First Bancshares, Inc. · OTC:FIBH
First Bancshares — Q1 2024 Earnings Presentation
36 slides from First Bancshares's earnings presentation, Apr 25, 2024
Slide 1: The First Bancshares, Inc. April 2024
TheFirst BANCSHARES, INC. April 2024 NASDAQ: FBMS
Slide 2: Safe Harbor & Forward Looking Statements
2 Safe Harbor & Forward Looking Statements ABOUT THE FIRST BANCSHARES, INC. The First Bancshares, Inc. (“FBMS” or the “Company”), headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida
Slide 3: Our Company: Company Overview
1.78% Cost of Deposits 15.2% Total Capital Ratio 5th Largest Bank Headquartered in MS $8.0bn Total Assets $23,000 Average Deposit Size (3) 3 Our Company Company Overview 77% Loans / Deposits 12.2% CET1 Ratio Data as of or for the three months ended 3/31/24 (1) Non-GAAP measure, refer to appendix for
Slide 4: Q1 2024 Highlights
Q1 2024 Highlights Key Highlights Data as of or for the three months ended 3/31/24 (1) Excludes public funds and ICS accounts (2) Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of 0.20% to 2.45% in Q1’24 divided by the change in average fed funds ra
Slide 5: Evolution of Our Franchise
New Orleans Mobile Baton Rouge Jackson Tallahassee Montgomery Shreveport Columbus Evolution of Our Franchise December 31, 2009 FBMS Branch (9) Hattiesburg Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively; Q1 ’24 data as of 3/31/24 March 31, 2024 V
Slide 6: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 6 2015 Deposits by State March 31, 2024 Deposits by State 2009 and 2015 data as of 6/30 2015 Loans by State March 31, 2024 Loans by State2009 Loans by State 2009 Deposits by State Mississippi 100% Mississippi 100% Mississippi 70% Alabama 23%
Slide 7: Financial Results
7 FINANCIAL RESULTS
Slide 8: Historical Performance Over Time
EPS Net Income ($mm) 8 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”
Slide 9: Net Interest Income Over Time
Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM, FTE (1) 3.34%3.83% 3.94% 4.02% Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer t
Slide 10: Historical Cost and Yield Analysis
Historical Cost and Yield Analysis 10Data as of or for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Quarterly Yields & Costs (%) 0.72% 0.91% 1.21% 1.54% 1.78% 3.69% 3.82% 3.52% 3.33% 3.26% 5.45% 5.99% 5.92% 6.03% 6.11% 2.51% 2.4
Slide 11: NIM Impact for the Quarter
11 NIM Impact for the Quarter Drivers of Change Q4 ‘23 to Q1 ‘24 Data as of or for the three months ended 12/31/23 and 3/31/24, respectively (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” N IM , F TE (1 ) C o re N IM , FT E (1 ) 3.33% 7 bps 3 bps 8 bps (0) bps (26) bps 2 bps 3
Slide 12: Historical Profitability Trends
Historical Profitability Trends 12Data as of or for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Reported ROAA (%) ROAA, Operating (%) (1) Reported ROATCE (%) (1) ROATCE, Operating (%) (1) PTPP ROAA, Oper. (1) 1.36% 1.36% 1.22%
Slide 13: Historical Profitability Trends
13 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q1 ‘24 (%) (2) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Data as of or for the three months ended each respective quarter (1) Non-GAAP meas
Slide 14: Deposit and Loan Information
14 DEPOSIT AND LOAN INFORMATION
Slide 15: Deposit Composition and Growth
0.23% 0.19% 0.18% 0.15% 0.21% 0.52% 0.72% 0.91% 1.21% 1.54% 1.78% 1.75% 1.76% 1.83% Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Jan '24 Feb '24 Mar '24 15 Deposit Composition Growth Historical Deposit Composition Cost of Total Deposits Over Time (%) Dollars in millio
Slide 16: Granular Loan Portfolio
16 Granular Loan Portfolio Dollars in millions Data as of 3/31/24 Size of our top 75 Relationships • Largest individual loan is $28.6 million total committed exposure • Total participations purchased are less than 3% of outstanding balances $43.1 $26.0 $17.5 $12.3 $10.0 1 10 25 50 75 Total Advanced
Slide 17: Balanced Loan Portfolio
17 Balanced Loan Portfolio Data as of 3/31/24 (1) Excludes owner-occupied CRE Loan Portfolio Mix CRE (1) Exposure by Type Granular loan portfolio, average loan size excluding PPP is ~$228 thousand Top 20 loans represent ~6% of total portfolio De Minimis consumer credit card loans ($1.6 million
Slide 18: Office Exposure
18 Office Exposure Data as of 3/31/24; Dollars in millions Professional Office by GeographyOffice Portfolio Maturity Florida 42% Georgia 27% Mississippi 15% Louisiana 10% Alabama 6% Office Portfolio Non-Owner Occupied % of Total Cumulative % Maturing in 2024 $14.3 7% 7% Maturing in 2025 12.6 6% 13%
Slide 19: Loan Concentrations Over Time
19 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Yearly data as of 12/31 each respective year; quarterly data for the three months ended each respective quarter Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Co
Slide 20: Asset Quality Over Time
20 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%)ACL / Loans (%) Yearly data as of or for the twelve months ended each respective year; quarterly data for the three months ended each respective quarter 2.1% 1.5% 1.0% 0.5% 0.4% 0.4% 2019 2020 2021 2022 2023 Q1
Slide 21: History of Prudent Credit Culture
0.5% 0.4% 0.3% 0.4% 0.3% 0.0% 0.2% (0.0%) (0.0%) (0.0%) 0.0% (0.0%) 0.1% 0.1% (0.1%) 0.1% 1.3% 2.5% 2.5% 1.6% 1.1% 0.7% 0.5% 0.4% 0.5% 0.5% 0.5% 0.5% 0.5% 0.3% 0.3% 0.3% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FBMS Banking Industry 21 History of Prudent Credit
Slide 22: Capital & Liquidity
22 CAPITAL & LIQUIDITY
Slide 23: Capital Position
23 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%)CET1 Ratio (%) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” 9.2% 8.3% 6.9%
Slide 24: Capital Position Including Unrealized Losses
24 Capital Position Including Unrealized Losses Data as of or for the three months ended 3/31/24 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calcul
Slide 25: Capital Appreciation & Returns to Shareholders
25 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share ($) (1) Dividends Declared per Share ($) Shares Repurchased (%) (3) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix f
Slide 26: Liquidity Position
26 Liquidity Position Gross Loans / Deposits (%) Funding Sources 84.9% 74.6% 68.9% 56.6% 55.8% 68.8% 80.0% 76.7% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2019 2020 2020 (ex. PPP) 2021 2021 (ex. PPP) 2022 2023 Q1 '24 Outstanding / Remaining Usage Bank Sources Available ($mm) Pledged ($mm) Availability ($m
Slide 27: Securities Portfolio Composition
27 Securities Portfolio Composition Dollars in millions Data as of or for the three months ended 3/31/24 Available-For-Sale Portfolio Summary Held-To-Maturity Government Agency 1% MBS 56% Corporates 3% Treasury 1% TE & TX Muni 40% Government Agency 3% MBS 46% Corporates 2% Treasury 10% TE & TX Muni
Slide 28: Appendix
28 APPENDIX
Slide 29: Historical Financials
Historical Financials 29 Dollars in thousands, except for per share data Annual data as of or for the twelve months ended each respective year; quarterly data as of or for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” For the Yea
Slide 30: Non-GAAP Reconciliation
30 Non-GAAP Reconciliation The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2020 2021 2022 2023 2023 2023 2023 2024 Net Income Available to Common $52,506 $64,167 $62,919 $75,457 $23,7
Slide 31: Non-GAAP Reconciliation (cont.)
31 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2023 2023 2023 2024 Net Interest Income After Provision for Credit Losses $64,780 $59,704 $56,415 $57,341 Non Interest Income 12,423
Slide 32: Non-GAAP Reconciliation (cont.)
32 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2020 2021 2022 2023 2023 2023 2023 2024 Operating Expense Total non-interest expense $106,341 $114,5
Slide 33: Non-GAAP Reconciliation (cont.)
33 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2023 2023 2023 2024 Total non-interest income $12,423 $19,324 $2,346 $12,679 Pre-tax non-operating items - (6,197) 9,708 -- Non-inte
Slide 34: Non-GAAP Reconciliation (cont.)
34 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2019 2020 2021 2022 2023 2023 2023 2023 2024 Total common equity $543,658 $644,815 $676,172 $646,663
Slide 35: Non-GAAP Reconciliation (cont.)
35 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2023 2023 2023 2024 Net Interest Income $66,030 $60,704 $57,665 $57,341 Tax-Exempt Investment Income (2,948) (2,929) (2,911) (2,946)
Slide 36: Non-GAAP Reconciliation (cont.)
36 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, June 30, September 30, December 31, March 31, (Dollars in thousands) 2023 2023 2023 2024 Interest Income Investment Securities $10,815 $10,614 $10,803 $11,248 Tax-Exempt Investment Income (2,948) (2,92