First Bancshares, Inc. (Nasdaq:FBSI), the holding company for First
Home Savings Bank ("Bank"), today announced its financial results
for the fourth quarter and for its fiscal year ended June 30, 2011.
For the quarter ended June 30, 2011, the Company had a net loss
of $1.9 million, or $(1.26) per share – diluted, compared to a net
loss of $1.6 million, or $(1.05) per share – diluted for the
comparable period in 2010. The net loss for the year ended June 30,
2011 was $4.1 million, or $(2.65) per share – diluted, compared to
a net loss of $1.5 million, or $(0.96) per share – diluted for the
year ended June 30, 2010. The net losses for the quarter and year
ended June 30, 2011 were attributable to decreases in net interest
income and non-interest income, as well as, increases in
non-interest expense for both the quarter and year ended June 30,
2011. The provision for loan losses decreased for the 2011 quarter
compared to the 2010 quarter, but increased for fiscal 2011
compared to fiscal 2010. The provision for losses on real estate
owned increased to $1.4 million for the fourth quarter of fiscal
2011, and to $2.2 million for fiscal 2011 from $41,000 and
$181,000, respectively, for the same periods in fiscal 2010.
During the quarter ended June 30, 2011, net interest income
decreased by $26,000, or 1.6%, to $1.5 million from $1.6 million
during the quarter ended June 30, 2010. This decrease was the
result of a decrease in interest income of $308,000, or 13.6%,
which was partially offset by a decrease in interest expense of
$282,000, or 40.3%. The decrease in both interest income and
interest expense was primarily the result of a significant decrease
in market interest rates between the two periods.
Non-interest income decreased by $1.5 million, or 438.0%, to a
negative $1.1 million during the 2011 quarter from $333,000 during
the 2010 quarter. Service charges and other fee income decreased by
$99,000, or 28.8%, gain on the sale of loans decreased by $8,000,
or 62.6%, and gain on the sale of real estate held decreased by
$30,000, or 84.0%. Additionally, during the 2011 quarter there was
an increase of $1.4 million in write downs on real estate owned
compared to the same quarter in 2010. These negative changes were
partially offset by an increase of $5,000, or 25.6%, in other
non-interest income and a $15,000 profit on the sale of investments
during the 2011 quarter. Service charge income has been decreasing
over the last couple of years as a result of regulatory changes and
restrictions, and accounts being managed more carefully in the
existing economic climate.
During the quarter ended June 30, 2011, the provision for loan
losses decreased by $323,000, or 40.9%, to $466,000 from $789,000
during the quarter ended June 30, 2010. The allowance for loan
losses was $2.0 million, or 2.03%, of gross loans at June 30, 2011
compared to $2.5 million, or 2.28% of gross loans at June 30, 2010.
Total non-performing assets at June 30, 2011 were $10.5 million,
representing a decrease of $2.6 million from total non-performing
assets of $13.1 million at June 30, 2010.
Non-interest expense increased by $17,000, or 0.9%, remaining at
approximately $1.9 million for both the quarter ended June 30,
2011. There were decreases of $17,000, or 2.0%, in compensation and
benefits, and $45,000, or 26.7%, in deposit insurance premiums
during the 2011 quarter compared to the 2010 quarter. These
decreases were offset by increases of $63,000, or 17.1%, in other
non-interest expenses, $13,000, or 9.1%, in professional fees and
$4,000, or 1.1%, in occupancy and equipment expense during the 2011
quarter compared to the 2010 quarter.
During the year ended June 30, 2011, net interest income
decreased by $352,000, or 5.6%, to $6.1 million from $6.5 million
during the year ended June 30, 2010. This decrease was the result
of a decrease in interest income of $1.5 million, or 15.6%, which
was partially offset by a decrease in interest expense of $1.2
million, or 35.6%. The decrease in both interest income and
interest expense was primarily the result of a significant decrease
in market interest rates between the two periods.
During fiscal 2011, non-interest income decreased by $2.3
million, or 147.9%, to a negative $736,000 from $1.5 million during
fiscal 2010. This decrease was primarily the result of a decrease
of $488,000, or 32.3%, in service charges and other fee income, a
decrease of $21,000, or 45.9%, in gain on the sale of loans, a
decrease of $30,000, or 84.0%, in net gain on the sale of property
and a decrease of $31,000, or 28.4%, in other non-interest income.
Additionally, during fiscal 2011 there was an increase of $2.0
million in write downs on real estate owned. These negative changes
were partially offset by net gains on the sale of investments of
$315,000. There were no investments sold during fiscal
2010.
During the year ended June 30, 2011, the provision for loan
losses increased by $330,000, or 38.8%, to $1.2 million from
$852,000 during the year ended June 30, 2010. During fiscal 2011,
the Savings Bank's allowance for loan losses decreased by $544,000
to $2.0 million from $2.5 million at June 30, 2010. The decrease
during fiscal 2011 was the result of net charge-offs of $1.7
million, which was partially offset by the $1.2 million provision
for loan losses.
Non-interest expense increased by $114,000, or 1.5%, during
fiscal 2011 to $7.8 million from $7.6 million during fiscal 2010.
The increase in non-interest expense was primarily the result of
increases in professional fees of $231,000, or 43.5%, and in other
non-interest expense of $246,000, or 16.4%. These increases were
partially offset by decreases of $195,000, or 5.4%, in compensation
and benefits, $31,000, or 2.2%, in occupancy expenses and $138,000,
or 22.9%, in deposit insurance premiums. The decreases in
compensation and benefits and in occupancy expense were the result
of staff reductions and other cost cutting measures.
Total consolidated assets at June 30, 2011 were $209.3 million,
compared to $211.7 million at June 30, 2010, representing a
decrease of $2.3 million, or 1.1%. Stockholders' equity at
June 30, 2011 was $18.1 million, or 8.6% of assets, compared with
$22.6 million, or 10.7% of assets, at June 30, 2010. Book
value per common share decreased to $11.65 at June 30, 2011 from
$14.68 at June 30, 2010. The decrease in equity was primarily
attributable to the net loss of $4.1 million for the year ended
June 30, 2011 and a negative change of $450,000, net of income
taxes, in the market value of available-for-sale securities.
Net loans receivable decreased $12.9 million, or 11.8%, to $95.8
million at June 30, 2011 from $108.7 million at June 30,
2010. The decrease in loans receivable included decreases of
$5.4 million, $4.7 million, $1.2 million, $1.1 million and $1.1
million, in single-family loans, commercial real estate loans,
commercial business loans, land loans and consumer loans, including
second mortgages, respectively. Customer deposits increased
$586,000, or 0.3%, to $180.7 million at June 30, 2011 from $180.1
million at June 30, 2010.
Non-performing assets decreased by $2.6 million to $10.5 million
at June 30, 2011 from $13.1 million at June 30, 2010.The decrease
between June 30, 2010 and June 30, 2011 was the result of decreases
in non-accruing loans of $2.6 million, in impaired loans not past
due of $1.0 million and $61,000 in repossessed assets. These
decreases were partially offset by an increase of $1.0 million in
real estate owned. There were no accruing loans 90 days past due on
the books at either June 30, 2011 or June 30, 2010.
During the year ended June 30, 2011, the allowance for loan
losses decreased $544,000 to $2.0 million from $2.5 million as of
June 30, 2010, and the ratio of the allowance to gross loans
decreased to 2.03% at June 30, 2011 from 2.28% at June 30,
2010.
First Bancshares, Inc. is the holding company for First Home
Savings Bank, a FDIC-insured savings bank chartered by the State of
Missouri that conducts business from its home office in Mountain
Grove, Missouri, and ten full service offices in Marshfield, Ava,
Gainesville, Sparta, Springfield, Theodosia, Crane, Galena, Kissee
Mills and Rockaway Beach, Missouri.
The Company and its wholly-owned subsidiaries, First Home
Savings Bank and SCMG, Inc. may from time to time make written or
oral "forward-looking statements," including statements contained
in its filings with the Securities and Exchange Commission, 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 Orders 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; changes in consumer spending and savings
habits, the results of litigation; 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. Additional
discussion of factors affecting the Company's business and
prospects is contained in the Company's reports filed with the SEC.
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
Ended |
Year
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
Operating Data: |
|
|
|
|
|
|
|
|
|
Total interest income |
$ 1,960 |
$ 2,268 |
$ 8,253 |
$ 9,777 |
Total interest expense |
420 |
702 |
2,104 |
3,266 |
Net interest income |
1,540 |
1,566 |
6,159 |
6,511 |
Provision for loan losses |
466 |
789 |
1,182 |
852 |
Net interest income after
provision for loan losses |
1,074 |
777 |
4,967 |
5,659 |
Non-interest income |
(1,125) |
333 |
(736) |
1,535 |
Non-interest expense |
1,896 |
1,889 |
7,751 |
7,637 |
Loss before income tax |
(1,948) |
(624) |
(3,520) |
(443) |
Income tax provision |
-- |
842 |
581 |
1,041 |
Net loss |
$ (1,948) |
$ (1,621) |
$ (4,101) |
$ (1,484) |
Net loss per share-basic |
$ (1.26) |
$ (1.05) |
$ (2.65) |
$ (0.96) |
Net loss per share-diluted |
$ (1.26) |
$ (1.05) |
$ (2.65) |
$ (0.96) |
|
|
|
|
|
|
|
|
|
|
|
At June
30, |
|
|
Financial Condition
Data: |
2011 |
2010 |
|
|
|
|
|
|
|
Total assets |
$ 209,344 |
$ 211,657 |
|
|
Loans receivable, net |
95,817 |
108,683 |
|
|
Non-performing assets |
10,474 |
7,873 |
|
|
|
|
|
|
|
Cash and cash equivalents, including
interest-bearing deposits |
24,799 |
20,183 |
|
|
Investment securities |
75,166 |
69,539 |
|
|
Customer deposits |
180,661 |
180,075 |
|
|
Borrowed funds |
9,417 |
8,352 |
|
|
Stockholders' equity |
18,065 |
22,611 |
|
|
Book value per share |
$ 11.65 |
$ 14.68 |
|
|
CONTACT: R. Bradley Weaver, CEO
(417) 926-5151
First Bancshares (NASDAQ:FBSI)
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