HATTIESBURG, Miss.--(BUSINESS WIRE)--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today a 90.7% increase ($2.2 million) in net income available to common shareholders for the third quarter of 2017 compared to the third quarter of 2016. Net income available to common shareholders totaled $4.7 million for the third quarter of 2017 as compared to $2.5 million for the third quarter of 2016.
Fully diluted earnings per share for the third quarter of 2017 were $0.51 as compared to $0.45 for the third quarter of 2016. Fully diluted earnings per share for the third quarter of 2017 includes the issuance of 3,563,380 in new common shares during the fourth quarter of 2016 related to the capital raise in October 2016.
Highlights for the Quarter:
- Net income available to common shareholders for the third quarter of 2017 compared to the third quarter of 2016 increased $2.2 million, or 90.7% to $4.7 million.
- Operating net earnings (net income available to common shareholders adjusted for merger related costs) for the third quarter were $4.7 million compared to $4.0 million for the second quarter of 2017, an 18.2% increase.
- The Company exceeded a 1.00% annualized return on average assets.
- The Company was awarded a $917,000 Financial Assistance Award from the Community Development Financial Assistance Program which is expected to be received early 2018.
- Total loans increased $10 million during the quarter.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are proud of our third quarter results, particularly the substantial improvement in profitability. We surpassed our goal of an annualized ROAA of 1% and increased our net income 91% compared to the same quarter in 2016.
“Our improved performance is a result of the integration of our two recent acquisitions and continued growth throughout our markets. Our team has worked extremely hard and we believe their efforts are translating into substantially improved returns for our shareholders.”
Balance Sheet
Total assets decreased $1.6 million to $1.788 billion at September 30, 2017 due to the reduction in deposits related to the seasonality of our public fund portfolio.
Total loans were $1.198 billion at September 30, 2017 as compared to $1.187 billion at June 30, 2017 and $854.4 million at September 30, 2016, representing increases of $10.3 million, or 0.9% and $343.8 million, or 40.2%, respectively. Increased loan volume of $10.3 million for the third quarter was primarily distributed among all real estate categories. The acquisitions of Gulf Coast Community Bank and Iberville Bank accounted for $239.6 million of the total increase in loans as compared to the same quarter in 2016.
Total deposits decreased $42.8 million or 2.8% for the quarter ended September 30, 2017 compared to the same quarter of 2016. $25.4 million of the decrease was related to NOW accounts of which $23.0 million is attributable to the seasonality of the public fund deposits. Non-interest bearing deposits decreased $11.4 million which was related to normal balance fluctuations.
Asset Quality
Nonperforming assets totaled $14.6 million at September 30, 2017, an increase of $1.3 million compared to $13.2 million at June 30, 2017 and an increase of $3.3 million compared to September 30, 2016. The majority of the increase is the result of acquired assets with associated fair value marks. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.68% at September 30, 2017 and June 30, 2017. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.16% of total loans at September 30, 2017. The ratio of annualized net charge-offs (recoveries) to total loans was (0.005%) for the quarter ended September 30, 2017 compared to (0.003%) for the quarter ended June 30, 2017.
Third Quarter 2017 vs. Third Quarter 2016 Earnings Comparison
Net income available to common shareholders for the third quarter of 2017 totaled $4.7 million compared to $2.5 million for the third quarter of 2016, an increase of $2.2 million or 90.7%.
Revenues from consolidated operations increased $6.0 million in quarterly comparison. Net interest income for the third quarter of 2017 was $14.9 million, an increase of $4.9 million when compared to third quarter 2016. The increase is primarily due to interest income earned on a higher volume of loans. Net interest margin for the third quarter of 2017 was 3.73% as compared to 3.62% for the same quarter in 2016.
Non-interest income increased $0.6 million in quarterly comparison for the third quarter of 2017 as compared to the third quarter of 2016 due to increased service charges and interchange fee income.
Third quarter 2017 non-interest expense increased $2.5 million, or 26.3% as compared to third quarter 2016. The majority of the increase is due to higher compensation expense, occupancy expense and other non-interest expense. Salaries increased $1.7 million of which $1.4 million resulted from increased employment numbers as a result of the acquisitions. $0.6 million in occupancy and other non-interest expense was attributable to the acquisitions.
Fully tax equivalent (“FTE”) net interest income totaled $15.2 million and $10.3 million for the third quarter of 2017 and 2016, respectively. The FTE net interest income increased $4.9 million in the prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments accounted for $24,000 of the difference in net interest income for the third quarter comparisons. Third quarter 2017 FTE net interest margin of 3.81% includes 3 basis points related to purchase accounting adjustments.
Investment securities totaled $368.6 million, or 20.6% of total assets at September 30, 2017, versus $251.7 million, or 19.9% of total assets at September 30, 2016. The average volume of investment securities increased $119.9 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 2 basis points to 2.65% from 2.63% in prior year quarterly comparison. The investment portfolio had a net unrealized gain of $2.7 million at September 30, 2017 as compared to $4.5 million at September 30, 2016.
The average yield on all earnings assets increased 12 basis points in prior year quarterly comparison, from 4.13% for the third quarter of 2016 to 4.25% for the third quarter of 2017. This increase was offset partially by an increase in average interest expense of 3 basis points from 0.52% for the third quarter of 2016 to 0.55% for the third quarter of 2017.
Third Quarter 2017 vs Second Quarter 2017 Earnings Comparison
Net income available to common shareholders for the third quarter of 2017 totaled $4.7 million compared to net income available to common shareholders of $2.4 million in sequential quarter comparison. Operating net earnings $0.7 million, or 18.2%, compared to operating net earnings of $4.0 million for the second quarter of 2017.
Net interest income for the third quarter of 2017 was $14.9 million. FTE net interest income increased $0.1 million to $15.2 million from $15.1 million in sequential-quarter comparison. The increase was due primarily to increased loan volume. Interest income from purchase accounting adjustments remained flat in sequential quarter comparison.
The average yield on all earnings assets remained unchanged in sequential-quarter comparison at 4.25%.
Non-interest income decreased $0.1 million in sequential-quarter comparison resulting from slight decreases in service charges and interchange fee income offset by an increase in mortgage income.
Non-interest expense decreased $3.2 million in sequential-quarter comparison, which reflects decreases in salaries and employee benefits, other professional services and other non-interest expense. $2.7 million in merger-related costs were included in other professional services and other non-interest expenses for the second quarter of 2017.
Year to Date Earnings Comparison
In year-over-year comparison, net income available to common shareholders increased $0.6 million, or 8.6%, from $7.6 million at September 30, 2016 to $8.2 million at September 30, 2017 which included one-time merger related charges of $6.3 million. Operating net earnings for the first nine months of 2017 totaled $12.1 million compared to $7.5 million for the same period in 2016, an increase of $4.6 million or 61.6%. Net interest income increased $14.3 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.
Non-interest income increased $2.3 million in year-over-year comparison mainly consisting of increases in mortgage income of $0.2 million, service charges of $0.8 million and interchange fee income of $0.8 million.
Non-interest expense increased $16.3 million in year-over-year comparison primarily resulting from increases in salaries and benefits of $6.9 million, of which $5.4 million relates to the acquisitions, as well as $6.3 million in one-time merger related charges.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend in the amount of $0.0375 per share to be paid on its common stock on November 22, 2017 to shareholders of record as of the close of business on November 3, 2017.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama and Florida. The Company’s stock is traded on 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, total tangible common equity, tangible book value per common share, fully taxable-equivalent net interest income and certain ratios derived from 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, book value, net interest income, or other GAAP 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; and legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations. 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) |
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EARNINGS DATA |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|||||
Total Interest Income | $ 16,708 | $ 16,464 | $15,753 | $ 11,868 | $ 11,269 | |||||
Total Interest Expense | 1,773 | 1,629 | 1,585 | 1,176 | 1,202 | |||||
Net Interest Income | 14,935 | 14,835 | 14,168 | 10,692 | 10,067 | |||||
FTE net interest income* | 15,232 | 15,140 | 14,470 | 10,935 | 10,306 | |||||
Provision for loan losses | 90 | 248 | 46 | 88 | 143 | |||||
Non-interest income | 3,658 | 3,757 | 3,391 | 2,705 | 3,099 | |||||
Non-interest expense | 11,888 | 15,070 | 16,095 | 10,132 | 9,416 | |||||
Earnings before income taxes | 6,615 | 3,274 | 1,418 | 3,177 | 3,607 | |||||
Income tax expense | 1,901 | 908 | 296 | 870 | 1,049 | |||||
Net income | 4,714 | 2,366 | 1,122 | 2,307 | 2,558 | |||||
Dividends and accretion on preferred stock | - | - | - | 195 | 86 | |||||
Net income available to common shareholders | $ 4,714 | $ 2,366 | $ 1,122 | $ 2,112 | $ 2,472 | |||||
PER COMMON SHARE DATA | ||||||||||
Basic earnings per share | $ 0.52 | $ 0.26 | $ 0.12 | $ 0.39 | $ 0.46 | |||||
Diluted earnings per share | 0.51 | 0.26 | 0.12 | 0.26 | 0.45 | |||||
Diluted earnings per share, operating* | 0.51 | 0.44 | 0.37 | 0.30 | 0.48 | |||||
Quarterly dividends per share | .0375 | .0375 | .0375 | .0375 | .0375 | |||||
Book value per common share at end of period | 18.24 | 17.80 | 17.39 | 17.19 | 17.60 | |||||
Tangible common book value at period end* | 15.48 | 15.00 | 14.61 | 15.46 | 14.73 | |||||
Market price at end of period | 30.15 | 27.60 | 28.50 | 27.50 | 19.10 | |||||
Shares outstanding at period end | 9,153,407 | 9,152,657 | 9,144,412 | 8,991,397 | 5,428,017 | |||||
Weighted average shares outstanding: | ||||||||||
Basic | 9,152,674 | 9,145,179 | 9,123,271 | 5,463,651 | 5,425,567 | |||||
Diluted | 9,224,481 | 9,206,378 | 9,182,711 | 8,500,305 | 5,475,785 | |||||
AVERAGE BALANCE SHEET DATA | ||||||||||
Total assets | $1,772,402 | $1,751,092 | $1,713,438 | $1,275,538 | $1,233,034 | |||||
Loans and leases | 1,185,493 | 1,155,699 | 1,117,135 | 856,798 | 836,931 | |||||
Total deposits | 1,512,616 | 1,527,119 | 1,460,787 | 1,037,877 | 1,044,428 | |||||
Total common equity | 164,455 | 155,667 | 157,184 | 94,750 | 94,007 | |||||
Total tangible common equity* | 139,013 | 130,789 | 134,809 | 79,112 | 78,347 | |||||
Total equity | 164,455 | 155,667 | 157,184 | 159,786 | 111,130 | |||||
SELECTED RATIOS | ||||||||||
Annualized return on avg assets | 1.06% | .54% | .26% | .72% | .83% | |||||
Annualized return on avg assets, operating* | 1.07% | .92% | .79% | .75% | .85% | |||||
Annualized return on avg common equity, operating* | 11.54% | 10.31% | 8.61% | 10.11% | 11.14% | |||||
Annualized return on avg tangible common equity, oper* | 13.65% | 12.27% | 10.04% | 12.10% | 13.37% | |||||
Average loans to average deposits | 78.37% | 75.68% | 76.47% | 82.55% | 80.13% | |||||
FTE Net Interest Margin* | 3.81% | 3.84% | 3.85% | 3.77% | 3.70% | |||||
Efficiency Ratio | 62.93% | 79.75% | 90.11% | 74.28% | 70.24% | |||||
Efficiency Ratio, operating* | 62.68% | 65.56% | 69.97% | 71.40% | 68.70% | |||||
CREDIT QUALITY | ||||||||||
Allowance for loan losses (ALLL) as a % of total loans | .68% | .68% | .69% | .87% | .88% | |||||
Nonperforming assets to tangible equity + ALLL | 9.71% | 9.10% | 9.39% | 6.74% | 10.81% | |||||
Nonperforming assets to total loans + ORE | 1.21% | 1.11% | 1.16% | 1.14% | 1.31% | |||||
Annualized QTD net charge-offs (recoveries) to total loans | (0.005%) | (0.003%) | (0.09%) | 0.03% | (0.04%) | |||||
*See reconciliation of Non-GAAP financial measures |
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FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands) |
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BALANCE SHEET |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
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Assets | ||||||||||
Cash and cash equivalents | $ 93,317 | $ 92,596 | $ 148,511 | $ 62,119 | $ 70,114 | |||||
Securities available-for-sale | 353,035 | 366,490 | 352,851 | 243,206 | 236,168 | |||||
Securities held-to-maturity | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | |||||
Other investments | 9,556 | 9,544 | 7,647 | 6,593 | 9,516 | |||||
Total investment securities | 368,591 | 382,034 | 366,498 | 255,799 | 251,684 | |||||
Loans held for sale | 4,588 | 5,907 | 5,473 | 5,880 | 9,437 | |||||
Total loans | 1,198,193 | 1,187,936 | 1,139,987 | 867,054 | 854,366 | |||||
Allowance for loan losses | (8,175) | (8,070) | (7,813) | (7,510) | (7,481) | |||||
Loans, net | 1,190,018 | 1,179,866 | 1,132,174 | 859,544 | 846,885 | |||||
Premises and equipment | 46,203 | 44,766 | 45,438 | 34,624 | 33,427 | |||||
Other Real Estate | 7,855 | 8,072 | 7,579 | 6,008 | 4,670 | |||||
Goodwill and other intangibles | 25,325 | 25,615 | 25,379 | 15,507 | 15,596 | |||||
Other assets | 52,079 | 50,766 | 51,769 | 37,886 | 34,825 | |||||
Total assets | $1,787,976 | $1,789,622 | $1,783,204 | $1,277,367 | $1,266,638 | |||||
Liabilities and Shareholders’ Equity | ||||||||||
Non-interest bearing deposits | $ 308,050 | $ 319,494 | $ 323,442 | $ 202,478 | $196,786 | |||||
Interest-bearing deposits | 1,199,941 | 1,231,305 | 1,245,055 | 836,713 | 875,003 | |||||
Total deposits | 1,507,991 | 1,550,799 | 1,568,497 | 1,039,191 | 1,071,789 | |||||
Borrowings | 94,321 | 59,367 | 39,411 | 69,000 | 68,000 | |||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||
Other liabilities | 8,374 | 6,267 | 5,981 | 4,339 | 3,881 | |||||
Total liabilities | 1,620,996 | 1,626,743 | 1,624,199 | 1,122,840 | 1,153,980 | |||||
Total shareholders’ equity | 166,980 | 162,879 | 159,005 | 154,527 | 112,658 | |||||
Total liabilities and shareholders’ equity | $1,787,976 | $1,789,622 | $1,783,204 | $1,277,367 | $1,266,638 | |||||
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
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EARNINGS STATEMENT | Year to Date | |||||||
2017 | 2016 | |||||||
Interest Income: | ||||||||
Loans, including fees | $ 41,916 | $ 28,011 | ||||||
Investment securities | 6,506 | 4,509 | ||||||
Accretion of purchase accounting adjustments | 167 | 134 | ||||||
Other interest income | 337 | 82 | ||||||
Total interest income | 48,926 | 32,736 | ||||||
Interest Expense: | ||||||||
Deposits | 3,998 | 2,475 | ||||||
Borrowings | 980 | 502 | ||||||
Subordinated debentures | 171 | 162 | ||||||
Accretion of purchase accounting adjustments | (162) | - | ||||||
Total interest expense | 4,987 | 3,139 | ||||||
Net interest income | 43,939 | 29,597 | ||||||
Provision for loan losses | 384 | 538 | ||||||
Net interest income after provision for loan losses | 43,555 | 29,059 | ||||||
Non-interest Income: | ||||||||
Service charges on deposit accounts | 2,692 | 1,847 | ||||||
Mortgage Income | 3,400 | 3,228 | ||||||
Interchange Fee Income | 2,797 | 1,991 | ||||||
Gain (loss) on securities, net | (19) | 129 | ||||||
Gain on sale of premises and equipment | - | - | ||||||
BEA award, net | - | - | ||||||
Other charges and fees | 1,937 | 1,347 | ||||||
Total non-interest income | 10,807 | 8,542 | ||||||
Non-interest expense: | ||||||||
Salaries and employee benefits | 23,070 | 16,194 | ||||||
Occupancy expense | 4,108 | 3,392 | ||||||
FDIC premiums | 887 | 755 | ||||||
Marketing | 218 | 280 | ||||||
Amortization of core deposit intangibles | 491 | 294 | ||||||
Other professional services | 6,179 | 1,013 | ||||||
Other non-interest expense | 8,100 | 4,802 | ||||||
Total Non-interest expense | 43,053 | 26,730 | ||||||
Earnings before income taxes | 11,309 | 10,871 | ||||||
Income tax expense | 3,107 | 3,060 | ||||||
Net income | 8,202 | 7,811 | ||||||
Dividends and accretion on preferred stock | - | 257 | ||||||
Net income available to common shareholders | $ 8,202 | $ 7,554 | ||||||
Non-operating items* | 3,937 | (43) | ||||||
Net earnings available to common shareholders, operating* | $ 12,139 | $ 7,511 | ||||||
Basic earnings per common share | $ 0.90 | $ 1.39 | ||||||
Diluted earnings per common share | $ 0.89 | $ 1.38 | ||||||
Diluted earnings per common share, operating* | $ 1.32 | $ 1.38 | ||||||
*See reconciliation of Non-GAAP financial measures | ||||||||
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
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EARNINGS STATEMENT | Three Months Ended | |||||||||
9/30/17 | 6/30/17 | 3/31/17 | 12/31/16 | 9/30/16 | ||||||
Interest Income: | ||||||||||
Loans, including fees | $ 14,357 | $ 14,114 | $ 13,444 | $ 9,922 | $ 9,706 | |||||
Investment securities | 2,180 | 2,197 | 2,129 | 1,472 | 1,446 | |||||
Accretion of purchase accounting adjustments | 55 | 56 | 56 | 429 | 92 | |||||
Other interest income | 116 | 97 | 124 | 45 | 25 | |||||
Total interest income | 16,708 | 16,464 | 15,753 | 11,868 | 11,269 | |||||
Interest Expense: | ||||||||||
Deposits | 1,436 | 1,364 | 1,198 | 968 | 962 | |||||
Borrowings | 357 | 259 | 364 | 148 | 160 | |||||
Subordinated debentures | 41 | 67 | 63 | 60 | 80 | |||||
Accretion of purchase accounting adjustments | (61) | (61) | (40) | - | - | |||||
Total interest expense | 1,773 | 1,629 | 1,585 | 1,176 | 1,202 | |||||
Net interest income | 14,935 | 14,835 | 14,168 | 10,692 | 10,067 | |||||
Provision for loan losses | 90 | 248 | 46 | 88 | 143 | |||||
Net interest income after provision for loan losses | 14,845 | 14,587 | 14,122 | 10,604 | 9,924 | |||||
Non-interest Income: | ||||||||||
Service charges on deposit accounts | 902 | 922 | 868 | 605 | 606 | |||||
Mortgage Income | 1,276 | 1,208 | 916 | 1,204 | 1,399 | |||||
Interchange Fee Income | 935 | 959 | 903 | 683 | 666 | |||||
Gain (loss) on securities, net | (10) | (1) | (8) | (3) | - | |||||
Gain on sale of premises and equipment | - | - | - | - | - | |||||
BEA award, net | - | - | - | - | - | |||||
Other charges and fees | 555 | 669 | 712 | 216 | 428 | |||||
Total non-interest income | 3,658 | 3,757 | 3,391 | 2,705 | 3,099 | |||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 7,327 | 7,762 | 7,981 | 5,943 | 5,645 | |||||
Occupancy expense | 1,390 | 1,348 | 1,370 | 1,222 | 1,209 | |||||
FDIC premiums | 355 | 331 | 201 | 265 | 254 | |||||
Marketing | 50 | 99 | 69 | 122 | 76 | |||||
Amortization of core deposit intangibles | 160 | 182 | 149 | 88 | 100 | |||||
Other professional services | 367 | 2,802 | 3,010 | 793 | 461 | |||||
Other non-interest expense | 2,239 | 2,546 | 3,315 | 1,699 | 1,671 | |||||
Total Non-interest expense | 11,888 | 15,070 | 16,095 | 10,132 | 9,416 | |||||
Earnings before income taxes | 6,615 | 3,274 | 1,418 | 3,177 | 3,607 | |||||
Income tax expense | 1,901 | 908 | 296 | 870 | 1,049 | |||||
Net income | 4,714 | 2,366 | 1,122 | 2,307 | 2,558 | |||||
Dividends and accretion on preferred stock | - | - | - | 195 | 86 | |||||
Net income available to common shareholders | $ 4,714 | $ 2,366 | $ 1,122 | $ 2,112 | $ 2,472 | |||||
Basic earnings per common share | $ 0.52 | $ 0.26 | $ 0.12 | $ 0.39 | $ 0.46 | |||||
Diluted earnings per common share | $ 0.51 | $ 0.26 | $ 0.12 | $ 0.26 | $ 0.45 | |||||
Diluted earnings per common share, operating* | $ 0.51 | $ 0.44 | $ 0.37 | $ 0.30 | $ 0.48 | |||||
*See reconciliation of Non-GAAP financial measures |
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FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands) |
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COMPOSITION OF LOANS |
Sept 30, |
Percent |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
Percent |
|||||||
Commercial, financial and agricultural | $ 164,577 | 13.7% | $ 167,799 | $ 156,786 | $ 129,423 | $ 121,963 | 14.1% | |||||||
Real estate – construction | 171,609 | 14.3% | 169,971 | 163,249 | 109,394 | 104,644 | 12.1% | |||||||
Real estate – commercial | 456,110 | 37.9% | 448,218 | 426,151 | 314,359 | 307,963 | 35.7% | |||||||
Real estate – residential | 377,308 | 31.4% | 372,815 | 360,964 | 289,640 | 296,587 | 34.3% | |||||||
Lease Financing Receivable | 2,008 | 0.2% | 2,189 | 2,196 | 2,204 | 2,211 | 0.3% | |||||||
Obligations of States & subdivisions | 5,892 | 0.5% | 5,775 | 5,383 | 6,698 | 6,861 | 0.8% | |||||||
Consumer | 20,689 | 1.7% | 21,169 | 25,258 | 15,336 | 14,137 | 1.6% | |||||||
Loans held for sale | 4,588 | 0.4% | 5,907 | 5,473 | 5,880 | 9,437 | 1.1% | |||||||
Total loans | $1,202,781 | 100% | $1,193,843 | $1,145,460 | $872,934 | $863,803 | 100% | |||||||
COMPOSITION OF DEPOSITS |
Sept 30, |
Percent |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
Percent |
|||||||
Noninterest bearing | $308,050 | 20.4% | $319,494 | $323,442 | $202,478 | $196,786 | 18.4% | |||||||
NOW and other | 639,802 | 42.5% | 665,250 | 661,300 | 430,903 | 465,404 | 43.3% | |||||||
Money Market/Savings | 292,592 | 19.4% | 296,705 | 304,292 | 182,793 | 187,228 | 17.5% | |||||||
Time Deposits of less than $250,000 | 209,714 | 13.9% | 203,254 | 212,352 | 162,797 | 163,739 | 15.3% | |||||||
Time Deposits of $250,000 or more | 57,833 | 3.8% | 66,096 | 67,111 | 60,220 | 58,632 | 5.5% | |||||||
Total Deposits | $1,507,991 | 100% | $1,550,799 | $1,568,497 | $1,039,191 | $1,071,789 | 100% | |||||||
ASSET QUALITY DATA |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
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Nonaccrual loans | $ 4,852 | $ 3,979 | $ 4,955 | $3,265 | $ 5,798 | |||||||||
Loans past due 90 days and over | 1,436 | 760 | 345 | 198 | 420 | |||||||||
Total nonperforming loans | 6,288 | 4,739 | 5,300 | 3,463 | 6,218 | |||||||||
Other real estate | 7,855 | 8,072 | 7,579 | 6,008 | 4,670 | |||||||||
Nonaccrual securities | 408 | 408 | 408 | 408 | 408 | |||||||||
Total nonperforming assets | $14,551 | $13,219 | $13,287 | $9,879 | $11,296 | |||||||||
Nonperforming assets to total assets | .81% | .74% | .75% | .77% | .89% | |||||||||
Nonperforming assets to total loans + ORE | 1.21% | 1.11% | 1.16% | 1.14% | 1.31% | |||||||||
ALLL to nonperforming loans | 130.01% | 170.29% | 147.42% | 216.86% | 120.31% | |||||||||
ALLL to total loans | .68% | .68% | .69% | .87% | .88% | |||||||||
Quarter-to-date net charge-offs (recs) | $ (15) | $ (9) | $ (257) | $ 58 | $ (79) | |||||||||
Annualized QTD net chg/offs (recs) to loans | (0.005%) | (0.003%) | (0.09%) | 0.03% | (0.04%) | |||||||||
FIRST BANCSHARES, INC and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Financial Information (unaudited) | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Yield | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
Analysis | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||||||||
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 | $ 280,441 | $ 1,601 | 2.28% | $ 282,235 | $ 1,605 | 2.27% | $ 244,997 | $ 1,534 | 2.50% | $ 183,032 | $ 997 | 2.18% | $ 177,154 | $ 965 | 2.18% | ||||||||||||||||||||
Tax-exempt securities |
93,716 | 876 | 3.74% | 95,272 | 897 | 3.77% | 86,991 | 895 | 4.12% | 77,909 | 715 | 3.67% | 77,073 | 704 | 3.65% | ||||||||||||||||||||
Total investment securities |
374,157 | 2,477 | 2.65% | 377,507 | 2,502 | 2.65% | 331,988 | 2,429 | 2.93% | 260,941 | 1,712 | 2.62% | 254,227 | 1,669 | 2.63% | ||||||||||||||||||||
Fed funds sold | 36,591 | 113 | 1.24% | 39,048 | 95 | 0.97% | 50,700 | 124 | 0.98% | 41,545 | 45 | 0.43% | 10,356 | 25 | 0.97% | ||||||||||||||||||||
Int bearing deposits in other banks |
3,463 | 3 | 0.35% | 5,214 | 2 | 0.15% | 5,000 | 2 | 0.16% | 2,107 | 3 | 0.57% | 11,961 | 16 | 0.54% | ||||||||||||||||||||
Loans | 1,185,493 | 14,412 | 4.86% | 1,155,699 | 14,170 | 4.90% | 1,117,110 | 13,500 | 4.83% | 856,798 | 10,351 | 4.83% | 836,931 | 9,798 | 4.68% | ||||||||||||||||||||
Total Interest earning assets |
1,599,704 | 17,005 | 4.25% | 1,577,468 | 16,769 | 4.25% | 1,504,798 | 16,055 | 4.27% | 1,161,391 | 12,111 | 4.17% | 1,113,475 | 11,508 | 4.13% | ||||||||||||||||||||
Other assets | 172,698 | 173,624 | 208,640 | 114,147 | 119,559 | ||||||||||||||||||||||||||||||
Total assets | $ 1,772,402 | $ 40,054 | $ 1,751,092 | $ 1,713,438 | $ 1,275,538 | $ 1,233,034 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
Deposits | $ 1,204,614 | $ 1,375 | 0.46% | $ 1,211,959 | $ 1,303 | 0.43% | $ 1,149,287 | $ 1,158 | 0.40% | $ 844,101 | $ 968 | 0.46% | $ 850,442 | $ 962 | 0.45% | ||||||||||||||||||||
Repo | 4,891 | 38 | 3.11% | 5,000 | 48 | 3.84% | 5,000 | 48 | 3.84% | 5,000 | 48 | 3.84% | 5,000 | 49 | 3.92% | ||||||||||||||||||||
Fed funds purchased | 3,816 | 19 | 1.99% | 1,906 | 8 | 1.68% | 975 | 2 | 0.82% | 191 | 1 | 2.09% | 1,926 | 5 | 1.04% | ||||||||||||||||||||
FHLB & FTN | 68,041 | 300 | 1.76% | 40,765 | 203 | 1.99% | 79,581 | 314 | 1.58% | 56,272 | 99 | 0.70% | 55,337 | 106 | 0.77% | ||||||||||||||||||||
Subordinated debentures |
10,310 | 41 | 1.59% | 10,310 | 67 | 2.60% | 10,310 | 63 | 2.44% | 10,310 | 60 | 2.33% | 10,310 | 80 | 3.10% | ||||||||||||||||||||
Total interest bearing liabilities |
1,291,672 | 1,773 | 0.55% | 1,269,940 | 1,629 | 0.51% | 1,245,153 | 1,585 | 0.51% | 915,874 | 1,176 | 0.51% | 923,015 | 1,202 | 0.52% | ||||||||||||||||||||
Other liabilities | 316,275 | 325,485 | 311,101 | 199,878 | 198,889 | ||||||||||||||||||||||||||||||
Shareholders' equity | 164,455 | 155,667 | 157,184 | 159,786 | 111,130 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ 1,772,402 | $ 1,751,092 | $ 1,713,438 | $ 1,275,538 | $ 1,233,034 | ||||||||||||||||||||||||||||||
Net interest income (FTE)* |
$ 15,232 | 3.70% | $ 15,140 | 3.74% | $ 14,470 | 3.76% | $ 10,935 | 3.66% | $ 10,306 | 3.61% | |||||||||||||||||||||||||
Net interest margin (FTE)* | 3.81% | 3.84% | 3.85% | 3.77% | 3.70% | ||||||||||||||||||||||||||||||
Core net interest margin* |
3.78% | 3.81% | 3.82% | 3.61% | 3.66% | ||||||||||||||||||||||||||||||
*See reconciliation of Non-GAAP financial measures |
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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 |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Book value per common share | $ 18.24 | $ 17.80 | $ 17.39 | $ 17.19 | $ 17.60 | |||||||
Effect of intangible assets per share | 2.76 | 2.80 | 2.78 | 1.73 | 2.87 | |||||||
Tangible book value per common share | $ 15.48 | $ 15.00 | $ 14.61 | $ 15.46 | $ 14.73 | |||||||
Diluted earnings per share | $ 0.51 | $ 0.26 | $ 0.12 | $ 0.26 | $ 0.45 | |||||||
Effect of acquisition charges | - | 0.29 | 0.39 | 0.05 | 0.04 | |||||||
Taxes on acquisition charges | - | (0.11) | (0.14) | (0.01) | (0.01) | |||||||
Diluted earnings per share, operating | $ 0.51 | $ 0.44 | $ 0.37 | $ 0.30 | $ 0.48 | |||||||
Year to Date | ||||||||||||
2017 | 2016 | |||||||||||
Diluted earnings per share | $ 0.89 | $ 1.38 | ||||||||||
Effect of gain on debit card conversion | - | (0.05) | ||||||||||
Effect of acquisition charges | 0.68 | 0.04 | ||||||||||
Tax | (0.25) | 0.01 | ||||||||||
Diluted earnings per share, operating | $ 1.32 | $ 1.38 | ||||||||||
Year to Date | ||||||||||||
2017 | 2016 | |||||||||||
Net income available to common shareholders | $ 8,202 | $ 7,554 | ||||||||||
Effect of gain on debit card conversion | - | (252) | ||||||||||
Effect of acquisition charges | 6,327 | 207 | ||||||||||
Tax | (2,390) | 2 | ||||||||||
Net earnings available to common shareholders, operating | $ 12,139 | $ 7,511 | ||||||||||
Three Months Ended | ||||||||||||
Average Balance Sheet Data |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Total average assets |
A |
$1,772,402 | $1,751,092 | $1,713,438 | $1,275,538 | $1,233,034 | ||||||
Total average earning assets |
B |
$1,599,704 | $1,577,468 | $1,504,798 | $1,161,391 | $1,113,475 | ||||||
Total equity | $ 164,455 | $ 155,667 | $ 157,184 | $ 159,786 | $ 111,130 | |||||||
Less preferred equity | - | - | - | 65,036 | 17,123 | |||||||
Total common equity |
C |
164,455 | 155,667 | 157,184 | 94,750 | 94,007 | ||||||
Less intangible assets | 25,442 | 24,878 | 22,375 | 15,638 | 15,660 | |||||||
Tangible common equity |
D |
$ 139,013 | $ 130,789 | $ 134,809 | $ 79,112 | $ 78,347 | ||||||
Three Months Ended | ||||||||||||
Net Interest Income Fully Tax Equivalent |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Net interest income |
E |
$ 14,935 | $ 14,835 | $ 14,168 | $ 10,692 | $ 10,067 | ||||||
Tax-exempt investment income | (579) | (592) | (593) | (472) | (465) | |||||||
Taxable investment income | 876 | 897 | 895 | 715 | 704 | |||||||
Net Interest Income Fully Tax Equivalent |
F |
$ 15,232 | $ 15,140 | $ 14,470 | $ 10,935 | $ 10,306 | ||||||
Annualized Net Interest Margin |
E/B |
3.73% | 3.76% | 3.77% | 3.68% | 3.62% | ||||||
Annualized Net Interest Margin, Fully Tax Equivalent |
F/B |
3.81% | 3.84% | 3.85% | 3.77% | 3.70% | ||||||
Three Months Ended | ||||||||||||
Core Net Interest Margin |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Net interest income (FTE) | $ 15,232 | $ 15,140 | $ 14,470 | $ 10,935 | $ 10,306 | |||||||
Less purchase accounting adjustments | 116 | 117 | 96 | 429 | 92 | |||||||
Net interest income, net of purchase accounting adj |
G |
$ 15,116 | $ 15,023 | $ 14,374 | $ 10,506 | $ 10,214 | ||||||
Total average earning assets | $1,599,704 | $1,577,468 | $1,504,798 | $1,161,391 | $1,113,475 | |||||||
Add average balance of loan valuation discount | 1,640 | 1,721 | 2,159 | 1,358 | 1,484 | |||||||
Avg earning assets, excluding loan valuation discount |
H |
$1,601,344 | $1,579,189 | $1,506,957 | $1,162,749 | $1,114,959 | ||||||
Core net interest margin |
G/H |
3.78% | 3.81% | 3.82% | 3.61% | 3.66% | ||||||
Three Months Ended | ||||||||||||
Efficiency Ratio |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Operating Expense | ||||||||||||
Total non-interest expense | $ 11,888 | $ 15,070 | $ 16,095 | $ 10,132 | $ 9,416 | |||||||
Pre-tax non-operating expenses | (47) | (2,682) | (3,598) | (393) | (207) | |||||||
Adjusted Operating Expense |
I |
$ 11,841 | $ 12,388 | $ 12,497 | $ 9,739 | $ 9,209 | ||||||
Operating Revenue | ||||||||||||
Net interest income, FTE | $ 15,232 | $ 15,140 | $ 14,470 | $ 10,935 | $ 10,306 | |||||||
Total non-interest income | 3,658 | 3,757 | 3,391 | 2,705 | 3,099 | |||||||
Pre-tax non-operating items | - | - | - | - | - | |||||||
Adjusted Operating Revenue |
J |
$ 18,890 | $ 18,897 | $ 17,861 | $ 13,640 | $ 13,405 | ||||||
Efficiency Ratio, operating |
I/J |
62.68% | 65.56% | 69.97% | 71.40% | 68.70% | ||||||
Three Months Ended | ||||||||||||
Return Ratios |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|||||||
Net income |
$ 4,714 | $ 2,366 | $ 1,122 | $ 2,307 | $ 2,558 | |||||||
Dividends and accretion on preferred stock |
K |
- | - | - | 195 | 86 | ||||||
Net income available to common shareholders | 4,714 | 2,366 | 1,122 | 2,112 | 2,472 | |||||||
Acquisition charges | 47 | 2,682 | 3,598 | 402 | 207 | |||||||
Tax on acquisition charges | (18) | (1,035) | (1,337) | (120) | (61) | |||||||
Net earnings available to common shareholders, oper |
L |
$ 4,743 | $ 4,013 | $ 3,383 | $ 2,394 | $ 2,618 | ||||||
Annualized return on avg assets |
K/A |
1.06% | .54% | .26% | .72% | .83% | ||||||
Annualized return on avg assets, oper |
L/A |
1.07% | .92% | .79% | .75% | .85% | ||||||
Annualized return on avg common equity, oper |
L/C |
11.54% | 10.31% | 8.61% | 10.11% | 11.14% | ||||||
Annualized return on avg tangible common equity, oper |
L/D |
13.65% | 12.27% | 10.04% | 12.10% | 13.37% | ||||||
Mortgage Department | ||||||||||||
Net Interest Income after provision for loan losses | $ 249 | $ 233 | $ 253 | $ 48 | $ 24 | |||||||
Loan fee income | 1,276 | 1,208 | 916 | 1,204 | 1,399 | |||||||
Other non-interest income | - | - | - | 1 | 1 | |||||||
Salaries and employee benefits | 882 | 946 | 806 | 783 | 805 | |||||||
Other non-interest expense | 102 | 99 | 114 | 144 | 124 | |||||||
Earnings before income taxes | $ 541 | $ 396 | $ 249 | $ 326 | $ 495 |