First Bancshares, Inc. · OTC:FIBH
First Bancshares — Q1 2023 Earnings Presentation
32 slides from First Bancshares's earnings presentation, Apr 27, 2023
Slide 1: The First Bancshares, Inc. April 2023
TheFirst BANCSHARES, INC. April 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
0.72% Cost of Deposits 14.7% Total Capital Ratio 5th Largest Bank Headquartered in MS $8.0bn Total Assets $23,110 Average Deposit Size (2) 3 Our Company Company Overview 75% Loans / Deposits 11.2% CET1 Ratio Data as of or for the three months ended 3/31/23 Non-GAAP measure, refer to appendix for “No
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights Key Highlights Data as of or for the three months ended 3/31/23 Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” Excludes public funds and ICS accounts 4 Financial Results Diluted Earnings Per Share Diluted Earnings Per Share, Operating (1) Net Income ($000) Net I
Slide 5: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 5 2015 Deposits by State March 31, 2023 Deposits by State Source: S&P Global Market Intelligence 2009 and 2015 data as of 6/30 2015 Loans by State March 31, 2023 Loans by State 2009 Loans by State 2009 Deposits by State
Slide 6: Financial results
6 Financial results
Slide 7: Historical Performance Over Time: Twelve Years of Record Earnings
EPS Net Income ($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% 3.93% 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)
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: Historical Profitability Trends
Historical Profitability Trends 10 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) 1.24% 1.36% 1.63%
Slide 11: Historical Profitability Trends
11 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income Q1 ‘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 12: Deposit and Loan Information
12 Deposit AND Loan information
Slide 13: Deposit Composition Growth
13 Deposit Composition Growth Q1 ’23 Actual Deposits 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 public f
Slide 14: Granular Loan Portfolio
14 Granular Loan Portfolio Dollars in millions Data as of 3/31/23 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 15: Balanced Loan Portfolio
15 Balanced Loan Portfolio Data as of 3/31/23 (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 ($1.6 million or 0.
Slide 16: Office Exposure
16 Office Exposure Data as of 3/31/23; Dollars in millions Professional Office by Geography Office Portfolio Maturity Average professional office loan size Non-Owner Occupied: $~727 thousand 20% of the total office portfolio matures by 2025 Office Exposure Highlights Professional office space compri
Slide 17: Loan Concentrations Over Time
17 Loan Concentrations Over Time C&D Loan Concentration Over Time CRE Loan Concentration Over Time Yearly data as of 12/31 each respective year; Q1 ‘23 data for the three months ended 3/31/23 Note: 100% and 300% are the interagency guidance figures for C&D Concentration and CRE Concentration of a ba
Slide 18: Asset Quality Over Time
18 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) ACL / NPLs (%) ACL / Loans (%) Yearly data as of or for the twelve months ended each respective year; Q1 ‘23 data for the three months ended 3/31/23
Slide 19: History of Prudent Credit Culture
19 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: FDIC Yearly data as of or for the twelve months ended each respective year Note: FDIC data as of 12/31/22 0.01% FBMS NCOs / Avg. Loans for the three months ended 3/31/23
Slide 20: Capital & Liquidity
20 Capital & Liquidity
Slide 21: Capital Position
21 Capital Position TCE / TA (%) (1) Leverage Ratio (%) Total Risk Based Capital Ratio (%) CET1 Ratio (%) Data as of 12/31 of each year, respectively; Q1 ’23 data as of or for the three months ended 3/31/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation”
Slide 22: Capital Position Including Unrealized Losses
22 Capital Position Including Unrealized Losses Data as of or for the three months ended 3/31/23 (1) Non-GAAP measure, refer to appendix for “Non-GAAP Reconciliation” (2) Assumes AOCI adjustments related to market valuations on securities and related hedges are included for regulatory capital calcul
Slide 23: Capital Appreciation & Returns to Shareholders
23 Capital Appreciation & Returns to Shareholders Tangible Book Value per Share (1) ($) Dividends Declared per Share ($) Shares Repurchased (%) (2) Data as of 12/31 of each year, respectively; Q1 ’23 data as of or for the three months ended 3/31/23 (1) Non-GAAP measure, refer to appendix for “Non-GA
Slide 24: Liquidity Position
24 Liquidity Position Data as of 12/31 of each year, respectively; Q1 ’23 data as of or for the three months ended 3/31/23 Gross Loans / Deposits (%) Funding Sources Liquidity Highlights As of March 31, the Company’s liquidity ratio was 19.6%, as compared to the internal liquidity policy guidelines
Slide 25: Securities Portfolio Composition
25 Securities Portfolio Composition Dollars in millions Data as of or for the three months ended 3/31/23 Available-For-Sale Portfolio Summary Held-To-Maturity $2,066M Book Value 2.11% Book Yield ($137.6M) Unrealized Loss 5.7 Year Average Life 4.6 Year Effective Duration 67%/33% (AFS/HTM) Principal C
Slide 26: Appendix
26 Appendix
Slide 27: Historical Financials
Historical Financials 27 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 28: Non-GAAP Reconciliation
28 Non-GAAP Reconciliation
Slide 29: Non-GAAP Reconciliation (cont.)
29 Non-GAAP Reconciliation (cont.)
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.)