The First Bancshares, Inc. (FBMS) Bundle
A Brief History of The First Bancshares, Inc. (FBMS)
Formation and Early Years
The First Bancshares, Inc. was established in 1996 as a bank holding company headquartered in Hattiesburg, Mississippi. The company initially focused on providing a range of banking services primarily in southern Mississippi.
Acquisitions and Growth
Over the years, FBMS has expanded its footprint through strategic acquisitions.
- In 1997, FBMS acquired First National Bank of Picayune.
- In 2006, the company acquired the remaining shares of First National Bank of Hattiesburg, resulting in full ownership.
- In 2018, FBMS completed the acquisition of PriorityOne Bank with an acquisition cost of approximately $17.9 million.
Recent Financial Performance
As of the end of 2022, The First Bancshares, Inc. reported the following financial metrics:
| Year | Total Assets | Total Liabilities | Total Equity | Net Income | Return on Assets (ROA) | Return on Equity (ROE) |
|---|---|---|---|---|---|---|
| 2022 | $1.5 billion | $1.3 billion | $200 million | $28 million | 1.87% | 14.00% |
| 2021 | $1.4 billion | $1.2 billion | $180 million | $20 million | 1.57% | 11.11% |
Stock Performance
The First Bancshares, Inc. is publicly traded on the NASDAQ under the ticker symbol FBMS. The stock price fluctuated over the years with notable increases:
- In January 2021, the stock price was approximately $22.00.
- In October 2022, the stock price reached around $32.00, reflecting strong market confidence.
- As of October 2023, the stock is trading at approximately $36.50.
Community Focus and Innovation
FBMS emphasizes community banking and has invested significantly in technology upgrades to enhance customer experience:
- In 2023, FBMS launched a new mobile banking app featuring enhanced security and user interface.
- In 2022, the bank offered over $3 million in community grants, focusing on education and local economic development.
Current Position and Future Outlook
As of October 2023, FBMS operates over 30 branches across Mississippi and Louisiana. The company’s strategic initiatives include:
- Continued expansion into neighboring markets.
- Focus on digital banking solutions.
- Commitment to sustainable banking practices.
A Who Owns The First Bancshares, Inc. (FBMS)
Institutional Ownership
As of the latest data available, institutional ownership of The First Bancshares, Inc. (FBMS) stands at approximately 57.3%. This suggests a significant interest from institutional investors.
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 650,000 | 11.5% |
| Dimensional Fund Advisors LP | 500,000 | 8.8% |
| Vanguard Group, Inc. | 450,000 | 8.0% |
| Federated Hermes, Inc. | 300,000 | 5.3% |
| Thrivent Financial for Lutherans | 250,000 | 4.4% |
Insider Ownership
Insiders own around 10.2% of the total shares of FBMS. This includes executives and board members.
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| J. Thomas McGraw | CEO | 200,000 | 3.5% |
| Katherine A. Smith | CFO | 100,000 | 1.8% |
| Mary D. Johnson | Director | 50,000 | 0.9% |
| John P. Davis | Chairman | 75,000 | 1.3% |
Major Shareholders
Individual shareholders also hold a notable portion of The First Bancshares, Inc. stock.
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Robert E. Brown | 300,000 | 5.3% |
| Lisa M. Grant | 250,000 | 4.4% |
| Warren T. Baker | 150,000 | 2.6% |
Recent Changes in Ownership
In the last fiscal year, there have been changes in both institutional and insider ownership.
- BlackRock increased its holdings by 5%.
- Dimensional Fund Advisors decreased its holdings by 3%.
- Insider ownership increased due to stock options exercised by executives, adding 50,000 shares.
Stock Performance
As of the closing date in October 2023, FBMS has shown a total return of approximately 15% year-to-date.
| Metric | Value |
|---|---|
| Current Share Price | $33.45 |
| Market Capitalization | $500 million |
| Dividend Yield | 1.5% |
| 52-Week High | $35.00 |
| 52-Week Low | $28.50 |
The First Bancshares, Inc. (FBMS) Mission Statement
Overview
The First Bancshares, Inc. (FBMS) is committed to delivering exceptional financial services while fostering long-term relationships with its clients. The company emphasizes a robust foundation based on community engagement, customer satisfaction, and consistent financial performance. As of Q2 2023, FBMS reported total assets of approximately $4.7 billion and a net income of $31.8 million.
Mission Statement
The mission of The First Bancshares, Inc. is to provide high-quality financial products and services, promote economic growth in the communities it serves, and maintain a commitment to integrity and excellence. FBMS aims to be the financial partner of choice for individuals and businesses throughout the southern United States.
Core Values
- Integrity: Commitment to ethical practices in all dealings.
- Customer Focus: Prioritizing the needs of clients above all.
- Community Engagement: Actively participating in local initiatives and improvement projects.
- Innovation: Continuously seeking new ways to improve services and technology.
Financial Performance
As of June 30, 2023, The First Bancshares, Inc. demonstrated solid financial growth. The following table outlines key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $4.7 billion |
| Net Income (Q2 2023) | $31.8 million |
| Earnings Per Share (EPS) | $1.32 |
| Total Deposits | $4.0 billion |
| Return on Equity (ROE) | 11.12% |
| Loan to Deposit Ratio | 72.8% |
Community Impact
FBMS actively invests in its communities through various programs aimed at economic development. In 2022, the bank contributed over $500,000 to local charitable organizations and sponsored initiatives that benefited education and health services.
Strategic Goals
- Expand Market Presence: Increase branches by 15% over the next three years.
- Enhance Digital Services: Invest $2 million in technology upgrades to improve online banking experiences.
- Community Investment: Allocate $1 million annually toward community development projects.
Conclusion
The First Bancshares, Inc. continuously strives to align its mission with the needs of its customers and communities, ensuring sustainable growth and long-term partnerships.
How The First Bancshares, Inc. (FBMS) Works
Company Overview
The First Bancshares, Inc. (FBMS) operates as a bank holding company for The First Bank. Its primary focus is on providing banking services to individuals and businesses in Mississippi and Louisiana.
Financial Performance
As of Q3 2023, FBMS reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Assets | $1,637 |
| Total Deposits | $1,430 |
| Total Loans | $1,086 |
| Net Income | $12.8 |
| Earnings Per Share (EPS) | $1.07 |
| Return on Assets (ROA) | 0.78% |
| Return on Equity (ROE) | 9.52% |
Business Model
The First Bancshares, Inc. follows a diversified banking model, primarily focusing on:
- Retail banking
- Commercial banking
- Mortgage lending
- Investment services
Branch Network
As of October 2023, FBMS operates 25 branches across the following regions:
| State | Number of Branches |
|---|---|
| Mississippi | 18 |
| Louisiana | 7 |
Loan Portfolio Composition
FBMS's loan portfolio consists of various types of loans:
| Loan Type | Percentage of Total Loans |
|---|---|
| Commercial Loans | 47% |
| Residential Mortgages | 29% |
| Consumer Loans | 12% |
| Home Equity Loans | 7% |
| Other Loans | 5% |
Capital Structure
FBMS maintains a robust capital structure with the following key metrics:
| Metric | Value |
|---|---|
| Common Equity Tier 1 Ratio | 11.6% |
| Total Capital Ratio | 12.5% |
| Leverage Ratio | 8.2% |
Market Position
As of October 2023, FBMS holds a significant market share in the Mississippi and Louisiana banking sectors:
- Mississippi Market Share: 3.5%
- Louisiana Market Share: 2.1%
Recent Developments
In Q2 2023, FBMS announced the acquisition of a smaller regional bank, enhancing its market presence and operational capabilities. The acquisition is expected to close in Q4 2023.
Stock Performance
As of the last trading day in October 2023, the stock price of FBMS is $21.45, with a year-to-date performance of +15%.
| Metric | Value |
|---|---|
| Market Capitalization | $250 million |
| Dividend Yield | 2.3% |
| 52-Week High | $23.00 |
| 52-Week Low | $18.10 |
How The First Bancshares, Inc. (FBMS) Makes Money
Core Banking Operations
The First Bancshares, Inc. operates primarily as a bank holding company, offering various financial services through its wholly-owned subsidiary, The First Bank. The bank generates revenue from the following primary sources:
- Interest Income: Funds generated from loans and other financial products.
- Non-Interest Income: Fees and commissions derived from various services.
Interest Income
As of the latest available data from Q2 2023, The First Bancshares reported a net interest margin of 3.77%. The bank's total loans stood at approximately $1.09 billion, contributing significantly to interest income.
The composition of the loan portfolio is as follows:
| Loan Type | Amount ($ millions) | % of Total Loans |
|---|---|---|
| Commercial Loans | 400 | 36.7% |
| Residential Mortgages | 250 | 22.9% |
| Consumer Loans | 150 | 13.8% |
| Commercial Real Estate | 290 | 26.6% |
Non-Interest Income
FBMS also derives revenue from non-interest income, which includes fees from deposit accounts, service fees, and other financial services. For Q2 2023, the non-interest income amounted to $5.8 million, which contributed 24% of total revenue.
The breakdown of non-interest income is as follows:
| Income Source | Amount ($ millions) | % of Non-Interest Income |
|---|---|---|
| Service Charges on Deposits | 2.0 | 34.5% |
| Wealth Management Fees | 1.5 | 25.9% |
| Bank Card Fees | 1.0 | 17.2% |
| Other Income | 1.3 | 22.4% |
Operating Expenses
The efficiency of a bank is often measured by its operating expenses. As of Q2 2023, FBMS reported operating expenses of $15 million, with a cost-to-income ratio of 58%. The components of operating expenses include:
- Personnel Expenses: $8 million
- Occupancy Expenses: $2 million
- Other Operational Expenses: $5 million
Loan Loss Provisions
FBMS also allocates a portion of its earnings to provisions for loan losses, an essential aspect of maintaining financial health. For Q2 2023, the provision was reported at $1 million, reflecting a stable credit quality.
Investment Portfolio
The First Bancshares, Inc. maintains a diverse investment portfolio, which includes U.S. Treasuries, municipal bonds, and corporate debt. The total investment securities amounted to approximately $600 million, yielding an average return of 2.35%.
The composition of the investment portfolio is illustrated below:
| Investment Type | Amount ($ millions) | % of Total Investments |
|---|---|---|
| U.S. Treasuries | 200 | 33.3% |
| Municipal Bonds | 150 | 25.0% |
| Corporate Bonds | 250 | 41.7% |
Growth Strategies
The First Bancshares, Inc. continues to pursue growth through:
- Acquisitions: Targeting small community banks to expand market reach.
- Branch Network Expansion: Opening new branches in underrepresented areas.
- Digital Banking Services: Enhancing online and mobile banking platforms.
Conclusion on Revenue Generation
Through a diverse revenue-generating model that includes interest income, non-interest income, and a strategic approach to managing expenses and investments, The First Bancshares, Inc. successfully sustains its operations and profitability in the competitive banking sector.
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