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The First Bancshares, Inc. Reports Results for Second Quarter ended June 30, 2024

The First Bancshares, Inc. (“FBMS” or “the Company”) (NYSE: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended June 30, 2024.

Highlights for the Quarter:

  • Net income available to common shareholders totaled $19.7 million for the quarter ended June 30, 2024, representing a decrease of 4.5% when compared to $20.6 million for the quarter ended March 31, 2024. The Company recorded $1.7 million provision for credit losses for the quarter ended June 30, 2024 and no provision for credit losses for the quarter ended March 31, 2024.
  • Pre-tax pre-provision operating earnings (non-GAAP) totaled $27.4 million for the quarter ended June 30, 2024, representing an increase of 2.9% when compared to $26.6 million for the quarter ended March 31, 2024.
  • Total loans increased $110.9 million during the quarter ended June 30, 2024, which represented an annualized increase of 8.6%.
  • Annualized net interest margin increased 6 basis points to 3.26% for the quarter ended June 30, 2024 from 3.20% for the quarter ended March 31, 2024.
  • Core net interest margin increased 9 basis points during the quarter ended June 30, 2024 from 3.10% to 3.19%.
  • Cost of deposits averaged 178 basis points for the second and first quarter of 2024.
  • Past due loans to total loans were $20.8 million or 0.40% for the quarter ending June 30, 2024, compared to $13.4 million, or 0.26% for the quarter ending March 31, 2024, and $12.6 million, or 0.25% for the quarter ending June 30, 2023.
  • Annualized quarter-to-date net charge-offs to total loans were $0.5 million, or 0.04% for the quarter ending June 30, 2024, compared to $0.1 million, or 0.01% for the quarter ending March 31, 2024 and $0.8 million, or 0.07% for the quarter ending June 30, 2023.
  • Nonperforming assets to total assets were $21.1 million, or 0.26% for the quarter ending June 30, 2024, compared to $18.4 million, or 0.23% for the quarter ending March 31, 2024, and $21.6 million, 0.28% for the quarter ending June 30, 2023.
  • On May 17, 2024, the Company, acting pursuant to authorization from its Board of Directors, provided written notice to The Nasdaq Stock Market LLC ("Nasdaq") of its determination to voluntarily withdraw the principal listing of the Company's voting common stock, $1.00 par value per share (the "Common Stock"), from Nasdaq and transfer the listing to the New York Stock Exchange ("NYSE"). The listing and trading of the Common Stock on Nasdaq ended at market close on May 29, 2024, and trading commenced on the NYSE at market open on May 30, 2024. The Common Stock is traded on the NYSE under the symbol "FBMS."
  • For additional information, 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.

M. Ray “Hoppy” Cole, Jr., President and Chief Executive Officer, commented, "We are pleased with the results of the second quarter. Strong loan growth and improvement in our net interest margin combined to produce a 2.9% increase in pre- tax pre- provision income. Credit quality continued to be solid and operating expenses were well controlled. Our markets continue to do well and we are optimistic about our performance for the second half of 2024."

Quarterly Earnings

Net income available to common shareholders totaled $19.7 million for the quarter ended June 30, 2024, a decrease of $0.9 million, or 4.5%, when compared to $20.6 million for the quarter ended March 31, 2024.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.7 million, or 3.3%, to $20.0 million for quarter ended June 30, 2024 as compared to $20.6 million for the quarter ended March 31, 2024. The decrease in net earnings is largely attributable to an increase in provision for credit losses of $1.7 million, which was due primarily to loan growth.

The Company recorded $1.7 million provision for credit losses for the quarter ended June 30, 2024 and no provision for credit losses for the quarter ended March 31, 2024.

Earnings Per Share

For the second quarter of 2024, diluted earnings per share were $0.62 compared to $0.65 for the first quarter of 2024 and $0.75 for the second quarter of 2023.

Diluted earnings per share, operating (non-GAAP) were $0.63 for the second quarter of 2024 compared to $0.65 for the first quarter of 2024 and $0.85 for the second quarter of 2023.

Balance Sheet

Consolidated assets increased $2.0 million to $7.966 billion at June 30, 2024 from $7.964 billion at March 31, 2024. Loans increased $110.9 million, or 2.2%, for the quarterly comparison and deposits decreased $84.2 million for the quarterly comparison.

Total loans were $5.251 billion for the quarter ended June 30, 2024, as compared to $5.140 billion for the quarter ended March 31, 2024, and $5.011 billion for the quarter ended June 30, 2023, representing an increase of $110.9 million, or 2.2%, for the sequential quarter comparison, and an increase of $240.0 million, or 4.8%, for the prior year quarterly comparison.

Total deposits were $6.626 billion for the quarter ended June 30, 2024, as compared to $6.710 billion for the quarter ended March 31, 2024, and $6.492 billion for the quarter ended June 30, 2023, representing a decrease of $84.2 million, or 1.3%, for the sequential quarter comparison, and an increase of $133.9 million, or 2.1%, for the prior year quarterly comparison. Excluding a decrease in public funds of $38.3 million, deposits decreased $45.9 million, or 0.7% for the sequential quarter comparison. Non-interest bearing deposits as a percentage of total deposits increased to 28.2% for the quarter ended June 30, 2024.

Asset Quality

Nonperforming assets totaled $21.1 million at June 30, 2024, an increase of $2.7 million compared to $18.4 million at March 31, 2024 and a decrease of $0.5 million compared to $21.6 million at June 30, 2023.

Nonaccrual loans totaled $13.6 million, an increase of $2.6 million as compared to March 31, 2024 and a decrease of $2.5 million as compared to June 30, 2023.

The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at June 30, 2024, 1.05% at March 31, 2024 and 1.05% at June 30, 2023. The ratio of annualized net charge-offs to total loans was 0.04% for the quarter ended June 30, 2024 compared to 0.01% for the quarter ended March 31, 2024 and 0.07% for the quarter ended June 30, 2023.

Second Quarter 2024 vs First Quarter 2024 Earnings Comparison

Net income available to common shareholders for the second quarter of 2024 decreased $0.9 million to $19.7 million compared to $20.6 million for the first quarter of 2024. The Company recorded a $1.7 million provision for credit losses for the quarter ended June 30, 2024 and none for the quarter ended March 31, 2024.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.7 million, or 3.3%, to $20.0 million for quarter ended June 30, 2024 as compared to $20.6 million for the quarter ended March 31, 2024. The decrease in net earnings is largely attributable to an increase in provision for credit losses of $1.7 million.

Net interest income for the second quarter of 2024 was $57.8 million as compared to $57.3 million for the first quarter of 2024, an increase of $0.5 million. The increase was largely due to the decrease in interest expense on borrowings of $1.1 million offset by a decrease in interest income of $0.6 million.

Second quarter 2024 net interest margin of 3.26% included 12 basis points related to purchase accounting adjustments compared to 3.20% for the first quarter in 2024, which included 15 basis points related to purchase accounting adjustments.

Core net interest margin increased 9 basis points to 3.19% for the second quarter of 2024 from 3.10% for the first quarter of 2024.

Investment securities increased $26.0 million to $1.771 billion, or 22.2% of total assets at June 30, 2024, compared to $1.745 billion, or 21.9% of total assets at March 31, 2024. The average balance of investment securities decreased $23.5 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 17 basis points to 2.65% from 2.48% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $129.0 million at June 30, 2024 as compared to a net unrealized loss of $127.6 million at March 31, 2024.

The average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 5.12% to 5.14%. Interest expense on average interest bearing liabilities decreased 3 basis points from 2.65% for the first quarter of 2024 to 2.62% for the second quarter of 2024.

Cost of all deposits averaged 178 basis points for the second and first quarter of 2024.

Non-interest income increased $0.6 million from $12.7 million in the first quarter of 2024 to $13.3 million in the second quarter of 2024, primarily attributable to an increase in interchange fee income of $0.7 million.

Non-interest expense for the second quarter of 2024 was $44.1 million compared to $43.4 million for the first quarter of 2024, an increase of $0.7 million.

Second Quarter 2024 vs. Second Quarter 2023 Earnings Comparison

Net income available to common shareholders for the second quarter of 2024 totaled $19.7 million compared to $23.8 million for the second quarter of 2023, a decrease of $4.1 million or 17.2%. This decrease is largely attributable to a decrease in net interest income of $8.2 million.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $6.9 million, or 25.6%, to $20.0 million for quarter ended June 30, 2024, as compared to $26.8 million for the quarter ended June 30, 2023. This decrease is attributable to a decrease in net interest income of $8.2 million offset by a decrease in other expenses of $2.0 million.

Net interest income for the second quarter of 2024 was $57.8 million, a decrease of $8.2 million or 12.5% when compared to the second quarter of 2023. Fully tax equivalent (“FTE”) net interest income (non-GAAP) totaled $58.8 million and $67.0 million for the second quarter of 2024 and 2023, respectively. Purchase accounting adjustments decreased $4.5 million for the second quarter comparisons. The decrease was largely due to increased interest expense due to increased competition for deposits offset by an increase in interest income of $4.8 million.

Second quarter of 2024 net interest margin was 3.26%, which included 12 basis points related to purchase accounting adjustments compared to 3.76% for the same quarter in 2023, which included 37 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 25 basis points in prior year quarterly comparison primarily due to an increase in rates on interest bearing liabilities.

Non-interest income increased $0.9 million for the second quarter of 2024 as compared to the second quarter of 2023.

Second quarter 2024 non-interest expense was $44.1 million, a decrease of $2.8 million, or 6.0% as compared to the second quarter of 2023. Excluding acquisition charges, non-interest expense increased $0.9 million of which salaries and employee benefits, occupancy and professional service increased $ 2.6 million offset by a decrease in other expenses of $2.0 million.

Investment securities totaled $1.771 billion, or 22.2% of total assets at June 30, 2024, compared to $1.898 billion, or 24.1% of total assets at June 30, 2023. For the second quarter of 2024 compared to the second quarter of 2023, the average balance of investment securities decreased $156.4 million. The average tax equivalent yield on investment securities (non-GAAP) increased 42 basis points to 2.65% from 2.23% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $129.0 million at June 30, 2024 as compared to a net unrealized loss of $157.6 million at June 30, 2023.

The average yield on all earning assets increased 23 basis points in prior year quarterly comparison, from 4.91% for the second quarter of 2023 to 5.14% for the second quarter of 2024. Interest expense on average interest bearing liabilities increased 97 basis points from 1.65% for the second quarter of 2023 to 2.62% for the second quarter of 2024.

Cost of all deposits averaged 178 basis points for the second quarter of 2024 compared to 91 basis points for the second quarter of 2023.

Year-to-Date Earnings Comparison

In the year-over-year comparison, net income available to common shareholders increased $0.3 million, or 0.7%, from $40.1 million for the six months ended June 30, 2023, to $40.3 million for the same period ended June 30, 2024.

Net interest income was $115.1 million for the six months ended June 30, 2024, a decrease of $15.8 million as compared to the same period ended June 30, 2023, primarily due to an increase in interest expense on deposits offset by an increase in loan interest income.

Non-interest income was $26.0 million for the six months ended June 30, 2024, an increase of $1.0 million as compared to the same period ended June 30, 2023. An increase in other charges and fees accounted for the change.

Non-interest expense was $87.5 million for the six months ended June 30, 2024, a decrease of $5.1 million as compared to the same period ended June 30, 2023. The decrease was primarily due to decreased acquisition charges of $7.5 million offset by an increase in salaries and employee benefits of $2.7 million.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.25 per share to be paid on its common stock on August 23, 2024 to shareholders of record as of the close of business on August 8, 2024.

Conference Call

The Company will host a conference call for analysts and investors to discuss the Company’s financial results at 10:00 a.m. Central Time on Thursday, July 25, 2024. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BI543394697ff8411dad8a7bcdd9804108. An audio archive of the conference call along with the transcript will be available within 24-48 hours after the call and placed in the Investor Relations section of our website.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank (“The First”). Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s stock is traded on the New York Stock Exchange 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 pre-tax, pre-provision operating earnings, FTE net interest income, FTE net interest margin, core net interest margin, FTE average yield on investment securities, FTE average yield on all earning assets, total tangible common equity, tangible book value per common share, net earnings available to common shareholders, operating, diluted earnings per share, operating, efficiency ratio, operating 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. Fully-tax equivalent, or "FTE", financial metrics are measures used by management to evaluate the corresponding GAAP financial metrics in a manner that takes into account the tax benefits associated with income sources that are exempt from state or federal taxes. Core net interest margin is used by management to measure the net return on earnings assets, which includes investment securities, loans, and leases but excludes certain income and expense items that the Company's management considers to be non-core/adjusted in nature. Similarly, "operating" financial metrics, including operating efficiency ratio and operating earnings per share, are used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Management uses "tangible" financial metrics, including tangible common equity and tangible book value, to measure the value of the Company's assets net of intangible assets, such as goodwill. 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, net interest margin, common equity, net earnings available to common shareholders, diluted earnings per share, efficiency ratio, average yield on investment securities, average yield on all earning assets, 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) prevailing, or changes in, economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations, including the effects of declines in the real estate market, high unemployment rates, inflationary pressure, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (3) interest rate risk, including the effects of rising interest rates; (4) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (5) changes in applicable laws, rules, or regulations; (6) 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; (7) changes in management’s plans for the future; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) changes in accounting principles, policies, or guidelines; (11) 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 and related variants; (12) higher inflation and its impacts; (13) significant turbulence or disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (14) potential impacts of the adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (15) the effects of war or other conflicts including the impacts relating to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas, and (16) 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 SEC, 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.

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands except per share data)

EARNINGS DATA

Quarter

Ended

6/30/24

 

Quarter

Ended

3/31/24

 

Quarter

Ended

12/31/23

 

Quarter

Ended

9/30/23

 

Quarter

Ended

6/30/23

Total Interest Income

$

91,027

 

 

$

91,663

 

 

$

88,720

 

 

$

85,681

 

 

$

86,194

 

Total Interest Expense

 

33,233

 

 

 

34,322

 

 

 

31,055

 

 

 

24,977

 

 

 

20,164

 

Net Interest Income

 

57,794

 

 

 

57,341

 

 

 

57,665

 

 

 

60,704

 

 

 

66,030

 

Net Interest Income excluding PPP Fee Income

 

57,793

 

 

 

57,340

 

 

 

57,664

 

 

 

60,703

 

 

 

66,029

 

FTE net interest income*

 

58,797

 

 

 

58,339

 

 

 

58,651

 

 

 

61,696

 

 

 

67,028

 

Provision for credit losses

 

1,650

 

 

 

 

 

 

1,250

 

 

 

1,000

 

 

 

1,250

 

Non-interest income

 

13,319

 

 

 

12,679

 

 

 

2,346

 

 

 

19,324

 

 

 

12,423

 

Non-interest expense

 

44,089

 

 

 

43,425

 

 

 

44,433

 

 

 

47,724

 

 

 

46,899

 

Earnings before income taxes

 

25,374

 

 

 

26,595

 

 

 

14,328

 

 

 

31,304

 

 

 

30,304

 

Income tax expense

 

5,677

 

 

 

5,967

 

 

 

3,281

 

 

 

6,944

 

 

 

6,525

 

Net income available to common shareholders

$

19,697

 

 

$

20,628

 

 

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.62

 

 

$

0.66

 

 

$

0.35

 

 

$

0.78

 

 

$

0.76

 

Diluted earnings per share

 

0.62

 

 

 

0.65

 

 

 

0.35

 

 

 

0.77

 

 

 

0.75

 

Diluted earnings per share, operating*

 

0.63

 

 

 

0.65

 

 

 

0.59

 

 

 

0.76

 

 

 

0.85

 

Quarterly dividends per share

 

0.25

 

 

 

0.25

 

 

 

0.24

 

 

 

0.23

 

 

 

0.22

 

Book value per common share at end of period

 

30.83

 

 

 

30.45

 

 

 

30.22

 

 

 

28.57

 

 

 

28.64

 

Tangible book value per common share at period end*

 

20.15

 

 

 

19.70

 

 

 

19.35

 

 

 

17.62

 

 

 

17.62

 

Market price at end of period

 

25.98

 

 

 

25.95

 

 

 

29.33

 

 

 

26.97

 

 

 

25.84

 

Shares outstanding at period end

 

31,525,232

 

 

 

31,528,748

 

 

 

31,399,803

 

 

 

31,404,231

 

 

 

31,406,220

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

31,527,592

 

 

 

31,475,254

 

 

 

31,401,612

 

 

 

31,405,439

 

 

 

31,378,364

 

Diluted

 

31,679,827

 

 

 

31,630,745

 

 

 

31,587,506

 

 

 

31,609,564

 

 

 

31,591,665

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

Total assets

$

7,939,783

 

 

$

8,005,574

 

 

$

7,917,303

 

 

$

7,873,345

 

 

$

7,882,130

 

Loans and leases

 

5,202,006

 

 

 

5,158,071

 

 

 

5,145,228

 

 

 

5,038,928

 

 

 

4,982,368

 

Total deposits

 

6,625,500

 

 

 

6,599,287

 

 

 

6,440,774

 

 

 

6,466,141

 

 

 

6,501,372

 

Total common equity

 

963,445

 

 

 

952,708

 

 

 

901,530

 

 

 

905,070

 

 

 

901,499

 

Total tangible common equity*

 

625,586

 

 

 

612,470

 

 

 

558,889

 

 

 

560,071

 

 

 

554,792

 

 

 

 

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

 

 

 

 

Annualized return on avg assets (ROA)

 

0.99

%

 

 

1.03

%

 

 

0.56

%

 

 

1.24

%

 

 

1.21

%

Annualized return on avg assets, operating*

 

1.01

%

 

 

1.03

%

 

 

0.95

%

 

 

1.22

%

 

 

1.36

%

Annualized pre-tax, pre-provision, operating*

 

1.38

%

 

 

1.33

%

 

 

1.31

%

 

 

1.62

%

 

 

1.81

%

Annualized return on avg common equity, operating*

 

8.29

%

 

 

8.66

%

 

 

8.32

%

 

 

10.63

%

 

 

11.91

%

Annualized return on avg tangible common equity, operating*

 

12.76

%

 

 

13.48

%

 

 

13.41

%

 

 

17.17

%

 

 

19.35

%

Average loans to average deposits

 

78.51

%

 

 

78.16

%

 

 

79.89

%

 

 

77.93

%

 

 

76.64

%

FTE Net Interest Margin*

 

3.32

%

 

 

3.26

%

 

 

3.33

%

 

 

3.52

%

 

 

3.82

%

Efficiency Ratio

 

61.14

%

 

 

61.15

%

 

 

72.84

%

 

 

58.90

%

 

 

59.02

%

Efficiency Ratio, operating*

 

60.65

%

 

 

61.14

%

 

 

62.00

%

 

 

56.06

%

 

 

53.87

%

*See reconciliation of non-GAAP financial measures

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

 

 

 

 

 

 

 

 

 

Allowance for credit losses (ACL) as a % of total loans

 

1.05

%

 

 

1.05

%

 

 

1.05

%

 

 

1.05

%

 

 

1.05

%

Nonperforming assets to tangible equity + ACL

 

3.05

%

 

 

2.72

%

 

 

3.05

%

 

 

3.69

%

 

 

3.57

%

Nonperforming assets to total loans + OREO

 

0.40

%

 

 

0.36

%

 

 

0.39

%

 

 

0.44

%

 

 

0.43

%

Annualized QTD net charge-offs (recoveries) to total loans

 

0.036

%

 

 

0.006

%

 

 

0.061

%

 

 

0.004

%

 

 

0.070

%

 

 

 

 

 

 

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET

June 30,

2024

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

207,606

 

 

$

339,964

 

 

$

355,147

 

 

$

197,632

 

 

$

194,050

 

Securities available for sale

 

1,124,462

 

 

 

1,088,568

 

 

 

1,042,365

 

 

 

1,141,971

 

 

 

1,199,103

 

Securities held to maturity

 

607,502

 

 

 

622,574

 

 

 

654,539

 

 

 

658,524

 

 

 

663,473

 

Other investments

 

39,293

 

 

 

34,094

 

 

 

37,754

 

 

 

35,872

 

 

 

35,725

 

Total investment securities

 

1,771,257

 

 

 

1,745,236

 

 

 

1,734,658

 

 

 

1,836,367

 

 

 

1,898,301

 

Loans held for sale

 

5,892

 

 

 

4,241

 

 

 

2,914

 

 

 

5,960

 

 

 

6,602

 

Total loans

 

5,250,893

 

 

 

5,139,952

 

 

 

5,170,042

 

 

 

5,089,800

 

 

 

5,010,925

 

Allowance for credit losses

 

(55,133

)

 

 

(53,959

)

 

 

(54,032

)

 

 

(53,565

)

 

 

(52,614

)

Loans, net

 

5,195,760

 

 

 

5,085,993

 

 

 

5,116,010

 

 

 

5,036,235

 

 

 

4,958,311

 

Premises and equipment

 

179,289

 

 

 

181,194

 

 

 

182,162

 

 

 

183,740

 

 

 

186,381

 

Other Real Estate Owned

 

6,356

 

 

 

6,743

 

 

 

8,320

 

 

 

4,920

 

 

 

5,588

 

Goodwill and other intangibles

 

336,561

 

 

 

338,946

 

 

 

341,332

 

 

 

343,869

 

 

 

346,104

 

Other assets

 

263,079

 

 

 

261,442

 

 

 

258,802

 

 

 

275,562

 

 

 

266,771

 

Total assets

$

7,965,800

 

 

$

7,963,759

 

 

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

$

1,870,305

 

 

$

1,836,952

 

 

$

1,849,013

 

 

$

1,967,661

 

 

$

2,086,666

 

Interest-bearing deposits

 

4,755,812

 

 

 

4,873,403

 

 

 

4,613,859

 

 

 

4,512,364

 

 

 

4,405,601

 

Total deposits

 

6,626,117

 

 

 

6,710,355

 

 

 

6,462,872

 

 

 

6,480,025

 

 

 

6,492,267

 

Borrowings

 

182,400

 

 

 

110,000

 

 

 

390,000

 

 

 

302,000

 

 

 

280,000

 

Subordinated debentures

 

123,558

 

 

 

123,472

 

 

 

123,386

 

 

 

128,300

 

 

 

128,214

 

Other liabilities

 

61,840

 

 

 

60,020

 

 

 

74,053

 

 

 

76,739

 

 

 

62,181

 

Total liabilities

 

6,993,915

 

 

 

7,003,847

 

 

 

7,050,311

 

 

 

6,987,064

 

 

 

6,962,662

 

Total shareholders’ equity

 

971,885

 

 

 

959,912

 

 

 

949,034

 

 

 

897,221

 

 

 

899,446

 

Total liabilities and shareholders’ equity

$

7,965,800

 

 

$

7,963,759

 

 

$

7,999,345

 

 

$

7,884,285

 

 

$

7,862,108

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Three Months Ended

6/30/2024

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

Interest Income:

 

 

 

 

 

 

 

 

 

Loans, including fees

$

76,269

 

$

76,172

 

 

$

74,357

 

 

$

70,349

 

 

$

68,057

 

Investment securities

 

11,833

 

 

11,248

 

 

 

10,803

 

 

 

10,614

 

 

 

10,815

 

Accretion of purchase accounting adjustments

 

2,067

 

 

2,627

 

 

 

3,235

 

 

 

4,277

 

 

 

6,533

 

Other interest income

 

858

 

 

1,616

 

 

 

325

 

 

 

441

 

 

 

789

 

Total interest income

 

91,027

 

 

91,663

 

 

 

88,720

 

 

 

85,681

 

 

 

86,194

 

Interest Expense:

 

 

 

 

 

 

 

 

 

Deposits

 

29,247

 

 

29,182

 

 

 

24,489

 

 

 

19,314

 

 

 

14,613

 

Borrowings

 

1,956

 

 

3,022

 

 

 

4,500

 

 

 

3,556

 

 

 

3,264

 

Subordinated debentures

 

1,814

 

 

1,887

 

 

 

1,807

 

 

 

1,849

 

 

 

2,138

 

Accretion of purchase accounting adjustments

 

216

 

 

231

 

 

 

259

 

 

 

258

 

 

 

149

 

Total interest expense

 

33,233

 

 

34,322

 

 

 

31,055

 

 

 

24,977

 

 

 

20,164

 

Net interest income

 

57,794

 

 

57,341

 

 

 

57,665

 

 

 

60,704

 

 

 

66,030

 

Provision for credit losses

 

1,650

 

 

 

 

 

1,250

 

 

 

1,000

 

 

 

1,250

 

Net interest income after provision for credit losses

 

56,144

 

 

57,341

 

 

 

56,415

 

 

 

59,704

 

 

 

64,780

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

3,334

 

 

3,367

 

 

 

3,447

 

 

 

3,646

 

 

 

3,425

 

Mortgage Income

 

972

 

 

704

 

 

 

582

 

 

 

878

 

 

 

773

 

Interchange Fee Income

 

4,893

 

 

4,195

 

 

 

4,593

 

 

 

5,280

 

 

 

4,543

 

Gain (Loss) on securities, net

 

14

 

 

(48

)

 

 

(9,670

)

 

 

2

 

 

 

(48

)

Treasury Awards

 

 

 

 

 

 

 

 

 

6,197

 

 

 

 

Loss on sale of premises and equipment

 

163

 

 

 

 

 

(524

)

 

 

(104

)

 

 

 

Other charges and fees

 

3,943

 

 

4,461

 

 

 

3,918

 

 

 

3,425

 

 

 

3,730

 

Total non-interest income

 

13,319

 

 

12,679

 

 

 

2,346

 

 

 

19,324

 

 

 

12,423

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

25,045

 

 

24,508

 

 

 

23,717

 

 

 

22,807

 

 

 

23,315

 

Occupancy expense

 

5,490

 

 

5,714

 

 

 

5,688

 

 

 

5,343

 

 

 

5,041

 

FDIC/OCC premiums

 

1,020

 

 

1,008

 

 

 

1,263

 

 

 

1,158

 

 

 

758

 

Marketing

 

59

 

 

139

 

 

 

71

 

 

 

559

 

 

 

45

 

Amortization of core deposit intangibles

 

2,385

 

 

2,385

 

 

 

2,385

 

 

 

2,385

 

 

 

2,391

 

Other professional services

 

2,028

 

 

1,833

 

 

 

2,309

 

 

 

1,499

 

 

 

1,570

 

Acquisition and charter conversion charges

 

352

 

 

8

 

 

 

593

 

 

 

588

 

 

 

4,101

 

Other non-interest expense

 

7,710

 

 

7,830

 

 

 

8,407

 

 

 

13,385

 

 

 

9,678

 

Total non-interest expense

 

44,089

 

 

43,425

 

 

 

44,433

 

 

 

47,724

 

 

 

46,899

 

Earnings before income taxes

 

25,374

 

 

26,595

 

 

 

14,328

 

 

 

31,304

 

 

 

30,304

 

Income tax expense

 

5,677

 

 

5,967

 

 

 

3,281

 

 

 

6,944

 

 

 

6,525

 

Net income available to common shareholders

$

19,697

 

$

20,628

 

 

$

11,047

 

 

$

24,360

 

 

$

23,779

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.62

 

$

0.65

 

 

$

0.35

 

 

$

0.77

 

 

$

0.75

 

Diluted earnings per common share, operating*

$

0.63

 

$

0.65

 

 

$

0.59

 

 

$

0.76

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

*See reconciliation of non-GAAP financial measures

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Year to Date

 

2024

 

 

 

2023

 

Interest Income:

 

 

 

Loans, including fees

$

152,440

 

 

$

132,113

 

PPP loan fee income

 

1

 

 

 

209

 

Investment securities

 

23,081

 

 

 

22,522

 

Accretion of purchase accounting adjustments

 

4,694

 

 

 

10,002

 

Other interest income

 

2,474

 

 

 

1,686

 

Total interest income

 

182,690

 

 

 

166,532

 

Interest Expense:

 

 

 

Deposits

 

58,429

 

 

 

26,796

 

Borrowings

 

4,978

 

 

 

4,223

 

Subordinated debentures

 

3,701

 

 

 

4,314

 

Amortization of purchase accounting adjustments

 

447

 

 

 

243

 

Total interest expense

 

67,555

 

 

 

35,576

 

Net interest income

 

115,135

 

 

 

130,956

 

Provision for credit losses

 

1,650

 

 

 

12,250

 

Net interest income after provision for credit losses

 

113,485

 

 

 

118,706

 

 

 

 

 

Non-interest Income:

 

 

 

Service charges on deposit accounts

 

6,701

 

 

 

7,082

 

Mortgage Income

 

1,676

 

 

 

1,406

 

Interchange Fee Income

 

9,088

 

 

 

9,041

 

Gain (loss) on securities, net

 

(34

)

 

 

(48

)

Bargain Purchase Gain and gain on sale of premises and equipment

 

163

 

 

 

 

Other charges and fees

 

8,404

 

 

 

7,554

 

Total non-interest income

 

25,998

 

 

 

25,035

 

 

 

 

 

Non-interest expense:

 

 

 

Salaries and employee benefits

 

49,553

 

 

 

46,888

 

Occupancy expense

 

11,204

 

 

 

10,337

 

FDIC/OCC premiums

 

2,028

 

 

 

1,428

 

Marketing

 

198

 

 

 

203

 

Amortization of core deposit intangibles

 

4,770

 

 

 

4,793

 

Other professional services

 

3,861

 

 

 

2,638

 

Acquisition & charter conversion charges

 

360

 

 

 

7,894

 

Other non-interest expense

 

15,540

 

 

 

18,388

 

Total non-interest expense

 

87,514

 

 

 

92,569

 

Earnings before income taxes

 

51,969

 

 

 

51,172

 

Income tax expense

 

11,644

 

 

 

11,122

 

Net income available to common shareholders

 

40,325

 

 

 

40,050

 

 

 

 

 

Diluted earnings per common share

$

1.27

 

 

$

1.27

 

Diluted earnings per common share, operating*

$

1.28

 

 

$

1.71

 

*See reconciliation of non-GAAP financial measures

 

 

 

 

THE FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF LOANS

 

June 30,

2024

 

Percent

of Total

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

Percent

of Total

Commercial, financial and agricultural

 

$

710,808

 

 

13.5

%

 

$

737,511

 

 

$

765,422

 

 

$

753,120

 

 

$

753,415

 

 

15.0

%

Real estate – construction

 

 

639,931

 

 

12.2

%

 

 

633,804

 

 

 

629,660

 

 

 

633,682

 

 

 

634,120

 

 

12.6

%

Real estate – commercial

 

 

2,435,853

 

 

46.4

%

 

 

2,356,552

 

 

 

2,377,864

 

 

 

2,317,666

 

 

 

2,251,710

 

 

44.9

%

Real estate – residential

 

 

1,387,102

 

 

26.4

%

 

 

1,330,589

 

 

 

1,311,395

 

 

 

1,298,980

 

 

 

1,286,343

 

 

25.6

%

Lease Financing Receivable

 

 

1,749

 

 

%

 

 

1,794

 

 

 

1,292

 

 

 

1,548

 

 

 

1,187

 

 

%

Obligations of States & subdivisions

 

 

27,286

 

 

0.5

%

 

 

28,541

 

 

 

29,316

 

 

 

29,650

 

 

 

31,137

 

 

0.6

%

Consumer

 

 

48,164

 

 

0.9

%

 

 

51,161

 

 

 

55,094

 

 

 

55,154

 

 

 

53,013

 

 

1.1

%

Loans held for sale

 

 

5,892

 

 

0.1

%

 

 

4,241

 

 

 

2,914

 

 

 

5,960

 

 

 

6,602

 

 

0.1

%

Total loans

 

$

5,256,785

 

 

100

%

 

$

5,144,193

 

 

$

5,172,957

 

 

$

5,095,760

 

 

$

5,017,527

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPOSITION OF DEPOSITS

 

June 30,

2024

 

Percent

of Total

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

Percent

of Total

Non-interest bearing

 

$

1,870,305

 

 

28.2

%

 

$

1,836,952

 

 

$

1,849,013

 

 

$

1,967,661

 

 

$

2,086,666

 

 

32.1

%

NOW and other

 

 

2,075,566

 

 

31.4

%

 

 

2,135,343

 

 

 

1,914,792

 

 

 

1,962,383

 

 

 

2,014,420

 

 

31.0

%

Money Market/Savings

 

 

1,573,194

 

 

23.7

%

 

 

1,656,688

 

 

 

1,623,311

 

 

 

1,532,822

 

 

 

1,565,212

 

 

24.1

%

Time Deposits of less than $250,000

 

 

825,460

 

 

12.5

%

 

 

816,153

 

 

 

813,877

 

 

 

766,553

 

 

 

627,782

 

 

9.7

%

Time Deposits of $250,000 or more

 

 

281,591

 

 

4.2

%

 

 

265,219

 

 

 

261,879

 

 

 

250,606

 

 

 

198,187

 

 

3.1

%

Total Deposits

 

$

6,626,116

 

 

100

%

 

$

6,710,355

 

 

$

6,462,872

 

 

$

6,480,025

 

 

$

6,492,267

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

 

June 30,

2024

 

 

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

 

Nonaccrual loans

 

$

13,553

 

 

 

 

$

10,961

 

 

$

10,691

 

 

$

17,423

 

 

$

16,037

 

 

 

Loans past due 90 days and over

 

 

1,174

 

 

 

 

 

687

 

 

 

1,163

 

 

 

53

 

 

 

 

 

 

Total nonperforming loans

 

 

14,727

 

 

 

 

 

11,648

 

 

 

11,854

 

 

 

17,476

 

 

 

16,037

 

 

 

Other real estate owned

 

 

6,356

 

 

 

 

 

6,743

 

 

 

8,320

 

 

 

4,920

 

 

 

5,588

 

 

 

Total nonperforming assets

 

$

21,083

 

 

 

 

$

18,391

 

 

$

20,174

 

 

$

22,396

 

 

$

21,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.26

%

 

 

 

 

0.23

%

 

 

0.25

%

 

 

0.28

%

 

 

0.28

%

 

 

Nonperforming assets to total loans + OREO

 

 

0.40

%

 

 

 

 

0.36

%

 

 

0.39

%

 

 

0.44

%

 

 

0.43

%

 

 

ACL to nonperforming loans

 

 

374.37

%

 

 

 

 

463.25

%

 

 

455.81

%

 

 

306.51

%

 

 

328.08

%

 

 

ACL to total loans

 

 

1.05

%

 

 

 

 

1.05

%

 

 

1.05

%

 

 

1.05

%

 

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Qtr-to-date net charge-offs (recoveries)

 

$

476

 

 

 

 

$

73

 

 

$

783

 

 

$

49

 

 

$

837

 

 

 

Annualized QTD net chg-offs (recs) to loans

 

 

0.036

%

 

 

 

 

0.006

%

 

 

0.061

%

 

 

0.004

%

 

 

0.070

%

 

 

 

THE 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, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

 

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

$

1,328,780

$

8,868

2.67

%

 

$

1,342,644

$

8,303

2.47

%

 

$

1,375,695

$

7,892

2.29

%

 

$

1,419,343

$

7,685

2.17

%

 

$

1,473,166

$

7,867

2.14

%

Tax-exempt securities

 

458,752

 

3,968

3.46

%

 

 

468,432

 

3,944

3.37

%

 

 

446,348

 

3,897

3.49

%

 

 

463,329

 

3,921

3.39

%

 

 

470,742

 

3,946

3.35

%

Total investment securities

 

1,787,532

 

12,836

2.87

%

 

 

1,811,076

 

12,247

2.70

%

 

 

1,822,043

 

11,789

2.59

%

 

 

1,882,672

 

11,606

2.47

%

 

 

1,943,908

 

11,813

2.43

%

Int bearing dep in other banks

 

99,290

 

858

3.46

%

 

 

189,785

 

1,616

3.41

%

 

 

70,193

 

325

1.85

%

 

 

79,448

 

441

2.22

%

 

 

93,464

 

789

3.38

%

Loans

 

5,202,006

 

78,336

6.02

%

 

 

5,158,071

 

78,798

6.11

%

 

 

5,145,228

 

77,592

6.03

%

 

 

5,038,928

 

74,626

5.92

%

 

 

4,982,368

 

74,590

5.99

%

Total interest earning assets

 

7,088,828

 

92,030

5.19

%

 

 

7,158,932

 

92,661

5.18

%

 

 

7,037,464

 

89,706

5.10

%

 

 

7,001,048

 

86,673

4.95

%

 

 

7,019,740

 

87,192

4.97

%

Other assets

 

850,955

 

 

 

 

846,642

 

 

 

 

879,839

 

 

 

 

872,297

 

 

 

 

862,390

 

 

Total assets

$

7,939,783

 

 

 

$

8,005,574

 

 

 

$

7,917,303

 

 

 

$

7,873,345

 

 

 

$

7,882,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

4,795,120

$

29,463

2.46

%

 

$

4,803,277

$

29,412

2.45

%

 

$

4,533,386

$

24,748

2.18

%

 

$

4,459,869

$

19,572

1.76

%

 

$

4,465,800

$

14,762

1.32

%

Borrowed Funds

 

157,045

 

1,956

4.98

%

 

 

254,505

 

3,023

4.75

%

 

 

361,445

 

4,500

4.98

%

 

 

296,963

 

3,556

4.79

%

 

 

277,531

 

3,264

4.70

%

Subordinated debentures

 

123,510

 

1,814

5.87

%

 

 

123,424

 

1,887

6.12

%

 

 

126,925

 

1,807

5.69

%

 

 

128,251

 

1,849

5.77

%

 

 

145,418

 

2,138

5.88

%

Total interest bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

liabilities

 

5,075,675

 

33,233

2.62

%

 

 

5,181,206

 

34,322

2.65

%

 

 

5,021,756

 

31,055

2.47

%

 

 

4,885,083

 

24,977

2.05

%

 

 

4,888,749

 

20,164

1.65

%

Other liabilities

 

1,900,663

 

 

 

 

1,871,660

 

 

 

 

1,994,017

 

 

 

 

2,083,192

 

 

 

 

2,091,882

 

 

Shareholders' equity

 

963,445

 

 

 

 

952,708

 

 

 

 

901,530

 

 

 

 

905,070

 

 

 

 

901,499

 

 

Total liabilities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

shareholders' equity

$

7,939,783

 

 

 

$

8,005,574

 

 

 

$

7,917,303

 

 

 

$

7,873,345

 

 

 

$

7,882,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (FTE)*

 

$

58,797

2.57

%

 

 

$

58,339

2.53

%

 

 

$

58,651

2.63

%

 

 

$

61,696

2.91

%

 

 

$

67,028

3.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)*

 

 

3.32

%

 

 

 

3.26

%

 

 

 

3.33

%

 

 

 

3.52

%

 

 

 

3.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core net interest margin*

 

 

3.19

%

 

 

 

3.10

%

 

 

 

3.14

%

 

 

 

3.27

%

 

 

 

3.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*See reconciliation for non-GAAP financial measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE 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

June 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sept 30, 2023

 

June 30, 2023

Book value per common share

$

30.83

 

$

30.45

 

 

$

30.22

 

 

$

28.57

 

 

$

28.64

 

Effect of intangible assets per share

 

10.68

 

 

10.75

 

 

 

10.87

 

 

 

10.95

 

 

 

11.02

 

Tangible book value per common share

$

20.15

 

$

19.70

 

 

$

19.35

 

 

$

17.62

 

 

$

17.62

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.62

 

$

0.65

 

 

$

0.35

 

 

$

0.77

 

 

$

0.75

 

Effect of acquisition and charter conversion charges

 

0.01

 

 

 

 

 

0.02

 

 

 

0.02

 

 

 

0.13

 

Tax on acquisition and charter conversion charges

 

 

 

 

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.03

)

Effect of Treasury awards

 

 

 

 

 

 

 

 

 

(0.20

)

 

 

 

Tax on Treasury awards

 

 

 

 

 

 

 

 

 

0.05

 

 

 

 

Effect on contributions/consulting/advertising related to Treasury awards

 

 

 

 

 

 

 

 

 

0.17

 

 

 

 

Tax on contributions/consulting/advertising related to Treasury awards

 

 

 

 

 

 

 

 

 

(0.04

)

 

 

 

Loss on securities repositioning

 

 

 

 

 

 

0.31

 

 

 

 

 

 

 

Tax loss on securities repositioning

 

 

 

 

 

 

(0.08

)

 

 

 

 

 

 

Diluted earnings per share, operating

$

0.63

 

$

0.65

 

 

$

0.59

 

 

$

0.76

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

 

 

 

2024

 

 

 

 

 

2023

 

 

 

Diluted earnings per share

 

 

$

1.27

 

 

 

 

$

1.27

 

 

 

Effect of acquisition and charter conversion charges

 

 

 

0.01

 

 

 

 

 

0.25

 

 

 

Tax on acquisition and charter conversion charges

 

 

 

 

 

 

 

 

(0.06

)

 

 

Initial provision for acquired loans

 

 

 

 

 

 

 

 

0.34

 

 

 

Tax on initial provision for acquired loans

 

 

 

 

 

 

 

 

(0.09

)

 

 

Diluted earnings per share, operating

 

 

$

1.28

 

 

 

 

$

1.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

 

 

 

2024

 

 

 

 

 

2023

 

 

 

Net income available to common shareholders

 

 

$

40,325

 

 

 

 

$

40,050

 

 

 

Acquisition and charter conversion charges

 

 

 

360

 

 

 

 

 

7,894

 

 

 

Tax on acquisition and charter conversion charges

 

 

 

(91

)

 

 

 

 

(1,997

)

 

 

Initial provision for acquired loans

 

 

 

 

 

 

 

 

10,727

 

 

 

Tax on initial provision for acquired loans

 

 

 

 

 

 

 

 

(2,714

)

 

 

Net earnings available to common shareholders, operating

 

 

$

40,594

 

 

 

 

$

53,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Average Balance Sheet Data

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Total average assets

A

$

7,939,783

 

$

8,005,574

 

$

7,917,303

 

$

7,873,345

 

$

7,882,130

 

Total average earning assets

B

$

7,088,828

 

$

7,158,932

 

$

7,037,464

 

$

7,001,048

 

$

7,019,740

 

 

 

 

 

 

 

 

Common Equity

C

$

963,445

 

$

952,708

 

$

901,530

 

$

905,070

 

$

901,499

 

Less intangible assets

 

 

337,859

 

 

340,238

 

 

342,641

 

 

344,999

 

 

346,707

 

Total Tangible common equity

D

$

625,586

 

$

612,470

 

$

558,889

 

$

560,071

 

$

554,792

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Net Interest Income Fully Tax Equivalent

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Net interest income

E

$

57,794

 

$

57,341

 

$

57,665

 

$

60,704

 

$

66,030

 

Tax-exempt investment income

 

 

(2,965

)

 

(2,946

)

 

(2,911

)

 

(2,929

)

 

(2,948

)

Taxable investment income

 

 

3,968

 

 

3,944

 

 

3,897

 

 

3,921

 

 

3,946

 

Net Interest Income Fully Tax Equivalent

F

$

58,797

 

$

58,339

 

$

58,651

 

$

61,696

 

$

67,028

 

 

 

 

 

 

 

 

Annualized Net Interest Margin

E/B

 

3.26

%

 

3.20

%

 

3.28

%

 

3.47

%

 

3.76

%

Annualized Net Interest Margin, Fully Tax Equivalent

F/B

 

3.32

%

 

3.26

%

 

3.33

%

 

3.52

%

 

3.82

%

 

 

 

 

 

 

 

Total Interest Income, Fully Tax Equivalent

 

 

 

 

 

 

Total Interest Income

R

$

91,027

 

$

91,663

 

$

88,720

 

$

85,681

 

$

86,194

 

Tax-exempt investment income

 

 

(2,965

)

 

(2,946

)

 

(2,911

)

 

(2,929

)

 

(2,948

)

Taxable investment income

 

 

3,968

 

 

3,944

 

 

3,897

 

 

3,921

 

 

3,946

 

Total Interest Income, Fully Tax Equivalent

G

$

92,030

 

$

92,661

 

$

89,706

 

$

86,673

 

$

87,192

 

 

 

 

 

 

 

 

Yield on Average Earning Assets

R/B

 

5.14

%

 

5.12

%

 

5.04

%

 

4.90

%

 

4.91

%

Yield on Average Earning Assets, Fully Tax Equivalent

G/B

 

5.19

%

 

5.18

%

 

5.10

%

 

4.95

%

 

4.97

%

 

 

 

 

 

 

 

Interest Income Investment Securities, Fully Tax Equivalent

 

 

 

 

 

 

Interest Income Investment Securities

S

$

11,833

 

$

11,248

 

$

10,803

 

$

10,614

 

$

10,815

 

Tax-exempt investment income

 

 

(2,965

)

 

(2,946

)

 

(2,911

)

 

(2,929

)

 

(2,948

)

Taxable investment Income

 

 

3,968

 

 

3,944

 

 

3,897

 

 

3,921

 

 

3,946

 

Interest Income Investment Securities, Fully Tax Equivalent

H

$

12,836

 

$

12,246

 

$

11,789

 

$

11,606

 

$

11,813

 

 

 

 

 

 

 

 

Average Investment Securities

I

$

1,787,532

 

$

1,811,076

 

$

1,822,043

 

$

1,882,672

 

$

1,943,908

 

 

 

 

 

 

 

 

Yield on Investment Securities

S/I

 

2.65

%

 

2.48

%

 

2.37

%

 

2.26

%

 

2.23

%

Yield on Investment Securities, Fully Tax Equivalent

H/I

 

2.87

%

 

2.70

%

 

2.59

%

 

2.47

%

 

2.43

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Core Net Interest Margin

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Net interest income (FTE)

 

$

58,797

 

$

58,339

 

$

58,651

 

$

61,696

 

$

67,028

 

Less purchase accounting adjustments

 

 

2,067

 

 

2,627

 

 

3,235

 

 

4,276

 

 

6,533

 

Net interest income, net of purchase accounting adj

J

$

56,730

 

$

55,712

 

$

55,416

 

$

57,420

 

$

60,495

 

 

 

 

 

 

 

 

Total average earning assets

 

$

7,088,828

 

$

7,158,932

 

$

7,037,464

 

$

7,001,048

 

$

7,019,740

 

Add average balance of loan valuation discount

 

 

22,341

 

 

24,675

 

 

27,573

 

 

31,269

 

 

38,306

 

Avg earning assets, excluding loan valuation discount

K

$

7,111,169

 

$

7,183,607

 

$

7,065,037

 

$

7,032,317

 

$

7,058,046

 

 

 

 

 

 

 

 

Core net interest margin

J/K

 

3.19

%

 

3.10

%

 

3.14

%

 

3.27

%

 

3.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Efficiency Ratio

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Operating Expense

 

 

 

 

 

 

Total non-interest expense

 

$

44,089

 

$

43,425

 

$

44,433

 

$

47,724

 

$

46,899

 

Pre-tax non-operating expenses

 

 

(352

)

 

(8

)

 

(594

)

 

(5,777

)

 

(4,101

)

Adjusted Operating Expense

L

$

43,737

 

$

43,417

 

$

43,839

 

$

41,947

 

$

42,798

 

 

 

 

 

 

 

 

Operating Revenue

 

 

 

 

 

 

Net interest income, FTE

 

$

58,797

 

$

58,339

 

$

58,651

 

$

61,696

 

$

67,028

 

Total non-interest income

 

 

13,319

 

 

12,679

 

 

2,346

 

 

19,324

 

 

12,423

 

Pre-tax non-operating items

 

 

 

 

 

 

9,708

 

 

(6,197

)

 

 

Adjusted Operating Revenue

M

$

72,116

 

$

71,018

 

$

70,705

 

$

74,823

 

$

79,451

 

 

 

 

 

 

 

 

Efficiency Ratio, operating

L/M

 

60.65

%

 

61.14

%

 

62.00

%

 

56.06

%

 

53.87

%

 

 

 

 

 

 

 

 

 

Three Months Ended

Return Ratios

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Net income available to common shareholders

N

$

19,697

 

$

20,628

 

$

11,047

 

$

24,360

 

$

23,779

 

Acquisition and charter conversion charges

 

 

352

 

 

8

 

 

593

 

 

588

 

 

4,101

 

Tax on acquisition and charter conversion charges

 

 

(89

)

 

(2

)

 

(150

)

 

(149

)

 

(1,037

)

Treasury awards

 

 

 

 

 

 

 

 

(6,197

)

 

 

Tax on Treasury awards

 

 

 

 

 

 

 

 

1,568

 

 

 

Contributions/consulting/advertising related to Treasury awards

 

 

 

 

 

 

 

 

5,190

 

 

 

Tax on contributions/consulting/advertising related to Treasury awards

 

 

 

 

 

 

 

 

(1,313

)

 

 

Loss on securities repositioning

 

 

 

 

 

 

9,708

 

 

 

 

 

Tax loss on securities repositioning

 

 

 

 

 

 

(2,457

)

 

 

 

 

Net earnings available to common shareholders, operating

O

$

19,960

 

$

20,634

 

$

18,741

 

$

24,047

 

$

26,843

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Pre-Tax Pre-Provision Operating Earnings

 

June 30, 2024

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Earnings before income taxes

P

$

25,374

 

$

26,595

 

$

14,328

 

$

31,304

 

$

30,304

 

Acquisition and charter conversion charges

 

 

352

 

 

8

 

 

593

 

 

588

 

 

4,101

 

Provision for credit losses

 

 

1,650

 

 

 

 

1,250

 

 

1,000

 

 

1,250

 

Treasury awards

 

 

 

 

 

 

 

 

(6,197

)

 

 

Contributions/consulting/advertising related to Treasury awards

 

 

 

 

 

 

 

 

5,190

 

 

 

Loss on securities repositioning

 

 

 

 

 

 

9,708

 

 

 

 

 

Pre-Tax, Pre-Provision Operating Earnings

Q

$

27,376

 

$

26,603

 

$

25,879

 

$

31,885

 

$

35,655

 

 

 

 

 

 

 

 

Annualized return on avg assets

N/A

 

0.99

%

 

1.03

%

 

0.56

%

 

1.24

%

 

1.21

%

Annualized return on avg assets, oper

O/A

 

1.01

%

 

1.03

%

 

0.95

%

 

1.22

%

 

1.36

%

Annualized pre-tax, pre-provision, oper

Q/A

 

1.38

%

 

1.33

%

 

1.31

%

 

1.62

%

 

1.81

%

Annualized return on avg common equity, oper

O/C

 

8.29

%

 

8.66

%

 

8.32

%

 

10.63

%

 

11.91

%

Annualized return on avg tangible common equity, operating

O/D

 

12.76

%

 

13.48

%

 

13.41

%

 

17.17

%

 

19.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Capital Ratios

 

June 30, 2024*

Mar 31, 2024

Dec 31, 2023

Sept 30, 2023

June 30, 2023

Common equity tier 1 (CET1) ratio

 

 

12.4

%

 

12.2

%

 

12.1

%

 

12.0

%

 

11.5

%

Leverage (Tier 1) ratio

 

 

10.0

%

 

9.7

%

 

9.7

%

 

9.6

%

 

9.1

%

Total risk based capital ratio

 

 

15.3

%

 

15.2

%

 

15.0

%

 

15.1

%

 

14.5

%

Tangible common equity ratio

 

 

8.3

%

 

8.1

%

 

7.9

%

 

7.3

%

 

7.4

%

*estimated

 

 

 

 

 

 

 

Contacts

M. Ray “Hoppy” Cole

Chief Executive Officer

Dee Dee Lowery

Chief Financial Officer

(601) 268-8998

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