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): September 23, 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
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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))
Item 2.02 Results of Operations and Financial Condition
On September 23, 2008, First Bancshares, Inc. issued a news release announcing
earnings for the quarter and year ended June 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. September 23, 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: September 23, 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 FOURTH QUARTER FISCAL 2008 RESULTS
Mountain Grove, Missouri (September 23, 2008) 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, 2008.
For the quarter ended June 30, 2008, the Company had net income of $83,000, or
$0.05 per share diluted, compared to net income of $7,000, or $0.01 per share
diluted for the comparable period in 2007. Net income for the year ended June
30, 2008 was $363,000, or $0.23 per share diluted, compared to net income of
$272,000, or $0.18 per share diluted for the year ended June 30, 2007. The
increases in net income for both the quarter and year ended June 30, 2008
compared to net income for both the quarter and year ended June 30, 2007 were
attributable to increases in net interest income and non-interest income
during the 2008 periods. These items were partially offset by increases in the
provision for loan losses and in non-interest expenses during the 2008
periods.
During the quarter ended June 30, 2008, net interest income increased by
$382,000, or 23.3%, to $2.0 million from $1.6 million during the quarter ended
June 30, 2007. This increase was the result of a decrease in interest expense
of $439,000, or 21.9%, which was partially offset by a decrease in interest
income of $57,000, or 1.6%. During the 2008 quarter, non-interest income
increased by $344,000, or 89.4%, to $729,000 from $385,000 during the 2007
quarter. This increase was primarily the result of an increase of $81,000 in
service charges and other fee income, a reduction of $32,000 in net loss on
the sale of property, equipment and real estate owned, and the non-recurrence
of a $271,000 write down in the carrying value of real estate held for
investment. These positive changes were partially offset by an $8,000 decrease
in gain on the sale of loans and a reduction of $35,000 in other non-interest
income.
During the quarter ended June 30, 2008, the provision for loan losses
increased by $565,000, or 386.8%, to $711,000 from $146,000 during the quarter
ended June 30, 2007. As a result, the allowance for loan losses was $2.7
million, or 1.59%, of gross loans at June 30, 2008 compared to $2.8 million,
or 1.65% of gross loans at June 30, 2008. This was the result of the addition
of several loans to the internal watch list during the quarter. In addition,
non-interest expense increased by $115,000, or 5.7% during the 2008 quarter to
$2.1 million from $2.0 million during the 2007 quarter. The increase in non-
operating income included increases of $37,000, $21,000, $21,000 and $50,000
in compensation and employee benefits, occupancy and equipment, deposit
insurance premiums and other non-interest expense, which was partially offset
by a decrease of $14,000 in professional fees.
During the year ended June 30, 2008, net interest income increased by $1.0
million, or 15.8%, to $7.4 million from $6.4 million during the year ended
June 30, 2007. This increase was the result of an increase in interest income
of $1.1 million, or 8.0%, in interest income which was partially offset by an
increase in interest expense of $97,000, or 1.3%. During fiscal 2008,
non-interest income increased by $599,000, or 26.0%, to $2.9 million from $2.3
million during fiscal 2007. This increase was primarily the result of increase
of $248,000 in service charges and other fee income, $369,000 in gain on the
sale of loans, and the non-recurrence of a $271,000 write down in the carrying
value of real estate held for investment during fiscal 2007. These positive
changes were partially offset by decreases of $55,000, $13,000 and $44,000 in
gain on the sale of property, equipment and real estate owned, income from
bank owned life insurance, and other non-operating income, respectively, and
by the absence in fiscal 2008 of the $177,000 gain on the sale of investments
that occurred during fiscal 2007.
During the year ended June 30, 2008, the provision for loan losses increased
by $865,000, 203.1%, to $1.3 million from $426,000 during the year ended June
30, 2007, primarily as a result of the $565,000 increase in the provision for
loan losses during the fourth quarter of the fiscal year discussed above.
During the year, the Savings Bank net charge-offs of almost $1.2 million, of
which more than half related to loans that loans that were classified as of
June 30, 2007, and for which there were allowances in place as of that date.
In addition, non-interest expense increased by $464,000 during fiscal 2008 to
$8.6 million from $8.1 million during fiscal 2007. The increase in
non-interest expense included increases of $122,000, $120,000, $40,000,
$87,000 and $94,000 in compensation and employee benefits, occupancy and
equipment, professional fees, deposit insurance premiums and other non-
interest expense.
Total consolidated assets at June 30, 2008 were $249.2 million, compared to
$241.3 million at June 30, 2007, representing an increase of $7.9 million, or
3.3%. Stockholders' equity at June 30, 2008 was $27.1 million, or 10.9% of
assets, compared with $26.5 million, or 11.0% of assets, at June 30, 2007.
Book value per common share increased to $17.47 at June 30, 2008 from $17.07
at June 30, 2007. The increase in equity was primarily attributable to net
income of $363,000 for the year ended June 30, 2008, and a positive change of
$185,000, net of income taxes, in the market value of available-for-sale
securities.
Net loans receivable increased $8.0 million, or 5.1%, to $167.0 million at
June 30, 2008 from $159.0 million at June 30, 2007. Growth in net loans
receivable included increases of $13.4 million, $3.1 million, $1.7 million and
$428,000, in commercial real estate loans, commercial business loans, land
loans, and consumer loans, including second mortgages, respectively. These
increases were partially offset by a decrease of $10.5 million in residential
real estate loans. Customer deposits increased $4.5 million, or 2.4%, to
$194.6 million at June 30, 2008 from $190.1 million at June 30, 2007. Non-
performing assets increased by $278,000 from $3.6 million at March 31, 2008
and by $338,000 from $3.5 million at June 30, 2007 to $3.9 million at June 30,
2008. The increase between the third and fourth fiscal quarters was the result
of increases in real estate owned and other repossessed assets of $216,000 and
an increase loans 90 days delinquent and still accruing of $360,000, which
were partially offset by a decrease in non-accruing loans of $298,000. The
increase between fiscal years was primarily the result of an increase in real
estate owned and other repossessed assets of $912,000 to $1.2 million at June
30, 2008 compared to $293,000 at June 30, 2007. Non-accrual loans decreased
between the periods by $576,000 while loans delinquent 90 days or more and
still accrual increased by $1,000. There are Small Business Administration
guarantees on at least 75% of $587,000 in gross balances of real estate owned.
Management believes the guarantees and existing reserves on real estate owned
will minimize losses on the disposal of these properties. During the year
ended June 30, 2008, the allowance for loan losses increased by $104,000, from
$2.7 million to $2.8 million, and the ratio of the allowance to gross loans
increased to 1.65% at June 30, 2008 from 1.59% at June 30, 2007.
The Company announced a stock repurchase plan for 50,000 shares of the
Company's common stock on July 3, 2008. The plan will terminate at the end of
the calendar year. No purchases have been made under the plan as of the date
of this release.
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;
results of examinations by our banking regulators; 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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2008 2007 2008 2007
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Operating Data:
Total interest income $ 3,586 $ 3,643 $ 14,828 $13,724
Total interest expense 1,568 2,007 7,451 7,354
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Net interest income 2,018 1,636 7,377 6,370
Provision for loan losses 711 146 1,291 426
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Net interest income after provision
for loan losses 1,307 1,490 6,086 5,944
Non-interest income 729 385 2,903 2,304
Non-interest expense 2,129 2,014 8,557 8,093
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Income (loss) before income tax (93) (139) 432 155
Income tax benefit (176) (146) 69 (117)
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Net income (loss) $ 83 $ 7 $ 363 $ 272
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Net income (loss) per share-basic $ 0.05 $ 0.01 $ 0.23 $ 0.18
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Net income (loss) per share-diluted $ 0.05 $ 0.01 $ 0.23 $ 0.18
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At June 30,
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Financial Condition Data: 2008 2007
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Total assets $249,232 $241,331
Loans receivable, net 167,035 158,993
Non-performing assets 3,879 3,541
Cash and cash equivalents, including
interest-bearing deposits 17,010 21,030
Investment securities 45,572 42,854
Customer deposits 194,593 190,090
Borrowed funds 26,648 24,103
Stockholders' equity 27,100 26,468
Book value per share $ 17.47 $ 17.07