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: June 30, 2003
------------------
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
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(ADDRESS OF PRINCIPAL (ZIP CODE)
EXECUTIVE OFFICES)
(601) 268-8998
------------------------------------------------
(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NONE
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(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 JUNE 30, 2003, 1,188,779 SHARES OF THE ISSUER'S COMMON STOCK, PAR VALUE
$1.00 PER SHARE, WERE ISSUED AND OUTSTANDING.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE):
YES NO X
--- ---
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
THE FIRST BANCSHARES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ amounts in thousands) (Unaudited)
June 30, December 31,
ASSETS 2003 2002
________ ________
Cash and due from banks $ 7,813 $ 6,638
Interest-bearing deposits with banks 526 653
Federal funds sold 4,379 4,810
________ ________
Total cash and cash equivalents 12,718 12,101
Securities held-to-maturity, at amortized cost 15 25
Securities available-for-sale, at fair value 23,693 25,721
Loans held for sale 8,567 7,091
Loans 104,772 100,678
Allowance for loan losses (1,216) (1,228)
________ ________
LOANS, NET 103,556 99,450
Premises and equipment 8,382 7,986
Accrued income receivable 883 944
Cash surrender value 3,099 3,019
Other assets 1,087 1,090
________ ________
$162,000 $157,427
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing $ 19,927 $ 16,604
Time, $100,000 or more 31,302 33,551
Interest-bearing 74,564 67,966
________ ________
TOTAL DEPOSITS 125,793 118,121
Interest payable 198 240
Borrowed funds 12,973 16,637
Guaranteed preferred beneficial interests
in Company's subordinated debentures 7,000 7,000
Other liabilities 308 506
________ ________
TOTAL LIABILITIES 146,272 142,504
SHAREHOLDERS' EQUITY:
Common stock, $1 par value. Authorized
10,000,000 shares; 1,188,779 and
1,165,165 shares issued and outstanding
at June 30, 2003 and December 31, 2002,
respectively. 1,189 1,165
Preferred stock, par value $1 per share,
10,000,000 shares authorized; no shares
issued and outstanding - -
Additional paid-in capital 12,902 12,512
Retained earnings 1,502 1,060
Accumulated other comprehensive income 135 186
________ ________
TOTAL SHAREHOLDERS' EQUITY 15,728 14,923
________ ________
$162,000 $157,427
======== ========
THE FIRST BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
($ amounts in thousands except earnings per share)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
___________________ ___________________
2003 2002 2003 2002
________ ________ ________ ________
INTEREST INCOME:
Loans, including fees $ 2,517 $ 2,137 $ 4,949 $ 4,140
Securities:
Taxable 133 217 292 419
Tax exempt 24 15 49 16
Federal funds sold 10 14 22 32
Other 20 29 41 45
________ ________ ________ ________
TOTAL INTEREST INCOME 2,704 2,412 5,353 4,652
INTEREST EXPENSE:
Deposits 601 740 1,198 1,538
Other borrowings 219 222 443 325
________ ________ ________ ________
TOTAL INTEREST EXPENSE 820 962 1,641 1,863
________ ________ ________ ________
NET INTEREST INCOME 1,884 1,450 3,712 2,789
PROVISION FOR LOAN LOSSES 125 120 211 209
________ ________ ________ ________
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 1,759 1,330 3,501 2,580
NONINTEREST INCOME:
Service charges on deposit
accounts 345 342 673 611
Other service charges,
commissions and fees 103 74 203 156
________ ________ ________ ________
TOTAL OTHER INCOME 448 416 876 767
________ ________ ________ ________
NONINTEREST EXPENSES:
Salaries and employee
benefits 992 753 1,975 1,462
Occupancy and equipment
expense 306 246 593 469
Other operating expenses 540 505 967 862
________ ________ ________ ________
TOTAL OTHER EXPENSES 1,838 1,504 3,535 2,793
________ ________ ________ ________
INCOME BEFORE INCOME
TAXES 369 242 842 554
INCOME TAXES 124 87 282 191
________ ________ ________ ________
NET INCOME $ 245 $ 155 $ 560 $ 363
======== ======== ======== ========
EARNINGS PER SHARE -
BASIC $ .21 $ .13 $ .48 $ .31
EARNINGS PER SHARE -
ASSUMING DILUTION $ .20 $ .13 $ .46 $ .30
DIVIDENDS PER SHARE $ - $ - $ .10 $ .10
THE FIRST BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ Amounts in Thousands)
(Unaudited)
Six Months Ended
June 30,
__________________
2003 2002
________ ________
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $ 560 $ 363
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 339 244
Provision for loan losses 211 209
(Increase) decrease in accrued income
receivable 61 (78)
Increase in loans held-for-sale (1,476) (1,004)
Decrease in interest payable (42) (97)
Other, net (211) 693
________ ________
NET CASH USED BY OPERATING ACTIVITIES (558) 330
________ ________
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities and calls of securities
available for sale 11,765 10,248
Maturities and calls of securities held-to-
maturity 10 7
Purchases of securities available-for-sale (9,817) (12,012)
Net increase in loans (4,317) (13,455)
Purchases of premises and equipment (691) (556)
Increase in cash surrender value (80) (1,782)
________ ________
NET CASH USED BY INVESTING ACTIVITIES (3,130) (17,550)
________ ________
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits 7,672 3,028
Net increase (decrease) in borrowed funds (3,663) 6,238
Issuance of trust preferred securities - 7,000
Issuance of common stock 413 -
Dividends paid on common stock (117) (117)
Exercise of stock options - 110
________ ________
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,305 16,259
________ ________
NET INCREASE (DECREASE) IN CASH 617 (961)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 12,101 9,334
________ ________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 12,718 $ 8,373
======== ========
CASH PAYMENTS FOR INTEREST $ 1,683 $ 1,960
CASH PAYMENTS FOR INCOME TAXES 248 245
THE FIRST BANCSHARES, INC.
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 six months ended June 30, 2003, are not necessarily indicative of
the results that may be expected for the year ended December 31, 2003.
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, 2002.
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 Hattiesburg Bank
opened for business on August 5, 1996, with a total capitalization of
$5.2 million.
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 First National Bank of the Pine Belt
(Laurel Bank). The offering was closed on December 31, 1998, with 428,843
shares subscribed with an aggregate purchase price of $6.4 million. On
January 19, 1999, the Laurel Bank received approval from its banking
regulator to begin banking operations, and the Company used $5 million of
the net proceeds to purchase 100% of the capital stock of the Laurel Bank.
Simultaneously, the 428,843 shares subscribed to in the offering were
issued. Subsequent to June 30, 2003, the Banks petitioned the Office of
the Comptroller of Currency to merge the two banks. Approval is pending
after a period of required publication of legal notices.
The Hattiesburg and Laurel Banks are wholly-owned subsidiaries of the
Company. 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 acts 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. In 2002, the Hattiesburg Bank received
approval from banking regulators to operate a branch in Picayune,
Mississippi. Picayune operations consisted of a "Loan Production Office"
in the first quarter of 2003. Branch operations began in June, 2003.
On February 11, 2003, the Company filed a registration statement on
Form S-2 relating to the issuance of up to 45,000 shares of Common Stock
in connection with the opening of a branch in Picayune, Mississippi. The
maximum offering price per share of the $1 par value stock is $17.50 with
an offering period that terminated July 31, 2003, after a total of 26,494
shares were sold.
The Hattiesburg Bank and the Laurel Bank engage in general commercial
banking business, emphasizing in its marketing the Bank's local management
and ownership. The Banks offer 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
Banks also offer short- to medium-term commercial, mortgage, and personal
loans. At June 30, 2003, the Company had approximately $162.0 million in
consolidated assets, $104.8 million in consolidated loans, $125.8 million
in consolidated deposits, and $15.7 million in consolidated shareholders'
equity. For the six months ended June 30, 2003, the Company reported a
consolidated net income of $560,000. For the same period, the Hattiesburg
Bank reported net income of $586,000 and the Laurel Bank reported net income
of $83,000.
In the first quarter of 2002 and 2003, the Company declared and paid
dividends of $.10 per common share.
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
June 30, 2003
_____________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
_________ ___________ __________
Basic per share $ 245,000 1,180,784 $.21
====
Effect of dilutive shares:
Stock options - 38,445
_________ ___________
Diluted per share $ 245,000 1,219,229 $.20
========= =========== ====
For the Six Months Ended
June 30, 2003
_____________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
_________ ___________ __________
Basic per share $ 560,000 1,172,938 $.48
====
Effect of dilutive shares:
Stock options - 38,445
_________ ___________
Diluted per share $ 560,000 1,211,383 $.46
========= =========== ====
For the Three Months Ended
June 30, 2002
_____________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
_________ ___________ __________
Basic per share $ 155,000 1,165,165 $.13
====
Effect of dilutive shares:
Stock options - 35,130
_________ ___________
Diluted per share $ 155,000 1,200,295 $.13
========= =========== ====
For the Six Months Ended
June 30, 2002
_____________________________________
Net Income Shares Per Share
(Numerator) (Denominator) Data
_________ ___________ __________
Basic per share $ 363,000 1,165,165 $.31
====
Effect of dilutive shares:
Stock options - 35,130
_________ ___________
Diluted per share $ 363,000 1,200,295 $.30
========= =========== ====
NOTE D - STOCK-BASED COMPENSATION
The Company has a stock-based employee compensation plan which is
accounted for under the recognition and measurement principles of
Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock
Issued to Employees, and related Interpretations. No stock-based employee
compensation cost is reflected in net income, as all stock options granted
under these plans had an exercise price equal to the market value of the
underlying common stock on the date of grant. The following table
illustrates the effect on net income and earnings per share as if the
Company had applied the fair value recognition provisions of Financial
Accounting Standards Board ("FASB") SFAS No. 123, Accounting for Stock-
Based Compensation, to stock-based employee compensation.
($ amounts in thousands except for per share data)
Quarter
Ended June 30,
________________
2003 2002
_____ _____
Net income, as reported $ 245 $ 155
Deduct: Total stock-based employee
compensation expense determined
under fair value based method
for all awards, net of related
tax effects (11) (27)
_____ _____
Pro forma net income $ 234 $ 128
===== =====
Earnings per share:
Basic - as reported $ .21 $ .13
Basic - pro forma .20 .11
Diluted - as reported .20 .13
Diluted - pro forma .19 .11
Six Months
Ended June 30,
________________
2003 2002
_____ _____
Net income, as reported $ 560 $ 363
Deduct: Total stock-based employee
compensation expense determined
under fair value based method
for all awards, net of related
tax effects (40) (53)
_____ _____
Pro forma net income $ 520 $ 310
===== =====
Earnings per share:
Basic - as reported $ .48 $ .31
Basic - pro forma .44 .27
Diluted - as reported .46 .30
Diluted - pro forma .43 .26
NOTE E - COMPREHENSIVE INCOME
The following table discloses Comprehensive Income for the periods reported
in the Consolidated Statements of Income:
(In thousands)
Quarter Ended
June 30,
______________
2003 2002
____ ____
Net Income $245 $155
Other Comprehensive Income (loss) net of tax:
Unrealized holding gains (losses) on securities
during the period, net of taxes (37) 88
____ ____
Comprehensive Income $208 $243
==== ====
Accumulated Comprehensive Income $135 $145
==== ====
Six Months Ended
June 30,
_____________
2003 2002
____ ____
Net Income $560 $363
Other Comprehensive Income (Loss) net of tax:
Unrealized holding gains (losses) on securities
during the period, net of taxes (51) 34
____ ____
Comprehensive Income $509 $397
==== ====
Accumulated Comprehensive Income $135 $145
==== ====
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. The Laurel
Bank has been in operation since January 19, 1999. Comparisons of the
Company's results for the periods presented should be made with an
understanding of the subsidiary Banks' short histories.
The subsidiary Banks represent virtually all of the assets of the Company.
The Hattiesburg Bank reported total assets of $110.2 million at June 30,
2003, compared to $107.1 million at December 31, 2002. Loans increased
$3.1 million, or 4.0%, during the first six months of 2003. Deposits
at June 30, 2003, totaled $89.5 million compared to $83.0 million at
December 31, 2002. For the six month period ended June 30, 2003, the
Hattiesburg Bank reported net income of $586,000, compared to $341,000
at June 30, 2002. At June 30, 2003, the Laurel Bank had total assets of
$50.2 million compared to $48.8 million at December 31, 2002. Total
loans increased $2.4 million, or 8.1% during the first six months of
2003. Deposits at June 30, 2003, totaled $41.0 million compared to the
December 31, 2002, balance of $40.1 million. For the six month period
ended June 30, 2003, the Laurel Bank reported net income of $83,000,
compared to $101,000 for the six months ended June 30, 2002.
NONPERFORMING ASSETS AND RISK ELEMENTS. Diversification within the loan
portfolio is an important means of reducing inherent lending risks. At
June 30, 2003, the subsidiary Banks had no concentrations of ten percent
or more of total loans in any single industry nor any geographical area
outside their immediate market areas.
At June 30, 2003, the subsidiary banks had loans past due as follows:
($ In Thousands)
Past due 30 through 89 days $583
Past due 90 days or more and still accruing 617
The accrual of interest is discontinued on loans which become ninety days
past due (principal and/or interest), unless the loans are adequately
secured and in the process of collection. There were no nonaccrual loans
at June 30, 2003. Any other real estate owned is carried at fair value,
determined by an appraisal. Other real estate owned totaled $221,000 at
June 30, 2003. 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 subsidiary Banks had no
restructured loans at June 30, 2003.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity is considered adequate with cash and cash equivalents of $12.7
million as of June 30, 2003. In addition, loans and investment securities
repricing or maturing within one year or less exceed $49.1 million at
June 30, 2003. Approximately $11.3 million in loan commitments are
expected to be funded within the next six months and other commitments,
primarily standby letters of credit, totaled $121,000 at June 30, 2003.
There are no known trends or any known commitments of uncertainties that
will result in the subsidiary banks' 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 consolidated equity capital at June 30, 2003, is $15.7 million, or
approximately 9.7% of total assets. The Hattiesburg Bank and Laurel Bank
currently have adequate capital positions to meet the minimum capital
requirements for all regulatory agencies. Their capital ratios as of
June 30, 2003, are as follows:
Hattiesburg Laurel
Bank Bank
_____ _____
Tier 1 leverage 10.6% 10.3%
Tier 1 risk-based 13.7% 12.7%
Total risk-based 14.7% 13.6%
On March 26, 2002, The First Bancshares Statutory Trust 1 (the Trust),
a wholly-owned subsidiary trust of the Company, issued $7,000,000 of
redeemable cumulative trust preferred securities. The Trust used the
funds to acquire floating rate subordinated debentures from the Company.
The debentures bear an initial interest rate of 5.59% which is adjusted
annually at June 26 to the 3-month LIBOR plus 3.60%. The debentures
have a maturity of 30 years. These debentures qualify as Tier 1 capital
up to 25% of other components of Tier 1 capital.
RESULTS OF OPERATIONS
The Company had a consolidated net income of $560,000 for the six months
ending June 30, 2003, compared with consolidated net income of $363,000
for the same period last year.
Net interest income increased to $3,712,000 from $2,789,000 for the first
six months ending June 30, 2003, or an increase of 33.1%. Earning assets
through June 30, 2003, increased $7.3 million and interest-bearing
liabilities also increased $6.8 million compared to June 30, 2002,
reflecting increases of 5.4% and 5.7%, respectively.
Noninterest income for the six months ending June 30, 2003, was $876,000
compared to $767,000 for the same period in 2002, reflecting an increase
of $109,000 or 14.2% Noninterest income consists mainly of service
charges, commissions, and fees. Service charges on deposit accounts for
the six months ending June 30, 2003, totaled $673,000 compared with
$611,000 for the same period in 2002 and is a reflection of the continuing
growth of the deposit base.
The provision for loan losses was $211,000 in the first six months of
2003 compared with $209,000 for the same period in 2002. The allowance
for loan losses of $1.2 million at June 30, 2003 (approximately 1.2% of
loans) is considered by management to be adequate to cover losses inherent
in the loan portfolio. The level of this allowance is dependent upon a
number of factors, including the total amount of past due loans, general
economic conditions, and management's assessment of potential losses.
This evaluation is inherently subjective as it requires estimates that are
susceptible to significant change. Ultimately, losses may vary from
current estimates and future additions to the allowance may be necessary.
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.
Noninterest expense increased from $2.8 million for the six months ended
June 30, 2002, to $3.5 million for the same period in 2003. This increase
of 26.6% reflected the continued growth of the subsidiary banks and the
related services being offered which resulted in an increase in the
number of employees.
ITEM NO. 3. CONTROLS AND PROCEDURES
Within 90 days prior to the filing of this report, an evaluation under
the direction of the Company's Chief Executive Officer and Principal
Accounting Officer was performed to determine the effectiveness of the
Company's disclosure controls and procedures. These controls and
procedures were found to be adequate.
There were no significant changes in the Company's internal controls
or other factors subsequent to the date of the evaluation that could
significantly affect these controls.
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
At the Company's annual meeting of stockholders held April 24,
2003, the following proposals were approved:
The following individuals were elected to serve as
Class II directors of the Company for terms that expire
at the annual meeting of stockholders to be held in 2006:
David E. Johnson Andrew D. Stetelman
Trent A. Mulloy Ralph T. Simmons
Dawn T. Parker Charles R. Lightsey
The following individual was elected to serve as Class I
director of the Company for a term that expires at the
annual meeting of stockholders to be held in 2005:
Gregory H. Mitchell
The following individual was elected to serve as Class III
director of the Company for a term that expires at the
annual meeting of stockholders to be held in 2004:
Gerald Claiborne Patch
Set forth below is the number of votes cast for, against,
or withheld, with respect to each nominee for office:
For Against Withheld
_______ _______ ________
Gregory H. Mitchell 708,659 0 3,600
David E. Johnson 701,467 0 10,792
Trent A. Mulloy 708,659 0 3,600
Dawn T. Parker 708,659 0 3,600
Andrew D. Stetelman 708,659 0 3,600
Ralph T. Simmons 691,658 0 20,601
Charles R. Lightsey 708,659 0 3,600
Gerald Claiborne Patch 708,659 0 3,600
The terms of the Class II directors expire at the 2006
Annual Shareholders Meeting, the terms of the Class I
directors will expire at the 2005 Annual Shareholders
Meeting, and the terms of the Class III directors will
expire at the 2004 Annual Shareholders Meeting. The
directors and their classes are:
Class I Class II Class III
Perry E. Parker Trent A. Mulloy David W. Bomboy, M.D.
Ted E. Parker David E. Johnson E. Ricky Gibson
Dennis L. Pierce Dawn T. Parker Fred A. McMurry
J. Douglas Seidenburg Andrew D. Stetelman M. Ray (Hoppy) Cole
A. L. Smith Ralph T. Simmons Gerald Claiborne Patch
Gregory H. Mitchell Charles R. Lightsey
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No.
__________
31.1 Certification of principal executive officer pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Certification of principal financial officer pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 Certification of principal executive officer pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 Certification of principal financial officer pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
(b) The Company did not file any reports on Form 8-K during the
quarter ended June 30, 2003.
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)
August 14, 2003 /S/ DAVID E. JOHNSON
______________________________ _________________________________
(Date) David E. Johnson, President and
Chief Executive Officer
August 14, 2003 /S/ DAVID O. THOMS, JR.
______________________________ _________________________________
(Date) David O. Thoms, Jr., Senior
Vice President and Principal
Accounting and Financial Officer