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 September 30, 2009.
Net income available to common shareholders for the three months ended September 30, 2009 amounted to $693,000 or $0.23 per diluted share, compared to $335,000 or $0.11 per diluted share for the same quarter in 2008, an increase of $358,000 or $0.12 per diluted share.
Hoppy Cole, Chief Executive Officer, commented, "We are pleased to report an improvement in our third quarter earnings. Positive loan growth, improvement in our net interest margin, and a reduction in our operating expenses are the result of focused efforts by our employees to improve the bank's performance in a challenging economic environment."
The following are key achievements in the last three months ended September 30, 2009:
-- Total assets increased to $485,889,000 -- Total loans increased to $321,402,000 -- Net interest margin increased to 3.59% from 3.54% at June 30, 2009 -- Total borrowed funds decreased 9.6% to $32,063,000
Net Interest Income and Non-Interest Income Decreased
Net interest income for the quarter ended September 30, 2009, was $4.0 million, a $481,000 decrease compared to the third quarter in 2008. Most of this decline was caused by the decrease in loans of 4.4% over the last 12 months. Efforts are ongoing in relation to reducing the Company's funding costs. We have seen loan activity increase and funding costs decrease over the past several months and expect that to continue to improve this year. Non-interest income decreased for the third quarter of 2009 by $47,000 or 5.9% as compared to the third quarter of 2008.
Non-Interest Expense Decreased
Non-interest expense for the three months ended September 30 decreased to $3.7 million as compared to $4.1 million for the same period in 2008. This represents a decrease of 9.3% in non-interest expenses. This reflects an ongoing effort to reduce expenses while maintaining our current level of customer service. Non-interest expense for the nine months ended September 30 decreased $968,000 or 7.9% to $11.3 million as compared to $12.2 million for the nine months ended September 30, 2008. We achieved this overall decrease of $968,000 while our FDIC and OCC assessments reflected an increase of $388,000 over same period.
Total Assets, Net Loans and Deposits Comparison
Total assets were up $11.1 million, or 2.3%, between December 31, 2008, and September 30, 2009. Deposits saw an increase of $15.4 million or 4.1% over the same period. Total loans net of unearned discount were down $1.7 million, or 0.5%, between December 31, 2008, and September 30, 2009. The 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 slowed during the first quarter and total loans reflected an increase over the second and third quarters.
At September 30, 2009, The First Bancshares reported total loans of $321.4 million, total assets of $485.9 million, total deposits of $393.5 million and stockholders' equity of $43.2 million. Return on average assets was .58% and return on average equity was 6.95% for the quarter.
Asset Quality
Non-accrual loans increased between September 30, 2008, and September 30, 2009, from $3.3 million to $6.0 million. This is an increase from .98% of loans to 1.86%. The increase in the total amount of non-accrual loans is due to a slowing real estate market. Overall, nonperforming loans remain well below our peer group. We believe that our bank has been pro active in the identification and management of potential problem loans. We have increased our allowance for loan losses to 1.52% of total loans and believe that we are adequately reserved given current market conditions.
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 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 nine months ended Sept 30, ended Sept 30, 2009 2008 2009 2008 Interest income $ 6,501 $ 7,672 $ 19,775 $ 24,522 Interest expense 2,493 3,183 7,939 10,989 Net interest income 4,008 4,489 11,836 13,533 Provision for loan losses (36) 721 1,056 1,721 Net interest income after provision for loan losses 4,044 3,768 10,780 11,812 Non-interest income 748 795 2,107 2,472 Investment impairment exp 14 - 85 - Non-interest expense 3,707 4,085 11,255 12,224 Income before income taxes 1,071 478 1,547 2,060 Income taxes 301 143 405 596 Net income 770 335 1,142 1,464 Preferred Dividends 63 - 163 - Preferred Stock Accretion 14 - 43 - Net income applicable to Common Stock 693 335 936 1,464 EPS applicable to common shareholders-Basic $ .23 $ .11 $ .31 $ .49 EPS applicable to common shareholders-Diluted $ .23 $ .11 $ .31 $ .48 Dividends per share $ - $ .075 $ - $ .225
Sept 30, December 31, Sept 30, 2009 2008 2008 Total assets $ 485,889 $ 474,824 $ 489,456 Cash and due from banks 8,390 11,649 17,866 Federal funds sold 10,419 13,359 13,632 Investment securities 119,203 99,691 93,519 Loans, net of unearned interest 321,402 323,085 336,295 Allowance for loan losses as % of net loans 1.52% 1.50% 1.37% Loans past due 90 days And still accruing 381 1,732 604 Non-accrual loans 5,991 3,340 3,309 Deposits-interest bearing 344,766 320,485 335,986 Deposits-non interest bearing 48,730 57,594 55,894 Total deposits 393,496 378,079 391,880 Borrowed funds 32,063 46,027 47,255 Subordinated debentures 10,310 10,310 10,310 Stockholders' equity 43,180 36,568 35,983 Book value (per share) 12.64 12.23 12.03 Total shares outstanding 3,019,869 2,990,201 2,990,201
Source: The First Bancshares, Inc.