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 third quarter of 2016, compared to net earnings available to common shareholders of $2.1 million reported for the third quarter of 2015 and $2.6 million in net earnings available to common shareholders for the second quarter of 2016. Diluted earnings for the third quarter of 2016 were $0.45 per common share, compared to $0.39 per common share reported for the third quarter of 2015 and $0.47 per common share reported for the second quarter of 2016. Third quarter 2016 net earnings included acquisition charges of $0.03 per share; therefore, operating earnings per share for the third quarter of 2016 were $0.48. The second quarter of 2016 and the third quarter of 2015 net earnings did not include any non-operating income or expenses.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “We are pleased to record another quarter of strong growth and improved profitability across our entire franchise. Our regional markets continue to offer us expansion opportunities as we continue to improve our market share throughout the Gulf South.”

Balance Sheet

Consolidated assets increased $41.7 million or 3.4% to $1.3 billion for the quarter ended September 30, 2016. Total loans were $854.4 million at September 30, 2016 as compared to $824.1 million at June 30, 2016 representing an increase of $30.3 million or 3.7%. Increased loan volume was spread across all real estate categories with residential real estate experiencing the largest growth. Fundings for commercial real estate loans increased $11.3 million or 3.8% quarter over quarter along with residential real estate growth of $14.2 million or 5.0%.

Total deposits increased $39.4 million or 3.8% to $1,071.8 million for the quarter ended September 30, 2016 with time deposits increasing $25.8 million or 13.1%. Money market and savings increased $12.5 million or 7.1%.

Asset Quality

Nonperforming assets totaled $11.3 million at September 30, 2016, an increase of $0.2 million compared to $11.1 million at June 30, 2016. The ALLL/total loans ratio was 0.88% at September 30, 2016 and June 30, 2016. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.06% of loans at September 30, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.04%) for the quarter ended September 30, 2016 compared to (0.03%) for the quarter ended June 30, 2016. 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 September 30, 2016 the company had direct energy related loans of $19.4 million, representing 2.3% 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.

Third Quarter 2016 vs. Third Quarter 2015 Earnings Comparison

Third quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $2.1 million for the third quarter of 2015. Revenues from consolidated operations increased $2.3 million in quarterly comparison. Net interest income increased $780,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $1,117,000 in quarterly comparison for the third quarter of 2016 as compared to the third quarter of 2015 consisting mainly of increased mortgage income of $1,058,000.

Third quarter 2016 noninterest expenses increased $1,439,000, or 18.0% as compared to third quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $1,017,000 of which $600,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015 as well as additional salaries and benefits related to the banking team in Mobile and lender in Madison along with Treasury Management personnel.

Fully taxable-equivalent (“FTE”) net interest income totaled $10.3 million and $9.5 million for the third quarter of 2016 and 2015, respectively. The FTE net interest income increased $794,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments had a difference of $28,000 on net interest income for the third quarter comparisons. Third quarter 2016 net interest margin of 3.70% includes 4 bps related to purchase accounting adjustments.

Investment securities totaled $251.7 million, or 19.9% of total assets at September 30, 2016, versus $253.1 million, or 22.2% of total assets at September 30, 2015. The average volume of investment securities increased $6.9 million in prior year quarterly comparison. The average tax equivalent yield on investment securities decreased 2 bps to 2.63%. The investment portfolio had a net unrealized gain of $4.5 million at September 30, 2016 as compared to $2.3 million at September 30, 2015.

The average yield on all earnings assets increased 3 basis points in prior year quarterly comparison, from 4.10% for the third quarter of 2015 to 4.13% for the third quarter of 2016. This increase was offset by an increase in average interest expense of 13 basis points from 0.39% for the third quarter of 2015 to 0.52% for the third quarter of 2016.

Third Quarter 2016 vs Second Quarter 2016 Earnings Comparison

In sequential-quarter comparison, net earnings available to common shareholders decreased $91,000 to $2.5 million which included after-tax acquisition charges of $146,000.

FTE net interest income increased $207,000 to $10.3 million from $10.1 million in sequential-quarter comparison. The increase was due primarily to increased loan volume.

The average yield on all earnings assets increased 8 basis points in sequential-quarter comparison, from 4.05% for the second quarter of 2016 to 4.13% for the third quarter of 2016.

Noninterest income increased $138,000 in sequential-quarter comparison consisting of an increase in mortgage income of $215,000 which was partially offset by the one-time gain of $129,000 related to the gain on securities during the second quarter.

Noninterest expenses increased $495,000 in sequential-quarter comparison which includes an increase in salaries and benefits of $245,000. Of this amount, $60,000 relates to the acquisition of The Mortgage Connection, LLC that occurred in December 2015. The increase in salaries and benefits also reflect the hiring of the lending team Madison, the treasury management executive as well as the lending team in Mobile. The increase in noninterest expenses also includes acquisition charges of $234,000.

Year to Date Earnings Comparison

In year-over-year comparison, net earnings available to common shareholders increased $1.4 million, or 22.2%, from $6.2 million at September 30, 2015 to $7.6 million at September 30, 2016. Net interest income increased $2.2 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.

Noninterest income increased $2.9 million in year-over-year comparison mainly consisting of increases in mortgage income of $2.2 million.

Noninterest expenses increased $2.8 million in year-over-year comparison consisting of increases in salaries and benefits of $2.3 million relating to the acquisition of The Mortgage Connection, LLC as well as salaries and benefits related to the lending teams in Madison and Mobile along with the executive for Treasury Management.

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 November 23, 2016 to shareholders of record as of the close of business on November 4, 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 Mississippi, Louisiana and 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)
EARNINGS DATA		Quarter Ended 9/30/16				Quarter Ended 6/30/16					Quarter Ended 3/31/16				Quarter Ended 12/31/15				Quarter Ended 9/30/15
Total Interest Income		$	11,269			$	10,871				$	10,597			$	10,417			$	10,080
Total Interest Expense			1,202				1,016					922				804				793
Net Interest Income			10,067				9,855					9,675				9,613				9,287
FTE net interest income			10,306				10,099					9,912				9,846				9,512
Provision for loan losses			143				204					190				10				250
Non-interest income			3,099				2,961					2,483				1,903				1,982
Non-interest expense ^^			9,416				8,921					8,395				8,275				7,977
Earnings before income taxes			3,607				3,691					3,573				3,231				3,042
Income tax expense			1,049				1,042					969				873				815
Net earnings			2,558				2,649					2,604				2,358				2,227
Dividends and accretion on preferred stock			86				86					85				85				86
Net earnings available to common shareholders		$	2,472			$	2,563				$	2,519			$	2,273			$	2,141
PER COMMON SHARE DATA
Basic earnings per share		$	0.46			$	0.47				$	0.47			$	0.42			$	0.40
Diluted earnings per share			0.45				0.47					0.46				0.42				0.39
Diluted earnings per share, operating*			0.48				0.47					0.43				0.40				0.39
Quarterly dividends per share			.0375				.0375					.0375				.0375				.0375
Book value per common share at end of period			17.60				17.15					16.58				16.05				15.72
Tangible common book value at period end			14.73				14.26					13.67				13.10				13.02
Market price at end of period			19.10				17.27					15.63				18.34				17.47
Shares outstanding at period end			5,428,017				5,432,014					5,432,014				5,376,665				5,376,665
Weighted average shares outstanding:
Basic			5,425,567				5,432,014					5,415,339				5,376,665				5,374,790
Diluted			5,475,785				5,490,592					5,478,703				5,449,851				5,441,980
AVERAGE BALANCE SHEET DATA
Total assets		$	1,233,034			$	1,210,707				$	1,196,328			$	1,131,924			$	1,109,944
Loans and leases			836,931				809,806					779,418				757,036				731,818
Total deposits			1,044,428				1,036,914					964,681				946,849				953,229
Total common equity			94,007				88,643					87,155				84,122				82,045
Total tangible common equity*			78,347				72,885					71,297				69,514				67,492
Total equity			111,130				105,766					104,278				101,245				99,168
SELECTED RATIOS
Annualized return on avg assets			.83	%			.88	%				.87	%			.83	%			.80	%
Annualized return on avg assets, operating*			.85	%			.85	%				.78	%			.76	%			.78	%
Annualized return on avg common equity, operating*			11.14	%			11.57	%				10.69	%			10.27	%			10.44	%
Annualized return on avg tangible common equity, oper*			13.37	%			14.07	%				13.07	%			12.43	%			12.69	%
Average loans to average deposits			80.13	%			78.10	%				80.80	%			79.95	%			76.77	%
Taxable-equivalent net interest margin			3.70	%			3.68	%				3.68	%			3.81	%			3.79	%
Efficiency Ratio			70.24	%			68.31	%				67.73	%			70.43	%			69.40	%
^^includes acquisition charges of $246
CREDIT QUALITY
Allowance for loan losses (ALLL) as a % of total loans			.88	%			.88	%				.88	%			.87	%			.90	%
Nonperforming assets to tangible equity + ALLL			10.81	%			10.93	%				11.43	%			11.55	%			13.28	%
Nonperforming assets to total loans + ORE			1.32	%			1.34	%				1.40	%			1.40	%			1.66	%
Annualized QTD net charge-offs (recoveries) to total loans			(0.04	%			(0.03	%)				(0.02	%)			(0.002	%)			(0.03	%)
*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
BALANCE SHEET		Sept 30, 2016				June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Assets
Cash and cash equivalents		$	70,114			$	54,777			$	95,965			$	41,259			$	65,233
Securities available-for-sale			236,168				242,855				253,126				239,732				239,631
Securities held-to-maturity			6,000				6,025				6,851				7,092				7,233
Other investments			9,516				9,578				9,570				8,135				6,249
Total investment securities			251,684				258,458				269,547				254,959				253,113
Loans held for sale			9,437				8,937				6,095				3,974				1,058
Total loans			854,366				824,083				797,764				772,515				746,588
Allowance for loan losses			(7,481	)			(7,259	)			(6,982	)			(6,747	)			(6,734	)
Loans, net			846,885				816,824				790,782				765,768				739,854
Premises and equipment			33,427				33,502				33,353				33,623				33,610
Other Real Estate			4,670				4,716				4,363				3,083				4,104
Goodwill and other intangibles			15,596				15,696				15,796				15,891				14,490
Other assets			34,825				31,990				26,050				26,574				26,387
Total assets		$	1,266,638			$	1,224,900			$	1,241,951			$	1,145,131			$	1,137,849
Liabilities and Shareholders’ Equity
Non-interest bearing deposits		$	196,786			$	194,950			$	194,433			$	189,445			$	187,542
Interest-bearing deposits			875,003				837,413				846,672				727,250				776,298
Total deposits			1,071,789				1,032,363				1,041,105				916,695				963,840
Borrowings			68,000				68,000				78,976				110,321				58,986
Subordinated debentures			10,310				10,310				10,310				10,310				10,310
Other liabilities			3,881				3,929				4,363				4,369				3,091
Total liabilities			1,153,980				1,114,602				1,134,754				1,041,695				1,036,227
Total shareholders’ equity			112,658				110,298				107,197				103,436				101,622
Total liabilities and shareholders’ equity		$	1,266,638			$	1,224,900			$	1,241,951			$	1,145,131			$	1,137,849

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS STATEMENT		Three Months Ended
			9/30/16			6/30/16			3/31/16			12/31/15				9/30/15
Interest Income:
Loans, including fees		$	9,706		$	9,293		$	9,013		$	8,874			$	8,556
Investment securities			1,446			1,531			1,532			1,472				1,438
Accretion of purchase accounting adjustments			92			20			22			59				73
Other interest income			25			27			30			12				13
Total interest income			11,269			10,871			10,597			10,417				10,080
Interest Expense:
Deposits			962			813			701			657				693
Borrowings			160			149			193			131				100
Subordinated debentures			80			54			28			47				47
Accretion of purchase accounting adjustments			-			-			-			(31	)			(47	)
Total interest expense			1,202			1,016			922			804				793
Net interest income			10,067			9,855			9,675			9,613				9,287
Provision for loan losses			143			204			190			10				250
Net interest income after provision for loan losses			9,924			9,651			9,485			9,603				9,037
Non-interest Income:
Service charges on deposit accounts			606			604			637			674				737
Mortgage Income			1,399			1,184			645			245				341
Interchange Fee Income			666			681			644			650				611
Gain (loss) on securities, net			-			129			-			-				-
Gain on sale of premises and equipment			-			-			-			-				-
BEA award, net			-			-			-			152				-
Other charges and fees			428			363			557			182				293
Total non-interest income			3,099			2,961			2,483			1,903				1,982
Non-interest expense:
Salaries and employee benefits			5,645			5,400			5,149			4,670				4,628
Occupancy expense			1,209			1,110			1,073			1,107				1,136
FDIC premiums			254			257			244			243				241
Marketing			76			132			72			150				64
Amortization of core deposit intangibles			100			100			94			100				100
Other professional services			461			321			231			377				318
Other non-interest expense			1,671			1,601			1,532			1,628				1,490
Total Non-interest expense ^^			9,416			8,921			8,395			8,275				7,977
Earnings before income taxes			3,607			3,691			3,573			3,231				3,042
Income tax expense			1,049			1,042			969			873				815
Net earnings			2,558			2,649			2,604			2,358				2,227
Dividends and accretion on preferred stock			86			86			85			85				86
Net earnings available to common shareholders		$	2,472		$	2,563		$	2,519		$	2,273			$	2,141
Earnings per common share, diluted		$	0.45		$	0.47		$	0.46		$	0.42			$	0.39
Operating earnings per common share, diluted*		$	0.48		$	0.47		$	0.43		$	0.40			$	0.39
^^includes acquisition charges of $234 *See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
COMPOSITION OF LOANS		Sept 30, 2016				Percent of Total			June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015				Percent of Total
Commercial, financial and agricultural		$	121,963			14.1	%		$	118,924			$	126,381			$	129,197			$	123,872			16.6	%
Real estate – construction			104,644			12.1	%			101,439				100,386				99,161				85,769			11.5	%
Real estate – commercial			307,963			35.7	%			296,676				270,085				253,309				251,631			33.7	%
Real estate – residential			296,587			34.3	%			282,420				276,272				272,180				265,763			35.5	%
Lease Financing Receivable			2,211			0.3	%			2,642				2,645				2,650				2,303			0.3	%
Obligations of States & subdivisions			6,861			0.8	%			6,965				7,034				969				969			0.1	%
Consumer			14,137			1.6	%			15,017				14,961				15,049				16,281			2.2	%
Loans held for sale			9,437			1.1	%			8,937				6,095				3,974				1,058			0.1	%
Total loans		$	863,803			100	%		$	833,020			$	803,859			$	776,489			$	747,646			100	%
COMPOSITION OF DEPOSITS		Sept 30, 2016				Percent of Total			June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015				Percent of Total
Noninterest bearing		$	196,786			18.4	%		$	194,950			$	194,433			$	189,445			$	187,542			19.5	%
NOW and other			465,404			43.4	%			466,118				493,319				373,687				411,893			42.7	%
Money Market/Savings			187,228			17.5	%			174,740				169,733				174,090				181,861			18.9	%
Time Deposits of less than $100,000			78,785			7.4	%			72,389				72,295				73,865				75,022			7.8	%
Time Deposits of $100,000 or more			143,586			13.3	%			124,166				111,325				105,608				107,522			11.1	%
Total Deposits		$	1,071,789			100	%		$	1,032,363			$	1,041,105			$	916,695			$	963,840			100	%
ASSET QUALITY DATA		Sept 30, 2016							June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Nonaccrual loans		$	5,798						$	5,742			$	5,851			$	7,368			$	7,949
Loans past due 90 days and over			420							267				628				29				6
Total nonperforming loans			6,218							6,009				6,479				7,397				7,955
Other real estate			4,670							4,716				4,363				3,083				4,104
Nonaccrual securities			408							408				408				408				408
Total nonperforming assets		$	11,296						$	11,133			$	11,250			$	10,888			$	12,467
Nonperforming assets to total assets			.89	%						.91	%			.91	%			.95	%			1.10	%
Nonperforming assets to total loans + ORE			1.31	%						1.34	%			1.40	%			1.40	%			1.66	%
ALLL to nonperforming loans			120.31	%						120.80	%			107.80	%			91.21	%			84.65	%
ALLL to total loans			.88	%						.88	%			.88	%			.87	%			.90	%
Quarter-to-date net charge-offs (recoveries)		$	(79	)					$	(72	)		$	(48	)		$	(3	)		$	(65	)
Annualized QTD net chg/offs (recs) to loans			(0.04	%)						(0.03	%)			(0.02	%)			(0.002	%)			(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			September 30, 2016													June 30, 2016													March 31, 2016													December 31, 2015													September 30, 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			$	177,154			$	965			2.18	%				$	186,615			$	1,034			2.22	%				$	189,249			$	1,056			2.23	%				$	177,964			$	1,006			2.26	%				$	172,478			$	976			2.26	%
Tax-exempt securities				77,073				704			3.65	%					78,290				721			3.68	%					76,795				693			3.61	%					75,570				685			3.63	%					74,807				662			3.54	%
Total investment securities				254,227				1,669			2.63	%					264,905				1,755			2.65	%					266,044				1,749			2.63	%					253,534				1,691			2.67	%					247,285				1,638			2.65	%
Fed funds sold				10,356				25			0.97	%					9,902				27			1.09	%					12,395				30			0.97	%					405				1			0.99	%					5,502				13			0.95	%
Int bearing deposits in other banks				11,961				16			0.54	%					12,522				20			0.64	%					20,909				20			0.38	%					21,601				25			0.46	%					20,613				25			0.49	%
Loans				836,931				9,798			4.68	%					809,806				9,313			4.60	%					779,418				9,035			4.64	%					757,036				8,933			4.72	%					731,818				8,629			4.72	%
Total Interest earning assets				1,113,475				11,508			4.13	%					1,097,135				11,115			4.05	%					1,078,766				10,834			4.02	%					1,032,576				10,650			4.13	%					1,005,218				10,305			4.10	%
Other assets				119,559													113,572													117,562													99,348													104,726
Total assets			$	1,233,034												$	1,210,707												$	1,196,328												$	1,131,924												$	1,109,944
Interest-bearing liabilities:
Deposits			$	850,442			$	962			0.45	%				$	843,771			$	813			0.39	%				$	777,692			$	701			0.36	%				$	752,098			$	626			0.33	%				$	759,939			$	646			0.34	%
Repo				5,000				49			3.92	%					5,000				48			3.84	%					5,000				48			3.84	%					5,000				48			3.84	%					5,000				48			3.84	%
Fed funds purchased				1,926				5			1.04	%					2,894				8			1.11	%					782				2			1.02	%					1,984				6			1.21	%					661				2			1.21	%
FHLB				55,337				106			0.77	%					42,962				93			0.87	%					106,352				143			0.54	%					60,961				77			0.51	%					37,716				50			0.53	%
Subordinated debentures				10,310				80			3.10	%					10,310				54			2.10	%					10,310				28			1.09	%					10,310				47			1.82	%					10,310				47			1.82	%
Total interest bearing liabilities				923,015				1,202			0.52	%					904,937				1,016			0.45	%					900,136				922			0.41	%					830,353				804			0.39	%					813,626				793			0.39	%
Other liabilities				198,889													200,004													191,914													200,326													197,150
Shareholders' equity				111,130													105,766													104,278													101,245													99,168
Total liabilities and shareholders' equity			$	1,233,034												$	1,210,707												$	1,196,328												$	1,131,924												$	1,109,944
Net interest income (TE)							$	10,306			3.61	%								$	10,099			3.60	%								$	9,912			3.61	%								$	9,846			3.74	%								$	9,512			3.71	%
Net interest margin											3.70	%												3.68	%												3.68	%												3.81	%												3.79	%
Core net interest margin*											3.66	%												3.67	%												3.66	%												3.77	%												3.73	%

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		Sept 30, 2016				June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Book value per common share		$	17.60			$	17.15			$	16.58			$	16.05			$	15.72
Effect of intangible assets per share			2.87				2.89				2.91				2.95				2.70
Tangible book value per common share		$	14.73			$	14.26			$	13.67			$	13.10			$	13.02
Diluted earnings per share		$	0.45			$	0.47			$	0.46			$	0.42			$	0.39
Effect of gain on debit card conversion, after-tax			-				-				(0.03	)			-				-
Effect of gain on sale of bank premises, after-tax			-				-				-				-				-
Effect of BAE, after-tax			-				-				-				(0.02	)			-
Effect of acquisition charges, after-tax			0.03				-				-				-				-
Diluted earnings per share, operating		$	0.48			$	0.47			$	0.43			$	0.40			$	0.39
		Three Months Ended
Average Balance Sheet Data		Sept 30, 2016				June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Total average assets A		$	1,233,034			$	1,210,707			$	1,196,328			$	1,131,924			$	1,109,944
Total equity		$	111,130			$	105,766			$	104,278			$	101,245			$	99,168
Less preferred equity			17,123				17,123				17,123				17,123				17,123
Total common equity B			94,007				88,643				87,155				84,122				82,045
Less intangible assets			15,660				15,758				15,858				14,608				14,553
Tangible common equity C		$	78,347			$	72,885			$	71,297			$	69,514			$	67,492
		Three Months Ended
Core Net Interest Margin		Sept 30, 2016				June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Net interest income (TE)		$	10,306			$	10,099			$	9,912			$	9,846			$	9,512
Less purchase accounting adjustments			92				20				22				90				120
Net interest income, net of purchase accounting adj D		$	10,214			$	10,079			$	9,890			$	9,756			$	9,392
Total average earning assets		$	1,113,475			$	1,097,135			$	1,078,766			$	1,032,576			$	1,005,218
Add average balance of loan valuation discount			1,484				1,504				1,526				1,583				1,657
Avg earning assets, excluding loan valuation discount E		$	1,114,959			$	1,098,639			$	1,080,292			$	1,034,159			$	1,006,875
Core net interest margin D/E			3.66	%			3.67	%			3.66	%			3.77	%			3.73	%
		Three Months Ended
Return Ratios		Sept 30, 2016				June 30, 2016				Mar 31, 2016				Dec 31, 2015				Sept 30, 2015
Net earnings F		$	2,558			$	2,649			$	2,604			$	2,358			$	2,227
Dividends and accretion on preferred stock			86				86				85				85				86
Net earnings available to common shareholders			2,472				2,563				2,519				2,273				2,141
Gain on debit card conversion, after-tax			-				-				(189	)			-				-
Gain on sale of premises and equipment, after-tax			-				-				-				-				-
BAE, after-tax			-				-				-				(112	)			-
Acquisition charges, after-tax			146				-				-				-				-
Net earnings available to common shareholders, oper G		$	2,618			$	2,563			$	2,330			$	2,161			$	2,141
Annualized return on avg assets F/A			.83	%			.88	%			.87	%			.83	%			.80	%
Annualized return on avg assets, oper G/A			.85	%			.85	%			.78	%			.76	%			.78	%
Annualized return on avg common equity, oper G/B			11.14	%			11.57	%			10.69	%			10.27	%			10.44	%
Annualized return on avg tangible common equity, oper G/C			13.37	%			14.07	%			13.07	%			12.43	%			12.69	%

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/20161014005132/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.

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First Bancshares (FBMS) Reports Q3 EPS of $0.45October 14, 2016 8:48 AM