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     105  0 Kommentare 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/BIf4b652d4e9ff4cd5a10ec44d884e148 .... 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

    %