First Bancshares posts 26% profit bump

Mountain Grove-based First Bancshares Inc. (OTCQB: FBSI) recorded net income of $180,000 for its fiscal third quarter ended March 31, a 26 percent bump from earnings of $141,000 in the same quarter a year ago.

The holding company, which operates a Springfield branch of First Home Savings Bank at 2655 S. Campbell Ave., reported earnings per share of 11 cents, up from 9-cent earnings for the same quarter a year ago, according to a news release.

The quarterly is attributable to an additional $74,000 in net interest income and an increase of $52,000 in noninterest income. This was partially offset by a $13,000 decrease in investment sales and a $74,000 increase in nonnterest expense.

Third-quarter financial highlights:

• The company recorded no provision for loan losses, the same as the third quarter of 2013.
• Classified loans were $2.2 million compared to $4.5 million at the same time last year. The decrease was the result of increased monitoring by management to identify and resolve issues with potential problem loans.  
• The allowance for loan losses, as of March 31, was $1.6 million, or 1.5 percent of total loans, compared to $1.7 million, or 1.7 percent of total loans in March 2013.
• Net loans receivable rose 10.9 percent to $106 million.
• Deposits decreased 2.7 percent to $4.4 million.
• Retail repurchase agreements decreased 95 percent to $6.1 million, which the company attributes to a large competitively bid account that was transferred during the quarter ended Sept. 30, 2013.

As of March 31, the company's assets were $193.8 million and deposits were $168.2 million. The company operates eight branches, all in Missouri, according to the release.

The company's pink sheet stock was trading at $8.10 as of 10:35 a.m., compared to a 52-week range of $7.10 to $8.60.