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 |
Quarter |
Quarter |
Quarter |
Quarter | ||||||||||||||||||||||||||||||||
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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||
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, |
Percent |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Percent | ||||||||||||||||||||||||||||||||||||||||||
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, |
Percent |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Percent | ||||||||||||||||||||||||||||||||||||||||||
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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||||||||||||||||||
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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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||||||
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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||||||
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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||||||
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, |
Mar 31, |
Dec 31, |
Sept 30, |
June 30, | ||||||||||||||||||||||||||||||||||||
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.
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