The First Bancshares(FBMS) - 2024 Q2 - Quarterly Results

Financial Performance - Net income available to common shareholders totaled $19.7 million for the quarter ended June 30, 2024, a decrease of $0.9 million, or 4.5%, compared to $20.6 million for the quarter ended March 31, 2024[5]. - Diluted earnings per share were $0.62 for the second quarter of 2024, down from $0.65 for the first quarter of 2024 and $0.75 for the second quarter of 2023[6]. - Net income available to common shareholders for the second quarter of 2024 totaled $19.7 million, a decrease of $4.1 million, or 17.2%, compared to $23.8 million for the second quarter of 2023[66]. - Net income available to common shareholders was $19,697 million, down from $20,628 million in the prior quarter[23]. - Diluted earnings per share for the quarter ended June 30, 2024, were $0.62, a decrease from $0.65 in the previous quarter[75]. Loan and Asset Growth - Total loans increased by $110.9 million during the quarter ended June 30, 2024, representing an annualized increase of 8.6%[2]. - Total loans increased to $5.251 billion for the quarter ended June 30, 2024, up $110.9 million or 2.2% from the previous quarter and up $240.0 million or 4.8% year-over-year[29]. - Total loans as of June 30, 2024, amounted to $5,256,785 thousand, an increase from $5,144,193 thousand in March 2024[25]. - Total assets as of June 30, 2024, were $7,965,800, showing a slight increase from $7,963,759 on March 31, 2024[72]. - Total average assets decreased by $65.8 million, or 0.8%, from $8.005 billion on March 31, 2024, to $7.939 billion on June 30, 2024[42]. Interest Income and Margin - Total interest income for the quarter ended June 30, 2024, was $91,027 million, a slight decrease from $91,663 million in the previous quarter[23]. - Net interest income for the same quarter was $57,794 million, compared to $57,341 million in the prior quarter[23]. - Core net interest margin increased by 9 basis points during the quarter ended June 30, 2024, from 3.10% to 3.19%[10]. - Annualized net interest margin increased by 6 basis points to 3.26% for the quarter ended June 30, 2024, from 3.20% for the quarter ended March 31, 2024[44]. - The average tax equivalent yield on investment securities increased by 42 basis points to 2.65% from 2.23% year-over-year[34]. Credit Losses and Nonperforming Assets - The company recorded a $1.7 million provision for credit losses for the quarter ended June 30, 2024, compared to no provision for credit losses for the quarter ended March 31, 2024[9]. - Nonperforming assets totaled $21.1 million, or 0.26% of total assets, for the quarter ending June 30, 2024, compared to $18.4 million, or 0.23%, for the quarter ending March 31, 2024[11]. - Total nonperforming loans increased to $14,727 thousand as of June 30, 2024, from $11,648 thousand in March 2024[25]. - The allowance for credit losses (ACL) to nonperforming loans ratio was 374.37% as of June 30, 2024, up from 328.08% in June 2023[25]. - Provision for credit losses was $1,650 million, up from $1,250 million in the previous quarter[23]. Deposits and Equity - Total deposits increased to $5,202,006 million from $5,158,071 million in the previous quarter[23]. - Total deposits as of June 30, 2024, were $6,626,116 thousand, a decrease from $6,710,355 thousand in March 2024[25]. - Total common equity rose to $963,445 million, up from $952,708 million in the prior quarter[23]. - Non-interest bearing deposits were $1,870,305 thousand, accounting for 28.2% of total deposits, down from 32.1% in June 2023[25]. - Common equity tier 1 (CET1) ratio increased to 12.4% as of June 30, 2024, up from 12.2% in the previous quarter[92]. Non-Interest Income and Expenses - Non-interest income increased by $0.9 million for the second quarter of 2024 compared to the second quarter of 2023[18]. - Non-interest income increased to $13,319 million from $12,679 million in the previous quarter[23]. - Total non-interest expense was $44,089 million, slightly down from $44,433 million in the prior quarter[24]. - Non-interest expense for the second quarter of 2024 was $44.1 million, a decrease of $2.8 million, or 6.0%, compared to the second quarter of 2023[67]. - Non-interest expense for the six months ended June 30, 2024, was $87.5 million, a decrease of $5.1 million compared to the same period in 2023[83].