Exhibit 99.1 The First Bancshares, Inc. Reported Increased Earnings and Quarterly Dividend HATTIESBURG, Miss.--(BUSINESS WIRE)--Aug. 1, 2007--The First Bancshares, Inc. (NASDAQGS: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported increased earnings for the second quarter which ended June 30, 2007. The company also announced a $.075 per share quarterly dividend. The record date of the dividend will be August 8, 2007 with a payable date of August 20, 2007. Earnings for the three months ended June 30, 2007 were $1,112,000, a 12.5% increase from earnings of $988,000 in the comparable quarter in 2006. Earnings for the second quarter of 2007 were up $401,000 or 56.4%, from the first quarter of 2007. Six month earnings for the period ended June 30, 2007 were $1,823,000 compared to $1,748,000 for the comparable period in 2006, an increase of 4.3%. David E. Johnson, CEO stated, "Our earnings reflect our strategy of building our business on a profitable community bank model, robust regional economics and strong leadership. We have been able to increase our earnings and expand our footprint in southern Mississippi which is rebuilding since the hurricane in 2005." The following are key achievements in the last six months ended June 30, 2007: -- Total loans increased 21.1% to $348,566 with a 5.4% increase in commercial loans and a 6.5% in consumer loans. -- Total deposits increased 14.7% to $403,583 with an 8.1% increase in non-interest bearing deposits. -- Net interest income increased 30.6%. -- Return on Average Equity was 11.13% -- First National Bank of Wiggins, acquired in October 2006, increased their deposits 14.7% since year end. -- Company opened a loan production office in Gulfport, Mississippi and has started ground work for the temporary facility on the new property. The Bay St. Louis office moved to their new permanent location. Deposits Total deposits increased to $403,583 in the period ended June 30, 2007, a 14.7% increase over the period ended December 31, 2006. Deposits grew 11.0% over the comparable six month period in 2006. This growth rate is attributed to superior performance in all of our branches in attracting new deposits and continued growth in our newest locations in southern Mississippi. Loans Total loans increased 21.1% to $348,566 for the six month period ended June 30, 2007 compared to the period ended December 31, 2006. Loans increased 20.1% over the comparable six month period in 2006. The Company is continuing to experience growth in all categories of the loan portfolio. Net Income and Earnings Per Share Net income was $1,112,000 and $1,823,000 for the three and six months ended June 30, 2007, increases of 12.5% and 4.3% over comparable periods in 2006. Net Interest income was increased 30.6% over the last six months and non-interest income increased 4.6% in that same period. Non-interest income was $707,000 in the six month period ending June 30, 2007 compared to $676,000 which included a gain on sale of properties of $224,000. The Company has maintained a net interest margin of 4.22% in a challenging interest rate environment. Fully-diluted earnings per share for the three month period ended June 30, 2007 amounted to $0.36 per share a 7.7% decrease from the comparable period in 2006 of $0.39. Fully-diluted earnings per share amounted to $0.60 for the six month period ended June 30, 2007, a 13.0% decrease from the comparable period in 2006 of $0.69. The Company increased its outstanding shares by 609,087 in 2006. These additional shares and a gain on the sale of property account for a $0.20 decrease in earnings per share compared to the same period in 2006. -- A reduction of $0.10 was due to 609,087 additional shares of stock issued since the second quarter of 2006. New shares of 365,000 were issued @ 22.50 per share for a capital infusion of $8.2 million and 109,181 shares were issued in conjunction with the merger of First National Bank of Wiggins and the balance was issued due to the exercise of outstanding stock option. -- A $0.10 decrease is attributable to a gain on the sale of property which was recognized during the second quarter of 2006. This event increased earnings for the comparable period in 2006. According to David E. Johnson, CEO, "Growth in net income is primarily due to the increased maturity of our branches and our strong branch leadership. We have been able to maintain our profitability and expand our branch network." Dividends The First has consistently increased dividends. In 2004 the annual dividend was $0.08, $0.19 in 2005 and $0.16 in 2006. The Company has recently instituted a policy of quarterly dividends and the current quarterly dividend is $0.075 with $0.15 paid in the first six months of 2007. David Johnson, CEO stated, "We are proud of our progress in this last quarter and six months and we believe that for a bank that was established in 1995 that we are rapidly growing with market share and profitability in southern Mississippi. We have successfully recruited talented bankers to lead in our branches and we are in the part of Mississippi that is rebuilding and becoming more prosperous." The First Bancshares, Inc. headquartered in Hattiesburg, Mississippi is the holding company for The First, a National Banking Association. The First operates ten branches in southern Mississippi. The First Bancshares has $474,000 million in assets and has 2,987,717 shares outstanding traded on the NASDAQ Global Market with the symbol of FBMS. Stock price at June 29th was $24.99 above mid-range for the Company's 52-week trading range. For more information go to www.thefirstbank.com. Forward-Looking Statement This news release contains statements regarding the projected performance of The First Bancshares, Inc. and it subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC's Web site, http://www.sec.gov. THE FIRST BANCSHARES, INC. FINANCIAL HIGHLIGHTS (Unaudited) ($ amounts in thousands except earnings per share) For the three months ended June 30, 2007 2006 Interest income 8,219 5,548 Interest expense 3,603 2,014 Net interest income 4,616 3,534 Provision for loan losses 320 209 Net interest income after provision for loan losses 4,296 3,325 Non-interest income 707 676 Non-interest expense 3,550 2,662 Income before income taxes 1,453 1,339 Income taxes 341 351 Net income $ 1,112 $ 988 Basic: Earnings per share $ .37 $ .42 Diluted: Earnings per share $ .36 $ .39 Dividends per share $ .075 $ - June 30, December 31, June 30, 2007 2006 2006 Total assets 473,598 417,769 329,229 Cash and due from banks 12,093 10,415 13,510 Federal funds sold 46 8,772 365 Investment securities 91,560 91,810 58,754 Loans, net of unearned interest 348,566 287,875 240,652 Deposits-interest bearing 340,191 293,070 213,495 Deposits-non interest bearing 63,392 58,652 55,142 Total deposits 403,583 351,722 268,637 Borrowed funds 31,865 20,827 28,831 Subordinated debentures 4,124 11,341 11,217 Stockholder's equity 33,136 32,365 19,459 Book value (per share) $ 11.09 $ 11.32 $ 8.18 Total shares outstanding 2,987,717 2,858,408 2,379,630 CONTACT: The First Bancshares, Inc. David Johnson, CEO 601-268-8998 or DeeDee Lowery, CFO 601-268-8998