HATTIESBURG, Miss.--(BUSINESS WIRE)-- The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) today reported quarterly net earnings available to common shareholders of $2.1 million for the second quarter of 2015, compared to net earnings available to common shareholders of $1.5 million reported for the second quarter of 2014, representing a 40% increase year over year. The Company also reported an increase of $0.2 million, or 10.5% in net earnings available to common shareholders for sequential quarters in 2015. Diluted earnings for the second quarter of 2015 were $0.39 per common share, compared to $0.29 per common share reported for the second quarter of 2014 and $0.36 per common share reported for the first quarter of 2015. First quarter 2015 net earnings included $84,000 of an after-tax gain on the sale of our branch location at 11281 Highway 49 Gulfport, MS. Excluding this non-operating income, operating earnings per share for the first quarter of 2015 were $0.34.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are excited about the Company’s performance posting a significant increase in profitability with strong growth throughout our footprint. We are encouraged by our results and will continue to look for opportunities to improve market share and increase our shareholder returns within the gulf south region.”

Balance Sheet

Consolidated assets decreased $28.5 million or 2.5% to total $1.1 billion for the quarter ended June 30, 2015. Total loans amounted to $731 million at June 30, 2015 and $716.4 million at March 31, 2015. Total loans increased $14.7 million or 2.0% for the second quarter 2015. The majority of the loan growth during the second quarter was in the C & I and residential real estate portfolios.

Total deposits decreased $22.5 million or 2.3% to total $962.1 million for the quarter ended June 30, 2015. The seasonality of our public fund portfolio contributed to this decrease.

Asset Quality

Nonperforming assets totaled $11.1 million at June 30, 2015, a decrease of $0.3 million compared to $11.4 million at March 31, 2015. The ALLL/total loans ratio was 0.88% at June 30, 2015 and 0.83% at March 31, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.16% of loans at June 30, 2015. The ratio of annualized net charge-offs (recoveries) to total loans was (0.07%) for the quarter ended June 30, 2015 compared to 0.18% for the quarter ended March 31, 2015. As noted in our first quarter 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.

Second Quarter 2015 vs. Second Quarter 2014 Earnings Comparison

Second quarter 2015 net earnings available to common shareholders totaled $2.1 million compared to $1.5 million for the second quarter of 2014. Revenues from consolidated operations increased $1.2 million in quarterly comparison. Net interest income increased $1.4 million in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income decreased $0.2 million in quarterly comparison from $2.1 million for the second quarter of 2014 to $1.9 million for the second quarter of 2015. During the second quarter of 2014, a gain of $0.3 million was realized on the sale of securities which attributed to the decrease in quarterly comparison.

Second quarter 2015 noninterest expenses increased $0.7 million or 9.6% as compared to second quarter 2014. Increases in salaries and employee benefits along with increases in occupancy expenses contributed $0.4 million. A majority of this increase can be attributed to the acquisition of Bay Bank that occurred at the beginning of the third quarter of 2014.

Fully taxable-equivalent (“FTE”) net interest income totaled $9.5 million and $8.1 million for the second quarter of 2015 and 2014, respectively. The FTE net interest income increased $1.4 million in prior year quarterly comparison primarily due to an increase in interest earned on loans. The purchase accounting adjustments had no impact on net interest income for the second quarter comparisons. Second quarter 2015 net interest margin of 3.71% includes 5 bps related to purchase accounting adjustments.

Investment securities totaled $249.9 million, or 22.4% of total assets at June 30, 2015, versus $276.1 million, or 27.4% of total assets at June 30, 2014. The average volume of investment securities decreased $9.6 million in prior year quarterly comparison. The average tax equivalent yield on investment securities increased 10 basis points, from 2.51% to 2.61%. The investment portfolio had a net unrealized gain of $0.7 million at June 30, 2015 as compared to $2.1 million at March 31, 2015 which accounted for the slight decrease in tangible book value.

The average yield on all earnings assets increased 18 basis points in prior year quarterly comparison, from 3.85% for the second quarter of 2014 to 4.03% for the second quarter of 2015.

Second Quarter 2015 vs First Quarter 2015 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders increased $0.2 million to $2.1 million as compared to $1.9 million for the first quarter.

Noninterest expenses increased $0.2 million in sequential-quarter comparison mainly consisting of increases in other professional services and marketing.

FTE net interest income increased $0.3 million to $9.4 million from $9.1 million in sequential-quarter comparison. The $0.4 million increase in loan income was impacted with accretion related to purchase accounting adjustments of only $0.1 million.

The average yield on all earnings assets increased 11 basis points in sequential-quarter comparison, from 3.92% for the first quarter of 2015 to 4.03% for the second quarter of 2015. Increased loan growth of approximately $23 million along with increases in fees contributed to the overall increase in the earning asset yield.

Other Events

The Company will make a presentation to bank stock analysts and investors at the Keefe, Bruyette & Woods Sixteenth Annual Community Bank Investor Conference 2015 at the Grand Hyatt Grand Central in New York, NY on Tuesday, July 28, 2015 at 8:30 a.m. Central Time. A live webcast of the presentation will be available at the company’s website www.thefirstbank.com under the investor Relations section. A replay of the presentation will be available for 90 days following the conference.

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, 2015 to shareholders of record as of the close of business on August 7, 2015.

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 expect per share data)
	EARNINGS DATA					QuarterEnded6/30/15							QuarterEnded3/31/15							QuarterEnded12/31/14							QuarterEnded9/30/14							QuarterEnded6/30/14
	Total Interest Income					$	10,022						$	9,683						$	9,662						$	9,688						$	8,574
	Total Interest Expense						806							804							791							833							726
	Net Interest Income						9,216							8,879							8,871							8,855							7,848
	FTE net interest income						9,454							9,137							9,137							9,128							8,104
	Provision for loan losses						-							150							152							631							277
	Non-interest income						1,854							1,850							2,055							2,021							2,055
	Non-interest expense						8,092							7,818							8,051							8,071							7,384
	Earnings before income taxes						2,978							2,761							2,723							2,174							2,242
	Income tax expense						793							732							682							641							629
	Net earnings						2,185							2,029							2,041							1,533							1,613
	Dividends and accretion on preferred stock						86							85							86							85							86
	Net earnings available to common shareholders					$	2,099						$	1,944						$	1,955						$	1,448						$	1,527
	PER COMMON SHARE DATA
	Basic earnings per share					$	0.39						$	0.36						$	0.37						$	0.27						$	0.30
	Diluted earnings per share						0.39							0.36							0.36							0.27							0.29
	Diluted earnings per share, operating*						0.39							0.34							0.34							0.30							0.28
	Quarterly dividends per share						.0375							.0375							.0375							.0375							.0375
	Book value per common share at end of period						15.06							15.12							14.80							14.38							14.02
	Tangible book value at period end						12.35							12.40							12.04							11.58							11.49
	Market price at end of period						16.65							16.26							14.51							14.45							14.20
	Shares outstanding at period end						5,400,909							5,400,909							5,342,670							5,338,370							5,180,287
	Weighted average shares outstanding:
	Basic						5,366,495							5,358,576							5,314,743							5,311,876							5,152,784
	Diluted						5,424,242							5,415,100							5,357,644							5,349,686							5,180,019
	AVERAGE BALANCE SHEET DATA
	Total assets					$	1,119,648						$	1,127,349						$	1,073,287						$	1,065,080						$	1,015,679
	Loans and leases						728,416							705,752							678,252							655,582							598,293
	Total deposits						973,776							932,401							891,168							918,477							890,209
	Total common equity						79,986							79,722							73,335							72,916							70,357
	Total tangible common equity*						65,334							64,967							58,758							59,180							57,201
	Total equity						97,109							96,845							90,458							90,039							87,480
	SELECTED RATIOS
	Annualized return on avg assets						.78	%						.72	%						.76	%						.58	%						.64	%
	Annualized return on avg assets, operating*						.75	%						.66	%						.68	%						.60	%						.57	%
	Annualized return on avg common equity, operating*						10.50	%						9.33	%						9.88	%						8.81	%						8.18	%
	Annualized return on avg tangible common equity, oper*						12.85	%						11.45	%						12.34	%						10.86	%						10.06	%
	Average loans to average deposits						74.80	%						75.69	%						76.11	%						71.38	%						67.21	%
	Taxable-equivalent net interest margin						3.71	%						3.60	%						3.76	%						3.79	%						3.53	%
	Efficiency Ratio						71.56	%						71.16	%						71.94	%						72.39	%						72.68	%
	CREDIT QUALITY
	Allowance for loan losses (ALLL) as a % of total loans						.88	%						.83	%						.87	%						.91	%						.99	%
	Nonperforming assets to tangible equity + ALLL						12.33	%						12.70	%						13.29	%						13.29	%						16.13	%
	Nonperforming assets to total loans + ORE						1.51	%						1.58	%						1.64	%						1.69	%						2.18	%
	Annualized QTD net charge-offs (recoveries) to total loans						(0.07	%)						.18	%						.08	%						.33	%						.06	%
*See reconciliation of Non-GAAP financial measures

	FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
	BALANCE SHEET					June 30,2015							Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Assets
	Cash and cash equivalents					$	62,021						$	94,474						$	44,618						$	50,447						$	55,443
	Securities available-for-sale						236,476							246,842							254,744							262,651							263,653
	Securities held-to-maturity						7,651							7,829							8,193							8,411							8,421
	Other investments						5,787							7,235							7,234							5,592							4,025
	Total investment securities						249,914							261,906							270,171							276,654							276,099
	Loans held for sale						1,864							1,657							2,103							3,769							3,220
	Total loans						731,037							716,359							704,531							667,533							606,812
	Allowance for loan losses						(6,419	)						(5,928	)						(6,095	)						(6,084	)						(5,999	)
	Loans, net						724,618							710,431							698,436							661,449							600,813
	Premises and equipment						33,571							33,769							34,810							35,079							31,339
	Other Real Estate						4,116							4,598							4,654							4,986							4,875
	Goodwill and other intangibles						14,591							14,691							14,791							14,363							13,108
	Other assets						26,953							24,622							24,182							25,515							24,392
	Total assets					$	1,117,648						$	1,146,148						$	1,093,768						$	1,072,262						$	1,009,289
	Liabilities and Shareholders’ Equity
	Non-interest bearing deposits					$	193,810						$	203,766						$	201,362						$	195,957						$	183,226
	Interest-bearing deposits						768,289							780,877							691,413							711,558							700,646
	Total deposits						962,099							984,643							892,775							907,515							883,872
	Borrowings						43,991							49,446							89,450							49,456							13,500
	Subordinated debentures						10,310							10,310							10,310							10,310							10,310
	Other liabilities						2,814							2,708							5,017							11,117							11,830
	Total liabilities						1,019,214							1,047,382							997,552							978,398							919,512
	Total shareholders’ equity						98,434							98,766							96,216							93,864							89,777
	Total liabilities and shareholders’ equity					$	1,117,648						$	1,146,148						$	1,093,768						$	1,072,262						$	1,009,289

	FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
	EARNINGS STATEMENT					Three Months Ended
						6/30/15							3/31/15							12/31/14							9/30/14							6/30/14
	Interest Income:
	Loans, including fees					$	8,461						$	8,147						$	8,071						$	7,923						$	7,094
	Investment securities						1,474							1,512							1,534							1,623							1,453
	Accretion of purchase accounting adjustments						71							1							51							136							(3	)
	Other interest income						16							23							6							6							30
	Total interest income						10,022							9,683							9,662							9,688							8,574
	Interest Expense:
	Deposits						704							679							678							720							698
	Borrowings						102							127							114							99							97
	Subordinated debentures						46							45							46							45							45
	Accretion of purchase accounting adjustments						(46	)						(47	)						(47	)						(31	)						(114	)
	Total interest expense						806							804							791							833							726
	Net interest income						9,216							8,879							8,871							8,855							7,848
	Provision for loan losses						-							150							152							631							277
	Net interest income after provision for loan losses						9,216							8,729							8,719							8,224							7,571
	Non-interest Income:
	Service charges on deposit accounts						591							568							608							616							594
	Mortgage Income						357							334							445							522							407
	Interchange Fee Income						612							571							561							566							507
	Gain (loss) on securities, net						-							-							(4	)						(13	)						254
	Gain on sale of premises and equipment						-							110							-							-							-
	BEA award, net						-							-							223							-							-
	Other charges and fees						294							267							222							330							293
	Total non-interest income						1,854							1,850							2,055							2,021							2,055
	Non-interest expense:
	Salaries and employee benefits						4,613							4,626							4,551							4,554							4,260
	Occupancy expense						1,137							1,109							1,156							1,209							1,093
	FDIC premiums						241							241							271							222							222
	Marketing						161							62							160							94							87
	Amortization of core deposit intangibles						100							100							100							98							94
	Other professional services						379							258							412							429							456
	Other non-interest expense						1,461							1,422							1,401							1,465							1,172
	Total Non-interest expense						8,092							7,818							8,051							8,071							7,384
	Earnings before income taxes						2,978							2,761							2,723							2,174							2,242
	Income tax expense						793							732							682							641							629
	Net earnings						2,185							2,029							2,041							1,533							1,613
	Dividends and accretion on preferred stock						86							85							86							85							86
	Net earnings available to common shareholders					$	2,099						$	1,944						$	1,955						$	1,448						$	1,527
	Earnings per common share, diluted					$	0.39						$	0.36						$	0.36						$	0.27						$	0.29
	Operating earnings per common share, diluted*					$	0.39						$	0.34						$	0.34						$	0.30						$	0.28
*See reconciliation of Non-GAAP financial measures

	FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
	COMPOSITION OF LOANS					June 30,2015							Percentof Total						Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014							Percentof Total
	Commercial, financial and agricultural					$	116,352						15.9	%					$	110,806						$	106,109						$	100,263						$	81,958						13.4	%
	Real estate – construction						93,152						12.7	%						93,168							84,935							83,908							74,105						12.1	%
	Real estate – commercial						245,537						33.4	%						242,969							238,602							217,684							204,101						33.5	%
	Real estate – residential						259,610						35.6	%						254,844							256,406							248,125							230,310						37.8	%
	Consumer						16,386						2.1	%						14,572							18,479							17,553							16,337						2.7	%
	Loans held for sale						1,864						.3	%						1,657							2,103							3,769							3,220						0.5	%
	Total loans					$	732,901						100	%					$	718,016						$	706,634						$	671,302						$	610.031						100	%
	COMPOSITION OF DEPOSITS					June 30,2015							Percentof Total						Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014							Percentof Total
	Noninterest bearing					$	193,810						20.1	%					$	203,766						$	201,362						$	195,957						$	183,226						20.7	%
	NOW and other						393,596						40.9	%						404,605							301,721							317,569							326,683						37.0	%
	Money Market/Savings						185,033						19.2	%						183,048							183,633							183,068							171,842						19.4	%
	Time Deposits of less than $100,000						77,815						8.1	%						80,606							85,365							86,897							80,144						9.1	%
	Time Deposits of $100,000 or more						111,845						11.7	%						112,618							120,694							124,024							121,975						13.8	%
	Total Deposits					$	962,099						100	%					$	984,643						$	892,775						$	907,515						$	883,872						100	%
	ASSET QUALITY DATA					June 30,2015													Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Nonaccrual loans					$	6,513												$	5,995						$	6,056						$	6,032						$	6,063
	Loans past due 90 days and over						92													426							669							102							447
	Total nonperforming loans						6,605													6,421							6,725							6,134							6,510
	Other real estate						4,116													4,598							4,654							4,986							4,875
	Nonaccrual securities						408													408							250							250							1,950
	Total nonperforming assets					$	11,129												$	11,427						$	11,629						$	11,370						$	13,335
	Nonperforming assets to total assets						1.00	%												1.00	%						1.06	%						1.06	%						1.32	%
	Nonperforming assets to total loans + ORE						1.51	%												1.58	%						1.64	%						1.69	%						2.18	%
	ALLL to nonperforming loans						97.18	%												94.66	%						90.63	%						99.18	%						92.15	%
	ALLL to total loans						.88	%												.83	%						.87	%						.91	%						.99	%
	Quarter-to-date net charge-offs (recoveries)					$	(490	)											$	316						$	141						$	546						$	89
	Annualized QTD net chg/offs (recs) to loans						(0.07	%)												.18	%						.08	%						.33	%						.06	%

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, 2015												March 31, 2015												December 31, 2014												September 30, 2014												June 30, 2014
							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			$	179,580			$	991			2.21	%			$	184,401			$	992			2.15	%			$	189,691			$	998			2.10	%			$	201,194			$	1,072			2.13	%			$	183,976			$	937			2.04	%
Tax-exempt securities				79,568				702			3.53	%				81,717				759			3.72	%				84,413				783			3.71	%				86,498				802			3.71	%				84,813				753			3.55	%
Total investment securities				259,148				1,693			2.61	%				266,118				1,751			2.63	%				274,104				1,781			2.60	%				287,692				1,874			2.61	%				268,789				1,690			2.51	%
Fed funds sold				6,702				16			0.95	%				16,248				23			0.57	%				408				6			5.88	%				2,037				6			1.18	%				3,603				30			3.33	%
Int bearing deposits in other banks				24,089				19			0.32	%				27,430				19			0.28	%				18,270				19			0.42	%				16,854				22			0.52	%				47,210				19			0.16	%
Loans				728,416				8,532			4.69	%				705,752				8,148			4.62	%				678,252				8,122			4.79	%				655,582				8,059			4.92	%				598,293				7,091			4.74	%
Total Interest earning assets				1,018,355				10,260			4.03	%				1,015,548				9,941			3.92	%				971,034				9,928			4.09	%				962,165				9,961			4.14	%				917,895				8,830			3.85	%
Other assets				101,293												111,801												102,253												102,915												97,784
Total assets			$	1,119,648											$	1,127,349											$	1,073,287											$	1,065,080											$	1,015,679
Interest-bearing liabilities:
Deposits			$	772,837			$	658			0.34	%			$	736,199			$	632			0.34	%			$	693,657			$	630			0.36	%			$	723,911			$	688			0.38	%			$	711,936			$	584			0.33	%
Repo				5,000				48			3.84	%				5,000				48			3.84	%				5,000				49			3.92	%				5,000				49			3.92	%				5,000				48			3.84	%
Fed funds purchased				1,180				3			1.02	%				108				-			0.00	%				1,645				4			0.97	%				326				1			1.23	%				256				1			1.56	%
FHLB				27,117				51			0.75	%				78,892				78			0.40	%				63,040				62			0.39	%				28,038				50			0.71	%				9,802				48			1.96	%
Subordinated debentures				10,310				46			1.78	%				10,310				45			1.75	%				10,310				46			1.78	%				10,310				45			1.75	%				10,310				45			1.75	%
Total interest bearing liabilities				816,444				806			0.39	%				830,509				804			0.39	%				773,652				791			0.41	%				767,585				833			0.43	%				737,304				726			0.39	%
Other liabilities				206,095												199,995												209,177												207,456												190,895
Shareholders’ equity				97,109												96,845												90,458												90,039												87,480
Total liabilities and shareholders’ equity			$	1,119,648											$	1,127,349											$	1,073,287											$	1,065,080											$	1,015,679
Net interest income (TE)							$	9,454			3.64	%							$	9,137			3.53	%							$	9,137			3.68	%							$	9,128			3.71	%							$	8,104			3.45	%
Net interest margin											3.71	%											3.60	%											3.76	%											3.79	%											3.53	%
Core net interest margin*											3.66	%											3.57	%											3.72	%											3.72	%											3.48	%

	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 30,2015							Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Book value per common share									$	15.06						$	15.12						$	14.80						$	14.38						$	14.02
	Effect of intangible assets per share										2.71							2.72							2.76							2.80							2.53
	Tangible book value per common share									$	12.35						$	12.40						$	12.04						$	11.58						$	11.49
	Diluted earnings per share									$	0.39						$	0.36						$	0.36						$	0.27						$	0.29
	Effect of gain on sale of other securities, 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										-							-							-							0.03							0.02
	Diluted earnings per share, operating									$	0.39						$	0.34						$	0.34						$	0.30						$	0.28
										Three Months Ended
	Average Balance Sheet Data									June 30,2015							Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Total average assets				A					$	1,119,648						$	1,127,349						$	1,073,287						$	1,065,080						$	1,015,679
	Total equity									$	97,109						$	96,845						$	90,458						$	90,039						$	87,480
	Less preferred equity										17,123							17,123							17,123							17,123							17,123
	Total common equity				B						79,986							79,722							73,335							72,916							70,357
	Less intangible assets										14,652							14,755							14,577							13,736							13,156
	Tangible common equity				C					$	65,334						$	64,967						$	58,758						$	59,180						$	57,201
										Three Months Ended
	Core Net Interest Margin									June 30,2015							Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Net interest income (TE)									$	9,454						$	9,137						$	9,137						$	9,128						$	8,104
	Less purchase accounting adjustments										117							48							98							167							111
	Net interest income, net of purchase accounting adj				D					$	9,337						$	9,089						$	9,039						$	8,961						$	7,993
	Total average earning assets									$	1,018,355						$	1,015,548						$	971,034						$	962,165						$	917,895
	Add average balance of loan valuation discount										1,727							1,730							1,780							852							201
	Avg earning assets, excluding loan valuation discount				E					$	1,020,082						$	1,017,278						$	972,814						$	963,017						$	918,096
	Core net interest margin				D/E						3.66	%						3.57	%						3.72	%						3.72	%						3.48	%
										Three Months Ended
	Return Ratios									June 30,2015							Mar 31,2015							Dec 31,2014							Sept 30,2014							June 30,2014
	Net earnings				F					$	2,185						$	2,029						$	2,041						$	1,533						$	1,613
	Dividends and accretion on preferred stock										86							85							86							85							86
	Net earnings available to common shareholders										2,099							1,944							1,955							1,448							1,527
	Gain on sale of other securities, after-tax										-							-							-							-							(183	)
	Gain on sale of premises and equipment, after-tax										-							(84	)						-							-							-
	BAE, after-tax										-							-							(165	)						-							-
	Acquisition charges, after-tax										-							-							22							158							94
	Net earnings available to common shareholders, oper				G					$	2,099						$	1,860						$	1,812						$	1,606						$	1,438
	Annualized return on avg assets				F/A						.78	%						.72	%						.76	%						.58	%						.64	%
	Annualized return on avg assets, oper				G/A						.75	%						.66	%						.68	%						.60	%						.57	%
	Annualized return on avg common equity, oper				G/B						10.50	%						9.33	%						9.88	%						8.81	%						8.18	%
	Annualized return on avg tangible common equity, oper				G/C						12.85	%						11.45	%						12.34	%						10.86	%						10.06	%

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/20150717005608/en/

The First Bancshares, Inc.

M. Ray “Hoppy” Cole, 601-268-8998

Chief Executive Officer

or

Dee Dee Lowery, 601-268-8998

Chief Financial Officer

Source: The First Bancshares, Inc.