Core Points - Renasant Corporation and The First Bancshares, Inc. have received all necessary regulatory approvals to complete their proposed merger, which includes merging The First Bank into Renasant Bank [1][2] - The merger is expected to close on April 1, 2025, and will create a financial services institution with approximately $26 billion in assets and over 250 locations in the Southeast [2][3] - The merger aims to create a transformative partnership that enhances service offerings and unlocks new possibilities for both organizations [2][3] Company Overview - Renasant Corporation is the parent company of Renasant Bank, which has approximately $18 billion in assets and operates 186 banking and financial service offices in the Southeast [3] - The First Bancshares, Inc. is headquartered in Hattiesburg, Mississippi, and operates in multiple states including Mississippi, Louisiana, Alabama, Florida, and Georgia [4]

Merger and Acquisition - The Renasant Merger is subject to customary conditions that must be fulfilled, and failure to complete it could negatively affect the company's stock price and future financial results[110]. - Shareholders will receive 1.00 share of Renasant common stock for each share of the company common stock, but the value of this consideration may fluctuate based on market conditions[112]. - Regulatory approvals for the Renasant Merger may be delayed or not obtained, which could impose additional costs or limitations on the combined company[114]. - The company may incur significant transaction and merger-related costs associated with recent acquisitions, affecting its financial results[155]. - The company may not realize anticipated cost savings and financial benefits from recent acquisitions within the expected timeframe[154]. - The Company completed the acquisition of Heritage Southeast Bank on January 1, 2023, for a total consideration of $221.5 million, which included 6,920,422 shares of common stock and $16 thousand in cash[469]. - Approximately $91.9 million of goodwill was recorded from the HSBI acquisition, with $3.2 million allocated for estimated losses on acquired PCD loans and $43.7 million as core deposit intangible[470]. - The finalized fair value of total assets acquired from HSBI was $1,565.3 million, with total liabilities of $1,435.7 million, resulting in net assets acquired of $129.6 million[473]. - The Company completed the acquisition of Beach Bancorp, Inc. on August 1, 2022, for approximately $101.5 million, including 3,498,936 shares of common stock and $1 thousand in cash[474]. - Approximately $23.7 million of goodwill and $9.8 million of core deposit intangible were recorded from the BBI acquisition, with the core deposit intangible amortized over 10 years[475]. - The Company incurred expenses of $388 thousand and $4.9 million related to the HSBI acquisition for the three months and twelve months ended December 31, 2023, respectively[471]. - Expenses associated with the BBI acquisition were $4 thousand and $1.4 million for the three months and twelve months ended December 31, 2023, respectively[476]. Financial Performance - Total assets increased to $8,004,778 thousand in 2024 from $7,999,345 thousand in 2023, reflecting a slight growth in the company's financial position[373]. - The company's total deposits rose to $6,604,856 thousand in 2024, up from $6,462,872 thousand in 2023, indicating a positive trend in customer deposits[373]. - The retained earnings increased to $346,182 thousand in 2024 from $300,150 thousand in 2023, showcasing improved profitability[373]. - The total stockholders' equity reached $1,005,431 thousand in 2024, compared to $949,034 thousand in 2023, reflecting a solid capital position[373]. - The company reported a decrease in interest payable from $22,702 thousand in 2023 to $13,856 thousand in 2024, indicating better management of interest expenses[373]. - Total interest income for 2024 reached $369,835 thousand, an increase of 8.8% from $340,933 thousand in 2023[375]. - Net interest income after provision for credit losses was $230,479 thousand in 2024, slightly down from $234,825 thousand in 2023[375]. - Non-interest income increased to $49,762 thousand in 2024, up from $46,705 thousand in 2023, representing a growth of 4.4%[377]. - Total non-interest expense decreased to $182,276 thousand in 2024 from $184,726 thousand in 2023, a reduction of 0.8%[377]. - Net income available to common stockholders for 2024 was $77,194 thousand, compared to $75,457 thousand in 2023, reflecting a growth of 2.3%[377]. - Earnings per share (EPS) for 2024 was $2.45, a slight increase from $2.41 in 2023[377]. - The company reported a comprehensive income of $85,212 thousand in 2024, down from $106,838 thousand in 2023[380]. - The provision for credit losses for loans held for investment (LHFI) was $3,758 thousand in 2024, significantly lower than $13,750 thousand in 2023[375]. - Interest on deposits increased to $117,850 thousand in 2024, up from $71,359 thousand in 2023, indicating a rise of 65%[375]. - Net income for 2024 increased to $77,194 thousand, up from $75,457 thousand in 2023, representing a growth of 2.3%[385]. Risk Factors - Economic downturns in the markets served, such as Mississippi, Louisiana, Alabama, Florida, or Georgia, could adversely affect the company's financial results and liquidity[115]. - The company is exposed to credit risk, particularly in its real estate and construction loan portfolio, which could increase if real estate values decline[117]. - Changes in interest rates can significantly impact the company's profitability, as net interest income is largely dependent on these rates[124]. - Elevated interest rates may reduce the demand for loans and adversely affect borrowers' ability to repay, leading to an increase in non-performing assets[128]. - Inflation could increase operating costs at a faster pace than revenue growth, impacting overall profitability[129]. - The evaluation of investment securities for impairment involves subjective determinations that could materially affect the company's financial condition[130]. - The FDIC increased deposit insurance premiums by two basis points starting in Q1 2023, which could negatively impact profitability[136]. - The company faces intense competition from larger financial institutions and non-bank competitors, which may affect its market share and profitability[137]. - The company is subject to extensive regulation by various federal and state entities, which may impact its business operations[134]. - The company is exposed to fraud risks from customers and employees, which could lead to unexpected loan losses[148]. - The company may struggle to attract and retain skilled personnel, which could adversely impact its operations[149]. - The company is susceptible to natural disasters and public health emergencies, which could disrupt operations and negatively affect local economies[146]. - Negative developments in the banking industry could erode customer confidence, impacting liquidity and capital[152]. - The company may incur additional unanticipated significant costs related to acquisitions, which could adversely impact financial results[156]. Interest Rate Risk - The company's estimated net interest income at risk shows a potential decline of $1.7 million, or 0.7%, if interest rates increase by 200 basis points[353]. - The company's one-year cumulative GAP ratio was approximately 144.0% at December 31, 2024, indicating it is considered "asset-sensitive"[354]. - The company utilizes modeling software to perform earnings simulations and assess market value under varying interest rate scenarios every month[351]. - If interest rates were to decrease by 200 basis points, net interest income would likely increase by approximately $2.5 million, or 1.0%[352]. - The economic value of equity (EVE) will vary under different interest rate scenarios, indicating the company's longer-term exposure to interest rate risk[357]. - The company has established policies to monitor and limit earnings and balance sheet exposure to changes in interest rates[350]. - The market value of equity as of December 31, 2024, under different interest rate scenarios showed a decrease of $98,730 thousand (5.8%) in a -200 bp scenario compared to the base case[358]. - The market value of equity in a +100 bp scenario was $1,728,106 thousand, showing a positive change of $31,717 thousand (1.9%) from the base case[358]. Credit Losses and Allowance - The estimated allowance for credit losses (ACL) on loans held for investment was $56.2 million as of December 31, 2024, representing an expected loss estimate within a loan portfolio totaling $5.41 billion[366]. - The company’s unfunded loan commitments totaled $863 million, with an ACL of $2.1 million, indicating a cautious approach to potential credit losses[366]. - The Company utilizes a 24-month forecasted probability of default (PD) based on a regression model correlated with unemployment rates, which significantly impacts estimated loan losses[422]. - The allowance for credit losses (ACL) is estimated using historical credit loss experience and adjusted for current risk characteristics, with expected losses calculated over the contractual term of the loans[418]. - Loans are placed on nonaccrual status when principal or interest payments are 90 days past due, with accrued interest reversed against interest income[412]. - The Company adopted ASU No. 2022-02 effective January 1, 2023, eliminating TDR recognition and enhancing disclosures for loan modifications[426]. - The loss given default (LGD) calculation is based on actual losses experienced over the lookback period, aggregated by loan segment[423]. Securities and Investments - As of December 31, 2024, the total available-for-sale securities amounted to $1,003,303 thousand, with gross unrealized losses of $116,155 thousand[480]. - The held-to-maturity securities totaled $537,275 thousand, with gross unrealized losses of $49,032 thousand[480]. - The company reported no credit losses on available-for-sale securities as of December 31, 2024[483]. - The potential credit loss exposure for held-to-maturity securities was $201 thousand, deemed immaterial, resulting in no reserve recorded[486]. - Accrued interest receivable for available-for-sale securities was $5.0 million at December 31, 2024[484]. - The company had no past due securities held-to-maturity as of December 31, 2024[488]. - Interest income on investments includes amortization of purchase premiums or discounts, with gains and losses recorded on the trade date[411]. - The Company carries equity securities at fair value, with changes reported in net income, while those without readily determinable fair values are carried at cost[408]. Regulatory and Compliance - The evolving regulatory environment regarding AI technology may increase compliance costs and risks for the company[144]. - The Company had no uncertain tax positions that qualify for recognition or disclosure in the financial statements as of December 31, 2024[442]. - The Company is expected to adopt ASU 2023-09 for annual periods beginning after December 15, 2024, which will require additional disclosures about income taxes paid[465]. - The Company adopted ASU 2023-01 and ASU 2023-02 effective January 1, 2024, which did not have a material impact on the consolidated financial statements[461][462]. Business Operations - The Company operates three principal business segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company, with performance evaluated using income before income taxes[459]. - The Company invested $4.4 million in a limited partnership for low-income housing, with a carrying value of $739 thousand at the end of 2024, down from $1.2 million in 2023[456]. - The Bank received $6.2 million from the CDFI Equitable Recovery Program to expand lending and investment activities in low- or moderate-income communities[457]. - The Bank also received $280 thousand from the BEA Program to support community development financing in economically distressed areas[458]. - Advertising expenses were $445 thousand in 2024, a decrease from $833 thousand in 2023[443]. - The company plans to continue its market expansion and product development strategies to enhance future growth[376]. - The company plans to transfer its common stock listing from Nasdaq to NYSE, effective May 30, 2024[392].

Financial Performance - Net income available to common shareholders for Q4 2024 was $18.3 million, a decrease of 1.5% from $18.6 million in Q3 2024[4] - Diluted earnings per share for Q4 2024 were $0.58, compared to $0.59 in Q3 2024[8] - Net income available to common shareholders rose by $1.7 million, or 2.3%, from $75.5 million in 2023 to $77.2 million in 2024[33] - Excluding one-time items, net earnings available to common shareholders decreased by $15.4 million, or 15.9%, to $81.4 million in 2024 compared to $96.7 million in 2023[34] - Year-to-date net income available to common shareholders for 2024 was $77,194, compared to $75,457 in 2023, reflecting a modest increase of 2.3%[48] Loans and Deposits - Total loans increased by $88.6 million, or 6.7% on an annualized basis, compared to Q3 2024, reaching $5.407 billion[10] - Total loans increased to $5,407,231,000 from $5,318,590,000 in the previous quarter, marking a growth of 1.67%[46] - Total deposits rose to $6.605 billion, an increase of $44.1 million, or 0.7%, from Q3 2024[11] - Total deposits rose to $6,604,856,000 from $6,560,712,000, an increase of 0.67%[46] Interest Income and Margin - Annualized net interest margin increased by 4 basis points to 3.37% in Q4 2024 from 3.33% in Q3 2024[4] - Total interest income for the quarter ended December 31, 2024, was $93,584,000, a slight increase from $93,561,000 in the previous quarter[45] - Net interest income for the same quarter was $60,120,000, compared to $59,014,000 in the prior quarter, reflecting a growth of 1.87%[45] - Total interest income for Q4 2024 was $93,584, an increase from $88,720 in Q4 2023, representing a year-over-year growth of 5.0%[47] - Year-to-date total interest income for 2024 reached $369,835, up from $340,933 in 2023, indicating a growth of 8.5%[48] Non-Interest Income and Expense - Non-interest income decreased by $0.7 million to $11.5 million in Q4 2024, primarily due to lower service charges and fees[22] - Non-interest income increased by $3.1 million to $49.8 million in 2024, attributed to prior year losses on investment securities[36] - Non-interest expense increased by $2.0 million to $48.4 million in Q4 2024, driven by higher salaries and employee benefits[23] - Total non-interest expense for Q4 2024 was $48,368, an increase from $44,433 in Q4 2023, representing a rise of 8.0%[47] Credit Quality - Nonperforming assets totaled $29.9 million, representing 0.37% of total assets, an increase from 0.31% in Q3 2024[14] - The Company recorded a provision for credit losses of $1.1 million in Q4 2024, compared to $1.0 million in Q3 2024[7] - Provision for credit losses in Q4 2024 was $1,140, down from $1,250 in Q4 2023, indicating a reduction of 8.8%[47] - Nonperforming assets rose to $29,853 thousand, compared to $25,053 thousand in the prior quarter, indicating an increase of 11.2%[49] Corporate Actions and Future Outlook - The Company announced a merger agreement with Renasant Corporation, expected to close in the first half of 2025[4] - Forward-looking statements indicate potential risks including competitive pressures, economic conditions, and interest rate risks that may affect future performance[41] Efficiency and Ratios - The efficiency ratio for the quarter was 66.63%, compared to 64.22% in the prior quarter, indicating a decline in operational efficiency[45] - Common equity tier 1 (CET1) ratio increased to 14.5%, up from 12.5% in the previous quarter[54] - Annualized return on average assets (ROA) for the quarter was 0.92%, slightly down from 0.94% in the previous quarter[45] - Annualized return on average common equity, operating was 8.00%, down from 8.41% in the previous quarter[54]

Financial Performance - Net income available to common shareholders for Q3 2024 was $18.6 million, a decrease of 23.8% from $24.4 million in Q3 2023[159]. - For the nine months ended September 30, 2024, net income available to common shareholders decreased by $5.5 million, or 8.6%, to $58.9 million[168]. - Operating net earnings for the nine months ended September 30, 2024, were $61.101 million, down from $78.007 million in the same period of 2023, indicating a decline of about 21.7%[264]. - The Company reported net income available to common shareholders of $18.571 million for the three months ended September 30, 2024, compared to $24.360 million for the same period in 2023, representing a decrease of approximately 23.8%[264]. Income and Expenses - Net interest income for Q3 2024 was $59.0 million, down 2.8% from $60.7 million in Q3 2023[161]. - Non-interest income decreased by $7.1 million in Q3 2024, primarily due to a $6.2 million decrease in U.S. Treasury awards[164]. - Non-interest expense for Q3 2024 was $46.4 million, a decrease of 2.8% compared to Q3 2023[165]. - Non-interest income for the three months ended September 30, 2024, was $12,242 thousand, a decrease from $19,324 thousand in the same period in 2023[181]. - Total non-interest expense for the three months ended September 30, 2024, was $46,394 thousand, slightly down from $47,724 thousand in the same period in 2023[182]. - Non-interest expenses totaled $133.9 million in Q3 2024, a decrease of $6.4 million or 4.6% from $140.3 million in Q3 2023[185]. Assets and Liabilities - Total assets as of September 30, 2024, were $7.957 billion, a decrease of 0.5% from $7.993 billion at the end of 2023[172]. - Total earning assets averaged $7,094,901 thousand with a net interest margin of 5.33% for the three months ended September 30, 2024, compared to $7,001,048 thousand and 4.95% for the same period in 2023[177]. - The investment portfolio had a net unrealized loss of $91.6 million at September 30, 2024, down from a loss of $184.9 million a year earlier[166]. - The investment portfolio decreased by $19.9 million, or 1.1%, to $1.715 billion at September 30, 2024, compared to $1.734 billion at December 31, 2023[191]. - Total securities, excluding other securities, were $1.662 billion, or 20.9% of total assets, at September 30, 2024, down from $1.694 billion, or 21.2% of total assets, at December 31, 2023[190]. - Total owner-occupied commercial real estate (CRE) reached $1,352.8 million, with the largest segment being office space at $278.6 million, accounting for 20.6% of total owner-occupied CRE[204]. - Total non-owner occupied CRE reached $1,882.7 million, with retail properties contributing $411.8 million, representing 21.8% of total non-owner occupied CRE[204]. Loans and Credit Quality - Loans increased by $148.6 million to $5.322 billion, or 2.9%, during the first nine months of 2024[172]. - Loans Held for Investment (LHFI) increased by $146.9 million, or 2.9%, to $5.263 billion as of September 30, 2024, from $5.116 billion at December 31, 2023[194]. - Non-performing assets (NPAs) totaled $23.6 million as of September 30, 2024, an increase of $4.6 million from $19.0 million at December 31, 2023[209]. - Nonaccrual loans amounted to $16.3 million, up $5.6 million from December 31, 2023, with total nonaccrual loans representing 0.3% of total loans[205][209]. - The allowance for credit losses was $55.7 million as of September 30, 2024, compared to $54.0 million at December 31, 2023[196]. - The allowance for credit losses (ACL) was $55.7 million, or 1.05% of loans held for investment (LHFI), reflecting a $1.7 million increase from December 31, 2023[212]. - The ratio of annualized net charge-offs to total loans was 0.033% for the quarter ended September 30, 2024, compared to 0.061% for the quarter ended December 31, 2023[209]. Deposits and Equity - Deposits totaled $6.567 billion as of September 30, 2024, an increase of 1.4% from $6.476 billion at the end of 2023[172]. - Total shareholders' equity increased by $62.6 million, or 6.6%, to $1.012 billion as of September 30, 2024[242]. - The estimated uninsured deposits totaled $2.289 billion at September 30, 2024, representing 34.9% of total deposits[235]. - The Company had outstanding Bank Term Funding Program (BTFP) debt of $110.0 million at September 30, 2024, with an interest rate of 4.83%[239]. - Common Equity Tier 1 Capital Ratio was 14.3% as of September 30, 2024, compared to 13.8% at December 31, 2023[247]. Interest Rate Risk and Projections - The average yield on all earning assets increased by 37 basis points to 5.27% in Q3 2024 compared to 4.90% in Q3 2023[167]. - The average yield on loans was 6.21% for the three months ended September 30, 2024, compared to 5.92% for the same period in 2023[177]. - The annualized net interest margin for the three months ended September 30, 2024, was 3.33%, down from 3.47% in the same period of 2023[265]. - The Company utilizes modeling software to perform earnings simulations and assess market risk exposure, particularly focusing on interest rate risk management[270]. - The company's one-year cumulative GAP ratio is approximately 145.0%, indicating that there are more assets repricing than liabilities within the first year, making the company asset sensitive[274]. - The projected net interest income for a 100 basis point increase in rates is $248,485 thousand, reflecting a dollar change of $4,348 thousand[272]. - The policy limits for projected declines in net interest income are set at 20% for a 400 basis point shock and 10% for a 200 basis point shock[272]. Other Financial Metrics - The Company recorded a provision for credit losses of $1.0 million for both the three months ended September 30, 2024 and 2023, while the nine-month provision decreased to $2.7 million in 2024 from $12.5 million in 2023[216]. - Total charge-offs for the three months ended September 30, 2024 were $1,386 million, up from $629 million in the same period of 2023, indicating a 120.4% increase[216]. - The liquidity ratio as of September 30, 2024 was 14.3%, exceeding the internal policy guideline of 10% minimum[229]. - Cash and cash equivalents were $214.1 million as of September 30, 2024, with loans and investment securities maturing within one year totaling approximately $1.775 billion[230]. - The Company authorized a new share repurchase program for up to $50 million during the 2024 calendar year[244].

分组1 - The First Bancshares reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, but down from $0.76 per share a year ago, indicating an earnings surprise of 1.56% [1] - The company posted revenues of $71.26 million for the quarter, missing the Zacks Consensus Estimate by 1.31% and down from $80.03 million year-over-year [1] - Over the last four quarters, The First Bancshares has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] 分组2 - The stock has increased approximately 10.3% since the beginning of the year, while the S&P 500 has gained 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $72.7 million, and for the current fiscal year, it is $2.55 on revenues of $285.5 million [4] - The Zacks Industry Rank for Banks - Southeast is in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Financial Performance - Net income available to common shareholders for Q3 2024 was $18.6 million, a decrease of 5.7% from $19.7 million in Q2 2024[2] - Diluted earnings per share for Q3 2024 were $0.59, compared to $0.62 in Q2 2024 and $0.77 in Q3 2023[9] - Year-to-date net income available to common shareholders decreased by $5.5 million, or 8.6%, to $58.9 million for the nine months ended September 30, 2024[21] - Basic earnings per share for the quarter were $0.59, down from $0.78 in the same quarter last year, a decrease of 24.4%[30] - Net income available to common shareholders for Q3 2024 was $18,571,000, down from $24,360,000 in Q3 2023, a decline of 23.8%[32] - Year-to-date net income available to common shareholders was $58,896,000, down from $64,410,000 in 2023, a decline of 8.3%[33] Loan and Deposit Activity - Total loans increased by $67.7 million during Q3 2024, representing an annualized increase of 5.2% compared to Q2 2024[2] - Total deposits decreased by $65.4 million, or 1.0%, to $6.561 billion in Q3 2024 compared to Q2 2024[11] - Total loans as of September 30, 2024, amounted to $5,321,577 thousand, an increase from $5,256,785 thousand in June 30, 2024[34] - Total deposits as of September 30, 2024, were $6,560,712 thousand, a decrease from $6,626,116 thousand in the previous quarter[34] Non-Interest Income and Expenses - Non-interest income decreased by $1.1 million to $12.2 million in Q3 2024, primarily due to a decrease in interchange fee income[15] - Non-interest expense for the nine months ended September 30, 2024, was $133.9 million, a decrease of $6.4 million compared to the same period in 2023, primarily due to decreased acquisition charges of $5.5 million and other non-interest expenses of $8.1 million[22] - Total non-interest expense increased to $46,394,000 in Q3 2024, up from $44,433,000 in Q3 2023, representing a 4.4% rise[32] Asset Quality - Nonperforming assets totaled $25.1 million, or 0.31% of total assets, for Q3 2024, up from $21.1 million, or 0.26%, in Q2 2024[4] - The allowance for credit losses was $55,700,000, reflecting a slight increase from $53,565,000 year-over-year[31] - Total nonperforming loans reached $17,739 thousand, up from $14,727 thousand in the previous quarter[34] - Loans past due 90 days and over increased to $1,455 thousand from $1,174 thousand in the previous quarter[34] Mergers and Acquisitions - The Company announced a merger agreement with Renasant Corporation, expected to close in the first half of 2025[5] - The effect of acquisition and charter conversion charges on diluted earnings per share was $0.09 for the year to date 2024[37] - Acquisition and charter conversion charges amounted to $2,592 million for the quarter ended September 30, 2024, compared to $352 million in June 30, 2024[43] Market and Economic Conditions - Forward-looking statements indicate potential risks including competitive pressures, economic conditions, interest rate risks, and impacts from recent acquisitions and mergers[26][27] - The Company warns that actual results may differ materially from forward-looking statements due to various risks and uncertainties[29] - The Company has experienced significant turbulence in the banking industry, which may impact customer confidence and liquidity[28] Financial Metrics - Annualized net interest margin increased by 7 basis points to 3.33% in Q3 2024 from 3.26% in Q2 2024[3] - The efficiency ratio for the quarter was 64.22%, compared to 58.90% in the same quarter last year, indicating a decrease in operational efficiency[30] - The annualized return on average assets (ROA) for the quarter was 0.94%, down from 1.24% in the same quarter last year[30] - The common equity tier 1 (CET1) ratio improved to 12.5% as of September 30, 2024, from 12.4% in June 30, 2024[44]

Core Viewpoint - The First Bancshares (FBMS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that upward revisions in earnings estimates can lead to higher stock prices [4][6]. - The recent upgrade reflects an improvement in The First Bancshares' underlying business, which is expected to be recognized by investors through increased stock prices [5]. Earnings Estimate Revisions - For the fiscal year ending December 2024, The First Bancshares is projected to earn $2.55 per share, representing a decrease of 16.7% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for The First Bancshares has increased by 4.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of The First Bancshares to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Financial Performance - Net income for the three months ended June 30, 2024, was $19,697 thousand, down from $23,779 thousand in the same period of 2023, reflecting a decrease of 17.4%[5] - Basic earnings per share for the three months ended June 30, 2024, were $0.62, down from $0.76 in the same period of 2023, a decline of 18.4%[5] - Net income for the six months ended June 30, 2024, was $40,325,000, compared to $40,050,000 for the same period in 2023, reflecting a slight increase[14] - Net income available to common shareholders for Q2 2024 was $19.7 million, a decrease of 17.2% from $23.8 million in Q2 2023[134] - For the first six months of 2024, net income available to common shareholders was $40.3 million, a slight increase of 0.7% from $40.1 million in the same period of 2023[139] Assets and Liabilities - Total assets as of June 30, 2024, were $7,965,800 thousand, a decrease from $7,999,345 thousand as of December 31, 2023, representing a decline of approximately 0.42%[4] - Total liabilities decreased to $6,993,915 thousand as of June 30, 2024, from $7,050,311 thousand at the end of 2023, a reduction of approximately 0.8%[4] - Total shareholders' equity increased to $971,885 thousand as of June 30, 2024, from $949,034 thousand at the end of 2023, an increase of 2.4%[4] - The company had approximately $7.966 billion in total assets, $5.196 billion in net loans held for investment, and $6.626 billion in deposits as of June 30, 2024[18] Deposits and Loans - Total deposits increased to $6,626,117 thousand as of June 30, 2024, compared to $6,462,872 thousand at the end of 2023, marking an increase of 2.5%[4] - As of June 30, 2024, total loans held for investment (LHFI) amounted to $5,250,893 thousand, an increase from $5,170,042 thousand as of December 31, 2023, representing a growth of approximately 1.55%[77] - The net LHFI as of June 30, 2024, was $5,195,760 thousand, up from $5,116,010 thousand at the end of 2023, indicating a net increase of about 1.55%[77] - Loans increased by $83.8 million, or 1.6%, to $5.257 billion during the first six months of 2024[141] Income and Expenses - Net interest income after provision for credit losses for the six months ended June 30, 2024, was $113,485 thousand, compared to $118,706 thousand for the same period in 2023, a decrease of 4.4%[5] - Non-interest income for the three months ended June 30, 2024, totaled $13,319 thousand, an increase from $12,423 thousand in the same period of 2023, representing an increase of 7.2%[5] - Non-interest expense decreased to $44,089 thousand for the three months ended June 30, 2024, down from $46,899 thousand in the same period of 2023, a reduction of 6.0%[149] - Non-interest expense decreased by $5.1 million to $87.5 million for the six months ended June 30, 2024, primarily due to a reduction in acquisition charges[140] Credit Losses and Provisions - The company reported a provision for credit losses of $1,650 thousand for the three months ended June 30, 2024, compared to $1,000 thousand in the same period of 2023[5] - The total ending allowance for credit losses as of June 30, 2024, was $55.133 million, compared to $52.614 million as of June 30, 2023, reflecting an increase of approximately 4.8% year-over-year[110] - The Company recorded a provision for credit losses of $1.7 million for the three months ended June 30, 2024, compared to $1.0 million for the same period in 2023[177] - The allowance for credit losses (ACL) was $55,100 thousand, or 1.05% of loans held for investment (LHFI), reflecting a 2.0% increase from December 31, 2023[175] Acquisitions - The company completed the acquisition of Heritage Southeast Bancorporation, Inc. for a total consideration of $221.5 million, which included 6,920,422 shares of common stock[28] - The Company completed the acquisition of Beach Bancorp, Inc. for a total consideration of $101.5 million, including 3,498,936 shares of common stock and $1 thousand in cash[32] - The Company acquired loans totaling $1.159 billion in January 2023 as part of the HSBI acquisition, which included an initial allowance for credit losses of $3.2 million related to purchased credit-deteriorated loans[113] Securities and Investments - The total available-for-sale securities as of June 30, 2024, is valued at $1,124,462 thousand, with significant unobservable inputs (Level 3) amounting to $25,340 thousand[52] - The fair value of available-for-sale securities was $1.124 billion at June 30, 2024, up from $1.042 billion at December 31, 2023[157] - The Company’s net unrealized loss on the investment portfolio was $129.0 million at June 30, 2024, compared to a loss of $121.9 million at December 31, 2023[157] - The total amortized cost of available-for-sale securities was $1,253,465 thousand, with a fair value of $1,124,462 thousand as of June 30, 2024[71] Risk Management - The Company classifies loans into risk categories, with "Pass" loans deemed to possess average to superior credit quality[95] - Loans classified as "Special Mention" indicate potential weaknesses that require close management attention[96] - "Substandard" loans are inadequately protected by the obligor's net worth and have well-defined weaknesses that jeopardize debt liquidation[97] - The Company believes the current allowance for credit losses is appropriate, with potential adjustments based on changes in risk factors[175] Dividends and Shareholder Returns - The company declared dividends on common stock of $0.25 per share for the six months ended June 30, 2024, totaling $15,576,000[12] - The Company authorized a new share repurchase program for up to $50 million in 2024, following a similar program in 2023[201]

Core Viewpoint - Ademi LLP is investigating The First for potential breaches of fiduciary duty and other legal violations related to its transaction with Renasant [1][3]. Transaction Details - The First shareholders will receive one share of Renasant common stock for each share of The First common stock, with an implied transaction value of approximately $37.09 per share, totaling around $1.2 billion [2]. - All options of The First will be cashed out at their in-the-money value at closing [2]. Board Conduct and Shareholder Rights - The transaction agreement restricts competing offers for The First by imposing significant penalties for accepting alternative bids, raising concerns about the board's fiduciary duties [3]. - The First insiders are expected to receive substantial benefits as part of change of control arrangements [3].

Core Viewpoint - Renasant Corporation and The First Bancshares, Inc. have announced a definitive agreement for a merger valued at approximately $1.2 billion, expected to close in the first half of 2025, creating a larger banking franchise in the Southeastern U.S. [2][3] Company Overview - The First operates 111 branches across five states with total assets of approximately $8.0 billion, total loans of $5.3 billion, and total deposits of $6.6 billion as of June 30, 2024 [1] - Renasant Corporation has approximately $17.5 billion in assets and operates 185 banking offices across multiple states [11] Merger Details - The merger will result in a combined entity with approximately $25 billion in total assets, $18 billion in total loans, and $21 billion in total deposits [1][2] - Shareholders of The First will receive 1.00 share of Renasant common stock for each share of The First common stock, with an implied transaction value of approximately $37.09 per share [5] Strategic Benefits - The merger aims to enhance customer service by expanding locations, services, and products, leveraging both companies' commitment to community engagement [3][4] - Renasant's CEO emphasized the merger's potential to create a more valuable company with the scale needed to compete effectively in the current market [3] Community Commitment - Renasant announced a Community Benefit Plan, committing to a $10.3 billion, five-year plan to foster economic growth and access to financial services in the combined footprint [7][8]