UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) September 1, 2006
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First Bancshares, Inc.
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(Exact Name of Registrant as Specified in Charter)
Missouri 0-22842 43-1654695
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
142 East First Street, Mountain Grove, Missouri 65711
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (417) 926-5151
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
EXPLANATORY NOTE
First Bancshares, Inc. ("Company") is filing this amendment to its Current
Report on Form 8-K, dated September 1, 2006 to amend its earnings release for
the fourth quarter and the year ended June 30, 2006. After the original Form
8-K was filed, the Company became aware of certain transactions related to the
other than temporary impairment of two equity securities that had not been
identified or recorded. A copy of the full press release, as corrected, is
attached hereto as Exhibit 99.1
Item 2.02 Results of Operations and Financial Condition
On September 1, 2006, the Company issued a press release regarding its
financial results for the fourth quarter and fiscal year ended June 30, 2006.
A copy of this release was furnished as Exhibit 99.1 to this report, and as
corrected is furnished hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 News Release of First Bancshares, Inc. dated September 25,
2006 to Revise the Release dated September 1, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 25, 2006 FIRST BANCSHARES, INC.
/s/James W. Duncan
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James W. Duncan
President and Chief Executive Officer And
Acting
Principal Financial and Accounting Officer
Exhibit 99.1
News Release of First Bancshares, Inc. dated September 25, 2006
(to Revise the Release dated September 1, 2006)
FIRST BANCSHARES, INC. ANNOUNCES RESULTS FOR FOURTH QUARTER AND
FISCAL YEAR ENDED JUNE 30, 2006
AMENDING PREVIOUSLY RELEASED EARNINGS
Mountain Grove, Missouri (September 25, 2006) First Bancshares, Inc. (NASDAQ
FstBksh : FBSI), ("The Company"), the holding company for First Home Savings
Bank ("Bank") became aware after the September 1, 2006 release of earnings,
that as of June 30, 2006, the Company had not identified or recorded certain
transactions related to the other than temporary impairment of two equity
securities. These transactions resulted in a charge to earnings of $260,260
and were identified after discussion with the Company's independent registered
public accounting firm and were corrected after the September 1, 2006 release
of the Company's earnings for the fourth quarter and year ended June 30, 2006.
The above provision for impairment of securities available-for-sale resulted
in a reduction of net income totaling $219,827.
* * *
The Company had a net loss of $566,827 for the quarter, or $(0.36) per share
(basic) and net loss of $172,827, or $(0.11) per share (basic) for the year
ended June 30, 2006. Net loss for the quarter ended June 30, 2005 was
$652,000, or $(0.42) per share (basic). Net income for the year ended June
30, 2005 was $1,317,000, or $0.83 per share (basic).
In a July 20, 2006 press release, the Company announced that it would increase
its allowance for loan losses by $407,000 for the quarter ended June 30, 2006.
The increase is in connection with a standard internal review by the Bank of
major loan credits in its loan portfolio. New information was obtained on two
borrowers which resulted in a concern over the ability to repay certain
outstanding loans as well as the value of collateral securing these loans.
Also during the quarter ended June 30, 2006, the Bank recorded a $235,000 loss
on land owned for future expansion. The expense was to write down the
original purchase price and capitalized development costs to market value
based on a third party appraisal. In order to better position earnings on
investment securities, the Bank sold $7.0 million of securities at a loss of
$161,000. The proceeds will be reinvested in higher yielding investments.
Included in the net loss for the quarter ended June 30, 2005 was a provision
for the increase in allowance for loan losses of $1,765,000, as reported in a
July 29, 2005 press release. The increase was in connection with the Bank's
determination there had been further adverse developments with respect to
certain loans in the Bank's loan portfolio. The net income for the year ended
June 30, 2005 included $800,000 of income from bank-owned life insurance
proceeds, a $590,000 expense for other credit losses and related expenses and
the $1,765,000 expense for the increase in allowance for loan losses noted in
the previous paragraph.
Total consolidated assets at June 30, 2006 were $228,395,000 compared to
$244,007,000 at June 30, 2005. Stockholders' equity at June 30, 2006 was
$26,291,000, or 12% of assets, compared to $26,817,000, or 11% of assets, a
year ago. Book value per common share decreased to $16.93 at June 30, 2006
from $17.28 at June 30, 2005.
Net loans decreased $16,156,000, or 10%, from $158,143,000 at June 30, 2005 to
$141,987,000 at June 30, 2006. Deposits decreased $8,002,000, or 4%, from
$187,143,000 at June 30, 2005 to $179,141,000 at June 30, 2006.
An eleventh stock repurchase plan for 164,336 shares was initiated on May 28,
2004. As of August 28, 20056, 93,753 shares had been repurchased under that
plan at a cost of $1,937,000 at an average cost of $20.66 per share.
First Bancshares, Inc. is the holding company for First Home Savings Bank, an
FDIC-insured savings bank chartered by the State of Missouri that conducts
business from its home office in Mountain Grove, Missouri and ten full service
branch facilities in Marshfield, Ava, Gainesville, Sparta, Theodosia, Crane,
Galena, Kissee Mills, Rockaway Beach and Springfield, Missouri.
Forward-looking statements
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The discussions in this press release which are not historical statements
contain forward-looking statements that involve risk and uncertainties.
Statements which are not historical statements include those in the future
tense or which use terms such as "believe," "expect," and "anticipate." Actual
future results could differ in important and material ways from those
discussed. Many factors could cause or contribute to such differences. In
addition, the Company's filings with the Securities and Exchange Commission
discuss a number of other factors which may affect its future operations.
These factors include changing interest rates, changes in demand for loans or
other services, competition from other institutions, the results of our
lending activities and loan loss experience, general economic and political
developments, and other factors discussed in those filings. The statements
made herein are only made as of the date of this press release and the Company
undertakes no obligations to publicly update such statements to reflect
subsequent events or circumstances.
Contact: James Duncan, President and CEO (417) 926-5151
First Bancshares, Inc. and Subsidiaries
Financial Highlights
(In thousands, except per share amounts)
Quarter Twelve Months
Ended June 30, Ended June 30,
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2006 2005 2006 2005
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Operating Data:
Total interest income $ 3,242 $ 3,276 $12,913 $13,265
Total interest expense 1,593 1,254 5,987 5,091
Provision for loan losses 607 1,995 1,520 2,333
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Net interest income after
provision for loan losses 1,042 27 5,406 5,841
Noninterest income (46) 531 1,481 2,907
Noninterest expense 1,584 1,756 7,151 7,415
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Income (loss) before income
tax (588) (1,198) (264) 1,333
Income tax expense (savings) (21) (546) (91) 16
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Net income (loss) $ (567) $ (652) $ (173) $ 1,317
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Net income (loss)
per share-basic $ (0.36) $ (0.42) $ (0.11) $ 0.83
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Net income (loss)
per share-diluted $ (0.36) $ (0.42) $ (0.11) $ 0.83
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At At
June 30, June 30,
Financial Condition Data: 2006 2005
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Total assets $ 228,395 $ 244,007
Loans receivable, net 141,987 158,143
Nonperforming assets 1,341 5,386
Cash and cash equivalents, including
interest-bearing deposits 23,474 20,617
Securities including certificates
of deposit 45,533 47,982
Customer deposits 179,141 187,143
Borrowed funds 22,000 29,074
Stockholders' equity 26,291 26,817
Book value per share 16.93 17.28