First Bancshares Inc. (FBSI, Financial) filed Annual Report for the period ended 2010-06-30.
First Bancshares Inc. has a market cap of $11.3 million; its shares were traded at around $7.275 with and P/S ratio of 0.8.
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, 2010, the Savings Bank's net loans were $108.7 million, or 51.4% of consolidated total assets. Gross loans of $111.0 million consisted of $60.2 million, or 54.2% of total loans, in residential mortgages, $34.6 million, or 31.2% of total loans, in commercial real estate loans, $4.4 million, or 3.9% of total loans, in land loans, $4.5 million, or 4.0% of total loans, in second mortgage loans, $2.9 million, or 2.6% of total loans, in consumer loans, and $4.5 million, or 4.1% of total loans, in commercial business loans. Of loans maturing after June 30, 2011, at June 30, 2010, adjustable rate mortgage ("ARM") loans accounted for approximately 78.1% of loans secured by real estate and 61.3% 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, eight commercial real estate loans, four land loans, one commercial business loan and ten consumer loans in Arkansas, Oregon, Kansas and eight other states. The 32 loans had an aggregate balance of $5.0 million at June 30, 2010. As of June 30, 2010 there was one loan of $123,000 collateralized by a single-family residence in excess of 90 days past due. Additionally, at June 30, 2010 there were five out-of-state loans totaling $301,000 that were past due between 8 and 15 days. The remaining 26 loans were performing according to their scheduled repayment terms.
At June 30, 2010, the Savings Bank's net loans receivable totaled $108.7 million, which represented 51.4% of consolidated total assets. Historically, the Savings Bank has primarily originated adjustable rate loan products. At June 30, 2010, adjustable rate loans with a maturity date after June 30, 2011 accounted for $70.5 million or 63.5% of the total loan portfolio and $68.0 million or 78.1% 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 through June 30, 2010, the Savings Bank experienced futher decreases in its one-to-four family loan portfolio. During the year ended June 30, 2010, originations of one-to-four family loans, including those originated for sale in the secondary market, decreased by $26.9 million to $4.4 million from $31.3 million in the year ended June 30, 2009. The decrease in one-to-four family originations for the portfolio during fiscal 2010 was the result of closing the secondary market operation in June 2009, and the continuing 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 meet its customers needs. 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
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, 2010, the Savings Bank had $3.7 million, or 3.3% of total loans, in interim construction loans in its portfolio of which $461,000 were for residential construction and $3.2 million were for commercial construction, as described below. 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. Because of the amount of its construction loans, and the fact that most of these loans are made with the intent for them to convert to permanent financing, the Savings Bank does not separately disclose these types of loans. The decrease in construction loans was the result of several factors, including reduced demand for such loans, both by borrowers and by the Savings Bank, due to the economic climate, and write downs, based on FASB 114 analyses, of certain existing loans.
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First Bancshares Inc. has a market cap of $11.3 million; its shares were traded at around $7.275 with and P/S ratio of 0.8.
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 Savings Bank (“Savings Bank”) 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, 2010, the Company had consolidated total assets of $211.7 million, total deposits of $180.1 million and stockholders' equity of $22.6 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, 2010, the Savings Bank's net loans were $108.7 million, or 51.4% of consolidated total assets. Gross loans of $111.0 million consisted of $60.2 million, or 54.2% of total loans, in residential mortgages, $34.6 million, or 31.2% of total loans, in commercial real estate loans, $4.4 million, or 3.9% of total loans, in land loans, $4.5 million, or 4.0% of total loans, in second mortgage loans, $2.9 million, or 2.6% of total loans, in consumer loans, and $4.5 million, or 4.1% of total loans, in commercial business loans. Of loans maturing after June 30, 2011, at June 30, 2010, adjustable rate mortgage ("ARM") loans accounted for approximately 78.1% of loans secured by real estate and 61.3% 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, eight commercial real estate loans, four land loans, one commercial business loan and ten consumer loans in Arkansas, Oregon, Kansas and eight other states. The 32 loans had an aggregate balance of $5.0 million at June 30, 2010. As of June 30, 2010 there was one loan of $123,000 collateralized by a single-family residence in excess of 90 days past due. Additionally, at June 30, 2010 there were five out-of-state loans totaling $301,000 that were past due between 8 and 15 days. The remaining 26 loans were performing according to their scheduled repayment terms.
At June 30, 2010, the Savings Bank's net loans receivable totaled $108.7 million, which represented 51.4% of consolidated total assets. Historically, the Savings Bank has primarily originated adjustable rate loan products. At June 30, 2010, adjustable rate loans with a maturity date after June 30, 2011 accounted for $70.5 million or 63.5% of the total loan portfolio and $68.0 million or 78.1% 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 through June 30, 2010, the Savings Bank experienced futher decreases in its one-to-four family loan portfolio. During the year ended June 30, 2010, originations of one-to-four family loans, including those originated for sale in the secondary market, decreased by $26.9 million to $4.4 million from $31.3 million in the year ended June 30, 2009. The decrease in one-to-four family originations for the portfolio during fiscal 2010 was the result of closing the secondary market operation in June 2009, and the continuing 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 meet its customers needs. 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
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, 2010, the Savings Bank had $3.7 million, or 3.3% of total loans, in interim construction loans in its portfolio of which $461,000 were for residential construction and $3.2 million were for commercial construction, as described below. 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. Because of the amount of its construction loans, and the fact that most of these loans are made with the intent for them to convert to permanent financing, the Savings Bank does not separately disclose these types of loans. The decrease in construction loans was the result of several factors, including reduced demand for such loans, both by borrowers and by the Savings Bank, due to the economic climate, and write downs, based on FASB 114 analyses, of certain existing loans.
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