MOUNTAIN GROVE, Mo., Oct. 19, 2012 (GLOBE NEWSWIRE) -- First Bancshares, Inc. (OTCQB:FBSI), the holding company for First Home Savings Bank ("Bank"), today announced its financial results for the first quarter of its fiscal year ending June 30, 2013. All data as of September 30, 2012 and for the three months then ended are prepared from the Company's records and are unaudited.
For the quarter ended September 30, 2012, the Company had net income of $49,000, or $0.03 per share – diluted, compared to a net loss of $289,000, or $(0.19) per share – diluted for the comparable period in 2011. Net income for the quarter ended September 30, 2012, as compared to the net loss for the quarter ended September 30, 2011, was attributable to decreases in the provision for loan losses and in non-interest expense, and to an improvement in non-interest income. These improvements were partially offset by a decrease in net interest income.
During the quarter ended September 30, 2012, net interest income decreased by $187,000, or 13.1%, to $1.2 million from $1.4 million during the quarter ended September 30, 2011. This decrease was the result of a decrease in interest income of $261,000, or 14.2%, which was partially offset by a decrease in interest expense of $75,000, or 18.6%. The decrease in both interest income and interest expense was primarily the result of a decrease in market interest rates between the two periods.
Non-interest income improved by $5,000 to $320,000 during the quarter ended September 30, 2012 from $315,000 during the quarter ended September 30, 2011. This change was the result of an increase of $150,000, or 131.9%, in profit on the sale of securities available-for-sale and $18,000, or 95.2%, in other non-interest income. These increases were partially offset by decreases of $9,000, or 3.9%, and $3,000, or 100.0%, in service charges and other fee income and in gain on the sale of loans, respectively. The increases were also partially offset by an increase of $152,000, or 333.4%, in net loss on the sale of real estate owned. Service charge income has been decreasing during the last couple of years as a result of recently imposed regulatory changes and restrictions, and customers managing their accounts more carefully in the existing economic climate. However, service charge income did not decrease as precipitously as it had in recent periods.
During the quarter ended September 30, 2012, there was no provision for loan losses, compared to a provision of $55,000 during the quarter ended September 30, 2011. The allowance for loan losses was $1.8 million, or 1.9% of gross loans, at both September 30, 2012 and June 30, 2012.
Non-interest expense decreased by $465,000, or 23.5%, to $1.5 million for the quarter ended September 30, 2012, compared to $2.0 million for the quarter ended September 30, 2011. The decrease was a result of decreases of $147,000, or 15.8%, in compensation and benefits, $37,000, or 11.6%, in occupancy and equipment expense, $113,000, or 52.3%, in professional fees, $61,000, or 48.8%, in deposit insurance premiums, and $125,000, or 32.9%, in other non-interest expense during the 2012 quarter compared to the 2011 quarter. These decreases were partially offset by an increase of $18,000, or 252.4%, in write downs for impairment on real estate owned during the 2012 quarter compared to the 2011 quarter.
Total consolidated assets at September 30, 2012 were $187.5 million, compared to $193.4 million at June 30, 2012, representing a decrease of $5.9 million, or 3.1%. Stockholders' equity at September 30, 2012 was $16.3 million, or 8.7% of assets, compared with $16.3 million, or 8.4% of assets, at June 30, 2012. Book value per common share decreased to $10.50 at September 30, 2012 from $10.53 at June 30, 2012. The $49,000, or 0.3%, decrease in equity was primarily attributable to a negative change of $97,000, net of income taxes, in the market value of available-for-sale securities which was partially offset by net income of $49,000 for the quarter ended September 30, 2012.
Net loans receivable decreased $4.5 million, or 4.7%, to $91.0 million at September 30, 2012 from $95.5 million at June 30, 2012. The decrease in loans receivable included decreases of $2.3 million, $34,000, $280,000, $190,000 and $1.7 million, in single-family loans, commercial real estate loans, land loans, consumer loans (including second mortgages), and commercial business loans, respectively. There were no loan categories that increased during the quarter. Customer deposits decreased $4.2 million, or 2.5%, to $161.6 million at September 30, 2012 from $165.9 million at June 30, 2012, and retail repurchase agreements decreased $935,000, or 14.5%, to $5.5 million at September 30, 2012 from $6.4 million at June 30, 2012.
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 eight full service offices in Marshfield, Ava, Gainesville, Sparta, Springfield, Crane, Kissee Mills and Rockaway Beach, Missouri.
The Company and its wholly-owned subsidiary, First Home Savings Bank, 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 Company's Order to Cease and Desist and the Bank's Agreement with the Director of the Division of Finance of the State of Missouri, 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.
|Operating Data:||(In thousands)|
|Total interest income||$1,574||$1,835|
|Total interest expense||329||404|
|Net interest income||1,245||1,431|
|Provision for loan losses||--||55|
|Net interest income after provision for loan losses||1,245||1,377|
|Income (loss) before income tax||49||(289)|
|Income tax provision||--||--|
|Net income (loss)||$49||$(289)|
|Net income (loss) per share-basic||$0.03||$(0.19)|
|Net income (loss) per share-diluted||$0.03||$(0.19)|
|Financial Condition Data:||September 30, 2012||June 30, 2012|
|(In thousands, except per share data)|
|Loans receivable, net||91,037||95,521|
|Cash and cash equivalents||10,553||12,658|
|Investment securities, including certificates of deposit at other financial institutions||75,011||73,845|
|Book value per share||$10.50||$10.53|