HATTIESBURG, Miss.--(BUSINESS WIRE)-- 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, 2009.
Earnings for the three months ended March 31, 2009 amounted to $139,000 or $0.05 per diluted share, compared to $790,000 or $0.26 per diluted share for the same quarter in 2008, a decrease of $0.21 per diluted share.
David E. Johnson, Chairman and Chief Executive officer, commented, "This is by far the most challenging economy our company has faced. The Company has been focusing on adjusting our balance sheet for over a year. We have lessened our exposure to residential construction and commercial real estate in general. While our quarterly earnings are down, our capital remains strong. We are considered well-capitalized by our regulatory standards. We further strengthened capital with the addition of Treasury Capital Purchase Program preferred stock in the amount of $5 million."
Net Interest Income and Non Interest Income Decreased
Net interest income for the quarter ended March 31, 2008, was $3.85 million, a $838,000 decrease compared to the first quarter in 2008. Most of this decrease was caused by the decrease in our loans over the last year. The effort to reduce the Company's funding costs will continue as certificates of deposits are being repriced daily. We also expect loan activity to pick up this year. Non-interest income decreased for the first quarter of 2009 by $78 thousand as compared to the first quarter of 2008.
Non Interest Expense Decreased
Non-interest expense decreased $300,000 to $3.66 million as compared to $3.96 million for the first quarter of 2008. This represents a decrease of 7.6% in non-interest expenses. This reflects an ongoing effort to reduce expenses while maintaining our current level of customer service.
Total Assets, Net Loans and Deposits Comparison
Total assets were up $8.2 million, or 1.7%, between December 31, 2008, and March 31, 2009. Deposits saw an increase of $12.7 million or 3.4% over the same period. Total loans net of unearned were down $4.2 million, or 1.3%, between December 31, 2008, and March 31, 2009. The continued decline in our loan portfolio is due in part to the slow down of the economy and a conscious effort to reduce our exposure to residential construction and commercial real estate. The decline in loans did slow in the first quarter.
Between March 31, 2008 and March 31, 2009, total assets were down $49.9 million, or 9.4%. Deposits saw a decline of $41.1 million or 9.5% over the same period. Total loans net of unearned were down $46.6 million, or 12.7%, between March 31, 2008, and March 31, 2009.
At March 31, 2009, The First Bancshares reported total loans of $318.9 million, total assets of $483.0 million, total deposits of $390.8 million and stockholder's equity of $42.2 million. Return on average assets was .12% and return on average equity was 1.4% for the quarter.
Trust Preferred Securities
During a recent examination by our banking regulators, the Company was asked to hire an independent outside expert to evaluate our trust preferred securities for other than temporary impairment. The financials represented for the quarter ended March 31, 2009 may change dependent on the results of the evaluation.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. 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 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 the three months ended March 31, 2009 2008 Interest income $6,666 $8,682 Interest expense 2,812 3,991 Net interest income 3,854 4,691 Provision for loan losses 628 366 Net interest income after provision for loan 3,226 4,325 losses Non-interest income 684 762 Non-interest expense 3,658 3,962 Income before income taxes 252 1,125 Income taxes 61 335 Net income 191 790 Preferred Dividends 38 - Preferred Stock Accretion 14 - Net income applicable to Common Stock 139 790 Earnings per share from continuing $.06 $.26 operations - Basic Earnings per share from continuing $.06 $.26 operations - Diluted Earnings per share available to common $.05 $.26 shareholders - Basic Earnings per share available to common $.05 $.26 shareholders - Diluted March 31, December 31, March 31, 2009 2008 2008 Total assets 483,034 474,824 532,886 Cash and due from banks 13,053 11,649 14,057 Federal funds sold 29,934 13,359 39,180 Investment securities 95,163 99,691 86,994 Loans, net of unearned interest 318,925 323,085 365,525 Deposits-interest bearing 340,195 320,485 371,516 Deposits-non interest bearing 50,593 57,594 60,350 Total deposits 390,788 378,079 431,866 Borrowed funds 35,508 46,027 49,720 Subordinated debentures 10,310 10,310 10,310 Stockholder's equity 42,242 36,568 37,485 Book value (per share) $12.44 $12.23 $12.54 Total shares outstanding 2,993,631 2,990,201 2,989,401
Source: The First Bancshares, Inc.