PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

PARENT COMPANY FINANCIAL INFORMATION

NOTE V - PARENT COMPANY FINANCIAL INFORMATION

The balance sheets, statements of income and cash flows for The First Bancshares, Inc. (parent company only) follow.

Condensed Balance Sheets

	December 31,
	2011		2010
Assets:
Cash and cash equivalents	$	6,391	$	11,819,433
Investment in subsidiary bank		69,263,750		54,659,166
Investments in statutory trusts		310,000		310,000
Other securities		100,000		100,000
Premises and equipment		368,623		368,623
Other		741,012		204,364
	$	70,789,776	$	67,461,586
Liabilities and Stockholders’ Equity:
Subordinated debentures	$	10,310,000	$	10,310,000
Other		54,495		53,501
Stockholders’ equity		60,425,281		57,098,085
	$	70,789,776	$	67,461,586

Condensed Statements of Income

	Years Ended December 31,
	2011			2010
Income:
Interest and dividends	$	5,626		$	799
Dividend income		530,000			650,000
Other		-			1,500
		535,626			652,299
Expenses:
Interest on borrowed funds		187,117			187,160
Legal		820,935			303,003
Other		313,754			135,028
		1,321,806			625,191
Income (loss) before income taxes and equity in undistributed income of subsidiary		(786,180	)		27,108
Income tax benefit		691,846			155,197
Income (loss) before equity in undistributed income of subsidiary		(94,334	)		182,305
Equity in undistributed income of subsidiary		2,965,772			2,366,439
Net income	$	2,871,438		$	2,548,744

Condensed Statements of Cash Flows

	Years Ended December 31,
	2011			2010
Cash flows from operating activities:
Net income	$	2,871,438		$	2,548,744
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed income of subsidiary		(2,965,772	)		(2,366,439	)
Restricted stock expense		119,320			12,610
Other, net		(542,585	)		(68,920	)
Net cash provided by (used in) operating activities		(517,599	)		125,995
Cash flows from investing activities:
Investment in subsidiary bank		(10,500,000	)		-
Net cash used in investing activities		(10,500,000	)		-
Cash flows from financing activities:
Dividends paid on common stock		(452,983	)		(452,980	)
Dividends paid on preferred stock		(342,460	)		(261,814	)
Exercise of stock options		-			-
Proceeds from issuance of preferred stock and warrant		-			12,123,000
Net cash provided by (used in) financing activities		(795,443	)		11,408,206
Net increase (decrease) in cash and cash equivalents		(11,813,042	)		11,534,201
Cash and cash equivalents at beginning of year		11,819,433			285,232
Cash and cash equivalents at end of year	$	6,391		$	11,819,433