First Bancshares, Inc. · OTC:FIBH
First Bancshares — Q3 2023 Earnings Presentation
34 slides from First Bancshares's earnings presentation, Oct 25, 2023
Slide 1: The First Bancshares, Inc. October 2023
TheFirst BANCSHARES, INC. October 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
1.21% Cost of Deposits 15.1% Total Capital Ratio 5th Largest Bank Headquartered in MS $7.9bn Total Assets $22,852 Average Deposit Size (3) 3 Our Company Company Overview 79% Loans / Deposits 12.0% CET1 Ratio Data as of or for the three months ended 9/30/23 (1) Non-GAAP measure, refer to appendix for
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights Key Highlights Data as of or for the three months ended 9/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Excludes public funds and ICS accounts (3) Cumulative deposit beta is defined as the change in cost of interest bearing deposits from Q4 ’21 of
Slide 5: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 5 2015 Deposits by State September 30, 2023 Deposits by State 2009 and 2015 data as of 6/30 2015 Loans by State September 30, 2023 Loans by State2009 Loans by State 2009 Deposits by State Mississippi 100% Mississippi 100% Mississippi 70% Alab
Slide 6: Financial Results
6 FINANCIAL RESULTS
Slide 7: Historical Performance Over Time
EPS Net Income ($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% 3.58% 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-GAAP measu
Slide 9: Historical Cost and Yield Analysis
Historical Cost and Yield Analysis 9Data as of or for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Quarterly Yields & Costs (%) 0.20% 0.51% 0.72% 0.91% 1.21% 3.50% 3.37% 3.69% 3.82% 3.52% 4.84% 4.98% 5.45% 5.99% 5.92% 2.40% 2.48
Slide 10: NIM Impact for the Quarter
10 NIM Impact for the Quarter Drivers of Change Q2 ‘23 to Q3 ‘23 Data as of 9/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” N et In te re st M ar gi n , F TE (1 ) C o re N et I n te re st M ar gi n , F TE (1 ) 3.82% 0 bps (1) bps (2) bps 2 bps (27) bps (2) bps 3.52% Q2
Slide 11: Historical Profitability Trends
Historical Profitability Trends 11Data 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) 1.23% 1.07% 1.36%
Slide 12: Historical Profitability Trends
12 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q3 ‘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
0.30% 0.23% 0.19% 0.18% 0.15% 0.21% 0.52% 0.72% 0.91% 1.21% 1.10% 1.22% 1.31% Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 July '23 Aug '23 Sept '23 14 Deposit Composition Growth Historical Deposit Composition Cost of Total Deposits Over Time (%) Dollars in millions unless o
Slide 15: Granular Loan Portfolio
15 Granular Loan Portfolio Dollars in millions Data as of 9/30/23 Size of our top 75 Relationships • Largest individual loan is $28.9 million total committed exposure • Total participations purchased are less than 3% of outstanding balances $37.8 $21.9 $15.9 $12.3 $9.7 1 10 25 50 75 Total Advanced %
Slide 16: Balanced Loan Portfolio
16 Balanced Loan Portfolio Data as of 9/30/23 (1) Excludes owner-occupied CRE Loan Portfolio Mix CRE (1) Exposure by Type Granular loan portfolio, average loan size excluding PPP is ~$210 thousand Top 25 loans represent ~9% of total portfolio De Minimis consumer credit card loans ($1.4 million
Slide 17: Office Exposure
17 Office Exposure Data as of 9/30/23; Dollars in millions Professional Office by GeographyOffice Portfolio Maturity Florida 42% Georgia 27% Mississippi 15% Louisiana 10% Alabama 6% Office Portfolio Non-Owner Occupied % of Total Cumulative % Maturing in 2023 $10.2 5% 3% Maturing in 2024 8.7 4% 9% Ma
Slide 18: Loan Concentrations Over Time
18 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Yearly data as of 12/31 each respective year; quarterly data for the three months ended each respective quarter Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Co
Slide 19: Asset Quality Over Time
19 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%)ACL / Loans (%) Yearly data as of or for the twelve months ended each respective year; quarterly data for the three months ended each respective quarter 2.1% 1.5% 1.0% 0.5% 0.5% 0.4% 0.4% 2019 2020 2021 2022 Q1
Slide 20: History of Prudent Credit Culture
0.5% 0.4% 0.3% 0.4% 0.3% 0.0% 0.2% (0.0%) (0.0%) (0.0%) 0.0% (0.0%) 0.1% 0.1% (0.1%) 1.3% 2.5% 2.5% 1.6% 1.1% 0.7% 0.5% 0.4% 0.5% 0.5% 0.5% 0.5% 0.5% 0.3% 0.3% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FBMS Banking Industry 20 History of Prudent Credit Culture 15-Yea
Slide 21: Capital & Liquidity
21 CAPITAL & LIQUIDITY
Slide 22: Capital Position
22 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%)CET1 Ratio (%) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” 9.5% 9.2% 8.3%
Slide 23: Capital Position Including Unrealized Losses
23 Capital Position Including Unrealized Losses Data as of or for the three months ended 9/30/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calcul
Slide 24: Capital Appreciation & Returns to Shareholders
24 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share (1) ($) Dividends Declared per Share ($) Shares Repurchased (%) (3) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix f
Slide 25: Liquidity Position
25 Liquidity Position Gross Loans / Deposits (%) Funding Sources 84.0% 84.9% 74.6% 68.9% 56.6% 55.8% 68.8% 77.3% 78.6% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2018 2019 2020 2020 (ex. PPP) 2021 2021 (ex. PPP) 2022 Q2 '23 Q3 '23 Outstanding / Remaining Usage Bank Sources Available ($mm) Pledged ($mm) Ava
Slide 26: Securities Portfolio Composition
26 Securities Portfolio Composition Dollars in millions Data as of or for the three months ended 9/30/23 Available-For-Sale Portfolio Summary Held-To-Maturity Government Agency 3% MBS 47%Corporates 3% Treasury 10% TE & TX Muni 37% Government Agency 2% MBS 43%Corporates 2% Treasury 13% TE & TX Muni 4
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” For the Yea
Slide 29: Non-GAAP Reconciliation
29 Non-GAAP Reconciliation The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, December 31, March 31, June 30, September 30, (Dollars in thousands) 2018 2019 2020 2021 2022 2022 2023 2023 2023 Net Income Available to Common $21,225 $43,745 $52,506 $64,167
Slide 30: Non-GAAP Reconciliation (cont.)
30 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, September 30, December 31, March 31, June 30, September 30, (Dollars in thousands) 2022 2022 2023 2023 2023 Net Interest Income After Provision for Credit Losses $44,848 $47,216 $53,926 $64,780 $59,704
Slide 31: Non-GAAP Reconciliation (cont.)
31 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, December 31, March 31, June 30, September 30, (Dollars in thousands) 2018 2019 2020 2021 2022 2022 2023 2023 2023 Operating Expense Total non-interest expense $76,309 $8
Slide 32: Non-GAAP Reconciliation (cont.)
32 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, September 30, December 31, March 31, June 30, September 30, (Dollars in thousands) 2022 2022 2023 2023 2023 Total non-interest income $9,022 $8,131 $12,612 $12,423 $19,324 Pre-tax non-operating items -
Slide 33: Non-GAAP Reconciliation (cont.)
33 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, December 31, March 31, June 30, September 30, (Dollars in thousands) 2018 2019 2020 2021 2022 2022 2023 2023 2023 Total common equity $363,254 $543,658 $644,815 $676,172
Slide 34: Non-GAAP Reconciliation (cont.)
34 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, September 30, December 31, March 31, June 30, September 30, (Dollars in thousands) 2022 2022 2023 2023 2023 Net Interest Income $49,148 $47,921 $64,926 $66,030 $60,704 Tax-Exempt Investment Income (2,8