HATTIESBURG, Miss.--(BUSINESS WIRE)-- The First Bancshares, Inc. (“FBMS” or “the Company”) (NYSE: FBMS), holding company for The First Bank (“the Bank”), (www.thefirstbank.com) reported today financial results for the quarter ended December 31, 2024.
Highlights for the quarter:
Highlights for the year:
M. Ray “Hoppy” Cole, Jr., President, and Chief Executive Officer, commented, “We are pleased with our fourth quarter performance, which was characterized by strong loan growth, core net interest margin expansion and in line operating results. This performance is the result of the hard work and commitment of our associates in building a high performing southeastern bank franchise.
Two thousand twenty-four was a pivotal year in the history of our company with the announcement of the Merger. We are excited about this strategic partnership and the opportunities it presents for us to continue to build value for all our stakeholders.”
Quarterly Earnings
Net income available to common shareholders totaled $18.3 million for the quarter ended December 31, 2024, a decrease of $0.3 million, or 1.5%, when compared to $18.6 million for the quarter ended September 30, 2024.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $0.2 million, or 1.1%, to $20.3 million for quarter ended December 31, 2024 as compared to $20.5 million for the quarter ended September 30, 2024.
The Company recorded a provision for credit losses of $1.1 million for the quarter ended December 31, 2024 and $1.0 million for the quarter ended September 30, 2024.
Earnings Per Share
For the fourth quarter of 2024, diluted earnings per share were $0.58 compared to $0.59 for the third quarter of 2024 and $0.35 for the fourth quarter of 2023.
Diluted earnings per share, operating (non-GAAP) were $0.64 for the fourth quarter of 2024 compared to $0.65 for the third quarter of 2024 and $0.59 for the fourth quarter of 2023.
Balance Sheet
Consolidated assets increased $38.3 million to $8.005 billion at December 31, 2024 from $7.966 billion at September 30, 2024. Loans increased $88.6 million, and cash increased $6.3 million for the quarterly comparison.
Total loans were $5.407 billion for the quarter ended December 31, 2024, as compared to $5.319 billion for the quarter ended September 30, 2024, and $5.170 billion for the quarter ended December 31, 2023, representing an increase of $88.6 million, or 1.7%, for the sequential quarter comparison, and $237.2 million, or 4.6%, for the prior year quarterly comparison.
Total deposits were $6.605 billion for the quarter ended December 31, 2024, as compared to $6.561 billion for the quarter ended September 30, 2024, and $6.463 billion for the quarter ended December 31, 2023, representing an increase of $44.1 million, or 0.7%, for the sequential quarter comparison, and an increase of $142.0 million, or 2.2%, for the prior year quarterly comparison.
Book value per share decreased to $31.95 at December 31, 2024 from $32.11 at September 30, 2024.
Tangible book value per share (non-GAAP) decreased $0.09 to $21.41 at December 31, 2024 from $21.50 at September 30, 2024. The balance in accumulated other comprehensive loss increased $17.5 million to $109.6 million at December 31, 2024 from $92.1 million at September 30, 2024.
Asset Quality
Nonperforming assets totaled $29.9 million at December 31, 2024, an increase of $4.8 million compared to $25.1 million at September 30, 2024 and an increase of $9.7 million compared to $20.2 million at December 31, 2023.
Nonaccrual loans totaled $20.3 million, an increase of $4.1 million as compared to September 30, 2024 and an increase of $9.6 million as compared to December 31, 2023.
The ratio of the allowance for credit losses (ACL) to total loans was 1.04% at December 31, 2024, 1.05% at September 30, 2024 and 1.05% at December 31, 2023. The ratio of annualized net charge-offs (recoveries) to total loans was 0.04% for the quarter ended December 31, 2024 compared to 0.03% for the quarter ended September 30, 2024 and 0.06% for the quarter ended December 31, 2023.
Fourth Quarter 2024 vs Third Quarter 2024 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2024 decreased $0.3 million to $18.3 million compared to $18.6 million for the third quarter of 2024.
Net interest income for the fourth quarter of 2024 was $60.1 million as compared to $59.0 million for the third quarter of 2024, an increase of $1.1 million. The increase was largely due to the decrease in interest expense of $1.1 million.
Fourth quarter 2024 net interest margin of 3.37% included 9 basis points related to purchase accounting adjustments compared to 3.33% for the third quarter in 2024, which included 11 basis points related to purchase accounting adjustments.
Core net interest margin (non-GAAP) increased 7 basis points to 3.33% for the fourth quarter of 2024 from 3.26% for the third quarter of 2024.
Investment securities totaled $1.646 billion, or 20.6% of total assets at December 31, 2024, compared to $1.715 billion, or 21.5% of total assets at September 30, 2024. The average balance of investment securities decreased $21.4 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) decreased 4 basis points to 2.52% from 2.56% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $115.7 million at December 31, 2024 as compared to a net unrealized loss of $91.6 million at September 30, 2024.
The average yield on all earning assets (non-GAAP) decreased in sequential-quarter comparison from 5.27% to 5.25%. Interest expense on average interest bearing liabilities decreased 7 basis points from 2.72% for the third quarter of 2024 to 2.65% for the fourth quarter of 2024.
Cost of all deposits averaged 178 basis points for the fourth quarter of 2024 compared to 183 basis points for the third quarter of 2024. This decrease was a result of lower interest rates and decreased competition for deposits.
Non-interest income decreased $0.7 million from $12.2 million in the third quarter of 2024 to $11.5 million in the fourth quarter of 2024, primarily attributable to lower service charges, fees and a loss on investments totaling $1.1 million, partially offset by an award from U.S. Treasury of $0.3 million.
Non-interest expense for the fourth quarter of 2024 was $48.4 million compared to $46.4 million for the third quarter of 2024, an increase of $2.0 million. The increase is primarily attributable to an increase in salaries and employee benefits of $2.3 million and an increase in other expenses of $1.5 million, partially offset by a decrease in acquisition expense of $1.8 million. Included in the increase in salary expense is $1.9 million in accelerated vesting on restricted stock grants related to the merger.
Fourth Quarter 2024 vs. Fourth Quarter 2023 Earnings Comparison
Net income available to common shareholders for the fourth quarter of 2024 totaled $18.3 million compared to $11.0 million for the fourth quarter of 2023, an increase of $7.3 million or 65.6%. This increase was partially attributable to $6.4 million increase in loan interest and fees and the pre-tax loss of $9.7 million on the sale of $123.0 million in available-for-sale securities in 2023, partially offset by an increase in salary expense of $3.8 million, a decrease in the accretion of purchase accounting adjustments of $1.6 million and other one-time items detailed in the tables included with this press release.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.5 million, or 8.25%, to $20.3 million for the quarter ended December 31, 2024, as compared to $18.7 million for the quarter ended December 31, 2023.
Net interest income for the fourth quarter of 2024 was $60.1 million, an increase of $2.5 million or 4.3% when compared to the fourth quarter of 2023. FTE net interest income (non-GAAP) totaled $61.1 million and $58.7 million for the fourth quarter of 2024 and 2023, respectively. The increase was largely due to increased loan income, partially offset by a decrease in investment income and increase in the costs of deposits.
Fourth quarter of 2024 net interest margin was 3.37%, which included 9 basis points related to purchase accounting adjustments compared to 3.28% for the same quarter in 2023, which included 19 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 19 basis points in prior year quarterly comparison primarily due to a decrease in rates on interest bearing liabilities.
Non-interest income increased $9.2 million for the fourth quarter of 2024 as compared to the fourth quarter of 2023. This increase was attributed to the loss on sale of available for sale investment securities of $9.7 million in 2023.
Fourth quarter 2024 non-interest expense was $48.4 million, an increase of $3.9 million, or 8.9% as compared to the fourth quarter of 2023. This increase was primarily attributable to an increase of $3.8 million in salary expense with $1.9 million in accelerated vesting on restricted stock grants related to the Merger.
Investment securities totaled $1.646 billion, or 20.6% of total assets at December 31, 2024, compared to $1.735 billion, or 21.7% of total assets at December 31, 2023. For the fourth quarter of 2024 compared to the fourth quarter of 2023, the average balance of investment securities decreased $129.0 million. The average tax equivalent yield on investment securities (non-GAAP) increased 15 basis points to 2.52% from 2.37% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $115.7 million at December 31, 2024 as compared to a net unrealized loss of $121.9 million at December 31, 2023.
The average yield on all earning assets increased 21 basis points in prior year quarterly comparison, from 5.04% for the fourth quarter of 2023 to 5.25% for the fourth quarter of 2024. Interest expense on average interest bearing liabilities increased 18 basis points from 2.47% for the fourth quarter of 2023 to 2.65% for the fourth quarter of 2024.
Cost of all deposits averaged 178 basis points for the fourth quarter of 2024 compared to 154 basis points for the fourth quarter of 2023.
Year-to-Date Earnings Comparison
In the year-over-year comparison, net income available to common shareholders increased $1.7 million, or 2.3%, from $75.5 million for the year ended December 31, 2023, to $77.2 million for the same period ended December 31, 2024.
Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $15.4 million, or 15.9%, to $81.4 million for the year ended December 31, 2024 as compared to $96.7 million for the same period ended December 31, 2023.
Net interest income was $234.3 million for the twelve months ended December 31, 2024, a decrease of $15.1 million as compared to the same period ended December 31, 2023, primarily due to an increase in interest expense on deposits partially offset by an increase in loan interest income.
Non-interest income was $49.8 million for the year ended December 31, 2024, an increase of $3.1 million as compared to the same period ended December 31, 2023. This increase was attributed to the loss on sale of available for sale investment securities of $9.7 million in 2023, partially offset by the U.S. Treasury award of $6.2 million received in 2023.
Non-interest expense was $182.3 million for the year ended December 31, 2024, a decrease of $2.5 million as compared to the same period ended December 31, 2023. The decrease was partially attributable to $12.2 million decrease in acquisition and other expenses partially offset by an increase of $8.7 million in salary expense.
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 February 26, 2025 to shareholders of record as of the close of business on February 10, 2025.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank (“The First”). Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama, Florida, and Georgia. The Company’s stock is traded on the NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes pre-tax, pre-provision operating earnings, FTE net interest income, FTE net interest margin, core net interest margin, FTE average yield on investment securities, FTE average yield on all earning assets, total tangible common equity, tangible book value per common share, net earnings available to common shareholders, operating, diluted earnings per share, operating, efficiency ratio, operating and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. 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 changes in 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
12/31/24
9/30/24
6/30/24
3/31/24
12/31/23
Total Interest Income
$
93,584
93,561
91,027
91,663
88,720
Total Interest Expense
33,464
34,547
33,233
34,322
31,055
Net Interest Income
60,120
59,014
57,794
57,341
57,665
Net Interest Income excluding PPP Fee Income
59,010
57,793
57,340
57,664
FTE net interest income*
61,074
60,004
58,797
58,339
58,651
Provision for credit losses
1,140
1,000
1,650
—
1,250
Non-interest income
11,522
12,242
13,319
12,679
2,346
Non-interest expense
48,368
46,394
44,089
43,425
44,433
Earnings before income taxes
22,134
23,862
25,374
26,595
14,328
Income tax expense
3,836
5,291
5,677
5,967
3,281
Net income available to common shareholders
18,298
18,571
19,697
20,628
11,047
PER COMMON SHARE DATA
Basic earnings per share
0.58
0.59
0.62
0.66
0.35
Diluted earnings per share
0.65
Diluted earnings per share, operating*
0.64
0.63
Quarterly dividends per share
0.25
0.24
Book value per common share at end of period
31.95
32.11
30.83
30.45
30.22
Tangible book value per common share at period end*
21.41
21.50
20.15
19.70
19.35
Market price at end of period
35.00
32.13
25.98
25.95
29.33
Shares outstanding at period end
31,470,782
31,511,260
31,525,232
31,528,748
31,399,803
Weighted average shares outstanding:
Basic
31,501,398
31,516,823
31,527,592
31,475,254
31,401,612
Diluted
31,658,617
31,713,385
31,679,827
31,630,745
31,587,506
AVERAGE BALANCE SHEET DATA
Total assets
7,958,881
7,944,553
7,939,783
8,005,574
7,917,303
Loans and leases
5,350,549
5,288,321
5,202,006
5,158,071
5,145,228
Total deposits
6,512,395
6,560,761
6,625,500
6,599,287
6,440,774
Total common equity
1,014,793
975,359
963,445
952,708
901,530
Total tangible common equity*
681,706
639,891
625,586
612,470
558,889
SELECTED RATIOS
Annualized return on avg assets (ROA)
0.92
%
0.94
0.99
1.03
0.56
Annualized return on avg assets, operating*
1.02
1.01
0.95
Annualized pre-tax, pre-provision, operating*
1.30
1.38
1.33
1.31
Annualized return on avg common equity, operating*
8.00
8.41
8.29
8.66
8.32
Annualized return on avg tangible common equity, operating*
11.90
12.82
12.76
13.48
13.41
Average loans to average deposits
82.16
80.61
78.51
78.16
79.89
FTE Net Interest Margin*
3.43
3.38
3.32
3.26
3.33
Efficiency Ratio
66.63
64.22
61.14
61.15
72.84
Efficiency Ratio, operating*
62.84
60.63
60.65
62.00
*See reconciliation of Non-GAAP financial measures
CREDIT QUALITY
Allowance for credit losses (ACL) as a % of total loans
1.04
1.05
Nonperforming assets to tangible equity + ACL
4.09
3.42
3.05
2.72
Nonperforming assets to total loans + OREO
0.55
0.47
0.40
0.36
0.39
Annualized QTD net charge-offs (recoveries) to total loans
0.045
0.033
0.036
0.006
0.061
Condensed Consolidated Financial Information (unaudited)
(in thousands)
BALANCE SHEET
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
220,411
214,135
207,606
339,964
355,147
Securities available for sale
1,003,303
1,060,014
1,118,861
1,085,517
1,039,322
Securities held to maturity
582,939
602,328
607,502
622,574
654,539
Equity securities
15,684
8,383
5,601
3,051
3,043
Other investments
44,168
44,003
39,293
34,094
37,754
Total investment securities
1,646,094
1,714,728
1,771,257
1,745,236
1,734,658
Loans held for sale
3,687
2,987
5,892
4,241
2,914
Total loans
5,407,231
5,318,590
5,250,893
5,139,952
5,170,042
Allowance for credit losses
(56,205
)
(55,700
(55,133
(53,959
(54,032
Loans, net
5,351,026
5,262,890
5,195,760
5,085,993
5,116,010
Premises and equipment
176,900
177,652
179,289
181,194
182,162
Other Real Estate Owned
7,874
7,314
6,356
6,743
8,320
Goodwill and other intangibles
331,798
334,178
336,561
338,946
341,332
Other assets
266,988
252,571
263,079
261,442
258,802
8,004,778
7,966,455
7,965,800
7,963,759
7,999,345
Liabilities and Shareholders’ Equity
Non-interest bearing deposits
1,796,685
1,796,746
1,870,305
1,836,952
1,849,013
Interest-bearing deposits
4,808,171
4,763,966
4,755,812
4,873,403
4,613,859
6,604,856
6,560,712
6,626,117
6,710,355
6,462,872
Borrowings
210,000
207,500
182,400
110,000
390,000
Subordinated debentures
123,731
123,645
123,558
123,472
123,386
Other liabilities
60,760
62,915
61,840
60,020
74,053
Total liabilities
6,999,347
6,954,772
6,993,915
7,003,847
7,050,311
Total shareholders’ equity
1,005,431
1,011,683
971,885
959,912
949,034
Total liabilities and shareholders’ equity
(in thousands except per share data)
EARNINGS STATEMENT
Three Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Interest Income:
Loans, including fees
80,790
80,123
76,269
76,172
74,357
Investment securities
10,656
10,989
11,833
11,248
10,803
Accretion of purchase accounting adjustments
1,609
2,008
2,067
2,627
3,235
Other interest income
529
441
858
1,616
325
Total interest income
Interest Expense:
Deposits
28,850
29,763
29,247
29,182
24,489
2,695
2,607
1,956
3,022
4,500
1,774
1,961
1,814
1,887
1,807
145
216
231
259
Total interest expense
Net interest income
Net interest income after provision for credit losses
58,980
58,014
56,144
56,415
Non-interest Income:
Service charges on deposit accounts
3,495
3,709
3,334
3,367
3,447
Mortgage Income
751
927
972
704
582
Interchange Fee Income
4,366
4,460
4,893
4,195
4,593
Gain (Loss) on securities, net
(300
225
14
(48
(9,670
Treasury Awards
280
Loss on sale of premises and equipment
(2
(344
163
(524
Other charges and fees
2,932
3,265
3,943
4,461
3,918
Total non-interest income
Non-interest Expense:
Salaries and employee benefits
27,469
25,131
25,045
24,508
23,717
Occupancy expense
5,992
5,659
5,490
5,714
5,688
FDIC/OCC premiums
1,014
973
1,020
1,008
1,263
Marketing
198
49
59
139
71
Amortization of core deposit intangibles
2,380
2,384
2,385
Other professional services
890
1,457
2,028
1,833
2,309
Acquisition and charter conversion charges
788
2,592
352
8
593
Other non-interest expense
9,637
8,149
7,710
7,830
8,407
Total non-interest expense
Diluted earnings per common share
Diluted earnings per common share, operating*
Year to Date
2024
2023
313,349
276,817
PPP loan fee income
5
210
44,726
43,939
8,311
17,514
3,444
2,453
369,835
340,933
117,042
70,599
10,280
12,279
7,436
7,970
Amortization of purchase accounting adjustments
808
760
135,566
91,608
234,269
249,325
3,790
14,500
230,479
234,825
13,905
14,175
3,354
2,866
17,914
18,914
(Loss) gain on securities, net
(109
(9,716
6,197
(Loss) gain on sale of premises and equipment
(183
14,601
14,269
49,762
46,705
Non-interest expense:
102,153
93,412
22,855
21,368
4,015
3,849
445
833
9,534
9,563
6,208
6,446
Acquisition & charter conversion charges
3,740
9,075
33,326
40,180
Total Non-interest expense
182,276
184,726
97,965
96,804
20,771
21,347
77,194
75,457
2.44
2.39
2.57
3.06
(Dollars in thousands)
COMPOSITION OF LOANS
Percent
of Total
Commercial, financial and agricultural
709,996
13.1
716,391
710,808
737,511
765,422
14.8
Real estate – construction
592,304
10.9
625,521
639,931
633,804
629,660
12.2
Real estate – commercial
2,554,154
47.2
2,472,332
2,435,853
2,356,552
2,377,864
45.8
Real estate – residential
1,481,090
27.4
1,431,342
1,387,102
1,330,589
1,311,395
25.4
Lease Financing Receivable
2,231
1,915
1,749
1,794
1,292
Obligations of States & subdivisions
25,373
0.5
25,905
27,286
28,541
29,316
0.6
Consumer
42,083
0.8
45,184
48,164
51,161
55,094
1.1
0.1
5,410,918
100
5,321,577
5,256,785
5,144,193
5,172,957
100.0
COMPOSITION OF DEPOSITS
Non-interest bearing
27.2
28.6
NOW and other
1,963,776
29.7
2,002,693
2,075,566
2,135,343
1,914,792
29.6
Money Market/Savings
1,542,787
23.4
1,566,648
1,573,194
1,656,688
1,623,311
25.1
Time Deposits of less than $250,000
1,016,207
15.4
921,056
825,460
816,153
813,877
12.6
Time Deposits of $250,000 or more
285,401
4.3
273,569
281,591
265,219
261,879
4.1
Total Deposits
6,626,116
ASSET QUALITY DATA
Nonaccrual loans
20,338
16,284
13,553
10,961
10,691
Loans past due 90 days and over
1,641
1,455
1,174
687
1,163
Total nonperforming loans
21,979
17,739
14,727
11,648
11,854
Other real estate owned
Total nonperforming assets
29,853
25,053
21,083
18,391
20,174
Nonperforming assets to total assets
0.37
0.31
0.26
0.23
ACL to nonperforming loans
255.72
314.00
374.37
463.25
455.81
ACL to total loans
Qtr-to-date net charge-offs (recoveries)
603
433
476
73
783
Annualized QTD net chg-offs (recs) to loans
Yield
Analysis
Tax
Avg
Equivalent
Yield/
Balance
interest
Rate
Taxable securities
1,246,303
7,765
2.49
1,269,082
8,064
2.54
1,328,780
8,868
2.67
1,342,644
8,303
2.47
1,375,695
7,892
2.29
Tax-exempt securities
446,768
3,845
3.44
445,376
3,915
3.52
458,752
3,968
3.46
468,432
3,944
3.37
446,348
3,897
3.49
1,693,071
11,610
2.74
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
Int bearing dep in other banks
85,240
528
2.48
92,122
1.92
99,290
189,785
3.41
70,193
1.85
Loans
82,400
6.16
82,131
6.21
78,336
6.02
78,798
6.11
77,592
6.03
Total interest earning assets
7,128,860
94,538
5.30
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
830,021
849,652
850,955
846,642
879,839
Interest-bearing liabilities:
4,696,337
28,994
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
Borrowed Funds
237,435
4.54
214,192
4.87
157,045
4.98
254,505
3,023
4.75
361,445
123,682
5.74
123,596
6.35
123,510
5.87
123,424
6.12
126,925
5.69
Total interest bearing
liabilities
5,057,454
2.65
5,078,514
5,075,675
2.62
5,181,206
5,021,756
1,886,634
1,890,680
1,900,663
1,871,660
1,994,017
Shareholders' equity
Total liabilities and
shareholders' equity
Net interest
income (FTE)*
2.66
2.61
2.63
Net interest margin (FTE)*
Core net interest margin*
3.19
3.10
3.14
*See reconciliation for Non-GAAP financial measures
Reconciliation of Non-GAAP Financial Measures (unaudited)
Per Common Share Data
Dec 31, 2024
Sept 30, 2024
Mar 31, 2024
Dec 31, 2023
Book value per common share
Effect of intangible assets per share
10.54
10.61
10.68
10.75
10.87
Tangible book value per common share
Effect of acquisition and charter conversion charges
0.02
0.08
0.01
Tax on acquisition and charter conversion charges
(0.01
(0.02
Effect of Treasury awards
Tax on Treasury awards
Effect on contributions/consulting/advertising related to Treasury awards
Tax on contributions/consulting/advertising related to Treasury awards
Loss on securities repositioning
Tax loss on securities repositioning
(0.08
Restricted stock grant early vesting
0.06
Tax on restricted stock grant early vesting
Diluted earnings per share, operating
0.12
0.28
(0.03
(0.07
(0.20
0.05
0.17
(0.04
Initial provision for acquired loans
0.34
Tax on initial provision for acquired loans
(0.09
(942
(2,296
Treasury awards
(280
(6,197
69
1,568
Contributions/consulting/advertising related to Treasury awards
255
5,190
(63
(1,313
10,727
(2,714
9,708
(2,457
1,882
(467
Net earnings available to common shareholders, operating
81,388
96,748
Average Balance Sheet Data
Total average assets
A
Total average earning assets
B
Common Equity
C
Less intangible assets
333,087
335,468
337,859
340,238
342,641
Total Tangible common equity
D
Net Interest Income Fully Tax Equivalent
E
Tax-exempt investment income
(2,891
(2,925
(2,965
(2,946
(2,911
Taxable investment income
F
Annualized Net Interest Margin
E/B
3.20
3.28
Annualized Net Interest Margin, Fully Tax Equivalent
F/B
Total Interest Income, Fully Tax Equivalent
R
G
Yield on Average Earning Assets
R/B
5.25
5.27
5.14
5.12
5.04
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
2.52
2.56
2.37
Yield on Investment Securities, Fully Tax Equivalent
H/I
Core Net Interest Margin
Net interest income (FTE)
Less purchase accounting adjustments
Net interest income, net of purchase accounting adj
J
59,465
57,996
56,730
55,712
55,416
Add average balance of loan valuation discount
18,566
20,306
22,341
24,675
27,573
Avg earning assets, excluding loan valuation discount
K
7,147,426
7,115,207
7,111,169
7,183,607
7,065,037
Core net interest margin
J/K
Operating Expense
Pre-tax non-operating expenses
(2,592
(352
(8
(594
Adjusted Operating Expense
L
45,443
43,802
43,737
43,417
43,839
Operating Revenue
Net interest income, FTE
Pre-tax non-operating items
Adjusted Operating Revenue
M
72,316
72,246
72,116
71,018
70,705
Efficiency Ratio, operating
L/M
Return Ratios
N
(195
(656
(89
(150
O
20,287
20,507
19,960
20,634
18,741
Pre-Tax Pre-Provision Operating Earnings
P
Pre-Tax, Pre-Provision Operating Earnings
Q
25,919
27,454
27,376
26,603
25,879
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, 2024*
Common equity tier 1 (CET1) ratio
14.5
12.5
12.4
12.1
Leverage (Tier 1) ratio
11.6
10.3
10.0
9.7
Total risk based capital ratio
15.3
15.2
15.0
Tangible common equity ratio
8.8
8.9
8.3
8.1
7.9
*estimated
M. Ray “Hoppy” Cole Chief Executive Officer Dee Dee Lowery Chief Financial Officer (601) 268-8998