UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 26, 2023

The First Bancshares, Inc.
(Exact name of registrant as specified in its charter)

Mississippi
000-22507
64-0862173
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

6480 U.S. Hwy 98 West, Hattiesburg, MS 
39402
(Address of principal executive offices)
 (Zip Code)

Registrant’s telephone number, including area code (601) 268-8998

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class Trading symbol(s) Name of each exchange on which registered
Common Stock
 FBMS
 NASDAQ 



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2 of this chapter).

Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.          Results of Operations and Financial Condition

On July 26, 2023, The First Bancshares, Inc. issued a press release announcing its results of operations for the second quarter of 2023.   A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 2.02 of this report (including Exhibit 99.1)  shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01.          Regulation FD Disclosure

On July 26, 2023, The First Bancshares, Inc. made available an investor presentation prepared for use with the press release.  A copy of the investor presentation is attached hereto as Exhibit 99.2 and incorporated herein.

On July 27, 2023, The First Bancshares, Inc. will host a conference call for analysts and investors to discuss the Company’s financial results at 10:00 a.m. Central Time.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 7.01 of this report (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01.           Other Event

On July 26, 2023, The First Bancshares, Inc. announced the declaration of a $0.23 per share quarterly cash dividend.  The dividend is payable on August 24, 2023 to shareholders of record as of the close of business on August 8, 2023.

Item 9.01.          Financial Statements and Exhibits

Exhibit No.
Description
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
The First Bancshares, Inc.
 
 
 
 
Date:  July 26, 2023
 
 
 
 
 
 
/s/ Donna T. (Dee Dee) Lowery
 
Name: Donna T. (Dee Dee) Lowery
 
Title:   EVP and CFO

Exhibit 99.1

The First Bancshares, Inc. Reports Results for Second Quarter Ended June 30, 2023; Increases Quarterly Dividend 5%

HATTIESBURG, Miss.--(BUSINESS WIRE)--July 26, 2023--The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended June 30, 2023.

Highlights:

  • Net income available to common shareholders totaled $23.8 million for the quarter ended June 30, 2023, representing an increase of 46.1% when compared to $16.3 million for the quarter ended March 31, 2023. Several one-time items are detailed in the tables located in the appendix of this release.
  • Excluding one-time items detailed in the tables located in the appendix of this release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.3 million, or 1.0% to $26.8 million for the quarter ended June 30, 2023 as compared to $27.1 million for the quarter ended March 31, 2023.
  • Total loans increased $41.1 million for the quarter representing net growth of 3.3% on an annualized basis, as compared to the quarter ended March 31, 2023.
  • Annualized net interest margin increased 13 bps to 3.76% for the quarter ended June 30, 2023 from 3.63% for the quarter ended March 31, 2023.
  • Core net interest margin decreased 4 bps during the quarter from 3.47% to 3.43%.
  • Cost of deposits averaged 91 bps for the second quarter compared to 72 bps for the first quarter.
  • Added a commercial banking team and opened an LPO in St. Petersburg, FL.
  • Added a commercial banking team in New Orleans, LA.
  • 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, President and Chief Executive Officer, commented, “We are pleased to report another strong quarter characterized by modest loan growth of 3.3% on an annualized basis, GAAP net interest margin expansion of 13 bps, an improvement in nonperforming assets and consistent core operating earnings. Our retail oriented, highly granular deposit base continues to perform well exhibited by a total cost of deposits of 91 bps up only 19 bps quarter over quarter. We believe we are well positioned for this very difficult operating environment given our conservative balance sheet structure and our solid core earnings stream.”

Quarterly Earnings

Net income available to common shareholders totaled $23.8 million for the quarter ended June 30, 2023, representing an increase when compared to $16.3 million for the quarter ended March 31, 2023.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.3 million, or 1.0%, to $26.8 million for quarter ended June 30, 2023 as compared to $27.1 million for the quarter ended March 31, 2023.

The Company recorded a provision for credit losses of $1.3 million for the quarter ended June 30, 2023 and $11.0 million for the quarter ended March 31, 2023. The $11.0 million provision in respect of the quarter ended March 31, 2023 included $10.7 million for the Current Expected Credit Loss (“CECL”) day 1 provision for credit losses and unfunded commitments attributable to the acquired loans from Heritage Southeast Bancorporation, Inc. (“Heritage Bank”) in the first quarter of 2023.

Earnings Per Share

For the second quarter of 2023, diluted earnings per share were $0.75, compared to $0.52 for the first quarter of 2023 and $0.76 for the second quarter of 2022.

The increase in diluted earnings per share when compared to the previous quarter was primarily attributable to expenses associated with the acquisition of Heritage Bank.

Diluted earnings per share, operating (non-GAAP) were $0.85 for the second quarter of 2023 compared to $0.86 for the first quarter of 2023 and $0.80 for the second quarter of 2022.

Effective January 1, 2023, the Company issued 6,920,422 shares of its common stock in conjunction with the closing of the acquisition of Heritage Bank. Effective August 1, 2022, the Company issued 3,498,936 shares of its common stock in conjunction with the closing of the acquisition of Beach Bancorp, Inc. (“Beach Bank”).

Balance Sheet

Consolidated assets decreased $155.2 million to $7.862 billion at June 30, 2023 from $8.017 billion at March 31, 2023. Cash and cash equivalents decreased $139.4 million for the quarterly comparison.

Total loans were $5.011 billion for the quarter ended June 30, 2023, as compared to $4.970 billion for the quarter ended March 31, 2023, and $3.125 billion for the quarter ended June 30, 2022, representing an increase of $41.1 million, or 0.8%, for the sequential quarter comparison, and an increase of $1.886 billion, or 60.4%, for the prior year quarterly comparison. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were recorded from the Heritage Bank acquisition. During August 2022, loans totaling $486.5 million, net of purchase accounting adjustments were recorded from the Beach Bank acquisition.

Total loans increased $41.1 million, or 0.8% as compared to the quarter ended March 31, 2023, or 3.3% on an annualized basis.

Excluding the acquired Heritage Bank loans and Beach Bank loans, total loans increased $240 million, or 8% compared to the quarter ended June 30, 2022.

Total deposits were $6.492 billion for the quarter ended June 30, 2023, as compared to $6.668 billion for the quarter ended March 31, 2023, and $5.306 billion for the quarter ended June 30, 2022, representing a decrease of $175.7 million, or 2.6%, for the sequential quarter comparison, and an increase of $1.186 billion, or 22.4%, for the prior year quarterly comparison. During January 2023, deposits totaling $1.392 billion, net of purchase accounting adjustments, were acquired in the Heritage Bank acquisition. During August 2022, deposits totaling $490.6 million, net of purchase accounting adjustments, were acquired in the Beach Bank acquisition.

Deposits decreased $175.7 million, or 2.6% for the prior quarter comparison. The decrease in deposits was partially attributable to brokered certificate of deposits in the amount of $27.4 million that matured during the quarter. The decrease in deposits also reflected a decrease in public fund deposits of $60.4 million during the quarter. Excluding the brokered deposits that matured and the decrease in public fund deposits, there was approximately $87.9 million in deposit runoff during the quarter.

Book value per share increased to $28.64 at June 30, 2023 from $28.58 at March 31, 2023.

Tangible book value per share (non-GAAP) increased to $17.62 at June 30, 2023 from $17.49 at March 31, 2023. The balance in accumulated other comprehensive income (loss) increased $14.5 million to $145.2 million at June 30, 2023 from $130.8 million at March 31, 2023.

Asset Quality

Nonperforming assets totaled $21.6 million at June 30, 2023, a decrease of $0.8 million compared to $22.5 million at March 31, 2023 and a decrease of $4.6 million compared to $26.2 million at June 30, 2022.

Nonaccrual loans totaled $16.0 million, a decrease of $1.3 million as compared to March 31, 2023 and a decrease of $7.6 million as compared to June 30, 2022. During the quarter ended September 30, 2022, one large relationship with a balance of $10.2 million was upgraded to accrual status.

The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at June 30, 2023, 1.06% at March 31, 2023 and 1.04% at June 30, 2022. The ratio of annualized net charge-offs (recoveries) to total loans was 0.07% for the quarter ended June 30, 2023 compared to 0.01% for the quarter ended March 31, 2023 and (0.04%) for the quarter ended June 30, 2022.

Second Quarter 2023 vs First Quarter 2023 Earnings Comparison

Net income available to common shareholders for the second quarter of 2023 increased $7.5 million to $23.8 million from $16.3 million for the first quarter of 2023.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.3 million, or 1.0%, to $26.8 million for quarter ended June 30, 2023 as compared to $27.1 million for the quarter ended March 31, 2023.

Net interest income for the second quarter of 2023 was $66.0 million as compared to $64.9 million for the first quarter of 2023, an increase of $1.1 million. The increase was largely due to the increase in accretion of purchase accounting adjustments of $3.1 million as well as increased interest income, including fees of $3.8 million on the loan portfolio from higher yields and volumes.

Second quarter 2023 net interest margin of 3.76% included 37 basis points related to purchase accounting adjustments compared to 3.63% for the first quarter in 2023, which included 19 basis points related to purchase accounting adjustments.

Core net interest margin decreased 4 bps to 3.43% for the second quarter from 3.47% for the first quarter of 2023.

Investment securities totaled $1.898 billion, or 24.1% of total assets at June 30, 2023, compared to $1.962 billion, or 24.5% of total assets at March 31, 2023. The average balance of investment securities decreased $84.4 million in sequential-quarter comparison. The average yield on investment securities decreased 8 basis points to 2.23% from 2.31% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $157.6 million at June 30, 2023 as compared to a net unrealized loss of $137.6 million at March 31, 2023.

The average yield on all earning assets increased in sequential-quarter comparison from 4.49% to 4.91%. Interest expense on average interest bearing liabilities increased 41 basis points from 1.24% for the first quarter of 2023 to 1.65% for the second quarter of 2023.

Cost of all deposits averaged 91 basis points for the second quarter of 2023 compared to 72 basis points for the first quarter of 2023. This increase was a result of rising interest rates and increased competition for deposits.

Non-interest income decreased $0.2 million from $12.6 million to $12.4 million in the sequential-quarter comparison, attributable to decreases in service charges on deposit accounts of $0.2 million.

Non-interest expense for the second quarter of 2023 was $46.9 million compared to $45.7 million for the first quarter of 2023, an increase of $1.2 million, attributed to the increase in acquisition charges of $0.3 million as well as other expenses increased $1.0 million. Other expenses include a $0.5 million write down of other real estate.

Second Quarter 2023 vs. Second Quarter 2022 Earnings Comparison

Net income available to common shareholders for the second quarter of 2023 totaled $23.8 million compared to $15.8 million for the second quarter of 2022, an increase of $8.0 million or 50.9%.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $10.3 million, or 62.7%, to $26.8 million for quarter ended June 30, 2023 as compared to $16.5 million for the quarter ended June 30, 2022.

Net interest income for the second quarter of 2023 was $66.0 million, an increase of $23.9 million or 56.8% when compared to the second quarter of 2022. FTE net interest income (non-GAAP) totaled $67.0 million and $43.0 million for the second quarter of 2023 and 2022, respectively. Purchase accounting adjustments increased $5.9 million for the second quarter comparisons. The increase was largely due to increased interest rates as well as the acquisitions of Beach Bank and Heritage Bank.

Second quarter of 2023 net interest margin was 3.76%, which included 37 basis points related to purchase accounting adjustments compared to 3.02% for the same quarter in 2022, which included 4 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 41 basis points in prior year quarterly comparison primarily due to an increase in average loans as well as interest rate increases.

Non-interest income increased $3.8 million for the second quarter of 2023 as compared to the second quarter of 2022. This increase was attributable to increases in service charges on deposit accounts and interchange fee income of $2.8 million and an increase of $1.7 million in other charges and fees. This increase was partially offset by a decrease of $0.5 million in mortgage income.

Second quarter 2023 non-interest expense was $46.9 million, an increase of $15.9 million, or 51.5% as compared to the second quarter of 2022. For the second quarter of 2023, charges related to the ongoing operations of Beach Bank and Heritage Bank totaled $10.0 million and acquisition charges of $2.9 million.

Investment securities totaled $1.898 billion, or 24.1% of total assets at June 30, 2023, compared to $2.105 billion, or 34.9% of total assets at June 30, 2022. For the second quarter of 2023 compared to the second quarter of 2022, the average balance of investment securities decreased $183.2 million. The average yield on investment securities increased 13 basis points to 2.23% from 2.10% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $157.6 million at June 30, 2023 as compared to a net unrealized loss of $149.1 million at June 30, 2022.

The average yield on all earnings assets increased 162 basis points in prior year quarter comparison, from 3.29% for the second quarter of 2022 to 4.91% for the second quarter of 2023. Interest expense on average interest-bearing liabilities increased 126 basis points from 0.39% for the second quarter of 2022 to 1.65% for the second quarter of 2023.

Cost of all deposits averaged 91 basis points for the second quarter of 2023 compared to 14 basis points for the second quarter of 2022. This increase was a result of rising interest rates and increased competition for deposits.

Year-to-Date Earnings Comparison

In the year-over-year comparison, net income available to common shareholders increased $7.5 million, or 22.9%, from $32.6 million for the six months ended June 30, 2022 to $40.1 million for the same period ended June 30, 2023.

Net interest income was $131.0 million for the six months ended June 30, 2023, an increase of $50.2 million as compared to the same period ended June 30, 2022, primarily due to interest income earned on a higher volume of loans and securities (including loans and securities acquired from Heritage Bank and Beach Bank).

Non-interest income was $25.0 million for the six months ended June 30, 2023, an increase of $5.2 million as compared to the same period ended June 30, 2022. Service charges on deposit accounts accounted for $3.0 million of the increase as well as $2.7 million in interchange fee income.

Non-interest expense was $92.6 million for the six months ended June 30, 2023, an increase of $33.0 million as compared to the same period ended June 30, 2022. The increase was partially attributable to $6.3 million in acquisition and charter conversion charges and $20.9 million in increased operating expenses related to the acquisitions of Beach Bank and Heritage Bank for the six months ended June 30, 2023.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.23 per share, a 5% increase over the previous quarter, to be paid on its common stock on August 24, 2023 to shareholders of record as of the close of business on August 8, 2023.

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 27, 2023. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BI2f16adb2b9ab4d3184aa6ef3cf9f0f03. 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 NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes 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. 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 recent 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; 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.

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands except per share data)

EARNINGS DATA

Quarter

Ended

6/30/23

Quarter

Ended

3/31/23

Quarter

Ended

12/31/22

Quarter

Ended

9/30/22

Quarter

Ended

6/30/22

Total Interest Income

$

86,194

 

$

80,338

 

$

57,923

 

$

53,874

 

$

45,847

 

Total Interest Expense

 

20,164

 

 

15,412

 

 

10,002

 

 

4,726

 

 

3,746

 

Net Interest Income

 

66,030

 

 

64,926

 

 

47,921

 

 

49,148

 

 

42,101

 

Net Interest Income excluding PPP Fee Income

 

66,029

 

 

64,718

 

 

47,899

 

 

48,986

 

 

41,563

 

FTE net interest income*

 

67,028

 

 

65,924

 

 

48,916

 

 

50,122

 

 

43,042

 

Provision for credit losses

 

1,250

 

 

11,000

 

 

705

 

 

4,300

 

 

600

 

Non-interest income

 

12,423

 

 

12,612

 

 

8,131

 

 

9,022

 

 

8,664

 

Non-interest expense

 

46,899

 

 

45,670

 

 

35,040

 

 

35,903

 

 

30,955

 

Earnings before income taxes

 

30,304

 

 

20,868

 

 

20,307

 

 

17,967

 

 

19,210

 

Income tax expense

 

6,525

 

 

4,597

 

 

4,012

 

 

3,924

 

 

3,457

 

Net income available to common shareholders

$

23,779

 

$

16,271

 

$

16,295

 

$

14,043

 

$

15,753

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

Basic earnings per share

$

0.76

 

$

0.52

 

$

0.68

 

$

0.61

 

$

0.77

 

Diluted earnings per share

 

0.75

 

 

0.52

 

 

0.67

 

 

0.61

 

 

0.76

 

Diluted earnings per share, operating*

 

0.85

 

 

0.86

 

 

0.71

 

 

0.85

 

 

0.80

 

Quarterly dividends per share

 

.22

 

 

.21

 

 

.20

 

 

.19

 

 

.18

 

Book value per common share at end of period

 

28.64

 

 

28.58

 

 

26.92

 

 

25.86

 

 

27.30

 

Tangible book value per common share at period end*

 

17.62

 

 

17.49

 

 

17.97

 

 

16.93

 

 

18.32

 

Market price at end of period

 

25.84

 

 

25.83

 

 

32.01

 

 

29.87

 

 

28.60

 

Shares outstanding at period end

 

31,406,220

 

 

31,364,973

 

 

24,025,762

 

 

24,028,120

 

 

20,529,124

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

31,378,364

 

 

31,309,458

 

 

24,027,189

 

 

22,861,795

 

 

20,507,451

 

Diluted

 

31,591,665

 

 

31,541,213

 

 

24,168,544

 

 

22,979,529

 

 

20,615,928

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

Total assets

$

7,882,130

 

$

8,003,254

 

$

6,446,521

 

$

6,372,872

 

$

6,112,241

 

Loans and leases

 

4,982,368

 

 

4,975,663

 

 

3,749,561

 

 

3,492,110

 

 

3,013,228

 

Total deposits

 

6,501,372

 

 

6,816,473

 

 

5,515,713

 

 

5,503,040

 

 

5,347,415

 

Total common equity

 

901,499

 

 

868,995

 

 

617,049

 

 

630,744

 

 

593,410

 

Total tangible common equity*

 

554,792

 

 

538,903

 

 

408,365

 

 

424,873

 

 

408,855

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

Annualized return on avg assets (ROA)

 

1.21

%

 

0.81

%

 

1.01

%

 

0.88

%

 

1.03

%

Annualized return on avg assets, operating*

 

1.36

%

 

1.36

%

 

1.07

%

 

1.23

%

 

1.08

%

Annualized pre-tax, pre-provision, operating*

 

1.81

%

 

1.78

%

 

1.38

%

 

1.63

%

 

1.36

%

Annualized return on avg common equity, operating*

 

11.91

%

 

12.48

%

 

11.14

%

 

12.46

%

 

11.12

%

Annualized return on avg tangible common equity, oper*

 

19.35

%

 

20.13

%

 

16.83

%

 

18.49

%

 

16.14

%

Average loans to average deposits

 

76.64

%

 

72.99

%

 

67.98

%

 

63.46

%

 

56.35

%

FTE Net Interest Margin*

 

3.82

%

 

3.69

%

 

3.37

%

 

3.50

%

 

3.09

%

Efficiency Ratio

 

59.02

%

 

58.15

%

 

61.42

%

 

60.70

%

 

59.87

%

Efficiency Ratio, operating*

 

53.87

%

 

53.32

%

 

59.34

%

 

54.55

%

 

57.66

%

*See reconciliation of Non-GAAP financial measures

 

 

 

 

 






 

CREDIT QUALITY

 

 

 

 

 

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

 

1.05

%

 

1.06

%

 

1.03

%

 

1.03

%

 

1.04

%

Nonperforming assets to tangible equity + ACL

 

3.57

%

 

3.73

%

 

3.76

%

 

6.01

%

 

6.41

%

Nonperforming assets to total loans + OREO

 

0.43

%

 

0.45

%

 

0.47

%

 

0.72

%

 

0.84

%

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

 

0.07

%

 

0.01

%

 

0.004

%

 

(0.04

%)

 

(0.04

%)

 

 

 

 

 

 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Assets

 

 

 

 

 

Cash and cash equivalents

$

194,050

 

$

333,491

 

$

145,315

 

$

163,841

 

$

356,771

 

Securities available for sale

 

1,199,103

 

 

1,249,791

 

 

1,257,101

 

 

1,379,410

 

 

1,489,247

 

Securities held to maturity

 

663,473

 

 

678,161

 

 

691,484

 

 

593,553

 

 

593,154

 

Other investments

 

35,725

 

 

34,423

 

 

33,944

 

 

31,060

 

 

22,588

 

Total investment securities

 

1,898,301

 

 

1,962,375

 

 

1,982,529

 

 

2,004,023

 

 

2,104,989

 

Loans held for sale

 

6,602

 

 

4,073

 

 

4,443

 

 

2,225

 

 

6,703

 

Total loans

 

5,010,925

 

 

4,969,776

 

 

3,774,157

 

 

3,719,388

 

 

3,124,924

 

Allowance for credit losses

 

(52,614

)

 

(52,450

)

 

(38,917

)

 

(38,356

)

 

(32,400

)

Loans, net

 

4,958,311

 

 

4,917,326

 

 

3,735,240

 

 

3,681,032

 

 

3,092,524

 

Premises and equipment

 

186,381

 

 

186,688

 

 

153,068

 

 

150,480

 

 

132,724

 

Other Real Estate Owned

 

5,588

 

 

5,066

 

 

4,832

 

 

10,328

 

 

1,985

 

Goodwill and other intangibles

 

346,104

 

 

347,777

 

 

214,890

 

 

214,708

 

 

184,323

 

Other assets

 

266,771

 

 

260,520

 

 

221,400

 

 

228,211

 

 

157,406

 

Total assets

$

7,862,108

 

$

8,017,316

 

$

6,461,717

 

$

6,454,848

 

$

6,037,425

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Non-interest bearing deposits

$

2,086,666

 

$

2,082,441

 

$

1,630,203

 

$

1,770,848

 

$

1,658,288

 

Interest-bearing deposits

 

4,405,601

 

 

4,585,515

 

 

3,864,201

 

 

3,780,450

 

 

3,647,909

 

Total deposits

 

6,492,267

 

 

6,667,956

 

 

5,494,404

 

 

5,551,298

 

 

5,306,197

 

Borrowings

 

280,000

 

 

250,000

 

 

130,100

 

 

90,000

 

 

-

 

Subordinated debentures

 

128,214

 

 

154,127

 

 

145,027

 

 

144,952

 

 

144,876

 

Other liabilities

 

62,181

 

 

48,806

 

 

45,523

 

 

47,127

 

 

25,900

 

Total liabilities

 

6,962,662

 

 

7,120,889

 

 

5,815,054

 

 

5,833,377

 

 

5,476,973

 

Total shareholders’ equity

 

899,446

 

 

896,427

 

 

646,663

 

 

621,471

 

 

560,452

 

Total liabilities and shareholders’ equity

$

7,862,108

 

$

8,017,316

 

$

6,461,717

 

$

6,454,848

 

$

6,037,425

 
















 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Three Months Ended

6/30/23

3/31/23

12/31/22

9/30/22

6/30/22

Interest Income:

 

 

 

 

 

Loans, including fees

$

68,057

 

$

64,264

$

45,583

 

$

41,456

 

$

34,058

 

Investment securities

 

10,815

 

 

11,707

 

11,251

 

 

11,598

 

 

11,152

 

Accretion of purchase accounting adjustments

 

6,533

 

 

3,469

 

1,086

 

 

818

 

 

605

 

Other interest income

 

789

 

 

898

 

3

 

 

2

 

 

32

 

Total interest income

 

86,194

 

 

80,338

 

57,923

 

 

53,874

 

 

45,847

 

Interest Expense:

 

 

 

 

 

Deposits

 

14,613

 

 

12,183

 

7,206

 

 

2,863

 

 

1,923

 

Borrowings

 

3,264

 

 

959

 

1,015

 

 

92

 

 

-

 

Subordinated debentures

 

2,138

 

 

2,176

 

1,946

 

 

1,886

 

 

1,841

 

Accretion of purchase accounting adjustments

 

149

 

 

94

 

(165

)

 

(115

)

 

(18

)

Total interest expense

 

20,164

 

 

15,412

 

10,002

 

 

4,726

 

 

3,746

 

Net interest income

 

66,030

 

 

64,926

 

47,921

 

 

49,148

 

 

42,101

 

Provision for credit losses

 

1,250

 

 

11,000

 

705

 

 

4,300

 

 

600

 

Net interest income after provision for credit losses

 

64,780

 

 

53,926

 

47,216

 

 

44,848

 

 

41,501

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

Service charges on deposit accounts

 

3,425

 

 

3,657

 

2,277

 

 

2,219

 

 

2,038

 

Mortgage Income

 

773

 

 

633

 

625

 

 

1,221

 

 

1,227

 

Interchange Fee Income

 

4,543

 

 

4,498

 

3,093

 

 

3,310

 

 

3,102

 

Gain (Loss) on securities, net

 

(48

)

 

-

 

-

 

 

1

 

 

(80

)

Financial Assistance Award/Bank Enterprise Award/RRP Grant

 

-

 

 

-

 

-

 

 

-

 

 

171

 

Bargain Purchase Gain and (Loss) on Sale of Land

 

-

 

 

-

 

-

 

 

-

 

 

165

 

BOLI income from death proceeds

 

-

 

 

-

 

-

 

 

-

 

 

-

 

Other charges and fees

 

3,730

 

 

3,824

 

2,136

 

 

2,271

 

 

2,041

 

Total non-interest income

 

12,423

 

 

12,612

 

8,131

 

 

9,022

 

 

8,664

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

23,315

 

 

23,572

 

19,934

 

 

19,099

 

 

17,237

 

Occupancy expense

 

5,041

 

 

5,296

 

4,305

 

 

3,826

 

 

3,828

 

FDIC/OCC premiums

 

758

 

 

670

 

514

 

 

496

 

 

546

 

Marketing

 

45

 

 

158

 

135

 

 

50

 

 

122

 

Amortization of core deposit intangibles

 

2,391

 

 

2,402

 

1,309

 

 

1,227

 

 

1,064

 

Other professional services

 

1,570

 

 

1,068

 

971

 

 

1,256

 

 

768

 

Acquisition and charter conversion charges

 

4,101

 

 

3,793

 

1,190

 

 

3,640

 

 

1,172

 

Other non-interest expense

 

9,678

 

 

8,711

 

6,682

 

 

6,309

 

 

6,218

 

Total Non-interest expense

 

46,899

 

 

45,670

 

35,040

 

 

35,903

 

 

30,955

 

Earnings before income taxes

 

30,304

 

 

20,868

 

20,307

 

 

17,967

 

 

19,210

 

Income tax expense

 

6,525

 

 

4,597

 

4,012

 

 

3,924

 

 

3,457

 

Net income available to common shareholders

$

23,779

 

$

16,271

$

16,295

 

$

14,043

 

$

15,753

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.75

 

$

0.52

$

0.67

 

$

0.61

 

$

0.76

 

Diluted earnings per common share, operating*

$

0.85

 

$

0.86

$

0.71

 

$

0.85

 

$

0.80

 

*See reconciliation of Non-GAAP financial measures











 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Year to Date

 

2023

 

2022

 

Interest Income:

 

 

 

 

 

Loans, including fees

 

$

132,113

 

 

$

65,878

 

 

PPP loan fee income

 

 

209

 

 

 

1,534

 

 

Investment securities

 

 

22,522

 

 

 

19,726

 

 

Accretion of purchase accounting adjustments

 

 

10,002

 

 

 

1,405

 

 

Other interest income


 

1,686

 


 

45

 


Total interest income

 

 

166,532

 

 

 

88,588

 

 

Interest Expense:

 

 

 

 

 

Deposits

 

 

26,796

 

 

 

4,225

 

 

Borrowings

 

 

4,223

 

 

 

-

 

 

Subordinated debentures

 

 

4,314

 

 

 

3,660

 

 

Amortization of purchase accounting adjustments


 

243

 


 

(37

)


Total interest expense


 

35,576

 


 

7,848

 


Net interest income

 

 

130,956

 

 

 

80,740

 

 

Provision for credit losses


 

12,250

 


 

600

 


Net interest income after provision for credit losses

 

 

118,706

 

 

 

80,140

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

Service charges on deposit accounts

 

 

7,082

 

 

 

4,078

 

 

Mortgage Income

 

 

1,406

 

 

 

2,457

 

 

Interchange Fee Income

 

 

9,041

 

 

 

6,299

 

 

Gain (loss) on securities, net

 

 

(48

)

 

 

(83

)

 

Financial Assistance Award/Bank Enterprise Award/RRP Grant

 

 

-

 

 

 

873

 

 

Bargain Purchase Gain and Loss on Sale of Fixed Assets


 

-

 

 

 

165

 


BOLI income from death proceeds


 

-

 

 

 

1,630

 


Other charges and fees


 

7,554

 


 

4,402

 


Total non-interest income

 

 

25,035

 

 

 

19,821

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

 

46,888

 

 

 

34,036

 

 

Occupancy expense

 

 

10,337

 

 

 

7,704

 

 

FDIC/OCC premiums

 

 

1,428

 

 

 

1,112

 

 

Marketing

 

 

203

 

 

 

208

 

 

Amortization of core deposit intangibles

 

 

4,793

 

 

 

2,128

 

 

Other professional services

 

 

2,638

 

 

 

1,331

 

 

Acquisition & charter conversion charges

 

 

7,894

 

 

 

1,580

 

 

Other non-interest expense


 

18,388

 


 

11,446

 


Total Non-interest expense


 

92,569

 


 

59,545

 


Earnings before income taxes

 

 

51,172

 

 

 

40,416

 

 

Income tax expense


 

11,122

 


 

7,834

 


Net income available to common shareholders


$

40,050

 


$

32,582

 


 

 

 

 


 

Diluted earnings per common share


$

1.27

 


$

1.57

 


Diluted earnings per common share, operating*


$

1.71

 


$

1.52

 


*See reconciliation of Non-GAAP financial measures






 






FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF LOANS

June 30,

2023

Percent

of Total

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Percent

of Total

Commercial, financial and agricultural

$

753,415

 

15.0

%

$

750,371

 

$

506,907

 

$

489,225

 

$

379,363

 

12.1

%

Real estate – construction

 

634,120

 

12.6

%

 

691,285

 

 

475,956

 

 

481,100

 

 

429,946

 

13.7

%

Real estate – commercial

 

2,251,710

 

44.9

%

 

2,181,384

 

 

1,626,066

 

 

1,595,944

 

 

1,319,821

 

42.1

%

Real estate – residential

 

1,286,343

 

25.6

%

 

1,262,244

 

 

1,094,204

 

 

1,082,488

 

 

932,268

 

29.8

%

Lease Financing Receivable

 

1,187

 

0.0

%

 

2,056

 

 

2,118

 

 

1,907

 

 

2,283

 

0.1

%

Obligations of States & subdivisions

 

31,137

 

0.6

%

 

31,652

 

 

26,143

 

 

25,757

 

 

20,784

 

0.7

%

Consumer

 

53,013

 

1.1

%

 

50,784

 

 

42,763

 

 

42,967

 

 

40,459

 

1.3

%

Loans held for sale

 

6,602

 

0.2

%

 

4,073

 

 

4,443

 

 

2,225

 

 

6,703

 

0.2

%

Total loans

$

5,017,527

 

100

%

$

4,973,849

 

$

3,778,600

 

$

3,721,613

 

$

3,131,627

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPOSITION OF DEPOSITS

June 30,

2023

Percent

of Total

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Percent

of Total

Non-interest bearing

$

2,086,666

 

32.1

%

$

2,082,441

 

$

1,630,203

 

$

1,770,848

 

$

1,658,288

 

31.3

%

NOW and other

 

2,014,420

 

31.0

%

 

2,095,599

 

 

1,769,699

 

 

1,786,213

 

 

1,790,980

 

33.8

%

Money Market/Savings

 

1,565,212

 

24.1

%

 

1,678,609

 

 

1,368,108

 

 

1,423,953

 

 

1,326,245

 

25.0

%

Time Deposits of less than $250,000

 

627,782

 

9.7

%

 

562,240

 

 

590,564

 

 

418,931

 

 

400,354

 

7.5

%

Time Deposits of $250,000 or more

 

198,187

 

3.1

%

 

249,067

 

 

135,830

 

 

151,353

 

 

130,330

 

2.4

%

Total Deposits

$

6,492,267

 

100

%

$

6,667,956

 

$

5,494,404

 

$

5,551,298

 

$

5,306,197

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

June 30,

2023

 

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

 

Nonaccrual loans

$

16,037

 

 

$

17,312

 

$

12,591

 

$

15,844

 

$

23,678

 

 

Loans past due 90 days and over

 

-

 

 

 

73

 

 

289

 

 

571

 

 

527

 

 

Total nonperforming loans

 

16,037

 

 

 

17,385

 

 

12,880

 

 

16,415

 

 

24,205

 

 

Other real estate owned

 

5,588

 

 

 

5,066

 

 

4,832

 

 

10,328

 

 

1,985

 

 

Total nonperforming assets

$

21,625

 


$

22,451

 

$

17,712

 

$

26,743

 

$

26,190

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

0.28

%

 

 

0.28

%

 

0.27

%

 

0.41

%

 

0.43

%

 

Nonperforming assets to total loans + OREO

 

0.43

%

 

 

0.45

%

 

0.47

%

 

0.72

%

 

0.84

%

 

ACL to nonperforming loans

 

328.08

%

 

 

301.70

%

 

302.15

%

 

233.66

%

 

133.86

%

 

ACL to total loans

 

1.05

%

 

 

1.06

%

 

1.03

%

 

1.03

%

 

1.04

%

 

 

 

 

 

 

 

 

 

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

$

837

 

 

$

142

 

$

39

 

$

(353

)

$

(329

)

 

Annualized QTD net chg-offs (recs) to loans

 

0.07

%

 

 

0.01

%

 

0.004

%

 

(0.04

%)

 

(0.04

%)

 


















 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(dollars in thousands)



















 
Yield Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Analysis June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022


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

$

1,473,166

$

7,867

2.14

%


$

1,565,623

$

8,758

2.24

%


$

1,522,953

$

8,312

2.18

%


$

1,612,066

$

8,723

2.16

%


$

1,634,679

$

8,372

2.05

%

Tax-exempt


















securities

 

470,742

 

3,946

3.35

%


 

462,718

 

3,946

3.41

%


 

453,651

 

3,934

3.47

%


 

479,168

 

3,849

3.21

%


 

492,405

 

3,721

3.02

%

Total investment


















securities

 

1,943,908

 

11,813

2.43

%


 

2,028,341

 

12,704

2.51

%


 

1,976,604

 

12,246

2.48

%


 

2,091,234

 

12,572

2.40

%


 

2,127,084

 

12,093

2.27

%

in other banks

 

93,464

 

789

3.38

%


 

146,663

 

898

2.45

%


 

72,910

 

3

0.02

%


 

143,867

 

2

0.01

%


 

432,851

 

32

0.03

%

Loans

 

4,982,368

 

74,590

5.99

%


 

4,975,663

 

67,734

5.45

%


 

3,749,561

 

46,670

4.98

%


 

3,492,110

 

42,274

4.84

%


 

3,013,228

 

34,663

4.60

%

Total Interest


















earning assets

 

7,019,740

 

87,192

4.97

%


 

7,150,667

 

81,336

4.55

%


 

5,799,075

 

58,919

4.06

%


 

5,727,211

 

54,848

3.83

%


 

5,573,163

 

46,788

3.36

%

Other assets

 

862,390




 

852,587




 

647,446




 

645,661




 

539,078



Total assets

$

7,882,130




$

8,003,254




$

6,446,521




$

6,372,872




$

6,112,241






















 
Interest-bearing


















liabilities:


















Deposits

$

4,465,800

$

14,762

1.32

%


$

4,738,076

$

12,277

1.04

%


$

3,801,632

$

7,042

0.74

%


$

3,777,059

$

2,748

0.29

%


$

3,706,711

$

1,905

0.21

%

Borrowed Funds

 

277,531

 

3,264

4.70

%


 

77,098

 

959

4.98

%


 

108,881

 

1,015

3.73

%


 

13,261

 

92

2.78

%


 

-

 

-

0.00

%

Subordinated


















debentures

 

145,418

 

2,138

5.88

%


 

155,084

 

2,176

5.61

%


 

144,985

 

1,946

5.37

%


 

144,910

 

1,886

5.21

%


 

144,834

 

1,841

5.08

%

Total interest


















bearing liabilities

 

4,888,749

 

20,164

1.65

%


 

4,970,258

 

15,412

1.24

%


 

4,055,498

 

10,002

0.99

%


 

3,935,230

 

4,726

0.48

%


 

3,851,545

 

3,746

0.39

%

Other liabilities

 

2,091,882




 

2,164,001




 

1,773,974




 

1,806,898




 

1,667,286



Shareholders' equity

 

901,499




 

868,995




 

617,049




 

630,744




 

593,410



Total liabilities and


















shareholders'


















equity

$

7,882,130




$

8,003,254




$

6,446,521




$

6,372,872




$

6,112,241






















 
Net interest


















income (FTE)*

$

67,028

3.32

%



$

65,924

3.31

%



$

48,917

3.08

%



$

50,122

3.35

%



$

43,042

2.97

%




















 
Net interest margin (FTE)*

3.82

%




3.69

%




3.37

%




3.50

%




3.09

%




















 
Core net interest


















margin*

3.43

%




3.47

%




3.29

%




3.44

%




3.04

%




















 
*See reconciliation for Non-GAAP financial measures
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

 

Three Months Ended

 

Per Common Share Data

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Book value per common share

$

28.64

 

$

28.58

 

$

26.92

 

$

25.86

 

$

27.30

 

Effect of intangible assets per share

 

11.02

 

 

11.09

 

 

8.95

 

 

8.93

 

 

8.98

 

Tangible book value per common share

$

17.62

 

$

17.49

 

$

17.97

 

$

16.93

 

$

18.32

 

 






Diluted earnings per share

$

0.75

 

$

0.52

 

$

0.68

 

$

0.61

 

$

0.76

 

Effect of acquisition and charter conversion charges

 

0.13

 

 

0.11

 

 

0.05

 

 

0.16

 

 

0.05

 

Tax on acquisition and charter conversion charges

 

(0.03

)

 

(0.02

)

 

(0.02

)

 

(0.05

)

 

(0.01

)

Initial provision for acquired loans

 

-

 

 

0.34

 

 

-

 

 

0.17

 

 

-

 

Tax on initial provision for acquired loans

 

-

 

 

(0.09

)

 

-

 

 

(0.04

)

 

-

 

Effect of bargain purchase gain and loss on sale of fixed assets

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Tax on bargain purchase gain and loss on sale of fixed assets

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Effect of Treasury awards

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

BOLI income from death proceeds

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Diluted earnings per share, operating

$

0.85

 

$

0.86

 

$

0.71

 

$

0.85

 

$

0.80

 


 

 

Year to Date

 


 

 

2023

 

2022

 

Diluted earnings per share

 

 

$

1.27

 

 

$

1.57

 

 

Effect of acquisition and charter conversion charges

 

 

0.25

 

 

 

0.08

 

 

Tax on acquisition and charter conversion charges

 

 

(0.06

)

 

 

(0.02

)

 

Effect of bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

 

(0.01

)

 

Tax on bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

 

-

 

 

Effect of Treasury awards

 

 

-

 

 

 

(0.04

)

 

Tax on Treasury awards

 

 

-

 

 

 

0.01

 

 

BOLI income from death proceeds

 

 

-

 

 

 

(0.08

)

 

Effect on Contributions related to Treasury awards

 

 

-

 

 

 

0.01

 

 

Tax on Contributions related to Treasury awards

 

 

-

 


 

-

 

 

Initial provision for acquired loans

 

 

0.34

 


 

-

 

 

Tax on initial provision for acquired loans

 

 

(0.09

)


 

-

 

 

Diluted earnings per share, operating

 

$

1.71

 


$

1.52

 

 


 

 

Year to Date

 


 

 

2023

 

2022

 

Net income available to common shareholders

 

 

$

40,050

 

 

$

32,582

 

 

Acquisition and charter conversion charges

 

 

7,894

 

 

 

1,580

 

 

Tax on acquisition and charter conversion charges

 

 

(1,997

)

 

 

(400

)

 

Bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

 

(165

)

 

Tax on bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

 

42

 

 

Treasury awards

 

 

-

 

 

 

(872

)

 

Tax on Treasury awards

 

 

-

 

 

 

220

 

 

BOLI income from death proceeds

 

 

-

 

 

 

(1,630

)

 

Contributions related to Treasury awards

 

 

-

 

 

 

165

 

 

Tax on Contributions related to Treasury awards

 

 

-

 


 

(42

)

 

Initial provision for acquired loans

 

 

10,727

 


 

-

 

 

Tax on initial provision for acquired loans

 

 

(2,714

)


 

-

 

 

Net earnings available to common shareholders, operating

 

$

53,960

 


$

31,480

 

 










 
 

 

 

Three Months Ended

Average Balance Sheet Data

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Total average assets

A

$

7,882,130

 

$

8,003,254

 

$

6,446,521

 

$

6,372,872

 

$

6,112,241

 

Total average earning assets

B

 

7,019,740

 

$

7,150,667

 

$

5,799,075

 

$

5,727,211

 

$

5,573,163

 

 

 

 

 

 

 

 

Common Equity

C

$

901,499

 

$

868,995

 

$

617,049

 

$

630,744

 

$

593,410

 

Less intangible assets

 

 

346,707

 

 

330,092

 

 

208,684

 

 

205,871

 

 

184,555

 

Total Tangible common equity

D

$

554,792

 

$

538,903

 

$

408,365

 

$

424,873

 

$

408,855

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Net Interest Income Fully Tax Equivalent

 

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Net interest income

E

$

66,030

 

$

64,926

 

$

47,921

 

$

49,148

 

$

42,101

 

Tax-exempt investment income

 

 

(2,948

)

 

(2,948

)

 

(2,939

)

 

(2,875

)

 

(2,780

)

Taxable investment income

 

 

3,946

 

 

3,946

 

 

3,934

 

 

3,849

 

 

3,721

 

Net Interest Income Fully Tax Equivalent

F

$

67,028

 

$

65,924

 

$

48,916

 

$

50,122

 

$

43,042

 

 

 

 

 

 

 

 

Annualized Net Interest Margin

E/B

 

3.76

%

 

3.63

%

 

3.31

%

 

3.43

%

 

3.02

%

Annualized Net Interest Margin, Fully Tax Equivalent

F/B

 

3.82

%

 

3.69

%

 

3.37

%

 

3.50

%

 

3.09

%

 

 

 

 

 

 

 

Total Interest Income, Fully Tax Equivalent

 

 

 

 

 

 

Total Interest Income

R

$

86,194

 

$

80,338

 

$

57,923

 

$

53,874

 

$

45,847

 

Tax-exempt investment income

 

 

(2,948

)

 

(2,948

)

 

(2,939

)

 

(2,875

)

 

(2,780

)

Taxable investment income

 

 

3,946

 

 

3,946

 

 

3,934

 

 

3,849

 

 

3,721

 

Total Interest Income, Fully Tax Equivalent

G

$

87,192

 

$

81,336

 

$

58,918

 

$

54,848

 

$

46,788

 

 

 

 

 

 

 

 

Yield on Average Earning Assets

R/B

 

4.91

%

 

4.49

%

 

4.00

%

 

3.76

%

 

3.29

%

Yield on Average Earning Assets, Fully Tax Equivalent

G/B

 

4.97

%

 

4.55

%

 

4.06

%

 

3.83

%

 

3.36

%

 

 

 

 

 

 

 

Interest Income Investment Securities, Fully Tax Equivalent

 

 

 

 

 

 

Interest Income Investment Securities

S

$

10,815

 

$

11,706

 

$

11,251

 

$

11,598

 

$

11,152

 

Tax-exempt investment income

 

 

(2,948

)

 

(2,948

)

 

(2,939

)

 

(2,875

)

 

(2,780

)

Taxable investment Income

 

 

3,946

 

 

3,946

 

 

3,934

 

 

3,849

 

 

3,721

 

Interest Income Investment Securities, Fully Tax Equivalent

H

$

11,813

 

$

12,704

 

$

12,246

 

$

12,572

 

$

12,093

 

 

 


 

 

 

 

Average Investment Securities

I

$

1,943,908

 

$

2,028,341

 

$

1,976,604

 

$

2,091,234

 

$

2,127,084

 

 

 


 

 

 

 

Yield on Investment Securities

S/I

 

2.23

%

 

2.31

%

 

2.28

%

 

2.22

%

 

2.10

%

Yield on Investment Securities, Fully Tax Equivalent

H/I

 

2.43

%

 

2.51

%

 

2.48

%

 

2.40

%

 

2.27

%

 


 

 

 

 

 

 

 

Three Months Ended

Core Net Interest Margin

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Net interest income (FTE)

 

$

67,028

 

$

65,924

 

$

48,916

 

$

50,122

 

$

43,042

 

Less purchase accounting adjustments

 

 

6,533

 

 

3,469

 

 

1,086

 

 

818

 

 

605

 

Net interest income, net of purchase accounting adj

J

$

60,495

 

$

62,455

 

$

47,830

 

$

49,304

 

$

42,437

 

 

 

 

 

 

 

 

Total average earning assets

 

$

7,019,740

 

$

7,150,667

 

$

5,799,075

 

$

5,727,211

 

$

5,573,163

 

Add average balance of loan valuation discount

 

 

38,306

 

 

42,945

 

 

10,928

 

 

2,681

 

 

3,085

 

Avg earning assets, excluding loan valuation discount

K

$

7,058,046

 

$

7,193,612

 

$

5,810,003

 

$

5,729,892

 

$

5,576,248

 

 

 

 

 

 

 

 

Core net interest margin

J/K

 

3.43

%

 

3.47

%

 

3.29

%

 

3.44

%

 

3.04

%

 

 

 

 

 

 

 

 

Three Months Ended

Efficiency Ratio

 

 

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Operating Expense

 

 

 

 

 

 

Total non-interest expense

 

$

46,899

 

$

45,670

 

$

35,040

 

$

35,903

 

$

30,955

 

Pre-tax non-operating expenses

 

 

(4,101

)

 

(3,793

)

 

(1,190

)

 

(3,641

)

 

(1,337

)

Adjusted Operating Expense

L

$

42,798

 

$

41,877

 

$

33,850

 

$

32,262

 

$

29,618

 

 

 

 

 

 

 

 

Operating Revenue

 

 

 

 

 

 

Net interest income, FTE

 

$

67,028

 

$

65,924

 

$

48,916

 

$

50,122

 

$

43,042

 

Total non-interest income

 

 

12,423

 

 

12,612

 

 

8,131

 

 

9,022

 

 

8,664

 

Pre-tax non-operating items

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(336

)

Adjusted Operating Revenue

M

$

79,451

 

$

78,536

 

$

57,047

 

$

59,144

 

$

51,370

 

 

 

 

 

 

 

 

Efficiency Ratio, operating

L/M 

 

53.87

%

 

53.32

%

 

59.34

%

 

54.55

%

 

57.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Return Ratios

 

 

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Net income available to common shareholders

N

$

23,779

 

$

16,271

 

$

16,295

 

$

14,043

 

$

15,753

 

Acquisition and charter conversion charges

 

 

4,101

 

 

3,793

 

 

1,190

 

 

3,641

 

 

1,172

 

Tax on acquisition and charter conversion charges

 

 

(1,037

)

 

(960

)

 

(301

)

 

(920

)

 

(296

)

Initial provision for acquired loans

 

 

-

 

 

10,727

 

 

-

 

 

3,855

 

 

Tax on initial provision for acquired loans

 

 

-

 

 

(2,714

)

 

-

 

 

(976

)

 

Bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(165

)

Tax on bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

-

 

 

-

 

 

-

 

 

41

 

Treasury awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(171

)

Tax on Treasury awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

43

 

Charitable contributions related to Treasury awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

165

 

Tax on charitable contributions related to Treasury awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(42

)

BOLI income from death proceeds

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Net earnings available to common shareholders, operating

O

$

26,843

 

$

27,117

 

$

17,184

 

$

19,643

 

$

16,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Pre-Tax Pre-Provision Operating Earnings

June 30,

2023

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Earnings before income taxes

P 

$

30,304

 

$

20,868

 

$

20,307

 

$

17,967

 

$

19,210

 

Acquisition and charter conversion charges

 

 

4,101

 

 

3,793

 

 

1,190

 

 

3,641

 

 

1,172

 

Provision for loan losses

 

 

1,250

 

 

11,000

 

 

705

 

 

4,300

 

 

600

 

Bargain purchase gain and loss on sale of fixed assets

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(165

)

Treasury Awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(171

)

Charitable contributions related to Treasury awards

 

 

-

 

 

-

 

 

-

 

 

-

 

 

165

 

BOLI income from death proceeds

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Pre-Tax, Pre-Provision Operating Earnings

Q 

$

35,655

 

$

35,661

 

$

22,202

 

$

25,908

 

$

20,811

 

 

 

 

 

 

 

 

Annualized return on avg assets

N/A 

 

1.21

%

 

0.81

%

 

1.01

%

 

0.88

%

 

1.03

%

Annualized return on avg assets, oper

O/A 

 

1.36

%

 

1.36

%

 

1.07

%

 

1.23

%

 

1.08

%

Annualized pre-tax, pre-provision, oper

Q/A 

 

1.81

%

 

1.78

%

 

1.38

%

 

1.63

%

 

1.36

%

Annualized return on avg common equity, oper

O/C 

 

11.91

%

 

12.48

%

 

11.14

%

 

12.46

%

 

11.12

%

Annualized return on avg tangible common equity, operating

O/D 

 

19.35

%

 

20.13

%

 

16.83

%

 

18.49

%

 

16.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Capital Ratios

June 30,

2023*

Mar 31,

2023

Dec 31,

2022

Sept 30,

2022

June 30,

2022

Common equity tier 1 (CET1) ratio

 

11.5

%

 

11.2

%

 

12.7

%

 

12.6

%

 

12.7

%

Leverage (Tier 1) ratio

 

9.1

%

 

8.8

%

 

9.3

%

 

9.3

%

 

8.6

%

Total risk based capital ratio

 

14.5

%

 

14.7

%

 

16.7

%

 

16.7

%

 

17.3

%

Tangible common equity ratio

 

7.4

%

 

7.2

%

 

6.9

%

 

6.5

%

 

6.4

%

*estimated






 

Contacts

M. Ray “Hoppy” Cole
Chief Executive Officer
Dee Dee Lowery
Chief Financial Officer
(601) 268-8998

Exhibit 99.2

 July 2023  NASDAQ: FBMS 
 
 2  Safe Harbor & Forward Looking Statements  ABOUT THE FIRST BANCSHARES, INC.  The First Bancshares, Inc. (“FBMS” or the “Company”), headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Contact: Chandra Kidd, Corporate Secretary.   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 presentation includes the following non-GAAP financial measures: Diluted Earnings Per Share, Operating; Net Income, Operating; Return on Average Assets (ROAA), Operating; Return on Average Tangible Common Equity (ROATCE), Operating; Efficiency Ratio, Operating; Net Interest Margin, Fully Tax Equivalent (FTE); Core Net Interest Margin, Fully Tax Equivalent (FTE); Pre-Tax Pre Provision Income, Operating; Non-Interest Income, Operating; Adjusted Operating Revenue; Adjusted Operating Expense; Tangible Common Equity; Tangible Book Value per Share; and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this presentation allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to their most comparable GAAP measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in the appendix to this presentation.   FORWARD LOOKING STATEMENTS  This communication contains 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 recent 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; (16) a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For any forward-looking statements made in this communication, any exhibits hereto or any related documents, the Company claims protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  
 
 0.91%  Cost of   Deposits   14.5%  Total Capital Ratio  5th  Largest Bank Headquartered in MS  $7.9bn  Total Assets  $22,845  Average Deposit Size (3)  3  Our Company  Company Overview  77%  Loans / Deposits  11.5%  CET1 Ratio   Data as of or for the three months ended 6/30/23  Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of 0.20% to 1.32% in Q2 ’23 divided by the change in average fed funds rate of 500 bps over the same period  Excludes public funds and ICS accounts   1.81%   PTPP ROAA,   Operating (1)  0.07%  NCOs / Total Loans, Annualized   1.05%  ACL / Total Loans  AL  FL  GA  LA  MS  Pensacola  Jacksonville  Tallahassee  Tampa  New Orleans  Baton Rouge  Jackson  Birmingham  Columbus  Orlando  Huntsville  Montgomery  Atlanta  Destin  St. Marys  Valdosta  Waycross  Gulfport  Mobile  Hattiesburg  Starkville  Savannah  Brunswick  Albany  Cape Coral  Pensacola  Jacksonville  Tallahassee  New Orleans  Baton Rouge  Jackson  Birmingham  Columbus  Orlando  Huntsville  Montgomery  Atlanta  Destin  St. Marys  Valdosta  Waycross  Gulfport  Mobile  Hattiesburg  Starkville  Savannah  Brunswick  Albany  Cape Coral  Macon  FBMS Branch (111)  FBMS LPO (5)  Scale  Capital  Credit  22%  IB Deposit Beta Through   the Rate Hike Cycle (2)  32%  DDA Deposits  Deposits  Liquidity  Profitability  Tampa 
 
 Q2 2023 Highlights   Key Highlights    Data as of or for the three months ended 6/30/23  Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  Excludes public funds and ICS accounts   Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of 0.20% to 1.32% in Q2 ’23 divided by the change in average fed funds rate of 500 bps over the same period  4  Financial Results   Diluted Earnings Per Share  Diluted Earnings Per Share, Operating (1)   Net Income ($000)  Net Income, Operating ($000) (1)  Reported ROAA  ROAA, Operating (1)  Reported ROATCE (1)  ROATCE, Operating (1)  Efficiency Ratio   Efficiency Ratio, Operating (1)  Net Interest Margin   Net Interest Margin, FTE (1)  Core Net Interest Margin, FTE (1)  Deposits   32% of deposits are demand, an increase from 31% in Q1 standalone  $0 of brokered deposits as of 6/30/23  Average deposit size of $23 thousand (2)  Uninsured deposits equal to 16.9% of total deposits   Cumulative IB deposit beta since Q4 ’21 of 22% (3)  Loans   Average loan size of ~$202 thousand   Q2 ’23 new loan production of $362.4 million with a blended yield of 7.52%  C&D loan concentration as a percentage of bank total capital: 74%  CRE loan concentration as a percentage of bank total capital: 208%  Capital  TCE/TA: 7.4%  Leverage: 9.1%  CET1: 11.5%  Total Risk-Based Capital: 14.5%  Credit   NPAs / Total Assets of 0.28% this quarter versus 0.28% in Q1 ‘23  NCOs / Total Loans of 0.07% this quarter versus 0.01% in Q1 ‘23  Allowance for Credit Losses  ACL / Loans remains stable at 1.05%, compared to 1.06% last quarter   Net Interest Margin   Expansion in Net Interest Margin, FTE (1) of 13 bps to 3.82%, driven by incremental purchase accounting accretion   Modest decline in Core Net Interest Margin, FTE (1) of 4 bps to 3.43%   $0.75  $0.85   $23,779  $26,843  1.21%  1.36%  17.1%  19.4%  59.0%  53.9%  3.76%  3.82%  3.43%  Q2 2023 
 
 Improving Geographic Diversification of our Balance Sheet  5  2015 Deposits by State  June 30, 2023 Deposits by State  2009 and 2015 data as of 6/30  2015 Loans by State  June 30, 2023 Loans by State  2009 Loans by State  2009 Deposits by State 
 
 6  Financial results 
 
 EPS  Net Income ($mm)  7  Pre-tax Pre Provision Income ($mm), Operating (1)  PTPP ROAA, Oper. (1)   Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  Historical Performance Over Time  Twelve Years of Record Earnings  $0.82  $1.16  $0.96  $1.19  $1.55  $1.57  $1.11  $1.62  $2.55  $2.52  1.62%  1.74%  1.75%  1.61%  1.42%  1.49%  $3.03  1.33%  1.24%  1.36%  1.63%  $3.10  1.38%  Operating Income  $5.4  1.78%  1.81% 
 
 Net Interest Income Over Time  3.74%  3.99%  3.59%  3.44%  3.70%  3.72%  3.71%  Net Interest Income ($mm)  NIM, FTE (1)  3.34%  3.83%  3.94%  3.63%  3.58%  3.51%  4.02%   Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  3.13%  3.14%  3.25%  8  3.64%  3.14%  2.78%  3.09%  3.50%  3.19%  3.37%  3.69%  3.82% 
 
 Historical Cost and Yield Analysis   9  Data as of or for the three months ended each respective quarter  Quarterly Yields & Costs (%) 
 
 10  NIM Impact for the Quarter  Drivers of Change Q1 ‘23 to Q2 ‘23   Data as of 6/30/23  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  Net Interest   Margin, FTE (1)  Core Net Interest   Margin, FTE (1) 
 
 Historical Profitability Trends  11   Data as of or for the three months ended each respective quarter  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”   Reported ROAA (%)  ROAA, Operating (%) (1)  Reported ROATCE (%) (1)  ROATCE, Operating (%) (1)  PTPP ROAA, Oper. (1)  1.36%  1.63%  1.38%  1.78%  1.81% 
 
 12  Historical Profitability Trends  Non-interest Income, Oper. / Adj. Operating Revenue (%) (1)  Non-interest Income Q2 ‘23 (%)  Efficiency Ratio, Operating (%) (1)  Adjusted Operating Expense / Average Assets (%) (1)   Data as of or for the three months ended each respective quarter   (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  
 
 13  Deposit AND Loan information 
 
 14  Deposit Composition Growth  Historical Deposit Composition   Cost of Total Deposits Over Time (%)   Dollars in millions unless otherwise noted   Annual data as of or for the twelve months ended each respective year; Quarterly data as of or for the three months ended each respective quarter  (1) Excludes public funds and ICS accounts   (2) Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of 0.20% to 1.32% in Q2 ’23 divided by the change in average fed funds rate of 500 bps over the same period  Q2 ’23 Deposit Composition  Deposit Portfolio Summary  Monthly  Quarterly  Deposits: $6.5B  Uninsured Deposits (1): 16.9%  Average Deposit Size (1): ~$23,000  Total Deposit Accounts (1): ~221,000   Commercial Accounts: ~36,000   Personal Accounts: ~185,000  Cumulative IB Deposit Beta   Since Q4 ’21 (2): 22% 
 
 15  Granular Loan Portfolio  Dollars in millions  Data as of 6/30/23  Size of our top 75 Relationships  Largest individual loan is $40.5 million total committed exposure  Total participations purchased are less than 3% of outstanding balances 
 
 16  Balanced Loan Portfolio    Data as of 6/30/23  (1) Excludes owner-occupied CRE   Loan Portfolio Mix  CRE (1) Exposure by Type   Granular loan portfolio, average loan size excluding PPP is ~$202 thousand  Top 25 loans represent ~8% of total portfolio  De Minimis consumer credit card loans ($1.4 million or 0.03% of total loans)  Limited energy exposure ($25.8 million or 0.5% of total loans)  De Minimis Shared National Credits (“SNCs”) of $17.5 million   C&D Exposure by Type 
 
 17  Office Exposure  Data as of 6/30/23; Dollars in millions   Professional Office by Geography  Office Portfolio Maturity  Office Exposure Highlights  Average professional office loan size   Non-Owner Occupied: $758 thousand   17.8% of the total office portfolio matures through 2025  Professional office space comprises 4.3% of total loans  Substandard office loans / total office loans: 4.7% 
 
 18  Loan Concentrations Over Time  C&D Loan Concentration Over Time  CRE Loan Concentration Over Time  Yearly data as of 12/31 each respective year; Q1 ‘23 data for the three months ended 3/31/23; Q2 ‘23 data for the three months ended 6/30/23  Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Concentration of a banking institution’s total risk-based capital, respectively 
 
 19  Asset Quality Over Time  NPAs / Loans + OREO (%)  NCOs / Average Loans (%)  ACL / NPLs (%)  ACL / Loans (%)  Yearly data as of or for the twelve months ended each respective year; Q1 ‘23 data for the three months ended 3/31/23; Q2 ‘23 data for the three months ended 6/30/23 
 
 20  History of Prudent Credit Culture  15-Year NCOs / Avg. Loans vs. Banking Industry (%)  Source: FDIC  Yearly data as of or for the twelve months ended each respective year  Note: FDIC data as of 12/31/22  0.07%  FBMS NCOs / Avg. Loans for the three months ended 6/30/23  
 
 21  Capital & Liquidity 
 
 22  Capital Position  TCE / TA (%) (1)  Leverage Ratio (%)  Total Risk Based Capital Ratio (%)  CET1 Ratio (%)   Data as of 12/31 of each year, respectively; Q1 ‘23 data for the three months ended 3/31/23; Q2 ’23 data as of or for the three months ended 6/30/23  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  
 
 23  Capital Position Including Unrealized Losses    Data as of or for the three months ended 6/30/23  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”   (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calculations   (3) Assumes AOCI adjustments related to market valuations on securities and related hedges as well as the fair value adjustment on HTM securities are included for regulatory capital calculations   Reflected above is the hypothetical impact on capital if the mark on Accumulated Other Comprehensive Income (AOCI) Losses (2) and AOCI + Held-to-Maturity (HTM) (3) were included in the regulatory capital calculations   Neither scenario is currently included, nor required to be included in the Company’s regulatory capital ratios   Regulatory Capital & Adjusted Capital as of 6/30/23 
 
 24  Capital Appreciation & Returns to Shareholders  Tangible Book Value per Share (1) ($)  Dividends Declared per Share ($)  Shares Repurchased (%) (3)   Data as of 12/31 of each year, respectively; Q2 ’23 data as of or for the three months ended 6/30/23  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”   (2) Based upon dividends paid in Q1 ’23 and Q2 ’23 and annualized thereafter (3) Represents shares repurchased in period stated divided by common shares outstanding at prior period end  Dollars Returned to Shareholders ($M)  Dividend Growth CAGR Since 2018: 39%  TBVPS Excluding AOCI  (2) 
 
 25  Liquidity Position   Data as of 12/31 of each year, respectively; Q2 ’23 data as of or for the three months ended 6/30/23  (1) Letters of Credit   Gross Loans / Deposits (%)  Funding Sources  Liquidity Highlights   As of June 30, the Company’s liquidity ratio was 16.7%, as compared to the internal liquidity policy guidelines of 10% minimum   Other liquidity ratios reviewed include the following along with policy guidelines:   (1) 
 
 26  Securities Portfolio Composition   Dollars in millions  Data as of or for the three months ended 6/30/23  Available-For-Sale  Portfolio Summary  Held-To-Maturity  $2,020M Book Value  2.09% Book Yield  ($157.6M) Unrealized Loss  5.8 Year Average Life  4.7 Year Effective Duration  67%/33% (AFS/HTM)  Principal Cash Flow Schedule  $233 Million Maturing by Q2 ‘24  No Collateralized Loan Obligation (CLO) securities within the Investment Portfolio 
 
 27  Appendix 
 
 Historical Financials  28   Dollars in thousands, except for per share data    Annual data as of or for the twelve months ended each respective year; quarterly data as of or for the three months ended each respective quarter  (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”  
 
 29  Non-GAAP Reconciliation 
 
 30  Non-GAAP Reconciliation (cont.) 
 
 31  Non-GAAP Reconciliation (cont.) 
 
 32  Non-GAAP Reconciliation (cont.) 
 
 33  Non-GAAP Reconciliation (cont.) 
 
 34  Non-GAAP Reconciliation (cont.) 
 

v3.23.2
Document and Entity Information
Jul. 26, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jul. 26, 2023
Entity Registrant Name The First Bancshares, Inc.
Entity Incorporation, State or Country Code MS
Entity File Number 000-22507
Entity Tax Identification Number 64-0862173
Entity Address, Address Line One 6480 U.S. Hwy 98 West
Entity Address, City or Town Hattiesburg
Entity Address, State or Province MS
Entity Address, Postal Zip Code 39402
City Area Code 601
Local Phone Number 268-8998
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000947559
Title of 12(b) Security Common Stock
Trading Symbol FBMS
Security Exchange Name NASDAQ
First Bancshares (NASDAQ:FBMS)
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