Exhibit 99.1
The First Bancshares, Inc. Reports a 100% Increase in Net Income Available to Common Shareholders; Increases Quarterly Dividend by 40%
HATTIESBURG, Miss.--(BUSINESS WIRE)--January 28, 2019--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 $21.2 million for the fiscal year ended December 31, 2018, an increase of $10.6 million or 99.9%, compared to $10.6 million for the fiscal year ended December 31, 2017. Operating net earnings increased 77.8% ($13.1 million) for the fiscal year ended December 31, 2018, totaling $30.0 million for fiscal year 2018 as compared to $16.9 million for fiscal year 2017. Operating net earnings for fiscal year 2018 excludes merger-related costs of $10.6 million, net of tax, gain on sale of securities of $0.26 million, net of tax, and non-recurring income in the form of awards from the U. S. Department of the Treasury of $1.6 million, net of tax. Operating net earnings for the fiscal year 2017 excludes merger-related costs of $4.2 million, net of tax, and a $2.1 million charge to income tax expense related to a reduction in our deferred tax asset resulting from the change in tax rate under the Tax Cuts and Jobs Act enacted in December of 2017.
Net income available to common shareholders for the fourth quarter of 2018 totaled $6.9 million compared to $2.4 million for the fourth quarter of 2017, an increase of 184.2%. Operating net earnings for the fourth quarter of 2018 totaled $9.1 million as compared to $4.7 million for the fourth quarter of 2017 representing a 93.2% increase, excluding merger-related costs of $3.2 million, net of tax, in the fourth quarter of 2018 as well as a gain on the sale of securities of $0.26 million, net of tax, and Financial Assistance Award from the U. S. Department of the Treasury of $0.7 million, net of tax, in the fourth quarter of 2018, and excluding merger-related costs of $0.2 million, net of tax, as well as the $2.1 million income tax charge discussed above in the fourth quarter of 2017.
For the full year 2018, fully diluted earnings per share were $1.62, compared to $1.11 for the full year 2017. Fully diluted earnings per share for the quarter ended December 31, 2018, were $0.48, compared to $0.23 for the quarter ended December 31, 2017. Excluding the impact of the merger-related costs and other non-recurring items described above, fully diluted operating earnings per share for the year ended December 31, 2018 were $2.29 as compared to $1.76 for 2017, and were $0.64 for the fourth quarter of 2018 as compared to $0.45 for the fourth 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 Bancshares, Inc. (“Southwest”) during the first quarter of 2018, 726,461 shares issued in connection with the acquisition of Sunshine Financial, Inc. (“Sunshine”) during the second quarter of 2018 and 1,763,042 shares issued in connection with the acquisition of FMB Banking Corporation (“FMB”) during the fourth quarter of 2018.
Highlights for the Quarter:
- On November 6, 2018, the Company announced the signing of an Agreement and Plan of Merger with FPB Financial Corp (“FPB”), parent company of Florida Parishes Bank, headquartered in Hammond, La. Upon completion, the acquisition will add 7 locations servicing the Hammond and New Orleans areas in Louisiana and is expected to close during the first quarter of 2019 subject to FPB shareholder approval and customary closing conditions. The Company has received regulatory approval for the acquisition.
- On November 1, 2018, the Company closed as planned the acquisition of FMB Banking Corporation (“FMB”), and its wholly-owned subsidiary, Farmers & Merchants Bank, which added 6 locations servicing Jefferson and Leon counties in Florida and Thomas County in Georgia and completed systems integration during the fourth quarter.
- The Company’s Board of Directors increased the quarterly dividend by $0.02 to $0.07 per share, a 40% increase.
- During the quarter, the Company received a $0.95 million Financial Assistance 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, “2018 was a phenomenal year for our Company. Through continued execution of our regional expansion strategy, we closed and integrated 3 acquisitions and posted organic growth of 11.4% in outstanding loans and 5.4% in deposits during the year. As a result, our Company surpassed $3B in total assets at year-end 2018 and posted a 77.8% increase in net operating earnings year over year. I commend the hard work, dedication and extra effort of our team members to achieve such exceptional results. We are thankful for the opportunities and achievement of 2018 and are excited about the prospects for continued growth in 2019.”
Balance Sheet
Consolidated assets increased $492.2 million to $3.004 billion at December 31, 2018 from $2.512 billion at September 30, 2018.
Total loans were $2.060 billion at December 31, 2018, as compared to $1.748 billion at September 30, 2018, and $1.225 billion at December 31, 2017, representing increases of $311.9 million or 17.8%, and $835.1 million or 68.2%, respectively. The acquisitions of Southwest, Sunshine and FMB accounted for $695.1 million, net of fair value marks, of the total increase in loans as compared to the fourth quarter of 2017. The acquisition of FMB accounted for $305.6 million, net of fair value marks, of the total increase in loans as compared to the third quarter of 2018. The increase in loans, net of acquired loans, during the sequential quarter amounted to $8.1 million.
Total deposits were $2.457 billion at December 31, 2018, as compared to $2.046 billion at September 30, 2018, and $1.471 billion at December 31, 2017, representing increases of $411.0 million or 20.1%, and $986.0 million or 67.1%, respectively. The acquisitions of Southwest, Sunshine and FMB accounted for $889.2 million of the total increase in deposits as compared to the fourth quarter of 2017. The acquisition of FMB accounted for $445.9 million of the total increase in deposits as compared to the third quarter of 2018. The decrease in deposits of $34.9 million, net of acquired, during the sequential quarter was largely due to a decrease in NOW accounts of $24.4 million, of which $16.0 million is attributable to the seasonality of the public fund deposits.
Asset Quality
Nonperforming assets totaled $34.3 million at December 31, 2018, an increase of $10.9 million compared to $23.4 million at September 30, 2018 and an increase of $20.8 million compared to December 31, 2017. The majority of the increases in both quarterly comparisons was related to acquired loans. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.49% at December 31, 2018, 0.56% at September 30, 2018 and 0.68% at December 31, 2018. The ratio of annualized net charge-offs (recoveries) to total loans was 0.02% for the quarter ended December 31, 2018 compared to 0.03% for the quarter ended September 30, 2018 and 0.003% for the quarter ended December 31, 2017.
Fourth Quarter 2018 vs. Fourth Quarter 2017 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2018 totaled $6.9 million compared to $2.4 million for the fourth quarter of 2017, an increase of $4.4 million or 184.2%.
Operating net earnings for the fourth quarter of 2018 totaled $9.1 million compared to $4.7 million for the fourth quarter of 2017, an increase of $4.4 million or 93.2%. The calculation of operating net earnings excludes the merger-related costs and other excluded items for each quarter as discussed above.
Net interest income for the fourth quarter of 2018 was $25.3 million, an increase of $10.0 million when compared to the fourth 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 $2.8 million for the fourth quarter of 2018 as compared to the fourth quarter of 2017 due to increased service charges and interchange fee income of $1.5 million on the increased deposit base due to the acquisitions. Non-interest income also included the Financial Assistance Award of $0.95 million from the U.S. Department of the Treasury received during the fourth quarter of 2018 as a result of our designation as a Community Development Financial Institution.
Fourth quarter 2018 non-interest expense was $22.2 million, an increase of $9.9 million, or 79.5% as compared to the fourth quarter of 2017. Excluding the increase in acquisition charges of $3.8 million for fourth quarter of 2018, non-interest expense increased $6.1 million in the fourth quarter of 2018, of which $3.9 million was attributable to the operations of Southwest, Sunshine and FMB, as compared to fourth quarter of 2017.
Net interest income was $25.3 million for the fourth quarter of 2018 as compared to $15.2 million for the fourth quarter of 2017. Fully tax equivalent (“FTE”) net interest income totaled $25.5 million and $15.5 million for the fourth quarter of 2018 and 2017, respectively. FTE net interest income increased $10.0 million in the prior year quarterly comparison due to increased loan volume as well as increased interest rates. Purchase accounting adjustments accounted for $1.4 million of the difference in net interest income for the fourth quarter comparisons. Fourth quarter 2018 FTE net interest margin of 4.08% included 24 basis points related to purchase accounting adjustments compared to 3.79% for the same quarter in 2017, which included 3 basis points related to purchase accounting adjustments.
Investment securities totaled $514.9 million, or 17.1% of total assets at December 31, 2018, versus $372.9 million, or 20.9% of total assets at December 31, 2017. The average balance of investment securities increased $118.8 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 25 basis points to 3.15% from 2.90% in prior year quarterly comparison. The investment portfolio had a net unrealized loss of $2.5 million at December 31, 2018 as compared to a net unrealized loss of $0.6 million at December 31, 2017.
The FTE average yield on all earning assets increased 68 basis points in prior year quarterly comparison, from 4.25% for the fourth quarter of 2017 to 4.93% for the fourth quarter of 2018. Average interest expense increased 49 basis points from 0.60% for the fourth quarter of 2017 to 1.09% for the fourth 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 57 basis points for the fourth quarter of 2018 compared to 37 basis points for the fourth quarter of 2017. Public funds increased $75.8 million when comparing December 31, 2018 to December 31, 2017.
Fourth Quarter 2018 vs Third Quarter 2018 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2018 increased $1.7 million, or 32.9% to $6.9 million for the fourth quarter of 2018 compared to $5.2 million for the third quarter of 2018.
Operating net earnings for the fourth quarter of 2018 compared to the third quarter of 2018 increased $0.9 million or 11.6% from $8.2 million for the third quarter of 2018 to $9.1 million for the fourth quarter of 2018. Operating net earnings exclude the merger-related costs and other excluded items for the fourth quarter of 2018 as discussed above, and merger-related costs of $3.0 million, net of tax, for the third quarter of 2018.
Net interest income for the fourth quarter of 2018 was $25.3 million as compared to $21.7 million for the third quarter of 2018, an increase of $3.6 million. FTE net interest income increased $3.6 million to $25.5 million from $21.9 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 increased $0.9 million in sequential quarter comparison. Fourth quarter 2018 FTE net interest margin of 4.08% included 24 basis points related to purchase accounting adjustments compared to 3.97% for the third quarter in 2018, which included 11 basis points related to purchase accounting adjustments.
Investment securities totaled $514.9 million, or 17.1% of total assets at December 31, 2018, versus $444.0 million, or 17.7% of total assets at September 30, 2018. The average balance of investment securities increased $36.0 million in sequential-quarter comparison, primarily as a result of the acquisition of FMB. The average tax equivalent yield on investment securities increased 13 basis points to 3.15% from 3.02% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $2.5 million at December 31, 2018 as compared to a net unrealized loss of $8.4 million at September 30, 2018.
The FTE average yield on all earning assets increased in sequential-quarter comparison from 4.68% to 4.93%. Average interest expense increased 17 basis points from 0.92% for the third quarter of 2018 to 1.09% for the fourth quarter of 2018 due primarily to increased rates as well as an increase in borrowings. Cost of all deposits averaged 57 basis points for the fourth quarter of 2018 compared to 50 basis points for the third quarter of 2018. Public funds decreased $16.0 million when comparing December 31, 2018 to September 30, 2018 when excluding the acquisition of FMB.
Non-interest income increased $1.3 million in sequential-quarter comparison resulting from increased service charges and increased interchange fee income on the increased deposit base related to the acquisition of FMB. Non-interest income for the fourth quarter of 2018 included the Financial Assistance Award received from the U. S. Department of the Treasury for $0.95 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 increase in non-interest income of $0.7 million for the quarterly comparison.
Non-interest expense for the fourth quarter of 2018 was $22.2 million compared to $19.8 million for the third quarter of 2018. Excluding acquisition charges for each quarter, non-interest expense increased $2.4 million in sequential-quarter comparison, which is attributable to the operations of FMB acquired in the fourth quarter.
Year to Date Earnings Comparison
In year-over-year comparison, net income available to common shareholders increased $10.6 million, or 99.9%, from $10.6 million for the fiscal year December 31, 2017 to $21.2 million for the fiscal year ended December 31, 2018. Operating net earnings increased $13.1 million or 77.8% from $16.9 million for the fiscal year ended December 31, 2017 to $30.0 million for the fiscal year ended December 31, 2018. Operating net earnings excludes merger-related costs, nonrecurring income, gain on sale and other charges described above.
Net interest income increased $25.7 million, or 43.5% in year-over-year comparison, primarily due to interest income earned on a higher volume of loans as well as increased interest rates. Purchase accounting adjustments accounted for only $2.1 million of the increase.
Non-interest income was $20.6 million at December 31, 2018, an increase of $6.2 million, or 43.2% in year-over-year comparison consisting of increases in service charges on deposit accounts of $2.2 million and interchange fee income of $1.5 million on the increased deposit base related to the acquisitions, as well as the receipt of the Financial Assistance and Bank Enterprise Awards in the amounts of $2.1 million.
Non-interest expense was $76.3 million at December 31, 2018, an increase of $20.9 million, or 37.6% in year-over-year comparison primarily resulting from increases in salaries and benefits of $5.9 million related to the acquisitions of Southwest, Sunshine and FMB and increased acquisition charges of $7.1 million. Increases in occupancy, 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 of $0.07 per share, an increase of $0.02 per share, or 40.0% to be paid on its common stock on February 26, 2019 to shareholders of record as of the close of business on February 11, 2019.
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, Florida and Georgia. The Company’s stock is traded on the NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes 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 FPB and the acquisitions of Southwest, Sunshine and FMB, including the risk that the proposed acquisition of FPB 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 FPB need to be modified to satisfy such approvals or conditions, and that anticipated benefits from the transactions with Southwest, Sunshine, FMB and FPB 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
Ended
12/31/18 | | | Quarter
Ended
9/30/18 | | | Quarter
Ended
6/30/18 | | | Quarter
Ended
3/31/18 | | | Quarter
Ended
12/31/17 |
| Total Interest Income | | | $ | 30,555 | | | $ | 25,628 | | | $ | 25,037 | | | $ | 18,758 | | | $ | 17,143 |
| Total Interest Expense | | | | 5,285 | | | | 3,959 | | | | 3,468 | | | | 2,378 | | | | 1,922 |
| Net Interest Income | | | | 25,270 | | | | 21,669 | | | | 21,569 | | | | 16,380 | | | | 15,221 |
| FTE net interest income* | | | | 25,524 | | | | 21,925 | | | | 21,826 | | | | 16,609 | | | | 15,523 |
| Provision for loan losses | | | | 574 | | | | 412 | | | | 857 | | | | 277 | | | | 122 |
| Non-interest income | | | | 6,396 | | | | 5,074 | | | | 5,632 | | | | 3,459 | | | | 3,556 |
| Non-interest expense | | | | 22,249 | | | | 19,786 | | | | 19,680 | | | | 14,597 | | | | 12,390 |
| Earnings before income taxes | | | | 8,843 | | | | 6,545 | | | | 6,664 | | | | 4,965 | | | | 6,265 |
| Income tax expense | | | | 1,982 | | | | 1,383 | | | | 1,419 | | | | 1,008 | | | | 3,851 |
| Net income available to common shareholders | | | $ | 6,861 | | | $ | 5,162 | | | $ | 5,245 | | | $ | 3,957 | | | $ | 2,414 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| PER COMMON SHARE DATA | | | | | | | | | | | | | | | |
| Basic earnings per share | | | $ | 0.48 | | | $ | 0.39 | | | $ | 0.40 | | | $ | 0.34 | | | $ | 0.23 |
| Diluted earnings per share | | | | 0.48 | | | | 0.39 | | | | 0.40 | | | | 0.34 | | | | 0.23 |
| Diluted earnings per share, operating* | | | | 0.64 | | | | 0.62 | | | | 0.62 | | | | 0.46 | | | | 0.45 |
| Quarterly dividends per share | | | | .05 | | | | .05 | | | | .05 | | | | .05 | | | | .0375 |
| Book value per common share at end of period | | | | 24.49 | | | | 22.09 | | | | 21.88 | | | | 20.95 | | | | 19.92 |
| Tangible common book value at period end* | | | | 16.88 | | | | 17.10 | | | | 16.82 | | | | 16.39 | | | | 17.71 |
| Market price at end of period | | | | 30.91 | | | | 39.05 | | | | 36.80 | | | | 32.25 | | | | 34.20 |
| Shares outstanding at period end | | | | 14,830,598 | | | | 13,074,516 | | | | 13,065,953 | | | | 12,339,492 | | | | 11,165,907 |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | |
| Basic | | | | 14,247,555 | | | | 13,072,455 | | | | 13,065,953 | | | | 11,556,968 | | | | 10,521,236 |
| Diluted | | | | 14,371,562 | | | | 13,192,207 | | | | 13,167,969 | | | | 11,652,959 | | | | 10,598,036 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| AVERAGE BALANCE SHEET DATA | | | | | | | | | | | | | | | |
| Total assets | | | $ | 2,812,212 | | | $ | 2,470,607 | | | $ | 2,443,176 | | | $ | 1,986,150 | | | $ | 1,810,252 |
| Loans and leases | | | | 1,959,179 | | | | 1,720,884 | | | | 1,696,737 | | | | 1,325,272 | | | | 1,215,962 |
| Total deposits | | | | 2,296,966 | | | | 2,069,910 | | | | 2,115,661 | | | | 1,683,999 | | | | 1,475,628 |
| Total common equity | | | | 328,250 | | | | 284,839 | | | | 274,535 | | | | 230,255 | | | | 205,580 |
| Total tangible common equity* | | | | 222,402 | | | | 219,077 | | | | 217,092 | | | | 196,326 | | | | 180,322 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| SELECTED RATIOS | | | | | | | | | | | | | | | |
| Annualized return on avg assets | | | | 0.98% | | | | 0.84% | | | | 0.86% | | | | 0.80% | | | | 0.53% |
| Annualized return on avg assets, operating* | | | | 1.30% | | | | 1.33% | | | | 1.33% | | | | 1.08% | | | | 1.05% |
| Annualized return on avg common equity, operating* | | | | 11.14% | | | | 11.51% | | | | 11.85% | | | | 9.31% | | | | 9.21% |
| Annualized return on avg tangible common equity, oper* | | | | 16.44% | | | | 14.96% | | | | 14.99% | | | | 10.92% | | | | 10.49% |
| Average loans to average deposits | | | | 85.29% | | | | 83.14% | | | | 80.20% | | | | 78.70% | | | | 82.40% |
| FTE Net Interest Margin* | | | | 4.08% | | | | 3.97% | | | | 3.92% | | | | 3.67% | | | | 3.79% |
| Efficiency Ratio | | | | 69.69% | | | | 73.28% | | | | 71.67% | | | | 72.74% | | | | 64.94% |
| Efficiency Ratio, operating* | | | | 59.06% | | | | 58.25% | | | | 57.70% | | | | 63.98% | | | | 62.93% |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| CREDIT QUALITY | | | | | | | | | | | | | | | |
| Allowance for loan losses (ALLL) as a % of total loans | | | | 0.49% | | | | 0.56% | | | | 0.56% | | | | 0.57% | | | | 0.68% |
| Nonperforming assets to tangible equity + ALLL | | | | 13.17% | | | | 10.05% | | | | 7.88% | | | | 6.99% | | | | 6.56% |
| Nonperforming assets to total loans + ORE | | | | 1.66% | | | | 1.33% | | | | 1.04% | | | | 0.97% | | | | 1.10% |
| Annualized QTD net charge-offs (recoveries) to total loans | | | | 0.02% | | | | 0.03% | | | | 0.003% | | | | (0.02%) | | | | 0.003% |
| | | | | | | | | | | | | | | | | | | | |
*See reconciliation of Non-GAAP financial measures |
| | | | | | | | | | | | | | | | | | | | |
| |
| |
| FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) |
| BALANCE SHEET | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
| Assets | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | | $ | 159,107 | | | $ | 122,371 | | | $ | 120,425 | | | $ | 162,521 | | | $ | 91,922 |
| Securities available-for-sale | | | | 492,701 | | | | 424,940 | | | | 437,011 | | | | 425,529 | | | | 356,893 |
| Securities held-to-maturity | | | | 6,000 | | | | 6,000 | | | | 6,000 | | | | 6,000 | | | | 6,000 |
| Other investments | | | | 16,227 | | | | 13,104 | | | | 10,320 | | | | 10,399 | | | | 9,969 |
| Total investment securities | | | | 514,928 | | | | 444,044 | | | | 453,331 | | | | 441,928 | | | | 372,862 |
| Loans held for sale | | | | 4,838 | | | | 4,269 | | | | 5,914 | | | | 2,538 | | | | 4,790 |
| Total loans | | | | 2,060,422 | | | | 1,748,483 | | | | 1,710,271 | | | | 1,516,579 | | | | 1,225,306 |
| Allowance for loan losses | | | | (10,065) | | | | (9,765) | | | | (9,512) | | | | (8,659) | | | | (8,288) |
| Loans, net | | | | 2,050,357 | | | | 1,738,718 | | | | 1,700,759 | | | | 1,507,920 | | | | 1,217,018 |
| Premises and equipment | | | | 74,783 | | | | 62,342 | | | | 62,289 | | | | 57,430 | | | | 46,426 |
| Other Real Estate | | | | 10,869 | | | | 8,453 | | | | 7,890 | | | | 7,357 | | | | 7,158 |
| Goodwill and other intangibles | | | | 112,916 | | | | 65,238 | | | | 66,105 | | | | 56,343 | | | | 24,670 |
| Other assets | | | | 76,188 | | | | 66,355 | | | | 64,976 | | | | 63,376 | | | | 48,392 |
| Total assets | | | $ | 3,003,986 | | | $ | 2,511,790 | | | $ | 2,481,689 | | | $ | 2,299,413 | | | $ | 1,813,238 |
| | | | | | | | | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | | $ | 570,148 | | | $ | 430,430 | | | $ | 459,402 | | | $ | 414,142 | | | $ | 301,989 |
| Interest-bearing deposits | | | | 1,887,311 | | | | 1,616,016 | | | | 1,637,833 | | | | 1,577,502 | | | | 1,168,576 |
| Total deposits | | | | 2,457,459 | | | | 2,046,446 | | | | 2,097,235 | | | | 1,991,644 | | | | 1,470,565 |
| Borrowings | | | | 85,500 | | | | 85,508 | | | | 10,516 | | | | 29,034 | | | | 104,072 |
| Subordinated debentures | | | | 80,521 | | | | 75,117 | | | | 75,192 | | | | 10,310 | | | | 10,310 |
| Other liabilities | | | | 17,252 | | | | 15,921 | | | | 12,920 | | | | 9,886 | | | | 5,823 |
| Total liabilities | | | | 2,640,732 | | | | 2,222,992 | | | | 2,195,863 | | | | 2,040,874 | | | | 1,590,770 |
| Total shareholders’ equity | | | | 363,254 | | | | 288,798 | | | | 285,826 | | | | 258,539 | | | | 222,468 |
| Total liabilities and shareholders’ equity | | | $ | 3,003,986 | | | $ | 2,511,790 | | | $ | 2,481,689 | | | $ | 2,299,413 | | | $ | 1,813,238 |
| | | | | | | | | | | | | | | | | | | | |
| |
| |
FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
| EARNINGS STATEMENT | | | Three Months Ended |
| | | 12/31/18 | | | 9/30/18 | | | 6/30/18 | | | 3/31/18 | | | 12/31/17 |
| Interest Income: | | | | | | | | | | | | | | | |
| Loans, including fees | | | $ | 25,184 | | | $ | 21,824 | | | $ | 21,155 | | | $ | 15,926 | | | $ | 14,687 |
| Investment securities | | | | 3,785 | | | | 3,126 | | | | 3,181 | | | | 2,661 | | | | 2,346 |
| Accretion of purchase accounting adjustments | | | | 1,532 | | | | 583 | | | | 559 | | | | 59 | | | | 57 |
| Other interest income | | | | 54 | | | | 95 | | | | 142 | | | | 112 | | | | 53 |
| Total interest income | | | | 30,555 | | | | 25,628 | | | | 25,037 | | | | 18,758 | | | | 17,143 |
| Interest Expense: | | | | | | | | | | | | | | | |
| Deposits | | | | 3,506 | | | | 2,740 | | | | 2,498 | | | | 1,840 | | | | 1,455 |
| Borrowings | | | | 482 | | | | 52 | | | | 147 | | | | 460 | | | | 392 |
| Subordinated debentures | | | | 1,179 | | | | 1,125 | | | | 774 | | | | 78 | | | | 105 |
| Accretion of purchase accounting adjustments | | | | 118 | | | | 42 | | | | 49 | | | | - | | | | (30) |
| Total interest expense | | | | 5,285 | | | | 3,959 | | | | 3,468 | | | | 2,378 | | | | 1,922 |
| Net interest income | | | | 25,270 | | | | 21,669 | | | | 21,569 | | | | 16,380 | | | | 15,221 |
| Provision for loan losses | | | | 574 | | | | 412 | | | | 857 | | | | 277 | | | | 122 |
| Net interest income after provision for loan losses | | | | 24,696 | | | | 21,257 | | | | 20,712 | | | | 16,103 | | | | 15,099 |
| | | | | | | | | | | | | | | | |
| Non-interest Income: | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | | 1,887 | | | | 1,538 | | | | 1,341 | | | | 1,027 | | | | 908 |
| Mortgage Income | | | | 969 | | | | 1,066 | | | | 1,213 | | | | 800 | | | | 1,102 |
| Interchange Fee Income | | | | 1,527 | | | | 1,180 | | | | 1,500 | | | | 1,040 | | | | 961 |
| Gain (loss) on securities, net | | | | 334 | | | | - | | | | (5) | | | | - | | | | 3 |
| Gain on sale of premises and equipment | | | | - | | | | - | | | | - | | | | - | | | | - |
| Financial Assistance Award/Bank Enterprise Award | | | | 950 | | | | 233 | | | | 917 | | | | - | | | | - |
| Other charges and fees | | | | 729 | | | | 1,057 | | | | 666 | | | | 592 | | | | 582 |
| Total non-interest income | | | | 6,396 | | | | 5,074 | | | | 5,632 | | | | 3,459 | | | | 3,556 |
| | | | | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | | 10,336 | | | | 9,266 | | | | 9,502 | | | | 7,789 | | | | 7,478 |
| Occupancy expense | | | | 2,281 | | | | 2,163 | | | | 2,034 | | | | 1,647 | | | | 1,427 |
| FDIC premiums | | | | 369 | | | | 278 | | | | 368 | | | | 367 | | | | 365 |
| Marketing | | | | 173 | | | | 60 | | | | 70 | | | | 80 | | | | 118 |
| Amortization of core deposit intangibles | | | | 750 | | | | 349 | | | | 356 | | | | 201 | | | | 173 |
| Other professional services | | | | 452 | | | | 847 | | | | 438 | | | | 189 | | | | 194 |
| Acquisition charges | | | | 4,155 | | | | 4,059 | | | | 3,838 | | | | 1,758 | | | | 384 |
| Other non-interest expense | | | | 3,733 | | | | 2,764 | | | | 3,074 | | | | 2,566 | | | | 2,251 |
| Total Non-interest expense | | | | 22,249 | | | | 19,786 | | | | 19,680 | | | | 14,597 | | | | 12,390 |
| Earnings before income taxes | | | | 8,843 | | | | 6,545 | | | | 6,664 | | | | 4,965 | | | | 6,265 |
| Income tax expense | | | | 1,982 | | | | 1,383 | | | | 1,419 | | | | 1,008 | | | | 3,851 |
| Net income available to common shareholders | | | $ | 6,861 | | | $ | 5,162 | | | $ | 5,245 | | | $ | 3,957 | | | $ | 2,414 |
| | | | | | | | | | | | | | | | |
| Diluted earnings per common share | | | $ | 0.48 | | | $ | 0.39 | | | $ | 0.40 | | | $ | 0.34 | | | $ | 0.23 |
| Diluted earnings per common share, operating* | | | $ | 0.64 | | | $ | 0.62 | | | $ | 0.62 | | | $ | 0.46 | | | $ | 0.45 |
| *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 | | | | | | | $ | 84,089 | | | | | $ | 56,903 |
| Investment securities | | | | | | | | 12,753 | | | | | | 8,852 |
| Accretion of purchase accounting adjustments | | | | | | | | 2,733 | | | | | | 224 |
| Other interest income | | | | | | | | 403 | | | | | | 390 |
| Total interest income | | | | | | | | 99,978 | | | | | | 66,069 |
| Interest Expense: | | | | | | | | | | | | |
| Deposits | | | | | | | | 10,584 | | | | | | 5,453 |
| Borrowings | | | | | | | | 1,142 | | | | | | 1,372 |
| Subordinated debentures | | | | | | | | 3,156 | | | | | | 276 |
| Amortization (Accretion) of purchase accounting adjustments | | | | | | | | 209 | | | | | | (192) |
| Total interest expense | | | | | | | | 15,091 | | | | | | 6,909 |
| Net interest income | | | | | | | | 84,887 | | | | | | 59,160 |
| Provision for loan losses | | | | | | | | 2,120 | | | | | | 506 |
| Net interest income after provision for loan losses | | | | | | | | 82,767 | | | | | | 58,654 |
| | | | | | | | | | | | | |
| Non-interest Income: | | | | | | | | | | | | |
| Service charges on deposit accounts | | | | | | | | 5,793 | | | | | | 3,600 |
| Mortgage Income | | | | | | | | 4,048 | | | | | | 4,502 |
| Interchange Fee Income | | | | | | | | 5,247 | | | | | | 3,758 |
| Gain (loss) on securities, net | | | | | | | | 329 | | | | | | (16) |
| Gain on sale of premises and equipment | | | | | | | | - | | | | | | - |
| Financial Assistance Award/Bank Enterprise Award | | | | | | | | 2,100 | | | | | | - |
| Other charges and fees | | | | | | | | 3,044 | | | | | | 2,519 |
| Total non-interest income | | | | | | | | 20,561 | | | | | | 14,363 |
| | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | |
| Salaries and employee benefits | | | | | | | | 36,893 | | | | | | 30,052 |
| Occupancy expense | | | | | | | | 8,125 | | | | | | 5,535 |
| FDIC premiums | | | | | | | | 1,382 | | | | | | 1,252 |
| Marketing | | | | | | | | 382 | | | | | | 336 |
| Amortization of core deposit intangibles | | | | | | | | 1,657 | | | | | | 664 |
| Other professional services | | | | | | | | 1,926 | | | | | | 1,395 |
| Acquisition charges | | | | | | | | 13,810 | | | | | | 6,711 |
| Other non-interest expense | | | | | | | | 12,136 | | | | | | 9,501 |
| Total Non-interest expense | | | | | | | | 76,311 | | | | | | 55,446 |
| Earnings before income taxes | | | | | | | | 27,017 | | | | | | 17,571 |
| Income tax expense | | | | | | | | 5,792 | | | | | | 6,955 |
| Net income available to common shareholders | | | | | | | $ | 21,225 | | | | | $ | 10,616 |
| | | | | | | | | | | | | |
| Diluted earnings per common share | | | | | | | $ | 1.62 | | | | | $ | 1.11 |
| Diluted earnings per common share, operating* | | | | | | | $ | 2.29 | | | | | $ | 1.76 |
| *See reconciliation of Non-GAAP financial measures | | | | | | | | | | | | |
| | | | | | | | | | | | |
| |
| |
| FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) |
| COMPOSITION OF LOANS | | | Dec 31,
2018 | | | Percent
of Total | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 | | | Percent
of Total |
| Commercial, financial and agricultural | | | $ | 301,182 | | | 14.6% | | | $ | 246,401 | | | $ | 228,643 | | | $ | 213,118 | | | $ | 165,780 | | | 13.5% |
| Real estate – construction | | | | 298,718 | | | 14.5% | | | | 251,240 | | | | 229,164 | | | | 213,712 | | | | 183,328 | | | 14.9% |
| Real estate – commercial | | | | 776,880 | | | 37.6% | | | | 654,040 | | | | 658,096 | | | | 561,153 | | | | 467,484 | | | 38.0% |
| Real estate – residential | | | | 617,804 | | | 29.9% | | | | 529,515 | | | | 546,120 | | | | 475,868 | | | | 385,099 | | | 31.3% |
| Lease Financing Receivable | | | | 2,891 | | | 0.1% | | | | 2,659 | | | | 2,476 | | | | 2,433 | | | | 2450 | | | 0.2% |
| Obligations of States & subdivisions | | | | 16,941 | | | 0.8% | | | | 16,374 | | | | 10,627 | | | | 15,861 | | | | 3,109 | | | 0.3% |
| Consumer | | | | 46,006 | | | 2.2% | | | | 48,254 | | | | 35,145 | | | | 34,434 | | | | 18,056 | | | 1.5% |
| Loans held for sale | | | | 4,838 | | | 0.3% | | | | 4,269 | | | | 5,914 | | | | 2,538 | | | | 4,790 | | | 0.3% |
| Total loans | | | $ | 2,065,260 | | | 100% | | | $ | 1,752,752 | | | $ | 1,716,185 | | | $ | 1,519,117 | | | $ | 1,230,096 | | | 100% |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| COMPOSITION OF DEPOSITS | | | Dec 31,
2018 | | | Percent of
Total | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 | | | Percent
of Total |
| Noninterest bearing | | | $ | 570,148 | | | 23.2% | | | $ | 430,430 | | | $ | 459,402 | | | $ | 414,142 | | | $ | 301,989 | | | 20.5% |
| NOW and other | | | | 835,434 | | | 34.0% | | | | 705,851 | | | | 731,617 | | | | 761,318 | | | | 601,694 | | | 40.9% |
| Money Market/Savings | | | | 566,276 | | | 23.0% | | | | 503,772 | | | | 519,516 | | | | 434,569 | | | | 283,579 | | | 19.3% |
| Time Deposits of less than $250,000 | | | | 384,030 | | | 15.6% | | | | 321,619 | | | | 308,086 | | | | 295,317 | | | | 220,951 | | | 15.0% |
| Time Deposits of $250,000 or more | | | | 101,571 | | | 4.2% | | | | 84,774 | | | | 78,614 | | | | 86,298 | | | | 62,352 | | | 4.3% |
| Total Deposits | | | $ | 2,457,459 | | | 100% | | | $ | 2,046,446 | | | $ | 2,097,235 | | | $ | 1,991,644 | | | $ | 1,470,565 | | | 100% |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| ASSET QUALITY DATA | | | Dec 31,
2018 | | | | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 | | | |
| Nonaccrual loans | | | $ | 21,895 | | | | | | $ | 13,572 | | | $ | 8,440 | | | $ | 5,746 | | | $ | 5,674 | | | |
| Loans past due 90 days and over | | | | 1,325 | | | | | | | 805 | | | | 940 | | | | 1,096 | | | | 285 | | | |
| Total nonperforming loans | | | | 23,220 | | | | | | | 14,377 | | | | 9,380 | | | | 6,842 | | | | 5,959 | | | |
| Other real estate | | | | 10,869 | | | | | | | 8,453 | | | | 7,890 | | | | 7,357 | | | | 7,158 | | | |
| Nonaccrual securities | | | | 208 | | | | | | | 616 | | | | 616 | | | | 616 | | | | 408 | | | |
| Total nonperforming assets | | | $ | 34,297 | | | | | | $ | 23,446 | | | $ | 17,886 | | | $ | 14,815 | | | $ | 13,525 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to total assets | | | | 1.14% | | | | | | | 0.93% | | | | 0.72% | | | | 0.64% | | | | 0.75% | | | |
| Nonperforming assets to total loans + ORE | | | | 1.66% | | | | | | | 1.33% | | | | 1.04% | | | | 0.97% | | | | 1.10% | | | |
| ALLL to nonperforming loans | | | | 43.35% | | | | | | | 67.92% | | | | 101.41% | | | | 128.13% | | | | 139.08% | | | |
| ALLL to total loans | | | | 0.49% | | | | | | | 0.56% | | | | 0.56% | | | | 0.57% | | | | 0.68% | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Quarter-to-date net charge-offs (recs) | | | $ | 93 | | | | | | $ | 151 | | | $ | 12 | | | $ | (94) | | | $ | 9 | | | |
| Annualized QTD net chg/offs (recs) to loans | | | | 0.02% | | | | | | | 0.03% | | | | 0.003% | | | | (0.02%) | | | | 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 | | | December 31, 2018 | | | September 30, 2018 | | | June 30, 2018 | | | March 31, 2018 | | | December 31, 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 | | | $ | 369,820 | | | $ | 2,808 | | | 3.04 | % | | | $ | 331,601 | | | $ | 2,369 | | | 2.86 | % | | | $ | 328,898 | | | $ | 2,423 | | | 2.95 | % | | | $ | 274,595 | | | $ | 1,986 | | | 2.89 | % | | | $ | 271,459 | | | $ | 1,760 | | | 2.59 | % |
Tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | 114,055 | | | | 1,003 | | | 3.52 | % | | | | 116,235 | | | | 1,013 | | | 3.49 | % | | | | 117,875 | | | | 1,015 | | | 3.44 | % | | | | 106,161 | | | | 904 | | | 3.41 | % | | | | 93,645 | | | | 888 | | | 3.79 | % |
| Total investment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | 483,875 | | | | 3,811 | | | 3.15 | % | | | | 447,836 | | | | 3,382 | | | 3.02 | % | | | | 446,773 | | | | 3,438 | | | 3.08 | % | | | | 380,756 | | | | 2,890 | | | 3.04 | % | | | | 365,104 | | | | 2,648 | | | 2.90 | % |
| FFS & Int bearing dep | | | | - | | | | | | | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| in other banks | | | | 57,655 | | | | 282 | | | 1.96 | % | | | | 42,174 | | | | 95 | | | 0.90 | % | | | | 85,321 | | | | 142 | | | 0.67 | % | | | | 105,689 | | | | 112 | | | 0.42 | % | | | | 59,184 | | | | 52 | | | 0.35 | % |
| Loans | | | | 1,959,179 | | | | 26,716 | | | 5.45 | % | | | | 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 | % |
| Total Interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| earning assets | | | | 2,500,709 | | | | 30,809 | | | 4.93 | % | | | | 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 | % |
| Other assets | | | | 311,503 | | | | | | | | | | 259,713 | | | | | | | | | | 214,345 | | | | | | | | | | 174,433 | | | | | | | | | | 170,002 | | | | | | |
| Total assets | | | $ | 2,812,212 | | | | | | | | | $ | 2,470,607 | | | | | | | | | $ | 2,443,176 | | | | | | | | | $ | 1,986,150 | | | | | | | | | $ | 1,810,252 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | $ | 1,776,780 | | | $ | 3,615 | | | 0.81 | % | | | $ | 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 | % |
| Repo | | | | - | | | | - | | | 0.00 | % | | | | - | | | | - | | | 0.00 | % | | | | - | | | | - | | | 0.00 | % | | | | - | | | | - | | | 0.00 | % | | | | - | | | | - | | | 0.00 | % |
| Fed funds purchased | | | | 1,455 | | | | 18 | | | 4.95 | % | | | | 1,893 | | | | 27 | | | 5.71 | % | | | | 1,382 | | | | 9 | | | 2.60 | % | | | | 202 | | | | 1 | | | 1.98 | % | | | | 2,543 | | | | 11 | | | 1.73 | % |
| FHLB & FTN | | | | 92,352 | | | | 465 | | | 2.01 | % | | | | 22,469 | | | | 25 | | | 0.45 | % | | | | 22,959 | | | | 138 | | | 2.40 | % | | | | 71,944 | | | | 459 | | | 2.55 | % | | | | 103,421 | | | | 381 | | | 1.47 | % |
| Subordinated | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| debentures | | | | 75,391 | | | | 1,187 | | | 6.30 | % | | | | 75,124 | | | | 1,125 | | | 5.99 | % | | | | 54,036 | | | | 774 | | | 5.73 | % | | | | 10,310 | �� | | | 78 | | | 3.03 | % | | | | 10,310 | | | | 105 | | | 4.07 | % |
| Total interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| bearing liabilities | | | | 1,945,978 | | | | 5,285 | | | 1.09 | % | | | | 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 | % |
| Other liabilities | | | | 537,984 | | | | | | | | | | 457,087 | | | | | | | | | | 414,154 | | | | | | | | | | 342,514 | | | | | | | | | | 315,012 | | | | | | |
| Shareholders' equity | | | | 328,250 | | | | | | | | | | 284,839 | | | | | | | | | | 274,535 | | | | | | | | | | 230,255 | | | | | | | | | | 205,580 | | | | | | |
| Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| shareholders' | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| equity | | | $ | 2,812,212 | | | | | | | | | $ | 2,470,607 | | | | | | | | | $ | 2,443,176 | | | | | | | | | $ | 1,989,150 | | | | | | | | | $ | 1,810,252 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| income (FTE)* | | | | | | $ | 25,524 | | | 3.84 | % | | | | | | $ | 21,925 | | | 3.77 | % | | | | | | $ | 21,826 | | | 3.75 | % | | | | | | $ | 16,609 | | | 3.52 | % | | | | | | $ | 15,523 | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE)* | | | | | | 4.08 | % | | | | | | | | | 3.97 | % | | | | | | | | | 3.92 | % | | | | | | | | | 3.67 | % | | | | | | | | | 3.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Core net interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| margin* | | | | | | | | | 3.84 | % | | | | | | | | | 3.86 | % | | | | | | | | | 3.82 | % | | | | | | | | | 3.65 | % | | | | | | | | | 3.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| *See reconciliation for Non-GAAP financial measures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| | | | |
| FIRST BANCSHARES, INC and SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) |
| | | | | Three Months Ended |
Per Common Share Data | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
| Book value per common share | | | | | $ | 24.49 | | | $ | 22.09 | | | $ | 21.88 | | | $ | 20.95 | | | $ | 19.92 |
| Effect of intangible assets per share | | | | | | 7.61 | | | | 4.99 | | | | 5.06 | | | | 4.56 | | | | 2.21 |
| Tangible book value per common share | | | | | $ | 16.88 | | | $ | 17.10 | | | $ | 16.82 | | | $ | 16.39 | | | $ | 17.71 |
| | | | | | | | | | | | | | | | | | |
| Diluted earnings per share | | | | | $ | 0.48 | | | $ | 0.39 | | | $ | 0.40 | | | $ | 0.34 | | | $ | 0.23 |
| Effect of acquisition charges | | | | | | 0.29 | | | | 0.31 | | | | 0.29 | | | | 0.15 | | | | 0.04 |
| Tax on acquisition charges | | | | | | (0.07) | | | | (0.08) | | | | (0.07) | | | | (0.03) | | | | (0.01) |
| Effect of gain on sale of securities | | | | | | (0.02) | | | | - | | | | - | | | | - | | | | - |
| Tax on gain on sale | | | | | | .01 | | | | - | | | | - | | | | - | | | | - |
| Effect of Treasury awards | | | | | | (0.07) | | | | - | | | | - | | | | - | | | | - |
| Tax on Treasury awards | | | | | | 0.02 | | | | - | | | | - | | | | - | | | | - |
| Charge related to reduction in deferred tax asset | | | | | | - | | | | - | | | | - | | | | - | | | | 0.19 |
| Diluted earnings per share, operating | | | | | $ | 0.64 | | | $ | 0.62 | | | $ | 0.62 | | | $ | 0.46 | | | $ | 0.45 |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | Year to Date | | | |
| | | | | | | | 2018 | | | | | | 2017 | | | |
| Diluted earnings per share | | | | | | | | $ | 1.62 | | | | | | $ | 1.11 | | | |
| Effect of acquisition charges | | | | | | | | | 1.05 | | | | | | | 0.70 | | | |
| Tax on acquisition charges | | | | | | | | | (0.24) | | | | | | | (0.27) | | | |
| Effect of gain on sale of securities | | | | | | | | | (0.03) | | | | | | | - | | | |
| Tax on gain on sale | | | | | | | | | 0.01 | | | | | | | - | | | |
| Effect of Treasury awards | | | | | | | | | (0.16) | | | | | | | - | | | |
| Tax on Treasury awards | | | | | | | | | 0.04 | | | | | | | - | | | |
| Charge related to reduction in deferred tax asset | | | | | | | | | - | | | | | | | 0.22 | | | |
| Diluted earnings per share, operating | | | | | | | | $ | 2.29 | | | | | | $ | 1.76 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | Year to Date | | | |
| | | | | | | | 2018 | | | | | | 2017 | | | |
| Net income available to common shareholders | | | | | | | | $ | 21,225 | | | | | | $ | 10,616 | | | |
| Acquisition charges | | | | | | | | | 13,810 | | | | | | | 6,711 | | | |
| Tax on acquisition charges | | | | | | | | | (3,221) | | | | | | | (2,538) | | | |
| Gain on sale of securities | | | | | | | | | (342) | | | | | | | - | | | |
| Tax on gain on sale | | | | | | | | | 86 | | | | | | | - | | | |
| Treasury awards | | | | | | | | | (2,100) | | | | | | | - | | | |
| Tax on Treasury awards | | | | | | | | | 532 | | | | | | | - | | | |
| Charge related to reduction in deferred tax asset | | | | | | | | | - | | | | | | | 2,081 | | | |
| Net earnings available to common shareholders, operating | | | | | | | | $ | 29,990 | | | | | | $ | 16,870 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | Three Months Ended |
| Average Balance Sheet Data | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
Total average assets | | A | | | $ | 2,812,212 | | | $ | 2,470,607 | | | $ | 2,443,176 | | | $ | 1,986,150 | | | $ | 1,810,252 |
Total average earning assets | | B | | | $ | 2,500,709 | | | $ | 2,210,894 | | | $ | 2,228,831 | | | $ | 1,811,717 | | | $ | 1,640,250 |
| | | | | | | | | | | | | | | | | | |
Common Equity | | C | | | $ | 328,250 | | | $ | 284,839 | | | $ | 274,535 | | | $ | 230,255 | | | $ | 205,580 |
| Less intangible assets | | | | | | 105,848 | | | | 65,762 | | | | 57,443 | | | | 33,929 | | | | 25,258 |
Tangible common equity | | D | | | $ | 222,402 | | | $ | 219,077 | | | $ | 217,092 | | | $ | 196,326 | | | $ | 180,322 |
| | | | | | | | | | | | |
| | | | | | Three Months Ended |
| Net Interest Income Fully Tax Equivalent | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
Net interest income | | E | | | $ | 25,270 | | | $ | 21,669 | | | $ | 21,569 | | | $ | 16,380 | | | $ | 15,221 |
| Tax-exempt investment income | | | | | | (749) | | | | (757) | | | | (758) | | | | (675) | | | | (586) |
| Taxable investment income | | | | | | 1,003 | | | | 1,013 | | | | 1,015 | | | | 904 | | | | 888 |
Net Interest Income Fully Tax Equivalent | | F | | | $ | 25,524 | | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 |
| | | | | | | | | | | | | | | | | | |
Annualized Net Interest Margin | | E/B | | | | 4.04% | | | | 3.92% | | | | 3.87% | | | | 3.62% | | | | 3.71% |
Annualized Net Interest Margin, Fully Tax Equivalent | | F/B | | | | 4.08% | | | | 3.97% | | | | 3.92% | | | | 3.67% | | | | 3.79% |
| | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended |
| Core Net Interest Margin | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
| Net interest income (FTE) | | | | | $ | 25,524 | | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 |
| Less purchase accounting adjustments | | | | | | 1,414 | | | | 541 | | | | 510 | | | | 59 | | | | 87 |
Net interest income, net of purchase accounting adj | | G | | | $ | 24,110 | | | $ | 21,384 | | | $ | 21,316 | | | $ | 16,550 | | | $ | 15,436 |
| | | | | | | | | | | | | | | | | | |
| Total average earning assets | | | | | $ | 2,500,709 | | | $ | 2,210,894 | | | $ | 2,228,831 | | | $ | 1,811,717 | | | $ | 1,640,250 |
| Add average balance of loan valuation discount | | | | | | 12,803 | | | | 6,836 | | | | 6,046 | | | | 1,578 | | | | 1,558 |
Avg earning assets, excluding loan valuation discount | | H | | | $ | 2,513,511 | | | $ | 2,217,730 | | | $ | 2,234,877 | | | $ | 1,813,295 | | | $ | 1,641,808 |
| | | | | | | | | | | | | | | | | | |
Core net interest margin | | G/H | | | | 3.84% | | | | 3.86% | | | | 3.82% | | | | 3.65% | | | | 3.76% |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended |
| Efficiency Ratio | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
| Operating Expense | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | | $ | 22,245 | | | $ | 19,786 | | | $ | 19,680 | | | $ | 14,598 | | | $ | 12,390 |
| Pre-tax non-operating expenses | | | | | | (4,155) | | | | (4,059) | | | | (3,838) | | | | (1,758) | | | | (384) |
Adjusted Operating Expense | | I | | | $ | 18,090 | | | $ | 15,727 | | | $ | 15,842 | | | $ | 12,840 | | | $ | 12,008 |
| | | | | | | | | | | | | | | | | | |
| Operating Revenue | | | | | | | | | | | | | | | | | |
| Net interest income, FTE | | | | | $ | 25,524 | | | $ | 21,925 | | | $ | 21,826 | | | $ | 16,609 | | | $ | 15,523 |
| Total non-interest income | | | | | | 6,396 | | | | 5,074 | | | | 5,632 | | | | 3,459 | | | | 3,556 |
| Pre-tax non-operating items | | | | | | (1,292) | | | | - | | | | - | | | | - | | | | - |
Adjusted Operating Revenue | | J | | | $ | 30,628 | | | $ | 26,999 | | | $ | 27,458 | | | $ | 20,068 | | | $ | 19,079 |
| | | | | | | | | | | | | | | | | | |
Efficiency Ratio, operating | | I/J | | | | 59.06% | | | | 58.25% | | | | 57.70% | | | | 63.98% | | | | 62.93% |
| | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended |
| Return Ratios | | | | | Dec 31,
2018 | | | Sept 30,
2018 | | | June 30,
2018 | | | Mar 31,
2018 | | | Dec 31,
2017 |
Net income available to common shareholders | | K | | | $ | 6,861 | | | $ | 5,162 | | | $ | 5,245 | | | $ | 3,957 | | | $ | 2,414 |
| Acquisition charges | | | | | | 4,155 | | | | 4,059 | | | | 3,838 | | | | 1,758 | | | | 384 |
| Tax on acquisition charges | | | | | | (910) | | | | (1,027) | | | | (948) | | | | (355) | | | | (148) |
| Gain on sale | | | | | | (342) | | | | - | | | | - | | | | - | | | | - |
| Tax on gain on sale | | | | | | 86 | | | | - | | | | - | | | | - | | | | - |
| Treasury awards | | | | | | (950) | | | | - | | | | - | | | | - | | | | - |
| Tax on Treasury awards | | | | | | 242 | | | | - | | | | - | | | | - | | | | - |
| Charge related to reduction in deferred tax asset | | | | | | - | | | | - | | | | - | | | | - | | | | 2,081 |
Net earnings available to common shareholders, oper | | L | | | $ | 9,142 | | | $ | 8,194 | | | $ | 8,135 | | | $ | 5,360 | | | $ | 4,731 |
| | | | | | | | | | | | | | | | | | |
Annualized return on avg assets | | K/A | | | | 0.98% | | | | 0.84% | | | | 0.86% | | | | 0.80% | | | | 0.53% |
Annualized return on avg assets, oper | | L/A | | | | 1.30% | | | | 1.33% | | | | 1.33% | | | | 1.08% | | | | 1.05% |
Annualized return on avg common equity, oper | | L/C | | | | 11.14% | | | | 11.51% | | | | 11.85% | | | | 9.31% | | | | 9.21% |
Annualized return on avg tangible common equity, oper | | L/D | | | | 16.44% | | | | 14.96% | | | | 14.99% | | | | 10.92% | | | | 10.49% |
| | | | | | | | | | | | | | | | | | |
| Mortgage Department | | | | | | | | | | | | | | | | | |
| Net Interest Income after provision for loan losses | | | | | $ | 267 | | | $ | 154 | | | $ | 214 | | | $ | 189 | | | $ | 272 |
| Loan fee income | | | | | | 969 | | | | 1,066 | | | | 1,213 | | | | 800 | | | | 1,102 |
| Salaries and employee benefits | | | | | | 774 | | | | 855 | | | | 903 | | | | 849 | | | | 806 |
| Other non-interest expense | | | | | | 124 | | | | 136 | | | | 127 | | | | 97 | | | | 101 |
| Earnings before income taxes | | | | | $ | 338 | | | $ | 229 | | | $ | 397 | | | $ | 43 | | | $ | 467 |
| | | | | | | | | | | | | | | | | | | | | | |
CONTACT:
M. Ray “Hoppy” Cole
Chief Executive Officer
Dee Dee Lowery
Chief Financial Officer
(601) 268-8998
