First Bancshares, Inc. · OTC:FIBH
First Bancshares — Investor Presentation (August 2021)
44 slides from First Bancshares's investor presentation, Aug 4, 2021
Slide 1: The First Bancshares, Inc. August 2021
-@ Thekirst TheFirst BANCSHARES, INC. August 2021 NASDAQ: FBMS
Slide 2: Forward-looking statements
2 This IP 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 Ex
Slide 3: The First Bancshares: Building Shareholder Value
The First Bancshares: Building Shareholder Value 3
Slide 4: Our Company: Company Overview
57.8%Q2 ‘21 Efficiency Ratio, Operating (1) 19.2%Total Capital Ratio as of June 30, 2021 5thLargest Bank Headquartered in MS $5.5bnAssets as of June 30, 2021 12# of Closed Transactions since 2010 (2) 4 Our Company Company Overview 84Locations in Gulf South: MS, LA, AL, FL & GA 1996Bank Established i
Slide 5: Continuity of Leadership through Multiple Business Cycles
Continuity of Leadership through Multiple Business Cycles 5 Jerome BrownExecutive VPCommunity Development18 years experience Carol DanielExecutive VPCredit Administrator40 years experience Hayden MitchellExecutive VPLoan Ops & Mortgage 48 years experience Ion MixonExecutive VPRisk Manager22 years ex
Slide 6: Evolution of Our Franchise
Evolution of Our Franchise December 31, 2009 June 30, 2021 Total Assets ($mm) – Organic and Acquisitive Growth Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q2 ‘21 data as of 6/30/21 FBMS Branch (9) FBMS Branch (82) FBMS LPO (2) 6 Hattiesburg Hattiesburg Destin V
Slide 7: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 7 2015 Deposits by State June 30, 2021 Deposits by State Source: S&P Global Market Intelligence, Company documents2009 and 2015 data as of 6/30 2015 Loans by State June 30, 2021 Loans by State 2009 Loans by State 2009 Deposits by State
Slide 8: Our Market Demographics
Our Market Demographics 8 Source: S&P Global Market Intelligence Note: Demographic information may not be indicative of the characteristics of the particular markets in which we operate(1) Demographic data deposit weighted by county; deposit data as of 6/30/20 ‘21 – ‘26 Projected Population Growth (
Slide 9: Market Information and Historical Pricing
9 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 ‘21 Q2 ‘21 Average Stock Price ($) $9.21 $12.99 $14.54 $16.40 $18.88 $29.06 $35.08 $31.79 $24.54 $33.57 $38.54 Average Market Capitalization ($)In Millions $28.5 $57.3 $75.8 $88.1 $101.4 $277.4 $455.0 $542.9 $505.7 $707.5 $810.0 Average Daily Volume
Slide 10: Overview of Potential Whole Bank Opportunities
Shreveport Jacksonville New Orleans Birmingham Mobile Columbus Huntsville Montgomery Tallahassee Atlanta Baton Rouge Jackson LA MS AL FL GA 10 Overview of Potential Whole Bank Opportunities Source: S&P Global Market IntelligenceData as of most recent quarter availableNote: Excludes banks and thrifts
Slide 11: Seven Reasons to Invest in The First
Ten Years of Record Earnings Superior Performance and Execution Strategically Focused on Acquisitive and Organic Growth Strong Capital Structure Situated in Growing Markets Shareholder Value and Return Demonstrated Successful Leadership Team 11 Seven ReasonsTo Invest in The First
Slide 12: COVID-19 Pandemic Response
Moved as many as practical employees to work by remote accessIncreased the frequency of facility janitorial servicesRotated access as much as practical for employees whose function could not be performed remotelyProvided lunch daily to on site personnel to limit their off premise exposure during the
Slide 13: Credit Highlights
13 Credit Highlights Franchise and Management Strength Gulf South markets remain resilient through the COVID pandemic; unemployment well below national average84 locations across 5 states; ranked in the top 10 by deposit market share by county / parish in ~74% of our franchiseGeographically diversif
Slide 14: Gained: Building Franchise Value, Six Acquisitions 2018-21
14 Geography Mobile, AL MSA Tallahassee, FL MSA Tallahassee, FL MSA Hammond, LAMSA Destin, FLMSA Valdosta, GA MSA Date Closed March ‘18 April ‘18 November ‘18 March ‘19 November ‘19 April ‘20 Branches 9 5 6 7 6 8 41 Purchase Price Cash & Stock: $60.0M Cash & Stock: $30.5M Cash & Stock: $80.0M All St
Slide 15: Financial results
Financial results 15
Slide 16: Historical Performance Over Time: Ten Years of Record Earnings
EPS Net Income ($mm) 16 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Source: S&P Global Market Intelligence Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter(1) Refer to appendix for “Non
Slide 17: Net Interest Income Over Time
4.05% Net Interest Income Over Time 17 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM 3.63% 3.83% 3.93% 3.58% 4.06% 3.51% 3.93% 3.34% 4.00% Source: S&P Global Market IntelligenceAnnual data for the twelve months ended 12/31 of each respective year; quarterly data for the thr
Slide 18: Execution of Strategic Vision
Execution of Strategic Vision 18 Source: S&P Global Market Intelligence, Company documentsPricing data as of 7/23/21 Price Performance since 12/31/08 In 2009, FBMS formulated a strategic vision focused on branch expansion and acquisition of banks with assets less than $500 million in MS, AL, LA, FL
Slide 19: Historical Profitability Trends
Historical Profitability Trends 19 Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter(1) Refer to appendix for “Non-GAAP Reconciliation” * Inclusive of $7.0 million bargain purchase gain Reported ROAA (%) ROAA, Operating (%) (1)
Slide 20: Historical Profitability Trends
20 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income YTD (%) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Source: S&P Global Market Intelligence, Company Documents Data as of or for the three mon
Slide 21: Historical Balance Sheet Growth
Historical Balance Sheet Growth 21 Assets ($mm) Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q2 ’21 data as of 6/30/21 Loans ($mm) Deposits ($mm) 2011 – Q2 ‘21 CAGR: 24% 2011 – Q2 ‘21 CAGR: 25% 2011 – Q2 ‘21 CAGR: 25%
Slide 22: Acquisition and capital raise timeline with asset growth
Source: S&P Global Market Intelligence Note: Assets shown as of next quarter after close; dates are as of transaction close, unless otherwise specified 3/22/2013$22.0M Equity OfferingAssets: $789 million 4/23/2013Acquired First Baldwin Bancshares, Inc. Assets: $965 million 7/1/2014Acquired BCB Holdi
Slide 23: Strong Balance Sheet & Earnings Power
23 Strong Balance Sheet & Earnings Power TCE+ALL / Loans (%) Core Deposits (%) Efficiency Ratio (%) Loans / Deposits (%) 230 bps higher than peers 70 bps lower than peers 15 percentage points lower than peers 4 percentage points higher than peers Source: S&P Global Market Intelligence Data as of or
Slide 24: Loan & deposit information
Loan & deposit information 24
Slide 25: Loan Portfolio Overview
25 Loan Portfolio Overview Q2 ‘21 Loan Composition Historical Loan Composition Dollars in millions, unless otherwise notedSource: S&P Global Market IntelligenceData as of 12/31 each respective year; Q2 ‘21 data as of 6/30/21 Granular loan portfolio, average loan size excluding PPP is ~$155 thousandT
Slide 26: COVID-19 Loan Modifications
26 COVID-19 Loan Modifications Loan Modifications Resulting from COVID-19 as of 6/30/21 Loan Modification Trends Dollars in millions Source: Company documents(1) Total loans as of 6/30/21 excludes $157.8 million of PPP-related loans Aggregate Loan Modification Trends (1) Loan Modification Changes in
Slide 27: Escalated Monitoring
27 Escalated Monitoring Dollars in millionsSource: Company DocumentsData as of 6/30/21
Slide 28: Loan Concentrations Over Time
28 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Source: S&P Global Market IntelligenceNote: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Concentration of a banking institution’s total risk-based capital, respectiv
Slide 29: Overview of PPP Activity
29 Overview of PPP Activity As of June 30, 2021, we have 2,210 PPP loans totaling $157.8 million with average loan size of $71,000Net fees total $7.1 million at June 30, 2021 Dollars in millionsSource: Company documents
Slide 30: Loan Reserves Detail & Nonperforming Assets
30 Loan Reserves Detail & Nonperforming AssetsJune 30, 2021 Dollars in millionsSource: Company documents RESERVES TOTAL LOANS $3.037 BILLION $32.5 MILLION 1.07% LOAN BALANCES ALLL/CREDIT MARK ALLL/MARK TO LOANS NON PERFORMING ASSETS BALANCES % OF LOANS + OREO LEGACY $24.5 MILLION 0.8% TOTAL NON PERF
Slide 31: Asset Quality Over Time
31 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) Reserves / NPLs (%) Reserves / Loans (%) Source: S&P Global Market IntelligenceYearly data as of or for the twelve months ended each respective year; quarterly data as of or for the three months ended each respective quarter
Slide 32: History of Prudent Credit Culture
32 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: S&P Global Market Intelligence, FDICYearly data as of or for the twelve months ended each respective year; Note: FDIC data as of 12/31/2020
Slide 33: Attractive Deposit Portfolio
33 Attractive Deposit Portfolio Q2 ‘21 Deposit Composition (1) Historical Deposit Composition ($bn) Cost of Total Deposits Over Time (%) Dollars in millions unless otherwise noted Source: S&P Global Market Intelligence Annual data as of or for the twelve months ended each respective year; Quarterly
Slide 34: Capital & Liquidity
Capital & Liquidity 34
Slide 35: Capital & Liquidity Position
35 Capital & Liquidity Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%) CET1 Ratio (%) Source: S&P Global Market Intelligence Data as of 12/31 of each year, respectively; Q2 ‘21 data as of 6/30/21(1) Non-GAAP measure, see reconciliation to closest GAAP measure in appen
Slide 36: Appendix
Appendix 36
Slide 37: Deposit Market Share by State
37 Deposit Market Share by State Mississippi Florida Alabama Louisiana Georgia Source: S&P Global Market IntelligenceData as of 6/30/20Note: Deposits capped at $1.0 bn per branchNote: Deposit data pro forma for pending transactions
Slide 38: Deposit Market Share by Select MSAs
38 Deposit Market Share by Select MSAs Tallahassee, FL MSA Gulfport-Biloxi, MS MSA Fort Walton Beach-Destin, FL MSA Mobile, AL MSA Baton Rouge, LA MSA Hattiesburg, MS MSA Source: S&P Global Market IntelligenceData as of 6/30/20Note: Deposits capped at $1.0 bn per branchNote: Deposit data pro forma f
Slide 39: Historical Financials
Historical Financials 39 Source: S&P Global Market Intelligence 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, see reconciliation to closest GAAP measure
Slide 40: Non-GAAP Reconciliation
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Slide 41: Non-GAAP Reconciliation (cont.)
41 Non-GAAP Reconciliation (cont.)
Slide 42: Non-GAAP Reconciliation (cont.)
42 Non-GAAP Reconciliation (cont.)
Slide 43: Non-GAAP Reconciliation (cont.)
43 Non-GAAP Reconciliation (cont.)
Slide 44: Non-GAAP Reconciliation (cont.)
44 Non-GAAP Reconciliation (cont.)
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