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The First Bancshares (FBMS)
:FBMS
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The First Bancshares
(NYSE:FBMS)
56Neutral
The First Bancshares (FBMS) vs. S&P 500 (SPY)
Market Cap
$1.03B
Dividend Yield3.01%
Average Volume (3M)140.13K
Price to Earnings (P/E)13.6
Beta (1Y)0.99
Revenue Growth9.99%
EPS Growth1.88%
CountryUS
Employees1,078
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.44
Shares Outstanding31,251,167
10 Day Avg. Volume127,708
30 Day Avg. Volume140,129
Financial Highlights & Ratios
PEG Ratio7.23
Price to Book (P/B)N/A
Price to Sales (P/S)3.88
Price to Cash Flow (P/CF)8.10
P/FCF Ratio4.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.00Price Target Upside35.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
The First Bancshares Business Overview & Revenue Model
Company DescriptionThe First Bancshares, Inc. (FBMS) is a financial holding company headquartered in Hattiesburg, Mississippi. It operates through its wholly owned subsidiary, The First, A National Banking Association, which provides a wide range of banking services to individual and business clients. The company's core offerings include personal and commercial banking services, such as checking and savings accounts, loans, mortgages, and credit card services. The bank primarily serves communities in Mississippi, Louisiana, Alabama, Florida, and Georgia, emphasizing personalized customer service and community involvement.
How the Company Makes MoneyThe First Bancshares, Inc. generates revenue primarily through the interest income earned on its loan portfolio, which includes personal, commercial, and real estate loans. Additionally, the company earns non-interest income from various services, such as fees for account maintenance, transaction processing, and financial advisory services. A significant portion of its revenue also comes from investment securities and the management of deposit accounts, which provide a stable funding source to support lending activities. The company's earnings are influenced by regional economic conditions, interest rate fluctuations, and its ability to maintain strong relationships with customers and local communities.
The First Bancshares Financial Statement Overview
Summary
The First Bancshares shows strong revenue growth over the years, but recent financials highlight risks with zero reported Net Income and Stockholders' Equity in 2024. While cash flow remains a strong point, the balance sheet's weaknesses and potential profitability issues warrant caution. Continued revenue growth is promising, but attention to profitability and equity stability is crucial.Income Statement
The First Bancshares shows consistent revenue growth, with Total Revenue increasing from $145 million in 2019 to $290 million in 2023. However, the Net Income in 2024 is reported as zero, which raises concerns about profitability despite the revenue growth. Historical data indicates a decline in profitability margins, as EBIT and Net Income figures have fluctuated.65
Positive
Balance Sheet
The balance sheet reveals potential vulnerabilities, with Stockholders' Equity at zero in 2024, which is concerning for stability. The Debt-to-Equity ratio has been stable in previous years, but the high level of Total Assets compared to Stockholders' Equity in recent data suggests high leverage and potential risk.30
Negative
Cash Flow
The company demonstrates strong cash flow performance, with Free Cash Flow growing from $36 million in 2019 to $104 million in 2023. Operating Cash Flow remains healthy, suggesting good cash generation from operations. However, the drop in 2024's Free Cash Flow needs attention despite previous growth.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 46.39M | 290.17M | 207.26M | 194.34M | 161.57M | Gross Profit |
| 46.39M | 290.17M | 207.26M | 194.34M | 161.57M | EBIT |
| -243.74M | 0.00 | 85.31M | 83.46M | 59.90M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 77.19M | 75.46M | 62.92M | 64.17M | 52.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 116.46M | -1.19B | 1.40B | 2.67B | 1.58B | Total Assets |
| 8.00B | 8.00B | 6.46B | 6.08B | 5.15B | Total Debt |
| 341.56M | 139.96M | 284.86M | 144.73M | 259.24M | Net Debt |
| 121.15M | -215.18M | 139.54M | -774.99M | -303.31M | Total Liabilities |
| 7.00B | 7.05B | 5.82B | 5.40B | 4.51B | Stockholders Equity |
| 1.01B | 949.03M | 646.66M | 676.17M | 644.82M |
| Cash Flow | Free Cash Flow | |||
| 82.19M | 104.82M | 74.50M | 88.59M | 46.79M | Operating Cash Flow |
| 85.51M | 108.51M | 90.03M | 95.72M | 51.19M | Investing Cash Flow |
| -148.30M | 328.00M | -706.89M | -207.35M | -259.13M | Financing Cash Flow |
| -71.95M | -226.67M | -157.54M | 468.80M | 601.63M |
The First Bancshares Technical Analysis
Negative
33.17
Price Trends
35.92
Negative
35.51
Negative
32.10
Positive
Market Momentum
-0.56
Positive
35.18
Neutral
20.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBMS, the sentiment is Negative. The current price of 33.17 is below the 20-day moving average (MA) of 36.24, below the 50-day MA of 35.92, and above the 200-day MA of 32.10, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 20.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBMS.
The First Bancshares Risk Analysis
The First Bancshares disclosed 28 risk factors in its most recent earnings report. The First Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The First Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.35B | 10.03 | 11.54% | 2.97% | 7.67% | 17.51% | |
73 Outperform | $4.51B | 20.53 | 14.87% | 1.49% | 16.28% | 9.61% | |
70 Neutral | $1.11B | 12.50 | 10.64% | 2.51% | 18.29% | 13.31% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $3.18B | 11.71 | 9.69% | 3.95% | 21.10% | -4.20% | |
56 Neutral | $1.03B | 13.59 | 7.90% | 3.01% | 9.99% | 1.88% | |
54 Neutral | $396.78M | 12.51 | -1.83% | 6.59% | 3.95% | -135.44% |
* Financial Sector Average
Performance Comparison
FBMS
The First Bancshares
32.98
7.88
31.39%
FULT
Fulton Financial
17.24
2.57
17.52%
HWC
Hancock Whitney
49.81
7.68
18.23%
RBCAA
Republic Bancorp
64.22
16.01
33.21%
SFBS
ServisFirst Bancshares
81.18
18.26
29.02%
MSBI
Midland States Bancrop
18.23
-4.62
-20.22%
The First Bancshares Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -9.89% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong loan growth, margin expansion, and stable credit quality. However, it also highlights challenges such as a decrease in net income due to increased provisions and a decline in deposit levels. Despite these challenges, the overall performance and strategic growth initiatives suggest a strong position moving forward.Highlights
Strong Loan Growth
Loans grew by $111 million, up about 8.6% on an annualized basis, with robust originations of about $450 million.
Margin Expansion
Core margin increased by 9 basis points to 3.19%, and overall margin expanded by 6 basis points.
Stable Credit Quality
Net charge-offs were only 4 basis points, and nonperforming assets increased slightly by 3 basis points, maintaining strong credit quality.
Solid Capital Ratios
Capital ratios remained strong with a TCE of 8.3%, leverage ratio of 10%, and total risk base of 15.3%.
Positive Regional Loan Performance
The Mississippi region accounted for 35% of new loan originations and Georgia had its strongest showing since the merger.
Lowlights
Decrease in Net Income
Net income was down by $900,000 from the first quarter, mainly due to a $1.7 million provision expense.
Deposit Decrease
Deposits decreased by $84.2 million, approximately 1.3%, with $38.3 million related to public funds.
Slight Decline in Loan Yield
Average yield on loans contracted slightly from 8.12% to 7.92% for the quarter.
Company Guidance
During the second quarter of 2024, FBMS reported a solid set of metrics reflecting their robust financial performance. The company experienced an 8.6% annualized growth in loans, with a net increase of $111 million, driven by strong originations totaling approximately $450 million. The core margin improved by 9 basis points to 3.19%, while the cost of deposits held steady at 1.78%. Credit quality remained strong, with net charge-offs at 4 basis points and non-performing assets showing a slight migration of 3 basis points. The provision expense was $1.7 million, contributing to a pretax pre-provision income increase of 2.9% to $27.4 million, despite net income dipping due to the provision. The bank's liquidity remained robust, with a loan deposit ratio of 79% and $2 billion available for borrowing. Key operating ratios included an ROAA of 1.01% and a return on average tangible common equity of 12.76%, with a total risk-based capital ratio stable at 15.3%. The bank anticipates stable margins for the remainder of the year, with a continued focus on managing deposit costs and leveraging strong loan demand.The First Bancshares Corporate Events
Financial Disclosures
The First Bancshares Q3 2024 Financial Results Released
Neutral
Dec 3, 2024
The First Bancshares, Inc., a major player in the banking industry, has released its third-quarter 2024 financial results, showcasing its strategic emphasis on non-GAAP metrics like Operating Earnings and Return on Average Assets. With a presence spanning multiple states, the company highlights its solid capital ratios and robust loan and deposit figures, appealing to investors keen on stable banking operations. The report also outlines potential risks and forward-looking statements, underscoring the dynamic challenges in the financial sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.