First Bancshares Running Its Playbook And Significant Earnings Growth Should Follow

Although very active since my last update on the company in September of 2017, the shares of First Bancshares (FBMS) have been a relatively average performer over that span of time, with a return close to that of regional banks in general and in the middle of a comp group including ServisFirst (SFBS), Renasant (RNST), MidSouth (MSL), and National Commerce (NCOM). While the company has executed on two M&A deals entirely consistent with the growth plan I expected here, operating performance has been a little lumpy.

I continue to believe that First Bancshares offers an above-average level of earnings growth potential, return potential, and risk. Integrating its acquisitions should drive meaningful operating leverage in 2019 and beyond, and loan growth should likewise drive good earnings momentum. With plenty of acquisition opportunities left in its core operating footprint (and/or target footprint), I expect additional M&A in the years to come.

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First Bancshares Running Its Playbook And Significant Earnings Growth Should Follow