Attached files
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| 8-K - THE FIRST BANCSHARES, INC. 8-K - FIRST BANCSHARES INC /MS/ | a50797591.htm |
Exhibit 99.1
The First Bancshares, Inc. Reports 2013 Earnings and Declaration of Dividend
HATTIESBURG, Miss.--(BUSINESS WIRE)--February 4, 2014--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported earnings for the fourth quarter and fiscal year ended December 31, 2013. The First Bancshares, Inc. also announced a quarterly dividend of $.0375 per common share. The record date will be February 14, 2014 with a payable date of March 3, 2014.
Net income available to common stockholders for the three months ended December 31, 2013 amounted to $1,392,000, or $0.27 per diluted share, compared to $1,062,000, or $0.34 per diluted share for the same quarter in 2012, an increase of $330,000 or 31.1% in net income available to common stockholders.
Net income available to common stockholders for the year ended December 31, 2013 amounted to $4,215,000, or $0.96 per diluted share, compared to $3,624,000, or $1.16 per diluted share for the same period in 2012, an increase of $591,000 or 16.3% in net income available to common stockholders. Net income available to common stockholders exclusive of one-time items for the twelve months ended December 31, 2013 was $4,878,000, or $1.12 per diluted share, a 35.0% increase in net income available to common stockholders over the same period in 2012.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are pleased with the results of 2013. We were successful in growing our Company, increasing our presence in existing markets and opening up new markets for further expansion. Our growth was both organic and acquisitive as we completed the acquisition of The First National Bank of Baldwin County during the year. Total assets increased 30.4% in 2013 and net income to common shareholders increased 16.3% year over year which included $1,439,000 of one-time pretax charges associated with the acquisition. We are excited about the opportunities throughout our footprint, which we believe will continue to create value for our shareholders.”
Balance Sheet Highlights
Total assets for the Company totaled $940.9 million at December 31, 2013, a decrease of $11.0 million compared with September 30, 2013. The decrease during the fourth quarter of 2013 was attributable to a decline in the Company’s deposit balances associated with seasonal fluctuations and a reduction in high cost funds acquired through acquisition.
December 31, 2013 loans outstanding increased by $10.8 million, or approximately 8% on an annualized basis, compared with September 30, 2013, and increased $169.6 million, or 41.0%, compared to December 31, 2012 total loans outstanding. Loans of $124.2 million were acquired from First National Bank of Baldwin County on April 30, 2013. The remaining increase in loans of $45.4 million was broad based across all categories and throughout the Company’s market area.
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End of Period Loan Balances |
12/31/13 | 09/30/13 | 12/31/12 | ||||||||||
| (dollars in thousands) | |||||||||||||
| Loans held for sale | $ | 3,680 | $ | 1,399 | $ | 5,585 | |||||||
| Commercial | 81,792 | 79,094 | 53,234 | ||||||||||
| Real Estate: | |||||||||||||
| Mortgage-commercial | 212,388 | 198,123 | 142,046 | ||||||||||
| Mortgage-residential | 202,343 | 211,494 | 140,703 | ||||||||||
| Construction | 67,287 | 66,745 | 57,529 | ||||||||||
| Consumer and other | 15,813 | 15,658 | 14,600 | ||||||||||
| $ | 583,303 | $ | 572,513 | $ | 413,697 | ||||||||
Non-performing assets totaled $10.3 million at December 31, 2013 compared to $10.4 million of non-performing assets at September 30, 2013 and $12.5 million at December 31, 2012. Non-performing assets represented 1.09% of total assets at December 31, 2013 compared to 1.09% of total assets at September 30, 2013, and compared to 1.73% at December 31, 2012. Non-performing loans totaled $3.3 million at December 31, 2013 compared to $3.2 million at September 30, 2013 and compared to $3.7 million of non-performing loans at December 31, 2012. Non-performing loans represented 0.57% of total loans at December 31, 2013 compared with 0.55% of total outstanding loans at September 30, 2013 and 0.91% of total loans outstanding at December 31, 2012.
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Non-Performing Assets |
12/31/13 | 09/30/13 | 12/31/12 | ||||||||||
| (dollars in thousands) | |||||||||||||
| Non-Accrual Loans | $ | 3,181 | $ | 2,681 | $ | 3,589 | |||||||
| Past Due Loans (90 days or more) | 159 | 471 | 158 | ||||||||||
| Total Non-Performing Loans | 3,340 | 3,152 | 3,747 | ||||||||||
| Non-Accrual Securities | 1,950 | 1,950 | 1,950 | ||||||||||
| Other Real Estate | 5,010 | 5,292 | 6,782 | ||||||||||
| Total Non-Performing Assets | $ | 10,300 | $ | 10,394 | $ | 12,479 | |||||||
The Company’s allowance for loan losses totaled $5.7 million at December 31, 2013 representing an increase of $56,000, or 3.9% on an annualized basis, from September 30, 2013 and an increase of $1,001,000, or 21.2%, from December 31, 2012. The allowance for loan losses represented 0.98% of period-end loans at December 31, 2013 compared with 0.99% of period-end loans at September 30, 2013 and 1.14% of period-end loans at December 31, 2012. Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller. The allowance for loan losses represented 1.21% of period end loans excluding those booked at fair value at December 31, 2013 compared with 1.26% at September 30, 2013 and 1.20% at December 31, 2012.
Total deposits decreased $34.0 million or 16.7% on an annualized basis, as of December 31, 2013 compared with September 30, 2013 total deposits and increased by approximately $183.3 million or 30.7% compared with December 31, 2012. Deposits of $185.8 million were acquired from First National Bank of Baldwin County on April 30, 2013.
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End of Period Deposit Balances |
12/31/13 | 09/30/13 | 12/31/12 | ||||||||||
| (dollars in thousands) | |||||||||||||
| Non-interest-bearing Demand Deposits | $ | 173,794 | $ | 169,001 | $ | 109,624 | |||||||
| IB Demand, Savings, and MMDA Accounts | 403,190 | 434,449 | 326,067 | ||||||||||
| Time Deposits < $100,000 | 85,880 | 88,907 | 69,115 | ||||||||||
| Time Deposits > $100,000 | 117,107 | 121,608 | 91,821 | ||||||||||
| $ | 779,971 | $ | 813,965 | $ | 596,627 | ||||||||
Results of Operations Highlights – Quarter ended September 30, 2013
Net income available to common stockholders for the quarter ended December 31, 2013 totaled $1,392,000 or $0.27 per diluted share, an increase of $330,000 or 31.1% from the fourth quarter of 2012 net income available to common stockholders of $1,062,000 or $0.34 per diluted share.
During the quarter ended December 31, 2013, net interest income totaled $7,766,000 representing an increase of $1,996,000, or 34.6%, compared with the quarter ended December 31, 2012 net interest income of $5,770,000. The tax equivalent net interest margin for the quarter ended December 31, 2013 was 3.76% compared to 3.73% in the fourth quarter of 2012. The increase in net interest income and the net interest margin during the quarter ended December 31, 2013 compared with the fourth quarter of 2012 was attributable primarily to increased average loans outstanding.
Fair value accounting adjustments on acquired assets and liabilities contributed approximately 11 basis points on an annualized basis to the net interest margin in the fourth quarter of 2013 and 5 basis points in the fourth quarter of 2012.
During the quarter ended December 31, 2013, non-interest income totaled $1,671,000, an increase of $79,000 or 4.9%, compared with the quarter ended September 30, 2013, and a decrease of $150,000, or 8.2%, compared with the fourth quarter of 2012. The decrease for the quarter ended December 31, 2013 is attributed to a $443,000, or 57.3% decline in mortgage income as compared to the quarter ended December 31, 2012.
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Quarter |
Quarter |
Quarter |
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Non-interest Income |
12/31/13 | 09/30/13 | 12/31/12 | ||||||||||
| (dollars in thousands) | |||||||||||||
| Service Charges on Deposit Accounts | $ | 617 | $ | 649 | $ | 515 | |||||||
| Mortgage Income | 330 | 454 | 773 | ||||||||||
| Interchange Fee Income | 479 | 472 | 381 | ||||||||||
| Other Operating Income | 245 | 17 | 152 | ||||||||||
| Total Non-interest Income | $ | 1,671 | $ | 1,592 | $ | 1,821 | |||||||
During the quarter ended December 31, 2013, non-interest expense totaled $7,308,000, a decrease of $322,000, or 4.2%, compared with the quarter ended September 30, 2013, and an increase of $1,517,000, or 26.2%, compared with the fourth quarter of 2012.
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Quarter |
Quarter |
Quarter |
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Non-interest Expense |
12/31/13 | 09/30/13 | 12/31/12 | ||||||||||
| (dollars in thousands) | |||||||||||||
| Salaries and Employee Benefits | $ | 3,932 | $ | 4,010 | $ | 2,992 | |||||||
| Occupancy, Furniture and Equipment Expense | 1,057 | 802 | 830 | ||||||||||
| FDIC Premiums | 231 | 181 | 182 | ||||||||||
| Professional Fees | 375 | 618 | 291 | ||||||||||
| Advertising and Promotion | 160 | 98 | 111 | ||||||||||
| Intangible Amortization | 94 | 94 | 77 | ||||||||||
| Other Operating Expenses | 1,459 | 1,827 | 1,308 | ||||||||||
| Total Non-interest Expense | $ | 7,308 | $ | 7,630 | $ | 5,791 | |||||||
Total non-interest expense increases are primarily related to increases in operating costs associated with the acquisition of First National Bank of Baldwin County on April 30, 2013. One-time acquisition costs expensed during the fourth quarter of 2013 amounted to $30,000 and one-time acquisition costs expensed during 2013 amounted to $1,439,000.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in south Mississippi, Louisiana and south Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Forward Looking Statement
This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.
| THE FIRST BANCSHARES, INC. | ||||||||||||||||
| (unaudited, dollars in thousands except per shares data) | ||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||
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Dec 31, |
Sept 30, |
Dec 31, |
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| ASSETS | ||||||||||||||||
| Cash and Due from Banks | $ | 24,080 | $ | 26,110 | $ | 20,225 | ||||||||||
| Federal funds sold | 967 | 1,328 | 1,064 | |||||||||||||
| Interest-bearing deposits with banks | 14,205 | 24,326 | 9,588 | |||||||||||||
| Investment Securities | 258,023 | 264,883 | 226,301 | |||||||||||||
| Loans held for sale | 3,680 | 1,399 | 5,585 | |||||||||||||
| Loans, Net of Unearned Income | 579,623 | 571,114 | 408,112 | |||||||||||||
| Allowance for Loan Losses | (5,728 | ) | (5,672 | ) | (4,727 | ) | ||||||||||
| Net Loans | 573,895 | 565,442 | 403,385 | |||||||||||||
| Premises and Equipment | 31,532 | 32,551 | 22,243 | |||||||||||||
| Other Real Estate Owned | 5,010 | 5,292 | 6,782 | |||||||||||||
| Goodwill | 10,621 | 10,621 | 9,362 | |||||||||||||
| Other Assets | 18,877 | 19,943 | 16,850 | |||||||||||||
| TOTAL ASSETS | $ | 940,890 | $ | 951,895 | $ | 721,385 | ||||||||||
| LIABILITIES | ||||||||||||||||
| Non-interest-bearing Demand Deposits | $ | 173,794 | $ | 169,001 | $ | 109,625 | ||||||||||
| Interest-bearing Accounts | 403,190 | 434,449 | 326,066 | |||||||||||||
| Time Deposits | 202,987 | 210,515 | 160,936 | |||||||||||||
| Total Deposits | 779,971 | 813,965 | 596,627 | |||||||||||||
| Borrowings | 52,000 | 30,000 | 36,771 | |||||||||||||
| Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||||||
| Other Liabilities | 13,501 | 13,860 | 11,792 | |||||||||||||
| TOTAL LIABILITIES | 855,782 | 868,135 | 655,500 | |||||||||||||
| STOCKHOLDER’S EQUITY | ||||||||||||||||
| Preferred Stock | 17,103 | 17,082 | 17,021 | |||||||||||||
| Common Stock | 5,123 | 5,134 | 3,134 | |||||||||||||
| Surplus | 42,086 | 41,994 | 23,711 | |||||||||||||
| Retained Earnings | 22,509 | 21,305 | 19,951 | |||||||||||||
| Accumulated Other Comprehensive Income (Loss) | (1,249 | ) | (1,291 | ) | 2,533 | |||||||||||
| Treasury Stock | (464 | ) | (464 | ) | (464 | ) | ||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 85,108 | 83,760 | 65,885 | |||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 940,890 | $ | 951,895 | $ | 721,385 | ||||||||||
| END OF PERIOD SHARES OUTSTANDING | 5,096,447 | 5,107,131 | 3,107,102 | |||||||||||||
| TANGIBLE BOOK VALUE PER SHARE | $ | 10.73 | $ | 10.43 | $ | 11.96 | ||||||||||
| THE FIRST BANCSHARES, INC. | |||||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||
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Three Months |
Twelve Months |
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Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
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| INTEREST INCOME | |||||||||||||||||
| Interest and Fees on Loans | $ | 6,971 | $ | 5,401 | $ | 25,736 | $ | 21,412 | |||||||||
| Interest and Dividends on Securities | 1,430 | 1,187 | 5,502 | 4,868 | |||||||||||||
| Interest on Fed Funds Sold | 10 | 9 | 80 | 51 | |||||||||||||
| TOTAL INTEREST INCOME | 8,411 | 6,597 | 31,318 | 26,331 | |||||||||||||
| INTEREST EXPENSE | |||||||||||||||||
| Interest on Deposits | 476 | 627 | 2,300 | 3,067 | |||||||||||||
| Interest on Borrowings | 169 | 200 | 617 | 1,070 | |||||||||||||
| TOTAL INTEREST EXPENSE | 645 | 827 | 2,917 | 4,137 | |||||||||||||
| NET INTEREST INCOME | 7,766 | 5,770 | 28,401 | 22,194 | |||||||||||||
| Provision for Loan Losses | 59 | 484 | 1,079 | 1,228 | |||||||||||||
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
7,707 | 5,286 | 27,322 | 20,966 | |||||||||||||
| NON-INTEREST INCOME | 1,671 | 1,821 | 7,083 | 6,324 | |||||||||||||
| NON-INTEREST EXPENSE | 7,308 | 5,791 | 28,162 | 22,164 | |||||||||||||
| Income before Income Taxes | 2,070 | 1,316 | 6,243 | 5,126 | |||||||||||||
| Income Taxes | 572 | 148 | 1,604 | 1,078 | |||||||||||||
| NET INCOME | 1,498 | 1,168 | 4,639 | 4,048 | |||||||||||||
| Preferred Stock Accretion & Dividends | 106 | 106 | 424 | 424 | |||||||||||||
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NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ | 1,392 | $ | 1,062 | $ | 4,215 | $ | 3,624 | |||||||||
| BASIC EARNINGS PER SHARE | $ | 0.27 | $ | 0.34 | $ | 0.98 | $ | 1.17 | |||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.27 | $ | 0.34 | $ | 0.96 | $ | 1.16 | |||||||||
| WEIGHTED AVG SHARES OUTSTANDING | 5,102,644 | 3,108,573 | 4,319,485 | 3,101,411 | |||||||||||||
| DILUTED WEIGHTED AVG SHS OUTSTANDING | 5,156,089 | 3,132,429 | 4,372,930 | 3,125,267 | |||||||||||||
| THE FIRST BANCSHARES, INC. | |||||||||||||||||||||
| (unaudited, dollars in thousands except per share data) | |||||||||||||||||||||
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Three Months |
Twelve Months |
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Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
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| EARNINGS PERFORMANCE RATIOS | |||||||||||||||||||||
| Annualized Return on Average Assets | 0.59 | % | 0.58 | % | 0.45 | % | 0.51 | % | |||||||||||||
| Annualized Return on Average Assets(1) | 0.60 | % | 0.58 | % | 0.52 | % | 0.51 | % | |||||||||||||
| Annualized Return on Average Equity | 6.73 | % | 6.47 | % | 4.95 | % | 5.77 | % | |||||||||||||
| Annualized Return on Average Equity(1) | 6.84 | % | 6.47 | % | 5.73 | % | 5.77 | % | |||||||||||||
| Net Interest Margin | 3.76 | % | 3.73 | % | 3.44 | % | 3.63 | % | |||||||||||||
| Efficiency Ratio(2) | 75.18 | % | 73.72 | % | 76.98 | % | 74.96 | % | |||||||||||||
| Efficiency Ratio(1)(2) | 74.87 | % | 73.72 | % | 73.88 | % | 74.96 | % | |||||||||||||
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Net Overhead Expense to Average Earning Assets(3) |
2.63 | % | 2.45 | % | 2.46 | % | 2.47 | % | |||||||||||||
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Net Overhead Expense to Average Earning Assets(1)(3) |
2.62 | % | 2.45 | % | 2.34 | % | 2.47 | % | |||||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||
| Annualized Net Charge-offs to Average Loans | 0.00 | % | 0.16 | % | 0.01 | % | 0.26 | % | |||||||||||||
| Allowance for Loan Losses to Period End Loans | 0.98 | % | 1.14 | % | |||||||||||||||||
| Non-performing Assets to Period End Assets | 1.09 | % | 1.73 | % | |||||||||||||||||
| Non-performing Loans to Period End Loans | 0.57 | % | 0.91 | % | |||||||||||||||||
| Loans 30-89 Days Past Due to Period End Loans | 0.95 | % | 1.12 | % | |||||||||||||||||
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SELECTED BALANCE SHEET & OTHER FINANCIAL DATA |
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| Average Assets | $ | 937,584 | $ | 729,524 | $ | 941,742 | $ | 714,953 | |||||||||||||
| Average Earning Assets | $ | 857,034 | $ | 647,904 | $ | 857,405 | $ | 640,898 | |||||||||||||
| Average Total Loans | $ | 575,310 | $ | 405,008 | $ | 583,200 | $ | 388,097 | |||||||||||||
| Average Demand Deposits | $ | 121,835 | $ | 75,398 | $ | 116,289 | $ | 73,584 | |||||||||||||
| Average Interest Bearing Liabilities | $ | 720,668 | $ | 579,326 | $ | 728,322 | $ | 572,351 | |||||||||||||
| Average Equity | $ | 82,727 | $ | 65,629 | $ | 85,081 | $ | 62,778 | |||||||||||||
| Period End Non-performing Assets | $ | 10,300 | $ | 12,479 | |||||||||||||||||
| Period End Non-performing Loans | $ | 3,340 | $ | 3,747 | |||||||||||||||||
| Period End Loans 30-89 Days Past Due | $ | 5,553 | $ | 4,644 | |||||||||||||||||
| Tax Equivalent Net Interest Income | $ | 8,050 | $ | 6,034 | $ | 29,502 | $ | 23,245 | |||||||||||||
| Net Charge-offs during Period | $ | 0 | $ | 157 | $ | 75 | $ | 1,012 | |||||||||||||
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(1) Excludes merger related costs and one-time items |
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(2) Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-Interest Income |
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(3) Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest income |
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CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole,
601-268-8998
Chief Executive Officer
or
Dee Dee Lowery,
601-268-8998
Chief Financial Officer