The First Bancshares, Inc. reported its financial results for the quarter ending September 30, 2024, revealing a decline in net income and net interest income compared to the same period in the previous year. Net income for Q3 2024 was $18.6 million, down 23.8% from $24.4 million in Q3 2023. For the nine months ended September 30, 2024, net income totaled $58.9 million, a decrease from $64.4 million in the prior year. Basic earnings per share for Q3 2024 were $0.59, compared to $0.78 in Q3 2023.

Total interest income for Q3 2024 increased to $93.6 million from $85.7 million in Q3 2023, driven by higher interest and fees on loans, which rose to $82.1 million from $74.6 million. However, total interest expense also surged to $34.5 million from $25.0 million, leading to a net interest income of $59.0 million, down from $60.7 million in the prior year. The net interest margin decreased to 3.33% from 3.47%.

The company’s total assets as of September 30, 2024, were $7.966 billion, a slight decrease from $7.993 billion at the end of 2023. Loans held for investment increased by 2.9% to $5.319 billion, while total deposits rose to $6.561 billion, up from $6.463 billion at year-end 2023. The allowance for credit losses stood at $55.7 million, representing 1.05% of loans held for investment.

In terms of strategic developments, The First Bancshares announced a merger agreement with Renasant Corporation, expected to close in the first half of 2025. The company also transitioned its common stock trading from Nasdaq to NYSE under the symbol "FBMS" on May 30, 2024. Additionally, the company completed the acquisition of Heritage Southeast Bancorporation, Inc. on January 1, 2023, for a total consideration of $221.5 million, which included 6,920,422 shares of common stock.

The company’s non-interest income for the nine months ended September 30, 2024, was $44.4 million, an increase of 15.5% compared to the same period in 2023. Key components included service charges on deposit accounts and interchange fee income, both of which saw significant increases. Non-interest expenses for the nine months were $140.3 million, up from $133.9 million in the prior year.

The First Bancshares continues to maintain a conservative underwriting philosophy, with no significant credit concentrations identified within its loan portfolio. The company’s liquidity ratio was reported at 14.3%, exceeding its internal policy guideline of 10%.