U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: SEPTEMBER 30, 1998
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 33-94288
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THE FIRST BANCSHARES, INC.
-----------------------------------
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
MISSISSIPPI 64-0862173
(STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
6480 U.S. HIGHWAY 98 WEST
HATTIESBURG, MISSISSIPPI 39404-5549
---------------------------------- ------------------------------------
(ADDRESS OF PRINCIPAL (ZIP CODE)
EXECUTIVE OFFICES)
(601) 268-8998
------------------------------------------------
(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NONE
--------------------------------------------------------------------
(FORMER NAME, ADDRESS AND FISCAL YEAR, IF CHANGED SINCE LAST REPORT)
INDICATE BY CHECK MARK WHETHER THE ISSUER: (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE
ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD
THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN
SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
--- ---
-------------------------
ON SEPTEMBER 30, 1998, 721,848 SHARES OF THE ISSUER'S COMMON STOCK, PAR VALUE
$1.00 PER SHARE, WERE ISSUED AND OUTSTANDING.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE):
YES NO X
--- ---
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------
THE FIRST BANCSHARES, INC., AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ amounts in thousands) (Unaudited)
September 30, December 31,
ASSETS 1998 1997
==========================================================================
Cash and due from banks $ 2,083 $ 970
Federal funds sold 2,237 1,870
Securities held-to-maturity, at amortized cost 207 507
Securities available-for-sale, at fair value 8,454 3,797
Loans 26,156 17,487
Allowance for loan losses (283) (194)
- --------------------------------------------------------------------------
LOANS, NET 25,873 17,293
- --------------------------------------------------------------------------
Premises and equipment 3,201 2,093
Accrued income receivable 444 188
Other assets 837 809
- --------------------------------------------------------------------------
$ 43,336 $ 27,527
==========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
==========================================================================
Liabilities:
Deposits:
Noninterest-bearing $ 3,527 $ 2,479
Time, $100,000 or more 7,282 2,631
Interest-bearing 25,953 15,948
- --------------------------------------------------------------------------
TOTAL DEPOSITS 36,762 21,058
Interest payable 141 95
Other liabilities 26 6
- --------------------------------------------------------------------------
TOTAL LIABILITIES 36,929 21,159
- --------------------------------------------------------------------------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value. Authorized
10,000,000 shares; issued and
outstanding 721,848 at September 30, 1998
and December 31, 1997 722 722
Paid-in capital 6,451 6,451
Accumulated deficit (767) (817)
Accumulated other comprehensive income 1 12
- --------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 6,407 6,368
- --------------------------------------------------------------------------
$43,336 $27,527
==========================================================================
THE FIRST BANCSHARES, INC., AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
($ amounts in thousands except earnings per share)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
__________________ __________________
1998 1997 1998 1997
-------- -------- -------- --------
INTEREST INCOME:
Loans, including fees $ 630 $ 340 $ 1,801 $ 707
Securities:
Taxable 112 79 283 223
Tax exempt - - - -
Federal funds sold 17 20 52 69
- ------------------------------------------------------------------------
TOTAL INTEREST INCOME 759 439 2,136 999
- ------------------------------------------------------------------------
INTEREST EXPENSE:
Deposits 340 189 972 414
Other borrowings 18 - 51 -
- ------------------------------------------------------------------------
TOTAL INTEREST EXPENSE 358 189 1,023 414
- ------------------------------------------------------------------------
NET INTEREST INCOME 401 250 1,113 585
PROVISION FOR LOAN LOSSES 22 38 92 122
- ------------------------------------------------------------------------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 379 212 1,021 463
- ------------------------------------------------------------------------
OTHER INCOME:
Service charges on deposit
accounts 52 17 120 53
Other service charges,
commissions and fees 16 6 41 15
Gain on sale of properties - 112 - 112
- ------------------------------------------------------------------------
TOTAL OTHER INCOME 68 135 161 180
- ------------------------------------------------------------------------
OTHER EXPENSES:
Salaries and employee benefits 208 162 583 459
Occupancy and equipment
expense 68 47 184 125
Other operating expenses 134 111 365 286
- ------------------------------------------------------------------------
TOTAL OTHER EXPENSES 410 320 1,132 870
- ------------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 37 27 50 (227)
INCOME TAXES - - - -
- ------------------------------------------------------------------------
NET INCOME (LOSS) $37 $27 $50 $(227)
========================================================================
EARNINGS (LOSS) PER SHARE -
BASIC $.05 $.04 $.07 $(.31)
========================================================================
EARNINGS (LOSS) PER SHARE -
ASSUMING DILUTION $.05 $.04 $.07 $(.31)
========================================================================
THE FIRST BANCSHARES, INC., AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
___________________
1998 1997
________ ________
$ Amounts in Thousands
=========================================================================
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) $ 50 $ (227)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 124 195
Provision for loan losses 92 122
Increase in accrued income receivable (256) (612)
Increase in interest payable 46 105
Other, net (39) (19)
- -------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 17 (436)
- -------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of securities held to maturity 300 -
Maturities and calls of securities
available for sale 2,883 4,755
Purchases of securities available-for-sale (7,540) (4,950)
Net increase in loans (8,672) (10,183)
Purchases of premises and equipment (1,212) (504)
- -------------------------------------------------------------------------
NET CASH USED BY INVESTING ACTIVITIES (14,241) (10,882)
- -------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits 15,704 10,233
- -------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,704 10,233
- -------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 1,480 (1,085)
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD 2,840 3,770
- -------------------------------------------------------------------------
CASH AND DUE FROM BANKS AT END OF PERIOD $4,320 $ 2,685
=========================================================================
CASH PAYMENTS FOR INTEREST $ 977 $ 364
CASH PAYMENTS FOR INCOME TAXES - -
=========================================================================
THE FIRST BANCSHARES, INC., AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial statements and with the instructions to Form 10-QSB and
Item 310(b) of Regulation S-B of the Securities and Exchange Commission.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. However, in the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered
necessary for a fair presentation have been included. Operating
results for the nine months ended September 30, 1998, are not
necessarily indicative of the results that may be expected for the
year ended December 31, 1998. For further information, please refer
to the consolidated financial statements and footnotes thereto
included in the Company's Form 10-KSB for the year ended December 31,
1997.
NOTE B -- SUMMARY OF ORGANIZATION
The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was
incorporated June 23, 1995, under the laws of the State of Mississippi for
the purpose of operating as a bank holding company with respect to a then
proposed de novo bank, The First National Bank of South Mississippi,
Hattiesburg, Mississippi (the "Hattiesburg Bank").
The Company offered its common stock for sale to the public under an
initial public offering price of $10 per share. As of August 27, 1996,
when the offering was terminated, 721,848 shares were sold, resulting in
net proceeds of approximately $7,118,480.
During 1996, the Company obtained regulatory approval to operate a
national bank in Hattiesburg, Mississippi. The Hattiesburg Bank opened
for business on August 5, 1996, with a total capitalization of $5.2 million.
Upon the opening of the Hattiesburg Bank, the Company ceased to be considered
as a "development stage enterprise" as its planned principal operations had
commenced. The Hattiesburg Bank's deposits are each insured up to $100,000
by the Federal Deposit Insurance Corporation.
The Company has recently entered into a bank development agreement with the
organizers of The First National Bank of the Pine Belt, a proposed de novo
community bank in Laurel, Mississippi (the "Laurel Bank"). On August 10,
1998, the Company filed a registration statement on Form SB-2 relating to
the issuance of up to 533,333 shares of Common Stock in connection with the
formation of the Laurel Bank. The organizers of the Laurel Bank (together
with members of their families) have indicated that they intend to purchase
an aggregate of 166,667 shares of Common Stock (approximately $2.5 million)
in this offering. The Company intends to use the first $5.0 million in
proceeds from this offering to provide the initial capitalization of the
Laurel Bank, which the Company anticipates will open in early 1999.
The Company's strategy is for the Hattiesburg Bank and the Laurel Bank to
operate on a decentralized basis, emphasizing each Bank's local board of
directors and management and their knowledge of their local community. Each
Bank's local board of directors will act to promote its Bank and introduce
prospective customers. The Company believes that this autonomy will allow
each Bank to generate high-yielding loans and to attract and retain core
deposits.
The Hattiesburg Bank is engaged in a general commercial banking business,
emphasizing in its marketing the Hattiesburg Bank's local management and
ownership. The Hattiesburg Bank offers a full range of banking services
designed to meet the basic financial needs of its customers. These services
include checking accounts, NOW accounts, money market deposit accounts,
savings accounts, certificates of deposit and individual retirement accounts.
The Hattiesburg Bank also offers short- to medium-term commercial and
personal loans. At September 30, 1998, the Company had approximately $43.3
million in assets, $26.2 million in loans, $36.7 million in deposits, and
$6.4 million in shareholders' equity.
NOTE C - EARNINGS PER COMMON SHARE
Basic per share data is calculated based on the weighted-average number of
common shares outstanding during the reporting period. Diluted per share
data includes any dilution from potential common stock outstanding, such
as exercise of stock options.
For the Three Months Ended
September 30, 1998
______________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
___________ _____________ _________
Basic Per Share $ 37,000 721,848 $ .05
Effect of dilutive shares:
Stock options - 8,865 -
___________ _____________ _________
Diluted per share $ 37,000 730,713 $ .05
=========== ============= =========
For the Nine Months Ended
September 30, 1998
______________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
___________ _____________ _________
Basic Per Share $ 50,000 721,848 $ .07
Effect of dilutive shares:
Stock options - 8,865 -
___________ _____________ _________
Diluted per share $ 50,000 730,713 $ .07
=========== ============= =========
For the Three Months Ended
September 30, 1997
______________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
___________ _____________ _________
Basic Per Share $ 27,000 721,848 $ .04
Effect of dilutive shares:
Stock options - 8,865 -
___________ _____________ _________
Diluted per share $ 27,000 730,713 $ .04
=========== ============= =========
For the Nine Months Ended
September 30, 1997
______________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
___________ _____________ _________
Basic Per Share $ (227,000) 721,848 $ (.31)
Effect of dilutive shares:
Stock options - 8,865 -
___________ _____________ _________
Diluted per share $ (227,000) 730,713 $ (.31)
=========== ============= =========
ITEM NO. 2 MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The following discussion contains "forward-looking statements" relating to,
without limitation, future economic performance, plans and objectives of
management for future operations, and projections of revenues and other
financial items that are based on the beliefs of the Company's management,
as well as assumptions made by and information currently available to the
Company's management. The words "expect," "estimate," "anticipate," and
"believe," as well as similar expressions, are intended to identify
forward-looking statements. The Company's actual results may differ
materially from the results discussed in the forward-looking statements,
and the Company's operating performance each quarter is subject to various
risks and uncertainties that are discussed in detail in the Company's filings
with the Securities and Exchange Commission, including the "Risk Factors"
section in the Company's Registration Statement on Form SB-2 (Registration
Number 333-61081) as filed with and declared effective by the Securities and
Exchange Commission. The Hattiesburg Bank completed its first full year of
operations in 1997 and has grown substantially since opening on August 5,
1996. Comparisons of the Bank's results for the periods presented should be
made with an understanding of the Bank's short history.
The Hattiesburg Bank represents virtually all of the assets of the Company.
The Hattiesburg Bank has grown in total assets to $43.3 million at
September 30, 1998. Total assets have increased $15.8 million or 57.5%
since December 31, 1997. Loans have increased $8.6 million or 49.1% during
the first nine months of 1998. The growth in total assets has been funded
by a $15.7 million increase in deposits.
NONPERFORMING ASSETS AND RISK ELEMENTS. There were no nonperforming assets at
September 30, 1998. Diversification within the loan portfolio is an important
means of reducing inherent lending risks. At September 30, 1998, the Hattiesburg
Bank had no concentrations of ten percent or more of total loans in any
single industry nor any geographical area outside the immediate market area
of the Hattiesburg Bank.
At September 30, 1998, the Hattiesburg Bank had loans past due as follows:
($ In Thousands)
Past due 30 through 89 days $352
Past due 90 days or more and still accruing 3
The Hattiesburg Bank discontinues the accrual of interest on loans which
become ninety days past due (principal and/or interest), unless the loans
are adequately secured and in the process of collection. Any other real
estate owned is carried at fair value, determined by an appraisal. A loan
is classified as a restructured loan when the interest rate is materially
reduced or the term is extended beyond the original maturity date because
of the inability of the borrower to service the debt under the original
terms. The Hattiesburg Bank had no restructured loans and no other real
estate at September 30, 1998.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity is adequate with cash and due from banks of $2.1 million and
federal funds sold of $2.2 million as of September 30, 1998. In addition,
loans and investment securities repricing or maturing within one year or
less exceed $18 million at September 30, 1998. The Hattiesburg Bank has
approximately $6.1 million in loan commitments that are expected to
be funded within the next six months and other commitments, primarily
standby letters of credit, of approximately $300,000 at September 30, 1998.
On August 10, 1998, the Company filed a registration statement on Form
SB-2 relating to the issuance of up to 533,333 shares of Common Stock in
connection with the formation of the Laurel Bank. Pursuant to the terms of
the offering, the Company is authorized to release these funds from escrow
once the following offering conditions are met:
(a) the Company has accepted subscriptions and payment in full for a
minimum of 340,000 shares (which will result in gross offering
proceeds in excess of $5 million);
(b) the Company has obtained approval from the Federal Reserve Board
to acquire the stock of the Laurel Bank;
(c) the Laurel Bank has received preliminary approval of its
application for a charter from the OCC; and
(d) the Laurel Bank has received preliminary approval of its
application for deposit insurance from the FDIC.
As of November 11, 1998, the Company had received subscriptions for 355,337
shares and gross proceeds of $5,330,055 were held in escrow. The termination
date of the offering is set for December 31, 1998. The Company has not yet
received the approvals described above from the Federal Reserve, the OCC, or
the FDIC, so the shares have not yet been released from escrow. The Company
anticipates receiving each of these approvals prior to December 31, 1998.
However, as described in the registration statement for this offering, there
is a risk that the Company or the Laurel Bank will fail to obtain these
approvals, or that the approvals may not be granted by this date.
The Company anticipates that the OCC will require the Company to capitalize
the Laurel Bank with $5 million, and the Company intends to use the proceeds
of its current offering for this purpose. However, there is a risk that the
OCC may require the Company to capitalize the Laurel Bank with more than
$5 million, in which case the Company would have to receive additional net
proceeds in the offering, use its existing capital, or obtain additional
capital from another source. The Company has not sought any other source
from which to obtain this capital, and there can be no assurances the
Company would be able to do so.
Any significant delay in obtaining any of the approvals described above
will result in an increase in pre-opening expenses for the Laurel Bank and
may reduce the amount of the Laurel Bank's and the Company's capital,
potential revenues, and income. There also can be no assurance that the
Company will actually experience any further asset or deposit growth, or
that the Company will experience any favorable results if such growth
occurs. The Laurel Bank is currently in the organizational stage and has
no operating history. The operations of the Laurel Bank will be subject
to the risks inherent in the establishment of a new business and,
specifically, of a new bank. The likelihood of the success of the Laurel
Bank must be considered in light of the problems, expenses, complications,
and delays frequently encountered in connection with the development of a
new bank and the competitive environment in which the Laurel Bank will
operate. Typically, new banks incur substantial initial expenses and are
not profitable for several years after commencing business. Although the
Hattiesburg Bank has been operating since August 1996, because of the
impact of the formation of the Laurel Bank and the Company's short history,
the Company's historical results of operations are not necessarily indicative
of the Company's future operations. See also the discussion contained in the
Risk Factors section of the Registration Statement for this offering.
With the exceptions described above, there are no known trends or any known
commitments of uncertainties that will result in the Hattiesburg Bank's
liquidity increasing or decreasing in a material way. In addition, the
Company is not aware of any recommendations by any regulatory authorities
which would have a material effect on the Company's liquidity, capital
resources or results of operations.
Total equity capital at September 30, 1998, is $4.9 million or approximately
11.5% of total assets. The Hattiesburg Bank's capital position is adequate
to meet the minimum capital requirements for all regulatory agencies. The
Hattiesburg Bank's capital ratios as of September 30, 1998, are as follows:
Tier 1 leverage 12.7%
Tier 1 risk-based 17.9%
Total risk-based 18.9%
RESULTS OF OPERATIONS
The Company had net income of $37,000 for the three months ending September 30,
1998, compared with $27,000 for the same period last year, resulting in an
increase of 37.1%. For nine months ending September 30, 1998, net income was
$50,000 compared with a net loss of $227,000 for 1997.
Interest income and interest expense both increased from 1997 to 1998 resulting
from the increase in earning assets and interest bearing liabilities.
Consequently, net interest income increased to $1.0 million from $414,000
for the first nine months ending September 30, 1998, or an increase of
141.5%. Earning assets through September 30, 1998, increased $13.3 million
and interest-bearing liabilities also increased $14.7 million compared to
September 30, 1997, reflecting increases of 56.6%, and 78.9%, respectively.
Noninterest income for the nine months ending September 30, 1998, was $161,000
compared to $180,000 for the same period in 1997 reflecting a decrease of
$19,000 or 10.6%. However, included in other income for 1997 was a gain of
$112,000 from the sale of land. Noninterest income consists mainly of service
charges on deposit accounts. Service charges on deposit accounts for the nine
months ending September 30, 1998, was $120,000 compared with $53,000 for the
same period in 1997 reflecting an increase of 126.4%.
The provision for loan losses was $92,000 in the first nine months of 1998
compared with $122,000 for the same period in 1997. The allowance for loan
losses of $283,000 at September 30, 1998 (approximately 1.08% of loans) is
considered by management to be adequate to cover losses inherent in the
loan portfolio. However, management's judgment about the adequacy of the
allowance is based upon a number of assumptions about future events which it
believes to be reasonable, but which may or may not be accurate. Thus, there
can be no assurance that charge-offs in future periods will not exceed the
allowance for loan losses or that additional increases in the loan loss
allowance will not be required. Management evaluates the adequacy of the
allowance for loan losses quarterly and makes provisions for loan losses
based on this evaluation.
No provision for income tax expense has been provided. Prior to 1998, the
Company reported consolidated net operating losses. At September 30, 1998,
the Company had available approximately $767,000 of net operating loss
carryovers.
Accounting Matters
In June, 1998, the FASB issued SFAS 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement
establishes accounting and reporting standards for derivative
instruments and hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in its
financial statements and that those instruments be measured at
fair value. Implementation is required for all fiscal quarters
of fiscal years beginning after June 15, 1999. The Company has
not determined the impact the adoption of this statement may have
on its consolidated financial statements.
Year 2000
Like many financial institutions, the Company relies upon
computers for the daily conduct of its business and for
information systems processing. There is concern among
industry experts that on January 1, 2000, computers will be unable
to "read" the new year, which may result in widespread computer
malfunctions. While the Company believes that it has available
resources and has adopted a plan to address Year 2000 compliance,
it is largely dependent on third party vendors. The Company
handles its own data processing using an IBM AS 400 mainframe
computer and software licensed from a third party vendor.
The Company has been informed by this vendor that this software is
Year 2000 compliant. The Company is seeking assurances about the
Year 2000 compliance with respect to the other third party hardware
or software system it uses, and the Company believes that its
internal systems and software and the network connections it
maintains will be adequately programmed to address the Year 2000
issue. The Company has also begun testing these systems to
confirm that they will be Year 2000 compliant. Based on information
currently available, management does not believe that the Company
will incur significant costs in connection with the Year 2000
issue. Nevertheless, there is a risk that some of the hardware or
software that the Company uses will not be Year 2000 compliant,
and the Company cannot predict with any certainty the costs
the Company will incur to respond to any Year 2000 issues. Factors
which may affect the amount of these costs include the Company's
inability to control third party modification plans, the Company's
ability to identify and correct all relevant computer codes, the
availability and cost of engaging personnel trained in solving
Year 2000 issues, and other similar uncertainties.
Further, the business of many of the Company's customers may be
negatively affected by the Year 2000 issue, and any financial
difficulties incurred by the Company's customers in solving Year
2000 issues could negatively affect those customers' ability to
repay any loans which the Company may have extended. Therefore,
even if the Company does not incur significant direct costs in
connection with responding to the Year 2000 issue, there can be
no assurance that the failure or delay of the Company's customers
or other third parties in addressing the Year 2000 issue or the costs
involved in such process will not have a material adverse effect on
the Company's business, financial condition, or results of operations.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders
during the quarter ended September 30, 1998.
ITEM 5. OTHER INFORMATION
As previously announced, the Company has entered into a bank
development agreement with the organizers of the Laurel Bank,
a proposed de novo community bank in Laurel, Mississippi.
On August 10, 1998, the Company filed a registration statement
on Form SB-2 relating to the issuance of up to 533,333 shares
of Common Stock in connection with the formation of the Laurel
Bank. As of November 11, 1998, the Company had received
subscriptions for 355,337 shares. See the discussion above
regarding the status of the offering.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) 27 Financial Data Schedule (for SEC use only)
b) The Company did not file any reports on Form 8-K during
the quarter ended September 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registration has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE FIRST BANCSHARES, INC.
--------------------------
(Registrant)
November 11, 1998 /s/ DAVID E. JOHNSON
______________________________ David E. Johnson, President and
(Date) Chief Executive Officer
November 11, 1998 /s/ CHARLES T. RUFFIN
______________________________ Charles T. Ruffin, Principal Accounting
(Date) and Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
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<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
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