The First Bancshares, Inc. (FBMS) Stock Analysis

The First Bancshares, Inc. (FBMS) Financial Services Profile

The First Bancshares, Inc. (FBMS) is a regional bank holding company providing commercial and retail banking services across the Southeastern U.S. With a focus on small to medium-sized businesses and individuals, FBMS operates 90 locations and emphasizes community banking relationships, contributing to its established regional presence and steady profitability.

What Is the Investment Thesis for FBMS?

The First Bancshares, Inc. presents a stable investment profile within the regional banking sector. With a P/E ratio of 13.80 and a profit margin of 18.7%, the company demonstrates consistent profitability. Its expansion across multiple Southeastern states provides diversification and growth opportunities. The company's focus on small to medium-sized businesses and retail banking offers a relatively stable customer base. However, the absence of a dividend may deter some investors. Growth catalysts include further expansion within its existing geographic footprint and increased adoption of digital banking services. Potential risks include economic downturns impacting loan performance and increased competition from larger national banks and fintech companies.

Based on FMP financials and quantitative analysis

FBMS Key Highlights

Market capitalization of $1.06B indicates a solid mid-cap regional bank.

• P/E ratio of 13.80 suggests a reasonable valuation compared to earnings.
• Profit margin of 18.7% demonstrates strong profitability in the banking sector.
• Gross margin of 66.2% reflects efficient management of interest income and expenses.
• 90 locations across five Southeastern states provide a diversified geographic footprint.

Who Are FBMS's Competitors?

FBMS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FBMS's Key Strengths?

Strong regional presence in the Southeastern U.S.

• Diversified loan portfolio.
• Comprehensive suite of banking services.
• Experienced management team.

What Are FBMS's Weaknesses?

Limited geographic diversification.

• Dependence on interest rate environment.
• Smaller size compared to national banks.
• Lack of dividend may deter some investors.

What Could Drive FBMS Stock Higher?

Potential acquisitions of smaller regional banks to expand market share.

• Continued expansion of digital banking services to attract new customers.
• Growth in the Southeastern U.S. economy driving increased loan demand.
• Launch of new wealth management products and services.
• Strategic partnerships with real estate agents and builders to boost mortgage originations.

What Are the Key Risks for FBMS?

Financial-distress signal — its Altman Z-Score of -0.63 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.
• Insider selling — insiders were net sellers of roughly $27.0M recently.
• Economic downturns leading to increased loan defaults.
• Rising interest rates impacting loan demand and profitability.
• Increased competition from larger national banks and fintech companies.
• Regulatory changes increasing compliance costs.
• Cybersecurity threats and data breaches.

What Are the Growth Opportunities for FBMS?

• Expansion within Existing Markets: The First Bancshares can deepen its market penetration within its current footprint of Mississippi, Alabama, Florida, Georgia, and Louisiana. By opening new branches and increasing marketing efforts, the company can attract new customers and grow its deposit base. The Southeastern U.S. is experiencing population growth, creating opportunities for increased banking activity. Timeline: Ongoing.
• Digital Banking Adoption: Enhancing its digital banking platform can attract younger, tech-savvy customers and improve operational efficiency. By offering mobile banking, online account opening, and other digital services, The First Bancshares can reduce costs and expand its reach beyond its physical branch network. The market for digital banking is projected to grow significantly. Timeline: Ongoing.
• Mortgage Banking Division Growth: The First Bancshares can expand its mortgage banking division by offering competitive rates and a wider range of mortgage products. The housing market in the Southeastern U.S. is generally strong, creating opportunities for increased mortgage origination. Strategic partnerships with real estate agents and builders can further drive growth. Timeline: Upcoming: 2027.
• Wealth Management Services: Expanding its wealth management services can generate additional fee income and diversify its revenue streams. By offering financial planning, investment management, and trust services, The First Bancshares can cater to the growing wealth management needs of its customer base. The market for wealth management services is projected to grow. Timeline: Upcoming: 2027.
• Strategic Acquisitions: The First Bancshares can pursue strategic acquisitions of smaller banks or financial institutions in its target markets. Acquisitions can provide access to new customers, markets, and products, accelerating growth and increasing market share. Careful due diligence and integration are crucial for successful acquisitions. Timeline: Ongoing.

What Are FBMS's Competitive Advantages?

• Established regional presence in the Southeastern U.S.
• Strong relationships with local businesses and communities.
• Diversified loan portfolio.
• Comprehensive suite of banking services.

What Does FBMS Do?

The First Bancshares, Inc., incorporated in 1995 and headquartered in Hattiesburg, Mississippi, operates as the bank holding company for The First, A National Banking Association. The bank provides a comprehensive suite of commercial and retail banking services, catering primarily to small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company's operations are divided into three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. Its deposit services include checking, NOW, and savings accounts, as well as time deposits like money market accounts and certificates of deposit. Loan offerings encompass commercial loans for working capital and expansion, consumer loans for various personal needs, and real estate construction and acquisition loans. Additionally, The First Bancshares originates residential mortgages and provides financial and wealth management services. The company leverages technology through internet banking, ATMs, and mobile deposit, while also offering traditional services like safe deposit boxes and credit cards. As of December 31, 2021, The First Bancshares operated 90 locations across Mississippi, Alabama, Florida, Georgia, and Louisiana, solidifying its regional presence in the Southeastern United States.

What Products and Services Does FBMS Offer?

• Provides commercial and retail banking services.
• Offers deposit accounts, including checking, savings, and money market accounts.
• Provides commercial loans for working capital and business expansion.
• Offers consumer loans for automobiles, home improvements, and education.
• Originates residential mortgages for home purchases and refinancing.
• Provides financial and wealth management services.
• Offers internet banking, ATMs, and mobile deposit services.

How Does FBMS Make Money?

• Generates revenue from interest income on loans.
• Earns fees from deposit accounts and other banking services.
• Profits from mortgage origination and servicing.
• Receives fees from wealth management services.

What Industry Does FBMS Operate In?

The First Bancshares operates within the regional banking sector, which is characterized by increasing consolidation and competition from larger national banks and fintech companies. The industry is influenced by interest rate fluctuations, regulatory changes, and economic conditions. Regional banks like The First Bancshares differentiate themselves through local market knowledge, personalized customer service, and community involvement. The market is seeing increased adoption of digital banking solutions and a focus on efficiency and cost management to maintain profitability.

Who Are FBMS's Key Customers?

• Small to medium-sized businesses.
• Professional concerns.
• Individuals.
• Associations and organizations.
• Governmental authorities.

Company Profile

The First Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Hattiesburg, US. The company is led by CEO Dawn Ard. FBMS has traded publicly since 2003.

Return on equity for The First Bancshares, Inc. stands at 7.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. FBMS trades at a trailing price-to-earnings ratio of 13.80, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 7.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.12 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.2%, the inverse of the P/E and a quick read on earnings relative to price.

FBMS Valuation & Market Position

With a $1.06B market cap, The First Bancshares, Inc. sits in the small-cap segment of the market.

Quarterly Financial Performance: The First Bancshares, Inc.

Revenue for The First Bancshares, Inc. came in at $97.9M during Dec 2024, a 7.8% contraction versus the preceding quarter. The company recorded net income of $18.3M, with diluted EPS of $0.58. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, FBMS averaged $0.61 in diluted EPS.

The First Bancshares, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.63 places it in the distress zone, a signal of elevated financial risk.

The First Bancshares, Inc. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 1.1% below estimates on average.

Wall Street analysts project The First Bancshares, Inc. revenue of about $258.3M for fiscal 2026, with EPS near $2.85.

The most recent 12 insider filings for The First Bancshares, Inc. break down as 12 sales and 0 purchases. On net that is roughly 792K shares disposed (about $27.0M), a signal worth weighing alongside the fundamentals.

FBMS Financials

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Common Questions About FBMS (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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