First Bancshares, Inc. Announces Third Quarter 2020 Results
First Bancshares, Inc. (FBSI) reported a net income of $1,049,000 or $0.40 per share for Q3 2020, a slight increase from $997,000 or $0.39 per share in Q3 2019. Year-to-date income reached $2.93 million or $1.11 per share, up from $2.77 million or $1.09 per share last year. Total assets grew to $402.22 million, with net loans up 11.46% and total deposits rising 14.26%. However, total capital increased modestly, and net interest margin may face future pressures due to market volatility.
- Net income rose to $1,049,000 in Q3 2020, a $52,000 increase year-over-year.
- Year-to-date net income increased to $2.93 million, up from $2.77 million in 2019.
- Total assets grew by 13.54% to $402.22 million since December 31, 2019.
- Net loans increased by 11.46% to $299.78 million.
- Total deposits rose by 14.26% to $347.66 million.
- Bank maintains 'well-capitalized' regulatory status.
- Non-interest expenses increased by $103,000, impacting overall profitability.
- Significant 67.75% decrease in the securities portfolio, impacting long-term investment strategy.
- Management warns of potential future pressure on net interest margin due to interest rate volatility.
MOUNTAIN GROVE, Miss., Oct. 09, 2020 (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 September 30, 2020.
For the quarter ended September 30, 2020, the Company reported net income, of
Year to date net income ending September 30, 2020 totaled
Consolidated total assets at September 30, 2020 were
In addition, volatility in interest rate markets triggered several calls in the Banks securities portfolio, coupled with Managements decision to sell certain investment assets at a gain, resulted in a
Management continues to expect the 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 | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Operating Data: | |||||||||||||
| Total interest income | $ | 4,103 | $ | 4,264 | $ | 12,348 | $ | 12,627 | |||||
| Total interest expense | 539 | 885 | 1,865 | 2,495 | |||||||||
| Net interest income | 3,564 | 3,379 | 10,483 | 10,132 | |||||||||
| Provision for loan losses | 225 | 160 | 631 | 945 | |||||||||
| Net interest income after provision for loan losses | 3,339 | 3,219 | 9,852 | 9,187 | |||||||||
| Gain (loss) on sale of investments | 62 | - | 62 | - | |||||||||
| Non-interest income | 305 | 304 | 851 | 957 | |||||||||
| Non-interest expense | 2,293 | 2,190 | 6,807 | 6,468 | |||||||||
| Income before taxes | 1,413 | 1,333 | 3,958 | 3,676 | |||||||||
| Income tax expense | 364 | 336 | 1,031 | 904 | |||||||||
| Net income | $ | 1,049 | $ | 997 | $ | 2,927 | $ | 2,772 | |||||
| Earnings per share | $ | 0.40 | $ | 0.39 | $ | 1.11 | $ | 1.09 | |||||
| At | At | ||||||||||||
| September 30, | December 31, | ||||||||||||
| Financial Condition Data: | 2020 | 2019 | |||||||||||
| Cash and cash equivalents | $ | 60,946 | $ | 14,318 | |||||||||
| (excludes CDs) | |||||||||||||
| Investment securities | 15,267 | 47,335 | |||||||||||
| (includes CDs) | |||||||||||||
| Loans receivable, net | 299,784 | 268,969 | |||||||||||
| Goodwill and intangibles | 2,122 | 2,229 | |||||||||||
| Total assets | 402,218 | 354,185 | |||||||||||
| Deposits | 347,657 | 304,257 | |||||||||||
| Repurchase agreements | 1,762 | 5,686 | |||||||||||
| FHLB advances | 3,500 | 3,000 | |||||||||||
| Stockholders' equity | 42,654 | 37,667 | |||||||||||
| Book value per share | $ | 15.95 | $ | 14.81 | |||||||||
FAQ
What were First Bancshares, Inc.'s Q3 2020 financial results?
How did First Bancshares, Inc.'s year-to-date income change in 2020?
What is the current total asset amount for First Bancshares, Inc.?
How have loans and deposits changed for First Bancshares, Inc. since 2019?
What challenges does First Bancshares, Inc. anticipate in the near future?
