First Bancshares, Inc. · OTC:FIBH
First Bancshares — Investor Presentation (August 2022)
44 slides from First Bancshares's investor presentation, Aug 2, 2022
Slide 1: The First Bancshares, Inc. August 2022
TheFirst BANCSHARES, INC. August 2022 NASDAQ: FBMS
Slide 2: Safe Harbor
2 Safe Harbor ABOUT THE FIRST BANCSHARES, INC. The First Bancshares, Inc. (“FBMS” or the “Company”), headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida an
Slide 3: Forward Looking Statements
3 Forward Looking Statements This communication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements usually use words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “es
Slide 4: The First Bancshares: Building Shareholder Value
4 The First Bancshares: Building Shareholder Value
Slide 5: Our Company: Company Overview
58.3% Q2 ‘22 Efficiency Ratio, Operating (1) 18.3% Total Capital Ratio as of June 30, 2022 4th Largest Bank Headquartered in MS $6.7bn (3) Assets as of June 30, 2022 14 # of Closed Transactions since 2010 (2) 5 Our Company Company Overview 97 Locations in Southeast: MS, LA, AL, FL & GA(3) 1996 Bank
Slide 6: Continuity of Leadership through Multiple Business Cycles
Continuity of Leadership through Multiple Business Cycles 6 Responsible for devising and executing a disciplined and successful strategy of organic growth and strategic acquisitions Jarrett Nicholson Executive VP Chief Operating Officer 29 years experience M. Ray “Hoppy” Cole, Jr. President/CEO 36 Y
Slide 7: Evolution of Our Franchise
Evolution of Our Franchise December 31, 2009 June 30, 2022 (1) Total Assets ($mm) – Organic and Acquisitive Growth (1) FBMS Branch (9) Hattiesburg Source: S&P Global Market Intelligence Data as of 12/31 of each year, respectively; Q2 ’22 data as of 6/30/22 (1) Pro forma for recently completed acquis
Slide 8: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 8 2015 Deposits by State June 30, 2022 Deposits by State (1) Source: S&P Global Market Intelligence, Company documents 2009 and 2015 data as of 6/30 (1) Pro forma for recently completed acquisition of Beach Bancorp, Inc. 2015 Loans by State J
Slide 9: Our Market Demographics
Our Market Demographics 9 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 6/30/21; Pro forma for the completed acquisiti
Slide 10: Market Information and Historical Pricing
10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 ‘22 Average Stock Price ($) $9.21 $12.99 $14.54 $16.40 $18.88 $29.06 $35.08 $31.79 $24.54 $37.66 $31.10 Average Market Capitalization ($) In Millions $28.5 $57.3 $75.8 $88.1 $101.4 $277.4 $455.0 $542.9 $505.7 $791.7 $637.1 Average Daily Volume
Slide 11: Overview of Potential Whole Bank Opportunities
11 Overview of Potential Whole Bank Opportunities Source: S&P Global Market Intelligence Data as of 6/30/22 (1) Select Florida markets include banks and thrifts headquartered north of and including the Orlando, FL MSA; excludes merger targets and MHCs Opportunities by State Opportunities by Asset Si
Slide 12: Seven Reasons To Invest in The First
Eleven Years of Record Earnings Superior Performance and Execution Strategically Focused on Acquisitive and Organic Growth Strong Capital Structure Situated in Growing Markets Shareholder Value and Return Demonstrated Successful Leadership Team 12 Seven Reasons To Invest in The First
Slide 13: Credit Highlights
13 Credit Highlights Franchise and Management Strength Southeast markets remain resilient through the COVID pandemic; unemployment well below national average 90 locations across 5 states; ranked in the top 10 by deposit market share by county / parish in ~73% of our franchise Geographically diversi
Slide 14: Building Franchise Value: Seven Acquisitions
Building Franchise Value Seven Acquisitions | Closed 2018 – ‘22 14 Geography Mobile, AL MSA Tallahassee, FL MSA Tallahassee, FL MSA Hammond, LA MSA Destin, FL MSA Valdosta, GA MSA Starkville, MS Fort Walton Beach, FL Date Closed March ‘18 April ‘18 November ‘18 March ‘19 November ‘19 April ‘20 Decem
Slide 15: Financial results
15 Financial results
Slide 16: Historical Performance Over Time: Eleven Years of Record Earnings
EPS Net Income ($mm) 16 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Source: S&P Global Market Intelligence Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Refer to appendix for “No
Slide 17: Net Interest Income Over Time
4.05% Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM 3.34% 3.83% 3.94% 4.06% 3.93% 3.63% 3.58% 3.51% 4.02% Source: S&P Global Market Intelligence Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three
Slide 18: Execution of Strategic Vision
Execution of Strategic Vision 18 Source: S&P Global Market Intelligence, Company documents Pricing data as of 7/22/22 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 $500 million in MS, AL, LA, FL
Slide 19: Historical Profitability Trends
Historical Profitability Trends 19 Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter (1) Refer to appendix for “Non-GAAP Reconciliation” Reported ROAA (%) ROAA, Operating (%) (1) Reported ROATCE (%) (1) ROATCE, Operating (%) (1
Slide 20: Historical Profitability Trends
20 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q2 ‘22 (%) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Source: S&P Global Market Intelligence, Company Documents Data as of or for the three
Slide 21: Historical Balance Sheet Growth
Historical Balance Sheet Growth 21 Assets ($mm) Source: S&P Global Market Intelligence Data as of 12/31 of each year, respectively; Q2 ’22 data as of 6/30/22 Loans ($mm) Deposits ($mm) PPP Loans 2012 – Q2 ‘22 CAGR: 24% 2012 – Q2 ‘22 CAGR: 25% 2012 – Q2 ‘22 CAGR: 26%
Slide 22: Tangible Book Value and Transaction History
Source: S&P Global Market Intelligence Note: Assets shown as of next quarter after close; dates are as of transaction close, unless otherwise specified (1) Tangible book value decreased to $18.321 at June 30, 2022 from $18.32 at June 30, 2022. This decrease was the result of the repurchase of 600,00
Slide 23: Strong Balance Sheet & Earnings Power
23 Strong Balance Sheet & Earnings Power TCE+ALL / Loans (%) Core Deposits (%) Efficiency Ratio, Operating (%) (1) Loans / Deposits (%) 42 bps lower than peers 176 bps lower than peers 17 percentage points lower than peers 5.5 percentage points higher than peers Source: S&P Global Market Intelligenc
Slide 24: Loan & deposit information
24 Loan & deposit information
Slide 25: Loan Portfolio Overview
25 Loan Portfolio Overview Q2 ‘22 Loan Composition Historical Loan Composition Dollars in millions, unless otherwise noted Source: S&P Global Market Intelligence Data as of 12/31 each respective year Granular loan portfolio, average loan size excluding PPP is ~$171 thousand Top 25 loans represent ~1
Slide 26: Loan Growth Over Time
26 Loan Growth Over Time Quarterly Loan Growth (Ex. PPP) Over Time Source: S&P Global Market Intelligence Quarterly data as of the three months ended each respective quarter; Quarterly loan growth annualized
Slide 27: Granular Loan Portfolio
27 Granular Loan Portfolio Dollars in millions Source: Company Documents Data as of 6/30/22 Size of our top 75 Relationships Largest individual loan is $27.4 million total committed exposure Total participations purchased are less than 3% of outstanding balances Total Advanced % of Total Exposure Le
Slide 28: Loan Concentrations Over Time
28 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Source: S&P Global Market Intelligence Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Concentration of a banking institution’s total risk-based capital, respecti
Slide 29: Asset Quality Over Time
29 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%) ACL / Loans (%) Source: S&P Global Market Intelligence Yearly data as of or for the twelve months ended each respective year; Q2 ‘22 data for the three months ended 6/30/22
Slide 30: History of Prudent Credit Culture
30 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: S&P Global Market Intelligence, FDIC Yearly data as of or for the twelve months ended each respective year Note: FDIC data as of 12/31/21 (0.04%) FBMS NCOs / Avg. Loans for the three months ended 6/30/22
Slide 31: Attractive Deposit Portfolio
31 Attractive Deposit Portfolio Historical Deposit Composition ($bn) Cost of Total Deposits Over Time (%) Dollars in millions unless otherwise noted Source: S&P Global Market Intelligence; company documents Annual data as of or for the twelve months ended each respective year; Quarterly data as of o
Slide 32: Capital & Liquidity
32 Capital & Liquidity
Slide 33: Capital Position
33 Capital 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 ’22 data for the three months ended 6/30/22 (1) Non-GAAP measure, see reconciliation to closest GAAP measur
Slide 34: Capital Appreciation & Returns to Shareholders
34 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share ($) Dividends Declared per Share ($) Shares Repurchased (%) (3) Source: S&P Global Market Intelligence; Data as of 12/31 of each year, respectively; Q2 ’22 data as of or for the three months ended 6/30/22 (1) Tangible bo
Slide 35: Liquidity Position
35 Liquidity Position Source: S&P Global Market Intelligence Data as of 12/31 of each year, respectively; Q2 ’22 data for the three months ended 6/30/22 Gross Loans / Deposits (%) Cash & Cash Equivalents / Total Assets (%)
Slide 36: Appendix
36 Appendix
Slide 37: Deposit Market Share by State
37 Deposit Market Share by State Mississippi Florida Alabama Louisiana Georgia Source: S&P Global Market Intelligence Data as of 6/30/21 Note: Deposits capped at $1.0 bn per branch Note: 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 Intelligence Data as of 6/30/21 Note: Deposits capped at $1.0 bn per branch Note: Deposit data pro form
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
40 Non-GAAP Reconciliation
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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