The First Bancshares, Inc. Reports Results for Fourth Quarter ended December 31, 2023; Increases Quarterly Dividend 4%
The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended December 31, 2023.
Highlights for the quarter:
Net income available to common shareholders totaled $11.0 million for the quarter ended December 31, 2023, representing a decrease of 54.7% when compared to $24.4 million for the quarter ended September 30, 2023. Several one-time items are detailed in the tables located in the appendix of this release. Excluding one-time items detailed in the tables located in the appendix of this release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1% to $18.7 million for the quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023. For the quarter ended December 31, 2023, total loans increased $80.2 million, or 6.3%, on an annualized basis, as compared to the quarter ended September 30, 2023. During the fourth quarter of 2023, The First Bank (the "First") sold $123.0 million in available-for-sale securities with a weighted average book yield of 1.12% and average remaining life of 3 years. The First recognized a pre-tax loss of $9.7 million. The First reinvested the proceeds of the sale in available-for-sale bonds in the amount of $92.0 million with a weighted average life of 6 years and an average book yield of 5.33%. The balance sheet repositioning is expected to result in increases in net interest margin of 8 basis points, and net interest income of $4.7 million, and earnings per share of $0.11 with an estimated earn back period of 2.1 years. The First also used $30.0 million of the proceeds to repay borrowings from the Federal Reserve Bank under the Bank Term Funding Program. Net interest margin decreased 19 basis points during the quarter ended December 31, 2023 from 3.47% to 3.28%. Core net interest margin (non-GAAP) decreased 13 basis points during the quarter ended December 31, 2023 from 3.27% to 3.14%. Cost of deposits averaged 154 basis points for the fourth quarter of 2023 compared to 121 basis points for the third quarter 2023. Annualized quarter-to-date net charge-offs and recoveries to total loans were $783 thousand, or 0.061% for the quarter ended December 31, 2023, compared to $49 thousand, or 0.004% for the quarter ended September 30, 2023, and compared to $39 thousand, or 0.004% for the quarter ended December 31, 2022. Nonperforming assets of $20.2 million to total assets was 0.25% for the quarter ended December 31, 2023, compared to $22.4 million, or 0.28% for the quarter ended September 30, 2023, and $17.7 million, 0.27% for the quarter ended December 31, 2022.Highlights for the year:
In the year-over-year comparison, net income available to common shareholders increased $12.5 million, or 19.9%, from $62.9 million for the year ended December 31, 2022 to $75.5 million for the same period ended December 31, 2023. Excluding one-time items detailed in the tables located in the appendix of this release, net earnings available to common shareholders, operating (non-GAAP) increased $28.4 million, or 41.6% to $96.7 million for the year ended December 31, 2023 as compared to $68.3 million for the same period ended December 31, 2022. Excluding the loans acquired from the Heritage Southeast Bank ("Heritage Bank") acquisition of $1.159 billion, total loans increased $236.9 million for the year ended December 31, 2023, representing net growth of 6.3%, as compared to the same period ended December 31, 2022. Past due loans of $11.7 million to total loans was 0.23% for the year ended December 31, 2023, compared to $6.1 million, or 0.16% for the same period ended December 31, 2022. Cost of deposits averaged 109 basis points for the year ended December 31, 2023, compared to 26 basis points for the same period ended December 31, 2022. Fully tax equivalent ("FTE") net interest margin (non-GAAP) increased 40 basis points to 3.59% for the year ended December 31, 2023, compared to 3.19% for the same period ended December 31, 2022. For additional information, see the investor presentation filed and available under presentations and press releases included in the investor relations section of the Company's website: www.thefirstbank.com.M. Ray “Hoppy” Cole, Jr., President, and Chief Executive Officer, commented, “We continued to experience margin compression during the fourth quarter as non-GAAP core net interest margin decreased 13 basis points due to increased interest costs and the seasonality of our deposit portfolio. Loan growth and credit remained strong with $80 million of net loan growth for the quarter, or 6.3% on an annualized basis. Non-performing assets decreased for the quarter and past dues were low at 23 basis points.
"For the full year of 2023, the Company produced strong results as average assets grew 22.5% from $6.5 billion to $7.9 billion, non-GAAP operating earnings grew $28.4 million to $96.7 million, a 41.6% increase, and dividends to common shareholders increased 21.6% to $0.90 per share.
"Our team members performed extremely well in 2023, in a very difficult operating environment and we remain focused on increasing the returns to our shareholders.”
Quarterly Earnings
Net income available to common shareholders totaled $11.0 million for the quarter ended December 31, 2023, a decrease of $13.3 million, or 54.7%, when compared to $24.4 million for the quarter ended September 30, 2023. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1%, to $18.7 million for quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023. This decrease was partially attributable to a decrease in accretion income of $1.0 million and an increase in borrowing costs of $0.9 million, as well as increased deposit costs of $5.2 million, each for the quarter ended December 31, 2023.
The Company recorded a provision for credit losses of $1.3 million for the quarter ended December 31, 2023 and $1.0 million for the quarter ended September 30, 2023.
Earnings Per Share
For the fourth quarter of 2023, diluted earnings per share were $0.35 compared to $0.77 for the third quarter of 2023 and $0.67 for the fourth quarter of 2022.
Diluted earnings per share, operating (non-GAAP) were $0.59 for the fourth quarter of 2023 compared to $0.76 for the third quarter of 2023 and $0.71 for the fourth quarter of 2022.
Effective January 1, 2023, the Company issued 6,920,422 shares of its common stock in conjunction with the closing of the acquisition of Heritage Bank.
Balance Sheet
Consolidated assets increased $115.1 million to $7.999 billion at December 31, 2023 from $7.884 billion at September 30, 2023. Loans increased $80.2 million and cash increased $157.5 million for the quarterly comparison.
Total loans were $5.170 billion for the quarter ended December 31, 2023, as compared to $5.090 billion for the quarter ended September 30, 2023, and $3.774 billion for the quarter ended December 31, 2022, representing an increase of $80.2 million, or 1.6%, for the sequential quarter comparison, and increase of $1.396 billion, or 37.0%, for the prior year quarterly comparison. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were recorded from the Heritage Bank acquisition.
Total loans increased $80.2 million, or 1.6% as compared to the quarter ended September 30, 2023, or 6.3% on an annualized basis.
Excluding the acquired Heritage Bank loans, total loans increased $236.9 million, or 6.3% compared to the quarter ended December 31, 2022.
Total deposits were $6.463 billion for the quarter ended December 31, 2023, as compared to $6.480 billion for the quarter ended September 30, 2023, and $5.494 billion for the quarter ended December 31, 2022, representing a decrease of $17.2 million, or 0.3%, for the sequential quarter comparison, and an increase of $968.5 million, or 17.6%, for the prior year quarterly comparison. During January 2023, deposits totaling $1.392 billion, net of purchase accounting adjustments, were acquired in the Heritage Bank acquisition.
Deposits decreased $17.2 million, or 0.3% for the prior quarter comparison. Public funds account for $14.9 million of the decrease in deposits.
Book value per share increased to $30.22 at December 31, 2023 from $28.57 at September 30, 2023.
Tangible book value per share (non-GAAP) increased $1.73 to $19.35 at December 31, 2023 from $17.62 at September 30, 2023. The balance in accumulated other comprehensive loss decreased $47.6 million to $117.6 million at December 31, 2023 from $165.2 million at September 30, 2023.
Asset Quality
Nonperforming assets totaled $20.2 million at December 31, 2023, a decrease of $2.2 million compared to $22.4 million at September 30, 2023 and an increase of $2.5 million compared to $17.7 million at December 31, 2022.
Nonaccrual loans totaled $10.7 million, a decrease of $6.7 million as compared to September 30, 2023 and a decrease of $1.9 million as compared to December 31, 2022.
The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at December 31, 2023, 1.05% at September 30, 2023 and 1.03% at December 31, 2022. The ratio of annualized net charge-offs (recoveries) to total loans was 0.061% for the quarter ended December 31, 2023 compared to 0.004% for the quarter ended September 30, 2023 and 0.004% for the quarter ended December 31, 2022.
Fourth Quarter 2023 vs Third Quarter 2023 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2023 decreased $13.3 million to $11.0 million compared to $24.4 million for the third quarter of 2023. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $5.3 million, or 22.1%, to $18.7 million for quarter ended December 31, 2023 as compared to $24.0 million for the quarter ended September 30, 2023. This decrease was partially attributable to a decrease in accretion income of $1.0 million and an increase in borrowing costs of $0.9 million, as well as increased deposit costs of $5.2 million, each for the quarter ended December 31, 2023.
Net interest income for the fourth quarter of 2023 was $57.7 million as compared to $60.7 million for the third quarter of 2023, a decrease of $3.0 million. The decrease was largely due to the decrease in accretion of purchase accounting adjustments of $1.0 million as well as increased interest expense of $6.1 million partially offset by an increase in loan interest income of $4.0 million.
Fourth quarter 2023 net interest margin of 3.28% included 19 basis points related to purchase accounting adjustments compared to 3.47% for the third quarter in 2023, which included 25 basis points related to purchase accounting adjustments.
Core net interest margin (non-GAAP) decreased 13 basis points to 3.14% for the fourth quarter of 2023 from 3.27% for the third quarter of 2023.
Investment securities totaled $1.735 billion, or 21.7% of total assets at December 31, 2023, compared to $1.836 billion, or 23.3% of total assets at September 30, 2023. The average balance of investment securities decreased $60.6 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 11 basis points to 2.37% from 2.26% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $121.9 million at December 31, 2023 as compared to a net unrealized loss of $184.9 million at September 30, 2023.
The FTE average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 4.95% to 5.10%. Interest expense on average interest bearing liabilities increased 42 basis points from 2.05% for the third quarter of 2023 to 2.47% for the fourth quarter of 2023.
Cost of all deposits averaged 154 basis points for the fourth quarter of 2023 compared to 121 basis points for the third quarter of 2023. This increase was a result of rising interest rates and increased competition for deposits.
Non-interest income decreased $17.0 million from $19.3 million in the third quarter of 2023 to $2.3 million in the fourth quarter of 2023, primarily attributable to a U.S. Treasury award of $6.2 million recorded in the third quarter of 2023 and a loss on sales of available for sale investment securities of $9.7 million recorded in the fourth quarter of 2023.
Non-interest expense for the fourth quarter of 2023 was $44.4 million compared to $47.7 million for the third quarter of 2023, a decrease of $3.3 million. Excluding the $5.2 million related to the U.S. Treasury award recorded in the third quarter of 2023, expenses increased $1.9 million in the fourth quarter of 2023. $0.9 million of non-interest expense for the fourth quarter of 2023 was related to salary accruals for year end, and $0.08 million of non-interest expense for the fourth quarter of 2023 was related to professional services.
Fourth Quarter 2023 vs. Fourth Quarter 2022 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2023 totaled $11.0 million compared to $16.3 million for the fourth quarter of 2022, a decrease of $5.2 million or 32.2%. This decrease was partially attributable to the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities and other one-time items detailed in the tables included with this press release.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.6 million, or 9.06%, to $18.7 million for the quarter ended December 31, 2023, as compared to $17.2 million for the quarter ended December 31, 2022.
Net interest income for the fourth quarter of 2023 was $57.7 million, an increase of $9.7 million or 20.3% when compared to the fourth quarter of 2022. FTE net interest income (non-GAAP) totaled $58.7 million and $48.9 million for the fourth quarter of 2023 and 2022, respectively. Purchase accounting adjustments increased $1.7 million for the fourth quarter comparisons. The increase was largely due to increased interest rates as well as the acquisition of Heritage Bank.
Fourth quarter of 2023 net interest margin was 3.28%, which included 19 basis points related to purchase accounting adjustments compared to 3.31% for the same quarter in 2022, which included 8 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 14 basis points in prior year quarterly comparison primarily due to an increase in rates on interest bearing liabilities.
Non-interest income decreased $5.8 million for the fourth quarter of 2023 as compared to the fourth quarter of 2022. This decrease was attributed to the loss on sales of available for sale investment securities of $9.7 million partially offset by increases of $2.7 million in service charges and interchange fee income.
Fourth quarter 2023 non-interest expense was $44.4 million, an increase of $9.4 million, or 26.8% as compared to the fourth quarter of 2022. This increase was attributed to an increase of $4.9 million in charges related to the ongoing operations of Beach Bank and Heritage Bank, increased FDIC premiums of $0.7 million, and increased amortization of core deposit intangibles of $1.1 million.
Investment securities totaled $1.735 billion, or 21.7% of total assets at December 31, 2023, compared to $1.983 billion, or 30.7% of total assets at December 31, 2022. For the fourth quarter of 2023 compared to the fourth quarter of 2022, the average balance of investment securities decreased $154.6 million. The average tax equivalent yield on investment securities (non-GAAP) increased 9 basis points to 2.37% from 2.28% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $121.9 million at December 31, 2023 as compared to a net unrealized loss of $161.2 million at December 31, 2022.
The average yield on all earning assets increased 104 basis points in prior year quarterly comparison, from 4.00% for the fourth quarter of 2022 to 5.04% for the fourth quarter of 2023. Interest expense on average interest bearing liabilities increased 148 basis points from 0.99% for the fourth quarter of 2022 to 2.47% for the fourth quarter of 2023.
Cost of all deposits averaged 154 basis points for the fourth quarter of 2023 compared to 51 basis points for the fourth quarter of 2022.
Year-to-Date Earnings Comparison
In the year-over-year comparison, net income available to common shareholders increased $12.5 million, or 19.9%, from $62.9 million for the year ended December 31, 2022, to $75.5 million for the same period ended December 31, 2023.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $28.4 million, or 41.6%, to $96.7 million for the year ended December 31, 2023 as compared to $68.3 million for the same period ended December 31, 2022.
Net interest income was $249.3 million for the twelve months ended December 31, 2023, an increase of $71.5 million as compared to the same period ended December 31, 2022, primarily due to interest income earned on a higher volume of loans (including loans acquired from Heritage Bank and Beach Bank).
Non-interest income was $46.7 million for the year ended December 31, 2023, an increase of $9.7 million as compared to the same period ended December 31, 2022. Service charges on deposit accounts and interchange fee income accounted for $11.7 million of the increase.
Non-interest expense was $184.7 million for the year ended December 31, 2023, an increase of $54.2 million as compared to the same period ended December 31, 2022. The increase was partially attributable to $2.7 million in acquisition and charter conversion charges and $32.1 million in increased operating expenses related to the acquisitions of Beach Bank and Heritage Bank as well as $5.2 million in expenses associated with the U.S. Treasury awards and increases in FDIC premiums of $1.7 million and a $4.9 million increase in core deposit amortization for the year ended December 31, 2023.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.25 per share, a 4% increase over previous quarter, per share to be paid on its common stock on February 23, 2024 to shareholders of record as of the close of business on February 7, 2024.
Conference Call
The Company will host a conference call for analysts and investors to discuss the Company’s financial results at 10:00 a.m. Central Time on Thursday, January 25, 2024. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BIf4b652d4e9ff4cd5a10ec44d884e1480. An audio archive of the conference call along with the transcript will be available within 24-48 hours after the call and placed in the Investor Relations section of our website.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank (“The First”). Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida, and Georgia. The Company’s stock is traded on the NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes pre-tax, pre-provision operating earnings, FTE net interest income, FTE net interest margin, core net interest margin, FTE average yield on investment securities, FTE average yield on all earning assets, total tangible common equity, tangible book value per common share, net earnings available to common shareholders, operating, diluted earnings per share, operating, efficiency ratio, operating and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value, net interest margin, common equity, net earnings available to common shareholders, diluted earnings per share, efficiency ratio, average yield on investment securities, average yield on all earning assets, or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).
Forward Looking Statements
This news release 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 Exchange Act of 1934, as amended.
All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential,” “positioned” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risk and uncertainties which may cause the actual results, performance, or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) prevailing, or changes in, economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations, including the effects of declines in the real estate market, high unemployment rates, inflationary pressure, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (3) interest rate risk, including the effects of rising interest rates; (4) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (5) changes in applicable laws, rules, or regulations; (6) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (7) changes in management’s plans for the future; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) changes in accounting principles, policies, or guidelines; (11) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs related to the COVID-19 pandemic and related variants; (12) higher inflation and its impacts; (13) significant turbulence or disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (14) potential impacts of the adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (15) the effects of war or other conflicts including the impacts relating to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas, and (16) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the SEC, which are available on the SEC’s website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands except per share data)
EARNINGS DATA
Quarter
Ended
12/31/23
Quarter
Ended
9/30/23
Quarter
Ended
6/30/23
Quarter
Ended
3/31/23
Quarter
Ended
12/31/22
Total Interest Income
$
88,720
$
85,681
$
86,194
$
80,338
$
57,923
Total Interest Expense
31,055
24,977
20,164
15,412
10,002
Net Interest Income
57,665
60,704
66,030
64,926
47,921
Net Interest Income excluding PPP Fee Income
57,664
60,703
66,029
64,718
47,899
FTE net interest income*
58,651
61,696
67,028
65,924
48,916
Provision for credit losses
1,250
1,000
1,250
11,000
705
Non-interest income
2,346
19,324
12,423
12,612
8,131
Non-interest expense
44,433
47,724
46,899
45,670
35,040
Earnings before income taxes
14,328
31,304
30,304
20,868
20,307
Income tax expense
3,281
6,944
6,525
4,597
4,012
Net income available to common shareholders
$
11,047
$
24,360
$
23,779
$
16,271
$
16,295
PER COMMON SHARE DATA
Basic earnings per share
$
0.35
$
0.78
$
0.76
$
0.52
$
0.68
Diluted earnings per share
0.35
0.77
0.75
0.52
0.67
Diluted earnings per share, operating*
0.59
0.76
0.85
0.86
0.71
Quarterly dividends per share
0.24
0.23
0.22
0.21
0.20
Book value per common share at end of period
30.22
28.57
28.64
28.58
26.92
Tangible book value per common share at period end*
19.35
17.62
17.62
17.49
17.97
Market price at end of period
29.33
26.97
25.84
25.83
32.01
Shares outstanding at period end
31,399,803
31,404,231
31,406,220
31,364,973
24,025,762
Weighted average shares outstanding:
Basic
31,401,612
31,405,439
31,378,364
31,309,458
24,027,189
Diluted
31,587,506
31,609,564
31,591,665
31,541,213
24,168,544
AVERAGE BALANCE SHEET DATA
Total assets
$
7,917,303
$
7,873,345
$
7,882,130
$
8,003,254
$
6,446,521
Loans and leases
5,145,228
5,038,928
4,982,368
4,975,663
3,749,561
Total deposits
6,440,774
6,466,141
6,501,372
6,816,473
5,515,713
Total common equity
901,530
905,070
901,499
868,995
617,049
Total tangible common equity*
558,889
560,071
554,792
538,903
408,365
SELECTED RATIOS
Annualized return on avg assets (ROA)
0.56
%
1.24
%
1.21
%
0.81
%
1.01
%
Annualized return on avg assets, operating*
0.95
%
1.22
%
1.36
%
1.36
%
1.07
%
Annualized pre-tax, pre-provision, operating*
1.31
%
1.62
%
1.81
%
1.78
%
1.38
%
Annualized return on avg common equity, operating*
8.32
%
10.63
%
11.91
%
12.48
%
11.14
%
Annualized return on avg tangible common equity, operating*
13.41
%
17.17
%
19.35
%
20.13
%
16.83
%
Average loans to average deposits
79.89
%
77.93
%
76.64
%
72.99
%
67.98
%
FTE Net Interest Margin*
3.33
%
3.52
%
3.82
%
3.69
%
3.37
%
Efficiency Ratio
72.84
%
58.90
%
59.02
%
58.15
%
61.42
%
Efficiency Ratio, operating*
62.00
%
56.06
%
53.87
%
53.32
%
59.34
%
*See reconciliation of Non-GAAP financial measures
CREDIT QUALITY
Allowance for credit losses (ACL) as a % of total loans
1.05
%
1.05
%
1.05
%
1.06
%
1.03
%
Nonperforming assets to tangible equity + ACL
3.05
%
3.69
%
3.57
%
3.73
%
3.76
%
Nonperforming assets to total loans + OREO
0.39
%
0.44
%
0.43
%
0.45
%
0.47
%
Annualized QTD net charge-offs (recoveries) to total loans
0.061
%
0.004
%
0.070
%
0.010
%
0.004
%
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
355,147
$
197,632
$
194,050
$
333,491
$
145,315
Securities available for sale
1,042,365
1,141,971
1,199,103
1,249,791
1,257,101
Securities held to maturity
654,539
658,524
663,473
678,161
691,484
Other investments
37,754
35,872
35,725
34,423
33,944
Total investment securities
1,734,658
1,836,367
1,898,301
1,962,375
1,982,529
Loans held for sale
2,914
5,960
6,602
4,073
4,443
Total loans
5,170,042
5,089,800
5,010,925
4,969,776
3,774,157
Allowance for credit losses
(54,032
)
(53,565
)
(52,614
)
(52,450
)
(38,917
)
Loans, net
5,116,010
5,036,235
4,958,311
4,917,326
3,735,240
Premises and equipment
182,162
183,740
186,381
186,688
153,068
Other Real Estate Owned
8,320
4,920
5,588
5,066
4,832
Goodwill and other intangibles
341,332
343,869
346,104
347,777
214,890
Other assets
258,802
275,562
266,771
260,520
221,400
Total assets
$
7,999,345
$
7,884,285
$
7,862,108
$
8,017,316
$
6,461,717
Liabilities and Shareholders’ Equity
Non-interest bearing deposits
$
1,849,013
$
1,967,661
$
2,086,666
$
2,082,441
$
1,630,203
Interest-bearing deposits
4,613,859
4,512,364
4,405,601
4,585,515
3,864,201
Total deposits
6,462,872
6,480,025
6,492,267
6,667,956
5,494,404
Borrowings
390,000
302,000
280,000
250,000
130,100
Subordinated debentures
123,386
128,300
128,214
154,127
145,027
Other liabilities
74,053
76,739
62,181
48,806
45,523
Total liabilities
7,050,311
6,987,064
6,962,662
7,120,889
5,815,054
Total shareholders’ equity
949,034
897,221
899,446
896,427
646,663
Total liabilities and shareholders’ equity
$
7,999,345
$
7,884,285
$
7,862,108
$
8,017,316
$
6,461,717
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT
Three Months Ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
Interest Income:
Loans, including fees
$
74,357
$
70,349
$
68,057
$
64,264
$
45,583
Investment securities
10,803
10,614
10,815
11,707
11,251
Accretion of purchase accounting adjustments
3,235
4,277
6,533
3,469
1,086
Other interest income
325
441
789
898
3
Total interest income
88,720
85,681
86,194
80,338
57,923
Interest Expense:
Deposits
24,489
19,314
14,613
12,183
7,206
Borrowings
4,500
3,556
3,264
959
1,015
Subordinated debentures
1,807
1,849
2,138
2,176
1,946
Accretion of purchase accounting adjustments
259
258
149
94
(165
)
Total interest expense
31,055
24,977
20,164
15,412
10,002
Net interest income
57,665
60,704
66,030
64,926
47,921
Provision for credit losses
1,250
1,000
1,250
11,000
705
Net interest income after provision for credit losses
56,415
59,704
64,780
53,926
47,216
Non-interest Income:
Service charges on deposit accounts
3,447
3,646
3,425
3,657
2,277
Mortgage Income
582
878
773
633
625
Interchange Fee Income
4,593
5,280
4,543
4,498
3,093
Gain (Loss) on securities, net
(9,670
)
2
(48
)
—
—
Treasury Awards
—
6,197
—
—
—
Loss on sale of premises and equipment
(524
)
(104
)
—
—
—
Other charges and fees
3,918
3,425
3,730
3,824
2,136
Total non-interest income
2,346
19,324
12,423
12,612
8,131
Non-interest Expense:
Salaries and employee benefits
23,717
22,807
23,315
23,572
19,934
Occupancy expense
5,688
5,343
5,041
5,296
4,305
FDIC/OCC premiums
1,263
1,158
758
670
514
71
559
45
158
135
Amortization of core deposit intangibles
2,385
2,385
2,391
2,402
1,309
Other professional services
2,309
1,499
1,570
1,068
971
Acquisition and charter conversion charges
593
588
4,101
3,793
1,190
Other non-interest expense
8,407
13,385
9,678
8,711
6,682
Total non-interest expense
44,433
47,724
46,899
45,670
35,040
Earnings before income taxes
14,328
31,304
30,304
20,868
20,307
Income tax expense
3,281
6,944
6,525
4,597
4,012
Net income available to common shareholders
$
11,047
$
24,360
$
23,779
$
16,271
$
16,295
Diluted earnings per common share
$
0.35
$
0.77
$
0.75
$
0.52
$
0.67
Diluted earnings per common share, operating*
$
0.59
$
0.76
$
0.85
$
0.86
$
0.71
*See reconciliation of Non-GAAP financial measures
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT
Year to Date
2023
2022
Interest Income:
Loans, including fees
$
276,817
$
152,741
PPP loan fee income
210
1,718
Investment securities
43,939
42,575
Accretion of purchase accounting adjustments
17,514
3,309
Other interest income
2,453
50
Total interest income
340,933
200,393
Interest Expense:
Deposits
70,599
14,295
Borrowings
12,279
1,107
Subordinated debentures
7,970
7,492
Amortization of purchase accounting adjustments
760
(317
)
Total interest expense
91,608
22,577
Net interest income
249,325
177,816
Provision for credit losses
14,500
5,605
Net interest income after provision for credit losses
234,825
172,211
Non-interest Income:
Service charges on deposit accounts
14,175
8,668
Mortgage Income
2,866
4,303
Interchange Fee Income
18,914
12,702
Gain (loss) on securities, net
(9,716
)
(82
)
Treasury Awards
6,197
873
Bargain Purchase Gain and gain on sale of premises and equipment
—
165
BOLI income from death proceeds
—
1,630
Other charges and fees
14,269
8,702
Total non-interest income
46,705
36,961
Non-interest expense:
Salaries and employee benefits
93,412
73,077
Occupancy expense
21,368
15,835
FDIC/OCC premiums
3,849
2,122
833
393
Amortization of core deposit intangibles
9,563
4,664
Other professional services
6,446
3,558
Acquisition charter conversion charges
9,075
6,410
Other non-interest expense
40,180
24,424
Total Non-interest expense
184,726
130,483
Earnings before income taxes
96,804
78,689
Income tax expense
21,347
15,770
Net income available to common shareholders
75,457
62,919
Diluted earnings per common share
$
2.39
$
2.84
Diluted earnings per common share, operating*
$
3.06
$
3.08
*See reconciliation of Non-GAAP financial measures
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands)
COMPOSITION OF LOANS
December 31,
2023
Percent
of Total
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
Percent
of Total
Commercial, financial and agricultural
$
765,422
14.8
%
$
753,120
$
753,415
$
750,371
$
506,907
13.4
%
Real estate – construction
629,660
12.2
%
633,682
634,120
691,285
475,956
12.6
%
Real estate – commercial
2,377,864
45.8
%
2,317,666
2,251,710
2,181,384
1,626,066
43.0
%
Real estate – residential
1,311,395
25.4
%
1,298,980
1,286,343
1,262,244
1,094,204
29.0
%
Lease Financing Receivable
1,292
—
%
1,548
1,187
2,056
2,118
0.1
%
Obligations of States subdivisions
29,316
0.6
%
29,650
31,137
31,652
26,143
0.7
%
Consumer
55,094
1.1
%
55,154
53,013
50,784
42,763
1.1
%
Loans held for sale
2,914
0.1
%
5,960
6,602
4,073
4,443
0.1
%
Total loans
$
5,172,957
100
%
$
5,095,760
$
5,017,527
$
4,973,849
$
3,778,600
100.0
%
COMPOSITION OF DEPOSITS
December 31,
2023
Percent
of Total
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
Percent
of Total
Non-interest bearing
$
1,849,013
28.6
%
$
1,967,661
$
2,086,666
$
2,082,441
$
1,630,203
29.7
%
NOW and other
1,914,792
29.6
%
1,962,383
2,014,420
2,095,599
1,769,699
32.2
%
Money Market/Savings
1,623,311
25.1
%
1,532,822
1,565,212
1,678,609
1,368,108
24.9
%
Time Deposits of less than $250,000
813,877
12.6
%
766,553
627,782
562,240
590,564
10.7
%
Time Deposits of $250,000 or more
261,879
4.1
%
250,606
198,187
249,067
135,830
2.5
%
Total Deposits
$
6,462,872
100
%
$
6,480,025
$
6,492,267
$
6,667,956
$
5,494,404
100.0
%
ASSET QUALITY DATA
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
Nonaccrual loans
$
10,691
$
17,423
$
16,037
$
17,312
$
12,591
Loans past due 90 days and over
1,163
53
—
73
289
Total nonperforming loans
11,854
17,476
16,037
17,385
12,880
Other real estate owned
8,320
4,920
5,588
5,066
4,832
Total nonperforming assets
$
20,174
$
22,396
$
21,625
$
22,451
$
17,712
Nonperforming assets to total assets
0.25
%
0.28
%
0.28
%
0.28
%
0.27
%
Nonperforming assets to total loans + OREO
0.39
%
0.44
%
0.43
%
0.45
%
0.47
%
ACL to nonperforming loans
455.81
%
306.51
%
328.08
%
301.70
%
302.15
%
ACL to total loans
1.05
%
1.05
%
1.05
%
1.06
%
1.03
%
Qtr-to-date net charge-offs (recoveries)
$
783
$
49
$
837
$
142
$
39
Annualized QTD net chg-offs (recs) to loans
0.061
%
0.004
%
0.070
%
0.010
%
0.004
%
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
Analysis
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Tax
Tax
Tax
Tax
Tax
Avg
Equivalent
Avg
Equivalent
Avg
Equivalent
Avg
Equivalent
Avg
Equivalent
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Balance
interest
Rate
Taxable securities
$
1,375,695
$
7,892
2.29
%
$
1,419,343
$
7,685
2.17
%
$
1,473,166
$
7,867
2.14
%
$
1,565,623
$
8,758
2.24
%
$
1,522,953
$
8,312
2.18
%
Tax-exempt securities
446,348
3,897
3.49
%
463,329
3,921
3.39
%
470,742
3,946
3.35
%
462,718
3,946
3.41
%
453,651
3,934
3.47
%
Total investment securities
1,822,043
11,789
2.59
%
1,882,672
11,606
2.47
%
1,943,908
11,813
2.43
%
2,028,341
12,704
2.51
%
1,976,604
12,246
2.48
%
Int bearing dep in other banks
70,193
325
1.85
%
79,448
441
2.22
%
93,464
789
3.38
%
146,663
898
2.45
%
72,910
3
0.02
%
Loans
5,145,228
77,592
6.03
%
5,038,928
74,626
5.92
%
4,982,368
74,590
5.99
%
4,975,663
67,734
5.45
%
3,749,561
46,670
4.98
%
Total interest earning assets
7,037,464
89,706
5.10
%
7,001,048
86,673
4.95
%
7,019,740
87,192
4.97
%
7,150,667
81,336
4.55
%
5,799,075
58,919
4.06
%
Other assets
879,839
872,297
862,390
852,587
647,446
Total assets
$
7,917,303
$
7,873,345
$
7,882,130
$
8,003,254
$
6,446,521
Interest-bearing liabilities:
Deposits
$
4,533,386
$
24,748
2.18
%
$
4,459,869
$
19,572
1.76
%
$
4,465,800
$
14,762
1.32
%
$
4,738,076
$
12,277
1.04
%
$
3,801,632
$
7,041
0.74
%
Borrowed Funds
361,445
4,500
4.98
%
296,963
3,556
4.79
%
277,531
3,264
4.70
%
77,098
959
4.98
%
108,881
1,015
3.73
%
Subordinated debentures
126,925
1,807
5.69
%
128,251
1,849
5.77
%
145,418
2,138
5.88
%
155,084
2,176
5.61
%
144,985
1,946
5.37
%
Total interest bearing liabilities
5,021,756
31,055
2.47
%
4,885,083
24,977
2.05
%
4,888,749
20,164
1.65
%
4,970,258
15,412
1.24
%
4,055,498
10,002
0.99
%
Other liabilities
1,994,017
2,083,192
2,091,882
2,164,001
1,773,974
Shareholders' equity
901,530
905,070
901,499
868,995
617,049
Total liabilities and shareholders' equity
$
7,917,303
$
7,873,345
$
7,882,130
$
8,003,254
$
6,446,521
Net interest
income (FTE)*
$
58,651
2.63
%
$
61,696
2.91
%
$
67,028
3.32
%
$
65,924
3.31
%
$
48,917
3.08
%
Net interest margin (FTE)*
3.33
%
3.52
%
3.82
%
3.69
%
3.37
%
Core net interest margin*
3.14
%
3.27
%
3.43
%
3.47
%
3.29
%
*See reconciliation for Non-GAAP financial measures
THE FIRST BANCSHARES, INC and SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
Three Months Ended
Per Common Share Data
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Book value per common share
$
30.22
$
28.57
$
28.64
$
28.58
$
26.92
Effect of intangible assets per share
10.87
10.95
11.02
11.09
8.95
Tangible book value per common share
$
19.35
$
17.62
$
17.62
$
17.49
$
17.97
Diluted earnings per share
$
0.35
$
0.77
$
0.75
$
0.52
$
0.68
Effect of acquisition and charter conversion charges
0.02
0.02
0.13
0.11
0.05
Tax on acquisition and charter conversion charges
(0.01
)
(0.01
)
(0.03
)
(0.02
)
(0.02
)
Effect of Treasury awards
—
(0.20
)
—
—
—
Tax on Treasury awards
—
0.05
—
—
—
Effect on contributions/consulting/advertising related to Treasury awards
—
0.17
—
—
—
Tax on contributions/consulting/advertising related to Treasury awards
—
(0.04
)
—
—
—
Initial provision for acquired loans
—
—
—
0.34
—
Tax on initial provision for acquired loans
—
—
—
(0.09
)
—
Loss on securities repositioning
0.31
—
—
—
—
Tax loss on securities repositioning
(0.08
)
—
—
—
—
Diluted earnings per share, operating
$
0.59
$
0.76
$
0.85
$
0.86
$
0.71
Year to Date
2023
2022
Diluted earnings per share
$
2.39
$
2.84
Effect of acquisition and charter conversion charges
0.28
0.29
Tax on acquisition and charter conversion charges
(0.07
)
(0.08
)
Effect of bargain purchase gain and loss on sale of fixed assets
—
(0.01
)
Effect of Treasury awards
(0.20
)
(0.04
)
Tax on Treasury awards
0.05
0.01
BOLI income from death proceeds
—
(0.08
)
Effect on contributions/consulting/advertising related to Treasury awards
0.17
0.01
Tax on contributions/consulting/advertising related to Treasury awards
(0.04
)
—
Initial provision for acquired loans
0.34
0.18
Tax on initial provision for acquired loans
(0.09
)
(0.04
)
Loss on securities repositioning
0.31
—
Tax loss on securities repositioning
(0.08
)
—
Diluted earnings per share, operating
$
3.06
$
3.08
Year to Date
2023
2022
Net income available to common shareholders
$
75,457
$
62,919
Acquisition and charter conversion charges
9,075
6,410
Tax on acquisition and charter conversion charges
(2,296
)
(1,621
)
Bargain purchase gain and loss on sale of fixed assets
—
(165
)
Tax on bargain purchase gain and loss on sale of fixed assets
—
42
Treasury awards
(6,197
)
(872
)
Tax on Treasury awards
1,568
221
BOLI income from death proceeds
—
(1,630
)
Contributions/consulting/advertising related to Treasury awards
5,190
165
Tax on contributions/consulting/advertising related to Treasury awards
(1,313
)
(42
)
Initial provision for acquired loans
10,727
3,855
Tax on initial provision for acquired loans
(2,714
)
(976
)
Loss on securities repositioning
9,708
—
Tax loss on securities repositioning
(2,457
)
—
Net earnings available to common shareholders, operating
$
96,748
$
68,306
Three Months Ended
Average Balance Sheet Data
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Total average assets
A
$
7,917,303
$
7,873,345
$
7,882,130
$
8,003,254
$
6,446,521
Total average earning assets
B
7,037,464
7,001,048
7,019,740
7,150,667
5,799,075
Common Equity
C
$
901,530
$
905,070
$
901,499
$
868,995
$
617,049
Less intangible assets
342,641
344,999
346,707
330,092
208,684
Total Tangible common equity
D
$
558,889
$
560,071
$
554,792
$
538,903
$
408,365
Three Months Ended
Net Interest Income Fully Tax Equivalent
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Net interest income
E
$
57,665
$
60,704
$
66,030
$
64,926
$
47,921
Tax-exempt investment income
(2,911
)
(2,929
)
(2,948
)
(2,948
)
(2,939
)
Taxable investment income
3,897
3,921
3,946
3,946
3,934
Net Interest Income Fully Tax Equivalent
F
$
58,651
$
61,696
$
67,028
$
65,924
$
48,916
Annualized Net Interest Margin
E/B
3.28
%
3.47
%
3.76
%
3.63
%
3.31
%
Annualized Net Interest Margin, Fully Tax Equivalent
F/B
3.33
%
3.52
%
3.82
%
3.69
%
3.37
%
Total Interest Income, Fully Tax Equivalent
Total Interest Income
R
$
88,720
$
85,681
$
86,194
$
80,338
$
57,923
Tax-exempt investment income
(2,911
)
(2,929
)
(2,948
)
(2,948
)
(2,939
)
Taxable investment income
3,897
3,921
3,946
3,946
3,934
Total Interest Income, Fully Tax Equivalent
G
$
89,706
$
86,673
$
87,192
$
81,336
$
58,918
Yield on Average Earning Assets
R/B
5.04
%
4.90
%
4.91
%
4.49
%
4.00
%
Yield on Average Earning Assets, Fully Tax Equivalent
G/B
5.10
%
4.95
%
4.97
%
4.55
%
4.06
%
Interest Income Investment Securities, Fully Tax Equivalent
Interest Income Investment Securities
S
$
10,803
$
10,614
$
10,815
$
11,706
$
11,251
Tax-exempt investment income
(2,911
)
(2,929
)
(2,948
)
(2,948
)
(2,939
)
Taxable investment Income
3,897
3,921
3,946
3,946
3,934
Interest Income Investment Securities, Fully Tax Equivalent
H
$
11,789
$
11,606
$
11,813
$
12,704
$
12,246
Average Investment Securities
I
$
1,822,043
$
1,882,672
$
1,943,908
$
2,028,341
$
1,976,604
Yield on Investment Securities
S/I
2.37
%
2.26
%
2.23
%
2.31
%
2.28
%
Yield on Investment Securities, Fully Tax Equivalent
H/I
2.59
%
2.47
%
2.43
%
2.51
%
2.48
%
Three Months Ended
Core Net Interest Margin
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Net interest income (FTE)
$
58,651
$
61,696
$
67,028
$
65,924
$
48,916
Less purchase accounting adjustments
3,235
4,276
6,533
3,469
1,086
Net interest income, net of purchase accounting adj
J
$
55,416
$
57,420
$
60,495
$
62,455
$
47,830
Total average earning assets
$
7,037,464
$
7,001,048
$
7,019,740
$
7,150,667
$
5,799,075
Add average balance of loan valuation discount
27,573
31,269
38,306
42,945
10,928
Avg earning assets, excluding loan valuation discount
K
$
7,065,037
$
7,032,317
$
7,058,046
$
7,193,612
$
5,810,003
Core net interest margin
J/K
3.14
%
3.27
%
3.43
%
3.47
%
3.29
%
Three Months Ended
Efficiency Ratio
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Operating Expense
Total non-interest expense
$
44,433
$
47,724
$
46,899
$
45,670
$
35,040
Pre-tax non-operating expenses
(594
)
(5,777
)
(4,101
)
(3,793
)
(1,190
)
Adjusted Operating Expense
L
$
43,839
$
41,947
$
42,798
$
41,877
$
33,850
Operating Revenue
Net interest income, FTE
$
58,651
$
61,696
$
67,028
$
65,924
$
48,916
Total non-interest income
2,346
19,324
12,423
12,612
8,131
Pre-tax non-operating items
9,708
(6,197
)
—
—
—
Adjusted Operating Revenue
M
$
70,705
$
74,823
$
79,451
$
78,536
$
57,047
Efficiency Ratio, operating
L/M
62.00
%
56.06
%
53.87
%
53.32
%
59.34
%
Three Months Ended
Return Ratios
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Net income available to common shareholders
N
$
11,047
$
24,360
$
23,779
$
16,271
$
16,295
Acquisition and charter conversion charges
593
588
4,101
3,793
1,190
Tax on acquisition and charter conversion charges
(150
)
(149
)
(1,037
)
(960
)
(301
)
Treasury awards
—
(6,197
)
—
—
—
Tax on Treasury awards
—
1,568
—
—
—
Contributions/consulting/advertising related to Treasury awards
—
5,190
—
—
—
Tax on contributions/consulting/advertising related to Treasury awards
—
(1,313
)
—
—
—
Initial provision for acquired loans
—
—
—
10,727
—
Tax on initial provision for acquired loans
—
—
—
(2,714
)
—
Loss on securities repositioning
9,708
—
—
—
—
Tax loss on securities repositioning
(2,457
)
—
—
—
—
Net earnings available to common shareholders, operating
O
$
18,741
$
24,047
$
26,843
$
27,117
$
17,184
Three Months Ended
Pre-Tax Pre-Provision Operating Earnings
Dec 31, 2023
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Earnings before income taxes
P
$
14,328
$
31,304
$
30,304
$
20,868
$
20,307
Acquisition and charter conversion charges
593
588
4,101
3,793
1,190
Provision for credit losses
1,250
1,000
1,250
11,000
705
Treasury awards
—
(6,197
)
—
—
—
Contributions/consulting/advertising related to Treasury awards
—
5,190
—
—
—
Loss on securities repositioning
9,708
—
—
—
—
Pre-Tax, Pre-Provision Operating Earnings
Q
$
25,879
$
31,885
$
35,655
$
35,661
$
22,202
Annualized return on avg assets
N/A
0.56
%
1.24
%
1.21
%
0.81
%
1.01
%
Annualized return on avg assets, oper
O/A
0.95
%
1.22
%
1.36
%
1.36
%
1.07
%
Annualized pre-tax, pre-provision, oper
Q/A
1.31
%
1.62
%
1.81
%
1.78
%
1.38
%
Annualized return on avg common equity, oper
O/C
8.32
%
10.63
%
11.91
%
12.48
%
11.14
%
Annualized return on avg tangible common equity, operating
O/D
13.41
%
17.17
%
19.35
%
20.13
%
16.83
%
Three Months Ended
Capital Ratios
Dec 31, 2023*
Sept 30, 2023
June 30, 2023
Mar 31, 2023
Dec 31, 2022
Common equity tier 1 (CET1) ratio
12.1
%
12.0
%
11.5
%
11.2
%
12.7
%
Leverage (Tier 1) ratio
9.7
%
9.6
%
9.1
%
8.8
%
9.3
%
Total risk based capital ratio
15.0
%
15.1
%
14.5
%
14.7
%
16.7
%
Tangible common equity ratio
7.9
%
7.3
%
7.4
%
7.2
%
6.9
%
*estimated
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