HATTIESBURG, Miss.--(BUSINESS WIRE)-- 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, 2022.
Highlights:
M. Ray “Hoppy” Cole, President and Chief Executive Officer, commented, “2022 was another exceptional year in the history of our Company. We continued to execute on our strategic vision of building a high performing southeastern community bank through a combination of acquisitive and organic growth.
We closed Beach Bank in August 2022 and Heritage Bank effective January 2023, these two acquisitions added approximately $2.3 billion in assets in Florida and Georgia. The acquisitions of Beach Bank and Heritage Southeast strengthened our presence in the Florida panhandle and South Georgia, as well as opened up new markets in Atlanta, Jacksonville and Tampa. In addition to the growth through acquisitions, we also recorded record organic net loan growth of $359.1 million or 12.3% of total loans and a 6.1% increase in net operating income available to common shareholders.
We believe we are well positioned given the strength of our balance sheet and quality of our earnings stream to continue to build substantial value for our shareholders.”
Quarterly Earnings
Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $2.5 million, or 12.5%, to $17.2 million for quarter ended December 31, 2022 as compared to $19.6 million for the quarter ended September 30, 2022. The decrease in net earnings available to common shareholders resulted in part from $1.5 million in nonaccrual interest income recapture recorded in the quarter ended September 30, 2022 and from expense of $0.7 million incurred in the quarter ended December 31, 2022 related to year end accruals for salaries and benefits.
The Company recorded a provision for loan losses of $0.7 million for the quarter ended December 31, 2022 and $4.3 million for the quarter ended September 30, 2022. The $4.3 million provision in respect of the quarter ended September 30, 2022 included $3.9 million for the CECL day 1 provision for loan losses attributable to the acquired Beach Bank loans.
Earnings Per Share
For the fourth quarter of 2022, fully diluted earnings per share were $0.67, compared to $0.61 for the third quarter of 2022 and $0.75 for the fourth quarter of 2021. The decrease in fully-diluted earnings per share when compared to the same quarter last year was primarily attributable to expenses associated with the acquisition of Beach Bank, and the pending acquisition of Heritage Bank as well as the additional shares issued for the acquisition of Beach Bank.
Fully diluted earnings per share, operating (non-GAAP) were $0.71 for the fourth quarter of 2022 compared to $0.85 for the third quarter of 2022 and $0.76 for the fourth quarter of 2021.
Effective August 1, 2022, the Company issued 3,498,936 shares of its common stock in conjunction with the closing of the acquisition of Beach Bank. Fully diluted earnings per share for the first and second quarters of 2022 were increased in part by the purchase by the Company of 600,000 shares of its common stock during the first quarter of 2022.
Balance Sheet
Consolidated assets increased $6.9 million to $6.462 billion at December 31, 2022 from $6.455 billion at September 30, 2022.
PPP loans at December 31, 2022 were $0.7 million, a decrease of $0.7 million from September 30, 2022, due to loan forgiveness under the PPP program.
Total loans were $3.774 billion for the quarter ended December 31, 2022, as compared to $3.719 billion for the quarter ended September 30, 2022, and $2.960 billion for the quarter ended December 31, 2021, representing an increase of $54.8 million, or 1.5%, for the sequential quarter comparison, and an increase of $814.6 million, or 27.5%, for the prior year quarterly comparison. During August 2022, loans totaling $496.0 million were acquired in the Beach Bank acquisition. PPP loans totaled $0.7 million for the quarter ended December 31, 2022, $1.4 million for the quarter ended September 30, 2022, and $41.1 million for the quarter ended December 31, 2021.
Excluding the PPP loans, total loans increased $55.5 million, or 1.5% as compared to the quarter ended September 30, 2022, or 6.0% on an annualized basis.
Excluding the PPP loans and acquired Beach Bank loans, total loans increased $359.1 million, or 12.3% compared to year-end December 31, 2021.
Total deposits were $5.494 billion for the quarter ended December 31, 2022, as compared to $5.551 billion for the quarter ended September 30, 2022, and $5.227 billion for the quarter ended December 31, 2021, representing a decrease of $56.9 million, or 1.0%, for the sequential quarter comparison, and an increase of $267.6 million, or 5.1%, for the prior year quarterly comparison. During August 2022, deposits totaling $406.9 million were acquired in the Beach Bank acquisition.
Book value per share increased to $26.92 at December 31, 2022 from $25.86 at September 30, 2022.
Tangible book value per share (non-GAAP) increased to $17.97 at December 31, 2022 from $16.93 at September 30, 2022. This increase was the result of the change in accumulated other comprehensive income as well as earnings net of dividends for the quarter. The balance in accumulated other comprehensive income improved $13.1 million to $149.0 million at December 31, 2022 from $162.0 million at September 30, 2022.
Asset Quality
Nonperforming assets totaled $17.7 million at December 31, 2022, a decrease of $9.0 million compared to $26.7 million at September 30, 2022 and a decrease of $12.9 million compared to $30.6 million at December 31, 2021.
Nonaccrual loans totaled $12.6 million, a decrease of $3.3 million as compared to September 30, 2022 and a decrease of $15.4 million as compared to December 31, 2021. During the quarter ended September 30, 2022, one large relationship with a balance of $10.2 million was upgraded to accrual status. This upgrade resulted in $1.5 million in interest income being recognized during the third quarter of 2022.
The ratio of the allowance for credit losses (ACL) to total loans was 1.03% at December 31, 2022, 1.03% at September 30, 2022 and 1.04% at December 31, 2021. The ratio of annualized net charge-offs (recoveries) to total loans was 0.004% for the quarter ended December 31, 2022 compared to (0.04%) for the quarter ended September 30, 2022 and 0.03% for the quarter ended December 31, 2021.
Fourth Quarter 2022 vs Third Quarter 2022 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2022 increased $2.3 million to $16.3 million compared to $14.0 million for the third quarter of 2022.
Net interest income for the fourth quarter of 2022 was $47.9 million as compared to $49.1 million for the third quarter of 2022, a decrease of $1.2 million. When adjusted for nonaccrual interest income recaptured during the third quarter of $1.5 million, net interest income actually increased $0.3 million in the quarterly comparison.
Fourth quarter 2022 FTE net interest margin (non-GAAP) of 3.37% included 8 basis points related to purchase accounting adjustments compared to 3.50% for the third quarter in 2022, which included 6 basis points related to purchase accounting adjustment as well as 10 bps related to the $1.5 million in nonaccrual interest income recapture.
Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $2.004 billion, or 31.0% of total assets at September 30, 2022. The average balance of investment securities decreased $114.6 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 8 basis point to 2.48% from 2.40% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized loss of $216.9 million at September 30, 2022.
The FTE average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 3.83% to 4.06%. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the third quarter of 2022 to 0.99% for the fourth quarter of 2022.
Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the third quarter of 2022. This increase was a result of rising interest rates and increased competition for deposits.
Non-interest income decreased $0.9 million from $9.0 million to $8.1 million in the sequential-quarter comparison, attributable to decreases in mortgage income of $0.6 million and interchange fee income of $0.2 million.
Non-interest expense for the fourth quarter of 2022 was $35.0 million compared to $35.9 million for the third quarter of 2022, a decrease of $0.9 million, largely attributed to the decrease in acquisition charges and charter conversion expenses of $2.5 million which was partially offset by $0.9 million in expenses related to the operations of Beach Bank.
Fourth Quarter 2022 vs. Fourth Quarter 2021 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2022 totaled $16.3 million compared to $15.8 million for the fourth quarter of 2021, an increase of $0.5 million or 3.2%.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.2 million, or 7.3%, to $17.2 million for quarter ended December 31, 2022 as compared to $16.0 million for the quarter ended December 31, 2021.
Net interest income for the fourth quarter of 2022 was $47.9 million, an increase of $8.2 million or 20.5% when compared to the fourth quarter of 2021. Fully tax equivalent (“FTE”) net interest income (non-GAAP) totaled $48.9 million and $40.4 million for the fourth quarter of 2022 and 2021, respectively. Purchase accounting adjustments increased $0.2 million for the fourth quarter comparisons.
Fourth quarter of 2022 FTE net interest margin (non-GAAP) was 3.37% which included 8 basis points related to purchase accounting adjustments compared to 3.14% for the same quarter in 2021, which included 7 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 22 basis point in prior year quarterly comparison primarily due to an increase in average loans and investment securities as well as interest rate increases.
Non-interest income decreased $1.5 million for the fourth quarter of 2022 as compared to the fourth quarter of 2021. This decrease was attributable to a $0.9 million decrease in mortgage income as well as a $1.3 million bargain purchase gain recorded in the fourth quarter of 2021.
Fourth quarter 2022 non-interest expense was $35.0 million, an increase of $4.3 million, or 13.8% as compared to the fourth quarter of 2021. For the fourth quarter of 2022, charges related to the ongoing operations of the Cadence Bank branches totaled $0.7 million and Beach Bank totaled $3.0 million.
Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $1.774 billion, or 29.2% of total assets at December 31, 2021. For the fourth quarter of 2022 compared to the fourth quarter of 2021, the average balance of investment securities increased $412.3 million. The average tax equivalent yield on investment securities (non-GAAP) increased 51 basis points to 2.48% from 1.97% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized gain of $10.7 million at December 31, 2021.
The FTE average yield on all earning assets (non-GAAP) increased 60 basis points in prior year quarterly comparison, from 3.46% for the fourth quarter of 2021 to 4.06% for the fourth quarter of 2022. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the fourth quarter of 2021 to 0.99% for the fourth quarter of 2022.
Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the fourth quarter of 2021. This increase was a result of rising interest rates and increased competition for deposits.
Year-over-Year Earnings Comparison
In the year-over-year comparison, net income available to common shareholders decreased $1.2 million, or 1.9%, from $64.2 million for the year ended December 31, 2021 to $62.9 million for the same period ended December 31, 2022. In the year-over-year comparison, PPP loan fee income decreased $9.8 million.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $3.9 million, or 6.1%, to $68.3 million for the year ended December 31, 2022 as compared to $64.4 million for the same period ended December 31, 2021.
Net interest income after provision for credit losses was $172.2 million for the twelve months ended December 31, 2022, an increase of $14.0 million as compared to the same period ended December 31, 2021, primarily due to interest income earned on a higher volume of loans and securities and increased interest rates.
Non-interest income was $37.0 million for the year ended December 31, 2022, a decrease of $0.5 million as compared to the same period ended December 31, 2021. Increased service charges on deposit accounts and interchange fee income of $2.5 million was offset by a decrease in mortgage income of $4.5 million.
Non-interest expense was $130.5 million for the year ended December 31, 2022, an increase of $15.9 million as compared to the same period ended December 31, 2021. An increase of $4.8 million in acquisition and charter conversion charges and $3.3 million related to the ongoing operations of the Cadence Bank branches and $5.1 million related to the Beach Bank branch operations accounted for the increase in non-interest expense.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.21 per share, a 5% increase over previous quarter, to be paid on its common stock on February 24, 2023 to shareholders of record as of the close of business on February 8, 2023.
Conference Call
The Company will host a conference call for analysts and investors to discuss the Company’s financial results at 9:30 a.m. Central Time on Thursday, January 26, 2023. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BI8f25f7d93b164314bb9ed2b26dcd36a1. 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, average tax equivalent 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, 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 earnings available to common shareholders, diluted earnings per share, efficiency ratio, 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 and pending 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) the effects of war or other conflicts including the impacts relating to or resulting from Russia’s military action in Ukraine; and (15) 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.
FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(Dollars in thousands except per share data)
EARNINGS DATA
Quarter Ended 12/31/22
Quarter Ended 9/30/22
Quarter Ended 6/30/22
Quarter Ended 3/31/22
Quarter Ended 12/31/21
Total Interest Income
$
57,923
53,874
45,847
42,741
43,885
Total Interest Expense
10,002
4,726
3,746
4,102
4,128
Net Interest Income
47,921
49,148
42,101
38,639
39,757
Net Interest Income excluding PPP Fee Income
47,899
48,986
41,563
37,643
37,151
FTE net interest income*
48,916
50,122
43,042
39,459
40,425
Provision for credit losses
705
4,300
600
-
(1,104
)
Non-interest income
8,131
9,022
8,664
11,157
9,593
Non-interest expense
35,040
35,903
30,955
28,590
30,789
Earnings before income taxes
20,307
17,967
19,210
21,206
19,665
Income tax expense
4,012
3,924
3,457
4,377
3,874
Net income available to common shareholders
16,295
14,043
15,753
16,829
15,791
PER COMMON SHARE DATA
Basic earnings per share
0.68
0.61
0.77
0.81
0.75
Diluted earnings per share
0.67
0.76
Diluted earnings per share, operating*
0.71
0.85
0.80
0.72
Quarterly dividends per share
.20
.19
.18
.17
.16
Book value per common share at end of period
26.92
25.86
27.30
28.82
32.17
Tangible book value per common share at period end*
17.97
16.93
18.32
19.79
23.31
Market price at end of period
32.01
29.87
28.60
33.66
38.62
Shares outstanding at period end
24,025,762
24,028,120
20,529,124
20,484,830
21,019,037
Weighted average shares outstanding:
Basic
24,027,189
22,861,795
20,507,451
20,697,946
21,020,768
Diluted
24,168,544
22,979,529
20,615,928
20,846,997
21,175,323
AVERAGE BALANCE SHEET DATA
Total assets
6,446,521
6,372,872
6,112,241
6,202,669
5,664,336
Loans and leases
3,749,561
3,492,110
3,013,228
2,945,877
2,956,657
Total deposits
5,515,713
5,503,040
5,347,415
5,361,480
4,814,945
Total common equity
617,049
630,744
593,410
666,561
672,121
Total tangible common equity*
408,365
424,873
408,855
480,922
500,639
SELECTED RATIOS
Annualized return on avg assets (ROA)
1.01
%
0.88
1.03
1.09
1.12
Annualized return on avg assets, operating*
1.07
1.23
1.08
0.97
1.13
Annualized pre-tax, pre-provision, operating*
1.38
1.63
1.36
1.24
1.33
Annualized return on avg common equity, operating*
11.14
12.46
11.12
8.99
9.53
Annualized return on avg tangible common equity, oper*
16.83
18.49
16.14
12.80
Average loans to average deposits
67.98
63.46
56.35
54.95
61.41
FTE Net Interest Margin*
3.37
3.50
3.09
2.78
3.14
Efficiency Ratio
61.42
60.70
59.87
56.48
61.56
Efficiency Ratio, operating*
59.34
54.55
57.66
58.37
59.91
*See reconciliation of Non-GAAP financial measures
CREDIT QUALITY
Allowance for credit losses (ACL) as a % of total loans
1.04
1.06
Nonperforming assets to tangible equity + ACL
3.76
6.01
6.41
6.31
5.88
Nonperforming assets to total loans + OREO
0.47
0.84
0.93
Annualized QTD net charge-offs (recoveries) to total loans
0.004
(0.04
%)
(0.12
0.03
(in thousands)
BALANCE SHEET
Dec 31, 2022
Sept 30, 2022
June 30, 2022
Mar 31, 2022
Dec 31, 2021
Assets
Cash and cash equivalents
145,315
163,841
356,771
802,613
919,713
Securities available for sale
1,257,101
1,379,410
1,489,247
1,591,677
1,751,832
Securities held to maturity
691,484
593,553
593,154
372,062
Other investments
33,944
31,060
22,588
22,226
Total investment securities
1,982,529
2,004,023
2,104,989
1,985,965
1,774,058
Loans held for sale
4,443
2,225
6,703
8,213
7,678
Total loans
3,774,157
3,719,388
3,124,924
2,970,246
2,959,553
Allowance for credit losses
(38,917
(38,356
(32,400
(31,620
(30,742
Loans, net
3,735,240
3,681,032
3,092,524
2,938,626
2,928,811
Premises and equipment
153,068
150,480
132,724
131,813
132,448
Other Real Estate Owned
4,832
10,328
1,985
2,835
2,565
Goodwill and other intangibles
214,890
214,708
184,323
185,104
186,171
Other assets
221,400
228,211
157,406
140,926
125,970
6,461,717
6,454,848
6,037,425
6,196,095
6,077,414
Liabilities and Shareholders’ Equity
Non-interest bearing deposits
1,630,203
1,770,848
1,658,288
1,648,451
1,550,381
Interest-bearing deposits
3,864,201
3,780,450
3,647,909
3,789,333
3,676,403
5,494,404
5,551,298
5,306,197
5,437,784
5,226,784
Borrowings
130,100
90,000
Subordinated debentures
145,027
144,952
144,876
144,801
144,726
Other liabilities
45,523
47,127
25,900
23,117
29,732
Total liabilities
5,815,054
5,833,377
5,476,973
5,605,655
5,401,242
Total shareholders’ equity
646,663
621,471
560,452
590,440
676,172
Total liabilities and shareholders’ equity
(in thousands except per share data)
EARNINGS STATEMENT
Three Months Ended
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Interest Income:
Loans, including fees
45,583
41,456
34,058
33,354
36,035
Investment securities
11,251
11,598
11,152
8,574
7,032
Accretion of purchase accounting adjustments
1,086
818
605
800
Other interest income
3
2
32
13
18
Total interest income
Interest Expense:
Deposits
7,206
2,863
1,923
2,302
2,371
1,015
92
1,946
1,886
1,841
1,819
1,818
(165
(115
(18
(19
(61
Total interest expense
Net interest income
Net interest income after provision for credit losses
47,216
44,848
41,501
40,861
Non-interest Income:
Service charges on deposit accounts
2,277
2,219
2,038
2,040
1,901
Mortgage Income
625
1,221
1,227
1,230
1,556
Interchange Fee Income
3,093
3,310
3,102
3,197
3,029
Gain (Loss) on securities, net
1
(80
(3
36
Financial Assistance Award/Bank Enterprise Award/RRP Grant
171
702
Bargain Purchase Gain and (Loss) on Sale of Land
165
1,300
BOLI income from death proceeds
1,630
Other charges and fees
2,136
2,271
2,041
2,361
1,771
Total non-interest income
Non-interest expense:
Salaries and employee benefits
19,934
19,099
17,237
16,799
17,519
Occupancy expense
4,305
3,826
3,828
3,876
3,948
FDIC/OCC premiums
514
496
546
566
550
Marketing
135
50
122
86
113
Amortization of core deposit intangibles
1,309
1,064
982
Other professional services
971
1,256
768
563
1,282
Acquisition and charter conversion charges
1,190
3,640
1,172
408
1,602
Other non-interest expense
6,682
6,309
6,218
5,228
4,793
Total Non-interest expense
Diluted earnings per common share
Diluted earnings per common share, operating*
Year to Date
2022
2021
152,741
135,780
PPP loan fee income
1,718
11,499
42,575
25,420
3,309
200,393
176,745
14,295
12,304
1,107
340
7,492
7,279
Amortization of purchase accounting adjustments
(317
(242
22,577
19,681
177,816
157,064
5,605
172,211
158,168
8,668
7,264
4,303
8,823
12,702
11,562
Gain (loss) on securities, net
(82
143
873
1,826
Bargain Purchase Gain and Loss on Sale of Fixed Assets
903
8,702
6,952
36,961
37,473
73,077
65,856
15,835
15,562
2,122
2,074
393
391
4,664
4,137
3,558
4,198
Acquisition & charter conversion charges
6,410
1,607
24,424
20,734
130,483
114,559
78,689
81,082
15,770
16,915
62,919
64,167
2.84
3.03
3.08
3.04
(Dollars in thousands)
COMPOSITION OF LOANS
Percent of Total
Commercial, financial and agricultural
506,907
13.4
489,225
379,363
364,702
375,379
12.7
Real estate – construction
475,956
12.6
481,100
429,946
387,290
364,075
12.3
Real estate – commercial
1,626,066
43.0
1,595,944
1,319,821
1,249,203
1,242,529
41.9
Real estate – residential
1,094,204
29.0
1,082,488
932,268
911,568
916,179
30.9
Lease Financing Receivable
2,118
0.1
1,907
2,283
2,409
2,556
Obligations of States & subdivisions
26,143
0.7
25,757
20,784
15,842
16,765
0.5
Consumer
42,763
1.1
42,967
40,459
39,233
42,070
1.4
0.2
3,778,600
100
3,721,613
3,131,627
2,978,460
2,967,231
COMPOSITION OF DEPOSITS
Non-interest bearing
29.7
NOW and other
1,769,699
32.2
1,786,213
1,790,980
1,885,145
1,771,510
33.9
Money Market/Savings
1,368,108
24.9
1,423,953
1,326,245
1,337,419
1,320,284
25.3
Time Deposits of less than $250,000
590,564
10.7
418,931
400,354
424,183
445,879
8.5
Time Deposits of $250,000 or more
135,830
2.5
151,353
130,330
142,539
138,730
2.6
Total Deposits
5,437,737
ASSET QUALITY DATA
Nonaccrual loans
12,591
15,844
23,678
24,736
28,013
Loans past due 90 days and over
289
571
527
45
Total nonperforming loans
12,880
16,415
24,205
28,058
Other real estate owned
2,834
Total nonperforming assets
17,712
26,743
26,190
27,570
30,623
Nonperforming assets to total assets
0.27
0.41
0.43
0.44
0.50
ACL to nonperforming loans
302.15
233.66
133.86
127.83
109.57
ACL to total loans
Qtr-to-date net charge-offs (recoveries)
39
(353
(329
(879
220
Annualized QTD net chg-offs (recs) to loans
1,522,953
8,312
2.18
1,612,066
8,723
2.16
1,634,679
8,372
2.05
1,413,523
6,152
1.74
1,166,432
5,059
1.73
453,651
3,934
3.47
479,168
3,849
3.21
492,405
3,721
3.02
483,780
3,242
2.68
397,906
2,641
2.65
1,976,604
12,246
2.48
2,091,234
12,572
2.40
2,127,084
12,093
2.27
1,897,303
9,394
1.98
1,564,338
7,700
1.97
72,910
0.02
143,867
0.01
432,851
825,877
634,541
46,670
4.98
42,274
4.84
34,663
4.60
34,154
4.64
36,835
5,799,075
58,919
4.06
5,727,211
54,848
3.83
5,573,163
46,788
3.36
5,669,057
43,561
3.07
5,155,536
44,553
3.46
647,446
645,661
539,078
533,612
508,800
3,801,632
7,042
0.74
3,777,059
2,748
0.29
3,706,711
1,905
0.21
3,786,808
0.24
3,330,603
2,310
0.28
108,881
3.73
13,261
0.00
144,985
5.37
144,910
5.21
144,834
5.08
144,759
5.03
144,684
4,055,498
0.99
3,935,230
0.48
3,851,545
0.39
3,931,567
0.42
3,475,287
1,773,974
1,806,898
1,667,286
1,604,541
1,516,928
48,917
3.35
2.97
2.66
2.98
3.29
3.44
2.73
Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)
Per Common Share Data
Book value per common share
Effect of intangible assets per share
8.95
8.93
8.98
9.03
8.86
Tangible book value per common share
Effect of acquisition and charter conversion charges
0.05
0.16
0.07
Tax on acquisition and charter conversion charges
(0.02
(0.05
(0.01
Initial provision for acquired loans
0.17
Tax on initial provision for acquired loans
Effect of bargain purchase gain and loss on sale of fixed assets
(0.06
Tax on bargain purchase gain and loss on sale of fixed assets
Effect of Treasury awards
(0.03
(0.08
Diluted earnings per share, operating
0.08
Tax on loss on sale of fixed assets
(0.09
Tax on Treasury awards
Effect on Contributions related to Treasury awards
Tax on Contributions related to Treasury awards
0.18
(1,621
(406
Bargain purchase gain and loss on sale of fixed assets
(903
42
229
Treasury awards
(872
(1,826
221
462
(1,630
Contributions related to Treasury awards
1,400
(42
(354
3,855
(976
Net earnings available to common shareholders, operating
68,306
64,376
Average Balance Sheet Data
Total average assets
A
Total average earning assets
B
Common Equity
C
Less intangible assets
208,684
205,871
184,555
185,639
171,482
Total Tangible common equity
D
Net Interest Income Fully Tax Equivalent
E
Tax-exempt investment income
(2,939
(2,875
(2,780
(2,422
(1,973
Taxable investment income
F
Annualized Net Interest Margin
E/B
3.31
3.43
Annualized Net Interest Margin, Fully Tax Equivalent
F/B
Total Interest Income, Fully Tax Equivalent
G
58,918
Yield on Average Earning Assets, Fully Tax Equivalent
G/B
Interest Income Investment Securities, Fully Tax Equivalent
Interest Income Investment Securities
Taxable investment Income
H
Average Investment Securities
I
Yield on Investment Securities, Fully Tax Equivalent
H/I
Core Net Interest Margin
Net interest income (FTE)
Less purchase accounting adjustments
861
Net interest income, net of purchase accounting adj
J
47,830
49,304
42,437
38,659
39,564
Add average balance of loan valuation discount
10,928
2,681
3,085
3,836
4,353
Avg earning assets, excluding loan valuation discount
K
5,810,003
5,729,892
5,576,248
5,672,893
5,159,889
Core net interest margin
J/K
Operating Expense
Total non-interest expense
Pre-tax non-operating expenses
(1,190
(3,641
(1,337
(408
(1,602
Adjusted Operating Expense
L
33,850
32,262
29,618
28,182
29,187
Operating Revenue
Net interest income, FTE
Pre-tax non-operating items
(336
(2,331
(1,300
Adjusted Operating Revenue
M
57,047
59,144
51,370
48,285
48,718
Efficiency Ratio, operating
L/M
56.91
Return Ratios
N
3,641
(301
(920
(296
(103
(405
41
329
(171
(702
43
178
Charitable contributions related to Treasury awards
Tax on charitable contributions related to Treasury awards
O
17,184
19,643
16,500
14,980
16,017
Pre-Tax Pre-Provision Operating Earnings
P
Provision for loan losses
Treasury Awards
Pre-Tax, Pre-Provision Operating Earnings
Q
22,202
25,908
20,811
19,282
18,863
Annualized return on avg assets
N/A
Annualized return on avg assets, oper
O/A
Annualized pre-tax, pre-provision, oper
Q/A
Annualized return on avg common equity, oper
O/C
Annualized return on avg tangible common equity, operating
O/D
Capital Ratios
Dec 31, 2022*
Common equity tier 1 (CET1) ratio
13.1
13.7
Leverage (Tier 1) ratio
9.4
9.3
8.6
8.2
9.2
Total risk based capital ratio
16.7
17.3
17.9
18.6
Tangible common equity ratio
6.9
6.5
6.4
6.7
8.3
*estimated
For additional information, contact: M. Ray “Hoppy” Cole Chief Executive Officer Dee Dee Lowery Chief Financial Officer (601) 268-8998