First Bancshares, Inc. · OTC:FIBH
First Bancshares — Q4 2023 Earnings Presentation
36 slides from First Bancshares's earnings presentation, Jan 25, 2024
Slide 1: The First Bancshares, Inc. January 2024
TheFirst BANCSHARES, INC. January 2024 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
1.54% Cost of Deposits 15.0% Total Capital Ratio 5th Largest Bank Headquartered in MS $8.0bn Total Assets $22,855 Average Deposit Size (3) 3 Our Company Company Overview 80% Loans / Deposits 12.1% CET1 Ratio Data as of or for the three months ended 12/31/23 (1) Non-GAAP measure, refer to appendix fo
Slide 4: Q4 2023 Highlights
Q4 2023 Highlights Key Highlights Data as of or for the three months ended 12/31/23 (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 o
Slide 5: Evolution of Our Franchise
New Orleans Mobile Baton Rouge Jackson Tallahassee Montgomery Shreveport Columbus Evolution of Our Franchise December 31, 2009 FBMS Branch (9) Hattiesburg Source: S&P Global Market Intelligence, Company documents Data as of 12/31 of each year, respectively December 31, 2023 Valdosta Tallahassee Tamp
Slide 6: Q4 2023 Significant Update: Bond Portfolio Restructuring Transaction
Q4 2023 Significant Update 6 $9.7 million pre-tax charge, or $0.20 EPS (1) $123 million in bonds sold with weighted average book yield of 1.12 and average remaining life of 3 years $92 million of proceeds reinvested into available-for-sale bonds yielding 5.33%, and $30 million of proceeds used
Slide 7: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 7 2015 Deposits by State December 31, 2023 Deposits by State 2009 and 2015 data as of 6/30 2015 Loans by State December 31, 2023 Loans by State2009 Loans by State 2009 Deposits by State Mississippi 100% Mississippi 100% Mississippi 70% Alabam
Slide 8: Financial Results
8 FINANCIAL RESULTS
Slide 9: Historical Performance Over Time
EPS Net Income ($mm) 9 Pre-tax Pre Provision Income ($mm), Operating (1) PTPP ROAA, Oper. (1) Annual data for the twelve months ended 12/31 of each respective year; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”
Slide 10: Net Interest Income Over Time
Net Interest Income Over Time 3.74% 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% Net Interest Income ($mm) NIM, FTE (1) 3.34%3.83% 3.94% 3.51%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 measure, re
Slide 11: Historical Cost and Yield Analysis
Historical Cost and Yield Analysis 11Data 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 (%) 0.51% 0.72% 0.91% 1.21% 1.54% 3.37% 3.69% 3.82% 3.52% 3.33% 4.98% 5.45% 5.99% 5.92% 6.03% 2.48% 2.5
Slide 12: NIM Impact for the Quarter
12 NIM Impact for the Quarter Drivers of Change Q3 ‘23 to Q4 ‘23 Data as of or for the three months ended 9/30/23 and 12/31/23, respectively (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 ) 3.5
Slide 13: Historical Profitability Trends
Historical Profitability Trends 13Data 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) 1.07% 1.36% 1.36%
Slide 14: Historical Profitability Trends
14 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q4 ‘23 (%) (2) 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 meas
Slide 15: Deposit and Loan Information
15 DEPOSIT AND LOAN INFORMATION
Slide 16: Deposit Composition Growth
0.30% 0.23% 0.19% 0.18% 0.15% 0.21% 0.52% 0.72% 0.91% 1.21% 1.54% 1.47% 1.50% 1.64% Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Oct '23 Nov '23 Dec '23 16 Deposit Composition Growth Historical Deposit Composition Cost of Total Deposits Over Time (%) Dollars in millio
Slide 17: Granular Loan Portfolio
17 Granular Loan Portfolio Dollars in millions Data as of 12/31/23 Size of our top 75 Relationships • Largest individual loan is $28.8 million total committed exposure • Total participations purchased are less than 3% of outstanding balances $40.7 $21.9 $17.2 $13.1 $10.0 1 10 25 50 75 Total Advanced
Slide 18: Balanced Loan Portfolio
18 Balanced Loan Portfolio Data as of 12/31/23 (1) Excludes owner-occupied CRE Loan Portfolio Mix CRE (1) Exposure by Type Granular loan portfolio, average loan size excluding PPP is ~$215 thousand Top 20 loans represent ~7% of total portfolio De Minimis consumer credit card loans ($1.6 millio
Slide 19: Office Exposure
19 Office Exposure Data as of 12/31/23; Dollars in millions Professional Office by GeographyOffice Portfolio Maturity Florida 12% Georgia 47% Mississippi 19% Louisiana 12% Alabama 9% Office Portfolio Non-Owner Occupied % of Total Cumulative % Maturing in 2023 $1.8 1% 1% Maturing in 2024 15.8 8% 8% M
Slide 20: Loan Concentrations Over Time
20 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Yearly data as of 12/31 each respective year; quarterly data for the three months ended each respective quarter Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Co
Slide 21: Asset Quality Over Time
21 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%)ACL / Loans (%) Yearly data as of or for the twelve months ended each respective year; quarterly data for the three months ended each respective quarter 2.1% 1.5% 1.0% 0.5% 0.5% 0.4% 0.4% 0.4% 2019 2020 2021 20
Slide 22: History of Prudent Credit Culture
0.5% 0.4% 0.3% 0.4% 0.3% 0.0% 0.2% (0.0%) (0.0%) (0.0%) 0.0% (0.0%) 0.1% 0.1% (0.1%) 1.3% 2.5% 2.5% 1.6% 1.1% 0.7% 0.5% 0.4% 0.5% 0.5% 0.5% 0.5% 0.5% 0.3% 0.3% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FBMS Banking Industry 22 History of Prudent Credit Culture 15-Yea
Slide 23: Capital & Liquidity
23 CAPITAL & LIQUIDITY
Slide 24: Capital Position
24 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%)CET1 Ratio (%) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” 9.5% 9.2% 8.3%
Slide 25: Capital Position Including Unrealized Losses
25 Capital Position Including Unrealized Losses Data as of or for the three months ended 12/31/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calcu
Slide 26: Capital Appreciation & Returns to Shareholders
26 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share (1) ($) Dividends Declared per Share ($) Shares Repurchased (%) (2) Data as of 12/31 of each year, respectively; quarterly data for the three months ended each respective quarter (1) Non-GAAP measure, refer to appendix f
Slide 27: Liquidity Position
27 Liquidity Position Gross Loans / Deposits (%) Funding Sources 84.0% 84.9% 74.6% 68.9% 56.6% 55.8% 68.8% 78.6% 80.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2018 2019 2020 2020 (ex. PPP) 2021 2021 (ex. PPP) 2022 Q3 '23 Q4 '23 Outstanding / Remaining Usage Bank Sources Available ($mm) Pledged ($mm) Ava
Slide 28: Securities Portfolio Composition
28 Securities Portfolio Composition Dollars in millions Data as of or for the three months ended 12/31/23 Available-For-Sale Portfolio Summary Held-To-Maturity Government Agency 1% MBS 52%Corporates 3% Treasury 1% TE & TX Muni 42% Government Agency 2% MBS 45%Corporates 1% Treasury 13% TE & TX Muni 3
Slide 29: Appendix
29 APPENDIX
Slide 30: Historical Financials
Historical Financials 30 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 31: Non-GAAP Reconciliation
31 Non-GAAP Reconciliation The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, March 31, June 30, September 30, December 31, (Dollars in thousands) 2020 2021 2022 2023 2023 2023 2023 2023 Net Income Available to Common $52,506 $64,167 $62,919 $75,457 $16,2
Slide 32: Non-GAAP Reconciliation (cont.)
32 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, December 31, March 31, June 30, September 30, December 31, (Dollars in thousands) 2022 2023 2023 2023 2023 Net Interest Income After Provision for Credit Losses $47,216 $53,926 $64,780 $59,704 $56,415
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, March 31, June 30, September 30, December 31, (Dollars in thousands) 2020 2021 2022 2023 2023 2023 2023 2023 Operating Expense Total non-interest expense $106,341 $114,5
Slide 34: Non-GAAP Reconciliation (cont.)
34 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, December 31, March 31, June 30, September 30, December 31, (Dollars in thousands) 2022 2023 2023 2023 2023 Total non-interest income $8,131 $12,612 $12,423 $19,324 $2,346 Pre-tax non-operating items -
Slide 35: Non-GAAP Reconciliation (cont.)
35 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Year Ended December 31, For the Three Months Ended, March 31, June 30, September 30, December 31, (Dollars in thousands) 2019 2020 2021 2022 2023 2023 2023 2023 2023 Total common equity $543,658 $644,815 $676,172 $646,663
Slide 36: Non-GAAP Reconciliation (cont.)
36 Non-GAAP Reconciliation (cont.) The First Bancshares, Inc. Non-GAAP For the Three Months Ended, December 31, March 31, June 30, September 30, December 31, (Dollars in thousands) 2022 2023 2023 2023 2023 Net Interest Income $47,921 $64,926 $66,030 $60,704 $57,665 Tax-Exempt Investment Income (2,93