The First Bancshares, Inc. Reports Results for Fourth Quarter ended December 31, 2022; Increases Quarterly Dividend 5%

Rhea-AI Summary

The First Bancshares, Inc. (FBMS) reported financial results for Q4 2022, highlighting a net income of $16.3 million, a 16.0% increase from Q3 2022. However, year-over-year net income available to common shareholders decreased by 1.9% to $62.9 million. Notably, the company completed its acquisition of Heritage Southeast Bancorporation on January 1, 2023, adding approximately $1.6 billion in assets. A cash dividend of $0.21 per share was declared, a 5% increase from the previous quarter, to be paid on February 24, 2023. The total loans increased by 1.5% sequentially, with nonperforming assets dropping significantly.

Positive

• Net income increased by 16.0% from Q3 2022 to $16.3 million.
• Acquisition of Heritage Southeast Bancorporation adds $1.6 billion in assets.
• Declared a cash dividend of $0.21 per share, a 5% increase.

Negative

• Year-over-year net income available to common shareholders decreased by 1.9% to $62.9 million.
• PPP loan fee income decreased by $9.8 million compared to the prior year.
• Non-interest income decreased by $0.5 million year-over-year.

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:

• Effective January 1, 2023, the Company closed its acquisition of Heritage Southeast Bancorporation, Inc., parent company of Heritage Southeast Bank (“Heritage Bank”) based in Jonesboro, Georgia. Heritage Bank will increase the Company’s presence in Southern Georgia as well as provide entry into the fast growing markets of Atlanta and Savannah, Georgia and Jacksonville, Florida. Heritage Bank will add approximately $1.6 billion of assets and twenty four locations. Systems conversion is scheduled for the end of the first quarter of 2023.
• During the quarter, the Company completed the systems conversion related to the acquisition of Beach Bancorp, Inc., parent of Beach Bank (together with Beach Bancorp, Inc., “Beach Bank”)
• Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, representing an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022.
• 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. Over that same period, Paycheck Protection Program (“PPP”) loan fees 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.
• Total loans, excluding PPP loans, increased 1.5% for the quarter representing net growth of $55.5 million, or 6.0% on an annualized basis, as compared to the quarter ended September 30, 2022.
• Net Interest Margin FTE increased 23 bps to 3.37% for the quarter ended December 31, 2022 from 3.14% for the quarter ended December 31, 2021.
• Total nonperforming assets decreased $12.9 million to $17.7 million at December 31, 2022 from $30.6 million at December 31, 2021.

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.

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.

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			0.61			0.76			0.81			0.75
Diluted earnings per share, operating*		0.71			0.85			0.80			0.72			0.76
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	%		12.46	%		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		1.03	%		1.03	%		1.04	%		1.06	%		1.04	%
Nonperforming assets to tangible equity + ACL		3.76	%		6.01	%		6.41	%		6.31	%		5.88	%
Nonperforming assets to total loans + OREO		0.47	%		0.72	%		0.84	%		0.93	%		1.03	%
Annualized QTD net charge-offs (recoveries) to total loans		0.004	%		(0.04	%)		(0.04	%)		(0.12	%)		0.03	%

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (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			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
Total assets	$	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
Total deposits		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	$	6,461,717		$	6,454,848		$	6,037,425		$	6,196,095		$	6,077,414

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (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			800
Other interest income		3			2			32			13			18
Total interest income		57,923			53,874			45,847			42,741			43,885
Interest Expense:
Deposits		7,206			2,863			1,923			2,302			2,371
Borrowings		1,015			92			-			-			-
Subordinated debentures		1,946			1,886			1,841			1,819			1,818
Accretion of purchase accounting adjustments		(165	)		(115	)		(18	)		(19	)		(61	)
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
Provision for credit losses		705			4,300			600			-			(1,104	)
Net interest income after provision for credit losses		47,216			44,848			41,501			38,639			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		8,131			9,022			8,664			11,157			9,593
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			1,227			1,064			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		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
Diluted earnings per common share	$	0.67		$	0.61		$	0.76		$	0.81		$	0.75
Diluted earnings per common share, operating*	$	0.71		$	0.85		$	0.80		$	0.72		$	0.76
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS STATEMENT	Year to Date
			2022				2021
Interest Income:
Loans, including fees		$	152,741			$	135,780
PPP loan fee income			1,718				11,499
Investment securities			42,575				25,420
Accretion of purchase accounting adjustments			3,309				3,924
Other interest income			50				122
Total interest income			200,393				176,745
Interest Expense:
Deposits			14,295				12,304
Borrowings			1,107				340
Subordinated debentures			7,492				7,279
Amortization of purchase accounting adjustments			(317	)			(242	)
Total interest expense			22,577				19,681
Net interest income			177,816				157,064
Provision for credit losses			5,605				(1,104	)
Net interest income after provision for credit losses			172,211				158,168
Non-interest Income:
Service charges on deposit accounts			8,668				7,264
Mortgage Income			4,303				8,823
Interchange Fee Income			12,702				11,562
Gain (loss) on securities, net			(82	)			143
Financial Assistance Award/Bank Enterprise Award/RRP Grant			873				1,826
Bargain Purchase Gain and Loss on Sale of Fixed Assets			165				903
BOLI income from death proceeds			1,630				-
Other charges and fees			8,702				6,952
Total non-interest income			36,961				37,473
Non-interest expense:
Salaries and employee benefits			73,077				65,856
Occupancy expense			15,835				15,562
FDIC/OCC premiums			2,122				2,074
Marketing			393				391
Amortization of core deposit intangibles			4,664				4,137
Other professional services			3,558				4,198
Acquisition & charter conversion charges			6,410				1,607
Other non-interest expense			24,424				20,734
Total Non-interest expense			130,483				114,559
Earnings before income taxes			78,689				81,082
Income tax expense			15,770				16,915
Net income available to common shareholders		$	62,919			$	64,167
Diluted earnings per common share		$	2.84			$	3.03
Diluted earnings per common share, operating*		$	3.08			$	3.04
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (Dollars in thousands)
COMPOSITION OF LOANS	Dec 31, 2022			Percent of Total		Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021			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		0.1	%
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	%
Loans held for sale		4,443		0.1	%		2,225			6,703			8,213			7,678		0.2	%
Total loans	$	3,778,600		100	%	$	3,721,613		$	3,131,627		$	2,978,460		$	2,967,231		100	%
COMPOSITION OF DEPOSITS	Dec 31, 2022			Percent of Total		Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021			Percent of Total
Non-interest bearing	$	1,630,203		29.7	%	$	1,770,848		$	1,658,288		$	1,648,451		$	1,550,381		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	$	5,494,404		100	%	$	5,551,298		$	5,306,197		$	5,437,737		$	5,226,784		100	%
ASSET QUALITY DATA	Dec 31, 2022					Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
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			24,736			28,058
Other real estate owned		4,832					10,328			1,985			2,834			2,565
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	%
Nonperforming assets to total loans + OREO		0.47	%				0.72	%		0.84	%		0.93	%		1.03	%
ACL to nonperforming loans		302.15	%				233.66	%		133.86	%		127.83	%		109.57	%
ACL to total loans		1.03	%				1.03	%		1.04	%		1.06	%		1.04	%
Qtr-to-date net charge-offs (recoveries)	$	39				$	(353	)	$	(329	)	$	(879	)	$	220
Annualized QTD net chg-offs (recs) to loans		0.004	%				(0.04	%)		(0.04	%)		(0.12	%)		0.03	%

FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(dollars in thousands)
Yield	Three Months Ended							Three Months Ended							Three Months Ended							Three Months Ended							Three Months Ended
Analysis	December 31, 2022							September 30, 2022							June 30, 2022							March 31, 2022							December 31, 2021
			Tax							Tax							Tax							Tax							Tax
	Avg		Equivalent		Yield/			Avg		Equivalent		Yield/			Avg		Equivalent		Yield/			Avg		Equivalent		Yield/			Avg		Equivalent		Yield/
	Balance		interest		Rate			Balance		interest		Rate			Balance		interest		Rate			Balance		interest		Rate			Balance		interest		Rate
Taxable securities	$	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	%
Tax-exempt
securities		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	%
Total investment
securities		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	%
in other banks		72,910		3	0.02	%			143,867		2	0.01	%			432,851		32	0.03	%			825,877		13	0.01	%			634,541		18	0.01	%
Loans		3,749,561		46,670	4.98	%			3,492,110		42,274	4.84	%			3,013,228		34,663	4.60	%			2,945,877		34,154	4.64	%			2,956,657		36,835	4.98	%
Total Interest
earning assets		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	%
Other assets		647,446							645,661							539,078							533,612							508,800
Total assets	$	6,446,521						$	6,372,872						$	6,112,241						$	6,202,669						$	5,664,336
Interest-bearing
liabilities:
Deposits	$	3,801,632	$	7,042	0.74	%		$	3,777,059	$	2,748	0.29	%		$	3,706,711	$	1,905	0.21	%		$	3,786,808	$	2,283	0.24	%		$	3,330,603	$	2,310	0.28	%
Borrowed Funds		108,881		1,015	3.73	%			13,261		92	2.78	%			-		-	0.00	%			-		-					-		-	0.00	%
Subordinated
debentures		144,985		1,946	5.37	%			144,910		1,886	5.21	%			144,834		1,841	5.08	%			144,759		1,819	5.03	%			144,684		1,818	5.03	%
Total interest
bearing liabilities		4,055,498		10,002	0.99	%			3,935,230		4,726	0.48	%			3,851,545		3,746	0.39	%			3,931,567		4,102	0.42	%			3,475,287		4,128	0.48	%
Other liabilities		1,773,974							1,806,898							1,667,286							1,604,541							1,516,928
Shareholders' equity		617,049							630,744							593,410							666,561							672,121
Total liabilities and
shareholders'
equity	$	6,446,521						$	6,372,872						$	6,112,241						$	6,202,669						$	5,664,336
Net interest
income (FTE)*			$	48,917	3.08	%				$	50,122	3.35	%				$	43,042	2.97	%				$	39,459	2.66	%				$	40,425	2.98	%
Net interest margin (FTE)*					3.37	%						3.50	%						3.09	%						2.78	%						3.14	%
Core net interest
margin*					3.29	%						3.44	%						3.04	%						2.73	%						3.07	%
*See reconciliation for Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)
	Three Months Ended
Per Common Share Data	Dec 31, 2022				Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Book value per common share	$		26.92		$	25.86		$	27.30		$	28.82		$	32.17
Effect of intangible assets per share			8.95			8.93			8.98			9.03			8.86
Tangible book value per common share	$		17.97		$	16.93		$	18.32		$	19.79		$	23.31
Diluted earnings per share	$		0.68		$	0.61		$	0.76		$	0.81		$	0.75
Effect of acquisition and charter conversion charges			0.05			0.16			0.05			0.02			0.07
Tax on acquisition and charter conversion charges			(0.02	)		(0.05	)		(0.01	)		-			(0.02	)
Initial provision for acquired loans			-			0.17			-			-			-
Tax on initial provision for acquired loans			-			(0.04	)		-			-			-
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			-			-			-			-			0.02
Effect of Treasury awards			-			-			-			(0.03	)		-
BOLI income from death proceeds			-			-			-			(0.08	)		-
Diluted earnings per share, operating	$		0.71		$	0.85		$	0.80		$	0.72		$	0.76
		Year to Date
						2022						2021
Diluted earnings per share					$	2.84					$	3.03
Effect of acquisition and charter conversion charges						0.29						0.08
Tax on acquisition and charter conversion charges						(0.08	)					(0.02	)
Effect of bargain purchase gain and loss on sale of fixed assets						(0.01	)					(0.04	)
Tax on loss on sale of fixed assets						-						0.01
Effect of Treasury awards						(0.04	)					(0.09	)
Tax on Treasury awards						0.01						0.02
BOLI income from death proceeds						(0.08	)					-
Effect on Contributions related to Treasury awards						0.01						0.07
Tax on Contributions related to Treasury awards						-						(0.02	)
Initial provision for acquired loans						0.18						-
Tax on initial provision for acquired loans						(0.04	)					-
Diluted earnings per share, operating					$	3.08					$	3.04
		Year to Date
						2022						2021
Net income available to common shareholders					$	62,919					$	64,167
Acquisition and charter conversion charges						6,410						1,607
Tax on acquisition and charter conversion charges						(1,621	)					(406	)
Bargain purchase gain and loss on sale of fixed assets						(165	)					(903	)
Tax on bargain purchase gain and loss on sale of fixed assets						42						229
Treasury awards						(872	)					(1,826	)
Tax on Treasury awards						221						462
BOLI income from death proceeds						(1,630	)					-
Contributions related to Treasury awards						165						1,400
Tax on Contributions related to Treasury awards						(42	)					(354	)
Initial provision for acquired loans						3,855						-
Tax on initial provision for acquired loans						(976	)					-
Net earnings available to common shareholders, operating					$	68,306					$	64,376

		Three Months Ended
Average Balance Sheet Data		Dec 31, 2022			Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Total average assets	A	$	6,446,521		$	6,372,872		$	6,112,241		$	6,202,669		$	5,664,336
Total average earning assets	B		5,799,075		$	5,727,211		$	5,573,163		$	5,669,057		$	5,155,536
Common Equity	C	$	617,049		$	630,744		$	593,410		$	666,561		$	672,121
Less intangible assets			208,684			205,871			184,555			185,639			171,482
Total Tangible common equity	D	$	408,365		$	424,873		$	408,855		$	480,922		$	500,639
		Three Months Ended
Net Interest Income Fully Tax Equivalent		Dec 31, 2022			Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Net interest income	E	$	47,921		$	49,148		$	42,101		$	38,639		$	39,757
Tax-exempt investment income			(2,939	)		(2,875	)		(2,780	)		(2,422	)		(1,973	)
Taxable investment income			3,934			3,849			3,721			3,242			2,641
Net Interest Income Fully Tax Equivalent	F	$	48,916		$	50,122		$	43,042		$	39,459		$	40,425
Annualized Net Interest Margin	E/B		3.31	%		3.43	%		3.02	%		2.73	%		3.08	%
Annualized Net Interest Margin, Fully Tax Equivalent	F/B		3.37	%		3.50	%		3.09	%		2.78	%		3.14	%
Total Interest Income, Fully Tax Equivalent
Total Interest Income		$	57,923		$	53,874		$	45,847		$	42,741		$	43,885
Tax-exempt investment income			(2,939	)		(2,875	)		(2,780	)		(2,422	)		(1,973	)
Taxable investment income			3,934			3,849			3,721			3,242			2,641
Total Interest Income, Fully Tax Equivalent	G	$	58,918		$	54,848		$	46,788		$	43,561		$	44,553
Yield on Average Earning Assets, Fully Tax Equivalent	G/B		4.06	%		3.83	%		3.36	%		3.07	%		3.46	%
Interest Income Investment Securities, Fully Tax Equivalent
Interest Income Investment Securities		$	11,251		$	11,598		$	11,152		$	8,574		$	7,032
Tax-exempt investment income			(2,939	)		(2,875	)		(2,780	)		(2,422	)		(1,973	)
Taxable investment Income			3,934			3,849			3,721			3,242			2,641
Interest Income Investment Securities, Fully Tax Equivalent	H	$	12,246		$	12,572		$	12,093		$	9,394		$	7,700
Average Investment Securities	I	$	1,976,604		$	2,091,234		$	2,127,084		$	1,897,303		$	1,564,338
Yield on Investment Securities, Fully Tax Equivalent	H/I		2.48	%		2.40	%		2.27	%		1.98	%		1.97	%
		Three Months Ended
Core Net Interest Margin		Dec 31, 2022			Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Net interest income (FTE)		$	48,916		$	50,122		$	43,042		$	39,459		$	40,425
Less purchase accounting adjustments			1,086			818			605			800			861
Net interest income, net of purchase accounting adj	J	$	47,830		$	49,304		$	42,437		$	38,659		$	39,564
Total average earning assets		$	5,799,075		$	5,727,211		$	5,573,163		$	5,669,057		$	5,155,536
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		3.29	%		3.44	%		3.04	%		2.73	%		3.07	%

		Three Months Ended
Efficiency Ratio		Dec 31, 2022			Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Operating Expense
Total non-interest expense		$	35,040		$	35,903		$	30,955		$	28,590		$	30,789
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		$	48,916		$	50,122		$	43,042		$	39,459		$	40,425
Total non-interest income			8,131			9,022			8,664			11,157			9,593
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		59.34	%		54.55	%		57.66	%		58.37	%		56.91	%
		Three Months Ended
Return Ratios		Dec 31, 2022			Sept 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021
Net income available to common shareholders	N	$	16,295		$	14,043		$	15,753		$	16,829		$	15,791
Acquisition and charter conversion charges			1,190			3,641			1,172			408			1,602
Tax on acquisition and charter conversion charges			(301	)		(920	)		(296	)		(103	)		(405	)
Initial provision for acquired loans			-			3,855
Tax on initial provision for acquired loans			-			(976	)
Bargain purchase gain and loss on sale of fixed assets			-			-			(165	)		-			(1,300	)
Tax on bargain purchase gain and loss on sale of fixed assets			-			-			41			-			329
Treasury awards			-			-			(171	)		(702	)		-
Tax on Treasury awards			-			-			43			178			-
Charitable contributions related to Treasury awards			-			-			165			-			-
Tax on charitable contributions related to Treasury awards			-			-			(42	)		-			-
BOLI income from death proceeds			-			-			-			(1,630	)		-
Net earnings available to common shareholders, operating	O	$	17,184		$	19,643		$	16,500		$	14,980		$	16,017
Pre-Tax Pre-Provision Operating Earnings
Earnings before income taxes	P	$	20,307		$	17,967		$	19,210		$	21,206		$	19,665
Acquisition and charter conversion charges			1,190			3,641			1,172			408			1,602
Provision for loan losses			705			4,300			600			-			(1,104	)
Bargain purchase gain and loss on sale of fixed assets			-			-			(165	)		-			(1,300	)
Treasury Awards			-			-			(171	)		(702	)		-
Charitable contributions related to Treasury awards			-			-			165			-			-
BOLI income from death proceeds			-			-			-			(1,630	)		-
Pre-Tax, Pre-Provision Operating Earnings	Q	$	22,202		$	25,908		$	20,811		$	19,282		$	18,863
Annualized return on avg assets	N/A		1.01	%		0.88	%		1.03	%		1.09	%		1.12	%
Annualized return on avg assets, oper	O/A		1.07	%		1.23	%		1.08	%		0.97	%		1.13	%
Annualized pre-tax, pre-provision, oper	Q/A		1.38	%		1.63	%		1.36	%		1.24	%		1.33	%
Annualized return on avg common equity, oper	O/C		11.14	%		12.46	%		11.12	%		8.99	%		9.53	%
Annualized return on avg tangible common equity, operating	O/D		16.83	%		18.49	%		16.14	%		12.46	%		12.80	%

	Three Months Ended
Capital Ratios	Dec 31, 2022*		Sept 30, 2022		June 30, 2022		Mar 31, 2022		Dec 31, 2021
Common equity tier 1 (CET1) ratio	12.7	%	12.6	%	12.7	%	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	%	16.7	%	17.3	%	17.9	%	18.6	%
Tangible common equity ratio	6.9	%	6.5	%	6.4	%	6.7	%	8.3	%
*estimated

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005785/en/

For additional information, contact:

M. Ray “Hoppy” Cole

Chief Executive Officer

Dee Dee Lowery

Chief Financial Officer

(601) 268-8998

Source: The First Bancshares, Inc.

FAQ

What were the financial results for FBMS for Q4 2022?

FBMS reported a net income of $16.3 million for Q4 2022, which is a 16.0% increase from Q3.

What is the dividend declared by FBMS for February 2023?

FBMS declared a cash dividend of $0.21 per share, payable on February 24, 2023.

What acquisitions did FBMS complete recently?

FBMS completed the acquisition of Heritage Southeast Bancorporation on January 1, 2023.

How did total loans perform for FBMS in Q4 2022?

Total loans, excluding PPP loans, increased by 1.5% in Q4 2022.

What was the decrease in net income year-over-year for FBMS?

Net income available to common shareholders decreased by 1.9% year-over-year to $62.9 million.