Exhibit 99.1
The First Bancshares, Inc. Reports a 29.6% Increase in Quarterly Net Earnings and Declares Quarterly Dividends
HATTIESBURG, Miss.--(BUSINESS WIRE)--April 21, 2016--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported net earnings available to common shareholders of $2.5 million for the first quarter of 2016, compared to net earnings available to common shareholders of $1.9 million reported for the first quarter of 2015 and $2.3 million in net earnings available to common shareholders for the fourth quarter of 2015. Diluted earnings for the first quarter of 2016 were $0.46 per common share, compared to $0.34 per common share reported for the first quarter of 2015 and $0.42 per common share reported for the fourth quarter of 2015. First quarter 2016 net earnings included $189,000 of an after tax gain on the conversion of our debit card provider. Excluding this non-operating income, operating earnings per share for the first quarter of 2016 were $0.43. Both first quarter 2015 and fourth quarter 2015 included non-operating items as well, both representing $0.02 per share in adjustments.
Significant Events during Quarter:
- Integrated The Mortgage Connection, LLC (“TMC”) which produced mortgage revenues of $444,000 during 1st Quarter 2016
- Hired new commercial team in Mobile consisting of market president and two experienced business bankers
- Signed contract for a new full service branch in Bay Minette, AL
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are excited about the strong start for 2016, posting a 29.6% increase in net income as compared to the same period in 2015. We continue to focus on broad based growth across all of our markets which is positively impacting our operating results and returns.
“The first quarter was the first full operating period for TMC, our recent acquisition in Jackson, MS. The results were well ahead of forecast in terms of both revenue and profitability.
“We also added an experienced commercial banking team in Mobile led by Todd Henderson, Market President and composed of business bankers Sam Jeffcoat and Marques Ivy. This group has approximately 50 years of in market experience and will grow our presence in the Mobile market.”
Balance Sheet
Consolidated assets increased $96.8 million or 8.5% to $1.2 billion for the quarter ended March 31, 2016. Total loans were $797.8 million at March 31, 2016 as compared to $772.5 million at December 31, 2015 representing an increase of 3.3%. Increased loan volume was spread across the real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $16.8 million or 6.6% quarter over quarter divided equally between owner occupied and income producing non-owner occupied properties.
Total deposits increased $124.4 million or 13.6% to $1,041.1 million for the quarter ended March 31, 2016. This increase reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $7.1 million or 1.0% for quarter ended March 31, 2016.
Asset Quality
Nonperforming assets totaled $11.3 million at March 31, 2016, an increase of $0.4 million compared to $10.9 million at December 31, 2015. The ALLL/total loans ratio was 0.88% at March 31, 2016 and 0.87% at December 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.10% of loans at March 31, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.02%) for the quarter ended March 31, 2016 compared to (0.002%) for the quarter ended December 31, 2015. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.
Energy Loans
At March 31, 2016 the company had direct energy related loans of $22.3 million, representing 2.8% of the total loan portfolio. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production.
First Quarter 2016 vs. First Quarter 2015 Earnings Comparison
First quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $1.9 million for the first quarter of 2015. Revenues from consolidated operations increased $1,547,000 in quarterly comparison. Net interest income increased $796,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $633,000 in quarterly comparison for the first quarter of 2016 as compared to the first quarter of 2015 consisting mainly of increased mortgage income and gain on conversion of our debit card provider.
First quarter 2016 noninterest expenses increased $577,000, or 7.4% as compared to first quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $523,000 of which $319,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015.
Fully taxable-equivalent (“FTE”) net interest income totaled $9.9 million and $9.1 million for the first quarter of 2016 and 2015, respectively. The FTE net interest income increased $775,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $21,000 on net interest income for the first quarter comparisons. First quarter 2016 net interest margin of 3.68% includes 2 bps related to purchase accounting adjustments.
Investment securities totaled $269.5 million, or 21.7% of total assets at March 31, 2016, versus $261.9 million, or 22.9% of total assets at March 31, 2015. The average volume of investment securities decreased $0.1 million in prior year quarterly comparison. The average tax equivalent yield on investment securities remained the same at 2.63%. The investment portfolio had a net unrealized gain of $3.7 million at March 31, 2016 as compared to $3.9 million at March 31, 2015.
The average yield on all earnings assets increased 10 basis points in prior year quarterly comparison, from 3.92% for the first quarter of 2015 to 4.02% for the first quarter of 2016. This increase was slightly offset by an increase in average interest expense of 2 basis points from 0.39% for the first quarter of 2015 to 0.41% for the first quarter of 2016.
First Quarter 2016 vs Fourth Quarter 2015 Earnings Comparison
In sequential-quarter comparison, net earnings available to common shareholders increased $246,000 to $2.5 million.
Noninterest income increased $580,000 in sequential-quarter comparison mainly consisting of increases in mortgage income and a gain on the conversion of our debit card provider.
Noninterest expenses increased $120,000 in sequential-quarter comparison consisting of increases in salaries and benefits relating to the acquisition of The Mortgage Connection, LLC in December 2015 with decreases in other professional services, marketing and occupancy.
FTE net interest income increased $66,000 to $9.9 million from $9.8 million in sequential-quarter comparison. The $180,000 increase in loan interest income was slightly impacted negatively by accretion related to purchase accounting adjustments.
The average yield on all earnings assets decreased 11 basis points in sequential-quarter comparison, from 4.13% for the fourth quarter of 2015 to 4.02% for the first quarter of 2016.
Other Events
The Company will make a presentation at the 20th Annual Burkenroad Reports Investment Conference at the Ritz-Carlton New Orleans Hotel in New Orleans, Louisiana, Friday, April 22, 2016 at 9:30 a.m. central time. This will be an interactive session between management and those attending the conference. The presentation will be available at the company’s internet site (www.thefirstbank.com) under the Investor Relations tab.
Dividends
The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on May 23, 2016 to shareholders of record as of the close of business on May 6, 2016.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in south Mississippi, Louisiana and south Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Forward Looking Statements
This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. 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. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.
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| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands except per share data) |
| | Quarter | | Quarter | | Quarter | | Quarter | | Quarter |
EARNINGS DATA | | Ended | | Ended | | Ended | | Ended | | Ended |
| | | 3/31/16 | | 12/31/15 | | 9/30/15 | | 6/30/15 | | 3/31/15 |
| Total Interest Income | | $ | 10,597 | | | $ | 10,417 | | | $ | 10,080 | | | $ | 10,022 | | | $ | 9,683 | |
| Total Interest Expense | | | 922 | | | | 804 | | | | 793 | | | | 806 | | | | 804 | |
| Net Interest Income | | | 9,675 | | | | 9,613 | | | | 9,287 | | | | 9,216 | | | | 8,879 | |
| FTE net interest income | | | 9,912 | | | | 9,846 | | | | 9,512 | | | | 9,454 | | | | 9,137 | |
| Provision for loan losses | | | 190 | | | | 10 | | | | 250 | | | | - | | | | 150 | |
| Non-interest income | | | 2,483 | | | | 1,903 | | | | 1,982 | | | | 1,854 | | | | 1,850 | |
| Non-interest expense | | | 8,395 | | | | 8,275 | | | | 7,977 | | | | 8,092 | | | | 7,818 | |
| Earnings before income taxes | | | 3,573 | | | | 3,231 | | | | 3,042 | | | | 2,978 | | | | 2,761 | |
| Income tax expense | | | 969 | | | | 873 | | | | 815 | | | | 793 | | | | 732 | |
| Net earnings | | | 2,604 | | | | 2,358 | | | | 2,227 | | | | 2,185 | | | | 2,029 | |
| Dividends and accretion on preferred stock | | | 85 | | | | 85 | | | | 86 | | | | 86 | | | | 85 | |
| Net earnings available to common shareholders | | $ | 2,519 | | | $ | 2,273 | | | $ | 2,141 | | | $ | 2,099 | | | $ | 1,944 | |
| | | | | | | | | | | |
| PER COMMON SHARE DATA | | | | | | | | | | |
| Basic earnings per share | | $ | 0.47 | | | $ | 0.42 | | | $ | 0.40 | | | $ | 0.39 | | | $ | 0.36 | |
| Diluted earnings per share | | | 0.46 | | | | 0.42 | | | | 0.39 | | | | 0.39 | | | | 0.36 | |
| Diluted earnings per share, operating* | | | 0.43 | | | | 0.40 | | | | 0.39 | | | | 0.39 | | | | 0.34 | |
| Quarterly dividends per share | | | .0375 | | | | .0375 | | | | .0375 | | | | .0375 | | | | .0375 | |
| Book value per common share at end of period | | | 16.58 | | | | 16.05 | | | | 15.72 | | | | 15.13 | | | | 15.19 | |
| Tangible common book value at period end | | | 13.67 | | | | 13.10 | | | | 13.02 | | | | 12.41 | | | | 12.46 | |
| Market price at end of period | | | 15.63 | | | | 18.34 | | | | 17.47 | | | | 16.65 | | | | 16.26 | |
| Shares outstanding at period end | | | 5,432,014 | | | | 5,376,665 | | | | 5,376,665 | | | | 5,374,415 | | | | 5,374,415 | |
| Weighted average shares outstanding: | | | | | | | | | | |
| Basic | | | 5,415,339 | | | | 5,376,665 | | | | 5,374,790 | | | | 5,366,495 | | | | 5,358,576 | |
| Diluted | | | 5,478,703 | | | | 5,449,851 | | | | 5,441,980 | | | | 5,424,242 | | | | 5,415,100 | |
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| AVERAGE BALANCE SHEET DATA | | | | | | | | | | |
| Total assets | | $ | 1,196,328 | | | $ | 1,131,924 | | | $ | 1,109,944 | | | $ | 1,119,648 | | | $ | 1,127,349 | |
| Loans and leases | | | 779,418 | | | | 757,036 | | | | 731,818 | | | | 728,416 | | | | 705,752 | |
| Total deposits | | | 964,681 | | | | 946,849 | | | | 953,229 | | | | 973,776 | | | | 932,401 | |
| Total common equity | | | 87,155 | | | | 84,122 | | | | 82,045 | | | | 79,986 | | | | 79,722 | |
| Total tangible common equity* | | | 71,297 | | | | 69,514 | | | | 67,492 | | | | 65,334 | | | | 64,967 | |
| Total equity | | | 104,278 | | | | 101,245 | | | | 99,168 | | | | 97,109 | | | | 96,845 | |
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| SELECTED RATIOS | | | | | | | | | | |
| Annualized return on avg assets | | | .87 | % | | | .83 | % | | | .80 | % | | | .78 | % | | | .72 | % |
| Annualized return on avg assets, operating* | | | .78 | % | | | .76 | % | | | .78 | % | | | .75 | % | | | .66 | % |
| Annualized return on avg common equity, operating* | | | 10.69 | % | | | 10.27 | % | | | 10.44 | % | | | 10.50 | % | | | 9.33 | % |
| Annualized return on avg tangible common equity, oper* | | | 13.07 | % | | | 12.43 | % | | | 12.69 | % | | | 12.85 | % | | | 11.45 | % |
| Average loans to average deposits | | | 80.80 | % | | | 79.95 | % | | | 76.77 | % | | | 74.80 | % | | | 75.69 | % |
| Taxable-equivalent net interest margin | | | 3.68 | % | | | 3.81 | % | | | 3.79 | % | | | 3.71 | % | | | 3.60 | % |
| Efficiency Ratio | | | 67.73 | % | | | 70.43 | % | | | 69.40 | % | | | 71.56 | % | | | 71.16 | % |
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| CREDIT QUALITY | | | | | | | | | | |
| Allowance for loan losses (ALLL) as a % of total loans | | | .88 | % | | | .87 | % | | | .90 | % | | | .88 | % | | | .83 | % |
| Nonperforming assets to tangible equity + ALLL | | | 11.43 | % | | | 11.55 | % | | | 13.28 | % | | | 12.33 | % | | | 12.70 | % |
| Nonperforming assets to total loans + ORE | | | 1.40 | % | | | 1.40 | % | | | 1.66 | % | | | 1.51 | % | | | 1.58 | % |
| Annualized QTD net charge-offs (recoveries) to total loans | | | (0.02 | %) | | | (0.002 | %) | | | (0.03 | %) | | | (0.27 | %) | | | .18 | % |
*See reconciliation of Non-GAAP financial measures |
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| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands) |
| | Mar 31, | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, |
BALANCE SHEET | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Assets | | | | | | | | | | |
| Cash and cash equivalents | | $ | 95,965 | | | $ | 41,259 | | | $ | 65,233 | | | $ | 62,021 | | | $ | 94,474 | |
| Securities available-for-sale | | | 253,126 | | | | 239,732 | | | | 239,631 | | | | 236,476 | | | | 246,842 | |
| Securities held-to-maturity | | | 6,851 | | | | 7,092 | | | | 7,233 | | | | 7,651 | | | | 7,829 | |
| Other investments | | | 9,570 | | | | 8,135 | | | | 6,249 | | | | 5,787 | | | | 7,235 | |
| Total investment securities | | | 269,547 | | | | 254,959 | | | | 253,113 | | | | 249,914 | | | | 261,906 | |
| Loans held for sale | | | 6,095 | | | | 3,974 | | | | 1,058 | | | | 1,864 | | | | 1,657 | |
| Total loans | | | 797,764 | | | | 772,515 | | | | 746,588 | | | | 731,037 | | | | 716,359 | |
| Allowance for loan losses | | | (6,982 | ) | | | (6,747 | ) | | | (6,734 | ) | | | (6,419 | ) | | | (5,928 | ) |
| Loans, net | | | 790,782 | | | | 765,768 | | | | 739,854 | | | | 724,618 | | | | 710,431 | |
| Premises and equipment | | | 33,353 | | | | 33,623 | | | | 33,610 | | | | 33,571 | | | | 33,769 | |
| Other Real Estate | | | 4,363 | | | | 3,083 | | | | 4,104 | | | | 4,116 | | | | 4,598 | |
| Goodwill and other intangibles | | | 15,796 | | | | 15,891 | | | | 14,490 | | | | 14,691 | | | | 14,691 | |
| Other assets | | | 26,050 | | | | 26,574 | | | | 26,387 | | | | 26,953 | | | | 24,622 | |
| Total assets | | $ | 1,241,951 | | | $ | 1,145,131 | | | $ | 1,137,849 | | | $ | 1,117,648 | | | $ | 1,146,148 | |
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| Liabilities and Shareholders’ Equity | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 194,433 | | | $ | 189,445 | | | $ | 187,542 | | | $ | 193,810 | | | $ | 203,766 | |
| Interest-bearing deposits | | | 846,672 | | | | 727,250 | | | | 776,298 | | | | 768,289 | | | | 780,877 | |
| Total deposits | | | 1,041,105 | | | | 916,695 | | | | 963,840 | | | | 962,099 | | | | 984,643 | |
| Borrowings | | | 78,976 | | | | 110,321 | | | | 58,986 | | | | 43,991 | | | | 49,446 | |
| Subordinated debentures | | | 10,310 | | | | 10,310 | | | | 10,310 | | | | 10,310 | | | | 10,310 | |
| Other liabilities | | | 4,363 | | | | 4,369 | | | | 3,091 | | | | 2,814 | | | | 2,708 | |
| Total liabilities | | | 1,134,754 | | | | 1,041,695 | | | | 1,036,227 | | | | 1,019,214 | | | | 1,047,382 | |
| Total shareholders’ equity | | | 107,197 | | | | 103,436 | | | | 101,622 | | | | 98,434 | | | | 98,766 | |
| Total liabilities and shareholders’ equity | | $ | 1,241,951 | | | $ | 1,145,131 | | | $ | 1,137,849 | | | $ | 1,117,648 | | | $ | 1,146,148 | |
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| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands except per share data) |
| EARNINGS STATEMENT | | Three Months Ended |
| | 3/31/16 | | 12/31/15 | | 9/30/15 | | 6/30/15 | | 3/31/15 |
| Interest Income: | | | | | | | | | | |
| Loans, including fees | | $ | 9,013 | | $ | 8,874 | | | $ | 8,556 | | | $ | 8,461 | | | $ | 8,147 | |
| Investment securities | | | 1,532 | | | 1,472 | | | | 1,438 | | | | 1,474 | | | | 1,512 | |
| Accretion of purchase accounting adjustments | | | 22 | | | 59 | | | | 73 | | | | 71 | | | | 1 | |
| Other interest income | | | 30 | | | 12 | | | | 13 | | | | 16 | | | | 23 | |
| Total interest income | | | 10,597 | | | 10,417 | | | | 10,080 | | | | 10,022 | | | | 9,683 | |
| | | | | | | | | | | |
| Interest Expense: | | | | | | | | | | |
| Deposits | | | 701 | | | 657 | | | | 693 | | | | 704 | | | | 679 | |
| Borrowings | | | 173 | | | 131 | | | | 100 | | | | 102 | | | | 127 | |
| Subordinated debentures | | | 48 | | | 47 | | | | 47 | | | | 46 | | | | 45 | |
| Accretion of purchase accounting adjustments | | | - | | | (31 | ) | | | (47 | ) | | | (46 | ) | | | (47 | ) |
| Total interest expense | | | 922 | | | 804 | | | | 793 | | | | 806 | | | | 804 | |
| | | | | | | | | | | |
| Net interest income | | | 9,675 | | | 9,613 | | | | 9,287 | | | | 9,216 | | | | 8,879 | |
| Provision for loan losses | | | 190 | | | 10 | | | | 250 | | | | - | | | | 150 | |
| Net interest income after provision for loan losses | | | 9,485 | | | 9,603 | | | | 9,037 | | | | 9,216 | | | | 8,729 | |
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| Non-interest Income: | | | | | | | | | | |
| Service charges on deposit accounts | | | 637 | | | 674 | | | | 737 | | | | 591 | | | | 568 | |
| Mortgage Income | | | 645 | | | 245 | | | | 341 | | | | 357 | | | | 334 | |
| Interchange Fee Income | | | 644 | | | 650 | | | | 611 | | | | 612 | | | | 571 | |
| Gain (loss) on securities, net | | | - | | | - | | | | - | | | | - | | | | - | |
| Gain on sale of premises and equipment | | | - | | | - | | | | - | | | | - | | | | 110 | |
| BEA award, net | | | - | | | 152 | | | | - | | | | - | | | | - | |
| Other charges and fees | | | 557 | | | 182 | | | | 293 | | | | 294 | | | | 267 | |
| Total non-interest income | | | 2,483 | | | 1,903 | | | | 1,982 | | | | 1,854 | | | | 1,850 | |
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| Non-interest expense: | | | | | | | | | | |
| Salaries and employee benefits | | | 5,149 | | | 4,670 | | | | 4,628 | | | | 4,613 | | | | 4,626 | |
| Occupancy expense | | | 1,073 | | | 1,107 | | | | 1,136 | | | | 1,137 | | | | 1,109 | |
| FDIC premiums | | | 244 | | | 243 | | | | 241 | | | | 241 | | | | 241 | |
| Marketing | | | 72 | | | 150 | | | | 64 | | | | 161 | | | | 62 | |
| Amortization of core deposit intangibles | | | 94 | | | 100 | | | | 100 | | | | 100 | | | | 100 | |
| Other professional services | | | 231 | | | 377 | | | | 318 | | | | 379 | | | | 258 | |
| Other non-interest expense | | | 1,532 | | | 1,628 | | | | 1,490 | | | | 1,461 | | | | 1,422 | |
| Total Non-interest expense | | | 8,395 | | | 8,275 | | | | 7,977 | | | | 8,092 | | | | 7,818 | |
| Earnings before income taxes | | | 3,573 | | | 3,231 | | | | 3,042 | | | | 2,978 | | | | 2,761 | |
| Income tax expense | | | 969 | | | 873 | | | | 815 | | | | 793 | | | | 732 | |
| Net earnings | | | 2,604 | | | 2,358 | | | | 2,227 | | | | 2,185 | | | | 2,029 | |
| Dividends and accretion on preferred stock | | | 85 | | | 85 | | | | 86 | | | | 86 | | | | 85 | |
| Net earnings available to common shareholders | | $ | 2,519 | | $ | 2,273 | | | $ | 2,141 | | | $ | 2,099 | | | $ | 1,944 | |
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| Earnings per common share, diluted | | $ | 0.46 | | $ | 0.42 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.36 | |
| Operating earnings per common share, diluted* | | $ | 0.43 | | $ | 0.40 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.34 | |
*See reconciliation of Non-GAAP financial measures |
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| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands) |
| | Mar 31, | | Percent | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, | | Percent |
| COMPOSITION OF LOANS | | 2016 | | of Total | | 2015 | | 2015 | | 2015 | | 2015 | | of Total |
| Commercial, financial and agricultural | | $ | 126,381 | | | 15.7 | % | | $ | 129,197 | | | $ | 123,872 | | | $ | 116,352 | | | $ | 110,806 | | | 15.5 | % |
| Real estate – construction | | | 100,386 | | | 12.5 | % | | | 99,161 | | | | 85,769 | | | | 93,152 | | | | 93,168 | | | 13.0 | % |
| Real estate – commercial | | | 270,085 | | | 33.6 | % | | | 253,309 | | | | 251,631 | | | | 245,537 | | | | 242,969 | | | 33.8 | % |
| Real estate – residential | | | 276,272 | | | 34.3 | % | | | 272,180 | | | | 265,763 | | | | 259,610 | | | | 254,844 | | | 35.5 | % |
| Lease Financing Receivable | | | 2,645 | | | .3 | % | | | 2,650 | | | | 2,303 | | | | - | | | | - | | | - | |
| Obligations of States & subdivisions | | | 7,034 | | | .9 | % | | | 969 | | | | 969 | | | | 700 | | | | - | | | - | |
| Consumer | | | 14,961 | | | 1.9 | % | | | 15,049 | | | | 16,281 | | | | 15,686 | | | | 14,572 | | | 2.0 | % |
| Loans held for sale | | | 6,095 | | | .8 | % | | | 3,974 | | | | 1,058 | | | | 1,864 | | | | 1,657 | | | 0.2 | % |
| Total loans | | $ | 803,859 | | | 100 | % | | $ | 776,489 | | | $ | 747,646 | | | $ | 732,901 | | | $ | 718,016 | | | 100 | % |
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| | Mar 31, | | Percent | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, | | Percent |
| COMPOSITION OF DEPOSITS | | 2016 | | of Total | | 2015 | | 2015 | | 2015 | | 2015 | | of Total |
| Noninterest bearing | | $ | 194,433 | | | 18.7 | % | | $ | 189,445 | | | $ | 187,542 | | | $ | 193,810 | | | $ | 203,766 | | | 20.7 | % |
| NOW and other | | | 493,319 | | | 47.4 | % | | | 373,687 | | | | 411,893 | | | | 393,596 | | | | 404,605 | | | 41.1 | % |
| Money Market/Savings | | | 169,733 | | | 16.3 | % | | | 174,090 | | | | 181,861 | | | | 185,033 | | | | 183,048 | | | 18.6 | % |
| Time Deposits of less than $100,000 | | | 72,295 | | | 6.9 | % | | | 73,865 | | | | 75,022 | | | | 77,815 | | | | 80,606 | | | 8.2 | % |
| Time Deposits of $100,000 or more | | | 111,325 | | | 10.7 | % | | | 105,608 | | | | 107,522 | | | | 111,845 | | | | 112,618 | | | 11.4 | % |
| Total Deposits | | $ | 1,041,105 | | | 100 | % | | $ | 916,695 | | | $ | 963,840 | | | $ | 962,099 | | | $ | 984,643 | | | 100 | % |
| | | | | | | | | | | | | | | |
| | Mar 31, | | | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, | | |
| ASSET QUALITY DATA | | 2016 | | | | 2015 | | 2015 | | 2015 | | 2015 | | |
| Nonaccrual loans | | $ | 5,851 | | | | | $ | 7,368 | | | $ | 7,949 | | | $ | 6,513 | | | $ | 5,995 | | | |
| Loans past due 90 days and over | | | 628 | | | | | | 29 | | | | 6 | | | | 92 | | | | 426 | | | |
| Total nonperforming loans | | | 6,479 | | | | | | 7,397 | | | | 7,955 | | | | 6,605 | | | | 6,421 | | | |
| Other real estate | | | 4,363 | | | | | | 3,083 | | | | 4,104 | | | | 4,116 | | | | 4,598 | | | |
| Nonaccrual securities | | | 408 | | | | | | 408 | | | | 408 | | | | 408 | | | | 408 | | | |
| Total nonperforming assets | | $ | 11,250 | | | | | $ | 10,888 | | | $ | 12,467 | | | $ | 11,129 | | | $ | 11,427 | | | |
| | | | | | | | | | | | | | | |
| Nonperforming assets to total assets | | | .91 | % | | | | | .95 | % | | | 1.10 | % | | | 1.00 | % | | | 1.00 | % | | |
| Nonperforming assets to total loans + ORE | | | 1.40 | % | | | | | 1.40 | % | | | 1.66 | % | | | 1.51 | % | | | 1.58 | % | | |
| ALLL to nonperforming loans | | | 107.8 | % | | | | | 91.21 | % | | | 84.65 | % | | | 97.18 | % | | | 92.32 | % | | |
| ALLL to total loans | | | .88 | % | | | | | .87 | % | | | .90 | % | | | .88 | % | | | .83 | % | | |
| | | | | | | | | | | | | | | |
| Quarter-to-date net charge-offs (recoveries) | | $ | (48 | ) | | | | $ | (3 | ) | | $ | (65 | ) | | $ | (490 | ) | | $ | 316 | | | |
| Annualized QTD net chg/offs (recs) to loans | | | (0.02 | %) | | | | | (0.002 | %) | | | (0.03 | %) | | | (0.27 | %) | | | .18 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| 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, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 | | March 31, 2015 |
| | | | 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 | | $ | 189,249 | | $ | 1,056 | | 2.23 | % | | $ | 177,964 | | $ | 1,006 | | 2.26 | % | | $ | 172,478 | | $ | 976 | | 2.26 | % | | $ | 179,580 | | $ | 991 | | 2.21 | % | | $ | 184,401 | | $ | 992 | | 2.15 | % |
Tax-exempt securities | | | 76,795 | | | 693 | | 3.61 | % | | | 75,570 | | | 685 | | 3.63 | % | | | 74,807 | | | 662 | | 3.54 | % | | | 79,568 | | | 702 | | 3.53 | % | | | 81,717 | | | 759 | | 3.72 | % |
Total investment securities | | | 266,044 | | | 1,749 | | 2.63 | % | | | 253,534 | | | 1,691 | | 2.67 | % | | | 247,285 | | | 1,638 | | 2.65 | % | | | 259,148 | | | 1,693 | | 2.61 | % | | | 266,118 | | | 1,751 | | 2.63 | % |
| Fed funds sold | | | 12,395 | | | 30 | | 0.97 | % | | | 405 | | | 1 | | 0.99 | % | | | 5,502 | | | 13 | | 0.95 | % | | | 6,702 | | | 16 | | 0.95 | % | | | 16,248 | | | 23 | | 0.57 | % |
Int bearing deposits in other banks | | | 20,909 | | | 20 | | 0.38 | % | | | 21,601 | | | 25 | | 0.46 | % | | | 20,613 | | | 25 | | 0.49 | % | | | 24,089 | | | 19 | | 0.32 | % | | | 27,430 | | | 19 | | 0.28 | % |
| Loans | | | 779,418 | | | 9,035 | | 4.64 | % | | | 757,036 | | | 8,933 | | 4.72 | % | | | 731,818 | | | 8,629 | | 4.72 | % | | | 728,416 | | | 8,532 | | 4.69 | % | | | 705,752 | | | 8,148 | | 4.62 | % |
Total Interest earning assets | | | 1,078,766 | | | 10,834 | | 4.02 | % | | | 1,032,576 | | | 10,650 | | 4.13 | % | | | 1,005,218 | | | 10,305 | | 4.10 | % | | | 1,018,355 | | | 10,260 | | 4.03 | % | | | 1,015,548 | | | 9,941 | | 3.92 | % |
| Other assets | | | 117,562 | | | | | | | 99,348 | | | | | | | 104,726 | | | | | | | 101,293 | | | | | | | 111,801 | | | | |
| Total assets | | $ | 1,196,328 | | | | | | $ | 1,131,924 | | | | | | $ | 1,109,944 | | | | | | $ | 1,119,648 | | | | | | $ | 1,127,349 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | $ | 777,692 | | $ | 701 | | 0.36 | % | | $ | 752,098 | | $ | 626 | | 0.33 | % | | $ | 759,939 | | $ | 646 | | 0.34 | % | | $ | 772,837 | | $ | 658 | | 0.34 | % | | $ | 736,199 | | $ | 632 | | 0.34 | % |
| Repo | | | 5,000 | | | 48 | | 3.84 | % | | | 5,000 | | | 48 | | 3.84 | % | | | 5,000 | | | 48 | | 3.84 | % | | | 5,000 | | | 48 | | 3.84 | % | | | 5,000 | | | 48 | | 3.84 | % |
| Fed funds purchased | | | 782 | | | 2 | | 1.02 | % | | | 1,984 | | | 6 | | 1.21 | % | | | 661 | | | 2 | | 1.21 | % | | | 1,180 | | | 3 | | 1.02 | % | | | 108 | | | - | | 0.00 | % |
| FHLB | | | 106,352 | | | 143 | | 0.54 | % | | | 60,961 | | | 77 | | 0.51 | % | | | 37,716 | | | 50 | | 0.53 | % | | | 27,117 | | | 51 | | 0.75 | % | | | 78,892 | | | 78 | | 0.40 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Subordinated debentures | | | 10,310 | | | 28 | | 1.09 | % | | | 10,310 | | | 47 | | 1.82 | % | | | 10,310 | | | 47 | | 1.82 | % | | | 10,310 | | | 46 | | 1.78 | % | | | 10,310 | | | 45 | | 1.75 | % |
Total interest bearing liabilities | | | 900,136 | | | 922 | | 0.41 | % | | | 830,353 | | | 804 | | 0.39 | % | | | 813,626 | | | 793 | | 0.39 | % | | | 816,444 | | | 806 | | 0.39 | % | | | 830,509 | | | 804 | | 0.39 | % |
| Other liabilities | | | 191,914 | | | | | | | 200,326 | | | | | | | 197,150 | | | | | | | 206,095 | | | | | | | 199,995 | | | | |
| Shareholders' equity | | | 104,278 | | | | | | | 101,245 | | | | | | | 99,168 | | | | | | | 97,109 | | | | | | | 96,845 | | | | |
Total liabilities and shareholders' equity | | $ | 1,196,328 | | | | | | $ | 1,131,924 | | | | | | $ | 1,109,944 | | | | | | $ | 1,119,648 | | | | | | $ | 1,127,349 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (TE) | | | | $ | 9,912 | | 3.61 | % | | | | $ | 9,846 | | 3.74 | % | | | | $ | 9,512 | | 3.71 | % | | | | $ | 9,454 | | 3.64 | % | | | | $ | 9,137 | | 3.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | 3.68 | % | | | | | | 3.81 | % | | | | | | 3.79 | % | | | | | | 3.71 | % | | | | | | 3.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core net interest margin* | | | | | | 3.66 | % | | | | | | 3.77 | % | | | | | | 3.73 | % | | | | | | 3.66 | % | | | | | | 3.57 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Reconcilement of Non-GAAP Financial Measures (unaudited) |
| (in thousands except per share data) |
| | Three Months Ended |
| | Mar 31, | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, |
| Per Common Share Data | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Book value per common share | | $ | 16.58 | | | $ | 16.05 | | | $ | 15.72 | | | $ | 15.13 | | | $ | 15.19 | |
| Effect of intangible assets per share | | | 2.91 | | | | 2.95 | | | | 2.70 | | | | 2.72 | | | | 2.73 | |
| Tangible book value per common share | | $ | 13.67 | | | $ | 13.10 | | | $ | 13.02 | | | $ | 12.41 | | | $ | 12.46 | |
| | | | | | | | | | | |
| Diluted earnings per share | | $ | 0.46 | | | $ | 0.42 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.36 | |
| Effect of gain on debit card conversion, after-tax | | | (0.03 | ) | | | - | | | | - | | | | - | | | | - | |
| Effect of gain on sale of bank premises, after-tax | | | - | | | | - | | | | - | | | | - | | | | (0.02 | ) |
| Effect of BAE, after-tax | | | - | | | | (0.02 | ) | | | - | | | | - | | | | - | |
| Effect of acquisition charges, after-tax | | | - | | | | - | | | | - | | | | - | | | | - | |
| Diluted earnings per share, operating | | $ | 0.43 | | | $ | 0.40 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.34 | |
| | | | | | | | | | | |
| | | Three Months Ended |
| | Mar 31, | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, |
| Average Balance Sheet Data | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Total average assets A | | $ | 1,196,328 | | | $ | 1,131,924 | | | $ | 1,109,944 | | | $ | 1,119,648 | | | $ | 1,127,349 | |
| | | | | | | | | | | |
| Total equity | | $ | 104,278 | | | $ | 101,245 | | | $ | 99,168 | | | $ | 97,109 | | | $ | 96,845 | |
| Less preferred equity | | | 17,123 | | | | 17,123 | | | | 17,123 | | | | 17,123 | | | | 17,123 | |
| Total common equity B | | | 87,155 | | | | 84,122 | | | | 82,045 | | | | 79,986 | | | | 79,722 | |
| Less intangible assets | | | 15,858 | | | | 14,608 | | | | 14,553 | | | | 14,652 | | | | 14,755 | |
| Tangible common equity C | | $ | 71,297 | | | $ | 69,514 | | | $ | 67,492 | | | $ | 65,334 | | | $ | 64,967 | |
| | | | | | | | | | | |
| | | Three Months Ended |
| | Mar 31, | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, |
| Core Net Interest Margin | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Net interest income (TE) | | $ | 9,912 | | | $ | 9,846 | | | $ | 9,512 | | | $ | 9,454 | | | $ | 9,137 | |
| Less purchase accounting adjustments | | | 22 | | | | 90 | | | | 120 | | | | 117 | | | | 48 | |
| Net interest income, net of purchase accounting adj D | | $ | 9,890 | | | $ | 9,756 | | | $ | 9,392 | | | $ | 9,337 | | | $ | 9,089 | |
| | | | | | | | | | | |
| Total average earning assets | | $ | 1,078,766 | | | $ | 1,032,576 | | | $ | 1,005,218 | | | $ | 1,018,355 | | | $ | 1,015,548 | |
| Add average balance of loan valuation discount | | | 1,526 | | | | 1,583 | | | | 1,657 | | | | 1,727 | | | | 1,730 | |
| Avg earning assets, excluding loan valuation discount E | | $ | 1,080,292 | | | $ | 1,034,159 | | | $ | 1,006,875 | | | $ | 1,020,082 | | | $ | 1,017,278 | |
| | | | | | | | | | | |
| Core net interest margin D/E | | | 3.66 | % | | | 3.77 | % | | | 3.73 | % | | | 3.66 | % | | | 3.57 | % |
| | | | | | | | | | | |
| | | Three Months Ended |
| | Mar 31, | | Dec 31, | | Sept 30, | | June 30, | | Mar 31, |
| Return Ratios | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Net earnings F | | $ | 2,604 | | | $ | 2,358 | | | $ | 2,227 | | | $ | 2,185 | | | $ | 2,029 | |
| Dividends and accretion on preferred stock | | | 85 | | | | 85 | | | | 86 | | | | 86 | | | | 85 | |
| Net earnings available to common shareholders | | | 2,519 | | | | 2,273 | | | | 2,141 | | | | 2,099 | | | | 1,944 | |
| Gain on debit card conversion, after-tax | | | (189 | ) | | | - | | | | - | | | | - | | | | - | |
| Gain on sale of premises and equipment, after-tax | | | - | | | | - | | | | - | | | | - | | | | (84 | ) |
| BAE, after-tax | | | - | | | | (112 | ) | | | - | | | | - | | | | - | |
| Acquisition charges, after-tax | | | - | | | | - | | | | - | | | | - | | | | - | |
| Net earnings available to common shareholders, oper G | | $ | 2,330 | | | $ | 2,161 | | | $ | 2,141 | | | $ | 2,099 | | | $ | 1,860 | |
| | | | | | | | | | | |
| Annualized return on avg assets F/A | | | .87 | % | | | .83 | % | | | .80 | % | | | .78 | % | | | .72 | % |
| Annualized return on avg assets, oper G/A | | | .78 | % | | | .76 | % | | | .78 | % | | | .75 | % | | | .66 | % |
| Annualized return on avg common equity, oper G/B | | | 10.69 | % | | | 10.27 | % | | | 10.44 | % | | | 10.50 | % | | | 9.33 | % |
| Annualized return on avg tangible common equity, oper G/C | | | 13.07 | % | | | 12.43 | % | | | 12.69 | % | | | 12.85 | % | | | 11.45 | % |
| | | | | | | | | | | | | | | | | | | | |
Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.
We use non-GAAP measures because we believe they are useful for evaluating our financial condition with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are necessarily comparable to non-GAAP performance measures that other companies may use.
CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer
