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): August 2, 2007
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FIRST BANCSHARES, INC.
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(Exact name of registrant as specified in its charter)
Missouri 000-22842 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 office) (Zip code)
Registrant's telephone number, including are code: (417) 926-5151
NA
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(Former name or former address, if changed since last report)
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))
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition
On August 2, 2007, First Bancshares, Inc. issued a news release announcing
earnings for the quarter ended June 30, 2007. A copy of the press release is
attached as Exhibit 99.1 to this report and is incorporated herein, by
reference.
Section 9 - Financial Statements and Exhibits.
Item 9.01 Financial Statements and Exhibits.
d) Exhibits.
99.1 Press Release of First Bancshares, Inc., dated August 2, 2007.
SIGNATURE
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: August 2, 2007 FIRST BANCSHARES, INC.
/s/Ronald J. Walters
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Ronald J. Walters
Senior Vice President and Chief Financial
Officer
(Principal Financial and Accounting Officer)
Exhibit Index
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Exhibit
Number Description of Exhibit
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99.1 Press Release of First Bancshares, Inc. dated August 2, 2007
FIRST BANCSHARES, INC. ANNOUNCES FOURTH QUARTER FISCAL 2007 RESULTS
Mountain Grove, Missouri (August 2, 2007) - First Bancshares, Inc. (NASDAQ -
FstBksh : FBSI), the holding company for First Home Savings Bank ("Bank"),
today announced earnings for the fourth quarter and for its fiscal year ended
June 30, 2007.
For the quarter ended June 30, 2007, the Company had net income of $7,000, or
$0.01 per share - diluted, compared to a net loss of ($567,000), or ($0.36)
per share - diluted for the comparable period in 2006. Net income for the
year ended June 30, 2007 was $272,000, or $0.18 per share - diluted, compared
to a net loss of ($173,000), or ($0.11) per share - diluted for the year ended
June 30, 2006. The changes from a net loss for both the quarter and year ended
June 30, 2006 to net income for both the quarter and year ended June 30, 2007
are attributable to a reduction in the provision for loan losses and an
increase in non-interest income for the fiscal 2007 periods. These items were
partially offset by decreases in net interest income and increases in
compensation and benefits expense, occupancy expense and professional fees.
The $1.1 million or 72.0% decrease in the provision for loan losses during the
year ended June 30, 2007 compared to the year ended June 30, 2006 was the
result of increased efforts to resolve potential problem credits and a
decrease, with a couple of exceptions noted below, in the number of credits
that became problems.
The $823,000 or 55.6% increase in non-interest income during the year ended
June 30, 2007 compared to the comparable period in 2006 was the result of a
gain of $177,000 on the sale of securities, as compared to losses and write
downs totaling $422,000 in fiscal 2006, gains on the sale of loans totaling
$140,000 during the year ended June 30, 2007 from the operations of the loan
origination office which was established in March 2007, and a gain of $58,000
on sale of property and equipment and real estate owned compared to a loss of
$380,000 on such sales in fiscal 2006. These items were partially offset by
write downs on real estate held for investment totaling $271,000 and a
decrease of $71,000 in service charges and other fee income during the year
ended June 30, 2007.
Net interest income decreased $556,000 or 8.0% during the year ended June 30,
2007 compared to fiscal 2006 as the result of costs on interest-bearing
liabilities increasing more rapidly than the yields on interest-bearing assets
during the fiscal year. During the year ended June 30, 2007 the Company's net
interest margin decreased to 3.01% from 3.21% for the year ended June 30,
2006.
Non-interest expense increased $942,000 or 13.2% to $8.1 million for the year
ended June 30, 2007 compared to $7.2 million for the comparable period in
2006. The increase was primarily attributable to an increase of $314,000 in
compensation and benefits as a result of additional staffing for the new
branch and the loan origination office, and filling open positions at the
senior management level. Occupancy expense increased $422,000 as the result of
the opening of the new branch and the loan origination office. Professional
fees increased due to personnel turnover during the report preparation for
fiscal 2006 requiring use of outside accountants and additional time required
on the part of auditors and attorneys.
Total consolidated assets at June 30, 2007 were $241.3 million, compared to
$228.4 million at June 30, 2006, representing an increase of $12.9 million, or
5.6%. Stockholders' equity at June 30, 2007 was $26.5 million, or 10.9% of
assets, compared with $26.3 million, or 11.5% of assets, at June 30, 2006.
Book value per common share increased to $17.07 at June 30, 2007 from $16.93
at June 30, 2006. The increase in equity was primarily attributable to net
income of $272,000 for the year ended June 30, 2007, which was partially
offset by a negative $27,000, net of income taxes, in the market value of
available-for-sale securities, the payment of dividends of $124,000 and the
repurchase of common stock totaling $27,000.
Net loans receivable increased $17.0 million, or 12.0%, to $159.0 million at
June 30, 2007 from $142.0 million at June 30, 2006. Growth of net loans
receivable includes increases of $3.9 million, $4.4 million and $8.1 million
in residential first mortgage loans, commercial real estate loans and consumer
loans, including second mortgages, respectively. These increases were
partially offset by a decrease of $3.3 million in commercial business loans.
Customer deposits increased $10.9 million, or 6.1%, to $190.1 million at June
30, 2007 from $179.1 million at June 30, 2006. Non-performing assets decreased
during the forth fiscal quarter by $214,000 to $3.3 million at June 30, 2007
from $3.5 million at March 31, 2007. Non-performing assets totaled $1.3
million at June 30, 2006. The increase between fiscal years is primarily the
result of loans with two borrowers which became non-performing. In one case, a
borrower with loans totaling $1.6 million, filed for bankruptcy protection and
offered a reorganization plan. However, recent events strongly indicate that
the collateral will be liquidated. In the other case, a $620,000 loan became
non-performing when a pending sale of the collateral property failed to
materialize. The collateral is currently being liquidated. There are Small
Business Administration guarantees on these loans and the losses anticipated,
based on estimated liquidation values, which exceed the guarantees have been
provided for in the allowance for loan losses at June 30, 2007. The provision
for loss on these loans for the quarter ended June 30, 2007 was approximately
$256,000 and the total provision for loss on these loans at June 30, 2007 was
approximately $580,000. During the year ended June 30, 2007, the allowance for
loan losses increased by $218,000, from $2.5 million to $2.7 million, while
the ratio of the allowance to gross loans remained at 1.67%.
The Company ended a stock repurchase plan that had been in effect since May
28, 2004. The plan had authorized the repurchase of up to 164,336 shares of
common stock. When the plan was ended on May 25, 2007, a total of 95,418
shares had been repurchased at a cost of $1,965,000 or an average cost of
$20.59 per share. During the quarter ended June 30, 2007, 500 shares of common
stock were purchased at a cost of $16.06 per share.
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
First Bancshares, Inc. and Subsidiaries
Financial Highlights
(In thousands, except per share amounts)
Quarter Ended Year Ended
June 30, June 30,
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2007 2006 2007 2006
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Operating Data:
Total interest income $ 3,643 $ 3,242 $ 13,724 $ 12,913
Total interest expense 2,007 1,593 7,354 5,987
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Net interest income 1,636 1,649 6,370 6,926
Provision for loan losses 146 607 426 1,520
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Net interest income after provision
for loan losses 1,490 1,042 5,944 5,406
Non-interest income 385 (46) 2,304 1,481
Non-interest expense 2,014 1,584 8,093 7,151
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Income (loss) before income tax (139) (588) 155 (264)
Income tax benefit (146) (21) (117) (91)
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Net income (loss) $ 7 $ (567) $ 272 $ (173)
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Net income (loss) per share-basic $ 0.01 $ (0.36) $ 0.18 $ (0.11)
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Net income (loss) per share-
diluted $ 0.01 $ (0.36) $ 0.18 $ (0.11)
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At June 30,
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Financial Condition Data: 2007 2006
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Total assets $ 241,331 $ 228,395
Loans receivable, net 158,993 141,987
Non-performing assets 3,335 1,341
Cash and cash equivalents, including
interest-bearing deposits 21,030 23,474
Investment securities 42,854 43,921
Customer deposits 190,090 179,141
Borrowed funds 24,103 22,000
Stockholders' equity 26,468 26,291
Book value per share $ 17.07 $ 16.93