Attached files
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| 8-K - THE FIRST BANCSHARES, INC. 8-K - FIRST BANCSHARES INC /MS/ | a50851062.htm |
| EX-99.2 - EXHIBIT 99.2 - FIRST BANCSHARES INC /MS/ | a50851062_ex992.htm |
Exhibit 99.1
The First Bancshares, Inc. Reports 1st Quarter 2014 Earnings and Declaration of Dividend
HATTIESBURG, Miss.--(BUSINESS WIRE)--April 24, 2014--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported earnings for the first quarter ended March 31, 2014. The First Bancshares, Inc. also announced a quarterly dividend of $.0375 per common share. The record date will be May 6, 2014 with a payable date of May 20, 2014.
Net income available to common stockholders for the three months ended March 31, 2014 amounted to $1,321,000, or $0.25 per diluted share, compared to $1,119,000, or $0.35 per diluted share for the same quarter in 2013, an increase of $202,000 or 18.1% in net income available to common stockholders with a decrease of $0.10 per diluted share due to an increase in average common shares outstanding associated with the capital raise in 2013.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “First Quarter results were improved year over year with significant increases in loan and deposit volumes and an 18% increase in net income. We are pleased with the progress we have made executing our strategic plan and we continue to invest in new growth opportunities that we believe enhance shareholder value.”
Balance Sheet Highlights
Total assets for the Company totaled $988.6 million at March 31, 2014, an increase of $47.7 million compared with December 31, 2013. The increase during the first quarter of 2014 was attributable to an increase in the Company’s liquidity position due to increased deposits associated with seasonal fluctuations.
March 31, 2014 loans outstanding increased by $10.2 million or approximately 7% on an annualized basis, compared with December 31, 2013, and increased $168.2 million, or 39.50%, compared to March 31, 2013 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 $44 million was broad based across all categories and throughout the Company’s market area.
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End of Period Loan Balances |
03/31/14 | 12/31/13 | 03/31/13 | ||||||
| (dollars in thousands) | |||||||||
| Loans held for sale | $2,586 | $3,680 | $3,677 | ||||||
| Commercial | 84,898 | 81,792 | 52,941 | ||||||
| Real Estate: | |||||||||
| Mortgage-commercial | 198,984 | 212,388 | 154,085 | ||||||
| Mortgage-residential | 218,901 | 202,343 |
144,345 |
||||||
| Construction | 73,523 | 67,287 | 56,293 | ||||||
| Consumer and other | 14,641 | 15,813 | 14,027 | ||||||
| $593,533 | $583,303 | $425,368 | |||||||
Non-performing assets totaled $9.9 million at March 31, 2014 compared to $9.8 million of non-performing assets at December 31, 2013 and $11.9 million at March 31, 2013. Non-performing assets represented 1.00% of total assets at March 31, 2014 compared to 1.04% of total assets at December 31, 2013, and compared to 1.51% at March 31, 2013. Non-performing loans totaled $2.7 million at March 31, 2014 compared to $3.3 million at December 31, 2013 and compared to $3.3 million of non-performing loans at March 31, 2013. Non-performing loans represented 0.46% of total loans at March 31, 2014 compared with 0.57% of total outstanding loans at December 31, 2013 and 0.77% of total loans outstanding at March 31, 2013.
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Non-Performing Assets |
03/31/14 | 12/31/13 | 03/31/13 | ||||||
| (dollars in thousands) | |||||||||
| Non-Accrual Loans | $2,267 | $3,181 | $3,127 | ||||||
| Past Due Loans (90 days or more) | 443 | 159 | 161 | ||||||
| Total Non-Performing Loans | 2,710 | 3,340 | 3,288 | ||||||
| Non-Accrual Securities | 1,950 | 1,950 | 1,950 | ||||||
| Other Real Estate | 5,221 | 4,470 | 6,696 | ||||||
| Total Non-Performing Assets | $9,881 | $9,760 | $11,934 | ||||||
The Company’s allowance for loan losses totaled $5.8 million at March 31, 2014 representing an increase of $83,000, or 5.8% on an annualized basis, from December 31, 2013 and an increase of $893,000, or 18.2%, from March 31, 2013. The allowance for loan losses represented 0.98% of period-end loans at March 31, 2014 compared with 0.98% of period-end loans at December 31, 2013 and 1.16% of period-end loans at March 31, 2013. 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 1.20% of period end loans excluding those booked at fair value at March 31, 2014 compared with 1.21% at December 31, 2013 and 1.21% at March 31, 2013.
Total deposits increased $83.6 million or 42.9% on an annualized basis, as of March 31, 2014 compared with December 31, 2013 total deposits and increased by approximately $200.3 million or 30.2% compared with March 31, 2013. 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 |
03/31/14 | 12/31/13 | 03/31/13 | ||||||
| (dollars in thousands) | |||||||||
| Non-interest-bearing Demand Deposits | $179,334 | $173,794 | $131,527 | ||||||
| IB Demand, Savings, and MMDA Accounts | 476,958 | 403,190 | 372,885 | ||||||
| Time Deposits < $100,000 | 82,780 | 85,880 | 67,000 | ||||||
| Time Deposits > $100,000 | 124,509 | 117,107 | 91,867 | ||||||
| $863,581 | $779,971 | $663,279 | |||||||
Results of Operations Highlights – Quarter ended March 31, 2014
Net income available to common stockholders for the quarter ended March 31, 2014 totaled $1,321,000 or $0.25 per diluted share, an increase of $202,000 or 18.1% from the first quarter of 2013 net income available to common stockholders of $1,119,000 or $0.35 per diluted share with a decrease of $0.10 per diluted share due to the increase in average common shares outstanding associated with the capital raise in 2013.
During the quarter ended March 31, 2014, net interest income totaled $7,824,000 representing an increase of $1,933,000, or 32.8%, compared with the quarter ended March 31, 2013 net interest income of $5,891,000. The tax equivalent net interest margin for the quarter ended March 31, 2014 was 3.73% compared to 3.72% in the first quarter of 2013.
Fair value accounting adjustments on acquired assets and liabilities contributed approximately 8 basis points on an annualized basis to the net interest margin in the first quarter of 2014 and 4 basis points in the first quarter of 2013.
During the quarter ended March 31, 2014, non-interest income remained constant when compared with the quarter ended December 31, 2013, and a decrease of $258,000, or 13.4%, compared with the first quarter of 2013. The decrease for the quarter ended March 31, 2014 as compared to the first quarter of 2013 is attributed to an award in the amount of $415,000 granted to our Company in the first quarter of 2013 by the Community Development Financial Institutions Fund due to our increased level of community development products and services throughout the markets we serve.
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Quarter |
Quarter |
Quarter |
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Non-interest Income |
03/31/14 | 12/31/13 | 03/31/13 | ||||||
| (dollars in thousands) | |||||||||
| Service Charges on Deposit Accounts | $561 | $617 | $501 | ||||||
| Mortgage Income | 349 | 330 | 436 | ||||||
| Interchange Fee Income | 472 | 479 | 388 | ||||||
| Other Operating Income | 290 | 245 | 605 | ||||||
| Total Non-interest Income | $1,672 | $1,671 | $1,930 | ||||||
During the quarter ended March 31, 2014, non-interest expense totaled $7,227,000, a decrease of $81,000, or 1.1%, compared with the quarter ended December 31, 2013, and an increase of $1,248,000, or 20.9%, compared with the first quarter of 2013.
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Quarter |
Quarter |
Quarter |
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Non-interest Expense |
03/31/14 | 12/31/13 | 03/31/13 | ||||||
| (dollars in thousands) | |||||||||
| Salaries and Employee Benefits | $4,097 | $3,932 | $3,183 | ||||||
| Occupancy, Furniture and Equipment Expense | 1,068 | 1,057 | 844 | ||||||
| FDIC Premiums | 223 | 231 | 186 | ||||||
| Professional Fees | 389 | 375 | 532 | ||||||
| Advertising and Promotion | 53 | 160 |
53 |
||||||
| Intangible Amortization | 94 | 94 | 77 | ||||||
| Other Operating Expenses | 1,303 |
1,459 |
1,104 | ||||||
| Total Non-interest Expense | $7,227 | $7,308 | $5,979 | ||||||
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 first quarter of 2014 amounted to $91,000 and one-time acquisition costs expensed during first quarter of 2013 amounted to $341,000.
Net non-interest expense related to non-recurring items amounted to $91,000 during the first quarter of 2014 compared to net non-interest income of $74,000 during the first quarter of 2013 reflecting a total difference of $165,000 between the first quarters.
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.
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THE FIRST BANCSHARES, INC. (unaudited, dollars in thousands except per shares data) Consolidated Balance Sheets |
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Mar 31, 2014 |
Dec 31, 2013 |
Mar 31, 2013 |
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| ASSETS | |||||||||||||||
| Cash and Due from Banks | $ | 28,514 | $ | 24,080 | $ | 24,994 | |||||||||
| Federal funds sold | 22,261 | 967 | 7,221 | ||||||||||||
| Interest-bearing deposits with banks | 31,203 | 14,205 | 59,237 | ||||||||||||
| Investment Securities | 251,037 | 258,023 | 223,781 | ||||||||||||
| Loans held for sale | 2,586 | 3,680 | 3,677 | ||||||||||||
| Loans, Net of Unearned Income | 590,947 | 579,623 | 421,691 | ||||||||||||
| Allowance for Loan Losses | (5,811 | ) | (5,728 | ) | (4,918 | ) | |||||||||
| Net Loans | 585,136 | 573,895 | 416,773 | ||||||||||||
| Premises and Equipment | 31,416 | 32,072 | 22,253 | ||||||||||||
| Other Real Estate Owned | 5,221 | 4,470 | 6,696 | ||||||||||||
| Goodwill | 10,621 | 10,621 | 9,362 | ||||||||||||
| Other Assets | 20,572 | 18,877 | 14,889 | ||||||||||||
| TOTAL ASSETS | $ | 988,567 | $ | 940,890 | $ | 788,883 | |||||||||
| LIABILITIES | |||||||||||||||
| Non-interest-bearing Demand Deposits | $ | 179,334 | $ | 173,794 | $ | 131,527 | |||||||||
| Interest-bearing Accounts | 476,958 | 403,190 | 372,885 | ||||||||||||
| Time Deposits | 207,289 | 202,987 | 158,867 | ||||||||||||
| Total Deposits | 863,581 | 779,971 | 663,279 | ||||||||||||
| Borrowings | 15,000 | 52,000 | 16,760 | ||||||||||||
| Subordinated Debentures | 10,310 | 10,310 | 10,310 | ||||||||||||
| Other Liabilities | 12,180 | 13,501 | 11,466 | ||||||||||||
| TOTAL LIABILITIES | 901,071 | 855,782 | 701,815 | ||||||||||||
| STOCKHOLDER’S EQUITY | |||||||||||||||
| Preferred Stock, Series D | - | - | 20,000 | ||||||||||||
| Preferred Stock | 17,123 | 17,103 | 17,041 | ||||||||||||
| Common Stock | 5,176 | 5,123 | 3,169 | ||||||||||||
| Surplus | 42,107 | 42,086 | 23,753 | ||||||||||||
| Retained Earnings | 23,637 | 22,509 | 20,954 | ||||||||||||
| Accumulated Other Comprehensive Income (Loss) | (83 | ) | (1,249 | ) | 2,615 | ||||||||||
| Treasury Stock | (464 | ) | (464 | ) | (464 | ) | |||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 87,496 | 85,108 | 87,068 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 988,567 | $ | 940,890 | $ | 788,883 | |||||||||
| END OF PERIOD SHARES OUTSTANDING | 5,175,774 | 5,096,447 | 3,142,235 | ||||||||||||
| TANGIBLE BOOK VALUE PER SHARE | $ | 11.05 | $ | 10.73 | $ | 12.22 | |||||||||
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THE FIRST BANCSHARES, INC. (unaudited, dollars in thousands except per share data) Consolidated Statements of Income |
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Three Months Ended |
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Mar 31,
2014 |
Dec 31,
2013 |
Mar 31,
2013 |
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| INTEREST INCOME | ||||||||||||
| Interest and Fees on Loans | $ | 7,004 | $ | 6,971 | $ | 5,231 | ||||||
| Interest and Dividends on Securities | 1,432 | 1,430 | 1,407 | |||||||||
| Interest on Fed Funds Sold | 11 | 10 | 12 | |||||||||
| TOTAL INTEREST INCOME | 8,447 | 8,411 | 6,650 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Interest on Deposits | 466 | 476 | 618 | |||||||||
| Interest on Borrowings | 157 | 169 | 141 | |||||||||
| TOTAL INTEREST EXPENSE | 623 | 645 | 759 | |||||||||
| NET INTEREST INCOME | 7,824 | 7,766 | 5,891 | |||||||||
| Provision for Loan Losses | 358 | 59 | 311 | |||||||||
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
7,466 | 7,707 | 5,580 | |||||||||
| NON-INTEREST INCOME | 1,672 | 1,671 | 1,930 | |||||||||
| NON-INTEREST EXPENSE | 7,227 | 7,308 | 5,979 | |||||||||
| Income before Income Taxes | 1,911 | 2,070 | 1,531 | |||||||||
| Income Taxes | 484 | 572 | 306 | |||||||||
| NET INCOME | 1,427 | 1,498 | 1,225 | |||||||||
| Preferred Stock Accretion & Dividends | 106 | 106 | 106 | |||||||||
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NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ | 1,321 | $ | 1,392 | $ | 1,119 | ||||||
| BASIC EARNINGS PER SHARE | $ | 0.26 | $ | 0.27 | $ | 0.36 | ||||||
| DILUTED EARNINGS PER SHARE | $ | 0.25 | $ | 0.27 | $ | 0.35 | ||||||
| WEIGHTED AVG SHARES OUTSTANDING | 5,140,500 | 5,102,644 | 3,117,480 | |||||||||
| DILUTED WEIGHTED AVG SHS OUTSTANDING | 5,189,929 | 5,156,089 | 3,156,840 | |||||||||
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THE FIRST BANCSHARES, INC. (unaudited, dollars in thousands except per share data) |
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Three Months Ended |
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Mar 31,
2014 |
Dec 31,
2013 |
Mar 31,
2013 |
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| EARNINGS PERFORMANCE RATIOS | ||||||||||
| Annualized Return on Average Assets | 0.55% | 0.59% | 0.60% | |||||||
| Annualized Return on Average Assets(1) | 0.57% | 0.60% | 0.57% | |||||||
| Annualized Return on Average Equity | 6.21% | 6.73% | 6.45% | |||||||
| Annualized Return on Average Equity(1) | 6.49% | 6.84% | 6.17% | |||||||
| Net Interest Margin | 3.73% | 3.76% | 3.72% | |||||||
| Efficiency Ratio(2) | 73.99% | 75.18% | 74.00% | |||||||
| Efficiency Ratio(1)(2) | 73.38% | 74.87% | 73.56% | |||||||
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Net Overhead Expense to Average Earning Assets(3) |
2.56% | 2.63% | 2.45% | |||||||
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Net Overhead Expense to Average Earning Assets(1)(3) |
2.53% | 2.62% | 2.50% | |||||||
| ASSET QUALITY RATIOS | ||||||||||
| Annualized Net Charge-offs to Average Loans | 0.19% | 0.00% | 0.12% | |||||||
| Allowance for Loan Losses to Period End Loans | 0.98% | 0.98% | 1.16% | |||||||
| Non-performing Assets to Period End Assets | 1.00% | 1.04% | 1.51% | |||||||
| Non-performing Loans to Period End Loans | 0.46% | 0.57% | 0.77% | |||||||
| Loans 30-89 Days Past Due to Period End Loans | 0.74% | 0.95% | 0.81% | |||||||
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SELECTED BALANCE SHEET & OTHER FINANCIAL DATA |
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| Average Assets | $965,518 | $937,584 | $745,980 | |||||||
| Average Earning Assets | $869,182 | $857,034 | $660,918 | |||||||
| Average Total Loans | $588,683 | $575,310 | $413,592 | |||||||
| Average Demand Deposits | $165,967 | $172,169 | $111,036 | |||||||
| Average Interest Bearing Liabilities | $702,173 | $670,033 | $558,799 | |||||||
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Average Equity |
$85,028 | $82,727 | $69,416 | |||||||
| Period End Non-performing Assets | $9,881 | $9,760 | $11,934 | |||||||
| Period End Non-performing Loans | $2,710 | $3,340 | $3,288 | |||||||
| Period End Loans 30-89 Days Past Due | $4,418 | $5,553 | $3,459 | |||||||
| Tax Equivalent Net Interest Income | $8,096 | $8,050 | $6,150 | |||||||
| Net Charge-offs during Period | $275 | $0 | $120 | |||||||
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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
Chief
Executive Officer
or
Dee Dee Lowery
Chief Financial Officer
601-268-8998