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The First Bancshares, Inc. Reports Results for Fourth Quarter ended December 31, 2023; Increases Quarterly Dividend 4%

The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended December 31, 2023.

Highlights for the quarter:

  • Net income available to common shareholders totaled $11.0 million for the quarter ended December 31, 2023, representing a decrease of 54.7% when compared to $24.4 million for the quarter ended September 30, 2023. Several one-time items are detailed in the tables located in the appendix of this release.
  • Excluding one-time items detailed in the tables located in the appendix of this release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1% to $18.7 million for the quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023.
  • For the quarter ended December 31, 2023, total loans increased $80.2 million, or 6.3%, on an annualized basis, as compared to the quarter ended September 30, 2023.
  • During the fourth quarter of 2023, The First Bank (the "First") sold $123.0 million in available-for-sale securities with a weighted average book yield of 1.12% and average remaining life of 3 years. The First recognized a pre-tax loss of $9.7 million. The First reinvested the proceeds of the sale in available-for-sale bonds in the amount of $92.0 million with a weighted average life of 6 years and an average book yield of 5.33%. The balance sheet repositioning is expected to result in increases in net interest margin of 8 basis points, and net interest income of $4.7 million, and earnings per share of $0.11 with an estimated earn back period of 2.1 years. The First also used $30.0 million of the proceeds to repay borrowings from the Federal Reserve Bank under the Bank Term Funding Program.
  • Net interest margin decreased 19 basis points during the quarter ended December 31, 2023 from 3.47% to 3.28%.
  • Core net interest margin (non-GAAP) decreased 13 basis points during the quarter ended December 31, 2023 from 3.27% to 3.14%.
  • Cost of deposits averaged 154 basis points for the fourth quarter of 2023 compared to 121 basis points for the third quarter 2023.
  • Annualized quarter-to-date net charge-offs and recoveries to total loans were $783 thousand, or 0.061% for the quarter ended December 31, 2023, compared to $49 thousand, or 0.004% for the quarter ended September 30, 2023, and compared to $39 thousand, or 0.004% for the quarter ended December 31, 2022.
  • Nonperforming assets of $20.2 million to total assets was 0.25% for the quarter ended December 31, 2023, compared to $22.4 million, or 0.28% for the quarter ended September 30, 2023, and $17.7 million, 0.27% for the quarter ended December 31, 2022.

Highlights for the year:

  • In the year-over-year comparison, net income available to common shareholders increased $12.5 million, or 19.9%, from $62.9 million for the year ended December 31, 2022 to $75.5 million for the same period ended December 31, 2023.
  • Excluding one-time items detailed in the tables located in the appendix of this release, net earnings available to common shareholders, operating (non-GAAP) increased $28.4 million, or 41.6% to $96.7 million for the year ended December 31, 2023 as compared to $68.3 million for the same period ended December 31, 2022.
  • Excluding the loans acquired from the Heritage Southeast Bank ("Heritage Bank") acquisition of $1.159 billion, total loans increased $236.9 million for the year ended December 31, 2023, representing net growth of 6.3%, as compared to the same period ended December 31, 2022.
  • Past due loans of $11.7 million to total loans was 0.23% for the year ended December 31, 2023, compared to $6.1 million, or 0.16% for the same period ended December 31, 2022.
  • Cost of deposits averaged 109 basis points for the year ended December 31, 2023, compared to 26 basis points for the same period ended December 31, 2022.
  • Fully tax equivalent ("FTE") net interest margin (non-GAAP) increased 40 basis points to 3.59% for the year ended December 31, 2023, compared to 3.19% for the same period ended December 31, 2022.
  • 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 continued to experience margin compression during the fourth quarter as non-GAAP core net interest margin decreased 13 basis points due to increased interest costs and the seasonality of our deposit portfolio. Loan growth and credit remained strong with $80 million of net loan growth for the quarter, or 6.3% on an annualized basis. Non-performing assets decreased for the quarter and past dues were low at 23 basis points.

"For the full year of 2023, the Company produced strong results as average assets grew 22.5% from $6.5 billion to $7.9 billion, non-GAAP operating earnings grew $28.4 million to $96.7 million, a 41.6% increase, and dividends to common shareholders increased 21.6% to $0.90 per share.

"Our team members performed extremely well in 2023, in a very difficult operating environment and we remain focused on increasing the returns to our shareholders.”

Quarterly Earnings

Net income available to common shareholders totaled $11.0 million for the quarter ended December 31, 2023, a decrease of $13.3 million, or 54.7%, when compared to $24.4 million for the quarter ended September 30, 2023. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1%, to $18.7 million for quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023. This decrease was partially attributable to a decrease in accretion income of $1.0 million and an increase in borrowing costs of $0.9 million, as well as increased deposit costs of $5.2 million, each for the quarter ended December 31, 2023.

The Company recorded a provision for credit losses of $1.3 million for the quarter ended December 31, 2023 and $1.0 million for the quarter ended September 30, 2023.

Earnings Per Share

For the fourth quarter of 2023, diluted earnings per share were $0.35 compared to $0.77 for the third quarter of 2023 and $0.67 for the fourth quarter of 2022.

Diluted earnings per share, operating (non-GAAP) were $0.59 for the fourth quarter of 2023 compared to $0.76 for the third quarter of 2023 and $0.71 for the fourth quarter of 2022.

Effective January 1, 2023, the Company issued 6,920,422 shares of its common stock in conjunction with the closing of the acquisition of Heritage Bank.

Balance Sheet

Consolidated assets increased $115.1 million to $7.999 billion at December 31, 2023 from $7.884 billion at September 30, 2023. Loans increased $80.2 million and cash increased $157.5 million for the quarterly comparison.

Total loans were $5.170 billion for the quarter ended December 31, 2023, as compared to $5.090 billion for the quarter ended September 30, 2023, and $3.774 billion for the quarter ended December 31, 2022, representing an increase of $80.2 million, or 1.6%, for the sequential quarter comparison, and increase of $1.396 billion, or 37.0%, for the prior year quarterly comparison. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were recorded from the Heritage Bank acquisition.

Total loans increased $80.2 million, or 1.6% as compared to the quarter ended September 30, 2023, or 6.3% on an annualized basis.

Excluding the acquired Heritage Bank loans, total loans increased $236.9 million, or 6.3% compared to the quarter ended December 31, 2022.

Total deposits were $6.463 billion for the quarter ended December 31, 2023, as compared to $6.480 billion for the quarter ended September 30, 2023, and $5.494 billion for the quarter ended December 31, 2022, representing a decrease of $17.2 million, or 0.3%, for the sequential quarter comparison, and an increase of $968.5 million, or 17.6%, for the prior year quarterly comparison. During January 2023, deposits totaling $1.392 billion, net of purchase accounting adjustments, were acquired in the Heritage Bank acquisition.

Deposits decreased $17.2 million, or 0.3% for the prior quarter comparison. Public funds account for $14.9 million of the decrease in deposits.

Book value per share increased to $30.22 at December 31, 2023 from $28.57 at September 30, 2023.

Tangible book value per share (non-GAAP) increased $1.73 to $19.35 at December 31, 2023 from $17.62 at September 30, 2023. The balance in accumulated other comprehensive loss decreased $47.6 million to $117.6 million at December 31, 2023 from $165.2 million at September 30, 2023.

Asset Quality

Nonperforming assets totaled $20.2 million at December 31, 2023, a decrease of $2.2 million compared to $22.4 million at September 30, 2023 and an increase of $2.5 million compared to $17.7 million at December 31, 2022.

Nonaccrual loans totaled $10.7 million, a decrease of $6.7 million as compared to September 30, 2023 and a decrease of $1.9 million as compared to December 31, 2022.

The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at December 31, 2023, 1.05% at September 30, 2023 and 1.03% at December 31, 2022. The ratio of annualized net charge-offs (recoveries) to total loans was 0.061% for the quarter ended December 31, 2023 compared to 0.004% for the quarter ended September 30, 2023 and 0.004% for the quarter ended December 31, 2022.

Fourth Quarter 2023 vs Third Quarter 2023 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2023 decreased $13.3 million to $11.0 million compared to $24.4 million for the third quarter of 2023. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1%, to $18.7 million for quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023. This decrease was partially attributable to a decrease in accretion income of $1.0 million and an increase in borrowing costs of $0.9 million, as well as increased deposit costs of $5.2 million, each for the quarter ended December 31, 2023.

Net interest income for the fourth quarter of 2023 was $57.7 million as compared to $60.7 million for the third quarter of 2023, a decrease of $3.0 million. The decrease was largely due to the decrease in accretion of purchase accounting adjustments of $1.0 million as well as increased interest expense of $6.1 million partially offset by an increase in loan interest income of $4.0 million.

Fourth quarter 2023 net interest margin of 3.28% included 19 basis points related to purchase accounting adjustments compared to 3.47% for the third quarter in 2023, which included 25 basis points related to purchase accounting adjustments.

Core net interest margin (non-GAAP) decreased 13 basis points to 3.14% for the fourth quarter of 2023 from 3.27% for the third quarter of 2023.

Investment securities totaled $1.735 billion, or 21.7% of total assets at December 31, 2023, compared to $1.836 billion, or 23.3% of total assets at September 30, 2023. The average balance of investment securities decreased $60.6 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 11 basis points to 2.37% from 2.26% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $121.9 million at December 31, 2023 as compared to a net unrealized loss of $184.9 million at September 30, 2023.

The FTE average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 4.95% to 5.10%. Interest expense on average interest bearing liabilities increased 42 basis points from 2.05% for the third quarter of 2023 to 2.47% for the fourth quarter of 2023.

Cost of all deposits averaged 154 basis points for the fourth quarter of 2023 compared to 121 basis points for the third quarter of 2023. This increase was a result of rising interest rates and increased competition for deposits.

Non-interest income decreased $17.0 million from $19.3 million in the third quarter of 2023 to $2.3 million in the fourth quarter of 2023, primarily attributable to a U.S. Treasury award of $6.2 million recorded in the third quarter of 2023 and a loss on sales of available for sale investment securities of $9.7 million recorded in the fourth quarter of 2023.

Non-interest expense for the fourth quarter of 2023 was $44.4 million compared to $47.7 million for the third quarter of 2023, a decrease of $3.3 million. Excluding the $5.2 million related to the U.S. Treasury award recorded in the third quarter of 2023, expenses increased $1.9 million in the fourth quarter of 2023. $0.9 million of non-interest expense for the fourth quarter of 2023 was related to salary accruals for year end, and $0.08 million of non-interest expense for the fourth quarter of 2023 was related to professional services.

Fourth Quarter 2023 vs. Fourth Quarter 2022 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2023 totaled $11.0 million compared to $16.3 million for the fourth quarter of 2022, a decrease of $5.2 million or 32.2%. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.6 million, or 9.06%, to $18.7 million for the quarter ended December 31, 2023, as compared to $17.2 million for the quarter ended December 31, 2022.

Net interest income for the fourth quarter of 2023 was $57.7 million, an increase of $9.7 million or 20.3% when compared to the fourth quarter of 2022. FTE net interest income (non-GAAP) totaled $58.7 million and $48.9 million for the fourth quarter of 2023 and 2022, respectively. Purchase accounting adjustments increased $1.7 million for the fourth quarter comparisons. The increase was largely due to increased interest rates as well as the acquisition of Heritage Bank.

Fourth quarter of 2023 net interest margin was 3.28%, which included 19 basis points related to purchase accounting adjustments compared to 3.31% for the same quarter in 2022, which included 8 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 14 basis points in prior year quarterly comparison primarily due to an increase in rates on interest bearing liabilities.

Non-interest income decreased $5.8 million for the fourth quarter of 2023 as compared to the fourth quarter of 2022. This decrease was attributed to the loss on sales of available for sale investment securities of $9.7 million partially offset by increases of $2.7 million in service charges and interchange fee income.

Fourth quarter 2023 non-interest expense was $44.4 million, an increase of $9.4 million, or 26.8% as compared to the fourth quarter of 2022. This increase was attributed to an increase of $4.9 million in charges related to the ongoing operations of Beach Bank and Heritage Bank, increased FDIC premiums of $0.7 million, and increased amortization of core deposit intangibles of $1.1 million.

Investment securities totaled $1.735 billion, or 21.7% of total assets at December 31, 2023, compared to $1.983 billion, or 30.7% of total assets at December 31, 2022. For the fourth quarter of 2023 compared to the fourth quarter of 2022, the average balance of investment securities decreased $154.6 million. The average tax equivalent yield on investment securities (non-GAAP) increased 9 basis points to 2.37% from 2.28% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $121.9 million at December 31, 2023 as compared to a net unrealized loss of $161.2 million at December 31, 2022.

The average yield on all earning assets increased 104 basis points in prior year quarterly comparison, from 4.00% for the fourth quarter of 2022 to 5.04% for the fourth quarter of 2023. Interest expense on average interest bearing liabilities increased 148 basis points from 0.99% for the fourth quarter of 2022 to 2.47% for the fourth quarter of 2023.

Cost of all deposits averaged 154 basis points for the fourth quarter of 2023 compared to 51 basis points for the fourth quarter of 2022.

Year-to-Date Earnings Comparison

In the year-over-year comparison, net income available to common shareholders increased $12.5 million, or 19.9%, from $62.9 million for the year ended December 31, 2022, to $75.5 million for the same period ended December 31, 2023.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $28.4 million, or 41.6%, to $96.7 million for the year ended December 31, 2023 as compared to $68.3 million for the same period ended December 31, 2022.

Net interest income was $249.3 million for the twelve months ended December 31, 2023, an increase of $71.5 million as compared to the same period ended December 31, 2022, primarily due to interest income earned on a higher volume of loans (including loans acquired from Heritage Bank and Beach Bank).

Non-interest income was $46.7 million for the year ended December 31, 2023, an increase of $9.7 million as compared to the same period ended December 31, 2022. Service charges on deposit accounts and interchange fee income accounted for $11.7 million of the increase.

Non-interest expense was $184.7 million for the year ended December 31, 2023, an increase of $54.2 million as compared to the same period ended December 31, 2022. The increase was partially attributable to $2.7 million in acquisition and charter conversion charges and $32.1 million in increased operating expenses related to the acquisitions of Beach Bank and Heritage Bank as well as $5.2 million in expenses associated with the U.S. Treasury awards and increases in FDIC premiums of $1.7 million and a $4.9 million increase in core deposit amortization for the year ended December 31, 2023.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.25 per share, a 4% increase over previous quarter, per share to be paid on its common stock on February 23, 2024 to shareholders of record as of the close of business on February 7, 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, January 25, 2024. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BIf4b652d4e9ff4cd5a10ec44d884e1480. 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 NASDAQ Global Market 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. 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

12/31/23

 

Quarter

Ended

9/30/23

 

Quarter

Ended

6/30/23

 

Quarter

Ended

3/31/23

 

Quarter

Ended

12/31/22

Total Interest Income

$

88,720

 

 

$

85,681

 

 

$

86,194

 

 

$

80,338

 

 

$

57,923

 

Total Interest Expense

 

31,055

 

 

 

24,977

 

 

 

20,164

 

 

 

15,412

 

 

 

10,002

 

Net Interest Income

 

57,665

 

 

 

60,704

 

 

 

66,030

 

 

 

64,926

 

 

 

47,921

 

Net Interest Income excluding PPP Fee Income

 

57,664

 

 

 

60,703

 

 

 

66,029

 

 

 

64,718

 

 

 

47,899

 

FTE net interest income*

 

58,651

 

 

 

61,696

 

 

 

67,028

 

 

 

65,924

 

 

 

48,916

 

Provision for credit losses

 

1,250

 

 

 

1,000

 

 

 

1,250

 

 

 

11,000

 

 

 

705

 

Non-interest income

 

2,346

 

 

 

19,324

 

 

 

12,423

 

 

 

12,612

 

 

 

8,131

 

Non-interest expense

 

44,433

 

 

 

47,724

 

 

 

46,899

 

 

 

45,670

 

 

 

35,040

 

Earnings before income taxes

 

14,328

 

 

 

31,304

 

 

 

30,304

 

 

 

20,868

 

 

 

20,307

 

Income tax expense

 

3,281

 

 

 

6,944

 

 

 

6,525

 

 

 

4,597

 

 

 

4,012

 

Net income available to common shareholders

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

$

16,271

 

 

$

16,295

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.35

 

 

$

0.78

 

 

$

0.76

 

 

$

0.52

 

 

$

0.68

 

Diluted earnings per share

 

0.35

 

 

 

0.77

 

 

 

0.75

 

 

 

0.52

 

 

 

0.67

 

Diluted earnings per share, operating*

 

0.59

 

 

 

0.76

 

 

 

0.85

 

 

 

0.86

 

 

 

0.71

 

Quarterly dividends per share

 

0.24

 

 

 

0.23

 

 

 

0.22

 

 

 

0.21

 

 

 

0.20

 

Book value per common share at end of period

 

30.22

 

 

 

28.57

 

 

 

28.64

 

 

 

28.58

 

 

 

26.92

 

Tangible book value per common share at period end*

 

19.35

 

 

 

17.62

 

 

 

17.62

 

 

 

17.49

 

 

 

17.97

 

Market price at end of period

 

29.33

 

 

 

26.97

 

 

 

25.84

 

 

 

25.83

 

 

 

32.01

 

Shares outstanding at period end

 

31,399,803

 

 

 

31,404,231

 

 

 

31,406,220

 

 

 

31,364,973

 

 

 

24,025,762

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

31,401,612

 

 

 

31,405,439

 

 

 

31,378,364

 

 

 

31,309,458

 

 

 

24,027,189

 

Diluted

 

31,587,506

 

 

 

31,609,564

 

 

 

31,591,665

 

 

 

31,541,213

 

 

 

24,168,544

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

Total assets

$

7,917,303

 

 

$

7,873,345

 

 

$

7,882,130

 

 

$

8,003,254

 

 

$

6,446,521

 

Loans and leases

 

5,145,228

 

 

 

5,038,928

 

 

 

4,982,368

 

 

 

4,975,663

 

 

 

3,749,561

 

Total deposits

 

6,440,774

 

 

 

6,466,141

 

 

 

6,501,372

 

 

 

6,816,473

 

 

 

5,515,713

 

Total common equity

 

901,530

 

 

 

905,070

 

 

 

901,499

 

 

 

868,995

 

 

 

617,049

 

Total tangible common equity*

 

558,889

 

 

 

560,071

 

 

 

554,792

 

 

 

538,903

 

 

 

408,365

 

 

 

 

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

 

 

 

 

Annualized return on avg assets (ROA)

 

0.56

%

 

 

1.24

%

 

 

1.21

%

 

 

0.81

%

 

 

1.01

%

Annualized return on avg assets, operating*

 

0.95

%

 

 

1.22

%

 

 

1.36

%

 

 

1.36

%

 

 

1.07

%

Annualized pre-tax, pre-provision, operating*

 

1.31

%

 

 

1.62

%

 

 

1.81

%

 

 

1.78

%

 

 

1.38

%

Annualized return on avg common equity, operating*

 

8.32

%

 

 

10.63

%

 

 

11.91

%

 

 

12.48

%

 

 

11.14

%

Annualized return on avg tangible common equity, operating*

 

13.41

%

 

 

17.17

%

 

 

19.35

%

 

 

20.13

%

 

 

16.83

%

Average loans to average deposits

 

79.89

%

 

 

77.93

%

 

 

76.64

%

 

 

72.99

%

 

 

67.98

%

FTE Net Interest Margin*

 

3.33

%

 

 

3.52

%

 

 

3.82

%

 

 

3.69

%

 

 

3.37

%

Efficiency Ratio

 

72.84

%

 

 

58.90

%

 

 

59.02

%

 

 

58.15

%

 

 

61.42

%

Efficiency Ratio, operating*

 

62.00

%

 

 

56.06

%

 

 

53.87

%

 

 

53.32

%

 

 

59.34

%

*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

%

 

 

1.06

%

 

 

1.03

%

Nonperforming assets to tangible equity + ACL

 

3.05

%

 

 

3.69

%

 

 

3.57

%

 

 

3.73

%

 

 

3.76

%

Nonperforming assets to total loans + OREO

 

0.39

%

 

 

0.44

%

 

 

0.43

%

 

 

0.45

%

 

 

0.47

%

Annualized QTD net charge-offs (recoveries) to total loans

 

0.061

%

 

 

0.004

%

 

 

0.070

%

 

 

0.010

%

 

 

0.004

%

 

 

 

 

 

 

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

355,147

 

 

$

197,632

 

 

$

194,050

 

 

$

333,491

 

 

$

145,315

 

Securities available for sale

 

1,042,365

 

 

 

1,141,971

 

 

 

1,199,103

 

 

 

1,249,791

 

 

 

1,257,101

 

Securities held to maturity

 

654,539

 

 

 

658,524

 

 

 

663,473

 

 

 

678,161

 

 

 

691,484

 

Other investments

 

37,754

 

 

 

35,872

 

 

 

35,725

 

 

 

34,423

 

 

 

33,944

 

Total investment securities

 

1,734,658

 

 

 

1,836,367

 

 

 

1,898,301

 

 

 

1,962,375

 

 

 

1,982,529

 

Loans held for sale

 

2,914

 

 

 

5,960

 

 

 

6,602

 

 

 

4,073

 

 

 

4,443

 

Total loans

 

5,170,042

 

 

 

5,089,800

 

 

 

5,010,925

 

 

 

4,969,776

 

 

 

3,774,157

 

Allowance for credit losses

 

(54,032

)

 

 

(53,565

)

 

 

(52,614

)

 

 

(52,450

)

 

 

(38,917

)

Loans, net

 

5,116,010

 

 

 

5,036,235

 

 

 

4,958,311

 

 

 

4,917,326

 

 

 

3,735,240

 

Premises and equipment

 

182,162

 

 

 

183,740

 

 

 

186,381

 

 

 

186,688

 

 

 

153,068

 

Other Real Estate Owned

 

8,320

 

 

 

4,920

 

 

 

5,588

 

 

 

5,066

 

 

 

4,832

 

Goodwill and other intangibles

 

341,332

 

 

 

343,869

 

 

 

346,104

 

 

 

347,777

 

 

 

214,890

 

Other assets

 

258,802

 

 

 

275,562

 

 

 

266,771

 

 

 

260,520

 

 

 

221,400

 

Total assets

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

$

8,017,316

 

 

$

6,461,717

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

1,849,013

 

 

$

1,967,661

 

 

$

2,086,666

 

 

$

2,082,441

 

 

$

1,630,203

 

Interest-bearing deposits

 

4,613,859

 

 

 

4,512,364

 

 

 

4,405,601

 

 

 

4,585,515

 

 

 

3,864,201

 

Total deposits

 

6,462,872

 

 

 

6,480,025

 

 

 

6,492,267

 

 

 

6,667,956

 

 

 

5,494,404

 

Borrowings

 

390,000

 

 

 

302,000

 

 

 

280,000

 

 

 

250,000

 

 

 

130,100

 

Subordinated debentures

 

123,386

 

 

 

128,300

 

 

 

128,214

 

 

 

154,127

 

 

 

145,027

 

Other liabilities

 

74,053

 

 

 

76,739

 

 

 

62,181

 

 

 

48,806

 

 

 

45,523

 

Total liabilities

 

7,050,311

 

 

 

6,987,064

 

 

 

6,962,662

 

 

 

7,120,889

 

 

 

5,815,054

 

Total shareholders’ equity

 

949,034

 

 

 

897,221

 

 

 

899,446

 

 

 

896,427

 

 

 

646,663

 

Total liabilities and shareholders’ equity

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

$

8,017,316

 

 

$

6,461,717

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Three Months Ended

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

Interest Income:

 

 

 

 

 

 

 

 

 

Loans, including fees

$

74,357

 

 

$

70,349

 

 

$

68,057

 

 

$

64,264

 

$

45,583

 

Investment securities

 

10,803

 

 

 

10,614

 

 

 

10,815

 

 

 

11,707

 

 

11,251

 

Accretion of purchase accounting adjustments

 

3,235

 

 

 

4,277

 

 

 

6,533

 

 

 

3,469

 

 

1,086

 

Other interest income

 

325

 

 

 

441

 

 

 

789

 

 

 

898

 

 

3

 

Total interest income

 

88,720

 

 

 

85,681

 

 

 

86,194

 

 

 

80,338

 

 

57,923

 

Interest Expense:

 

 

 

 

 

 

 

 

 

Deposits

 

24,489

 

 

 

19,314

 

 

 

14,613

 

 

 

12,183

 

 

7,206

 

Borrowings

 

4,500

 

 

 

3,556

 

 

 

3,264

 

 

 

959

 

 

1,015

 

Subordinated debentures

 

1,807

 

 

 

1,849

 

 

 

2,138

 

 

 

2,176

 

 

1,946

 

Accretion of purchase accounting adjustments

 

259

 

 

 

258

 

 

 

149

 

 

 

94

 

 

(165

)

Total interest expense

 

31,055

 

 

 

24,977

 

 

 

20,164

 

 

 

15,412

 

 

10,002

 

Net interest income

 

57,665

 

 

 

60,704

 

 

 

66,030

 

 

 

64,926

 

 

47,921

 

Provision for credit losses

 

1,250

 

 

 

1,000

 

 

 

1,250

 

 

 

11,000

 

 

705

 

Net interest income after provision for credit losses

 

56,415

 

 

 

59,704

 

 

 

64,780

 

 

 

53,926

 

 

47,216

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

3,447

 

 

 

3,646

 

 

 

3,425

 

 

 

3,657

 

 

2,277

 

Mortgage Income

 

582

 

 

 

878

 

 

 

773

 

 

 

633

 

 

625

 

Interchange Fee Income

 

4,593

 

 

 

5,280

 

 

 

4,543

 

 

 

4,498

 

 

3,093

 

Gain (Loss) on securities, net

 

(9,670

)

 

 

2

 

 

 

(48

)

 

 

 

 

 

Treasury Awards

 

 

 

 

6,197

 

 

 

 

 

 

 

 

 

Loss on sale of premises and equipment

 

(524

)

 

 

(104

)

 

 

 

 

 

 

 

 

Other charges and fees

 

3,918

 

 

 

3,425

 

 

 

3,730

 

 

 

3,824

 

 

2,136

 

Total non-interest income

 

2,346

 

 

 

19,324

 

 

 

12,423

 

 

 

12,612

 

 

8,131

 

 

 

 

 

 

 

 

 

 

 

Non-interest Expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

23,717

 

 

 

22,807

 

 

 

23,315

 

 

 

23,572

 

 

19,934

 

Occupancy expense

 

5,688

 

 

 

5,343

 

 

 

5,041

 

 

 

5,296

 

 

4,305

 

FDIC/OCC premiums

 

1,263

 

 

 

1,158

 

 

 

758

 

 

 

670

 

 

514

 

Marketing

 

71

 

 

 

559

 

 

 

45

 

 

 

158

 

 

135

 

Amortization of core deposit intangibles

 

2,385

 

 

 

2,385

 

 

 

2,391

 

 

 

2,402

 

 

1,309

 

Other professional services

 

2,309

 

 

 

1,499

 

 

 

1,570

 

 

 

1,068

 

 

971

 

Acquisition and charter conversion charges

 

593

 

 

 

588

 

 

 

4,101

 

 

 

3,793

 

 

1,190

 

Other non-interest expense

 

8,407

 

 

 

13,385

 

 

 

9,678

 

 

 

8,711

 

 

6,682

 

Total non-interest expense

 

44,433

 

 

 

47,724

 

 

 

46,899

 

 

 

45,670

 

 

35,040

 

Earnings before income taxes

 

14,328

 

 

 

31,304

 

 

 

30,304

 

 

 

20,868

 

 

20,307

 

Income tax expense

 

3,281

 

 

 

6,944

 

 

 

6,525

 

 

 

4,597

 

 

4,012

 

Net income available to common shareholders

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

$

16,271

 

$

16,295

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.35

 

 

$

0.77

 

 

$

0.75

 

 

$

0.52

 

$

0.67

 

Diluted earnings per common share, operating*

$

0.59

 

 

$

0.76

 

 

$

0.85

 

 

$

0.86

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

*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

2023

 

2022

Interest Income:

 

 

 

Loans, including fees

$

276,817

 

 

$

152,741

 

PPP loan fee income

 

210

 

 

 

1,718

 

Investment securities

 

43,939

 

 

 

42,575

 

Accretion of purchase accounting adjustments

 

17,514

 

 

 

3,309

 

Other interest income

 

2,453

 

 

 

50

 

Total interest income

 

340,933

 

 

 

200,393

 

Interest Expense:

 

 

 

Deposits

 

70,599

 

 

 

14,295

 

Borrowings

 

12,279

 

 

 

1,107

 

Subordinated debentures

 

7,970

 

 

 

7,492

 

Amortization of purchase accounting adjustments

 

760

 

 

 

(317

)

Total interest expense

 

91,608

 

 

 

22,577

 

Net interest income

 

249,325

 

 

 

177,816

 

Provision for credit losses

 

14,500

 

 

 

5,605

 

Net interest income after provision for credit losses

 

234,825

 

 

 

172,211

 

 

 

 

 

Non-interest Income:

 

 

 

Service charges on deposit accounts

 

14,175

 

 

 

8,668

 

Mortgage Income

 

2,866

 

 

 

4,303

 

Interchange Fee Income

 

18,914

 

 

 

12,702

 

Gain (loss) on securities, net

 

(9,716

)

 

 

(82

)

Treasury Awards

 

6,197

 

 

 

873

 

Bargain Purchase Gain and gain on sale of premises and equipment

 

 

 

 

165

 

BOLI income from death proceeds

 

 

 

 

1,630

 

Other charges and fees

 

14,269

 

 

 

8,702

 

Total non-interest income

 

46,705

 

 

 

36,961

 

 

 

 

 

Non-interest expense:

 

 

 

Salaries and employee benefits

 

93,412

 

 

 

73,077

 

Occupancy expense

 

21,368

 

 

 

15,835

 

FDIC/OCC premiums

 

3,849

 

 

 

2,122

 

Marketing

 

833

 

 

 

393

 

Amortization of core deposit intangibles

 

9,563

 

 

 

4,664

 

Other professional services

 

6,446

 

 

 

3,558

 

Acquisition & charter conversion charges

 

9,075

 

 

 

6,410

 

Other non-interest expense

 

40,180

 

 

 

24,424

 

Total Non-interest expense

 

184,726

 

 

 

130,483

 

Earnings before income taxes

 

96,804

 

 

 

78,689

 

Income tax expense

 

21,347

 

 

 

15,770

 

Net income available to common shareholders

 

75,457

 

 

 

62,919

 

 

 

 

 

Diluted earnings per common share

$

2.39

 

 

$

2.84

 

Diluted earnings per common share, operating*

$

3.06

 

 

$

3.08

 

 

*See reconciliation of Non-GAAP financial measures

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF LOANS

 

December 31,

2023

 

Percent

of Total

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

Percent

of Total

Commercial, financial and agricultural

 

$

765,422

 

 

14.8

%

 

$

753,120

 

 

$

753,415

 

 

$

750,371

 

 

$

506,907

 

 

13.4

%

Real estate – construction

 

 

629,660

 

 

12.2

%

 

 

633,682

 

 

 

634,120

 

 

 

691,285

 

 

 

475,956

 

 

12.6

%

Real estate – commercial

 

 

2,377,864

 

 

45.8

%

 

 

2,317,666

 

 

 

2,251,710

 

 

 

2,181,384

 

 

 

1,626,066

 

 

43.0

%

Real estate – residential

 

 

1,311,395

 

 

25.4

%

 

 

1,298,980

 

 

 

1,286,343

 

 

 

1,262,244

 

 

 

1,094,204

 

 

29.0

%

Lease Financing Receivable

 

 

1,292

 

 

%

 

 

1,548

 

 

 

1,187

 

 

 

2,056

 

 

 

2,118

 

 

0.1

%

Obligations of States & subdivisions

 

 

29,316

 

 

0.6

%

 

 

29,650

 

 

 

31,137

 

 

 

31,652

 

 

 

26,143

 

 

0.7

%

Consumer

 

 

55,094

 

 

1.1

%

 

 

55,154

 

 

 

53,013

 

 

 

50,784

 

 

 

42,763

 

 

1.1

%

Loans held for sale

 

 

2,914

 

 

0.1

%

 

 

5,960

 

 

 

6,602

 

 

 

4,073

 

 

 

4,443

 

 

0.1

%

Total loans

 

$

5,172,957

 

 

100

%

 

$

5,095,760

 

 

$

5,017,527

 

 

$

4,973,849

 

 

$

3,778,600

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPOSITION OF DEPOSITS

 

December 31,

2023

 

Percent

of Total

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

Percent

of Total

Non-interest bearing

 

$

1,849,013

 

 

28.6

%

 

$

1,967,661

 

 

$

2,086,666

 

 

$

2,082,441

 

 

$

1,630,203

 

 

29.7

%

NOW and other

 

 

1,914,792

 

 

29.6

%

 

 

1,962,383

 

 

 

2,014,420

 

 

 

2,095,599

 

 

 

1,769,699

 

 

32.2

%

Money Market/Savings

 

 

1,623,311

 

 

25.1

%

 

 

1,532,822

 

 

 

1,565,212

 

 

 

1,678,609

 

 

 

1,368,108

 

 

24.9

%

Time Deposits of less than $250,000

 

 

813,877

 

 

12.6

%

 

 

766,553

 

 

 

627,782

 

 

 

562,240

 

 

 

590,564

 

 

10.7

%

Time Deposits of $250,000 or more

 

 

261,879

 

 

4.1

%

 

 

250,606

 

 

 

198,187

 

 

 

249,067

 

 

 

135,830

 

 

2.5

%

Total Deposits

 

$

6,462,872

 

 

100

%

 

$

6,480,025

 

 

$

6,492,267

 

 

$

6,667,956

 

 

$

5,494,404

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

December 31,

2023

 

 

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

 

Nonaccrual loans

 

$

10,691

 

 

 

 

$

17,423

 

 

$

16,037

 

 

$

17,312

 

 

$

12,591

 

 

 

Loans past due 90 days and over

 

 

1,163

 

 

 

 

 

53

 

 

 

 

 

 

73

 

 

 

289

 

 

 

Total nonperforming loans

 

 

11,854

 

 

 

 

 

17,476

 

 

 

16,037

 

 

 

17,385

 

 

 

12,880

 

 

 

Other real estate owned

 

 

8,320

 

 

 

 

 

4,920

 

 

 

5,588

 

 

 

5,066

 

 

 

4,832

 

 

 

Total nonperforming assets

 

$

20,174

 

 

 

 

$

22,396

 

 

$

21,625

 

 

$

22,451

 

 

$

17,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.25

%

 

 

 

 

0.28

%

 

 

0.28

%

 

 

0.28

%

 

 

0.27

%

 

 

Nonperforming assets to total loans + OREO

 

 

0.39

%

 

 

 

 

0.44

%

 

 

0.43

%

 

 

0.45

%

 

 

0.47

%

 

 

ACL to nonperforming loans

 

 

455.81

%

 

 

 

 

306.51

%

 

 

328.08

%

 

 

301.70

%

 

 

302.15

%

 

 

ACL to total loans

 

 

1.05

%

 

 

 

 

1.05

%

 

 

1.05

%

 

 

1.06

%

 

 

1.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Qtr-to-date net charge-offs (recoveries)

 

$

783

 

 

 

 

$

49

 

 

$

837

 

 

$

142

 

 

$

39

 

 

 

Annualized QTD net chg-offs (recs) to loans

 

 

0.061

%

 

 

 

 

0.004

%

 

 

0.070

%

 

 

0.010

%

 

 

0.004

%

 

 

 

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

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

 

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

$

1,375,695

$

7,892

2.29

%

 

$

1,419,343

$

7,685

2.17

%

 

$

1,473,166

$

7,867

2.14

%

 

$

1,565,623

$

8,758

2.24

%

 

$

1,522,953

$

8,312

2.18

%

Tax-exempt securities

 

446,348

 

3,897

3.49

%

 

 

463,329

 

3,921

3.39

%

 

 

470,742

 

3,946

3.35

%

 

 

462,718

 

3,946

3.41

%

 

 

453,651

 

3,934

3.47

%

Total investment securities

 

1,822,043

 

11,789

2.59

%

 

 

1,882,672

 

11,606

2.47

%

 

 

1,943,908

 

11,813

2.43

%

 

 

2,028,341

 

12,704

2.51

%

 

 

1,976,604

 

12,246

2.48

%

Int bearing dep in other banks

 

70,193

 

325

1.85

%

 

 

79,448

 

441

2.22

%

 

 

93,464

 

789

3.38

%

 

 

146,663

 

898

2.45

%

 

 

72,910

 

3

0.02

%

Loans

 

5,145,228

 

77,592

6.03

%

 

 

5,038,928

 

74,626

5.92

%

 

 

4,982,368

 

74,590

5.99

%

 

 

4,975,663

 

67,734

5.45

%

 

 

3,749,561

 

46,670

4.98

%

Total interest earning assets

 

7,037,464

 

89,706

5.10

%

 

 

7,001,048

 

86,673

4.95

%

 

 

7,019,740

 

87,192

4.97

%

 

 

7,150,667

 

81,336

4.55

%

 

 

5,799,075

 

58,919

4.06

%

Other assets

 

879,839

 

 

 

 

872,297

 

 

 

 

862,390

 

 

 

 

852,587

 

 

 

 

647,446

 

 

Total assets

$

7,917,303

 

 

 

$

7,873,345

 

 

 

$

7,882,130

 

 

 

$

8,003,254

 

 

 

$

6,446,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

4,533,386

$

24,748

2.18

%

 

$

4,459,869

$

19,572

1.76

%

 

$

4,465,800

$

14,762

1.32

%

 

$

4,738,076

$

12,277

1.04

%

 

$

3,801,632

$

7,041

0.74

%

Borrowed Funds

 

361,445

 

4,500

4.98

%

 

 

296,963

 

3,556

4.79

%

 

 

277,531

 

3,264

4.70

%

 

 

77,098

 

959

4.98

%

 

 

108,881

 

1,015

3.73

%

Subordinated debentures

 

126,925

 

1,807

5.69

%

 

 

128,251

 

1,849

5.77

%

 

 

145,418

 

2,138

5.88

%

 

 

155,084

 

2,176

5.61

%

 

 

144,985

 

1,946

5.37

%

Total interest bearing liabilities

 

5,021,756

 

31,055

2.47

%

 

 

4,885,083

 

24,977

2.05

%

 

 

4,888,749

 

20,164

1.65

%

 

 

4,970,258

 

15,412

1.24

%

 

 

4,055,498

 

10,002

0.99

%

Other liabilities

 

1,994,017

 

 

 

 

2,083,192

 

 

 

 

2,091,882

 

 

 

 

2,164,001

 

 

 

 

1,773,974

 

 

Shareholders' equity

 

901,530

 

 

 

 

905,070

 

 

 

 

901,499

 

 

 

 

868,995

 

 

 

 

617,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

7,917,303

 

 

 

$

7,873,345

 

 

 

$

7,882,130

 

 

 

$

8,003,254

 

 

 

$

6,446,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (FTE)*

 

$

58,651

2.63

%

 

 

$

61,696

2.91

%

 

 

$

67,028

3.32

%

 

 

$

65,924

3.31

%

 

 

$

48,917

3.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)*

 

 

3.33

%

 

 

 

3.52

%

 

 

 

3.82

%

 

 

 

3.69

%

 

 

 

3.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core net interest margin*

 

 

3.14

%

 

 

 

3.27

%

 

 

 

3.43

%

 

 

 

3.47

%

 

 

 

3.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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

Dec 31, 2023

 

Sept 30, 2023

 

June 30, 2023

 

Mar 31, 2023

 

Dec 31, 2022

Book value per common share

$

30.22

 

 

$

28.57

 

 

$

28.64

 

 

$

28.58

 

 

$

26.92

 

Effect of intangible assets per share

 

10.87

 

 

 

10.95

 

 

 

11.02

 

 

 

11.09

 

 

 

8.95

 

Tangible book value per common share

$

19.35

 

 

$

17.62

 

 

$

17.62

 

 

$

17.49

 

 

$

17.97

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.35

 

 

$

0.77

 

 

$

0.75

 

 

$

0.52

 

 

$

0.68

 

Effect of acquisition and charter conversion charges

 

0.02

 

 

 

0.02

 

 

 

0.13

 

 

 

0.11

 

 

 

0.05

 

Tax on acquisition and charter conversion charges

 

(0.01

)

 

 

(0.01

)

 

 

(0.03

)

 

 

(0.02

)

 

 

(0.02

)

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

)

 

 

 

 

 

 

 

 

 

Initial provision for acquired loans

 

 

 

 

 

 

 

 

 

 

0.34

 

 

 

 

Tax on initial provision for acquired loans

 

 

 

 

 

 

 

 

 

 

(0.09

)

 

 

 

Loss on securities repositioning

 

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax loss on securities repositioning

 

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share, operating

$

0.59

 

 

$

0.76

 

 

$

0.85

 

 

$

0.86

 

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

 

 

2023

 

 

 

2022

 

 

Diluted earnings per share

 

 

$

2.39

 

 

 

 

$

2.84

 

 

 

Effect of acquisition and charter conversion charges

 

 

 

0.28

 

 

 

 

 

0.29

 

 

 

Tax on acquisition and charter conversion charges

 

 

 

(0.07

)

 

 

 

 

(0.08

)

 

 

Effect of bargain purchase gain and loss on sale of fixed assets

 

 

 

 

 

 

 

 

(0.01

)

 

 

Effect of Treasury awards

 

 

 

(0.20

)

 

 

 

 

(0.04

)

 

 

Tax on Treasury awards

 

 

 

0.05

 

 

 

 

 

0.01

 

 

 

BOLI income from death proceeds

 

 

 

 

 

 

 

 

(0.08

)

 

 

Effect on contributions/consulting/advertising related to Treasury awards

 

 

 

0.17

 

 

 

 

 

0.01

 

 

 

Tax on contributions/consulting/advertising related to Treasury awards

 

 

 

(0.04

)

 

 

 

 

 

 

 

Initial provision for acquired loans

 

 

 

0.34

 

 

 

 

 

0.18

 

 

 

Tax on initial provision for acquired loans

 

 

 

(0.09

)

 

 

 

 

(0.04

)

 

 

Loss on securities repositioning

 

 

 

0.31

 

 

 

 

 

 

 

 

Tax loss on securities repositioning

 

 

 

(0.08

)

 

 

 

 

 

 

 

Diluted earnings per share, operating

 

 

$

3.06

 

 

 

 

$

3.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

 

 

 

2023

 

 

 

 

 

2022

 

 

 

Net income available to common shareholders

 

 

$

75,457

 

 

 

 

$

62,919

 

 

 

Acquisition and charter conversion charges

 

 

 

9,075

 

 

 

 

 

6,410

 

 

 

Tax on acquisition and charter conversion charges

 

 

 

(2,296

)

 

 

 

 

(1,621

)

 

 

Bargain purchase gain and loss on sale of fixed assets

 

 

 

 

 

 

 

 

(165

)

 

 

Tax on bargain purchase gain and loss on sale of fixed assets

 

 

 

 

 

 

 

 

42

 

 

 

Treasury awards

 

 

 

(6,197

)

 

 

 

 

(872

)

 

 

Tax on Treasury awards

 

 

 

1,568

 

 

 

 

 

221

 

 

 

BOLI income from death proceeds

 

 

 

 

 

 

 

 

(1,630

)

 

 

Contributions/consulting/advertising related to Treasury awards

 

 

 

5,190

 

 

 

 

 

165

 

 

 

Tax on contributions/consulting/advertising related to Treasury awards

 

 

 

(1,313

)

 

 

 

 

(42

)

 

 

Initial provision for acquired loans

 

 

 

10,727

 

 

 

 

 

3,855

 

 

 

Tax on initial provision for acquired loans

 

 

 

(2,714

)

 

 

 

 

(976

)

 

 

Loss on securities repositioning

 

 

 

9,708

 

 

 

 

 

 

 

 

Tax loss on securities repositioning

 

 

 

(2,457

)

 

 

 

 

 

 

 

Net earnings available to common shareholders, operating

 

 

$

96,748

 

 

 

 

$

68,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Average Balance Sheet Data

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Total average assets

A

$

7,917,303

 

$

7,873,345

 

$

7,882,130

 

$

8,003,254

 

$

6,446,521

 

Total average earning assets

B

 

7,037,464

 

 

7,001,048

 

 

7,019,740

 

 

7,150,667

 

 

5,799,075

 

 

 

 

 

 

 

 

Common Equity

C

$

901,530

 

$

905,070

 

$

901,499

 

$

868,995

 

$

617,049

 

Less intangible assets

 

 

342,641

 

 

344,999

 

 

346,707

 

 

330,092

 

 

208,684

 

Total Tangible common equity

D

$

558,889

 

$

560,071

 

$

554,792

 

$

538,903

 

$

408,365

 

 

 

 

 

 

Three Months Ended

Net Interest Income Fully Tax Equivalent

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Net interest income

E

$

57,665

 

$

60,704

 

$

66,030

 

$

64,926

 

$

47,921

 

Tax-exempt investment income

 

 

(2,911

)

 

(2,929

)

 

(2,948

)

 

(2,948

)

 

(2,939

)

Taxable investment income

 

 

3,897

 

 

3,921

 

 

3,946

 

 

3,946

 

 

3,934

 

Net Interest Income Fully Tax Equivalent

F

$

58,651

 

$

61,696

 

$

67,028

 

$

65,924

 

$

48,916

 

 

 

 

 

 

 

 

Annualized Net Interest Margin

E/B

 

3.28

%

 

3.47

%

 

3.76

%

 

3.63

%

 

3.31

%

Annualized Net Interest Margin, Fully Tax Equivalent

F/B

 

3.33

%

 

3.52

%

 

3.82

%

 

3.69

%

 

3.37

%

 

 

 

 

 

 

 

Total Interest Income, Fully Tax Equivalent

 

 

 

 

 

 

Total Interest Income

R

$

88,720

 

$

85,681

 

$

86,194

 

$

80,338

 

$

57,923

 

Tax-exempt investment income

 

 

(2,911

)

 

(2,929

)

 

(2,948

)

 

(2,948

)

 

(2,939

)

Taxable investment income

 

 

3,897

 

 

3,921

 

 

3,946

 

 

3,946

 

 

3,934

 

Total Interest Income, Fully Tax Equivalent

G

$

89,706

 

$

86,673

 

$

87,192

 

$

81,336

 

$

58,918

 

 

 

 

 

 

 

 

Yield on Average Earning Assets

R/B

 

5.04

%

 

4.90

%

 

4.91

%

 

4.49

%

 

4.00

%

Yield on Average Earning Assets, Fully Tax Equivalent

G/B

 

5.10

%

 

4.95

%

 

4.97

%

 

4.55

%

 

4.06

%

 

 

 

 

 

 

 

Interest Income Investment Securities, Fully Tax Equivalent

 

 

 

 

 

 

Interest Income Investment Securities

S

$

10,803

 

$

10,614

 

$

10,815

 

$

11,706

 

$

11,251

 

Tax-exempt investment income

 

 

(2,911

)

 

(2,929

)

 

(2,948

)

 

(2,948

)

 

(2,939

)

Taxable investment Income

 

 

3,897

 

 

3,921

 

 

3,946

 

 

3,946

 

 

3,934

 

Interest Income Investment Securities, Fully Tax Equivalent

H

$

11,789

 

$

11,606

 

$

11,813

 

$

12,704

 

$

12,246

 

 

 

 

 

 

 

 

Average Investment Securities

I

$

1,822,043

 

$

1,882,672

 

$

1,943,908

 

$

2,028,341

 

$

1,976,604

 

 

 

 

 

 

 

 

Yield on Investment Securities

S/I

 

2.37

%

 

2.26

%

 

2.23

%

 

2.31

%

 

2.28

%

Yield on Investment Securities, Fully Tax Equivalent

H/I

 

2.59

%

 

2.47

%

 

2.43

%

 

2.51

%

 

2.48

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Core Net Interest Margin

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Net interest income (FTE)

 

$

58,651

 

$

61,696

 

$

67,028

 

$

65,924

 

$

48,916

 

Less purchase accounting adjustments

 

 

3,235

 

 

4,276

 

 

6,533

 

 

3,469

 

 

1,086

 

Net interest income, net of purchase accounting adj

J

$

55,416

 

$

57,420

 

$

60,495

 

$

62,455

 

$

47,830

 

 

 

 

 

 

 

 

Total average earning assets

 

$

7,037,464

 

$

7,001,048

 

$

7,019,740

 

$

7,150,667

 

$

5,799,075

 

Add average balance of loan valuation discount

 

 

27,573

 

 

31,269

 

 

38,306

 

 

42,945

 

 

10,928

 

Avg earning assets, excluding loan valuation discount

K

$

7,065,037

 

$

7,032,317

 

$

7,058,046

 

$

7,193,612

 

$

5,810,003

 

 

 

 

 

 

 

 

Core net interest margin

J/K

 

3.14

%

 

3.27

%

 

3.43

%

 

3.47

%

 

3.29

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Efficiency Ratio

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Operating Expense

 

 

 

 

 

 

Total non-interest expense

 

$

44,433

 

$

47,724

 

$

46,899

 

$

45,670

 

$

35,040

 

Pre-tax non-operating expenses

 

 

(594

)

 

(5,777

)

 

(4,101

)

 

(3,793

)

 

(1,190

)

Adjusted Operating Expense

L

$

43,839

 

$

41,947

 

$

42,798

 

$

41,877

 

$

33,850

 

 

 

 

 

 

 

 

Operating Revenue

 

 

 

 

 

 

Net interest income, FTE

 

$

58,651

 

$

61,696

 

$

67,028

 

$

65,924

 

$

48,916

 

Total non-interest income

 

 

2,346

 

 

19,324

 

 

12,423

 

 

12,612

 

 

8,131

 

Pre-tax non-operating items

 

 

9,708

 

 

(6,197

)

 

 

 

 

 

 

Adjusted Operating Revenue

M

$

70,705

 

$

74,823

 

$

79,451

 

$

78,536

 

$

57,047

 

 

 

 

 

 

 

 

Efficiency Ratio, operating

L/M

 

62.00

%

 

56.06

%

 

53.87

%

 

53.32

%

 

59.34

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Return Ratios

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Net income available to common shareholders

N

$

11,047

 

$

24,360

 

$

23,779

 

$

16,271

 

$

16,295

 

Acquisition and charter conversion charges

 

 

593

 

 

588

 

 

4,101

 

 

3,793

 

 

1,190

 

Tax on acquisition and charter conversion charges

 

 

(150

)

 

(149

)

 

(1,037

)

 

(960

)

 

(301

)

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

)

 

 

 

 

 

 

Initial provision for acquired loans

 

 

 

 

 

 

 

 

10,727

 

 

 

Tax on initial provision for acquired loans

 

 

 

 

 

 

 

 

(2,714

)

 

 

Loss on securities repositioning

 

 

9,708

 

 

 

 

 

 

 

 

 

Tax loss on securities repositioning

 

 

(2,457

)

 

 

 

 

 

 

 

 

Net earnings available to common shareholders, operating

O

$

18,741

 

$

24,047

 

$

26,843

 

$

27,117

 

$

17,184

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Pre-Tax Pre-Provision Operating Earnings

 

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Earnings before income taxes

P

$

14,328

 

$

31,304

 

$

30,304

 

$

20,868

 

$

20,307

 

Acquisition and charter conversion charges

 

 

593

 

 

588

 

 

4,101

 

 

3,793

 

 

1,190

 

Provision for credit losses

 

 

1,250

 

 

1,000

 

 

1,250

 

 

11,000

 

 

705

 

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

$

25,879

 

$

31,885

 

$

35,655

 

$

35,661

 

$

22,202

 

 

 

 

 

 

 

 

Annualized return on avg assets

N/A

 

0.56

%

 

1.24

%

 

1.21

%

 

0.81

%

 

1.01

%

Annualized return on avg assets, oper

O/A

 

0.95

%

 

1.22

%

 

1.36

%

 

1.36

%

 

1.07

%

Annualized pre-tax, pre-provision, oper

Q/A

 

1.31

%

 

1.62

%

 

1.81

%

 

1.78

%

 

1.38

%

Annualized return on avg common equity, oper

O/C

 

8.32

%

 

10.63

%

 

11.91

%

 

12.48

%

 

11.14

%

Annualized return on avg tangible common equity, operating

O/D

 

13.41

%

 

17.17

%

 

19.35

%

 

20.13

%

 

16.83

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Capital Ratios

 

Dec 31, 2023*

Sept 30, 2023

June 30, 2023

Mar 31, 2023

Dec 31, 2022

Common equity tier 1 (CET1) ratio

 

 

12.1

%

 

12.0

%

 

11.5

%

 

11.2

%

 

12.7

%

Leverage (Tier 1) ratio

 

 

9.7

%

 

9.6

%

 

9.1

%

 

8.8

%

 

9.3

%

Total risk based capital ratio

 

 

15.0

%

 

15.1

%

 

14.5

%

 

14.7

%

 

16.7

%

Tangible common equity ratio

 

 

7.9

%

 

7.3

%

 

7.4

%

 

7.2

%

 

6.9

%

*estimated

 

 

 

 

 

 

 

Contacts

M. Ray “Hoppy” Cole

Chief Executive Officer

Dee Dee Lowery

Chief Financial Officer

(601) 268-8998

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