HATTIESBURG, Miss.--(BUSINESS WIRE)-- The First Bancshares, Inc. (“FBMS” or “the Company”) (NYSE: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended September 30, 2024.
Highlights for the Quarter:
M. Ray “Hoppy” Cole, Jr., President and Chief Executive Officer, commented, "We were excited to announce our potential merger with Renasant Bank during the quarter. Together we create a high performing southeastern franchise with a simple community bank model, focused on building relationships and growing our business.
In addition to our merger announcement, the quarter was characterized by continued strong performance in terms of profitability and growth. Loans increased by 5.0% on an annualized basis, core operating earnings increased 2.7% quarter over quarter and our margin expanded six basis points.
We look forward to the opportunities that lie ahead and the value we hope to create for our shareholders through this strategic partnership with Renasant."
Quarterly Earnings
Net income available to common shareholders totaled $18.6 million for the quarter ended September 30, 2024, a decrease of $1.1 million, or 5.7%, when compared to $19.7 million for the quarter ended June 30, 2024.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $0.5 million, or 2.7%, to $20.5 million for quarter ended September 30, 2024 as compared to $20.0 million for the quarter ended June 30, 2024.
The Company recorded $1.0 million provision for credit losses for the quarter ended September 30, 2024 and $1.7 million provision for credit losses for the quarter ended June 30, 2024.
Earnings Per Share
For the third quarter of 2024, diluted earnings per share were $0.59 compared to $0.62 for the second quarter of 2024 and $0.77 for the third quarter of 2023.
Diluted earnings per share, operating (non-GAAP) were $0.65 for the third quarter of 2024 compared to $0.63 for the second quarter of 2024 and $0.76 for the third quarter of 2023.
Balance Sheet
Consolidated assets increased $0.7 million to $7.966 billion at September 30, 2024 from $7.966 billion at June 30, 2024. Loans increased $67.7 million, or 1.3%, for the quarterly comparison and deposits decreased $65.4 million, or 1.0% for the quarterly comparison.
Total loans were $5.319 billion for the quarter ended September 30, 2024, as compared to $5.251 billion for the quarter ended June 30, 2024, and $5.090 billion for the quarter ended September 30, 2023, representing an increase of $67.7 million, or 1.3%, for the sequential quarter comparison, and an increase of $228.8 million, or 4.5%, for the prior year quarterly comparison.
Total deposits were $6.561 billion for the quarter ended September 30, 2024, as compared to $6.626 billion for the quarter ended June 30, 2024, and $6.480 billion for the quarter ended September 30, 2023, representing a decrease of $65.4 million, or 1.0%, for the sequential quarter comparison, and an increase of $80.7 million, or 1.2%, for the prior year quarterly comparison. Excluding a decrease in public funds of $39.8 million, deposits decreased $25.6 million, or 0.4% for the sequential quarter comparison. Non-interest bearing deposits as a percentage of total deposits decreased to 27.4% for the quarter ended September 30, 2024 compared to 28.2% for June 30, 2024.
Asset Quality
Nonperforming assets totaled $25.1 million at September 30, 2024, an increase of $4.0 million compared to $21.1 million at June 30, 2024 and an increase of $2.7 million compared to $22.4 million at September 30, 2023.
Nonaccrual loans totaled $16.3 million, an increase of $2.7 million as compared to June 30, 2024 and a decrease of $1.1 million as compared to September 30, 2023.
The ratio of the allowance for credit losses (ACL) to total loans was 1.05% at September 30, 2024, 1.05% at June 30, 2024 and 1.05% at September 30, 2023. The ratio of annualized net charge-offs to total loans was 0.03% for the quarter ended September 30, 2024 compared to 0.04% for the quarter ended June 30, 2024 and 0.004% for the quarter ended September 30, 2023.
Third Quarter 2024 vs. Second Quarter 2024 Earnings Comparison
Net income available to common shareholders for the third quarter of 2024 decreased $1.1 million to $18.6 million compared to $19.7 million for the second quarter of 2024. The Company recorded a $1.0 million provision for credit losses for the quarter ended September 30, 2024 and $1.7 million for the quarter ended June 30, 2024.
Net interest income for the third quarter of 2024 was $59.0 million as compared to $57.8 million for the second quarter of 2024, an increase of $1.2 million. The increase was largely due to an increase in interest income on loans and partially offset by an increase in interest expense of $1.3 million.
Third quarter 2024 net interest margin of 3.33% included 11 basis points related to purchase accounting adjustments compared to 3.26% for the second quarter in 2024, which included 12 basis points related to purchase accounting adjustments.
Core net interest margin (non-GAAP) increased 7 basis points to 3.26% for the third quarter of 2024 from 3.19% for the second quarter of 2024.
Investment securities decreased $56.5 million to $1.715 billion, or 21.5% of total assets at September 30, 2024, compared to $1.771 billion, or 22.2% of total assets at June 30, 2024. The average balance of investment securities decreased $73.1 million in sequential-quarter comparison. The average yield on investment securities decreased 9 basis points to 2.56% from 2.65% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $91.6 million at September 30, 2024 as compared to a net unrealized loss of $129.0 million at June 30, 2024.
The average yield on all earning assets increased in sequential-quarter comparison from 5.14% to 5.27%. Interest expense on average interest bearing liabilities increased 10 basis points from 2.62% for the second quarter of 2024 to 2.72% for the third quarter of 2024.
Cost of all deposits averaged 183 basis points and 178 basis points for the third and second quarter of 2024, respectively.
Non-interest income decreased $1.1 million from $13.3 million in the second quarter of 2024 to $12.2 million in the third quarter of 2024, primarily attributable to a decrease in interchange fee income of $0.4 million and decrease of $0.7 million in other charges and fees.
Non-interest expense for the third quarter of 2024 was $46.4 million compared to $44.1 million for the second quarter of 2024, an increase of $2.3 million, attributable to expenses relating to the pending merger with Renasant.
Third Quarter 2024 vs. Third Quarter 2023 Earnings Comparison
Net income available to common shareholders for the third quarter of 2024 totaled $18.6 million compared to $24.4 million for the third quarter of 2023, a decrease of $5.8 million or 23.8%. This decrease is largely attributable to a decrease in a U.S. Treasury award of $6.2 million and a decrease in other non-interest expense of $5.2 million, offset by a decrease in net interest income of $1.7 million and increases in salaries and acquisition charges of $2.3 million and $2.0 million, respectively.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $3.5 million, or 14.7%, to $20.5 million for quarter ended September 30, 2024, as compared to $24.0 million for the quarter ended September 30, 2023. This decrease is largely attributable to a decrease in a U.S. Treasury award of $6.2 million and a decrease in other non-interest expense of $5.2 million, offset by a decrease in net interest income of $1.7 million and increases in salaries of $2.3 million.
Net interest income for the third quarter of 2024 was $59.0 million, a decrease of $1.7 million or 2.8% when compared to the third quarter of 2023. Fully tax equivalent (“FTE”) net interest income (non-GAAP) totaled $60.0 million and $61.7 million for the third quarter of 2024 and 2023, respectively. The decrease was largely due to a decrease in purchase accounting adjustments of $2.3 million for the third quarter comparisons.
Third quarter of 2024 net interest margin was 3.33%, which included 11 basis points related to purchase accounting adjustments compared to 3.47% for the same quarter in 2023, which included 25 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 11 basis points in prior year quarterly comparison primarily due to an increase in rates on loans, partially offset by a corresponding increase in rates on interest bearing liabilities.
Non-interest income decreased $7.1 million for the third quarter of 2024 as compared to the third quarter of 2023. A decrease in U.S. Treasury awards of $6.2 million accounted for a majority of the change.
Third quarter 2024 non-interest expense was $46.4 million, a decrease of $1.3 million, or 2.8% as compared to the third quarter of 2023. Excluding acquisition charges, non-interest expense decreased $3.3 million of which salaries and employee benefits increased $2.3 million offset by a decrease in other expenses of $5.2 million.
Investment securities totaled $1.715 billion, or 21.5% of total assets at September 30, 2024, compared to $1.836 billion, or 23.3% of total assets at September 30, 2023. For the third quarter of 2024 compared to the third quarter of 2023, the average balance of investment securities decreased $168.2 million. The average yield on investment securities increased 30 basis points to 2.56% from 2.26% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $91.6 million at September 30, 2024 as compared to a net unrealized loss of $184.9 million at September 30, 2023.
The average yield on all earning assets increased 37 basis points in prior year quarterly comparison, from 4.90% for the third quarter of 2023 to 5.27% for the third quarter of 2024. Interest expense on average interest bearing liabilities increased 67 basis points from 2.05% for the third quarter of 2023 to 2.72% for the third quarter of 2024.
Cost of all deposits averaged 183 basis points for the third quarter of 2024 compared to 121 basis points for the third quarter of 2023.
Year-to-Date Earnings Comparison
In the year-over-year comparison, net income available to common shareholders decreased $5.5 million, or 8.6%, from $64.4 million for the nine months ended September 30, 2023, to $58.9 million for the same period ended September 30, 2024.
Net interest income was $174.1 million for the nine months ended September 30, 2024, a decrease of $17.5 million as compared to the same period ended September 30, 2023, primarily due to an increase in interest expense on deposits partially offset by an increase in loan interest income.
Non-interest income was $38.2 million for the nine months ended September 30, 2024, a decrease of $6.1 million as compared to the same period ended September 30, 2023. A decrease in U.S. Treasury awards of $6.2 million accounted for the change.
Non-interest expense was $133.9 million for the nine months ended September 30, 2024, a decrease of $6.4 million as compared to the same period ended September 30, 2023. The decrease was primarily due to decreased acquisition charges of $5.5 million and other non-interest expense of $8.1 million, partially offset by an increase in salaries and employee benefits of $5.0 million.
Declaration of Cash Dividend
The Company announced that its Board of Directors declared a cash dividend of $0.25 per share to be paid on its common stock on November 22, 2024 to shareholders of record as of the close of business on November 8, 2024.
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 New York Stock Exchange 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. Fully-tax equivalent, or "FTE", financial metrics are measures used by management to evaluate the corresponding GAAP financial metrics in a manner that takes into account the tax benefits associated with income sources that are exempt from state or federal taxes. Core net interest margin is used by management to measure the net return on earnings assets, which includes investment securities, loans, and leases but excludes certain income and expense items that the Company's management considers to be non-core/adjusted in nature. Similarly, "operating" financial metrics, including operating efficiency ratio and operating earnings per share, are used by management to evaluate operating results exclusive of items that are not indicative of ongoing operations and impact period-to-period comparisons. Management uses "tangible" financial metrics, including tangible common equity and tangible book value, to measure the value of the Company's assets net of intangible assets, such as goodwill. 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 elevated 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, and risks related to the Merger, including the fluctuations of the market value of the consideration to be paid to the Company's shareholders in the Merger, the risks related to combining our businesses, expenses related to the Merger and integration of the combined entity, the risks that the Merger may not occur, and the risk of litigation related to the Merger; (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
9/30/24
6/30/24
3/31/24
12/31/23
9/30/23
Total Interest Income
$
93,561
91,027
91,663
88,720
85,681
Total Interest Expense
34,547
33,233
34,322
31,055
24,977
Net Interest Income
59,014
57,794
57,341
57,665
60,704
Net Interest Income excluding PPP Fee Income
59,010
57,793
57,340
57,664
60,703
FTE net interest income*
60,004
58,797
58,339
58,651
61,696
Provision for credit losses
1,000
1,650
—
1,250
Non-interest income
12,242
13,319
12,679
2,346
19,324
Non-interest expense
46,394
44,089
43,425
44,433
47,724
Earnings before income taxes
23,862
25,374
26,595
14,328
31,304
Income tax expense
5,291
5,677
5,967
3,281
6,944
Net income available to common shareholders
18,571
19,697
20,628
11,047
24,360
PER COMMON SHARE DATA
Basic earnings per share
0.59
0.62
0.66
0.35
0.78
Diluted earnings per share
0.65
0.77
Diluted earnings per share, operating*
0.63
0.76
Quarterly dividends per share
0.25
0.24
0.23
Book value per common share at end of period
32.11
30.83
30.45
30.22
28.57
Tangible book value per common share at period end*
21.50
20.15
19.70
19.35
17.62
Market price at end of period
32.13
25.98
25.95
29.33
26.97
Shares outstanding at period end
31,511,260
31,525,232
31,528,748
31,399,803
31,404,231
Weighted average shares outstanding:
Basic
31,516,823
31,527,592
31,475,254
31,401,612
31,405,439
Diluted
31,713,385
31,679,827
31,630,745
31,587,506
31,609,564
AVERAGE BALANCE SHEET DATA
Total assets
7,944,553
7,939,783
8,005,574
7,917,303
7,873,345
Loans and leases
5,288,321
5,202,006
5,158,071
5,145,228
5,038,928
Total deposits
6,560,761
6,625,500
6,599,287
6,440,774
6,466,141
Total common equity
975,359
963,445
952,708
901,530
905,070
Total tangible common equity*
639,891
625,586
612,470
558,889
560,071
SELECTED RATIOS
Annualized return on avg assets (ROA)
0.94
%
0.99
1.03
0.56
1.24
Annualized return on avg assets, operating*
1.01
0.95
1.22
Annualized pre-tax, pre-provision, operating*
1.38
1.33
1.31
1.62
Annualized return on avg common equity, operating*
8.41
8.29
8.66
8.32
10.63
Annualized return on avg tangible common equity, operating*
12.82
12.76
13.48
13.41
17.17
Average loans to average deposits
80.61
78.51
78.16
79.89
77.93
FTE Net Interest Margin*
3.38
3.32
3.26
3.33
3.52
Efficiency Ratio
64.22
61.14
61.15
72.84
58.90
Efficiency Ratio, operating*
60.63
60.65
62.00
56.06
*See reconciliation of non-GAAP financial measures
CREDIT QUALITY
Allowance for credit losses (ACL) as a % of total loans
1.05
Nonperforming assets to tangible equity + ACL
3.42
3.05
2.72
3.69
Nonperforming assets to total loans + OREO
0.47
0.40
0.36
0.39
0.44
Annualized QTD net charge-offs (recoveries) to total loans
0.033
0.036
0.006
0.061
0.004
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET
September 30,
2 024
June 30,
March 31,
December 31,
2 023
Assets
Cash and cash equivalents
214,135
207,606
339,964
355,147
197,632
Securities available for sale
1,060,014
1,124,462
1,088,568
1,042,365
1,141,971
Securities held to maturity
602,328
607,502
622,574
654,539
658,524
Other investments
52,386
39,293
34,094
37,754
35,872
Total investment securities
1,714,728
1,771,257
1,745,236
1,734,658
1,836,367
Loans held for sale
2,987
5,892
4,241
2,914
5,960
Total loans
5,318,590
5,250,893
5,139,952
5,170,042
5,089,800
Allowance for credit losses
(55,700
)
(55,133
(53,959
(54,032
(53,565
Loans, net
5,262,890
5,195,760
5,085,993
5,116,010
5,036,235
Premises and equipment
177,652
179,289
181,194
182,162
183,740
Other Real Estate Owned
7,314
6,356
6,743
8,320
4,920
Goodwill and other intangibles
334,178
336,561
338,946
341,332
343,869
Other assets
252,571
263,079
261,442
258,802
275,562
7,966,455
7,965,800
7,963,759
7,999,345
7,884,285
Liabilities and Shareholders’ Equity
Non-interest bearing deposits
1,796,746
1,870,305
1,836,952
1,849,013
1,967,661
Interest-bearing deposits
4,763,966
4,755,812
4,873,403
4,613,859
4,512,364
6,560,712
6,626,117
6,710,355
6,462,872
6,480,025
Borrowings
207,500
182,400
110,000
390,000
302,000
Subordinated debentures
123,645
123,558
123,472
123,386
128,300
Other liabilities
62,915
61,840
60,020
74,053
76,739
Total liabilities
6,954,772
6,993,915
7,003,847
7,050,311
6,987,064
Total shareholders’ equity
1,011,683
971,885
959,912
949,034
897,221
Total liabilities and shareholders’ equity
(in thousands except per share data)
EARNINGS STATEMENT
Three Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Interest Income:
Loans, including fees
80,123
76,269
76,172
74,357
70,349
Investment securities
10,989
11,833
11,248
10,803
10,614
Accretion of purchase accounting adjustments
2,008
2,067
2,627
3,235
4,277
Other interest income
441
858
1,616
325
Total interest income
Interest Expense:
Deposits
29,763
29,247
29,182
24,489
19,314
2,607
1,956
3,022
4,500
3,556
1,961
1,814
1,887
1,807
1,849
216
231
259
258
Total interest expense
Net interest income
Net interest income after provision for credit losses
58,014
56,144
56,415
59,704
Non-interest Income:
Service charges on deposit accounts
3,709
3,334
3,367
3,447
3,646
Mortgage Income
927
972
704
582
878
Interchange Fee Income
4,460
4,893
4,195
4,593
5,280
Gain (Loss) on securities, net
225
14
(48
(9,670
2
Treasury Awards
6,197
Loss on sale of premises and equipment
(344
163
(524
(104
Other charges and fees
3,265
3,943
4,461
3,918
3,425
Total non-interest income
Non-interest expense:
Salaries and employee benefits
25,131
25,045
24,508
23,717
22,807
Occupancy expense
5,659
5,490
5,714
5,688
5,343
FDIC/OCC premiums
973
1,020
1,008
1,263
1,158
Marketing
49
59
139
71
559
Amortization of core deposit intangibles
2,384
2,385
Other professional services
1,457
2,028
1,833
2,309
1,499
Acquisition and charter conversion charges
2,592
352
8
593
588
Other non-interest expense
8,149
7,710
7,830
8,407
13,385
Total non-interest expense
Diluted earnings per common share
Diluted earnings per common share, operating*
Year to Date
2024
2023
232,559
202,460
PPP loan fee income
5
210
34,070
33,136
6,702
14,279
2,915
2,128
276,251
252,213
88,192
46,110
7,585
7,779
5,662
6,163
Amortization of purchase accounting adjustments
663
501
102,102
60,553
174,149
191,660
2,650
13,250
171,499
178,410
10,410
10,728
2,603
2,284
13,548
14,321
Gain (loss) on securities, net
191
(46
(Loss) gain on sale of premises and equipment
(181
11,669
10,316
38,240
44,359
74,684
69,695
16,863
15,680
3,001
2,586
247
762
7,154
7,178
5,318
4,137
Acquisition & charter conversion charges
2,952
8,482
23,689
31,773
133,908
140,293
75,831
82,476
16,935
18,066
58,896
64,410
1.86
2.04
1.93
2.47
(Dollars in thousands)
COMPOSITION OF LOANS
Percent
o f Total
Commercial, financial and agricultural
716,391
13.5
710,808
737,511
765,422
753,120
14.8
Real estate – construction
625,521
11.8
639,931
633,804
629,660
633,682
12.4
Real estate – commercial
2,472,332
46.4
2,435,853
2,356,552
2,377,864
2,317,666
45.5
Real estate – residential
1,431,342
26.9
1,387,102
1,330,589
1,311,395
1,298,980
25.5
Lease Financing Receivable
1,915
1,749
1,794
1,292
1,548
Obligations of States & subdivisions
25,905
0.5
27,286
28,541
29,316
29,650
0.6
Consumer
45,184
0.8
48,164
51,161
55,094
55,154
1.1
0.1
5,321,577
100
5,256,785
5,144,193
5,172,957
5,095,760
100.0
COMPOSITION OF DEPOSITS
Non-interest bearing
27.4
30.4
NOW and other
2,002,693
30.5
2,075,566
2,135,343
1,914,792
1,962,383
30.3
Money Market/Savings
1,566,648
23.9
1,573,194
1,656,688
1,623,311
1,532,822
23.7
Time Deposits of less than $250,000
921,056
14.0
825,460
816,153
813,877
766,553
Time Deposits of $250,000 or more
273,569
4.2
281,591
265,219
261,879
250,606
3.8
Total Deposits
6,626,116
ASSET QUALITY DATA
Nonaccrual loans
16,284
13,553
10,961
10,691
17,423
Loans past due 90 days and over
1,455
1,174
687
1,163
53
Total nonperforming loans
17,739
14,727
11,648
11,854
17,476
Other real estate owned
Total nonperforming assets
25,053
21,083
18,391
20,174
22,396
Nonperforming assets to total assets
0.31
0.26
0.28
ACL to nonperforming loans
314.00
374.37
463.25
455.81
306.51
ACL to total loans
Qtr-to-date net charge-offs (recoveries)
433
476
73
783
Annualized QTD net chg-offs (recs) to loans
Yield
Analysis
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Tax
Avg
Equivalent
Yield/
Balance
interest
Rate
Taxable securities
1,269,082
8,064
2.54
1,328,780
8,868
2.67
1,342,644
8,303
1,375,695
7,892
2.29
1,419,343
7,685
2.17
Tax-exempt securities
445,376
3,915
458,752
3,968
3.46
468,432
3,944
3.37
446,348
3,897
3.49
463,329
3,921
3.39
1,714,458
11,979
2.79
1,787,532
12,836
2.87
1,811,076
12,247
2.70
1,822,043
11,789
2.59
1,882,672
11,606
Int bearing dep in other banks
92,122
1.92
99,290
189,785
3.41
70,193
1.85
79,448
2.22
Loans
82,131
6.21
78,336
6.02
78,798
6.11
77,592
6.03
74,626
5.92
Total interest earning assets
7,094,901
94,551
5.33
7,088,828
92,030
5.19
7,158,932
92,661
5.18
7,037,464
89,706
5.10
7,001,048
86,673
4.95
849,652
850,955
846,642
879,839
872,297
Interest-bearing liabilities:
4,740,726
29,979
2.53
4,795,120
29,463
2.46
4,803,277
29,412
2.45
4,533,386
24,748
2.18
4,459,869
19,572
1.76
Borrowed Funds
214,192
4.87
157,045
4.98
254,505
3,023
4.75
361,445
296,963
4.79
123,596
6.35
123,510
5.87
123,424
6.12
126,925
5.69
128,251
5.77
Total interest bearing liabilities
5,078,514
5,075,675
2.62
5,181,206
2.65
5,021,756
4,885,083
2.05
1,890,680
1,900,663
1,871,660
1,994,017
2,083,192
Shareholders' equity
Total liabilities and shareholders' equity
Net interest income (FTE)*
2.61
2.57
2.63
2.91
Net interest margin (FTE)*
Core net interest margin*
3.19
3.10
3.14
3.27
*See reconciliation for non-GAAP financial measures
Reconciliation of Non-GAAP Financial Measures (unaudited)
Per Common Share Data
Sept 30, 2024
Mar 31, 2024
Dec 31, 2023
Sept 30, 2023
Book value per common share
Effect of intangible assets per share
10.61
10.68
10.75
10.87
10.95
Tangible book value per common share
Effect of acquisition and charter conversion charges
0.08
0.01
0.02
Tax on acquisition and charter conversion charges
(0.02
(0.01
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
Loss on securities repositioning
Tax loss on securities repositioning
(0.08
Diluted earnings per share, operating
0.09
0.27
(0.07
Initial provision for acquired loans
0.34
Tax on initial provision for acquired loans
(0.09
(747
(2,146
Treasury awards
(6,197
1,568
Contributions/consulting/advertising related to Treasury awards
5,190
(1,313
10,727
(2,714
Net earnings available to common shareholders, operating
61,101
78,007
Average Balance Sheet Data
Total average assets
A
Total average earning assets
B
Common Equity
C
Less intangible assets
335,468
337,859
340,238
342,641
344,999
Total Tangible common equity
D
Net Interest Income Fully Tax Equivalent
E
Tax-exempt investment income
(2,925
(2,965
(2,946
(2,911
(2,929
Taxable investment income
F
Annualized Net Interest Margin
E/B
3.20
3.28
3.47
Annualized Net Interest Margin, Fully Tax Equivalent
F/B
Total Interest Income, Fully Tax Equivalent
R
G
Yield on Average Earning Assets
R/B
5.27
5.14
5.12
5.04
4.90
Yield on Average Earning Assets, Fully Tax Equivalent
G/B
Interest Income Investment Securities, Fully Tax Equivalent
Interest Income Investment Securities
S
Taxable investment Income
H
12,246
Average Investment Securities
I
Yield on Investment Securities
S/I
2.56
2.48
2.37
2.26
Yield on Investment Securities, Fully Tax Equivalent
H/I
Core Net Interest Margin
Net interest income (FTE)
Less purchase accounting adjustments
4,276
Net interest income, net of purchase accounting adj
J
57,996
56,730
55,712
55,416
57,420
Add average balance of loan valuation discount
20,306
22,341
24,675
27,573
31,269
Avg earning assets, excluding loan valuation discount
K
7,115,207
7,111,169
7,183,607
7,065,037
7,032,317
Core net interest margin
J/K
Operating Expense
Pre-tax non-operating expenses
(2,592
(352
(8
(594
(5,777
Adjusted Operating Expense
L
43,802
43,737
43,417
43,839
41,947
Operating Revenue
Net interest income, FTE
Pre-tax non-operating items
9,708
Adjusted Operating Revenue
M
72,246
72,116
71,018
70,705
74,823
Efficiency Ratio, operating
L/M
Return Ratios
N
(656
(89
(2
(150
(149
(2,457
O
20,507
19,960
20,634
18,741
24,047
Pre-Tax Pre-Provision Operating Earnings
P
Pre-Tax, Pre-Provision Operating Earnings
Q
27,454
27,376
26,603
25,879
31,885
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
Sept 30, 2024*
Common equity tier 1 (CET1) ratio
12.5
12.2
12.1
12.0
Leverage (Tier 1) ratio
10.3
10.0
9.7
9.6
Total risk based capital ratio
15.4
15.3
15.2
15.0
15.1
Tangible common equity ratio
8.9
8.3
8.1
7.9
7.3
*estimated
M. Ray “Hoppy” Cole Chief Executive Officer Dee Dee Lowery Chief Financial Officer (601) 268-8998