First Bancshares announced its financial results for the first quarter ended March 31, 2015 with net income of $96,000, or $0.06 per diluted share.
Article continues below
This compares to net income of $180,000, or $0.11 per diluted share for the quarter ended March 31, 2014.
The $84,000 decrease in net income for the quarter ended March 31, 2015 compared to the quarter ended March 31, 2014 is attributable to an increase in the provision for loan losses of $60,000, a decrease in gains on sale of investments of $43,000, a decrease in non-interest income of $77,000 and an increase of $40,000 in non-interest expense. This was partially offset by an increase of $136,000 in net interest income.
During the quarter ended March 31, 2015, net interest income increased by $136,000, or 10.9%, to $1.39 million from $1.25 million during the quarter ended March 31, 2014.
This increase was the result of an increase in interest income of $139,000, or 9.2% and was partially offset by an increase of $3,000, or 1.2%, in interest expense. The increase in interest income is due to the growth in the company's loan portfolio. The increase in interest expense was primarily the result of an increase in the company's deposit portfolio.
Provision for loan losses for the quarter ended March 31, 2015 were $60,000 compared to no provision for loan losses for the quarter ended March 31, 2014. Provision for loan losses during the March 31, 2015 quarter is attributable to the growth in the company's loan portfolio.
The allowance for loan losses at March 31, 2015 was $1.70 million, or 1.4% of total loans, compared to $1.58 million, or 1.5% of total loans at March 31, 2014. Classified loans at March 31, 2015 were $1.44 million compared to $2.20 million at March 31, 2014.
For the quarter ended March 31, 2015, the company had a loss on sale of investments of $14,000, compared to a gain on sale of investments of $29,000 during the quarter ended March 31, 2014.
During the quarter ended March 31, 2015, market conditions presented management an opportunity to sell securities in order to reduce the company's interest rate risk profile while also allowing management to use the proceeds from these sales to fund loans that have increased the company's interest income.
Non-interest income decreased by $77,000, or 26.6% to $213,000 for the quarter ended March 31, 2015 from $290,000 for the quarter ended March 31, 2014.
The decrease was the result of no gains or losses on other real estate owned (OREO) during the quarter ended March 31, 2015, compared to a gain of $63,000 on OREO during the quarter ended March 31, 2014, and a decrease in service charges on deposit accounts of $8,600. Other non-interest income items for the quarter ended March 31, 2015 decreased by $5,400.
Non-interest expense increased by $40,000, or 2.9%, to $1.43 million for the quarter ended March 31, 2015 from $1.39 million for the quarter ended March 31, 2014.
The increase reflects an increase of $45,000 in salaries and employee benefits and an increase of $14,000 in professional fees consisting of legal, accounting and consulting service related expenses. Other non-interest expense items for the quarter ended March 31, 2015 decreased by $19,000.
Total consolidated assets at March 31, 2015 were $199.00 million, compared to $196.36 million at December 31, 2014, representing an increase of $2.64 million, or 1.3%. Stockholders' equity at March 31, 2015 was $16.27 million, or 8.2% of assets, compared with $15.27 million, or 7.8% of assets at December 31, 2014.
Book value per common share increased to $10.50 at March 31, 2015 from $9.85 at December 31, 2014. The $1.01 million, or 6.6% increase in stockholders' equity was attributable to a decrease in the unrealized loss on available-for-sale securities, net of income taxes of $910,000 and by net income for the quarter ended March 31, 2014 of $96,000
Net loans receivable increased $5.77 million, or 5.8%, to $121.77 million at March 31, 2015 from $116 million at December 31, 2014. While loan growth has been the key focus for the company, we have continued to concentrate on maintaining high asset quality as we have increased our loans.
Nonperforming loans at March 31, 2015 were $897,000, or 0.7% of net loans, compared to $1.25 million in nonperforming loans, or 1.08% of net loans at December 31, 2014. Deposits increased $2.09 million, or 1.2% to $170.83 million at March 31, 2015 from $168.75 million at December 31, 2014. FHLB advances decreased $500,000, or 4.4%, to $11 million at March 31, 2015 from $11.5 million at December 31, 2014. ■