The First Bancshares, Inc. (FBMS): History, Ownership, Mission, How It Works & Makes Money

Does the final chapter of The First Bancshares, Inc. (FBMS) still hold actionable insights for your investment thesis, even after its acquisition by Renasant Corporation on April 1, 2025? It defintely does, because its journey to a final consolidated asset base of $8.005 billion and a 2024 net income of $77.2 million offers a masterclass in focused regional banking growth. You need to understand the precise mechanics-from its Commercial/Retail Bank to its Mortgage Banking Division-that drove that success, especially as the financial sector continues to consolidate. So, how did this Hattiesburg, Mississippi-based institution work, and what does its successful exit tell you about the true value drivers in today's market?

The First Bancshares, Inc. (FBMS) History

The First Bancshares, Inc. (FBMS) is a quintessential community banking success story, evolving from a local idea in Mississippi to a regional financial powerhouse with over 90 locations across five Southeastern states. Its trajectory is defined by a commitment to community development and a disciplined strategy of organic growth blended with strategic acquisitions.

Given Company's Founding Timeline

The company's origin story is a great example of local entrepreneurs seeing a market gap and filling it with a relationship-focused model. It all started with a simple discussion among local business leaders who wanted a different kind of bank, one truly focused on its community.

Year established

The holding company, The First Bancshares, Inc., was incorporated in 1995, with its bank subsidiary, The First Bank, beginning operations in August 1996.

Original location

The company is headquartered in Hattiesburg, Mississippi, with its first office opening in the Oak Grove community, which is now part of the city.

Founding team members

The company was founded by a group of local business leaders in Hattiesburg, MS. While the full original list is not public, the current leadership, including Chairman, President, and CEO Milton Ray Cole Jr., has been integral to its long-term strategy and success.

Initial capital/funding

While the precise initial capital from 1995 is not disclosed, the scale of the early operation can be seen in its financial position a decade later. By June 30, 2006, The First Bancshares had total assets of $329.2 million and shareholders' equity of $19.5 million, showing a substantial early footing.

Given Company's Evolution Milestones

The company's growth wasn't accidental; it was built on a series of deliberate, market-expanding moves, especially through unifying its bank operations and executing key acquisitions to grow its footprint across the Southeast.

Given Company's Transformative Moments

The real inflection points for The First Bancshares weren't just the acquisitions, but the strategic decisions that defined its identity and operational model. They decided early on to be the community bank with a big bank's product suite, and that's defintely paid off.

The most transformative decision was the commitment to the Community Development Financial Institution (CDFI) model in 2010. This wasn't just a marketing move; it meant maintaining at least 60% of business activities in distressed markets, which has earned the company over $5.2 million in grants to support economic growth and job creation in those communities. This focus is a core competitive advantage (a moat, if you like) that differentiates it from larger, less focused regional banks.

• The Acquisition Strategy: The company used strategic mergers and acquisitions (M&A) to leapfrog into new markets, like the 2020 purchase of Southwest Georgia Financial Corporation, which immediately expanded its footprint into Georgia. This approach is a much faster way to scale than purely organic growth, especially in banking.
• Scaling Assets: The growth from a single-office bank in 1996 to an institution with $8.005 billion in consolidated assets by the end of 2024 shows a massive, sustained growth effort. Analysts are forecasting an Earnings Per Share (EPS) of $2.82 for the next financial year, suggesting the momentum is expected to continue.
• Product Diversification: They moved beyond core commercial/retail banking to build a robust Mortgage Banking Division and offer wealth management services, providing the product breadth of a larger institution while retaining the personal touch of a community bank. You can see how this all ties into their valuation and investor appeal by Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who's Buying and Why?

The First Bancshares, Inc. (FBMS) Ownership Structure

The First Bancshares, Inc. (FBMS) no longer exists as an independent publicly traded entity; it was acquired by Renasant Corporation (RNST) in an all-stock transaction valued at approximately $1.2 billion, which closed in the first half of the 2025 fiscal year.

The company's control shifted from its diverse shareholder base to the larger Renasant ownership structure, but understanding the final breakdown of FBMS's shareholders shows you who drove the deal's approval.

Given Company's Current Status

The First Bancshares, Inc. is now fully integrated into Renasant Corporation, a Tupelo, Mississippi-based financial services institution. The merger was completed on April 1, 2025, ahead of the original schedule, which is defintely a win for integration speed.

This combination created a larger regional bank with a significant presence across the Southeastern U.S., boasting combined total assets of about $26 billion as of the merger's completion.

The former FBMS common stock (NYSE: FBMS) is no longer trading, as shareholders received one share of Renasant common stock for each share of The First Bancshares' common stock.

Given Company's Ownership Breakdown

Before the merger closed in April 2025, the ownership of The First Bancshares, Inc. was primarily controlled by institutional investors, a common pattern for regional banks. Here's the final breakdown of who held the shares that voted to approve the $1.2 billion deal:

Institutional investors held the clear majority, so their decision to support the all-stock acquisition was the key factor in the merger's success. The insider ownership was relatively small, which is typical for a bank of this size. If you want to dive deeper into the players who influenced this vote, check out Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who's Buying and Why?

Given Company's Leadership

As of November 2025, the leadership of the combined entity is primarily Renasant Corporation's executive team, though key former The First Bancshares, Inc. leaders have joined the board and executive management to ensure a smooth transition and integration.

• Kevin D. Chapman: Assumed the role of CEO and President of Renasant Corporation on May 1, 2025, succeeding the prior CEO.
• C. Mitchell Waycaster: Serves as the Executive Vice Chairman of Renasant Corporation.
• M. Ray (Hoppy) Cole, Jr.: The former President and CEO of The First Bancshares, Inc., he joined the combined bank as a Senior Executive Vice President.
• Board Representation: Four former independent directors from The First Bancshares, Inc., including Mr. Cole, were appointed to the Renasant Corporation Board of Directors.

This structure shows a deliberate effort to blend the leadership, keeping the institutional knowledge from The First Bancshares, Inc. while maintaining Renasant's strategic control. It's smart to keep key people from the acquired company, so you don't lose the client relationships. The integration is currently focused on realizing the projected 30% in cost savings from The First Bancshares' 2025 noninterest expense.

The First Bancshares, Inc. (FBMS) Mission and Values

You're looking at what drove The First Bancshares, Inc. (FBMS) beyond its balance sheet, and that's smart; a bank's cultural DNA dictates its long-term stability and growth. The company's mission centered on a dual mandate: maximizing shareholder returns while defintely prioritizing investment in underserved communities.

This community-first approach was not just marketing fluff. It was the core operating principle that led to the merger with Renasant Corporation on April 1, 2025, creating a combined financial institution with approximately $26 billion in assets and a commitment to a new, massive community benefit plan. If you want to understand the original company's strength, look at its purpose.

Given Company's Core Purpose

The First Bancshares, Inc. built its identity on being a Certified Community Development Financial Institution (CDFI), a designation requiring at least 60% of its business activities to be in distressed markets. This focus meant its core purpose was intrinsically tied to economic development in its operating regions.

Official mission statement

The mission was a clear-cut directive to serve the communities while ensuring a return for investors. This is the classic balancing act of a mission-driven public company.

• Provide financial services to the communities it serves.
• Maximize shareholder value by focusing on profitable, controlled growth.
• Invest in underserved markets to foster economic growth and job creation.
• Maintain public confidence by managing a safe and sound bank.

The company's commitment was concrete: since 2010, The First Bank had been awarded over $7.2 million in grants to support economic growth and job creation in these communities. That's real capital hitting the ground.

For a deeper dive into who was backing this mission, check out Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who's Buying and Why?

Vision statement

The vision, born from a group of local business leaders in Hattiesburg, MS, in 1996, was simple: build sustainable, long-term relationships with clients and communities. Here's the quick math on that vision: success in the market equals success for the bank.

• Foster economic growth across all segments of the markets served.
• Generate superior returns to all stakeholders.
• Ensure the company's success is closely tied to the success of its markets.

The merger with Renasant Corporation in 2025 reinforced this community-focused vision by establishing a five-year Community Benefit Plan totaling $10.3 billion, effective upon closing. That's a huge commitment to the combined footprint.

Given Company slogan/tagline

While the company didn't use a single, snappy tagline, its operating philosophy was consistently described as a 'community-first mindset.'

• Operate with a community-first mindset.
• Maintain the 'community bank touch' even with increased scale.

The entire business model was a living slogan, emphasizing deep-rooted local connections over transactional banking. That's what you buy into when you invest in a regional bank with this kind of history.

The First Bancshares, Inc. (FBMS) How It Works

The First Bancshares, Inc. (FBMS) no longer operates as a standalone entity as of November 2025; it was acquired by Renasant Corporation in a merger that closed on April 1, 2025, creating a combined institution with approximately $26 billion in total assets. This new, larger entity continues to deliver value by focusing on community-based commercial and retail banking, leveraging the former The First Bank's extensive branch network across the U.S. Southeast. It's a classic regional bank model, just bigger now.

Given Company's Product/Service Portfolio

The core of the former The First Bancshares' operation, which is now integrated into Renasant's structure, is a diversified portfolio across three main segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. These offerings target a broad base, from individual consumers to small and medium-sized businesses (SMBs) and municipal entities across Mississippi, Alabama, Florida, Georgia, and Louisiana. The portfolio is built on a simple, effective model: take deposits, make loans, and offer ancillary financial services.

Given Company's Operational Framework

The operational success of the former The First Bancshares, Inc., and now the integrated unit within Renasant, hinges on a decentralized, relationship-driven community banking model supported by centralized risk management and technology. This structure allows for local decision-making on loans, which is defintely a big deal for SMBs, while maintaining corporate oversight.

• Net Interest Income Focus: The primary revenue source is net interest income (NII), the difference between interest earned on its loan portfolio and interest paid on deposits. This is the core engine.
• Segmented Operations: The business is managed through three segments: Commercial/Retail Bank (deposits and loans), Mortgage Banking Division (origination and sale of mortgages), and the Holding Company (capital and corporate functions).
• Digital Integration: Value is created by combining a physical branch network (over 111 branches pre-merger) with robust online internet banking, mobile deposits, and cash management services for businesses.
• Credit Quality Management: A key process is the diligent underwriting of commercial and real estate construction loans, which totaled approximately $5.3 billion pre-merger, to manage credit risk and keep nonperforming assets low.

You can read more about the principles guiding these operations at Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

Given Company's Strategic Advantages

The strategic advantages that drove The First Bancshares' growth, and which are now assets for the combined Renasant entity, center on its regional footprint, deep local ties, and a balanced revenue model. What this estimate hides is the complexity of integrating two large regional banks, but the advantages remain.

• Regional Dominance: A strong, contiguous footprint across the high-growth Southeast (MS, LA, AL, FL, GA) allows for cross-market expansion and efficient service delivery to regional businesses.
• Community Banking Expertise: Emphasizing close, personalized relationships with local customers and SMBs, which is often a competitive edge against national banks that rely solely on automated processes.
• Balanced Loan Portfolio: Diversification across commercial, consumer, and real estate construction loans mitigates risk associated with overexposure to a single market segment.
• Scale and Efficiency Post-Merger: The merger with Renasant created a larger, more efficient institution with $26 billion in assets, allowing for greater lending capacity and investment in technology, which is crucial for long-term competitiveness.

The First Bancshares, Inc. (FBMS) How It Makes Money

The First Bancshares, Inc., primarily generates revenue through the classic banking model: borrowing money at a lower rate and lending it out at a higher rate, which creates a positive net interest margin (NIM). This core function is supplemented by a growing stream of non-interest income from service charges, wealth management, and mortgage banking activities. You should note that the company is currently in a transition phase, as its merger with Renasant Corporation, announced in 2024, was expected to close in the first half of 2025.

The First Bancshares, Inc.'s Revenue Breakdown

As of the trailing twelve months (TTM) ended March 31, 2025, The First Bancshares, Inc.'s total revenue was approximately $279.64 million. The vast majority of this revenue still comes from its lending operations, but the non-interest fee income is an increasingly important component for stability.

Business Economics

The financial engine of The First Bancshares, Inc. relies on effectively managing its Net Interest Margin (NIM), which is the difference between the interest earned on assets (like loans) and the interest paid on liabilities (like deposits). For the fourth quarter of 2024, the company's NIM was reported at 3.37%. That's a solid spread, but managing deposit costs is key in this environment.

The bank has done a decent job controlling its cost of deposits, which averaged 178 basis points (1.78%) in the fourth quarter of 2024. This means they are paying less than 2% on average for their funding, which helps keep the NIM healthy. Plus, the non-interest income stream, which showed a year-over-year increase of 5.26% in 2024, helps offset the pressure on the core lending margin. This diversification is defintely a smart move for any regional bank right now. The company's business model is explicitly segmented to manage this diversification:

• Commercial/Retail Bank: The primary driver of NII through commercial and consumer loans and core deposits.
• Mortgage Banking Division: Generates non-interest income through loan origination and sale fees, though this income can be volatile with interest rate changes.
• Holding Company: Manages overall capital and liquidity.

For more on the strategic direction that underpins this model, you can review the Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

The First Bancshares, Inc.'s Financial Performance

Looking at the most recent available data, the company maintained a stable performance leading up to its anticipated merger. The strength of a bank is best measured by its balance sheet size and profitability metrics.

• Total Assets: As of December 31, 2024, the company reported consolidated total assets of over $8.005 billion. This scale is what allows it to compete in the regional banking space.
• Net Income: Trailing twelve months (TTM) net income as of March 31, 2025, stood at $77.19 million. This shows consistent profitability from core operations.
• Earnings Per Share (EPS): The TTM diluted EPS as of March 31, 2025, was reported at $2.44.
• Asset Quality: Nonperforming assets (NPAs) to total assets were relatively low at 0.37% in Q4 2024. This metric is a key indicator of credit health-lower is better, showing sound underwriting practices.

The overall picture is a stable regional bank with a clear, if contracting, core revenue stream and a growing fee-based business, all while maintaining solid credit quality ahead of a major corporate action.

The First Bancshares, Inc. (FBMS) Market Position & Future Outlook

The First Bancshares, Inc. as an independent entity is now history, having been acquired by Renasant Corporation in a merger completed in April 2025, but its franchise is the backbone of a significantly expanded regional powerhouse. This combination has created a financial services institution with approximately $26.7 billion in total assets and a full-year 2025 analyst earnings per share (EPS) projection of $2.49 for the combined company, giving it the scale to compete more effectively across the US Southeast.

Competitive Landscape

The acquisition of The First Bancshares, Inc. by Renasant Corporation was a strategic move to gain meaningful scale, creating a combined entity that operates over 280 locations across six Southeastern states. The legacy FBMS franchise, which contributed over $8 billion in assets, was critical for strengthening the combined company's position, especially in markets like Mississippi, where the new entity is now the fourth largest by deposit market share.

Opportunities & Challenges

The combined entity is strategically positioned to capture growth in the high-growth Southeastern markets, but it still faces the near-term hurdle of full integration and managing interest rate volatility. Honestly, the biggest opportunity is simply having the scale to invest in technology and compete with larger regional players, plus they've got a great footprint now.

Industry Position

The merger immediately vaulted the combined company into the top tier of regional banks in the US Southeast, moving it firmly past the $25 billion asset threshold. This larger size means greater regulatory scrutiny, but it also means a lower cost of capital and more capacity for complex commercial lending. The franchise's strength lies in its deep, local deposit base, which The First Bancshares, Inc. brought to the table, and its commitment to a $10.3 billion, five-year Community Benefit Plan.

• Scale for competition: The combined $26.7 billion in assets allows for greater investment in digital banking to compete with national institutions.
• Funding advantage: The Loans-to-Deposits ratio improved to 86% in Q2 2025, reflecting a strong, stable funding profile.
• Geographic diversification: The merger reduced concentration risk by expanding into new, high-growth metropolitan statistical areas (MSAs) like Tampa, Florida.

For a detailed breakdown of the financials that underpinned this strategic move, you should defintely check out Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors.