First Bancshares, Inc. Announces Third Quarter Fiscal 2013 Results

Fri Apr 19, 2013 1:49pm EDT

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MOUNTAIN GROVE, Mo., April 19, 2013 (GLOBE NEWSWIRE) -- First Bancshares, Inc. (OTCQB:FBSI), the holding company for First Home Savings Bank ("Bank"), today announced its financial results for the third quarter of its fiscal year ending June 30, 2013. All data as of March 31, 2013 and for the three and nine months then ended are unaudited.

For the quarter ended March 31, 2013, the Company had net income of $141,000, or $0.09 per share - diluted, compared to a net loss of $584,000, or $0.38 per share - diluted for the quarter ended March 31, 2012. The increase in net income for the quarter ended March 31, 2013 compared to a net loss of $584,000 for the quarter ended March 31, 2012 is attributable to a $80,000 increase in non-interest income, a $26,000 increase in gain on the sale of investments, a $506,000 decrease in non-interest expense and a $209,000 decrease in loan loss provision. This was partially offset by a decrease in net interest income of $96,000.

During the quarter ended March 31, 2013, net interest income decreased by $96,000 or 7.5%, to $1.2 million from $1.3 million during the quarter ended March 31, 2012. The decrease was the result of a decrease in interest income of $153,000, or 9.3%, which was partially offset by a decrease in interest expense of $57,000, or 15.6%. The decrease in interest income and interest expense was primarily the result of a decrease in market interest rates between the two periods.

During the quarter ended March 31, 2013, there was no provision for loan losses, compared to a provision of $209,000 during the quarter ended March 31, 2012. This decrease is attributable to classified assets decreasing from $7.5 million at March 31, 2012 to $5.1 million at March 31, 2013.The allowance for loan losses was $1.7 million, or 1.7% of gross loans at March 31, 2013, compared to $1.8 million or 1.86% of gross loans at June 30, 2012.

During the quarter ended March 31, 2013, gains on the sale of investments were $42,000, compared $16,000 during the quarter ended March 31, 2012. The increase during the quarter is attributable to the gains recognized from the sale of mortgage-backed securities and collateralized mortgage obligations that have experienced faster than normal prepayments.

Non-interest income increased by $80,000 to $238,000 during the quarter ended March 31, 2013 from $158,000 during the quarter ended March 31, 2012. This change was the result of a decrease in loss on sale of property and equipment of $72,000 and an increase in other non-interest income of $8,000.

Non-interest expense decreased by $507,000, or 27.7% to $1.3 million for the quarter ended March 31, 2013, compared to $1.8 million for the quarter ended March 31, 2012. This decrease reflects a decrease of $195,000 in salaries and employee benefits, a decrease of $52,000 in premises and fixed assets, a decrease of $85,000 in professional fees (legal, accounting and consulting), a decrease of $62,000 in other real estate owned ("OREO") expenses and a decrease of $113,000 in other non-interest expenses.

For the nine months ended March 31, 2013, the Company had a net loss of $209,000, or $0.13 per share - diluted, compared to a net loss of $1.5 million or $0.99 per share - diluted for the nine months ended March 31, 2012. The decrease in the net loss for the nine months ended March 31, 2013 compared to the nine months ended March 31, 2012 is attributable to a decrease of $282,000 in provision for loan losses, an increase of $497,000 in non-interest income, an increase of $193,000 in gains on sale of investments, a decrease of $626,000 in non-interest expense and a decrease of $85,000 in tax expense. This was partially offset by a decrease of $358,000 in net interest income.

During the nine months ended March 31, 2013, net interest income decreased by $358,000 or 9.0% to $3.6 million from $4.0 million during the nine months ended March 31, 2012. The decrease was the result of a decrease in interest income of $$559,000, or 10.9%, which was partially offset by a decrease in interest expense of $201,000 or 17.5%.

During the nine months ended March 31, 2013, there was no provision for loan losses, compared to a provision of $282,000 during the nine months ended March 31, 2012, which was primarily the result of a decrease in classified assets. Classified assets decreased $2.4 million from $7.5 million at March 31, 2012 to $5.1 million at March 31, 2013. 

Gains on the sale of investments increased by $193,000 to $306,000 during the nine months ended March 31, 2013 from $113,000 during the nine months ended March 31, 2012. The increase is attributable to the gains recognized from the sale of mortgage-backed securities and collateralized mortgage obligations that have experienced faster than normal prepayments. 

Non-interest income improved by $497,000 to $520,000 during the nine months ended March 31, 2013 from $23,000 during the nine months ended March 31, 2012. This change was the result of a decrease in loss on sale of property and equipment of $475,000. Other non-interest income items increased $22,000.

Non-interest expense decreased by $626,000 to $4.7 million during the nine months ended March 31, 2013 compared to $5.3 million during the nine months ended March 31, 2012. This was the result of a decrease of $312,000 in salaries and employee benefits, a decrease of $83,000 in premises and fixed assets, and a decrease of $251,000 in professional fees (legal, accounting and consulting). This was partially offset by an increase of $19,000 in other non-interest expenses. Included in the Company's salaries and employee benefits expense for the nine months ended March 31, 2013 is a one-time early retirement package with an expense of $186,000. 

Total consolidated assets at March 31, 2013 were $196.6 million, compared to $193.4 million at June 30, 2012, representing an increase of $3.2 million, or 1.6%. Stockholders' equity at March 31, 2013 was $15.9 million, or 8.1% of assets, compared with $16.3 million, or 8.4% of assets at June 30, 2012. Book value per common share decreased to $10.24 at March 31, 2013 from $10.53 at June 30, 2012. The $461,000, or 2.8% decrease in equity was primarily attributable to a net loss of $209,000 for the nine months ended March 31, 2013 and a decrease in the market value of available-for-sale securities, net of income taxes of $252,000 during the nine months ended March 31, 2013.

Net loans receivable increased $1.2 million, or 1.2%, to $96.7 million at March 31, 2013 from $95.5 million at June 30, 2012. Deposits decreased $252,000, or 0.2%, to $165.6 million at March 31, 2013 from $165.9 million at June 30, 2012. Retail repurchase agreements, which are included in borrowed funds, increased $349,000, or 5.4%, to $6.8 million at March 31, 2013 from $6.4 million at June 30, 2012.

First Bancshares, Inc. is the holding company for First Home Savings Bank, an FDIC insured savings bank chartered by the State of Missouri that conducts business from its home office in Mountain Grove, Missouri and eight full service offices in Marshfield, Ava, Gainesville, Sparta, Springfield, Crane, Kissee Mills and Rockaway Beach, Missouri.

The Company and First Home Savings Bank, may from time to time make written or oral "forward-looking statements," including statements contained 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; results of examinations by our bank regulators, our compliance with the Company's Order to Cease and Desist, 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. 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.

First Bancshares, Inc. and Subsidiaries
Financial Highlights
(In thousands, except per share amounts)
         
  Quarter Nine Months
  Ended March 31, Ended March 31,
  2013 2012 2013 2012
Operating Data:        
         
Total interest income  $ 1,488  $ 1,641  $ 4,580  $ 5,139
Total interest expense 308 365 950 1,151
Net interest income 1,180 1,276 3,630 3,988
Provision for loan losses  0 209 0 282
Net interest income (loss) after provision for loan losses 1,180 1,067 3,630 3,706
Gain on sale of investments 42 16 306 113
Non-interest income 238 158 520 23
Non-interest expense 1,319 1,825 4,665 5,291
Income (loss) before income tax  141 (584) (209) (1,449)
Income tax expense (benefit) 0 0 0 85
Net income (loss)  $ 141  $ (584)  $ (209)  $ (1,534)
Net income (loss) per share-basic  $ 0.09  $ (0.38)  $ (0.13)  $ (0.99)
Net income (loss) per share-diluted  $ 0.09  $ (0.38)  $ (0.13)  $ (0.99)
         
   At   At     
   March 31,   June 30,     
Financial Condition Data: 2013 2012    
         
Total assets  $ 196,591  $ 193,417    
Loans receivable, net 96,678 95,521    
Cash and cash equivalents  8,104 12,658    
Investment securities 76,669 73,845    
Deposits 165,606 165,858    
         
Borrowed funds  13,195 9,846    
Stockholders' equity 15,874 16,335    
Book value per share  $ 10.24  $ 10.53    
CONTACT: R. Bradley Weaver, President and CEO - (417) 926-5151