Exhibit 99.1

The First Bancshares, Inc. Reports Results for First Quarter ended March 31, 2020;

Declares Quarterly Dividend

HATTIESBURG, Miss., April 29, 2020 – The First Bancshares, Inc. (“FBMS” or “the Company”) (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today an increase of 8.9% in net income available to common shareholders for the quarter ended March 31, 2020.

Highlights for the Quarter:

· On December 18, 2019, the Company announced the signing of an Agreement and Plan of Merger with Southwest Georgia Financial Corporation (“SGB”), parent company of Southwest Georgia Bank, headquartered in Moultrie, GA. During the quarter ended March 31, 2020, all regulatory and shareholder approvals were received. Subsequent to quarter end, the closing was effective April 3, 2020.

· Excluding loans acquired from acquisitions that closed in 2019, average loans increased $11.8 million, or 1.9% on an annualized basis for the sequential quarter comparison.

· Excluding deposits acquired from acquisitions that closed in 2019, average deposits increased $114.3 million, or 15.4% on an annualized basis for the sequential quarter comparison.

· Net interest income for the first quarter of 2020 was $34.1 million, an increase of $6.9 million, or 25.6% when compared to the first quarter of 2019.

· Net interest income for the first quarter of 2020 was $34.1 million, an increase of $0.6 million, or 1.9% when compared to the fourth quarter of 2019.

· Provision for loan losses totaled $7.1 million for the quarter of which $5.6 million was related to COVID-19 as compared to $0.9 million for the sequential quarter comparison.

· Pre-tax, pre-provision operating earnings which excludes acquisition charges and treasury awards increased 29.9% to $17.8 million for the quarter ended March 31, 2020 as compared to $13.7 million for the first quarter of 2019.

· Pre-tax, pre-provision operating earnings which excludes acquisition charges and treasury awards increased 1.1% to $17.8 million for the quarter ended March 31, 2020 as compared $17.6 million for the fourth quarter of 2019.

· Due to the current economic environment, the allowance for loan losses increased 50% to $20.8 million or 0.80% of total loans at March 31, 2020 as compared to $13.9 million or 0.53% of total loans at December 31, 2019. The Company also has $10.8 million in credit marks associated with acquired loan portfolios and does not include credit marks for the SGB loan portfolio.

· The Company elected to delay the adoption of the Current Expected Credit Losses (“CECL”) afforded through the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

M. Ray “Hoppy” Cole, President and Chief Executive Officer, commented, “I am very proud of how our team members have responded to our client’s needs in this volatile and uncertain time. They have worked long hours, and have adapted to rapidly changing circumstances. I appreciate their personal sacrifice and commitment to our Company’s success.  

In light of the current economic environment, I am also pleased that our Company had another strong quarter. We experienced solid loan growth and strong deposit growth. Net interest income and Pre- tax, Pre-Provision earnings improved year over year and in sequential quarterly comparison.

We are excited about the merger with SGB. SGB builds additional market share for our Company in Georgia adding approximately $550 Million in assets serving the Moultrie, Valdosta and Tifton markets. SGB provides additional diversification to our loan portfolio and has a stable, core funded deposit base. We are thrilled to add their team of highly regarded community bankers to our group. As a result of the merger, our combined company now has approximately $4.5 billion in assets and 85 locations in 5 states.”

COVID-19

The impacts of the COVID-19 pandemic on the economy and the banking industry are rapidly evolving and the future effects are unknown at this time. The Company is working to adapt to the changing environment and proactively plan for contingencies. To that end, the Company has and is taking steps to protect the health of our employees and to work with our customers experiencing difficulties as a result of this virus. The Company has many non-branch personnel working remotely. All of our branches are open and we are servicing our clients with limited lobby access by appointment only. We have also been working through loan modifications and payment deferral programs to assist affected customers, and have increased our allowance for loan and lease losses.

Our staff has been working nonstop to assist clients with payment modifications and processing of Paycheck Protection Program (“PPP”) applications with the United States Small Business Administration (the “SBA”). As of April 24, 2020, we have 1,660 PPP loans approved through the SBA for $199.3 million and have processed payment modifications on 926 loans with principal balances of $401.5 million, representing 15% of total portfolio dollars.

As a result of the Company’s immediate response to COVID-19, including loan modifications/payment deferral programs and the Paycheck Protection Program, as well as acquisition and integration of SGB, and increased uncertainty related to certain judgments and estimates, the Company has elected to temporarily defer or suspend the application of two provisions of U.S. Generally Accepted Accounting Principles (GAAP), as allowed by the CARES Act, which was signed into law by the President on March 27, 2020.  Sections 4013 and 4014 of the CARES Act provide the Company with temporary relief from troubled debt restructurings and from CECL, which the Company believes prudent to elect in these challenging times to allow us time to provide consistent, high-quality financial information to our investors and other stakeholders.

For additional details related to our response and potential effects of COVID-19, see investor presentation filed and available under presentations and press releases included in the investor relations section of the company’s website: www.thefirstbank.com.

Quarterly Earnings

Net income available to common shareholders totaled $8.3 million for the quarter ended March 31, 2020, an increase of $0.7 million, or 8.9%, compared to $7.6 million for the quarter ended March 31, 2019, and a decrease of $3.5 million, compared to the fourth quarter of 2019.

Pre-tax, pre-provision operating earnings, which exclude acquisition charges and treasury awards, increased 29.9% to $17.8 million for the quarter ended March 31, 2020 as compared to $13.7 million for the first quarter of 2019 and increased 1.1% to $17.8 million for the quarter ended March 31, 2020 as compared $17.6 million for the fourth quarter of 2019.

Provision for loan losses totaled $7.1 million for the quarter ended March 31, 2020, an increase of $6.0 million, or 532% as compared to $1.1 million for the first quarter of 2019 and an increase of $6.3 million, or 736% as compared to $0.9 million for the fourth quarter of 2019. $5.6 million of the $7.1 million provision for loan loss expense for the quarter ended March 31, 2020 was related to anticipated economic effects of COVID-19.

Operating net earnings decreased 10.5%, or $1.0 million, for the quarter ended March 31, 2020, totaling $8.9 million, as compared to $9.9 million for the first quarter of 2019, and decreased $4.3 million, or 32.5%, as compared to $13.2 million for the fourth quarter of 2019. Operating net earnings for the first quarter of 2020 excludes merger-related costs of $0.6 million, net of tax. Operating net earnings for the first quarter of 2019 excludes merger-related costs of $2.5 million, net of tax, and income in the form of a financial assistance grant from the U. S. Department of Treasury of $0.2 million, net of tax. Operating net earnings for the fourth quarter of 2019 excludes merger-related costs of $1.8 million, net of tax and income in the form of financial assistance grant from the U. S. Department of Treasury of $0.5 million, net of tax.

Earnings Per Share

For the first quarter of 2020, fully diluted earnings per share were $0.44, compared to $0.48 for the first quarter of 2019 and $0.64 for the fourth quarter of 2019.

Excluding the impact of the merger-related costs and income described above, fully diluted operating earnings per share for the first quarter of 2020 were $0.47 as compared to $0.63 for the first quarter of 2019, and $0.72 for the fourth quarter of 2019.

The additional provision for loan losses expense of $5.6 million, or $4.3 million net of tax, for the quarter ended March 31, 2020, which is primarily attributable to the COVID-19 pandemic, accounted for $0.23 in fully diluted earnings per share.

Fully diluted earnings per share for the quarter ended March 31, 2020 include the issuance of 2,377,501 shares of our common stock during the first quarter of 2019 in association with the acquisition of FPB Financial Corp (“FPB”) and the issuance of 1,682,889 shares of our common stock during the fourth quarter of 2019 in association with the acquisition of First Florida Bancorp, Inc. (“FFB”). Fully diluted earnings per share for the quarter ended March 31, 2020 include the purchase by the Company of 168,188 shares throughout the calendar year 2019.

Fully diluted earnings per share for the quarter ended March 31, 2019 include the issuance of 2,377,501 shares of our common stock during the first quarter of 2019 in association with the acquisition of FPB Financial Corp (“FPB”).

Balance Sheet

Consolidated assets increased $119.9 million to $4.062 billion at March 31, 2020 from $3.942 billion at December 31, 2019. During the first quarter of 2020, cash and cash equivalents increased $117.9 due to increased deposits of $201.3 million. Borrowings were reduced by $98.1 million as compared to December 31, 2019.

Total average loans were $2.602 billion for the quarter ended March 31, 2020, as compared to $2.513 billion for the quarter ended December 31, 2019, and $2.167 billion for the quarter ended March 31, 2019, representing an increase of $89.8 million, or 3.6%, for the sequential quarter comparison, and an increase of $434.8 million, or 20.0%, in prior year quarterly comparison. The acquisitions of FPB and FFB accounted for $390.4 million, net of fair value marks, of the total increase in average loans as compared to the first quarter of 2019. The acquisition of FFB accounted for $78.0 million, net of fair value marks, of the total increase in average loans as compared to the fourth quarter of 2019.

Excluding the acquired loans, average loans increased $11.8 million, or 0.5% for the sequential quarter comparison. Excluding the acquired loans, average loans increased $44.4 million, or 2.0% as compared to the quarter ended March 31, 2019.

Total average deposits were $3.187 billion for the quarter ended March 31, 2020, as compared to $2.963 billion for the quarter ended December 31, 2019, and $2.600 billion for the quarter ended March 31, 2019, representing an increase of $223.3 million, or 7.5%, for the sequential quarter comparison, and an increase of $587.1 million, or 22.6%, in prior year quarterly comparison. The acquisitions of FPB and FFB accounted for $535.7 million of the total increase in average deposits as compared to the first quarter of 2019. The acquisition of FFB accounted for $109.0 million, net of fair value marks, of the total increase in average deposits as compared to the fourth quarter of 2019.

Excluding the acquired deposits, average deposits increased $114.3 million, or 3.9% for the sequential quarter comparison. Excluding the acquired deposits, average deposits increased $51.4 million, or 2.0% as compared to the quarter ended March 31, 2019.

The Company implemented Deposit Reclassification at the beginning of 2020. This program reclassifies noninterest bearing deposits and NOW deposit balances to money market accounts. This program reduces our reserve balance required at the Federal Reserve Bank of Atlanta which provides additional funds for liquidity and lending. At quarter end March 31, 2020, $409.3 million in noninterest deposit balances and $643.5 million in NOW deposit accounts were reclassified as money market accounts.

Asset Quality

Nonperforming assets totaled $47.1 million at March 31, 2020, a decrease of $1.3 million compared to $48.4 million at December 31, 2019 and an increase of $7.9 million compared to $39.2 million at March 31, 2019. Nonaccrual loans and loans past due 90 days and over still accruing increased $12.7 million as compared to March 31, 2019, while other real estate decreased $4.6 million as compared to March 31, 2019.

The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.80% at March 31, 2020, 0.53% at December 31, 2019 and 0.48% at March 31, 2019. This increase included a provision for loan losses related to COVID-19 of $5.6 million, or 0.23% of the increase in the ratio of ALLL to total loans. The ratio of annualized net charge-offs (recoveries) to total loans was 0.03% for the quarter ended March 31, 2020 compared to (0.002%) for the quarter ended December 31, 2019 and (0.008%) for the quarter ended March 31, 2019.

First Quarter 2020 vs. First Quarter 2019 Earnings Comparison

Net income available to common shareholders for the first quarter of 2020 totaled $8.3 million compared to $7.6 million for the first quarter of 2019, an increase of $0.7 million or 8.9%.

Operating net earnings for the first quarter of 2020 totaled $8.9 million compared to $9.9 million for the first quarter of 2019, a decrease of $1.0 million or 10.5%. The net after tax provision change in quarterly comparison totaled $4.6 million. The calculation of operating net earnings excludes the merger-related costs and the income for each quarter as discussed above.

Net interest income for the first quarter of 2020 was $34.1 million, an increase of $6.9 million when compared to the first quarter of 2019. The increase was due to interest income earned on a higher volume of loans. Fully tax equivalent (“FTE”) net interest income totaled $34.5 million and $27.4 million for the first quarter of 2020 and 2019, respectively. FTE net interest income increased $7.1 million in the prior year quarterly comparison due to increased loan volume. Purchase accounting adjustments accounted for $1.2 million of the difference in net interest income for the first quarter comparisons. First quarter 2020 FTE net interest margin of 3.93% included 28 basis points related to purchase accounting adjustments compared to 3.89% for the same quarter in 2019, which included 18 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 6 basis points in prior year quarterly comparison.

Non-interest income increased $0.9 million for the first quarter of 2020 as compared to the first quarter of 2019 due to increased service charges and interchange fee income of $0.4 million, which increase is primarily attributable to the increase in our deposit base due to the acquisitions. Mortgage income increased $0.7 million in prior year quarterly comparison.

First quarter 2020 non-interest expense was $23.4 million, an increase of $1.5 million, or 7.1% as compared to the first quarter of 2019. Excluding the net decrease in acquisition charges of $2.4 million for the quarterly comparison, non-interest expense increased $4.0 million in the first quarter of 2020, of which $3.1 million was attributable to the operations of FPB and FFB, as compared to first quarter of 2019.

Investment securities totaled $788.9 million, or 19.4% of total assets at March 31, 2020, versus $620.5 million, or 17.6% of total assets at March 31, 2019. The average balance of investment securities increased $231.4 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities decreased 38 basis points to 2.94% from 3.32% in prior year quarterly comparison. The investment portfolio had a net unrealized gain of $21.4 million at March 31, 2020 as compared to a net unrealized gain of $5.5 million at March 31, 2019.

The FTE average yield on all earning assets increased 2 basis points in prior year quarterly comparison, from 4.76% for the first quarter of 2019 to 4.78% for the first quarter of 2020. Average interest expense decreased 20 basis points from 1.12% for the first quarter of 2019 to 0.92% for the first quarter of 2020. Cost of all deposits averaged 76 basis points for the first quarter of 2020 compared to 74 basis points for the first quarter of 2019.

First Quarter 2020 vs Fourth Quarter 2019 Earnings Comparison

Net income available to common shareholders for the first quarter of 2020 decreased $3.5 million to $8.3 million compared to $11.9 million for the fourth quarter of 2019. For the first quarter of 2020, fully diluted earnings per share were $0.44, compared to $0.64 for the fourth quarter of 2019.

Operating net earnings for the first quarter of 2020 compared to the fourth quarter of 2019 decreased $4.3 million or 32.5% from $13.2 million to $8.9 million. The net after tax provision change in the quarterly comparison totaled $4.8 million. Operating net earnings excludes the merger-related costs and the income discussed above. Fully diluted operating earnings per share for the first quarter of 2020 were $0.47 as compared to $0.72 for the fourth quarter of 2019.

Net interest income for the first quarter of 2020 was $34.1 million as compared to $33.4 million for the fourth quarter of 2019, an increase of $0.6 million. FTE net interest income increased $0.7 million to $34.5 million from $33.8 million in sequential-quarter comparison. First quarter 2020 FTE net interest margin of 3.93% included 28 basis points related to purchase accounting adjustments compared to 4.06% for the fourth quarter in 2019, which included 26 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 15 basis points in sequential quarter comparison.

Investment securities totaled $788.9 million, or 19.4% of total assets at March 31, 2020, versus $791.8 million, or 20.1% of total assets at December 31, 2019. The average balance of investment securities increased $40.1 million in sequential-quarter comparison, primarily as a result of the acquisition of FFB. The average tax equivalent yield on investment securities decreased 12 basis points to 2.94% from 3.06% in sequential-quarter comparison. The investment portfolio had a net unrealized gain of $21.4 million at March 31, 2020 as compared to a net unrealized gain of $13.5 million at December 31, 2019.

The FTE average yield on all earning assets decreased in sequential-quarter comparison from 4.90% to 4.78%. Average interest expense decreased 19 basis points from 1.11% for the fourth quarter of 2019 to 0.92% for the first quarter of 2020. Cost of all deposits averaged 76 basis points for the first quarter of 2020 compared to 73 basis points for the fourth quarter of 2019.

Non-interest income decreased $1.1 million in sequential-quarter comparison resulting from decreased income in the form of financial assistance grant from the U. S. Department of Treasury in the amount of $0.7 million as well as decreased mortgage income in the amount of $0.2 million.

Non-interest expense for the first quarter of 2020 was $23.4 million compared to $25.0 million for the fourth quarter of 2019. Excluding acquisition charges for each quarter, non-interest expense remained constant at $22.7 million. First quarter 2020 included $0.6 million in increased expenses associated with FFB which was acquired in the fourth quarter.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.10 per share to be paid on its common stock on May 26, 2020 to shareholders of record as of the close of business on May 11, 2020.

About The First Bancshares, Inc.

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

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. This press release includes operating net earnings, pre-tax, pre-provision operating earnings, operating earnings per share, fully tax equivalent net interest income, total tangible common equity, tangible book value per common share and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).

Forward Looking Statements

This news release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential,” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risk and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) changes in economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations; (3) interest rate risk; (4) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (5) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (6) changes in management’s plans for the future; (7) credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values, or competition; (8) changes in accounting principles, policies, or guidelines; (9) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (10) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (11) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (12) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. 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.

Statements about the potential effects of the COVID-19 pandemic on the Company’s assets, business, liquidity, financial condition, prospects, and results of operations may constitute forward-looking statements and are subject to the risks that the actual effects may differ, possible materially, from what is reflected in these forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the depth, dispersion and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, employees, third parties and the Company.

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
EARNINGS DATA	Quarter Ended 3/31/20			Quarter Ended 12/31/19			Quarter Ended 9/30/19			Quarter Ended 6/30/19			Quarter Ended 3/31/19
Total Interest Income	$	41,598		$	40,444		$	37,241		$	37,571		$	33,273
Total Interest Expense		7,533			7,000			6,782			6,799			6,142
Net Interest Income		34,065			33,444			30,459			30,772			27,131
FTE net interest income*		34,526			33,847			30,739			31,040			27,388
Provision for loan losses		7,102			850			974			791			1,123
Non-interest income		6,474			7,574			7,103			6,716			5,554
Non-interest expense		23,439			24,960			20,825			20,891			21,893
Earnings before income taxes		9,998			15,208			15,763			15,806			9,669
Income tax expense		1,687			3,353			3,491			3,823			2,034
Net income available to common shareholders	$	8,311		$	11,855		$	12,272		$	11,983		$	7,635
PER COMMON SHARE DATA
Basic earnings per share	$	0.44		$	0.65		$	0.72		$	0.70		$	0.49
Diluted earnings per share		0.44			0.64			0.71			0.69			0.48
Diluted earnings per share, operating*		0.47			0.72			0.74			0.70			0.63
Quarterly dividends per share		.10			.08			.08			.08			.07
Book value per common share at end of period		29.49			28.91			27.92			27.22			26.30
Tangible book value per common share at period end*		19.52			18.87			19.39			18.72			17.79
Market price at end of period		19.07			35.52			32.30			30.34			30.90
Shares outstanding at period end		18,851,955			18,802,266			17,123,625			17,129,915			17,272,731
Weighted average shares outstanding:
Basic		18,818,115			18,241,244			17,131,080			17,182,049			15,646,476
Diluted		18,942,129			18,398,609			17,267,953			17,311,626			15,770,622
AVERAGE BALANCE SHEET DATA
Total assets	$	3,990,493		$	3,767,587		$	3,439,202		$	3,460,394		$	3,181,761
Loans and leases		2,602,340			2,512,524			2,343,392			2,337,583			2,167,495
Total deposits		3,186,943			2,963,603			2,765,816			2,862,653			2,599,842
Total common equity		547,309			518,070			470,024			454,965			390,217
Total tangible common equity*		358,889			346,742			324,619			308,303			262,553
SELECTED RATIOS
Annualized return on avg assets (ROA)		0.83	%		1.26	%		1.43	%		1.39	%		0.96	%
Annualized return on avg assets, operating*		0.89	%		1.40	%		1.49	%		1.39	%		1.25	%
Annualized pre-tax, pre-provision, operating*		1.79	%		1.87	%		2.03	%		1.93	%		1.73	%
Annualized return on avg common equity, operating*		6.50	%		10.16	%		10.91	%		10.60	%		10.18	%
Annualized return on avg tangible common equity, oper*		9.91	%		15.18	%		15.80	%		15.64	%		15.13	%
Average loans to average deposits		81.66	%		84.78	%		84.73	%		81.66	%		83.37	%
FTE Net Interest Margin*		3.93	%		4.06	%		4.05	%		4.07	%		3.89	%
Efficiency Ratio		57.17	%		60.26	%		55.03	%		55.33	%		66.46	%
Efficiency Ratio, operating*		55.36	%		55.67	%		53.17	%		55.09	%		57.21	%
CREDIT QUALITY
Allowance for loan losses (ALLL) as a % of total loans		0.80	%		0.53	%		0.56	%		0.51	%		0.48	%
Nonperforming assets to tangible equity + ALLL		12.12	%		13.13	%		13.71	%		11.42	%		12.32	%
Nonperforming assets to total loans + OREO		1.81	%		1.86	%		2.00	%		1.61	%		1.67	%
Annualized QTD net charge-offs (recoveries) to total loans		0.03	%		(0.002	%)		0.004	%		(0.01	%)		(0.008	%)

*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
BALANCE SHEET	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Assets
Cash and cash equivalents	$	286,759		$	168,864		$	159,990		$	165,984		$	248,576
Securities available-for-sale		762,977			765,087			612,002			598,607			598,796
Securities held-to-maturity		-			-			6,328			6,396			6,397
Other investments		25,911			26,690			22,517			17,819			15.298
Total investment securities		788,888			791,777			640,847			622,822			620,491
Loans held for sale		13,288			10,810			11,104			8,597			6,238
Total loans		2,602,288			2,600,358			2,349,986			2,351,998			2,335,348
Allowance for loan losses		(20,804	)		(13,908	)		(13,043	)		(12,091	)		(11,235	)
Loans, net		2,581,484			2,586,450			2,336,943			2,339,907			2,324,113
Premises and equipment		108,013			104,980			96,726			97,115			94,624
Other Real Estate Owned		6,974			7,299			9,974			11,205			11,588
Goodwill and other intangibles		187,927			188,865			146,091			145,649			147,150
Other assets		88,468			82,818			80,256			81,305			80,199
Total assets	$	4,061,801		$	3,941,863		$	3,481,931		$	3,472,584		$	3,532,979
Liabilities and Shareholders’ Equity
Non-interest bearing deposits^	$	340,606		$	723,208		$	642,054		$	645,838		$	655,900
Interest-bearing deposits		2,937,188			2,353,325			2,119,181			2,185,362			2,258,418
Total deposits		3,277,794			3,076,533			2,761,345			2,831,200			2,914,318
Borrowings		116,180			214,319			136,250			71,250			61,750
Subordinated debentures		80,717			80,678			80,639			80,600			80,561
Other liabilities		31,184			26,675			25,609			23,253			22,003
Total liabilities		3,505,875			3,398,205			3,003,843			3,006,303			3,078,632
Total shareholders’ equity		555,926			543,658			478,088			466,281			454,347
Total liabilities and shareholders’ equity	$	4,061,801		$	3,941,863		$	3,481,931		$	3,472,584		$	3,532,979

^Reclassified $409,333 to interest-bearing deposits

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
	Three Months Ended
EARNINGS STATEMENT	3/31/20			12/30/19			9/30/19			6/30/19			3/31/19
Interest Income:
Loans, including fees	$	34,290		$	33,556		$	31,279		$	30,912		$	27,569
Investment securities		5,304			5,298			4,752			5,017			4,339
Accretion of purchase accounting adjustments		1,715			1,553			1,201			1,552			1,235
Other interest income		289			37			9			90			130
Total interest income		41,598			40,444			37,241			37,571			33,273
Interest Expense:
Deposits		6,034			5,489			5,156			5,377			4,275
Borrowings		917			771			451			288			546
Subordinated debentures		1,203			1,213			1,270			1,188			1,233
Accretion of purchase accounting adjustments		(621	)		(473	)		(95	)		(54	)		88
Total interest expense		7,533			7,000			6,782			6,799			6,142
Net interest income		34,065			33,444			30,459			30,772			27,131
Provision for loan losses		7,102			850			974			791			1,123
Net interest income after provision for loan losses		26,963			32,594			29,485			29,981			26,008
Non-interest Income:
Service charges on deposit accounts		1,914			2,110			1,979			1,918			1,831
Mortgage Income		1,567			1,720			1,800			1,559			909
Interchange Fee Income		1,986			2,075			2,252			2,045			1,652
Gain (loss) on securities, net		174			(9	)		57			36			38
Financial Assistance Award/Bank Enterprise Award		-			714			-			-			233
Other charges and fees		833			964			1,015			1,158			891
Total non-interest income		6,474			7,574			7,103			6,716			5,554
Non-interest expense (benefit):
Salaries and employee benefits		13,228			13,092			11,612			11,615			10,697
Occupancy expense		2,918			3,190			2,632			2,532			2,442
FDIC/OCC premiums		147			147			111			426			(52	)
Marketing		213			248			62			160			175
Amortization of core deposit intangibles		938			907			796			796			716
Other professional services		874			951			1,140			980			920
Acquisition charges		740			2,300			705			91			3,179
Other non-interest expense		4,381			4,125			3,767			4,291			3,816
Total Non-interest expense		23,439			24,960			20,825			20,891			21,893
Earnings before income taxes		9,998			15,208			15,763			15,806			9,669
Income tax expense		1,687			3,353			3,491			3,823			2,034
Net income available to common shareholders	$	8,311		$	11,855		$	12,272		$	11,983		$	7,635
Diluted earnings per common share	$	0.44		$	0.64		$	0.71		$	0.69		$	0.48
Diluted earnings per common share, operating*	$	0.47		$	0.72		$	0.74		$	0.70		$	0.63

*See reconciliation of Non-GAAP financial measures          

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands except per share data)
	Year to Date
EARNINGS STATEMENT	2020			2019
Interest Income:
Loans, including fees	$	34,290		$	27,569
Investment securities		5,304			4,339
Accretion of purchase accounting adjustments		1,715			1,235
Other interest income		289			130
Total interest income		41,598			33,273
Interest Expense:
Deposits		6,034			4,275
Borrowings		917			546
Subordinated debentures		1,203			1,233
Amortization of purchase accounting adjustments		(621	)		88
Total interest expense		7,533			6,142
Net interest income		34,065			27,131
Provision for loan losses		7,102			1,123
Net interest income after provision for loan losses		26,963			26,008
Non-interest Income:
Service charges on deposit accounts		1,914			1,831
Mortgage Income		1,567			909
Interchange Fee Income		1,986			1,652
Gain (loss) on securities, net		174			38
Financial Assistance Award/Bank Enterprise Award		-			233
Other charges and fees		833			891
Total non-interest income		6,474			5,554
Non-interest expense:
Salaries and employee benefits		13,228			10,697
Occupancy expense		2,918			2,442
FDIC/OCC premiums		147			(52	)
Marketing		213			175
Amortization of core deposit intangibles		938			716
Other professional services		874			920
Acquisition charges		740			3,179
Other non-interest expense		4,381			3,816
Total Non-interest expense		23,439			21,893
Earnings before income taxes		9,998			9,669
Income tax expense		1,687			2,034
Net income available to common shareholders	$	8,311		$	7,635
Diluted earnings per common share	$	0.44		$	0.48
Diluted earnings per common share, operating*	$	0.47		$	0.63

*See reconciliation of Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Condensed Consolidated Financial Information (unaudited) (in thousands)
COMPOSITION OF LOANS	Mar 31, 2020			Percent of Total			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Percent of Total
Commercial, financial and agricultural	$	327,979			12.5	%	$	332,600		$	338,584		$	342,535		$	340,333			14.5	%
Real estate – construction		334,707			12.8	%		359,195			284,103			352,826			348,788			14.9	%
Real estate – commercial		1,048,854			40.1	%		1,028,012			943,218			881,831			857,918			36.6	%
Real estate – residential		828,378			31.7	%		814,282			724,860			713,350			722,611			30.9	%
Lease Financing Receivable		3,526			0.1	%		3,095			3,239			3,616			3,060			0.1	%
Obligations of States & subdivisions		18,218			0.7	%		20,716			16,545			17,192			13,734			0.6	%
Consumer		40,626			1.6	%		42,458			39,437			40,648			48,904			2.1	%
Loans held for sale		13,288			0.5	%		10,810			11,104			8,597			6,238			0.3	%
Total loans	$	2,615,576			100	%	$	2,611,168		$	2,361,090		$	2,360,595		$	2,341,586			100	%
COMPOSITION OF DEPOSITS	Mar 31, 2020			Percent of Total			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Percent of Total
Noninterest bearing^	$	340,606			10.4	%	$	723,208		$	642,054		$	645,838		$	655,900			22.5	%
NOW and other^		478,526			14.6	%		941,598			926,704			999,881			1,062,112			36.4	%
Money Market/Savings^		1,826,973			55.7	%		750,010			651,539			645,611			647,783			22.2	%
Time Deposits of less than $250,000		462,808			14.1	%		479,386			401,549			408,164			414,281			14.2	%
Time Deposits of $250,000 or more		168,881			5.2	%		182,331			139,489			131,706			134,242			4.7	%
Total Deposits	$	3,277,794			100	%	$	3,076,533		$	2,761,345		$	2,831,200		$	2,914,318			100	%
Deposits Without Reclassification^	Mar 31, 2020			Percent of Total
Noninterest bearing	$	749,939			22.9	%
Now and other		1,122,027			34.2	%
Money Market/Savings		774,139			23.6	%
Time Deposits of less than $250,000		462,808			14.1	%
Time Deposits of $250,000 or more		168,881			5.2	%
Total Deposits	$	3,277,794			100	%
ASSET QUALITY DATA	Mar 31, 2020						Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Nonaccrual loans	$	37,751					$	38,393		$	35,175		$	25,608		$	26,502
Loans past due 90 days and over		2,393						2,715			2,116			989			943
Total nonperforming loans		40,144						41,108			37,291			26,597			27,445
Other real estate owned		6,974						7,299			9,974			11,205			11,588
Nonaccrual securities		-						-			52			208			208
Total nonperforming assets	$	47,118					$	48,407		$	47,317		$	38,010		$	39,241
Nonperforming assets to total assets		1.16	%					1.23	%		1.36	%		1.09	%		1.11	%
Nonperforming assets to total loans + OREO		1.81	%					1.86	%		2.00	%		1.61	%		1.67	%
ALLL to nonperforming loans		51.82	%					33.83	%		34.98	%		45.46	%		40.94	%
ALLL to total loans		0.80	%					0.53	%		0.56	%		0.51	%		0.48	%
Quarter-to-date net charge-offs (recs)	$	205					$	(15	)	$	23		$	(65	)	$	(47	)
Annualized QTD net chg-offs (recs) to loans		0.03	%					(0.002	%)		0.004	%		(0.01	%)		(0.008	%)

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, 2020							December 31, 2019							September 30, 2019							June 30, 2019							March 31, 2019
			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	$	560,613	$	3,944		2.81	%	$	556,004	$	4,108		2.96	%	$	494,184	$	3,926		3.18	%	$	497,988	$	4,227		3.40	%	$	435,576	$	3,581		3.29	%
Tax-exempt
securities		224,212		1,821		3.25	%		188,709		1,593		3.38	%		127,750		1,108		3.47	%		124,367		1,058		3.40	%		117,831		1,015		3.45	%
Total investment
securities		784,825		5,765		2.94	%		744,713		5,701		3.06	%		621,934		5,034		3.24	%		622,355		5,285		3.40	%		553,407		4,596		3.32	%
in other banks		129,978		289		0.89	%		80,612		37		0.18	%		71,165		7		0.04	%		89,936		90		0.40	%		94,778		130		0.55	%
Loans		2,602,340		36,005		5.53	%		2,512,524		35,109		5.59	%		2,343,392		32,480		5.54	%		2,337,583		32,464		5.56	%		2,167,495		28,804		5.32	%
Total Interest
earning assets		3,517,143		42,059		4.78	%		3,337,849		40,847		4.90	%		3,036,491		37,521		4.94	%		3,049,874		37,839		4.96	%		2,815,680		33,530		4.76	%
Other assets		473,350							429,738							402,711							410,520							366,081
Total assets	$	3,990,493						$	3,767,587						$	3,439,202						$	3,460,394						$	3,181,761
Interest-bearing
liabilities:
Deposits	$	3,042,529	$	5,413		0.71	%	$	2,263,299	$	5,016		0.89	%	$	2,140,419	$	5,061		0.95	%	$	2,231,462	$	5,323		0.95	%	$	2,024,718	$	4,363		0.86	%
Borrowed Funds		145,267		917		2.53	%		174,475		771		1.77	%		95,241		451		1.89	%		37,760		288		3.05	%		86,269		546		2.53	%
Subordinated
debentures		80,697		1,203		5.96	%		80,658		1,213		6.02	%		80,619		1,270		6.30	%		80,579		1,188		5.90	%		80,540		1,233		6.12	%
Total interest
bearing liabilities		3,268,493		7,533		0.92	%		2,518,432		7,000		1.11	%		2,316,279		6,782		1.17	%		2,349,801		6,799		1.16	%		2,191,527		6,142		1.12	%
Other liabilities		174,691							731,085							652,899							655,628							600,017
Shareholders' equity		547,309							518,070							470,024							454,965							390,217
Total liabilities and
shareholders'
equity	$	3,990,493						$	3,767,587						$	3,439,202						$	3,460,394						$	3,181,761
Net interest
income (FTE)*			$	34,526		3.86	%			$	33,847		3.78	%			$	30,739		3.77	%			$	31,040		3.81	%			$	27,388		3.64	%
Net interest margin (FTE)*						3.93	%						4.06	%						4.05	%						4.07	%						3.89	%
Core net interest
margin*						3.65	%						3.80	%						3.86	%						3.84	%						3.71	%

*See reconciliation for Non-GAAP financial measures

FIRST BANCSHARES, INC and SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)
	Three Months Ended
Per Common Share Data	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Book value per common share	$	29.49		$	28.91		$	27.92		$	27.22		$	26.30
Effect of intangible assets per share		9.97			10.04			8.53			8.50			8.51
Tangible book value per common share	$	19.52		$	18.87		$	19.39		$	18.72		$	17.79
Diluted earnings per share	$	0.44		$	0.64		$	0.71		$	0.69		$	0.48
Effect of acquisition charges		0.04			0.14			0.04			0.01			0.21
Tax on acquisition charges		(0.01	)		(0.03	)		(0.01	)		-			(0.05	)
Effect of gain on sale of securities		-			-			-			-			-
Tax on gain on sale		-			-			-			-			-
Effect of Treasury awards		-			(0.04	)		-			-			(0.01	)
Tax on Treasury awards		-			0.01			-			-			-
Diluted earnings per share, operating	$	0.47		$	0.72		$	0.74		$	0.70		$	0.63
	Year to Date
				2020						2019
Diluted earnings per share				$	0.44					$	0.48
Effect of acquisition charges					0.04						0.21
Tax on acquisition charges					(0.01	)					(0.05	)
Effect of gain on sale of securities					-						-
Tax on gain on sale					-						-
Effect of Treasury awards					-						(0.01	)
Tax on Treasury awards					-						-
Diluted earnings per share, operating				$	0.47					$	0.63
	Year to Date
				2020							2019
Net income available to common shareholders				$	8,311					$	7,635
Acquisition charges					740						3,179
Tax on acquisition charges					(164	)					(712	)
Gain on sale of securities					-						-
Tax on gain on sale					-						-
Treasury awards					-						(233	)
Tax on Treasury awards					-						59
Net earnings available to common shareholders, operating				$	8,887					$	9,928

		Three Months Ended
Average Balance Sheet Data		Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2019		Mar 31, 2019
Total average assets	A	$	3,990,493	$	3,767,587	$	3,439,202	$	3,460,394	$	3,181,761
Total average earning assets	B		3,517,143	$	3,337,849	$	3,036,492	$	3,049,874	$	2,815,680
					`
Common Equity	C	$	547,309	$	518,070	$	470,024	$	454,965	$	390,217
Less intangible assets			188,420		171,328		145,405		146,662		127,664
Tangible common equity	D	$	358,889	$	346,742	$	324,619	$	308,303	$	262,553

		Three Months Ended
Net Interest Income Fully Tax Equivalent		Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Net interest income	E	$	34,065		$	33,444		$	30,459		$	30,772		$	27,131
Tax-exempt investment income			(1,360	)		(1,190	)		(828	)		(790	)		(758	)
Taxable investment income			1,821			1,593			1,108			1,058			1,015
Net Interest Income Fully Tax Equivalent	F	$	34,526		$	33,847		$	30,739		$	31,040		$	27,388
Annualized Net Interest Margin	E/B		3.87	%		4.01	%		4.01	%		4.04	%		3.85	%
Annualized Net Interest Margin, Fully Tax Equivalent	F/B		3.93	%		4.06	%		4.05	%		4.07	%		3.89	%

		Three Months Ended
Core Net Interest Margin		Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Net interest income (FTE)		$	34,526		$	33,847		$	30,739		$	31,040		$	27,388
Less purchase accounting adjustments			2,336			2,026			1,296			1,607			1,147
Net interest income, net of purchase accounting adj	G	$	32,190		$	31,821		$	29,443		$	29,433		$	26,241
Total average earning assets		$	3,517,143		$	3,337,849		$	3,036,492		$	3,049,874		$	2,500,709
Add average balance of loan valuation discount			12,237			12,252			13,679			15,265			12.803
Avg earning assets, excluding loan valuation discount	H	$	3,529,380		$	3,350,101		$	3,050,171		$	3,065,139		$	2,513,511
Core net interest margin	G/H		3.65	%		3.80	%		3.86	%		3.84	%		3.84	%

		Three Months Ended
Efficiency Ratio		Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Operating Expense
Total non-interest expense		$	23,439		$	24,960		$	20,825		$	20,891		$	21,893
Pre-tax non-operating expenses			(740	)		(2,300	)		(705	)		(91	)		(3,179	)
Adjusted Operating Expense	I	$	22,699		$	22,660		$	20,120		$	20,800		$	18,714
Operating Revenue
Net interest income, FTE		$	34,526		$	33,847		$	30,739		$	31,040		$	27,388
Total non-interest income			6,474			7,574			7,103			6,716			5,554
Pre-tax non-operating items			-			(714	)		-			-			(233	)
Adjusted Operating Revenue	J	$	41,000		$	40,707		$	37,842		$	37,756		$	32,709
Efficiency Ratio, operating	I/J		55.36	%		55.67	%		53.17	%		55.09	%		57.21	%

		Three Months Ended
Return Ratios		Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019
Net income available to common shareholders	K	$	8,311		$	11,855		$	12,272		$	11,983		$	7,635
Acquisition charges			740			2,300			705			91			3,179
Tax on acquisition charges			(164	)		(461	)		(152	)		(23	)		(712	)
Gain on sale			-			-			-			-			-
Tax on gain on sale			-			-			-			-			-
Treasury awards			-			(714	)		-			-			(233	)
Tax on Treasury awards			-			181			-			-			59
Net earnings available to common shareholders, oper	L	$	8,887		$	13,161		$	12,825		$	12,051		$	9,928
Pre-Tax Pre-Provision Operating Earnings
Earnings before income taxes	L	$	9,998		$	15,208		$	15,763		$	15,806		$	9,669
Acquisition charges			740			2,300			705			91			3,179
Provision for loan losses			7,102			850			974			791			1,123
Treasury Awards			-			(714	)		-			-			(233	)
Pre-Tax, Pre-Provision Operating Earnings	M	$	17,840		$	17,644		$	17,442		$	16,688		$	13,738
Annualized return on avg assets	K/A		0.83	%		1.26	%		1.43	%		1.39	%		0.96	%
Annualized return on avg assets, oper	L/A		0.89	%		1.40	%		1.49	%		1.39	%		1.25	%
Annualized pre-tax, pre-provision, oper	M/A		1.79	%		1.87	%		2.03	%		1.93	%		1.73	%
Annualized return on avg common equity, oper	L/C		6.50	%		10.16	%		10.91	%		10.60	%		10.18	%
Annualized return on avg tangible common equity, oper	L/D		9.91	%		15.18	%		15.80	%		15.63	%		15.13	%
Mortgage Department
Net Interest Income after provision for loan losses		$	119		$	59		$	200		$	194		$	176
Loan fee income			1,567			1,720			1,800			1,559			909
Salaries and employee benefits			1,077			975			986			941			823
Other non-interest expense			152			164			134			140			154
Earnings before income taxes		$	457		$	640		$	880		$	672		$	108

CONTACT: For additional information, contact:

M. Ray “Hoppy” Cole

Chief Executive Officer

Dee Dee Lowery

Chief Financial Officer

(601) 268-8998