First Bancshares Inc. (FBSI, Financial) filed Annual Report for the period ended 2009-06-30.
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 $13.73 million; its shares were traded at around $8.85 with and P/S ratio of 0.91.
The Savings Bank provides its customers with a full array of community banking services. The Savings Bank is primarily engaged in the business of attracting deposits from the general public and using such deposits, together with other funding sources, to invest in residential mortgage loans, commercial real estate loans, land loans, second mortgage loans, consumer loans and commercial business loans, for its loan portfolio. Excess funds are typically invested in securities and other assets. At June 30, 2009, the Savings Bank's net loans were $133.2 million, or 57.9% of consolidated total assets. Gross loans of $137.1 million consisted of $71.1 million, or 51.9% of total loans, in residential mortgages, $39.8 million, or 29.0% of total loans, in commercial real estate loans, $7.4 million, or 5.4% of total loans, in land loans, $4.9 million, or 3.6% of total loans, in second mortgage loans, $4.0 million, or 2.9% of total loans, in consumer loans, and $9.8 million, or 7.2% of total loans, in commercial business loans. Of loans maturing after June 30, 2010, at June 30, 2009, adjustable rate mortgage ("ARM") loans account for approximately 61.2% of loans secured by real estate and ÂÂÂ58% of the gross loan portfolio. See "-- Lending Activities" below.
In addition to loans within the Savings Bank's primary market area, the Savings Bank also has originated nine one-to-four family loans, nine commercial real estate loans, three land loans, one commercial business loan and seven consumer loans in Arkansas, Oregon, Kansas and eight other states. The 29 loans had an aggregate balance of $5.0 million at June 30, 2009. As of June 30, 2009 there was one loan of $247,000 collateralized by commercial real estate in excess of 90 days past due and one loan of $313,000 on commercial real estate more than 60 days, but less than 90 days, past due. Additionally, there was one out-of-state loan of less than $1,000 that was past due 25 days. The remaining 26 loans were performing according to their scheduled repayment terms.
At June 30, 2009, the Savings Bank's net loans receivable totaled $133.2 million, which represented 57.9% of consolidated total assets. Historically, the Savings Bank has primarily originated adjustable rate loan products. At June 30, 2009, adjustable rate loans with a maturity date after June 30, 2010 accounted for $82.1 million or 59.9% of the total loan portfolio and $79.1 million or 64.2% of loans secured by real estate. The Savings Bank focuses on serving the needs of its local community and strongly believes in a lending philosophy that emphasizes individual customer service and flexibility in meeting the needs of its customers. During the four years ended June 30, 2006, the Savings Bank experienced a significant decline in the amount of its one-to-four family loan portfolio. While this trend was moderately reversed during the year ended June 30, 2007, during the years ended June 30, 2008 and 2009, the Savings Bank experienced decreases in its one-to-four family loan portfolio. During the year ended June 30, 2009, originations of one-to-four family loans, including those originated for sale in the secondary market, decreased by $6.0 million to $31.3 million from $37.3 million in the year ended June 30, 2008. The decrease in one-to-four family originations for the portfolio during fiscal 2009 was the result of the decline in economic conditions during the period and the resulting negative impact on property values. In addition, the Savings Bank retained primarily adjustable rate in its portfolio and almost all one-to-four family loans with fixed interest rates were sold to other investors. While the origination of loans for others does not increase the Savings Bank's loan portfolio, it does provide the Savings Bank with the opportunity to generate fee income, and the ability to service its customer s loans. In addition, the Savings Bank historically has retained some fixed-rate mortgage loans in its portfolio. The retained loans generally have a higher interest rate than those loans originated for other investors. Generally, fixed rate loans that are retained in the Savings Bank's portfolio are loans with smaller principal balances ($50,000 or less) where the value of the acreage is too great for the residence to qualify under the secondary market standard.
Loan Portfolio Analysis. The following table sets forth the composition of the Savings Bank's loan portfolio by type of loan as of the dates indicated. Construction loans are included in residential and commercial real estate loans depending on the type of security. At June 30, 2009, the Savings Bank had $4.2 million, or 3.1% of total loans, in interim construction loans in its portfolio of which $1.4 million were for residential construction and $2.8 million were for commercial construction, as described below. At June 30, 2008, the Savings Bank had $13.9 million, or 8.34% of total loans, in interim construction loans in its portfolio of which $4.4 million were for residential construction, $574,000 were for multi-family construction and $9.0 million were
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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 $13.73 million; its shares were traded at around $8.85 with and P/S ratio of 0.91.
Highlight of Business Operations:
First Bancshares, a Missouri corporation, was incorporated on September 30, 1993 for the purpose of becoming the holding company for First Home upon its conversion from a state-chartered mutual to a state-chartered stock savings and loan association ("Conversion"). The Conversion was completed on December 22, 1993. At June 30, 2009, the Company had consolidated total assets of $229.9 million, total deposits of $189.2 million and stockholders' equity of $23.8 million. The Company is not engaged in any significant activity other than holding the stock of First Home. Accordingly, the information set forth in this report, including consolidated financial statements and related data, relates primarily to operations of the Savings Bank. The Company's common shares trade on The Nasdaq Stock Market LLC under the symbol "FBSI."The Savings Bank provides its customers with a full array of community banking services. The Savings Bank is primarily engaged in the business of attracting deposits from the general public and using such deposits, together with other funding sources, to invest in residential mortgage loans, commercial real estate loans, land loans, second mortgage loans, consumer loans and commercial business loans, for its loan portfolio. Excess funds are typically invested in securities and other assets. At June 30, 2009, the Savings Bank's net loans were $133.2 million, or 57.9% of consolidated total assets. Gross loans of $137.1 million consisted of $71.1 million, or 51.9% of total loans, in residential mortgages, $39.8 million, or 29.0% of total loans, in commercial real estate loans, $7.4 million, or 5.4% of total loans, in land loans, $4.9 million, or 3.6% of total loans, in second mortgage loans, $4.0 million, or 2.9% of total loans, in consumer loans, and $9.8 million, or 7.2% of total loans, in commercial business loans. Of loans maturing after June 30, 2010, at June 30, 2009, adjustable rate mortgage ("ARM") loans account for approximately 61.2% of loans secured by real estate and ÂÂÂ58% of the gross loan portfolio. See "-- Lending Activities" below.
In addition to loans within the Savings Bank's primary market area, the Savings Bank also has originated nine one-to-four family loans, nine commercial real estate loans, three land loans, one commercial business loan and seven consumer loans in Arkansas, Oregon, Kansas and eight other states. The 29 loans had an aggregate balance of $5.0 million at June 30, 2009. As of June 30, 2009 there was one loan of $247,000 collateralized by commercial real estate in excess of 90 days past due and one loan of $313,000 on commercial real estate more than 60 days, but less than 90 days, past due. Additionally, there was one out-of-state loan of less than $1,000 that was past due 25 days. The remaining 26 loans were performing according to their scheduled repayment terms.
At June 30, 2009, the Savings Bank's net loans receivable totaled $133.2 million, which represented 57.9% of consolidated total assets. Historically, the Savings Bank has primarily originated adjustable rate loan products. At June 30, 2009, adjustable rate loans with a maturity date after June 30, 2010 accounted for $82.1 million or 59.9% of the total loan portfolio and $79.1 million or 64.2% of loans secured by real estate. The Savings Bank focuses on serving the needs of its local community and strongly believes in a lending philosophy that emphasizes individual customer service and flexibility in meeting the needs of its customers. During the four years ended June 30, 2006, the Savings Bank experienced a significant decline in the amount of its one-to-four family loan portfolio. While this trend was moderately reversed during the year ended June 30, 2007, during the years ended June 30, 2008 and 2009, the Savings Bank experienced decreases in its one-to-four family loan portfolio. During the year ended June 30, 2009, originations of one-to-four family loans, including those originated for sale in the secondary market, decreased by $6.0 million to $31.3 million from $37.3 million in the year ended June 30, 2008. The decrease in one-to-four family originations for the portfolio during fiscal 2009 was the result of the decline in economic conditions during the period and the resulting negative impact on property values. In addition, the Savings Bank retained primarily adjustable rate in its portfolio and almost all one-to-four family loans with fixed interest rates were sold to other investors. While the origination of loans for others does not increase the Savings Bank's loan portfolio, it does provide the Savings Bank with the opportunity to generate fee income, and the ability to service its customer s loans. In addition, the Savings Bank historically has retained some fixed-rate mortgage loans in its portfolio. The retained loans generally have a higher interest rate than those loans originated for other investors. Generally, fixed rate loans that are retained in the Savings Bank's portfolio are loans with smaller principal balances ($50,000 or less) where the value of the acreage is too great for the residence to qualify under the secondary market standard.
Loan Portfolio Analysis. The following table sets forth the composition of the Savings Bank's loan portfolio by type of loan as of the dates indicated. Construction loans are included in residential and commercial real estate loans depending on the type of security. At June 30, 2009, the Savings Bank had $4.2 million, or 3.1% of total loans, in interim construction loans in its portfolio of which $1.4 million were for residential construction and $2.8 million were for commercial construction, as described below. At June 30, 2008, the Savings Bank had $13.9 million, or 8.34% of total loans, in interim construction loans in its portfolio of which $4.4 million were for residential construction, $574,000 were for multi-family construction and $9.0 million were
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