HATTIESBURG, Miss. - The First Bancshares , Inc. (NYSE: NYSE:FBMS), the holding company for The First Bank (NASDAQ:FRBA), has received approval from its shareholders for the merger with Renasant (NYSE:RNST) Corporation, as per the agreement announced on July 29, 2024. The transaction is still subject to customary closing conditions, including necessary regulatory approvals.
The First Bancshares, Inc., established in 1996 and based in Hattiesburg, Mississippi, operates through The First Bank in multiple Southern states, including Mississippi, Louisiana, Alabama, Florida, and Georgia. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol FBMS.
The merger, which is expected to enhance the financial services offerings in the regions served by both institutions, is proceeding towards completion following the affirmative vote by The First Bancshares shareholders. The details of the merger's expected benefits or the anticipated completion date were not disclosed in the press release.
In the press release, forward-looking statements were identified, which are based on management's current expectations and projections. These statements are subject to risks and uncertainties that could cause actual results to differ from expectations. Factors that could affect the outcome include potential legal proceedings, failure to obtain regulatory approvals, and challenges associated with integrating the two companies.
Investors are reminded that forward-looking statements are not guarantees of future performance and are advised to consider the various risks and uncertainties that could impact the companies' operations and the successful completion of the merger.
The information in this article is based on a press release statement from The First Bancshares, Inc. and does not include any speculative or forward-looking commentary. The merger's progress will continue to be monitored, with further details to be reported as they become available and as regulatory and closing conditions are met.
In other recent news, Renasant Corp has announced its acquisition of The First Bancshares in a $1.2 billion all-stock deal, marking another significant consolidation event in the U.S. regional banking sector. The merger is set to form a six-state Southeastern regional bank with approximately $25 billion in combined total assets. As part of the agreement, First Bancshares' shareholders will receive one Renasant share for each share they hold, and the acquisition is expected to be completed in the first half of 2025.
In terms of financial performance, Renasant reported a solid second quarter for 2024, with net earnings of $19.7 million, or $0.62 per diluted share. This was despite a slight decrease in net income due to a $1.7 million provision for loan growth. The company saw an increase in loans by $111 million, marking an 8.6% annualized growth, and core margins expanded by 9 basis points. Credit quality remained robust, with low net charge-offs and non-performing asset migration.
Looking ahead, the company anticipates mid single-digit loan growth and stable deposit costs and margins for the second half of the year. Stephens and Keefe, Bruyette & Woods are providing financial advice to Renasant and First Bancshares, respectively, in these recent developments.
InvestingPro Insights
As The First Bancshares, Inc. (NYSE: FBMS) moves forward with its merger with Renasant Corporation, investors may find additional context from recent financial data and analyst insights valuable.
According to InvestingPro data, FBMS currently has a market capitalization of $1.01 billion and trades at a price-to-earnings ratio of 13.41, suggesting a relatively modest valuation compared to some peers in the banking sector. This valuation could be attractive to Renasant Corporation as they pursue the merger.
An InvestingPro Tip highlights that FBMS has raised its dividend for 6 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend growth, coupled with a current dividend yield of 3.13%, may be appealing to income-focused investors considering the stock ahead of the merger.
Despite the positive dividend history, another InvestingPro Tip indicates that analysts anticipate a sales decline in the current year. This projection could be a factor in the company's decision to merge, potentially seeking growth opportunities through consolidation.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for FBMS, providing a more comprehensive view of the company's financial health and market position as it approaches this significant corporate action.
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