The First Bancshares, Inc. Reports a 29.6% 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 $2.5 million for the first quarter of 2016, compared to net earnings available to common shareholders of $1.9 million reported for the first quarter of 2015 and $2.3 million in net earnings available to common shareholders for the fourth quarter of 2015. Diluted earnings for the first quarter of 2016 were $0.46 per common share, compared to $0.34 per common share reported for the first quarter of 2015 and $0.42 per common share reported for the fourth quarter of 2015. First quarter 2016 net earnings included $189,000 of an after tax gain on the conversion of our debit card provider. Excluding this non-operating income, operating earnings per share for the first quarter of 2016 were $0.43. Both first quarter 2015 and fourth quarter 2015 included non-operating items as well, both representing $0.02 per share in adjustments.

Significant Events during Quarter:

  • Integrated The Mortgage Connection, LLC (“TMC”) which produced mortgage revenues of $444,000 during 1st Quarter 2016
  • Hired new commercial team in Mobile consisting of market president and two experienced business bankers
  • Signed contract for a new full service branch in Bay Minette, AL

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are excited about the strong start for 2016, posting a 29.6% increase in net income as compared to the same period in 2015. We continue to focus on broad based growth across all of our markets which is positively impacting our operating results and returns.

“The first quarter was the first full operating period for TMC, our recent acquisition in Jackson, MS. The results were well ahead of forecast in terms of both revenue and profitability.

“We also added an experienced commercial banking team in Mobile led by Todd Henderson, Market President and composed of business bankers Sam Jeffcoat and Marques Ivy. This group has approximately 50 years of in market experience and will grow our presence in the Mobile market.”

Balance Sheet

Consolidated assets increased $96.8 million or 8.5% to $1.2 billion for the quarter ended March 31, 2016. Total loans were $797.8 million at March 31, 2016 as compared to $772.5 million at December 31, 2015 representing an increase of 3.3%. Increased loan volume was spread across the real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $16.8 million or 6.6% quarter over quarter divided equally between owner occupied and income producing non-owner occupied properties.

Total deposits increased $124.4 million or 13.6% to $1,041.1 million for the quarter ended March 31, 2016. This increase reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $7.1 million or 1.0% for quarter ended March 31, 2016.

Asset Quality

Nonperforming assets totaled $11.3 million at March 31, 2016, an increase of $0.4 million compared to $10.9 million at December 31, 2015. The ALLL/total loans ratio was 0.88% at March 31, 2016 and 0.87% at December 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.10% of loans at March 31, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.02%) for the quarter ended March 31, 2016 compared to (0.002%) for the quarter ended December 31, 2015. 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 March 31, 2016 the company had direct energy related loans of $22.3 million, representing 2.8% of the total loan portfolio. 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.

First Quarter 2016 vs. First Quarter 2015 Earnings Comparison

First quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $1.9 million for the first quarter of 2015. Revenues from consolidated operations increased $1,547,000 in quarterly comparison. Net interest income increased $796,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $633,000 in quarterly comparison for the first quarter of 2016 as compared to the first quarter of 2015 consisting mainly of increased mortgage income and gain on conversion of our debit card provider.

First quarter 2016 noninterest expenses increased $577,000, or 7.4% as compared to first quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $523,000 of which $319,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015.

Fully taxable-equivalent (“FTE”) net interest income totaled $9.9 million and $9.1 million for the first quarter of 2016 and 2015, respectively. The FTE net interest income increased $775,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $21,000 on net interest income for the first quarter comparisons. First quarter 2016 net interest margin of 3.68% includes 2 bps related to purchase accounting adjustments.

Investment securities totaled $269.5 million, or 21.7% of total assets at March 31, 2016, versus $261.9 million, or 22.9% of total assets at March 31, 2015. The average volume of investment securities decreased $0.1 million in prior year quarterly comparison. The average tax equivalent yield on investment securities remained the same at 2.63%. The investment portfolio had a net unrealized gain of $3.7 million at March 31, 2016 as compared to $3.9 million at March 31, 2015.

The average yield on all earnings assets increased 10 basis points in prior year quarterly comparison, from 3.92% for the first quarter of 2015 to 4.02% for the first quarter of 2016. This increase was slightly offset by an increase in average interest expense of 2 basis points from 0.39% for the first quarter of 2015 to 0.41% for the first quarter of 2016.

First Quarter 2016 vs Fourth Quarter 2015 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders increased $246,000 to $2.5 million.

Noninterest income increased $580,000 in sequential-quarter comparison mainly consisting of increases in mortgage income and a gain on the conversion of our debit card provider.

Noninterest expenses increased $120,000 in sequential-quarter comparison consisting of increases in salaries and benefits relating to the acquisition of The Mortgage Connection, LLC in December 2015 with decreases in other professional services, marketing and occupancy.

FTE net interest income increased $66,000 to $9.9 million from $9.8 million in sequential-quarter comparison. The $180,000 increase in loan interest income was slightly impacted negatively by accretion related to purchase accounting adjustments.

The average yield on all earnings assets decreased 11 basis points in sequential-quarter comparison, from 4.13% for the fourth quarter of 2015 to 4.02% for the first quarter of 2016.

Other Events

The Company will make a presentation at the 20th Annual Burkenroad Reports Investment Conference at the Ritz-Carlton New Orleans Hotel in New Orleans, Louisiana, Friday, April 22, 2016 at 9:30 a.m. central time. This will be an interactive session between management and those attending the conference. The presentation will be available at the company’s internet site (www.thefirstbank.com) under the Investor Relations tab.

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 May 23, 2016 to shareholders of record as of the close of business on May 6, 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)

 

  Quarter   Quarter   Quarter   Quarter   Quarter

EARNINGS DATA

Ended Ended Ended Ended Ended
    3/31/16 12/31/15 9/30/15 6/30/15 3/31/15
Total Interest Income   $ 10,597     $ 10,417     $ 10,080     $ 10,022     $ 9,683  
Total Interest Expense     922       804      

793

      806       804  
Net Interest Income     9,675       9,613       9,287       9,216       8,879  
FTE net interest income     9,912       9,846       9,512       9,454       9,137  
Provision for loan losses     190       10       250       -       150  
Non-interest income     2,483       1,903       1,982       1,854       1,850  
Non-interest expense     8,395       8,275       7,977       8,092       7,818  
Earnings before income taxes     3,573       3,231       3,042       2,978       2,761  
Income tax expense     969       873       815       793       732  
Net earnings     2,604       2,358       2,227       2,185       2,029  
Dividends and accretion on preferred stock     85       85       86       86       85  
Net earnings available to common shareholders   $ 2,519     $ 2,273     $ 2,141     $ 2,099     $ 1,944  
                     
PER COMMON SHARE DATA                    
Basic earnings per share   $ 0.47     $ 0.42     $ 0.40     $ 0.39     $ 0.36  
Diluted earnings per share     0.46       0.42       0.39       0.39       0.36  
Diluted earnings per share, operating*     0.43       0.40       0.39       0.39       0.34  
Quarterly dividends per share     .0375       .0375       .0375       .0375       .0375  
Book value per common share at end of period     16.58       16.05       15.72       15.13       15.19  
Tangible common book value at period end     13.67       13.10       13.02       12.41       12.46  
Market price at end of period     15.63       18.34       17.47       16.65       16.26  
Shares outstanding at period end     5,432,014       5,376,665       5,376,665       5,374,415       5,374,415  
Weighted average shares outstanding:                    
Basic     5,415,339       5,376,665       5,374,790       5,366,495       5,358,576  
Diluted     5,478,703       5,449,851       5,441,980       5,424,242       5,415,100  
                     
AVERAGE BALANCE SHEET DATA                    
Total assets   $ 1,196,328     $ 1,131,924     $ 1,109,944     $ 1,119,648     $ 1,127,349  
Loans and leases     779,418       757,036       731,818       728,416       705,752  
Total deposits     964,681       946,849       953,229       973,776       932,401  
Total common equity     87,155       84,122       82,045       79,986       79,722  
Total tangible common equity*     71,297       69,514       67,492       65,334       64,967  
Total equity     104,278       101,245       99,168       97,109       96,845  
                     
SELECTED RATIOS                    
Annualized return on avg assets     .87 %     .83 %     .80 %     .78 %     .72 %
Annualized return on avg assets, operating*     .78 %     .76 %     .78 %     .75 %     .66 %
Annualized return on avg common equity, operating*     10.69 %     10.27 %     10.44 %     10.50 %     9.33 %
Annualized return on avg tangible common equity, oper*     13.07 %     12.43 %     12.69 %     12.85 %     11.45 %
Average loans to average deposits     80.80 %     79.95 %     76.77 %     74.80 %     75.69 %
Taxable-equivalent net interest margin     3.68 %     3.81 %     3.79 %     3.71 %     3.60 %
Efficiency Ratio     67.73 %     70.43 %     69.40 %     71.56 %     71.16 %
                     
CREDIT QUALITY                    
Allowance for loan losses (ALLL) as a % of total loans     .88 %     .87 %     .90 %     .88 %     .83 %
Nonperforming assets to tangible equity + ALLL     11.43 %     11.55 %     13.28 %     12.33 %     12.70 %
Nonperforming assets to total loans + ORE     1.40 %     1.40 %     1.66 %     1.51 %     1.58 %
Annualized QTD net charge-offs (recoveries) to total loans     (0.02 %)     (0.002 %)     (0.03 %)     (0.27 %)     .18 %

*See reconciliation of Non-GAAP financial measures

 

 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)

 

  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,

BALANCE SHEET

  2016   2015   2015   2015   2015
Assets                    
Cash and cash equivalents   $ 95,965     $ 41,259     $ 65,233     $ 62,021     $ 94,474  
Securities available-for-sale     253,126       239,732       239,631       236,476       246,842  
Securities held-to-maturity     6,851       7,092       7,233       7,651       7,829  
Other investments     9,570       8,135       6,249       5,787       7,235  
Total investment securities     269,547       254,959       253,113       249,914       261,906  
Loans held for sale     6,095       3,974       1,058       1,864       1,657  
Total loans     797,764       772,515       746,588       731,037       716,359  
Allowance for loan losses     (6,982 )     (6,747 )     (6,734 )     (6,419 )     (5,928 )
Loans, net     790,782       765,768       739,854       724,618       710,431  
Premises and equipment     33,353       33,623       33,610       33,571       33,769  
Other Real Estate     4,363       3,083       4,104       4,116       4,598  
Goodwill and other intangibles     15,796       15,891       14,490       14,691       14,691  
Other assets     26,050       26,574       26,387       26,953       24,622  
Total assets   $ 1,241,951     $ 1,145,131     $ 1,137,849     $ 1,117,648     $ 1,146,148  
                     
Liabilities and Shareholders’ Equity                    
Non-interest bearing deposits   $ 194,433     $ 189,445     $ 187,542     $ 193,810     $ 203,766  
Interest-bearing deposits     846,672       727,250       776,298       768,289       780,877  
Total deposits     1,041,105       916,695       963,840       962,099       984,643  
Borrowings     78,976       110,321       58,986       43,991       49,446  
Subordinated debentures     10,310       10,310       10,310       10,310       10,310  
Other liabilities     4,363       4,369       3,091       2,814       2,708  
Total liabilities     1,134,754       1,041,695       1,036,227       1,019,214       1,047,382  
Total shareholders’ equity     107,197       103,436       101,622       98,434       98,766  
Total liabilities and shareholders’ equity   $ 1,241,951     $ 1,145,131     $ 1,137,849     $ 1,117,648     $ 1,146,148  
 

 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT   Three Months Ended
  3/31/16   12/31/15   9/30/15   6/30/15   3/31/15
Interest Income:                    
Loans, including fees   $ 9,013   $ 8,874     $ 8,556     $ 8,461     $ 8,147  
Investment securities     1,532     1,472       1,438       1,474       1,512  
Accretion of purchase accounting adjustments     22     59       73       71       1  
Other interest income     30     12       13       16       23  
Total interest income     10,597     10,417       10,080       10,022       9,683  
                     
Interest Expense:                    
Deposits     701     657       693       704       679  
Borrowings     173     131       100       102       127  
Subordinated debentures     48     47       47       46       45  
Accretion of purchase accounting adjustments     -     (31 )     (47 )     (46 )     (47 )
Total interest expense     922     804       793       806       804  
                     
Net interest income     9,675     9,613       9,287       9,216       8,879  
Provision for loan losses     190     10       250       -       150  
Net interest income after provision for loan losses     9,485     9,603       9,037       9,216       8,729  
                     
Non-interest Income:                    
Service charges on deposit accounts     637     674       737       591       568  
Mortgage Income     645     245       341       357       334  
Interchange Fee Income     644     650       611       612       571  
Gain (loss) on securities, net     -     -       -       -       -  
Gain on sale of premises and equipment     -     -       -       -       110  
BEA award, net     -     152       -       -       -  
Other charges and fees     557     182       293       294       267  
Total non-interest income     2,483     1,903       1,982       1,854       1,850  
                     
Non-interest expense:                    
Salaries and employee benefits     5,149     4,670       4,628       4,613       4,626  
Occupancy expense     1,073     1,107       1,136       1,137       1,109  
FDIC premiums     244     243       241       241       241  
Marketing     72     150       64       161       62  
Amortization of core deposit intangibles     94     100       100       100       100  
Other professional services     231     377       318       379       258  
Other non-interest expense     1,532     1,628       1,490       1,461       1,422  
Total Non-interest expense     8,395     8,275       7,977       8,092       7,818  
Earnings before income taxes     3,573     3,231       3,042       2,978       2,761  
Income tax expense     969     873       815       793       732  
Net earnings     2,604     2,358       2,227       2,185       2,029  
Dividends and accretion on preferred stock     85     85       86       86       85  
Net earnings available to common shareholders   $ 2,519   $ 2,273     $ 2,141     $ 2,099     $ 1,944  
                     
Earnings per common share, diluted   $ 0.46   $ 0.42     $ 0.39     $ 0.39     $ 0.36  
Operating earnings per common share, diluted*   $ 0.43   $ 0.40     $ 0.39     $ 0.39     $ 0.34  

*See reconciliation of Non-GAAP financial measures

 

 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
 

Mar 31,

  Percent   Dec 31,   Sept 30,   June 30,   Mar 31,   Percent
COMPOSITION OF LOANS  

2016

  of Total   2015   2015   2015   2015   of Total
Commercial, financial and agricultural   $ 126,381     15.7 %   $ 129,197     $ 123,872     $ 116,352     $ 110,806     15.5 %
Real estate – construction     100,386     12.5 %     99,161       85,769       93,152       93,168     13.0 %
Real estate – commercial     270,085     33.6 %     253,309       251,631       245,537       242,969     33.8 %
Real estate – residential     276,272     34.3 %     272,180       265,763       259,610       254,844     35.5 %
Lease Financing Receivable     2,645     .3 %     2,650       2,303       -       -     -  
Obligations of States & subdivisions     7,034     .9 %     969       969       700       -     -  
Consumer     14,961     1.9 %     15,049       16,281       15,686       14,572     2.0 %
Loans held for sale     6,095     .8 %     3,974       1,058       1,864       1,657     0.2 %
Total loans   $ 803,859     100 %   $ 776,489     $ 747,646     $ 732,901     $ 718,016     100 %
                             

Mar 31,

Percent Dec 31, Sept 30, June 30, Mar 31, Percent
COMPOSITION OF DEPOSITS  

2016

  of Total   2015   2015   2015   2015   of Total
Noninterest bearing   $ 194,433     18.7 %   $ 189,445     $ 187,542     $ 193,810     $ 203,766     20.7 %
NOW and other     493,319     47.4 %     373,687       411,893       393,596       404,605     41.1 %
Money Market/Savings     169,733     16.3 %     174,090       181,861       185,033       183,048     18.6 %
Time Deposits of less than $100,000     72,295     6.9 %     73,865       75,022       77,815       80,606     8.2 %
Time Deposits of $100,000 or more     111,325     10.7 %     105,608       107,522       111,845       112,618     11.4 %
Total Deposits   $ 1,041,105     100 %   $ 916,695     $ 963,840     $ 962,099     $ 984,643     100 %
                             

Mar 31,

Dec 31, Sept 30, June 30, Mar 31,
ASSET QUALITY DATA  

2016

      2015   2015   2015   2015    
Nonaccrual loans   $ 5,851         $ 7,368     $ 7,949     $ 6,513     $ 5,995      
Loans past due 90 days and over     628           29       6       92       426      
Total nonperforming loans     6,479           7,397       7,955       6,605       6,421      
Other real estate     4,363           3,083       4,104       4,116       4,598      
Nonaccrual securities     408           408       408       408       408      
Total nonperforming assets   $ 11,250         $ 10,888     $ 12,467     $ 11,129     $ 11,427      
                             
Nonperforming assets to total assets     .91 %         .95 %     1.10 %     1.00 %     1.00 %    
Nonperforming assets to total loans + ORE     1.40 %         1.40 %     1.66 %     1.51 %     1.58 %    
ALLL to nonperforming loans     107.8 %         91.21 %     84.65 %     97.18 %     92.32 %    
ALLL to total loans     .88 %         .87 %     .90 %     .88 %     .83 %    
                             
Quarter-to-date net charge-offs (recoveries)   $ (48 )       $ (3 )   $ (65 )   $ (490 )   $ 316      
Annualized QTD net chg/offs (recs) to loans     (0.02 %)         (0.002 %)     (0.03 %)     (0.27 %)     .18 %    
 

 
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 March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 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 $ 189,249 $ 1,056 2.23 % $ 177,964 $ 1,006 2.26 % $ 172,478 $ 976 2.26 % $ 179,580 $ 991 2.21 % $ 184,401 $ 992 2.15 %

Tax-exempt securities

  76,795   693 3.61 %   75,570   685 3.63 %   74,807   662 3.54 %   79,568   702 3.53 %   81,717   759 3.72 %

Total investment securities

266,044 1,749 2.63 % 253,534 1,691 2.67 % 247,285 1,638 2.65 % 259,148 1,693 2.61 % 266,118 1,751 2.63 %
Fed funds sold 12,395 30 0.97 % 405 1 0.99 % 5,502 13 0.95 % 6,702 16 0.95 % 16,248 23 0.57 %

Int bearing deposits in other banks

20,909 20 0.38 % 21,601 25 0.46 % 20,613 25 0.49 % 24,089 19 0.32 % 27,430 19 0.28 %
Loans   779,418   9,035 4.64 %   757,036   8,933 4.72 %   731,818   8,629 4.72 %   728,416   8,532 4.69 %   705,752   8,148 4.62 %

Total Interest earning assets

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 % 1,015,548 9,941 3.92 %
Other assets   117,562   99,348   104,726   101,293   111,801
Total assets $ 1,196,328 $ 1,131,924 $ 1,109,944 $ 1,119,648 $ 1,127,349
 

Interest-bearing liabilities:

Deposits $ 777,692 $ 701 0.36 % $ 752,098 $ 626 0.33 % $ 759,939 $ 646 0.34 % $ 772,837 $ 658 0.34 % $ 736,199 $ 632 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 782 2 1.02 % 1,984 6 1.21 % 661 2 1.21 % 1,180 3 1.02 % 108 - 0.00 %
FHLB 106,352 143 0.54 % 60,961 77 0.51 % 37,716 50 0.53 % 27,117 51 0.75 % 78,892 78 0.40 %

 

Subordinated debentures

  10,310   28 1.09 %   10,310   47 1.82 %   10,310   47 1.82 %   10,310   46 1.78 %   10,310   45 1.75 %

Total interest bearing liabilities

900,136   922 0.41 % 830,353   804 0.39 % 813,626   793 0.39 % 816,444   806 0.39 % 830,509   804 0.39 %
Other liabilities 191,914 200,326 197,150 206,095 199,995
Shareholders' equity   104,278   101,245   99,168   97,109   96,845

Total liabilities and shareholders' equity

$ 1,196,328 $ 1,131,924 $ 1,109,944 $ 1,119,648 $ 1,127,349

 

Net interest income (TE)

$ 9,912 3.61 % $ 9,846 3.74 % $ 9,512 3.71 % $ 9,454 3.64 % $ 9,137 3.53 %
 
Net interest margin 3.68 % 3.81 % 3.79 % 3.71 % 3.60 %
 

Core net interest margin*

3.66 % 3.77 % 3.73 % 3.66 % 3.57 %
 

 
FIRST BANCSHARES, INC and SUBSIDIARIES
Reconcilement of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)

 

 

Three Months Ended

Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,
Per Common Share Data   2016   2015   2015   2015   2015
Book value per common share   $ 16.58     $ 16.05     $ 15.72     $ 15.13     $ 15.19  
Effect of intangible assets per share     2.91       2.95       2.70       2.72       2.73  
Tangible book value per common share   $ 13.67     $ 13.10     $ 13.02     $ 12.41     $ 12.46  
                     
Diluted earnings per share   $ 0.46     $ 0.42     $ 0.39     $ 0.39     $ 0.36  
Effect of gain on debit card conversion, after-tax     (0.03 )     -       -       -       -  
Effect of gain on sale of bank premises, after-tax     -       -       -       -       (0.02 )
Effect of BAE, after-tax     -       (0.02 )     -       -       -  
Effect of acquisition charges, after-tax     -       -       -       -       -  
Diluted earnings per share, operating   $ 0.43     $ 0.40     $ 0.39     $ 0.39     $ 0.34  
                     
    Three Months Ended
Mar 31, Dec 31, Sept 30, June 30, Mar 31,
Average Balance Sheet Data   2016   2015   2015   2015   2015
Total average assets A   $ 1,196,328     $ 1,131,924     $ 1,109,944     $ 1,119,648     $ 1,127,349  
                     
Total equity   $ 104,278     $ 101,245     $ 99,168     $ 97,109     $ 96,845  
Less preferred equity     17,123       17,123       17,123       17,123       17,123  
Total common equity B     87,155       84,122       82,045       79,986       79,722  
Less intangible assets     15,858       14,608       14,553       14,652       14,755  
Tangible common equity C   $ 71,297     $ 69,514     $ 67,492     $ 65,334     $ 64,967  
                     
    Three Months Ended
Mar 31, Dec 31, Sept 30, June 30, Mar 31,
Core Net Interest Margin   2016   2015   2015   2015   2015
Net interest income (TE)   $ 9,912     $ 9,846     $ 9,512     $ 9,454     $ 9,137  
Less purchase accounting adjustments     22       90       120       117       48  
Net interest income, net of purchase accounting adj D   $ 9,890     $ 9,756     $ 9,392     $ 9,337     $ 9,089  
                     
Total average earning assets   $ 1,078,766     $ 1,032,576     $ 1,005,218     $ 1,018,355     $ 1,015,548  
Add average balance of loan valuation discount     1,526       1,583       1,657       1,727       1,730  
Avg earning assets, excluding loan valuation discount E   $ 1,080,292     $ 1,034,159     $ 1,006,875     $ 1,020,082     $ 1,017,278  
                     
Core net interest margin D/E     3.66 %     3.77 %     3.73 %     3.66 %     3.57 %
                     
    Three Months Ended
Mar 31, Dec 31, Sept 30, June 30, Mar 31,
Return Ratios   2016   2015   2015   2015   2015
Net earnings F   $ 2,604     $ 2,358     $ 2,227     $ 2,185     $ 2,029  
Dividends and accretion on preferred stock     85       85       86       86       85  
Net earnings available to common shareholders     2,519       2,273       2,141       2,099       1,944  
Gain on debit card conversion, after-tax     (189 )     -       -       -       -  
Gain on sale of premises and equipment, after-tax     -       -       -       -       (84 )
BAE, after-tax     -       (112 )     -       -       -  
Acquisition charges, after-tax     -       -       -       -       -  
Net earnings available to common shareholders, oper G   $ 2,330     $ 2,161     $ 2,141     $ 2,099     $ 1,860  
                     
Annualized return on avg assets F/A     .87 %     .83 %     .80 %     .78 %     .72 %
Annualized return on avg assets, oper G/A     .78 %     .76 %     .78 %     .75 %     .66 %
Annualized return on avg common equity, oper G/B     10.69 %     10.27 %     10.44 %     10.50 %     9.33 %
Annualized return on avg tangible common equity, oper G/C     13.07 %     12.43 %     12.69 %     12.85 %     11.45 %
 

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
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer

Contacts

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