The First Bancshares, Inc. Reports a 15% Increase in Quarterly Net Earnings and Declares Quarterly Dividends

Freitag, 14.10.2016 14:50



HATTIESBURG, Miss. --(BUSINESS WIRE)--

The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported net earnings available to common shareholders of $2.5 million for the third quarter of 2016, compared to net earnings available to common shareholders of $2.1 million reported for the third quarter of 2015 and $2.6 million in net earnings available to common shareholders for the second quarter of 2016. Diluted earnings for the third quarter of 2016 were $0.45 per common share, compared to $0.39 per common share reported for the third quarter of 2015 and $0.47 per common share reported for the second quarter of 2016. Third quarter 2016 net earnings included acquisition charges of $0.03 per share; therefore, operating earnings per share for the third quarter of 2016 were $0.48. The second quarter of 2016 and the third quarter of 2015 net earnings did not include any non-operating income or expenses.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are pleased to record another quarter of strong growth and improved profitability across our entire franchise. Our regional markets continue to offer us expansion opportunities as we continue to improve our market share throughout the Gulf South.”

Balance Sheet

Consolidated assets increased $41.7 million or 3.4% to $1.3 billion for the quarter ended September 30, 2016. Total loans were $854.4 million at September 30, 2016 as compared to $824.1 million at June 30, 2016 representing an increase of $30.3 million or 3.7%. Increased loan volume was spread across all real estate categories with residential real estate experiencing the largest growth. Fundings for commercial real estate loans increased $11.3 million or 3.8% quarter over quarter along with residential real estate growth of $14.2 million or 5.0%.

Total deposits increased $39.4 million or 3.8% to $1,071.8 million for the quarter ended September 30, 2016 with time deposits increasing $25.8 million or 13.1%. Money market and savings increased $12.5 million or 7.1%.

Asset Quality

Nonperforming assets totaled $11.3 million at September 30, 2016, an increase of $0.2 million compared to $11.1 million at June 30, 2016. The ALLL/total loans ratio was 0.88% at September 30, 2016 and June 30, 2016. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.06% of loans at September 30, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.04%) for the quarter ended September 30, 2016 compared to (0.03%) for the quarter ended June 30, 2016. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.

Energy Loans

At September 30, 2016 the company had direct energy related loans of $19.4 million, representing 2.3% of the total loan portfolio. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production.

Third Quarter 2016 vs. Third Quarter 2015 Earnings Comparison

Third quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $2.1 million for the third quarter of 2015. Revenues from consolidated operations increased $2.3 million in quarterly comparison. Net interest income increased $780,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $1,117,000 in quarterly comparison for the third quarter of 2016 as compared to the third quarter of 2015 consisting mainly of increased mortgage income of $1,058,000.

Third quarter 2016 noninterest expenses increased $1,439,000, or 18.0% as compared to third quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $1,017,000 of which $600,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015 as well as additional salaries and benefits related to the banking team in Mobile and lender in Madison along with Treasury Management personnel.

Fully taxable-equivalent (“FTE”) net interest income totaled $10.3 million and $9.5 million for the third quarter of 2016 and 2015, respectively. The FTE net interest income increased $794,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $28,000 on net interest income for the third quarter comparisons. Third quarter 2016 net interest margin of 3.70% includes 4 bps related to purchase accounting adjustments.

Investment securities totaled $251.7 million, or 19.9% of total assets at September 30, 2016, versus $253.1 million, or 22.2% of total assets at September 30, 2015. The average volume of investment securities increased $6.9 million in prior year quarterly comparison. The average tax equivalent yield on investment securities decreased 2 bps to 2.63%. The investment portfolio had a net unrealized gain of $4.5 million at September 30, 2016 as compared to $2.3 million at September 30, 2015.

The average yield on all earnings assets increased 3 basis points in prior year quarterly comparison, from 4.10% for the third quarter of 2015 to 4.13% for the third quarter of 2016. This increase was offset by an increase in average interest expense of 13 basis points from 0.39% for the third quarter of 2015 to 0.52% for the third quarter of 2016.

Third Quarter 2016 vs Second Quarter 2016 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders decreased $91,000 to $2.5 million which included after-tax acquisition charges of $146,000.

FTE net interest income increased $207,000 to $10.3 million from $10.1 million in sequential-quarter comparison. The increase was due primarily to increased loan volume.

The average yield on all earnings assets increased 8 basis points in sequential-quarter comparison, from 4.05% for the second quarter of 2016 to 4.13% for the third quarter of 2016.

Noninterest income increased $138,000 in sequential-quarter comparison consisting of an increase in mortgage income of $215,000 which was partially offset by the one-time gain of $129,000 related to the gain on securities during the second quarter.

Noninterest expenses increased $495,000 in sequential-quarter comparison which includes an increase in salaries and benefits of $245,000. Of this amount, $60,000 relates to the acquisition of The Mortgage Connection, LLC that occurred in December 2015. The increase in salaries and benefits also reflect the hiring of the lending team Madison, the treasury management executive as well as the lending team in Mobile. The increase in noninterest expenses also includes acquisition charges of $234,000.

Year to Date Earnings Comparison

In year-over-year comparison, net earnings available to common shareholders increased $1.4 million, or 22.2%, from $6.2 million at September 30, 2015 to $7.6 million at September 30, 2016. Net interest income increased $2.2 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.

Noninterest income increased $2.9 million in year-over-year comparison mainly consisting of increases in mortgage income of $2.2 million.

Noninterest expenses increased $2.8 million in year-over-year comparison consisting of increases in salaries and benefits of $2.3 million relating to the acquisition of The Mortgage Connection, LLC as well as salaries and benefits related to the lending teams in Madison and Mobile along with the executive for Treasury Management.

Dividends

The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on November 23, 2016 to shareholders of record as of the close of business on November 4, 2016.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in Mississippi, Louisiana and Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.

Forward Looking Statements

This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.

 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS DATA  

Quarter

Ended

9/30/16

 

Quarter

Ended

6/30/16

   

Quarter

Ended

3/31/16

 

Quarter

Ended

12/31/15

 

Quarter

Ended

9/30/15

Total Interest Income   $ 11,269     $ 10,871       $ 10,597     $ 10,417     $ 10,080  
Total Interest Expense    

1,202

     

1,016

       

922

     

804

     

793

 
Net Interest Income    

10,067

     

9,855

       

9,675

     

9,613

     

9,287

 
FTE net interest income    

10,306

     

10,099

       

9,912

     

9,846

     

9,512

 
Provision for loan losses     143       204         190       10      

250

 
Non-interest income     3,099       2,961         2,483       1,903       1,982  
Non-interest expense ^^    

9,416

     

8,921

       

8,395

     

8,275

     

7,977

 
Earnings before income taxes     3,607       3,691         3,573       3,231       3,042  
Income tax expense    

1,049

     

1,042

       

969

     

873

     

815

 
Net earnings     2,558       2,649         2,604       2,358       2,227  
Dividends and accretion on preferred stock    

86

     

86

       

85

     

85

     

86

 
Net earnings available to common shareholders   $

2,472

    $

2,563

      $

2,519

    $

2,273

    $

2,141

 
                       
PER COMMON SHARE DATA                      
Basic earnings per share   $ 0.46     $ 0.47       $ 0.47     $ 0.42     $ 0.40  
Diluted earnings per share     0.45       0.47         0.46       0.42       0.39  
Diluted earnings per share, operating*     0.48       0.47         0.43       0.40       0.39  
Quarterly dividends per share     .0375       .0375         .0375       .0375       .0375  
Book value per common share at end of period     17.60       17.15         16.58       16.05       15.72  
Tangible common book value at period end     14.73       14.26         13.67       13.10       13.02  
Market price at end of period     19.10       17.27         15.63       18.34       17.47  
Shares outstanding at period end     5,428,017       5,432,014         5,432,014       5,376,665       5,376,665  
Weighted average shares outstanding:                      
Basic     5,425,567       5,432,014         5,415,339       5,376,665       5,374,790  
Diluted     5,475,785       5,490,592         5,478,703       5,449,851       5,441,980  
                       
AVERAGE BALANCE SHEET DATA                      
Total assets   $ 1,233,034     $ 1,210,707       $ 1,196,328     $ 1,131,924     $ 1,109,944  
Loans and leases     836,931       809,806         779,418       757,036       731,818  
Total deposits     1,044,428       1,036,914         964,681       946,849       953,229  
Total common equity     94,007       88,643         87,155       84,122       82,045  
Total tangible common equity*     78,347       72,885         71,297       69,514       67,492  
Total equity     111,130       105,766         104,278       101,245       99,168  
                       
SELECTED RATIOS                      
Annualized return on avg assets     .83 %     .88 %       .87 %     .83 %     .80 %
Annualized return on avg assets, operating*     .85 %     .85 %       .78 %     .76 %     .78 %
Annualized return on avg common equity, operating*     11.14 %     11.57 %       10.69 %     10.27 %     10.44 %
Annualized return on avg tangible common equity, oper*     13.37 %     14.07 %       13.07 %     12.43 %     12.69 %
Average loans to average deposits     80.13 %     78.10 %       80.80 %     79.95 %     76.77 %
Taxable-equivalent net interest margin     3.70 %     3.68 %       3.68 %     3.81 %     3.79 %
Efficiency Ratio     70.24 %     68.31 %       67.73 %     70.43 %     69.40 %
                       
^^includes acquisition charges of $246                      
CREDIT QUALITY                      
Allowance for loan losses (ALLL) as a % of total loans     .88 %     .88 %       .88 %     .87 %     .90 %
Nonperforming assets to tangible equity + ALLL     10.81 %     10.93 %       11.43 %     11.55 %     13.28 %
Nonperforming assets to total loans + ORE     1.32 %     1.34 %       1.40 %     1.40 %     1.66 %
Annualized QTD net charge-offs (recoveries) to total loans     (0.04 %     (0.03 %)       (0.02 %)     (0.002 %)     (0.03 %)

*See reconciliation of Non-GAAP financial measures

 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET  

Sept 30,

2016

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

Assets                    
Cash and cash equivalents   $ 70,114     $ 54,777     $ 95,965     $ 41,259     $ 65,233  
Securities available-for-sale     236,168       242,855       253,126       239,732       239,631  
Securities held-to-maturity     6,000       6,025       6,851       7,092       7,233  
Other investments     9,516       9,578       9,570       8,135       6,249  
Total investment securities     251,684       258,458       269,547       254,959       253,113  
Loans held for sale     9,437       8,937       6,095       3,974       1,058  
Total loans     854,366       824,083       797,764       772,515       746,588  
Allowance for loan losses     (7,481 )     (7,259 )     (6,982 )     (6,747 )     (6,734 )
Loans, net     846,885       816,824       790,782       765,768       739,854  
Premises and equipment     33,427       33,502       33,353       33,623       33,610  
Other Real Estate     4,670       4,716       4,363       3,083       4,104  
Goodwill and other intangibles     15,596       15,696       15,796       15,891       14,490  
Other assets     34,825       31,990       26,050       26,574       26,387  
Total assets   $ 1,266,638     $ 1,224,900     $ 1,241,951     $ 1,145,131     $ 1,137,849  
                     
Liabilities and Shareholders’ Equity                    
Non-interest bearing deposits   $ 196,786     $ 194,950     $ 194,433     $ 189,445     $ 187,542  
Interest-bearing deposits     875,003       837,413       846,672       727,250       776,298  
Total deposits     1,071,789       1,032,363       1,041,105       916,695       963,840  
Borrowings     68,000       68,000       78,976       110,321       58,986  
Subordinated debentures     10,310       10,310       10,310       10,310       10,310  
Other liabilities     3,881       3,929       4,363       4,369       3,091  
Total liabilities     1,153,980       1,114,602       1,134,754       1,041,695       1,036,227  
Total shareholders’ equity     112,658       110,298       107,197       103,436       101,622  
Total liabilities and shareholders’ equity   $ 1,266,638     $ 1,224,900     $ 1,241,951     $ 1,145,131     $ 1,137,849  
 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT   Three Months Ended
    9/30/16     6/30/16     3/31/16     12/31/15       9/30/15  
Interest Income:                    
Loans, including fees   $ 9,706   $ 9,293   $ 9,013   $ 8,874     $ 8,556  
Investment securities     1,446     1,531     1,532     1,472       1,438  
Accretion of purchase accounting adjustments     92     20     22     59       73  
Other interest income     25     27     30     12       13  
Total interest income     11,269     10,871     10,597     10,417       10,080  
                     
Interest Expense:                    
Deposits     962     813     701     657       693  
Borrowings     160     149     193     131       100  
Subordinated debentures     80     54     28     47       47  
Accretion of purchase accounting adjustments     -     -     -     (31 )     (47 )
Total interest expense     1,202     1,016     922     804       793  
                     
Net interest income     10,067     9,855     9,675     9,613       9,287  
Provision for loan losses     143     204     190     10       250  
Net interest income after provision for loan losses     9,924     9,651     9,485     9,603       9,037  
                     
Non-interest Income:                    
Service charges on deposit accounts     606     604     637     674       737  
Mortgage Income     1,399     1,184     645     245       341  
Interchange Fee Income     666     681     644     650       611  
Gain (loss) on securities, net     -     129     -     -       -  
Gain on sale of premises and equipment     -     -     -     -       -  
BEA award, net     -     -     -     152       -  
Other charges and fees     428     363     557     182       293  
Total non-interest income     3,099     2,961     2,483     1,903       1,982  
                     
Non-interest expense:                    
Salaries and employee benefits     5,645     5,400     5,149     4,670       4,628  
Occupancy expense     1,209     1,110     1,073     1,107       1,136  
FDIC premiums     254     257     244     243       241  
Marketing     76     132     72     150       64  
Amortization of core deposit intangibles     100     100     94     100       100  
Other professional services     461     321     231     377       318  
Other non-interest expense     1,671     1,601     1,532     1,628       1,490  
Total Non-interest expense ^^     9,416     8,921     8,395     8,275       7,977  
Earnings before income taxes     3,607     3,691     3,573     3,231       3,042  
Income tax expense     1,049     1,042     969     873       815  
Net earnings     2,558     2,649     2,604     2,358       2,227  
Dividends and accretion on preferred stock     86     86     85     85       86  
Net earnings available to common shareholders   $ 2,472   $ 2,563   $ 2,519   $ 2,273     $ 2,141  
                     
Earnings per common share, diluted   $ 0.45   $ 0.47   $ 0.46   $ 0.42     $ 0.39  
Operating earnings per common share, diluted*   $ 0.48   $ 0.47   $ 0.43   $ 0.40     $ 0.39  
         

 

^^includes acquisition charges of $234           

 *See reconciliation of Non-GAAP financial measures

 
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

COMPOSITION OF LOANS

 

Sept 30,

2016

 

Percent

of Total

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

 

Percent

of Total

Commercial, financial and agricultural   $ 121,963     14.1 %   $ 118,924     $ 126,381     $ 129,197     $ 123,872     16.6 %
Real estate – construction     104,644     12.1 %     101,439       100,386       99,161       85,769     11.5 %
Real estate – commercial     307,963     35.7 %     296,676       270,085       253,309       251,631     33.7 %
Real estate – residential     296,587     34.3 %     282,420       276,272       272,180       265,763     35.5 %
Lease Financing Receivable     2,211     0.3 %     2,642       2,645       2,650       2,303     0.3 %
Obligations of States & subdivisions     6,861     0.8 %     6,965       7,034       969       969     0.1 %
Consumer     14,137     1.6 %     15,017       14,961       15,049       16,281     2.2 %
Loans held for sale     9,437     1.1 %     8,937       6,095       3,974       1,058     0.1 %
Total loans   $ 863,803     100 %   $ 833,020     $ 803,859     $ 776,489     $ 747,646     100 %
                             
COMPOSITION OF DEPOSITS  

Sept 30,

2016

 

Percent

of Total

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

 

Percent

of Total

Noninterest bearing   $ 196,786     18.4 %   $ 194,950     $ 194,433     $ 189,445     $ 187,542     19.5 %
NOW and other     465,404     43.4 %     466,118       493,319       373,687       411,893     42.7 %
Money Market/Savings     187,228     17.5 %     174,740       169,733       174,090       181,861     18.9 %
Time Deposits of less than $100,000     78,785     7.4 %     72,389       72,295       73,865       75,022     7.8 %
Time Deposits of $100,000 or more     143,586     13.3 %     124,166       111,325       105,608       107,522     11.1 %
Total Deposits   $ 1,071,789     100 %   $ 1,032,363     $ 1,041,105     $ 916,695     $ 963,840     100 %
                             
ASSET QUALITY DATA  

Sept 30,

2016

     

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

   
Nonaccrual loans   $ 5,798         $ 5,742     $ 5,851     $ 7,368     $ 7,949      
Loans past due 90 days and over     420           267       628       29       6      
Total nonperforming loans     6,218           6,009       6,479       7,397       7,955      
Other real estate     4,670           4,716       4,363       3,083       4,104      
Nonaccrual securities     408           408       408       408       408      
Total nonperforming assets   $ 11,296         $ 11,133     $ 11,250     $ 10,888     $ 12,467      
                             
Nonperforming assets to total assets     .89 %         .91 %     .91 %     .95 %     1.10 %    
Nonperforming assets to total loans + ORE     1.31 %         1.34 %     1.40 %     1.40 %     1.66 %    
ALLL to nonperforming loans     120.31 %         120.80 %     107.80 %     91.21 %     84.65 %    
ALLL to total loans     .88 %         .88 %     .88 %     .87 %     .90 %    
                             
Quarter-to-date net charge-offs (recoveries)   $ (79 )       $ (72 )   $ (48 )   $ (3 )   $ (65 )    
Annualized QTD net chg/offs (recs) to loans     (0.04 %)         (0.03 %)     (0.02 %)     (0.002 %)     (0.03 %)    
 
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
                                                           
Yield Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Analysis September 30, 2016 June 30, 2016   March 31, 2016   December 31, 2015 September 30, 2015
Tax Tax Tax Tax Tax
Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/
Balance interest Rate   Balance interest Rate   Balance interest Rate   Balance interest Rate   Balance interest Rate
 
Taxable securities $ 177,154 $ 965 2.18 % $ 186,615 $ 1,034 2.22 % $ 189,249 $ 1,056 2.23 % $ 177,964 $ 1,006 2.26 % $ 172,478 $ 976 2.26 %

 

Tax-exempt securities

  77,073   704 3.65 %   78,290   721 3.68 %   76,795   693 3.61 %   75,570   685 3.63 %   74,807   662 3.54 %

 

Total investment securities

254,227 1,669 2.63 % 264,905 1,755 2.65 % 266,044 1,749 2.63 % 253,534 1,691 2.67 % 247,285 1,638 2.65 %
Fed funds sold 10,356 25 0.97 % 9,902 27 1.09 % 12,395 30 0.97 % 405 1 0.99 % 5,502 13 0.95 %

 

Int bearing deposits in other banks

11,961 16 0.54 % 12,522 20 0.64 % 20,909 20 0.38 % 21,601 25 0.46 % 20,613 25 0.49 %
Loans   836,931   9,798 4.68 %   809,806   9,313 4.60 %   779,418   9,035 4.64 %   757,036   8,933 4.72 %   731,818   8,629 4.72 %

 

Total Interest earning assets

1,113,475 11,508 4.13 % 1,097,135 11,115 4.05 % 1,078,766 10,834 4.02 % 1,032,576 10,650 4.13 % 1,005,218 10,305 4.10 %
Other assets   119,559   113,572   117,562   99,348   104,726
Total assets $ 1,233,034 $ 1,210,707 $ 1,196,328 $ 1,131,924 $ 1,109,944
 

 

Interest-bearing liabilities:

Deposits $ 850,442 $ 962 0.45 % $ 843,771 $ 813 0.39 % $ 777,692 $ 701 0.36 % $ 752,098 $ 626 0.33 % $ 759,939 $ 646 0.34 %
Repo 5,000 49 3.92 % 5,000 48 3.84 % 5,000 48 3.84 % 5,000 48 3.84 % 5,000 48 3.84 %
Fed funds purchased 1,926 5 1.04 % 2,894 8 1.11 % 782 2 1.02 % 1,984 6 1.21 % 661 2 1.21 %
FHLB 55,337 106 0.77 % 42,962 93 0.87 % 106,352 143 0.54 % 60,961 77 0.51 % 37,716 50 0.53 %

 

Subordinated debentures

  10,310   80 3.10 %   10,310   54 2.10 %   10,310   28 1.09 %   10,310   47 1.82 %   10,310   47 1.82 %

 

Total interest bearing liabilities

923,015   1,202 0.52 % 904,937   1,016 0.45 % 900,136   922 0.41 % 830,353   804 0.39 % 813,626   793 0.39 %
Other liabilities 198,889 200,004 191,914 200,326 197,150
Shareholders' equity   111,130   105,766   104,278   101,245   99,168

 

 

Total liabilities and shareholders' equity

$ 1,233,034 $ 1,210,707 $ 1,196,328 $ 1,131,924 $ 1,109,944
 

 

Net interest income (TE)

$ 10,306 3.61 % $ 10,099 3.60 % $ 9,912 3.61 % $ 9,846 3.74 % $ 9,512 3.71 %
 
Net interest margin 3.70 % 3.68 % 3.68 % 3.81 % 3.79 %
 

 

Core net interest margin*

3.66 % 3.67 % 3.66 % 3.77 % 3.73 %
 
FIRST BANCSHARES, INC and SUBSIDIARIES

Reconcilement of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

Three Months Ended

Per Common Share Data

 

Sept 30,

2016

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

Book value per common share   $ 17.60     $ 17.15     $ 16.58     $ 16.05     $ 15.72  
Effect of intangible assets per share     2.87       2.89       2.91       2.95       2.70  
Tangible book value per common share   $ 14.73     $ 14.26     $ 13.67     $ 13.10     $ 13.02  
                     
Diluted earnings per share   $ 0.45     $ 0.47     $ 0.46     $ 0.42     $ 0.39  
Effect of gain on debit card conversion, after-tax     -       -       (0.03 )     -       -  
Effect of gain on sale of bank premises, after-tax     -       -       -       -       -  
Effect of BAE, after-tax     -       -       -       (0.02 )     -  
Effect of acquisition charges, after-tax     0.03       -       -       -       -  
Diluted earnings per share, operating   $ 0.48     $ 0.47     $ 0.43     $ 0.40     $ 0.39  
                     
                     
                     
                     
    Three Months Ended
Average Balance Sheet Data  

Sept 30,

2016

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

Total average assets A   $ 1,233,034     $ 1,210,707     $ 1,196,328     $ 1,131,924     $ 1,109,944  
                     
Total equity   $ 111,130     $ 105,766     $ 104,278     $ 101,245     $ 99,168  
Less preferred equity     17,123       17,123       17,123       17,123       17,123  
Total common equity B     94,007       88,643       87,155       84,122       82,045  
Less intangible assets     15,660       15,758       15,858       14,608       14,553  
Tangible common equity C   $ 78,347     $ 72,885     $ 71,297     $ 69,514     $ 67,492  
                     
                     
                     
                     
    Three Months Ended
Core Net Interest Margin  

Sept 30,

2016

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

Net interest income (TE)   $ 10,306     $ 10,099     $ 9,912     $ 9,846     $ 9,512  
Less purchase accounting adjustments     92       20       22       90       120  
Net interest income, net of purchase accounting adj D   $ 10,214     $ 10,079     $ 9,890     $ 9,756     $ 9,392  
                     
Total average earning assets   $ 1,113,475     $ 1,097,135     $ 1,078,766     $ 1,032,576     $ 1,005,218  
Add average balance of loan valuation discount     1,484       1,504       1,526       1,583       1,657  
Avg earning assets, excluding loan valuation discount E   $ 1,114,959     $ 1,098,639     $ 1,080,292     $ 1,034,159     $ 1,006,875  
                     
Core net interest margin D/E     3.66 %     3.67 %     3.66 %     3.77 %     3.73 %
                     
                     
                     
                     
                     
    Three Months Ended
Return Ratios  

Sept 30,

2016

 

June 30,

2016

 

Mar 31,

2016

 

Dec 31,

2015

 

Sept 30,

2015

Net earnings F   $ 2,558     $ 2,649     $ 2,604     $ 2,358     $ 2,227  
Dividends and accretion on preferred stock     86       86       85       85       86  
Net earnings available to common shareholders     2,472       2,563       2,519       2,273       2,141  
Gain on debit card conversion, after-tax     -       -       (189 )     -       -  
Gain on sale of premises and equipment, after-tax     -       -       -       -       -  
BAE, after-tax     -       -       -       (112 )     -  
Acquisition charges, after-tax     146       -       -       -       -  
Net earnings available to common shareholders, oper G   $ 2,618     $ 2,563     $ 2,330     $ 2,161     $ 2,141  
                     
Annualized return on avg assets F/A     .83 %     .88 %     .87 %     .83 %     .80 %
Annualized return on avg assets, oper G/A     .85 %     .85 %     .78 %     .76 %     .78 %
Annualized return on avg common equity, oper G/B     11.14 %     11.57 %     10.69 %     10.27 %     10.44 %
Annualized return on avg tangible common equity, oper G/C     13.37 %     14.07 %     13.07 %     12.43 %     12.69 %

Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.

We use non-GAAP measures because we believe they are useful for evaluating our financial condition with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are necessarily comparable to non-GAAP performance measures that other companies may use.

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