Exhibit 99.1
The First Bancshares, Inc. Reports a 121.7% Increase in Net Income Available to Common Shareholders and a 102.7% Increase in Operating Net Earnings for the Second Quarter Ended June 30, 2018; Declares Quarterly Dividend of $0.05
HATTIESBURG, Miss.--(BUSINESS WIRE)--July 23, 2018--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders of $5.2 million for the second quarter of 2018, an increase of $2.9 million or 121.7%, compared to $2.4 million for the second quarter of 2017. Operating net earnings increased 102.7% ($4.1 million) for the second quarter comparison, totaling $8.1 million for the second quarter of 2018 as compared to $4.0 million for the second quarter of 2017. Operating net earnings excludes merger-related costs of $2.9 million for the second quarter of 2018 and $1.6 million for the second quarter of 2017, net of tax.
For the second quarter of 2018, fully diluted earnings per share were $0.40, compared to $0.26 for the second quarter of 2017. Excluding the impact of the merger-related costs, fully diluted operating earnings per share for the second quarter of 2018 were $0.62 as compared to $0.44 for the second quarter of 2017. Fully diluted earnings per share for 2018 include the issuance of 2,012,500 shares of our common stock during the fourth quarter of 2017.
Highlights for the Quarter:
- On April 1, 2018, the Company closed as planned the acquisition of Sunshine Financial, Inc. and its wholly-owned subsidiary, Sunshine Community Bank, which added 5 locations serving Tallahassee, Florida.
- During the quarter, system integration was completed for First Community Bank which closed on March 1, 2018.
- Excluding the Sunshine Community Bank acquisition, loans increased $26.4 million or 1.7% during the second quarter of 2018.
- On April 30, 2017, the Company issued $66 million in aggregate principal amount of subordinated debt.
- During the quarter, the Company received a $0.9 million financial assistance grant from the U. S. Treasury as a result of our designation as a Community Development Financial Institution.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “The Companies profitability and operating performance measures have continued to improve quarter over quarter. During the 2nd quarter of 2018 we achieved an operating ROAA of 1.33% and an operating ROATCE of 15%. This improvement is the result of the substantial growth we have generated over the last year combined with increases in our net interest margin and operating efficiency.
During the 2nd quarter our team members successfully integrated First Community Bank’s operating systems and closed on the Sunshine Bank acquisition. Both of these events, as well as solid organic growth contributed to the substantial improvement in the Company’s overall performance. Our team members continue to be focused on executing our strategic vision of growing our franchise in the Gulf South region.”
Balance Sheet
Consolidated assets increased $182.3 million to $2.482 billion at June 30, 2018 from $2.299 billion at March 31, 2018. The acquisition of Sunshine Community Bank added $223.6 million in assets.
Total loans were $1.710 billion at June 30, 2018, as compared to $1.517 billion at March 31, 2018, and $1.188 billion at June 30, 2017, representing increases of $193.7 million or 12.8%, and $522.3 million or 44.0%, respectively. The acquisition of Sunshine Community Bank accounted for $170.8 million, net of fair value mark of the total increase in loans as compared to the first quarter of 2018. The acquisitions of First Community Bank and Sunshine Community Bank accounted for $437.1 million, net of fair value mark of the total increase in loans as compared to the second quarter of 2017. Loans excluding those purchased from Sunshine Community Bank grew $26.4 million or 1.7% during the second quarter of 2018 as compared to the first quarter of 2018.
Total deposits were $2.097 billion at June 30, 2018, as compared to $1.992 billion at March 31, 2018, and $1.551 billion at June 30, 2017, representing increases of $105.6 million or 5.3%, and $546.4 million or 35.2%, respectively. The acquisition of Sunshine Community Bank accounted for $152.0 million, net of fair value mark of the total increase in deposits as compared to the first quarter of 2018. The acquisitions of First Community Bank and Sunshine Community Bank accounted for $509.2 million, net of fair value mark of the total increase in deposits as compared to the second quarter of 2017. Net of the deposits acquired from Sunshine Community Bank, deposits decreased $46.4 million for the sequential-quarter. The decrease in non-acquired deposits was largely due to a decrease in NOW accounts of $21.2 million, which is attributable to the seasonality of the public fund deposits.
During the quarter, the Company issued $66 million in aggregate principal amount of subordinated debt. The net proceeds of the issuance will be used to support future growth and general corporate purposes along with the repayment of an existing line of credit with a balance of $16 million.
Asset Quality
Nonperforming assets totaled $17.9 million at June 30, 2018, an increase of $3.1 million compared to $14.8 million at March 31, 2018 and an increase of $4.7 million compared to June 30, 2017. The majority of the increase in both quarterly comparisons was related to acquired nonaccrual loans. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.56% at June 30, 2018 and 0.57% at March 31, 2018. Including total valuation accounting adjustments of $7.0 million on acquired loans, the total valuation plus ALLL was .97% of total loans at June 30, 2018. The ratio of annualized net charge-offs (recoveries) to total loans was 0.003% for the quarter ended June 30, 2018 compared to (0.02%) for the quarter ended March 31, 2018.
Second Quarter 2018 vs. Second Quarter 2017 Earnings Comparison
Net income available to common shareholders for the second quarter of 2018 totaled $5.2 million compared to $2.4 million for the second quarter of 2017, an increase of $2.9 million or 121.7%.
Operating net earnings for the second quarter of 2018 totaled $8.1 million compared to $4.0 million for the second quarter of 2017, an increase of $4.1 million or 102.7%. The calculation of operating net earnings excludes merger-related costs.
For the second quarter of 2018, revenues from consolidated operations increased $10.3 million in prior year quarterly comparison. Net interest income for the second quarter of 2018 was $21.5 million, an increase of $6.7 million when compared to the second quarter of 2017. The increase was due to interest income earned on a higher volume of loans as well as increased rates.
Non-interest income increased $1.9 million for the second quarter of 2018 as compared to the second quarter of 2017 due to increased service charges and interchange fee income of $1.0 million. The Company also received a financial assistance award of $0.9 million from the U.S. Treasury during the second quarter of 2018 as a result of our designation as a Community Development Financial Institution.
Second quarter 2018 non-interest expense was $19.7 million, an increase of $4.6 million, or 30.6% as compared to the second quarter of 2017. Excluding acquisition charges of $3.8 million and $2.7 million for second quarter of 2018 and 2017, respectively, non-interest expense increased $3.5 million in the second quarter of 2018 as compared to second quarter of 2017, of which $1.8 million is attributable to the salaries and benefits related to the acquisitions of First Community Bank and Sunshine Community Bank.
Net interest income was $21.6 million for the second quarter of 2018 as compared to $14.8 million for the second quarter of 2017. Fully tax equivalent (“FTE”) net interest income totaled $21.8 million and $15.1 million for the second quarter of 2018 and 2017, respectively. FTE net interest income increased $6.7 million in the prior year quarterly comparison due to increased loan volume as well as increased rates. Purchase accounting adjustments accounted for $0.4 million of the difference in net interest income for the second quarter comparisons. Second quarter 2018 FTE net interest margin of 3.92% includes 10 basis points related to purchase accounting adjustments compared to 3.84% for the same quarter in 2017 which included 3 basis points related to purchase accounting adjustments.
Investment securities totaled $453.3 million, or 18.3% of total assets at June 30, 2018, versus $382.0 million, or 21.3% of total assets at June 30, 2017. The average volume of investment securities increased $69.3 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 43 basis points to 3.08% from 2.65% in prior year quarterly comparison. The investment portfolio had a net unrealized loss of $6.0 million at June 30, 2018 as compared to a net unrealized gain of $3.6 million at June 30, 2017.
The FTE average yield on all earning assets increased 29 basis points in prior year quarterly comparison, from 4.25% for the second quarter of 2017 to 4.54% for the second quarter of 2018. Average interest expense increased 28 basis points from 0.51% for the second quarter of 2017 to 0.79% for the second quarter of 2018 due primarily to increased deposit accounts as well as the new issuance of subordinated debt. Cost of all deposits averaged 49 basis points for the second quarter of 2018 compared to 33 basis points for the second quarter of 2017. Public funds increased $36.0 million when comparing June 30, 2018 to June 30, 2017.
Second Quarter 2018 vs First Quarter 2018 Earnings Comparison
Net income available to common shareholders for the second quarter of 2018 increased $1.3 million or 32.5% compared to $4.0 million in the first quarter of 2018.
Operating net earnings for the second quarter of 2018 compared to the first quarter of 2018 increased $2.8 million or 51.8% from $5.4 million for the first quarter of 2018 to $8.1 million for the second quarter of 2018. Operating net earnings exclude the merger-related costs discussed above.
Net interest income for the second quarter of 2018 was $21.6 million as compared to $16.4 million for the first quarter of 2018, an increase of $5.2 million. FTE net interest income increased $5.2 million to $21.8 million from $16.6 million in sequential-quarter comparison. The increase was due to increased loan volume as well as increased rates. Interest income from purchase accounting adjustments increased $0.5 million in sequential quarter comparison due to the acquisitions of First Community Bank and Sunshine Community Bank. Second quarter 2018 FTE net interest margin of 3.92% includes 10 basis points related to purchase accounting adjustments compared to 3.67% for the first quarter in 2018 which included 2 basis points related to purchase accounting adjustments.
Investment securities totaled $453.3 million, or 18.3% of total assets at June 30, 2018, versus $441.9 million, or 19.2% of total assets at March 31, 2018. The average volume of investment securities increased $66.0 million in sequential-quarter comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 4 basis points to 3.08% from 3.04% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $6.0 million at June 30, 2018 as compared to a net unrealized loss of $5.1 million at March 31, 2018.
The FTE average yield on all earning assets increased in sequential-quarter comparison from 4.19% to 4.54%. Average interest expense increased 12 basis points from 0.67% for the first quarter of 2018 to 0.79% for the second quarter of 2018 due primarily to increased deposit accounts as well as the new issuance of subordinated debt. Cost of all deposits averaged 49 basis points for the second quarter of 2018 compared to 44 basis points for the first quarter of 2018. Public funds decreased $21.2 million when comparing June 30, 2018 to March 31, 2018.
Non-interest income increased $2.2 million in sequential-quarter comparison resulting from increased mortgage income of $0.4 million, increased service charges and interchange fee income of $0.8 million as well as the U. S. Treasury financial assistance award of $0.9 million.
Excluding acquisition charges, non-interest expense increased $3.0 million in sequential-quarter comparison, which reflects increases in salaries and employee benefits of $1.7 million, an increase in occupancy expense of $0.4 million, an increase in other professional services of $0.3 million and an increase in other non-interest expenses of $0.5 million. These increases are mainly due to the acquisitions of First Community Bank and Sunshine Bank.
Year to Date Earnings Comparison
In year-over-year comparison, net income available to common shareholders increased $5.7 million, or 163.8%, from $3.5 million at June 30, 2017 to $9.2 million at June 30, 2018. Operating net earnings increased $6.1 million or 82.5% from $7.4 million at June 30, 2017 to $13.5 million at June 30, 2018. Operating net earnings excludes merger-related costs of $4.3 million, net of tax for the year to date period ending June 30, 2018 and $3.9 million, net of tax for the year to date period ending June 30, 2017.
Net interest income increased $8.9 million in year-over-year comparison, primarily due to interest income earned on a higher volume of loans as well as increased rate.
Non-interest income was $9.1 million at June 30, 2018, an increase of $1.9 million in year-over-year comparison consisting of increases in service charges on deposit accounts, interchange fee income, other charges and fees as well as the financial assistance award.
Non-interest expense was $34.3 million at June 30, 2018, an increase of $3.1 million in year-over-year comparison primarily resulting from increases in salaries and benefits of $2.0 million which relates to the acquisitions of First Community Bank and Sunshine Bank. Increases in occupancy, FDIC premiums, amortization of core deposit intangibles and other non-interest expense were attributable to the acquisitions.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend in the amount of $0.05 per share, to be paid on its common stock on August 22, 2018 to shareholders of record as of the close of business on August 7, 2018.
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 Mississippi, Louisiana, Alabama and Florida. 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 operating net earnings, operating earnings per share, fully tax equivalent net interest income, total tangible common equity, tangible book value per common share 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 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 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; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; and risks related to the acquisitions of Southwest Banc Shares, Inc. and Sunshine Financial, Inc., including the risk that anticipated benefits from the transactions 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. 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 Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. 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.
| FIRST BANCSHARES, INC and SUBSIDIARIES | ||||||||||||||||||||||||||
| Condensed Consolidated Financial Information (unaudited) | ||||||||||||||||||||||||||
| (in thousands except per share data) | ||||||||||||||||||||||||||
| EARNINGS DATA | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Total Interest Income | $ | 25,037 | $ | 18,758 | $ | 17,143 | $ | 16,708 | $ | 16,464 | ||||||||||||||||
| Total Interest Expense | 3,468 | 2,378 | 1,922 | 1,773 | 1,629 | |||||||||||||||||||||
| Net Interest Income | 21,569 | 16,380 | 15,221 | 14,935 | 14,835 | |||||||||||||||||||||
| FTE net interest income* | 21,826 | 16,609 | 15,523 | 15,232 | 15,140 | |||||||||||||||||||||
| Provision for loan losses | 857 | 277 | 122 | 90 | 248 | |||||||||||||||||||||
| Non-interest income | 5,632 | 3,459 | 3,556 | 3,658 | 3,757 | |||||||||||||||||||||
| Non-interest expense | 19,680 | 14,597 | 12,390 | 11,888 | 15,070 | |||||||||||||||||||||
| Earnings before income taxes | 6,664 | 4,965 | 6,265 | 6,615 | 3,274 | |||||||||||||||||||||
| Income tax expense | 1,419 | 1,008 | 3,851 | 1,901 | 908 | |||||||||||||||||||||
| Net income available to common shareholders | $ | 5,245 | $ | 3,957 | $ | 2,414 | $ | 4,714 | $ | 2,366 | ||||||||||||||||
| PER COMMON SHARE DATA | ||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.40 | $ | 0.34 | $ | 0.23 | $ | 0.52 | $ | 0.26 | ||||||||||||||||
| Diluted earnings per share | 0.40 | 0.34 | 0.23 | 0.51 | 0.26 | |||||||||||||||||||||
| Diluted earnings per share, operating* | 0.62 | 0.46 | 0.45 | 0.51 | 0.44 | |||||||||||||||||||||
| Quarterly dividends per share | .05 | .05 | .0375 | .0375 | .0375 | |||||||||||||||||||||
| Book value per common share at end of period | 21.88 | 20.95 | 19.92 | 18.24 | 17.80 | |||||||||||||||||||||
| Tangible common book value at period end* | 16.82 | 16.39 | 17.71 | 15.48 | 15.00 | |||||||||||||||||||||
| Market price at end of period | 36.80 | 32.25 | 34.20 | 30.15 | 27.60 | |||||||||||||||||||||
| Shares outstanding at period end | 13,065,953 | 12,339,492 | 11,165,907 | 9,153,407 | 9,152,657 | |||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 13,065,953 | 11,556,968 | 10,521,236 | 9,152,674 | 9,145,179 | |||||||||||||||||||||
| Diluted | 13,167,969 | 11,652,959 | 10,598,036 | 9,224,481 | 9,206,378 | |||||||||||||||||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||||||||
| Total assets | $ | 2,443,176 | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | ||||||||||||||||
| Loans and leases | 1,696,737 | 1,325,272 | 1,215,962 | 1,185,493 | 1,155,699 | |||||||||||||||||||||
| Total deposits | 2,115,661 | 1,683,999 | 1,475,628 | 1,512,616 | 1,527,119 | |||||||||||||||||||||
| Total common equity | 274,535 | 230,255 | 205,580 | 164,455 | 155,667 | |||||||||||||||||||||
| Total tangible common equity* | 217,092 | 196,326 | 180,322 | 139,013 | 130,789 | |||||||||||||||||||||
| SELECTED RATIOS | ||||||||||||||||||||||||||
| Annualized return on avg assets | 0.86 | % | 0.80 | % | 0.53 | % | 1.06 | % | 0.54 | % | ||||||||||||||||
| Annualized return on avg assets, operating* | 1.33 | % | 1.08 | % | 1.05 | % | 1.07 | % | 0.92 | % | ||||||||||||||||
| Annualized return on avg common equity, operating* | 11.85 | % | 9.31 | % | 9.21 | % | 11.54 | % | 10.31 | % | ||||||||||||||||
| Annualized return on avg tangible common equity, oper* | 14.99 | % | 10.92 | % | 10.49 | % | 13.65 | % | 12.27 | % | ||||||||||||||||
| Average loans to average deposits | 80.20 | % | 78.70 | % | 82.40 | % | 78.37 | % | 75.68 | % | ||||||||||||||||
| FTE Net Interest Margin* | 3.91 | % | 3.67 | % | 3.79 | % | 3.81 | % | 3.84 | % | ||||||||||||||||
| Efficiency Ratio | 71.67 | % | 72.74 | % | 64.94 | % | 62.93 | % | 79.75 | % | ||||||||||||||||
| Efficiency Ratio, operating* | 57.70 | % | 63.98 | % | 62.93 | % | 62.68 | % | 65.56 | % | ||||||||||||||||
| CREDIT QUALITY | ||||||||||||||||||||||||||
| Allowance for loan losses (ALLL) as a % of total loans | 0.56 | % | 0.57 | % | 0.68 | % | 0.68 | % | 0.68 | % | ||||||||||||||||
| Nonperforming assets to tangible equity + ALLL | 7.88 | % | 6.99 | % | 6.56 | % | 9.71 | % | 9.10 | % | ||||||||||||||||
| Nonperforming assets to total loans + ORE | 1.04 | % | 0.97 | % | 1.10 | % | 1.21 | % | 1.11 | % | ||||||||||||||||
| Annualized QTD net charge-offs (recoveries) to total loans | 0.003 | % | (0.02 | %) | 0.003 | % | (0.005 | %) | (0.003 | %) | ||||||||||||||||
*See reconciliation of Non-GAAP financial measures | ||||||||||||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | ||||||||||||||||||||||||||
| Condensed Consolidated Financial Information (unaudited) | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| BALANCE SHEET | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 120,425 | $ | 162,521 | $ | 91,922 | $ | 93,317 | $ | 92,596 | ||||||||||||||||
| Securities available-for-sale | 437,011 | 425,529 | 356,893 | 353,035 | 366,490 | |||||||||||||||||||||
| Securities held-to-maturity | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | |||||||||||||||||||||
| Other investments | 10,320 | 10,399 | 9,969 | 9,556 | 9,544 | |||||||||||||||||||||
| Total investment securities | 453,331 | 441,928 | 372,862 | 368,591 | 382,034 | |||||||||||||||||||||
| Loans held for sale | 5,914 | 2,538 | 4,790 | 4,588 | 5,907 | |||||||||||||||||||||
| Total loans | 1,710,271 | 1,516,579 | 1,225,306 | 1,198,193 | 1,187,936 | |||||||||||||||||||||
| Allowance for loan losses | (9,512 | ) | (8,659 | ) | (8,288 | ) | (8,175 | ) | (8,070 | ) | ||||||||||||||||
| Loans, net | 1,700,759 | 1,507,920 | 1,217,018 | 1,190,018 | 1,179,866 | |||||||||||||||||||||
| Premises and equipment | 62,289 | 57,430 | 46,426 | 46,203 | 44,766 | |||||||||||||||||||||
| Other Real Estate | 7,890 | 7,357 | 7,158 | 7,855 | 8,072 | |||||||||||||||||||||
| Goodwill and other intangibles | 66,105 | 56,343 | 24,670 | 25,325 | 25,615 | |||||||||||||||||||||
| Other assets | 64,976 | 63,376 | 48,392 | 52,079 | 50,766 | |||||||||||||||||||||
| Total assets | $ | 2,481,689 | $ | 2,299,413 | $ | 1,813,238 | $ | 1,787,976 | $ | 1,789,622 | ||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 459,402 | $ | 414,142 | $ | 301,989 | $ | 308,050 | $ | 319,494 | ||||||||||||||||
| Interest-bearing deposits | 1,637,833 | 1,577,502 | 1,168,576 | 1,199,941 | 1,231,305 | |||||||||||||||||||||
| Total deposits | 2,097,235 | 1,991,644 | 1,470,565 | 1,507,991 | 1,550,799 | |||||||||||||||||||||
| Borrowings | 10,516 | 29,034 | 104,072 | 94,321 | 59,367 | |||||||||||||||||||||
| Subordinated debentures | 75,192 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||||||||
| Other liabilities | 12,920 | 9,886 | 5,823 | 8,374 | 6,267 | |||||||||||||||||||||
| Total liabilities | 2,195,863 | 2,040,874 | 1,590,770 | 1,620,996 | 1,626,743 | |||||||||||||||||||||
| Total shareholders’ equity | 285,826 | 258,539 | 222,468 | 166,980 | 162,879 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,481,689 | $ | 2,299,413 | $ | 1,813,238 | $ | 1,787,976 | $ | 1,789,622 | ||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | |||||||||||||||||||||||||
| Condensed Consolidated Financial Information (unaudited) | |||||||||||||||||||||||||
| (in thousands except per share data) | |||||||||||||||||||||||||
| EARNINGS STATEMENT | Three Months Ended | ||||||||||||||||||||||||
| 6/30/18 | 3/31/18 | 12/31/17 | 9/30/17 | 6/30/17 | |||||||||||||||||||||
| Interest Income: | |||||||||||||||||||||||||
| Loans, including fees | $ | 21,155 | $ | 15,926 | $ | 14,687 | $ | 14,357 | $ | 14,114 | |||||||||||||||
| Investment securities | 3,262 | 2,661 | 2,346 | 2,180 | 2,197 | ||||||||||||||||||||
| Accretion of purchase accounting adjustments | 559 | 59 | 57 | 55 | 56 | ||||||||||||||||||||
| Other interest income | 61 | 112 | 53 | 116 | 97 | ||||||||||||||||||||
| Total interest income | 25,037 | 18,758 | 17,143 | 16,708 | 16,464 | ||||||||||||||||||||
| Interest Expense: | |||||||||||||||||||||||||
| Deposits | 2,498 | 1,840 | 1,455 | 1,436 | 1,364 | ||||||||||||||||||||
| Borrowings | 69 | 460 | 392 | 357 | 259 | ||||||||||||||||||||
| Subordinated debentures | 852 | 78 | 105 | 41 | 67 | ||||||||||||||||||||
| Accretion of purchase accounting adjustments | 49 | - | (30 | ) | (61 | ) | (61 | ) | |||||||||||||||||
| Total interest expense | 3,468 | 2,378 | 1,922 | 1,773 | 1,629 | ||||||||||||||||||||
| Net interest income | 21,569 | 16,380 | 15,221 | 14,935 | 14,835 | ||||||||||||||||||||
| Provision for loan losses | 857 | 277 | 122 | 90 | 248 | ||||||||||||||||||||
| Net interest income after provision for loan losses | 20,712 | 16,103 | 15,099 | 14,845 | 14,587 | ||||||||||||||||||||
| Non-interest Income: | |||||||||||||||||||||||||
| Service charges on deposit accounts | 1,341 | 1,027 | 908 | 902 | 922 | ||||||||||||||||||||
| Mortgage Income | 1,213 | 800 | 1,102 | 1,276 | 1,208 | ||||||||||||||||||||
| Interchange Fee Income | 1,500 | 1,040 | 961 | 935 | 959 | ||||||||||||||||||||
| Gain (loss) on securities, net | (5 | ) | - | 3 | (10 | ) | (1 | ) | |||||||||||||||||
| Gain on sale of premises and equipment | - | - | - | - | - | ||||||||||||||||||||
| Financial Assistance Award | 917 | - | - | - | - | ||||||||||||||||||||
| Other charges and fees | 666 | 592 | 582 | 555 | 669 | ||||||||||||||||||||
| Total non-interest income | 5,632 | 3,459 | 3,556 | 3,658 | 3,757 | ||||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||||
| Salaries and employee benefits | 9,502 | 7,789 | 7,478 | 7,327 | 7,625 | ||||||||||||||||||||
| Occupancy expense | 2,034 | 1,646 | 1,427 | 1,390 | 1,348 | ||||||||||||||||||||
| FDIC premiums | 368 | 367 | 365 | 355 | 331 | ||||||||||||||||||||
| Marketing | 70 | 80 | 118 | 50 | 99 | ||||||||||||||||||||
| Amortization of core deposit intangibles | 356 | 201 | 173 | 160 | 182 | ||||||||||||||||||||
| Other professional services | 438 | 189 | 194 | 367 | 567 | ||||||||||||||||||||
| Acquisition charges | 3,838 | 1,758 | 384 | - | 2,682 | ||||||||||||||||||||
| Other non-interest expense | 3,074 | 2,567 | 2,251 | 2,239 | 2,236 | ||||||||||||||||||||
| Total Non-interest expense | 19,680 | 14,597 | 12,390 | 11,888 | 15,070 | ||||||||||||||||||||
| Earnings before income taxes | 6,664 | 4,965 | 6,265 | 6,615 | 3,274 | ||||||||||||||||||||
| Income tax expense | 1,419 | 1,008 | 3,851 | 1,901 | 908 | ||||||||||||||||||||
| Net income available to common shareholders | $ | 5,245 | $ | 3,957 | $ | 2,414 | $ | 4,714 | $ | 2,366 | |||||||||||||||
| Diluted earnings per common share | $ | 0.40 | $ | 0.34 | $ | 0.23 | $ | 0.51 | $ | 0.26 | |||||||||||||||
| Diluted earnings per common share, operating* | $ | 0.62 | $ | 0.46 | $ | 0.45 | $ | 0.51 | $ | 0.44 | |||||||||||||||
| *See reconciliation of Non-GAAP financial measures | |||||||||||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | |||||||||||
| Condensed Consolidated Financial Information (unaudited) | |||||||||||
| (in thousands except per share data) | |||||||||||
| EARNINGS STATEMENT | Year to Date | ||||||||||
| 2018 | 2017 | ||||||||||
| Interest Income: | |||||||||||
| Loans, including fees | $ | 37,081 | $ | 27,558 | |||||||
| Investment securities | 5,923 | 4,326 | |||||||||
| Accretion of purchase accounting adjustments | 618 | 112 | |||||||||
| Other interest income | 173 | 221 | |||||||||
| Total interest income | 43,795 | 32,217 | |||||||||
| Interest Expense: | |||||||||||
| Deposits | 4,338 | 2,562 | |||||||||
| Borrowings | 529 | 623 | |||||||||
| Subordinated debentures | 930 | 130 | |||||||||
Amortization (Accretion) of purchase accounting adjustments | 49 | (101 | ) | ||||||||
| Total interest expense | 5,846 | 3,214 | |||||||||
| Net interest income | 37,949 | 29,003 | |||||||||
| Provision for loan losses | 1,134 | 294 | |||||||||
| Net interest income after provision for loan losses | 36,815 | 28,709 | |||||||||
| Non-interest Income: | |||||||||||
| Service charges on deposit accounts | 2,368 | 1,790 | |||||||||
| Mortgage Income | 2,013 | 2,124 | |||||||||
| Interchange Fee Income | 2,540 | 1,862 | |||||||||
| Gain (loss) on securities, net | (5 | ) | (9 | ) | |||||||
| Gain on sale of premises and equipment | - | - | |||||||||
| Financial Assistance Award | 917 | - | |||||||||
| Other charges and fees | 1,258 | 1,381 | |||||||||
| Total non-interest income | 9,091 | 7,148 | |||||||||
| Non-interest expense: | |||||||||||
| Salaries and employee benefits | 17,291 | 15,247 | |||||||||
| Occupancy expense | 3,680 | 2,718 | |||||||||
| FDIC premiums | 735 | 532 | |||||||||
| Marketing | 150 | 168 | |||||||||
| Amortization of core deposit intangibles | 557 | 331 | |||||||||
| Other professional services | 627 | 910 | |||||||||
| Acquisition charges | 5,596 | 6,280 | |||||||||
| Other non-interest expense | 5,641 | 4,979 | |||||||||
| Total Non-interest expense | 34,277 | 31,165 | |||||||||
| Earnings before income taxes | 11,629 | 4,692 | |||||||||
| Income tax expense | 2,427 | 1,204 | |||||||||
| Net income available to common shareholders | $ | 9,202 | $ | 3,488 | |||||||
| Diluted earnings per common share | $ | 0.74 | $ | 0.38 | |||||||
| Diluted earnings per common share, operating* | $ | 1.09 | $ | 0.80 | |||||||
| *See reconciliation of Non-GAAP financial measures | |||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
| Condensed Consolidated Financial Information (unaudited) | ||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||
| COMPOSITION OF LOANS | June 30, | Percent | Mar 31, | Dec 31, | Sept 30, | June 30, | Percent | |||||||||||||||||||||||||||
| Commercial, financial and agricultural | $ | 228,643 | 13.3 | % | $ | 213,118 | $ | 165,780 | $ | 164,577 | $ | 167,799 | 14.1 | % | ||||||||||||||||||||
| Real estate – construction | 229,164 | 13.4 | % | 213,712 | 183,328 | 171,609 | 169,971 | 14.2 | % | |||||||||||||||||||||||||
| Real estate – commercial | 658,096 | 38.3 | % | 561,153 | 467,484 | 456,110 | 448,218 | 37.5 | % | |||||||||||||||||||||||||
| Real estate – residential | 546,120 | 31.8 | % | 475,868 | 385,099 | 377,308 | 372,815 | 31.2 | % | |||||||||||||||||||||||||
| Lease Financing Receivable | 2,476 | 0.1 | % | 2,433 | 2,450 | 2,008 | 2,189 | 0.2 | % | |||||||||||||||||||||||||
| Obligations of States & subdivisions | 10,627 | 0.6 | % | 15,861 | 3,109 | 5,892 | 5,775 | 0.5 | % | |||||||||||||||||||||||||
| Consumer | 35,145 | 2.2 | % | 34,434 | 18,056 | 20,689 | 21,169 | 1.8 | % | |||||||||||||||||||||||||
| Loans held for sale | 5,914 | 0.3 | % | 2,538 | 4,790 | 4,588 | 5,907 | 0.5 | % | |||||||||||||||||||||||||
| Total loans | $ | 1,716,185 | 100 | % | $ | 1,519,117 | $ | 1,230,096 | $ | 1,202,781 | $ | 1,193,843 | 100 | % | ||||||||||||||||||||
| COMPOSITION OF DEPOSITS | June 30, | Percent | Mar 31, | Dec 31, | Sept 30, | June 30, | Percent | |||||||||||||||||||||||||||
| Noninterest bearing | $ | 459,402 | 21.9 | % | $ | 414,142 | $ | 301,989 | $ | 308,050 | $ | 319,494 | 20.6 | % | ||||||||||||||||||||
| NOW and other | 731,617 | 34.9 | % | 761,318 | 601,694 | 639,802 | 665,250 | 42.9 | % | |||||||||||||||||||||||||
| Money Market/Savings | 519,516 | 24.7 | % | 434,569 | 283,5792 | 292,592 | 296,705 | 19.1 | % | |||||||||||||||||||||||||
| Time Deposits of less than $250,000 | 308,086 | 14.7 | % | 295,317 | 220,951 | 209,714 | 203,254 | 13.1 | % | |||||||||||||||||||||||||
| Time Deposits of $250,000 or more | 78,614 | 3.8 | % | 86,298 | 62,352 | 57,833 | 66,096 | 4.3 | % | |||||||||||||||||||||||||
| Total Deposits | $ | 2,097,235 | 100 | % | $ | 1,991,644 | $ | 1,470,565 | $ | 1,507,991 | $ | 1,550,799 | 100 | % | ||||||||||||||||||||
| ASSET QUALITY DATA | June 30, | Mar 31, | Dec 31, | June 30, | June 30, | |||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 8,440 | $ | 5,746 | $ | 5,674 | $ | 4,852 | $ | 3,979 | ||||||||||||||||||||||||
| Loans past due 90 days and over | 940 | 1,096 | 285 | 1,436 | 760 | |||||||||||||||||||||||||||||
| Total nonperforming loans | 9,380 | 6,842 | 5,959 | 6,288 | 4,739 | |||||||||||||||||||||||||||||
| Other real estate | 7,890 | 7,357 | 7,158 | 7,855 | 8,072 | |||||||||||||||||||||||||||||
| Nonaccrual securities | 616 | 616 | 408 | 408 | 408 | |||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 17,886 | $ | 14,815 | $ | 13,525 | $ | 14,551 | $ | 13,219 | ||||||||||||||||||||||||
| Nonperforming assets to total assets | 0.72 | % | 0.64 | % | 0.75 | % | 0.81 | % | 0.74 | % | ||||||||||||||||||||||||
| Nonperforming assets to total loans + ORE | 1.04 | % | 0.97 | % | 1.10 | % | 1.21 | % | 1.11 | % | ||||||||||||||||||||||||
| ALLL to nonperforming loans | 101.41 | % | 128.13 | % | 139.08 | % | 130.01 | % | 170.29 | % | ||||||||||||||||||||||||
| ALLL to total loans | 0.56 | % | 0.57 | % | 0.68 | % | 0.68 | % | 0.68 | % | ||||||||||||||||||||||||
| Quarter-to-date net charge-offs (recs) | $ | 12 | $ | (94 | ) | $ | 9 | $ | (15 | ) | $ | (97 | ) | |||||||||||||||||||||
| Annualized QTD net chg/offs (recs) to loans | 0.003 | % | (0.02 | %) | 0.003 | % | (0.005 | %) | (0.003 | %) | ||||||||||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Financial Information (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Yield | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Analysis | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 328,898 | $ | 2,423 | 2.95 | % | $ | 274,595 | $ | 1,986 | 2.89 | % | $ | 271,459 | $ | 1,760 | 2.59 | % | $ | 280,441 | $ | 1,601 | 2.28 | % | $ | 282,235 | $ | 1,605 | 2.27 | % | |||||||||||||||||||||||||||||||
Tax-exempt securities | 117,875 | 1,015 | 3.44 | % | 106,161 | 904 | 3.41 | % | 93,645 | 888 | 3.79 | % | 93,716 | 876 | 3.74 | % | 95,272 | 897 | 3.77 | % | |||||||||||||||||||||||||||||||||||||||||
Total investment securities | 446,773 | 3,438 | 3.08 | % | 380,756 | 2,890 | 3.04 | % | 365,104 | 2,648 | 2.90 | % | 374,157 | 2,477 | 2.65 | % | 377,507 | 2,502 | 2.65 | % | |||||||||||||||||||||||||||||||||||||||||
| Fed funds sold | 17,242 | 61 | 1.42 | % | 11,368 | 35 | 1.23 | % | 54,640 | 46 | 0.34 | % | 36,591 | 113 | 1.24 | % | 39,048 | 95 | 0.97 | % | |||||||||||||||||||||||||||||||||||||||||
Int bearing deposits in other banks | 68,079 | 81 | 0.48 | % | 94,321 | 77 | 0.33 | % | 4,544 | 6 | 0.53 | % | 3,463 | 3 | 0.35 | % | 5,214 | 2 | 0.15 | % | |||||||||||||||||||||||||||||||||||||||||
| Loans | 1,696,737 | 21,714 | 5.12 | % | 1,325,272 | 15,985 | 4.82 | % | 1,215,962 | 14,745 | 4.85 | % | 1,185,493 | 14,412 | 4.86 | % | 1,155,699 | 14,170 | 4.90 | % | |||||||||||||||||||||||||||||||||||||||||
Total Interest earning assets | 2,228,831 | 25,294 | 4.54 | % | 1,811,717 | 18,987 | 4.19 | % | 1,640,250 | 17,445 | 4.25 | % | 1,599,704 | 17,005 | 4.25 | % | 1,577,468 | 16,769 | 4.25 | % | |||||||||||||||||||||||||||||||||||||||||
| Other assets | 214,345 | 174,433 | 170,002 | 172,698 | 173,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 2,443,176 | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | $ | 1,676,110 | $ | 2,547 | 0.61 | % | $ | 1,330,925 | $ | 1,840 | 0.55 | % | $ | 1,173,386 | $ | 1,425 | 0.49 | % | $ | 1,204,614 | $ | 1,375 | 0.46 | % | $ | 1,211,959 | $ | 1,303 | 0.43 | % | |||||||||||||||||||||||||||||||
| Repo | - | - | 0.00 | % | - | - | 0.00 | % | - | - | 0.00 | % | 4,891 | 38 | 3.11 | % | 5,000 | 48 | 3.84 | % | |||||||||||||||||||||||||||||||||||||||||
| Fed funds purchased | 1,382 | 9 | 2.60 | % | 202 | 1 | 1.98 | % | 2,543 | 11 | 1.73 | % | 3,816 | 19 | 1.99 | % | 1,906 | 8 | 1.68 | % | |||||||||||||||||||||||||||||||||||||||||
| FHLB & FTN | 22,959 | 138 | 2.40 | % | 71,944 | 459 | 2.55 | % | 103,421 | 381 | 1.47 | % | 68,041 | 300 | 1.76 | % | 40,765 | 203 | 1.99 | % | |||||||||||||||||||||||||||||||||||||||||
Subordinated debentures | 54,036 | 774 | 5.73 | % | 10,310 | 78 | 3.03 | % | 10,310 | 105 | 4.07 | % | 10,310 | 41 | 1.59 | % | 10,310 | 67 | 2.60 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 1,754,487 | 3,468 | 0.79 | % | 1,413,381 | 2,378 | 0.67 | % | 1,289,660 | 1,922 | 0.60 | % | 1,291,672 | 1,773 | 0.55 | % | 1,269,940 | 1,629 | 0.51 | % | |||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 414,154 | 342,514 | 315,012 | 316,275 | 325,485 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 274,535 | 230,255 | 205,580 | 164,455 | 155,667 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,443,176 | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (FTE)* | $ | 21,826 | 3.75 | % | $ | 16,609 | 3.52 | % | $ | 15,523 | 3.66 | % | $ | 15,232 | 3.70 | % | $ | 15,140 | 3.74 | % | |||||||||||||||||||||||||||||||||||||||||
| Net interest margin (FTE)* | 3.92 | % | 3.67 | % | 3.79 | % | 3.81 | % | 3.84 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Core net interest margin* | 3.82 | % | 3.65 | % | 3.76 | % | 3.78 | % | 3.81 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures (unaudited) | ||||||||||||||||||||||||||
| (in thousands except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
Per Common Share Data | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
| Book value per common share | $ | 21.88 | $ | 20.95 | $ | 19.92 | $ | 18.24 | $ | 17.80 | ||||||||||||||||
| Effect of intangible assets per share | 5.06 | 4.56 | 2.21 | 2.76 | 2.80 | |||||||||||||||||||||
| Tangible book value per common share | $ | 16.82 | $ | 16.39 | $ | 17.71 | $ | 15.48 | $ | 15.00 | ||||||||||||||||
| Diluted earnings per share | $ | 0.40 | $ | 0.34 | $ | 0.23 | $ | 0.51 | $ | 0.26 | ||||||||||||||||
| Effect of acquisition charges | 0.29 | 0.15 | 0.04 | - | 0.29 | |||||||||||||||||||||
| Taxes on acquisition charges | (0.07 | ) | (0.03 | ) | (0.01 | ) | - | (0.11 | ) | |||||||||||||||||
| Charge related to reduction in deferred tax asset | - | - | 0.19 | - | - | |||||||||||||||||||||
| Diluted earnings per share, operating | $ | 0.62 | $ | 0.46 | $ | 0.45 | $ | 0.51 | $ | 0.44 | ||||||||||||||||
| Year to Date | |||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.74 | $ | 0.38 | ||||||||||||||||||||||
| Effect of acquisition charges | 0.45 | 0.68 | ||||||||||||||||||||||||
| Tax | (0.10 | ) | (0.26 | ) | ||||||||||||||||||||||
| Diluted earnings per share, operating | $ | 1.09 | $ | 0.80 | ||||||||||||||||||||||
| Year to Date | |||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||||
| Net income available to common shareholders | $ | 9,202 | $ | 3,488 | ||||||||||||||||||||||
| Effect of acquisition charges | 5,596 | 6,280 | ||||||||||||||||||||||||
| Tax | (1,303 | ) | (2,372 | ) | ||||||||||||||||||||||
| Net earnings available to common shareholders, operating | $ | 13,495 | $ | 7,396 | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Average Balance Sheet Data | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
Total average assets | A | $ | 2,443,176 | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | |||||||||||||||
Total average earning assets | B | $ | 2,228,831 | $ | 1,811,717 | $ | 1,640,250 | $ | 1,599,704 | $ | 1,577,468 | |||||||||||||||
Common Equity | C | $ | 274,535 | $ | 230,255 | $ | 205,580 | $ | 164,455 | $ | 155,667 | |||||||||||||||
| Less intangible assets | 57,443 | 33,929 | 25,258 | 25,442 | 24,878 | |||||||||||||||||||||
Tangible common equity | D | $ | 217,092 | $ | 196,326 | $ | 180,322 | $ | 139,013 | $ | 130,789 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Net Interest Income Fully Tax Equivalent | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
Net interest income | E | $ | 21,569 | $ | 16,380 | $ | 15,221 | $ | 14,935 | $ | 14,835 | |||||||||||||||
| Tax-exempt investment income | (758 | ) | (675 | ) | (586 | ) | (579 | ) | (592 | ) | ||||||||||||||||
| Taxable investment income | 1,015 | 904 | 888 | 876 | 897 | |||||||||||||||||||||
Net Interest Income Fully Tax Equivalent | F | $ | 21,826 | $ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | |||||||||||||||
Annualized Net Interest Margin | E/B | 3.87 | % | 3.62 | % | 3.71 | % | 3.73 | % | 3.76 | % | |||||||||||||||
Annualized Net Interest Margin, Fully Tax Equivalent | F/B | 3.92 | % | 3.67 | % | 3.79 | % | 3.81 | % | 3.84 | % | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Core Net Interest Margin | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
| Net interest income (FTE) | $ | 21,826 | $ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | ||||||||||||||||
| Less purchase accounting adjustments | 510 | 59 | 87 | 116 | 117 | |||||||||||||||||||||
Net interest income, net of purchase accounting adj | G | $ | 21,316 | $ | 16,550 | $ | 15,436 | $ | 15,116 | $ | 15,023 | |||||||||||||||
| Total average earning assets | $ | 2,228,831 | $ | 1,811,717 | $ | 1,640,250 | $ | 1,599,704 | $ | 1,577,468 | ||||||||||||||||
| Add average balance of loan valuation discount | 6,046 | 1,578 | 1,558 | 1,640 | 1,721 | |||||||||||||||||||||
Avg earning assets, excluding loan valuation discount | H | $ | 2,234,877 | $ | 1,813,295 | $ | 1,641,808 | $ | 1,601,344 | $ | 1,579,189 | |||||||||||||||
Core net interest margin | G/H | 3.82 | % | 3.65 | % | 3.76 | % | 3.78 | % | 3.81 | % | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Efficiency Ratio | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
| Operating Expense | ||||||||||||||||||||||||||
| Total non-interest expense | $ | 19,680 | $ | 14,598 | $ | 12,390 | $ | 11,888 | $ | 15,070 | ||||||||||||||||
| Pre-tax non-operating expenses | (3,838 | ) | (1,758 | ) | (384 | ) | (47 | ) | (2,682 | ) | ||||||||||||||||
Adjusted Operating Expense | I | $ | 15,842 | $ | 12,840 | $ | 12,006 | $ | 11,841 | $ | 12,388 | |||||||||||||||
| Operating Revenue | ||||||||||||||||||||||||||
| Net interest income, FTE | $ | 21,826 | $ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | ||||||||||||||||
| Total non-interest income | 5,632 | 3,459 | 3,556 | 3,658 | 3,757 | |||||||||||||||||||||
| Pre-tax non-operating items | - | - | - | - | - | |||||||||||||||||||||
Adjusted Operating Revenue | J | $ | 27,458 | $ | 20,068 | $ | 19,079 | $ | 18,890 | $ | 18,897 | |||||||||||||||
Efficiency Ratio, operating | I/J | 57.70 | % | 63.98 | % | 62.93 | % | 62.68 | % | 65.56 | % | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Return Ratios | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||||||||||
Net income available to common shareholders | K | $ | 5,245 | $ | 3,957 | $ | 2,414 | $ | 4,714 | $ | 2,366 | |||||||||||||||
| Acquisition charges | 3,838 | 1,758 | 384 | 47 | 2,682 | |||||||||||||||||||||
| Tax on acquisition charges | (948 | ) | (355 | ) | (148 | ) | (18 | ) | (1,035 | ) | ||||||||||||||||
| Charge related to reduction in deferred tax asset | - | - | 2,081 | - | - | |||||||||||||||||||||
Net earnings available to common shareholders, oper | L | $ | 8,135 | $ | 5,360 | $ | 4,731 | $ | 4,743 | $ | 4,013 | |||||||||||||||
Annualized return on avg assets | K/A | 0.86 | % | 0.80 | % | 0.53 | % | 1.06 | % | 0.54 | % | |||||||||||||||
Annualized return on avg assets, oper | L/A | 1.33 | % | 1.08 | % | 1.05 | % | 1.07 | % | 0.92 | % | |||||||||||||||
Annualized return on avg common equity, oper | L/C | 11.85 | % | 9.31 | % | 9.21 | % | 11.54 | % | 10.31 | % | |||||||||||||||
Annualized return on avg tangible common equity, oper | L/D | 14.99 | % | 10.92 | % | 10.49 | % | 13.65 | % | 12.27 | % | |||||||||||||||
| Mortgage Department | ||||||||||||||||||||||||||
| Net Interest Income after provision for loan losses | $ | 214 | $ | 189 | $ | 272 | $ | 249 | $ | 233 | ||||||||||||||||
| Loan fee income | 1,213 | 800 | 1,102 | 1,276 | 1,208 | |||||||||||||||||||||
| Salaries and employee benefits | 903 | 849 | 806 | 882 | 946 | |||||||||||||||||||||
| Other non-interest expense | 127 | 97 | 101 | 102 | 99 | |||||||||||||||||||||
| Earnings before income taxes | $ | 397 | $ | 43 | $ | 467 | $ | 541 | $ | 396 | ||||||||||||||||
CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole, 601-268-8998
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer