TradeStation

Get Cash Back and $0 Commissions
+ The Power of TradeStation

The First Bancshares, Inc. Reports Results for Fourth Quarter ended December 31, 2022; Increases Quarterly Dividend 5%

Business Wire 25-Jan-2023 8:15 PM

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 December 31, 2022.

Highlights:

  • Effective January 1, 2023, the Company closed its acquisition of Heritage Southeast Bancorporation, Inc., parent company of Heritage Southeast Bank ("Heritage Bank") based in Jonesboro, Georgia. Heritage Bank will increase the Company's presence in Southern Georgia as well as provide entry into the fast growing markets of Atlanta and Savannah, Georgia and Jacksonville, Florida. Heritage Bank will add approximately $1.6 billion of assets and twenty four locations. Systems conversion is scheduled for the end of the first quarter of 2023.
  • During the quarter, the Company completed the systems conversion related to the acquisition of Beach Bancorp, Inc., parent of Beach Bank (together with Beach Bancorp, Inc., "Beach Bank")
  • Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, representing an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022.
  • In the year-over-year comparison, net income available to common shareholders decreased $1.2 million, or 1.9%, from $64.2 million for the year ended December 31, 2021 to $62.9 million for the same period ended December 31, 2022. Over that same period, Paycheck Protection Program ("PPP") loan fees decreased $9.8 million.
  • Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $3.9 million, or 6.1%, to $68.3 million for the year ended December 31, 2022 as compared to $64.4 million for the same period ended December 31, 2021.
  • Total loans, excluding PPP loans, increased 1.5% for the quarter representing net growth of $55.5 million, or 6.0% on an annualized basis, as compared to the quarter ended September 30, 2022.
  • Net Interest Margin FTE increased 23 bps to 3.37% for the quarter ended December 31, 2022 from 3.14% for the quarter ended December 31, 2021.
  • Total nonperforming assets decreased $12.9 million to $17.7 million at December 31, 2022 from $30.6 million at December 31, 2021.

M. Ray "Hoppy" Cole, President and Chief Executive Officer, commented, "2022 was another exceptional year in the history of our Company. We continued to execute on our strategic vision of building a high performing southeastern community bank through a combination of acquisitive and organic growth.

We closed Beach Bank in August 2022 and Heritage Bank effective January 2023, these two acquisitions added approximately $2.3 billion in assets in Florida and Georgia. The acquisitions of Beach Bank and Heritage Southeast strengthened our presence in the Florida panhandle and South Georgia, as well as opened up new markets in Atlanta, Jacksonville and Tampa. In addition to the growth through acquisitions, we also recorded record organic net loan growth of $359.1 million or 12.3% of total loans and a 6.1% increase in net operating income available to common shareholders.

We believe we are well positioned given the strength of our balance sheet and quality of our earnings stream to continue to build substantial value for our shareholders."

Quarterly Earnings

Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $2.5 million, or 12.5%, to $17.2 million for quarter ended December 31, 2022 as compared to $19.6 million for the quarter ended September 30, 2022. The decrease in net earnings available to common shareholders resulted in part from $1.5 million in nonaccrual interest income recapture recorded in the quarter ended September 30, 2022 and from expense of $0.7 million incurred in the quarter ended December 31, 2022 related to year end accruals for salaries and benefits.

The Company recorded a provision for loan losses of $0.7 million for the quarter ended December 31, 2022 and $4.3 million for the quarter ended September 30, 2022. The $4.3 million provision in respect of the quarter ended September 30, 2022 included $3.9 million for the CECL day 1 provision for loan losses attributable to the acquired Beach Bank loans.

Earnings Per Share

For the fourth quarter of 2022, fully diluted earnings per share were $0.67, compared to $0.61 for the third quarter of 2022 and $0.75 for the fourth quarter of 2021. The decrease in fully-diluted earnings per share when compared to the same quarter last year was primarily attributable to expenses associated with the acquisition of Beach Bank, and the pending acquisition of Heritage Bank as well as the additional shares issued for the acquisition of Beach Bank.

Fully diluted earnings per share, operating (non-GAAP) were $0.71 for the fourth quarter of 2022 compared to $0.85 for the third quarter of 2022 and $0.76 for the fourth quarter of 2021.

Effective August 1, 2022, the Company issued 3,498,936 shares of its common stock in conjunction with the closing of the acquisition of Beach Bank. Fully diluted earnings per share for the first and second quarters of 2022 were increased in part by the purchase by the Company of 600,000 shares of its common stock during the first quarter of 2022.

Balance Sheet

Consolidated assets increased $6.9 million to $6.462 billion at December 31, 2022 from $6.455 billion at September 30, 2022.

PPP loans at December 31, 2022 were $0.7 million, a decrease of $0.7 million from September 30, 2022, due to loan forgiveness under the PPP program.

Total loans were $3.774 billion for the quarter ended December 31, 2022, as compared to $3.719 billion for the quarter ended September 30, 2022, and $2.960 billion for the quarter ended December 31, 2021, representing an increase of $54.8 million, or 1.5%, for the sequential quarter comparison, and an increase of $814.6 million, or 27.5%, for the prior year quarterly comparison. During August 2022, loans totaling $496.0 million were acquired in the Beach Bank acquisition. PPP loans totaled $0.7 million for the quarter ended December 31, 2022, $1.4 million for the quarter ended September 30, 2022, and $41.1 million for the quarter ended December 31, 2021.

Excluding the PPP loans, total loans increased $55.5 million, or 1.5% as compared to the quarter ended September 30, 2022, or 6.0% on an annualized basis.

Excluding the PPP loans and acquired Beach Bank loans, total loans increased $359.1 million, or 12.3% compared to year-end December 31, 2021.

Total deposits were $5.494 billion for the quarter ended December 31, 2022, as compared to $5.551 billion for the quarter ended September 30, 2022, and $5.227 billion for the quarter ended December 31, 2021, representing a decrease of $56.9 million, or 1.0%, for the sequential quarter comparison, and an increase of $267.6 million, or 5.1%, for the prior year quarterly comparison. During August 2022, deposits totaling $406.9 million were acquired in the Beach Bank acquisition.

Book value per share increased to $26.92 at December 31, 2022 from $25.86 at September 30, 2022.

Tangible book value per share (non-GAAP) increased to $17.97 at December 31, 2022 from $16.93 at September 30, 2022. This increase was the result of the change in accumulated other comprehensive income as well as earnings net of dividends for the quarter. The balance in accumulated other comprehensive income improved $13.1 million to $149.0 million at December 31, 2022 from $162.0 million at September 30, 2022.

Asset Quality

Nonperforming assets totaled $17.7 million at December 31, 2022, a decrease of $9.0 million compared to $26.7 million at September 30, 2022 and a decrease of $12.9 million compared to $30.6 million at December 31, 2021.

Nonaccrual loans totaled $12.6 million, a decrease of $3.3 million as compared to September 30, 2022 and a decrease of $15.4 million as compared to December 31, 2021. During the quarter ended September 30, 2022, one large relationship with a balance of $10.2 million was upgraded to accrual status. This upgrade resulted in $1.5 million in interest income being recognized during the third quarter of 2022.

The ratio of the allowance for credit losses (ACL) to total loans was 1.03% at December 31, 2022, 1.03% at September 30, 2022 and 1.04% at December 31, 2021. The ratio of annualized net charge-offs (recoveries) to total loans was 0.004% for the quarter ended December 31, 2022 compared to (0.04%) for the quarter ended September 30, 2022 and 0.03% for the quarter ended December 31, 2021.

Fourth Quarter 2022 vs Third Quarter 2022 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2022 increased $2.3 million to $16.3 million compared to $14.0 million for the third quarter of 2022.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $2.5 million, or 12.5%, to $17.2 million for quarter ended December 31, 2022 as compared to $19.6 million for the quarter ended September 30, 2022. The decrease in net earnings available to common shareholders resulted in part from $1.5 million in nonaccrual interest income recapture recorded in the quarter ended September 30, 2022 and from expense of $0.7 million incurred in the quarter ended December 31, 2022 related to year end accruals for salaries and benefits.

Net interest income for the fourth quarter of 2022 was $47.9 million as compared to $49.1 million for the third quarter of 2022, a decrease of $1.2 million. When adjusted for nonaccrual interest income recaptured during the third quarter of $1.5 million, net interest income actually increased $0.3 million in the quarterly comparison.

Fourth quarter 2022 FTE net interest margin (non-GAAP) of 3.37% included 8 basis points related to purchase accounting adjustments compared to 3.50% for the third quarter in 2022, which included 6 basis points related to purchase accounting adjustment as well as 10 bps related to the $1.5 million in nonaccrual interest income recapture.

Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $2.004 billion, or 31.0% of total assets at September 30, 2022. The average balance of investment securities decreased $114.6 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 8 basis point to 2.48% from 2.40% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized loss of $216.9 million at September 30, 2022.

The FTE average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 3.83% to 4.06%. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the third quarter of 2022 to 0.99% for the fourth quarter of 2022.

Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the third quarter of 2022. This increase was a result of rising interest rates and increased competition for deposits.

Non-interest income decreased $0.9 million from $9.0 million to $8.1 million in the sequential-quarter comparison, attributable to decreases in mortgage income of $0.6 million and interchange fee income of $0.2 million.

Non-interest expense for the fourth quarter of 2022 was $35.0 million compared to $35.9 million for the third quarter of 2022, a decrease of $0.9 million, largely attributed to the decrease in acquisition charges and charter conversion expenses of $2.5 million which was partially offset by $0.9 million in expenses related to the operations of Beach Bank.

Fourth Quarter 2022 vs. Fourth Quarter 2021 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2022 totaled $16.3 million compared to $15.8 million for the fourth quarter of 2021, an increase of $0.5 million or 3.2%.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.2 million, or 7.3%, to $17.2 million for quarter ended December 31, 2022 as compared to $16.0 million for the quarter ended December 31, 2021.

Net interest income for the fourth quarter of 2022 was $47.9 million, an increase of $8.2 million or 20.5% when compared to the fourth quarter of 2021. Fully tax equivalent ("FTE") net interest income (non-GAAP) totaled $48.9 million and $40.4 million for the fourth quarter of 2022 and 2021, respectively. Purchase accounting adjustments increased $0.2 million for the fourth quarter comparisons.

Fourth quarter of 2022 FTE net interest margin (non-GAAP) was 3.37% which included 8 basis points related to purchase accounting adjustments compared to 3.14% for the same quarter in 2021, which included 7 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 22 basis point in prior year quarterly comparison primarily due to an increase in average loans and investment securities as well as interest rate increases.

Non-interest income decreased $1.5 million for the fourth quarter of 2022 as compared to the fourth quarter of 2021. This decrease was attributable to a $0.9 million decrease in mortgage income as well as a $1.3 million bargain purchase gain recorded in the fourth quarter of 2021.

Fourth quarter 2022 non-interest expense was $35.0 million, an increase of $4.3 million, or 13.8% as compared to the fourth quarter of 2021. For the fourth quarter of 2022, charges related to the ongoing operations of the Cadence Bank branches totaled $0.7 million and Beach Bank totaled $3.0 million.

Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $1.774 billion, or 29.2% of total assets at December 31, 2021. For the fourth quarter of 2022 compared to the fourth quarter of 2021, the average balance of investment securities increased $412.3 million. The average tax equivalent yield on investment securities (non-GAAP) increased 51 basis points to 2.48% from 1.97% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized gain of $10.7 million at December 31, 2021.

The FTE average yield on all earning assets (non-GAAP) increased 60 basis points in prior year quarterly comparison, from 3.46% for the fourth quarter of 2021 to 4.06% for the fourth quarter of 2022. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the fourth quarter of 2021 to 0.99% for the fourth quarter of 2022.

Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the fourth quarter of 2021. This increase was a result of rising interest rates and increased competition for deposits.

Year-over-Year Earnings Comparison

In the year-over-year comparison, net income available to common shareholders decreased $1.2 million, or 1.9%, from $64.2 million for the year ended December 31, 2021 to $62.9 million for the same period ended December 31, 2022. In the year-over-year comparison, PPP loan fee income decreased $9.8 million.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $3.9 million, or 6.1%, to $68.3 million for the year ended December 31, 2022 as compared to $64.4 million for the same period ended December 31, 2021.

Net interest income after provision for credit losses was $172.2 million for the twelve months ended December 31, 2022, an increase of $14.0 million as compared to the same period ended December 31, 2021, primarily due to interest income earned on a higher volume of loans and securities and increased interest rates.

Non-interest income was $37.0 million for the year ended December 31, 2022, a decrease of $0.5 million as compared to the same period ended December 31, 2021. Increased service charges on deposit accounts and interchange fee income of $2.5 million was offset by a decrease in mortgage income of $4.5 million.

Non-interest expense was $130.5 million for the year ended December 31, 2022, an increase of $15.9 million as compared to the same period ended December 31, 2021. An increase of $4.8 million in acquisition and charter conversion charges and $3.3 million related to the ongoing operations of the Cadence Bank branches and $5.1 million related to the Beach Bank branch operations accounted for the increase in non-interest expense.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.21 per share, a 5% increase over previous quarter, to be paid on its common stock on February 24, 2023 to shareholders of record as of the close of business on February 8, 2023.

Conference Call

The Company will host a conference call for analysts and investors to discuss the Company's financial results at 9:30 a.m. Central Time on Thursday, January 26, 2023. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BI8f25f7d93b164314bb9ed2b26dcd36a1. 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, average tax equivalent 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, efficiency ratio, operating and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company's results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value, net earnings available to common shareholders, diluted earnings per share, efficiency ratio, 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 and pending 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) the effects of war or other conflicts including the impacts relating to or resulting from Russia's military action in Ukraine; and (15) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.

These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the SEC, which are available on the SEC's website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands except per share data)

EARNINGS DATA

Quarter Ended 12/31/22

Quarter Ended 9/30/22

Quarter Ended 6/30/22

Quarter Ended 3/31/22

Quarter Ended 12/31/21

Total Interest Income

$

57,923

 

$

53,874

 

$

45,847

 

$

42,741

 

$

43,885

 

Total Interest Expense

 

10,002

 

 

4,726

 

 

3,746

 

 

4,102

 

 

4,128

 

Net Interest Income

 

47,921

 

 

49,148

 

 

42,101

 

 

38,639

 

 

39,757

 

Net Interest Income excluding PPP Fee Income

 

47,899

 

 

48,986

 

 

41,563

 

 

37,643

 

 

37,151

 

FTE net interest income*

 

48,916

 

 

50,122

 

 

43,042

 

 

39,459

 

 

40,425

 

Provision for credit losses

 

705

 

 

4,300

 

 

600

 

 

-

 

 

(1,104

)

Non-interest income

 

8,131

 

 

9,022

 

 

8,664

 

 

11,157

 

 

9,593

 

Non-interest expense

 

35,040

 

 

35,903

 

 

30,955

 

 

28,590

 

 

30,789

 

Earnings before income taxes

 

20,307

 

 

17,967

 

 

19,210

 

 

21,206

 

 

19,665

 

Income tax expense

 

4,012

 

 

3,924

 

 

3,457

 

 

4,377

 

 

3,874

 

Net income available to common shareholders

$

16,295

 

$

14,043

 

$

15,753

 

$

16,829

 

$

15,791

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

Basic earnings per share

$

0.68

 

$

0.61

 

$

0.77

 

$

0.81

 

$

0.75

 

Diluted earnings per share

 

0.67

 

 

0.61

 

 

0.76

 

 

0.81

 

 

0.75

 

Diluted earnings per share, operating*

 

0.71

 

 

0.85

 

 

0.80

 

 

0.72

 

 

0.76

 

Quarterly dividends per share

 

.20

 

 

.19

 

 

.18

 

 

.17

 

 

.16

 

Book value per common share at end of period

 

26.92

 

 

25.86

 

 

27.30

 

 

28.82

 

 

32.17

 

Tangible book value per common share at period end*

 

17.97

 

 

16.93

 

 

18.32

 

 

19.79

 

 

23.31

 

Market price at end of period

 

32.01

 

 

29.87

 

 

28.60

 

 

33.66

 

 

38.62

 

Shares outstanding at period end

 

24,025,762

 

 

24,028,120

 

 

20,529,124

 

 

20,484,830

 

 

21,019,037

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

24,027,189

 

 

22,861,795

 

 

20,507,451

 

 

20,697,946

 

 

21,020,768

 

Diluted

 

24,168,544

 

 

22,979,529

 

 

20,615,928

 

 

20,846,997

 

 

21,175,323

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

Total assets

$

6,446,521

 

$

6,372,872

 

$

6,112,241

 

$

6,202,669

 

$

5,664,336

 

Loans and leases

 

3,749,561

 

 

3,492,110

 

 

3,013,228

 

 

2,945,877

 

 

2,956,657

 

Total deposits

 

5,515,713

 

 

5,503,040

 

 

5,347,415

 

 

5,361,480

 

 

4,814,945

 

Total common equity

 

617,049

 

 

630,744

 

 

593,410

 

 

666,561

 

 

672,121

 

Total tangible common equity*

 

408,365

 

 

424,873

 

 

408,855

 

 

480,922

 

 

500,639

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

Annualized return on avg assets (ROA)

 

1.01

%

 

0.88

%

 

1.03

%

 

1.09

%

 

1.12

%

Annualized return on avg assets, operating*

 

1.07

%

 

1.23

%

 

1.08

%

 

0.97

%

 

1.13

%

Annualized pre-tax, pre-provision, operating*

 

1.38

%

 

1.63

%

 

1.36

%

 

1.24

%

 

1.33

%

Annualized return on avg common equity, operating*

 

11.14

%

 

12.46

%

 

11.12

%

 

8.99

%

 

9.53

%

Annualized return on avg tangible common equity, oper*

 

16.83

%

 

18.49

%

 

16.14

%

 

12.46

%

 

12.80

%

Average loans to average deposits

 

67.98

%

 

63.46

%

 

56.35

%

 

54.95

%

 

61.41

%

FTE Net Interest Margin*

 

3.37

%

 

3.50

%

 

3.09

%

 

2.78

%

 

3.14

%

Efficiency Ratio

 

61.42

%

 

60.70

%

 

59.87

%

 

56.48

%

 

61.56

%

Efficiency Ratio, operating*

 

59.34

%

 

54.55

%

 

57.66

%

 

58.37

%

 

59.91

%

*See reconciliation of Non-GAAP financial measures

 

 

 

 

 

CREDIT QUALITY

 

 

 

 

 

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

 

1.03

%

 

1.03

%

 

1.04

%

 

1.06

%

 

1.04

%

Nonperforming assets to tangible equity + ACL

 

3.76

%

 

6.01

%

 

6.41

%

 

6.31

%

 

5.88

%

Nonperforming assets to total loans + OREO

 

0.47

%

 

0.72

%

 

0.84

%

 

0.93

%

 

1.03

%

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

 

0.004

%

 

(0.04

%)

 

(0.04

%)

 

(0.12

%)

 

0.03

%

 

 

 

 

 

 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET

Dec 31, 2022

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Assets

 

 

 

 

 

Cash and cash equivalents

$

145,315

 

$

163,841

 

$

356,771

 

$

802,613

 

$

919,713

 

Securities available for sale

 

1,257,101

 

 

1,379,410

 

 

1,489,247

 

 

1,591,677

 

 

1,751,832

 

Securities held to maturity

 

691,484

 

 

593,553

 

 

593,154

 

 

372,062

 

 

-

 

Other investments

 

33,944

 

 

31,060

 

 

22,588

 

 

22,226

 

 

22,226

 

Total investment securities

 

1,982,529

 

 

2,004,023

 

 

2,104,989

 

 

1,985,965

 

 

1,774,058

 

Loans held for sale

 

4,443

 

 

2,225

 

 

6,703

 

 

8,213

 

 

7,678

 

Total loans

 

3,774,157

 

 

3,719,388

 

 

3,124,924

 

 

2,970,246

 

 

2,959,553

 

Allowance for credit losses

 

(38,917

)

 

(38,356

)

 

(32,400

)

 

(31,620

)

 

(30,742

)

Loans, net

 

3,735,240

 

 

3,681,032

 

 

3,092,524

 

 

2,938,626

 

 

2,928,811

 

Premises and equipment

 

153,068

 

 

150,480

 

 

132,724

 

 

131,813

 

 

132,448

 

Other Real Estate Owned

 

4,832

 

 

10,328

 

 

1,985

 

 

2,835

 

 

2,565

 

Goodwill and other intangibles

 

214,890

 

 

214,708

 

 

184,323

 

 

185,104

 

 

186,171

 

Other assets

 

221,400

 

 

228,211

 

 

157,406

 

 

140,926

 

 

125,970

 

Total assets

$

6,461,717

 

$

6,454,848

 

$

6,037,425

 

$

6,196,095

 

$

6,077,414

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Non-interest bearing deposits

$

1,630,203

 

$

1,770,848

 

$

1,658,288

 

$

1,648,451

 

$

1,550,381

 

Interest-bearing deposits

 

3,864,201

 

 

3,780,450

 

 

3,647,909

 

 

3,789,333

 

 

3,676,403

 

Total deposits

 

5,494,404

 

 

5,551,298

 

 

5,306,197

 

 

5,437,784

 

 

5,226,784

 

Borrowings

 

130,100

 

 

90,000

 

 

-

 

 

-

 

 

-

 

Subordinated debentures

 

145,027

 

 

144,952

 

 

144,876

 

 

144,801

 

 

144,726

 

Other liabilities

 

45,523

 

 

47,127

 

 

25,900

 

 

23,117

 

 

29,732

 

Total liabilities

 

5,815,054

 

 

5,833,377

 

 

5,476,973

 

 

5,605,655

 

 

5,401,242

 

Total shareholders' equity

 

646,663

 

 

621,471

 

 

560,452

 

 

590,440

 

 

676,172

 

Total liabilities and shareholders' equity

$

6,461,717

 

$

6,454,848

 

$

6,037,425

 

$

6,196,095

 

$

6,077,414

 

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Three Months Ended

12/31/22

9/30/22

6/30/22

3/31/22

12/31/21

Interest Income:

 

 

 

 

 

Loans, including fees

$

45,583

 

$

41,456

 

$

34,058

 

$

33,354

 

$

36,035

 

Investment securities

 

11,251

 

 

11,598

 

 

11,152

 

 

8,574

 

 

7,032

 

Accretion of purchase accounting adjustments

 

1,086

 

 

818

 

 

605

 

 

800

 

 

800

 

Other interest income

 

3

 

 

2

 

 

32

 

 

13

 

 

18

 

Total interest income

 

57,923

 

 

53,874

 

 

45,847

 

 

42,741

 

 

43,885

 

Interest Expense:

 

 

 

 

 

Deposits

 

7,206

 

 

2,863

 

 

1,923

 

 

2,302

 

 

2,371

 

Borrowings

 

1,015

 

 

92

 

 

-

 

 

-

 

 

-

 

Subordinated debentures

 

1,946

 

 

1,886

 

 

1,841

 

 

1,819

 

 

1,818

 

Accretion of purchase accounting adjustments

 

(165

)

 

(115

)

 

(18

)

 

(19

)

 

(61

)

Total interest expense

 

10,002

 

 

4,726

 

 

3,746

 

 

4,102

 

 

4,128

 

Net interest income

 

47,921

 

 

49,148

 

 

42,101

 

 

38,639

 

 

39,757

 

Provision for credit losses

 

705

 

 

4,300

 

 

600

 

 

-

 

 

(1,104

)

Net interest income after provision for credit losses

 

47,216

 

 

44,848

 

 

41,501

 

 

38,639

 

 

40,861

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

Service charges on deposit accounts

 

2,277

 

 

2,219

 

 

2,038

 

 

2,040

 

 

1,901

 

Mortgage Income

 

625

 

 

1,221

 

 

1,227

 

 

1,230

 

 

1,556

 

Interchange Fee Income

 

3,093

 

 

3,310

 

 

3,102

 

 

3,197

 

 

3,029

 

Gain (Loss) on securities, net

 

-

 

 

1

 

 

(80

)

 

(3

)

 

36

 

Financial Assistance Award/Bank Enterprise Award/RRP Grant

 

-

 

 

-

 

 

171

 

 

702

 

 

-

 

Bargain Purchase Gain and (Loss) on Sale of Land

 

-

 

 

-

 

 

165

 

 

-

 

 

1,300

 

BOLI income from death proceeds

 

-

 

 

-

 

 

-

 

 

1,630

 

 

-

 

Other charges and fees

 

2,136

 

 

2,271

 

 

2,041

 

 

2,361

 

 

1,771

 

Total non-interest income

 

8,131

 

 

9,022

 

 

8,664

 

 

11,157

 

 

9,593

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

19,934

 

 

19,099

 

 

17,237

 

 

16,799

 

 

17,519

 

Occupancy expense

 

4,305

 

 

3,826

 

 

3,828

 

 

3,876

 

 

3,948

 

FDIC/OCC premiums

 

514

 

 

496

 

 

546

 

 

566

 

 

550

 

Marketing

 

135

 

 

50

 

 

122

 

 

86

 

 

113

 

Amortization of core deposit intangibles

 

1,309

 

 

1,227

 

 

1,064

 

 

1,064

 

 

982

 

Other professional services

 

971

 

 

1,256

 

 

768

 

 

563

 

 

1,282

 

Acquisition and charter conversion charges

 

1,190

 

 

3,640

 

 

1,172

 

 

408

 

 

1,602

 

Other non-interest expense

 

6,682

 

 

6,309

 

 

6,218

 

 

5,228

 

 

4,793

 

Total Non-interest expense

 

35,040

 

 

35,903

 

 

30,955

 

 

28,590

 

 

30,789

 

Earnings before income taxes

 

20,307

 

 

17,967

 

 

19,210

 

 

21,206

 

 

19,665

 

Income tax expense

 

4,012

 

 

3,924

 

 

3,457

 

 

4,377

 

 

3,874

 

Net income available to common shareholders

$

16,295

 

$

14,043

 

$

15,753

 

$

16,829

 

$

15,791

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.67

 

$

0.61

 

$

0.76

 

$

0.81

 

$

0.75

 

Diluted earnings per common share, operating*

$

0.71

 

$

0.85

 

$

0.80

 

$

0.72

 

$

0.76

 

*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Year to Date

 

 

2022

 

 

 

2021

 

 

Interest Income:

 

 

 

 

 

Loans, including fees

 

$

152,741

 

 

$

135,780

 

 

PPP loan fee income

 

 

1,718

 

 

 

11,499

 

 

Investment securities

 

 

42,575

 

 

 

25,420

 

 

Accretion of purchase accounting adjustments

 

 

3,309

 

 

 

3,924

 

 

Other interest income

 

50

 

 

122

 

Total interest income

 

 

200,393

 

 

 

176,745

 

 

Interest Expense:

 

 

 

 

 

Deposits

 

 

14,295

 

 

 

12,304

 

 

Borrowings

 

 

1,107

 

 

 

340

 

 

Subordinated debentures

 

 

7,492

 

 

 

7,279

 

 

Amortization of purchase accounting adjustments

 

(317

)

 

(242

)

Total interest expense

 

22,577

 

 

19,681

 

Net interest income

 

 

177,816

 

 

 

157,064

 

 

Provision for credit losses

 

5,605

 

 

(1,104

)

Net interest income after provision for credit losses

 

 

172,211

 

 

 

158,168

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

Service charges on deposit accounts

 

 

8,668

 

 

 

7,264

 

 

Mortgage Income

 

 

4,303

 

 

 

8,823

 

 

Interchange Fee Income

 

 

12,702

 

 

 

11,562

 

 

Gain (loss) on securities, net

 

 

(82

)

 

 

143

 

 

Financial Assistance Award/Bank Enterprise Award/RRP Grant

 

 

873

 

 

 

1,826

 

 

Bargain Purchase Gain and Loss on Sale of Fixed Assets

 

165

 

 

 

903

 

BOLI income from death proceeds

 

1,630

 

 

 

-

 

Other charges and fees

 

8,702

 

 

6,952

 

Total non-interest income

 

 

36,961

 

 

 

37,473

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

 

73,077

 

 

 

65,856

 

 

Occupancy expense

 

 

15,835

 

 

 

15,562

 

 

FDIC/OCC premiums

 

 

2,122

 

 

 

2,074

 

 

Marketing

 

 

393

 

 

 

391

 

 

Amortization of core deposit intangibles

 

 

4,664

 

 

 

4,137

 

 

Other professional services

 

 

3,558

 

 

 

4,198

 

 

Acquisition & charter conversion charges

 

 

6,410

 

 

 

1,607

 

 

Other non-interest expense

 

24,424

 

 

20,734

 

Total Non-interest expense

 

130,483

 

 

114,559

 

Earnings before income taxes

 

 

78,689

 

 

 

81,082

 

 

Income tax expense

 

15,770

 

 

16,915

 

Net income available to common shareholders

$

62,919

 

$

64,167

 

 

 

 

 

 

Diluted earnings per common share

$

2.84

 

$

3.03

 

Diluted earnings per common share, operating*

$

3.08

 

$

3.04

 

*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF LOANS

Dec 31, 2022

Percent of Total

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Percent of Total

Commercial, financial and agricultural

$

506,907

 

13.4

%

$

489,225

 

$

379,363

 

$

364,702

 

$

375,379

 

12.7

%

Real estate – construction

 

475,956

 

12.6

%

 

481,100

 

 

429,946

 

 

387,290

 

 

364,075

 

12.3

%

Real estate – commercial

 

1,626,066

 

43.0

%

 

1,595,944

 

 

1,319,821

 

 

1,249,203

 

 

1,242,529

 

41.9

%

Real estate – residential

 

1,094,204

 

29.0

%

 

1,082,488

 

 

932,268

 

 

911,568

 

 

916,179

 

30.9

%

Lease Financing Receivable

 

2,118

 

0.1

%

 

1,907

 

 

2,283

 

 

2,409

 

 

2,556

 

0.1

%

Obligations of States & subdivisions

 

26,143

 

0.7

%

 

25,757

 

 

20,784

 

 

15,842

 

 

16,765

 

0.5

%

Consumer

 

42,763

 

1.1

%

 

42,967

 

 

40,459

 

 

39,233

 

 

42,070

 

1.4

%

Loans held for sale

 

4,443

 

0.1

%

 

2,225

 

 

6,703

 

 

8,213

 

 

7,678

 

0.2

%

Total loans

$

3,778,600

 

100

%

$

3,721,613

 

$

3,131,627

 

$

2,978,460

 

$

2,967,231

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPOSITION OF DEPOSITS

Dec 31, 2022

Percent of Total

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Percent of Total

Non-interest bearing

$

1,630,203

 

29.7

%

$

1,770,848

 

$

1,658,288

 

$

1,648,451

 

$

1,550,381

 

29.7

%

NOW and other

 

1,769,699

 

32.2

%

 

1,786,213

 

 

1,790,980

 

 

1,885,145

 

 

1,771,510

 

33.9

%

Money Market/Savings

 

1,368,108

 

24.9

%

 

1,423,953

 

 

1,326,245

 

 

1,337,419

 

 

1,320,284

 

25.3

%

Time Deposits of less than $250,000

 

590,564

 

10.7

%

 

418,931

 

 

400,354

 

 

424,183

 

 

445,879

 

8.5

%

Time Deposits of $250,000 or more

 

135,830

 

2.5

%

 

151,353

 

 

130,330

 

 

142,539

 

 

138,730

 

2.6

%

Total Deposits

$

5,494,404

 

100

%

$

5,551,298

 

$

5,306,197

 

$

5,437,737

 

$

5,226,784

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY DATA

Dec 31, 2022

 

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

 

Nonaccrual loans

$

12,591

 

 

$

15,844

 

$

23,678

 

$

24,736

 

$

28,013

 

 

Loans past due 90 days and over

 

289

 

 

 

571

 

 

527

 

 

-

 

 

45

 

 

Total nonperforming loans

 

12,880

 

 

 

16,415

 

 

24,205

 

 

24,736

 

 

28,058

 

 

Other real estate owned

 

4,832

 

 

 

10,328

 

 

1,985

 

 

2,834

 

 

2,565

 

 

Total nonperforming assets

$

17,712

 

$

26,743

 

$

26,190

 

$

27,570

 

$

30,623

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

0.27

%

 

 

0.41

%

 

0.43

%

 

0.44

%

 

0.50

%

 

Nonperforming assets to total loans + OREO

 

0.47

%

 

 

0.72

%

 

0.84

%

 

0.93

%

 

1.03

%

 

ACL to nonperforming loans

 

302.15

%

 

 

233.66

%

 

133.86

%

 

127.83

%

 

109.57

%

 

ACL to total loans

 

1.03

%

 

 

1.03

%

 

1.04

%

 

1.06

%

 

1.04

%

 

 

 

 

 

 

 

 

 

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

$

39

 

 

$

(353

)

$

(329

)

$

(879

)

$

220

 

 

Annualized QTD net chg-offs (recs) to loans

 

0.004

%

 

 

(0.04

%)

 

(0.04

%)

 

(0.12

%)

 

0.03

%

 

FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(dollars in thousands)
 
Yield Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
Analysis December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021
Tax Tax Tax Tax Tax
Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/ Avg Equivalent Yield/
Balance interest Rate Balance interest Rate Balance interest Rate Balance interest Rate Balance interest Rate
 
Taxable securities

$

1,522,953

$

8,312

2.18

%

$

1,612,066

$

8,723

2.16

%

$

1,634,679

$

8,372

2.05

%

$

1,413,523

$

6,152

1.74

%

$

1,166,432

$

5,059

1.73

%

Tax-exempt
securities

 

453,651

 

3,934

3.47

%

 

479,168

 

3,849

3.21

%

 

492,405

 

3,721

3.02

%

 

483,780

 

3,242

2.68

%

 

397,906

 

2,641

2.65

%

Total investment
securities

 

1,976,604

 

12,246

2.48

%

 

2,091,234

 

12,572

2.40

%

 

2,127,084

 

12,093

2.27

%

 

1,897,303

 

9,394

1.98

%

 

1,564,338

 

7,700

1.97

%

in other banks

 

72,910

 

3

0.02

%

 

143,867

 

2

0.01

%

 

432,851

 

32

0.03

%

 

825,877

 

13

0.01

%

 

634,541

 

18

0.01

%

Loans

 

3,749,561

 

46,670

4.98

%

 

3,492,110

 

42,274

4.84

%

 

3,013,228

 

34,663

4.60

%

 

2,945,877

 

34,154

4.64

%

 

2,956,657

 

36,835

4.98

%

Total Interest
earning assets

 

5,799,075

 

58,919

4.06

%

 

5,727,211

 

54,848

3.83

%

 

5,573,163

 

46,788

3.36

%

 

5,669,057

 

43,561

3.07

%

 

5,155,536

 

44,553

3.46

%

Other assets

 

647,446

 

645,661

 

539,078

 

533,612

 

508,800

Total assets

$

6,446,521

$

6,372,872

$

6,112,241

$

6,202,669

$

5,664,336

 
Interest-bearing
liabilities:
Deposits

$

3,801,632

$

7,042

0.74

%

$

3,777,059

$

2,748

0.29

%

$

3,706,711

$

1,905

0.21

%

$

3,786,808

$

2,283

0.24

%

$

3,330,603

$

2,310

0.28

%

Borrowed Funds

 

108,881

 

1,015

3.73

%

 

13,261

 

92

2.78

%

 

-

 

-

0.00

%

 

-

 

-

 

-

 

-

0.00

%

Subordinated
debentures

 

144,985

 

1,946

5.37

%

 

144,910

 

1,886

5.21

%

 

144,834

 

1,841

5.08

%

 

144,759

 

1,819

5.03

%

 

144,684

 

1,818

5.03

%

Total interest
bearing liabilities

 

4,055,498

 

10,002

0.99

%

 

3,935,230

 

4,726

0.48

%

 

3,851,545

 

3,746

0.39

%

 

3,931,567

 

4,102

0.42

%

 

3,475,287

 

4,128

0.48

%

Other liabilities

 

1,773,974

 

1,806,898

 

1,667,286

 

1,604,541

 

1,516,928

Shareholders' equity

 

617,049

 

630,744

 

593,410

 

666,561

 

672,121

Total liabilities and
shareholders'
equity

$

6,446,521

$

6,372,872

$

6,112,241

$

6,202,669

$

5,664,336

 
Net interest
income (FTE)*

$

48,917

3.08

%

$

50,122

3.35

%

$

43,042

2.97

%

$

39,459

2.66

%

$

40,425

2.98

%

 
Net interest margin (FTE)*

3.37

%

3.50

%

3.09

%

2.78

%

3.14

%

 
Core net interest
margin*

3.29

%

3.44

%

3.04

%

2.73

%

3.07

%

 
*See reconciliation for Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)

 

Three Months Ended

 

Per Common Share Data

Dec 31, 2022

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Book value per common share

$

26.92

 

$

25.86

 

$

27.30

 

$

28.82

 

$

32.17

 

Effect of intangible assets per share

 

8.95

 

 

8.93

 

 

8.98

 

 

9.03

 

 

8.86

 

Tangible book value per common share

$

17.97

 

$

16.93

 

$

18.32

 

$

19.79

 

$

23.31

 

 

Diluted earnings per share

$

0.68

 

$

0.61

 

$

0.76

 

$

0.81

 

$

0.75

 

Effect of acquisition and charter conversion charges

 

0.05

 

 

0.16

 

 

0.05

 

 

0.02

 

 

0.07

 

Tax on acquisition and charter conversion charges

 

(0.02

)

 

(0.05

)

 

(0.01

)

 

-

 

 

(0.02

)

Initial provision for acquired loans

 

-

 

 

0.17

 

 

-

 

 

-

 

 

-

 

Tax on initial provision for acquired loans

 

-

 

 

(0.04

)

 

-

 

 

-

 

 

-

 

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

 

-

 

 

-

 

 

-

 

 

-

 

 

(0.06

)

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

 

-

 

 

-

 

 

-

 

 

-

 

 

0.02

 

Effect of Treasury awards

 

-

 

 

-

 

 

-

 

 

(0.03

)

 

-

 

BOLI income from death proceeds

 

-

 

 

-

 

 

-

 

 

(0.08

)

 

-

 

Diluted earnings per share, operating

$

0.71

 

$

0.85

 

$

0.80

 

$

0.72

 

$

0.76

 

 

Year to Date

 

 

2022

 

 

 

2021

 

 

Diluted earnings per share

 

$

2.84

 

 

$

3.03

 

 

Effect of acquisition and charter conversion charges

 

 

0.29

 

 

 

0.08

 

 

Tax on acquisition and charter conversion charges

 

 

(0.08

)

 

 

(0.02

)

 

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

 

 

(0.01

)

 

 

(0.04

)

 

Tax on loss on sale of fixed assets

 

 

-

 

 

 

0.01

 

 

Effect of Treasury awards

 

 

(0.04

)

 

 

(0.09

)

 

Tax on Treasury awards

 

 

0.01

 

 

 

0.02

 

 

BOLI income from death proceeds

 

 

(0.08

)

 

 

-

 

 

Effect on Contributions related to Treasury awards

 

 

0.01

 

 

 

0.07

 

 

Tax on Contributions related to Treasury awards

 

 

-

 

 

(0.02

)

 

Initial provision for acquired loans

 

 

0.18

 

 

-

 

 

Tax on initial provision for acquired loans

 

 

(0.04

)

 

-

 

 

Diluted earnings per share, operating

 

$

3.08

 

$

3.04

 

 

 

Year to Date

 

 

2022

 

 

 

2021

 

 

Net income available to common shareholders

 

$

62,919

 

 

$

64,167

 

 

Acquisition and charter conversion charges

 

 

6,410

 

 

 

1,607

 

 

Tax on acquisition and charter conversion charges

 

 

(1,621

)

 

 

(406

)

 

Bargain purchase gain and loss on sale of fixed assets

 

 

(165

)

 

 

(903

)

 

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

 

 

42

 

 

 

229

 

 

Treasury awards

 

 

(872

)

 

 

(1,826

)

 

Tax on Treasury awards

 

 

221

 

 

 

462

 

 

BOLI income from death proceeds

 

 

(1,630

)

 

 

-

 

 

Contributions related to Treasury awards

 

 

165

 

 

 

1,400

 

 

Tax on Contributions related to Treasury awards

 

 

(42

)

 

(354

)

 

Initial provision for acquired loans

 

 

3,855

 

 

-

 

 

Tax on initial provision for acquired loans

 

 

(976

)

 

-

 

 

Net earnings available to common shareholders, operating

 

$

68,306

 

$

64,376

 

 

 

 

 

 

Three Months Ended

Average Balance Sheet Data

 

Dec 31, 2022

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Total average assets

A

$

6,446,521

 

$

6,372,872

 

$

6,112,241

 

$

6,202,669

 

$

5,664,336

 

Total average earning assets

B

 

5,799,075

 

$

5,727,211

 

$

5,573,163

 

$

5,669,057

 

$

5,155,536

 

 

 

 

 

 

 

 

Common Equity

C

$

617,049

 

$

630,744

 

$

593,410

 

$

666,561

 

$

672,121

 

Less intangible assets

 

 

208,684

 

 

205,871

 

 

184,555

 

 

185,639

 

 

171,482

 

Total Tangible common equity

D

$

408,365

 

$

424,873

 

$

408,855

 

$

480,922

 

$

500,639

 

 

 

 

 

 

Three Months Ended

Net Interest Income Fully Tax Equivalent

 

Dec 31, 2022

Sept 30, 2022

June 30, 2022

Mar 31, 2022

Dec 31, 2021

Net interest income

E

$

47,921

 

$

49,148

 

$

42,101

 

$

38,639

 

$

39,757

 

Tax-exempt investment income

 

 

(2,939

)

 

(2,875

)

 

(2,780

)

 

(2,422

)

 

(1,973

)

Taxable investment income

 

 

3,934

 

 

3,849

 

 

3,721

 

 

3,242

 

 

2,641

 

Net Interest Income Fully Tax Equivalent

F

$

48,916

 

$

50,122

 

$

43,042

 

$

39,459

 

$

40,425

 

 

 

 

 

 

 

 

Annualized Net Interest Margin

E/B

 

3.31

%

 

3.43

%

 

3.02

%

 

2.73

%

 

3.08

%

Annualized Net Interest Margin, Fully Tax Equivalent

F/B

 

3.37

%

 

3.50

%

 

3.09

%

 

2.78

%

 

3.14

%

 

 

 

 

 

 

 

Total Interest Income, Fully Tax Equivalent

 

 

 

 

 

 

Total Interest Income

 

$

57,923

 

$

53,874

 

$

45,847

 

$

42,741

 

$

43,885

 

Tax-exempt investment income

 

 

(2,939

)

 

(2,875

)

 

(2,780

)

 

(2,422

)

 

(1,973

)

Taxable investment income

 

 

3,934

 

 

3,849

 

 

3,721

 

 

3,242

 

 

2,641

 

Total Interest Income, Fully Tax Equivalent

G

$

58,918

 

$

54,848

 

$

46,788

 

$

43,561

 

$

44,553

 

 

 

 

 

 

 

 

Yield on Average Earning Assets, Fully Tax Equivalent

G/B

 

4.06

%

 

3.83

%

 

3.36

%

 

3.07

%

 

3.46

%

 

 

 

 

 

 

 

Interest Income Investment Securities, Fully Tax Equivalent

 

 

 

 

 

 

Interest Income Investment Securities

 

$

11,251

 

$

11,598

 

$

11,152

 

$

8,574