A Transformational Year

Transcription

1 Growing in the Gulf South NASDAQ: FBMS 2016 A Transformational Year 1

2 Forward Looking Statement Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about the companies anticipated future financial performance. This act provides a safe harbor for such disclosure which protects First Bancshares Inc. from unwarranted litigation if actual results are different from management expectations. This presentation contains forwardlooking statements and reflects management s current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward looking statements are subject to a number of factors and uncertainties which could cause the actual results and experience of First Bancshares Inc. to differ from the anticipated results and expectations expressed in such forwardlooking statements. First Bancshares Inc. undertakes no obligation to update or clarify forward looking statements, whether as a result of new information, future events or otherwise. 2

3 Overview Bank Established in Locations in the Gulf South Acquisitive and Organic Growth Strategy Seven Years of Record Net Income $2.00 $1.00 Post Acquisitions 3/31/17 In Billions $1.78 $1.14 $1.57 $0.00 Assets Loans Deposits 3

4 A Transformational Year Financial Performance 14.3% Increase in Net Income to Common 11.5% Increase in Total Assets 12.4% Increase in Total Loans 13.4% Increase in Total Deposits Capitalization Raised $63M in New Capital Redeemed Preferred Stock Issued to US Treasury at a 7% Discount Shareholder Return 50% Increase in Common Stock Price 4

5 A Transformational Year Two Acquisitions Closed 1/1/17 Iberville Bank Baton Rouge MSA Gulf Coast Community Pensacola MSA The First Gained Branches Purchase Cash: $31.1M Stock: $2.3M Assets $269.4M $121.9M $391.3M Loans $147.3M $ 91.0M $238.3M Deposits $243.6M $111.9M $355.5M 5

6 Strategic Accomplishments Acquired 8 Whitney Bank Mississippi Branches $170M Assets; Expanded MS Footprint Acquired National Bank of Baldwin County (Alabama) $187M Assets; Expanded into Alabama 2013 Successful Private Placement: $20M Acquired BCB Holding Co. of Mobile (Bay Bank) $79M Assets, Added Growing MSA Acquired The Mortgage Connection, Jackson, MS Entered Jackson Market 2016 Successful Private Placement: $63M 2017 Acquired Iberville and Gulf Coast Community Banks $391M Assets: Expanded Footprint to FL 6

7 Strategic Acquisitions Gulf South Region 48 Locations Target Acquisitions: $200M $1B Assets 100 Banks in Target Region 7

8 Financial Performance Seventh Year of Record Earnings $12.0 $10.0 $8.0 $6.0 Net Income In Millions Applicable to Common Stockholders EPS $6.3 $8.5 $9.7 $4.0 $3.6 $4.2 $3.4 $2.0 $2.2 $2.5 $2.3 $0.0 *Operating net earnings per share Includes 3.6 million in new shares associated with 2016 capital raise and excludes merger related charges Q16 1Q17 $0.74 $0.82 $1.16 $0.96 $1.19 $1.55 $1.57 $0.43* $0.37* 8

9 Financial Performance CAGR = 17.9% Legacy Bank CAGR = 8.9% $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $478 Asset Growth In Millions $503 $684 $724 $941 $1,094 $1,145 $1,277 $1, /31/2017 Organic Assets Acquired Assets 9

10 Financial Performance Loans CAGR: 17.3% Deposits CAGR: 17.4% $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Loans/Deposits In Millions $1,568 $1,145 $1,039 $893 $917 $867 $780 $707 $777 $573 $597 $583 $397 $388 $414 $ Q % 74.3% 64.5% 68.1% 72.1% 76.8% 80.4% 76.5% Loans Deposits Average Loan/Deposit Ratio 10

11 Financial Performance %Increase % Increase Total Assets 11.5% Total Interest Income 11.0% Total Loans 12.4% Net Interest Income 8.9% Total Deposits 13.4% Net Income to Common 14.3% 11

12 Deposits Low Cost Dominates 82.2% of Deposits are Non CD Deposits: $1,568 Million 3/31/ % 20.6% Non interest checking $323M 8.9% NOW $661M Money Market $166M Savings $139M 10.6% Time Deposits $279M 42.1% 12

13 Loans Diversified and Superior Quality 14.2% 1.2% Loans: $1,145 Million 2.2% 3/31/17 Non Farm Non Residential $426M 13.7% 37.2% Mortgage Residential $361M Commercial $157M Construction $163M Consumer $25M 31.5% Other $13M 13

14 Assets Superior Quality Q17 Past Dues 30 > (%) NPA/Assets (%) NCO/Avg. Loans (%) (0.03) (0.02) (0.10) 14

15 Net Interest Income $45.0 $40.0 Net Interest Income $ In Millions $37.0 $40.3 $35.0 $30.0 Net Interest Margin $28.4 $33.4 $25.0 $20.0 $15.0 $16.3 $19.1 $22.2 $14.2 $10.0 $9.7 $5.0 $ Q16 1Q % 3.99% 3.59% 3.44% 3.70% 3.72% 3.71% 3.68% 3.85% 15

16 Shareholder Value and Return 12 Months Ended 3 Months Ended* 12/31/15 12/31/16 3/31/16 3/31/17 ROAA (%) ROATCE(%) ROAE (%) Efficiency Ratio (%) * Net of merger related charges and one time items 16

17 Market Information and Historical Pricing YTD Average Stock Price ($) Market Capitalization ($) In Millions Average Daily Volume 1,679 3,841 4,453 7,387 3,819 13,368 Price/LTM EPS (x) Price/Tangible Book (%)

18 Shareholder Value and Returns Comparison of 7 Year Cumulative Total Return Assumes Initial Investment of $100 December

19 Regional Economics Panhandle of Florida Pensacola Population: 478K Forecasted Growth: 12% for Strong Naval Aviation Industry Tourism: Visitors Spent $849M in 2015 Average Age: 38.4 years 19

20 Regional Economics Louisiana Baton Rouge MSA Population: 802K Job Growth Forecast: 2.2% for Petrochemical Hub: $15.3B Expansion Emerging Technology: IBM Complex Two Major Universities Capital City of Louisiana 20

21 Regional Economics Alabama Baldwin County High Population Growth 43% Increase since 2000 Manufacturing Aerospace Tourism Mobile Population: 415K High Job Growth Forbes Ranked: 1 st New Manufacturing Manufacturers: Airbus, AM/NS Calvert, Outokumpu Stainless, Austal 21

22 Regional Economics Mississippi Hattiesburg Population: 2X s MS Avg. Universities: University of Southern MS William Carey University Forrest General Hospital 512 Beds Camp Shelby Army Base Jackson Population: 578K 5.2% Growth for Nissan Manufacturing Plant 6,000 jobs University of MS Medical Ctr. Capital City of Mississippi 22

23 Regional Economics Mississippi Pascagoula Largest Seaport in MS Ingalls Shipbuilding Chevron Refinery Ocean Springs Vibrant Arts Scene Growing Tourism Biloxi/Gulfport Population: 389K 4.1% Growth for Gaming Market $1.1B, 12 Casinos Deep Water Port Maritime Industry Keesler Air Force Base 23

24 Successful Leadership Team Executives E. Ricky Gibson Chairman Director for 20 Years Successful Entrepreneur for 27 Years M. Ray Hoppy Cole, Jr. President/CEO 31 Years of Experience Dee Dee Lowery Executive VP, CFO 27 Years of Experience 24

25 Successful Leadership Team Executives Ion Mixon Executive VP, Risk Manager 18 years experience Chris Ryals Executive VP, COO 23 years experience Hayden Mitchell Executive VP, Chief Retail Banking Officer 41 years experience Ray Wesson President, Southern Region 25 years experience Bob Smith President, Louisiana Region 37 years experience Eric Waldron President, Northern Region 22 years experience Carol Daniel Executive VP, Credit Administrator 35 years experience Dave Bush Executive VP, Private Banking Manager 38 years experience Wade Neth President, Florida Alabama Region 31 years experience 25

26 Seven Reasons To Invest in The First Seven Years of Record Earnings Superior Performance and Execution Strategically Focused on Acquisitive and Organic Growth Strong Capital Structure $63M Private Placement; CDCI Debt Reduction Goal: $4 5B Assets in Five Years Situated in Growing Markets Shareholder Value and Return Demonstrated Successful Leadership Team 26

27 Growing in the Gulf South NASDAQ: FBMS 2016 A Transformational Year 27