The First Bancshares, Inc. Reports Results for First Quarter ended March 31, 2024

Published

HATTIESBURG, Miss.--(BUSINESS WIRE)-- 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 March 31, 2024.

Highlights for the Quarter:

  • Net income available to common shareholders totaled $20.6 million for the quarter ended March 31, 2024, representing an increase of 86.7% when compared to $11.0 million for the quarter ended December 31, 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) increased $1.9 million, or 10.1% to $20.6 million for the quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023.
  • Total deposits increased $247.5 million for the quarter ended March 31, 2024 representing an increase of 3.8% as compared to the quarter ended December 31, 2023.
  • Annualized net interest margin decreased 8 basis points to 3.20% for the quarter ended March 31, 2024 from 3.28% for the quarter ended December 31, 2023 due to the reduction of accretion income as well as increased deposit cost.
  • Core net interest margin decreased 4 basis points during the quarter ended March 31, 2024 from 3.14% to 3.10%.
  • Cost of deposits averaged 178 basis points for the first quarter of 2024 compared to 154 basis points for the fourth quarter 2023.
  • Total loans decreased $30.1 million for the quarter ended March 31, 2024, representing net decrease of 2.3% on an annualized basis, as compared to the quarter ended December 31, 2023. SBA loan sales represented $23.1 million of the decrease.
  • Past due loans to total loans were $13.4 million or 0.26% for the quarter ending March 31, 2024, compared to $11.7 million, or 0.23% for the quarter ending December 31, 2023, and $11.6 million, or 0.23% for the quarter ending March 31, 2023.
  • Annualized quarter-to-date net charge-offs to total loans were $0.1 million, or 0.01% for the quarter ending March 31, 2024, compared to $0.8 million, or 0.06% for the quarter ending December 31, 2023 and $0.1 million, or 0.01% for the quarter ending March 31, 2023.
  • Nonperforming assets to total assets were $18.4 million, or 0.23% for the quarter ending March 31, 2024, compared to $20.2 million, or 0.25% for the quarter ending December 31, 2023, and $22.5 million, 0.28% for the quarter ending March 31, 2023.
  • 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 our overall results for the quarter. Operating income increased 10% quarter over quarter due to reduced operating expenses and some stabilization in the margin. Total deposits increased $42 million or 0.6% year over year and although loans were down at quarter end, pipelines actually grew and are in a strong position for this point in the year. Credit quality remains stable with low past dues and low non-performing assets. All in all, a solid quarter and good start to the year.”

Quarterly Earnings

Net income available to common shareholders totaled $20.6 million for the quarter ended March 31, 2024, an increase of $9.6 million, or 86.7%, when compared to $11.0 million for the quarter 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 $1.9 million, or 10.1%, to $20.6 million for quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023. The increase in net earnings is attributable to a decrease in non-interest expense of $1.0 million and a decrease in provision for credit losses of $1.3 million.

The Company recorded no provision for credit losses for the quarter ended March 31, 2024 and $1.3 million for the quarter ended December 31, 2023.

Earnings Per Share

For the first quarter of 2024, diluted earnings per share were $0.65 compared to $0.35 for the fourth quarter of 2023 and $0.52 for the first quarter of 2023.

Diluted earnings per share, operating (non-GAAP) were $0.65 for the first quarter of 2024 compared to $0.59 for the fourth quarter of 2023 and $0.86 for the first quarter of 2023.

Balance Sheet

Consolidated assets decreased $35.6 million to $7.964 billion at March 31, 2024 from $7.999 billion at December 31, 2023. Loans decreased $30.1 million, or 0.6%, for the quarterly comparison.

Total loans were $5.140 billion for the quarter ended March 31, 2024, as compared to $5.170 billion for the quarter ended December 31, 2023, and $4.970 billion for the quarter ended March 31, 2023, representing a decrease of $30.1 million, or 0.6%, for the sequential quarter comparison, and an increase of $170.2 million, or 3.4%, for the prior year quarterly comparison.

Total deposits were $6.710 billion for the quarter ended March 31, 2024, as compared to $6.463 billion for the quarter ended December 31, 2023, and $6.668 billion for the quarter ended March 31, 2023, representing an increase of $247.5 million, or 3.8%, for the sequential quarter comparison, and an increase of $42.4 million, or 0.6%, for the prior year quarterly comparison.

Deposits increased $247.5 million, or 3.8% for the prior quarter comparison. Excluding an increase in public funds of $256.9 million, deposits decreased $9.4 million, or 0.2% for the prior quarter comparison.

Book value per share increased to $30.45 at March 31, 2024 from $30.22 at December 31, 2023.

Asset Quality

Nonperforming assets totaled $18.4 million at March 31, 2024, a decrease of $1.8 million compared to $20.2 million at December 31, 2023 and a decrease of $4.1 million compared to $22.5 million at March 31, 2023.

Nonaccrual loans totaled $11.0 million, an increase of $0.3 million as compared to December 31, 2023 and a decrease of $6.4 million as compared to March 31, 2023.

The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at March 31, 2024, 1.05% at December 31, 2023 and 1.06% at March 31, 2023. The ratio of annualized net charge-offs to total loans was 0.01% for the quarter ended March 31, 2024 compared to 0.06% for the quarter ended December 31, 2023 and 0.01% for the quarter ended March 31, 2023.

First Quarter 2024 vs Fourth Quarter 2023 Earnings Comparison

Net income available to common shareholders for the first quarter of 2024 increased $9.6 million to $20.6 million compared to $11.0 million for the fourth quarter of 2023.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.9 million, or 10.1%, to $20.6 million for quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023. The increase in net earnings is attributable to a decrease in non-interest expense of $1.0 million and a decrease in provision for credit losses of $1.3 million.

Net interest income for the first quarter of 2024 was $57.3 million as compared to $57.7 million for the fourth quarter of 2023, a decrease of $0.3 million. The decrease was largely due to the decrease in accretion of purchase accounting adjustments of $0.6 million as well as increased interest expense of $3.3 million partially offset by an increase in interest income of $2.9 million.

First quarter 2024 net interest margin of 3.20% included 15 basis points related to purchase accounting adjustments compared to 3.28% for the fourth quarter in 2023, which included 19 basis points related to purchase accounting adjustments.

Core net interest margin decreased 4 basis points to 3.10% for the first quarter of 2024 from 3.14% for the fourth quarter of 2023.

Investment securities totaled $1.745 billion, or 21.9% of total assets at March 31, 2024, compared to $1.735 billion, or 21.7% of total assets at December 31, 2023. The average balance of investment securities decreased $11.0 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 11 basis points to 2.48% from 2.37% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $127.6 million at March 31, 2024 as compared to a net unrealized loss of $121.9 million at December 31, 2023.

The average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 5.04% to 5.12%. Interest expense on average interest bearing liabilities increased 18 basis points from 2.47% for the fourth quarter of 2023 to 2.65% for the first quarter of 2024.

Cost of all deposits averaged 178 basis points for the first quarter of 2024 compared to 154 basis points for the fourth quarter of 2023. This increase was a result of rising interest rates and competition for deposits.

Non-interest income increased $10.3 million from $2.3 million in the fourth quarter of 2023 to $12.7 million in the first quarter of 2024, primarily attributable to a $9.7 million loss on sales of available for sale investment securities in the fourth quarter for 2023.

Non-interest expense for the first quarter of 2024 was $43.4 million compared to $44.4 million for the fourth quarter of 2023, a decrease of $1.0 million.

First Quarter 2024 vs. First Quarter 2023 Earnings Comparison

Net income available to common shareholders for the first quarter of 2024 totaled $20.6 million compared to $16.3 million for the first quarter of 2023, an increase of $4.4 million or 26.8%.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $6.5 million, or 23.9%, to $20.6 million for quarter ended March 31, 2024, as compared to $27.1 million for the quarter ended March 31, 2023. This decrease is attributable to a decrease in net interest income of $7.6 million.

Net interest income for the first quarter of 2024 was $57.3 million, a decrease of $7.6 million or 11.7% when compared to the first quarter of 2023. Fully tax equivalent (“FTE”) net interest income (non-GAAP) totaled $58.3 million and $65.9 million for the first quarter of 2024 and 2023, respectively. Purchase accounting adjustments increased $1.0 million for the first quarter comparisons. The decrease was largely due to increased interest expense due to increased competition for deposits.

First quarter of 2024 net interest margin was 3.20%, which included 15 basis points related to purchase accounting adjustments compared to 3.63% for the same quarter in 2023, which included 19 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 38 basis points in prior year quarterly comparison primarily due to an increase in rates on interest bearing liabilities.

Non-interest income increased $0.1 million for the first quarter of 2024 as compared to the first quarter of 2023.

First quarter 2024 non-interest expense was $43.4 million, a decrease of $2.2 million, or 4.9% as compared to the first quarter of 2023. Excluding acquisition charges, non-interest expense increased $1.5 million of which salaries and employee benefits increased $ 1.0 million.

Investment securities totaled $1.745 billion, or 21.9% of total assets at March 31, 2024, compared to $1.962 billion, or 24.5% of total assets at March 31, 2023. For the first quarter of 2024 compared to the first quarter of 2023, the average balance of investment securities decreased $217.3 million. The average tax equivalent yield on investment securities (non-GAAP) increased 17 basis points to 2.48% from 2.31% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $127.6 million at March 31, 2024 as compared to a net unrealized loss of $137.6 million at March 31, 2023.

The average yield on all earning assets increased 63 basis points in prior year quarterly comparison, from 4.49% for the first quarter of 2023 to 5.12% for the first quarter of 2024. Interest expense on average interest bearing liabilities increased 141 basis points from 1.24% for the first quarter of 2023 to 2.65% for the first quarter of 2024.

Cost of all deposits averaged 178 basis points for the first quarter of 2024 compared to 72 basis points for the first quarter of 2023.

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 May 23, 2024 to shareholders of record as of the close of business on May 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, April 25, 2024. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BIbc177289ae6b45cc8d010c66fc8b81d9. 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. 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

3/31/24

 

Quarter

Ended

12/31/23

 

Quarter

Ended

9/30/23

 

Quarter

Ended

6/30/23

 

Quarter

Ended

3/31/23

Total Interest Income

$

91,663

 

 

$

88,720

 

 

$

85,681

 

 

$

86,194

 

 

$

80,338

 

Total Interest Expense

 

34,322

 

 

 

31,055

 

 

 

24,977

 

 

 

20,164

 

 

 

15,412

 

Net Interest Income

 

57,341

 

 

 

57,665

 

 

 

60,704

 

 

 

66,030

 

 

 

64,926

 

Net Interest Income excluding PPP Fee Income

 

57,340

 

 

 

57,664

 

 

 

60,703

 

 

 

66,029

 

 

 

64,718

 

FTE net interest income*

 

58,339

 

 

 

58,651

 

 

 

61,696

 

 

 

67,028

 

 

 

65,924

 

Provision for credit losses

 

 

 

 

1,250

 

 

 

1,000

 

 

 

1,250

 

 

 

11,000

 

Non-interest income

 

12,679

 

 

 

2,346

 

 

 

19,324

 

 

 

12,423

 

 

 

12,612

 

Non-interest expense

 

43,425

 

 

 

44,433

 

 

 

47,724

 

 

 

46,899

 

 

 

45,670

 

Earnings before income taxes

 

26,595

 

 

 

14,328

 

 

 

31,304

 

 

 

30,304

 

 

 

20,868

 

Income tax expense

 

5,967

 

 

 

3,281

 

 

 

6,944

 

 

 

6,525

 

 

 

4,597

 

Net income available to common shareholders

$

20,628

 

 

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

$

16,271

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.66

 

 

$

0.35

 

 

$

0.78

 

 

$

0.76

 

 

$

0.52

 

Diluted earnings per share

 

0.65

 

 

 

0.35

 

 

 

0.77

 

 

 

0.75

 

 

 

0.52

 

Diluted earnings per share, operating*

 

0.65

 

 

 

0.59

 

 

 

0.76

 

 

 

0.85

 

 

 

0.86

 

Quarterly dividends per share

 

0.25

 

 

 

0.24

 

 

 

0.23

 

 

 

0.22

 

 

 

0.21

 

Book value per common share at end of period

 

30.45

 

 

 

30.22

 

 

 

28.57

 

 

 

28.64

 

 

 

28.58

 

Tangible book value per common share at period end*

 

19.70

 

 

 

19.35

 

 

 

17.62

 

 

 

17.62

 

 

 

17.49

 

Market price at end of period

 

25.95

 

 

 

29.33

 

 

 

26.97

 

 

 

25.84

 

 

 

25.83

 

Shares outstanding at period end

 

31,528,748

 

 

 

31,399,803

 

 

 

31,404,231

 

 

 

31,406,220

 

 

 

31,364,973

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

31,475,254

 

 

 

31,401,612

 

 

 

31,405,439

 

 

 

31,378,364

 

 

 

31,309,458

 

Diluted

 

31,630,745

 

 

 

31,587,506

 

 

 

31,609,564

 

 

 

31,591,665

 

 

 

31,541,213

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

Total assets

$

8,005,574

 

 

$

7,917,303

 

 

$

7,873,345

 

 

$

7,882,130

 

 

$

8,003,254

 

Loans and leases

 

5,158,071

 

 

 

5,145,228

 

 

 

5,038,928

 

 

 

4,982,368

 

 

 

4,975,663

 

Total deposits

 

6,599,287

 

 

 

6,440,774

 

 

 

6,466,141

 

 

 

6,501,372

 

 

 

6,816,473

 

Total common equity

 

952,708

 

 

 

901,530

 

 

 

905,070

 

 

 

901,499

 

 

 

868,995

 

Total tangible common equity*

 

612,470

 

 

 

558,889

 

 

 

560,071

 

 

 

554,792

 

 

 

538,903

 

 

 

 

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

 

 

 

 

Annualized return on avg assets (ROA)

 

1.03

%

 

 

0.56

%

 

 

1.24

%

 

 

1.21

%

 

 

0.81

%

Annualized return on avg assets, operating*

 

1.03

%

 

 

0.95

%

 

 

1.22

%

 

 

1.36

%

 

 

1.36

%

Annualized pre-tax, pre-provision, operating*

 

1.33

%

 

 

1.31

%

 

 

1.62

%

 

 

1.81

%

 

 

1.78

%

Annualized return on avg common equity, operating*

 

8.66

%

 

 

8.32

%

 

 

10.63

%

 

 

11.91

%

 

 

12.48

%

Annualized return on avg tangible common equity, operating*

 

13.48

%

 

 

13.41

%

 

 

17.17

%

 

 

19.35

%

 

 

20.13

%

Average loans to average deposits

 

78.16

%

 

 

79.89

%

 

 

77.93

%

 

 

76.64

%

 

 

72.99

%

FTE Net Interest Margin*

 

3.26

%

 

 

3.33

%

 

 

3.52

%

 

 

3.82

%

 

 

3.69

%

Efficiency Ratio

 

61.15

%

 

 

72.84

%

 

 

58.90

%

 

 

59.02

%

 

 

58.15

%

Efficiency Ratio, operating*

 

61.14

%

 

 

62.00

%

 

 

56.06

%

 

 

53.87

%

 

 

53.32

%

*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

%

 

 

1.06

%

Nonperforming assets to tangible equity + ACL

 

2.72

%

 

 

3.05

%

 

 

3.69

%

 

 

3.57

%

 

 

3.73

%

Nonperforming assets to total loans + OREO

 

0.36

%

 

 

0.39

%

 

 

0.44

%

 

 

0.43

%

 

 

0.45

%

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

 

0.006

%

 

 

0.061

%

 

 

0.004

%

 

 

0.070

%

 

 

0.010

%

 

 

 

 

 

 

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

339,964

 

 

$

355,147

 

 

$

197,632

 

 

$

194,050

 

 

$

333,491

 

Securities available for sale

 

1,088,568

 

 

 

1,042,365

 

 

 

1,141,971

 

 

 

1,199,103

 

 

 

1,249,791

 

Securities held to maturity

 

622,574

 

 

 

654,539

 

 

 

658,524

 

 

 

663,473

 

 

 

678,161

 

Other investments

 

34,094

 

 

 

37,754

 

 

 

35,872

 

 

 

35,725

 

 

 

34,423

 

Total investment securities

 

1,745,236

 

 

 

1,734,658

 

 

 

1,836,367

 

 

 

1,898,301

 

 

 

1,962,375

 

Loans held for sale

 

4,241

 

 

 

2,914

 

 

 

5,960

 

 

 

6,602

 

 

 

4,073

 

Total loans

 

5,139,952

 

 

 

5,170,042

 

 

 

5,089,800

 

 

 

5,010,925

 

 

 

4,969,776

 

Allowance for credit losses

 

(53,959

)

 

 

(54,032

)

 

 

(53,565

)

 

 

(52,614

)

 

 

(52,450

)

Loans, net

 

5,085,993

 

 

 

5,116,010

 

 

 

5,036,235

 

 

 

4,958,311

 

 

 

4,917,326

 

Premises and equipment

 

181,194

 

 

 

182,162

 

 

 

183,740

 

 

 

186,381

 

 

 

186,688

 

Other Real Estate Owned

 

6,743

 

 

 

8,320

 

 

 

4,920

 

 

 

5,588

 

 

 

5,066

 

Goodwill and other intangibles

 

338,946

 

 

 

341,332

 

 

 

343,869

 

 

 

346,104

 

 

 

347,777

 

Other assets

 

261,442

 

 

 

258,802

 

 

 

275,562

 

 

 

266,771

 

 

 

260,520

 

Total assets

$

7,963,759

 

 

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

$

8,017,316

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

1,836,952

 

 

$

1,849,013

 

 

$

1,967,661

 

 

$

2,086,666

 

 

$

2,082,441

 

Interest-bearing deposits

 

4,873,403

 

 

 

4,613,859

 

 

 

4,512,364

 

 

 

4,405,601

 

 

 

4,585,515

 

Total deposits

 

6,710,355

 

 

 

6,462,872

 

 

 

6,480,025

 

 

 

6,492,267

 

 

 

6,667,956

 

Borrowings

 

110,000

 

 

 

390,000

 

 

 

302,000

 

 

 

280,000

 

 

 

250,000

 

Subordinated debentures

 

123,472

 

 

 

123,386

 

 

 

128,300

 

 

 

128,214

 

 

 

154,127

 

Other liabilities

 

60,020

 

 

 

74,053

 

 

 

76,739

 

 

 

62,181

 

 

 

48,806

 

Total liabilities

 

7,003,847

 

 

 

7,050,311

 

 

 

6,987,064

 

 

 

6,962,662

 

 

 

7,120,889

 

Total shareholders’ equity

 

959,912

 

 

 

949,034

 

 

 

897,221

 

 

 

899,446

 

 

 

896,427

 

Total liabilities and shareholders’ equity

$

7,963,759

 

 

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

$

8,017,316

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Three Months Ended

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Interest Income:

 

 

 

 

 

 

 

 

 

Loans, including fees

$

76,172

 

 

$

74,357

 

 

$

70,349

 

 

$

68,057

 

 

$

64,264

Investment securities

 

11,248

 

 

 

10,803

 

 

 

10,614

 

 

 

10,815

 

 

 

11,707

Accretion of purchase accounting adjustments

 

2,627

 

 

 

3,235

 

 

 

4,277

 

 

 

6,533

 

 

 

3,469

Other interest income

 

1,616

 

 

 

325

 

 

 

441

 

 

 

789

 

 

 

898

Total interest income

 

91,663

 

 

 

88,720

 

 

 

85,681

 

 

 

86,194

 

 

 

80,338

Interest Expense:

 

 

 

 

 

 

 

 

 

Deposits

 

29,182

 

 

 

24,489

 

 

 

19,314

 

 

 

14,613

 

 

 

12,183

Borrowings

 

3,022

 

 

 

4,500

 

 

 

3,556

 

 

 

3,264

 

 

 

959

Subordinated debentures

 

1,887

 

 

 

1,807

 

 

 

1,849

 

 

 

2,138

 

 

 

2,176

Accretion of purchase accounting adjustments

 

231

 

 

 

259

 

 

 

258

 

 

 

149

 

 

 

94

Total interest expense

 

34,322

 

 

 

31,055

 

 

 

24,977

 

 

 

20,164

 

 

 

15,412

Net interest income

 

57,341

 

 

 

57,665

 

 

 

60,704

 

 

 

66,030

 

 

 

64,926

Provision for credit losses

 

 

 

 

1,250

 

 

 

1,000

 

 

 

1,250

 

 

 

11,000

Net interest income after provision for credit losses

 

57,341

 

 

 

56,415

 

 

 

59,704

 

 

 

64,780

 

 

 

53,926

 

 

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

3,367

 

 

 

3,447

 

 

 

3,646

 

 

 

3,425

 

 

 

3,657

Mortgage Income

 

704

 

 

 

582

 

 

 

878

 

 

 

773

 

 

 

633

Interchange Fee Income

 

4,195

 

 

 

4,593

 

 

 

5,280

 

 

 

4,543

 

 

 

4,498

Gain (Loss) on securities, net

 

(48

)

 

 

(9,670

)

 

 

2

 

 

 

(48

)

 

 

Treasury Awards

 

 

 

 

 

 

 

6,197

 

 

 

 

 

 

Loss on sale of premises and equipment

 

 

 

 

(524

)

 

 

(104

)

 

 

 

 

 

Other charges and fees

 

4,461

 

 

 

3,918

 

 

 

3,425

 

 

 

3,730

 

 

 

3,824

Total non-interest income

 

12,679

 

 

 

2,346

 

 

 

19,324

 

 

 

12,423

 

 

 

12,612

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

24,508

 

 

 

23,717

 

 

 

22,807

 

 

 

23,315

 

 

 

23,572

Occupancy expense

 

5,714

 

 

 

5,688

 

 

 

5,343

 

 

 

5,041

 

 

 

5,296

FDIC/OCC premiums

 

1,008

 

 

 

1,263

 

 

 

1,158

 

 

 

758

 

 

 

670

Marketing

 

139

 

 

 

71

 

 

 

559

 

 

 

45

 

 

 

158

Amortization of core deposit intangibles

 

2,385

 

 

 

2,385

 

 

 

2,385

 

 

 

2,391

 

 

 

2,402

Other professional services

 

1,833

 

 

 

2,309

 

 

 

1,499

 

 

 

1,570

 

 

 

1,068

Acquisition and charter conversion charges

 

8

 

 

 

593

 

 

 

588

 

 

 

4,101

 

 

 

3,793

Other non-interest expense

 

7,830

 

 

 

8,407

 

 

 

13,385

 

 

 

9,678

 

 

 

8,711

Total non-interest expense

 

43,425

 

 

 

44,433

 

 

 

47,724

 

 

 

46,899

 

 

 

45,670

Earnings before income taxes

 

26,595

 

 

 

14,328

 

 

 

31,304

 

 

 

30,304

 

 

 

20,868

Income tax expense

 

5,967

 

 

 

3,281

 

 

 

6,944

 

 

 

6,525

 

 

 

4,597

Net income available to common shareholders

$

20,628

 

 

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

$

16,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.65

 

 

$

0.35

 

 

$

0.77

 

 

$

0.75

 

 

$

0.52

Diluted earnings per common share, operating*

$

0.65

 

 

$

0.59

 

 

$

0.76

 

 

$

0.85

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

*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

$

76,171

 

 

$

64,056

 

PPP loan fee income

 

1

 

 

 

208

 

Investment securities

 

11,248

 

 

 

11,707

 

Accretion of purchase accounting adjustments

 

2,627

 

 

 

3,469

 

Other interest income

 

1,616

 

 

 

898

 

Total interest income

 

91,663

 

 

 

80,338

 

Interest Expense:

 

 

 

Deposits

 

29,182

 

 

 

12,183

 

Borrowings

 

3,022

 

 

 

959

 

Subordinated debentures

 

1,887

 

 

 

2,176

 

Amortization of purchase accounting adjustments

 

231

 

 

 

94

 

Total interest expense

 

34,322

 

 

 

15,412

 

Net interest income

 

57,341

 

 

 

64,926

 

Provision for credit losses

 

 

 

 

11,000

 

Net interest income after provision for credit losses

 

57,341

 

 

 

53,926

 

 

 

 

 

Non-interest Income:

 

 

 

Service charges on deposit accounts

 

3,367

 

 

 

3,657

 

Mortgage Income

 

704

 

 

 

633

 

Interchange Fee Income

 

4,195

 

 

 

4,498

 

Gain (loss) on securities, net

 

(48

)

 

 

 

Bargain Purchase Gain and gain on sale of premises and equipment

 

 

 

 

(1

)

Other charges and fees

 

4,461

 

 

 

3,825

 

Total non-interest income

 

12,679

 

 

 

12,612

 

 

 

 

 

Non-interest expense:

 

 

 

Salaries and employee benefits

 

24,508

 

 

 

23,571

 

Occupancy expense

 

5,714

 

 

 

5,296

 

FDIC/OCC premiums

 

1,008

 

 

 

670

 

Marketing

 

139

 

 

 

158

 

Amortization of core deposit intangibles

 

2,385

 

 

 

2,402

 

Other professional services

 

1,833

 

 

 

1,068

 

Acquisition & charter conversion charges

 

8

 

 

 

3,793

 

Other non-interest expense

 

7,830

 

 

 

8,712

 

Total non-interest expense

 

43,425

 

 

 

45,670

 

Earnings before income taxes

 

26,595

 

 

 

20,868

 

Income tax expense

 

5,967

 

 

 

4,597

 

Net income available to common shareholders

 

20,628

 

 

 

16,271

 

 

 

 

 

Diluted earnings per common share

$

0.65

 

 

$

0.52

 

Diluted earnings per common share, operating*

$

0.65

 

 

$

0.86

 

*See reconciliation of non-GAAP financial measures

 

 

 

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF LOANS

 

March 31, 2024

 

Percent

of Total

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

Percent

of Total

Commercial, financial and agricultural

 

$

737,511

 

 

14.3

%

 

$

765,422

 

 

$

753,120

 

 

$

753,415

 

 

$

750,371

 

 

15.1

%

Real estate – construction

 

 

633,804

 

 

12.3

%

 

 

629,660

 

 

 

633,682

 

 

 

634,120

 

 

 

691,285

 

 

13.9

%

Real estate – commercial

 

 

2,356,552

 

 

45.8

%

 

 

2,377,864

 

 

 

2,317,666

 

 

 

2,251,710

 

 

 

2,181,384

 

 

43.9

%

Real estate – residential

 

 

1,330,589

 

 

25.9

%

 

 

1,311,395

 

 

 

1,298,980

 

 

 

1,286,343

 

 

 

1,262,244

 

 

25.4

%

Lease Financing Receivable

 

 

1,794

 

 

%

 

 

1,292

 

 

 

1,548

 

 

 

1,187

 

 

 

2,056

 

 

%

Obligations of States & subdivisions

 

 

28,541

 

 

0.6

%

 

 

29,316

 

 

 

29,650

 

 

 

31,137

 

 

 

31,652

 

 

0.6

%

Consumer

 

 

51,161

 

 

1.0

%

 

 

55,094

 

 

 

55,154

 

 

 

53,013

 

 

 

50,784

 

 

1.0

%

Loans held for sale

 

 

4,241

 

 

0.1

%

 

 

2,914

 

 

 

5,960

 

 

 

6,602

 

 

 

4,073

 

 

0.1

%

Total loans

 

$

5,144,193

 

 

100

%

 

$

5,172,957

 

 

$

5,095,760

 

 

$

5,017,527

 

 

$

4,973,849

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPOSITION OF DEPOSITS

 

March 31, 2024

 

Percent

of Total

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

Percent

of Total

Non-interest bearing

 

$

1,836,952

 

 

27.4

%

 

$

1,849,013

 

 

$

1,967,661

 

 

$

2,086,666

 

 

$

2,082,441

 

 

31.2

%

NOW and other

 

 

2,135,343

 

 

31.7

%

 

 

1,914,792

 

 

 

1,962,383

 

 

 

2,014,420

 

 

 

2,095,599

 

 

31.4

%

Money Market/Savings

 

 

1,656,688

 

 

24.7

%

 

 

1,623,311

 

 

 

1,532,822

 

 

 

1,565,212

 

 

 

1,678,609

 

 

25.2

%

Time Deposits of less than $250,000

 

 

816,153

 

 

12.2

%

 

 

813,877

 

 

 

766,553

 

 

 

627,782

 

 

 

562,240

 

 

8.4

%

Time Deposits of $250,000 or more

 

 

265,219

 

 

4.0

%

 

 

261,879

 

 

 

250,606

 

 

 

198,187

 

 

 

249,067

 

 

3.8

%

Total Deposits

 

$

6,710,355

 

 

100

%

 

$

6,462,872

 

 

$

6,480,025

 

 

$

6,492,267

 

 

$

6,667,956

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

March 31, 2024

 

 

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

 

Nonaccrual loans

 

$

10,961

 

 

 

 

$

10,691

 

 

$

17,423

 

 

$

16,037

 

 

$

17,312

 

 

 

Loans past due 90 days and over

 

 

687

 

 

 

 

 

1,163

 

 

 

53

 

 

 

 

 

 

73

 

 

 

Total nonperforming loans

 

 

11,648

 

 

 

 

 

11,854

 

 

 

17,476

 

 

 

16,037

 

 

 

17,385

 

 

 

Other real estate owned

 

 

6,743

 

 

 

 

 

8,320

 

 

 

4,920

 

 

 

5,588

 

 

 

5,066

 

 

 

Total nonperforming assets

 

$

18,391

 

 

 

 

$

20,174

 

 

$

22,396

 

 

$

21,625

 

 

$

22,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.23

%

 

 

 

 

0.25

%

 

 

0.28

%

 

 

0.28

%

 

 

0.28

%

 

 

Nonperforming assets to total loans + OREO

 

 

0.36

%

 

 

 

 

0.39

%

 

 

0.44

%

 

 

0.43

%

 

 

0.45

%

 

 

ACL to nonperforming loans

 

 

463.25

%

 

 

 

 

455.81

%

 

 

306.51

%

 

 

328.08

%

 

 

301.70

%

 

 

ACL to total loans

 

 

1.05

%

 

 

 

 

1.05

%

 

 

1.05

%

 

 

1.05

%

 

 

1.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

73

 

 

 

 

$

783

 

 

$

49

 

 

$

837

 

 

$

142

 

 

 

Annualized QTD net chg-offs (recs) to loans

 

 

0.006

%

 

 

 

 

0.061

%

 

 

0.004

%

 

 

0.070

%

 

 

0.010

%

 

 

 

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

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 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

$

1,342,644

$

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

%

 

$

1,565,623

$

8,758

2.24

%

Tax-exempt securities

 

468,432

 

3,944

3.37

%

 

 

446,348

 

3,897

3.49

%

 

 

463,329

 

3,921

3.39

%

 

 

470,742

 

3,946

3.35

%

 

 

462,718

 

3,946

3.41

%

Total investment securities

 

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

%

 

 

2,028,341

 

12,704

2.51

%

Int bearing dep in other banks

 

189,785

 

1,616

3.41

%

 

 

70,193

 

325

1.85

%

 

 

79,448

 

441

2.22

%

 

 

93,464

 

789

3.38

%

 

 

146,663

 

898

2.45

%

Loans

 

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

%

 

 

4,975,663

 

67,734

5.45

%

Total interest earning assets

 

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

%