First Bancshares, Inc. · OTC:FIBH
First Bancshares — Investor Presentation (May 2022)
47 slides from First Bancshares's investor presentation, May 2, 2022
Slide 1: The First Bancshares, Inc. May 2022
TheFirst BANCSHARES, INC. May 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 Bank. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s sto
Slide 3: Forward Looking Statements
3 Forward Looking Statements This slide presentation 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 am
Slide 4: The First Bancshares: Building Shareholder Value
4 The First Bancshares: Building Shareholder Value
Slide 5: Our Company: Company Overview
58.4%Q1 ‘22 Efficiency Ratio, Operating (1) 18.2%Total Capital Ratio as of March 31, 2022 5thLargest Bank Headquartered in MS $6.2bnAssets as of March 31, 2022 13# of Closed Transactions since 2010 (2) 5 Our Company Company Overview 90Locations in Gulf South: MS, LA, AL, FL & GA 1996Bank Established
Slide 6: Continuity of Leadership through Multiple Business Cycles
Continuity of Leadership through Multiple Business Cycles 6 Responsible for devising and executing a disciplined and successful strategy of organic growth and strategic acquisitions Jarrett NicholsonExecutive VPChief Operating Officer29 years experience M. Ray “Hoppy” Cole, Jr.President/CEO36 Years
Slide 7: Evolution of Our Franchise
Evolution of Our Franchise December 31, 2009 March 31, 2022 Total Assets ($mm) – Organic and Acquisitive Growth FBMS Branch (9) Hattiesburg Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q1 ’22 data as of 3/31/22 7 2010 –Q1 ’22 CAGR: 25% Hattiesburg Destin Gulfpor
Slide 8: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 8 2015 Deposits by State March 31, 2022 Deposits by State Source: S&P Global Market Intelligence, Company documents2009 and 2015 data as of 6/30 2015 Loans by State March 31, 2022 Loans by State 2009 Loans by State 2009 Deposits by State
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 ‘22 – ‘27 Projected Population Growth (
Slide 10: Market Information and Historical Pricing
10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 ‘22 Average Stock Price ($) $9.21 $12.99 $14.54 $16.40 $18.88 $29.06 $35.08 $31.79 $24.54 $37.66 $36.32 Average Market Capitalization ($)In Millions $28.5 $57.3 $75.8 $88.1 $101.4 $277.4 $455.0 $542.9 $505.7 $791.7 $757.3 Average Daily Volume (
Slide 11: Overview of Potential Whole Bank Opportunities
11 Overview of Potential Whole Bank Opportunities Source: S&P Global Market Intelligence Data as of 3/31/22(1) Select Florida markets include banks and thrifts headquartered north of and including the Orlando, FL MSA; excludes merger targets and MHCs Opportunities by State Opportunities by Asset Siz
Slide 12: Seven Reasons To Invest in The First
Eleven Years of Record Earnings Superior Performance and Execution Strategically Focused on Acquisitive and Organic Growth Strong Capital Structure Situated in Growing Markets Shareholder Value and Return Demonstrated Successful Leadership Team 12 Seven ReasonsTo Invest in The First
Slide 13: Credit Highlights
13 Credit Highlights Franchise and Management Strength Southeast markets remain resilient through the COVID pandemic; unemployment well below national average90 locations across 5 states; ranked in the top 10 by deposit market share by county / parish in ~73% of our franchiseGeographically diversifi
Slide 14: Building Franchise Value: Seven Acquisitions Closed 2018-21
Building Franchise ValueSeven Acquisitions | Closed 2018 – ‘21 14 Geography Mobile, AL MSA Tallahassee, FL MSA Tallahassee, FL MSA Hammond, LAMSA Destin, FLMSA Valdosta, GA MSA Starkville, MS Date Closed March ‘18 April ‘18 November ‘18 March ‘19 November ‘19 April ‘20 December ’21 Branches 9 5 6 7
Slide 15: Financial results
15 Financial results
Slide 16: Historical Performance Over Time: Eleven Years of Record Earnings
EPS Net Income ($mm) 16 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Source: S&P Global Market Intelligence Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter(1) Refer to appendix for “Non
Slide 17: Net Interest Income Over Time
4.05% Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($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 IntelligenceAnnual 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 documentsPricing data as of 4/21/22 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 $500 million in MS, AL, LA, FL
Slide 19: Historical Profitability Trends
Historical Profitability Trends 19 Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter(1) Refer to appendix for “Non-GAAP Reconciliation” Reported ROAA (%) ROAA, Operating (%) (1) Reported ROATCE (%) (1) ROATCE, Operating (%) (1)
Slide 20: Historical Profitability Trends
20 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q1 ‘22 (%) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Source: S&P Global Market Intelligence, Company Documents Data as of or for the three
Slide 21: Historical Balance Sheet Growth
Historical Balance Sheet Growth 21 Assets ($mm) Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q1 ’22 data as of 3/31/22 Loans ($mm) Deposits ($mm) PPP Loans 2012 – Q1 ‘22 CAGR: 24% 2012 – Q1 ‘22 CAGR: 26% 2012 – Q1 ‘22 CAGR: 27%
Slide 22: Acquisitions and Capital Offerings Timeline
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 per share as of 3/31/22 inclusive of ($76.8 million) change in accumulated other comprehensive income and the repurchase of 6
Slide 23: Strong Balance Sheet & Earnings Power
23 Strong Balance Sheet & Earnings Power TCE+ALL / Loans (%) Core Deposits (%) Efficiency Ratio, Operating (%) (1) Loans / Deposits (%) 38 bps higher than peers 221bps lower than peers 21 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 Q1 ‘22 Loan Composition Historical Loan Composition Dollars in millions, unless otherwise notedSource: S&P Global Market IntelligenceData as of 12/31 each respective year Granular loan portfolio, average loan size excluding PPP is ~$161 thousandTop 25 loans represent ~9% o
Slide 26: Loan Growth Over Time
26 Loan Growth Over Time Quarterly Loan Growth (Ex. PPP) Over Time Source: S&P Global Market IntelligenceQuarterly 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 millionsSource: Company DocumentsData as of 3/31/22 Size of our top 75 Relationships Largest individual loan is $16.1 million total committed exposureTotal participations purchased are less than 2% of outstanding balances
Slide 28: Escalated Monitoring
28 Escalated MonitoringMarch 31, 2022 Dollars in millionsSource: Company DocumentsData as of 3/31/22 SECTOR TOTAL COMMITTED % OF LOANS LTV % HOTELS $135.8 MILLION 4.6% 61.6% FLAGGED $73.6 MILLION NON-FLAGGED $62.2 MILLION RESTAURANTS $ 90.9 MILLION 3.1% 47.1% CHAIN $70.4 MILLION NON-CHAIN $18.7 MILL
Slide 29: Loan Concentrations Over Time
29 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 30: Overview of PPP Activity
30 Overview of PPP Activity As of March 31, 2022, we have 177 loans totaling $19.4 million with $0.7 million from round 1 and $18.7 million from round 2. The PPP loans have an average size of $109,700Balance of Net Fees - $0.7 million PPP loans made to Enhanced Risk sectors are detailed below: Dolla
Slide 31: Loan Reserves Detail & Nonperforming Assets
31 Loan Reserves Detail & Nonperforming AssetsMarch 31, 2022 Dollars in millionsSource: Company documents RESERVES TOTAL LOANS $2.970 BILLION $31.6 MILLION 1.06% LOAN BALANCES ALLL/CREDIT MARK ALLL/MARK TO LOANS NON PERFORMING ASSETS BALANCES % OF LOANS + OREO LEGACY $20.7 MILLION 0.70% TOTAL NON PE
Slide 32: Asset Quality Over Time
32 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%) ACL / Loans (%) Source: S&P Global Market IntelligenceYearly data as of or for the twelve months ended each respective year; Q1 ‘22 data for the three months ended 3/31/22
Slide 33: History of Prudent Credit Culture
33 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: S&P Global Market Intelligence, FDICYearly data as of or for the twelve months ended each respective year Note: FDIC data as of 12/31/21 (0.12%)FBMS NCOs / Avg. Loans for the three months ended 3/31/22
Slide 34: Attractive Deposit Portfolio
34 Attractive Deposit Portfolio Historical Deposit Composition ($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 35: Capital & Liquidity
35 Capital & Liquidity
Slide 36: Capital Position
36 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; Q1 ’22 data for the three months ended 3/31/22(1) Non-GAAP measure, see reconciliation to closest GAAP measure
Slide 37: Capital Appreciation & Returns to Shareholders
37 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; Q1 ’22 data as of or for the three months ended 3/31/22(1) Tangible book
Slide 38: Liquidity Position
38 Liquidity Position Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q1 ’22 data for the three months ended 3/31/22 Gross Loans / Deposits (%) Cash & Cash Equivalents / Total Assets (%)
Slide 39: Appendix
39 Appendix
Slide 40: Deposit Market Share by State
40 Deposit Market Share by State Mississippi Florida Alabama Louisiana Georgia Source: S&P Global Market IntelligenceData as of 6/30/21Note: Deposits capped at $1.0 bn per branchNote: Deposit data pro forma for pending transactions
Slide 41: Deposit Market Share by Select MSAs
41 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 6/30/21Note: Deposits capped at $1.0 bn per branchNote: Deposit data pro forma f
Slide 42: Historical Financials
Historical Financials 42 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 43: Non-GAAP Reconciliation
43 Non-GAAP Reconciliation
Slide 44: Non-GAAP Reconciliation (cont.)
44 Non-GAAP Reconciliation (cont.)
Slide 45: Non-GAAP Reconciliation (cont.)
45 Non-GAAP Reconciliation (cont.)
Slide 46: Non-GAAP Reconciliation (cont.)
46 Non-GAAP Reconciliation (cont.)
Slide 47: Non-GAAP Reconciliation (cont.)
47 Non-GAAP Reconciliation (cont.)