Exhibit 99.1
The First Bancshares, Inc. Reports Record Earnings for the Second Quarter;
Quarterly Earnings Per Share Grow 100% to $0.42
HATTIESBURG, Miss.--(BUSINESS WIRE)--July 31, 2006--The First Bancshares,
Inc. (Nasdaq: FBMS), holding company for The First, A National Banking
Association, (www.thefirstbank.com) today reported record earnings for the
Company for the quarter ended June 30, 2006.
Earnings for the quarter ended June 30, 2006 amounted to $988 thousand, or
$0.42 per share, compared to $494 thousand or $0.21 per share for the same
quarter in 2005, an increase of $0.21 per share, or 100%.
Earnings for the six months ending June 30, 2006 amounted to $1.75 million
or $0.74 per share, compared to $859 thousand or $0.37 per share for the same
period in 2005, an increase of $0.37 per share, or 100%.
David E. Johnson, Chairman and Chief Executive officer, commented, "We are
continuing our strong 2006 with another quarter of exceptional earnings. This
marks our third consecutive quarter we have achieved record earnings. The
Company is growing profitably in its mature markets and experiencing exceptional
growth in its new markets. We believe we are continuing to offer our
shareholders an excellent return on their investment."
Further Results of the Quarter Ended June 30, 2006
Return on average assets and average equity for the quarter ended June 30,
2006, was 1.25% and 21.28% compared to .83% and 11.78% for the quarter ended
June 30, 2005.
Net interest income for the quarter ended June 30, 2006, was $3.53 million,
a $1.09 million increase compared to the second quarter in 2005. Non-interest
income increased for the second quarter of 2006 by $243 thousand as compared to
the second quarter of 2005. $224 thousand of the $243 thousand increase is
attributable to a recorded gain on the sale of a parcel of real estate.
Non-interest expense increased $762 thousand to $2.66 million as compared to
$1.90 million for the second quarter of 2005.
Net interest income for the six months ended June 30, 2006, increased $1.90
million over the same period in 2005. Non-interest income increased to $1.12
million from $892 thousand for the six months ended June 30, 2006 as compared to
the same period in 2005 while non interest expense also increased to $4.97
million from $3.84 million.
Total assets were up $81.5 million, or 33%, between June 30, 2005, and June
30, 2006. The increase in assets from last year was funded by deposit growth of
$72.1 million or 37%. Total net loans were up $41.6 million, or 21%, between
June 30, 2005, and June 30, 2006.
At June 30, 2006, The First Bancshares reported total loans of $238.0
million, total assets of $329.2 million, total deposits of $268.6 million and
shareholders' equity of $19.5 million.
Merger with First National Bank of Wiggins
As announced previously, The First has signed a definitive agreement with
First National Bank of Wiggins, south of Hattiesburg and within the Bank's
current footprint. The First National Bank of Wiggins has $45 million in
deposits and $20 million in loans and the merger has a transaction value of $4.2
million. David E. Johnson, Chairman and Chief Executive Officer, stated, "Our
merger with First National Bank of Wiggins is on-track and we anticipate
completing it in September of 2006."
Listing on NASDAQ
The First met the listing requirements for NASDAQ Capital Market and was
traded on NASDAQ for the first time at the Market's open on May 26, 2006.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is
the parent company of The First, A National Banking Association. Founded in
1996, The First operates 8 offices with locations in Hattiesburg, Laurel,
Purvis, Picayune, Pascagoula and Bay St. Louis, Mississippi. The Company's stock
is traded on NASDAQ under the symbol FBMS.
Forward-Looking Statements
This news release contains statements regarding the projected performance
of The First Bancshares, Inc. and its subsidiary. These statements constitute
forward-looking information within the meaning of the Private Securities
Litigation Reform Act. Actual results may differ materially from the projections
provided in this release since such projections involve significant known and
unknown risks and uncertainties. Factors that might cause such differences
include, but are not limited to: competitive pressures among financial
institutions increasing significantly; economic conditions, either nationally or
locally, in areas in which the Company conducts operations being less favorable
than expected; and legislation or regulatory changes which adversely affect the
ability of the combined Company to conduct business combinations or new
operations. The Company disclaims any obligation to update such factors or to
publicly announce the results of any revisions to any of the forward-looking
statements included herein to reflect future events or developments. Further
information on The First Bancshares, Inc. is available in its filings with the
Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov.
THE FIRST BANCSHARES, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
($ amounts in thousands except earnings per share)
For the three months For the six months
ended June 30, ended June 30,
2006 2005 2006 2005
Interest income 5,548 3,718 10,392 7,020
Interest expense 2,014 1,274 3,816 2,347
Net interest income 3,534 2,444 6,576 4,673
Provision for loan losses 209 233 294 437
Net interest income after
provision for loan losses 3,325 2,211 6,282 4,236
Non-interest income 676 433 1,123 892
Non-interest expense 2,662 1,900 4,969 3,837
Income before income taxes 1,339 744 2,436 1,291
Income taxes 351 250 688 432
Net income $ 988 $ 494 $ 1,748 $ 859
Basic:
Earnings per share $ .42 $ .21 $ .74 $ .37
Diluted:
Earnings per share $ .39 $ .20 $ .69 $ .35
June 30, December 31, June 30,
2006 2005 2005
Total assets 329,229 294,390 247,769
Cash and due from banks 13,510 12,144 6,591
Federal funds sold 365 15,785 1,240
Investment securities 58,754 50,660 28,491
Loans, net of unearned interest 240,652 200,310 198,510
Deposits-interest bearing 213,495 192,364 163,273
Deposits-non interest bearing 55,142 49,585 33,272
Total deposits 268,637 241,949 196,545
Borrowed funds 28,831 25,465 25,507
Subordinated debentures 11,217 7,217 7,217
Stockholder's equity 19,459 18,478 17,547
Book value (per share) $ 8.18 $ 7.70 $ 7.32
Total shares outstanding 2,379,630 2,425,039 2,397,006
CONTACT: The First Bancshares, Inc.
David Johnson, 601-268-8998