First Bancshares, Inc. · OTC:FIBH
First Bancshares — Investor Presentation (January 2023)
42 slides from First Bancshares's investor presentation, Jan 31, 2023
Slide 1: The First Bancshares, Inc. January 2023
TheFirst BANCSHARES, INC. January 2023 NASDAQ: FBMS
Slide 2: Safe Harbor & Forward Looking Statements
2 Safe Harbor & Forward Looking Statements 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,
Slide 3: The First Bancshares: Building Shareholder Value
3 The First Bancshares: Building Shareholder Value
Slide 4: Our Company: Company Overview
59.3% Q4 ‘22 Efficiency Ratio, Operating (1) 16.7% Total Capital Ratio as of December 31, 2022 6th Largest Bank Headquartered in MS $6.5bn Assets as of December 31, 2022 14 # of Closed Transactions since 2010 (2) 4 Our Company Company Overview 90 Locations in Southeast: MS, LA, AL, FL & GA 1996 Bank
Slide 5: Continuity of Leadership through Multiple Business Cycles
Continuity of Leadership through Multiple Business Cycles 5 Responsible for devising and executing a disciplined and successful strategy of organic growth and strategic acquisitions Jarrett Nicholson Executive VP Chief Operating Officer 29 years experience M. Ray “Hoppy” Cole, Jr. President/CEO 36 Y
Slide 6: Evolution of Our Franchise
Evolution of Our Franchise December 31, 2009 Total Assets ($mm) – Organic and Acquisitive Growth FBMS Branch (9) Hattiesburg Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively 6 December 31, 2022 2010 – 2022 CAGR: 24% Valdosta Tallahassee Atlanta Mo
Slide 7: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 7 2015 Deposits by State December 31, 2022 Deposits by State Source: S&P Global Market Intelligence, Company documents 2009 and 2015 data as of 6/30 2015 Loans by State December 31, 2022 Loans by State 2009 Loans by State 2009 Deposits by Sta
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 6/30/22; Pro forma for acquisition of Heritage
Slide 9: Market Information and Historical Pricing
9 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average Stock Price ($) $9.21 $12.99 $14.54 $16.40 $18.88 $29.06 $35.08 $31.79 $24.54 $37.66 $32.41 Average Market Capitalization ($) In Millions $28.5 $57.3 $75.8 $88.1 $101.4 $277.4 $455.0 $542.9 $505.7 $791.7 $714.3 Average Daily Volume (sh
Slide 10: Overview of Potential Whole Bank Opportunities
10 Overview of Potential Whole Bank Opportunities Source: S&P Global Market Intelligence Data as of most recent quarter available (1) Select Florida markets include banks and thrifts headquartered north of and including the Orlando, FL MSA; excludes merger targets and MHCs Opportunities by State Opp
Slide 11: Seven Reasons To Invest in The First
Twelve Years of Record Earnings Superior Performance and Execution Strategically Focused on Acquisitive and Organic Growth Strong Capital Structure Situated in Growing Markets Shareholder Value and Return Demonstrated Successful Leadership Team 11 Seven Reasons To Invest in The First
Slide 12: Credit Highlights, Franchise and Management Strength
12 Credit Highlights Franchise and Management Strength Southeast markets remain resilient through the COVID pandemic; unemployment well below national average 90 locations across 5 states; ranked in the top 10 by deposit market share by county / parish in ~78% of our franchise Geographically diversi
Slide 13: Building Franchise Value: Nine Acquisitions
Building Franchise Value Nine Acquisitions | Closed 2018 – ‘23 Geography Mobile, AL MSA Tallahassee, FL MSA Tallahassee, FL MSA Hammond, LA MSA Destin, FL MSA Valdosta, GA MSA Starkville, MS Fort Walton Beach, FL Jonesboro, GA -- Date Closed March ’18 April ’18 November ‘18 March ‘19 November ‘19 Ap
Slide 14: Financial results
14 Financial results
Slide 15: Historical Performance Over Time: Twelve Years of Record Earnings
EPS Net Income ($mm) 15 Pre-tax Pre-Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Source: S&P Global Market Intelligence, Company documents Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Non-GA
Slide 16: Net Interest Income Over Time
Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM 3.34% 3.83% 3.94% 4.06% 3.93% 3.63% 3.58% 3.51% 4.02% Source: S&P Global Market Intelligence, Company documents Annual data for the twelve months ended 12/31 of each respective year; quarterly data
Slide 17: Execution of Strategic Vision
Execution of Strategic Vision 17 Source: S&P Global Market Intelligence, Company documents Pricing data as of 1/25/23 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 $500 million in MS, AL, LA, FL
Slide 18: Historical Profitability Trends
Historical Profitability Trends 18 Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter (1) Non-GAAP measure, see reconciliation to closest GAAP measure in appendix Reported ROAA (%) ROAA, Operating (%) (1) Reported ROATCE (%) (1)
Slide 19: Historical Profitability Trends
19 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q4 ‘22 (%) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Source: S&P Global Market Intelligence, Company Documents Data as of or for the three
Slide 20: Historical Balance Sheet Growth
Historical Balance Sheet Growth 20 Assets ($mm) Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively Loans ($mm) Deposits ($mm) PPP Loans 2012 – 2022 CAGR: 25% 2012 – 2022 CAGR: 25% 2012 – 2022 CAGR: 25%
Slide 21: Strong Balance Sheet & Earnings Power
21 Strong Balance Sheet & Earnings Power Total Risk-Based Capital (%) Core Deposits (%) (2) ROATCE, Operating (%) (1) Loans / Deposits (%) 2.4 percentage points higher than peers 1.5 percentage points higher than peers 18.5 percentage points lower than peers 7.1 percentage points higher than peers S
Slide 22: Loan & deposit information
22 Loan & deposit information
Slide 23: Loan Portfolio Overview
23 Loan Portfolio Overview Q4 ‘22 Loan Composition Historical Loan Composition Dollars in millions, unless otherwise noted Source: S&P Global Market Intelligence, Company documents Data as of 12/31 each respective year Granular loan portfolio, average loan size excluding PPP is ~$197 thousand Top 25
Slide 24: Loan Growth Over Time
24 Loan Growth Over Time Quarterly Loan Growth (Ex. PPP) Over Time Source: S&P Global Market Intelligence, Company documents Quarterly data as of the three months ended each respective quarter; Quarterly loan growth annualized
Slide 25: Granular Loan Portfolio
25 Granular Loan Portfolio Dollars in millions Source: Company Documents Data as of 12/31/22 Size of our top 75 Relationships Largest individual loan is $29.2 million total committed exposure Total participations purchased are less than 3% of outstanding balances
Slide 26: Loan Concentrations Over Time
26 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Source: S&P Global Market Intelligence, Company documents Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Concentration of a banking institution’s total risk-base
Slide 27: Asset Quality Over Time
27 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%) ACL / Loans (%) Source: S&P Global Market Intelligence, Company documents Yearly data as of or for the twelve months ended each respective year; Q4 ‘22 data for the three months ended 12/31/22
Slide 28: History of Prudent Credit Culture
28 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: S&P Global Market Intelligence, Company documents, FDIC Yearly data as of or for the twelve months ended each respective year; Q3 ‘22 data for the three months ended 9/30/22 Note: FDIC data as of 9/30/22
Slide 29: Attractive Deposit Portfolio
29 Attractive Deposit Portfolio Historical Deposit Composition ($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 30: Capital & Liquidity
30 Capital & Liquidity
Slide 31: Capital Position
31 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%) CET1 Ratio (%) Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively (1) Non-GAAP measure, see reconciliation to closest GAAP measure in appendix
Slide 32: Capital Appreciation & Returns to Shareholders
32 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share ($) (1) Dividends Declared per Share ($) Shares Repurchased (%) (3) Source: S&P Global Market Intelligence, Company documents; Data as of 12/31 of each year, respectively; Q4 ’22 data as of or for the three months ended
Slide 33: Liquidity Position
33 Liquidity Position Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively Gross Loans / Deposits (%) Funding Sources Liquidity Highlights As of December 31, the Company’s liquidity ratio was 24.9%, as compared to the internal liquidity policy guideli
Slide 34: Appendix
34 Appendix
Slide 35: Deposit Market Share by State
35 Deposit Market Share by State Mississippi Florida Alabama Louisiana Georgia Source: S&P Global Market Intelligence Data as of 6/30/22 Note: Deposits capped at $1.0 bn per branch Note: Deposit data pro forma for pending transactions
Slide 36: Deposit Market Share by Select MSAs
36 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 6/30/22 Note: Deposits capped at $1.0 bn per branch Note: Deposit data pro form
Slide 37: Historical Financials
Historical Financials 37 Source: Company documents 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 in appendix
Slide 38: Non-GAAP Reconciliation
38 Non-GAAP Reconciliation
Slide 39: Non-GAAP Reconciliation (cont.)
39 Non-GAAP Reconciliation (cont.)
Slide 40: Non-GAAP Reconciliation (cont.)
40 Non-GAAP Reconciliation (cont.)
Slide 41: Non-GAAP Reconciliation (cont.)
41 Non-GAAP Reconciliation (cont.)
Slide 42: Non-GAAP Reconciliation (cont.)
42 Non-GAAP Reconciliation (cont.)
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