UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 9, 2007
FIRST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Missouri 000-22842 43-1654695
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
142 East First Street, Mountain Grove, Missouri 65711
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (417) 926-5151
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))
Item 2.06 Material Impairments.
On July 12, 2007, First Bancshares, Inc. ("Company"), the holding company for
First Home Savings Bank ("Bank"), announced that the Bank determined that
there had been adverse developments with respect to certain loans in the
Bank's portfolio. The determination was based on events which took place in
the fourth fiscal quarter which make liquidation of the collateral on four
loans to one borrower the probable outcome. As a result, the Company increased
its allowance for loan losses related to these loans by $256,000 in the month
of June 2007. In addition, during the same period, the Bank recorded a
$232,000 loss on real estate held for investment. The additional allowance and
the loss on the real estate will result in a decrease in the Company's
earnings of $488,000, or $308,000 on an after tax basis, for the quarter and
fiscal year ended June 30, 2007. For further information see the Company's
press release attached hereto as Exhibit 99.1, which is incorporated herein by
reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 News Release of First Bancshares, Inc. dated July 12, 2007.
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: July 12, 2007 FIRST BANCSHARES, INC.
/s/ Ronald J. Walters
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Ronald J. Walters
Senior Vice President, Treasurer and
Chief Financial Officer
Exhibit 99.1
News Release Dated July 12, 2007
FIRST BANCSHARES, INC. REPORTS
INCREASE IN RESERVES AND LOSS ON REAL ESTATE
Mountain Grove, Missouri (July 12, 2007) - First Bancshares, Inc. (NASDAQ -
FstBksh : FBSI), the holding company for First Home Savings Bank, today
announced that it would increase its allowance for loan losses by $256,000 for
the quarter ended June 30, 2007, in connection with four commercial business
loans to one borrower. The increase was in connection with events that took
place in the fourth fiscal quarter which make liquidation the probable
outcome. As a result of the review, the Bank had concerns about this
borrower's ability to repay the loans as well as the value of the collateral
securing the loans.
Also during the quarter ended June 30, 2007, the Company recorded a $232,000
loss on real estate held for investment. The expense was to write down the
original purchase price and capitalized development costs to market value
based on a third party appraisal. During the month of June 2007, the Company
ordered and received current appraisals on all real estate investments for
which the appraisal on file was more than five years old. This was done with
the intent to begin disposal of the properties.
As a result of increase in the allowance for loan losses and the loss on the
land, the Company's earnings for the quarter ended June 30, 2007 will be
reduced by $488,000 or $308,000 on an after tax basis for the quarter.
First Bancshares, Inc. is the holding company for First Home Savings Bank, a
FDIC-insured savings bank chartered by the State of Missouri that conducts
business from its home office in Mountain Grove, Missouri, ten full service
offices in Marshfield, Ava, Gainesville, Sparta, Springfield, Theodosia,
Crane, Galena, Kissee Mills and Rockaway Beach, Missouri, and a loan
origination office in Springfield, Missouri.
The Company and its wholly-owned subsidiaries, First Home Savings Bank and
SCMG, Inc. may from time to time make written or oral "forward-looking
statements," including statements contained in its filings with the Securities
and Exchange Commission, in its reports to stockholders, and in other
communications by the Company, which are made in good faith by the Company
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995.
These forward-looking statements include statements with respect to the
Company's beliefs, expectations, estimates and intentions that are subject to
significant risks and uncertainties, and are subject to change based on
various factors, some of which are beyond the Company's control. Such
statements address the following subjects: future operating results; customer
growth and retention; loan and other product demand; earnings growth and
expectations; new products and services; credit quality and adequacy of
reserves; technology, and our employees. The following factors, among others,
could cause the Company's financial performance to differ materially from the
expectations, estimates and intentions expressed in such forward-looking
statements: the strength of the United States economy in general and the
strength of the local economies in which the Company conducts operations; the
effects of, and changes in, trade, monetary, and fiscal policies and laws,
including interest rate policies of the Federal Reserve Board; inflation,
interest rate, market, and monetary fluctuations; the timely development and
acceptance of new products and services of the Company and the perceived
overall value of these products and services by users; the impact of changes
in financial services' laws and regulations; technological changes;
acquisitions; changes in consumer spending and savings habits; and the success
of the Company at managing and collecting assets of borrowers in default and
managing the risks of the foregoing.
The foregoing list of factors is not exclusive. Additional discussion of
factors affecting the Company's business and prospects is contained in the
Company's periodic filing with the SEC. The Company does not undertake, and
expressly disclaims any intent or obligation, to update any forward-looking
statement, whether written or oral, that may be made from time to time by or
on behalf of the Company.
Contact: Daniel P. Katzfey, President and Chief Executive Officer (417)
926-5151