First Bancshares, Inc. Announces First Quarter 2021 Results

Rhea-AI Summary

First Bancshares, Inc. (FBSI) reported a net income of $1,234,000 or $0.47 per share-diluted for Q1 2021, marking a $397,000 increase compared to Q1 2020. The rise in net income is attributed to a $317,000 boost in net interest income, despite a $16,000 rise in non-interest expenses. Total assets grew to $418.26 million, with net loans increasing by 7.03% to $311.98 million and total deposits up by 3.97% to $370.61 million. However, management anticipates future pressure on the net interest margin due to market volatility.

Positive

• Net income increased by $397,000 year-over-year.
• Net interest income after provisions for loan losses rose by $317,000.
• Total assets grew to $418.26 million, a 2.43% increase from the end of 2020.
• Net loans increased by 7.03% to $311.98 million.
• Total deposits increased by 3.97% to $370.61 million.
• Bank meets all regulatory requirements for 'well-capitalized' status.

Negative

• Anticipated future pressure on net interest margin due to market volatility.
• Increase in non-interest expenses by $16,000.

MOUNTAIN GROVE, Mo., April 13, 2021 (GLOBE NEWSWIRE) -- First Bancshares, Inc. (OTCPink - FstBksh: FBSI) (“Company”), the holding company for Stockmens Bank (“Bank”), today announced its financial results for the quarter ended March 31, 2021.

For the quarter ended March 31, 2021, the Company reported net income, of $1,234,000 or $0.47 per share-diluted, compared to $837,000, or $0.32 per share-diluted for the comparable period in 2020. The $397,000 increase in net income for the quarter ended March 31, 2021 compared to the quarter ended March 31, 2020 was attributable to a $317,000 increase in net interest income after provisions for loan losses, offset by a $16,000 increase in non-interest expense, a $120,000 gain on sales of investments, along with a modest $19,000 increase in non-interest income, and a $43,000 increase in income tax expense.

Consolidated total assets at March 31, 2021 were $418.26 million, compared to $406.27 million at December 31, 2020. Since year end 2020, Net loans increased 7.03% to $311.98 million, total deposits increased 3.97% to $370.61 million, and total capital rested at $42.76 million, or 10.22% of total assets compared to $42.77 million, or 10.53% of total assets, at December 31, 2020.

Management continues to expect strain in the interest rate environment and significantly enhanced market volatility to create future pressure on the Bank’s net interest margin and interest earnings capacity. As such, Management has taken proactive steps to redeploy liquidity reserves at maximum yield without accepting additional risk and employing interest rate risk strategies to protect future margins. Management continues to be conservative with non-interest expenses and produced another quarter of positive earnings in light of implementing plans to protect future performance.

The Bank meets all regulatory requirements for “well-capitalized” status and has elected to opt-in to the Community Bank Leverage Ratio framework.

About the Company

First Bancshares, Inc. is the holding company for Stockmens Bank, a FDIC-insured commercial bank chartered by the State of Colorado that conducts business from its home office in Colorado Springs, Colorado, and eight full service Missouri offices in Mountain Grove, Marshfield, Ava, Kissee Mills, Gainesville, Sparta, Crane and Springfield, and a full service office in Bartley, Nebraska.

Cautionary Note Regarding Forward-Looking Statements

The Company and its wholly-owned subsidiary, Stockmens Bank, may from time to time make written or oral “forward-looking statements” in its reports to shareholders, 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, 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.

Contact: Robert M. Alexander, Chairman and CEO - (719) 955-2800

First Bancshares, Inc. and Subsidiaries
Financial Highlights
(In thousands, except per share amounts)
			Quarter Ended
			March 31,
			2021			2020
Operating Data:
Total interest income			$	3,994		$	4,078
Total interest expense				324			769
	Net interest income			3,670			3,309
Provision for loan losses				225			181
	Net interest income after provision for loan losses			3,445			3,128
Gain (loss) on sale of investments				120			-
Non-interest income				338			319
Non-interest expense				2,320			2,304
Income before taxes				1,583			1,143
Income tax expense (benefit)				349			306
	Net income (loss)		$	1,234		$	837
	Earnings (loss) per share - diluted		$	0.47		$	0.32
			At			At
			March 31,			December 31,
Financial Condition Data:			2021			2020
Cash and cash equivalents
	(excludes CDs)		$	39,827		$	61,834
Investment securities
	(includes CDs)			37,685			25,678
Loans receivable, net				311,982			291,497
Goodwill and intangibles				2,051			2,086
Total assets				418,255			406,265
Deposits				370,611			356,474
Repurchase agreements				1,898			1,625
FHLB advances				-			3,000
Stockholders' equity				42,755			42,765
Book value per share			$	16.39		$	16.35

FAQ

What were the financial results for First Bancshares, Inc. for Q1 2021?

First Bancshares, Inc. reported a net income of $1,234,000 or $0.47 per share-diluted for Q1 2021.

How much did net income increase for First Bancshares, Inc. compared to the same quarter last year?

Net income increased by $397,000 compared to Q1 2020.

What were the total assets for First Bancshares, Inc. at the end of Q1 2021?

Total assets were $418.26 million at the end of Q1 2021.

What is the status of First Bancshares, Inc.'s capital requirements?

The Bank meets all regulatory requirements for 'well-capitalized' status.

What challenges does First Bancshares, Inc. anticipate in the future?

Management expects future pressure on net interest margin due to market volatility.