The First Bancshares(US:FBMS)2024-10-23 21:21Financial Performance - Net income available to common shareholders for Q3 2024 was $18.6 million, a decrease of 5.7% from $19.7 million in Q2 2024[2] - Diluted earnings per share for Q3 2024 were $0.59, compared to $0.62 in Q2 2024 and $0.77 in Q3 2023[9] - Year-to-date net income available to common shareholders decreased by $5.5 million, or 8.6%, to $58.9 million for the nine months ended September 30, 2024[21] - Basic earnings per share for the quarter were $0.59, down from $0.78 in the same quarter last year, a decrease of 24.4%[30] - Net income available to common shareholders for Q3 2024 was $18,571,000, down from $24,360,000 in Q3 2023, a decline of 23.8%[32] - Year-to-date net income available to common shareholders was $58,896,000, down from $64,410,000 in 2023, a decline of 8.3%[33] Loan and Deposit Activity - Total loans increased by $67.7 million during Q3 2024, representing an annualized increase of 5.2% compared to Q2 2024[2] - Total deposits decreased by $65.4 million, or 1.0%, to $6.561 billion in Q3 2024 compared to Q2 2024[11] - Total loans as of September 30, 2024, amounted to $5,321,577 thousand, an increase from $5,256,785 thousand in June 30, 2024[34] - Total deposits as of September 30, 2024, were $6,560,712 thousand, a decrease from $6,626,116 thousand in the previous quarter[34] Non-Interest Income and Expenses - Non-interest income decreased by $1.1 million to $12.2 million in Q3 2024, primarily due to a decrease in interchange fee income[15] - Non-interest expense for the nine months ended September 30, 2024, was $133.9 million, a decrease of $6.4 million compared to the same period in 2023, primarily due to decreased acquisition charges of $5.5 million and other non-interest expenses of $8.1 million[22] - Total non-interest expense increased to $46,394,000 in Q3 2024, up from $44,433,000 in Q3 2023, representing a 4.4% rise[32] Asset Quality - Nonperforming assets totaled $25.1 million, or 0.31% of total assets, for Q3 2024, up from $21.1 million, or 0.26%, in Q2 2024[4] - The allowance for credit losses was $55,700,000, reflecting a slight increase from $53,565,000 year-over-year[31] - Total nonperforming loans reached $17,739 thousand, up from $14,727 thousand in the previous quarter[34] - Loans past due 90 days and over increased to $1,455 thousand from $1,174 thousand in the previous quarter[34] Mergers and Acquisitions - The Company announced a merger agreement with Renasant Corporation, expected to close in the first half of 2025[5] - The effect of acquisition and charter conversion charges on diluted earnings per share was $0.09 for the year to date 2024[37] - Acquisition and charter conversion charges amounted to $2,592 million for the quarter ended September 30, 2024, compared to $352 million in June 30, 2024[43] Market and Economic Conditions - Forward-looking statements indicate potential risks including competitive pressures, economic conditions, interest rate risks, and impacts from recent acquisitions and mergers[26][27] - The Company warns that actual results may differ materially from forward-looking statements due to various risks and uncertainties[29] - The Company has experienced significant turbulence in the banking industry, which may impact customer confidence and liquidity[28] Financial Metrics - Annualized net interest margin increased by 7 basis points to 3.33% in Q3 2024 from 3.26% in Q2 2024[3] - The efficiency ratio for the quarter was 64.22%, compared to 58.90% in the same quarter last year, indicating a decrease in operational efficiency[30] - The annualized return on average assets (ROA) for the quarter was 0.94%, down from 1.24% in the same quarter last year[30] - The common equity tier 1 (CET1) ratio improved to 12.5% as of September 30, 2024, from 12.4% in June 30, 2024[44]