HATTIESBURG, Miss.--(BUSINESS WIRE)--April 21, 2021--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 December 31, 2020.
Highlights for the Quarter:
- Net income available to common shareholders totaled $16.6 million for the quarter ended March 31, 2021, representing an increase of $1.3 million, or 8.5%, compared to $15.3 million for the quarter ended December 31, 2020.
- Net income available to common shareholders totaled $16.6 million for the quarter ended March 31, 2021, an increase of $8.3 million, or 100.3%, compared to $8.3 million for the quarter ended March 31, 2020.
- Pre-tax, pre-provision operating earnings (non-GAAP) which excludes acquisition charges increased 20.2% to $21.4 million for the quarter ended March 31, 2021 as compared to $17.8 million for the first quarter of 2020.
- Pre-tax, pre-provision operating earnings (non-GAAP) which excludes acquisition charges, treasury awards, gains from bargain purchase of Southwest Georgia Financial Corporation (‘SGB”) increased 3.3% to $21.4 million for the quarter ended
March 31, 2021 as compared to $20.7 million for the fourth quarter of 2020.
- Provision for credit losses totaled $0 for the quarter as compared to $3.5 million for the sequential quarter comparison and $7.1 million for the first quarter of 2020.
- During the quarter, the Company purchased 165,623 shares of stock under the share buyback program.
- As of March 31, 2021, total COVID related modifications were $45.7 million, representing 1.5% of the loan portfolio and down from a peak of $676 million or 21% of the loan portfolio. For additional details related to the 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 2021, the Company adopted the Current Expected Credit Losses (“CECL”) methodology for estimating credit losses effective January 1, 2021.
- Added a commercial banking group in the Baton Rouge market and 4 mortgage originators in the panhandle of Florida and the South MS markets
M. Ray “Hoppy” Cole, President and Chief Executive Officer, commented, “Our company produced a strong quarter with improved profitability both year over year and in sequential quarter comparison. Our markets continue to show signs of recovery
from the effects of the pandemic. We are encouraged by the level of loan demand and the amount of our loan originations during the first quarter particularly in our construction portfolio however the near term effects were muted by pay downs in
our residential real estate and Paycheck Protection Program (“PPP”) portfolio’s. We continue to add production staff in our key markets and are excited about the recent addition of our new commercial banking group in Baton Rouge and the
additional mortgage originators we added during the quarter.”
Quarterly Earnings
Net income available to common shareholders totaled $16.6 million for the quarter ended March 31, 2021, an increase of $1.3 million, or 8.5%, compared to $15.3 million for the quarter ended December 31, 2020. In sequential quarter comparison,
the Company recorded an additional $0.8 million bargain purchase gain due to a measurement period adjustment related to the tax impact of the CARES Act on the acquisition of SGB as well as income in the form of a financial assistance grant from
the U.S. Department of Treasury of $0.7 million, net of tax during the quarter ended December 31, 2020. During the fourth quarter of 2020, the Company also recorded additional expense related to unused vacation paid to employees as well as
expense related to the early vesting of restricted stock grants to the Company’s directors in the amount of $0.7 million.
Net income available to common shareholders totaled $16.6 million for the quarter ended March 31, 2021, an increase of $8.3 million, or 100.3%, compared to $8.3 million for the quarter ended March 31, 2020.
Provision for credit losses totaled $0 for the quarter ended March 31, 2021, a decrease of $7.1 million, or $5.5 million net of tax, as compared to $7.1 million for the first quarter of 2020 and a decrease of $3.5 million, or $2.7 million net
of tax, as compared to $3.5 million for the fourth quarter of 2020.
Earnings Per Share
For the first quarter of 2021, fully diluted earnings per share were $0.79, compared to $0.44 for the first quarter of 2020. The provision for loan losses expense of $7.1 million, or $5.5 million net of tax, for the quarter ended March 31,
2020, which was primarily attributable to the COVID-19 pandemic, represented $0.29 in fully diluted earnings per share.
For the first quarter of 2021, fully diluted earnings per share were $0.79, compared to $0.72 for the fourth quarter of 2020. The bargain purchase and sale of land gains along with the financial assistance grant recognized during the quarter
ended December 31, 2020 accounted for $0.08 in fully diluted earnings per share. Provision for loan loss expense of $3.5 million for the fourth quarter of 2020 accounted for $0.13 in fully diluted earnings per share.
Fully diluted earnings per share for the quarter ended March 31, 2021 include the purchase by the Company of 165,623 shares during the first quarter of 2021.
Balance Sheet
Consolidated assets increased $290.0 million to $5.443 billion at March 31, 2021 from $5.153 billion at December 31, 2020. PPP loans at March 31, 2021 were $221.7 million, down $17.9 million from December 31, 2020.
Total average loans were $3.097 billion for the quarter ended March 31, 2021, as compared to $3.154 billion for the quarter ended December 31, 2020, and $2.602 billion for the quarter ended March 31, 2020, representing a decrease of $56.4
million, or 1.8%, for the sequential quarter comparison, and an increase of $494.8 million, or 19.0%, in prior year quarterly comparison. The acquisition of SGB accounted for $423.0 million, net of fair value marks, of the total increase in
average loans as compared to the first quarter of 2020. PPP loans averaged $235.4 million for the quarter ended March 1, 2021 and averaged $250.5 million for the quarter ended December 31, 2020.
Average loans decreased $56.4 million, or 1.8% for the sequential quarter comparison of which $15.1 million were related to a decrease in PPP loans.
Excluding the acquired loans, average loans increased $71.8 million, or 2.8% as compared to the quarter ended March 31, 2020. Average PPP loans increased $235.4 million as compared to the quarter ended March 31, 2020.
Total average deposits were $4.410 billion for the quarter ended March 31, 2021, as compared to $4.195 billion for the quarter ended December 31, 2020, and $3.187 billion for the quarter ended March 31, 2020, representing an increase of
$214.8 million, or 5.1%, for the sequential quarter comparison, and an increase of $1.223 billion, or 38.4%, in prior year quarterly comparison. The acquisition of SGB accounted for $536.2 million of the total increase in average deposits as
compared to the first quarter of 2020.
Average deposits increased $214.8 million, or 5.1% for the sequential quarter comparison of which $149.8 million is related to the seasonality of our public fund portfolio.
Excluding the acquired deposits, average deposits increased $687.1 million, or 21.6% as compared to the quarter ended March 31, 2020 of which $284.0 is related to the seasonality of our public fund portfolio.
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 March 31, 2021, $695.8 million in noninterest deposit balances and $859.4 million in NOW deposit accounts were reclassified as money
market accounts.
Asset Quality
Nonperforming assets totaled $36.8 million at March 31, 2021, a decrease of $5.4 million compared to $42.3 million at December 31, 2020 and a decrease of $10.3 million compared to $47.1 million at March 31, 2020. Nonaccrual loans decreased
$3.8 million as compared to December 31, 2020 and decreased $7.8 million as compared to March 31, 2020.
The ratio of the allowance for credit losses (ACL) to total loans was 1.07% at March 31, 2021, 1.15% at December 31, 2020 and 0.80% at March 31, 2020. The ratio of annualized net charge-offs (recoveries) to total loans was 0.47% for the
quarter ended March 31, 2021 compared to 0.25% for the quarter ended December 31, 2020 and 0.03% for the quarter ended March 31, 2020. The increase in net charge-offs were related to the charge down of nonperforming loans that were previously
fully impaired in the allowance for loan losses model.
Effective January 1, 2021, the Company adopted the CECL methodology for estimating credit losses. This adoption resulted in a net $0.4 million increase to the ACL and an unfunded commitment reserve of $0.7 million.
First Quarter 2021 vs. First Quarter 2020 Earnings Comparison
Net income available to common shareholders for the first quarter of 2021 totaled $16.6 million compared to $8.3 million for the first quarter of 2020, an increase of $8.3 million or 100.3%. In comparing the quarters, the increase in net
income available to common shareholders was largely attributed to a decrease in provision for credit losses expense in the amount of $7.1 million, or $5.5 million net of tax. The Company recorded $0 in provision for credit losses expense for
the first quarter 2021 and recorded $7.1 million for the first quarter 2020.
Net interest income for the first quarter of 2021 was $39.2 million, an increase of $5.2 million when compared to the first quarter of 2020. The increase was due to interest income earned on a higher volume of loans. Fully tax equivalent
(“FTE”) net interest income (non-GAAP) totaled $39.9 million and $34.5 million for the first quarter of 2021 and 2020, respectively. FTE net interest income (non-GAAP) increased $5.4 million in the prior year quarterly comparison mainly due to
increased loan volume. Purchase accounting adjustments decreased $1.2 million for the first quarter comparisons. First quarter of 2021 FTE net interest margin (non-GAAP) was 3.34% which included 9 basis points related to purchase accounting
adjustments compared to 3.93% for the same quarter in 2020, which included 28 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 40 basis
points in prior year quarterly comparison.
Non-interest income increased $3.0 million for the first quarter of 2021 as compared to the first quarter of 2020. Mortgage income increased $1.6 million in the prior year quarterly comparison.
First quarter 2021 non-interest expense was $27.3 million, an increase of $3.8 million, or 16.3% as compared to the first quarter of 2020. Excluding the net decrease in acquisition charges of $0.7 million for the quarterly comparison,
non-interest expense increased $4.6 million in the first quarter of 2021, of which $2.0 million was attributable to the operations of SGB, as compared to first quarter of 2020.
Investment securities totaled $1.157 billion, or 21.3% of total assets at March 31, 2021, versus $788.9 million, or 19.4% of total assets at March 31, 2020. The average balance of investment securities increased $282.1 million in the prior
year quarterly comparison, primarily as a result of the acquisition of SGB. The average tax equivalent yield on investment securities (non-GAAP) decreased 62 basis points to 2.32% from 2.94% in the prior year quarterly comparison. The
investment portfolio had a net unrealized gain of $21.7 million at March 31, 2021 as compared to a net unrealized gain of $21.4 million at March 31, 2020.
The FTE average yield on all earning assets (non-GAAP) decreased 94 basis points in prior year quarterly comparison, from 4.78% for the first quarter of 2020 to 3.84% for the first quarter of 2021. Interest expense on average interest bearing
liabilities decreased 38 basis points from 0.92% for the first quarter of 2020 to 0.54% for the first quarter of 2021. Cost of all deposits averaged 36 basis points for the first quarter of 2021 compared to 76 basis points for the first quarter
of 2020.
First Quarter 2021 vs Fourth Quarter 2020 Earnings Comparison
Net income available to common shareholders for the first quarter of 2021 increased $1.3 million to $16.6 million compared to $15.3 million for the fourth quarter of 2020. During the fourth quarter of 2020, the Company recorded a bargain
purchase gain in the amount of $0.8 million, net of tax and received a financial assistance grant from the U. S. Department of Treasury of $0.7 million, net of tax.
Net interest income for the first quarter of 2021 was $39.2 million as compared to $39.5 million for the fourth quarter of 2020, a decrease of $0.2 million which is attributed to a decrease in purchase accounting adjustments of $0.6 million.
FTE net interest income (non-GAAP) decreased $0.2 million to $39.9 million from $40.1 million in sequential-quarter comparison. First quarter 2021 FTE net interest margin (non-GAAP) of 3.34% included 9 basis points related to purchase
accounting adjustments compared to 3.51% for the fourth quarter in 2020, which included 16 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased
10 basis point in sequential quarter comparison.
Investment securities totaled $1.157 billion, or 21.3% of total assets at March 31, 2021, versus $1.050 billion, or 20.4% of total assets at December 31, 2020. The average balance of investment securities increased $46.1 million in
sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) decreased 13 basis points to 2.32% from 2.45% in sequential-quarter comparison. The investment portfolio had a net unrealized gain of $21.7
million at March 31, 2021 as compared to a net unrealized gain of $34.6 million at December 31, 2020.
The FTE average yield on all earning assets (non-GAAP) decreased in sequential-quarter comparison from 4.04% to 3.84%. Interest expense on average interest bearing liabilities decreased 4 basis points from 0.58% for the fourth quarter of 2020
to 0.54% for the first quarter of 2021. Cost of all deposits averaged 36 basis points for the first quarter of 2021 compared to 39 basis points for the fourth quarter of 2020.
Excluding the treasury awards and bargain purchase gain, non-interest income increased $0.3 million in sequential-quarter comparison resulting from increased other charge and fees in the amount of $0.5 million.
Non-interest expense for the first quarter of 2021 was $27.3 million compared to $27.9 million for the fourth quarter of 2020. Excluding acquisition charges, non-interest expense decreased $0.6 million. During the fourth quarter of 2020, the
Company recorded additional expense related to unused vacation paid out to employees as well as expense related to the early vesting of restricted stock grants to the Company’s directors in the amount of $0.7 million.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.14 per share to be paid on its common stock on May 25, 2021 to shareholders of record as of the close of business on May 10, 2021.
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 efficiency ratio, pre-tax, pre-provision operating earnings, 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)
|
|
EARNINGS DATA
|
Quarter
Ended 3/31/21
|
Quarter
Ended
12/31/20
|
Quarter
Ended
9/30/20
|
Quarter
Ended
6/30/20
|
Quarter
Ended
3/31/20
|
|
Total Interest Income
|
$ 45,187
|
$ 45,613
|
$ 46,337
|
$ 45,799
|
$ 41,598
|
|
Total Interest Expense
|
5,958
|
6,147
|
6,365
|
6,619
|
7,533
|
|
Net Interest Income
|
39,229
|
39,466
|
39,972
|
39,180
|
34,065
|
|
FTE net interest income*
|
39,884
|
40,119
|
40,608
|
39,772
|
34,526
|
|
Provision for credit losses**
|
-
|
3,523
|
6,921
|
7,606
|
7,102
|
|
Non-interest income
|
9,472
|
10,928
|
8,794
|
15,680
|
6,474
|
|
Non-interest expense
|
27,264
|
27,897
|
26,935
|
28,070
|
23,439
|
|
Earnings before income taxes
|
21,437
|
18,974
|
14,910
|
19,184
|
9,998
|
|
Income tax expense
|
4,793
|
3,639
|
2,993
|
2,241
|
1,687
|
|
Net income available to common shareholders
|
$ 16,644
|
$ 15,335
|
$ 11,917
|
$ 16,943
|
$ 8,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA
|
|
|
|
|
|
|
Basic earnings per share
|
$ 0.79
|
$ 0.72
|
$ 0.56
|
$ 0.79
|
$ 0.44
|
|
Diluted earnings per share
|
0.79
|
0.72
|
0.55
|
0.79
|
0.44
|
|
Diluted earnings per share, operating*
|
0.79
|
0.65
|
0.56
|
0.52
|
0.47
|
|
Quarterly dividends per share
|
.13
|
.12
|
.10
|
.10
|
.10
|
|
Book value per common share at end of period
|
30.64
|
30.54
|
29.82
|
29.34
|
29.49
|
|
Tangible book value per common share at period end*
|
21.76
|
21.65
|
20.93
|
20.40
|
19.52
|
|
Market price at end of period
|
36.61
|
30.88
|
20.97
|
22.50
|
19.07
|
|
Shares outstanding at period end
|
21,018,744
|
21,115,009
|
21,408,017
|
21,395,258
|
18,851,955
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
Basic
|
21,009,088
|
21,308,838
|
21,405,309
|
21,341,913
|
18,818,115
|
|
Diluted
|
21,200,558
|
21,421,367
|
21,544,040
|
21,437,180
|
18,942,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET DATA
|
|
|
|
|
|
|
Total assets
|
$5,337,264
|
$5,136,136
|
$5,085,340
|
$4,913,620
|
$3,990,493
|
|
Loans and leases
|
3,097,145
|
3,153,543
|
3,165,653
|
3,156,524
|
2,602,340
|
|
Total deposits
|
4,410,288
|
4,195,492
|
4,212,410
|
4,069,239
|
3,186,943
|
|
Total common equity
|
644,923
|
640,828
|
632,527
|
607,127
|
547,309
|
|
Total tangible common equity*
|
457,725
|
451,011
|
441,635
|
423,966
|
358,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS
|
|
|
|
|
|
|
Annualized return on avg assets (ROA)
|
1.25%
|
1.19%
|
0.94%
|
1.38%
|
0.83%
|
|
Annualized return on avg assets, operating*
|
1.25%
|
1.08%
|
0.95%
|
0.91%
|
0.89%
|
|
Annualized pre-tax, pre-provision, operating*
|
1.61%
|
1.62%
|
1.74%
|
1.75%
|
1.79%
|
|
Annualized return on avg common equity, operating*
|
10.32%
|
8.63%
|
7.65%
|
7.40%
|
6.50%
|
|
Annualized return on avg tangible common equity, oper*
|
14.54%
|
12.27%
|
10.95%
|
10.60%
|
9.91%
|
|
Average loans to average deposits
|
70.23%
|
75.17%
|
75.15%
|
77.57%
|
81.66%
|
|
FTE Net Interest Margin*
|
3.34%
|
3.51%
|
3.58%
|
3.63%
|
3.93%
|
|
Efficiency Ratio
|
55.24%
|
54.65%
|
54.52%
|
50.62%
|
57.17%
|
|
Efficiency Ratio, operating*
|
55.24%
|
56.54%
|
54.04%
|
53.91%
|
55.36%
|
|
*See reconciliation of Non-GAAP financial measures
|
|
|
|
|
|
|
CREDIT QUALITY
|
|
|
|
|
|
|
Allowance for credit losses (ACL) as a % of total loans**
|
1.07%
|
1.15%
|
1.09%
|
0.88%
|
0.80%
|
|
Nonperforming assets to tangible equity + ACL
|
7.52%
|
8.57%
|
9.31%
|
9.84%
|
12.12%
|
|
Nonperforming assets to total loans + OREO
|
1.20%
|
1.35%
|
1.42%
|
1.44%
|
1.81%
|
|
Annualized QTD net charge-offs (recoveries) to total loans
|
0.47%
|
0.25%
|
0.09%
|
0.04%
|
0.03%
|
|
**Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based upon incurred loss methodology
|
|
|
|
|
|
|
|
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
|
|
BALANCE SHEET
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$ 813,257
|
$ 562,554
|
$ 603,736
|
$ 539,125
|
$ 286,759
|
|
Securities available-for-sale
|
1,135,189
|
1,022,182
|
957,458
|
927,205
|
762,977
|
|
Other investments
|
22,137
|
27,475
|
27,461
|
26,059
|
25,911
|
|
Total investment securities
|
1,157,326
|
1,049,657
|
984,919
|
953,264
|
788,888
|
|
Loans held for sale
|
15,119
|
21,432
|
22,482
|
18,632
|
13,288
|
|
Total loans
|
3,055,093
|
3,123,678
|
3,155,932
|
3,171,535
|
2,602,288
|
|
Allowance for credit losses
|
(32,663)
|
(35,820)
|
(34,256)
|
(28,064)
|
(20,804)
|
|
Loans, net
|
3,022,430
|
3,087,858
|
3,121,676
|
3,143,471
|
2,581,484
|
|
Premises and equipment
|
121,934
|
123,450
|
124,875
|
125,053
|
108,013
|
|
Other Real Estate Owned
|
5,769
|
5,802
|
5,202
|
5,471
|
6,974
|
|
Goodwill and other intangibles
|
186,648
|
187,700
|
190,380
|
191,431
|
187,927
|
|
Other assets
|
120,315
|
114,307
|
110,889
|
108,458
|
88,468
|
|
Total assets
|
$5,442,798
|
$5,152,760
|
$5,164,159
|
$5,084,905
|
$4,061,801
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
Non-interest bearing deposits^
|
$ 632,485
|
$ 571,079
|
$ 482,236
|
$ 486,039
|
$ 340,606
|
|
Interest-bearing deposits
|
3,987,812
|
3,644,201
|
3,746,978
|
3,730,851
|
2,937,188
|
|
Total deposits
|
4,620,297
|
4,215,280
|
4,229,214
|
4,216,890
|
3,277,794
|
|
Borrowings
|
4,466
|
114,647
|
115,827
|
116,005
|
116,180
|
|
Subordinated debentures
|
144,572
|
144,592
|
144,709
|
80,756
|
80,717
|
|
Other liabilities
|
29,514
|
33,426
|
36,040
|
43,459
|
31,184
|
|
Total liabilities
|
4,798,849
|
4,507,945
|
4,525,790
|
4,457,110
|
3,505,875
|
|
Total shareholders’ equity
|
643,949
|
644,815
|
638,369
|
627,795
|
555,926
|
|
Total liabilities and shareholders’ equity
|
$5,442,798
|
$5,152,760
|
$5,164,159
|
$5,084,905
|
$4,061,801
|
| ^Reclassified $695,751 to interest-bearing deposits for Mar 31, 2021 |
|
|
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
|
|
EARNINGS STATEMENT
|
Three Months Ended
|
|
3/31/21
|
12/31/20
|
9/30/20
|
6/30/20
|
3/31/20
|
|
Interest Income:
|
|
|
|
|
|
|
Loans, including fees
|
$ 38,587
|
$ 38,472
|
$ 39,344
|
$ 39,184
|
$ 34,290
|
|
Investment securities
|
5,526
|
5,606
|
5,309
|
5,187
|
5,304
|
|
Accretion of purchase accounting adjustments
|
1,026
|
1,494
|
1,655
|
1,409
|
1,715
|
|
Other interest income
|
48
|
41
|
29
|
19
|
289
|
|
Total interest income
|
45,187
|
45,613
|
46,337
|
45,799
|
41,598
|
|
Interest Expense:
|
|
|
|
|
|
|
Deposits
|
3,910
|
4,262
|
5,110
|
5,967
|
6,034
|
|
Borrowings
|
288
|
260
|
265
|
224
|
917
|
|
Subordinated debentures
|
1,821
|
1,823
|
1,188
|
1,176
|
1,203
|
|
Accretion of purchase accounting adjustments
|
(61)
|
(198)
|
(198)
|
(748)
|
(621)
|
|
Total interest expense
|
5,958
|
6,147
|
6,365
|
6,619
|
7,533
|
|
Net interest income
|
39,229
|
39,466
|
39,972
|
39,180
|
34,065
|
|
Provision for credit losses
|
-
|
3,523
|
6,921
|
7,606
|
7,102
|
|
Net interest income after provision for credit losses
|
39,229
|
35,943
|
33,051
|
31,574
|
26,963
|
|
|
|
|
|
|
|
|
Non-interest Income:
|
|
|
|
|
|
|
Service charges on deposit accounts
|
1,761
|
1,925
|
1,780
|
1,597
|
1,914
|
|
Mortgage Income
|
3,162
|
3,270
|
2,961
|
2,646
|
1,567
|
|
Interchange Fee Income
|
2,644
|
2,562
|
2,491
|
2,395
|
1,986
|
|
Gain (loss) on securities, net
|
20
|
3
|
32
|
73
|
174
|
|
Financial Assistance Award/Bank Enterprise Award
|
-
|
968
|
-
|
-
|
-
|
|
Bargain Purchase Gain and Gain on Sale of Land
|
-
|
812
|
-
|
7,643
|
-
|
|
Other charges and fees
|
1,885
|
1,388
|
1,530
|
1,326
|
833
|
|
Total non-interest income
|
9,472
|
10,928
|
8,794
|
15,680
|
6,474
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
Salaries and employee benefits
|
16,054
|
16,642
|
15,494
|
15,866
|
13,228
|
|
Occupancy expense
|
3,879
|
3,890
|
3,826
|
3,200
|
2,918
|
|
FDIC/OCC premiums
|
494
|
520
|
447
|
237
|
147
|
|
Marketing
|
160
|
71
|
24
|
25
|
213
|
|
Amortization of core deposit intangibles
|
1,052
|
1,052
|
1,052
|
1,052
|
938
|
|
Other professional services
|
934
|
764
|
990
|
984
|
874
|
|
Acquisition charges
|
-
|
41
|
238
|
2,295
|
740
|
|
Other non-interest expense
|
4,691
|
4,917
|
4,864
|
4,411
|
4,381
|
|
Total Non-interest expense
|
27,264
|
27,897
|
26,935
|
28,070
|
23,439
|
|
Earnings before income taxes
|
21,437
|
18,974
|
14,910
|
19,184
|
9,998
|
|
Income tax expense
|
4,793
|
3,639
|
2,993
|
2,241
|
1,687
|
|
Net income available to common shareholders
|
$ 16,644
|
$ 15,335
|
$ 11,917
|
$ 16,943
|
$ 8,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
$ 0.79
|
$ 0.72
|
$ 0.55
|
$ 0.79
|
$ 0.44
|
|
Diluted earnings per common share, operating*
|
$ 0.79
|
$ 0.65
|
$ 0.56
|
$ 0.52
|
$ 0.47
|
|
*See reconciliation of Non-GAAP financial measures
|
|
|
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
|
|
EARNINGS STATEMENT
|
Year to Date
|
|
|
2021
|
|
2020
|
|
|
Interest Income:
|
|
|
|
|
|
|
Loans, including fees
|
|
$ 38,587
|
|
$ 34,290
|
|
|
Investment securities
|
|
5,526
|
|
5,304
|
|
|
Accretion of purchase accounting adjustments
|
|
1,026
|
|
1,715
|
|
|
Other interest income
|
|
48
|
|
289
|
|
|
Total interest income
|
|
45,187
|
|
41,598
|
|
|
Interest Expense:
|
|
|
|
|
|
|
Deposits
|
|
3,910
|
|
6,034
|
|
|
Borrowings
|
|
288
|
|
917
|
|
|
Subordinated debentures
|
|
1,821
|
|
1,203
|
|
|
Amortization of purchase accounting adjustments
|
|
(61)
|
|
(621)
|
|
|
Total interest expense
|
|
5,958
|
|
7,533
|
|
|
Net interest income
|
|
39,229
|
|
34,065
|
|
|
Provision for credit losses
|
|
-
|
|
7,102
|
|
|
Net interest income after provision for credit losses
|
|
39,229
|
|
26,963
|
|
|
|
|
|
|
|
|
|
Non-interest Income:
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
1,761
|
|
1,914
|
|
|
Mortgage Income
|
|
3,162
|
|
1,567
|
|
|
Interchange Fee Income
|
|
2,644
|
|
1,986
|
|
|
Gain (loss) on securities, net
|
|
20
|
|
174
|
|
|
Financial Assistance Award/Bank Enterprise Award
|
|
-
|
|
-
|
|
|
Bargain Purchase Gain and Gain on Sale of Land
|
|
-
|
|
-
|
|
|
Other charges and fees
|
|
1,885
|
|
833
|
|
|
Total non-interest income
|
|
9,472
|
|
6,474
|
|
|
|
|
|
|
|
|
|
Non-interest expense:
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
16,054
|
|
13,228
|
|
|
Occupancy expense
|
|
3,879
|
|
2,918
|
|
|
FDIC/OCC premiums
|
|
494
|
|
147
|
|
|
Marketing
|
|
160
|
|
213
|
|
|
Amortization of core deposit intangibles
|
|
1,052
|
|
938
|
|
|
Other professional services
|
|
934
|
|
874
|
|
|
Acquisition charges
|
|
-
|
|
740
|
|
|
Other non-interest expense
|
|
4,691
|
|
4,381
|
|
|
Total Non-interest expense
|
|
27,264
|
|
23,439
|
|
|
Earnings before income taxes
|
|
21,437
|
|
9,998
|
|
|
Income tax expense
|
|
4,793
|
|
1,687
|
|
|
Net income available to common shareholders
|
|
$ 16,644
|
|
$ 8,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$ 0.79
|
|
$ 0.44
|
|
|
Diluted earnings per common share, operating*
|
|
$ 0.79
|
|
$ 0.47
|
|
|
*See reconciliation of Non-GAAP financial measures
|
|
|
|
|
|
|
|
|
|
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands)
|
|
COMPOSITION OF LOANS
|
Mar 31,
2021
|
Percent
of Total
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
Percent
of Total
|
|
Commercial, financial and agricultural
|
$ 532,122
|
17.3%
|
$ 561,342
|
$ 576,812
|
$ 629,497
|
$ 327,979
|
12.5%
|
|
Real estate – construction
|
304,457
|
9.9%
|
301,283
|
330,070
|
337,337
|
334,707
|
12.8%
|
|
Real estate – commercial
|
1,217,505
|
39.7%
|
1,214,602
|
1,191,514
|
1,163,897
|
1,048,854
|
40.1%
|
|
Real estate – residential
|
944,032
|
30.7%
|
987,313
|
999,381
|
978,372
|
828,378
|
31.7%
|
|
Lease Financing Receivable
|
3,382
|
0.1%
|
2,733
|
2,478
|
2,811
|
3,526
|
0.1%
|
|
Obligations of States & subdivisions
|
14,996
|
0.5%
|
15,369
|
13,345
|
17,010
|
18,218
|
0.7%
|
|
Consumer
|
38,599
|
1.3%
|
41,036
|
42,332
|
42,611
|
40,626
|
1.6%
|
|
Loans held for sale
|
15,119
|
0.5%
|
21,432
|
22,482
|
18,632
|
13,288
|
0.5%
|
|
Total loans
|
$3,070,212
|
100%
|
$3,145,110
|
$3,178,414
|
$3,190,167
|
$2,615,576
|
100%
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF DEPOSITS
|
Mar 31,
2021
|
Percent
of Total
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
Percent
of Total
|
|
Noninterest bearing^
|
$ 632,485
|
13.7%
|
$571,079
|
$482,236
|
$486,039
|
$340,606
|
10.4%
|
|
NOW and other^
|
702,766
|
15.2%
|
664,626
|
658,453
|
601,195
|
478,526
|
14.6%
|
|
Money Market/Savings^
|
2,734,873
|
59.2%
|
2,398,526
|
2,456,504
|
2,451,991
|
1,826,973
|
55.7%
|
|
Time Deposits of less than $250,000
|
419,556
|
9.0%
|
439,101
|
473,265
|
499,406
|
462,808
|
14.1%
|
|
Time Deposits of $250,000 or more
|
130,617
|
2.9%
|
141,948
|
158,756
|
178,259
|
168,881
|
5.2%
|
|
Total Deposits
|
$4,620,297
|
100%
|
$4,215,280
|
$4,229,214
|
$4,216,890
|
$3,277,794
|
100%
|
|
|
|
|
|
|
|
|
|
|
Deposits Without Reclassification^
|
Mar 31,
2021
|
Percent
of Total
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
Percent
of Total
|
|
Noninterest bearing
|
$1,328,236
|
28.7%
|
$1,185,980
|
$1,195,042
|
$1,189,766
|
$ 749,939
|
22.9%
|
|
Now and other
|
1,562,119
|
33.8%
|
1,347,778
|
1,335,798
|
1,347,324
|
1,122,027
|
34.2%
|
|
Money Market/Savings
|
1,179,769
|
25.6%
|
1,100,473
|
1,066,353
|
1,002,135
|
774,139
|
23.6%
|
|
Time Deposits of less than $250,000
|
419,556
|
9.0%
|
439,101
|
473,265
|
499,406
|
462,808
|
14.1%
|
|
Time Deposits of $250,000 or more
|
130,617
|
2.9%
|
141,948
|
158,756
|
178,259
|
168,881
|
5.2%
|
|
Total Deposits
|
$4,620,297
|
100%
|
$4,215,280
|
$4,229,214
|
$4,216,890
|
$3,277,794
|
100%
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA
|
Mar 31,
2021
|
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
|
Nonaccrual loans
|
$ 29,981
|
|
$ 33,774
|
$ 37,300
|
$ 39,201
|
$ 37,751
|
|
|
Loans past due 90 days and over
|
1,079
|
|
2,692
|
2,396
|
1,009
|
2,393
|
|
|
Total nonperforming loans
|
31,060
|
|
36,466
|
39,696
|
40,210
|
40,144
|
|
|
Other real estate owned
|
5,769
|
|
5,802
|
5,202
|
5,471
|
6,974
|
|
|
Nonaccrual securities
|
-
|
|
-
|
-
|
-
|
-
|
|
|
Total nonperforming assets
|
$ 36,829
|
|
$42,268
|
$44,898
|
$45,681
|
$ 47,118
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
|
0.68%
|
|
0.82%
|
0.87%
|
0.90%
|
1.16%
|
|
|
Nonperforming assets to total loans + OREO
|
1.20%
|
|
1.35%
|
1.42%
|
1.44%
|
1.81%
|
|
|
ACL to nonperforming loans
|
105.16%
|
|
98.23%
|
86.30%
|
69.79%
|
51.82%
|
|
|
ACL to total loans
|
1.07%
|
|
1.15%
|
1.09%
|
0.88%
|
0.80%
|
|
|
|
|
|
|
|
|
|
|
|
Qtr-to-date net charge-offs (recoveries)
|
$ 3,553
|
|
$ 1,959
|
$ 729
|
$ 346
|
$ 205
|
|
|
Annualized QTD net chg-offs (recs) to loans
|
0.47%
|
|
0.25%
|
0.09%
|
0.04%
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FIRST BANCSHARES, INC and SUBSIDIARIES |
| Condensed Consolidated Financial Information (unaudited) |
| (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Yield |
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
| Analysis |
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
|
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 |
$699,585
|
$3,591
|
|
2.05%
|
|
$659,243
|
$3,678
|
|
2.23%
|
|
$616,168
|
$3,432
|
|
2.23%
|
|
$605,626
|
$3,439
|
|
2.27%
|
|
$560,613
|
$3,944
|
|
2.81%
|
| Tax-exempt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| securities |
367,322
|
2,590
|
|
2.82%
|
|
361,529
|
2,581
|
|
2.86%
|
|
341,550
|
2,513
|
|
2.94%
|
|
300,922
|
2,340
|
|
3.11%
|
|
224,212
|
1,821
|
|
3.25%
|
| Total investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| securities |
1,066,907
|
6,181
|
|
2.32%
|
|
1,020,772
|
6,259
|
|
2.45%
|
|
957,718
|
5,945
|
|
2.48%
|
|
906,548
|
5,779
|
|
2.55%
|
|
784,825
|
5,765
|
|
2.94%
|
| in other banks |
614,283
|
48
|
|
0.03%
|
|
404,069
|
41
|
|
0.04%
|
|
413,786
|
29
|
|
0.03%
|
|
321,559
|
19
|
|
0.02%
|
|
129,978
|
289
|
|
0.89%
|
| Loans |
3,097,145
|
39,613
|
|
5.12%
|
|
3,153,543
|
39,966
|
|
5.07%
|
|
3,165,653
|
40,999
|
|
5.18%
|
|
3,156,524
|
40,593
|
|
5.14%
|
|
2,602,340
|
36,005
|
|
5.53%
|
| Total Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| earning assets |
4,778,335
|
45,842
|
|
3.84%
|
|
4,578,384
|
46,266
|
|
4.04%
|
|
4,537,157
|
46,973
|
|
4.14%
|
|
4,384,631
|
46,391
|
|
4.23%
|
|
3,517,143
|
42,059
|
|
4.78%
|
| Other assets |
558,929
|
|
|
|
|
557,752
|
|
|
|
|
548,183
|
|
|
|
|
528,989
|
|
|
|
|
473,350
|
|
|
|
| Total assets |
$5,337,264
|
|
|
|
|
$5,136,136
|
|
|
|
|
$5,085,340
|
|
|
|
|
$4,913,620
|
|
|
|
|
$3,990,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
$4,172,326
|
$ 3,849
|
|
0.37%
|
|
$3,971,379
|
$ 4,064
|
|
0.41%
|
|
$3,960,054
|
$4,912
|
|
0.50%
|
|
$3,746,535
|
$5,219
|
|
0.56%
|
|
$3,042,529
|
$5,413
|
|
0.71%
|
| Borrowed Funds |
100,143
|
288
|
|
1.15%
|
|
115,430
|
260
|
|
0.90%
|
|
115,935
|
265
|
|
0.91%
|
|
116,270
|
224
|
|
0.77%
|
|
145,267
|
917
|
|
2.53%
|
| Subordinated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| debentures |
144,590
|
1,821
|
|
5.04%
|
|
144,676
|
1,823
|
|
5.04%
|
|
81,470
|
1,188
|
|
5.83%
|
|
80,736
|
1,176
|
|
5.83%
|
|
80,697
|
1,203
|
|
5.96%
|
| Total interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| bearing liabilities |
4,417,059
|
5,958
|
|
0.54%
|
|
4,231,485
|
6,147
|
|
0.58%
|
|
4,157,459
|
6,365
|
|
0.61%
|
|
3,943,541
|
6,619
|
|
0.67%
|
|
3,268,493
|
7,533
|
|
0.92%
|
| Other liabilities |
275,282
|
|
|
|
|
263,823
|
|
|
|
|
295,354
|
|
|
|
|
362,952
|
|
|
|
|
174,691
|
|
|
|
| Shareholders' equity |
644,923
|
|
|
|
|
640,828
|
|
|
|
|
632,527
|
|
|
|
|
607,127
|
|
|
|
|
547,309
|
|
|
|
| Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| shareholders' |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| equity |
$5,337,264
|
|
|
|
|
$5,136,136
|
|
|
|
|
$5,085,340
|
|
|
|
|
$4,913,620
|
|
|
|
|
$3,990,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| income (FTE)* |
|
$39,884
|
|
3.30%
|
|
|
$40,119
|
|
3.46%
|
|
|
$40,608
|
|
3.53%
|
|
|
$39,772
|
|
3.56%
|
|
|
$34,526
|
|
3.86%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin (FTE)* |
|
|
3.34%
|
|
|
|
|
3.51%
|
|
|
|
|
3.58%
|
|
|
|
|
3.63%
|
|
|
|
|
3.93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| margin* |
|
|
|
3.25%
|
|
|
|
|
3.35%
|
|
|
|
|
3.41%
|
|
|
|
|
3.42%
|
|
|
|
|
3.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *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
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Book value per common share
|
|
$ 30.64
|
$ 30.54
|
$ 29.82
|
$ 29.34
|
$ 29.49
|
|
Effect of intangible assets per share
|
|
8.88
|
8.89
|
8.89
|
8.94
|
9.97
|
|
Tangible book value per common share
|
|
$ 21.76
|
$ 21.65
|
$ 20.93
|
$ 20.40
|
$ 19.52
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$ 0.79
|
$ 0.72
|
$ 0.55
|
$ 0.79
|
$ 0.44
|
|
Effect of acquisition charges
|
|
-
|
0.01
|
0.01
|
0.11
|
0.04
|
|
Tax on acquisition charges
|
|
-
|
-
|
-
|
(0.03)
|
(0.01)
|
|
Effect of bargain purchase gain and gain on sale of land
|
|
-
|
(0.04)
|
-
|
(0.36)
|
-
|
|
Tax on gain on sale of land
|
|
-
|
-
|
-
|
0.01
|
-
|
|
Effect of Treasury awards
|
|
-
|
(0.05)
|
-
|
-
|
-
|
|
Tax on Treasury awards
|
|
-
|
0.01
|
-
|
-
|
-
|
|
Diluted earnings per share, operating
|
|
$ 0.79
|
$ 0.65
|
$ 0.56
|
$ 0.52
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
|
|
|
2021
|
|
2020
|
|
|
Diluted earnings per share
|
|
|
$ 0.79
|
|
$ 0.44
|
|
|
Effect of acquisition charges
|
|
|
-
|
|
0.04
|
|
|
Tax on acquisition charges
|
|
|
-
|
|
(0.01)
|
|
|
Effect of bargain purchase gain and gain on sale of land
|
|
|
-
|
|
-
|
|
|
Tax on gain on sale of land
|
|
|
-
|
|
-
|
|
|
Effect of Treasury awards
|
|
|
-
|
|
-
|
|
|
Tax on Treasury awards
|
|
|
-
|
|
-
|
|
|
Diluted earnings per share, operating
|
|
|
$ 0.79
|
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date
|
|
|
|
|
2021
|
|
2020
|
|
|
Net income available to common shareholders
|
|
|
$ 16,644
|
|
$ 8,311
|
|
|
Acquisition charges
|
|
|
-
|
|
740
|
|
|
Tax on acquisition charges
|
|
|
-
|
|
(164)
|
|
|
Bargain purchase gain and gain on sale of land
|
|
|
-
|
|
-
|
|
|
Tax on gain on sale of land
|
|
|
-
|
|
-
|
|
|
Treasury awards
|
|
|
-
|
|
-
|
|
|
Tax on Treasury awards
|
|
|
-
|
|
-
|
|
|
Net earnings available to common shareholders, operating
|
|
|
$ 16,644
|
|
$ 8,887
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Average Balance Sheet Data
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Total average assets
|
A
|
$5,337,264
|
$5,136,136
|
$5,085,340
|
$4,913,620
|
$3,990,493
|
|
Total average earning assets
|
B
|
4,778,335
|
$4,578,384
|
$4,537,157
|
$4,384,631
|
$3,517,143
|
|
|
|
|
`
|
|
|
|
|
Common Equity
|
C
|
$ 644,923
|
$ 640,828
|
$ 632,527
|
$ 607,127
|
$ 547,309
|
|
Less intangible assets
|
|
187,148
|
189,817
|
190,892
|
183,161
|
188,420
|
|
Total Tangible common equity
|
D
|
$ 457,775
|
$ 451,011
|
$ 441,635
|
$ 423,966
|
$ 358,889
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Net Interest Income Fully Tax Equivalent
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Net interest income
|
E
|
$ 39,229
|
$ 39,466
|
$ 39,972
|
$ 39,180
|
$ 34,065
|
|
Tax-exempt investment income
|
|
(1,935)
|
(1,928)
|
(1,877)
|
(1,748)
|
(1,360)
|
|
Taxable investment income
|
|
2,590
|
2,581
|
2,513
|
2,340
|
1,821
|
|
Net Interest Income Fully Tax Equivalent
|
F
|
$ 39,884
|
$ 40,119
|
$ 40,608
|
$ 39,772
|
$ 34,526
|
|
|
|
|
|
|
|
|
|
Annualized Net Interest Margin
|
E/B
|
3.28%
|
3.45%
|
3.52%
|
3.57%
|
3.87%
|
|
Annualized Net Interest Margin, Fully Tax Equivalent
|
F/B
|
3.34%
|
3.51%
|
3.58%
|
3.63%
|
3.93%
|
|
|
|
|
|
|
|
|
|
Total Interest Income, Fully Tax Equivalent
|
|
|
|
|
|
|
|
Total Interest Income
|
|
$ 45,187
|
$ 45,613
|
$ 46,337
|
$ 45,799
|
$ 41,598
|
|
Tax-exempt investment income
|
|
(1,935)
|
(1,928)
|
(1,877)
|
(1,748)
|
(1,360)
|
|
Taxable investment income
|
|
2,590
|
2,581
|
2,513
|
2,340
|
1,821
|
|
Total Interest Income, Fully Tax Equivalent
|
G
|
$ 45,842
|
$ 46,266
|
$ 46,973
|
$ 46,391
|
$ 42,059
|
|
|
|
|
|
|
|
|
|
Yield on Average Earning Assets, Fully Tax Equivalent
|
G/B
|
3.84%
|
4.04%
|
4.14%
|
4.23%
|
4.78%
|
|
|
|
|
|
|
|
|
|
Interest Income Investment Securities, Fully Tax Equivalent
|
|
|
|
|
|
|
|
Interest Income Investment Securities
|
|
$ 5,526
|
$ 5,606
|
$ 5,309
|
$ 5,187
|
$ 5,304
|
|
Tax-exempt investment income
|
|
(1,935)
|
(1,928)
|
(1,877)
|
(1,748)
|
(1,360)
|
|
Taxable investment Income
|
|
2,590
|
2,581
|
2,513
|
2,340
|
1,821
|
|
Interest Income Investment Securities, Fully Tax Equivalent
|
H
|
$ 6,181
|
$ 6,259
|
$ 5,945
|
$ 5,779
|
$ 5,765
|
|
|
|
|
|
|
|
|
|
Average Investment Securities
|
I
|
$ 1,066,907
|
$ 1,020,772
|
$ 957,718
|
$ 906,548
|
$ 784,825
|
|
|
|
|
|
|
|
|
|
Yield on Investment Securities, Fully Tax Equivalent
|
H/I
|
2.32%
|
2.45%
|
2.48%
|
2.55%
|
2.94%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Core Net Interest Margin
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Net interest income (FTE)
|
|
$ 39,884
|
$ 40,119
|
$ 40,608
|
$ 39,772
|
$ 34,526
|
|
Less purchase accounting adjustments
|
|
1,026
|
1,692
|
1,853
|
2,157
|
2,336
|
|
Net interest income, net of purchase accounting adj
|
J
|
$ 38,858
|
$ 38,427
|
$ 38,755
|
$ 37,615
|
$ 32,190
|
|
|
|
|
|
|
|
|
|
Total average earning assets
|
|
$4,778,335
|
$4,578,384
|
$4,537,157
|
$4,384,631
|
$3,517,143
|
|
Add average balance of loan valuation discount
|
|
8,480
|
9,808
|
11,501
|
10,651
|
12,237
|
|
Avg earning assets, excluding loan valuation discount
|
K
|
$4,786,815
|
$4,588,192
|
$4,548,658
|
$4,395,282
|
$3,529,380
|
|
|
|
|
|
|
|
|
|
Core net interest margin
|
J/K
|
3.25%
|
3.35%
|
3.41%
|
3.42%
|
3.65%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Efficiency Ratio
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Operating Expense
|
|
|
|
|
|
|
|
Total non-interest expense
|
|
$ 27,264
|
$ 27,897
|
$ 26,935
|
$ 28,070
|
$ 23,439
|
|
Pre-tax non-operating expenses
|
|
-
|
(41)
|
(238)
|
(2,295)
|
(740)
|
|
Adjusted Operating Expense
|
L
|
$ 27,264
|
$ 27,856
|
$ 26,697
|
$ 25,775
|
$ 22,699
|
|
|
|
|
|
|
|
|
|
Operating Revenue
|
|
|
|
|
|
|
|
Net interest income, FTE
|
|
$ 39,884
|
$ 40,119
|
$ 40,608
|
$ 39,772
|
$ 34,526
|
|
Total non-interest income
|
|
9,472
|
10,928
|
8,794
|
15,680
|
6,474
|
|
Pre-tax non-operating items
|
|
-
|
(1,780)
|
-
|
(7,643)
|
-
|
|
Adjusted Operating Revenue
|
M
|
$ 49,356
|
$ 49,267
|
$ 49,402
|
$ 47,809
|
$ 41,000
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio, operating
|
L/M
|
55.24%
|
56.54%
|
54.04%
|
53.91%
|
55.36%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Return Ratios
|
|
Mar 31,
2021
|
Dec 31,
2020
|
Sept 30,
2020
|
June 30,
2020
|
Mar 31,
2020
|
|
Net income available to common shareholders
|
N
|
$ 16,644
|
$ 15,335
|
$ 11,917
|
$ 16,943
|
$ 8,311
|
|
Acquisition charges
|
|
-
|
41
|
238
|
2,295
|
740
|
|
Tax on acquisition charges
|
|
-
|
(10)
|
(61)
|
(518)
|
(164)
|
|
Bargain purchase gain and gain on sale of land
|
|
-
|
(812)
|
-
|
(7,643)
|
-
|
|
Tax on gain on sale of land
|
|
-
|
-
|
-
|
157
|
-
|
|
Treasury awards
|
|
-
|
(968)
|
-
|
-
|
-
|
|
Tax on Treasury awards
|
|
-
|
245
|
-
|
-
|
-
|
|
Net earnings available to common shareholders, operating
|
O
|
$ 16,644
|
$ 13,831
|
$ 12,094
|
$ 11,234
|
$ 8,887
|
|
|
|
|
|
|
|
|
|
Pre-Tax Pre-Provision Operating Earnings
|
|
|
|
|
|
|
|
Earnings before income taxes
|
P
|
$ 21,437
|
$ 18,974
|
$ 14,910
|
$ 19,184
|
$ 9,998
|
|
Acquisition charges
|
|
-
|
41
|
238
|
2,295
|
740
|
|
Provision for loan losses
|
|
-
|
3,523
|
6,921
|
7,606
|
7,102
|
|
Treasury Awards and Gains
|
|
-
|
(1,780)
|
-
|
(7,643)
|
-
|
|
Pre-Tax, Pre-Provision Operating Earnings
|
Q
|
$ 21,437
|
$ 20,758
|
$ 22,069
|
$ 21,442
|
$ 17,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on avg assets
|
N/A
|
1.25%
|
1.19%
|
0.94%
|
1.38%
|
0.83%
|
|
Annualized return on avg assets, oper
|
O/A
|
1.25%
|
1.08%
|
0.95%
|
0.91%
|
0.89%
|
|
Annualized pre-tax, pre-provision, oper
|
Q/A
|
1.61%
|
1.62%
|
1.74%
|
1.75%
|
1.79%
|
|
Annualized return on avg common equity, oper
|
O/C
|
10.32%
|
8.63%
|
7.65%
|
7.40%
|
6.50%
|
|
Annualized return on avg tangible common equity, operating
|
O/D
|
14.54%
|
12.27%
|
10.95%
|
10.60%
|
9.91%
|
|
|
|
|
|
|
|
|
|
Mortgage Department
|
|
|
|
|
|
|
|
Net Interest Income after provision for credit losses
|
|
$ 140
|
$ 133
|
$ 142
|
$ 127
|
$ 119
|
|
Loan fee income
|
|
3,162
|
3,270
|
2,961
|
2,646
|
1,567
|
|
Salaries and employee benefits
|
|
(1,512)
|
(1,329)
|
(1,444)
|
(1,246)
|
(1,077)
|
|
Other non-interest expense
|
|
(126)
|
(105)
|
(110)
|
(99)
|
(152)
|
|
Earnings before income taxes
|
|
$ 1,664
|
$ 1,969
|
$ 1,549
|
$ 1,428
|
$ 457
|
