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): January 28, 2008
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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
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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 January 28, 2008, First Bancshares, Inc. issued a news release announcing
earnings for the quarter ended December 31, 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 January 28, 2008.
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: January 28, 2008 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
Exhibit
Number Description of Exhibit
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99.1 Press Release of First Bancshares, Inc. dated January 28,
2008
FIRST BANCSHARES, INC. ANNOUNCES SECOND QUARTER FISCAL 2008 RESULTS
Mountain Grove, Missouri (January 28, 2008) First Bancshares, Inc.
("Company") (NASDAQ - FstBksh : FBSI), the holding company for First Home
Savings Bank ("Bank"), today announced earnings for the second quarter of its
fiscal year ending June 30, 2008.
For the quarter ended December 31, 2007, the Company had net income of
$87,000, or $0.05 per share basic and diluted, compared to net income of
$1,000, or $0.00 per share basic and diluted for the comparable period in
2006. The increase in net income for the quarter ended December 31, 2007
when compared to the prior year is attributable to an increase in net interest
income and an increase in non-interest income. These items were partially
offset by increases in the provision for loan losses, non-interest expense and
income taxes.
Net interest income increased by $202,000 during the quarter ended December
31, 2007 compared to the prior year. This was the result of an increase of
$391,000, or 11.4%, in interest income from $3.4 million in the fiscal 2007
second quarter to $3.8 million in the fiscal 2008 second quarter. The increase
in interest income was the result of an increase of $16.7 million in average
interest-earning assets during the quarter and an increase of 21 basis points
in the average yield on interest-earning assets. This was partially offset by
an increase of $189,000, or 10.5%, in interest expense from $1.8 million in
the second quarter of fiscal 2007 to $2.0 million in the comparable quarter of
fiscal 2008. The increase in interest expense was the result of an increase of
$12.3 million in interest-bearing liabilities and an increase of 15 basis
points in the cost of interest-bearing liabilities. The net interest margin
for the quarter ended December 31, 2007 was 3.22% compared to 3.09% for the
same quarter one year earlier.
There was an increase of $45,000 in non-interest income during the quarter
ended December 31, 2007 compared to the same quarter in the prior year. This
was the result of an increase in of $27,000 in fee income and a gain on the
sale of loans of $112,000 during the second quarter of fiscal 2008. There was
no gain on sale of loans during the quarter ended December 31, 2006 since the
Bank's loan production office in Springfield, Missouri did not open until
March 2007. These increases were partially offset by decreases in gain on the
sale of property, income from Bank Owned Life Insurance and other non-interest
income.
An analysis of the delinquent loans, non-performing loans and classified loans
resulted in a $145,000 provision for loan losses during the quarter ended
December 31, 2007 compared to a $130,000 provision based on the similar
analysis done for the quarter ended December 31, 2006. Non-interest expense
increased by $21,000 during the quarter ended December 31, 2007 compared to
the same quarter one year earlier. There were increases in professional fees,
deposit insurance premiums and other non-interest expenses which were
partially offset by decreases in compensation and benefits and occupancy and
equipment expense. The increase in income taxes was due primarily to the
increase in pre-tax income.
For the six months ended December 31, 2007, the Company had net income of
$312,000, or $0.20 per share basic and diluted, compared to net income of
$73,000, or $0.05 per share basic and diluted for the comparable period in
2006. The increase in net income for the six months ended December 31, 2007
when compared to the prior year is attributable to an increase in net interest
income, an increase in non-interest income and a decrease in the provision for
loan losses. These items were partially offset by increases in non-interest
expense and income taxes.
Net interest income increased by $274,000 during the six months ended December
31, 2007 compared to the prior year. This was the result of an increase of
$908,000, or 13.7%, in interest income from $6.6 million in the six months
ended December 31, 2006 to $7.6 million in the six months ended December 31,
2007. The increase in interest income was the result of an increase of $18.2
million in average interest-earning assets and an increase of 28 basis points
in the average yield on interest-earning assets during the fiscal 2008 period
compared to the same period a year earlier. This was partially offset by an
increase of $634,000, or 18.5%, in interest expense from $3.4 million in the
fiscal 2007 period to $4.1 million in the comparable fiscal 2008 period. The
increase in interest expense was the result of an increase of $15.0 million in
interest-bearing liabilities and an increase of 36 basis
points in the cost of interest-bearing liabilities. The net interest margin
for the six months ended December 31, 2007 was 3.10% compared to 3.12% for the
same six month period one year earlier.
There was an increase of $237,000, or 19.3%, in non-interest income during the
six months ended December 31, 2007 compared to the same period in the prior
year. This was the result of an increase in of $83,000 in fee income and a
gain on the sale of loans of $265,000 during the six months ended December 31,
2007. There was no gain on sale of loans during the six months ended December
31, 2006. These increases were partially offset by decreases in gain on the
sale of property, income from Bank Owned Life Insurance and other non-interest
income.
An analysis of the delinquent loans, non-performing loans and classified loans
resulted in a $153,000 provision for loan losses during the six months ended
December 31, 2007 compared to a $240,000 provision based on the similar
analysis done for the six months ended December 31, 2006. Non-interest expense
increased by $174,000, or 4.2%, during the six months ended December 31, 2007
compared to the same period one year earlier. There were increases in
occupancy and equipment expense, professional fees, deposit insurance premiums
and other non-interest expenses which were partially offset by a decrease in
compensation and benefits. The increase in income taxes was due primarily to
the increase in pre-tax income.
Total consolidated assets at December 31, 2007 were $243.4 million, compared
to $241.3 million at June 30, 2007, representing an increase of $2.1 million,
or 0.9%. Stockholders' equity at December 31, 2007 was $27.3 million, or
11.2% of assets, compared with $26.5 million, or 11.0% of assets, at June 30,
2007. Book value per common share increased to $17.57 at December 31, 2007
from $17.07 at June 30, 2007. The increase in equity was primarily
attributable to net income of $312,000 for the six months ended December 31,
2007 and to a positive change of $425,000, net of taxes, in the market value
of available-for-sale securities.
Net loans receivable decreased $261,000, or 0.2%, to $158.7 million at
December 31, 2007 from $159.0 million at June 30, 2007. 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 increased $1.9 million, or 1.0%,
to $192.0 million at December 31, 2007 from $190.1 million at June 30, 2007.
Non-performing assets decreased during the first six months of fiscal 2008 by
$164,000, to $3.4 million at December 31, 2007 from $3.5 million at June 30,
2007. Non-accrual loans decreased by $315,000, loans past due and continuing
to accrue interest decreased by $285,000, and real estate owned and
repossessed assets increased by $436,000. During the quarter ended December
31, 2007, the Bank also charged off loans totaling $621,000, the losses on
which had previously been provided for in the allowance for loan losses. There
were no charge offs during the quarter ended December 31, 2006.
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 beginning with the month ended October 31, 2007, the
Bank has prepared and sent reports to 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.
The Company currently does not currently have a stock repurchase plan in
place.
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 Six Months
Ended December 31, Ended December 31,
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2007 2006 2007 2006
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Operating Data:
Total interest income $ 3,808 $ 3,417 $ 7,552 $ 6,644
Total interest expense 1,996 1,807 4,068 3,434
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Net interest income 1,812 1,610 3,484 3,210
Provision for loan losses 145 130 152 240
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Net interest income after provision
for loan losses 1,667 1,480 3,332 2,970
Non-interest income 681 636 1,465 1,228
Non-interest expense 2,147 2,126 4,279 4,105
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Income (loss) before income tax 201 (10) 518 93
Income tax expense (benefit) 114 (11) 206 20
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Net income $ 87 $ 1 $ 312 $ 73
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Net income per share-basic $ 0.05 $ 0.00 $ 0.20 $ 0.05
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Net income per share-diluted $ 0.05 $ 0.00 $ 0.20 $ 0.05
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At At
December 31, June 30,
Financial Condition Data: 2007 2007
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Total assets $ 243,446 $ 241,331
Loans receivable, net 158,732 158,993
Non-performing assets 3,375 3,539
Cash and cash equivalents,
including interest-bearing
deposits 22,152 21,030
Investment securities 42,819 42,854
Customer deposits 191,991 190,090
Borrowed funds 23,136 24,103
Stockholders' equity 27,252 26,468
Book value per share $ 17.57 $ 17.07