The First Bancshares, Inc. Reports a 22% Increase in Quarterly Net Earnings and Declares Quarterly Dividends

HATTIESBURG, Miss.--()--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported net earnings available to common shareholders of $2.6 million for the second quarter of 2016, compared to net earnings available to common shareholders of $2.1 million reported for the second quarter of 2015 and $2.5 million in net earnings available to common shareholders for the first quarter of 2016. Diluted earnings for the second quarter of 2016 were $0.47 per common share, compared to $0.39 per common share reported for the second quarter of 2015 and $0.46 per common share reported for the first quarter of 2016. Second quarter 2016 net earnings did not include any non-operating income or expenses; therefore, operating earnings per share for the second quarter of 2016 were $0.47. The first quarter 2016 included a non-operating item, representing $0.03 per share in adjustments. The second quarter of 2015 net earnings did not include any non-operating income or expenses.

Significant Events during Quarter:

  • Hired Market President in Madison, MS
  • Hired Treasury Management Executive
  • Signed purchase agreement for a branch in Baton Rouge, LA to replace facility under lease

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “Results for the 2nd quarter of 2016 continued our trend of strong growth in our core franchise. Substantial organic loan growth combined with an increase in mortgage income were the major drivers of a 22% increase in net income year over year. We continue to focus on improved operating results and market share growth across the Gulf South region.

During the quarter, Wilson E. “Billy” Brunt joined our team as Madison County Market President which is in the Jackson, MS metropolitan area. Billy is a seasoned and talented banker with over 15 years of in-market experience. Under his leadership, we hope to build a full service banking operation to leverage the substantial market share enjoyed by The Mortgage Connection, which we acquired last December.

J.P. Guinn joined our team as SVP of Treasury Management during the quarter. J.P. has an extensive background in Treasury Management with 26 years of banking experience and 16 years in Treasury Management. J.P. will head up our newly created Treasury Management Division to consolidate and formalize our product offerings as well as manage new product development for our client base company wide.”

Balance Sheet

Consolidated assets decreased $17.1 million or 1.4% to $1.2 billion for the quarter ended June 30, 2016. Total loans were $824.1 million at June 30, 2016 as compared to $797.8 million at March 31, 2016 representing an increase of 3.3%. Increased loan volume was spread across all real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $26.6 million or 9.8% quarter over quarter with $17.9 million in owner occupied properties.

Total deposits decreased $8.7 million or .8% to $1,032.4 million for the quarter ended June 30, 2016. This decrease reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $20.1 million or 2.8% for quarter ended June 30, 2016.

Asset Quality

Nonperforming assets totaled $11.1 million at June 30, 2016, a decrease of $0.2 million compared to $11.3 million at March 31, 2016. The ALLL/total loans ratio was 0.88% at June 30, 2016 and 0.88% at March 31, 2016. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.06% of loans at June 30, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.03%) for the quarter ended June 30, 2016 compared to (0.02%) for the quarter ended March 31, 2016. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.

Energy Loans

At June 30, 2016 the company had direct energy related loans of $19.3 million, representing 2.3% of the total loan portfolio. During the quarter, the company received pay downs of $3 million. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production.

Second Quarter 2016 vs. Second Quarter 2015 Earnings Comparison

Second quarter 2016 net earnings available to common shareholders totaled $2.6 million compared to $2.1 million for the second quarter of 2015. Revenues from consolidated operations increased $1,956,000 in quarterly comparison. Net interest income increased $639,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $1,107,000 in quarterly comparison for the second quarter of 2016 as compared to the second quarter of 2015 consisting mainly of increased mortgage income of $827,000.

Second quarter 2016 noninterest expenses increased $829,000, or 10.2% as compared to second quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $787,000 of which $391,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015 as well as additional salaries and benefits related to the banking team in Mobile and lender in Madison along with Treasury Management personnel.

Fully taxable-equivalent (“FTE”) net interest income totaled $10.1 million and $9.5 million for the second quarter of 2016 and 2015, respectively. The FTE net interest income increased $645,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $51,000 on net interest income for the second quarter comparisons. Second quarter 2016 net interest margin of 3.68% includes 1 bps related to purchase accounting adjustments.

Investment securities totaled $258.5 million, or 21.1% of total assets at June 30, 2016, versus $249.9 million, or 22.4% of total assets at June 30, 2015. The average volume of investment securities increased $5.8 million in prior year quarterly comparison. The average tax equivalent yield on investment securities increased 4 bps to 2.65%. The investment portfolio had a net unrealized gain of $4.5 million at June 30, 2016 as compared to $0.7 million at June 30, 2015.

The average yield on all earnings assets increased 2 basis points in prior year quarterly comparison, from 4.03% for the second quarter of 2015 to 4.05% for the second quarter of 2016. This increase was offset by an increase in average interest expense of 6 basis points from 0.39% for the second quarter of 2015 to 0.45% for the second quarter of 2016.

Second Quarter 2016 vs First Quarter 2016 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders increased $44,000 to $2.6 million.

FTE net interest income increased $187,000 to $10.1 million from $9.9 million in sequential-quarter comparison. The increase was due primarily to increased loan volume.

The average yield on all earnings assets increased 3 basis points in sequential-quarter comparison, from 4.02% for the first quarter of 2016 to 4.05% for the second quarter of 2016.

Noninterest income increased $478,000 net in sequential-quarter comparison consisting of an increase in mortgage income of $539,000 which was partially offset by the one-time gain of $260,000 related to the conversion of our debit card provider during the first quarter.

Noninterest expenses increased $526,000 in sequential-quarter comparison which includes an increase in salaries and benefits of $251,000. Of this amount, $120,000 relates to the acquisition of The Mortgage Connection, LLC that occurred in December 2015. The increase in salaries and benefits also reflect the hiring of the Market President in Madison, the treasury management executive as well as the lending team in Mobile.

Year to Date Earnings Comparison

In year-over-year comparison, net earnings available to common shareholders increased $1.1 million, or 25.7%, from $4.0 million at June 30, 2015 to $5.1 million at June 30, 2016. Net interest income increased $1.4 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.

Noninterest income increased $1.7 million in year-over-year comparison mainly consisting of increases in mortgage income of $1.1 million.

Noninterest expenses increased $1.4 million in year-over-year comparison consisting of increases in salaries and benefits of $1.3 million relating to the acquisition of The Mortgage Connection, LLC as well as salaries and benefits related to the lender in Madison along with the executive for Treasury Management.

Dividends

The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on August 25, 2016 to shareholders of record as of the close of business on August 8, 2016.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in south Mississippi, Louisiana and south Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.

Forward Looking Statements

This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.

 
 
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS DATA      

Quarter

Ended

6/30/16

   

Quarter

Ended

3/31/16

   

Quarter

Ended

12/31/15

   

Quarter

Ended

9/30/15

   

Quarter

Ended

6/30/15

Total Interest Income       $ 10,871       $ 10,597       $ 10,417       $ 10,080       $ 10,022  
Total Interest Expense         1,016         922         804         793         806  
Net Interest Income         9,855         9,675         9,613         9,287         9,216  
FTE net interest income         10,099         9,912         9,846         9,512         9,454  
Provision for loan losses         204         190         10         250         -  
Non-interest income         2,961         2,483         1,903         1,982         1,854  
Non-interest expense         8,921         8,395         8,275         7,977         8,092  
Earnings before income taxes         3,691         3,573         3,231         3,042         2,978  
Income tax expense         1,042         969         873         815         793  
Net earnings         2,649         2,604         2,358         2,227         2,185  
Dividends and accretion on preferred stock         86         85         85         86         86  
Net earnings available to common shareholders       $ 2,563       $ 2,519       $ 2,273       $ 2,141       $ 2,099  
                                 
PER COMMON SHARE DATA                                
Basic earnings per share       $ 0.47       $ 0.47       $ 0.42       $ 0.40       $ 0.39  
Diluted earnings per share         0.47         0.46         0.42         0.39         0.39  
Diluted earnings per share, operating*         0.47         0.43         0.40         0.39         0.39  
Quarterly dividends per share         .0375         .0375         .0375         .0375         .0375  
Book value per common share at end of period         17.15         16.58         16.05         15.72         15.13  
Tangible common book value at period end         14.26         13.67         13.10         13.02         12.41  
Market price at end of period         17.27         15.63         18.34         17.47         16.65  
Shares outstanding at period end         5,432,014         5,432,014         5,376,665         5,376,665         5,374,415  
Weighted average shares outstanding:                                
Basic         5,432,014         5,415,339         5,376,665         5,374,790         5,366,495  
Diluted         5,490,592         5,478,703         5,449,851         5,441,980         5,424,242  
                                 
AVERAGE BALANCE SHEET DATA                                
Total assets       $ 1,210,707       $ 1,196,328       $ 1,131,924       $ 1,109,944       $ 1,119,648  
Loans and leases         809,806         779,418         757,036         731,818         728,416  
Total deposits         1,036,914         964,681         946,849         953,229         973,776  
Total common equity         88,643         87,155         84,122         82,045         79,986  
Total tangible common equity*         72,885         71,297         69,514         67,492         65,334  
Total equity         105,766         104,278         101,245         99,168         97,109  
                                 
SELECTED RATIOS                                
Annualized return on avg assets         .88 %       .87 %       .83 %       .80 %       .78 %
Annualized return on avg assets, operating*         .85 %       .78 %       .76 %       .78 %       .75 %
Annualized return on avg common equity, operating*         11.57 %       10.69 %       10.27 %       10.44 %       10.50 %
Annualized return on avg tangible common equity, oper*         14.07 %       13.07 %       12.43 %       12.69 %       12.85 %
Average loans to average deposits         78.10 %       80.80 %       79.95 %       76.77 %       74.80 %
Taxable-equivalent net interest margin         3.68 %       3.68 %       3.81 %       3.79 %       3.71 %
Efficiency Ratio         68.31 %       67.73 %       70.43 %       69.40 %       71.56 %
                                 
CREDIT QUALITY                                
Allowance for loan losses (ALLL) as a % of total loans         .88 %       .88 %       .87 %       .90 %       .88 %
Nonperforming assets to tangible equity + ALLL         10.93 %       11.43 %       11.55 %       13.28 %       12.33 %
Nonperforming assets to total loans + ORE         1.34 %       1.40 %       1.40 %       1.66 %       1.51 %
Annualized QTD net charge-offs (recoveries) to total loans         (0.03 %)       (0.02 %)       (0.002 %)       (0.03 %)       (0.27 %)

*See reconciliation of Non-GAAP financial measures

 
 
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET      

June 30,

2016

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

Assets                                
Cash and cash equivalents       $ 54,777       $ 95,965       $ 41,259       $ 65,233       $ 62,021  
Securities available-for-sale         242,855         253,126         239,732         239,631         236,476  
Securities held-to-maturity         6,025         6,851         7,092         7,233         7,651  
Other investments         9,578         9,570         8,135         6,249         5,787  
Total investment securities         258,458         269,547         254,959         253,113         249,914  
Loans held for sale         8,937         6,095         3,974         1,058         1,864  
Total loans         824,083         797,764         772,515         746,588         731,037  
Allowance for loan losses         (7,259 )       (6,982 )       (6,747 )       (6,734 )       (6,419 )
Loans, net         816,824         790,782         765,768         739,854         724,618  
Premises and equipment         33,502         33,353         33,623         33,610         33,571  
Other Real Estate         4,716         4,363         3,083         4,104         4,116  
Goodwill and other intangibles         15,696         15,796         15,891         14,490         14,691  
Other assets         31,990         26,050         26,574         26,387         26,953  
Total assets       $ 1,224,900       $ 1,241,951       $ 1,145,131       $ 1,137,849       $ 1,117,648  
                                 
Liabilities and Shareholders’ Equity                                
Non-interest bearing deposits       $ 194,950       $ 194,433       $ 189,445       $ 187,542       $ 193,810  
Interest-bearing deposits         837,413         846,672         727,250         776,298         768,289  
Total deposits         1,032,363         1,041,105         916,695         963,840         962,099  
Borrowings         68,000         78,976         110,321         58,986         43,991  
Subordinated debentures         10,310         10,310         10,310         10,310         10,310  
Other liabilities         3,929         4,363         4,369         3,091         2,814  
Total liabilities         1,114,602         1,134,754         1,041,695         1,036,227         1,019,214  
Total shareholders’ equity         110,298         107,197         103,436         101,622         98,434  
Total liabilities and shareholders’ equity       $ 1,224,900       $ 1,241,951       $ 1,145,131       $ 1,137,849       $ 1,117,648  

 
 
 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT       Three Months Ended
      6/30/16     3/31/16     12/31/15     9/30/15     6/30/15
Interest Income:                                
Loans, including fees       $ 9,293     $ 9,013     $ 8,874       $ 8,556       $ 8,461  
Investment securities         1,531       1,532       1,472         1,438         1,474  
Accretion of purchase accounting adjustments         20       22       59         73         71  
Other interest income         27       30       12         13         16  
Total interest income         10,871       10,597       10,417         10,080         10,022  
                                 
Interest Expense:                                
Deposits         813       701       657         693         704  
Borrowings         169       173       131         100         102  
Subordinated debentures         34       48       47         47         46  
Accretion of purchase accounting adjustments         -       -       (31 )       (47 )       (46 )
Total interest expense         1,016       922       804         793         806  
                                 
Net interest income         9,855       9,675       9,613         9,287         9,216  
Provision for loan losses         204       190       10         250         -  
Net interest income after provision for loan losses         9,651       9,485       9,603         9,037         9,216  
                                 
Non-interest Income:                                
Service charges on deposit accounts         604       637       674         737         591  
Mortgage Income         1,184       645       245         341         357  
Interchange Fee Income         681       644       650         611         612  
Gain (loss) on securities, net         129       -       -         -         -  
Gain on sale of premises and equipment         -       -       -         -         -  
BEA award, net         -       -       152         -         -  
Other charges and fees         363       557       182         293         294  
Total non-interest income         2,961       2,483       1,903         1,982         1,854  
                                 
Non-interest expense:                                
Salaries and employee benefits         5,400       5,149       4,670         4,628         4,613  
Occupancy expense         1,110       1,073       1,107         1,136         1,137  
FDIC premiums         257       244       243         241         241  
Marketing         132       72       150         64         161  
Amortization of core deposit intangibles         100       94       100         100         100  
Other professional services         321       231       377         318         379  
Other non-interest expense         1,601       1,532       1,628         1,490         1,461  
Total Non-interest expense         8,921       8,395       8,275         7,977         8,092  
Earnings before income taxes         3,691       3,573       3,231         3,042         2,978  
Income tax expense         1,042       969       873         815         793  
Net earnings         2,649       2,604       2,358         2,227         2,185  
Dividends and accretion on preferred stock         86       85       85         86         86  
Net earnings available to common shareholders       $ 2,563     $ 2,519     $ 2,273       $ 2,141       $ 2,099  
                                 
Earnings per common share, diluted       $ 0.47     $ 0.46     $ 0.42       $ 0.39       $ 0.39  
Operating earnings per common share, diluted*       $ 0.47     $ 0.43     $ 0.40       $ 0.39       $ 0.39  

*See reconciliation of Non-GAAP financial measures

 
 
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

COMPOSITION OF LOANS      

June 30,

2016

   

Percent

of Total

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

   

Percent

of Total

Commercial, financial and agricultural       $ 118,924       14.3 %     $ 126,381       $ 129,197       $ 123,872       $ 116,352       15.9 %
Real estate – construction         101,439       12.2 %       100,386         99,161         85,769         93,152       12.7 %
Real estate – commercial         296,676       35.6 %       270,085         253,309         251,631         245,537       33.5 %
Real estate – residential         282,420       33.9 %       276,272         272,180         265,763         259,610       35.4 %
Lease Financing Receivable         2,642       .3 %       2,645         2,650         2,303         -       -  
Obligations of States & subdivisions         6,965       .8 %       7,034         969         969         700       .1 %
Consumer         15,017       1.8 %       14,961         15,049         16,281         15,686       2.1 %
Loans held for sale         8,937       1.1 %       6,095         3,974         1,058         1,864       0.3 %
Total loans       $ 833,020       100 %     $ 803,859       $ 776,489       $ 747,646       $ 732,901       100 %
                                             
COMPOSITION OF DEPOSITS      

June 30,

2016

   

Percent

of Total

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

   

Percent

of Total

Noninterest bearing       $ 194,950       18.9 %     $ 194,433       $ 189,445       $ 187,542       $ 193,810       20.2 %
NOW and other         466,118       45.2 %       493,319         373,687         411,893         393,596       40.9 %
Money Market/Savings         174,740       16.9 %       169,733         174,090         181,861         185,033       19.2 %
Time Deposits of less than $100,000         72,389       7.0 %       72,295         73,865         75,022         77,815       8.1 %
Time Deposits of $100,000 or more         124,166       12.0 %       111,325         105,608         107,522         111,845       11.6 %
Total Deposits       $ 1,032,363       100 %     $ 1,041,105       $ 916,695       $ 963,840       $ 962,099       100 %
                                             
ASSET QUALITY DATA      

June 30,

2016

         

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

     
Nonaccrual loans       $ 5,742             $ 5,851       $ 7,368       $ 7,949       $ 6,513        
Loans past due 90 days and over         267               628         29         6         92        
Total nonperforming loans         6,009               6,479         7,397         7,955         6,605        
Other real estate         4,716               4,363         3,083         4,104         4,116        
Nonaccrual securities         408               408         408         408         408        
Total nonperforming assets       $ 11,133             $ 11,250       $ 10,888       $ 12,467       $ 11,129        
                                             
Nonperforming assets to total assets         .91 %             .91 %       .95 %       1.10 %       1.00 %      
Nonperforming assets to total loans + ORE         1.34 %             1.40 %       1.40 %       1.66 %       1.51 %      
ALLL to nonperforming loans         120.80 %             107.80 %       91.21 %       84.65 %       97.18 %      
ALLL to total loans         .88 %             .88 %       .87 %       .90 %       .88 %      
                                             
Quarter-to-date net charge-offs (recoveries)       $ (72 )           $ (48 )     $ (3 )     $ (65 )     $ (490 )      
Annualized QTD net chg/offs (recs) to loans         (0.03 %)             (0.02 %)       (0.002 %)       (0.03 %)       (0.27 %)      

 
 
 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)                                                            
 
Yield Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Analysis June 30, 2016     March 31, 2016     December 31, 2015     September 30, 2015     June 30, 2015
Tax Tax Tax Tax Tax
Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/
Balance     interest     Rate     Balance     interest     Rate     Balance     interest     Rate     Balance     interest     Rate     Balance     interest     Rate
 
Taxable securities $ 186,615 $ 1,034 2.22 % $ 189,249 $ 1,056 2.23 % $ 177,964 $ 1,006 2.26 % $ 172,478 $ 976 2.26 % $ 179,580 $ 991 2.21 %

 

Total investment securities

  78,290       721 3.68 %   76,795       693 3.61 %   75,570       685 3.63 %   74,807       662 3.54 %   79,568       702 3.53 %

 

Total investment securities

264,905 1,755 2.65 % 266,044 1,749 2.63 % 253,534 1,691 2.67 % 247,285 1,638 2.65 % 259,148 1,693 2.61 %
Fed funds sold 9,902 27 1.09 % 12,395 30 0.97 % 405 1 0.99 % 5,502 13 0.95 % 6,702 16 0.95 %

 

Int bearing deposits in other banks

12,522 20 0.64 % 20,909 20 0.38 % 21,601 25 0.46 % 20,613 25 0.49 % 24,089 19 0.32 %
Loans   809,806       9,313 4.60 %   779,418       9,035 4.64 %   757,036       8,933 4.72 %   731,818       8,629 4.72 %   728,416       8,532 4.69 %

 

Total Interest earning assets

1,097,135 11,115 4.05 % 1,078,766 10,834 4.02 % 1,032,576 10,650 4.13 % 1,005,218 10,305 4.10 % 1,018,355 10,260 4.03 %
Other assets   113,572   117,562   99,348   104,726   101,293
Total assets $ 1,210,707 $ 1,196,328 $ 1,131,924 $ 1,109,944 $ 1,119,648
 

Interest-bearing liabilities:

Deposits $ 843,771 $ 813 0.39 % $ 777,692 $ 701 0.36 % $ 752,098 $ 626 0.33 % $ 759,939 $ 646 0.34 % $ 772,837 $ 658 0.34 %
Repo 5,000 48 3.84 % 5,000 48 3.84 % 5,000 48 3.84 % 5,000 48 3.84 % 5,000 48 3.84 %
Fed funds purchased 2,894 8 1.11 % 782 2 1.02 % 1,984 6 1.21 % 661 2 1.21 % 1,180 3 1.02 %
FHLB 42,962 93 0.87 % 106,352 143 0.54 % 60,961 77 0.51 % 37,716 50 0.53 % 27,117 51 0.75 %
Subordinated
debentures   10,310       54 2.10 %   10,310       28 1.09 %   10,310       47 1.82 %   10,310       47 1.82 %   10,310       46 1.78 %

 

Total interest bearing liabilities

904,937   1,016 0.45 % 900,136   922 0.41 % 830,353   804 0.39 % 813,626   793 0.39 % 816,444   806 0.39 %
Other liabilities 200,004 191,914 200,326 197,150 206,095
Shareholders' equity   105,766   104,278   101,245   99,168   97,109

Total liabilities and shareholders' equity

$ 1,210,707 $ 1,196,328 $ 1,131,924 $ 1,109,944 $ 1,119,648
 
Net interest
income (TE) $ 10,099 3.60 % $ 9,912 3.61 % $ 9,846 3.74 % $ 9,512 3.71 % $ 9,454 3.64 %
 
Net interest margin 3.68 % 3.68 % 3.81 % 3.79 % 3.71 %
 

 

Core net interest margin*

3.67 % 3.66 % 3.77 % 3.73 % 3.66 %

 
 
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Reconcilement of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

 

     

Three Months Ended

Per Common Share Data

     

June 30,

2016

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

Book value per common share       $ 17.15       $ 16.58       $ 16.05       $ 15.72       $ 15.13  
Effect of intangible assets per share         2.89         2.91         2.95         2.70         2.72  
Tangible book value per common share       $ 14.26       $ 13.67       $ 13.10       $ 13.02       $ 12.41  
                                 
Diluted earnings per share       $ 0.47       $ 0.46       $ 0.42       $ 0.39       $ 0.39  
Effect of gain on debit card conversion, after-tax         -         (0.03 )       -         -         -  
Effect of gain on sale of bank premises, after-tax         -         -         -         -         -  
Effect of BAE, after-tax         -         -         (0.02 )       -         -  
Effect of acquisition charges, after-tax         -         -         -         -         -  
Diluted earnings per share, operating       $ 0.47       $ 0.43       $ 0.40       $ 0.39       $ 0.39  
                                 
        Three Months Ended
Average Balance Sheet Data      

June 30,

2016

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

Total average assets A       $ 1,210,707       $ 1,196,328       $ 1,131,924       $ 1,109,944       $ 1,119,648  
                                 
Total equity       $ 105,766       $ 104,278       $ 101,245       $ 99,168       $ 97,109  
Less preferred equity         17,123         17,123         17,123         17,123         17,123  
Total common equity B         88,643         87,155         84,122         82,045         79,986  
Less intangible assets         15,758         15,858         14,608         14,553         14,652  
Tangible common equity C       $ 72,885       $ 71,297       $ 69,514       $ 67,492       $ 65,334  
                                 
        Three Months Ended
Core Net Interest Margin      

June 30,

2016

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

Net interest income (TE)       $ 10,099       $ 9,912       $ 9,846       $ 9,512       $ 9,454  
Less purchase accounting adjustments         20         22         90         120         117  
Net interest income, net of purchase accounting adj D       $ 10,079       $ 9,890       $ 9,756       $ 9,392       $ 9,337  
                                 
Total average earning assets       $ 1,097,135       $ 1,078,766       $ 1,032,576       $ 1,005,218       $ 1,018,355  
Add average balance of loan valuation discount         1,504         1,526         1,583         1,657         1,727  
Avg earning assets, excluding loan valuation discount E       $ 1,098,639       $ 1,080,292       $ 1,034,159       $ 1,006,875       $ 1,020,082  
                                 
Core net interest margin D/E         3.67 %       3.66 %       3.77 %       3.73 %       3.66 %
                                 
        Three Months Ended
Return Ratios      

June 30,

2016

   

Mar 31,

2016

   

Dec 31,

2015

   

Sept 30,

2015

   

June 30,

2015

Net earnings F       $ 2,649       $ 2,604       $ 2,358       $ 2,227       $ 2,185  
Dividends and accretion on preferred stock         86         85         85         86         86  
Net earnings available to common shareholders         2,563         2,519         2,273         2,141         2,099  
Gain on debit card conversion, after-tax         -         (189 )       -         -         -  
Gain on sale of premises and equipment, after-tax         -         -         -         -         -  
BAE, after-tax         -         -         (112 )       -         -  
Acquisition charges, after-tax         -         -         -         -         -  
Net earnings available to common shareholders, oper G       $ 2,563       $ 2,330       $ 2,161       $ 2,141       $ 2,099  
                                 
Annualized return on avg assets F/A         .88 %       .87 %       .83 %       .80 %       .78 %
Annualized return on avg assets, oper G/A         .85 %       .78 %       .76 %       .78 %       .75 %
Annualized return on avg common equity, oper G/B         11.57 %       10.69 %       10.27 %       10.44 %       10.50 %
Annualized return on avg tangible common equity, oper G/C         14.07 %       13.07 %       12.43 %       12.69 %       12.85 %
 

Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.

We use non-GAAP measures because we believe they are useful for evaluating our financial condition with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are necessarily comparable to non-GAAP performance measures that other companies may use.

Contacts

The First Bancshares, Inc.
M. Ray “Hoppy” Cole, 601-268-8998
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer

Contacts

The First Bancshares, Inc.
M. Ray “Hoppy” Cole, 601-268-8998
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer