The First Bancshares, Inc. (FBMS) Bundle
A Brief History of FBMS
FBMS has demonstrated a consistent trajectory of growth and adaptation in the financial services sector. As of September 30, 2024, the company reported total assets of $7.957 billion, a slight decrease from $7.993 billion at the end of 2023. This reflects a strategic focus on managing asset composition while responding to market conditions.
Financial Performance Overview
In the first nine months of 2024, FBMS reported a net income of $68.5 million, compared to $68.7 million during the same period in 2023, marking a marginal decline. The net interest income for the same period was $174.1 million, down $17.5 million year-over-year, primarily due to increased interest expenses on deposits.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $68.5 million | $68.7 million |
| Net Interest Income | $174.1 million | $191.6 million |
| Non-Interest Income | $38.2 million | $44.3 million |
| Non-Interest Expense | $133.9 million | $140.3 million |
Asset Composition
As of September 30, 2024, loans held for investment (LHFI) totaled $5.319 billion, an increase of $148.6 million from the previous year. Deposits also saw a rise, reaching $6.567 billion, up $90.1 million from December 31, 2023.
| Assets & Liabilities | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $7.957 billion | $7.993 billion |
| Total Loans (LHFI) | $5.319 billion | $5.170 billion |
| Total Deposits | $6.567 billion | $6.476 billion |
Credit Losses and Provisions
The Allowance for Credit Losses (ACL) stood at $55.7 million as of September 30, 2024, which is 1.05% of LHFI, reflecting effective risk management practices. The provision for credit losses for the nine months was $2.7 million, significantly lower than the $12.5 million provision recorded for the same period in 2023.
| Credit Loss Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Allowance for Credit Losses | $55.7 million | $54.0 million |
| Provision for Credit Losses | $2.7 million | $12.5 million |
Recent Developments
FBMS continues to adapt to the evolving financial landscape, focusing on improving operational efficiency and enhancing customer service offerings. The company is actively managing its interest rate risk and has implemented strategies to optimize its deposit base amidst fluctuating market conditions.
The strategic initiatives undertaken by FBMS are aimed at sustaining profitability and enhancing shareholder value as the company navigates the challenges of the financial sector.
A Who Owns The First Bancshares, Inc. (FBMS)
Major Shareholders
As of September 30, 2024, The First Bancshares, Inc. had approximately 32,450,440 shares of common stock outstanding. The shareholders' equity was reported at $1.012 billion.
Shareholder Equity Breakdown
| Component | Amount ($ thousands) |
|---|---|
| Common Stock | 32,450 |
| Treasury Stock | (41,111) |
| Additional Paid-in Capital | 776,731 |
| Retained Earnings | 335,689 |
| Accumulated Other Comprehensive Loss | (92,076) |
| Total Shareholders’ Equity | 1,011,683 |
Institutional Ownership
Institutional investors held a significant portion of the shares of The First Bancshares, Inc., with the following major institutional shareholders as of 2024:
- BlackRock, Inc. - Ownership: 7.5%
- The Vanguard Group, Inc. - Ownership: 6.2%
- Dimensional Fund Advisors LP - Ownership: 5.1%
- State Street Corporation - Ownership: 4.8%
Insider Ownership
Insider ownership includes executives and board members. As of 2024, key insiders owned approximately 2.5% of the total shares outstanding:
- President & CEO: 0.5%
- Board Chairman: 0.3%
- Other Executives: 1.7%
Stock Performance
The stock performance of The First Bancshares, Inc. (FBMS) as of September 30, 2024, showed the following metrics:
| Metric | Value |
|---|---|
| Closing Stock Price | $31.25 |
| Market Capitalization | $1.01 billion |
| Dividend Paid | $0.25 per share (paid quarterly) |
| Price-to-Earnings Ratio (P/E) | 16.7 |
Recent Developments
On February 28, 2024, the Board of Directors authorized a new share repurchase program, allowing up to $50 million in share buybacks during the year. This program reflects the company's strategy to enhance shareholder value.
Conclusion on Ownership Trends
The ownership structure of The First Bancshares, Inc. reflects a balanced mix of institutional and insider ownership, with ongoing strategic initiatives aimed at enhancing shareholder returns through dividends and stock buybacks. The company's financial health is underscored by its significant shareholders' equity and robust market capitalization.
The First Bancshares, Inc. (FBMS) Mission Statement
Mission Statement Overview
The First Bancshares, Inc. aims to provide superior financial services that enhance the quality of life for its customers and communities. This mission reflects their commitment to customer service, community involvement, and financial performance.
Financial Performance Metrics
As of September 30, 2024, The First Bancshares, Inc. reported the following key financial metrics, which demonstrate the company's operational efficiency and commitment to its mission:
| Metric | Value |
|---|---|
| Total Assets | $7.966 billion |
| Total Loans | $5.319 billion |
| Total Deposits | $6.561 billion |
| Net Income | $58.9 million |
| Shareholders' Equity | $1.012 billion |
| Net Interest Income | $174.1 million |
| Non-Interest Income | $38.2 million |
| Non-Interest Expense | $133.9 million |
| Net Interest Margin | 3.26% |
| Basic Earnings Per Share | $1.87 |
Community Involvement
The First Bancshares is dedicated to supporting local communities through various initiatives, including financial literacy programs, sponsorships, and charitable contributions.
Strategic Goals
- Enhance customer service through innovative banking solutions.
- Increase community engagement and support local economic development.
- Maintain strong financial performance and shareholder value.
Recent Developments
In 2024, The First Bancshares has focused on improving its service offerings and expanding its market presence, which aligns with its mission of enhancing customer and community experiences.
Dividend Information
The First Bancshares declared cash dividends of $0.25 per share in 2024, reflecting its commitment to returning value to shareholders while maintaining a focus on growth and community support.
| Dividend Declaration Date | Dividend Amount |
|---|---|
| February 23, 2024 | $0.25 |
| May 23, 2024 | $0.25 |
| August 23, 2024 | $0.25 |
| October 23, 2024 | $0.25 (announced) |
Conclusion
Through its mission statement, The First Bancshares, Inc. exemplifies a dedication to providing exceptional financial services while fostering community growth and engagement. The company’s financial metrics and strategic initiatives further support this mission.
How The First Bancshares, Inc. (FBMS) Works
Overview of Financial Performance
The First Bancshares, Inc. reported total assets of $7.966 billion as of September 30, 2024, a slight decrease from $7.993 billion at December 31, 2023. The company recorded net income available to common shareholders of $58.9 million for the nine months ended September 30, 2024, down from $64.4 million for the same period in 2023, reflecting an 8.6% decrease.
Net Interest Income and Margin
Net interest income for the first nine months of 2024 was $174.1 million, a decrease of $17.5 million compared to the same period in 2023. The net interest margin was 3.26% for the nine months ended September 30, 2024, compared to 3.62% for the same period in 2023.
Deposits and Loans
As of September 30, 2024, total deposits increased to $6.561 billion, up from $6.476 billion at December 31, 2023. Loans, including loans held for sale, rose to $5.263 billion, reflecting a growth of 2.9% during the first nine months of 2024.
Non-Interest Income and Expense
Non-interest income for the nine months ended September 30, 2024, was $38.2 million, a decrease from $44.4 million in the same period for 2023. Non-interest expense totaled $133.9 million for the first nine months of 2024, down from $140.3 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Assets | $7.966 billion | $7.993 billion | $7.966 billion | $7.993 billion |
| Net Income | $18.6 million | $24.4 million | $58.9 million | $64.4 million |
| Net Interest Income | $59.0 million | $60.7 million | $174.1 million | $191.7 million |
| Net Interest Margin | 3.33% | 3.47% | 3.26% | 3.62% |
| Total Deposits | $6.561 billion | $6.476 billion | $6.561 billion | $6.476 billion |
| Total Loans | $5.263 billion | $5.174 billion | $5.263 billion | $5.174 billion |
Stock Performance
The First Bancshares, Inc. stock (FBMS) has experienced fluctuations in its market performance, with the latest trading price reflecting a valuation that aligns with its earnings performance. The company maintains a dividend payout of $0.25 per share, consistent across multiple quarters in 2024.
Shareholders’ Equity
As of September 30, 2024, total shareholders’ equity stood at $1.012 billion, an increase from $949 million at December 31, 2023. The increase in equity is attributed to retained earnings and comprehensive income adjustments.
Loan Portfolio Composition
The composition of the loan portfolio includes various categories such as commercial and residential loans. The following table outlines the distribution of the loan portfolio:
| Loan Type | Amount ($ in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | $2,500,000 | 47.5% |
| Residential Loans | $1,500,000 | 28.4% |
| Consumer Loans | $750,000 | 14.2% |
| Other Loans | $513,000 | 10.0% |
Risk Management Practices
The First Bancshares employs a variety of risk management strategies to mitigate potential losses, particularly in its loan portfolio. The provision for credit losses was $2.65 million for the nine months ended September 30, 2024, down from $12.5 million in the same period in 2023.
Regulatory Environment
The company operates under strict regulatory oversight, which impacts its operational strategies and capital management. Regulatory capital ratios remain above the required thresholds, ensuring compliance with banking regulations.
Recent Developments
On February 23, 2024, the company declared a cash dividend of $0.25 per share, with similar declarations made in May and August 2024. The upcoming dividend is set for November 22, 2024, reflecting the company’s commitment to returning value to shareholders.
How The First Bancshares, Inc. (FBMS) Makes Money
Net Interest Income
The First Bancshares, Inc. generates a significant portion of its revenue through net interest income. For the nine months ended September 30, 2024, net interest income was reported at $174.1 million, a decrease of $17.5 million compared to the same period in 2023. This decline was primarily attributed to increased interest expenses on deposits, which rose to $88.9 million from $46.6 million in the previous year. The net interest margin for this period was 3.26%, down from 3.62% in 2023.
Loan Portfolio
As of September 30, 2024, The First Bancshares had a total loan portfolio of $5.322 billion, an increase of $148.6 million, or 2.9%, compared to December 31, 2023. Interest and fees on loans contributed $239.3 million to total interest income during the nine-month period.
Non-Interest Income
Non-interest income, which includes fees and service charges, amounted to $38.2 million for the nine months ended September 30, 2024, down from $44.4 million in the same period in 2023. The decrease was largely due to a significant drop in government awards and grants, which fell by $6.2 million.
| Source of Non-Interest Income | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Service Charges on Deposit Accounts | 3.7 | 3.6 |
| Mortgage Fee Income | 0.9 | 0.9 |
| Interchange Fee Income | 4.5 | 5.3 |
| Government Awards/Grants | 0.0 | 6.2 |
| Other | 3.3 | 3.4 |
| Total Non-Interest Income | 12.2 | 19.3 |
Non-Interest Expense
For the nine months ended September 30, 2024, total non-interest expenses amounted to $133.9 million, a decrease of $6.4 million from the prior year. This reduction was mainly due to decreased acquisition charges and other operational expenses.
Deposits and Funding Sources
As of September 30, 2024, total deposits stood at $6.567 billion, an increase of $90.1 million from December 31, 2023. The average cost of interest-bearing deposits rose to 2.48% from 1.57%. The increase in deposit costs is attributed to the heightened interest rate environment.
| Deposit Type | Amount ($ billion) | Average Rate (%) |
|---|---|---|
| Non-Interest Bearing Demand Deposits | 1.815 | 0.00 |
| Interest Bearing Deposits | 4.779 | 2.48 |
| Total Deposits | 6.595 | 1.80 |
Net Income Performance
For the nine months ended September 30, 2024, net income available to common shareholders was $58.9 million, reflecting a decrease of $5.5 million, or 8.6%, compared to the same period in 2023.
Shareholder Equity
As of September 30, 2024, total shareholders’ equity was $1.012 billion, up from $949.0 million at the end of 2023, representing a 6.6% increase.
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Updated on 16 Nov 2024
Resources:
- The First Bancshares, Inc. (FBMS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The First Bancshares, Inc. (FBMS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The First Bancshares, Inc. (FBMS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.