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 quarter and the year ended December 31, 2009. The First Bancshares, Inc. also announced a special dividend of $0.05 per common share as well as a quarterly dividend of $0.025 per common share. The record date of both dividends will be February 11, 2010 with a payable date of February 26, 2010.
Net income available to common shareholders for the three months ended December 31, 2009 amounted to $525,000, or $.17 per diluted share, compared to $385,000 or $.13 per diluted share for the same quarter in 2008, an increase of $140,000 or 36.4%.
Net income available to common shareholders for the year ended December 31, 2009, amounted to $1,461,000, a 21.0% decrease from the $1,849,000 reported for the year ended December 31, 2008.
M. Ray "Hoppy" Cole, President & Chief Executive Officer, commented, "Forty-two (42) consecutive quarters of profit speak well for our Company. Additionally, the last two quarters of 2009 showed increased earnings over the comparable two quarters of 2008. Shareholders will also be pleased by the Board of Director's decision to declare a dividend to our common shareholders. Continued 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."
The following are key highlights for the last twelve months ended December 31, 2009:
-- Reduced expenses for 2009 as compared to 2008 by 4.2% -- Net interest margin increased to 3.67% from 3.59% at September 30, 2009 -- Total borrowed funds decreased 30.4% to $32.0 million. -- Began construction in December of our 9,000 square foot facility in Gulfport, Ms.
Net Interest Income and Non-Interest Income
Net interest income for the quarter ended December 31, 2009 increased to $4.2 million compared to $4.0 million for the same quarter in 2008. This increase is a result of the slight growth in loans experienced during the second and third quarters of 2009 as well as continued decreases in our funding costs over the last two quarters. Non-interest income increased for the fourth quarter of 2009 by $63,000 or 9.1% compared to the fourth quarter of 2008.
Non-Interest Expense Decreased
Non-interest expense decreased $674,000 or 4.2% during the year ended December 31, 2009. This reflects an ongoing effort to reduce expenses while not compromising our high level of customer service. We achieved this overall decrease of $674,000 despite our FDIC and OCC assessments increasing $547,000 over the same period.
Total Assets, Net Loans and Deposits Comparison
Total assets were up $2.7 million or .6% between December 31, 2008 and December 31, 2009. Total deposits increased of $5.7 million or 1.5% over the same period. Total loans net of unearned discount and allowance for loan losses decreased $4.3 million or 1.3% between December 31, 2008 and December 31, 2009.
Asset Quality
Non-accrual loans increased between December 31, 2008 and December 31, 2009, from $3.3 million to $4.4 million. This is an increase from 1.03% to 1.37% of net loans. Nonperforming loans remain well below our peer group. We believe that our bank has been proactive in the identification and management of potential problem loans. We increased our allowance for loan losses to 1.49% 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. Founded in 1996, 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 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, book value and total share volume) For three months For twelve months ended December 31, ended December 31, 2009 2008 2009 2008 Interest income $ 6,503 $ 7,202 $ 26,278 $ 31,724 Interest expense 2,301 3,157 10,240 14,146 Net interest income 4,202 4,045 16,038 17,578 Provision for loan losses 150 484 1,206 2,205 Net interest income after 4,052 3,561 14,832 15,373 provision for loan losses Non-interest income 753 690 2,860 3,162 Investment Impairment Expense 26 - 111 - Non-interest expense 4,069 3,774 15,324 15,998 Income before income taxes 710 477 2,257 2,537 Income taxes 109 92 514 688 Net income 601 385 1,743 1,849 Preferred Dividends 62 - 225 - Preferred Stock Accretion 14 - 57 - Net income applicable to 525 385 1,461 1,849 Common Stock Earnings per share applicable $ .17 $ .14 $ .49 $ .62 to common shareholders-Basic Earnings per share applicable $ .17 $ .13 $ .49 $ .61 to common shareholders-Diluted Dividends per share $ - $ - $ - $ .225 Dec 31, Dec 31, 2009 2008 Total assets $ 477,552 $ 474,824 Cash and due from banks 8,416 11,649 Federal funds sold 7,575 13,359 Investment securities 112,234 99,691 Loans, net of unearned 318,795 323,085 interest Allowance for loan losses as % 1.49 % 1.48 % of net loans Loans past due 90 days and 1,447 1,732 still accruing Non-accrual loans 4,367 3,340 Deposits-interest bearing 335,227 320,485 Deposits-non interest bearing 48,527 57,594 Total deposits 383,754 378,079 Borrowed funds 32,037 46,027 Subordinated debentures 10,310 10,310 Stockholders' equity 43,617 36,568 Book value (per share) 12.79 12.23 Total shares outstanding 3,019,869 2,990,201
Source: The First Bancshares, Inc.