First Bancshares Inc. (FBSI, Financial) filed Quarterly Report for the period ended 2009-03-31.
First Bancshares Inc. is a unitary savings and loan holding company for First Home Savings Bank that offers a range of community banking products and services in Missouri. It generates deposits and originates loans. The company offers various deposit products including negotiable order of withdrawal accounts money market accounts regular savings accounts certificates of deposit and retirement savings plans. Its loan portfolio comprises residential mortgage loans construction loans commercial mortgage and land loans commercial business loans and consumer loans. The Bank conducts its business from its home office in Mountain Grove and 10 full-service branch facilities in Marshfield Ava Gainesville Sparta Theodosia Crane Galena Kissee Mills Rockaway Beach and Springfield Missouri. It also operates a loan origination office in Springfield Missouri. First Bancshares Inc. has a market cap of $13.5 million; its shares were traded at around $8.71 .
Non-performing assets increased from $3.9 million, or 1.6% of total assets, at June 30, 2008 to $8.1 million, or 3.3% of total assets at March 31, 2009. The Bank s non-performing assets consist of non-accrual loans, past due loans over 90 days, impaired loans not past due or past due less than 60 days, real estate owned and other repossessed assets. The increase in non-performing assets consisted of an increase of $3.4 million in non-accrual loans and an increase of $1.0 million in real estate owned and an increase of $43,000 in other repossessed assets. These increases were partially offset by a decrease of $282,000 in loans 90 days or more delinquent and still accruing interest, the increase in non-accrual loans consisted of increases of $465,000 in non-accrual residential mortgages, $2.9 million in non-accrual land loans, $140,000 in non-accrual second mortgages, $1.2 million in non-accrual commercial business loans and $12,000 in non-accrual consumer loans. These increases were partially offset by a decrease of $1.3 million in non-accrual commercial real estate loans. There were three loans totaling $360,000 past due 90 days or more and still accruing interest at June 30, 2008. All three became non-
As of June 30, 2008, there were 11 foreclosed properties held for sale totaling $1.2 million. During the nine months ended March 31, 2009 nine properties with a book value of $446,000 were sold resulting in a net loss of $67,000. In addition, during the nine month period there were provisions for losses on real estate owned totaling $62,000 for losses on real estate owned. Nineteen properties totaling $1.5 million were foreclosed and added to real estate owned during the nine months ended March 31, 2009. Real estate owned also increased as the result of $60,000 in costs needed to complete construction on one property. At March 31, 2009, there were 21 foreclosed properties held for sale totaling $2.2 million. There were also repossessed assets totaling $43,000 at March 31, 2009.
As a result of this review, during the quarter ended December 31, 2008, the Bank added 65 loans with principal balances totaling $12.6 million to either the classified asset list or the internal watch list. Additionally, 33 loans which had appeared on either the classified asset list or the internal watch list at November 30, 2008 were downgraded. During the quarter ended December 31, 2008, the Bank recorded a provision for loan losses of $4.2 million. The $4.2 million provision for loan losses included $3.2 million on 19 loans totaling $5.3 million made to six individuals or related parties. The largest provision was for $1.4 million on a $2.8 million subdivision development loan, brought about by cost overruns, diminishing collateral value and the weakening economic climate. The second largest provision was $667,000 on seven loans totaling $842,000 collateralized primarily by business assets and, to a lesser degree, by real estate, to related entities. The business is not generating sufficient cash flow to service its debt and the value of the business assets has significantly deteriorated. The next largest provision was $371,000 on three loans totaling $520,000 collateralized primarily by business assets of a company involved in the building trades. The business, and the value of the collateral, has deteriorated in the current economic climate, resulting in insufficient cash flows to meet debt service.
The review process continued in the quarter ended March 31, 2009. As a result, the Bank added 53 loans with principal balances totaling $3.9 million to either the classified asset list or the internal watch list. Additionally, 23 loans which had appeared on either the classified asset list or the internal watch list at December 31, 2008 were downgraded. During the quarter ended March 31, 2009, the Bank recorded a provision for loan losses of $643,000. The $643,000 provision included $458,000 on six loans totaling $1.5 million made to five individuals or related parties. The largest provision was $196,000 on two loans totaling $263,000 to a retail dealer of boats, motors, fishing equipment and other water sport related items. In the current economic climate, the business has not been able to generate sufficient cash flow to service its debts. In addition, there were provisions of $74,000 on a loan of $88,000 to a recycling company, $68,000 on a loan of $139,000 to a trucking company, $61,000 on a loan of $405,000 to an internet service provider, and $60,000 on a loan of $444,000 to a company involved in the building trades. In all cases, these businesses have been hampered by slow payment or non-payment from existing customers, reductions in business from existing customers and a lack of new business.
2008 period, and by a decrease in average interest-bearing deposit balances of $12.9 million to $169.5 million in the 2009 period from $182.4 million in the 2008 period. Interest expense on other interest-bearing liabilities increased $33,000 to $358,000 in the three months ended March 31, 2009 from $325,000 in the comparable period in 2008. The decrease in interest expense on other interest-bearing liabilities was due to a decrease in the average cost of other interest bearing liabilities to 4.24% during the 2009 period from 5.80% during the 2008 period, which was partially offset by an increase in the average balance of other interest-bearing liabilities of $11.6 million to $34.3 million during the 2009 period from $22.7 million during the 2008 period. The average outstanding balance of retail repurchase agreements increased to $5.3 million during the three months ended March 31, 2009 from $710,000 during the comparable period in 2008.
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First Bancshares Inc. is a unitary savings and loan holding company for First Home Savings Bank that offers a range of community banking products and services in Missouri. It generates deposits and originates loans. The company offers various deposit products including negotiable order of withdrawal accounts money market accounts regular savings accounts certificates of deposit and retirement savings plans. Its loan portfolio comprises residential mortgage loans construction loans commercial mortgage and land loans commercial business loans and consumer loans. The Bank conducts its business from its home office in Mountain Grove and 10 full-service branch facilities in Marshfield Ava Gainesville Sparta Theodosia Crane Galena Kissee Mills Rockaway Beach and Springfield Missouri. It also operates a loan origination office in Springfield Missouri. First Bancshares Inc. has a market cap of $13.5 million; its shares were traded at around $8.71 .
Highlight of Business Operations:
As of March 31, 2009, First Bancshares, Inc. had assets of $243.3 million, compared to $249.2 million at June 30. 2008. The decrease in total assets of $5.9 million, or 2.4%, was the result of a decrease of $26.7 million in loans receivable, net and a decrease of $4.0 million, or 65.1%, in BOLI. This decrease was partially offset by increases in investments, including certificates of deposit, real estate owned, cash and cash equivalents and deferred tax assets, which totaled $7.5 million, $1.0 million, $15.3 million, and $1.4 million, respectively. Deposits decreased $12.5 million, and Federal Home Loan Bank of Des Moines advances increased by $7.0 million. At March 31, 2009, there was a total of $969,000 in loans originated for sale which were not yet funded by the purchasers. The decrease in deposits was partially offset by an increase of $1.3 million in retail repurchase agreements.Non-performing assets increased from $3.9 million, or 1.6% of total assets, at June 30, 2008 to $8.1 million, or 3.3% of total assets at March 31, 2009. The Bank s non-performing assets consist of non-accrual loans, past due loans over 90 days, impaired loans not past due or past due less than 60 days, real estate owned and other repossessed assets. The increase in non-performing assets consisted of an increase of $3.4 million in non-accrual loans and an increase of $1.0 million in real estate owned and an increase of $43,000 in other repossessed assets. These increases were partially offset by a decrease of $282,000 in loans 90 days or more delinquent and still accruing interest, the increase in non-accrual loans consisted of increases of $465,000 in non-accrual residential mortgages, $2.9 million in non-accrual land loans, $140,000 in non-accrual second mortgages, $1.2 million in non-accrual commercial business loans and $12,000 in non-accrual consumer loans. These increases were partially offset by a decrease of $1.3 million in non-accrual commercial real estate loans. There were three loans totaling $360,000 past due 90 days or more and still accruing interest at June 30, 2008. All three became non-
As of June 30, 2008, there were 11 foreclosed properties held for sale totaling $1.2 million. During the nine months ended March 31, 2009 nine properties with a book value of $446,000 were sold resulting in a net loss of $67,000. In addition, during the nine month period there were provisions for losses on real estate owned totaling $62,000 for losses on real estate owned. Nineteen properties totaling $1.5 million were foreclosed and added to real estate owned during the nine months ended March 31, 2009. Real estate owned also increased as the result of $60,000 in costs needed to complete construction on one property. At March 31, 2009, there were 21 foreclosed properties held for sale totaling $2.2 million. There were also repossessed assets totaling $43,000 at March 31, 2009.
As a result of this review, during the quarter ended December 31, 2008, the Bank added 65 loans with principal balances totaling $12.6 million to either the classified asset list or the internal watch list. Additionally, 33 loans which had appeared on either the classified asset list or the internal watch list at November 30, 2008 were downgraded. During the quarter ended December 31, 2008, the Bank recorded a provision for loan losses of $4.2 million. The $4.2 million provision for loan losses included $3.2 million on 19 loans totaling $5.3 million made to six individuals or related parties. The largest provision was for $1.4 million on a $2.8 million subdivision development loan, brought about by cost overruns, diminishing collateral value and the weakening economic climate. The second largest provision was $667,000 on seven loans totaling $842,000 collateralized primarily by business assets and, to a lesser degree, by real estate, to related entities. The business is not generating sufficient cash flow to service its debt and the value of the business assets has significantly deteriorated. The next largest provision was $371,000 on three loans totaling $520,000 collateralized primarily by business assets of a company involved in the building trades. The business, and the value of the collateral, has deteriorated in the current economic climate, resulting in insufficient cash flows to meet debt service.
The review process continued in the quarter ended March 31, 2009. As a result, the Bank added 53 loans with principal balances totaling $3.9 million to either the classified asset list or the internal watch list. Additionally, 23 loans which had appeared on either the classified asset list or the internal watch list at December 31, 2008 were downgraded. During the quarter ended March 31, 2009, the Bank recorded a provision for loan losses of $643,000. The $643,000 provision included $458,000 on six loans totaling $1.5 million made to five individuals or related parties. The largest provision was $196,000 on two loans totaling $263,000 to a retail dealer of boats, motors, fishing equipment and other water sport related items. In the current economic climate, the business has not been able to generate sufficient cash flow to service its debts. In addition, there were provisions of $74,000 on a loan of $88,000 to a recycling company, $68,000 on a loan of $139,000 to a trucking company, $61,000 on a loan of $405,000 to an internet service provider, and $60,000 on a loan of $444,000 to a company involved in the building trades. In all cases, these businesses have been hampered by slow payment or non-payment from existing customers, reductions in business from existing customers and a lack of new business.
2008 period, and by a decrease in average interest-bearing deposit balances of $12.9 million to $169.5 million in the 2009 period from $182.4 million in the 2008 period. Interest expense on other interest-bearing liabilities increased $33,000 to $358,000 in the three months ended March 31, 2009 from $325,000 in the comparable period in 2008. The decrease in interest expense on other interest-bearing liabilities was due to a decrease in the average cost of other interest bearing liabilities to 4.24% during the 2009 period from 5.80% during the 2008 period, which was partially offset by an increase in the average balance of other interest-bearing liabilities of $11.6 million to $34.3 million during the 2009 period from $22.7 million during the 2008 period. The average outstanding balance of retail repurchase agreements increased to $5.3 million during the three months ended March 31, 2009 from $710,000 during the comparable period in 2008.
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