First Bancshares, Inc. Announces First Quarter Results for 2023

Rhea-AI Summary

First Bancshares, Inc. (OTCQX: FBSI) reported a strong financial performance for the quarter ending March 31, 2023, achieving a net income of $1,787,000, equating to $0.73 per share-diluted, up from $1,020,000 or $0.42 per share in 2022. Key metrics include a $1,087,000 rise in net interest income after provisions for loan losses and a 6.06% increase in total assets to $500.17 million. Total deposits grew by 3.33% to $434.65 million, while net loans rose 2.37% to $414.79 million. Despite facing challenges like wage inflation and market competition, the company improved its net interest margin and efficiency ratio. The Bank maintains a “well-capitalized” status according to regulatory standards.

Positive

• Net income increased by $767,000 year-over-year.
• Net interest income after loan losses rose by $1,087,000.
• Total assets rose 6.06% to $500.17 million.
• Deposits increased by 3.33% to $434.65 million.
• Net loans grew by 2.37% to $414.79 million.
• Company achieved improved net interest margin and efficiency ratio.

Negative

• Income tax expense increased by $255,000.
• Increased non-interest expense by $122,000.

MOUNTAIN GROVE, Mo., April 14, 2023 (GLOBE NEWSWIRE) -- First Bancshares, Inc. (OTCQX: FBSI) (“Company”), the holding company for Stockmens Bank (“Bank”), today announced its financial results for the quarter ended March 31, 2023.

For the quarter ended March 31, 2023, the Company reported net income of $1,787,000 or $0.73 per share-diluted, compared to $1,020,000, or $0.42 per share-diluted for the comparable period in 2022. Quarter to date changes from the quarter ended March 31, 2022, include a $1,087,000 increase in net interest income after provision for loan losses, along with a $57,000 increase in non-interest income, offset by a $122,000 increase in non-interest expense and a $255,000 increase in income tax expense. This resulted in a $767,000 increase in net income for the quarter ended March 31, 2023, compared to the same period in 2022. The Company has successfully improved both net interest margin and efficiency ratio, despite the challenges presented by persistent wage and cost inflation as well as increased competition in the liquidity market.

Consolidated total assets increased 6.06% to $500.17 million as of March 31, 2023, compared to $471.58 million on December 31, 2022. Since year end 2022, Net loans increased 2.37% to $414.79 million, liquid assets increased 30.21% to $44.04 million, total deposits increased 3.33% to $434.65 million, and total capital rested at $49.39 million, or 9.88% of total assets compared to $47.59 million, or 10.09% of total assets, on December 31, 2022. The capital changes are primarily driven by the Company’s organic earnings, balance sheet growth, and unrealized losses in the securities portfolio.

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

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, Crane, Hartville and Springfield, and full-service offices in Bartley, Nebraska and Akron, Colorado.

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.

First Bancshares, Inc. and Subsidiaries Financial Highlights (unaudited) (In thousands, except per share amounts)
		Quarter Ended
		March 31,
			2023				2022
Operating Data:
Total interest income		$	6,028			$	4,093
Total interest expense			1,115				255
Net interest income			4,914				3,838
Provision for loan losses			215				225
Net interest income after provision for loan losses			4,699				3,613
Gain (loss) on sale of investments			-				-
Non-interest income			400				343
Non-interest expense			2,715				2,593
Income before taxes			2,384				1,363
Income tax expense			598				343
Net income		$	1,787			$	1,020
Earnings per share		$	0.73			$	0.42
		At				At
		March 31,				December 31,
Financial Condition Data:			2023				2022
Cash and cash equivalents
(excludes CDs)		$	40,822			$	21,781
Investment securities
(includes CDs)			13,971				13,831
Loans receivable, net			414,788				405,188
Goodwill and intangibles			1,765				1,800
Total assets			500,166				471,575
Deposits			434,653				420,666
Repurchase agreements			1,015				864
Borrowings			11,000				-
Stockholders' equity			49,393				47,586
Book value per share		$	20.25			$	19.50

FAQ

What were First Bancshares, Inc.'s financial results for Q1 2023?

First Bancshares, Inc. reported a net income of $1,787,000 or $0.73 per share-diluted for Q1 2023, up from $1,020,000 or $0.42 per share in Q1 2022.

How much did total assets increase for First Bancshares, Inc. by March 31, 2023?

Total assets increased by 6.06% to $500.17 million as of March 31, 2023.

What is the net income growth for First Bancshares, Inc. compared to last year?

The net income for Q1 2023 increased by $767,000 compared to the same period in 2022.

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

The Bank is categorized as 'well-capitalized' according to regulatory standards.

What were the earnings per share for First Bancshares, Inc. for Q1 2023?

Earnings per share for Q1 2023 were $0.73, up from $0.42 in Q1 2022.