The First Bancshares, Inc. (FBMS) 8-K The First Bancshares, Inc. Reports Quarterly Results and Declares Quarterly Dividend

Exhibit 99.1

The First Bancshares, Inc. Reports Quarterly Results and Declares Quarterly Dividend

HATTIESBURG, Miss.--(BUSINESS WIRE)--July 21, 2017--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today a 56.6% increase ($1.5 million) in operating net earnings (net income available to common shareholders adjusted for merger related costs) for the second quarter of 2017 compared to the second quarter of 2016. Operating net earnings available to common shareholders totaled $4.0 million for second quarter 2017 as compared to $2.6 million for second quarter 2016. Operating net earnings available to common shareholders excludes tax affected merger related expenses of $1.6 million in the second quarter of 2017.

Fully diluted earnings per share for the second quarter of 2017 were $0.26 as compared to $0.47 for the second quarter of 2016. Fully diluted earnings per share for the second quarter of 2017 includes one-time merger related charges of $0.18 and also includes the issuance of 3,563,380 in new common shares during the fourth quarter of 2016 related to the capital raise in October 2016.

Highlights for the Quarter:

• Operating net earnings (net income available to common shareholders adjusted for merger related costs) for the second quarter were $4.0 million compared to $3.4 million for the first quarter of 2017, an 18.6% increase.
• System integration for both acquisitions, which closed in the first quarter, was completed.
• Total loans increased 4.2% or $48 million during the quarter.
• The Company’s common stock was included in the Russell 2000 Index for the first time.
• Acquisitions added loans of $239.6 million and deposits of $355.7 million (loan and deposit figures are net of credit and rate marks) during the first quarter of 2017.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are pleased with the performance of the company during the second quarter. The two acquisitions closed in the first quarter have been fully integrated and core operating results are beginning to reflect significantly improved performance as a result of those acquisitions. We are also pleased with our organic growth across our entire footprint exhibited by $48 million of net loan growth for the quarter. I commend our team members on an outstanding quarter especially given the complexities and challenge of integrating two acquisitions at once.”

Balance Sheet

Total assets increased $6.4 million or 0.4% to $1.789 billion for the quarter ended June 30, 2017.

Total loans were $1.187 billion at June 30, 2017 as compared to $1.140 billion at March 31, 2017 and as compared to $824.1 million at June 30, 2016 representing increases of $47.9 million, or 4.2% for the quarter ended June 30, 2017 and $363.9 million, or 44.2% as compared to second quarter 2016. Increased loan volume of $47.9 million for the second quarter was distributed between commercial and all real estate categories. The acquisitions accounted for $239.6 million of the total increase in loans as compared to the same quarter in 2016.

Total deposits decreased $17.7 million or 1.1% for the quarter ended June 30, 2017. $10.1 million of the decrease was in the certificate of deposit portfolio of which a majority of this decrease was in the certificate of deposit portfolios that were acquired.

Asset Quality

Nonperforming assets totaled $13.2 million at June 30, 2017, a decrease of $0.1 million compared to $13.3 million at March 31, 2017 and an increase of $2.1 million compared to June 30, 2016. The majority of the increase is the result of acquired assets with associated fair value marks. The ALLL/total loans ratio was 0.68% at June 30, 2017 and 0.69% at March 31, 2017. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.18% of loans at June 30, 2017. The ratio of annualized net charge-offs (recoveries) to total loans was (0.003)% for the quarter ended June 30, 2017 compared to (0.09)% for the quarter ended March 31, 2017.

Second Quarter 2017 vs. Second Quarter 2016 Earnings Comparison

Operating net earnings for the second quarter totaled $4.0 million compared to $2.6 million for the second quarter of 2016, an increase of $1.5 million or 56.6%.

Second quarter 2017 net earnings available to common shareholders (including merger related costs) totaled $2.4 million compared to $2.6 million for the second quarter of 2016.

Revenues from consolidated operations increased $6.4 million in quarterly comparison. Net interest income increased $4.9 million in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $0.8 million in quarterly comparison for the second quarter of 2017 as compared to the second quarter of 2016 with increases spread over service charges and interchange fee income.

Second quarter 2017 noninterest expense increased $6.1 million, or 68.9% as compared to second quarter 2016. The majority of the increase is due to higher compensation expense and one-time charges associated with the acquisitions. Salaries increased $2.4 million of which $1.7 million is the result of increased employment numbers as a result of the acquisitions. Other professional services and other noninterest expenses included $2.7 million of before-tax merger related expenses associated with the acquisitions.

Fully taxable-equivalent (“FTE”) net interest income totaled $15.1 million and $10.1 million for the second quarter of 2017 and 2016, respectively. The FTE net interest income increased $5.0 million in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments accounted for $97,000 of the difference in net interest income for the second quarter comparisons. Second quarter 2017 net interest margin of 3.84% includes 3 bps related to purchase accounting adjustments.

Investment securities totaled $382.0 million, or 21.3% of total assets at June 30, 2017, versus $258.5 million, or 21.1% of total assets at June 30, 2016. The average volume of investment securities increased $112.6 million in prior year quarterly comparison primarily the result of the acquisitions. The average tax equivalent yield on investment securities remained constant at 2.65%. The investment portfolio had a net unrealized gain of $3.6 million at June 30, 2017 as compared to $4.5 million at June 30, 2016.

The average yield on all earnings assets increased 20 basis points in prior year quarterly comparison, from 4.05% for the second quarter of 2016 to 4.25% for the second quarter of 2017. This increase was offset partially by an increase in average interest expense of 6 basis points from 0.45% for the second quarter of 2016 to 0.51% for the second quarter of 2017.

Second Quarter 2017 vs First Quarter 2017 Earnings Comparison

Operating net earnings for the second quarter totaled $4.0 million compared to $3.4 million for the first quarter of 2017, an increase of $0.6 million or 18.6%.

In sequential-quarter comparison, net earnings available to common shareholders increased $1.2 million to $2.4 million which included after-tax one-time acquisition charges of $1.6 million.

FTE net interest income increased $0.6 million to $15.1 million from $14.5 million in sequential-quarter comparison. The increase was due primarily to increased loan volume. Interest income from purchase accounting adjustments increased $21,000 in quarterly comparison.

The average yield on all earnings assets decreased 2 basis points in sequential-quarter comparison, from 4.27% for the first quarter of 2017 to 4.25% for the second quarter of 2017.

Noninterest income increased $0.4 million in sequential-quarter comparison consisting of increases in service charges, interchange fee income and mortgage income.

Noninterest expense decreased $1.0 million in sequential-quarter comparison which includes decreases in other professional services and other non-interest expense. Merger related costs were $2.7 million and included in other professional services and other noninterest expenses as compared to $3.6 million for the first quarter of 2017.

Year to Date Earnings Comparison

Operating net earnings for the first half of 2017 totaled $7.4 million compared to $4.9 million for the first half of 2016, an increase of$2.5 million or 51.2%.

In year-over-year comparison, net earnings available to common shareholders decreased $1.5 million, or 31.4%, from $5.1 million at June 30, 2016 to $3.5 million at June 30, 2017 which included one-time merger related charges of $6.3 million. Net interest income increased $9.5 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.

Noninterest income increased $1.7 million in year-over-year comparison mainly consisting of increases in mortgage income of $0.3 million, service charges of $0.5 million and interchange fee income of $0.5 million.

Noninterest expenses increased $13.8 million in year-over-year comparison consisting of increases in salaries and benefits of $5.2 million of which $4.0 million relates to the acquisitions as well as $6.3 million in one-time merger related charges.

Other Events

The Company will make a presentation at the KBW 2017 Community Bank Investor Conference at The New York Hilton in New York, New York, Tuesday, August 1, 2017 at 2:30 p.m. central time. This will be an interactive session between management and those attending the conference. The presentation will be available at the company’s internet site (www.thefirstbank.com) under the Investor Relations tab.

Dividends

The Board of Directors of The First Bancshares, Inc. announced a cash dividend was declared in the amount of $0.0375 per share to be paid on its common stock on August 24, 2017 to shareholders of record as of the close of business on August 4, 2017.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in Mississippi, Louisiana, Alabama and Florida. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.

Forward Looking Statements

This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS DATA	Quarter Ended 6/30/17			Quarter Ended 3/31/17			Quarter Ended 12/31/16			Quarter Ended 9/30/16			Quarter Ended 6/30/16
Total Interest Income	$	16,464		$	15,753		$	11,868		$	11,269		$	10,871
Total Interest Expense		1,629			1,585			1,176			1,202			1,016
Net Interest Income		14,835			14,168			10,692			10,067			9,855
FTE net interest income		15,140			14,470			10,935			10,306			10,099
Provision for loan losses		248			46			88			143			204
Non-interest income		3,757			3,391			2,705			3,099			2,961
Non-interest expense		15,070			16,095			10,132			9,416			8,921
Earnings before income taxes		3,274			1,418			3,177			3,607			3,691
Income tax expense		908			296			870			1,049			1,042
Net earnings		2,366			1,122			2,307			2,558			2,649
Dividends and accretion on preferred stock		-			-			195			86			86
Net earnings available to common shareholders	$	2,366		$	1,122		$	2,112		$	2,472		$	2,563
PER COMMON SHARE DATA
Basic earnings per share	$	0.26		$	0.12		$	0.39		$	0.46		$	0.47
Basic earnings per share, operating*		0.44			0.37			0.44			0.48			0.47
Diluted earnings per share		0.26			0.12			0.26			0.45			0.47
Diluted earnings per share, operating*		0.44			0.37			0.30			0.48			0.47
Quarterly dividends per share		.0375			.0375			.0375			.0375			.0375
Book value per common share at end of period		17.80			17.39			17.19			17.60			17.15
Tangible common book value at period end		15.00			14.61			15.46			14.73			14.26
Market price at end of period		27.60			28.50			27.50			19.10			17.27
Shares outstanding at period end		9,152,657			9,144,412			8,991,397			5,428,017			5,432,014
Weighted average shares outstanding:
Basic		9,145,179			9,123,271			5,463,651			5,425,567			5,432,014
Diluted		9,206,378			9,182,711			8,500,305			5,475,785			5,490,592
AVERAGE BALANCE SHEET DATA
Total assets	$	1,751,092		$	1,713,438		$	1,275,538		$	1,233,034		$	1,210,707
Loans and leases		1,155,699			1,117,135			856,798			836,931			809,806
Total deposits		1,527,119			1,460,787			1,037,877			1,044,428			1,036,914
Total common equity		155,667			157,184			94,750			94,007			88,643
Total tangible common equity*		130,789			134,809			79,112			78,347			72,885
Total equity		155,667			157,184			159,786			111,130			105,766
SELECTED RATIOS
Annualized return on avg assets		.54	%		.26	%		.72	%		.83	%		.88	%
Annualized return on avg assets, operating*		.92	%		.79	%		.75	%		.85	%		.85	%
Annualized return on avg common equity, operating*		10.31	%		8.61	%		10.11	%		11.14	%		11.57	%
Annualized return on avg tangible common equity, oper*		12.27	%		10.04	%		12.10	%		13.37	%		14.07	%
Average loans to average deposits		75.68	%		76.47	%		82.55	%		80.13	%		78.10	%
Taxable-equivalent net interest margin		3.84	%		3.85	%		3.77	%		3.70	%		3.68	%
Efficiency Ratio		79.75	%		90.11	%		74.28	%		70.24	%		68.31	%
Efficiency Ratio, operating*		65.56	%		69.97	%		71.40	%		68.70	%		68.31	%
CREDIT QUALITY
Allowance for loan losses (ALLL) as a % of total loans		.68	%		.69	%		.87	%		.88	%		.88	%
Nonperforming assets to tangible equity + ALLL		9.10	%		9.39	%		6.74	%		10.81	%		10.93	%
Nonperforming assets to total loans + ORE		1.11	%		1.16	%		1.14	%		1.31	%		1.34	%
Annualized QTD net charge-offs (recoveries) to total loans		(0.09	)%		(0.10	)%		(0.03	%)		(0.04	%)		(0.03	%)
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
BALANCE SHEET	June 30, 2017			Mar 31, 2017			Dec 31, 2016			Sept 30, 2016			June 30, 2016
Assets
Cash and cash equivalents	$	92,596		$	148,511		$	62,119		$	70,114		$	54,777
Securities available-for-sale		366,490			352,851			243,206			236,168			242,855
Securities held-to-maturity		6,000			6,000			6,000			6,000			6,025
Other investments		9,544			7,647			6,593			9,516			9,578
Total investment securities		382,034			366,498			255,799			251,684			258,458
Loans held for sale		5,907			5,473			5,880			9,437			8,937
Total loans		1,187,936			1,139,987			867,054			854,366			824,083
Allowance for loan losses		(8,070	)		(7,813	)		(7,510	)		(7,481	)		(7,259	)
Loans, net		1,179,866			1,132,174			859,544			846,885			816,824
Premises and equipment		44,766			45,438			34,624			33,427			33,502
Other Real Estate		8,072			7,579			6,008			4,670			4,716
Goodwill and other intangibles		25,615			25,379			15,507			15,596			15,696
Other assets		50,766			51,769			37,886			34,825			31,990
Total assets	$	1,789,622		$	1,783,204		$	1,277,367		$	1,266,638		$	1,224,900
Liabilities and Shareholders’ Equity
Non-interest bearing deposits	$	319,494		$	323,442		$	202,478		$	196,786		$	194,950
Interest-bearing deposits		1,231,305			1,245,055			836,713			875,003			837,413
Total deposits		1,550,799			1,568,497			1,039,191			1,071,789			1,032,363
Borrowings		59,367			39,411			69,000			68,000			68,000
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Other liabilities		6,267			5,981			4,339			3,881			3,929
Total liabilities		1,626,743			1,624,199			1,122,840			1,153,980			1,114,602
Total shareholders’ equity		162,879			159,005			154,527			112,658			110,298
Total liabilities and shareholders’ equity	$	1,789,622		$	1,783,204		$	1,277,367		$	1,266,638		$	1,224,900

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS STATEMENT	Year to Date
	2017			2016
Interest Income:
Loans, including fees	$	27,558		$	18,306
Investment securities		4,326			3,063
Accretion of purchase accounting adjustments		112			42
Other interest income		221			57
Total interest income		32,217			21,468
Interest Expense:
Deposits		2,562			1,514
Borrowings		623			342
Subordinated debentures		130			82
Accretion of purchase accounting adjustments		(101	)		-
Total interest expense		3,214			1,938
Net interest income		29,003			19,530
Provision for loan losses		294			394
Net interest income after provision for loan losses		28,709			19,136
Non-interest Income:
Service charges on deposit accounts		1,790			1,241
Mortgage Income		2,124			1,829
Interchange Fee Income		1,862			1,325
Gain (loss) on securities, net		(9	)		129
Gain on sale of premises and equipment		-			-
BEA award, net		-			-
Other charges and fees		1,381			920
Total non-interest income		7,148			5,444
Non-interest expense:
Salaries and employee benefits		15,743			10,549
Occupancy expense		2,718			2,183
FDIC premiums		532			501
Marketing		168			204
Amortization of core deposit intangibles		331			194
Other professional services		5,812			552
Other non-interest expense		5,861			3,133
Total Non-interest expense		31,165			17,316
Earnings before income taxes		4,692			7,264
Income tax expense		1,204			2,011
Net earnings		3,488			5,253
Dividends and accretion on preferred stock		-			171
Net earnings available to common shareholders	$	3,488		$	5,082
Non-operating items*		3,908			(189	)
Net earnings available to common shareholders, operating	$	7,396		$	4,893
Basic earnings per common share	$	0.38		$	0.94
Basic earnings per common share, operating*	$	0.81		$	0.90
Diluted earnings per common share	$	0.38		$	0.93
Diluted earnings per common share, operating*	$	0.80		$	0.90
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS STATEMENT	Three Months Ended
	6/30/17			3/31/17			12/31/16			9/30/16		6/30/16
Interest Income:
Loans, including fees	$	14,114		$	13,444		$	9,922		$	9,706	$	9,293
Investment securities		2,197			2,129			1,472			1,446		1,531
Accretion of purchase accounting adjustments		56			56			429			92		20
Other interest income		97			124			45			25		27
Total interest income		16,464			15,753			11,868			11,269		10,871
Interest Expense:
Deposits		1,364			1,198			968			962		813
Borrowings		259			364			148			160		149
Subordinated debentures		67			63			60			80		54
Accretion of purchase accounting adjustments		(61	)		(40	)		-			-		-
Total interest expense		1,629			1,585			1,176			1,202		1,016
Net interest income		14,835			14,168			10,692			10,067		9,855
Provision for loan losses		248			46			88			143		204
Net interest income after provision for loan losses		14,587			14,122			10,604			9,924		9,651
Non-interest Income:
Service charges on deposit accounts		922			868			605			606		604
Mortgage Income		1,208			916			1,204			1,399		1,184
Interchange Fee Income		959			903			683			666		681
Gain (loss) on securities, net		(1	)		(8	)		(3	)		-		129
Gain on sale of premises and equipment		-			-			-			-		-
BEA award, net		-			-			-			-		-
Other charges and fees		669			712			216			428		363
Total non-interest income		3,757			3,391			2,705			3,099		2,961
Non-interest expense:
Salaries and employee benefits		7,762			7,981			5,943			5,645		5,400
Occupancy expense		1,348			1,370			1,222			1,209		1,110
FDIC premiums		331			201			265			254		257
Marketing		99			69			122			76		132
Amortization of core deposit intangibles		182			149			88			100		100
Other professional services		2,802			3,010			793			461		321
Other non-interest expense		2,546			3,315			1,699			1,671		1,601
Total Non-interest expense		15,070			16,095			10,132			9,416		8,921
Earnings before income taxes		3,274			1,418			3,177			3,607		3,691
Income tax expense		908			296			870			1,049		1,042
Net earnings		2,366			1,122			2,307			2,558		2,649
Dividends and accretion on preferred stock		-			-			195			86		86
Net earnings available to common shareholders	$	2,366		$	1,122		$	2,112		$	2,472	$	2,563
Basic earnings per common share	$	0.26		$	0.12		$	0.39		$	0.46	$	0.47
Basic earnings per common share, operating*	$	0.44		$	0.37		$	0.44		$	0.48	$	0.47
Diluted earnings per common share	$	0.26		$	0.12		$	0.26		$	0.45	$	0.47
Diluted earnings per common share, operating*	$	0.44		$	0.37		$	0.30		$	0.48	$	0.47
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
COMPOSITION OF LOANS	June 30, 2017			Percent of Total		Mar 31, 2017			Dec 31, 2016			Sept 30, 2016			June 30, 2016			Percent of Total
Commercial, financial and agricultural	$	167,799		14.1	%	$	156,786		$	129,423		$	121,963		$	118,924		14.3	%
Real estate – construction		169,971		14.2	%		163,249			109,394			104,644			101,439		12.2	%
Real estate – commercial		448,218		37.5	%		426,151			314,359			307,963			296,676		35.6	%
Real estate – residential		372,815		31.2	%		360,964			289,640			296,587			282,420		33.9	%
Lease Financing Receivable		2,189		0.2	%		2,196			2,204			2,211			2,642		0.3	%
Obligations of States & subdivisions		5,775		0.5	%		5,383			6,698			6,861			6,965		0.8	%
Consumer		21,169		1.8	%		25,258			15,336			14,137			15,017		1.8	%
Loans held for sale		5,907		0.5	%		5,473			5,880			9,437			8,937		1.1	%
Total loans	$	1,193,843		100	%	$	1,145,460		$	872,934		$	863,803		$	833,020		100	%
COMPOSITION OF DEPOSITS	June 30, 2017			Percent of Total		Mar 31, 2017			Dec 31, 2016			Sept 30, 2016			June 30, 2016			Percent of Total
Noninterest bearing	$	319,494		20.6	%	$	323,442		$	202,478		$	196,786		$	194,950		18.9	%
NOW and other		665,250		42.9	%		661,300			430,903			465,404			466,118		45.2	%
Money Market/Savings		296,705		19.1	%		304,292			182,793			187,228			174,740		16.9	%
Time Deposits of less than $250,000		203,254		13.1	%		212,352			162,797			163,739			148,049		14.3	%
Time Deposits of $250,000 or more		66,096		4.3	%		67,111			60,220			58,632			48,506		4.7	%
Total Deposits	$	1,550,799		100	%	$	1,568,497		$	1,039,191		$	1,071,789		$	1,032,363		100	%
ASSET QUALITY DATA	June 30, 2017					Mar 31, 2017			Dec 31, 2016			Sept 30, 2016			June 30, 2016
Nonaccrual loans	$	3,979				$	4,955		$	3,265		$	5,798		$	5,742
Loans past due 90 days and over		760					345			198			420			267
Total nonperforming loans		4,739					5,300			3,463			6,218			6,009
Other real estate		8,072					7,579			6,008			4,670			4,716
Nonaccrual securities		408					408			408			408			408
Total nonperforming assets	$	13,219				$	13,287		$	9,879		$	11,296		$	11,133
Nonperforming assets to total assets		.74	%				.75	%		.77	%		.89	%		.91	%
Nonperforming assets to total loans + ORE		1.11	%				1.16	%		1.14	%		1.31	%		1.34	%
ALLL to nonperforming loans		170.29	%				147.42	%		216.86	%		120.31	%		120.80	%
ALLL to total loans		.68	%				.69	%		.87	%		.88	%		.88	%
Quarter-to-date net charge-offs (recs)	$	(9	)			$	(257	)	$	58		$	(79	)	$	(72	)
Annualized QTD net chg/offs (recs) to loans		(0.003	)%				(0.09	)%		0.03	%		(0.04	%)		(0.03	%)

FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
Yield	Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended
Analysis	June 30, 2017						March 31, 2017						December 31, 2016						September 30, 2016						June 30, 2016
			Tax						Tax						Tax						Tax						Tax
	Avg		Equivalent		Yield/		Avg		Equivalent		Yield/		Avg		Equivalent		Yield/		Avg		Equivalent		Yield/		Avg		Equivalent		Yield/
	Balance		interest		Rate		Balance		interest		Rate		Balance		interest		Rate		Balance		interest		Rate		Balance		interest		Rate
Taxable securities	$	282,235	$	1,605	2.27	%	$	244,997	$	1,534	2.50	%	$	183,032	$	997	2.18	%	$	177,154	$	965	2.18	%	$	186,615	$	1,034	2.22	%
Tax-exempt securities		95,272		897	3.77	%		86,991		895	4.12	%		77,909		715	3.67	%		77,073		704	3.65	%		78,290		721	3.68	%
Total investment securities		377,507		2,502	2.65	%		331,988		2,429	2.93	%		260,941		1,712	2.62	%		254,227		1,669	2.63	%		264,905		1,755	2.65	%
Fed funds sold		39,048		95	0.97	%		50,700		124	0.98	%		41,545		45	0.43	%		10,356		25	0.97	%		9,902		27	1.09	%
Int bearing deposits in other banks		5,214		2	0.15	%		5,000		2	0.16	%		2,107		3	0.57	%		11,961		16	0.54	%		12,522		20	0.64	%
Loans		1,155,699		14,170	4.90	%		1,117,110		13,500	4.83	%		856,798		10,351	4.83	%		836,931		9,798	4.68	%		809,806		9,313	4.60	%
Total Interest earning assets		1,577,468		16,769	4.25	%		1,504,798		16,055	4.27	%		1,161,391		12,111	4.17	%		1,113,475		11,508	4.13	%		1,097,135		11,115	4.05	%
Other assets		173,624						208,640						114,147						119,559						113,572
Total assets	$	1,751,092					$	1,713,438					$	1,275,538					$	1,233,034					$	1,210,707
Interest-bearing liabilities:
Deposits	$	1,211,959	$	1,303	0.43	%	$	1,149,287	$	1,158	0.40	%	$	844,101	$	968	0.46	%	$	850,442	$	962	0.45	%	$	843,771	$	813	0.39	%
Repo		5,000		48	3.84	%		5,000		48	3.84	%		5,000		48	3.84	%		5,000		49	3.92	%		5,000		48	3.84	%
Fed funds purchased		1,906		8	1.68	%		975		2	0.82	%		191		1	2.09	%		1,926		5	1.04	%		2,894		8	1.11	%
FHLB & FTN		40,765		203	1.99	%		79,581		314	1.58	%		56,272		99	0.70	%		55,337		106	0.77	%		42,962		93	0.87	%
Subordinated debentures		10,310		67	2.60	%		10,310		63	2.44	%		10,310		60	2.33	%		10,310		80	3.10	%		10,310		54	2.10	%
Total interest bearing liabilities		1,269,940		1,629	0.51	%		1,245,153		1,585	0.51	%		915,874		1,176	0.51	%		923,015		1,202	0.52	%		904,937		1,016	0.45	%
Other liabilities		325,485						311,101						199,878						198,889						200,004
Shareholders’ equity		155,667						157,184						159,786						111,130						105,766
Total liabilities and shareholders’ equity	$	1,751,092					$	1,713,438					$	1,275,538					$	1,233,034					$	1,210,707
Net interest income (TE)			$	15,140	3.74	%			$	14,470	3.76	%			$	10,935	3.66	%			$	10,306	3.61	%			$	10,099	3.60	%
Net interest margin					3.84	%					3.85	%					3.77	%					3.70	%					3.68	%
Core net interest margin*					3.81	%					3.82	%					3.66	%					3.66	%					3.67	%

FIRST BANCSHARES, INC and SUBSIDIARIES Reconcilement of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)
		Three Months Ended
Per Common Share Data		June 30, 2017	Mar 31, 2017	Dec 31, 2016	Sept 30, 2016	June 30, 2016
Book value per common share		$ 17.80	$ 17.39	$ 17.19	$ 17.60	$ 17.15
Effect of intangible assets per share		2.80	2.78	1.73	2.87	2.98
Tangible book value per common share		$ 15.00	$ 14.61	$ 15.46	$ 14.73	$ 14.26
Diluted earnings per share		$ 0.26	$ 0.12	$ 0.26	$ 0.45	$ 0.47
Effect of gain on debit card conversion, after-tax		-	-	-	-	-
Effect of gain on sale of bank premises, after-tax		-	-	-	-	-
Effect of BAE, after-tax		-	-	-	-	-
Effect of acquisition charges, after-tax		0.18	0.25	0.04	0.03	-
Diluted earnings per share, operating		$ 0.44	$ 0.37	$ 0.30	$ 0.48	$ 0.47
		Three Months Ended
Average Balance Sheet Data		June 30, 2017	Mar 31, 2017	Dec 31, 2016	Sept 30, 2016	June 30, 2016
Total average assets	A	$1,751,092	$1,713,438	$1,275,538	$1,233,034	$1,210,707
Total equity		$ 155,667	$ 157,184	$ 159,786	$ 111,130	$ 105,766
Less preferred equity		-	-	65,036	17,123	17,123
Total common equity	B	155,667	157,184	94,750	94,007	88,643
Less intangible assets		24,878	22,375	15,638	15,660	15,758
Tangible common equity	C	$ 130,789	$ 134,809	$ 79,112	$ 78,347	$ 72,885
		Three Months Ended
Core Net Interest Margin		June 30, 2017	Mar 31, 2017	Dec 31, 2016	Sept 30, 2016	June 30, 2016
Net interest income (TE)		$ 15,140	$ 14,470	$ 10,935	$ 10,306	$ 10,099
Less purchase accounting adjustments		117	96	429	92	20
Net interest income, net of purchase accounting adj	D	$ 15,023	$ 14,374	$ 10,506	$ 10,214	$ 10,079
Total average earning assets		$1,577,468	$1,504,798	$1,161,391	$1,113,475	$1,097,135
Add average balance of loan valuation discount		1,721	2,159	1,358	1,484	1,504
Avg earning assets, excluding loan valuation discount	E	$1,579,189	$1,506,957	$1,162,749	$1,114,959	$1,098,639
Core net interest margin	D/E	3.81%	3.82%	3.61%	3.66%	3.67%
		Three Months Ended
Return Ratios		June 30, 2017	Mar 31, 2017	Dec 31, 2016	Sept 30, 2016	June 30, 2016
Net earnings	F	$ 2,366	$ 1,122	$ 2,307	$ 2,558	$ 2,649
Dividends and accretion on preferred stock		-	-	195	86	86
Net earnings available to common shareholders		2,366	1,122	2,112	2,472	2,563
Gain on debit card conversion, after-tax		-	-	-	-	-
Gain on sale of premises and equipment, after-tax		-	-	-	-	-
BAE, after-tax		-	-	-	-	-
Acquisition charges, after-tax		1,647	2,261	282	146	-
Net earnings available to common shareholders, oper	G	$ 4,013	$ 3,383	$ 2,394	$ 2,618	$ 2,563
Annualized return on avg assets	F/A	.54%	.26%	.72%	.83%	.88%
Annualized return on avg assets, oper	G/A	.92%	.79%	.75%	.85%	.85%
Annualized return on avg common equity, oper	G/B	10.31%	8.61%	10.11%	11.14%	11.57%
Annualized return on avg tangible common equity, oper	G/C	12.13%	10.04%	12.10%	13.37%	14.07%
Mortgage Department
Net Interest Income after provision for loan losses		$ 233	$ 253	$ 48	$ 24	$ 59
Loan fee income		1,208	916	1,204	1,399	1,184
Other non-interest income		-	-	1	1	3
Salaries and employee benefits		946	806	783	805	724
Other non-interest expense		99	114	144	124	110
Earnings before income taxes		$ 396	$ 249	$ 326	$ 495	$ 412

Certain financial information included in the earnings release and the associated Condensed Consolidated Financial Information (unaudited) is determined by methods other than in accordance with GAAP.

We use non-GAAP measures because we believe they are useful for evaluating our financial condition with a meaningful measure for assessing our financial condition as well as comparison to financial results for prior periods. These results should not be viewed as a substitute for results determined in accordance with GAAP, and are necessarily comparable to non-GAAP performance measures that other companies may use.

CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole, 601-268-8998
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer