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 18, 2004
THE FIRST BANCSHARES, INC.
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(Exact name of registrant as specified in its charter)
MISSISSIPPI 33-94288 64-0862173
- -------------------------------------- ---------------- --------------------
(State or other jurisdiction of (Commission (IRS employer
incorporation) File Number) Identification No.)
6480 US Highway 98 West
Hattiesburg, Mississippi 39402
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (601) 268-8998
Not applicable
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(Registrant's former address of principal executive offices)
Exhibit 99.1 - Letter dated August 16, 2004, mailed to shareholders August 18, 2004.
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.
Dated: August 18, 2004
THE FIRST BANCSHARES, INC.
By: /s/ David E. Johnson
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Name: David E. Johnson
Title: President, CEO &
Chairman of the Board
Exhibit 99.1 to The First Bancshares, Inc. Form 8-K
The First Bancshares, Inc.
David E. Johnson
President, CEO & Chairman
of the Board
6480 US Highway 98 West
P.O. Box 15549
Hattiesburg, MS 39404
Phone: (601) 268-8998
Fax: (601) 296-9207
djohnson@TheFirstBank.com
August 16, 2004
Dear Shareholders:
I am pleased to announce that The First Bancshares, Inc. finished the first six months of 2004
with $181.6 million in assets compared to $165 million at 12-31-03. Total loans increased $23.7
million and deposits increased by $8.5 million.
After tax earnings for the first six months improved to $629 thousand compared to $560
thousand for the same period in 2003. Earnings per share improved to $.54.
Growth was achieved while at the same time decreasing salary, occupancy and other operating
costs. Part of this was achieved by the efficiencies derived by combining our two banks in the
first quarter. Costs related to consolidation were almost totally absorbed in the first and second
quarters.
Our Picayune office reached a break-even point after 12 months of operation. Picayune
currently has $10 million in loans and $7 million in deposits, and its operations are now housed
in a permanent facility that officially opened in May 2004.
We recently filed an application to open a branch in Pascagoula, Mississippi. We have already
opened a loan production office there and are pleased with the results. Based on early
estimates, we hope to reach the break-even point for Pascagoula operations within the first year.
Thank you for supporting our company through its start up and maturing process. I hope you
share the excitement that the board and I have when assessing our progress and opportunities.
Sincerely,
/s/ David E. Johnson
David E. Johnson
President, CEO &
Chairman of the Board
THE FIRST BANCSHARES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ amounts in thousands) (Unaudited)
June 30, December 31,
ASSETS 2004 2003
-------- --------
Cash and due from banks $ 4,555 $ 5,046
Interest-bearing deposits with banks 625 702
Federal funds sold 1,489 117
-------- --------
Total cash and cash equivalents 6,669 5,865
Securities held-to-maturity, at amortized cost 15 15
Securities available-for-sale, at fair value 21,609 31,281
Loans held for sale 3,193 1,562
Loans 137,590 113,680
Allowance for loan losses (1,356) (1,166)
-------- --------
LOANS, NET 136,234 112,514
Premises and equipment 8,706 8,365
Accrued income receivable 956 822
Cash surrender value 3,249 3,170
Other assets 1,005 1,347
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$181,636 $164,941
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing $ 24,635 $ 19,995
Time, $100,000 or more 27,187 27,558
Interest-bearing 78,435 74,145
-------- --------
TOTAL DEPOSITS 130,257 121,698
Interest payable 160 168
Borrowed funds 27,646 19,986
Subordinated debentures 7,217 7,217
Other liabilities 328 221
-------- --------
TOTAL LIABILITIES 165,608 149,290
SHAREHOLDERS' EQUITY:
Common stock, $1 par value. Authorized
10,000,000 shares; 1,191,659 issued
at June 30, 2004 and December 31, 2003. 1,192 1,192
Preferred stock, par value $1 per share,
10,000,000 shares authorized; no shares
issued or outstanding - -
Additional paid-in capital 12,949 12,949
Retained earnings 2,405 1,951
Accumulated other comprehensive income (loss) (54) 23
Treasury stock, at cost, 26,494 shares
at June 30, 2004 and December 31, 2003 (464) (464)
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TOTAL SHAREHOLDERS' EQUITY 16,028 15,651
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$181,636 $164,941
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THE FIRST BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
($ amounts in thousands except earnings per share)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2004 2003 2004 2003
-------- -------- -------- --------
INTEREST INCOME:
Loans, including fees $ 2,427 $ 2,517 $ 4,678 $4,949
Securities:
Taxable 140 133 318 292
Tax exempt 35 24 61 49
Federal funds sold 6 10 10 22
Other 3 20 28 41
-------- -------- -------- --------
TOTAL INTEREST INCOME 2,611 2,704 5,095 5,353
INTEREST EXPENSE:
Deposits 459 601 927 1,198
Other borrowings 277 219 535 443
-------- ------- -------- --------
TOTAL INTEREST EXPENSE 736 820 1,462 1,641
-------- ------- -------- --------
NET INTEREST INCOME 1,875 1,884 3,633 3,712
PROVISION FOR LOAN LOSSES 154 125 288 211
-------- -------- -------- --------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 1,721 1,759 3,345 3,501
NONINTEREST INCOME:
Service charges on deposit
accounts 377 345 725 673
Other service charges,
commissions and fees 110 103 183 203
Gain on sale of properties - - 152 -
-------- -------- -------- --------
TOTAL NONINTEREST INCOME 487 448 1,060 876
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NONINTEREST EXPENSES:
Salaries and employee
benefits 979 992 1,930 1,975
Occupancy and equipment
expense 282 306 568 593
Other operating expenses 481 540 953 967
-------- -------- ------- --------
TOTAL NONINTEREST EXPENSES 1,742 1,838 3,451 3,535
-------- -------- ------- --------
INCOME BEFORE INCOME TAXES 466 369 954 842
INCOME TAXES 164 124 325 282
-------- -------- ------- --------
NET INCOME $ 302 $ 245 $ 629 $ 560
======== ======== ======= ========
EARNINGS PER SHARE -
BASIC $ .26 $ .21 $ .54 $ .48
EARNINGS PER SHARE -
ASSUMING DILUTION .25 $ .20 $ .53 $ .46
DIVIDENDS PER SHARE $ - $ - $ .15 $ .10