HATTIESBURG, Miss.--(BUSINESS WIRE)--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders of $4.0 million for the first quarter 2018, an increase of $2.8 million or 252.7%, compared to $1.1 million for the first quarter 2017. Operating net earnings increased 58.4% ($2.0 million) for the first quarter comparison, totaling $5.4 million for first quarter 2018 as compared to $3.4 million for first quarter 2017. Operating net earnings excludes merger-related costs of $1.4 for the first quarter of 2018 and $2.3 million for the first quarter of 2017, net of tax.
For the first quarter of 2018, fully diluted earnings per share were $0.34, compared to $0.12 for the first quarter of 2017. Excluding the impact of the merger-related costs, fully diluted operating earnings per share for the first quarter 2018 were $0.46 as compared to $0.37 for 2017. Fully diluted earnings per share for 2018 include the issuance of 2,012,500 shares of our common stock during the fourth quarter of 2017.
Highlights for the Quarter:
- On March 1st, 2018, the Company closed as planned the acquisition of Southwest Banc Shares, Inc., and its wholly-owned subsidiary, First Community Bank, which added 9 locations serving southwest Alabama.
- During the quarter, the Company received regulatory approval and Sunshine Financial, Inc. received shareholder approval and the acquisition of Sunshine Financial and Sunshine Community Bank, its wholly-owned subsidiary, closed as planned on April 1st adding 5 locations serving Tallahassee.
- Excluding the First Community Bank acquisition, loans increased $34.5 million or 2.8% during the first quarter of 2018.
- Excluding the First Community Bank acquisition, deposits increased $163.7 million or 11.1% during the first quarter of 2018.
- Sold $9 million of criticized and classified loans acquired from First Community Bank.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “Quarter One 2018 was another outstanding quarter for our Company, characterized by solid organic growth and significant improvement in operating earnings.
“We welcome our new team members, clients and shareholders from First Community and Sunshine. We are thrilled to join forces with them and look forward to growing our market share in the Gulf South.”
Balance Sheet
Consolidated assets increased $486.2 million to $2.3 billion at March 31, 2018. $400.8 million of the increase can be attributed to the acquisition of First Community Bank.
Total loans were $1.517 billion at March 31, 2018, as compared to $1.225 billion at December 31, 2017, and $1.140 billion at March 31, 2017, representing increases of $291.3 million or 23.8%, and $376.6 million or 33.0%, respectively. The acquisition of First Community Bank accounted for $274.7 million of the total increase in loans as compared to the fourth and first quarter of 2017. Loans excluding those purchased from First Community Bank grew $34.5 million or 2.8% during the first quarter of 2018.
- Loan Sale - First Community Bank had approximately $10 million of criticized and classified loans. At closing, these problem assets were recorded at fair value and approximately $9 million of the $10 million portfolio was sold to a third party. This transaction removed a majority of the previously identified problem loans from First Community Bank’s portfolio and resulted in a total acquired loan portfolio balance of $265 million with a fair value credit mark of approximately 1.5%.
Total deposits were $1.992 billion at March 31, 2018, as compared to $1.471 billion at December 31, 2017, and $1.568 billion at March 31, 2017, representing increases of $521.1 million or 35.4%, and $423.1 million or 27.0%, respectively. The acquisition of First Community Bank accounted for $357.4 million of the total increase in deposits as compared to the fourth and first quarter of 2017. The sequential-quarter increase in non-acquired deposits was primarily due to an increase in NOW accounts of $95.2 million, which is attributable to the seasonality of the public fund deposits.
Asset Quality
Nonperforming assets totaled $14.8 million at March 31, 2018, an increase of $1.3 million compared to $13.5 million at December 31, 2017 and an increase of $1.5 million compared to March 31, 2017. The majority of the increase in same quarter comparison was in the past due 90 days and over category. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.57% at March 31, 2018 and 0.68% at December 31, 2017. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.16% of total loans at March 31, 2018. The ratio of annualized net charge-offs (recoveries) to total loans was (0.02%) for the quarter ended March 31, 2018 compared to 0.003% for the quarter ended December 31, 2017.
First Quarter 2018 vs. First Quarter 2017 Earnings Comparison
Net income available to common shareholders for the first quarter of 2018 totaled $4.0 million compared to $1.1 million for the first quarter of 2017, an increase of $2.8 million or 252.7%.
Operating net earnings for the first quarter of 2018 totaled $5.4 million compared to $3.4 million for the first quarter of 2017, an increase of $2.0 million or 58.4%. Operating net earnings exclude the merger-related costs discussed above.
Revenues from consolidated operations increased $3.1 million in quarterly comparison. Net interest income for the first quarter of 2018 was $16.4 million, an increase of $2.2 million when compared to the first quarter of 2017. The increase is primarily due to interest income earned on a higher volume of loans. Net interest margin for the first quarter of 2018 was 3.62% as compared to 3.77% for the same quarter in 2017.
Non-interest income increased $0.1 million for the first quarter of 2018 as compared to the first quarter of 2017 due to increased service charges and interchange fee income.
First quarter 2018 non-interest expense decreased $1.5 million, or 9.3% as compared to the first quarter of 2017. Excluding acquisition charges of $1.8 million and $3.6 million for first quarter 2018 and 2017, respectively, non-interest expense increased $0.3 million as compared to first quarter 2017, attributed to the acquisition.
Fully tax equivalent (“FTE”) net interest income totaled $16.6 million and $14.5 million for the first quarter of 2018 and 2017, respectively. FTE net interest income increased $2.1 million in the prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments accounted for $37,000 of the difference in net interest income for the first quarter comparisons. First quarter 2018 FTE net interest margin of 3.67% includes 2 basis points related to purchase accounting adjustments.
Investment securities totaled $441.9 million, or 19.2% of total assets at March 31, 2018, versus $366.5 million, or 20.6% of total assets at March 31, 2017. The average volume of investment securities increased $48.8 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 11 basis points to 3.04% from 2.93% in prior year quarterly comparison. The investment portfolio had a net unrealized loss of $5.1 million at March 31, 2018 as compared to a net unrealized gain of $0.6 million at March 31, 2017.
The average yield on all earnings assets decreased 8 basis points in prior year quarterly comparison, from 4.27% for the first quarter of 2017 to 4.19% for the first quarter of 2018. Average interest expense increased 16 basis points from 0.51% for the first quarter of 2017 to 0.67% for the first quarter of 2018. Cost of deposits averaged 44 bps for the first quarter of 2018 compared to 32 bps for the first quarter of 2017. Public funds are up $72.9 million when comparing March 31, 2018 to March 31, 2017.
First Quarter 2018 vs Fourth Quarter 2017 Earnings Comparison
Net income available to common shareholders for the first quarter of 2018 increased $1.5 million or 63.9% compared to $2.4 million in the fourth quarter of 2017.
Operating net earnings for the first quarter of 2018 compared to the fourth quarter of 2017 increased $0.6 million or 13.3% from $4.7 million for the fourth quarter of 2017 to $5.4 million for the first quarter of 2018.
Net interest income for the first quarter of 2018 was $16.4 million as compared to $15.2 million for the fourth quarter of 2017, an increase of $1.2 million. FTE net interest income increased $1.1 million to $16.6 million from $15.5 million in sequential-quarter comparison. The increase was due primarily to increased loan volume. Interest income from purchase accounting adjustments decreased slightly in sequential quarter comparison.
The average yield on all earnings assets decreased in sequential-quarter comparison from 4.25% to 4.19%. Average interest expense increased 7 basis points from 0.60% for the fourth quarter of 2017 to 0.67% for the first quarter of 2018. Cost of deposits averaged 44 bps for the first quarter of 2018 compared to 38 bps for the fourth quarter of 2017. Public funds are up $131.2 million when comparing March 31, 2018 to December 31, 2017.
Non-interest income decreased $0.1 million in sequential-quarter comparison resulting from decreased mortgage income of $0.3 million, offset by increases in service charges on deposit accounts and interchange fee income of $0.2 million.
Non-interest expense increased $2.2 million in sequential-quarter comparison, which reflects increases in salaries and employee benefits and other professional services. Merger-related costs of $1.8 million were included in other professional services and other non-interest expense for the first quarter of 2018.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend in the amount of $0.05 per share, to be paid on its common stock on May 22, 2018 to shareholders of record as of the close of business on May 7, 2018.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama and Florida. The Company’s stock is traded on the NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes operating net earnings, operating earnings per share, fully tax equivalent net interest income, total tangible common equity, tangible book value per common share and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).
Forward Looking Statements
This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; and risks related to the acquisitions of Southwest Banc Shares, Inc. and Sunshine Financial, Inc., including the risk that anticipated benefits from the transactions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
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FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
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| EARNINGS DATA |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
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| Total Interest Income | $ | 18,758 | $ | 17,143 | $ | 16,708 | $ | 16,464 | $ | 15,753 | |||||||||||||||
| Total Interest Expense | 2,378 | 1,922 | 1,773 | 1,629 | 1,585 | ||||||||||||||||||||
| Net Interest Income | 16,380 | 15,221 | 14,935 | 14,835 | 14,168 | ||||||||||||||||||||
| FTE net interest income* | 16,609 | 15,523 | 15,232 | 15,140 | 14,470 | ||||||||||||||||||||
| Provision for loan losses | 277 | 122 | 90 | 248 | 46 | ||||||||||||||||||||
| Non-interest income | 3,459 | 3,556 | 3,658 | 3,757 | 3,391 | ||||||||||||||||||||
| Non-interest expense | 14,597 | 12,390 | 11,888 | 15,070 | 16,095 | ||||||||||||||||||||
| Earnings before income taxes | 4,965 | 6,265 | 6,615 | 3,274 | 1,418 | ||||||||||||||||||||
| Income tax expense | 1,008 | 3,851 | 1,901 | 908 | 296 | ||||||||||||||||||||
| Net income available to common shareholders | $ |
3,957 |
$ | 2,414 | $ | 4,714 | $ | 2,366 | $ | 1,122 | |||||||||||||||
| PER COMMON SHARE DATA | |||||||||||||||||||||||||
| Basic earnings per share | $ | 0.34 | $ | 0.23 | $ | 0.52 | $ | 0.26 | $ | 0.12 | |||||||||||||||
| Diluted earnings per share | 0.34 | 0.23 | 0.51 | 0.26 | 0.12 | ||||||||||||||||||||
| Diluted earnings per share, operating* | 0.46 | 0.45 | 0.51 | 0.44 | 0.37 | ||||||||||||||||||||
| Quarterly dividends per share | .05 | .0375 | .0375 | .0375 | .0375 | ||||||||||||||||||||
| Book value per common share at end of period | 20.95 | 19.92 | 18.24 | 17.80 | 17.39 | ||||||||||||||||||||
| Tangible common book value at period end* | 16.39 | 17.71 | 15.48 | 15.00 | 14.61 | ||||||||||||||||||||
| Market price at end of period | 32.25 | 34.20 | 30.15 | 27.60 | 28.50 | ||||||||||||||||||||
| Shares outstanding at period end | 12,339,492 | 11,165,907 | 9,153,407 | 9,152,657 | 9,144,412 | ||||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||
| Basic | 11,556,968 | 10,521,236 | 9,152,674 | 9,145,179 | 9,123,271 | ||||||||||||||||||||
| Diluted | 11,652,959 | 10,598,036 | 9,224,481 | 9,206,378 | 9,182,711 | ||||||||||||||||||||
| AVERAGE BALANCE SHEET DATA | |||||||||||||||||||||||||
| Total assets | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | $ | 1,713,438 | |||||||||||||||
| Loans and leases | 1,325,272 | 1,215,962 | 1,185,493 | 1,155,699 | 1,117,135 | ||||||||||||||||||||
| Total deposits | 1,683,999 | 1,475,628 | 1,512,616 | 1,527,119 | 1,460,787 | ||||||||||||||||||||
| Total common equity | 230,255 | 205,580 | 164,455 | 155,667 | 157,184 | ||||||||||||||||||||
| Total tangible common equity* | 196,326 | 180,322 | 139,013 | 130,789 | 134,809 | ||||||||||||||||||||
| SELECTED RATIOS | |||||||||||||||||||||||||
| Annualized return on avg assets | 0.80 | % | 0.53 | % | 1.06 | % | 0.54 | % | 0.26 | % | |||||||||||||||
| Annualized return on avg assets, operating* | 1.08 | % | 1.05 | % | 1.07 | % | 0.92 | % | 0.79 | % | |||||||||||||||
| Annualized return on avg common equity, operating* | 9.31 | % | 9.21 | % | 11.54 | % | 10.31 | % | 8.61 | % | |||||||||||||||
| Annualized return on avg tangible common equity, oper* | 10.92 | % | 10.49 | % | 13.65 | % | 12.27 | % | 10.04 | % | |||||||||||||||
| Average loans to average deposits | 78.70 | % | 82.40 | % | 78.37 | % | 75.68 | % | 76.47 | % | |||||||||||||||
| FTE Net Interest Margin* | 3.67 | % | 3.79 | % | 3.81 | % | 3.84 | % | 3.85 | % | |||||||||||||||
| Efficiency Ratio | 72.74 | % | 64.94 | % | 62.93 | % | 79.75 | % | 90.11 | % | |||||||||||||||
| Efficiency Ratio, operating* | 63.98 | % | 62.93 | % | 62.68 | % | 65.56 | % | 69.97 | % | |||||||||||||||
| CREDIT QUALITY | |||||||||||||||||||||||||
| Allowance for loan losses (ALLL) as a % of total loans | 0.57 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.69 | % | |||||||||||||||
| Nonperforming assets to tangible equity + ALLL | 6.99 | % | 6.56 | % | 9.71 | % | 9.10 | % | 9.39 | % | |||||||||||||||
| Nonperforming assets to total loans + ORE | 0.97 | % | 1.10 | % | 1.21 | % | 1.11 | % | 1.16 | % | |||||||||||||||
| Annualized QTD net charge-offs (recoveries) to total loans | (0.02 | %) | 0.003 | % | (0.005 | %) | (0.003 | %) | (0.09 | %) | |||||||||||||||
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*See reconciliation of Non-GAAP financial measures |
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FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands) |
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| BALANCE SHEET |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
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| Assets | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 162,521 | $ | 91,922 | $ | 93,317 | $ | 92,596 | $ | 148,511 | |||||||||||||||
| Securities available-for-sale | 425,529 | 356,893 | 353,035 | 366,490 | 352,851 | ||||||||||||||||||||
| Securities held-to-maturity | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | ||||||||||||||||||||
| Other investments | 10,399 | 9,969 | 9,556 | 9,544 | 7,647 | ||||||||||||||||||||
| Total investment securities | 441,928 | 372,862 | 368,591 | 382,034 | 366,498 | ||||||||||||||||||||
| Loans held for sale | 2,538 | 4,790 | 4,588 | 5,907 | 5,473 | ||||||||||||||||||||
| Total loans | 1,516,579 | 1,225,306 | 1,198,193 | 1,187,936 | 1,139,987 | ||||||||||||||||||||
| Allowance for loan losses | (8,659 | ) | (8,288 | ) | (8,175 | ) | (8,070 | ) | (7,813 | ) | |||||||||||||||
| Loans, net | 1,507,920 | 1,217,018 | 1,190,018 | 1,179,866 | 1,132,174 | ||||||||||||||||||||
| Premises and equipment | 57,430 | 46,426 | 46,203 | 44,766 | 45,438 | ||||||||||||||||||||
| Other Real Estate | 7,357 | 7,158 | 7,855 | 8,072 | 7,579 | ||||||||||||||||||||
| Goodwill and other intangibles | 56,343 | 24,670 | 25,325 | 25,615 | 25,379 | ||||||||||||||||||||
| Other assets | 63,376 | 48,392 | 52,079 | 50,766 | 51,769 | ||||||||||||||||||||
| Total assets | $ | 2,299,413 | $ | 1,813,238 | $ | 1,787,976 | $ | 1,789,622 | $ | 1,783,204 | |||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 414,142 | $ | 301,989 | $ | 308,050 | $ | 319,494 | $ | 323,442 | |||||||||||||||
| Interest-bearing deposits | 1,577,502 | 1,168,576 | 1,199,941 | 1,231,305 | 1,245,055 | ||||||||||||||||||||
| Total deposits | 1,991,644 | 1,470,565 | 1,507,991 | 1,550,799 | 1,568,497 | ||||||||||||||||||||
| Borrowings | 29,034 | 104,072 | 94,321 | 59,367 | 39,411 | ||||||||||||||||||||
| Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||||||||||||
| Other liabilities | 9,886 | 5,823 | 8,374 | 6,267 | 5,981 | ||||||||||||||||||||
| Total liabilities | 2,040,874 | 1,590,770 | 1,620,996 | 1,626,743 | 1,624,199 | ||||||||||||||||||||
| Total shareholders’ equity | 258,539 | 222,468 | 166,980 | 162,879 | 159,005 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,299,413 | $ | 1,813,238 | $ | 1,787,976 | $ | 1,789,622 | $ | 1,783,204 | |||||||||||||||
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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 | |||||||||||||||||||||||
| 3/31/18 | 12/31/17 | 9/30/17 | 6/30/17 | 3/31/17 | ||||||||||||||||||||
| Interest Income: | ||||||||||||||||||||||||
| Loans, including fees | $ | 15,926 | $ | 14,687 | $ | 14,357 | $ | 14,114 | $ | 13,444 | ||||||||||||||
| Investment securities | 2,661 | 2,346 | 2,180 | 2,197 | 2,129 | |||||||||||||||||||
| Accretion of purchase accounting adjustments | 59 | 57 | 55 | 56 | 56 | |||||||||||||||||||
| Other interest income | 112 | 53 | 116 | 97 | 124 | |||||||||||||||||||
| Total interest income | 18,758 | 17,143 | 16,708 | 16,464 | 15,753 | |||||||||||||||||||
| Interest Expense: | ||||||||||||||||||||||||
| Deposits | 1,840 | 1,455 | 1,436 | 1,364 | 1,198 | |||||||||||||||||||
| Borrowings | 460 | 392 | 357 | 259 | 364 | |||||||||||||||||||
| Subordinated debentures | 78 | 105 | 41 | 67 | 63 | |||||||||||||||||||
| Accretion of purchase accounting adjustments | - | (30 | ) | (61 | ) | (61 | ) | (40 | ) | |||||||||||||||
| Total interest expense | 2,378 | 1,922 | 1,773 | 1,629 | 1,585 | |||||||||||||||||||
| Net interest income | 16,380 | 15,221 | 14,935 | 14,835 | 14,168 | |||||||||||||||||||
| Provision for loan losses | 277 | 122 | 90 | 248 | 46 | |||||||||||||||||||
| Net interest income after provision for loan losses | 16,103 | 15,099 | 14,845 | 14,587 | 14,122 | |||||||||||||||||||
| Non-interest Income: | ||||||||||||||||||||||||
| Service charges on deposit accounts | 1,027 | 908 | 902 | 922 | 868 | |||||||||||||||||||
| Mortgage Income | 799 | 1,102 | 1,276 | 1,208 | 916 | |||||||||||||||||||
| Interchange Fee Income | 1,040 | 961 | 935 | 959 | 903 | |||||||||||||||||||
| Gain (loss) on securities, net | - | 3 | (10 | ) | (1 | ) | (8 | ) | ||||||||||||||||
| Gain on sale of premises and equipment | - | - | - | - | - | |||||||||||||||||||
| BEA award, net | - | - | - | - | - | |||||||||||||||||||
| Other charges and fees | 593 | 582 | 555 | 669 | 712 | |||||||||||||||||||
| Total non-interest income | 3,459 | 3,556 | 3,658 | 3,757 | 3,391 | |||||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 7,789 | 7,478 | 7,327 | 7,762 | 7,981 | |||||||||||||||||||
| Occupancy expense | 1,646 | 1,427 | 1,390 | 1,348 | 1,370 | |||||||||||||||||||
| FDIC premiums | 367 | 365 | 355 | 331 | 201 | |||||||||||||||||||
| Marketing | 80 | 118 | 50 | 99 | 69 | |||||||||||||||||||
| Amortization of core deposit intangibles | 201 | 173 | 160 | 182 | 149 | |||||||||||||||||||
| Other professional services | 1,947 | 578 | 367 | 2,802 | 3,010 | |||||||||||||||||||
| Other non-interest expense | 2,567 | 2,251 | 2,239 | 2,546 | 3,315 | |||||||||||||||||||
| Total Non-interest expense | 14,597 | 12,390 | 11,888 | 15,070 | 16,095 | |||||||||||||||||||
| Earnings before income taxes | 4,965 | 6,265 | 6,615 | 3,274 | 1,418 | |||||||||||||||||||
| Income tax expense | 1,008 | 3,851 | 1,901 | 908 | 296 | |||||||||||||||||||
| Net income available to common shareholders | $ | 3,957 | $ | 2,414 | $ | 4,714 | $ | 2,366 | $ | 1,122 | ||||||||||||||
| Basic earnings per common share | $ | 0.34 | $ | 0.23 | $ | 0.52 | $ | 0.26 | $ | 0.12 | ||||||||||||||
| Diluted earnings per common share | $ | 0.34 | $ | 0.23 | $ | 0.51 | $ | 0.26 | $ | 0.12 | ||||||||||||||
| Diluted earnings per common share, operating* | $ | 0.46 | $ | 0.45 | $ | 0.51 | $ | 0.44 | $ | 0.37 | ||||||||||||||
| *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 |
Mar 31, |
Percent |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Percent |
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| Commercial, financial and agricultural | $ | 213,118 | 14.0 | % | $ | 165,780 | $ | 164,577 | $ | 167,799 | $ | 156,786 | 13.7 | % | ||||||||||||||
| Real estate – construction | 213,712 | 14.1 | % | 183,328 | 171,609 | 169,971 | 163,249 | 14.3 | % | |||||||||||||||||||
| Real estate – commercial | 561,153 | 36.9 | % | 467,484 | 456,110 | 448,218 | 426,151 | 37.2 | % | |||||||||||||||||||
| Real estate – residential | 475,868 | 31.3 | % | 385,099 | 377,308 | 372,815 | 360,964 | 31.5 | % | |||||||||||||||||||
| Lease Financing Receivable | 2,433 | 0.2 | % | 2,450 | 2,008 | 2,189 | 2,196 | 0.2 | % | |||||||||||||||||||
| Obligations of States & subdivisions | 15,861 | 1.0 | % | 3,109 | 5,892 | 5,775 | 5,383 | 0.5 | % | |||||||||||||||||||
| Consumer | 34,434 | 2.3 | % | 18,056 | 20,689 | 21,169 | 25,258 | 2.2 | % | |||||||||||||||||||
| Loans held for sale | 2,538 | 0.2 | % | 4,790 | 4,588 | 5,907 | 5,473 | 0.4 | % | |||||||||||||||||||
| Total loans | $ | 1,519,117 | 100 | % | $ | 1,230,096 | $ | 1,202,781 | $ | 1,193,843 | $ | 1,145,460 | 100 | % | ||||||||||||||
| COMPOSITION OF DEPOSITS |
Mar 31, |
Percent |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Percent |
|||||||||||||||||||||
| Noninterest bearing | $ | 414,142 | 20.8 | % | $ | 301,989 | $ | 308,050 | $ | 319,494 | $ | 323,442 | 20.6 | % | ||||||||||||||
| NOW and other | 761,318 | 38.2 | % | 601,694 | 639,802 | 665,250 | 661,300 | 42.2 | % | |||||||||||||||||||
| Money Market/Savings | 434,569 | 21.8 | % | 283,579 | 292,592 | 296,705 | 304,292 | 19.4 | % | |||||||||||||||||||
| Time Deposits of less than $250,000 | 295,317 | 14.8 | % | 220,951 | 209,714 | 203,254 | 212,352 | 13.5 | % | |||||||||||||||||||
| Time Deposits of $250,000 or more | 86,298 | 4.4 | % | 62,352 | 57,833 | 66,096 | 67,111 | 4.3 | % | |||||||||||||||||||
| Total Deposits | $ | 1,991,644 | 100 | % | $ | 1,470,565 | $ | 1,507,991 | $ | 1,550,799 | $ | 1,568,497 | 100 | % | ||||||||||||||
| ASSET QUALITY DATA |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||||||||
| Nonaccrual loans | $ | 5,746 | $ | 5,674 | $ | 4,852 | $ | 3,979 | $ | 4,955 | ||||||||||||||||||
| Loans past due 90 days and over | 1,096 | 285 | 1,436 | 760 | 345 | |||||||||||||||||||||||
| Total nonperforming loans | 6,842 | 5,959 | 6,288 | 4,739 | 5,300 | |||||||||||||||||||||||
| Other real estate | 7,357 | 7,158 | 7,855 | 8,072 | 7,579 | |||||||||||||||||||||||
| Nonaccrual securities | 616 | 408 | 408 | 408 | 408 | |||||||||||||||||||||||
| Total nonperforming assets | $ | 14,815 | $ | 13,525 | $ | 14,551 | $ | 13,219 | $ | 13,287 | ||||||||||||||||||
| Nonperforming assets to total assets | 0.64% | 0.75% | 0.81% | 0.74% | 0.75% | |||||||||||||||||||||||
| Nonperforming assets to total loans + ORE | 0.97% | 1.10% | 1.21% | 1.11% | 1.16% | |||||||||||||||||||||||
| ALLL to nonperforming loans | 128.13% | 139.08% | 130.01% | 170.29% | 147.42% | |||||||||||||||||||||||
| ALLL to total loans | 0.57% | 0.68% | 0.68% | 0.68% | 0.69% | |||||||||||||||||||||||
| Quarter-to-date net charge-offs (recs) | $ | (94) | $ | 9 | $ | (15) | $ | (9) | $ | (257) | ||||||||||||||||||
| Annualized QTD net chg/offs (recs) to loans | (0.02%) | 0.003% | (0.005%) | (0.003%) | (0.09%) | |||||||||||||||||||||||
| 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, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax | Tax | Tax | Tax | Tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avg | Equivalent | Yield/ | Avg | Equivalent | Yield/ | Avg | Equivalent | Yield/ | Avg | Equivalent | Yield/ | Avg | Equivalent | Yield/ | ||||||||||||||||||||||||||||||||||||||||||
| Balance | interest | Rate | Balance | interest | Rate | Balance | interest | Rate | Balance | interest | Rate | Balance | interest | Rate | ||||||||||||||||||||||||||||||||||||||||||
| Taxable securities | $ | 274,595 | $ | 1,986 | 2.89% | $ | 271,459 | $ | 1,760 | 2.59% | $ | 280,441 | $ | 1,601 | 2.28% | $ | 282,235 | $ | 1,605 | 2.27% | $ | 244,997 | $ | 1,534 | 2.50% | |||||||||||||||||||||||||||||||
| Tax-exempt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| securities | 106,161 | 904 | 3.41% | 93,645 | 888 | 3.79% | 93,716 | 876 | 3.74% | 95,272 | 897 | 3.77% | 86,991 | 895 | 4.12% | |||||||||||||||||||||||||||||||||||||||||
| Total investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| securities | 380,756 | 2,890 | 3.04% | 365,104 | 2,648 | 2.90% | 374,157 | 2,477 | 2.65% | 377,507 | 2,502 | 2.65% | 331,988 | 2,429 | 2.93% | |||||||||||||||||||||||||||||||||||||||||
| Fed funds sold | 11,368 | 35 | 1.23% | 54,640 | 46 | 0.34% | 36,591 | 113 | 1.24% | 39,048 | 95 | 0.97% | 50,700 | 124 | 0.98% | |||||||||||||||||||||||||||||||||||||||||
| Int bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| in other banks | 94,321 | 77 | 0.33% | 4,544 | 6 | 0.53% | 3,463 | 3 | 0.35% | 5,214 | 2 | 0.15% | 5,000 | 2 | 0.16% | |||||||||||||||||||||||||||||||||||||||||
| Loans | 1,325,272 | 15,985 | 4.82% | 1,215,962 | 14,745 | 4.85% | 1,185,493 | 14,412 | 4.86% | 1,155,699 | 14,170 | 4.90% | 1,117,110 | 13,500 | 4.83% | |||||||||||||||||||||||||||||||||||||||||
| Total Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| earning assets | 1,811,717 | 18,987 | 4.19% | 1,640,250 | 17,445 | 4.25% | 1,599,704 | 17,005 | 4.25% | 1,577,468 | 16,769 | 4.25% | 1,504,798 | 16,055 | 4.27% | |||||||||||||||||||||||||||||||||||||||||
| Other assets | 174,433 | 170,002 | 172,698 | 173,624 | 208,640 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | $ | 1,713,438 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | $ | 1,330,925 | $ | 1,840 | 0.55% | $ | 1,173,386 | $ | 1,425 | 0.49% | $ | 1,204,614 | $ | 1,375 | 0.46% | $ | 1,211,959 | $ | 1,303 | 0.43% | $ | 1,149,287 | $ | 1,158 | 0.40% | |||||||||||||||||||||||||||||||
| Repo | - | - | 0.00% | - | - | 0.00% | 4,891 | 38 | 3.11% | 5,000 | 48 | 3.84% | 5,000 | 48 | 3.84% | |||||||||||||||||||||||||||||||||||||||||
| Fed funds purchased | 202 | 1 | 1.98% | 2,543 | 11 | 1.73% | 3,816 | 19 | 1.99% | 1,906 | 8 | 1.68% | 975 | 2 | 0.82% | |||||||||||||||||||||||||||||||||||||||||
| FHLB & FTN | 71,944 | 459 | 2.55% | 103,421 | 381 | 1.47% | 68,041 | 300 | 1.76% | 40,765 | 203 | 1.99% | 79,581 | 314 | 1.58% | |||||||||||||||||||||||||||||||||||||||||
| Subordinated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| debentures | 10,310 | 78 | 3.03% | 10,310 | 105 | 4.07% | 10,310 | 41 | 1.59% | 10,310 | 67 | 2.60% | 10,310 | 63 | 2.44% | |||||||||||||||||||||||||||||||||||||||||
| Total interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| bearing liabilities | 1,413,381 | 2,378 | 0.67% | 1,289,660 | 1,922 | 0.60% | 1,291,672 | 1,773 | 0.55% | 1,269,940 | 1,629 | 0.51% | 1,245,153 | 1,585 | 0.51% | |||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 342,514 | 315,012 | 316,275 | 325,485 | 311,101 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 230,255 | 205,580 | 164,455 | 155,667 | 157,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| shareholders' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| equity | $ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | $ | 1,713,438 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| income (FTE)* | $ | 16,609 | 3.52% | $ | 15,523 | 3.66% | $ | 15,232 | 3.70% | $ | 15,140 | 3.74% | $ | 14,470 | 3.76% | |||||||||||||||||||||||||||||||||||||||||
| Net interest margin (FTE)* | 3.67% | 3.79% | 3.81% | 3.84% | 3.85% | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core net interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| margin* | 3.65% | 3.76% | 3.78% | 3.81% | 3.82% | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
*See reconciliation of Non-GAAP financial measures |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
FIRST BANCSHARES, INC and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) |
||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||
|
Per Common Share Data |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
| Book value per common share | $ | 20.95 | $ | 19.92 | $ | 18.24 | $ | 17.80 | $ | 17.39 | ||||||||||||
| Effect of intangible assets per share | 4.56 | 2.21 | 2.76 | 2.80 | 2.78 | |||||||||||||||||
| Tangible book value per common share | $ | 16.39 | $ | 17.71 | $ | 15.48 | $ | 15.00 | $ | 14.61 | ||||||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.23 | $ | 0.51 | $ | 0.26 | $ | 0.12 | ||||||||||||
| Effect of acquisition charges | 0.15 | 0.04 | - | 0.29 | 0.39 | |||||||||||||||||
| Taxes on acquisition charges | (0.03) | (0.01) | - | (0.11) | (0.14) | |||||||||||||||||
| Charge related to reduction in deferred tax asset | - | 0.19 | - | - | - | |||||||||||||||||
| Diluted earnings per share, operating | $ | 0.46 | $ | 0.45 | $ | 0.51 | $ | 0.44 | $ | 0.37 | ||||||||||||
|
|
Year to Date |
|||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.12 | ||||||||||||||||||
| Effect of acquisition charges | 0.15 | 0.39 | ||||||||||||||||||||
| Tax | (0.03) | (0.14) | ||||||||||||||||||||
| Diluted earnings per share, operating | $ | 0.46 | $ | 0.37 | ||||||||||||||||||
|
|
Year to Date |
|||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||
| Net income available to common shareholders | $ | 3,957 | $ | 1,122 | ||||||||||||||||||
| Effect of acquisition charges | 1,758 | 3,598 | ||||||||||||||||||||
| Tax | (355) | (1,337) | ||||||||||||||||||||
| Net earnings available to common shareholders, operating | $ | 5,360 | $ | 3,383 | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| Average Balance Sheet Data |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
|
Total average assets |
A |
$ | 1,986,150 | $ | 1,810,252 | $ | 1,772,402 | $ | 1,751,092 | $ | 1,713,438 | |||||||||||
|
Total average earning assets |
B |
$ | 1,811,717 | $ | 1,640,250 | $ | 1,599,704 | $ | 1,577,468 | $ | 1,504,798 | |||||||||||
|
Common Equity |
C |
$ | 230,255 | $ | 205,580 | $ | 164,455 | $ | 155,667 | $ | 157,184 | |||||||||||
| Less intangible assets | 33,929 | 25,258 | 25,442 | 24,878 | 22,375 | |||||||||||||||||
|
Tangible common equity |
D |
$ | 196,326 | $ | 180,322 | $ | 139,013 | $ | 130,789 | $ | 134,809 | |||||||||||
| Three Months Ended | ||||||||||||||||||||||
| Net Interest Income Fully Tax Equivalent |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
|
Net interest income |
E |
$ | 16,380 | $ | 15,221 | $ | 14,935 | $ | 14,835 | $ | 14,168 | |||||||||||
| Tax-exempt investment income | (675) | (586) | (579) | (592) | (593) | |||||||||||||||||
| Taxable investment income | 904 | 888 | 876 | 897 | 895 | |||||||||||||||||
|
Net Interest Income Fully Tax Equivalent |
F |
$ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | $ | 14,470 | |||||||||||
|
Annualized Net Interest Margin |
E/B |
3.62% | 3.71% | 3.73% | 3.76% | 3.77% | ||||||||||||||||
|
Annualized Net Interest Margin, Fully Tax Equivalent |
F/B |
3.67% | 3.79% | 3.81% | 3.84% | 3.85% | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| Core Net Interest Margin |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
| Net interest income (FTE) | $ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | $ | 14,470 | ||||||||||||
| Less purchase accounting adjustments | 59 | 87 | 116 | 117 | 96 | |||||||||||||||||
|
Net interest income, net of purchase accounting adj |
G |
$ | 16,550 | $ | 15,436 | $ | 15,116 | $ | 15,023 | $ | 14,374 | |||||||||||
| Total average earning assets | $ | 1,811,717 | $ | 1,640,250 | $ | 1,599,704 | $ | 1,577,468 | $ | 1,504,798 | ||||||||||||
| Add average balance of loan valuation discount | 1,578 | 1,558 | 1,640 | 1,721 | 2,159 | |||||||||||||||||
|
Avg earning assets, excluding loan valuation discount |
H |
$ | 1,813,295 | $ | 1,641,808 | $ | 1,601,344 | $ | 1,579,189 | $ | 1,506,957 | |||||||||||
|
Core net interest margin |
G/H |
3.65% | 3.76% | 3.78% | 3.81% | 3.82% | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| Efficiency Ratio |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
| Operating Expense | ||||||||||||||||||||||
| Total non-interest expense | $ | 14,598 | $ | 12,390 | $ | 11,888 | $ | 15,070 | $ | 16,095 | ||||||||||||
| Pre-tax non-operating expenses | (1,758) | (384) | (47) | (2,682) | (3,598) | |||||||||||||||||
|
Adjusted Operating Expense |
I |
$ | 12,840 | $ | 12,006 | $ | 11,841 | $ | 12,388 | $ | 12,497 | |||||||||||
| Operating Revenue | ||||||||||||||||||||||
| Net interest income, FTE | $ | 16,609 | $ | 15,523 | $ | 15,232 | $ | 15,140 | $ | 14,470 | ||||||||||||
| Total non-interest income | 3,459 | 3,556 | 3,658 | 3,757 | 3,391 | |||||||||||||||||
| Pre-tax non-operating items | - | - | - | - | - | |||||||||||||||||
|
Adjusted Operating Revenue |
J |
$ | 20,068 | $ | 19,079 | $ | 18,890 | $ | 18,897 | $ | 17,861 | |||||||||||
|
Efficiency Ratio, operating |
I/J |
63.98% | 62.93% | 62.68% | 65.56% | 69.97% | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| Return Ratios |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|||||||||||||||||
|
Net income available to common shareholders |
K |
$ | 3,957 | $ | 2,414 | $ | 4,714 | $ | 2,366 | $ | 1,122 | |||||||||||
| Acquisition charges | 1,758 | 384 | 47 | 2,682 | 3,598 | |||||||||||||||||
| Tax on acquisition charges | (355) | (148) | (18) | (1,035) | (1,337) | |||||||||||||||||
| Charge related to reduction in deferred tax asset | - | 2,081 | - | - | - | |||||||||||||||||
|
Net earnings available to common shareholders, oper |
L |
$ | 5,360 | $ | 4,731 | $ | 4,743 | $ | 4,013 | $ | 3,383 | |||||||||||
|
Annualized return on avg assets |
K/A |
0.80% | 0.53% | 1.06% | 0.54% | 0.26% | ||||||||||||||||
|
Annualized return on avg assets, oper |
L/A |
1.08% | 1.05% | 1.07% | 0.92% | 0.79% | ||||||||||||||||
|
Annualized return on avg common equity, oper |
L/C |
9.31% | 9.21% | 11.54% | 10.31% | 8.61% | ||||||||||||||||
|
Annualized return on avg tangible common equity, oper |
L/D |
10.92% | 10.49% | 13.65% | 12.27% | 10.04% | ||||||||||||||||
| Mortgage Department | ||||||||||||||||||||||
| Net Interest Income after provision for loan losses | $ | 189 | $ | 272 | $ | 249 | $ | 233 | $ | 253 | ||||||||||||
| Loan fee income | 800 | 1,102 | 1,276 | 1,208 | 916 | |||||||||||||||||
| Salaries and employee benefits | 849 | 806 | 882 | 946 | 806 | |||||||||||||||||
| Other non-interest expense | 97 | 101 | 102 | 99 | 114 | |||||||||||||||||
| Earnings before income taxes | $ | 43 | $ | 467 | $ | 541 | $ | 396 | $ | 249 | ||||||||||||
