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 31, 2007
FIRST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Missouri 000-22842 43-1654695
- ---------------------------- ------------ ----------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File number) Identification No.)
142 East First Street, Mountain Grove, Missouri 65711
----------------------------------------------- -------
(Address of principal executive office) (Zip code)
Registrant's telephone number, including are code: (417) 926-5151
NA
-----------------------------------------------------------------
(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 October 31, 2007, First Bancshares, Inc. issued a news release announcing
earnings for the quarter ended September 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 October 31,
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: October 31, 2007 FIRST BANCSHARES, INC.
/s/Ronald J. Walters
--------------------------------
Ronald J. Walters
Senior Vice President and Chief Financial
Officer
(Principal Financial and Accounting
Officer)
Exhibit Index
-------------
Exhibit
Number Description of Exhibit
- ------ ----------------------
99.1 Press Release of First Bancshares, Inc. dated October 31, 2007
FIRST BANCSHARES, INC. ANNOUNCES FIRST QUARTER FISCAL 2008 RESULTS
Mountain Grove, Missouri (October 31, 2007) - First Bancshares, Inc. (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, 2008.
For the quarter ended September 30, 2007, the Company had net income of
$225,000, or $0.15 per share - diluted, compared to net income of $72,000, or
$0.04 per share - diluted for the comparable period in 2006. The increase in
net income for the quarter ended September 30, 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 $73,000 during the quarter ended September
30, 2007 compared to the prior year. This was the result of an increase of
$519,000, or 16.1%, in interest income from $3.2 million in the fiscal 2007
first quarter to $3.7 million in the fiscal 2008 first quarter. This was
offset by an increase of $446,000, or 27.4%, in interest expense from $1.6
million in the first quarter of fiscal 2007 to $2.1 million in the comparable
quarter of fiscal 2008. The increase in interest income was the result of an
increase of $23.2 million in average interest-earning assets during the
quarter and an increase of 26 basis points in the average yield on
interest-earning assets. The increase in interest expense was the result of
an increase of $17.0 million in interest-bearing liabilities and an increase
of 58 basis points in the cost of interest-bearing liabilities.
There was an increase of $193,000 in non-interest income during the quarter
ended September 30, 2007 compared to the prior year. This was the result of an
increase in of $56,000 in fee income and a gain on the sale of loans of
$153,000 during the first quarter of fiscal 2008. There was no gain on sale of
loans during the quarter ended September 30, 2006 since the loan production
office 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. A review of the delinquent loans,
non-performing loans and classified loans resulted in a smaller provision for
loan losses during the quarter ended September 30, 2007 than was the case
based on the similar review done for the quarter ended September 30, 2006.
Non-interest expense increased by $153,000 during the quarter ended September
30, 2007 compared to the same quarter one year earlier. There were increases
in occupancy and equipment expense, due to the operations of the loan
production office and costs related to systems upgrades which were done during
fiscal 2007, professional fees, and deposit insurance premiums, which resulted
from an increase in assessments for coverage. The increase in income taxes was
due primarily to the increase in pre-tax income.
Total consolidated assets at September 30, 2007 were $245.1 million, compared
to $241.3 million at June 30, 2007, representing an increase of $3.8 million,
or 1.6%. Stockholders' equity at September 30, 2007 was $26.9 million, or
11.0% of assets, compared with $26.5 million, or 11.0% of assets, at June 30,
2007. Book value per common share increased to $17.34 at September 30, 2007
from $17.07 at June 30, 2007. The increase in equity was primarily
attributable to net income of $225,000 for the quarter and to a positive
change of $173,000, net of taxes, in the market value of available-for-sale
securities.
Net loans receivable decreased $1.7 million, or 1.1%, to $157.3 million at
September 30, 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 $3.6 million, or 1.9%,
to $193.7 million at September 30, 2007 from $190.1 million at June 30, 2007.
Non-performing assets increased during the first fiscal quarter by $796,000.
This was primarily the result of loans totaling $866,000 with four different
borrowers becoming non-performing during the quarter. The first of the loans
is collateralized by a small resort property. The second is collateralized by
equipment related to a recycling business. The third is a floor plan
arrangement for a used car automobile dealer. The fourth is a large home
equity line of credit. All of these loans became non-performing during the
quarter ended September 30, 2007 but all had been identified as loans of
concern at June 30 2007. Based on its analysis of these four credits, as well
as, all other delinquent loans, non-performing loans and classified loans,
management believes that the Company's allowance for loan losses is
currently adequate to cover losses, including those related to these loans.
The Bank, which currently operating under a Memorandum of Understanding
("MOU") with the Office of Thrift Supervision (the "OTS"), has completed and
submitted to the OTS on October 29, 2007, a three-year business plan. The
business plan was to be submitted to the OTS by October 31, 2007, which was an
extended due date, and was the final item related to the MOU to be completed.
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
Ended September 30,
----------------------------
2007 2006
----------- -----------
Operating Data:
Total interest income $ 3,745 $ 3,226
Total interest expense 2,072 1,626
----------- ----------
Net interest income 1,673 1,600
Provision for loan losses 8 110
----------- ----------
Net interest income after provision
For loan losses 1,665 1,490
Non-interest income 785 592
Non-interest expense 2,132 1,979
----------- ----------
Income before income tax 318 103
Income tax expense 93 31
----------- ----------
Net income $ 225 $ 72
=========== ==========
Net income per share-basic $ 0.15 $ 0.04
=========== ==========
Net income per share-diluted $ 0.15 $ 0.04
=========== ==========
At At
September 30, June 30,
Financial Condition Data: 2007 2007
------------ ----------
Total assets $ 245,096 $ 241,331
Loans receivable, net 157,272 158,993
Non-performing assets 4,131 3,335
Cash and cash equivalents, including
interest-bearing deposits 19,187 21,030
Investment securities 49,497 42,854
Customer deposits 193,729 190,090
Borrowed funds 23,684 24,103
Stockholders' equity 26,891 26,468
Book value per share $ 17.34 $ 17.07