First Bancshares reports Q1 non-GAAP EPS 86c, consensus 71c

Q1 net interest income was $64.9M vs. $47.9M for 4Q22. Q1 provision for credit losses was $11.0M vs. $0.7M for the previous quarter. Tangible book value per share decreased to $17.49 at March 31, 2023 from $17.97 at December 31, 2022. CEO Ray Cole commented, "Our company produced another strong quarter as we enjoy significantly increased operating earnings associated with our two recent acquisitions and the remix of our earning assets away from the bond portfolio into new loans. An 18 basis point improvement in our core net interest margin, the realization of additional cost saves associated with the Beach transaction and the closing of the Heritage transaction combined to produce an annualized ROAA of 1.36%, an annualized ROTCE of 20.13% on an efficiency ratio of 53% during the first quarter, giving us an outstanding start for the year. Our company continues to operate with a relatively low loan to deposit ratio of 73%, ample liquidity, a well-diversified granular deposit base and a strong capital position. Even with the volatility within the industry and the uncertainty of the economic cycle, we remain optimistic about the tailwinds we enjoy from our recent expansion in terms of operating returns and the new markets we added for additional growth."