The First Bancshares, Inc. Reports a 29.6% Increase in Quarterly Net Earnings and Declares Quarterly Dividends

Company Release - 4/21/2016 7:56 PM ET

HATTIESBURG, Miss.--(BUSINESS WIRE)-- The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported net earnings available to common shareholders of $2.5 million for the first quarter of 2016, compared to net earnings available to common shareholders of $1.9 million reported for the first quarter of 2015 and $2.3 million in net earnings available to common shareholders for the fourth quarter of 2015. Diluted earnings for the first quarter of 2016 were $0.46 per common share, compared to $0.34 per common share reported for the first quarter of 2015 and $0.42 per common share reported for the fourth quarter of 2015. First quarter 2016 net earnings included $189,000 of an after tax gain on the conversion of our debit card provider. Excluding this non-operating income, operating earnings per share for the first quarter of 2016 were $0.43. Both first quarter 2015 and fourth quarter 2015 included non-operating items as well, both representing $0.02 per share in adjustments.

Significant Events during Quarter:

Integrated The Mortgage Connection, LLC (“TMC”) which produced mortgage revenues of $444,000 during 1^st Quarter 2016
Hired new commercial team in Mobile consisting of market president and two experienced business bankers
Signed contract for a new full service branch in Bay Minette, AL

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are excited about the strong start for 2016, posting a 29.6% increase in net income as compared to the same period in 2015. We continue to focus on broad based growth across all of our markets which is positively impacting our operating results and returns.

“The first quarter was the first full operating period for TMC, our recent acquisition in Jackson, MS. The results were well ahead of forecast in terms of both revenue and profitability.

“We also added an experienced commercial banking team in Mobile led by Todd Henderson, Market President and composed of business bankers Sam Jeffcoat and Marques Ivy. This group has approximately 50 years of in market experience and will grow our presence in the Mobile market.”

Balance Sheet

Consolidated assets increased $96.8 million or 8.5% to $1.2 billion for the quarter ended March 31, 2016. Total loans were $797.8 million at March 31, 2016 as compared to $772.5 million at December 31, 2015 representing an increase of 3.3%. Increased loan volume was spread across the real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $16.8 million or 6.6% quarter over quarter divided equally between owner occupied and income producing non-owner occupied properties.

Total deposits increased $124.4 million or 13.6% to $1,041.1 million for the quarter ended March 31, 2016. This increase reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $7.1 million or 1.0% for quarter ended March 31, 2016.

Asset Quality

Nonperforming assets totaled $11.3 million at March 31, 2016, an increase of $0.4 million compared to $10.9 million at December 31, 2015. The ALLL/total loans ratio was 0.88% at March 31, 2016 and 0.87% at December 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.10% of loans at March 31, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.02%) for the quarter ended March 31, 2016 compared to (0.002%) for the quarter ended December 31, 2015. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.

Energy Loans

At March 31, 2016 the company had direct energy related loans of $22.3 million, representing 2.8% of the total loan portfolio. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production.

First Quarter 2016 vs. First Quarter 2015 Earnings Comparison

First quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $1.9 million for the first quarter of 2015. Revenues from consolidated operations increased $1,547,000 in quarterly comparison. Net interest income increased $796,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $633,000 in quarterly comparison for the first quarter of 2016 as compared to the first quarter of 2015 consisting mainly of increased mortgage income and gain on conversion of our debit card provider.

First quarter 2016 noninterest expenses increased $577,000, or 7.4% as compared to first quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $523,000 of which $319,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015.

Fully taxable-equivalent (“FTE”) net interest income totaled $9.9 million and $9.1 million for the first quarter of 2016 and 2015, respectively. The FTE net interest income increased $775,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $21,000 on net interest income for the first quarter comparisons. First quarter 2016 net interest margin of 3.68% includes 2 bps related to purchase accounting adjustments.

Investment securities totaled $269.5 million, or 21.7% of total assets at March 31, 2016, versus $261.9 million, or 22.9% of total assets at March 31, 2015. The average volume of investment securities decreased $0.1 million in prior year quarterly comparison. The average tax equivalent yield on investment securities remained the same at 2.63%. The investment portfolio had a net unrealized gain of $3.7 million at March 31, 2016 as compared to $3.9 million at March 31, 2015.

The average yield on all earnings assets increased 10 basis points in prior year quarterly comparison, from 3.92% for the first quarter of 2015 to 4.02% for the first quarter of 2016. This increase was slightly offset by an increase in average interest expense of 2 basis points from 0.39% for the first quarter of 2015 to 0.41% for the first quarter of 2016.

First Quarter 2016 vs Fourth Quarter 2015 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders increased $246,000 to $2.5 million.

Noninterest income increased $580,000 in sequential-quarter comparison mainly consisting of increases in mortgage income and a gain on the conversion of our debit card provider.

Noninterest expenses increased $120,000 in sequential-quarter comparison consisting of increases in salaries and benefits relating to the acquisition of The Mortgage Connection, LLC in December 2015 with decreases in other professional services, marketing and occupancy.

FTE net interest income increased $66,000 to $9.9 million from $9.8 million in sequential-quarter comparison. The $180,000 increase in loan interest income was slightly impacted negatively by accretion related to purchase accounting adjustments.

The average yield on all earnings assets decreased 11 basis points in sequential-quarter comparison, from 4.13% for the fourth quarter of 2015 to 4.02% for the first quarter of 2016.

Other Events

The Company will make a presentation at the 20^th Annual Burkenroad Reports Investment Conference at the Ritz-Carlton New Orleans Hotel in New Orleans, Louisiana, Friday, April 22, 2016 at 9:30 a.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 May 23, 2016 to shareholders of record as of the close of business on May 6, 2016.

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 south Mississippi, Louisiana and south Alabama. 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)
	Quarter			Quarter			Quarter			Quarter			Quarter
EARNINGS DATA	Ended			Ended			Ended			Ended			Ended
	3/31/16			12/31/15			9/30/15			6/30/15			3/31/15
Total Interest Income	$	10,597		$	10,417		$	10,080		$	10,022		$	9,683
Total Interest Expense		922			804			793			806			804
Net Interest Income		9,675			9,613			9,287			9,216			8,879
FTE net interest income		9,912			9,846			9,512			9,454			9,137
Provision for loan losses		190			10			250			-			150
Non-interest income		2,483			1,903			1,982			1,854			1,850
Non-interest expense		8,395			8,275			7,977			8,092			7,818
Earnings before income taxes		3,573			3,231			3,042			2,978			2,761
Income tax expense		969			873			815			793			732
Net earnings		2,604			2,358			2,227			2,185			2,029
Dividends and accretion on preferred stock		85			85			86			86			85
Net earnings available to common shareholders	$	2,519		$	2,273		$	2,141		$	2,099		$	1,944

PER COMMON SHARE DATA
Basic earnings per share	$	0.47		$	0.42		$	0.40		$	0.39		$	0.36
Diluted earnings per share		0.46			0.42			0.39			0.39			0.36
Diluted earnings per share, operating*		0.43			0.40			0.39			0.39			0.34
Quarterly dividends per share		.0375			.0375			.0375			.0375			.0375
Book value per common share at end of period		16.58			16.05			15.72			15.13			15.19
Tangible common book value at period end		13.67			13.10			13.02			12.41			12.46
Market price at end of period		15.63			18.34			17.47			16.65			16.26
Shares outstanding at period end		5,432,014			5,376,665			5,376,665			5,374,415			5,374,415
Weighted average shares outstanding:
Basic		5,415,339			5,376,665			5,374,790			5,366,495			5,358,576
Diluted		5,478,703			5,449,851			5,441,980			5,424,242			5,415,100

AVERAGE BALANCE SHEET DATA
Total assets	$	1,196,328		$	1,131,924		$	1,109,944		$	1,119,648		$	1,127,349
Loans and leases		779,418			757,036			731,818			728,416			705,752
Total deposits		964,681			946,849			953,229			973,776			932,401
Total common equity		87,155			84,122			82,045			79,986			79,722
Total tangible common equity*		71,297			69,514			67,492			65,334			64,967
Total equity		104,278			101,245			99,168			97,109			96,845

SELECTED RATIOS
Annualized return on avg assets		.87	%		.83	%		.80	%		.78	%		.72	%
Annualized return on avg assets, operating*		.78	%		.76	%		.78	%		.75	%		.66	%
Annualized return on avg common equity, operating*		10.69	%		10.27	%		10.44	%		10.50	%		9.33	%
Annualized return on avg tangible common equity, oper*		13.07	%		12.43	%		12.69	%		12.85	%		11.45	%
Average loans to average deposits		80.80	%		79.95	%		76.77	%		74.80	%		75.69	%
Taxable-equivalent net interest margin		3.68	%		3.81	%		3.79	%		3.71	%		3.60	%
Efficiency Ratio		67.73	%		70.43	%		69.40	%		71.56	%		71.16	%

CREDIT QUALITY
Allowance for loan losses (ALLL) as a % of total loans		.88	%		.87	%		.90	%		.88	%		.83	%
Nonperforming assets to tangible equity + ALLL		11.43	%		11.55	%		13.28	%		12.33	%		12.70	%
Nonperforming assets to total loans + ORE		1.40	%		1.40	%		1.66	%		1.51	%		1.58	%
Annualized QTD net charge-offs (recoveries) to total loans		(0.02	%)		(0.002	%)		(0.03	%)		(0.27	%)		.18	%
*See reconciliation of Non-GAAP financial measures


FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
	Mar 31,			Dec 31,			Sept 30,			June 30,			Mar 31,
BALANCE SHEET	2016			2015			2015			2015			2015
Assets
Cash and cash equivalents	$	95,965		$	41,259		$	65,233		$	62,021		$	94,474
Securities available-for-sale		253,126			239,732			239,631			236,476			246,842
Securities held-to-maturity		6,851			7,092			7,233			7,651			7,829
Other investments		9,570			8,135			6,249			5,787			7,235
Total investment securities		269,547			254,959			253,113			249,914			261,906
Loans held for sale		6,095			3,974			1,058			1,864			1,657
Total loans		797,764			772,515			746,588			731,037			716,359
Allowance for loan losses		(6,982	)		(6,747	)		(6,734	)		(6,419	)		(5,928	)
Loans, net		790,782			765,768			739,854			724,618			710,431
Premises and equipment		33,353			33,623			33,610			33,571			33,769
Other Real Estate		4,363			3,083			4,104			4,116			4,598
Goodwill and other intangibles		15,796			15,891			14,490			14,691			14,691
Other assets		26,050			26,574			26,387			26,953			24,622
Total assets	$	1,241,951		$	1,145,131		$	1,137,849		$	1,117,648		$	1,146,148

Liabilities and Shareholders’ Equity
Non-interest bearing deposits	$	194,433		$	189,445		$	187,542		$	193,810		$	203,766
Interest-bearing deposits		846,672			727,250			776,298			768,289			780,877
Total deposits		1,041,105			916,695			963,840			962,099			984,643
Borrowings		78,976			110,321			58,986			43,991			49,446
Subordinated debentures		10,310			10,310			10,310			10,310			10,310
Other liabilities		4,363			4,369			3,091			2,814			2,708
Total liabilities		1,134,754			1,041,695			1,036,227			1,019,214			1,047,382
Total shareholders’ equity		107,197			103,436			101,622			98,434			98,766
Total liabilities and shareholders’ equity	$	1,241,951		$	1,145,131		$	1,137,849		$	1,117,648		$	1,146,148


FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands except per share data)
EARNINGS STATEMENT	Three Months Ended
EARNINGS STATEMENT	3/31/16		12/31/15			9/30/15			6/30/15			3/31/15
Interest Income:
Loans, including fees	$	9,013	$	8,874		$	8,556		$	8,461		$	8,147
Investment securities		1,532		1,472			1,438			1,474			1,512
Accretion of purchase accounting adjustments		22		59			73			71			1
Other interest income		30		12			13			16			23
Total interest income		10,597		10,417			10,080			10,022			9,683

Interest Expense:
Deposits		701		657			693			704			679
Borrowings		173		131			100			102			127
Subordinated debentures		48		47			47			46			45
Accretion of purchase accounting adjustments		-		(31	)		(47	)		(46	)		(47	)
Total interest expense		922		804			793			806			804

Net interest income		9,675		9,613			9,287			9,216			8,879
Provision for loan losses		190		10			250			-			150
Net interest income after provision for loan losses		9,485		9,603			9,037			9,216			8,729

Non-interest Income:
Service charges on deposit accounts		637		674			737			591			568
Mortgage Income		645		245			341			357			334
Interchange Fee Income		644		650			611			612			571
Gain (loss) on securities, net		-		-			-			-			-
Gain on sale of premises and equipment		-		-			-			-			110
BEA award, net		-		152			-			-			-
Other charges and fees		557		182			293			294			267
Total non-interest income		2,483		1,903			1,982			1,854			1,850

Non-interest expense:
Salaries and employee benefits		5,149		4,670			4,628			4,613			4,626
Occupancy expense		1,073		1,107			1,136			1,137			1,109
FDIC premiums		244		243			241			241			241
Marketing		72		150			64			161			62
Amortization of core deposit intangibles		94		100			100			100			100
Other professional services		231		377			318			379			258
Other non-interest expense		1,532		1,628			1,490			1,461			1,422
Total Non-interest expense		8,395		8,275			7,977			8,092			7,818
Earnings before income taxes		3,573		3,231			3,042			2,978			2,761
Income tax expense		969		873			815			793			732
Net earnings		2,604		2,358			2,227			2,185			2,029
Dividends and accretion on preferred stock		85		85			86			86			85
Net earnings available to common shareholders	$	2,519	$	2,273		$	2,141		$	2,099		$	1,944

Earnings per common share, diluted	$	0.46	$	0.42		$	0.39		$	0.39		$	0.36
Operating earnings per common share, diluted*	$	0.43	$	0.40		$	0.39		$	0.39		$	0.34
*See reconciliation of Non-GAAP financial measures


FIRST BANCSHARES, INC and SUBSIDIARIES
Condensed Consolidated Financial Information (unaudited)
(in thousands)
	Mar 31,			Percent		Dec 31,			Sept 30,			June 30,			Mar 31,			Percent
COMPOSITION OF LOANS	2016			of Total		2015			2015			2015			2015			of Total
Commercial, financial and agricultural	$	126,381		15.7	%	$	129,197		$	123,872		$	116,352		$	110,806		15.5	%
Real estate – construction		100,386		12.5	%		99,161			85,769			93,152			93,168		13.0	%
Real estate – commercial		270,085		33.6	%		253,309			251,631			245,537			242,969		33.8	%
Real estate – residential		276,272		34.3	%		272,180			265,763			259,610			254,844		35.5	%
Lease Financing Receivable		2,645		.3	%		2,650			2,303			-			-		-
Obligations of States & subdivisions		7,034		.9	%		969			969			700			-		-
Consumer		14,961		1.9	%		15,049			16,281			15,686			14,572		2.0	%
Loans held for sale		6,095		.8	%		3,974			1,058			1,864			1,657		0.2	%
Total loans	$	803,859		100	%	$	776,489		$	747,646		$	732,901		$	718,016		100	%

	Mar 31,			Percent		Dec 31,			Sept 30,			June 30,			Mar 31,			Percent
COMPOSITION OF DEPOSITS	2016			of Total		2015			2015			2015			2015			of Total
Noninterest bearing	$	194,433		18.7	%	$	189,445		$	187,542		$	193,810		$	203,766		20.7	%
NOW and other		493,319		47.4	%		373,687			411,893			393,596			404,605		41.1	%
Money Market/Savings		169,733		16.3	%		174,090			181,861			185,033			183,048		18.6	%
Time Deposits of less than $100,000		72,295		6.9	%		73,865			75,022			77,815			80,606		8.2	%
Time Deposits of $100,000 or more		111,325		10.7	%		105,608			107,522			111,845			112,618		11.4	%
Total Deposits	$	1,041,105		100	%	$	916,695		$	963,840		$	962,099		$	984,643		100	%

	Mar 31,					Dec 31,			Sept 30,			June 30,			Mar 31,
ASSET QUALITY DATA	2016					2015			2015			2015			2015
Nonaccrual loans	$	5,851				$	7,368		$	7,949		$	6,513		$	5,995
Loans past due 90 days and over		628					29			6			92			426
Total nonperforming loans		6,479					7,397			7,955			6,605			6,421
Other real estate		4,363					3,083			4,104			4,116			4,598
Nonaccrual securities		408					408			408			408			408
Total nonperforming assets	$	11,250				$	10,888		$	12,467		$	11,129		$	11,427

Nonperforming assets to total assets		.91	%				.95	%		1.10	%		1.00	%		1.00	%
Nonperforming assets to total loans + ORE		1.40	%				1.40	%		1.66	%		1.51	%		1.58	%
ALLL to nonperforming loans		107.8	%				91.21	%		84.65	%		97.18	%		92.32	%
ALLL to total loans		.88	%				.87	%		.90	%		.88	%		.83	%

Quarter-to-date net charge-offs (recoveries)	$	(48	)			$	(3	)	$	(65	)	$	(490	)	$	316
Annualized QTD net chg/offs (recs) to loans		(0.02	%)				(0.002	%)		(0.03	%)		(0.27	%)		.18	%


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	March 31, 2016						December 31, 2015						September 30, 2015						June 30, 2015						March 31, 2015
			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	$	189,249	$	1,056	2.23	%	$	177,964	$	1,006	2.26	%	$	172,478	$	976	2.26	%	$	179,580	$	991	2.21	%	$	184,401	$	992	2.15	%
Tax-exempt securities		76,795		693	3.61	%		75,570		685	3.63	%		74,807		662	3.54	%		79,568		702	3.53	%		81,717		759	3.72	%
Total investment securities		266,044		1,749	2.63	%		253,534		1,691	2.67	%		247,285		1,638	2.65	%		259,148		1,693	2.61	%		266,118		1,751	2.63	%
Fed funds sold		12,395		30	0.97	%		405		1	0.99	%		5,502		13	0.95	%		6,702		16	0.95	%		16,248		23	0.57	%
Int bearing deposits in other banks		20,909		20	0.38	%		21,601		25	0.46	%		20,613		25	0.49	%		24,089		19	0.32	%		27,430		19	0.28	%
Loans		779,418		9,035	4.64	%		757,036		8,933	4.72	%		731,818		8,629	4.72	%		728,416		8,532	4.69	%		705,752		8,148	4.62	%
Total Interest earning assets		1,078,766		10,834	4.02	%		1,032,576		10,650	4.13	%		1,005,218		10,305	4.10	%		1,018,355		10,260	4.03	%		1,015,548		9,941	3.92	%
Other assets		117,562						99,348						104,726						101,293						111,801
Total assets	$	1,196,328					$	1,131,924					$	1,109,944					$	1,119,648					$	1,127,349

Interest-bearing liabilities:
Deposits	$	777,692	$	701	0.36	%	$	752,098	$	626	0.33	%	$	759,939	$	646	0.34	%	$	772,837	$	658	0.34	%	$	736,199	$	632	0.34	%
Repo		5,000		48	3.84	%		5,000		48	3.84	%		5,000		48	3.84	%		5,000		48	3.84	%		5,000		48	3.84	%
Fed funds purchased		782		2	1.02	%		1,984		6	1.21	%		661		2	1.21	%		1,180		3	1.02	%		108		-	0.00	%
FHLB		106,352		143	0.54	%		60,961		77	0.51	%		37,716		50	0.53	%		27,117		51	0.75	%		78,892		78	0.40	%

Subordinated debentures		10,310		28	1.09	%		10,310		47	1.82	%		10,310		47	1.82	%		10,310		46	1.78	%		10,310		45	1.75	%
Total interest bearing liabilities		900,136		922	0.41	%		830,353		804	0.39	%		813,626		793	0.39	%		816,444		806	0.39	%		830,509		804	0.39	%
Other liabilities		191,914						200,326						197,150						206,095						199,995
Shareholders' equity		104,278						101,245						99,168						97,109						96,845
Total liabilities and shareholders' equity	$	1,196,328					$	1,131,924					$	1,109,944					$	1,119,648					$	1,127,349

Net interest income (TE)			$	9,912	3.61	%			$	9,846	3.74	%			$	9,512	3.71	%			$	9,454	3.64	%			$	9,137	3.53	%

Net interest margin					3.68	%					3.81	%					3.79	%					3.71	%					3.60	%

Core net interest margin*					3.66	%					3.77	%					3.73	%					3.66	%					3.57	%


FIRST BANCSHARES, INC and SUBSIDIARIES
Reconcilement of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			June 30,			Mar 31,
Per Common Share Data	2016			2015			2015			2015			2015
Book value per common share	$	16.58		$	16.05		$	15.72		$	15.13		$	15.19
Effect of intangible assets per share		2.91			2.95			2.70			2.72			2.73
Tangible book value per common share	$	13.67		$	13.10		$	13.02		$	12.41		$	12.46

Diluted earnings per share	$	0.46		$	0.42		$	0.39		$	0.39		$	0.36
Effect of gain on debit card conversion, after-tax		(0.03	)		-			-			-			-
Effect of gain on sale of bank premises, after-tax		-			-			-			-			(0.02	)
Effect of BAE, after-tax		-			(0.02	)		-			-			-
Effect of acquisition charges, after-tax		-			-			-			-			-
Diluted earnings per share, operating	$	0.43		$	0.40		$	0.39		$	0.39		$	0.34

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			June 30,			Mar 31,
Average Balance Sheet Data	2016			2015			2015			2015			2015
Total average assets A	$	1,196,328		$	1,131,924		$	1,109,944		$	1,119,648		$	1,127,349

Total equity	$	104,278		$	101,245		$	99,168		$	97,109		$	96,845
Less preferred equity		17,123			17,123			17,123			17,123			17,123
Total common equity B		87,155			84,122			82,045			79,986			79,722
Less intangible assets		15,858			14,608			14,553			14,652			14,755
Tangible common equity C	$	71,297		$	69,514		$	67,492		$	65,334		$	64,967

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			June 30,			Mar 31,
Core Net Interest Margin	2016			2015			2015			2015			2015
Net interest income (TE)	$	9,912		$	9,846		$	9,512		$	9,454		$	9,137
Less purchase accounting adjustments		22			90			120			117			48
Net interest income, net of purchase accounting adj D	$	9,890		$	9,756		$	9,392		$	9,337		$	9,089

Total average earning assets	$	1,078,766		$	1,032,576		$	1,005,218		$	1,018,355		$	1,015,548
Add average balance of loan valuation discount		1,526			1,583			1,657			1,727			1,730
Avg earning assets, excluding loan valuation discount E	$	1,080,292		$	1,034,159		$	1,006,875		$	1,020,082		$	1,017,278

Core net interest margin D/E		3.66	%		3.77	%		3.73	%		3.66	%		3.57	%

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			June 30,			Mar 31,
Return Ratios	2016			2015			2015			2015			2015
Net earnings F	$	2,604		$	2,358		$	2,227		$	2,185		$	2,029
Dividends and accretion on preferred stock		85			85			86			86			85
Net earnings available to common shareholders		2,519			2,273			2,141			2,099			1,944
Gain on debit card conversion, after-tax		(189	)		-			-			-			-
Gain on sale of premises and equipment, after-tax		-			-			-			-			(84	)
BAE, after-tax		-			(112	)		-			-			-
Acquisition charges, after-tax		-			-			-			-			-
Net earnings available to common shareholders, oper G	$	2,330		$	2,161		$	2,141		$	2,099		$	1,860

Annualized return on avg assets F/A		.87	%		.83	%		.80	%		.78	%		.72	%
Annualized return on avg assets, oper G/A		.78	%		.76	%		.78	%		.75	%		.66	%
Annualized return on avg common equity, oper G/B		10.69	%		10.27	%		10.44	%		10.50	%		9.33	%
Annualized return on avg tangible common equity, oper G/C		13.07	%		12.43	%		12.69	%		12.85	%		11.45	%

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160421006828/en/

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

Source: The First Bancshares, Inc.

Press Release

The First Bancshares, Inc. Reports a 29.6% Increase in Quarterly Net Earnings and Declares Quarterly Dividends