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| 8-K - THE FIRST BANCSHARES, INC. 8-K - FIRST BANCSHARES INC /MS/ | a50741827.htm |
Exhibit 99.1
The First Bancshares, Inc. Reports 3rd Quarter 2013 Earnings and Declaration of Dividend
HATTIESBURG, Miss.--(BUSINESS WIRE)--October 31, 2013--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported earnings for the quarter ended September 30, 2013. The First Bancshares, Inc. also announced a quarterly dividend of $.0375 per common share. The record date will be November 12, 2013 with a payable date of November 27, 2013.
Net income available to common stockholders for the three months ended September 30, 2013 amounted to $998,000, or $0.19 per diluted share, compared to $766,000, or $0.24 per diluted share for the same quarter in 2012, an increase of $232,000 or 30.3% in net income available to common shareholders. Net income available to common shareholders exclusive of merger related costs for the three months ended September 30, 2013 was $1,305,000, or $0.25 per diluted share, a 70.4% increase in net income available to common shareholders over the same quarter in 2012.
Net income available to common stockholders for the nine months ended September 30, 2013 amounted to $2,823,000, or $0.69 per diluted share, compared to $2,562,000, or $0.82 per diluted share for the same period in 2012, an increase of $261,000 or 10.2% in net income available to common shareholders. Net income available to common shareholders exclusive of one-time items for the nine months ended September 30, 2013 was $3,465,000, or $0.84 per diluted share, a 35.2% increase in net income available to common shareholders over the same period in 2012.
M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We successfully completed the system integration of our recent acquisition during the quarter and are encouraged by the contributions this expansion is making to our overall franchise. We continue to see a gradual improvement in economic conditions throughout the communities we serve. We generated $14.7 million in loan growth quarter over quarter and are excited about the future prospects for growth both in our legacy and newly acquired markets.”
Balance Sheet Highlights
Total assets for the Company totaled $951.9 million at September 30, 2013, a decrease of $13.5 million compared with June 30, 2013. The decrease during the third quarter of 2013 was attributable to a decline in the Company’s deposit balances associated with seasonal fluctuations and a reduction in high cost funds acquired through acquisition.
September 30, 2013 loans outstanding increased by $14.7 million, or approximately 11% on an annualized basis, compared with June 30, 2013, and increased $179.6 million, or 45.7%, compared to September 30, 2012 total loans outstanding. Loans of $124.2 million were acquired from First National Bank of Baldwin County on April 30, 2013. The remaining increase in loans of $55.4 million was broad based across all categories and throughout the Company’s market area.
| End of Period Loan Balances | 09/30/13 | 06/30/13 | 09/30/12 | |||
| (dollars in thousands) | ||||||
| Loans held for sale | $1,399 | $2,933 | $4,898 | |||
| Commercial | 79,094 | 69,376 | 51,616 | |||
| Real Estate: | ||||||
| Mortgage-commercial | 198,123 | 186,219 | 135,660 | |||
| Mortgage-residential | 211,494 | 210,543 | 129,149 | |||
| Construction | 66,745 | 72,349 | 56,761 | |||
| Consumer and other | 15,658 | 16,351 | 14,876 | |||
| $572,513 | $557,771 | $392,960 |
Non-performing assets totaled $10.4 million at September 30, 2013 compared to $9.9 million of non-performing assets at June 30, 2013 and $13.6 million at September 30, 2012. Non-performing assets represented 1.09% of total assets at September 30, 2013 compared to 1.02% of total assets at June 30, 2013, and compared to 1.88% at September 30, 2012. Non-performing loans totaled $3.2 million at September 30, 2013 compared to $2.2 million at June 30, 2013 and compared to $3.7 million of non-performing loans at September 30, 2012. Non-performing loans represented 0.55% of total loans at September 30, 2013 compared with 0.40% of total outstanding loans at June 30, 2013 and 0.94% of total loans outstanding at September 30, 2012.
| Non-Performing Assets | 09/30/13 | 06/30/13 | 09/30/12 | ||||
| (dollars in thousands) | |||||||
| Non-Accrual Loans | $2,681 | $1,886 | $2,808 | ||||
| Past Due Loans (90 days or more) | 471 | 352 | 870 | ||||
| Total Non-Performing Loans | 3,152 | 2,238 | 3,678 | ||||
| Non-Accrual Securities | 1,950 | 1,950 | 1,950 | ||||
| Other Real Estate | 5,292 | 5,686 | 8,008 | ||||
| Total Non-Performing Assets | $10,394 | $9,874 | $13,636 |
The Company’s allowance for loan losses totaled $5.7 million at September 30, 2013 representing an increase of $279,000, or 20.7% on an annualized basis, from June 30, 2013 and an increase of $1,272,000, or 28.9%, from September 30, 2012. The allowance for loan losses represented 0.99% of period-end loans at September 30, 2013 compared with 0.97% of period-end loans at June 30, 2013 and 1.12% of period-end loans at September 30, 2012. Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller. The allowance for loan losses represented 1.26% of period end loans excluding those booked at fair value at September 30, 2013 compared with 1.23% at June 30, 2013 and 1.20% at September 30, 2012.
Total deposits decreased $29.4 million or 13.9% on an annualized basis, as of September 30, 2013 compared with June 30, 2013 total deposits and increased by approximately $192.0 million or 30.9% compared with September 30, 2012. Deposits of $185.8 million were acquired from First National Bank of Baldwin County on April 30, 2013.
| End of Period Deposit Balances | 09/30/13 | 06/30/13 | 09/30/12 | |||
| (dollars in thousands) | ||||||
| Non-interest-bearing Demand Deposits | $169,001 | $182,324 | $110,051 | |||
| IB Demand, Savings, and MMDA Accounts | 434,449 | 439,094 | 345,112 | |||
| Time Deposits < $100,000 | 88,907 | 96,841 | 70,807 | |||
| Time Deposits > $100,000 | 121,608 | 125,080 | 95,963 | |||
| $813,965 | $843,339 | $621,933 |
Results of Operations Highlights – Quarter ended September 30, 2013
Net income available to common stockholders for the quarter ended September 30, 2013 totaled $998,000 or $0.19 per diluted share, an increase of $232,000 or 30.3% from the third quarter of 2012 net income available to common stockholders of $766,000 or $0.24 per diluted share.
During the quarter ended September 30, 2013, net interest income totaled $7,958,000 representing an increase of $2,527,000, or 46.5%, compared with the quarter ended September 30, 2012 net interest income of $5,431,000. The tax equivalent net interest margin for the quarter ended September 30, 2013 was 3.86% compared to 3.54% in the third quarter of 2012. The increase in net interest income and the net interest margin during the quarter ended September 30, 2013 compared with the third quarter of 2012 was attributable primarily to increased average loans outstanding.
Fair value accounting adjustments on acquired assets and liabilities contributed approximately 12 basis points on an annualized basis to the net interest margin in the third quarter of 2013 and 5 basis points in the third quarter of 2012.
During the quarter ended September 30, 2013, non-interest income totaled $1,592,000, a decrease of $298,000 or 15.8%, compared with the quarter ended June 30, 2013, and an increase of $74,000, or 4.9%, compared with the third quarter of 2012. The decrease for the quarter ended September 30, 2013 is attributed to a $131,000, or 22.4% decline in mortgage income along with a $140,000 coding error relating to the acquisition of First National Bank of Baldwin County. At June 30, 2013, $140,000 in interest income was improperly recorded as non-interest income. This was corrected at system conversion in July 2013.
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Quarter |
Quarter |
Quarter |
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| Non-interest Income | 09/30/13 | 06/30/13 | 09/30/12 | |||
| (dollars in thousands) | ||||||
| Service Charges on Deposit Accounts | $649 | $601 | $528 | |||
| Mortgage Income | 454 | 585 | 513 | |||
| Interchange Fee Income | 472 | 461 | 368 | |||
| Other Operating Income | 17 | 243 | 109 | |||
| Total Non-interest Income | $1,592 | $1,890 | $1,518 |
During the quarter ended September 30, 2013, non-interest expense totaled $7,630,000, an increase of $385,000, or 5.3%, compared with the quarter ended June 30, 2013, and an increase of $2,193,000, or 40.3%, compared with the third quarter of 2012.
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Quarter |
Quarter |
Quarter |
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| Non-interest Expense | 09/30/13 | 06/30/13 | 09/30/12 | |||
| (dollars in thousands) | ||||||
| Salaries and Employee Benefits | $4,010 | $3,729 | $3,075 | |||
| Occupancy, Furniture and Equipment Expense | 802 | 1,104 | 493 | |||
| FDIC Premiums | 181 | 56 | 169 | |||
| Professional Fees | 618 | 911 | 189 | |||
| Advertising and Promotion | 98 | 109 | 64 | |||
| Intangible Amortization | 94 | 89 | 77 | |||
| Other Operating Expenses | 1,827 | 1,247 | 1,370 | |||
| Total Non-interest Expense | $7,630 | $7,245 | $5,437 |
Total non-interest expense increases are primarily related to increases in operating costs associated with the acquisition of First National Bank of Baldwin County on April 30, 2013. One-time acquisition costs expensed during the third quarter of 2013 amounted to $447,000 and one-time acquisition costs expensed during 2013 amounted to $1,409,000.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in south Mississippi, Louisiana and south Alabama. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Forward Looking Statement
This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.
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THE FIRST BANCSHARES, INC. (unaudited, dollars in thousands except per shares data) |
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Consolidated Balance Sheets |
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Sept 30, |
June 30, |
Sept 30, |
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| ASSETS | ||||||||||||
| Cash and Due from Banks | $ | 26,110 | $ | 27,811 | $ | 20,070 | ||||||
| Federal funds sold | 1,328 | 4,941 | 990 | |||||||||
| Interest-bearing deposits with banks | 24,326 | 49,089 | 15,652 | |||||||||
| Investment Securities | 264,883 | 260,586 | 244,737 | |||||||||
| Loans held for sale | 1,399 | 2,933 | 4,898 | |||||||||
| Loans, Net of Unearned Income | 571,114 | 554,838 | 388,062 | |||||||||
| Allowance for Loan Losses | (5,672 | ) | (5,393 | ) | (4,400 | ) | ||||||
| Net Loans | 565,442 | 549,445 | 383,662 | |||||||||
| Premises and Equipment | 32,551 | 32,696 | 22,522 | |||||||||
| Other Real Estate Owned | 5,292 | 5,687 | 8,008 | |||||||||
| Goodwill | 10,621 | 10,713 | 9,362 | |||||||||
| Other Assets | 19,943 | 21,536 | 15,767 | |||||||||
| TOTAL ASSETS | $ | 951,895 | $ | 965,437 | $ | 725,668 | ||||||
| LIABILITIES | ||||||||||||
| Non-interest-bearing Demand Deposits | $ | 169,001 | $ | 182,324 | $ | 110,051 | ||||||
| Interest-bearing Accounts | 434,449 | 439,094 | 345,112 | |||||||||
| Time Deposits | 210,515 | 221,921 | 166,770 | |||||||||
| Total Deposits | 813,965 | 843,339 | 621,933 | |||||||||
| Borrowings | 30,000 | 16,500 | 16,781 | |||||||||
| Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
| Other Liabilities | 13,860 | 12,671 | 11,272 | |||||||||
| TOTAL LIABILITIES | 868,135 | 882,820 | 660,296 | |||||||||
| STOCKHOLDER’S EQUITY | ||||||||||||
| Preferred Stock | 17,082 | 17,062 | 17,000 | |||||||||
| Common Stock | 5,134 | 5,120 | 3,135 | |||||||||
| Surplus | 41,994 | 41,902 | 23,636 | |||||||||
| Retained Earnings | 21,305 | 20,538 | 19,000 | |||||||||
| Accumulated Other Comprehensive Income (Loss) | (1,291 | ) | (1,541 | ) | 3,060 | |||||||
| Treasury Stock | (464 | ) | (464 | ) | (464 | ) | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 83,760 | 82,617 | 65,372 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 951,895 | $ | 965,437 | $ | 725,668 | ||||||
| END OF PERIOD SHARES OUTSTANDING | 5,107,131 | 5,093,455 | 3,135,361 | |||||||||
| TANGIBLE BOOK VALUE PER SHARE | $ | 10.43 | $ | 10.20 | $ | 11.67 | ||||||
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THE FIRST BANCSHARES, INC.
(unaudited, dollars in thousands except per share data) |
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Consolidated Statements of Income |
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Three Months |
Nine Months |
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Sept 30, |
Sept 30, |
Sept 30, |
Sept 30, |
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| INTEREST INCOME | ||||||||||||
| Interest and Fees on Loans | $ | 7,216 | $ | 5,204 | $ | 18,765 | $ | 16,011 | ||||
| Interest and Dividends on Securities | 1,396 | 1,244 | 4,072 | 3,681 | ||||||||
| Interest on Fed Funds Sold | 36 | 11 | 70 | 42 | ||||||||
| TOTAL INTEREST INCOME | 8,648 | 6,459 | 22,907 | 19,734 | ||||||||
| INTEREST EXPENSE | ||||||||||||
| Interest on Deposits | 540 | 714 | 1,824 | 2,440 | ||||||||
| Interest on Borrowings | 150 | 314 | 448 | 870 | ||||||||
| TOTAL INTEREST EXPENSE | 690 | 1,028 | 2,272 | 3,310 | ||||||||
| NET INTEREST INCOME | 7,958 | 5,431 | 20,635 | 16,424 | ||||||||
| Provision for Loan Losses | 360 | 371 | 1,020 | 744 | ||||||||
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES |
7,598 | 5,060 | 19,615 | 15,680 | ||||||||
| NON-INTEREST INCOME | 1,592 | 1,518 | 5,412 | 4,503 | ||||||||
| NON-INTEREST EXPENSE | 7,630 | 5,437 | 20,854 | 16,373 | ||||||||
| Income before Income Taxes | 1,560 | 1,141 | 4,173 | 3,810 | ||||||||
| Income Taxes | 456 | 269 | 1,032 | 930 | ||||||||
| NET INCOME | 1,104 | 872 | 3,141 | 2,880 | ||||||||
| Preferred Stock Accretion & Dividends | 106 | 106 | 318 | 318 | ||||||||
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NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS |
$ | 998 | $ | 766 | $ | 2,823 | $ | 2,562 | ||||
| BASIC EARNINGS PER SHARE | $ | 0.20 | $ | 0.25 | $ | 0.70 | $ | 0.83 | ||||
| DILUTED EARNINGS PER SHARE | $ | 0.19 | $ | 0.24 | $ | 0.69 | $ | 0.82 | ||||
| WEIGHTED AVG SHARES OUTSTANDING | 5,102,572 | 3,108,867 | 4,058,432 | 3,099,024 | ||||||||
| DILUTED WEIGHTED AVG SHS OUTSTANDING | 5,150,517 | 3,135,245 | 4,106,377 | 3,125,402 | ||||||||
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THE FIRST BANCSHARES, INC. (unaudited, dollars in thousands except per share data) |
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Three Months |
Nine Months |
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Sept 30, |
Sept 30, |
Sept 30, |
Sept 30, |
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| EARNINGS PERFORMANCE RATIOS | ||||||||
| Annualized Return on Average Assets | 0.47% | 0.49% | 0.48% | 0.54% | ||||
| Annualized Return on Average Assets(1) | 0.60% | 0.49% | 0.57% | 0.54% | ||||
| Annualized Return on Average Equity | 5.66% | 5.55% | 5.56% | 7.46% | ||||
| Annualized Return on Average Equity(1) | 7.22% | 5.55% | 6.69% | 7.46% | ||||
| Net Interest Margin | 3.86% | 3.54% | 3.60% | 3.55% | ||||
| Efficiency Ratio(2) | 77.58% | 75.38% | 77.63% | 75.30% | ||||
| Efficiency Ratio(1)(2) | 73.04% | 75.38% | 73.52% | 75.30% | ||||
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Net Overhead Expense to Average
Earning Assets(3) |
2.82% | 2.43% | 2.59% | 2.44% | ||||
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Net Overhead Expense to Average
Earning Assets(1)(3) |
2.61% | 2.43% | 2.43% | 2.44% | ||||
| ASSET QUALITY RATIOS | ||||||||
| Annualized Net Charge-offs to Average Loans | 0.06% | 0.46% | 0.02% | 0.30% | ||||
| Allowance for Loan Losses to Period End Loans | 0.99% | 1.12% | ||||||
| Non-performing Assets to Period End Assets | 1.09% | 1.88% | ||||||
| Non-performing Loans to Period End Loans | 0.55% | 0.94% | ||||||
| Loans 30-89 Days Past Due to Period End Loans | 0.54% | 0.86% | ||||||
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SELECTED BALANCE SHEET & OTHER
FINANCIAL DATA |
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| Average Assets | $944,683 | $718,762 | $877,223 | $715,638 | ||||
| Average Earning Assets | $855,107 | $643,929 | $793,903 | $648,416 | ||||
| Average Total Loans | $566,291 | $384,859 | $506,461 | $388,169 | ||||
| Average Demand Deposits | $119,670 | $70,195 | $104,536 | $69,887 | ||||
| Average Interest Bearing Liabilities | $733,336 | $575,019 | $684,006 | $572,757 | ||||
| Average Equity | $78,068 | $62,899 | $75,352 | $51,499 | ||||
| Period End Non-performing Assets | $10,394 | $13,636 | ||||||
| Period End Non-performing Loans | $3,152 | $3,678 | ||||||
| Period End Loans 30-89 Days Past Due | $3,077 | $3,395 | ||||||
| Tax Equivalent Net Interest Income | $8,243 | $5,695 | $21,453 | $17,241 | ||||
| Net Charge-offs during Period | $81 | $439 | $75 | $855 | ||||
| (1)Excludes merger related costs and one-time items | ||||||||
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(2)Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-Interest Income |
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(3)Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest income |
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CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole,
601-268-8998
Chief Executive Officer
or
Dee Dee Lowery,
601-268-8998
Chief Financial Officer