HATTIESBURG, Miss.--(BUSINESS WIRE)--The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders for the quarter ended September 30, 2020.
Highlights for the Quarter:
- Average loans increased $9.1 million, or 0.3% for the sequential quarter comparison.
- Average deposits increased $143.2 million, or 3.5% for the sequential quarter comparison.
- Provision for loan losses totaled $6.9 million for the quarter as compared to $7.6 million for the sequential quarter comparison and $1.0 million for the third quarter of 2019.
- On September 25, 2020, the Company issued $65 million in aggregate principal amount of subordinated debt.
- Pre-tax, pre-provision operating earnings which excludes acquisition charges, treasury awards, gains from bargain purchase of Southwest Georgia Financial Corporation (“SGB”) and sale of land increased 26.5% to $22.1 million for the quarter ended September 30, 2020 as compared to $17.4 million for the third quarter of 2019.
- Pre-tax, pre-provision operating earnings which excludes acquisition charges, treasury awards, gains from bargain purchase of SGB and sale of land increased 2.9% to $22.1 million for the quarter ended September 30, 2020 as compared to $21.4 million for the second quarter of 2020.
- Due to the current economic environment, the allowance for loan losses increased 22% to $34.3 million or 1.09% of total loans at September 30, 2020 as compared to $28.1 million or 0.88% of total loans at June 30, 2020. The Company also has $8.8 million in credit marks associated with acquired loan portfolios.
- As of October 21, 2020, total COVID related modifications were $78.5 million, representing 2.5% of the loan portfolio and down from a peak of $676 million or 21% of the loan portfolio. For additional details related to our response and potential effects of COVID-19, see the investor presentation filed and available under presentations and press releases included in the investor relations section of the company’s website: www.thefirstbank.com.
- During the first quarter of 2020, the Company elected to delay the adoption of the Current Expected Credit Losses (“CECL”) afforded through the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
M. Ray “Hoppy” Cole, President and Chief Executive Officer, commented, “We are pleased with the results of the third quarter and our Company continues to show strong performance in revenue growth and increasing profitability. Pre-tax, pre-provision income increased 26% year over year and 2.9% linked quarter. We are proud of this improvement given the challenging market conditions related to margin compression and the uncertainty in economic activity associated with the pandemic.
During the quarter we raised an additional $65MM of subordinated debt which positions our Company to take advantage of any opportunities that may arise post the pandemic, and to resume our previously approved share buyback program.”
Quarterly Earnings
Net income available to common shareholders totaled $11.9 million for the quarter ended September 30, 2020, a decrease of $0.4 million, or 2.9%, compared to $12.3 million for the quarter ended September 30, 2019.
Net income available to common shareholders totaled $11.9 million for the quarter ended September 30, 2020, a decrease of $5.0 million, or 29.6%, compared to $16.9 million for the quarter ended June 30, 2020. The Company recorded a $7.0 million bargain purchase gain on the acquisition of SGB during the quarter ended June 30, 2020.
Pre-tax, pre-provision operating earnings, which exclude acquisition charges, treasury awards, and gains increased 26.5% to $22.1 million for the quarter ended September 30, 2020 as compared to $17.4 million for the third quarter of 2019 and increased 2.9% to $22.1 million for the quarter ended September 30, 2020 as compared to $21.4 million for the second quarter of 2020.
Provision for loan losses totaled $6.9 million for the quarter ended September 30, 2020, an increase of $5.9 million, or 611% as compared to $1.0 million for the third quarter of 2019 and a decrease of $0.7 million, or 9.0% as compared to $7.6 million for the second quarter of 2020. $5.8 million of the $6.9 million provision for loan loss expense for the quarter ended September 30, 2020 was related to the anticipated economic effects of COVID-19.
Earnings Per Share
For the third quarter of 2020, fully diluted earnings per share were $0.55, compared to $0.71 for the third quarter of 2019. The additional provision for loan losses expense of $5.9 million, or $4.5 million net of tax, for the quarter ended September 30, 2020, which is primarily attributable to the COVID-19 pandemic, represents a decrease of $0.21 in fully diluted earnings per share.
For the third quarter of 2020, fully diluted earnings per share were $0.55, compared to $0.79 for the second quarter of 2020. The bargain purchase and sale of land gains for the quarter ended June 30, 2020 accounted for an increase of $0.35 in fully diluted earnings per share.
Fully diluted earnings per share for the quarter ended September 30, 2020 include the issuance of 2,546,967 shares of our common stock during the second quarter of 2020 in association with the acquisition of SGB and the issuance of 1,682,889 shares of our common stock during the fourth quarter of 2019 in association with the acquisition of First Florida Bancorp, Inc. (“FFB”). Fully diluted earnings per share for all quarters of 2020 include the purchase by the Company of 168,188 shares throughout the calendar year of 2019.
Fully diluted earnings per share for the quarter ended September 30, 2019 include the issuance of 2,377,501 shares of our common stock during the first quarter of 2019 in association with the acquisition of FPB Financial Corp (“FPB”).
Balance Sheet
Consolidated assets increased $79.3 million to $5.164 billion at September 30, 2020 from $5.085 billion at June 30, 2020. Assets include $260.2 million in PPP loans.
Total average loans were $3.166 billion for the quarter ended September 30, 2020, as compared to $3.157 billion for the quarter ended June 30, 2020, and $2.343 billion for the quarter ended September 30, 2019, representing an increase of $9.1 million, or 0.3%, for the sequential quarter comparison, and an increase of $822.3 million, or 35.1%, in prior year quarterly comparison. The acquisitions of FFB and SGB accounted for $647.2 million, net of fair value marks, of the total increase in average loans as compared to the third quarter of 2019.
Average loans increased $9.1 million, or 0.3% for the sequential quarter comparison. Excluding the acquired loans and PPP loans, average loans decreased $85.1 million, or 3.6% as compared to the quarter ended September 30, 2019.
Total average deposits were $4.212 billion for the quarter ended September 30, 2020, as compared to $4.069 billion for the quarter ended June 30, 2020, and $2.766 billion for the quarter ended September 30, 2019, representing an increase of $143.2 million, or 3.5%, for the sequential quarter comparison, and an increase of $1.447 billion, or 52.3%, in prior year quarterly comparison. The acquisitions of FFB and SGB accounted for $912.1 million of the total increase in average deposits as compared to the third quarter of 2019.
Average deposits increased $143.2 million, or 3.5% for the sequential quarter comparison. Excluding the acquired deposits, average deposits increased $534.5 million, or 19.3% as compared to the quarter ended September 30, 2019.
The Company implemented Deposit Reclassification at the beginning of 2020. This program reclassifies noninterest bearing deposits and NOW deposit balances to money market accounts. This program reduces our reserve balance required at the Federal Reserve Bank of Atlanta which provides additional funds for liquidity and lending. At quarter end September 30, 2020, $712.8 million in noninterest deposit balances and $677.3 million in NOW deposit accounts were reclassified as money market accounts.
Asset Quality
Nonperforming assets totaled $44.9 million at September 30, 2020, a decrease of $0.8 million compared to $45.7 million at June 30, 2020 and a decrease of $2.4 million compared to $47.3 million at September 30, 2019. Nonaccrual loans decreased $1.9 million as compared to June 30, 2020 and increased $2.1 million as compared to September 30, 2019. Other real estate decreased $0.3 million as compared to June 30, 2020 and decreased $4.8 million as compared to September 30, 2019.
The ratio of the allowance for loan and leases losses (ALLL) to total loans was 1.09% at September 30, 2020, 0.88% at June 30, 2020 and 0.56% at September 30, 2019. The ratio of annualized net charge-offs (recoveries) to total loans was 0.09% for the quarter ended September 30, 2020 compared to 0.04% for the quarter ended June 30, 2020 and 0.004% for the quarter ended September 30, 2019.
Third Quarter 2020 vs. Third Quarter 2019 Earnings Comparison
Net income available to common shareholders for the third quarter of 2020 totaled $11.9 million compared to $12.3 million for the third quarter of 2019, a decrease of $0.4 million or 2.9%. In comparing the quarters, an increased provision for loan losses in the amount of $5.9 million more was expensed during the third quarter of 2020 as compared to the third quarter of 2019.
Net interest income for the third quarter of 2020 was $40.0 million, an increase of $9.5 million when compared to the third quarter of 2019. The increase was due to interest income earned on a higher volume of loans. Fully tax equivalent (“FTE”) net interest income totaled $40.6 million and $30.7 million for the third quarter of 2020 and 2019, respectively. FTE net interest income increased $9.9 million in the prior year quarterly comparison due to increased loan volume. Purchase accounting adjustments accounted for $0.6 million of the difference in net interest income for the third quarter comparisons. Third quarter 2020 FTE net interest margin of 3.58% included 17 basis points related to purchase accounting adjustments compared to 4.05% for the same quarter in 2019, which included 19 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 45 basis points in prior year quarterly comparison.
Non-interest income increased $1.7 million for the third quarter of 2020 as compared to the third quarter of 2019. Mortgage income increased $1.2 million in prior year quarterly comparison.
Third quarter 2020 non-interest expense was $26.9 million, an increase of $6.1 million, or 29.3% as compared to the third quarter of 2019. Excluding the net decrease in acquisition charges of $0.5 million for the quarterly comparison, non-interest expense increased $6.6 million in the third quarter of 2020, of which $4.1 million was attributable to the operations of FFB and SGB, as compared to third quarter of 2019.
Investment securities totaled $984.9 million, or 19.1% of total assets at September 30, 2020, versus $640.8 million, or 18.4% of total assets at September 30, 2019. The average balance of investment securities increased $335.8 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities decreased 76 basis points to 2.48% from 3.24% in prior year quarterly comparison. The investment portfolio had a net unrealized gain of $33.2 million at September 30, 2020 as compared to a net unrealized gain of $13.9 million at September 30, 2019.
The FTE average yield on all earning assets decreased 80 basis points in prior year quarterly comparison, from 4.94% for the third quarter of 2019 to 4.14% for the third quarter of 2020. Average interest expense decreased 56 basis points from 1.17% for the third quarter of 2019 to 0.61% for the third quarter of 2020. Cost of all deposits averaged 47 basis points for the third quarter of 2020 compared to 76 basis points for the third quarter of 2019.
Third Quarter 2020 vs Second Quarter 2020 Earnings Comparison
Net income available to common shareholders for the third quarter of 2020 decreased $5.0 million to $11.9 million compared to $16.9 million for the second quarter of 2020. During the second quarter of 2020, the Company recorded a bargain purchase gain in the amount of $7.0 million, net of tax.
Net interest income for the third quarter of 2020 was $40.0 million as compared to $39.2 million for the second quarter of 2020, an increase of $0.8 million. FTE net interest income increased $0.8 million to $40.6 million from $39.8 million in sequential-quarter comparison. Third quarter 2020 FTE net interest margin of 3.58% included 17 basis points related to purchase accounting adjustments compared to 3.63% for the second quarter in 2020, which included 21 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 1 basis point in sequential quarter comparison.
Investment securities totaled $984.9 million, or 19.1% of total assets at September 30, 2020, versus $953.3 million, or 18.7% of total assets at June 30, 2020. The average balance of investment securities increased $51.2 million in sequential-quarter comparison. The average tax equivalent yield on investment securities decreased 7 basis points to 2.48% from 2.55% in sequential-quarter comparison. The investment portfolio had a net unrealized gain of $33.2 million at September 30, 2020 as compared to a net unrealized gain of $32.9 million at June 30, 2020.
The FTE average yield on all earning assets decreased in sequential-quarter comparison from 4.23% to 4.14%. Average interest expense decreased 6 basis points from 0.67% for the second quarter of 2020 to 0.61% for the third quarter of 2020. Cost of all deposits averaged 47 basis points for the third quarter of 2020 compared to 52 basis points for the second quarter of 2020.
Excluding the bargain purchase and sale of land gains, non-interest income increased $0.8 million in sequential-quarter comparison resulting from increased mortgage income in the amount of $0.3 million and increased service charges on deposit accounts in the amount of $0.2 million.
Non-interest expense for the third quarter of 2020 was $26.9 million compared to $28.1 million for the second quarter of 2020. Excluding acquisition charges for each quarter, non-interest expense increased $0.9 million.
Year-to-Date Earnings Comparison
In year-over-year comparison, net income available to common shareholders increased $5.3 million, or 16.6%, from $31.9 million for the nine months ended September 30, 2019 to $37.2 million for the same period ended September 30, 2020. Excluding the bargain purchase and sale of land gains of $7.5 million, net of tax, and the increased provision expense of $14.4 million, net of tax, net income available to common shareholders increased $12.2 million in year-over-year comparison.
Net interest income increased $24.9 million in year-over-year comparison, primarily due to interest income earned on a higher volume of loans and securities.
Non-interest income increased $4.2 million in year-over-year comparison excluding the awards and gains mentioned above. Mortgage income increased $2.9 million and interchange fee income increased $0.9 million in the year-over-year comparison.
Non-interest expense was $78.4 million for the nine months ended September 30, 2020 an increase of $14.8 million as compared to the same period ended September 30, 2019. $11.7 million of the increase is related to the operations of FFB and SGB.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.12 per share to be paid on its common stock on November 24, 2020 to shareholders of record as of the close of business on November 10, 2020.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association (“The First”). Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s stock is traded on the NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes operating net earnings, operating efficiency ratio, pre-tax, pre-provision operating earnings, operating earnings per share, diluted operating earnings per common share, fully tax equivalent net interest income, fully tax equivalent net interest margin, core net interest margin, average tax equivalent yield on investment securities, fully tax equivalent average yield on all earning assets, 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 and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential,” “positioned” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risk and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) changes in economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations; (3) interest rate risk; (4) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (5) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions 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; (6) changes in management’s plans for the future; (7) credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values, or competition; (8) changes in accounting principles, policies, or guidelines; (9) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (10) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (11) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (12) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. 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. Undue reliance should not be placed on forward-looking statements. 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.
Statements about the potential effects of the COVID-19 pandemic on the Company’s assets, business, liquidity, financial condition, prospects, and results of operations may constitute forward-looking statements and are subject to the risks that the actual effects may differ, possibly materially, from what is reflected in these forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the depth, dispersion and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, employees, third parties and the Company.
FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (Dollars in thousands except per share data) |
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EARNINGS DATA |
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Total Interest Income |
$ 46,337 |
$ 45,799 |
$ 41,598 |
$ 40,444 |
$ 37,241 |
Total Interest Expense |
6,365 |
6,619 |
7,533 |
7,000 |
6,782 |
Net Interest Income |
39,972 |
39,180 |
34,065 |
33,444 |
30,459 |
FTE net interest income* |
40,608 |
39,772 |
34,526 |
33,847 |
30,739 |
Provision for loan losses |
6,921 |
7,606 |
7,102 |
850 |
974 |
Non-interest income |
8,794 |
15,680 |
6,474 |
7,574 |
7,103 |
Non-interest expense |
26,935 |
28,070 |
23,439 |
24,960 |
20,825 |
Earnings before income taxes |
14,910 |
19,184 |
9,998 |
15,208 |
15,763 |
Income tax expense |
2,993 |
2,241 |
1,687 |
3,353 |
3,491 |
Net income available to common shareholders |
$ 11,917 |
$ 16,943 |
$ 8,311 |
$ 11,855 |
$ 12,272 |
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA |
|
|
|
|
|
Basic earnings per share |
$ 0.56 |
$ 0.79 |
$ 0.44 |
$ 0.65 |
$ 0.72 |
Diluted earnings per share |
0.55 |
0.79 |
0.44 |
0.64 |
0.71 |
Diluted earnings per share, operating* |
0.56 |
0.52 |
0.47 |
0.72 |
0.74 |
Quarterly dividends per share |
.10 |
.10 |
.10 |
.08 |
.08 |
Book value per common share at end of period |
29.82 |
29.34 |
29.49 |
28.91 |
27.92 |
Tangible book value per common share at period end* |
20.93 |
20.40 |
19.52 |
18.87 |
19.39 |
Market price at end of period |
20.97 |
22.50 |
19.07 |
35.52 |
32.30 |
Shares outstanding at period end |
21,408,017 |
21,395,258 |
18,851,955 |
18,802,266 |
17,123,625 |
Weighted average shares outstanding: |
|
|
|
|
|
Basic |
21,405,309 |
21,341,913 |
18,818,115 |
18,241,244 |
17,131,080 |
Diluted |
21,544,040 |
21,437,180 |
18,942,129 |
18,398,609 |
17,267,953 |
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
Total assets |
$5,085,340 |
$4,913,620 |
$3,990,493 |
$3,767,587 |
$3,439,202 |
Loans and leases |
3,165,653 |
3,156,524 |
2,602,340 |
2,512,524 |
2,343,392 |
Total deposits |
4,212,410 |
4,069,239 |
3,186,943 |
2,963,603 |
2,765,816 |
Total common equity |
632,527 |
607,127 |
547,309 |
518,070 |
470,024 |
Total tangible common equity* |
441,635 |
423,966 |
358,889 |
346,742 |
324,619 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS |
|
|
|
|
|
Annualized return on avg assets (ROA) |
0.94% |
1.38% |
0.83% |
1.26% |
1.43% |
Annualized return on avg assets, operating* |
0.95% |
0.91% |
0.89% |
1.40% |
1.49% |
Annualized pre-tax, pre-provision, operating* |
1.74% |
1.75% |
1.79% |
1.87% |
2.03% |
Annualized return on avg common equity, operating* |
7.65% |
7.40% |
6.50% |
10.16% |
10.91% |
Annualized return on avg tangible common equity, oper* |
10.95% |
10.60% |
9.91% |
15.18% |
15.80% |
Average loans to average deposits |
75.15% |
77.57% |
81.66% |
84.78% |
84.73% |
FTE Net Interest Margin* |
3.58% |
3.63% |
3.93% |
4.06% |
4.05% |
Efficiency Ratio |
54.52% |
50.62% |
57.17% |
60.26% |
55.03% |
Efficiency Ratio, operating* |
54.04% |
53.91% |
55.36% |
55.67% |
53.17% |
*See reconciliation of Non-GAAP financial measures |
|
|
|
|
|
CREDIT QUALITY |
|
|
|
|
|
Allowance for loan losses (ALLL) as a % of total loans |
1.09% |
0.88% |
0.80% |
0.53% |
0.56% |
Nonperforming assets to tangible equity + ALLL |
9.31% |
9.84% |
12.12% |
13.13% |
13.71% |
Nonperforming assets to total loans + OREO |
1.42% |
1.44% |
1.81% |
1.86% |
2.00% |
Annualized QTD net charge-offs (recoveries) to total loans |
0.09% |
0.04% |
0.03% |
(0.002%) |
0.0041% |
|
|
|
|
|
|
| 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,
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ 603,736 |
$ 539,125 |
$ 286,759 |
$ 168,864 |
$ 159,990 |
Securities available-for-sale |
957,458 |
927,205 |
762,977 |
765,087 |
612,002 |
Securities held-to-maturity |
- |
- |
- |
- |
6,328 |
Other investments |
27,461 |
26,059 |
25,911 |
26,690 |
22.517 |
Total investment securities |
984,919 |
953,264 |
788,888 |
791,777 |
640,847 |
Loans held for sale |
22,482 |
18,632 |
13,288 |
10,810 |
11,104 |
Total loans |
3,155,932 |
3,171,535 |
2,602,288 |
2,600,358 |
2,349,986 |
Allowance for loan losses |
(34,256) |
(28,064) |
(20,804) |
(13,908) |
(13,043) |
Loans, net |
3,121,676 |
3,143,471 |
2,581,484 |
2,586,450 |
2,336,943 |
Premises and equipment |
124,875 |
125,053 |
108,013 |
104,980 |
96,726 |
Other Real Estate Owned |
5,202 |
5,471 |
6,974 |
7,299 |
9,974 |
Goodwill and other intangibles |
190,380 |
191,431 |
187,927 |
188,865 |
146,091 |
Other assets |
110,889 |
108,458 |
88,468 |
82,818 |
80,256 |
Total assets |
$5,164,159 |
$5,084,905 |
$4,061,801 |
$3,941,863 |
$3,481,931 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
Non-interest bearing deposits^ |
$ 482,236 |
$ 486,039 |
$ 340,606 |
$ 723,208 |
$ 642,054 |
Interest-bearing deposits |
3,746,978 |
3,730,851 |
2,937,188 |
2,353,325 |
2,119,181 |
Total deposits |
4,229,214 |
4,216,890 |
3,277,794 |
3,076,533 |
2,761,345 |
Borrowings |
115,827 |
116,005 |
116,180 |
214,319 |
136,250 |
Subordinated debentures |
144,709 |
80,756 |
80,717 |
80,678 |
80,639 |
Other liabilities |
36,040 |
43,459 |
31,184 |
26,675 |
25,609 |
Total liabilities |
4,525,790 |
4,457,110 |
3,505,875 |
3,398,205 |
3,003,843 |
Total shareholders’ equity |
638,369 |
627,795 |
555,926 |
543,658 |
478,088 |
Total liabilities and shareholders’ equity |
$5,164,159 |
$5,084,905 |
$4,061,801 |
$3,941,863 |
$3,481,931 |
| ^Reclassified $712,806 to interest-bearing deposits | |||||
| FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
|||||
EARNINGS STATEMENT |
Three Months Ended |
||||
9/30/20 |
6/30/20 |
3/31/20 |
12/31/19 |
9/30/19 |
|
Interest Income: |
|
|
|
|
|
Loans, including fees |
$ 39,344 |
$ 39,184 |
$ 34,290 |
$ 33,556 |
$ 31,279 |
Investment securities |
5,309 |
5,187 |
5,304 |
5,298 |
4,752 |
Accretion of purchase accounting adjustments |
1,655 |
1,409 |
1,715 |
1,553 |
1,201 |
Other interest income |
29 |
19 |
289 |
37 |
9 |
Total interest income |
46,337 |
45,799 |
41,598 |
40,444 |
37,241 |
Interest Expense: |
|
|
|
|
|
Deposits |
5,110 |
5,967 |
6,034 |
5,489 |
5,156 |
Borrowings |
265 |
224 |
917 |
771 |
451 |
Subordinated debentures |
1,188 |
1,176 |
1,203 |
1,213 |
1,270 |
Accretion of purchase accounting adjustments |
(198) |
(748) |
(621) |
(473) |
(95) |
Total interest expense |
6,365 |
6,619 |
7,533 |
7,000 |
6,782 |
Net interest income |
39,972 |
39,180 |
34,065 |
33,444 |
30,459 |
Provision for loan losses |
6,921 |
7,606 |
7,102 |
850 |
974 |
Net interest income after provision for loan losses |
33,051 |
31,574 |
26,963 |
32,594 |
29,485 |
|
|
|
|
|
|
Non-interest Income: |
|
|
|
|
|
Service charges on deposit accounts |
1,780 |
1,597 |
1,914 |
2,110 |
1,979 |
Mortgage Income |
2,961 |
2,646 |
1,567 |
1,720 |
1,800 |
Interchange Fee Income |
2,491 |
2,395 |
1,986 |
2,075 |
2,252 |
Gain (loss) on securities, net |
32 |
73 |
174 |
(9) |
57 |
Financial Assistance Award/Bank Enterprise Award |
- |
- |
- |
714 |
- |
Bargain Purchase Gain and Gain on Sale of Land |
- |
7,643 |
- |
- |
- |
Other charges and fees |
1,530 |
1,326 |
833 |
964 |
1,015 |
Total non-interest income |
8,794 |
15,680 |
6,474 |
7,574 |
7,103 |
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
Salaries and employee benefits |
15,494 |
15,866 |
13,228 |
13,092 |
11,612 |
Occupancy expense |
3,826 |
3,200 |
2,918 |
3,190 |
2,632 |
FDIC/OCC premiums |
447 |
237 |
147 |
147 |
111 |
Marketing |
24 |
25 |
213 |
248 |
62 |
Amortization of core deposit intangibles |
1,052 |
1,052 |
938 |
907 |
796 |
Other professional services |
990 |
984 |
874 |
951 |
1,140 |
Acquisition charges |
238 |
2,295 |
740 |
2,300 |
705 |
Other non-interest expense |
4,864 |
4,411 |
4,381 |
4,125 |
3,767 |
Total Non-interest expense |
26,935 |
28,070 |
23,439 |
24,960 |
20,825 |
Earnings before income taxes |
14,910 |
19,184 |
9,998 |
15,208 |
15,763 |
Income tax expense |
2,993 |
2,241 |
1,687 |
3,353 |
3,491 |
Net income available to common shareholders |
$ 11,917 |
$ 16,943 |
$ 8,311 |
$ 11,855 |
$ 12,272 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
$ 0.55 |
$ 0.79 |
$ 0.44 |
$ 0.64 |
$ 0.71 |
Diluted earnings per common share, operating* |
$ 0.56 |
$ 0.52 |
$ 0.47 |
$ 0.72 |
$ 0.74 |
*See reconciliation of Non-GAAP financial measures |
|
|
|
|
|
|
|||||
| FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
|||||
Year to Date |
|||||
| EARNINGS STATEMENT |
|
2020 |
|
2019 |
|
Interest Income: |
|
|
|
|
|
Loans, including fees |
|
$ 112,818 |
|
$ 89,760 |
|
Investment securities |
|
15,800 |
|
14,108 |
|
Accretion of purchase accounting adjustments |
|
4,779 |
|
3,988 |
|
Other interest income |
|
337 |
|
229 |
|
Total interest income |
|
133,734 |
|
108,085 |
|
Interest Expense: |
|
|
|
|
|
Deposits |
|
17,111 |
|
14,808 |
|
Borrowings |
|
1,406 |
|
1,285 |
|
Subordinated debentures |
|
3,567 |
|
3,691 |
|
Amortization of purchase accounting adjustments |
|
(1,567) |
|
(61) |
|
Total interest expense |
|
20,517 |
|
19,723 |
|
Net interest income |
|
113,217 |
|
88,362 |
|
Provision for loan losses |
|
21,628 |
|
2,888 |
|
Net interest income after provision for loan losses |
|
91,589 |
|
85,474 |
|
|
|
|
|
|
|
Non-interest Income: |
|
|
|
|
|
Service charges on deposit accounts |
|
5,291 |
|
5,728 |
|
Mortgage Income |
|
7,174 |
|
4,268 |
|
Interchange Fee Income |
|
6,872 |
|
5,949 |
|
Gain (loss) on securities, net |
|
279 |
|
131 |
|
Financial Assistance Award/Bank Enterprise Award |
|
- |
|
233 |
|
Bargain Purchase Gain and Gain on Sale of Land |
|
7,643 |
|
- |
|
Other charges and fees |
|
3,689 |
|
3,064 |
|
Total non-interest income |
|
30,948 |
|
19,373 |
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
Salaries and employee benefits |
|
44,588 |
|
33,924 |
|
Occupancy expense |
|
9,943 |
|
7,606 |
|
FDIC/OCC premiums |
|
831 |
|
485 |
|
Marketing |
|
262 |
|
397 |
|
Amortization of core deposit intangibles |
|
3,041 |
|
2,308 |
|
Other professional services |
|
2,848 |
|
3,040 |
|
Acquisition charges |
|
3,273 |
|
3,975 |
|
Other non-interest expense |
|
13,658 |
|
11,874 |
|
Total Non-interest expense |
|
78,444 |
|
63,609 |
|
Earnings before income taxes |
|
44,093 |
|
41,238 |
|
Income tax expense |
|
6,922 |
|
9,348 |
|
Net income available to common shareholders |
|
$ 37,171 |
|
$ 31,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ 1.80 |
|
$ 1.90 |
|
Diluted earnings per common share, operating* |
|
$ 1.56 |
|
$ 2.07 |
|
*See reconciliation of Non-GAAP financial measures |
|
|
|
|
|
|
|
|
|
|
|
| FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (Dollars in thousands) |
|||||||
COMPOSITION OF LOANS |
Sept 30,
|
Percent
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
Percent
|
Commercial, financial and agricultural |
$ 576,812 |
18.1% |
$ 629,497 |
$ 327,979 |
$ 332,600 |
$ 338,584 |
14.3% |
Real estate – construction |
330,070 |
10.4% |
337,337 |
334,707 |
359,195 |
284,103 |
12.0% |
Real estate – commercial |
1,191,514 |
37.5% |
1,163,897 |
1,048,854 |
1,028,012 |
943,218 |
39.9% |
Real estate – residential |
999,381 |
31.4% |
978,372 |
828,378 |
814,282 |
724,860 |
30.7% |
Lease Financing Receivable |
2,478 |
0.1% |
2,811 |
3,526 |
3,095 |
3,239 |
0.1% |
Obligations of States & subdivisions |
13,345 |
0.4% |
17,010 |
18,218 |
20,716 |
16,545 |
0.7% |
Consumer |
42,332 |
1.3% |
42,611 |
40,626 |
42,458 |
39,437 |
1.7% |
Loans held for sale |
22,482 |
0.8% |
18,632 |
13,288 |
10,810 |
11,104 |
0.6% |
Total loans |
$3,178,414 |
100% |
$3,190,167 |
$2,615,576 |
$2,611,168 |
$2,361,090 |
100% |
|
|
|
|
|
|
|
|
COMPOSITION OF DEPOSITS |
Sept 30,
|
Percent
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
Percent
|
Noninterest bearing^ |
$ 482,236 |
11.4% |
$486,039 |
$340,606 |
$723,208 |
$642,054 |
23.3% |
NOW and other^ |
658,453 |
15.6% |
601,195 |
478,526 |
941,598 |
926,704 |
33.5% |
Money Market/Savings^ |
2,456,504 |
58.1% |
2,451,991 |
1,826,973 |
750,010 |
651,539 |
23.6% |
Time Deposits of less than $250,000 |
473,265 |
11.2% |
499,406 |
462,808 |
479,386 |
401,549 |
14.5% |
Time Deposits of $250,000 or more |
158,756 |
3.7% |
178,259 |
168,881 |
182,331 |
139,489 |
5.1% |
Total Deposits |
$4,229,214 |
100% |
$4,216,890 |
$3,277,794 |
$3,076,533 |
$2,761,345 |
100% |
|
|
|
|
|
|
|
|
Deposits Without Reclassification^ |
Sept 30,
|
Percent
|
June 30,
|
|
|
|
|
Noninterest bearing |
$1,195,042 |
28.3% |
$1,189,766 |
|
|
|
|
Now and other |
1,335,798 |
31.6% |
1,347,324 |
|
|
|
|
Money Market/Savings |
1,066,353 |
25.2% |
1,002,135 |
|
|
|
|
Time Deposits of less than $250,000 |
473,265 |
11.2% |
499,406 |
|
|
|
|
Time Deposits of $250,000 or more |
158,756 |
3.7% |
178,259 |
|
|
|
|
Total Deposits |
$4,229,214 |
100% |
$4,216,890 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA |
Sept 30,
|
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Nonaccrual loans |
$ 37,300 |
|
$ 39,201 |
$ 37,751 |
$ 38,393 |
$ 35,175 |
|
Loans past due 90 days and over |
2,396 |
|
1,009 |
2,393 |
2,715 |
2,116 |
|
Total nonperforming loans |
39,696 |
|
40,210 |
40,144 |
41,108 |
37,291 |
|
Other real estate owned |
5,202 |
|
5,471 |
6,974 |
7,299 |
9,974 |
|
Nonaccrual securities |
- |
|
- |
- |
- |
52 |
|
Total nonperforming assets |
$ 44,898 |
|
$45,681 |
$47,118 |
$48,407 |
$ 47,317 |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
0.87% |
|
0.90% |
1.16% |
1.23% |
1.36% |
|
Nonperforming assets to total loans + OREO |
1.42% |
|
1.44% |
1.81% |
1.86% |
2.00% |
|
ALLL to nonperforming loans |
86.30% |
|
69.79% |
51.82% |
33.83% |
34.98% |
|
ALLL to total loans |
1.09% |
|
0.88% |
0.80% |
0.53% |
0.56% |
|
|
|
|
|
|
|
|
|
Qtr-to-date net charge-offs (recoveries) |
$ 729 |
|
$ 346 |
$ 205 |
$ (15) |
$ 23 |
|
Annualized QTD net chg-offs (recs) to loans |
0.09% |
|
0.04% |
0.03% |
(0.002%) |
0.004% |
|
| 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, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
||||||||||
|
|
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 | $ 616,168 |
$ 3,432 |
2.23% |
$ 605,626 |
$ 3,439 |
2.27% |
$ 560,613 |
$ 3,944 |
2.81% |
$ 556,004 |
$ 4,108 |
2.96% |
$ 494,184 |
$ 3,926 |
3.18% |
||||
| Tax-exempt | |||||||||||||||||||
| securities | 341,550 |
2,513 |
2.94% |
300,922 |
2,340 |
3.11% |
224,212 |
1,821 |
3.25% |
188,709 |
1,593 |
3.38% |
127,750 |
1,108 |
3.47% |
||||
| Total investment | |||||||||||||||||||
| securities | 957,718 |
5,945 |
2.48% |
906,548 |
5,779 |
2.55% |
784,825 |
5,765 |
2.94% |
744,713 |
5,701 |
3.06% |
621,934 |
5,034 |
3.24% |
||||
| in other banks | 413,786 |
29 |
0.03% |
321,559 |
19 |
0.02% |
129,978 |
289 |
0.89% |
80,612 |
37 |
0.18% |
71,165 |
7 |
0.04% |
||||
| Loans | 3,165,653 |
40,999 |
5.18% |
3,156,524 |
40,593 |
5.14% |
2,602,340 |
36,005 |
5.53% |
2,512,524 |
35,109 |
5.59% |
2,343,392 |
32,480 |
5.54% |
||||
| Total Interest | |||||||||||||||||||
| earning assets | 4,537,157 |
46,973 |
4.14% |
4,384,631 |
46,391 |
4.23% |
3,517,143 |
42,059 |
4.78% |
3,337,849 |
40,847 |
4.90% |
3,036,491 |
37,521 |
4.94% |
||||
| Other assets | 548,183 |
528,989 |
473,350 |
429,738 |
402,711 |
||||||||||||||
| Total assets | $ 5,085,340 |
$ 4,913,620 |
$ 3,990,493 |
$ 3,767,587 |
$ 3,439,202 |
||||||||||||||
| Interest-bearing | |||||||||||||||||||
| liabilities: | |||||||||||||||||||
| Deposits | $ 3,960,054 |
$ 4,912 |
0.50% |
$ 3,746,535 |
$ 5,219 |
0.56% |
$ 3,042,529 |
$ 5,413 |
0.71% |
$ 2,263,299 |
$ 5,016 |
0.89% |
$ 2,140,419 |
$ 5,061 |
0.95% |
||||
| Borrowed Funds | 115,935 |
265 |
0.91% |
116,270 |
224 |
0.77% |
145,267 |
917 |
2.53% |
174,475 |
771 |
1.77% |
95,241 |
451 |
1.89% |
||||
| Subordinated | |||||||||||||||||||
| debentures | 81,470 |
1,188 |
5.83% |
80,736 |
1,176 |
5.83% |
80,697 |
1,203 |
5.96% |
80,658 |
1,213 |
6.02% |
80,619 |
1,270 |
6.30% |
||||
| Total interest | |||||||||||||||||||
| bearing liabilities | 4,157,459 |
6,365 |
0.61% |
3,943,541 |
6,619 |
0.67% |
3,268,493 |
7,533 |
0.92% |
2,518,432 |
7,000 |
1.11% |
2,316,279 |
6,782 |
1.17% |
||||
| Other liabilities | 295,354 |
362,952 |
174,691 |
731,085 |
652,899 |
||||||||||||||
| Shareholders' equity | 632,527 |
607,127 |
547,309 |
518,070 |
470,024 |
||||||||||||||
| Total liabilities and | |||||||||||||||||||
| shareholders' | |||||||||||||||||||
| equity | $ 5,085,340 |
$ 4,913,620 |
$ 3,990,493 |
$ 3,767,587 |
$ 3,439,202 |
||||||||||||||
| Net interest | |||||||||||||||||||
| income (FTE)* | $ 40,608 |
3.53% |
$ 39,772 |
3.56% |
$ 34,526 |
3.86% |
$ 33,847 |
3.78% |
$ 30,739 |
3.77% |
|||||||||
| Net interest margin (FTE)* | 3.58% |
3.63% |
3.93% |
4.06% |
4.05% |
||||||||||||||
| Core net interest | |||||||||||||||||||
| margin* | 3.41% |
3.42% |
3.65% |
3.80% |
3.86% |
||||||||||||||
| *See reconciliation for Non-GAAP financial measures | |||||||||||||||||||
| FIRST BANCSHARES, INC and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) |
||||||
|
Three Months Ended |
|||||
Per Common Share Data |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Book value per common share |
$ 29.82 |
$ 29.34 |
$ 29.49 |
$ 28.91 |
$ 27.92 |
|
Effect of intangible assets per share |
8.89 |
8.94 |
9.97 |
10.04 |
8.53 |
|
Tangible book value per common share |
$ 20.93 |
$ 20.40 |
$ 19.52 |
$ 18.87 |
$ 19.39 |
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ 0.55 |
$ 0.79 |
$ 0.44 |
$ 0.64 |
$ 0.71 |
|
Effect of acquisition charges |
0.01 |
0.11 |
0.04 |
0.14 |
0.04 |
|
Tax on acquisition charges |
- |
(0.03) |
(0.01) |
(0.03) |
(0.01) |
|
Effect of bargain purchase gain and gain on sale of land |
- |
(0.36) |
- |
- |
- |
|
Tax on gain on sale of land |
- |
0.01 |
- |
- |
- |
|
Effect of Treasury awards |
- |
- |
- |
(0.04) |
- |
|
Tax on Treasury awards |
- |
- |
- |
0.01 |
- |
|
Diluted earnings per share, operating |
$ 0.56 |
$ 0.52 |
$ 0.47 |
$ 0.72 |
$ 0.74 |
|
|
|
|
|
|
|
|
|
Year to Date |
|
||||
|
2020 |
|
2019 |
|
||
Diluted earnings per share |
|
$ 1.80 |
|
$ 1.90 |
|
|
Effect of acquisition charges |
|
0.16 |
|
0.24 |
|
|
Tax on acquisition charges |
|
(0.03) |
|
(0.06) |
|
|
Effect of bargain purchase gain and gain on sale of land |
|
(0.38) |
|
- |
|
|
Tax on gain on sale of land |
|
.01 |
|
- |
|
|
Effect of Treasury awards |
|
- |
|
(0.01) |
|
|
Tax on Treasury awards |
|
- |
|
- |
|
|
Diluted earnings per share, operating |
|
$ 1.56 |
|
$ 2.07 |
|
|
|
|
|
|
|
|
|
|
Year to Date |
|
||||
|
2020 |
|
2019 |
|
||
Net income available to common shareholders |
|
$ 37,171 |
|
$ 31,890 |
|
|
Acquisition charges |
|
3,273 |
|
3,975 |
|
|
Tax on acquisition charges |
|
(743) |
|
(887) |
|
|
Bargain purchase gain and gain on sale of land |
|
(7,643) |
|
- |
|
|
Tax on gain on sale of land |
|
157 |
|
- |
|
|
Treasury awards |
|
- |
|
(233) |
|
|
Tax on Treasury awards |
|
- |
|
59 |
|
|
Net earnings available to common shareholders, operating |
|
$ 32,215 |
|
$ 34,804 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||||
Average Balance Sheet Data |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Total average assets |
A |
$5,085,340 |
$4,913,620 |
$3,990,493 |
$3,767,587 |
$3,439,202 |
Total average earning assets |
B |
4,537,157 |
$4,384,631 |
$3,517,143 |
$3,337,849 |
$3,036,492 |
|
|
|
|
|
||
Common Equity |
C |
$ 632,527 |
$ 607,127 |
$ 547,309 |
$ 518,070 |
$ 470,024 |
Less intangible assets |
190,892 |
183,161 |
188,420 |
171,328 |
145,405 |
|
Total Tangible common equity |
D |
$ 441,635 |
$ 423,966 |
$ 358,889 |
$ 346,742 |
$ 324,619 |
|
|
|||||
|
|
|||||
|
Three Months Ended |
|||||
Net Interest Income Fully Tax Equivalent |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Net interest income |
E |
$ 39,972 |
$ 39,180 |
$ 34,065 |
$ 33,444 |
$ 30,459 |
Tax-exempt investment income |
(1,877) |
(1,748) |
(1,360) |
(1,190) |
(828) |
|
Taxable investment income |
2,513 |
2,340 |
1,821 |
1,593 |
1,108 |
|
Net Interest Income Fully Tax Equivalent |
F |
$ 40,608 |
$ 39,772 |
$ 34,526 |
$ 33,847 |
$ 30,739 |
|
|
|
|
|
|
|
Annualized Net Interest Margin |
E/B |
3.52% |
3.57% |
3.87% |
4.01% |
4.01% |
Annualized Net Interest Margin, Fully Tax Equivalent |
F/B |
3.58% |
3.63% |
3.93% |
4.06% |
4.05% |
|
|
|
|
|
|
|
Total Interest Income, Fully Tax Equivalent |
|
|
|
|
|
|
Total Interest Income |
$ 46,337 |
$ 45,799 |
$ 41,598 |
$ 40,444 |
$ 37,241 |
|
Tax-exempt investment income |
(1,877) |
(1,748) |
(1,360) |
(1,190) |
(828) |
|
Taxable investment income |
2,513 |
2,340 |
1,821 |
1,593 |
1,108 |
|
Total Interest Income, Fully Tax Equivalent |
G |
$ 46,973 |
$ 46,391 |
$ 42,059 |
$ 40,847 |
$ 37,521 |
|
|
|
|
|
|
|
Yield on Average Earning Assets, Fully Tax Equivalent |
G/B |
4.14% |
4.23% |
4.78% |
4.90% |
4.94% |
|
|
|
|
|
|
|
Interest Income Investment Securities, Fully Tax Equivalent |
|
|
|
|
|
|
Interest Income Investment Securities |
$ 5,309 |
$ 5,187 |
$ 5,304 |
$ 5,298 |
$ 4,752 |
|
Tax-exempt investment income |
(1,877) |
(1,748) |
(1,360) |
(1,190) |
(828) |
|
Taxable investment Income |
2,513 |
2,340 |
1,821 |
1,593 |
1,108 |
|
Interest Income Investment Securities, Fully Tax Equivalent |
H |
$ 5,945 |
$ 5,779 |
$ 5,765 |
$ 5,701 |
$ 5,034 |
|
|
|
|
|
|
|
Average Investment Securities |
I |
$ 957,718 |
$ 906,548 |
$ 784,825 |
$ 744,713 |
$ 621,934 |
|
|
|
|
|
|
|
Yield on Investment Securities, Fully Tax Equivalent |
H/I |
2.48% |
2.55% |
2.94% |
3.06% |
3.24% |
|
|
|
|
|
|
|
|
Three Months Ended |
|||||
Core Net Interest Margin |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Net interest income (FTE) |
$ 40,608 |
$ 39,772 |
$ 34,526 |
$ 33,847 |
$ 30,739 |
|
Less purchase accounting adjustments |
1,853 |
2,157 |
2,336 |
2,026 |
1,296 |
|
Net interest income, net of purchase accounting adj |
J |
$ 38,755 |
$ 37,615 |
$ 32,190 |
$ 31,821 |
$ 29,443 |
|
|
|
|
|
|
|
Total average earning assets |
$4,537,157 |
$4,384,631 |
$3,517,143 |
$3,337,849 |
$3,036,492 |
|
Add average balance of loan valuation discount |
11,501 |
10,651 |
12,237 |
12,252 |
13.679 |
|
Avg earning assets, excluding loan valuation discount |
K |
$4,548,658 |
$4,395,282 |
$3,529,380 |
$3,350,101 |
$3,050,171 |
|
|
|
|
|
|
|
Core net interest margin |
J/K |
3.41% |
3.42% |
3.65% |
3.80% |
3.86% |
|
|
|
|
|
|
|
|
Three Months Ended |
|||||
Efficiency Ratio |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Operating Expense |
|
|
|
|
|
|
Total non-interest expense |
$ 26,935 |
$ 28,070 |
$ 23,439 |
$ 24,960 |
$ 20,825 |
|
Pre-tax non-operating expenses |
(238) |
(2,295) |
(740) |
(2,300) |
(705) |
|
Adjusted Operating Expense |
L |
$ 26,697 |
$ 25,775 |
$ 22,699 |
$ 22,660 |
$ 20,120 |
|
|
|
|
|
|
|
Operating Revenue |
|
|
|
|
|
|
Net interest income, FTE |
$ 40,608 |
$ 39,772 |
$ 34,526 |
$ 33,847 |
$ 30,739 |
|
Total non-interest income |
8,794 |
15,680 |
6,474 |
7,574 |
7,103 |
|
Pre-tax non-operating items |
- |
(7,643) |
- |
(714) |
- |
|
Adjusted Operating Revenue |
M |
$ 49,402 |
$ 47,809 |
$ 41,000 |
$ 40,707 |
$ 37,842 |
|
|
|
|
|
|
|
Efficiency Ratio, operating |
L/M |
54.04% |
53.91% |
55.36% |
55.67% |
53.17% |
|
|
|
|
|
|
|
|
Three Months Ended |
|||||
Return Ratios |
Sept 30,
|
June 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
|
Net income available to common shareholders |
N |
$ 11,917 |
$ 16,943 |
$ 8,311 |
$ 11,855 |
$ 12,272 |
Acquisition charges |
238 |
2,295 |
740 |
2,300 |
705 |
|
Tax on acquisition charges |
(61) |
(518) |
(164) |
(461) |
(152) |
|
Bargain purchase gain and gain on sale of land |
- |
(7,643) |
- |
- |
- |
|
Tax on gain on sale of land |
- |
157 |
- |
- |
- |
|
Treasury awards |
- |
- |
- |
(714) |
- |
|
Tax on Treasury awards |
- |
- |
- |
181 |
- |
|
Net earnings available to common shareholders, operating |
O |
$ 12,094 |
$ 11,234 |
$ 8,887 |
$ 13,161 |
$ 12,825 |
|
|
|
|
|
|
|
Pre-Tax Pre-Provision Operating Earnings |
|
|
|
|
|
|
Earnings before income taxes |
P |
$ 14,910 |
$ 19,184 |
$ 9,998 |
$ 15,208 |
$ 15,763 |
Acquisition charges |
238 |
2,295 |
740 |
2,300 |
705 |
|
Provision for loan losses |
6,921 |
7,606 |
7,102 |
850 |
974 |
|
Treasury Awards and Gains |
- |
(7,643) |
- |
(714) |
- |
|
Pre-Tax, Pre-Provision Operating Earnings |
Q |
$ 22,069 |
$ 21,442 |
$ 17,840 |
$ 17,644 |
$ 17,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on avg assets |
N/A |
0.94% |
1.38% |
0.83% |
1.26% |
1.43% |
Annualized return on avg assets, oper |
O/A |
0.95% |
0.91% |
0.89% |
1.40% |
1.49% |
Annualized pre-tax, pre-provision, oper |
Q/A |
1.74% |
1.75% |
1.79% |
1.87% |
2.03% |
Annualized return on avg common equity, oper |
O/C |
7.65% |
7.40% |
6.50% |
10.16% |
10.91% |
Annualized return on avg tangible common equity, operating |
O/D |
10.95% |
10.60% |
9.91% |
15.18% |
15.80% |
|
|
|
|
|
|
|
Mortgage Department |
|
|
|
|
|
|
Net Interest Income after provision for loan losses |
$ 142 |
$ 127 |
$ 119 |
$ 59 |
$ 200 |
|
Loan fee income |
2,961 |
2,646 |
1,567 |
1,720 |
1,800 |
|
Salaries and employee benefits |
(1,444) |
(1,246) |
(1,077) |
(975) |
(986) |
|
Other non-interest expense |
(110) |
(99) |
(152) |
(164) |
(134) |
|
Earnings before income taxes |
$ 1,549 |
$ 1,428 |
$ 457 |
$ 640 |
$ 880 |
|
