First Bancshares Inc. (FBSI, Financial) filed Quarterly Report for the period ended 2009-12-31.
First Bancshares Inc. has a market cap of $13.5 million; its shares were traded at around $8.74 with and P/S ratio of 0.9.
As of December 31, 2009 the Company s stockholders equity totaled $24.0 million, compared to $23.8 million as of June 30, 2009. The $258,000 increase of was attributable to net income of $246,000 during the first six months of fiscal 2010, and by a positive change in the mark-to-market adjustment, net of taxes, of $7,000 on the Company s available-for-sale securities portfolio. In addition, there was a $5,000 increase resulting from the accounting treatment of stock based compensation. There were no dividends paid during the period.
Non-performing assets increased from $5.0 million, or 2.2% of total assets, at June 30, 2009 to $5.4 million, or 2.6% of total assets at December 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 $2.3 million in real estate owned and an increase of $556,000 in loans 90 days or more delinquent and still accruing interest. These increases were partially offset by decreases of $2.0 million in non-accruing loans and $35,000 in other repossessed assets, respectively. Most of the decrease in non-accrual loans was the result of the Company completing the foreclosure process on real estate collateralizing these loans, resulting in the substantial increase in real estate owned. The increase in loans 90 days or more delinquent and still accruing consisted of $105,000 in residential mortgages, $162,000 in commercial real estate loans, and $411,000 in commercial business loans, which were partially offset by a decrease of $122,000 in land loans. The decrease in non-accrual loans consisted
of decreases of $593,000, $247,000, $1.2 million and $392,000 in non-accrual residential mortgages, commercial real estate loans, land loans and commercial business loans, respectively. At December 31, 2009, loans 90 days past due and still accruing consisted of two residential mortgages totaling $105,000, one commercial real estate loan totaling $162,000, and two commercial business loan totaling $577,000. Almost all of the loans that became non-accrual or 90 days or more delinquent and still accruing as of December 31, 2009, were loans that had been on the Company s list of watch credits at September 30, 2009. The increase in non-performing assets is a result of two factors. First is the negative economic environment that has existed for nearly two years, which has had an adverse impact on individuals and businesses in the Company s primary market areas, where substantially all of the Company s problem loans are located. Second, there were concerns regarding the Bank s underwriting of some of the loans that were originated prior to May 2008. Since May 2008 the Bank has required that all loan originations, renewals and modifications to be approved by the Directors Loan Committee. As discussed below, management believes the allowance for loan losses as of December 31, 2009, was adequate to absorb the known and inherent risks of loss in the loan portfolio at that date.
As of June 30, 2009, there were 21 foreclosed properties held for sale totaling $1.6 million. During the six months ended December 31, 2009 twelve properties with a book value of $869,000 were sold resulting in a net gain of $42,000. In addition, during the six month period, three foreclosed properties were written down by a total of $128,000 which was charges to provision for losses on real estate owned. Thirteen properties totaling $3.2 million were foreclosed and added to real estate owned during the six months ended December 31, 2009. These thirteen foreclosures consisted of eight loans on single family residences totaling $743,000, one loan on developed residential building lots totaling $1.4 million, two loans on developed commercial building lots totaling $287,000, one loan on a commercial building totaling $89,000 and one loan on undeveloped land totaling $670,000. Substantially all of the real estate acquired through foreclosure was located in the Company s primary market area. At December 31, 2009, there were 22 foreclosed properties held for sale totaling $3.8 million. There were also repossessed assets totaling $122,000 at December 31, 2009.
On the basis of management's review of its loans and other assets, at December 31, 2009, the Company had classified $3.3 million of its assets as substandard, $173,000 as doubtful and none as loss. This compares to classifications at June 30, 2009 of $6.1 million as substandard, $4.2 million as doubtful and none as loss. The decrease in classified loans to $3.4 million at December 31, 2009 from $10.3 million at June 30, 2009 is believed to be an indication that the on-going, in-depth review and analysis of the Bank s loan portfolio since November 2008 is helping the Company make progress in resolving problem loan issues.
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First Bancshares Inc. has a market cap of $13.5 million; its shares were traded at around $8.74 with and P/S ratio of 0.9.
Highlight of Business Operations:
As of December 31, 2009, First Bancshares, Inc. had assets of $210.1 million, compared to $229.9 million at June 30. 2009. The decrease in total assets of $19.8 million, or 8.6%, was the result of a decrease of $7.4 million, or 28.1%, in cash and cash equivalents, a decrease of $1.1 million, or 70.0% in FHLB stock, a decrease of $13.7 million, or 10.3%, in loans receivable, net, a decrease of $820,000 or 100.0%, in loans held for sale and a decrease of $2.2 million, or 100.0%, in BOLI. These decreases were partially offset by increases of $2.8 million in certificates of deposit purchased, $1.4 million in prepaid expenses and $2.3 million in real estate owned and other repossessed assets. Deposits decreased $10.2 million, and retail repurchase agreements decreased by $2.2 million. The decreases in deposits and retail repurchase agreements were the result of the current economic climate and generally lower interest rates on deposits.As of December 31, 2009 the Company s stockholders equity totaled $24.0 million, compared to $23.8 million as of June 30, 2009. The $258,000 increase of was attributable to net income of $246,000 during the first six months of fiscal 2010, and by a positive change in the mark-to-market adjustment, net of taxes, of $7,000 on the Company s available-for-sale securities portfolio. In addition, there was a $5,000 increase resulting from the accounting treatment of stock based compensation. There were no dividends paid during the period.
Non-performing assets increased from $5.0 million, or 2.2% of total assets, at June 30, 2009 to $5.4 million, or 2.6% of total assets at December 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 $2.3 million in real estate owned and an increase of $556,000 in loans 90 days or more delinquent and still accruing interest. These increases were partially offset by decreases of $2.0 million in non-accruing loans and $35,000 in other repossessed assets, respectively. Most of the decrease in non-accrual loans was the result of the Company completing the foreclosure process on real estate collateralizing these loans, resulting in the substantial increase in real estate owned. The increase in loans 90 days or more delinquent and still accruing consisted of $105,000 in residential mortgages, $162,000 in commercial real estate loans, and $411,000 in commercial business loans, which were partially offset by a decrease of $122,000 in land loans. The decrease in non-accrual loans consisted
of decreases of $593,000, $247,000, $1.2 million and $392,000 in non-accrual residential mortgages, commercial real estate loans, land loans and commercial business loans, respectively. At December 31, 2009, loans 90 days past due and still accruing consisted of two residential mortgages totaling $105,000, one commercial real estate loan totaling $162,000, and two commercial business loan totaling $577,000. Almost all of the loans that became non-accrual or 90 days or more delinquent and still accruing as of December 31, 2009, were loans that had been on the Company s list of watch credits at September 30, 2009. The increase in non-performing assets is a result of two factors. First is the negative economic environment that has existed for nearly two years, which has had an adverse impact on individuals and businesses in the Company s primary market areas, where substantially all of the Company s problem loans are located. Second, there were concerns regarding the Bank s underwriting of some of the loans that were originated prior to May 2008. Since May 2008 the Bank has required that all loan originations, renewals and modifications to be approved by the Directors Loan Committee. As discussed below, management believes the allowance for loan losses as of December 31, 2009, was adequate to absorb the known and inherent risks of loss in the loan portfolio at that date.
As of June 30, 2009, there were 21 foreclosed properties held for sale totaling $1.6 million. During the six months ended December 31, 2009 twelve properties with a book value of $869,000 were sold resulting in a net gain of $42,000. In addition, during the six month period, three foreclosed properties were written down by a total of $128,000 which was charges to provision for losses on real estate owned. Thirteen properties totaling $3.2 million were foreclosed and added to real estate owned during the six months ended December 31, 2009. These thirteen foreclosures consisted of eight loans on single family residences totaling $743,000, one loan on developed residential building lots totaling $1.4 million, two loans on developed commercial building lots totaling $287,000, one loan on a commercial building totaling $89,000 and one loan on undeveloped land totaling $670,000. Substantially all of the real estate acquired through foreclosure was located in the Company s primary market area. At December 31, 2009, there were 22 foreclosed properties held for sale totaling $3.8 million. There were also repossessed assets totaling $122,000 at December 31, 2009.
On the basis of management's review of its loans and other assets, at December 31, 2009, the Company had classified $3.3 million of its assets as substandard, $173,000 as doubtful and none as loss. This compares to classifications at June 30, 2009 of $6.1 million as substandard, $4.2 million as doubtful and none as loss. The decrease in classified loans to $3.4 million at December 31, 2009 from $10.3 million at June 30, 2009 is believed to be an indication that the on-going, in-depth review and analysis of the Bank s loan portfolio since November 2008 is helping the Company make progress in resolving problem loan issues.
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