Exhibit 99.1
The First Bancshares, Inc. Reports Earnings for First Quarter 2007
Announces Move to Quarterly Dividends
HATTIESBURG, Miss.--(BUSINESS WIRE)--April 25, 2007--The First Bancshares,
Inc. (Nasdaq: FBMS), holding company for The First, A National Banking
Association, (www.thefirstbank.com) today reported earnings for the Company for
the quarter ended March 31, 2007. The First Bancshares, Inc. also announced a
$.075 per share quarterly dividend. The record date of the dividend will be May
1, 2007 with a payable date of May 11, 2007. The Company is moving from an
annual to a quarterly dividend payment schedule for its shareholders. The
Company paid an annual dividend of $.30 per share in February 2007 for the
calendar year of 2006.
Earnings for First Quarter 2007
Earnings for the quarter ended March 31, 2007 amounted to $711,000 or $0.23
per fully diluted share, compared to $759,000 or $0.30 per fully diluted share
for the same quarter in 2006, a decrease of $0.07 per fully diluted share. More
stock outstanding, increased provision for loan losses due to loan growth and
early retirement of trust preferred debentures accounted for a $0.14 reduction
in earnings per share for the first quarter of 2007:
-- $0.06 reduction was due to more stock outstanding since the first
quarter of 2006. The Company issued 607,845 shares of stock since
March 31, 2006. New shares of 365,000 were issued @ $22.50 per share
for a capital infusion of $8.2 million, 109,181 shares issued in
conjunction with the merger of First National Bank of Wiggins and the
balance was issued due to the exercise of outstanding stock options.
-- An additional $0.06 reduction was due to an increased loan loss
provision expense of $246,000 as compared to the first quarter last
year. The additional provision was largely attributed to $20 million
in loan growth during the first quarter of 2007.
-- $0.02 reduction was due to the early retirement of higher costing
trust preferred debentures resulting in a charge of $93,000. The
retirement of the subordinated debentures during the quarter positions
the Company for future cost savings.
David E. Johnson, Chairman and Chief Executive officer, commented, "We are
starting 2007 with positive operational results. The decrease in earnings per
share compared to the same period in 2006 was largely due to more stock
outstanding and provisions for an increased loan portfolio. Our total assets
increased 43%, total deposits increased 49% and our net loans grew by 55%
compared to the first quarter of 2006. In addition, we have expanded to Gulfport
in Harrison County with a loan production office. Our location in Gulfport,
Mississippi will be a full service branch pending regulatory approval."
Mr. Johnson further stated that "The First is continuing to grow as
Mississippi rebuilds its residential and commercial infrastructure. We believe
that we have a great window of opportunity with our current leadership and
locations."
Further Results of the Quarter Ended March 31, 2007
Net Interest Income and Non Interest Income Increased
Net interest income for the quarter ended March 31, 2007, was $4.17
million, a $1.13 million increase compared to the first quarter in 2006.
Non-interest income increased for the first quarter of 2007 by $207 thousand as
compared to the first quarter of 2005. Non-interest expense increased $1.20
million to $3.51 million as compared to $2.31 million for the first quarter of
2005.
Total Assets, Net Loans and Deposits Increased
Total assets were up $133.2 million, or 43%, between March 31, 2006, and
March 31, 2007. The increase in assets from last year was funded by deposit
growth of $126.9 million or 49%. Total net loans were up $109.4 million, or 55%,
between March 31, 2006, and March 31, 2007. During 2006, our merger with First
National Bank of Wiggins contributed $17.6 million in loans and $44.2 million in
deposits toward the above mentioned growth.
At March 31, 2007, The First Bancshares reported total loans of $307.9
million, total assets of $444.6 million, total deposits of $385.9 million and
stockholder's equity of $32.9 million. Return on average assets was .66% and
return on average equity was 8.7% for the quarter.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is
the parent company of The First, A National Banking Association. Founded in
1996, The First is now ranked in the top 20 banks by asset size in Mississippi.
The First has operations in Hattiesburg, Laurel, Purvis, Picayune, Pascagoula,
Bay St. Louis, Wiggins and Gulfport, Mississippi. The Company's stock is traded
on NASDAQ Global Market under the symbol FBMS. Information is available on the
Company's website: www.thefirstbank.com
Forward Looking Statement
This news release contains statements regarding the projected performance
of The First Bancshares, Inc. and its subsidiary. These statements constitute
forward-looking information within the meaning of the Private Securities
Litigation Reform Act. Actual results may differ materially from the projections
provided in this release since such projections involve significant known and
unknown risks and uncertainties. Factors that might cause such differences
include, but are not limited to: competitive pressures among financial
institutions increasing significantly; economic conditions, either nationally or
locally, in areas in which the Company conducts operations being less favorable
than expected; and legislation or regulatory changes which adversely affect the
ability of the combined Company to conduct business combinations or new
operations. The Company disclaims any obligation to update such factors or to
publicly announce the results of any revisions to any of the forward-looking
statements included herein to reflect future events or developments. Further
information on The First Bancshares, Inc. is available in its filings with the
Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov.
THE FIRST BANCSHARES, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
($ amounts in thousands except earnings per share)
For the three months
ended March 31,
2007 2006
Interest income 7,513 4,843
Interest expense 3,344 1,802
Net interest income 4,169 3,041
Provision for loan losses 330 84
Net interest income after
provision for loan losses 3,839 2,957
Non-interest income 654 447
Non-interest expense 3,506 2,308
Income before income taxes 987 1,096
Income taxes 276 337
Net income $711 $759
Basic:
Earnings per share $.24 $.32
Diluted:
Earnings per share $.23 $.30
March 31, December March 31,
31,
2007 2006 2006
Total assets 444,641 417,769 311,437
Cash and due from banks 10,543 10,415 12,829
Federal funds sold 3,655 8,772 16,751
Investment securities 103,954 91,810 56,574
Loans, net of unearned interest 307,863 287,875 198,510
Deposits-interest bearing 321,334 293,070 202,113
Deposits-non interest bearing 64,596 58,652 56,896
Total deposits 385,930 351,722 259,009
Borrowed funds 19,914 20,827 25,159
Subordinated debentures 4,124 11,341 7,217
Stockholder's equity 32,931 32,365 18,756
Book value (per share) $11.04 $11.32 $7.90
Total shares outstanding 2,983,045 2,858,408 2,375,200
CONTACT: The First Bancshares, Inc.
David Johnson, Chief Executive Officer, 601-268-8998