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): October 30, 2008
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 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 2.02 Results of Operations and Financial Condition
On October 30, 2008, First Bancshares, Inc. issued a news release announcing
earnings for the quarter September 30, 2008. A copy of the press release is
attached as Exhibit 99.1 to this report and is incorporated herein, by
reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release of First Bancshares, Inc. October 30, 2008.
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.
FIRST BANCSHARES, INC.
Date: October 30, 2008 /s/Ronald J. Walters
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Ronald J. Walters
Senior Vice President and
Chief Financial Officer
(Principal Financial and Accounting
Officer)
EXHIBIT 99.1
FIRST BANCSHARES, INC. ANNOUNCES FIRST QUARTER FISCAL 2009 RESULTS
Mountain Grove, Missouri (October 30, 2008) - First Bancshares, Inc.
("Company") (NASDAQ - FstBksh : FBSI), the holding company for First Home
Savings Bank ("Bank"), today announced earnings for the first quarter of its
fiscal year ending June 30, 2009.
For the quarter ended September 30, 2008, the Company had net income of
$245,000, or $0.16 per share diluted, compared to net income of $225,000, or
$0.15 per share diluted for the comparable period in 2007. The increase in
net income for the quarter ended September 30, 2008 when compared to the prior
year is attributable to an increase in net interest income, which was offset
by an increase in the provision for loan losses, a decrease in non-interest
income, and increases in non-interest expense and income taxes.
Net interest income increased by $237,000 during the quarter ended September
30, 2008 compared to the prior year. This was the result of a decrease of
$565,000, or 27.3%, in interest expense from $2.1 million in the fiscal 2008
first quarter to $1.5 million in the fiscal 2009 first quarter. This was
offset by a decrease of $328,000, or 8.8%, in interest income from $3.7
million in the first quarter of fiscal 2008 to $3.4 million in the comparable
quarter of fiscal 2009. The decrease in interest expense was the result of a
decrease in the average cost of interest-bearing liabilities from 4.04% in the
2007 period to 2.92% in the 2008 period, which was partially offset by an
increase in the average balance of interest-bearing liabilities of $1.3
million from $203.6 million in 2007 to $204.9 in 2008. The decrease in
interest income was the result of a decrease in the average yield on
interest-earning assets from 6.69% in the 2007 period to 6.02% in the 2008
period, which was partially offset by an increase of $3.2 million in the
average balances of interest-earning assets from $222.0 million in 2007 to
$225.2 million in 2008. The changes in yields and costs are the result of the
general decline in market interest rates that has accompanied the financial
and general economic crisis that has evolved over the past year.
There was an increase in the provision for loan losses of $141,000 from $8,000
during the quarter end September 30, 2007 quarter to $149,000 during the
comparable quarter in 2008. A review of the delinquent loans, non-performing
loans and classified loans resulted in a larger provision for loan losses
during the quarter ended September 30, 2008 than was the case based on the
similar review done for the quarter ended September 30, 2007.
There was a decrease of $27,000 in non-interest income during the quarter
ended September 30, 2008 compared to the prior year. This was the result of a
decrease in of $48,000 in gain on the sale of loans and a change in net gain
on the sale of property and equipment and real estate owned from a gain of
$37,000 during the 2007 quarter to a loss of $2,000 during the 2008 quarter.
These decreases were partially offset by an increase of $54,000 in service
charges and other fee income and $4,000 in other income. The decrease in
profit on the sale of loans is due to the reduced volume of lending activity
in first quarter of fiscal 2009 compared to the prior year.
Non-interest expense increased by $25,000 during the quarter ended September
30, 2008 compared to the same quarter one year earlier. There was an increase
in occupancy and equipment expense, due primarily to an ongoing effort to
improve the appearance and functionality of the Company's home office and
branch offices. While most of the expenditures related to this effort have
been capital expenditures, a lesser portion has fallen under the category of
repairs and maintenance. Compensation and employee benefits, professional
fees, and other expenses decreased slightly during the 2008 quarter compared
to the 2007 quarter. The increase in income taxes was due primarily to the
increase in pre-tax income.
Total consolidated assets at September 30, 2008 were $244.0 million, compared
to $249.2 million at June 30, 2008, representing a decrease of $5.3 million,
or 2.1%. Stockholders' equity at September 30, 2008 was $27.3 million, or
11.2% of assets, compared with $27.1 million, or 10.9% of assets, at June 30,
2008. Book value per common share increased to $17.61 at September 30, 2008
from $17.47 at June 30, 2008. The increase in equity was primarily
attributable to net income of $245,000 for the quarter and an increase of
$101,000, net of taxes, in the market value of available-for-sale securities,
which were partially offset by the payment of a cash dividend on common stock
totaling $155,000.
Net loans receivable decreased $8.7 million, or 5.2%, to $158.3 million at
September 30, 2008 from $167.0 million at June 30, 2008. The decrease in net
loans receivable was due to a general decrease in the demand for loans
resulting from more challenging economic conditions both nationally and in the
Bank's primary market area.. Customer deposits decreased $5.3 million, or
2.7%, to $189.3 million at September 30, 2008 from $194.6 million at June 30,
2008.
Non-performing assets increased during the first fiscal quarter of fiscal 2009
by $1.5 million. There were increases of $542,000 in non-accrual loans,
$734,000 in loans delinquent 90 days or more and still accruing and $222,000
in real estate owned. While the increase in non-performing assets during the
quarter was significant, management believes that there was no single item or
group of items the resolution of which will result in material loss to the
Company. Based on its analysis of delinquent loans, non-performing loans and
classified loans, management believes that the Company's allowance for loan
losses of $2.9 million at September 30, 2008 is adequate to absorb known and
inherent risks in the loan portfolio at that date.
The Bank continues to operate under a Memorandum of Understanding ("MOU") with
the Office of Thrift Supervision (the "OTS"). All items required by the MOU
have been completed, and the Bank has prepared and filed reports with the OTS
comparing actual operating results and financial position to the budgeted
operating results and financial condition included in the business plan it
submitted to the OTS each month since October 2007.
The Company announced a stock repurchase plan for up to 50,000 shares of
common stock on June 27, 2008. The plan is scheduled to end as of December 31,
2008. As a result of the general turmoil in the markets and the economy in
general no purchases having been made under this plan.
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; results of examinations by our bank regulators, 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: Ronald J. Walters, Senior Vice President, Treasurer and Chief
Financial Officer - (417) 926-5151
First Bancshares, Inc. and Subsidiaries
Financial Highlights
(In thousands, except per share amounts)
Quarter
Ended September 30,
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Operating Data: 2008 2007
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Total interest income $ 3,417 $ 3,745
Total interest expense 1,507 2,172
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Net interest income 1,910 1,673
Provision for loan losses 149 8
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Net interest income after provision
for loan losses 1,761 1,665
Non-interest income 757 785
Non-interest expense 2,157 2,132
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Income before income tax 361 318
Income tax expense 116 93
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Net income $ 245 $ 225
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Net income per share-basic $ 0.16 $ 0.15
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Net income per share-diluted $ 0.16 $ 0.15
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At At
September 30, June 30,
Financial Condition Data: 2008 2008
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Total assets $ 243,950 $ 249,232
Loans receivable, net 158,329 167,035
Non-performing assets 5,376 3,879
Cash and cash equivalents, including
interest-bearing deposits 16,492 17,010
Investment securities 49,276 45,572
Customer deposits 189,339 194,593
Borrowed funds 26,373 26,648
Stockholders' equity 27,304 27,100
Book value per share $ 17.61 $ 17.47