FBMS Reports Strong Revenue Growth in Q3 2023
Segments of revenue
In the third quarter of 2023, FBMS reported total revenue of $60.7 million, representing a significant increase of $11.6 million or 23.5% compared to the same quarter in 2022. This growth can be attributed to the net income associated with the acquisitions of Heritage Bank and Beach Bank.
FBMS demonstrated strong revenue growth in the latest quarter, driven by the successful integration of the acquired banks. The increase in net interest income can be attributed to higher interest rates and the contributions from the acquired entities. The company's management highlighted the positive impact of these acquisitions on their financial performance.
While FBMS experienced robust revenue growth, it is important to note that the increase in net interest income was partially due to purchase accounting adjustments. These adjustments accounted for $3.1 million of the third quarter's comparisons. Additionally, the net interest margin increased slightly from 3.43% in Q3 2022 to 3.47% in Q3 2023, primarily due to the purchase accounting adjustments.
FBMS reported a significant increase in net income available to common shareholders, totaling $24.4 million in Q3 2023 compared to $14.0 million in Q3 2022. This represents a substantial increase of $10.3 million or 73.5%. Excluding one-time items, net earnings available to common shareholders, operating (non-GAAP), increased by $4.4 million.
FBMS delivered a strong performance in the latest quarter, with notable revenue growth driven by the successful integration of acquired banks. The company's net interest income increased significantly, primarily due to higher interest rates and the contributions from the acquired entities. However, it is important to consider that a portion of the increase was attributed to purchase accounting adjustments. Overall, FBMS demonstrated its ability to generate strong revenue growth and capitalize on strategic acquisitions, positioning the company for continued success in the future.