The First Bancshares (FBMS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $18.6 million, down 23.8% year-over-year and 5.7% sequentially, with operating net income of $20.5 million and diluted EPS of $0.59 (operating EPS $0.65).

• Total assets reached $8.0 billion as of September 30, 2024, with 110 branches across five southeastern states.

• Announced a definitive merger agreement with Renasant Corporation, expected to close in the first half of 2025, with a 1:1 share exchange ratio.

• Net interest income for Q3 2024 was $59.0 million, up $1.2 million sequentially but down $1.7 million year-over-year, with net interest margin at 3.33%.

• Management highlights continued focus on organic and acquisitive growth, prudent credit culture, and maintaining strong capital and liquidity.

Financial highlights

• Net interest margin (NIM, FTE) expanded 6 bps sequentially to 3.38%; core NIM (FTE) increased 7 bps to 3.26%.

• Efficiency ratio improved to 64.2%, with operating efficiency ratio at 60.6%.

• Allowance for credit losses (ACL) stable at 1.05% of loans; nonperforming assets at 0.31% of total assets.

• Loans to deposits ratio at 81.1%; cost of deposits at 1.83%.

• Return on average assets (ROAA) at 0.94% (reported) and 1.03% (operating); return on average tangible common equity (ROATCE) at 11.6% (reported) and 12.8% (operating).

Outlook and guidance

• Merger with Renasant Corporation is expected to create a high-performing southeastern franchise, with closing anticipated in the first half of 2025.

• Management believes the company has adequate liquidity and capital to meet all regulatory requirements and future needs.

• Forward-looking statements note risks from economic conditions, interest rates, regulatory changes, and integration of recent and planned acquisitions.