The First Bancshares(US:FBMS)2025-01-28 23:19Financial Performance - Net income available to common shareholders for Q4 2024 was $18.3 million, a decrease of 1.5% from $18.6 million in Q3 2024[4] - Diluted earnings per share for Q4 2024 were $0.58, compared to $0.59 in Q3 2024[8] - Net income available to common shareholders rose by $1.7 million, or 2.3%, from $75.5 million in 2023 to $77.2 million in 2024[33] - Excluding one-time items, net earnings available to common shareholders decreased by $15.4 million, or 15.9%, to $81.4 million in 2024 compared to $96.7 million in 2023[34] - Year-to-date net income available to common shareholders for 2024 was $77,194, compared to $75,457 in 2023, reflecting a modest increase of 2.3%[48] Loans and Deposits - Total loans increased by $88.6 million, or 6.7% on an annualized basis, compared to Q3 2024, reaching $5.407 billion[10] - Total loans increased to $5,407,231,000 from $5,318,590,000 in the previous quarter, marking a growth of 1.67%[46] - Total deposits rose to $6.605 billion, an increase of $44.1 million, or 0.7%, from Q3 2024[11] - Total deposits rose to $6,604,856,000 from $6,560,712,000, an increase of 0.67%[46] Interest Income and Margin - Annualized net interest margin increased by 4 basis points to 3.37% in Q4 2024 from 3.33% in Q3 2024[4] - Total interest income for the quarter ended December 31, 2024, was $93,584,000, a slight increase from $93,561,000 in the previous quarter[45] - Net interest income for the same quarter was $60,120,000, compared to $59,014,000 in the prior quarter, reflecting a growth of 1.87%[45] - Total interest income for Q4 2024 was $93,584, an increase from $88,720 in Q4 2023, representing a year-over-year growth of 5.0%[47] - Year-to-date total interest income for 2024 reached $369,835, up from $340,933 in 2023, indicating a growth of 8.5%[48] Non-Interest Income and Expense - Non-interest income decreased by $0.7 million to $11.5 million in Q4 2024, primarily due to lower service charges and fees[22] - Non-interest income increased by $3.1 million to $49.8 million in 2024, attributed to prior year losses on investment securities[36] - Non-interest expense increased by $2.0 million to $48.4 million in Q4 2024, driven by higher salaries and employee benefits[23] - Total non-interest expense for Q4 2024 was $48,368, an increase from $44,433 in Q4 2023, representing a rise of 8.0%[47] Credit Quality - Nonperforming assets totaled $29.9 million, representing 0.37% of total assets, an increase from 0.31% in Q3 2024[14] - The Company recorded a provision for credit losses of $1.1 million in Q4 2024, compared to $1.0 million in Q3 2024[7] - Provision for credit losses in Q4 2024 was $1,140, down from $1,250 in Q4 2023, indicating a reduction of 8.8%[47] - Nonperforming assets rose to $29,853 thousand, compared to $25,053 thousand in the prior quarter, indicating an increase of 11.2%[49] Corporate Actions and Future Outlook - The Company announced a merger agreement with Renasant Corporation, expected to close in the first half of 2025[4] - Forward-looking statements indicate potential risks including competitive pressures, economic conditions, and interest rate risks that may affect future performance[41] Efficiency and Ratios - The efficiency ratio for the quarter was 66.63%, compared to 64.22% in the prior quarter, indicating a decline in operational efficiency[45] - Common equity tier 1 (CET1) ratio increased to 14.5%, up from 12.5% in the previous quarter[54] - Annualized return on average assets (ROA) for the quarter was 0.92%, slightly down from 0.94% in the previous quarter[45] - Annualized return on average common equity, operating was 8.00%, down from 8.41% in the previous quarter[54]