First Bancshares, Inc. · OTC:FIBH
First Bancshares — Investor Presentation (November 2021)
51 slides from First Bancshares's investor presentation, Nov 3, 2021
Slide 1: The First Bancshares, Inc.
TheFirst BANCSHARES, INC. November 2021 NASDAQ: FBMS
Slide 2: Forward-looking statements
This IP 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 amended, and Section 21E of the Securities Exch
Slide 3: The First Bancshares: Building Shareholder Value
3 The First Bancshares: Building Shareholder Value
Slide 4: Our Company: Company Overview
56.6%Q3 ‘21 Efficiency Ratio, Operating (1) 19.3%Total Capital Ratio as of September 30, 2021 5thLargest Bank Headquartered in MS $5.5bnAssets as of September 30, 2021 12# of Closed Transactions since 2010 (2) 4 Our Company Company Overview 84Locations in Gulf South: MS, LA, AL, FL & GA 1996Bank Est
Slide 5: Continuity of Leadership through Multiple Business Cycles
Continuity of Leadership through Multiple Business Cycles 5 Jerome BrownExecutive VPCommunity Development18 years experience Hayden MitchellExecutive VPLoan Ops & Mortgage 48 years experience M. Ray “Hoppy” Cole, Jr.President/CEO36 Years of Experience Dee Dee LoweryExecutive VP, CFO32 Years of Exper
Slide 6: Evolution of Our Franchise
Evolution of Our Franchise December 31, 2009 September 30, 2021 Total Assets ($mm) – Organic and Acquisitive Growth Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q3 ‘21 data as of 9/30/21 FBMS Branch (9) 6 Hattiesburg 2010 – Q3 ‘21 CAGR: 25% FBMS Branch (82) FBMS
Slide 7: Improving Geographic Diversification of our Balance Sheet
Improving Geographic Diversification of our Balance Sheet 7 2015 Deposits by State September 30, 2021 Deposits by State Source: S&P Global Market Intelligence, Company documents2009 and 2015 data as of 6/30 2015 Loans by State September 30, 2021 Loans by State 2009 Loans by State 2009 Deposits by St
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 6/30/21 ‘21 – ‘26 Projected Population Growth (
Slide 9: Market Information and Historical Pricing
9 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 ‘21 Q2 ‘21 Q3 ‘21 Average Stock Price ($) $9.21 $12.99 $14.54 $16.40 $18.88 $29.06 $35.08 $31.79 $24.54 $33.57 $38.54 $38.62 Average Market Capitalization ($)In Millions $28.5 $57.3 $75.8 $88.1 $101.4 $277.4 $455.0 $542.9 $505.7 $707.5 $810.0 $811.7
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 Oppo
Slide 11: Seven Reasons To Invest in The First
Ten 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 ReasonsTo Invest in The First
Slide 12: COVID-19 Pandemic Response
Moved as many as practical employees to work by remote accessIncreased the frequency of facility janitorial servicesRotated access as much as practical for employees whose function could not be performed remotelyProvided lunch daily to on site personnel to limit their off premise exposure during the
Slide 13: Credit Highlights
13 Credit Highlights Franchise and Management Strength Gulf South markets remain resilient through the COVID pandemic; unemployment well below national average84 locations across 5 states; ranked in the top 10 by deposit market share by county / parish in ~72% of our franchiseGeographically diversif
Slide 14: Six Acquisitions | Closed 2018 – '21
14 Geography Mobile, AL MSA Tallahassee, FL MSA Tallahassee, FL MSA Hammond, LAMSA Destin, FLMSA Valdosta, GA MSA Date Closed March ‘18 April ‘18 November ‘18 March ‘19 November ‘19 April ‘20 Branches 9 5 6 7 6 8 41 Purchase Price Cash & Stock: $60.0M Cash & Stock: $30.5M Cash & Stock: $80.0M All St
Slide 15: Financial results
15 Financial results
Slide 16: Historical Performance Over Time: Ten Years of Record Earnings
EPS Net Income ($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 3.63% 3.83% 3.93% 3.58% 4.06% 3.51% 3.93% 3.34% 4.00% 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 10/13/21 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 $500 million in MS, AL, LA, FL
Slide 19: Historical Profitability Trends
Historical Profitability Trends 19 Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter(1) Refer to appendix for “Non-GAAP Reconciliation” Reported ROAA (%) ROAA, Operating (%) (1) Reported ROATCE (%) (1) ROATCE, Operating (%) (1)
Slide 20: Historical Profitability Trends
20 Historical Profitability Trends Non-interest Income, Oper. / Adj. Operating Revenue (%) (1) Non-interest Income YTD (%) Efficiency Ratio, Operating (%) (1) Adjusted Operating Expense / Average Assets (%) (1) Source: S&P Global Market Intelligence, Company Documents Data as of or for the three mon
Slide 21: Historical Balance Sheet Growth
Historical Balance Sheet Growth 21 Assets ($mm) Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q3 ’21 data as of 9/30/21 Loans ($mm) Deposits ($mm) 2011 – Q3 ‘21 CAGR: 23% 2011 – Q3 ‘21 CAGR: 24% 2011 – Q3 ‘21 CAGR: 24%
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 3/22/2013$22.0M Equity OfferingAssets: $789 million 4/23/2013Acquired First Baldwin Bancshares, Inc. Assets: $965 million 7/1/2014Acquired BCB Holdi
Slide 23: Strong Balance Sheet & Earnings Power
23 Strong Balance Sheet & Earnings Power TCE+ALL / Loans (%) Core Deposits (%) Efficiency Ratio (%) Loans / Deposits (%) 3 percentage points higher than peers 3.5 percentage points lower than peers 16 percentage points lower than peers 6.6 percentage points higher than peers Source: S&P Global Marke
Slide 24: Loan & deposit information
24 Loan & deposit information
Slide 25: Loan Portfolio Overview
25 Loan Portfolio Overview Q3 ‘21 Loan Composition Historical Loan Composition Dollars in millions, unless otherwise notedSource: S&P Global Market IntelligenceData as of 12/31 each respective year; Q3 ‘21 data as of 9/30/21 Granular loan portfolio, average loan size excluding PPP is ~$163 thousandT
Slide 26: Granular Loan Portfolio
26 Granular Loan Portfolio Dollars in millionsSource: Company DocumentsData as of 9/30/21 Size of our top 75 Relationships Largest individual loan is $15.0 million total committed exposureTotal participations purchased are less than 2% of outstanding balances
Slide 27: COVID-19 Loan Modifications
27 COVID-19 Loan Modifications Loan Modifications Resulting from COVID-19 as of 9/30/21 Loan Modification Trends Dollars in millions Source: Company documents Aggregate Loan Modification Trends Loan Modification Changes in Escalated Monitoring Portfolio Segments
Slide 28: Escalated Monitoring
28 Escalated Monitoring Dollars in millionsSource: Company DocumentsData as of 9/30/21
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 September 30, 2021, we have 1,185 PPP loans totaling $87.1 million with $1.8 million from round 1 and $85.3 million from round 2 and an average loan size of $71,000Net fees total $4.3 million at September 30, 2021 Dollars in millionsSource: Company documents
Slide 31: Loan Reserves Detail & Nonperforming Assets
31 Loan Reserves Detail & Nonperforming AssetsSeptember 30, 2021 Dollars in millionsSource: Company documents RESERVES TOTAL LOANS $2.961 BILLION $32.4 MILLION 1.09% LOAN BALANCES ALLL/CREDIT MARK ALLL/MARK TO LOANS NON PERFORMING ASSETS BALANCES % OF LOANS + OREO LEGACY $18.3 MILLION 0.61% TOTAL NO
Slide 32: Asset Quality Over Time
32 Asset Quality Over Time NPAs / Loans + OREO (%) NCOs / Average Loans (%) Reserves / NPLs (%) Reserves / Loans (%) Source: S&P Global Market IntelligenceYearly data as of or for the twelve months ended each respective year; quarterly data as of or for the three months ended each respective quarter
Slide 33: History of Prudent Credit Culture
33 History of Prudent Credit Culture 15-Year NCOs / Avg. Loans vs. Banking Industry (%) Source: S&P Global Market Intelligence, FDICYearly data as of or for the twelve months ended each respective year Note: FDIC data as of 12/31/2020
Slide 34: Attractive Deposit Portfolio
34 Attractive Deposit Portfolio Q3 ‘21 Deposit Composition (1) Historical Deposit Composition ($bn) Cost of Total Deposits Over Time (%) Dollars in millions unless otherwise noted Source: S&P Global Market Intelligence Annual data as of or for the twelve months ended each respective year; Quarterly
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; Q3 ‘21 data as of 9/30/21(1) Non-GAAP measure, see reconciliation to closest GAAP measure in appendix
Slide 37: Liquidity Position
37 Liquidity Position Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q3 ‘21 data as of 9/30/21 Gross Loans / Deposits (%) Cash & Cash Equivalents / Total Assets (%)
Slide 38: Acquisition of Mississippi Branches from Cadence Bancorporation / BancorpSouth Bank
38 Acquisition of 7 Mississippi Branches from cadence bancorporation / Bancorpsouth bank
Slide 39: Strategic Rationale
StrategicRationale Advances strategy of building a regional community bank across the SoutheastStrong pro forma deposit market share in Mississippi’s Golden TriangleLow-cost deposits strengthen established funding baseOpportunities to expand relationships with existing customers Financial Rationale
Slide 40: Acquisition Highlights
40 Acquisition Highlights Source: S&P Global Market IntelligenceNote: Deposit data as of 6/30/21 Pro Forma Footprint Albany Hattiesburg Valdosta Panama City Beach Moultrie Tallahassee Destin Pensacola New Orleans Baton Rouge Shreveport Jackson Huntsville Birmingham Montgomery Mobile Atlanta Columbus
Slide 41: Market Overview: Golden Triangle
41 Market Overview: Golden Triangle Source: S&P Global Market Intelligence, Air Force, Zippia, Mississippi State University, Greater Starkville Development Partnership and Company Documents Note: Legacy deposit data for FBMS as of 6/30/20; FBMS and Golden Triangle demographic data weighted by deposi
Slide 42: Pro Forma Deposit Market Share
42 Pro Forma Deposit Market Share Source: S&P Global Market Intelligence and Company Documents Note: FDIC deposit data as of 6/30/20; Acquired branch data as of 6/30/21(1) Pro forma for the pending BXS – CADE MOE and announced branch sale to FBMS Leading pro forma deposit market share in Golden Tria
Slide 43: Appendix
43 Appendix
Slide 44: Deposit Market Share by State
44 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 (excludes FBMS pending branch acquisition)
Slide 45: Deposit Market Share by Select MSAs
45 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 46: Historical Financials
Historical Financials 46 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 47: Non-GAAP Reconciliation
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Slide 48: Non-GAAP Reconciliation (cont.)
48 Non-GAAP Reconciliation (cont.)
Slide 49: Non-GAAP Reconciliation (cont.)
49 Non-GAAP Reconciliation (cont.)
Slide 50: Non-GAAP Reconciliation (cont.)
50 Non-GAAP Reconciliation (cont.)
Slide 51: Non-GAAP Reconciliation (cont.)
51 Non-GAAP Reconciliation (cont.)
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