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8-K - THE FIRST BANCSHARES, INC. 8-K - FIRST BANCSHARES INC /MS/ | a51387247.htm |
Exhibit 99.1
The First Bancshares, Inc. Reports a 22% Increase in Quarterly Net Earnings and Declares Quarterly Dividends
HATTIESBURG, Miss.--(BUSINESS WIRE)--July 22, 2016--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported net earnings available to common shareholders of $2.6 million for the second quarter of 2016, compared to net earnings available to common shareholders of $2.1 million reported for the second quarter of 2015 and $2.5 million in net earnings available to common shareholders for the first quarter of 2016. Diluted earnings for the second quarter of 2016 were $0.47 per common share, compared to $0.39 per common share reported for the second quarter of 2015 and $0.46 per common share reported for the first quarter of 2016. Second quarter 2016 net earnings did not include any non-operating income or expenses; therefore, operating earnings per share for the second quarter of 2016 were $0.47. The first quarter 2016 included a non-operating item, representing $0.03 per share in adjustments. The second quarter of 2015 net earnings did not include any non-operating income or expenses.
Significant Events during Quarter:
- Hired Market President in Madison, MS
- Hired Treasury Management Executive
- Signed purchase agreement for a branch in Baton Rouge, LA to replace facility under lease
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “Results for the 2nd quarter of 2016 continued our trend of strong growth in our core franchise. Substantial organic loan growth combined with an increase in mortgage income were the major drivers of a 22% increase in net income year over year. We continue to focus on improved operating results and market share growth across the Gulf South region.
During the quarter, Wilson E. “Billy” Brunt joined our team as Madison County Market President which is in the Jackson, MS metropolitan area. Billy is a seasoned and talented banker with over 15 years of in-market experience. Under his leadership, we hope to build a full service banking operation to leverage the substantial market share enjoyed by The Mortgage Connection, which we acquired last December.
J.P. Guinn joined our team as SVP of Treasury Management during the quarter. J.P. has an extensive background in Treasury Management with 26 years of banking experience and 16 years in Treasury Management. J.P. will head up our newly created Treasury Management Division to consolidate and formalize our product offerings as well as manage new product development for our client base company wide.”
Balance Sheet
Consolidated assets decreased $17.1 million or 1.4% to $1.2 billion for the quarter ended June 30, 2016. Total loans were $824.1 million at June 30, 2016 as compared to $797.8 million at March 31, 2016 representing an increase of 3.3%. Increased loan volume was spread across all real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $26.6 million or 9.8% quarter over quarter with $17.9 million in owner occupied properties.
Total deposits decreased $8.7 million or .8% to $1,032.4 million for the quarter ended June 30, 2016. This decrease reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $20.1 million or 2.8% for quarter ended June 30, 2016.
Asset Quality
Nonperforming assets totaled $11.1 million at June 30, 2016, a decrease of $0.2 million compared to $11.3 million at March 31, 2016. The ALLL/total loans ratio was 0.88% at June 30, 2016 and 0.88% at March 31, 2016. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.06% of loans at June 30, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.03%) for the quarter ended June 30, 2016 compared to (0.02%) for the quarter ended March 31, 2016. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.
Energy Loans
At June 30, 2016 the company had direct energy related loans of $19.3 million, representing 2.3% of the total loan portfolio. During the quarter, the company received pay downs of $3 million. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production.
Second Quarter 2016 vs. Second Quarter 2015 Earnings Comparison
Second quarter 2016 net earnings available to common shareholders totaled $2.6 million compared to $2.1 million for the second quarter of 2015. Revenues from consolidated operations increased $1,956,000 in quarterly comparison. Net interest income increased $639,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $1,107,000 in quarterly comparison for the second quarter of 2016 as compared to the second quarter of 2015 consisting mainly of increased mortgage income of $827,000.
Second quarter 2016 noninterest expenses increased $829,000, or 10.2% as compared to second quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $787,000 of which $391,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015 as well as additional salaries and benefits related to the banking team in Mobile and lender in Madison along with Treasury Management personnel.
Fully taxable-equivalent (“FTE”) net interest income totaled $10.1 million and $9.5 million for the second quarter of 2016 and 2015, respectively. The FTE net interest income increased $645,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $51,000 on net interest income for the second quarter comparisons. Second quarter 2016 net interest margin of 3.68% includes 1 bps related to purchase accounting adjustments.
Investment securities totaled $258.5 million, or 21.1% of total assets at June 30, 2016, versus $249.9 million, or 22.4% of total assets at June 30, 2015. The average volume of investment securities increased $5.8 million in prior year quarterly comparison. The average tax equivalent yield on investment securities increased 4 bps to 2.65%. The investment portfolio had a net unrealized gain of $4.5 million at June 30, 2016 as compared to $0.7 million at June 30, 2015.
The average yield on all earnings assets increased 2 basis points in prior year quarterly comparison, from 4.03% for the second quarter of 2015 to 4.05% for the second quarter of 2016. This increase was offset by an increase in average interest expense of 6 basis points from 0.39% for the second quarter of 2015 to 0.45% for the second quarter of 2016.
Second Quarter 2016 vs First Quarter 2016 Earnings Comparison
In sequential-quarter comparison, net earnings available to common shareholders increased $44,000 to $2.6 million.
FTE net interest income increased $187,000 to $10.1 million from $9.9 million in sequential-quarter comparison. The increase was due primarily to increased loan volume.
The average yield on all earnings assets increased 3 basis points in sequential-quarter comparison, from 4.02% for the first quarter of 2016 to 4.05% for the second quarter of 2016.
Noninterest income increased $478,000 net in sequential-quarter comparison consisting of an increase in mortgage income of $539,000 which was partially offset by the one-time gain of $260,000 related to the conversion of our debit card provider during the first quarter.
Noninterest expenses increased $526,000 in sequential-quarter comparison which includes an increase in salaries and benefits of $251,000. Of this amount, $120,000 relates to the acquisition of The Mortgage Connection, LLC that occurred in December 2015. The increase in salaries and benefits also reflect the hiring of the Market President in Madison, the treasury management executive as well as the lending team in Mobile.
Year to Date Earnings Comparison
In year-over-year comparison, net earnings available to common shareholders increased $1.1 million, or 25.7%, from $4.0 million at June 30, 2015 to $5.1 million at June 30, 2016. Net interest income increased $1.4 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.
Noninterest income increased $1.7 million in year-over-year comparison mainly consisting of increases in mortgage income of $1.1 million.
Noninterest expenses increased $1.4 million in year-over-year comparison consisting of increases in salaries and benefits of $1.3 million relating to the acquisition of The Mortgage Connection, LLC as well as salaries and benefits related to the lender in Madison along with the executive for Treasury Management.
Dividends
The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on August 25, 2016 to shareholders of record as of the close of business on August 8, 2016.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in south Mississippi, Louisiana and south Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Forward Looking Statements
This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
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EARNINGS DATA |
Quarter Ended 6/30/16 |
Quarter Ended 3/31/16 |
Quarter Ended 12/31/15 |
Quarter Ended 9/30/15 |
Quarter Ended 6/30/15 |
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Total Interest Income | $ | 10,871 | $ | 10,597 | $ | 10,417 | $ | 10,080 | $ | 10,022 | ||||||||||||||||
Total Interest Expense | 1,016 | 922 | 804 | 793 | 806 | |||||||||||||||||||||
Net Interest Income | 9,855 | 9,675 | 9,613 | 9,287 | 9,216 | |||||||||||||||||||||
FTE net interest income | 10,099 | 9,912 | 9,846 | 9,512 | 9,454 | |||||||||||||||||||||
Provision for loan losses | 204 | 190 | 10 | 250 | - | |||||||||||||||||||||
Non-interest income | 2,961 | 2,483 | 1,903 | 1,982 | 1,854 | |||||||||||||||||||||
Non-interest expense | 8,921 | 8,395 | 8,275 | 7,977 | 8,092 | |||||||||||||||||||||
Earnings before income taxes | 3,691 | 3,573 | 3,231 | 3,042 | 2,978 | |||||||||||||||||||||
Income tax expense | 1,042 | 969 | 873 | 815 | 793 | |||||||||||||||||||||
Net earnings | 2,649 | 2,604 | 2,358 | 2,227 | 2,185 | |||||||||||||||||||||
Dividends and accretion on preferred stock | 86 | 85 | 85 | 86 | 86 | |||||||||||||||||||||
Net earnings available to common shareholders | $ | 2,563 | $ | 2,519 | $ | 2,273 | $ | 2,141 | $ | 2,099 | ||||||||||||||||
PER COMMON SHARE DATA | ||||||||||||||||||||||||||
Basic earnings per share | $ | 0.47 | $ | 0.47 | $ | 0.42 | $ | 0.40 | $ | 0.39 | ||||||||||||||||
Diluted earnings per share | 0.47 | 0.46 | 0.42 | 0.39 | 0.39 | |||||||||||||||||||||
Diluted earnings per share, operating* | 0.47 | 0.43 | 0.40 | 0.39 | 0.39 | |||||||||||||||||||||
Quarterly dividends per share | .0375 | .0375 | .0375 | .0375 | .0375 | |||||||||||||||||||||
Book value per common share at end of period | 17.15 | 16.58 | 16.05 | 15.72 | 15.13 | |||||||||||||||||||||
Tangible common book value at period end | 14.26 | 13.67 | 13.10 | 13.02 | 12.41 | |||||||||||||||||||||
Market price at end of period | 17.27 | 15.63 | 18.34 | 17.47 | 16.65 | |||||||||||||||||||||
Shares outstanding at period end | 5,432,014 | 5,432,014 | 5,376,665 | 5,376,665 | 5,374,415 | |||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||
Basic | 5,432,014 | 5,415,339 | 5,376,665 | 5,374,790 | 5,366,495 | |||||||||||||||||||||
Diluted | 5,490,592 | 5,478,703 | 5,449,851 | 5,441,980 | 5,424,242 | |||||||||||||||||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||||||||
Total assets | $ | 1,210,707 | $ | 1,196,328 | $ | 1,131,924 | $ | 1,109,944 | $ | 1,119,648 | ||||||||||||||||
Loans and leases | 809,806 | 779,418 | 757,036 | 731,818 | 728,416 | |||||||||||||||||||||
Total deposits | 1,036,914 | 964,681 | 946,849 | 953,229 | 973,776 | |||||||||||||||||||||
Total common equity | 88,643 | 87,155 | 84,122 | 82,045 | 79,986 | |||||||||||||||||||||
Total tangible common equity* | 72,885 | 71,297 | 69,514 | 67,492 | 65,334 | |||||||||||||||||||||
Total equity | 105,766 | 104,278 | 101,245 | 99,168 | 97,109 | |||||||||||||||||||||
SELECTED RATIOS | ||||||||||||||||||||||||||
Annualized return on avg assets | .88 | % | .87 | % | .83 | % | .80 | % | .78 | % | ||||||||||||||||
Annualized return on avg assets, operating* | .85 | % | .78 | % | .76 | % | .78 | % | .75 | % | ||||||||||||||||
Annualized return on avg common equity, operating* | 11.57 | % | 10.69 | % | 10.27 | % | 10.44 | % | 10.50 | % | ||||||||||||||||
Annualized return on avg tangible common equity, oper* | 14.07 | % | 13.07 | % | 12.43 | % | 12.69 | % | 12.85 | % | ||||||||||||||||
Average loans to average deposits | 78.10 | % | 80.80 | % | 79.95 | % | 76.77 | % | 74.80 | % | ||||||||||||||||
Taxable-equivalent net interest margin | 3.68 | % | 3.68 | % | 3.81 | % | 3.79 | % | 3.71 | % | ||||||||||||||||
Efficiency Ratio | 68.31 | % | 67.73 | % | 70.43 | % | 69.40 | % | 71.56 | % | ||||||||||||||||
CREDIT QUALITY | ||||||||||||||||||||||||||
Allowance for loan losses (ALLL) as a % of total loans | .88 | % | .88 | % | .87 | % | .90 | % | .88 | % | ||||||||||||||||
Nonperforming assets to tangible equity + ALLL | 10.93 | % | 11.43 | % | 11.55 | % | 13.28 | % | 12.33 | % | ||||||||||||||||
Nonperforming assets to total loans + ORE | 1.34 | % | 1.40 | % | 1.40 | % | 1.66 | % | 1.51 | % | ||||||||||||||||
Annualized QTD net charge-offs (recoveries) to total loans | (0.03 | %) | (0.02 | %) | (0.002 | %) | (0.03 | %) | (0.27 | %) | ||||||||||||||||
*See reconciliation of Non-GAAP financial measures |
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands) |
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BALANCE SHEET |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 54,777 | $ | 95,965 | $ | 41,259 | $ | 65,233 | $ | 62,021 | ||||||||||||||||
Securities available-for-sale | 242,855 | 253,126 | 239,732 | 239,631 | 236,476 | |||||||||||||||||||||
Securities held-to-maturity | 6,025 | 6,851 | 7,092 | 7,233 | 7,651 | |||||||||||||||||||||
Other investments | 9,578 | 9,570 | 8,135 | 6,249 | 5,787 | |||||||||||||||||||||
Total investment securities | 258,458 | 269,547 | 254,959 | 253,113 | 249,914 | |||||||||||||||||||||
Loans held for sale | 8,937 | 6,095 | 3,974 | 1,058 | 1,864 | |||||||||||||||||||||
Total loans | 824,083 | 797,764 | 772,515 | 746,588 | 731,037 | |||||||||||||||||||||
Allowance for loan losses | (7,259 | ) | (6,982 | ) | (6,747 | ) | (6,734 | ) | (6,419 | ) | ||||||||||||||||
Loans, net | 816,824 | 790,782 | 765,768 | 739,854 | 724,618 | |||||||||||||||||||||
Premises and equipment | 33,502 | 33,353 | 33,623 | 33,610 | 33,571 | |||||||||||||||||||||
Other Real Estate | 4,716 | 4,363 | 3,083 | 4,104 | 4,116 | |||||||||||||||||||||
Goodwill and other intangibles | 15,696 | 15,796 | 15,891 | 14,490 | 14,691 | |||||||||||||||||||||
Other assets | 31,990 | 26,050 | 26,574 | 26,387 | 26,953 | |||||||||||||||||||||
Total assets | $ | 1,224,900 | $ | 1,241,951 | $ | 1,145,131 | $ | 1,137,849 | $ | 1,117,648 | ||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 194,950 | $ | 194,433 | $ | 189,445 | $ | 187,542 | $ | 193,810 | ||||||||||||||||
Interest-bearing deposits | 837,413 | 846,672 | 727,250 | 776,298 | 768,289 | |||||||||||||||||||||
Total deposits | 1,032,363 | 1,041,105 | 916,695 | 963,840 | 962,099 | |||||||||||||||||||||
Borrowings | 68,000 | 78,976 | 110,321 | 58,986 | 43,991 | |||||||||||||||||||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||||||||
Other liabilities | 3,929 | 4,363 | 4,369 | 3,091 | 2,814 | |||||||||||||||||||||
Total liabilities | 1,114,602 | 1,134,754 | 1,041,695 | 1,036,227 | 1,019,214 | |||||||||||||||||||||
Total shareholders’ equity | 110,298 | 107,197 | 103,436 | 101,622 | 98,434 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,224,900 | $ | 1,241,951 | $ | 1,145,131 | $ | 1,137,849 | $ | 1,117,648 |
FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data) |
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EARNINGS STATEMENT | Three Months Ended | |||||||||||||||||||||||
6/30/16 | 3/31/16 | 12/31/15 | 9/30/15 | 6/30/15 | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||
Loans, including fees | $ | 9,293 | $ | 9,013 | $ | 8,874 | $ | 8,556 | $ | 8,461 | ||||||||||||||
Investment securities | 1,531 | 1,532 | 1,472 | 1,438 | 1,474 | |||||||||||||||||||
Accretion of purchase accounting adjustments | 20 | 22 | 59 | 73 | 71 | |||||||||||||||||||
Other interest income | 27 | 30 | 12 | 13 | 16 | |||||||||||||||||||
Total interest income | 10,871 | 10,597 | 10,417 | 10,080 | 10,022 | |||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||
Deposits | 813 | 701 | 657 | 693 | 704 | |||||||||||||||||||
Borrowings | 169 | 173 | 131 | 100 | 102 | |||||||||||||||||||
Subordinated debentures | 34 | 48 | 47 | 47 | 46 | |||||||||||||||||||
Accretion of purchase accounting adjustments | - | - | (31 | ) | (47 | ) | (46 | ) | ||||||||||||||||
Total interest expense | 1,016 | 922 | 804 | 793 | 806 | |||||||||||||||||||
Net interest income | 9,855 | 9,675 | 9,613 | 9,287 | 9,216 | |||||||||||||||||||
Provision for loan losses | 204 | 190 | 10 | 250 | - | |||||||||||||||||||
Net interest income after provision for loan losses | 9,651 | 9,485 | 9,603 | 9,037 | 9,216 | |||||||||||||||||||
Non-interest Income: | ||||||||||||||||||||||||
Service charges on deposit accounts | 604 | 637 | 674 | 737 | 591 | |||||||||||||||||||
Mortgage Income | 1,184 | 645 | 245 | 341 | 357 | |||||||||||||||||||
Interchange Fee Income | 681 | 644 | 650 | 611 | 612 | |||||||||||||||||||
Gain (loss) on securities, net | 129 | - | - | - | - | |||||||||||||||||||
Gain on sale of premises and equipment | - | - | - | - | - | |||||||||||||||||||
BEA award, net | - | - | 152 | - | - | |||||||||||||||||||
Other charges and fees | 363 | 557 | 182 | 293 | 294 | |||||||||||||||||||
Total non-interest income | 2,961 | 2,483 | 1,903 | 1,982 | 1,854 | |||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||
Salaries and employee benefits | 5,400 | 5,149 | 4,670 | 4,628 | 4,613 | |||||||||||||||||||
Occupancy expense | 1,110 | 1,073 | 1,107 | 1,136 | 1,137 | |||||||||||||||||||
FDIC premiums | 257 | 244 | 243 | 241 | 241 | |||||||||||||||||||
Marketing | 132 | 72 | 150 | 64 | 161 | |||||||||||||||||||
Amortization of core deposit intangibles | 100 | 94 | 100 | 100 | 100 | |||||||||||||||||||
Other professional services | 321 | 231 | 377 | 318 | 379 | |||||||||||||||||||
Other non-interest expense | 1,601 | 1,532 | 1,628 | 1,490 | 1,461 | |||||||||||||||||||
Total Non-interest expense | 8,921 | 8,395 | 8,275 | 7,977 | 8,092 | |||||||||||||||||||
Earnings before income taxes | 3,691 | 3,573 | 3,231 | 3,042 | 2,978 | |||||||||||||||||||
Income tax expense | 1,042 | 969 | 873 | 815 | 793 | |||||||||||||||||||
Net earnings | 2,649 | 2,604 | 2,358 | 2,227 | 2,185 | |||||||||||||||||||
Dividends and accretion on preferred stock | 86 | 85 | 85 | 86 | 86 | |||||||||||||||||||
Net earnings available to common shareholders | $ | 2,563 | $ | 2,519 | $ | 2,273 | $ | 2,141 | $ | 2,099 | ||||||||||||||
Earnings per common share, diluted | $ | 0.47 | $ | 0.46 | $ | 0.42 | $ | 0.39 | $ | 0.39 | ||||||||||||||
Operating earnings per common share, diluted* | $ | 0.47 | $ | 0.43 | $ | 0.40 | $ | 0.39 | $ | 0.39 | ||||||||||||||
*See reconciliation of Non-GAAP financial measures |
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited) (in thousands) |
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COMPOSITION OF LOANS |
June 30, 2016 |
Percent of Total |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
Percent of Total |
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Commercial, financial and agricultural | $ | 118,924 | 14.3 | % | $ | 126,381 | $ | 129,197 | $ | 123,872 | $ | 116,352 | 15.9 | % | ||||||||||||||||||||
Real estate – construction | 101,439 | 12.2 | % | 100,386 | 99,161 | 85,769 | 93,152 | 12.7 | % | |||||||||||||||||||||||||
Real estate – commercial | 296,676 | 35.6 | % | 270,085 | 253,309 | 251,631 | 245,537 | 33.5 | % | |||||||||||||||||||||||||
Real estate – residential | 282,420 | 33.9 | % | 276,272 | 272,180 | 265,763 | 259,610 | 35.4 | % | |||||||||||||||||||||||||
Lease Financing Receivable | 2,642 | .3 | % | 2,645 | 2,650 | 2,303 | - | - | ||||||||||||||||||||||||||
Obligations of States & subdivisions | 6,965 | .8 | % | 7,034 | 969 | 969 | 700 | .1 | % | |||||||||||||||||||||||||
Consumer | 15,017 | 1.8 | % | 14,961 | 15,049 | 16,281 | 15,686 | 2.1 | % | |||||||||||||||||||||||||
Loans held for sale | 8,937 | 1.1 | % | 6,095 | 3,974 | 1,058 | 1,864 | 0.3 | % | |||||||||||||||||||||||||
Total loans | $ | 833,020 | 100 | % | $ | 803,859 | $ | 776,489 | $ | 747,646 | $ | 732,901 | 100 | % | ||||||||||||||||||||
COMPOSITION OF DEPOSITS |
June 30, 2016 |
Percent of Total |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
Percent of Total |
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Noninterest bearing | $ | 194,950 | 18.9 | % | $ | 194,433 | $ | 189,445 | $ | 187,542 | $ | 193,810 | 20.2 | % | ||||||||||||||||||||
NOW and other | 466,118 | 45.2 | % | 493,319 | 373,687 | 411,893 | 393,596 | 40.9 | % | |||||||||||||||||||||||||
Money Market/Savings | 174,740 | 16.9 | % | 169,733 | 174,090 | 181,861 | 185,033 | 19.2 | % | |||||||||||||||||||||||||
Time Deposits of less than $100,000 | 72,389 | 7.0 | % | 72,295 | 73,865 | 75,022 | 77,815 | 8.1 | % | |||||||||||||||||||||||||
Time Deposits of $100,000 or more | 124,166 | 12.0 | % | 111,325 | 105,608 | 107,522 | 111,845 | 11.6 | % | |||||||||||||||||||||||||
Total Deposits | $ | 1,032,363 | 100 | % | $ | 1,041,105 | $ | 916,695 | $ | 963,840 | $ | 962,099 | 100 | % | ||||||||||||||||||||
ASSET QUALITY DATA |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Nonaccrual loans | $ | 5,742 | $ | 5,851 | $ | 7,368 | $ | 7,949 | $ | 6,513 | ||||||||||||||||||||||||
Loans past due 90 days and over | 267 | 628 | 29 | 6 | 92 | |||||||||||||||||||||||||||||
Total nonperforming loans | 6,009 | 6,479 | 7,397 | 7,955 | 6,605 | |||||||||||||||||||||||||||||
Other real estate | 4,716 | 4,363 | 3,083 | 4,104 | 4,116 | |||||||||||||||||||||||||||||
Nonaccrual securities | 408 | 408 | 408 | 408 | 408 | |||||||||||||||||||||||||||||
Total nonperforming assets | $ | 11,133 | $ | 11,250 | $ | 10,888 | $ | 12,467 | $ | 11,129 | ||||||||||||||||||||||||
Nonperforming assets to total assets | .91 | % | .91 | % | .95 | % | 1.10 | % | 1.00 | % | ||||||||||||||||||||||||
Nonperforming assets to total loans + ORE | 1.34 | % | 1.40 | % | 1.40 | % | 1.66 | % | 1.51 | % | ||||||||||||||||||||||||
ALLL to nonperforming loans | 120.80 | % | 107.80 | % | 91.21 | % | 84.65 | % | 97.18 | % | ||||||||||||||||||||||||
ALLL to total loans | .88 | % | .88 | % | .87 | % | .90 | % | .88 | % | ||||||||||||||||||||||||
Quarter-to-date net charge-offs (recoveries) | $ | (72 | ) | $ | (48 | ) | $ | (3 | ) | $ | (65 | ) | $ | (490 | ) | |||||||||||||||||||
Annualized QTD net chg/offs (recs) to loans | (0.03 | %) | (0.02 | %) | (0.002 | %) | (0.03 | %) | (0.27 | %) |
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, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 186,615 | $ | 1,034 | 2.22 | % | $ | 189,249 | $ | 1,056 | 2.23 | % | $ | 177,964 | $ | 1,006 | 2.26 | % | $ | 172,478 | $ | 976 | 2.26 | % | $ | 179,580 | $ | 991 | 2.21 | % | |||||||||||||||||||||||||||||||
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Total investment securities |
78,290 | 721 | 3.68 | % | 76,795 | 693 | 3.61 | % | 75,570 | 685 | 3.63 | % | 74,807 | 662 | 3.54 | % | 79,568 | 702 | 3.53 | % | |||||||||||||||||||||||||||||||||||||||||
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Total investment securities |
264,905 | 1,755 | 2.65 | % | 266,044 | 1,749 | 2.63 | % | 253,534 | 1,691 | 2.67 | % | 247,285 | 1,638 | 2.65 | % | 259,148 | 1,693 | 2.61 | % | |||||||||||||||||||||||||||||||||||||||||
Fed funds sold | 9,902 | 27 | 1.09 | % | 12,395 | 30 | 0.97 | % | 405 | 1 | 0.99 | % | 5,502 | 13 | 0.95 | % | 6,702 | 16 | 0.95 | % | |||||||||||||||||||||||||||||||||||||||||
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Int bearing deposits in other banks |
12,522 | 20 | 0.64 | % | 20,909 | 20 | 0.38 | % | 21,601 | 25 | 0.46 | % | 20,613 | 25 | 0.49 | % | 24,089 | 19 | 0.32 | % | |||||||||||||||||||||||||||||||||||||||||
Loans | 809,806 | 9,313 | 4.60 | % | 779,418 | 9,035 | 4.64 | % | 757,036 | 8,933 | 4.72 | % | 731,818 | 8,629 | 4.72 | % | 728,416 | 8,532 | 4.69 | % | |||||||||||||||||||||||||||||||||||||||||
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Total Interest earning assets |
1,097,135 | 11,115 | 4.05 | % | 1,078,766 | 10,834 | 4.02 | % | 1,032,576 | 10,650 | 4.13 | % | 1,005,218 | 10,305 | 4.10 | % | 1,018,355 | 10,260 | 4.03 | % | |||||||||||||||||||||||||||||||||||||||||
Other assets | 113,572 | 117,562 | 99,348 | 104,726 | 101,293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,210,707 | $ | 1,196,328 | $ | 1,131,924 | $ | 1,109,944 | $ | 1,119,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: |
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Deposits | $ | 843,771 | $ | 813 | 0.39 | % | $ | 777,692 | $ | 701 | 0.36 | % | $ | 752,098 | $ | 626 | 0.33 | % | $ | 759,939 | $ | 646 | 0.34 | % | $ | 772,837 | $ | 658 | 0.34 | % | |||||||||||||||||||||||||||||||
Repo | 5,000 | 48 | 3.84 | % | 5,000 | 48 | 3.84 | % | 5,000 | 48 | 3.84 | % | 5,000 | 48 | 3.84 | % | 5,000 | 48 | 3.84 | % | |||||||||||||||||||||||||||||||||||||||||
Fed funds purchased | 2,894 | 8 | 1.11 | % | 782 | 2 | 1.02 | % | 1,984 | 6 | 1.21 | % | 661 | 2 | 1.21 | % | 1,180 | 3 | 1.02 | % | |||||||||||||||||||||||||||||||||||||||||
FHLB | 42,962 | 93 | 0.87 | % | 106,352 | 143 | 0.54 | % | 60,961 | 77 | 0.51 | % | 37,716 | 50 | 0.53 | % | 27,117 | 51 | 0.75 | % | |||||||||||||||||||||||||||||||||||||||||
Subordinated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
debentures | 10,310 | 54 | 2.10 | % | 10,310 | 28 | 1.09 | % | 10,310 | 47 | 1.82 | % | 10,310 | 47 | 1.82 | % | 10,310 | 46 | 1.78 | % | |||||||||||||||||||||||||||||||||||||||||
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Total interest bearing liabilities |
904,937 | 1,016 | 0.45 | % | 900,136 | 922 | 0.41 | % | 830,353 | 804 | 0.39 | % | 813,626 | 793 | 0.39 | % | 816,444 | 806 | 0.39 | % | |||||||||||||||||||||||||||||||||||||||||
Other liabilities | 200,004 | 191,914 | 200,326 | 197,150 | 206,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 105,766 | 104,278 | 101,245 | 99,168 | 97,109 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ | 1,210,707 | $ | 1,196,328 | $ | 1,131,924 | $ | 1,109,944 | $ | 1,119,648 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
income (TE) | $ | 10,099 | 3.60 | % | $ | 9,912 | 3.61 | % | $ | 9,846 | 3.74 | % | $ | 9,512 | 3.71 | % | $ | 9,454 | 3.64 | % | |||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.68 | % | 3.68 | % | 3.81 | % | 3.79 | % | 3.71 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Core net interest margin* |
3.67 | % | 3.66 | % | 3.77 | % | 3.73 | % | 3.66 | % |
FIRST BANCSHARES, INC and SUBSIDIARIES
Reconcilement of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) |
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Three Months Ended |
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Per Common Share Data |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Book value per common share | $ | 17.15 | $ | 16.58 | $ | 16.05 | $ | 15.72 | $ | 15.13 | ||||||||||||||||
Effect of intangible assets per share | 2.89 | 2.91 | 2.95 | 2.70 | 2.72 | |||||||||||||||||||||
Tangible book value per common share | $ | 14.26 | $ | 13.67 | $ | 13.10 | $ | 13.02 | $ | 12.41 | ||||||||||||||||
Diluted earnings per share | $ | 0.47 | $ | 0.46 | $ | 0.42 | $ | 0.39 | $ | 0.39 | ||||||||||||||||
Effect of gain on debit card conversion, after-tax | - | (0.03 | ) | - | - | - | ||||||||||||||||||||
Effect of gain on sale of bank premises, after-tax | - | - | - | - | - | |||||||||||||||||||||
Effect of BAE, after-tax | - | - | (0.02 | ) | - | - | ||||||||||||||||||||
Effect of acquisition charges, after-tax | - | - | - | - | - | |||||||||||||||||||||
Diluted earnings per share, operating | $ | 0.47 | $ | 0.43 | $ | 0.40 | $ | 0.39 | $ | 0.39 | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Average Balance Sheet Data |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Total average assets A | $ | 1,210,707 | $ | 1,196,328 | $ | 1,131,924 | $ | 1,109,944 | $ | 1,119,648 | ||||||||||||||||
Total equity | $ | 105,766 | $ | 104,278 | $ | 101,245 | $ | 99,168 | $ | 97,109 | ||||||||||||||||
Less preferred equity | 17,123 | 17,123 | 17,123 | 17,123 | 17,123 | |||||||||||||||||||||
Total common equity B | 88,643 | 87,155 | 84,122 | 82,045 | 79,986 | |||||||||||||||||||||
Less intangible assets | 15,758 | 15,858 | 14,608 | 14,553 | 14,652 | |||||||||||||||||||||
Tangible common equity C | $ | 72,885 | $ | 71,297 | $ | 69,514 | $ | 67,492 | $ | 65,334 | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Core Net Interest Margin |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Net interest income (TE) | $ | 10,099 | $ | 9,912 | $ | 9,846 | $ | 9,512 | $ | 9,454 | ||||||||||||||||
Less purchase accounting adjustments | 20 | 22 | 90 | 120 | 117 | |||||||||||||||||||||
Net interest income, net of purchase accounting adj D | $ | 10,079 | $ | 9,890 | $ | 9,756 | $ | 9,392 | $ | 9,337 | ||||||||||||||||
Total average earning assets | $ | 1,097,135 | $ | 1,078,766 | $ | 1,032,576 | $ | 1,005,218 | $ | 1,018,355 | ||||||||||||||||
Add average balance of loan valuation discount | 1,504 | 1,526 | 1,583 | 1,657 | 1,727 | |||||||||||||||||||||
Avg earning assets, excluding loan valuation discount E | $ | 1,098,639 | $ | 1,080,292 | $ | 1,034,159 | $ | 1,006,875 | $ | 1,020,082 | ||||||||||||||||
Core net interest margin D/E | 3.67 | % | 3.66 | % | 3.77 | % | 3.73 | % | 3.66 | % | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Return Ratios |
June 30, 2016 |
Mar 31, 2016 |
Dec 31, 2015 |
Sept 30, 2015 |
June 30, 2015 |
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Net earnings F | $ | 2,649 | $ | 2,604 | $ | 2,358 | $ | 2,227 | $ | 2,185 | ||||||||||||||||
Dividends and accretion on preferred stock | 86 | 85 | 85 | 86 | 86 | |||||||||||||||||||||
Net earnings available to common shareholders | 2,563 | 2,519 | 2,273 | 2,141 | 2,099 | |||||||||||||||||||||
Gain on debit card conversion, after-tax | - | (189 | ) | - | - | - | ||||||||||||||||||||
Gain on sale of premises and equipment, after-tax | - | - | - | - | - | |||||||||||||||||||||
BAE, after-tax | - | - | (112 | ) | - | - | ||||||||||||||||||||
Acquisition charges, after-tax | - | - | - | - | - | |||||||||||||||||||||
Net earnings available to common shareholders, oper G | $ | 2,563 | $ | 2,330 | $ | 2,161 | $ | 2,141 | $ | 2,099 | ||||||||||||||||
Annualized return on avg assets F/A | .88 | % | .87 | % | .83 | % | .80 | % | .78 | % | ||||||||||||||||
Annualized return on avg assets, oper G/A | .85 | % | .78 | % | .76 | % | .78 | % | .75 | % | ||||||||||||||||
Annualized return on avg common equity, oper G/B | 11.57 | % | 10.69 | % | 10.27 | % | 10.44 | % | 10.50 | % | ||||||||||||||||
Annualized return on avg tangible common equity, oper G/C | 14.07 | % | 13.07 | % | 12.43 | % | 12.69 | % | 12.85 | % | ||||||||||||||||
Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.
We use non-GAAP measures because we believe they are useful for evaluating our financial condition with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are necessarily comparable to non-GAAP performance measures that other companies may use.
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