First Bancshares, Inc. · OTC:FIBH
First Bancshares — Q2 2023 Earnings Presentation
34 slides from First Bancshares's earnings presentation, Jul 26, 2023
Slide 1: The First Bancshares, Inc. July 2023
TheFirst BANCSHARES, INC. July 2023 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
0.91% Cost of Deposits 14.5% Total Capital Ratio 5th Largest Bank Headquartered in MS $7.9bn Total Assets $22,845 Average Deposit Size (3) 3 Our Company Company Overview 77% Loans / Deposits 11.5% CET1 Ratio Data as of or for the three months ended 6/30/23 Non-GAAP measure, refer to appendix for “No
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights Key Highlights Data as of or for the three months ended 6/30/23 Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Excludes public funds and ICS accounts Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of 0.20% to 1.
Slide 5: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 5 2015 Deposits by State June 30, 2023 Deposits by State 2009 and 2015 data as of 6/30 2015 Loans by State June 30, 2023 Loans by State 2009 Loans by State 2009 Deposits by State
Slide 6: Financial results
6 Financial results
Slide 7: Historical Performance Over Time: Twelve Years of Record Earnings
EPS Net Income ($mm) 7 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”
Slide 8: Net Interest Income Over Time
Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM, FTE (1) 3.34% 3.83% 3.94% 3.63% 3.58% 3.51% 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-GA
Slide 9: Historical Cost and Yield Analysis
Historical Cost and Yield Analysis 9 Data as of or for the three months ended each respective quarter Quarterly Yields & Costs (%)
Slide 10: NIM Impact for the Quarter
10 NIM Impact for the Quarter Drivers of Change Q1 ‘23 to Q2 ‘23 Data as of 6/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Net Interest Margin, FTE (1) Core Net Interest Margin, FTE (1)
Slide 11: Historical Profitability Trends
Historical Profitability Trends 11 Data 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% 1.63% 1.38%
Slide 12: Historical Profitability Trends
12 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q2 ‘23 (%) 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 measure,
Slide 13: Deposit and Loan Information
13 Deposit AND Loan information
Slide 14: Deposit Composition Growth
14 Deposit Composition Growth Historical Deposit Composition Cost of Total Deposits Over Time (%) Dollars in millions unless otherwise noted 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) Excludes
Slide 15: Granular Loan Portfolio
15 Granular Loan Portfolio Dollars in millions Data as of 6/30/23 Size of our top 75 Relationships Largest individual loan is $40.5 million total committed exposure Total participations purchased are less than 3% of outstanding balances
Slide 16: Balanced Loan Portfolio
16 Balanced Loan Portfolio Data as of 6/30/23 (1) Excludes owner-occupied CRE Loan Portfolio Mix CRE (1) Exposure by Type Granular loan portfolio, average loan size excluding PPP is ~$202 thousand Top 25 loans represent ~8% of total portfolio De Minimis consumer credit card loans ($1.4 million or 0.
Slide 17: Office Exposure
17 Office Exposure Data as of 6/30/23; Dollars in millions Professional Office by Geography Office Portfolio Maturity Office Exposure Highlights Average professional office loan size Non-Owner Occupied: $758 thousand 17.8% of the total office portfolio matures through 2025 Professional office space
Slide 18: Loan Concentrations Over Time
18 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Yearly data as of 12/31 each respective year; Q1 ‘23 data for the three months ended 3/31/23; Q2 ‘23 data for the three months ended 6/30/23 Note: 100% and 300% are the interagency guidance figures for
Slide 19: Asset Quality Over Time
19 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%) ACL / Loans (%) Yearly data as of or for the twelve months ended each respective year; Q1 ‘23 data for the three months ended 3/31/23; Q2 ‘23 data for the three months ended 6/30/23
Slide 20: History of Prudent Credit Culture
20 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: FDIC Yearly data as of or for the twelve months ended each respective year Note: FDIC data as of 12/31/22 0.07% FBMS NCOs / Avg. Loans for the three months ended 6/30/23
Slide 21: Capital & Liquidity
21 Capital & Liquidity
Slide 22: Capital Position
22 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%) CET1 Ratio (%) Data as of 12/31 of each year, respectively; Q1 ‘23 data for the three months ended 3/31/23; Q2 ’23 data as of or for the three months ended 6/30/23 (1) Non-GAAP measure, refer to appendix for “
Slide 23: Capital Position Including Unrealized Losses
23 Capital Position Including Unrealized Losses Data as of or for the three months ended 6/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calcul
Slide 24: Capital Appreciation & Returns to Shareholders
24 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share (1) ($) Dividends Declared per Share ($) Shares Repurchased (%) (3) Data as of 12/31 of each year, respectively; Q2 ’23 data as of or for the three months ended 6/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GA
Slide 25: Liquidity Position
25 Liquidity Position Data as of 12/31 of each year, respectively; Q2 ’23 data as of or for the three months ended 6/30/23 (1) Letters of Credit Gross Loans / Deposits (%) Funding Sources Liquidity Highlights As of June 30, the Company’s liquidity ratio was 16.7%, as compared to the internal liquidi
Slide 26: Securities Portfolio Composition
26 Securities Portfolio Composition Dollars in millions Data as of or for the three months ended 6/30/23 Available-For-Sale Portfolio Summary Held-To-Maturity $2,020M Book Value 2.09% Book Yield ($157.6M) Unrealized Loss 5.8 Year Average Life 4.7 Year Effective Duration 67%/33% (AFS/HTM) Principal C
Slide 27: Appendix
27 Appendix
Slide 28: Historical Financials
Historical Financials 28 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”
Slide 29: Non-GAAP Reconciliation
29 Non-GAAP Reconciliation
Slide 30: Non-GAAP Reconciliation (cont.)
30 Non-GAAP Reconciliation (cont.)
Slide 31: Non-GAAP Reconciliation (cont.)
31 Non-GAAP Reconciliation (cont.)
Slide 32: Non-GAAP Reconciliation (cont.)
32 Non-GAAP Reconciliation (cont.)
Slide 33: Non-GAAP Reconciliation (cont.)
33 Non-GAAP Reconciliation (cont.)
Slide 34: Non-GAAP Reconciliation (cont.)
34 Non-GAAP Reconciliation (cont.)