EX-99.1 5 fbmsex-991q12024.htm EX-99.1 Document

Exhibit 99.1
The First Bancshares, Inc. Reports Results for First Quarter ended March 31, 2024
HATTIESBURG, Miss.--(BUSINESS WIRE)--April 24, 2024--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 March 31, 2024.
Highlights for the Quarter:
•Net income available to common shareholders totaled $20.6 million for the quarter ended March 31, 2024, representing an increase of 86.7% when compared to $11.0 million for the quarter ended December 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) increased $1.9 million, or 10.1% to $20.6 million for the quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023.
•Total deposits increased $247.5 million for the quarter ended March 31, 2024 representing an increase of 3.8% as compared to the quarter ended December 31, 2023.
•Annualized net interest margin decreased 8 basis points to 3.20% for the quarter ended March 31, 2024 from 3.28% for the quarter ended December 31, 2023 due to the reduction of accretion income as well as increased deposit cost.
•Core net interest margin decreased 4 basis points during the quarter ended March 31, 2024 from 3.14% to 3.10%.
•Cost of deposits averaged 178 basis points for the first quarter of 2024 compared to 154 basis points for the fourth quarter 2023.
•Total loans decreased $30.1 million for the quarter ended March 31, 2024, representing net decrease of 2.3% on an annualized basis, as compared to the quarter ended December 31, 2023. SBA loan sales represented $23.1 million of the decrease.
•Past due loans to total loans were $13.4 million or 0.26% for the quarter ending March 31, 2024, compared to $11.7 million, or 0.23% for the quarter ending December 31, 2023, and $11.6 million, or 0.23% for the quarter ending March 31, 2023.
•Annualized quarter-to-date net charge-offs to total loans were $0.1 million, or 0.01% for the quarter ending March 31, 2024, compared to $0.8 million, or 0.06% for the quarter ending December 31, 2023 and $0.1 million, or 0.01% for the quarter ending March 31, 2023.
•Nonperforming assets to total assets were $18.4 million, or 0.23% for the quarter ending March 31, 2024, compared to $20.2 million, or 0.25% for the quarter ending December 31, 2023, and $22.5 million, 0.28% for the quarter ending March 31, 2023.
•For additional information, see the investor presentation filed and available under presentations and press releases included in the investor relations section of the Company's website: www.thefirstbank.com.
M. Ray “Hoppy” Cole, Jr., President and Chief Executive Officer, commented, “We are pleased with our overall results for the quarter. Operating income increased 10% quarter over quarter due to reduced operating expenses and some stabilization in the margin. Total deposits increased $42 million or 0.6% year over year and although loans were down at quarter end, pipelines actually grew and are in a strong position for this point in the year. Credit quality remains stable with low past dues and low non-performing assets. All in all, a solid quarter and good start to the year.”


Quarterly Earnings
Net income available to common shareholders totaled $20.6 million for the quarter ended March 31, 2024, an increase of $9.6 million, or 86.7%, when compared to $11.0 million for the quarter ended December 31, 2023.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.9 million, or 10.1%, to $20.6 million for quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023. The increase in net earnings is attributable to a decrease in non-interest expense of $1.0 million and a decrease in provision for credit losses of $1.3 million.
The Company recorded no provision for credit losses for the quarter ended March 31, 2024 and $1.3 million for the quarter ended December 31, 2023.
Earnings Per Share
For the first quarter of 2024, diluted earnings per share were $0.65 compared to $0.35 for the fourth quarter of 2023 and $0.52 for the first quarter of 2023.
Diluted earnings per share, operating (non-GAAP) were $0.65 for the first quarter of 2024 compared to $0.59 for the fourth quarter of 2023 and $0.86 for the first quarter of 2023.
Balance Sheet
Consolidated assets decreased $35.6 million to $7.964 billion at March 31, 2024 from $7.999 billion at December 31, 2023. Loans decreased $30.1 million, or 0.6%, for the quarterly comparison.
Total loans were $5.140 billion for the quarter ended March 31, 2024, as compared to $5.170 billion for the quarter ended December 31, 2023, and $4.970 billion for the quarter ended March 31, 2023, representing a decrease of $30.1 million, or 0.6%, for the sequential quarter comparison, and an increase of $170.2 million, or 3.4%, for the prior year quarterly comparison.
Total deposits were $6.710 billion for the quarter ended March 31, 2024, as compared to $6.463 billion for the quarter ended December 31, 2023, and $6.668 billion for the quarter ended March 31, 2023, representing an increase of $247.5 million, or 3.8%, for the sequential quarter comparison, and an increase of $42.4 million, or 0.6%, for the prior year quarterly comparison.
Deposits increased $247.5 million, or 3.8% for the prior quarter comparison. Excluding an increase in public funds of $256.9 million, deposits decreased $9.4 million, or 0.2% for the prior quarter comparison.
Book value per share increased to $30.45 at March 31, 2024 from $30.22 at December 31, 2023.
Asset Quality
Nonperforming assets totaled $18.4 million at March 31, 2024, a decrease of $1.8 million compared to $20.2 million at December 31, 2023 and a decrease of $4.1 million compared to $22.5 million at March 31, 2023.
Nonaccrual loans totaled $11.0 million, an increase of $0.3 million as compared to December 31, 2023 and a decrease of $6.4 million as compared to March 31, 2023.
The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at March 31, 2024, 1.05% at December 31, 2023 and 1.06% at March 31, 2023. The ratio of annualized net charge-offs to total loans was 0.01% for the quarter ended March 31, 2024 compared to 0.06% for the quarter ended December 31, 2023 and 0.01% for the quarter ended March 31, 2023.
First Quarter 2024 vs Fourth Quarter 2023 Earnings Comparison
Net income available to common shareholders for the first quarter of 2024 increased $9.6 million to $20.6 million compared to $11.0 million for the fourth 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) increased $1.9 million, or 10.1%, to $20.6 million for quarter ended March 31, 2024 as compared to $18.7 million for the quarter ended December 31, 2023. The increase in net earnings is attributable to a decrease in non-interest expense of $1.0 million and a decrease in provision for credit losses of $1.3 million.
Net interest income for the first quarter of 2024 was $57.3 million as compared to $57.7 million for the fourth quarter of 2023, a decrease of $0.3 million. The decrease was largely due to the decrease in accretion of purchase accounting adjustments of $0.6 million as well as increased interest expense of $3.3 million partially offset by an increase in interest income of $2.9 million.
First quarter 2024 net interest margin of 3.20% included 15 basis points related to purchase accounting adjustments compared to 3.28% for the fourth quarter in 2023, which included 19 basis points related to purchase accounting adjustments.
Core net interest margin decreased 4 basis points to 3.10% for the first quarter of 2024 from 3.14% for the fourth quarter of 2023.
Investment securities totaled $1.745 billion, or 21.9% of total assets at March 31, 2024, compared to $1.735 billion, or 21.7% of total assets at December 31, 2023. The average balance of investment securities decreased $11.0 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 11 basis points to 2.48% from 2.37% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $127.6 million at March 31, 2024 as compared to a net unrealized loss of $121.9 million at December 31, 2023.
The average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 5.04% to 5.12%. Interest expense on average interest bearing liabilities increased 18 basis points from 2.47% for the fourth quarter of 2023 to 2.65% for the first quarter of 2024.
Cost of all deposits averaged 178 basis points for the first quarter of 2024 compared to 154 basis points for the fourth quarter of 2023. This increase was a result of rising interest rates and competition for deposits.
Non-interest income increased $10.3 million from $2.3 million in the fourth quarter of 2023 to $12.7 million in the first quarter of 2024, primarily attributable to a $9.7 million loss on sales of available for sale investment securities in the fourth quarter for 2023.
Non-interest expense for the first quarter of 2024 was $43.4 million compared to $44.4 million for the fourth quarter of 2023, a decrease of $1.0 million.
First Quarter 2024 vs. First Quarter 2023 Earnings Comparison
Net income available to common shareholders for the first quarter of 2024 totaled $20.6 million compared to $16.3 million for the first quarter of 2023, an increase of $4.4 million or 26.8%.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $6.5 million, or 23.9%, to $20.6 million for quarter ended March 31, 2024, as compared to $27.1 million for the quarter ended March 31, 2023. This decrease is attributable to a decrease in net interest income of $7.6 million.
Net interest income for the first quarter of 2024 was $57.3 million, a decrease of $7.6 million or 11.7% when compared to the first quarter of 2023. Fully tax equivalent (“FTE”) net interest income (non-GAAP) totaled $58.3 million and $65.9 million for the first quarter of 2024 and 2023, respectively. Purchase accounting adjustments increased $1.0 million for the first quarter comparisons. The decrease was largely due to increased interest expense due to increased competition for deposits.
First quarter of 2024 net interest margin was 3.20%, which included 15 basis points related to purchase accounting adjustments compared to 3.63% for the same quarter in 2023, which included 19 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 38 basis points in prior year quarterly comparison primarily due to an increase in rates on interest bearing liabilities.
Non-interest income increased $0.1 million for the first quarter of 2024 as compared to the first quarter of 2023.


First quarter 2024 non-interest expense was $43.4 million, a decrease of $2.2 million, or 4.9% as compared to the first quarter of 2023. Excluding acquisition charges, non-interest expense increased $1.5 million of which salaries and employee benefits increased $ 1.0 million.
Investment securities totaled $1.745 billion, or 21.9% of total assets at March 31, 2024, compared to $1.962 billion, or 24.5% of total assets at March 31, 2023. For the first quarter of 2024 compared to the first quarter of 2023, the average balance of investment securities decreased $217.3 million. The average tax equivalent yield on investment securities (non-GAAP) increased 17 basis points to 2.48% from 2.31% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $127.6 million at March 31, 2024 as compared to a net unrealized loss of $137.6 million at March 31, 2023.
The average yield on all earning assets increased 63 basis points in prior year quarterly comparison, from 4.49% for the first quarter of 2023 to 5.12% for the first quarter of 2024. Interest expense on average interest bearing liabilities increased 141 basis points from 1.24% for the first quarter of 2023 to 2.65% for the first quarter of 2024.
Cost of all deposits averaged 178 basis points for the first quarter of 2024 compared to 72 basis points for the first quarter of 2023.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.25 per share to be paid on its common stock on May 23, 2024 to shareholders of record as of the close of business on May 7, 2024.
Conference Call
The Company will host a conference call for analysts and investors to discuss the Company’s financial results at 10:00 a.m. Central Time on Thursday, April 25, 2024. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BIbc177289ae6b45cc8d010c66fc8b81d9. 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. Fully-tax equivalent, or "FTE", financial metrics are measures used by management to evaluate the corresponding GAAP financial metrics in a manner that takes into account the tax benefits associated with income sources that are exempt from state or federal taxes. Core net interest margin is used by management to measure the net return on earnings assets, which includes investment securities, loans, and leases but excludes certain income and expense items that the Company's management considers to be non-core/adjusted in nature. Similarly, "operating" financial metrics, including operating efficiency ratio and operating earnings per share, are used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Management uses "tangible" financial metrics, including tangible common equity and tangible book value, to measure the value of the Company's assets net of intangible assets, such as goodwill. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be


an alternative to net income, earnings per share, net interest income, book value, net interest margin, common equity, net earnings available to common shareholders, diluted earnings per share, efficiency ratio, average yield on investment securities, average yield on all earning assets, or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).
Forward Looking Statements
This news release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential,” “positioned” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risk and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) prevailing, or changes in, economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations, including the effects of declines in the real estate market, high unemployment rates, inflationary pressure, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (3) interest rate risk, including the effects of rising interest rates; (4) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (5) changes in applicable laws, rules, or regulations; (6) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (7) changes in management’s plans for the future; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) changes in accounting principles, policies, or guidelines; (11) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs related to the COVID-19 pandemic and related variants; (12) higher inflation and its impacts; (13) significant turbulence or disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (14) potential impacts of the adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (15) the effects of war or other conflicts including the impacts relating to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas, and (16) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the SEC, which are available on the SEC’s website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.



THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands except per share data)
EARNINGS DATAQuarter
 Ended
 3/31/24		Quarter
 Ended
 12/31/23		Quarter
 Ended
 9/30/23		Quarter
 Ended
 6/30/23		Quarter
 Ended
 3/31/23
Total Interest Income$91,663 $88,720 $85,681 $86,194 $80,338 
Total Interest Expense34,322 31,055 24,977 20,164 15,412 
Net Interest Income57,341 57,665 60,704 66,030 64,926 
Net Interest Income excluding PPP Fee Income57,340 57,664 60,703 66,029 64,718 
FTE net interest income*58,339 58,651 61,696 67,028 65,924 
Provision for credit losses— 1,250 1,000 1,250 11,000 
Non-interest income12,679 2,346 19,324 12,423 12,612 
Non-interest expense43,425 44,433 47,724 46,899 45,670 
Earnings before income taxes26,595 14,328 31,304 30,304 20,868 
Income tax expense5,967 3,281 6,944 6,525 4,597 
Net income available to common shareholders$20,628 $11,047 $24,360 $23,779 $16,271 
     
PER COMMON SHARE DATA    
Basic earnings per share$0.66 $0.35 $0.78 $0.76 $0.52 
Diluted earnings per share0.65 0.35 0.77 0.75 0.52 
Diluted earnings per share, operating*0.65 0.59 0.76 0.85 0.86 
Quarterly dividends per share0.25 0.24 0.23 0.22 0.21 
Book value per common share at end of period30.45 30.22 28.57 28.64 28.58 
Tangible book value per common share at period end*19.70 19.35 17.62 17.62 17.49 
Market price at end of period25.95 29.33 26.97 25.84 25.83 
Shares outstanding at period end31,528,748 31,399,803 31,404,231 31,406,220 31,364,973 
Weighted average shares outstanding:
Basic31,475,254 31,401,612 31,405,439 31,378,364 31,309,458 
Diluted31,630,745 31,587,506 31,609,564 31,591,665 31,541,213 
     
AVERAGE BALANCE SHEET DATA    
Total assets$8,005,574 $7,917,303 $7,873,345 $7,882,130 $8,003,254 
Loans and leases5,158,071 5,145,228 5,038,928 4,982,368 4,975,663 
Total deposits6,599,287 6,440,774 6,466,141 6,501,372 6,816,473 
Total common equity952,708 901,530 905,070 901,499 868,995 
Total tangible common equity*612,470 558,889 560,071 554,792 538,903 
     
SELECTED RATIOS    
Annualized return on avg assets (ROA)1.03 %0.56 %1.24 %1.21 %0.81 %
Annualized return on avg assets, operating*1.03 %0.95 %1.22 %1.36 %1.36 %
Annualized pre-tax, pre-provision, operating*1.33 %1.31 %1.62 %1.81 %1.78 %
Annualized return on avg common equity, operating*8.66 %8.32 %10.63 %11.91 %12.48 %
Annualized return on avg tangible common equity, operating*13.48 %13.41 %17.17 %19.35 %20.13 %
Average loans to average deposits78.16 %79.89 %77.93 %76.64 %72.99 %
FTE Net Interest Margin*3.26 %3.33 %3.52 %3.82 %3.69 %
Efficiency Ratio61.15 %72.84 %58.90 %59.02 %58.15 %
Efficiency Ratio, operating*61.14 %62.00 %56.06 %53.87 %53.32 %
*See reconciliation of non-GAAP financial measures    
CREDIT QUALITY    
Allowance for credit losses (ACL) as a % of total loans1.05 %1.05 %1.05 %1.05 %1.06 %
Nonperforming assets to tangible equity + ACL2.72 %3.05 %3.69 %3.57 %3.73 %
Nonperforming assets to total loans + OREO0.36 %0.39 %0.44 %0.43 %0.45 %
Annualized QTD net charge-offs (recoveries) to total loans0.006 %0.061 %0.004 %0.070 %0.010 %
     



THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEETMarch 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023
Assets
Cash and cash equivalents$339,964 $355,147 $197,632 $194,050 $333,491 
Securities available for sale1,088,568 1,042,365 1,141,971 1,199,103 1,249,791 
Securities held to maturity622,574 654,539 658,524 663,473 678,161 
Other investments34,094 37,754 35,872 35,725 34,423 
Total investment securities1,745,236 1,734,658 1,836,367 1,898,301 1,962,375 
Loans held for sale4,241 2,914 5,960 6,602 4,073 
Total loans5,139,952 5,170,042 5,089,800 5,010,925 4,969,776 
Allowance for credit losses(53,959)(54,032)(53,565)(52,614)(52,450)
Loans, net5,085,993 5,116,010 5,036,235 4,958,311 4,917,326 
Premises and equipment181,194 182,162 183,740 186,381 186,688 
Other Real Estate Owned6,743 8,320 4,920 5,588 5,066 
Goodwill and other intangibles338,946 341,332 343,869 346,104 347,777 
Other assets261,442 258,802 275,562 266,771 260,520 
Total assets$7,963,759 $7,999,345 $7,884,285 $7,862,108 $8,017,316 
      
Liabilities and Shareholders’ Equity     
Non-interest bearing deposits$1,836,952 $1,849,013 $1,967,661 $2,086,666 $2,082,441 
Interest-bearing deposits4,873,403 4,613,859 4,512,364 4,405,601 4,585,515 
Total deposits6,710,355 6,462,872 6,480,025 6,492,267 6,667,956 
Borrowings110,000 390,000 302,000 280,000 250,000 
Subordinated debentures123,472 123,386 128,300 128,214 154,127 
Other liabilities60,020 74,053 76,739 62,181 48,806 
Total liabilities7,003,847 7,050,311 6,987,064 6,962,662 7,120,889 
Total shareholders’ equity959,912 949,034 897,221 899,446 896,427 
Total liabilities and shareholders’ equity$7,963,759 $7,999,345 $7,884,285 $7,862,108 $8,017,316 



THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENTThree Months Ended
3/31/202412/31/20239/30/20236/30/20233/31/2023
Interest Income:
Loans, including fees$76,172 $74,357 $70,349 $68,057 $64,264 
Investment securities11,248 10,803 10,614 10,815 11,707 
Accretion of purchase accounting adjustments2,627 3,235 4,277 6,533 3,469 
Other interest income1,616 325 441 789 898 
Total interest income91,663 88,720 85,681 86,194 80,338 
Interest Expense:
Deposits29,182 24,489 19,314 14,613 12,183 
Borrowings3,022 4,500 3,556 3,264 959 
Subordinated debentures1,887 1,807 1,849 2,138 2,176 
Accretion of purchase accounting adjustments231 259 258 149 94 
Total interest expense34,322 31,055 24,977 20,164 15,412 
Net interest income57,341 57,665 60,704 66,030 64,926 
Provision for credit losses— 1,250 1,000 1,250 11,000 
Net interest income after provision for credit losses57,341 56,415 59,704 64,780 53,926 
      
Non-interest Income:     
Service charges on deposit accounts3,367 3,447 3,646 3,425 3,657 
Mortgage Income704 582 878 773 633 
Interchange Fee Income4,195 4,593 5,280 4,543 4,498 
Gain (Loss) on securities, net(48)(9,670)2 (48)— 
Treasury Awards— — 6,197 — — 
Loss on sale of premises and equipment— (524)(104)— — 
Other charges and fees4,461 3,918 3,425 3,730 3,824 
Total non-interest income12,679 2,346 19,324 12,423 12,612 
Non-interest expense:
Salaries and employee benefits24,508 23,717 22,807 23,315 23,572 
Occupancy expense5,714 5,688 5,343 5,041 5,296 
FDIC/OCC premiums1,008 1,263 1,158 758 670 
Marketing139 71 559 45 158 
Amortization of core deposit intangibles2,385 2,385 2,385 2,391 2,402 
Other professional services1,833 2,309 1,499 1,570 1,068 
Acquisition and charter conversion charges8 593 588 4,101 3,793 
Other non-interest expense7,830 8,407 13,385 9,678 8,711 
Total non-interest expense43,425 44,433 47,724 46,899 45,670 
Earnings before income taxes26,595 14,328 31,304 30,304 20,868 
Income tax expense5,967 3,281 6,944 6,525 4,597 
Net income available to common shareholders$20,628 $11,047 $24,360 $23,779 $16,271 
Diluted earnings per common share$0.65 $0.35 $0.77 $0.75 $0.52 
Diluted earnings per common share, operating*$0.65 $0.59 $0.76 $0.85 $0.86 
*See reconciliation of non-GAAP financial measures


THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENTYear to Date
20242023
Interest Income:
Loans, including fees$76,171 $64,056 
PPP loan fee income1 208 
Investment securities11,248 11,707 
Accretion of purchase accounting adjustments2,627 3,469 
Other interest income1,616 898 
Total interest income91,663 80,338 
Interest Expense:
Deposits29,182 12,183 
Borrowings3,022 959 
Subordinated debentures1,887 2,176 
Amortization of purchase accounting adjustments231 94 
Total interest expense34,322 15,412 
Net interest income57,341 64,926 
Provision for credit losses— 11,000 
Net interest income after provision for credit losses57,341 53,926 
Non-interest Income:  
Service charges on deposit accounts3,367 3,657 
Mortgage Income704 633 
Interchange Fee Income4,195 4,498 
Gain (loss) on securities, net(48)— 
Bargain Purchase Gain and gain on sale of premises and equipment— (1)
Other charges and fees4,461 3,825 
Total non-interest income12,679 12,612 
   
Non-interest expense:  
Salaries and employee benefits24,508 23,571 
Occupancy expense5,714 5,296 
FDIC/OCC premiums1,008 670 
Marketing139 158 
Amortization of core deposit intangibles2,385 2,402 
Other professional services1,833 1,068 
Acquisition & charter conversion charges8 3,793 
Other non-interest expense7,830 8,712 
Total non-interest expense43,425 45,670 
Earnings before income taxes26,595 20,868 
Income tax expense5,967 4,597 
Net income available to common shareholders20,628 16,271 
   
Diluted earnings per common share$0.65 $0.52 
Diluted earnings per common share, operating*$0.65 $0.86 
*See reconciliation of non-GAAP financial measures


THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands)
COMPOSITION OF LOANSMarch 31,
2024		Percent
 of Total		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		Percent
 of Total
Commercial, financial and agricultural$737,511 14.3 %$765,422 $753,120 $753,415 $750,371 15.1 %
Real estate – construction633,804 12.3 %629,660 633,682 634,120 691,285 13.9 %
Real estate – commercial2,356,552 45.8 %2,377,864 2,317,666 2,251,710 2,181,384 43.9 %
Real estate – residential1,330,589 25.9 %1,311,395 1,298,980 1,286,343 1,262,244 25.4 %
Lease Financing Receivable1,794 — %1,292 1,548 1,187 2,056 — %
Obligations of States & subdivisions28,541 0.6 %29,316 29,650 31,137 31,652 0.6 %
Consumer51,161 1.0 %55,094 55,154 53,013 50,784 1.0 %
Loans held for sale4,241 0.1 %2,914 5,960 6,602 4,073 0.1 %
Total loans$5,144,193 100 %$5,172,957 $5,095,760 $5,017,527 $4,973,849 100.0 %
        
COMPOSITION OF DEPOSITSMarch 31,
2024		Percent
 of Total		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		Percent
 of Total
Non-interest bearing$1,836,952 27.4 %$1,849,013 $1,967,661 $2,086,666 $2,082,441 31.2 %
NOW and other2,135,343 31.7 %1,914,792 1,962,383 2,014,420 2,095,599 31.4 %
Money Market/Savings1,656,688 24.7 %1,623,311 1,532,822 1,565,212 1,678,609 25.2 %
Time Deposits of less than $250,000816,153 12.2 %813,877 766,553 627,782 562,240 8.4 %
Time Deposits of $250,000 or more265,219 4.0 %261,879 250,606 198,187 249,067 3.8 %
Total Deposits$6,710,355 100 %$6,462,872 $6,480,025 $6,492,267 $6,667,956 100.0 %
        
ASSET QUALITY DATAMarch 31,
2024		 December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		 
Nonaccrual loans$10,961  $10,691 $17,423 $16,037 $17,312  
Loans past due 90 days and over687 1,163 53 — 73  
Total nonperforming loans11,648  11,854 17,476 16,037 17,385  
Other real estate owned6,743  8,320 4,920 5,588 5,066  
Total nonperforming assets$18,391  $20,174 $22,396 $21,625 $22,451  
  
Nonperforming assets to total assets0.23 % 0.25 %0.28 %0.28 %0.28 % 
Nonperforming assets to total loans + OREO0.36 % 0.39 %0.44 %0.43 %0.45 % 
ACL to nonperforming loans463.25 % 455.81 %306.51 %328.08 %301.70 % 
ACL to total loans1.05 % 1.05 %1.05 %1.05 %1.06 % 
  
Qtr-to-date net charge-offs (recoveries)$73  $783 $49 $837 $142  
Annualized QTD net chg-offs (recs) to loans0.006 % 0.061 %0.004 %0.070 %0.010 % 


THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
 
YieldThree Months EndedThree Months EndedThree Months EndedThree Months EndedThree Months Ended
AnalysisMarch 31, 2024December 31, 2023September 30, 2023June 30, 2023March 31, 2023
TaxTaxTaxTaxTax
AvgEquivalentYield/AvgEquivalentYield/AvgEquivalentYield/AvgEquivalentYield/AvgEquivalentYield/
BalanceinterestRateBalanceinterestRateBalanceinterestRateBalanceinterestRateBalanceinterestRate
Taxable securities$1,342,644 $8,303 2.47 %$1,375,695 $7,892 2.29 %$1,419,343 $7,685 2.17 %$1,473,166 $7,867 2.14 %$1,565,623 $8,758 2.24 %
Tax-exempt securities468,432 3,944 3.37 %446,348 3,897 3.49 %463,329 3,921 3.39 %470,742 3,946 3.35 %462,718 3,946 3.41 %
Total investment securities1,811,076 12,247 2.70 %1,822,043 11,789 2.59 %1,882,672 11,606 2.47 %1,943,908 11,813 2.43 %2,028,341 12,704 2.51 %
Int bearing dep in other banks189,785 1,616 3.41 %70,193 325 1.85 %79,448 441 2.22 %93,464 789 3.38 %146,663 898 2.45 %
Loans5,158,071 78,798 6.11 %5,145,228 77,592 6.03 %5,038,928 74,626 5.92 %4,982,368 74,590 5.99 %4,975,663 67,734 5.45 %
Total interest earning assets7,158,932 92,661 5.18 %7,037,464 89,706 5.10 %7,001,048 86,673 4.95 %7,019,740 87,192 4.97 %7,150,667 81,336 4.55 %
Other assets846,642 879,839 872,297 862,390 852,587 
Total assets$8,005,574 $7,917,303 $7,873,345 $7,882,130 $8,003,254 
Interest-bearing liabilities:
Deposits$4,803,277 $29,412 2.45 %$4,533,386 $24,748 2.18 %$4,459,869 $19,572 1.76 %$4,465,800 $14,762 1.32 %$4,738,076 $12,277 1.04 %
Borrowed Funds254,505 3,023 4.75 %361,445 4,500 4.98 %296,963 3,556 4.79 %277,531 3,264 4.70 %77,098 959 4.98 %
Subordinated debentures123,424 1,887 6.12 %126,925 1,807 5.69 %128,251 1,849 5.77 %145,418 2,138 5.88 %155,084 2,176 5.61 %
Total interest bearing
liabilities5,181,206 34,322 2.65 %5,021,756 31,055 2.47 %4,885,083 24,977 2.05 %4,888,749 20,164 1.65 %4,970,258 15,412 1.24 %
Other liabilities1,871,660 1,994,017 2,083,192 2,091,882 2,164,001 
Shareholders' equity952,708 901,530 905,070 901,499 868,995 
Total liabilities and
shareholders' equity$8,005,574 $7,917,303 $7,873,345 $7,882,130 $8,003,254 
Net interest
income (FTE)*$58,339 2.53 %$58,651 2.63 %$61,696 2.91 %$67,028 3.32 %$65,924 3.31 %
Net interest margin (FTE)*3.26 %3.33 %3.52 %3.82 %3.69 %
Core net interest margin*3.10 %3.14 %3.27 %3.43 %3.47 %
 
*See reconciliation for non-GAAP financial measures


THE FIRST BANCSHARES, INC and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
Three Months Ended
 
Per Common Share Data
Mar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Book value per common share$30.45 $30.22 $28.57 $28.64 $28.58 
Effect of intangible assets per share10.7510.8710.9511.0211.09
Tangible book value per common share$19.70 $19.35 $17.62 $17.62 $17.49 
     
Diluted earnings per share$0.65 $0.35 $0.77 $0.75 $0.52 
Effect of acquisition and charter conversion charges— 0.02 0.02 0.13 0.11 
Tax on acquisition and charter conversion charges— (0.01)(0.01)(0.03)(0.02)
Effect of Treasury awards— — (0.20)— — 
Tax on Treasury awards— — 0.05 — — 
Effect on contributions/consulting/advertising related to Treasury awards— — 0.17 — — 
Tax on contributions/consulting/advertising related to Treasury awards— — (0.04)— — 
Initial provision for acquired loans— — — — 0.34 
Tax on initial provision for acquired loans— — — — (0.09)
Loss on securities repositioning— 0.31 — — — 
Tax loss on securities repositioning— (0.08)— — — 
Diluted earnings per share, operating$0.65 $0.59 $0.76 $0.85 $0.86 
     
Year to Date
2024 2023 
Diluted earnings per share$0.65 $0.52  
Effect of acquisition and charter conversion charges— 0.11  
Tax on acquisition and charter conversion charges— (0.02) 
Initial provision for acquired loans— 0.34 
Tax on initial provision for acquired loans— (0.09)
Diluted earnings per share, operating$0.65  $0.86  
     
Year to Date
20242023 
Net income available to common shareholders$20,628 $16,271  
Acquisition and charter conversion charges8 3,793  
Tax on acquisition and charter conversion charges(2)(960) 
Initial provision for acquired loans— 10,727 
Tax on initial provision for acquired loans— (2,714)
Net earnings available to common shareholders, operating$20,634 $27,117  
     
 Three Months Ended
Average Balance Sheet DataMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Total average assetsA$8,005,574 $7,917,303 $7,873,345 $7,882,130 $8,003,254 
Total average earning assetsB$7,158,932 $7,037,464 $7,001,048 $7,019,740 $7,150,667 
Common EquityC$952,708 $901,530 $905,070 $901,499 $868,995 
Less intangible assets340,238 342,641 344,999 346,707 330,092 
Total Tangible common equityD$612,470 $558,889 $560,071 $554,792 $538,903 
   
  Three Months Ended
Net Interest Income Fully Tax EquivalentMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Net interest incomeE$57,341 $57,665 $60,704 $66,030 $64,926 
Tax-exempt investment income(2,946)(2,911)(2,929)(2,948)(2,948)
Taxable investment income3,944 3,897 3,921 3,946 3,946 
Net Interest Income Fully Tax EquivalentF$58,339 $58,651 $61,696 $67,028 $65,924 
Annualized Net Interest MarginE/B3.20 %3.28 %3.47 %3.76 %3.63 %
Annualized Net Interest Margin, Fully Tax EquivalentF/B3.26 %3.33 %3.52 %3.82 %3.69 %
       
Total Interest Income, Fully Tax Equivalent
Total Interest IncomeR$91,663 $88,720 $85,681 $86,194 $80,338 
Tax-exempt investment income(2,946)(2,911)(2,929)(2,948)(2,948)
Taxable investment income3,944 3,897 3,921 3,946 3,946 
Total Interest Income, Fully Tax EquivalentG$92,661 $89,706 $86,673 $87,192 $81,336 
Yield on Average Earning AssetsR/B5.12 %5.04 %4.90 %4.91 %4.49 %
Yield on Average Earning Assets, Fully Tax EquivalentG/B5.18 %5.10 %4.95 %4.97 %4.55 %
Interest Income Investment Securities, Fully Tax Equivalent
Interest Income Investment SecuritiesS$11,248 $10,803 $10,614 $10,815 $11,706 
Tax-exempt investment income(2,946)(2,911)(2,929)(2,948)(2,948)
Taxable investment Income3,944 3,897 3,921 3,946 3,946 
Interest Income Investment Securities, Fully Tax EquivalentH$12,246 $11,789 $11,606 $11,813 $12,704 
Average Investment SecuritiesI$1,811,076 $1,822,043 $1,882,672 $1,943,908 $2,028,341 
Yield on Investment SecuritiesS/I2.48 %2.37 %2.26 %2.23 %2.31 %
Yield on Investment Securities, Fully Tax EquivalentH/I2.70 %2.59 %2.47 %2.43 %2.51 %
       
Three Months Ended
Core Net Interest MarginMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Net interest income (FTE)$58,339 $58,651 $61,696 $67,028 $65,924 
Less purchase accounting adjustments2,627 3,235 4,276 6,533 3,469 
Net interest income, net of purchase accounting adjJ$55,712 $55,416 $57,420 $60,495 $62,455 
Total average earning assets$7,158,932 $7,037,464 $7,001,048 $7,019,740 $7,150,667 
Add average balance of loan valuation discount24,675 27,573 31,269 38,306 42,945 
Avg earning assets, excluding loan valuation discountK$7,183,607 $7,065,037 $7,032,317 $7,058,046 $7,193,612 
Core net interest marginJ/K3.10 %3.14 %3.27 %3.43 %3.47 %
Three Months Ended
Efficiency RatioMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Operating Expense
Total non-interest expense$43,425 $44,433 $47,724 $46,899 $45,670 
Pre-tax non-operating expenses(8)(594)(5,777)(4,101)(3,793)
Adjusted Operating ExpenseL$43,417 $43,839 $41,947 $42,798 $41,877 
Operating Revenue
Net interest income, FTE$58,339 $58,651 $61,696 $67,028 $65,924 
Total non-interest income12,679 2,346 19,324 12,423 12,612 
Pre-tax non-operating items— 9,708 (6,197)— — 
Adjusted Operating RevenueM$71,018 $70,705 $74,823 $79,451 $78,536 
Efficiency Ratio, operatingL/M61.14 %62.00 %56.06 %53.87 %53.32 %
Three Months Ended
Return RatiosMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Net income available to common shareholdersN$20,628 $11,047 $24,360 $23,779 $16,271 
Acquisition and charter conversion charges8 593 588 4,101 3,793 
Tax on acquisition and charter conversion charges(2)(150)(149)(1,037)(960)
Treasury awards— — (6,197)— — 
Tax on Treasury awards— — 1,568 — — 
Contributions/consulting/advertising related to Treasury awards— — 5,190 — — 
Tax on contributions/consulting/advertising related to Treasury awards— — (1,313)— — 
Initial provision for acquired loans— — — — 10,727 
Tax on initial provision for acquired loans— — — — (2,714)
Loss on securities repositioning— 9,708 — — — 
Tax loss on securities repositioning— (2,457)— — — 
Net earnings available to common shareholders, operatingO$20,634 $18,741 $24,047 $26,843 $27,117 
Three Months Ended
Pre-Tax Pre-Provision Operating EarningsMar 31, 2024Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Earnings before income taxesP$26,595 $14,328 $31,304 $30,304 $20,868 
Acquisition and charter conversion charges8 593 588 4,101 3,793 
Provision for credit losses— 1,250 1,000 1,250 11,000 
Treasury awards— — (6,197)— — 
Contributions/consulting/advertising related to Treasury awards— — 5,190 — — 
Loss on securities repositioning— 9,708 — — — 
Pre-Tax, Pre-Provision Operating EarningsQ$26,603 $25,879 $31,885 $35,655 $35,661 
Annualized return on avg assetsN/A1.03 %0.56 %1.24 %1.21 %0.81 %
Annualized return on avg assets, operO/A1.03 %0.95 %1.22 %1.36 %1.36 %
Annualized pre-tax, pre-provision, operQ/A1.33 %1.31 %1.62 %1.81 %1.78 %
Annualized return on avg common equity, operO/C8.66 %8.32 %10.63 %11.91 %12.48 %
Annualized return on avg tangible common equity, operatingO/D13.48 %13.41 %17.17 %19.35 %20.13 %
Three Months Ended
Capital RatiosMar 31, 2024*Dec 31, 2023Sept 30, 2023June 30, 2023Mar 31, 2023
Common equity tier 1 (CET1) ratio12.2 %12.1 %12.0 %11.5 %11.2 %
Leverage (Tier 1) ratio9.7 %9.7 %9.6 %9.1 %8.8 %
Total risk based capital ratio15.2 %15.0 %15.1 %14.5 %14.7 %
Tangible common equity ratio8.1 %7.9 %7.3 %7.4 %7.2 %
*estimated

Contacts

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