The First Bancshares, Inc. Reports a 72.8% Increase in Net Income Available to Common Shareholders in Quarterly Comparison; Increases Quarterly Dividend 25%

Donnerstag, 29.02.20 11:40
The First Bancshares, Inc. Reports a 72.8% Increase in Net Income Available to Common Shareholders in Quarterly Comparison; Increases Quarterly Dividend 25%
Bildquelle: fotolia.com
HATTIESBURG, Miss. –

The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders for the quarter and fiscal year ended December 31, 2019 and an increase in the quarterly dividend.

Quarterly Earnings

Net income available to common shareholders totaled $11.9 million for the quarter ended December 31, 2019, an increase of $5.0 million, or 72.8%, compared to $6.9 million for the quarter ended December 31, 2018, and a decrease of $0.4 million, compared to the third quarter of 2019.

Operating net earnings increased 44.0%, or $4.0 million, for the quarter ended December 31, 2019, totaling $13.2 million as compared to $9.1 million for the fourth quarter of 2018, and increased $0.3 million, or 2.6%, as compared to $12.8 million for the third quarter of 2019. Operating net earnings for the fourth quarter of 2019 excludes merger-related costs of $1.8 million, net of tax and income in the form of financial assistance grant from the U. S. Department of Treasury of $0.5 million, net of tax. Operating net earnings for the fourth quarter of 2018 excludes merger-related costs of $3.2 million, net of tax, income in the form of financial assistance grant from the U. S. Department of Treasury of $0.7 million, net of tax, and income from the sale of securities of $0.3 million, net of tax. Operating net earnings for the third quarter of 2019 excludes merger-related costs of $0.6 million, net of tax.

Yearly Earnings

Net income available to common shareholders totaled $43.7 million for the fiscal year ended December 31, 2019, an increase of $22.5 million, or 106.1%, compared to $21.2 million for the fiscal year ended December 31, 2018.

Operating net earnings increased 59.9%, or $18.0 million for the fiscal year ended December 31, 2019, totaling $48.0 million as compared to $30.0 million for the fiscal year ended December 31, 2018. Operating net earnings for fiscal year 2019 excludes merger-related costs of $4.9 million, net of tax, and income in the form of financial assistance grant from the U. S. Department of Treasury of $0.7 million, net of tax. Operating net earnings for fiscal year 2018 excludes merger-related costs of $10.6 million, net of tax, income in the form of financial assistance grant from the U. S. Department of Treasury of $1.6 million, net of tax, and income from the sale of securities of $0.3 million, net of tax.

Earnings Per Share

For the fourth quarter of 2019, fully diluted earnings per share were $0.64, compared to $0.48 for the fourth quarter of 2018 and $0.71 for the third quarter of 2019.

Excluding the impact of the merger-related costs and income described above, fully diluted operating earnings per share for the fourth quarter of 2019 were $0.72 as compared to $0.64 for the fourth quarter of 2018, and $0.74 for the third quarter of 2019.

For the full year 2019, fully diluted earnings per share were $2.55, compared to $1.62 for the full year 2018, an increase of 57.4%.

Excluding the impact of the merger-related costs and other income items described above, fully diluted operating earnings per share for the year ended December 31, 2019 were $2.79 as compared to $2.29 for 2018, an increase of 21.8%.

Fully diluted earnings per share for 2019 include the issuance of 2,377,501 shares of our common stock during the first quarter of 2019 in association with the acquisition of FPB Financial Corp (“FPB”) and the issuance of 1,682,889 shares of our common stock during the fourth quarter of 2019 in association with the acquisition of First Florida Bancorp, Inc. (“FFB”). Fully diluted earnings per share for 2019 include the purchase by the Company of 143,566 shares of our common stock during the second quarter of 2019, 13,873 shares of our common stock during the third quarter of 2019 and 10,749 shares of our common stock during the fourth quarter of 2019 related to the Company’s share repurchase program.

Fully diluted earnings per share for 2018 include the issuance of 1,134,010 shares issued in connection with the acquisition of Southwest Bancshares, Inc. (“Southwest”) during the first quarter of 2018, 726,461 shares issued in connection with the acquisition of Sunshine Financial, Inc. (“Sunshine”) during the second quarter of 2018 and 1,763,036 shares issued in connection with the acquisition of FMB Banking Corporation (“FMB”) during the fourth quarter of 2018.

Highlights for the Quarter:

  • On November 1, 2019, the Company closed its acquisition of First Florida Bancorp, Inc. (“FFB”), parent company of First Florida Bank, headquartered in Destin, FL. which added 7 locations servicing the areas of Destin, Fort Walton, Crestview and Panama City, Florida, and completed systems integration during the quarter.
  • On December 18, 2019, the Company announced the signing of an Agreement and Plan of Merger with Southwest Georgia Financial Corporation (“SGB”), parent company of Southwest Georgia Bank, headquartered in Moultrie, GA. Upon completion, the acquisition will add 8 full service offices servicing the areas of Moultrie, Valdosta, Albany and Tifton, Georgia. The closing of the transaction is expected to occur in the second quarter of 2020 and is subject to customary closing conditions, including regulatory approvals and approval by the shareholders of SGB.
  • Operating net earnings increased 59.9% to $48.0 million for the fiscal year ended December 31, 2019 as compared to fiscal year ended December 31, 2018.
  • Operating net earnings increased 44.0% to $13.2 million for the quarter ended December 31, 2019 as compared to the fourth quarter of 2018.

M. Ray “Hoppy” Cole, President and Chief Executive Officer, commented, “Our team continues to execute on our strategic vision of creating a regional community bank that provides outstanding service to our clients and superior returns to our shareholders. The results of 2019 reflect that continued execution with 31.2% growth in total assets and a 21.8% increase in fully diluted operating earnings per share year over year. We are excited about the growth and profitability of our Company and look forward to the opportunities for continued growth that lie ahead.”

Balance Sheet

Consolidated assets increased $459.9 million to $3.942 billion at December 31, 2019 from $3.482 billion at September 30, 2019. The acquisition of FFB accounted for $401.6 million of the increase.

Total average loans were $2.513 billion for the quarter ended December 31, 2019, as compared to $2.343 billion for the quarter ended September 30, 2019, and $1.959 billion for the quarter ended December 31, 2018, representing an increase of $169.1 million, or 7.2%, for the sequential quarter comparison, and an increase of $553.3 million, or 28.2%, in prior year quarterly comparison. The acquisitions of FPB and FFB, accounted for $388.7 million, net of fair value marks, of the total increase in average loans as compared to the fourth quarter of 2018. Excluding the acquired loans, average loans increased $4.9 million for the sequential quarter comparison. Excluding the acquired loans, average loans increased $164.7 million, or 8.4% as compared to the quarter ended December 31, 2018.

Total average deposits were $2.963 billion for the quarter ended December 31, 2019, as compared to $2.766 billion for the quarter ended September 30, 2019, and $2.297 billion for the quarter ended December 31, 2018, representing an increase of $197.8 million, or 7.2%, for the sequential quarter comparison, and an increase of $666.6 million, or 29.0%, in prior year quarterly comparison. The acquisitions of FPB and FFB, accounted for $534.4 million of the total increase in average deposits as compared to the fourth quarter of 2018. Excluding the acquired deposits, average deposits decreased $40.8 million for the sequential quarter comparison. Excluding the acquired deposits, average deposits increased $132.2 million, or 5.8% as compared to the quarter ended December 31, 2018.

Asset Quality

Nonperforming assets totaled $48.4 million at December 31, 2019, an increase of $1.1 million compared to $47.3 million at September 30, 2019 and an increase of $11.0 million compared to $37.4 million at December 31, 2018. Nonaccrual loans and loans past due 90 days and over still accruing increased $14.8 million while other real estate decreased $3.6 million when comparing year end December 31, 2019 to year end December 31, 2018. Nonaccrual loans and loans past due 90 days and over still accruing increased $3.8 million while other real estate decreased $2.7 million for the linked quarter. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.53% at December 31, 2019, 0.56% at September 30, 2019 and 0.49% at December 31, 2018. The ratio of annualized net charge-offs (recoveries) to total loans was (0.002%) for the quarter ended December 31, 2019 compared to 0.004% for the quarter ended September 30, 2019 and 0.02% for the quarter ended December 31, 2018.

Fourth Quarter 2019 vs. Fourth Quarter 2018 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2019 totaled $11.9 million compared to $6.9 million for the fourth quarter of 2018, an increase of $5.0 million or 72.8%.

Operating net earnings for the fourth quarter of 2019 totaled $13.2 million compared to $9.1 million for the fourth quarter of 2018, an increase of $4.0 million or 44.0%. The calculation of operating net earnings excludes the merger-related costs and the income for each quarter as discussed above.

Net interest income for the fourth quarter of 2019 was $33.4 million, an increase of $8.2 million when compared to the fourth quarter of 2018. The increase was due to interest income earned on a higher volume of loans. Fully tax equivalent (“FTE”) net interest income totaled $33.8 million and $25.5 million for the fourth quarter of 2019 and 2018, respectively. FTE net interest income increased $8.3 million in the prior year quarterly comparison due to increased loan volume. Purchase accounting adjustments accounted for $0.6 million of the difference in net interest income for the fourth quarter comparisons. Fourth quarter 2019 FTE net interest margin of 4.06% included 26 basis points related to purchase accounting adjustments compared to 4.08% for the same quarter in 2018, which included 24 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 4 basis points in prior year quarterly comparison.

Non-interest income increased $1.2 million for the fourth quarter of 2019 as compared to the fourth quarter of 2018 due to increased service charges and interchange fee income of $0.8 million, which increase is primarily attributable to the increase in our deposit base due to the acquisitions. Mortgage income increased $0.8 million in prior year quarterly comparison.

Fourth quarter 2019 non-interest expense was $25.0 million, an increase of $2.7 million, or 12.2% as compared to the fourth quarter of 2018. Excluding the decrease in acquisition charges of $1.9 million for the fourth quarter of 2019, non-interest expense increased $4.6 million in the fourth quarter of 2019, of which $3.1 million was attributable to the operations of FPB and FFB, as compared to fourth quarter of 2018.

Investment securities totaled $791.8 million, or 20.1% of total assets at December 31, 2019, versus $514.9 million, or 17.1% of total assets at December 31, 2018. The average balance of investment securities increased $260.8 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities decreased 9 basis points to 3.06% from 3.15% in prior year quarterly comparison. The investment portfolio had a net unrealized gain of $13.5 million at December 31, 2019 as compared to a net unrealized loss of $2.5 million at December 31, 2018.

The FTE average yield on all earning assets decreased 3 basis points in prior year quarterly comparison, from 4.93% for the fourth quarter of 2018 to 4.90% for the fourth quarter of 2019. Average interest expense increased 2 basis points from 1.09% for the fourth quarter of 2018 to 1.11% for the fourth quarter of 2019. Cost of all deposits averaged 73 basis points for the fourth quarter of 2019 compared to 68 basis points for the fourth quarter of 2018.

Fourth Quarter 2019 vs Third Quarter 2019 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2019 decreased $0.4 million to $11.9 million compared to $12.3 million for the third quarter of 2019. For the fourth quarter of 2019, fully diluted earnings per share were $0.64, compared to $0.71 for the third quarter of 2019.

Operating net earnings for the fourth quarter of 2019 compared to the third quarter of 2019 increased $0.4 million or 2.6% from $12.8 million to $13.2 million. Operating net earnings excludes the merger-related costs and the income discussed above. Fully diluted operating earnings per share for the fourth quarter of 2019 were $0.72 as compared to $0.74 for the third quarter of 2019.

Net interest income for the fourth quarter of 2019 was $33.4 million as compared to $30.5 million for the third quarter of 2019, an increase of $3.0 million. FTE net interest income increased $3.1 million to $33.8 million from $30.7 million in sequential-quarter comparison. Fourth quarter 2019 FTE net interest margin of 4.06% included 26 basis points related to purchase accounting adjustments compared to 4.05% for the third quarter in 2019, which included 19 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 6 basis points in sequential quarter comparison.

Investment securities totaled $791.8 million, or 20.1% of total assets at December 31, 2019, versus $640.8 million, or 18.4% of total assets at September 30, 2019. The average balance of investment securities increased $122.8 million in sequential-quarter comparison, primarily as a result of the acquisition of FFB. The average tax equivalent yield on investment securities decreased 18 basis points to 3.06% from 3.24% in sequential-quarter comparison. The investment portfolio had a net unrealized gain of $13.5 million at December 31, 2019 as compared to a net unrealized gain of $13.9 million at September 30, 2019.

The FTE average yield on all earning assets decreased in sequential-quarter comparison from 4.94% to 4.90%. Average interest expense decreased 6 basis points from 1.17% for the third quarter of 2019 to 1.11% for the fourth quarter of 2019. Cost of all deposits averaged 73 basis points for the fourth quarter of 2019 compared to 76 basis points for the third quarter of 2019.

Non-interest income increased $0.5 million in sequential-quarter comparison resulting from increased service charges on deposit accounts as well as income in the form of financial assistance grant from the U. S. Department of Treasury in the amount of $0.7 million offset partially by decreases in interchange fee income and other charges and fees.

Non-interest expense for the fourth quarter of 2019 was $25.0 million compared to $20.8 million for the third quarter of 2019. Excluding acquisition charges for each quarter, non-interest expense increased $2.5 million in sequential-quarter comparison, of which $1.3 million is attributable to the operations associated with FFB which was acquired in the fourth quarter.

Year-to-Date Earnings Comparison

In year-over-year comparison, net income available to common shareholders increased $22.5 million, or 106.1%, from $21.2 million for the twelve months ended December 31, 2018 to $43.7 million for the same period ended December 31, 2019. Operating net earnings increased $18.0 million or 59.9% from $30.0 million for the twelve months ended December 31, 2018 to $48.0 million for the same period ended December 31, 2019. Operating net earnings excludes merger-related costs of $4.9 million, net of tax, and financial assistance grants of $0.7 million, net of tax, for the year ended December 31, 2019, and merger-related costs of $10.6 million, net of tax, financial assistance grants of $1.6 million, net of tax, and gain on sale of securities of $0.3 million, net of tax, for the year ended December 31, 2018.

Net interest income increased $36.9 million in year-over-year comparison, primarily due to interest income earned on a higher volume of loans and securities.

Non-interest income was $26.9 million at December 31, 2019, an increase of $6.4 million in year-over-year comparison consisting of increases in service charges on deposit accounts, interchange fee income, mortgage income, as well as other charges and fees.

Non-interest expense was $88.6 million at December 31, 2019, an increase of $12.3 million in year-over-year comparison, of which $4.3 million is related to the operations of Southwest, Sunshine, FMB, FPB and FFB. The remaining increase of $8.0 million in expenses are related to increases in salaries and employee benefits of $3.7 million and increases in other expenses of $4.3 million.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.10 per share to be paid on its common stock on February 21, 2020 to shareholders of record as of the close of business on February 7, 2020.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. 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 operating net earnings, operating earnings per share, fully tax equivalent net interest income, total tangible common equity, tangible book value per common share 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 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 contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; and risks related to the proposed acquisition of SGB and the acquisitions of Southwest, Sunshine, FMB, FPB and FFB, including the risk that the proposed acquisition of SGB does not close when expected or at all because conditions to closing are not satisfied on a timely basis or at all, the terms of the proposed transactions with SGB need to be modified to satisfy such conditions, and that the anticipated benefits from the transactions with Southwest, Sunshine, FMB, FPB, FFB and SGB 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. 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 Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. 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.

 

FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited
)
(in thousands except per share data)

EARNINGS DATA

Quarter
Ended
12/31/19

Quarter
Ended
9/30/19

Quarter
Ended
6/30/19

Quarter
Ended
3/31/19

Quarter
Ended
12/31/18

Total Interest Income

$ 40,444

$ 37,241

$ 37,571

$ 33,273

$ 30,555

Total Interest Expense

7,000

6,782

6,799

6,142

5,285

Net Interest Income

33,444

30,459

30,772

27,131

25,270

FTE net interest income*

33,847

30,739

31,040

27,388

25,524

Provision for loan losses

850

974

791

1,123

574

Non-interest income

7,574

7,103

6,716

5,554

6,396

Non-interest expense

24,960

20,825

20,891

21,893

22,249

Earnings before income taxes

15,208

15,763

15,806

9,669

8,843

Income tax expense

3,353

3,491

3,823

2,034

1,982

Net income available to common shareholders

$ 11,855

$ 12,272

$ 11,983

$ 7,635

$ 6,861

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA

 

 

 

 

 

Basic earnings per share

$ 0.65

$ 0.72

$ 0.70

$ 0.49

$ 0.48

Diluted earnings per share

0.64

0.71

0.69

0.48

0.48

Diluted earnings per share, operating*

0.72

0.74

0.70

0.63

0.64

Quarterly dividends per share

.08

.08

.08

.07

.05

Book value per common share at end of period

28.91

27.92

27.22

26.30

24.49

Tangible book value per common share at period end*

18.87

19.39

18.72

17.79

16.88

Market price at end of period

35.52

32.30

30.34

30.90

30.91

Shares outstanding at period end

18,802,266

17,123,625

17,129,915

17,272,731

14,830,598

Weighted average shares outstanding:

 

 

 

 

 

Basic

18,241,244

17,131,080

17,182,049

15,646,476

14,247,555

Diluted

18,398,609

17,267,953

17,311,626

15,770,622

14,371,562

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

Total assets

$3,767,587

$3,439,202

$3,460,394

$3,181,761

$2,812,212

Loans and leases

2,512,524

2,343,392

2,337,583

2,167,495

1,959,179

Total deposits

2,963,603

2,765,816

2,862,653

2,599,842

2,296,966

Total common equity

518,070

470,024

454,965

390,217

328,250

Total tangible common equity*

346,742

324,619

308,303

262,553

222,402

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED RATIOS

 

 

 

 

 

Annualized return on avg assets

1.26%

1.43%

1.39%

0.96%

0.98%

Annualized return on avg assets, operating*

1.40%

1.49%

1.39%

1.25%

1.30%

Annualized return on avg common equity, operating*

10.16%

10.91%

10.60%

10.18%

11.14%

Annualized return on avg tangible common equity, oper*

15.18%

15.80%

15.64%

15.13%

16.44%

Average loans to average deposits

84.78%

84.73%

81.66%

83.37%

85.29%

FTE Net Interest Margin*

4.06%

4.05%

4.07%

3.89%

4.08%

Efficiency Ratio

60.26%

55.03%

55.33%

66.46%

69.69%

Efficiency Ratio, operating*

55.67%

53.17%

55.09%

57.21%

59.06%

 

 

 

 

 

 

 

 

 

News und Analysen

Behörde: Preise für Rufnummer-Mitnahme bei Anbieterwechsel zu hoch

BONN (dpa-AFX) - Wenn Kunden beim Wechsel ihres Mobilfunkanbieters die alte Handynummer mitnehmen wollen, bitten die Unternehmen sie dafür zur Kasse. Weil die Bundesnetzagentur diese Entgelte ...weiterlesen

Seite: 1 | 2 | 3 | 4 | 5 | 6 | ... | 12887

Im Fokus

Aktueller Chart
  • Was passiert 2020?
  • Allzeithoch bei 195,75 Euro!
  • Ist die Aktie jetzt noch ein Schnäppchen?

ETFs ja - aber bitte mit Risikoreduktion!

ETFs ja - aber bitte mit Risikoreduktion!
Mit der BOTSI®-Strategie wird über ETFs weltweit in rund 4000 Aktien aus den bedeutendsten vier Anlageregionen investiert. Wobei durch die einzigartige, völlig prognosefrei arbeitende Steuerung der Aktienquote, risikoreduzierte Aktienmarktrenditen ermöglicht werden.
© 1994-2020 by boerse.de - Quelle für Kurse und Daten: ARIVA.DE AG - boerse.de übernimmt keine Gewähr