11,606
$
11,813
Average Investment Securities
I
$
1,787,532
$
1,811,076
$
1,822,043
$
1,882,672
$
1,943,908
Yield on Investment Securities
S/I
2.65
%
2.48
%
2.37
%
2.26
%
2.23
%
Yield on Investment Securities, Fully Tax
Equivalent
H/I
2.87
%
2.70
%
2.59
%
2.47
%
2.43
%
Three Months Ended
Core Net Interest Margin
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Net interest income (FTE)
$
58,797
$
58,339
$
58,651
$
61,696
$
67,028
Less purchase accounting adjustments
2,067
2,627
3,235
4,276
6,533
Net interest income, net of purchase
accounting adj
J
$
56,730
$
55,712
$
55,416
$
57,420
$
60,495
Total average earning assets
$
7,088,828
$
7,158,932
$
7,037,464
$
7,001,048
$
7,019,740
Add average balance of loan valuation
discount
22,341
24,675
27,573
31,269
38,306
Avg earning assets, excluding loan
valuation discount
K
$
7,111,169
$
7,183,607
$
7,065,037
$
7,032,317
$
7,058,046
Core net interest margin
J/K
3.19
%
3.10
%
3.14
%
3.27
%
3.43
%
Three Months Ended
Efficiency Ratio
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Operating Expense
Total non-interest expense
$
44,089
$
43,425
$
44,433
$
47,724
$
46,899
Pre-tax non-operating expenses
(352
)
(8
)
(594
)
(5,777
)
(4,101
)
Adjusted Operating Expense
L
$
43,737
$
43,417
$
43,839
$
41,947
$
42,798
Operating Revenue
Net interest income, FTE
$
58,797
$
58,339
$
58,651
$
61,696
$
67,028
Total non-interest income
13,319
12,679
2,346
19,324
12,423
Pre-tax non-operating items
—
—
9,708
(6,197
)
—
Adjusted Operating Revenue
M
$
72,116
$
71,018
$
70,705
$
74,823
$
79,451
Efficiency Ratio, operating
L/M
60.65
%
61.14
%
62.00
%
56.06
%
53.87
%
Three Months Ended
Return Ratios
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Net income available to common
shareholders
N
$
19,697
$
20,628
$
11,047
$
24,360
$
23,779
Acquisition and charter conversion
charges
352
8
593
588
4,101
Tax on acquisition and charter conversion
charges
(89
)
(2
)
(150
)
(149
)
(1,037
)
Treasury awards
—
—
—
(6,197
)
—
Tax on Treasury awards
—
—
—
1,568
—
Contributions/consulting/advertising
related to Treasury awards
—
—
—
5,190
—
Tax on
contributions/consulting/advertising related to Treasury awards
—
—
—
(1,313
)
—
Loss on securities repositioning
—
—
9,708
—
—
Tax loss on securities repositioning
—
—
(2,457
)
—
—
Net earnings available to common
shareholders, operating
O
$
19,960
$
20,634
$
18,741
$
24,047
$
26,843
Three Months Ended
Pre-Tax Pre-Provision Operating
Earnings
June 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Earnings before income taxes
P
$
25,374
$
26,595
$
14,328
$
31,304
$
30,304
Acquisition and charter conversion
charges
352
8
593
588
4,101
Provision for credit losses
1,650
—
1,250
1,000
1,250
Treasury awards
—
—
—
(6,197
)
—
Contributions/consulting/advertising
related to Treasury awards
—
—
—
5,190
—
Loss on securities repositioning
—
—
9,708
—
—
Pre-Tax, Pre-Provision Operating
Earnings
Q
$
27,376
$
26,603
$
25,879
$
31,885
$
35,655
Annualized return on avg assets
N/A
0.99
%
1.03
%
0.56
%
1.24
%
1.21
%
Annualized return on avg assets, oper
O/A
1.01
%
1.03
%
0.95
%
1.22
%
1.36
%
Annualized pre-tax, pre-provision,
oper
Q/A
1.38
%
1.33
%
1.31
%
1.62
%
1.81
%
Annualized return on avg common equity,
oper
O/C
8.29
%
8.66
%
8.32
%
10.63
%
11.91
%
Annualized return on avg tangible common
equity, operating
O/D
12.76
%
13.48
%
13.41
%
17.17
%
19.35
%
Three Months Ended
Capital Ratios
June 30, 2024*
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Common equity tier 1 (CET1) ratio
12.4
%
12.2
%
12.1
%
12.0
%
11.5
%
Leverage (Tier 1) ratio
10.0
%
9.7
%
9.7
%
9.6
%
9.1
%
Total risk based capital ratio
15.3
%
15.2
%
15.0
%
15.1
%
14.5
%
Tangible common equity ratio
8.3
%
8.1
%
7.9
%
7.3
%
7.4
%
*estimated
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723507823/en/
M. Ray “Hoppy” Cole Chief Executive Officer Dee Dee Lowery Chief
Financial Officer (601) 268-8998
First Bancshares (NYSE:FBMS)
過去 株価チャート
から 6 2024 まで 7 2024
First Bancshares (NYSE:FBMS)
過去 株価チャート
から 7 2023 まで 7 2024
