Exhibit 99.1
The First Bancshares, Inc. Reports a 9.5% Increase in Net Income Available to Common Shareholders and a 72.8% Increase in Operating Net Earnings for the Third Quarter Ended September 30, 2018; Declares Quarterly Dividend of $0.05
HATTIESBURG, Miss.--(BUSINESS WIRE)--October 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 third quarter of 2018, an increase of $0.4 million or 9.5%, compared to $4.7 million for the third quarter of 2017. Operating net earnings increased 72.8% ($3.5 million) for the third quarter comparison, totaling $8.2 million for the third quarter of 2018 as compared to $4.7 million for the third quarter of 2017. Operating net earnings excludes merger-related costs of $3.0 million for the third quarter of 2018, net of tax.
For the third quarter of 2018, fully diluted earnings per share were $0.39, compared to $0.51 for the third quarter of 2017. Excluding the impact of the merger-related costs described above, fully diluted operating earnings per share for the third quarter of 2018 were $0.62 as compared to $0.51 for the third 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, 1,134,010 shares issued in connection with the acquisition of Southwest during the first quarter of 2018 and 726,461 shares issued in connection with the acquisition of Sunshine during the second quarter of 2018.
Highlights for the Quarter:
- On July 23, 2018, the Company announced the signing of an Agreement and Plan of Merger with FMB Banking Corporation (“FMB”), parent company of Farmers & Merchants Bank, headquartered in Monticello, FL. Upon completion, the acquisition will add 6 locations servicing Jefferson and Leon counties in Florida and Thomas County, Georgia and is expected to close during the fourth quarter of 2018 subject to FMB shareholder approval and customary closing conditions.
- During the quarter, systems integration was completed for Sunshine Community Bank, which closed on April 1, 2018.
- Loans increased $38.2 million or 2.2% during the third quarter of 2018.
- During the quarter, the Company received a $0.2 million Bank Enterprise Award from the Community Development Financial Institutions Fund of the U. S. Department of the Treasury as a result of our designation as a Community Development Financial Institution.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are pleased with our strong performance during the third quarter characterized by continued increases in operating net earnings, on an annual and linked quarter basis. Our improvement in operating net earnings is being driven by our recent acquisitions as well as solid organic growth. During the quarter, we were excited to announce the pending merger with FMB Banking Corporation headquartered in Monticello, FL. FMB is a well-run community bank and we believe our partnership will enhance the financial position of the overall company as well as provide additional management resources to increase our presence throughout Florida and Georgia.”
Balance Sheet
Consolidated assets increased $30.1 million to $2.512 billion at September 30, 2018 from $2.482 billion at June 30, 2018.
Total loans were $1.748 billion at September 30, 2018, as compared to $1.710 billion at June 30, 2018, and $1.198 billion at September 30, 2017, representing increases of $38.2 million or 2.2%, and $550.3 million or 45.9%, respectively. The acquisitions of First Community Bank and Sunshine Community Bank accounted for $437.1 million, net of fair value marks, of the total increase in loans as compared to the third quarter of 2017.
Total deposits were $2.046 billion at September 30, 2018, as compared to $2.097 billion at June 30, 2018, and $1.508 billion at September 30, 2017, representing a decrease of $50.8 million or 2.4%, and representing an increase of $538.5 million or 35.7%, respectively. The acquisitions of First Community Bank and Sunshine Community Bank accounted for $463.9 million of the total increase in deposits as compared to the third quarter of 2017. The decrease in deposits during the sequential quarter was largely due to a decrease in NOW accounts of $25.8 million, which is attributable to the seasonality of the public fund deposits.
Asset Quality
Nonperforming assets totaled $23.4 million at September 30, 2018, an increase of $5.6 million compared to $17.9 million at June 30, 2018 and an increase of $8.9 million compared to September 30, 2017. The majority of the increase in both quarterly comparisons was related to acquired loans. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.56% at September 30, 2018 and June 30, 2018. The ratio of annualized net charge-offs (recoveries) to total loans was 0.03% for the quarter ended September 30, 2018 compared to 0.003% for the quarter ended June 30, 2018.
Third Quarter 2018 vs. Third Quarter 2017 Earnings Comparison
Net income available to common shareholders for the third quarter of 2018 totaled $5.2 million compared to $4.7 million for the third quarter of 2017, an increase of $0.4 million or 9.5%.
Operating net earnings for the third quarter of 2018 totaled $8.2 million compared to $4.7 million for the third quarter of 2017, an increase of $3.5 million or 72.8%. The calculation of operating net earnings excludes the merger-related costs discussed above.
Net interest income for the third quarter of 2018 was $21.7 million, an increase of $6.7 million when compared to the third quarter of 2017. The increase was due to interest income earned on a higher volume of loans as well as increased interest rates.
Non-interest income increased $1.4 million for the third quarter of 2018 as compared to the third quarter of 2017 due to increased service charges and interchange fee income of $0.9 million on an increased deposit base due to the acquisitions. The Company also received a Bank Enterprise Award of $0.2 million from the U.S. Department of the Treasury during the third quarter of 2018 as a result of our designation as a Community Development Financial Institution.
Third quarter 2018 non-interest expense was $19.8 million, an increase of $7.9 million, or 66.4% as compared to the third quarter of 2017. Excluding acquisition charges of $4.1 million for third quarter of 2018, non-interest expense increased $3.8 million in the third quarter of 2018 as compared to third quarter of 2017, of which $2.7 million is attributable to First Community Bank and Sunshine Community Bank.
Net interest income was $21.7 million for the third quarter of 2018 as compared to $14.9 million for the third quarter of 2017. Fully tax equivalent (“FTE”) net interest income totaled $21.9 million and $15.2 million for the third 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 interest rates. Purchase accounting adjustments accounted for $0.4 million of the difference in net interest income for the third quarter comparisons. Third quarter 2018 FTE net interest margin of 3.97% includes 11 basis points related to purchase accounting adjustments compared to 3.81% for the same quarter in 2017, which included 3 basis points related to purchase accounting adjustments.
Investment securities totaled $444.0 million, or 17.7% of total assets at September 30, 2018, versus $368.6 million, or 20.6% of total assets at September 30, 2017. The average balance of investment securities increased $73.7 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 37 basis points to 3.02% from 2.65% in prior year quarterly comparison. The investment portfolio had a net unrealized loss of $8.4 million at September 30, 2018 as compared to a net unrealized gain of $2.7 million at September 30, 2017.
The FTE average yield on all earning assets increased 43 basis points in prior year quarterly comparison, from 4.25% for the third quarter of 2017 to 4.68% for the third quarter of 2018. Average interest expense increased 37 basis points from 0.55% for the third quarter of 2017 to 0.92% for the third quarter of 2018 due primarily to increased deposit accounts as well as the issuance of subordinated debt in the second quarter of 2018 and rising interest rates. Cost of all deposits averaged 53 basis points for the third quarter of 2018 compared to 36 basis points for the third quarter of 2017. Public funds increased $95.7 million when comparing September 30, 2018 to September 30, 2017.
Third Quarter 2018 vs Second Quarter 2018 Earnings Comparison
Net income available to common shareholders for the third quarter of 2018 remained consistent at $5.2 million compared to the second quarter of 2018.
Operating net earnings for the third quarter of 2018 compared to the second quarter of 2018 increased $0.1 million or 0.7% from $8.1 million for the second quarter of 2018 to $8.2 million for the third quarter of 2018. Operating net earnings exclude the merger-related costs discussed above.
Net interest income for the third quarter of 2018 was $21.7 million as compared to $21.6 million for the second quarter of 2018, an increase of $0.1 million. FTE net interest income increased $0.1 million to $21.9 million from $21.8 million in sequential-quarter comparison. The increase was due to increased loan volume as well as increased interest rates on both sides of the balance sheet. Interest income from purchase accounting adjustments were stable in sequential quarter comparison. Third quarter 2018 FTE net interest margin of 3.97% includes 11 basis points related to purchase accounting adjustments compared to 3.92% for the second quarter in 2018, which included 10 basis points related to purchase accounting adjustments.
Investment securities totaled $444.0 million, or 17.7% of total assets at September 30, 2018, versus $453.3 million, or 18.3% of total assets at June 30, 2018. The average balance of investment securities increased $1.1 million in sequential-quarter comparison. The average tax equivalent yield on investment securities decreased six basis points to 3.02% from 3.08% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $8.4 million at September 30, 2018 as compared to a net unrealized loss of $6.0 million at June 30, 2018.
The FTE average yield on all earning assets increased in sequential-quarter comparison from 4.54% to 4.68%. Average interest expense increased 13 basis points from 0.79% for the second quarter of 2018 to 0.92% for the third quarter of 2018 due primarily to increased deposit rates as well as the issuance of subordinated debt during the second quarter. Cost of all deposits averaged 53 basis points for the third quarter of 2018 compared to 49 basis points for the second quarter of 2018. Public funds decreased $30.0 million when comparing September 30, 2018 to June 30, 2018.
Non-interest income decreased $0.6 million in sequential-quarter comparison resulting from decreased interchange fee income of $0.3 million. Non-interest income for the second quarter of 2018 included the Financial Assistance Award received from the U. S. Department of the Treasury for $0.9 million, and for the third quarter included the Bank Enterprise Award received from the U. S. Department of the Treasury for $0.2 million, which resulted in a net decrease in non-interest income of $0.7 million for the quarterly comparison.
Non-interest expense for the third quarter of 2018 was $19.8 million compared to $19.7 million for the second quarter of 2018. Excluding acquisition charges, non-interest expense decreased $0.1 million in sequential-quarter comparison, which reflects increases and decreases spread throughout all categories.
Year to Date Earnings Comparison
In year-over-year comparison, net income available to common shareholders increased $6.2 million, or 75.1%, from $8.2 million at September 30, 2017 to $14.4 million at September 30, 2018. Operating net earnings increased $9.6 million or 78.7% from $12.1 million at September 30, 2017 to $21.7 million at September 30, 2018. Operating net earnings excludes merger-related costs of $7.3 million, net of tax, for the year to date period ending September 30, 2018 and $3.9 million, net of tax, for the year to date period ending September 30, 2017.
Net interest income increased $15.7 million, or 35.7% in year-over-year comparison, primarily due to interest income earned on a higher volume of loans as well as increased rates.
Non-interest income was $14.2 million at September 30, 2018, an increase of $3.4 million, or 31.1% 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 receipt of the Financial Assistance Award received and the Bank Enterprise Award discussed above.
Non-interest expense was $54.1 million at September 30, 2018, an increase of $11.0 million, or 25.6% in year-over-year comparison primarily resulting from increases in salaries and benefits of $4.0 million related to the acquisitions of First Community Bank and Sunshine Bank and increased acquisition charges of $3.3 million. Increases in occupancy, FDIC premiums, amortization of core deposit intangibles and other non-interest expense for the year-to-date period of 2018 were also 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 November 23, 2018 to shareholders of record as of the close of business on November 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 proposed acquisition of FMB and the acquisitions of Southwest Banc Shares, Inc. (“Southwest”) and Sunshine Financial, Inc., (“Sunshine”), including the risk that the proposed acquisition of FMB does not close when expected or at all because of required shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the terms of the proposed transactions with FMB may need to be modified to satisfy such approvals or conditions, and that anticipated benefits from the transactions with FMB, Sunshine and Southwest 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.
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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 |
| | | 9/30/18 | | 6/30/18 | | 3/31/18 | | 12/31/17 | | 9/30/17 |
| Total Interest Income | | $ | 25,628 | | | $ | 25,037 | | | $ | 18,758 | | | $ | 17,143 | | | $ | 16,708 | |
| Total Interest Expense | | | 3,959 | | | | 3,468 | | | | 2,378 | | | | 1,922 | | | | 1,773 | |
| Net Interest Income | | | 21,669 | | | | 21,569 | | | | 16,380 | | | | 15,221 | | | | 14,935 | |
| FTE net interest income* | | | 21,925 | | | | 21,826 | | | | 16,609 | | | | 15,523 | | | | 15,232 | |
| Provision for loan losses | | | 412 | | | | 857 | | | | 277 | | | | 122 | | | | 90 | |
| Non-interest income | | | 5,074 | | | | 5,632 | | | | 3,459 | | | | 3,556 | | | | 3,658 | |
| Non-interest expense | | | 19,786 | | | | 19,680 | | | | 14,597 | | | | 12,390 | | | | 11,888 | |
| Earnings before income taxes | | | 6,545 | | | | 6,664 | | | | 4,965 | | | | 6,265 | | | | 6,615 | |
| Income tax expense | | | 1,383 | | | | 1,419 | | | | 1,008 | | | | 3,851 | | | | 1,901 | |
| Net income available to common shareholders | | $ | 5,162 | | | $ | 5,245 | | | $ | 3,957 | | | $ | 2,414 | | | $ | 4,714 | |
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| PER COMMON SHARE DATA | | | | | | | | | | |
| Basic earnings per share | | $ | 0.39 | | | $ | 0.40 | | | $ | 0.34 | | | $ | 0.23 | | | $ | 0.52 | |
| Diluted earnings per share | | | 0.39 | | | | 0.40 | | | | 0.34 | | | | 0.23 | | | | 0.51 | |
| Diluted earnings per share, operating* | | | 0.62 | | | | 0.62 | | | | 0.46 | | | | 0.45 | | | | 0.51 | |
| Quarterly dividends per share | | | .05 | | | | .05 | | | | .05 | | | | .0375 | | | | .0375 | |
| Book value per common share at end of period | | | 22.09 | | | | 21.88 | | | | 20.95 | | | | 19.92 | | | | 18.24 | |
| Tangible common book value at period end* | | | 17.10 | | | | 16.82 | | | | 16.39 | | | | 17.71 | | | | 15.48 | |
| Market price at end of period | | | 39.05 | | | | 36.80 | | | | 32.25 | | | | 34.20 | | | | 30.15 | |
| Shares outstanding at period end | | | 13,074,516 | | | | 13,065,953 | | | | 12,339,492 | | | | 11,165,907 | | | | 9,153,407 | |
| Weighted average shares outstanding: | | | | | | | | | | |
| Basic | | | 13,072,455 | | | | 13,065,953 | | | | 11,556,968 | | | | 10,521,236 | | | | 9,152,674 | |
| Diluted | | | 13,192,207 | | | | 13,167,969 | | | | 11,652,959 | | | | 10,598,036 | | | | 9,224,481 | |
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| AVERAGE BALANCE SHEET DATA | | | | | | | | | | |
| Total assets | | $ | 2,470,607 | | | $ | 2,443,176 | | | $ | 1,986,150 | | | $ | 1,810,252 | | | $ | 1,772,402 | |
| Loans and leases | | | 1,720,884 | | | | 1,696,737 | | | | 1,325,272 | | | | 1,215,962 | | | | 1,185,493 | |
| Total deposits | | | 2,069,910 | | | | 2,115,661 | | | | 1,683,999 | | | | 1,475,628 | | | | 1,512,616 | |
| Total common equity | | | 284,839 | | | | 274,535 | | | | 230,255 | | | | 205,580 | | | | 164,455 | |
| Total tangible common equity* | | | 219,077 | | | | 217,092 | | | | 196,326 | | | | 180,322 | | | | 139,013 | |
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| SELECTED RATIOS | | | | | | | | | | |
| Annualized return on avg assets | | | 0.84 | % | | | 0.86 | % | | | 0.80 | % | | | 0.53 | % | | | 1.06 | % |
| Annualized return on avg assets, operating* | | | 1.33 | % | | | 1.33 | % | | | 1.08 | % | | | 1.05 | % | | | 1.07 | % |
| Annualized return on avg common equity, operating* | | | 11.51 | % | | | 11.85 | % | | | 9.31 | % | | | 9.21 | % | | | 11.54 | % |
| Annualized return on avg tangible common equity, oper* | | | 14.96 | % | | | 14.99 | % | | | 10.92 | % | | | 10.49 | % | | | 13.65 | % |
| Average loans to average deposits | | | 83.14 | % | | | 80.20 | % | | | 78.70 | % | | | 82.40 | % | | | 78.37 | % |
| FTE Net Interest Margin* | | | 3.97 | % | | | 3.92 | % | | | 3.67 | % | | | 3.79 | % | | | 3.81 | % |
| Efficiency Ratio | | | 73.28 | % | | | 71.67 | % | | | 72.74 | % | | | 64.94 | % | | | 62.93 | % |
| Efficiency Ratio, operating* | | | 58.25 | % | | | 57.70 | % | | | 63.98 | % | | | 62.93 | % | | | 62.68 | % |
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| CREDIT QUALITY | | | | | | | | | | |
| Allowance for loan losses (ALLL) as a % of total loans | | | 0.56 | % | | | 0.56 | % | | | 0.57 | % | | | 0.68 | % | | | 0.68 | % |
| Nonperforming assets to tangible equity + ALLL | | | 10.05 | % | | | 7.88 | % | | | 6.99 | % | | | 6.56 | % | | | 9.71 | % |
| Nonperforming assets to total loans + ORE | | | 1.33 | % | | | 1.04 | % | | | 0.97 | % | | | 1.10 | % | | | 1.21 | % |
| Annualized QTD net charge-offs (recoveries) to total loans | | | 0.03 | % | | | 0.003 | % | | | (0.02 | %) | | | 0.003 | % | | | (0.005 | %) |
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*See reconciliation of Non-GAAP financial measures |
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| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands) |
| | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| BALANCE SHEET | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
| Assets | | | | | | | | | | |
| Cash and cash equivalents | | $ | 122,371 | | | $ | 120,425 | | | $ | 162,521 | | | $ | 91,922 | | | $ | 93,317 | |
| Securities available-for-sale | | | 424,940 | | | | 437,011 | | | | 425,529 | | | | 356,893 | | | | 353,035 | |
| Securities held-to-maturity | | | 6,000 | | | | 6,000 | | | | 6,000 | | | | 6,000 | | | | 6,000 | |
| Other investments | | | 13,104 | | | | 10,320 | | | | 10,399 | | | | 9,969 | | | | 9,556 | |
| Total investment securities | | | 444,044 | | | | 453,331 | | | | 441,928 | | | | 372,862 | | | | 368,591 | |
| Loans held for sale | | | 4,269 | | | | 5,914 | | | | 2,538 | | | | 4,790 | | | | 4,588 | |
| Total loans | | | 1,748,483 | | | | 1,710,271 | | | | 1,516,579 | | | | 1,225,306 | | | | 1,198,193 | |
| Allowance for loan losses | | | (9,765 | ) | | | (9,512 | ) | | | (8,659 | ) | | | (8,288 | ) | | | (8,175 | ) |
| Loans, net | | | 1,738,718 | | | | 1,700,759 | | | | 1,507,920 | | | | 1,217,018 | | | | 1,190,018 | |
| Premises and equipment | | | 62,342 | | | | 62,289 | | | | 57,430 | | | | 46,426 | | | | 46,203 | |
| Other Real Estate | | | 8,453 | | | | 7,890 | | | | 7,357 | | | | 7,158 | | | | 7,855 | |
| Goodwill and other intangibles | | | 65,238 | | | | 66,105 | | | | 56,343 | | | | 24,670 | | | | 25,325 | |
| Other assets | | | 66,355 | | | | 64,976 | | | | 63,376 | | | | 48,392 | | | | 52,079 | |
| Total assets | | $ | 2,511,790 | | | $ | 2,481,689 | | | $ | 2,299,413 | | | $ | 1,813,238 | | | $ | 1,787,976 | |
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| Liabilities and Shareholders’ Equity | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 430,430 | | | $ | 459,402 | | | $ | 414,142 | | | $ | 301,989 | | | $ | 308,050 | |
| Interest-bearing deposits | | | 1,616,016 | | | | 1,637,833 | | | | 1,577,502 | | | | 1,168,576 | | | | 1,199,941 | |
| Total deposits | | | 2,046,446 | | | | 2,097,235 | | | | 1,991,644 | | | | 1,470,565 | | | | 1,507,991 | |
| Borrowings | | | 85,508 | | | | 10,516 | | | | 29,034 | | | | 104,072 | | | | 94,321 | |
| Subordinated debentures | | | 75,117 | | | | 75,192 | | | | 10,310 | | | | 10,310 | | | | 10,310 | |
| Other liabilities | | | 15,921 | | | | 12,920 | | | | 9,886 | | | | 5,823 | | | | 8,374 | |
| Total liabilities | | | 2,222,992 | | | | 2,195,863 | | | | 2,040,874 | | | | 1,590,770 | | | | 1,620,996 | |
| Total shareholders’ equity | | | 288,798 | | | | 285,826 | | | | 258,539 | | | | 222,468 | | | | 166,980 | |
| Total liabilities and shareholders’ equity | | $ | 2,511,790 | | | $ | 2,481,689 | | | $ | 2,299,413 | | | $ | 1,813,238 | | | $ | 1,787,976 | |
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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 |
| | 9/30/18 | | 6/30/18 | | 3/31/18 | | 12/31/17 | | 9/30/17 |
| Interest Income: | | | | | | | | | | |
| Loans, including fees | | $ | 21,824 | | $ | 21,155 | | | $ | 15,926 | | $ | 14,687 | | | $ | 14,357 | |
| Investment securities | | | 3,126 | | | 3,181 | | | | 2,661 | | | 2,346 | | | | 2,180 | |
| Accretion of purchase accounting adjustments | | | 583 | | | 559 | | | | 59 | | | 57 | | | | 55 | |
| Other interest income | | | 95 | | | 142 | | | | 112 | | | 53 | | | | 116 | |
| Total interest income | | | 25,628 | | | 25,037 | | | | 18,758 | | | 17,143 | | | | 16,708 | |
| Interest Expense: | | | | | | | | | | |
| Deposits | | | 2,740 | | | 2,498 | | | | 1,840 | | | 1,455 | | | | 1,436 | |
| Borrowings | | | 52 | | | 147 | | | | 460 | | | 392 | | | | 357 | |
| Subordinated debentures | | | 1,125 | | | 774 | | | | 78 | | | 105 | | | | 41 | |
| Accretion of purchase accounting adjustments | | | 42 | | | 49 | | | | - | | | (30 | ) | | | (61 | ) |
| Total interest expense | | | 3,959 | | | 3,468 | | | | 2,378 | | | 1,922 | | | | 1,773 | |
| Net interest income | | | 21,669 | | | 21,569 | | | | 16,380 | | | 15,221 | | | | 14,935 | |
| Provision for loan losses | | | 412 | | | 857 | | | | 277 | | | 122 | | | | 90 | |
| Net interest income after provision for loan losses | | | 21,257 | | | 20,712 | | | | 16,103 | | | 15,099 | | | | 14,845 | |
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| Non-interest Income: | | | | | | | | | | |
| Service charges on deposit accounts | | | 1,538 | | | 1,341 | | | | 1,027 | | | 908 | | | | 902 | |
| Mortgage Income | | | 1,066 | | | 1,213 | | | | 800 | | | 1,102 | | | | 1,276 | |
| Interchange Fee Income | | | 1,180 | | | 1,500 | | | | 1,040 | | | 961 | | | | 935 | |
| Gain (loss) on securities, net | | | - | | | (5 | ) | | | - | | | 3 | | | | (10 | ) |
| Gain on sale of premises and equipment | | | - | | | - | | | | - | | | - | | | | - | |
| Financial Assistance Award/Bank Enterprise Award | | | 233 | | | 917 | | | | - | | | - | | | | - | |
| Other charges and fees | | | 1,057 | | | 666 | | | | 592 | | | 582 | | | | 555 | |
| Total non-interest income | | | 5,074 | | | 5,632 | | | | 3,459 | | | 3,556 | | | | 3,658 | |
| | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | |
| Salaries and employee benefits | | | 9,266 | | | 9,502 | | | | 7,789 | | | 7,478 | | | | 7,327 | |
| Occupancy expense | | | 2,163 | | | 2,034 | | | | 1,647 | | | 1,427 | | | | 1,390 | |
| FDIC premiums | | | 278 | | | 368 | | | | 367 | | | 365 | | | | 355 | |
| Marketing | | | 60 | | | 70 | | | | 80 | | | 118 | | | | 50 | |
| Amortization of core deposit intangibles | | | 349 | | | 356 | | | | 201 | | | 173 | | | | 160 | |
| Other professional services | | | 847 | | | 438 | | | | 189 | | | 194 | | | | 367 | |
| Acquisition charges | | | 4,059 | | | 3,838 | | | | 1,758 | | | 384 | | | | - | |
| Other non-interest expense | | | 2,764 | | | 3,074 | | | | 2,566 | | | 2,251 | | | | 2,239 | |
| Total Non-interest expense | | | 19,786 | | | 19,680 | | | | 14,597 | | | 12,390 | | | | 11,888 | |
| Earnings before income taxes | | | 6,545 | | | 6,664 | | | | 4,965 | | | 6,265 | | | | 6,615 | |
| Income tax expense | | | 1,383 | | | 1,419 | | | | 1,008 | | | 3,851 | | | | 1,901 | |
| Net income available to common shareholders | | $ | 5,162 | | $ | 5,245 | | | $ | 3,957 | | $ | 2,414 | | | $ | 4,714 | |
| | | | | | | | | | | |
| Diluted earnings per common share | | $ | 0.39 | | $ | 0.40 | | | $ | 0.34 | | $ | 0.23 | | | $ | 0.51 | |
| Diluted earnings per common share, operating* | | $ | 0.62 | | $ | 0.62 | | | $ | 0.46 | | $ | 0.45 | | | $ | 0.51 | |
| *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 | | $ | 58,905 | | | $ | 41,915 | |
| Investment securities | | | 8,968 | | | | 6,506 | |
| Accretion of purchase accounting adjustments | | | 1,201 | | | | 167 | |
| Other interest income | | | 348 | | | | 337 | |
| Total interest income | | | 69,422 | | | | 48,926 | |
| Interest Expense: | | | | |
| Deposits | | | 7,076 | | | | 3,998 | |
| Borrowings | | | 659 | | | | 980 | |
| Subordinated debentures | | | 1,977 | | | | 171 | |
| Amortization (Accretion) of purchase accounting adjustments | | | 91 | | | | (162 | ) |
| Total interest expense | | | 9,803 | | | | 4,987 | |
| Net interest income | | | 59,619 | | | | 43,939 | |
| Provision for loan losses | | | 1,546 | | | | 384 | |
| Net interest income after provision for loan losses | | | 58,073 | | | | 43,555 | |
| | | | | |
| Non-interest Income: | | | | |
| Service charges on deposit accounts | | | 3,906 | | | | 2,692 | |
| Mortgage Income | | | 3,079 | | | | 3,400 | |
| Interchange Fee Income | | | 3,720 | | | | 2,797 | |
| Gain (loss) on securities, net | | | (5 | ) | | | (19 | ) |
| Gain on sale of premises and equipment | | | - | | | | - | |
| Financial Assistance Award/Bank Enterprise Award | | | 1,150 | | | | - | |
| Other charges and fees | | | 2,314 | | | | 1,937 | |
| Total non-interest income | | | 14,164 | | | | 10,807 | |
| | | | | |
| Non-interest expense: | | | | |
| Salaries and employee benefits | | | 26,557 | | | | 22,574 | |
| Occupancy expense | | | 5,844 | | | | 4,108 | |
| FDIC premiums | | | 1,013 | | | | 887 | |
| Marketing | | | 210 | | | | 218 | |
| Amortization of core deposit intangibles | | | 906 | | | | 491 | |
| Other professional services | | | 1,474 | | | | 1,201 | |
| Acquisition charges | | | 9,655 | | | | 6,327 | |
| Other non-interest expense | | | 8,405 | | | | 7,250 | |
| Total Non-interest expense | | | 54,064 | | | | 43,056 | |
| Earnings before income taxes | | | 18,173 | | | | 11,306 | |
| Income tax expense | | | 3,809 | | | | 3,104 | |
| Net income available to common shareholders | | $ | 14,364 | | | $ | 8,202 | |
| | | | | |
| Diluted earnings per common share | | $ | 1.13 | | | $ | 0.89 | |
| Diluted earnings per common share, operating* | | $ | 1.71 | | | $ | 1.32 | |
| *See reconciliation of Non-GAAP financial measures | | | | |
| | | | |
| |
| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands) |
| | Sept 30, | | Percent | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, | | Percent |
| COMPOSITION OF LOANS | | 2018 | | of Total | | 2018 | | 2018 | | 2017 | | 2017 | | of Total |
| Commercial, financial and agricultural | | $ | 246,401 | | | 14.1 | % | | $ | 228,643 | | | $ | 213,118 | | | $ | 165,780 | | | $ | 164,577 | | | 13.7 | % |
| Real estate – construction | | | 251,240 | | | 14.3 | % | | | 229,164 | | | | 213,712 | | | | 183,328 | | | | 171,609 | | | 14.3 | % |
| Real estate – commercial | | | 654,040 | | | 37.3 | % | | | 658,096 | | | | 561,153 | | | | 467,484 | | | | 456,110 | | | 37.9 | % |
| Real estate – residential | | | 529,515 | | | 30.2 | % | | | 546,120 | | | | 475,868 | | | | 385,099 | | | | 377,308 | | | 31.4 | % |
| Lease Financing Receivable | | | 2,659 | | | 0.2 | % | | | 2,476 | | | | 2,433 | | | | 2,450 | | | | 2,008 | | | 0.2 | % |
| Obligations of States & subdivisions | | | 16,374 | | | 0.9 | % | | | 10,627 | | | | 15,861 | | | | 3,109 | | | | 5,892 | | | 0.5 | % |
| Consumer | | | 48,254 | | | 2.8 | % | | | 35,145 | | | | 34,434 | | | | 18,056 | | | | 20,689 | | | 1.7 | % |
| Loans held for sale | | | 4,269 | | | 0.2 | % | | | 5,914 | | | | 2,538 | | | | 4,790 | | | | 4,588 | | | 0.3 | % |
| Total loans | | $ | 1,752,752 | | | 100 | % | | $ | 1,716,185 | | | $ | 1,519,117 | | | $ | 1,230,096 | | | $ | 1,202,781 | | | 100 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Sept 30, | | Percent | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, | | Percent |
| COMPOSITION OF DEPOSITS | | 2018 | | of Total | | 2018 | | 2018 | | 2017 | | 2017 | | of Total |
| Noninterest bearing | | $ | 430,430 | | | 21.0 | % | | $ | 459,402 | | | $ | 414,142 | | | $ | 301,989 | | | $ | 308,050 | | | 20.4 | % |
| NOW and other | | | 705,851 | | | 34.5 | % | | | 731,617 | | | | 761,318 | | | | 601,694 | | | | 639,802 | | | 42.4 | % |
| Money Market/Savings | | | 503,772 | | | 24.6 | % | | | 519,516 | | | | 434,569 | | | | 283,579 | | | | 292,592 | | | 19.4 | % |
| Time Deposits of less than $250,000 | | | 321,619 | | | 15.7 | % | | | 308,086 | | | | 295,317 | | | | 220,951 | | | | 209,714 | | | 13.9 | % |
| Time Deposits of $250,000 or more | | | 84,774 | | | 4.2 | % | | | 78,614 | | | | 86,298 | | | | 62,352 | | | | 57,833 | | | 3.9 | % |
| Total Deposits | | $ | 2,046,446 | | | 100 | % | | $ | 2,097,235 | | | $ | 1,991,644 | | | $ | 1,470,565 | | | $ | 1,507,991 | | | 100 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Sept 30, | | | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, | | |
| ASSET QUALITY DATA | | 2018 | | | | 2018 | | 2018 | | 2017 | | 2017 | | |
| Nonaccrual loans | | $ | 13,572 | | | | | $ | 8,440 | | | $ | 5,746 | | | $ | 5,674 | | | $ | 4,852 | | | |
| Loans past due 90 days and over | | | 805 | | | | | | 940 | | | | 1,096 | | | | 285 | | | | 1,436 | | | |
| Total nonperforming loans | | | 14,377 | | | | | | 9,380 | | | | 6,842 | | | | 5,959 | | | | 6,288 | | | |
| Other real estate | | | 8,453 | | | | | | 7,890 | | | | 7,357 | | | | 7,158 | | | | 7,855 | | | |
| Nonaccrual securities | | | 616 | | | | | | 616 | | | | 616 | | | | 408 | | | | 408 | | | |
| Total nonperforming assets | | $ | 23,446 | | | | | $ | 17,886 | | | $ | 14,815 | | | $ | 13,525 | | | $ | 14,551 | | | |
| | | | | | | | | | | | | | | |
| Nonperforming assets to total assets | | | 0.93 | % | | | | | 0.72 | % | | | 0.64 | % | | | 0.75 | % | | | 0.81 | % | | |
| Nonperforming assets to total loans + ORE | | | 1.33 | % | | | | | 1.04 | % | | | 0.97 | % | | | 1.10 | % | | | 1.21 | % | | |
| ALLL to nonperforming loans | | | 67.92 | % | | | | | 101.41 | % | | | 128.13 | % | | | 139.08 | % | | | 130.01 | % | | |
| ALLL to total loans | | | 0.56 | % | | | | | 0.56 | % | | | 0.57 | % | | | 0.68 | % | | | 0.68 | % | | |
| | | | | | | | | | | | | | | |
| Quarter-to-date net charge-offs (recs) | | $ | 151 | | | | | $ | 12 | | | $ | (94 | ) | | $ | 9 | | | $ | (15 | ) | | |
| Annualized QTD net chg/offs (recs) to loans | | | 0.03 | % | | | | | 0.003 | % | | | (0.02 | %) | | | 0.003 | % | | | (0.005 | %) | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 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 | | September 30, 2018 | | June 30, 2018 | | March 31, 2018 | | December 31, 2017 | | September 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 | | $ | 331,601 | | $ | 2,369 | | 2.86 | % | | $ | 328,898 | | $ | 2,423 | | 2.95 | % | | $ | 274,595 | | $ | 1,986 | | 2.89 | % | | $ | 271,459 | | $ | 1,760 | | 2.59 | % | | $ | 280,441 | | $ | 1,601 | | 2.28 | % |
Tax-exempt securities | | | 116,235 | | | 1,013 | | 3.49 | % | | | 117,875 | | | 1,015 | | 3.44 | % | | | 106,161 | | | 904 | | 3.41 | % | | | 93,645 | | | 888 | | 3.79 | % | | | 93,716 | | | 876 | | 3.74 | % |
Total investment securities | | | 447,836 | | | 3,382 | | 3.02 | % | | | 446,773 | | | 3,438 | | 3.08 | % | | | 380,756 | | | 2,890 | | 3.04 | % | | | 365,104 | | | 2,648 | | 2.90 | % | | | 374,157 | | | 2,477 | | 2.65 | % |
| Fed funds sold | | | 355 | | | 5 | | 5.63 | % | | | 17,242 | | | 61 | | 1.42 | % | | | 11,368 | | | 35 | | 1.23 | % | | | 54,640 | | | 46 | | 0.34 | % | | | 36,591 | | | 113 | | 1.24 | % |
Int bearing deposits in other banks | | | 41,819 | | | 90 | | 0.86 | % | | | 68,079 | | | 81 | | 0.48 | % | | | 94,321 | | | 77 | | 0.33 | % | | | 4,544 | | | 6 | | 0.53 | % | | | 3,463 | | | 3 | | 0.35 | % |
| Loans | | | 1,720,884 | | | 22,407 | | 5.21 | % | | | 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 | % |
Total Interest earning assets | | | 2,210,894 | | | 25,884 | | 4.68 | % | | | 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 | % |
| Other assets | | | 259,713 | | | | | | | 214,345 | | | | | | | 174,433 | | | | | | | 170,002 | | | | | | | 172,698 | | | | |
| Total assets | | $ | 2,470,607 | | | | | | $ | 2,443,176 | | | | | | $ | 1,986,150 | | | | | | $ | 1,810,252 | | | | | | $ | 1,772,402 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | $ | 1,629,195 | | $ | 2,782 | | 0.68 | % | | $ | 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 | % |
| Repo | | | - | | | - | | 0.00 | % | | | - | | | - | | 0.00 | % | | | - | | | - | | 0.00 | % | | | - | | | - | | 0.00 | % | | | 4,891 | | | 38 | | 3.11 | % |
| Fed funds purchased | | | 1,893 | | | 27 | | 5.71 | % | | | 1,382 | | | 9 | | 2.60 | % | | | 202 | | | 1 | | 1.98 | % | | | 2,543 | | | 11 | | 1.73 | % | | | 3,816 | | | 19 | | 1.99 | % |
| FHLB & FTN | | | 22,469 | | | 25 | | 0.45 | % | | | 22,959 | | | 138 | | 2.40 | % | | | 71,944 | | | 459 | | 2.55 | % | | | 103,421 | | | 381 | | 1.47 | % | | | 68,041 | | | 300 | | 1.76 | % |
Subordinated debentures | | | 75,124 | | | 1,125 | | 5.99 | % | | | 54,036 | | | 774 | | 5.73 | % | | | 10,310 | | | 78 | | 3.03 | % | | | 10,310 | | | 105 | | 4.07 | % | | | 10,310 | | | 41 | | 1.59 | % |
Total interest bearing liabilities | | | 1,728,681 | | | 3,959 | | 0.92 | % | | | 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 | % |
| Other liabilities | | | 457,087 | | | | | | | 414,154 | | | | | | | 342,514 | | | | | | | 315,012 | | | | | | | 316,275 | | | | |
| Shareholders' equity | | | 284,839 | | | | | | | 274,535 | | | | | | | 230,255 | | | | | | | 205,580 | | | | | | | 164,455 | | | | |
Total liabilities and shareholders' equity | | $ | 2,470,607 | | | | | | $ | 2,443,176 | | | | | | $ | 1,989,150 | | | | | | $ | 1,810,252 | | | | | | $ | 1,772,402 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (FTE)* | | | | $ | 21,925 | | 3.77 | % | | | | $ | 21,826 | | 3.75 | % | | | | $ | 16,609 | | 3.52 | % | | | | $ | 15,523 | | 3.66 | % | | | | $ | 15,232 | | 3.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE)* | | | | | | 3.97 | % | | | | | | 3.92 | % | | | | | | 3.67 | % | | | | | | 3.79 | % | | | | | | 3.81 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core net interest margin* | | | | | | 3.86 | % | | | | | | 3.82 | % | | | | | | 3.65 | % | | | | | | 3.76 | % | | | | | | 3.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Reconciliation of Non-GAAP Financial Measures (unaudited) |
| (in thousands except per share data) |
| | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
Per Common Share Data | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
| Book value per common share | | | $ | 22.09 | | | $ | 21.88 | | | $ | 20.95 | | | $ | 19.92 | | | $ | 18.24 | |
| Effect of intangible assets per share | | | | 4.99 | | | | 5.06 | | | | 4.56 | | | | 2.21 | | | | 2.76 | |
| Tangible book value per common share | | | $ | 17.10 | | | $ | 16.82 | | | $ | 16.39 | | | $ | 17.71 | | | $ | 15.48 | |
| | | | | | | | | | | | |
| Diluted earnings per share | | | $ | 0.39 | | | $ | 0.40 | | | $ | 0.34 | | | $ | 0.23 | | | $ | 0.51 | |
| Effect of acquisition charges | | | | 0.31 | | | | 0.29 | | | | 0.15 | | | | 0.04 | | | | - | |
| Taxes on acquisition charges | | | | (0.08 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.01 | ) | | | - | |
| Charge related to reduction in deferred tax asset | | | | - | | | | - | | | | - | | | | 0.19 | | | | - | |
| Diluted earnings per share, operating | | | $ | 0.62 | | | $ | 0.62 | | | $ | 0.46 | | | $ | 0.45 | | | $ | 0.51 | |
| | | | | | | | | | | | |
| | | | | | Year to Date | | |
| | | | | 2018 | | | | 2017 | | |
| Diluted earnings per share | | | | | $ | 1.13 | | | | | $ | 0.89 | | | |
| Effect of acquisition charges | | | | | | 0.76 | | | | | | 0.68 | | | |
| Tax | | | | | | (0.18 | ) | | | | | (0.25 | ) | | |
| Diluted earnings per share, operating | | | | | $ | 1.71 | | | | | $ | 1.32 | | | |
| | | | | | | | | | | | |
| | | | | | Year to Date | | |
| | | | | 2018 | | | | 2017 | | |
| Net income available to common shareholders | | | | | $ | 14,364 | | | | | $ | 8,202 | | | |
| Effect of acquisition charges | | | | | | 9,655 | | | | | | 6,327 | | | |
| Tax | | | | | | (2,330 | ) | | | | | (2,390 | ) | | |
| Net earnings available to common shareholders, operating | | | | | $ | 21,689 | | | | | $ | 12,139 | | | |
| | | | | | | | | | | | |
| | | | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| Average Balance Sheet Data | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
Total average assets | A | | $ | 2,470,607 | | | $ | 2,443,176 | | | $ | 1,986,150 | | | $ | 1,810,252 | | | $ | 1,772,402 | |
Total average earning assets | B | | $ | 2,210,894 | | | $ | 2,228,831 | | | $ | 1,811,717 | | | $ | 1,640,250 | | | $ | 1,599,704 | |
| | | | | | | | | | | | |
Common Equity | C | | $ | 284,839 | | | $ | 274,535 | | | $ | 230,255 | | | $ | 205,580 | | | $ | 164,455 | |
| Less intangible assets | | | | 65,762 | | | | 57,443 | | | | 33,929 | | | | 25,258 | | | | 25,442 | |
Tangible common equity | D | | $ | 219,077 | | | $ | 217,092 | | | $ | 196,326 | | | $ | 180,322 | | | $ | 139,013 | |
| | | | | | | | | | | | |
| | | | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| Net Interest Income Fully Tax Equivalent | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
Net interest income | E | | $ | 21,669 | | | $ | 21,569 | | | $ | 16,380 | | | $ | 15,221 | | | $ | 14,935 | |
| Tax-exempt investment income | | | | (757 | ) | | | (758 | ) | | | (675 | ) | | | (586 | ) | | | (579 | ) |
| Taxable investment income | | | | 1,013 | | | | 1,015 | | | | 904 | | | | 888 | | | | 876 | |
Net Interest Income Fully Tax Equivalent | F | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 | | | $ | 15,232 | |
| | | | | | | | | | | | |
Annualized Net Interest Margin | E/B | | | 3.92 | % | | | 3.87 | % | | | 3.62 | % | | | 3.71 | % | | | 3.73 | % |
Annualized Net Interest Margin, Fully Tax Equivalent | F/B | | | 3.97 | % | | | 3.92 | % | | | 3.67 | % | | | 3.79 | % | | | 3.81 | % |
| | | | |
| | | | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| Core Net Interest Margin | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
| Net interest income (FTE) | | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 | | | $ | 15,232 | |
| Less purchase accounting adjustments | | | | 541 | | | | 510 | | | | 59 | | | | 87 | | | | 116 | |
Net interest income, net of purchase accounting adj | G | | $ | 21,384 | | | $ | 21,316 | | | $ | 16,550 | | | $ | 15,436 | | | $ | 15,116 | |
| | | | | | | | | | | | |
| Total average earning assets | | | $ | 2,210,894 | | | $ | 2,228,831 | | | $ | 1,811,717 | | | $ | 1,640,250 | | | $ | 1,599,704 | |
| Add average balance of loan valuation discount | | | | 6,836 | | | | 6,046 | | | | 1,578 | | | | 1,558 | | | | 1,640 | |
Avg earning assets, excluding loan valuation discount | H | | $ | 2,217,730 | | | $ | 2,234,877 | | | $ | 1,813,295 | | | $ | 1,641,808 | | | $ | 1,601,344 | |
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Core net interest margin | G/H | | | 3.86 | % | | | 3.82 | % | | | 3.65 | % | | | 3.76 | % | | | 3.78 | % |
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| | | | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| Efficiency Ratio | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
| Operating Expense | | | | | | | | | | | |
| Total non-interest expense | | | $ | 19,786 | | | $ | 19,680 | | | $ | 14,598 | | | $ | 12,390 | | | $ | 11,888 | |
| Pre-tax non-operating expenses | | | | (4,059 | ) | | | (3,838 | ) | | | (1,758 | ) | | | (384 | ) | | | (47 | ) |
Adjusted Operating Expense | I | | $ | 15,727 | | | $ | 15,842 | | | $ | 12,840 | | | $ | 12,006 | | | $ | 11,841 | |
| | | | | | | | | | | | |
| Operating Revenue | | | | | | | | | | | |
| Net interest income, FTE | | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 | | | $ | 15,232 | |
| Total non-interest income | | | | 5,074 | | | | 5,632 | | | | 3,459 | | | | 3,556 | | | | 3,658 | |
| Pre-tax non-operating items | | | | - | | | | - | | | | - | | | | - | | | | - | |
Adjusted Operating Revenue | J | | $ | 26,999 | | | $ | 27,458 | | | $ | 20,068 | | | $ | 19,079 | | | $ | 18,890 | |
| | | | | | | | | | | | |
Efficiency Ratio, operating | I/J | | | 58.25 | % | | | 57.70 | % | | | 63.98 | % | | | 62.93 | % | | | 62.68 | % |
| | | | | | | | | | | | |
| | | | Three Months Ended |
| | | Sept 30, | | June 30, | | Mar 31, | | Dec 31, | | Sept 30, |
| Return Ratios | | | 2018 | | 2018 | | 2018 | | 2017 | | 2017 |
Net income available to common shareholders | K | | $ | 5,162 | | | $ | 5,245 | | | $ | 3,957 | | | $ | 2,414 | | | $ | 4,714 | |
| Acquisition charges | | | | 4,059 | | | | 3,838 | | | | 1,758 | | | | 384 | | | | 47 | |
| Tax on acquisition charges | | | | (1,027 | ) | | | (948 | ) | | | (355 | ) | | | (148 | ) | | | (18 | ) |
| Charge related to reduction in deferred tax asset | | | | - | | | | - | | | | - | | | | 2,081 | | | | - | |
Net earnings available to common shareholders, oper | L | | $ | 8,194 | | | $ | 8,135 | | | $ | 5,360 | | | $ | 4,731 | | | $ | 4,743 | |
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Annualized return on avg assets | K/A | | | 0.84 | % | | | 0.86 | % | | | 0.80 | % | | | 0.53 | % | | | 1.06 | % |
Annualized return on avg assets, oper | L/A | | | 1.33 | % | | | 1.33 | % | | | 1.08 | % | | | 1.05 | % | | | 1.07 | % |
Annualized return on avg common equity, oper | L/C | | | 11.51 | % | | | 11.85 | % | | | 9.31 | % | | | 9.21 | % | | | 11.54 | % |
Annualized return on avg tangible common equity, oper | L/D | | | 14.96 | % | | | 14.99 | % | | | 10.92 | % | | | 10.49 | % | | | 13.65 | % |
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| Mortgage Department | | | | | | | | | | | |
| Net Interest Income after provision for loan losses | | | $ | 154 | | | $ | 214 | | | $ | 189 | | | $ | 272 | | | $ | 249 | |
| Loan fee income | | | | 1,066 | | | | 1,213 | | | | 800 | | | | 1,102 | | | | 1,276 | |
| Salaries and employee benefits | | | | 855 | | | | 903 | | | | 849 | | | | 806 | | | | 882 | |
| Other non-interest expense | | | | 136 | | | | 127 | | | | 97 | | | | 101 | | | | 102 | |
| Earnings before income taxes | | | $ | 229 | | | $ | 397 | | | $ | 43 | | | $ | 467 | | | $ | 541 | |
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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
