Exhibit 99.1
The First Bancshares, Inc. Reported Increased Earnings and Quarterly Dividend
HATTIESBURG, Miss.--(BUSINESS WIRE)--Oct. 24, 2007--The First Bancshares,
Inc. (NASDAQGS: FBMS), holding company for The First, A National Banking
Association, (www.thefirstbank.com) today reported increased earnings for the
third quarter which ended September 30, 2007. The company also announced a $.075
per share quarterly dividend. The record date of the dividend will be November
8, 2007 with a payable date of November 20, 2007. The Company has also announced
the purchase of a bank building from Regions Financial Corporation as part of
Regions/AmSouth merger. This facility is located on S. 40th Avenue in
Hattiesburg, MS and is approximately 12,000 square feet.
Earnings for the three months ended September 30, 2007 were $ 1,293,000, a
76.8% increase from earnings of $731,000 in the comparable quarter in 2006.
Earnings for the third quarter of 2007 were up $181,000 or 16.2%, from the third
quarter of 2007. Nine month earnings for the period ended September 30, 2007
were $3,116,000 compared to $2,479,000 for the comparable period in 2006, an
increase of 25.7%.
David E. Johnson, CEO stated, "We are pleased to announce a 25.7% increase
in our earnings over the comparable nine month period in 2006. We have been able
to increase our earnings while expanding our footprint in South Mississippi. We
are very excited about our purchase of the Regions building on S. 40th Avenue.
This purchase will allow us to further expand on our current retail presence in
the diverse Hattiesburg, MS marketplace."
The following are key achievements in the last nine months ended September
30, 2007:
-- Total loans increased 28.2% to $368,958 with a 26.0% increase in
commercial loans.
-- Total deposits increased 11.7% to $392,843 with an 8.5% increase in
non-interest bearing deposits.
-- Net interest income increased 33.4%.
-- Return on Average Equity was 12.38%
-- Company purchased land in Biloxi, Mississippi.
Deposits
Total deposits increased to $392,843 in the period ended September 30,
2007, an 11.7% increase over the period ended December 31, 2006. Deposits grew
24.9% over the comparable nine month period in 2006. This growth rate is
attributed to superior performance in all of our branches in attracting new
deposits and continued growth in our newest locations in southern Mississippi.
Loans
Total loans increased 28.2% to $368,958 for the nine month period ended
September 30, 2007 compared to the period ended December 31, 2006. Loans
increased 26.9% over the comparable nine month period in 2006. The Company is
continuing to experience growth in all categories of the loan portfolio.
Net Income and Earnings Per Share
Net income was $1,293,000 and $3,116,000 for the three and nine months
ended September 30, 2007, increases of 76.8% and 25.7% over comparable periods
in 2006. Net Interest income was increased 33.4% over the last nine months and
non-interest income increased 42.6% in that same period. Non-interest income was
$2,327,000 in the nine month period ending September 30, 2007 compared to
$1,632,000. The Company has maintained a net interest margin of 4.31% in a
challenging interest rate environment.
Fully-diluted earnings per share for the three month period ended September
30, 2007 amounted to $0.42 per share a 44.8% increase from the comparable period
in 2006 of $0.29. Fully-diluted earnings per share amounted to $1.02 for the
nine month period ended September 30, 2007, a 4.1% increase from the comparable
period in 2006 of $0.98. The Company increased its outstanding shares by 608,254
in 2006. These additional shares account for a $0.11 decrease in earnings per
share compared to the same period in 2006. The Company reported a gain on the
sale of property which account for a $0.06 increase in earnings per share
compared to the same period in 2006.
-- A reduction of $0.11 was due to 608,254 additional shares of stock
issued since the third quarter of 2006. New shares of 365,000 were
issued @ 22.50 per share for a capital infusion of $8.2 million and
109,181 shares were issued in conjunction with the merger of First
National Bank of Wiggins and the balance was issued due to the
exercise of outstanding stock option.
-- A $0.06 increase is attributable to a gain on the sale of property
which was recognized during the third quarter of 2007. This event
increased earnings for the comparable period in 2007.
Dividends
The First has consistently increased dividends. In 2004 the annual dividend
was $0.08, $0.10 in 2005 and $0.16 in 2006 and $0.30 in 2007. At the beginning
of the year, the Company instituted a policy of quarterly dividends and the
current quarterly dividend is $0.075 with $0.225 paid in the first nine months
of 2007.
The First Bancshares, Inc. headquartered in Hattiesburg, Mississippi is the
holding company for The First, a National Banking Association. The First
operates ten branches in southern Mississippi. The First Bancshares has $492,000
million in assets and has 2,987,884 shares outstanding traded on the NASDAQ
Global Market with the symbol of FBMS. For more information, go to
www.thefirstbank.com.
Forward Looking Statement
This news release contains statements regarding the projected performance
of The First Bancshares, Inc. and it subsidiary. These statements constitute
forward-looking information within the meaning of the Private Securities
Litigation Reform Act. Actual results may differ materially from the projections
provided in this release since such projections involve significant known and
unknown risks and uncertainties. Factors that might cause such differences
include, but are not limited to: competitive pressures among financial
institutions increasing significantly; economic conditions, either nationally or
locally, in areas in which the Company conducts operations being less favorable
than expected; and legislation or regulatory changes which adversely affect the
ability of the combined Company to conduct business combinations or new
operations. The Company disclaims any obligation to update such factors or to
publicly announce the results of any revisions to any of the forward-looking
statements included herein to reflect future events or developments. Further
information on The First Bancshares, Inc. is available in its filings with the
Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov.
THE FIRST BANCSHARES, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
($ amounts in thousands except earnings per share)
For three months For nine months
ended September 30, ended September 30,
2007 2006 2007 2006
Interest income 8,909 6,079 24,641 16,471
Interest expense 3,987 2,382 10,934 6,198
Net interest income 4,922 3,697 13,707 10,273
Provision for loan losses 316 289 966 583
Net interest income after
provision for loan losses 4,606 3,408 12,741 9,690
Non-interest income 966 509 2,327 1,632
Non-interest expense 3,783 2,864 10,839 7,833
Income before income taxes 1,789 1,053 4,229 3,489
Income taxes 496 322 1,113 1,010
Net income $ 1,293 $ 731 $ 3,116 $ 2,479
Basic:
Earnings per share $ .43 $ .31 $ 1.05 $ 1.05
Diluted:
Earnings per share $ .42 $ .29 $ 1.02 $ .98
Dividends per share $ .075 $ - $ .45 $ .16
Sept. 30, Dec. 31, Sept. 30,
2007 2006 2006
Total assets 491,729 417,769 361,764
Cash and due from banks 9,313 10,415 18,738
Federal funds sold 2,459 8,772 11,543
Investment securities 88,398 91,810 63,900
Loans, net of unearned interest 368,958 287,875 251,072
Deposits-interest bearing 329,180 293,070 239,955
Deposits-non interest bearing 63,663 58,652 62,246
Total deposits 392,843 351,722 302,201
Borrowed funds/Reverse Repo 51,360 20,827 26,371
Subordinated debentures 10,310 11,341 11,217
Stockholder's equity 34,758 32,365 20,677
Book value (per share) $ 11.63 $ 11.32 $ 8.69
Total shares outstanding 2,987,884 2,858,408 2,379,630
CONTACT: The First Bancshares, Inc.
David Johnson, CEO, 601-268-8998
or
DeeDee Lowery, CFO, 601-268-8998