The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported quarterly net earnings available to common shareholders of $2.1 million for the second quarter of 2015, compared to net earnings available to common shareholders of $1.5 million reported for the second quarter of 2014, representing a 40% increase year over year. The Company also reported an increase of $0.2 million, or 10.5% in net earnings available to common shareholders for sequential quarters in 2015. Diluted earnings for the second quarter of 2015 were $0.39 per common share, compared to $0.29 per common share reported for the second quarter of 2014 and $0.36 per common share reported for the first quarter of 2015. First quarter 2015 net earnings included $84,000 of an after-tax gain on the sale of our branch location at 11281 Highway 49 Gulfport, MS. Excluding this non-operating income, operating earnings per share for the first quarter of 2015 were $0.34.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are excited about the Company’s performance posting a significant increase in profitability with strong growth throughout our footprint. We are encouraged by our results and will continue to look for opportunities to improve market share and increase our shareholder returns within the gulf south region.”

Balance Sheet

Consolidated assets decreased $28.5 million or 2.5% to total $1.1 billion for the quarter ended June 30, 2015. Total loans amounted to $731 million at June 30, 2015 and $716.4 million at March 31, 2015. Total loans increased $14.7 million or 2.0% for the second quarter 2015. The majority of the loan growth during the second quarter was in the C & I and residential real estate portfolios.

Total deposits decreased $22.5 million or 2.3% to total $962.1 million for the quarter ended June 30, 2015. The seasonality of our public fund portfolio contributed to this decrease.

Asset Quality

Nonperforming assets totaled $11.1 million at June 30, 2015, a decrease of $0.3 million compared to $11.4 million at March 31, 2015. The ALLL/total loans ratio was 0.88% at June 30, 2015 and 0.83% at March 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.16% of loans at June 30, 2015. The ratio of annualized net charge-offs (recoveries) to total loans was (0.07%) for the quarter ended June 30, 2015 compared to 0.18% for the quarter ended March 31, 2015. As noted in our first quarter 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.

Second Quarter 2015 vs. Second Quarter 2014 Earnings Comparison

Second quarter 2015 net earnings available to common shareholders totaled $2.1 million compared to $1.5 million for the second quarter of 2014. Revenues from consolidated operations increased $1.2 million in quarterly comparison. Net interest income increased $1.4 million in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income decreased $0.2 million in quarterly comparison from $2.1 million for the second quarter of 2014 to $1.9 million for the second quarter of 2015. During the second quarter of 2014, a gain of $0.3 million was realized on the sale of securities which attributed to the decrease in quarterly comparison.

Second quarter 2015 noninterest expenses increased $0.7 million or 9.6% as compared to second quarter 2014. Increases in salaries and employee benefits along with increases in occupancy expenses contributed $0.4 million. A majority of this increase can be attributed to the acquisition of Bay Bank that occurred at the beginning of the third quarter of 2014.

Fully taxable-equivalent (“FTE”) net interest income totaled $9.5 million and $8.1 million for the second quarter of 2015 and 2014, respectively. The FTE net interest income increased $1.4 million in prior year quarterly comparison primarily due to an increase in interest earned on loans. The purchase accounting adjustments had no impact on net interest income for the second quarter comparisons. Second quarter 2015 net interest margin of 3.71% includes 5 bps related to purchase accounting adjustments.

Investment securities totaled $249.9 million, or 22.4% of total assets at June 30, 2015, versus $276.1 million, or 27.4% of total assets at June 30, 2014. The average volume of investment securities decreased $9.6 million in prior year quarterly comparison. The average tax equivalent yield on investment securities increased 10 basis points, from 2.51% to 2.61%. The investment portfolio had a net unrealized gain of $0.7 million at June 30, 2015 as compared to $2.1 million at March 31, 2015 which accounted for the slight decrease in tangible book value.

The average yield on all earnings assets increased 18 basis points in prior year quarterly comparison, from 3.85% for the second quarter of 2014 to 4.03% for the second quarter of 2015.

Second Quarter 2015 vs First Quarter 2015 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders increased $0.2 million to $2.1 million as compared to $1.9 million for the first quarter.

Noninterest expenses increased $0.2 million in sequential-quarter comparison mainly consisting of increases in other professional services and marketing.

FTE net interest income increased $0.3 million to $9.4 million from $9.1 million in sequential-quarter comparison. The $0.4 million increase in loan income was impacted with accretion related to purchase accounting adjustments of only $0.1 million.

The average yield on all earnings assets increased 11 basis points in sequential-quarter comparison, from 3.92% for the first quarter of 2015 to 4.03% for the second quarter of 2015. Increased loan growth of approximately $23 million along with increases in fees contributed to the overall increase in the earning asset yield.

Other Events

The Company will make a presentation to bank stock analysts and investors at the Keefe, Bruyette & Woods Sixteenth Annual Community Bank Investor Conference 2015 at the Grand Hyatt Grand Central in New York, NY on Tuesday, July 28, 2015 at 8:30 a.m. Central Time. A live webcast of the presentation will be available at the company’s website www.thefirstbank.com under the investor Relations section. A replay of the presentation will be available for 90 days following the conference.

Dividends

The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on August 24, 2015 to shareholders of record as of the close of business on August 7, 2015.

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 expect per share data)

  
  EARNINGS DATA        

Quarter
Ended
6/30/15

        

Quarter
Ended
3/31/15

        

Quarter
Ended
12/31/14

        

Quarter
Ended
9/30/14

        

Quarter
Ended
6/30/14

  
  Total Interest Income     $ 10,022       $ 9,683       $ 9,662       $ 9,688       $

8,574

   
  Total Interest Expense      

806

        

804

        

791

        

833

        

726

    
  Net Interest Income      

9,216

        

8,879

        

8,871

        

8,855

        

7,848

    
  FTE net interest income      

9,454

        

9,137

        

9,137

        

9,128

        

8,104

    
  Provision for loan losses       -         150         152         631         277    
  Non-interest income       1,854         1,850         2,055         2,021         2,055    
  Non-interest expense      

8,092

        

7,818

        

8,051

        

8,071

        

7,384

    
  Earnings before income taxes       2,978         2,761         2,723         2,174         2,242    
  Income tax expense      

793

        

732

        

682

        

641

        

629

    
  Net earnings       2,185         2,029         2,041         1,533         1,613    
  Dividends and accretion on preferred stock      

86

        

85

        

86

        

85

        

86

    
  Net earnings available to common shareholders     $

2,099

       $

1,944

       $

1,955

       $

1,448

       $

1,527

    
                                   
  PER COMMON SHARE DATA                                
  Basic earnings per share     $ 0.39       $ 0.36       $ 0.37       $ 0.27       $ 0.30    
  Diluted earnings per share       0.39         0.36         0.36         0.27         0.29    
  Diluted earnings per share, operating*       0.39         0.34         0.34         0.30         0.28    
  Quarterly dividends per share       .0375         .0375         .0375         .0375         .0375    
  Book value per common share at end of period       15.06         15.12         14.80         14.38         14.02    
  Tangible book value at period end       12.35         12.40         12.04         11.58         11.49    
  Market price at end of period       16.65         16.26         14.51         14.45         14.20    
  Shares outstanding at period end       5,400,909         5,400,909         5,342,670         5,338,370         5,180,287    
  Weighted average shares outstanding:                                
  Basic       5,366,495         5,358,576         5,314,743         5,311,876         5,152,784    
  Diluted       5,424,242         5,415,100         5,357,644         5,349,686         5,180,019    
                                   
  AVERAGE BALANCE SHEET DATA                                
  Total assets     $ 1,119,648       $ 1,127,349       $ 1,073,287       $ 1,065,080       $ 1,015,679    
  Loans and leases       728,416         705,752         678,252         655,582         598,293    
  Total deposits       973,776         932,401         891,168         918,477         890,209    
  Total common equity       79,986         79,722         73,335         72,916         70,357    
  Total tangible common equity*       65,334         64,967         58,758         59,180         57,201    
  Total equity       97,109         96,845         90,458         90,039         87,480    
                                   
  SELECTED RATIOS                                
  Annualized return on avg assets       .78 %       .72 %       .76 %       .58 %       .64 %  
  Annualized return on avg assets, operating*       .75 %       .66 %       .68 %       .60 %       .57 %  
  Annualized return on avg common equity, operating*       10.50 %       9.33 %       9.88 %       8.81 %       8.18 %  
  Annualized return on avg tangible common equity, oper*       12.85 %       11.45 %       12.34 %       10.86 %       10.06 %  
  Average loans to average deposits       74.80 %       75.69 %       76.11 %       71.38 %       67.21 %  
  Taxable-equivalent net interest margin       3.71 %       3.60 %       3.76 %       3.79 %       3.53 %  
  Efficiency Ratio       71.56 %       71.16 %       71.94 %       72.39 %       72.68 %  
                                   
  CREDIT QUALITY                                
  Allowance for loan losses (ALLL) as a % of total loans       .88 %       .83 %       .87 %       .91 %       .99 %  
  Nonperforming assets to tangible equity + ALLL       12.33 %       12.70 %       13.29 %       13.29 %       16.13 %  
  Nonperforming assets to total loans + ORE       1.51 %       1.58 %       1.64 %       1.69 %       2.18 %  
  Annualized QTD net charge-offs (recoveries) to total loans           (0.07 %)           .18 %           .08 %           .33 %           .06 %  

*See reconciliation of Non-GAAP financial measures

 

     
  FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

  
  BALANCE SHEET        

June 30,
2015

        

Mar 31,
2015

        

Dec 31,
2014

        

Sept 30,
2014

        

June 30,
2014

  
  Assets                                
  Cash and cash equivalents     $ 62,021       $ 94,474       $ 44,618       $ 50,447       $ 55,443    
  Securities available-for-sale       236,476         246,842         254,744         262,651         263,653    
  Securities held-to-maturity       7,651         7,829         8,193         8,411         8,421    
  Other investments      

5,787

        

7,235

        

7,234

        

5,592

        

4,025

    
  Total investment securities       249,914         261,906         270,171         276,654         276,099    
  Loans held for sale       1,864         1,657         2,103         3,769         3,220    
  Total loans       731,037         716,359         704,531         667,533         606,812    
  Allowance for loan losses      

(6,419

)

      

(5,928

)

      

(6,095

)

      

(6,084

)

      

(5,999

)

  
  Loans, net       724,618         710,431         698,436         661,449         600,813    
  Premises and equipment       33,571         33,769         34,810         35,079         31,339    
  Other Real Estate       4,116         4,598         4,654         4,986         4,875    
  Goodwill and other intangibles       14,591         14,691         14,791         14,363         13,108    
  Other assets      

26,953

        

24,622

        

24,182

        

25,515

        

24,392

    
  Total assets     $

1,117,648

       $

1,146,148

       $

1,093,768

       $

1,072,262

       $

1,009,289

    
                                   
  Liabilities and Shareholders’ Equity                                
  Non-interest bearing deposits     $ 193,810       $ 203,766       $ 201,362       $ 195,957       $ 183,226    
  Interest-bearing deposits      

768,289

        

780,877

        

691,413

        

711,558

        

700,646

    
  Total deposits       962,099         984,643         892,775         907,515         883,872    
  Borrowings       43,991         49,446         89,450         49,456         13,500    
  Subordinated debentures       10,310         10,310         10,310         10,310         10,310    
  Other liabilities      

2,814

        

2,708

        

5,017

        

11,117

        

11,830

    
  Total liabilities       1,019,214         1,047,382         997,552         978,398         919,512    
  Total shareholders’ equity      

98,434

        

98,766

        

96,216

        

93,864

        

89,777

    
  Total liabilities and shareholders’ equity         $

1,117,648

           $

1,146,148

           $

1,093,768

           $

1,072,262

           $

1,009,289

    
                     

     
  FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

  
  EARNINGS STATEMENT         Three Months Ended  
      6/30/15         3/31/15         12/31/14         9/30/14         6/30/14  
  Interest Income:                                
  Loans, including fees     $ 8,461       $ 8,147       $ 8,071       $ 7,923       $ 7,094    
  Investment securities       1,474         1,512         1,534         1,623         1,453    
  Accretion of purchase accounting adjustments       71         1         51         136         (3 )  
  Other interest income      

16

        

23

        

6

        

6

        

30

    
  Total interest income       10,022         9,683         9,662         9,688         8,574    
                                   
  Interest Expense:                                
  Deposits       704         679         678         720         698    
  Borrowings       102         127         114         99         97    
  Subordinated debentures      

46

        

45

        

46

        

45

        

45

    
  Accretion of purchase accounting adjustments      

(46

)

      

(47

)

      

(47

)

      

(31

)

      

(114

)

  
  Total interest expense       806         804         791         833         726    
                                   
  Net interest income       9,216         8,879         8,871         8,855         7,848    
  Provision for loan losses      

-

        

150

        

152

        

631

        

277

    
  Net interest income after provision for loan losses       9,216         8,729         8,719         8,224         7,571    
                                   
  Non-interest Income:                                
  Service charges on deposit accounts       591         568         608         616         594    
  Mortgage Income       357         334         445         522         407    
  Interchange Fee Income       612         571         561         566         507    
  Gain (loss) on securities, net       -         -         (4 )       (13 )       254    
  Gain on sale of premises and equipment       -         110         -         -         -    
  BEA award, net       -         -         223         -         -    
  Other charges and fees      

294

        

267

        

222

        

330

        

293

    
  Total non-interest income       1,854         1,850         2,055         2,021         2,055    
                                   
  Non-interest expense:                                
  Salaries and employee benefits       4,613         4,626         4,551         4,554         4,260    
  Occupancy expense       1,137         1,109         1,156         1,209         1,093    
  FDIC premiums       241         241         271         222         222    
  Marketing       161         62         160         94         87    
  Amortization of core deposit intangibles       100         100         100         98         94    
  Other professional services       379         258         412         429         456    
  Other non-interest expense      

1,461

        

1,422

        

1,401

        

1,465

        

1,172

    
  Total Non-interest expense      

8,092

        

7,818

        

8,051

        

8,071

        

7,384

    
  Earnings before income taxes       2,978         2,761         2,723         2,174         2,242    
  Income tax expense      

793

        

732

        

682

        

641

        

629

    
  Net earnings       2,185         2,029         2,041         1,533         1,613    
  Dividends and accretion on preferred stock      

86

        

85

        

86

        

85

        

86

    
  Net earnings available to common shareholders     $

2,099

       $

1,944

       $

1,955

       $

1,448

       $

1,527

    
                                   
  Earnings per common share, diluted     $

0.39

       $

0.36

       $

0.36

       $

0.27

       $

0.29

    
  Operating earnings per common share, diluted*         $

0.39

           $

0.34

           $

0.34

           $

0.30

           $

0.28

    

*See reconciliation of Non-GAAP financial measures

 

     
  FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

  
  COMPOSITION OF LOANS        

June 30,
2015

        

Percent
of Total

        

Mar 31,
2015

        

Dec 31,
2014

        

Sept 30,
2014

        

June 30,
2014

        

Percent
of Total

  
  Commercial, financial and agricultural     $ 116,352       15.9 %     $ 110,806       $ 106,109       $ 100,263       $ 81,958       13.4 %  
  Real estate – construction       93,152       12.7 %       93,168         84,935         83,908         74,105       12.1 %  
  Real estate – commercial       245,537       33.4 %       242,969         238,602         217,684         204,101       33.5 %  
  Real estate – residential       259,610       35.6 %       254,844         256,406         248,125         230,310       37.8 %  
  Consumer       16,386       2.1 %       14,572         18,479         17,553         16,337       2.7 %  
  Loans held for sale      

1,864

      

.3

%

      

1,657

        

2,103

        

3,769

        

3,220

      

0.5

%

  
  Total loans     $

732,901

      

100

%

     $

718,016

       $

706,634

       $

671,302

       $

610.031

      

100

%

  
                                               
  COMPOSITION OF DEPOSITS    

June 30,
2015

    

Percent
of Total

    

Mar 31,
2015

    

Dec 31,
2014

    

Sept 30,
2014

    

June 30,
2014

    

Percent
of Total

  
  Noninterest bearing     $ 193,810       20.1 %     $ 203,766       $ 201,362       $ 195,957       $ 183,226       20.7 %  
  NOW and other       393,596       40.9 %       404,605         301,721         317,569         326,683       37.0 %  
  Money Market/Savings       185,033       19.2 %       183,048         183,633         183,068         171,842       19.4 %  
  Time Deposits of less than $100,000       77,815       8.1 %       80,606         85,365         86,897         80,144       9.1 %  
  Time Deposits of $100,000 or more      

111,845

      

11.7

%

      

112,618

        

120,694

        

124,024

        

121,975

      

13.8

%

  
  Total Deposits     $

962,099

      

100

%

     $

984,643

       $

892,775

       $

907,515

       $

883,872

      

100

%

  
                                               
  ASSET QUALITY DATA    

June 30,
2015

          

Mar 31,
2015

    

Dec 31,
2014

    

Sept 30,
2014

    

June 30,
2014

        
  Nonaccrual loans     $ 6,513             $ 5,995       $ 6,056       $ 6,032       $ 6,063          
  Loans past due 90 days and over      

92

              

426

        

669

        

102

        

447

          
  Total nonperforming loans       6,605               6,421         6,725         6,134         6,510          
  Other real estate       4,116               4,598         4,654         4,986         4,875          
  Nonaccrual securities      

408

              

408

        

250

        

250

        

1,950

          
  Total nonperforming assets     $

11,129

             $

11,427

       $

11,629

       $

11,370

       $

13,335

          
                                               
  Nonperforming assets to total assets       1.00 %             1.00 %       1.06 %       1.06 %       1.32 %        
  Nonperforming assets to total loans + ORE       1.51 %             1.58 %       1.64 %       1.69 %       2.18 %        
  ALLL to nonperforming loans       97.18 %             94.66 %       90.63 %       99.18 %       92.15 %        
  ALLL to total loans       .88 %             .83 %       .87 %       .91 %       .99 %        
                                               
  Quarter-to-date net charge-offs (recoveries)     $ (490 )           $ 316       $ 141       $ 546       $ 89          
  Annualized QTD net chg/offs (recs) to loans           (0.07 %)                     .18 %           .08 %           .33 %           .06 %            
                             

 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

 

 

                                                           
Yield Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Analysis June 30, 2015     March 31, 2015     December 31, 2014     September 30, 2014     June 30, 2014
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 $ 179,580 $ 991 2.21 % $ 184,401 $ 992 2.15 % $ 189,691 $ 998 2.10 % $ 201,194 $ 1,072 2.13 % $ 183,976 $ 937 2.04 %

Tax-exempt securities

  79,568       702 3.53 %   81,717       759 3.72 %   84,413       783 3.71 %   86,498       802 3.71 %   84,813       753 3.55 %

Total investment securities

259,148 1,693 2.61 % 266,118 1,751 2.63 % 274,104 1,781 2.60 % 287,692 1,874 2.61 % 268,789 1,690 2.51 %
Fed funds sold 6,702 16 0.95 % 16,248 23 0.57 % 408 6 5.88 % 2,037 6 1.18 % 3,603 30 3.33 %

 

Int bearing deposits in other banks

24,089 19 0.32 % 27,430 19 0.28 % 18,270 19 0.42 % 16,854 22 0.52 % 47,210 19 0.16 %
Loans   728,416       8,532 4.69 %   705,752       8,148 4.62 %   678,252       8,122 4.79 %   655,582       8,059 4.92 %   598,293       7,091 4.74 %

Total Interest earning assets

1,018,355 10,260 4.03 % 1,015,548 9,941 3.92 % 971,034 9,928 4.09 % 962,165 9,961 4.14 % 917,895 8,830 3.85 %
Other assets   101,293   111,801   102,253   102,915   97,784
Total assets $ 1,119,648 $ 1,127,349 $ 1,073,287 $ 1,065,080 $ 1,015,679
 

Interest-bearing liabilities:

Deposits $ 772,837 $ 658 0.34 % $ 736,199 $ 632 0.34 % $ 693,657 $ 630 0.36 % $ 723,911 $ 688 0.38 % $ 711,936 $ 584 0.33 %
Repo 5,000 48 3.84 % 5,000 48 3.84 % 5,000 49 3.92 % 5,000 49 3.92 % 5,000 48 3.84 %
Fed funds purchased 1,180 3 1.02 % 108 - 0.00 % 1,645 4 0.97 % 326 1 1.23 % 256 1 1.56 %
FHLB 27,117 51 0.75 % 78,892 78 0.40 % 63,040 62 0.39 % 28,038 50 0.71 % 9,802 48 1.96 %

Subordinated debentures

  10,310       46 1.78 %   10,310       45 1.75 %   10,310       46 1.78 %   10,310       45 1.75 %   10,310       45 1.75 %

Total interest bearing liabilities

816,444   806 0.39 % 830,509   804 0.39 % 773,652   791 0.41 % 767,585   833 0.43 % 737,304   726 0.39 %
Other liabilities 206,095 199,995 209,177 207,456 190,895

Shareholders’ equity

  97,109   96,845   90,458   90,039   87,480

Total liabilities and shareholders’ equity

$ 1,119,648 $ 1,127,349 $ 1,073,287 $ 1,065,080 $ 1,015,679
 

Net interest income (TE)

$ 9,454 3.64 % $ 9,137 3.53 % $ 9,137 3.68 % $ 9,128 3.71 % $ 8,104 3.45 %
 
Net interest margin 3.71 % 3.60 % 3.76 % 3.79 % 3.53 %
 

Core net interest margin*

3.66 % 3.57 % 3.72 % 3.72 % 3.48 %
 

     
  FIRST BANCSHARES, INC and SUBSIDIARIES

Reconcilement of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

  
 

 

               

Three Months Ended

  
 

Per Common Share Data

                

June 30,
2015

        

Mar 31,
2015

        

Dec 31,
2014

        

Sept 30,
2014

        

June 30,
2014

  
  Book value per common share             $ 15.06       $ 15.12       $ 14.80       $ 14.38       $ 14.02    
  Effect of intangible assets per share              

2.71

        

2.72

        

2.76

        

2.80

        

2.53

    
  Tangible book value per common share             $

12.35

       $

12.40

       $

12.04

       $

11.58

       $

11.49

    
                                           
  Diluted earnings per share             $ 0.39       $ 0.36       $ 0.36       $ 0.27       $ 0.29    
  Effect of gain on sale of other securities, 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              

-

         -         -         0.03         0.02    
  Diluted earnings per share, operating             $

0.39

       $

0.34

       $

0.34

       $

0.30

       $

0.28

    
                                           
                                           
                                                               
                    Three Months Ended  
  Average Balance Sheet Data            

June 30,
2015

    

Mar 31,
2015

    

Dec 31,
2014

    

Sept 30,
2014

    

June 30,
2014

  
 

Total average assets

     

A

    $ 1,119,648       $ 1,127,349       $ 1,073,287       $ 1,065,080       $ 1,015,679    
                                           
  Total equity             $ 97,109       $ 96,845       $ 90,458       $ 90,039       $ 87,480    
  Less preferred equity              

17,123

        

17,123

        

17,123

        

17,123

        

17,123

    
 

Total common equity

     

B

      79,986         79,722         73,335         72,916         70,357    
  Less intangible assets              

14,652

        

14,755

        

14,577

        

13,736

        

13,156

    
 

Tangible common equity

     

C

    $

65,334

       $

64,967

       $

58,758

       $

59,180

       $

57,201

    
                                           
                                           
                                                               
                    Three Months Ended  
  Core Net Interest Margin            

June 30,
2015

    

Mar 31,
2015

    

Dec 31,
2014

    

Sept 30,
2014

    

June 30,
2014

  
  Net interest income (TE)             $ 9,454       $ 9,137       $ 9,137       $ 9,128       $ 8,104    
  Less purchase accounting adjustments              

117

        

48

        

98

        

167

        

111

    
 

Net interest income, net of purchase accounting adj

     

D

    $

9,337

       $

9,089

       $

9,039

       $

8,961

       $

7,993

    
                                           
  Total average earning assets             $ 1,018,355       $ 1,015,548       $ 971,034

 

    $ 962,165       $ 917,895    
  Add average balance of loan valuation discount              

1,727

        

1,730

        

1,780

        

852

        

201

    
 

Avg earning assets, excluding loan valuation discount

     

E

    $

1,020,082

       $

1,017,278

       $

972,814

       $

963,017

       $

918,096

    
                                           
 

Core net interest margin

     

D/E

     

3.66

%

      

3.57

%

      

3.72

%

      

3.72

%

      

3.48

%

  
                                           
                                           
                                                               
                    Three Months Ended  
  Return Ratios            

June 30,
2015

    

Mar 31,
2015

    

Dec 31,
2014

    

Sept 30,
2014

    

June 30,
2014

  
 

Net earnings

     

F

    $ 2,185       $ 2,029       $ 2,041       $ 1,533       $ 1,613    
  Dividends and accretion on preferred stock              

86

        

85

        

86

        

85

        

86

    
  Net earnings available to common shareholders               2,099         1,944         1,955         1,448         1,527    
  Gain on sale of other securities, after-tax               -         -         -         -         (183 )  
  Gain on sale of premises and equipment, after-tax               -         (84 )       -         -         -    
  BAE, after-tax               -         -         (165 )       -         -    
  Acquisition charges, after-tax              

-

        

-

        

22

        

158

        

94

    
 

Net earnings available to common shareholders, oper

     

G

    $

2,099

       $

1,860

       $

1,812

       $

1,606

       $

1,438

    
                                           
 

Annualized return on avg assets

     

F/A

      .78 %       .72 %       .76 %       .58 %       .64 %  
 

Annualized return on avg assets, oper

     

G/A

      .75 %       .66 %       .68 %       .60 %       .57 %  
 

Annualized return on avg common equity, oper

     

G/B

      10.50 %       9.33 %       9.88 %       8.81 %       8.18 %  
 

Annualized return on avg tangible common equity, oper

     

G/C

          12.85 %           11.45 %           12.34 %           10.86 %           10.06 %  
                           

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.