Investment Thesis
First Bancshares is in severe financial distress with negative profitability (net margin of -38.5%, ROE of -9.3%), indicating fundamental operational problems beyond temporary headwinds. The company is burning cash operationally despite minimal positive free cash flow, and with only 2.5 months of liquid assets relative to total liabilities, faces imminent solvency risks. The stale data (March 2012) and zero insider activity suggest potential regulatory issues or abandonment of the company.
Strengths
- Positive operating cash flow of $551.1K provides temporary liquidity relief
- Positive free cash flow of $379.2K and 9.5% FCF margin indicates some operational cash generation
- Zero long-term debt reduces leverage pressure relative to peers
Risks
- Critical: Negative net income of -$1.5M on revenue of only $4.0M (net margin of -38.5%) indicates fundamental business failure
- Severe liquidity crisis: Cash of $12.8M covers only 7% of total liabilities of $180.5M; extremely vulnerable to any disruption
- Critically low equity cushion of $16.6M (8.4% of assets) leaves minimal buffer; any further losses eliminate shareholder value and threaten depositor safety
- Data is 14+ years stale as of 2026, suggesting the company may be in wind-down, regulatory control, or defunct status
- Zero Form 4 insider filings signal no management confidence or engagement
Key Metrics to Watch
- Current deposit levels and withdrawal trends (regulatory filings)
- Capital adequacy ratios and regulatory enforcement actions
- Path to profitability or official status change (acquisition, closure, receivership)
Financial Metrics
Revenue
4.0M
Net Income
-1.5M
EPS (Diluted)
$-0.99
Free Cash Flow
379.2K
Total Assets
197.1M
Cash
12.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
-38.5%
ROE
-9.3%
ROA
-0.8%
FCF Margin
9.5%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
91.6%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-24T18:42:12.597060 |
Data as of: 2012-03-31 |
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