The First Bancshares, Inc. (FBMS) reported a net income available to common shareholders of $19.7 million for the quarter ended June 30, 2024, which represents a 4.5% decrease compared to the $20.6 million reported for the quarter ended March 31, 2024. The company recorded a provision for credit losses of $1.7 million for the quarter ended June 30, 2024, in contrast to no provision for credit losses for the quarter ended March 31, 2024.
Pre-tax pre-provision operating earnings (non-GAAP) showed an increase of 2.9%, totaling $27.4 million for the quarter ended June 30, 2024, compared to $26.6 million for the quarter ended March 31, 2024.
Total loans increased by $110.9 million during the quarter ended June 30, 2024, representing an annualized increase of 8.6%. The annualized net interest margin increased by 6 basis points to 3.26% for the quarter ended June 30, 2024, up from 3.20% for the quarter ended March 31, 2024.
The cost of deposits averaged 178 basis points for both the second and first quarter of 2024. Past due loans to total loans were $20.8 million or 0.40% for the quarter ending June 30, 2024, compared to $13.4 million, or 0.26% for the quarter ending March 31, 2024.
Nonperforming assets to total assets were $21.1 million, or 0.26% for the quarter ending June 30, 2024, compared to $18.4 million, or 0.23% for the quarter ending March 31, 2024.
The company's consolidated assets increased by $2.0 million to $7.966 billion at June 30, 2024, from $7.964 billion at March 31, 2024. Loans increased by $110.9 million, or 2.2%, for the quarterly comparison, while deposits decreased by $84.2 million for the same period.
Nonperforming assets totaled $21.1 million at June 30, 2024, reflecting an increase of $2.7 million compared to March 31, 2024.
Net interest income for the second quarter of 2024 was $57.8 million, a $0.5 million increase compared to the first quarter of 2024. Core net interest margin increased by 9 basis points to 3.19% for the second quarter of 2024 from 3.10% for the first quarter of 2024.
The company's investment securities increased by $26.0 million to $1.771 billion, or 22.2% of total assets at June 30, 2024, compared to $1.745 billion, or 21.9% of total assets at March 31, 2024.
Non-interest income increased by $0.6 million from $12.7 million in the first quarter of 2024 to $13.3 million in the second quarter of 2024, primarily due to an increase in interchange fee income of $0.7 million.
Non-interest expense for the second quarter of 2024 was $44.1 million compared to $43.4 million for the first quarter of 2024, reflecting an increase of $0.7 million.
Net income available to common shareholders for the second quarter of 2024 decreased by $4.1 million or 17.2% compared to the second quarter of 2023, totaling $19.7 million.
The company's board of directors declared a cash dividend of $0.25 per share to be paid on its common stock on August 23, 2024, to shareholders of record as of the close of business on August 8, 2024.
The market has reacted to these announcements by moving the company's shares -1.3% to a price of $29.59. For more information, read the company's full 8-K submission here.
