First Bancshares, Inc. Announces: First Quarter 2004 Financial Results; 2004 Annual Meeting of Stockholders; Revision to Cash Dividend Frequency.Business Editors SAN LUIS OBISPO San Luis Obispo (săn l  `ĭs ōbĭs`pō), city (1990 pop. 41,958), seat of San Luis Obispo co., S Calif., near San Luis Obispo Bay; inc. 1856. , Calif.--(BUSINESS WIRE)--April 30, 2004
First Bancshares, Inc. ("Company") (Pink Sheets:FSLO), the holding company for First Bank of San Luis Obispo ("Bank"), today reported net income of $461 thousand, equivalent to $0.36 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , for the first quarter of 2004. Return on average assets during the first quarter of 2004 was 0.67% and return on average equity was 9.89%. At March 31, 2004, the Company reported record levels of loans and deposits, as its core banking business continued to expand during the most recent quarter. The Company's net income during the first quarter of 2004 benefited from strong gains on the sale of loans. Loan sales during the quarter included SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loans, loans originated through the Company's Mortgage Department located adjacent to its Edna Valley Branch, and loan participations sold to correspondent banks Correspondent bank Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities. . Net income was restrained by historically high levels of expenses for professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and for deposit and worker's compensation insurance. The Company expects significantly lower costs for legal, accounting, and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" in future quarters. The ratio of net interest income to average total assets was 3.82% during the first quarter of 2004, comparing favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to 3.63% for the year 2003. The Company's efficiency ratio was 71.7% during the first quarter of 2004, compared to 68.4% for the year 2003, primarily due to the higher operating costs operating costs npl → gastos mpl operacionales described above. Loans receivable held for investment, net, increased 9.7% from December December: see month. 31, 2003, through March 31, 2004, as the Company experienced strong loan demand across its product line, particularly in construction lending and loans to finance commercial real estate. The Company continues to serve both existing and new local businesses through its participation in a wide range of U.S. Small Business Administration ("SBA") loan programs as a preferred lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. . The Company commenced the second quarter of 2004 with a strong loan pipeline. The Company experienced more credit recoveries than charge-offs in the first quarter of 2004, continuing the pattern commenced in 2003. The Company had just two loans on non-accrual status at March 31, 2004, one of which was paid off in April. The ratio of allowance for loan losses to loans and the ratio of allowance for loan losses to non-accrual loans increased from 1.51% and 189.6% at December 31, 2003, to 1.54% and 208.5% at March 31, 2004, respectively. The Company increased its loan loss reserve during the first quarter of 2004 in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the growth in volume and change in mix of the loan portfolio. The Company had no foreclosed real estate at March 31, 2004, or December 31, 2003. Total deposits increased from $206.3 million at December 31, 2003, to a record $207.7 million at March 31, 2004. During the first quarter of 2004, the Bank hosted a free community seminar concerning identity theft and introduced the Identity Theft Shield product. In April, the Company launched its new Premium Money Market product, which provides tiered tier 1 n. 1. One of a series of rows placed one above another: a stadium with four tiers of seats. 2. A rank or class. tr. & intr.v. interest rates that allow customers to earn higher rates of interest as their balances increase. This product also features ATM and Internet access See how to access the Internet. and check writing. The Company plans to introduce additional new products and product enhancements throughout 2004. The Company's Edna Valley Branch location, in the Marigold marigold, any plant of the genus Tagetes of the family Asteraceae (aster family), mostly Central and South American herbs cultivated elsewhere as garden flowers. The two common species of marigold, both annuals, are distinguished as African, or Aztec (T. Center in San Luis Obispo, celebrated its five-year anniversary during the quarter with a well attended public reception. The Company continued its extensive community outreach Outreach is an effort by an organization or group to connect its ideas or practices to the efforts of other organizations, groups, specific audiences or the general public. program during 2004, including providing funding for the development of affordable housing in the City of San Luis Obispo. Commenting on the first quarter results, David R. Booker, the Company's Chief Executive Officer, stated: "We enjoyed a number of successes during the first quarter, including a notable restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Company's asset mix to facilitate increased earnings. The shift in assets from cash & cash equivalents to loans and, to a lesser extent, securities will augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: interest income in future months. The significant growth in loans outstanding was gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. , and is perhaps the best evidence of the Bank's extensive involvement in and contributions to our local communities. Despite these accomplishments, however, the Company's return on average assets was below that enjoyed by many peer bank holding companies. The Board of Directors is working closely with Management to identify and implement profit improvement initiatives, including both revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. and efficiency improvements." The Bank's regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios at March 31, 2004, were 9.42% Leverage Ratio, 12.69% Tier One Risk-Based Capital Ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. , and 13.94% Total Risk-Based Capital Ratio. These ratios are well in excess of the federal statutory criteria criteria (krītēr´ē  ),n. for the Bank to be classified in the highest regulatory capital category of "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. ." The Company's 2004 Annual Meeting of Stockholders will take place on Wednesday Wednesday: see week. , June June: see month. 23, 2004, at 10:00 AM at the Embassy Suites hotel in San Luis Obispo. Stockholders of record as of May 10, 2004, will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to vote at the meeting. All stockholders are cordially invited to attend. The Company will soon be mailing proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. material to eligible stockholders. The Board of Directors has decided to change the Company's cash dividend payment frequency from quarterly to annual, with the annual payment made in the fourth quarter of each year. This change will allow the Board to better manage the capital position of the Company and the Bank, support the growth of the Bank, and reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The Company most recently paid a cash dividend of $0.25 per share in the first quarter of 2004. In discussing the first quarter performance, Reese REESE Research and Evaluation on Education in Science and Engineering (National Science Foundation) T. Davies Da·vies , Arthur Bowen 1862-1928. American painter who was the chief organizer of the revolutionary Armory Show in 1913. , the Company's President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , commented: "I am excited about the amount of growth and change now taking place at First Bank. We are in the process of implementing new technology that will allow us to operate more efficiently while also enhancing customer service. The recent resolution of the SBA program funding in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C., means that we can again make larger SBA loans to help local businesses start up, expand, add new customers, and generate local jobs. We are relocating our office for the sale of non-FDIC-insured investments to a more visible and accessible location to help even more customers with their financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against . In addition, by the end of the year, we anticipate the completion of our new Small Business Resource Center. This is an area within our headquarters building where local business owners and managers can come to obtain pertinent PERTINENT, evidence. Those facts which tend to prove the allegations of the party offering them, are called pertinent; those which have no such tendency are called impertinent, 8 Toull. n. 22. By pertinent is also meant that which belongs. Willes, 319. information, evaluate credit alternatives, review services, and discuss employee benefits. First Bank was recently voted the #2 financial institution in San Luis Obispo County by a New Times newspaper survey. I believe these changes will only solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. , if not improve, our ranking." The Company and the Bank are headquartered in San Luis Obispo. The Bank's deposits are insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. ("FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ") to the maximum extent allowed by law. Certain of the statements contained herein that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "target," "plans," "may increase," "may fluctuate," "may result in," "are projected," and similar expressions. The Company's actual results may differ materially from those included in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including, but not limited to, the economic, business, and real estate market conditions in the Company's market areas; the interest rate environment; competition; regulatory and legislative actions; the possibility that the Company will not be successful in achieving its strategic objectives; the performance and contributions of employees and Directors; and other factors. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements. This news release is available at the www.firstbankslo.com Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site for no charge.
FIRST BANCSHARES, INC.
Consolidated Financial Highlights
Unaudited
(Dollars In Thousands)
March 31, December 31,
2004 2003
--------------- ---------------
Financial Condition Data
--------------------------------------
Cash and due from banks $10,387 $11,083
Federal funds sold -- 13,242
Interest-bearing deposits 229 9,479
Securities available for sale, at
estimated fair value:
Obligations of states and political
subdivisions 5,694 7,696
Mortgage-backed securities 27,218 16,204
Collateralized mortgage obligations 41,889 44,609
Loans held for sale, at lower of cost
or market 2,186 4,637
Loans receivable held for investment:
Residential one to four unit real
estate loans 19,786 16,852
Home equity lines of credit 12,854 12,730
Multifamily five or more units real
estate loans 9,922 7,533
Commercial and industrial real
estate loans 75,792 69,208
Construction loans 14,347 10,908
Land / lot loans 19,086 17,317
Farm real estate loans 2,599 2,737
Farm business loans 494 688
Commercial business loans 17,487 20,022
Consumer loans 7,342 5,813
--------------- ---------------
Sub-total gross loans held for
investment 179,709 163,808
Less:
Deferred loan fees, costs,
premiums, and discounts (731) (665)
Allowance for loan losses (2,784) (2,531)
--------------- ---------------
Loans receivable held for investment,
net 176,194 160,612
Investment in capital stock of the
Federal Home Loan Bank, at cost 2,861 3,916
Accrued interest receivable 1,081 1,062
Premises and equipment, net 931 964
Bank-owned life insurance 5,130 5,078
Other assets 4,030 3,712
--------------- ---------------
Total assets $277,830 $282,294
=============== ===============
Noninterest-bearing demand deposits $50,578 $51,885
Interest-bearing NOW checking accounts 19,378 19,868
Savings accounts 14,415 14,010
Money market accounts 66,156 60,520
Certificates of deposit 57,156 60,056
--------------- ---------------
Total deposits 207,683 206,339
Advances from the Federal Home Loan
Bank 39,886 46,908
ESOP debt -- 38
Other borrowings 902 --
Junior subordinated debentures 8,065 8,052
Accrued interest payable 420 477
Other liabilities 2,015 2,005
--------------- ---------------
Total liabilities 258,971 263,819
--------------- ---------------
Stockholders' equity 18,859 18,475
--------------- ---------------
Total liabilities and stockholders'
equity $277,830 $282,294
=============== ===============
FIRST BANCSHARES, INC.
Consolidated Financial Highlights, Continued
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months
Ended
March 31, 2004
-------------------------------------
Operating Data
--------------------------------
Interest and dividend income (1) $3,472
Interest expense 843
-------------------------------------
Net interest income before
provision for loan losses 2,629
Provision for loan losses 250
-------------------------------------
Net interest income after
provision for loan losses 2,379
-------------------------------------
Noninterest income:
Gain on sale of loans 223
Customer service charges 204
Gains (losses) on sales of
securities, net 135
Income from loan servicing 68
Income from bank-owned life
insurance 51
Credit card fees 19
Commissions from sales of non-
insured products 1
Other income 9
-------------------------------------
Total noninterest income 710
-------------------------------------
Noninterest expense:
Compensation and employee
benefits 1,318
Data and item processing 156
Occupancy 126
Equipment 81
Accounting, legal, and
consulting 197
Advertising and promotion 55
Supplies, printing, and
postage 62
Director fees 57
Deposit insurance premiums 94
Other expenses 249
-------------------------------------
Total noninterest expense 2,395
-------------------------------------
Income before provision for
income taxes 694
Provision for income taxes 233
-------------------------------------
Net income $461
=====================================
Shares applicable to basic and
diluted earnings per share 1,266,333
Basic and diluted earnings per
share $0.36
=====================================
(1) Not taxable equivalent
FIRST BANCSHARES, INC.
Selected Ratios And Other Data
Unaudited
(Dollars In Thousands Except Per Share Amounts)
Three Months
Ended
March 31, 2004
---------------------------------------------
Profitability Ratios
------------------------
Return on average assets 0.67%
Return on average equity 9.89%
Net interest income /
average total assets 3.82%
Efficiency ratio 71.73%
Other Information
------------------------
Average total assets $275,268
Average stockholders'
equity $18,638
Cash dividends paid per
share $0.25
March 31, 2004 December 31, 2003
----------------- -----------------
Asset Quality Information
---------------------------------
Non-accrual loans $1,335 $1,335
Allowance for loan losses $2,784 $2,531
Non-accrual loans /
total assets 0.48% 0.47%
Allowance for loan losses /
loans outstanding 1.54% 1.51%
Allowance for loan losses /
non-accrual loans 208.54% 189.59%
Bank Regulatory Capital Ratios
---------------------------------
Leverage capital ratio 9.42% 8.52%
Tier one risk-based capital ratio 12.69% 12.97%
Total risk-based capital ratio 13.94% 14.22%
Other Information
---------------------------------
Full-service customer facilities 2 2
Number of ATMs 3 3
Net loans to deposits ratio 85.89% 80.09%
Nominal and tangible book value
per share $14.88 $14.58
Shares of common stock
outstanding 1,267,278 1,267,278
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