Exploring The First Bancshares, Inc. (FBMS) Investor Profile: Who’s Buying and Why?

You're looking at The First Bancshares, Inc. (FBMS) investor profile, but the real story for the 2025 fiscal year isn't about traditional growth-it's about a successful exit through a major merger. The question isn't just who was buying, but why they were buying a stock that essentially became defunct on April 1, 2025. The final months saw a massive shift in the shareholder base, with institutional ownership dropping by a staggering 87.23% in shares held long, as merger arbitrageurs (investors who profit from M&A deals) traded out of FBMS shares and into Renasant Corporation shares, based on the approved exchange ratio of 1.00 Renasant share for each FBMS share. This activity was driven by the certainty of the deal, which created a combined regional powerhouse with approximately $26 billion in assets. Did the institutional holders, who collectively owned 3,324,381 shares as of March 31, 2025, price the final value correctly, or did the stock's last-reported annual net income of $77.2 million for the year ended December 31, 2024, still leave a defintely profitable gap for the last-minute players? The answer is in the final movements of the major funds.

Who Invests in The First Bancshares, Inc. (FBMS) and Why?

You're looking at The First Bancshares, Inc. (FBMS) in 2025, but the first thing to understand is that the company's independent life ended on April 1, 2025, when its merger with Renasant Corporation closed. This acquisition is the single most important factor shaping its investor profile and motivations in the 2025 fiscal year. So, the investor profile you see now is a snapshot of who was holding the stock right before the final exchange.

The short answer is that the investor base was dominated by institutional money, split between long-term passive funds and short-term, specialized hedge funds playing the merger. You're defintely looking at a stock that was no longer a pure regional bank play, but a merger arbitrage target.

Key Investor Types: The Institutional Dominance

The investor base for The First Bancshares, Inc. (FBMS) was heavily tilted toward large institutions. As of early 2025, institutional investors held approximately 69.95% of the company's stock. This is typical for a regional bank with a market capitalization around $1.06 billion, as it's large enough to be included in various small-cap and regional banking indices.

The institutional ownership breaks down mainly into three camps:

• Mutual Funds and Index Trackers: Firms like Vanguard Group Inc. and Dimensional Fund Advisors LP hold large, passive stakes. Their motivation is simply to track the Russell 2000 or a regional banking index, making them long-term, non-activist holders.
• Active Asset Managers: Companies such as T. Rowe Price Investment Management Inc. and Lord Abbett & CO. LLC hold substantial positions, often viewing FBMS as a value play in the Southeast U.S. banking market, focusing on its regional growth story and credit quality.
• Hedge Funds and Arbitrageurs: The presence of funds like Millennium Management LLC and Magnetar Financial LLC, especially leading up to the April 1, 2025, closing date, signals a high level of merger arbitrage activity. They buy the stock to capture the small, near-certain premium between the trading price and the acquisition price.

Retail investors-the general public-held the remaining portion, but their influence on the stock's day-to-day price action was minimal compared to the institutional flow. One clean one-liner: Institutional investors controlled the stock's fate in 2025.

Investment Motivations: From Dividends to Acquisition Premium

The motivations for holding FBMS stock in 2025 were a mix of traditional regional bank appeal and the immediate, high-certainty return from the merger. Pre-merger, the core appeal was the company's stable market position across Mississippi, Louisiana, Alabama, Georgia, and Florida, plus its reliable income stream.

Here's a quick look at the primary drivers:

• Merger Arbitrage: This was the dominant near-term motivation. The deal offered a clear exit: 1.00 share of Renasant Corporation (RNST) common stock for each FBMS share. Arbitrageurs bought FBMS when its price was slightly below the implied value of the RNST share exchange, aiming to profit from the small, low-risk spread when the merger closed.
• Income and Dividends: For long-term holders, the stock was attractive for its dividend. FBMS had an annual dividend of $1.00 per share, translating to a forward dividend yield of approximately 2.96% as of late 2025 data. This consistent payout, plus a history of dividend growth (a 3-year average growth rate of 28.03%), appealed to income-focused investors.
• Growth Prospects (Regional Consolidation): Before the merger, analysts projected a consensus Earnings Per Share (EPS) of $2.82 for the next financial year. This growth, combined with the strategic value of its Gulf Coast footprint, made it a solid target for investors betting on regional bank consolidation. This growth is now part of the combined Renasant entity's story.

Investment Strategies: Arbitrage and Value Holding

The strategies employed by the investor base in 2025 were highly polarized, reflecting the merger environment. You saw two main groups: those who saw the stock as a short-term trade and those who viewed it as a long-term position in a larger, stronger regional bank.

The key strategies were:

• Merger Arbitrage (Short-Term): This strategy involved buying FBMS stock and sometimes shorting RNST stock simultaneously to lock in the spread. Funds like Westchester Capital Management LLC increased their holdings by over 126.5% in the months leading up to the merger, clearly indicating a merger arbitrage play. Their goal was a quick, low-volatility return on a high-certainty event.
• Value and Long-Term Holding: These investors, primarily the large mutual funds, were holding the stock for its intrinsic value as a regional bank. They accepted the 1.00 share-for-share exchange, effectively converting their FBMS shares into shares of Renasant Corporation, betting on the long-term success of the combined $26 billion asset institution. They valued the bank's historical performance and the strategic rationale of the consolidation.

Here's the quick math on the pre-merger value proposition: Analysts had a 12-month price target of $45.00 on FBMS, offering a potential upside of over 33% from the March 31, 2025, price of $33.81, which was a strong signal for value investors to hold through the acquisition. What this estimate hides, though, is that the final value was determined by the RNST stock price at closing, not the standalone FBMS target. You can find more detail on the strategic rationale for the merger here: Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

To be fair, the long-term holders were essentially making a decision on Renasant, not The First Bancshares, Inc. anymore.

Next step: Portfolio managers should evaluate their Renasant Corporation (RNST) exposure post-merger, ensuring the new position aligns with their regional banking and income mandates by the end of this quarter.

Institutional Ownership and Major Shareholders of The First Bancshares, Inc. (FBMS)

You need to know who owns The First Bancshares, Inc. (FBMS) because their actions are the primary driver of the stock, especially now. The story here isn't long-term growth; it's merger arbitrage, which is a specific, near-term trade driven by large institutions.

The institutional investor profile for The First Bancshares, Inc. shifted dramatically in 2025 due to its acquisition by Renasant Corporation (RNST). This all-stock transaction, valued at approximately $1.2 billion, closed on April 1, 2025, meaning the majority of recent institutional activity was short-term merger arbitrage (a strategy where investors buy the stock of the target company and sell the stock of the acquiring company to profit from the spread). The institutional ownership structure reflects this, showing a mix of passive index funds and highly active hedge funds.

Top Institutional Investors and Shareholdings

The largest shareholders are a blend of passive managers, like Vanguard and T. Rowe Price, and active funds specializing in event-driven strategies like mergers. As of the most recent 2025 filings, a handful of institutions held significant stakes, often representing a substantial portion of the company's approximately 31.5 million shares outstanding.

Here's a snapshot of the largest institutional holders as of mid-2025, which clearly shows the high-stakes players involved in the final stages of the merger:

Alliancebernstein L.P. held over a million shares, making it one of the largest single institutional holders. The presence of firms like Millennium Management and Magnetar, which are known for their arbitrage desks, is a dead giveaway for a stock in the final stages of a merger. They're just waiting for the closing bell.

Changes in Ownership: Arbitrage in Action

The most telling aspect of the 2025 investor profile is the volatility in ownership, which is typical for a company undergoing an acquisition. You see massive swings as arbitrageurs enter and exit the trade, trying to capture the final spread before the deal closes.

• Millennium Management LLC dramatically increased its stake by +252.1% in May 2025, accumulating over 846,307 shares.
• Westchester Capital Management LLC also showed a significant increase, boosting its position by +126.5% in May 2025.
• Conversely, some institutions like Goldman Sachs Group Inc. cut their exposure by a substantial -51.1% in June 2025, likely unwinding their position as the merger date passed.

Honestly, these massive percentage changes in early 2025 weren't about a new fundamental belief in the bank's core business; they were about the mechanics of the merger. They were buying the stock to receive 1.00 share of Renasant Corporation stock per FBMS share when the deal closed. That's the quick math.

Impact of Institutional Investors: The Merger Catalyst

The institutional investors' role in The First Bancshares, Inc.'s stock price and strategy was singular: facilitating the merger. When institutions hold a large percentage of a company, they usually exert influence on capital allocation (like dividends or buybacks) and governance. But in this case, their primary impact was maintaining the stock price near the implied merger value.

The institutional buying acted as a floor for the stock price, keeping it tethered to the value of the 1.00 share of Renasant Corporation stock that shareholders were set to receive. This kept the market stable during the transition, which is defintely a good thing for all shareholders.

If you are still holding shares, your focus should be on the combined entity. For a deeper look at the fundamentals that drove this acquisition, you should check out Breaking Down The First Bancshares, Inc. (FBMS) Financial Health: Key Insights for Investors.

Key Investors and Their Impact on The First Bancshares, Inc. (FBMS)

The investor profile for The First Bancshares, Inc. (FBMS) is no longer about long-term regional bank growth; it's a story of merger arbitrage (the practice of profiting from the successful completion of a merger). The critical takeaway is that The First Bancshares, Inc. was acquired by Renasant Corporation, with the merger closing on April 1, 2025. This means the investor base shifted dramatically from traditional bank value investors to funds focused on the near-term conversion of FBMS shares into Renasant Corporation (RNST) shares.

As of the first quarter of 2025, institutional owners-large investment funds, pension funds, and endowments-held a total of 3,324,381 shares, distributed across 109 institutional owners. This is a significant position, representing a 3.11% increase in institutional holdings leading up to the merger completion. The price per share as of March 31, 2025, was approximately $33.81, reflecting the market's pricing of the all-stock deal.

Notable Investors: The Arbitrage Play

You'll notice the largest holders aren't just passive index funds; they include some of the most active players in the merger space. The top investors were positioning themselves to capture the small spread between The First Bancshares, Inc.'s stock price and the value of the Renasant Corporation shares they were set to receive. Here's a look at the largest institutional holders and their stakes, based on the latest 2025 filings:

• T. Rowe Price Investment Management Inc.: Held a substantial stake, including through its Small-Cap Stock Fund.
• Alliancebernstein L.P.: Held over 1.01 million shares, valued at approximately $34.34 million.
• Millennium Management LLC: A major hedge fund, their massive buying spree is a classic arbitrage signal.
• Magnetar Financial LLC: Another hedge fund known for its merger arbitrage strategies, holding 758,210 shares.
• BlackRock, Inc.: Listed as a major shareholder, often holding shares for its vast index and active funds.

Investor Influence and The Merger Catalyst

In a typical regional bank, institutional investors influence strategy through proxy votes and private meetings. But for The First Bancshares, Inc. in 2025, their influence was simpler: they were the reason the stock price tracked the merger ratio so closely. The merger agreement, announced in July 2024, stipulated that The First Bancshares, Inc. shareholders would receive 1.00 share of Renasant Corporation common stock for each share they held.

This fixed exchange ratio meant the price of The First Bancshares, Inc. stock was defintely tied to Renasant Corporation's price, minus a small discount to account for the risk that the deal might not close (the 'arbitrage spread'). The large positions taken by funds like Millennium Management LLC and Magnetar Financial LLC served as a market endorsement that the deal would close. Their buying volume helped keep the stock price aligned with the merger value, reducing volatility for other shareholders. You can find more detail on the bank's strategy leading up to this point in their Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

Recent Moves: Massive Buying and Strategic Selling

The institutional trading activity in early 2025 clearly shows funds rushing in to capitalize on the pending merger. This is where the numbers tell the story of the strategic shift. For instance, Millennium Management LLC increased its position by a staggering +252.1%, acquiring a total of 846,307 shares with a market value of $28.61 million. Jane Street Group LLC also boosted its stake by +220.0%.

Here's the quick math on some key institutional moves reported in the first half of 2025, showing who was making a bet on the merger closing:

Conversely, the significant selling by a firm like Goldman Sachs Group Inc. (a -51.1% reduction) often indicates a large institution rebalancing their portfolio or closing out an existing, non-arbitrage position ahead of the final merger date. The total outstanding shares of The First Bancshares, Inc. were 31,238,172 as of March 24, 2025.

Actionable Insight

Since the merger closed on April 1, 2025, the investment decision for former The First Bancshares, Inc. shareholders is now straightforward: your shares have converted to Renasant Corporation stock. Your next step is to analyze Renasant Corporation's fundamentals-its Q1 2025 diluted EPS was $0.58, and its total assets were $8.005 billion as of December 31, 2024-to decide whether to hold the new shares or sell. The arbitrage play is over; the long-term bank investment has begun again, just under a new ticker symbol.

Market Impact and Investor Sentiment

If you're looking at The First Bancshares, Inc. (FBMS) right now, you need to understand one thing: the investor profile is defintely dominated by a single, near-term event. That event is the pending merger with Renasant Corporation, expected to close on April 1, 2025. This isn't a long-term growth story for new investors; it's a merger arbitrage play until the deal is finalized.

The core sentiment among major shareholders is positive, but it's a calculated positive tied to the deal spread. Institutional investors aren't betting on organic growth anymore; they are buying the stock to capture the difference between the current FBMS share price and the value of the 1.00 share of Renasant common stock they will receive per FBMS share. This is a low-risk, event-driven strategy.

As of March 31, 2025, we saw 109 institutional owners holding a total of over 3.32 million shares. What's interesting is who is moving in. You see a clear footprint of merger arbitrage funds, which are specialists in this kind of transaction.

• Millennium Management LLC increased its stake by over +252.1% in May 2025.
• Westchester Capital Management LLC's shares rose by +126.5% in May 2025.
• Magnetar Financial LLC also holds a significant position, a classic arbitrage player.

These funds are the new anchor investors, and their presence signals confidence in the deal closing. They are buying the spread, not the bank's future as a standalone entity.

Recent Market Reactions to Ownership Shifts

The stock market's reaction to the merger has been steady, with the price essentially tethered to the Renasant share price multiplied by the exchange ratio. This is typical for a stock in the final stages of a merger. The stock price of FBMS as of March 31, 2025, was $33.81 per share. The stock has outperformed the broader market, beating the S&P 500 Index by +21.84% over the past year, which shows the market was rewarding the strategic move toward a larger, combined institution.

The real market action isn't in volatility, but in the volume spikes that accompany large institutional moves. When funds like Millennium or Westchester file their 13F forms, it confirms the arbitrage opportunity is being actively pursued. The trading volume often increases dramatically on these filings, showing the market is reacting to the certainty of the deal, not new operating news.

The merger creates a significant financial services institution with an estimated $26 billion in assets and over 250 locations across the Southeast. That's a huge shift in scale. You can read more about the strategic rationale behind this move in the Mission Statement, Vision, & Core Values of The First Bancshares, Inc. (FBMS).

Analyst Perspectives: Valuation and the Merger's Impact

Analyst perspectives on The First Bancshares, Inc. are now dual-focused: the near-term deal mechanics and the post-merger valuation of the new, combined company. The consensus rating from analysts is split, with some maintaining a 'Hold' and others a 'Buy.' This difference often comes down to how they model the risk premium until the April 2025 closing date.

The consensus price target for FBMS is around $37.50 for December 2025, but some analysts have a higher target of $45.00, representing a potential upside of +33.10% from the March 2025 price. Here's the quick math: the higher target likely reflects the full, un-discounted value of the Renasant shares to be received, assuming the deal closes smoothly.

Analysts are forecasting a 2025 Earnings Per Share (EPS) of approximately $2.82. What this estimate hides is that most of this value will be realized under the Renasant banner after the merger closes in the first half of the fiscal year. The impact of key investors, specifically the arbitrage funds, is simple: they keep the FBMS stock price honest, ensuring it trades close to the fair value of the Renasant shares it will convert into.

The new entity is expected to deliver substantial synergies (cost savings from combining operations), which analysts are baking into their long-term models for the combined stock. This is the real, long-term opportunity for investors who hold through the conversion.

The action for you, the investor, is to assess the risk of the deal failing-which is low now that regulatory approvals are secured-versus the small premium you can capture by holding FBMS until the conversion. Finance: model the RNST share price volatility against the 1.00 exchange ratio by Friday.