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PRESS RELEASE
FIRST SOUTHERN BANCSHARES, INC. PROVIDES GUIDANCE AS TO RESULTS FOR
THE FOURTH QUARTER AND FISCAL YEAR ENDED DECEMBER 31, 2000 AND
ANNOUNCES THE DISCONTINUATION OF DIVIDENDS
FLORENCE, Ala.-- (BUSINESS WIRE)--Jan. 8, 2001--First Southern Bancshares, Inc.
(Nasdaq:FSTH - news), the holding company for First Southern Bank, Florence,
Alabama, today announced as a result of loan charge-offs and deterioration in
the Bank's commercial loan portfolio, the Bank will incur significant provision
expense for the fourth quarter of fiscal 2000. First Southern anticipates that
this increase in provision expense will result in a net loss for the fourth
quarter of fiscal 2000 and a net loss for fiscal 2000 in a material amount not
yet determined. In addition, First Southern anticipates that the Bank's capital
account and First Southern's consolidated capital account will be materially
adversely affected as a result of the net loss for fiscal 2000. If capital is
reduced below certain regulatory minimums, the bank regulatory agencies may
impose certain restrictions upon First Southern's and the Bank's activities or
require either First Southern or the Bank to take certain remedial actions.
As a result of the anticipated loss for fiscal 2000, First Southern will not
declare a dividend for the quarter ended December 31, 2000. In addition, First
Southern intends to discontinue its quarterly dividend for future quarters for
the foreseeable future.
First Southern Bank is headquartered in Florence, Alabama, and operates through
its executive/branch office in Florence and through five other full service
branches located in Lauderdale and Colbert Counties, Alabama. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation.
Statements contained in this news release, which are not historical facts, are
forward-looking statements, as the term in defined in the Private Securities
Litigations Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which include, but
are not limited to, factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time.
CONTACT:
First Southern Bancshares Inc., Florence
Charles L. Frederick Jr., 256/718-4215
