Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of a specific stock's financial standing? Have you considered how factors like revenue, earnings, and key financial ratios might influence your investment decisions? In 2024, The First Bancshares's (FBMS) revenue reached $279.64 million, marking a slight decrease of -0.67% compared to the previous year. However, earnings saw a rise of 2.30%, totaling $77.19 million. With analysts forecasting a potential 33.73% upside and a price target of $45.0, let's delve deeper into the financial intricacies of FBMS to equip you with the insights needed for informed investment strategies.

The First Bancshares, Inc. (FBMS) Revenue Analysis

A detailed look into The First Bancshares, Inc.'s (FBMS) financial performance reveals several key aspects of its revenue generation. Understanding these elements is crucial for investors seeking to assess the bank's stability and growth potential. For further insights, you might find this resource helpful: Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors.

The First Bancshares, Inc. reported total interest income of $238.95 million for the year 2024. The bank's interest expense totaled $68.27 million, resulting in a net interest income of $170.68 million.

Here's a breakdown of the primary revenue sources for The First Bancshares, Inc. (FBMS) based on the latest financial data:

• Interest Income: This constitutes a significant portion of FBMS's revenue, derived from loans and other interest-bearing assets. In 2024, total interest income reached $238.95 million.
• Non-Interest Income: FBMS also generates revenue from sources other than interest, including service charges, fees, and other income-generating activities. Non-interest income for 2024 was $27.44 million.

To provide a clearer picture, here is a summary of The First Bancshares, Inc.'s income statement data:

In 2024, The First Bancshares, Inc. reported a net income of $67.59 million.

The First Bancshares, Inc. (FBMS) Profitability Metrics

Understanding The First Bancshares, Inc.'s profitability involves examining several key metrics that reveal how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins, each providing a different perspective on the company's financial performance.

Analyzing these figures over time helps identify trends and potential areas of concern or improvement. Comparing these ratios with industry averages provides context and helps determine whether The First Bancshares, Inc. is performing competitively.

Let's consider some specific areas:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after subtracting the cost of goods sold. A higher gross profit margin suggests that The First Bancshares, Inc. is efficient in managing its production costs.
• Operating Profit Margin: This metric measures the percentage of revenue remaining after deducting operating expenses, providing insight into the company's efficiency in managing its operational costs.
• Net Profit Margin: Representing the percentage of revenue that translates into profit after all expenses, including taxes and interest, are considered, this margin offers a comprehensive view of overall profitability.

To effectively evaluate The First Bancshares, Inc.'s profitability, it’s essential to consider these metrics in relation to each other and over a sustained period. Here’s a sample structure for presenting such data:

In assessing operational efficiency, factors such as cost management and trends in gross margin play a crucial role. Effective cost management directly impacts profitability, while upward trends in gross margin may indicate improved operational strategies or market conditions.

Here you can read more: Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors

The First Bancshares, Inc. (FBMS) Debt vs. Equity Structure

Understanding how The First Bancshares, Inc. (FBMS) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and how it strategically uses debt and equity.

As of the end of 2024, a detailed overview of The First Bancshares, Inc.'s debt levels is essential. This includes both short-term and long-term debt obligations. Investors should scrutinize the amounts, maturity dates, and interest rates associated with each type of debt to assess the company's financial flexibility and potential risks.

The debt-to-equity ratio is a key metric for evaluating The First Bancshares, Inc.'s financial leverage. It indicates the proportion of debt the company uses to finance its assets relative to the value of shareholders' equity. A higher ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach. Comparing The First Bancshares, Inc.'s debt-to-equity ratio to industry averages provides valuable context. For example, if the industry average is 1.5, and The First Bancshares, Inc.'s ratio is 0.8, it may suggest the company is less leveraged than its peers.

Recent activities, such as new debt issuances, credit ratings, or refinancing efforts, significantly impact The First Bancshares, Inc.'s financial structure. Any upgrades or downgrades in credit ratings can affect borrowing costs and investor confidence. Refinancing activities might indicate efforts to lower interest expenses or extend debt maturity dates, reflecting proactive financial management.

Balancing debt and equity is a strategic decision for The First Bancshares, Inc. Too much debt can increase financial risk, while relying solely on equity might limit growth opportunities. The optimal mix depends on various factors, including the company's growth prospects, profitability, and overall risk appetite. The First Bancshares, Inc. must carefully weigh the advantages and disadvantages of each financing method to maintain a healthy capital structure.

Factors influencing The First Bancshares, Inc.'s decisions regarding debt versus equity include:

• Market conditions and interest rates
• The company's growth strategy and investment opportunities
• Regulatory requirements and capital adequacy ratios
• Investor expectations and preferences

Analyzing these elements provides a comprehensive view of The First Bancshares, Inc.’s financial health and its approach to funding growth. For further insights into the company's investor profile, consider exploring: Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who’s Buying and Why?

The First Bancshares, Inc. (FBMS) Liquidity and Solvency

When evaluating the financial health of The First Bancshares, Inc. (FBMS), understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts.

Here's an overview of key liquidity measures for FBMS:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A higher current ratio generally indicates better liquidity.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventory from current assets, providing a more conservative measure of liquidity.
• Working Capital: This is the difference between a company's current assets and current liabilities. Positive working capital suggests that a company has enough short-term assets to cover its short-term liabilities.

Analyzing cash flow statements provides further insights into FBMS's liquidity. The cash flow statement is broken down into three main sections:

• Operating Activities: This section shows the cash generated or used from the company's core business operations.
• Investing Activities: This section includes cash flows from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section reflects cash flows related to debt, equity, and dividends.

Monitoring these cash flow trends can reveal potential liquidity strengths or weaknesses. For example, consistently positive cash flow from operations indicates a strong ability to generate cash from its core business.

To provide a clearer picture, a detailed table summarizing these metrics would be beneficial. Please note that specific values for 2024 are needed to complete this table.

Furthermore, understanding the mission, vision, and core values of The First Bancshares, Inc. (FBMS) can provide additional context for evaluating its financial strategy and long-term sustainability: Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

The First Bancshares, Inc. (FBMS) Valuation Analysis

Assessing whether The First Bancshares, Inc. (FBMS) is overvalued or undervalued involves analyzing several key financial ratios and indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Here's a breakdown of these elements:

• Price-to-Earnings (P/E) Ratio: The First Bancshares has a P/E Ratio of 14.29.
• Price-to-Book (P/B) Ratio: The P/B Ratio for The First Bancshares is 1.10.
• PEG Ratio: The First Bancshares's PEG ratio is 8.61.
• Price to Fair Value: The Price to Fair Value is 1.10.
• Price to FCF: The Price to FCF is 13.43.
• Price to Operating Cash Flow: The Price to Operating Cash Flow is 12.90.
• EV/EBITDA Ratio: The First Bancshares EV to EBITDA ratio is 0.00.
• EV/FCF Ratio: The First Bancshares EV to FCF ratio is 14.90.

Stock Price Trends:

• The all-time high First Bancshares stock closing price was $38.73 on February 06, 2025.
• The First Bancshares 52-week high stock price is $39.21.
• The First Bancshares 52-week low stock price is $23.60.
• The average First Bancshares stock price for the last 52 weeks is $31.97.
• The latest closing stock price for First Bancshares as of March 31, 2025 was $33.81.

Dividend Yield and Payout Ratios:

• Dividend Per Share: The First Bancshares pays an annual dividend of $1.00 per share.
• Dividend Yield: This results in a dividend yield of 2.96%.
• Payout Ratio: The payout ratio is 38.91%.

Analyst Consensus:

• The consensus rating is 'Moderate Buy'.
• The average price target for The First Bancshares is $45.00.

Here is a table summarizing analyst ratings for FBMS:

These ratings suggest a generally positive outlook from analysts.

For more detailed insights, you can refer to: Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors

The First Bancshares, Inc. (FBMS) Risk Factors

Understanding the risks that The First Bancshares, Inc. (FBMS) faces is crucial for investors. These risks can be both internal and external, impacting the company's financial health and future performance.

Here's an overview of key risk areas:

• Industry Competition: The financial services industry is highly competitive. Increased competition among financial institutions could significantly impact FBMS's performance.
• Economic Conditions: Economic conditions, both nationally and locally, in the areas where FBMS operates, play a vital role. Unfavorable economic conditions could adversely affect the company.
• Interest Rate Risk: Fluctuations in interest rates can impact FBMS's profitability. Elevated interest rates, in particular, pose a risk.
• Regulatory Changes: Legislative or regulatory changes can adversely affect the company's ability to conduct business combinations or new operations.
• Customer and Vendor Relationships: The financial success and strategies of FBMS's customers and vendors are important. Changes in these relationships could create risks.
• Actions of Government Regulators: Government regulatory actions can impact FBMS's operations and financial health.
• Acquisition Risks: Anticipated benefits from acquisitions may not materialize as expected due to changes in general economic and market conditions.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. For instance, the Q4 2024 results showed $18.3 million in net income, with operating earnings (non-GAAP) of $20.3 million. Loan growth reached an annualized rate of 6.7%. The net interest margin expanded to 3.37%, with core NIM improving by 7 basis points to 3.33%. Deposit costs decreased from 183 bps to 178 bps. These figures reflect both the opportunities and challenges FBMS faces.

Some specific risks include:

• Fraud Risk: Increased exposure to fraud can lead to unexpected loan losses.
• Personnel Risk: Inability to attract and retain skilled personnel can hinder the company's success.
• Credit Risk: Credit risk associated with lending activities is always a concern.
• Merger Risk: The planned merger with Renasant Corporation involves risks, including fluctuations in the market value of consideration, expenses, and potential litigation. The merger is expected to close on April 1, 2025, creating an institution with $26 billion in assets and over 250 locations.

Mitigation strategies and plans are essential for managing these risks. While specific details may vary, FBMS generally focuses on:

• Maintaining a strong capital position
• Diversifying its loan portfolio
• Implementing robust risk management practices
• Staying compliant with all applicable laws and regulations

For more detailed information on FBMS's risk factors, refer to their filings with the Securities and Exchange Commission (SEC), available at http://www.sec.gov.

Here's a summary of key financial data as of December 31, 2024:

Additionally, consider exploring Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who’s Buying and Why? for more insights.

The First Bancshares, Inc. (FBMS) Growth Opportunities

Several factors could influence the future growth of The First Bancshares, Inc. (FBMS). These include strategic initiatives, market conditions, and financial performance.

Here's an overview of potential growth drivers and related information:

• Acquisition by Renasant Corporation: In July 2024, Renasant Corporation (NYSE: RNST) and The First Bancshares, Inc. (NYSE: FBMS) announced a definitive agreement for Renasant to acquire The First in an all-stock transaction valued at approximately $1.2 billion, based on Renasant's closing stock price as of July 26, 2024. The merger, which has been approved by both companies' boards, is expected to close in the first half of 2025. This merger could lead to increased market presence and operational synergies.
• Market Expansion: The First Bancshares has been expanding its footprint across the Southeastern United States. As of June 30, 2024, The First operated 111 branches across Mississippi, Louisiana, Alabama, Florida, and Georgia, with approximately $8.0 billion in total assets, $5.3 billion in total loans, and $6.6 billion in total deposits.
• Strategic Acquisitions: The First Bancshares has a history of strategic acquisitions to expand its market presence.
  • In 2022, The First Bancshares acquired Beach Bancorp, Inc., which deepened its presence in the Florida panhandle and provided entry into the Tampa, Florida market. Beach Bank operated seven branches with approximately $492 million in deposits and $456 million in loans as of March 31, 2022.
  • In 2018, The First Bancshares acquired FMB Banking Corporation, expanding its footprint in the Florida panhandle and marking its entry into southern Georgia. The aggregate consideration was valued at approximately $80 million.
• Analyst Ratings: Based on the analysis of 5 Wall Street analysts, FBMS has a neutral consensus with a median price target of $40.00 (ranging from $35.00 to $45.00). The overall analyst rating is Buy (7.0/10).
• Stock Performance: In January 2025, The First Bancshares, Inc. (NYSE:FBMS) stock reached a new 52-week high, touching $39.11. The company's shares had an impressive 1-year change of 53.4%.
• Dividend Payments: The company maintains a healthy dividend yield and has maintained dividend payments for 16 consecutive years. The latest announced quarterly dividend was declared on January 28, 2025, for $0.25 and went ex-dividend on February 10, 2025.

These factors suggest potential avenues for future growth and expansion for The First Bancshares, Inc.

For more insights into the company's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).