# EDGAR Filing Document

**Accession Number:** 0000947559
**File Stem:** 0001157523-23-000091
**Filing Date:** 2023-1
**Character Count:** 81827
**Document Hash:** 5622d841b33597573b0486e95773860d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001157523-23-000091.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001157523-23-000091

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FIRST BANCSHARES INC /MS/
- **CENTRAL INDEX KEY:** 0000947559
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 640862173
- **STATE OF INCORPORATION:** MS
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-22507
- **FILM NUMBER:** 23553723

**BUSINESS ADDRESS:**
- **STREET 1:** 6480 US HIGHWAY 98 WEST
- **STREET 2:** SUITE A
- **CITY:** HATTIESBURG
- **STATE:** MS
- **ZIP:** 39402
- **BUSINESS PHONE:** 6012688998

**MAIL ADDRESS:**
- **STREET 1:** 6480 US HIGHWAY 98 WEST
- **STREET 2:** SUITE A
- **CITY:** HATTIESBURG
- **STATE:** MS
- **ZIP:** 39402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COMMUNITY CAPITAL CORP /MS/
- **DATE OF NAME CHANGE:** 19950705

#### UNITED STATES

#### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): **January 25, 2023**

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**The First Bancshares, Inc.** 

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(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Mississippi**<br>| **000-22507**<br>| **64-0862173**<br>|
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (I.R.S. Employer<br> Identification No.) |

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| | |
|:---|:---|
| **6480 U.S. Hwy 98 West, Hattiesburg, MS**  | **39402**  |
| (Address of principal executive offices) | (Zip Code) |

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| | |
|:---|:---|
| Registrant's telephone number, including area code | **(601) 268-8998** |

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| |
|:---|
| **N/A** <br>|
| (Former name or former address, if changed since last report.) |

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common Stock | FBMS | NASDAQ |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2 of this chapter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition**

On January 25, 2023, The First Bancshares, Inc. issued a press release announcing its results of operations for the fourth quarter of 2022. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 7.01. Regulation FD Disclosure**

On January 26, 2023, The First Bancshares, Inc. will host a conference call for analysts and investors to discuss the Company's financial results at 9:30 a.m. Central Time.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 7.01 of this report shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 8.01. Other Event**

On January 25, 2023, The First Bancshares, Inc. announced the declaration of a $0.21 per share quarterly cash dividend. The dividend is payable on February 24, 2023 to shareholders of record as of the close of business on February 8, 2023.

**Item 9.01. Financial Statements and Exhibits**

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| [99.1](a53291125ex99_1.htm) | [Press Release dated January 25, 2023 announcing fourth quarter, 2022 results and the declaration of a cash dividend](a53291125ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
|  | The First Bancshares, Inc. |
| Date: January 25, 2023 <br>|  |
|  | **<u>/s/</u> <u>Donna T. (Dee Dee) Lowery</u>** |
|  | Name: Donna T. (Dee Dee) Lowery |
|  | Title: EVP and CFO |

---

## Exhibit 99.1

**Exhibit 99.1**<br>

# **The First Bancshares, Inc. Reports Results for Fourth Quarter ended December 31, 2022; Increases Quarterly Dividend 5%** 
HATTIESBURG, Miss.--(BUSINESS WIRE)--January 25, 2023--The First Bancshares, Inc. ("FBMS" or "the Company") (NASDAQ: FBMS), holding company for The First Bank, (www.thefirstbank.com) reported today financial results for the quarter ended December 31, 2022.

 **Highlights:**

* Effective January 1, 2023, the Company closed its acquisition of Heritage Southeast Bancorporation, Inc., parent company of Heritage Southeast Bank ("Heritage Bank") based in Jonesboro, Georgia. Heritage Bank will increase the
 Company's presence in Southern Georgia as well as provide entry into the fast growing markets of Atlanta and Savannah, Georgia and Jacksonville, Florida. Heritage Bank will add approximately $1.6 billion of assets and twenty four
 locations. Systems conversion is scheduled for the end of the first quarter of 2023. 

* During the quarter, the Company completed the systems conversion related to the acquisition of Beach Bancorp, Inc., parent of Beach Bank (together with Beach Bancorp, Inc., "Beach Bank") 

* Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, representing an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022. 

* In the year-over-year comparison, net income available to common shareholders decreased $1.2 million, or 1.9%, from $64.2 million for the year ended December 31, 2021 to $62.9 million for the same period ended December 31, 2022. Over
 that same period, Paycheck Protection Program ("PPP") loan fees decreased $9.8 million. 

* Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $3.9 million, or 6.1%, to $68.3 million for the year ended December 31,
 2022 as compared to $64.4 million for the same period ended December 31, 2021. 

* Total loans, excluding PPP loans, increased 1.5% for the quarter representing net growth of $55.5 million, or 6.0% on an annualized basis, as compared to the quarter ended September 30, 2022. 

* Net Interest Margin FTE increased 23 bps to 3.37% for the quarter ended December 31, 2022 from 3.14% for the quarter ended December 31, 2021. 

* Total nonperforming assets decreased $12.9 million to $17.7 million at December 31, 2022 from $30.6 million at December 31, 2021. 

M. Ray "Hoppy" Cole, President and Chief Executive Officer, commented, "2022 was another exceptional year in the history of our Company. We continued to execute on our strategic vision of building a high performing southeastern community bank through a combination of acquisitive and organic growth.

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We closed Beach Bank in August 2022 and Heritage Bank effective January 2023, these two acquisitions added approximately $2.3 billion in assets in Florida and Georgia. The acquisitions of Beach Bank and Heritage Southeast strengthened our presence in the Florida panhandle and South Georgia, as well as opened up new markets in Atlanta, Jacksonville and Tampa. In addition to the growth through acquisitions, we also recorded record organic net loan growth of $359.1 million or 12.3% of total loans and a 6.1% increase in net operating income available to common shareholders.

We believe we are well positioned given the strength of our balance sheet and quality of our earnings stream to continue to build substantial value for our shareholders."

 **Quarterly Earnings**

Net income available to common shareholders totaled $16.3 million for the quarter ended December 31, 2022, an increase of $2.3 million, or 16.0%, compared to $14.0 million for the quarter ended September 30, 2022.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $2.5 million, or 12.5%, to $17.2 million for quarter ended December 31, 2022 as compared to $19.6 million for the quarter ended September 30, 2022. The decrease in net earnings available to common shareholders resulted in part from $1.5 million in nonaccrual interest income recapture recorded in the quarter ended September 30, 2022 and from expense of $0.7 million incurred in the quarter ended December 31, 2022 related to year end accruals for salaries and benefits.

The Company recorded a provision for loan losses of $0.7 million for the quarter ended December 31, 2022 and $4.3 million for the quarter ended September 30, 2022. The $4.3 million provision in respect of the quarter ended September 30, 2022 included $3.9 million for the CECL day 1 provision for loan losses attributable to the acquired Beach Bank loans.

 **Earnings Per Share**

For the fourth quarter of 2022, fully diluted earnings per share were $0.67, compared to $0.61 for the third quarter of 2022 and $0.75 for the fourth quarter of 2021. The decrease in fully-diluted earnings per share when compared to the same quarter last year was primarily attributable to expenses associated with the acquisition of Beach Bank, and the pending acquisition of Heritage Bank as well as the additional shares issued for the acquisition of Beach Bank.

Fully diluted earnings per share, operating (non-GAAP) were $0.71 for the fourth quarter of 2022 compared to $0.85 for the third quarter of 2022 and $0.76 for the fourth quarter of 2021.

Effective August 1, 2022, the Company issued 3,498,936 shares of its common stock in conjunction with the closing of the acquisition of Beach Bank. Fully diluted earnings per share for the first and second quarters of 2022 were increased in part by the purchase by the Company of 600,000 shares of its common stock during the first quarter of 2022.

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 **Balance Sheet**

Consolidated assets increased $6.9 million to $6.462 billion at December 31, 2022 from $6.455 billion at September 30, 2022.

PPP loans at December 31, 2022 were $0.7 million, a decrease of $0.7 million from September 30, 2022, due to loan forgiveness under the PPP program.

Total loans were $3.774 billion for the quarter ended December 31, 2022, as compared to $3.719 billion for the quarter ended September 30, 2022, and $2.960 billion for the quarter ended December 31, 2021, representing an increase of $54.8 million, or 1.5%, for the sequential quarter comparison, and an increase of $814.6 million, or 27.5%, for the prior year quarterly comparison. During August 2022, loans totaling $496.0 million were acquired in the Beach Bank acquisition. PPP loans totaled $0.7 million for the quarter ended December 31, 2022, $1.4 million for the quarter ended September 30, 2022, and $41.1 million for the quarter ended December 31, 2021.

Excluding the PPP loans, total loans increased $55.5 million, or 1.5% as compared to the quarter ended September 30, 2022, or 6.0% on an annualized basis.

Excluding the PPP loans and acquired Beach Bank loans, total loans increased $359.1 million, or 12.3% compared to year-end December 31, 2021.

Total deposits were $5.494 billion for the quarter ended December 31, 2022, as compared to $5.551 billion for the quarter ended September 30, 2022, and $5.227 billion for the quarter ended December 31, 2021, representing a decrease of $56.9 million, or 1.0%, for the sequential quarter comparison, and an increase of $267.6 million, or 5.1%, for the prior year quarterly comparison. During August 2022, deposits totaling $406.9 million were acquired in the Beach Bank acquisition.

Book value per share increased to $26.92 at December 31, 2022 from $25.86 at September 30, 2022.

Tangible book value per share (non-GAAP) increased to $17.97 at December 31, 2022 from $16.93 at September 30, 2022. This increase was the result of the change in accumulated other comprehensive income as well as earnings net of dividends for the quarter. The balance in accumulated other comprehensive income improved $13.1 million to $149.0 million at December 31, 2022 from $162.0 million at September 30, 2022.

 **Asset Quality**

Nonperforming assets totaled $17.7 million at December 31, 2022, a decrease of $9.0 million compared to $26.7 million at September 30, 2022 and a decrease of $12.9 million compared to $30.6 million at December 31, 2021.

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Nonaccrual loans totaled $12.6 million, a decrease of $3.3 million as compared to September 30, 2022 and a decrease of $15.4 million as compared to December 31, 2021. During the quarter ended September 30, 2022, one large relationship with a balance of $10.2 million was upgraded to accrual status. This upgrade resulted in $1.5 million in interest income being recognized during the third quarter of 2022.

The ratio of the allowance for credit losses (ACL) to total loans was 1.03% at December 31, 2022, 1.03% at September 30, 2022 and 1.04% at December 31, 2021. The ratio of annualized net charge-offs (recoveries) to total loans was 0.004% for the quarter ended December 31, 2022 compared to (0.04%) for the quarter ended September 30, 2022 and 0.03% for the quarter ended December 31, 2021.

 **Fourth Quarter 2022 vs Third Quarter 2022 Earnings Comparison**

Net income available to common shareholders for the fourth quarter of 2022 increased $2.3 million to $16.3 million compared to $14.0 million for the third quarter of 2022.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) decreased $2.5 million, or 12.5%, to $17.2 million for quarter ended December 31, 2022 as compared to $19.6 million for the quarter ended September 30, 2022. The decrease in net earnings available to common shareholders resulted in part from $1.5 million in nonaccrual interest income recapture recorded in the quarter ended September 30, 2022 and from expense of $0.7 million incurred in the quarter ended December 31, 2022 related to year end accruals for salaries and benefits.

Net interest income for the fourth quarter of 2022 was $47.9 million as compared to $49.1 million for the third quarter of 2022, a decrease of $1.2 million. When adjusted for nonaccrual interest income recaptured during the third quarter of $1.5 million, net interest income actually increased $0.3 million in the quarterly comparison.

Fourth quarter 2022 FTE net interest margin (non-GAAP) of 3.37% included 8 basis points related to purchase accounting adjustments compared to 3.50% for the third quarter in 2022, which included 6 basis points related to purchase accounting adjustment as well as 10 bps related to the $1.5 million in nonaccrual interest income recapture.

Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $2.004 billion, or 31.0% of total assets at September 30, 2022. The average balance of investment securities decreased $114.6 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) increased 8 basis point to 2.48% from 2.40% in sequential-quarter comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized loss of $216.9 million at September 30, 2022.

The FTE average yield on all earning assets (non-GAAP) increased in sequential-quarter comparison from 3.83% to 4.06%. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the third quarter of 2022 to 0.99% for the fourth quarter of 2022.

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Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the third quarter of 2022. This increase was a result of rising interest rates and increased competition for deposits.

Non-interest income decreased $0.9 million from $9.0 million to $8.1 million in the sequential-quarter comparison, attributable to decreases in mortgage income of $0.6 million and interchange fee income of $0.2 million.

Non-interest expense for the fourth quarter of 2022 was $35.0 million compared to $35.9 million for the third quarter of 2022, a decrease of $0.9 million, largely attributed to the decrease in acquisition charges and charter conversion expenses of $2.5 million which was partially offset by $0.9 million in expenses related to the operations of Beach Bank.

 **Fourth Quarter 2022 vs. Fourth Quarter 2021 Earnings Comparison**

Net income available to common shareholders for the fourth quarter of 2022 totaled $16.3 million compared to $15.8 million for the fourth quarter of 2021, an increase of $0.5 million or 3.2%.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $1.2 million, or 7.3%, to $17.2 million for quarter ended December 31, 2022 as compared to $16.0 million for the quarter ended December 31, 2021.

Net interest income for the fourth quarter of 2022 was $47.9 million, an increase of $8.2 million or 20.5% when compared to the fourth quarter of 2021. Fully tax equivalent ("FTE") net interest income (non-GAAP) totaled $48.9 million and $40.4 million for the fourth quarter of 2022 and 2021, respectively. Purchase accounting adjustments increased $0.2 million for the fourth quarter comparisons.

Fourth quarter of 2022 FTE net interest margin (non-GAAP) was 3.37% which included 8 basis points related to purchase accounting adjustments compared to 3.14% for the same quarter in 2021, which included 7 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) increased 22 basis point in prior year quarterly comparison primarily due to an increase in average loans and investment securities as well as interest rate increases.

Non-interest income decreased $1.5 million for the fourth quarter of 2022 as compared to the fourth quarter of 2021. This decrease was attributable to a $0.9 million decrease in mortgage income as well as a $1.3 million bargain purchase gain recorded in the fourth quarter of 2021.

Fourth quarter 2022 non-interest expense was $35.0 million, an increase of $4.3 million, or 13.8% as compared to the fourth quarter of 2021. For the fourth quarter of 2022, charges related to the ongoing operations of the Cadence Bank branches totaled $0.7 million and Beach Bank totaled $3.0 million.

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Investment securities totaled $1.983 billion, or 30.7% of total assets at December 31, 2022, compared to $1.774 billion, or 29.2% of total assets at December 31, 2021. For the fourth quarter of 2022 compared to the fourth quarter of 2021, the average balance of investment securities increased $412.3 million. The average tax equivalent yield on investment securities (non-GAAP) increased 51 basis points to 2.48% from 1.97% in the prior year quarterly comparison. The investment portfolio had a net unrealized loss of $161.2 million at December 31, 2022 as compared to a net unrealized gain of $10.7 million at December 31, 2021.

The FTE average yield on all earning assets (non-GAAP) increased 60 basis points in prior year quarterly comparison, from 3.46% for the fourth quarter of 2021 to 4.06% for the fourth quarter of 2022. Interest expense on average interest bearing liabilities increased 51 basis points from 0.48% for the fourth quarter of 2021 to 0.99% for the fourth quarter of 2022.

Cost of all deposits averaged 51 basis points for the fourth quarter of 2022 compared to 19 basis points for the fourth quarter of 2021. This increase was a result of rising interest rates and increased competition for deposits.

 **Year-over-Year Earnings Comparison**

In the year-over-year comparison, net income available to common shareholders decreased $1.2 million, or 1.9%, from $64.2 million for the year ended December 31, 2021 to $62.9 million for the same period ended December 31, 2022. In the year-over-year comparison, PPP loan fee income decreased $9.8 million.

Excluding one-time items detailed in the tables included with this press release, net earnings available to common shareholders, operating (non-GAAP) increased $3.9 million, or 6.1%, to $68.3 million for the year ended December 31, 2022 as compared to $64.4 million for the same period ended December 31, 2021.

Net interest income after provision for credit losses was $172.2 million for the twelve months ended December 31, 2022, an increase of $14.0 million as compared to the same period ended December 31, 2021, primarily due to interest income earned on a higher volume of loans and securities and increased interest rates.

Non-interest income was $37.0 million for the year ended December 31, 2022, a decrease of $0.5 million as compared to the same period ended December 31, 2021. Increased service charges on deposit accounts and interchange fee income of $2.5 million was offset by a decrease in mortgage income of $4.5 million.

Non-interest expense was $130.5 million for the year ended December 31, 2022, an increase of $15.9 million as compared to the same period ended December 31, 2021. An increase of $4.8 million in acquisition and charter conversion charges and $3.3 million related to the ongoing operations of the Cadence Bank branches and $5.1 million related to the Beach Bank branch operations accounted for the increase in non-interest expense.

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 **Declaration of Cash Dividend**

The Company announced that its Board of Directors declared a cash dividend of $0.21 per share, a 5% increase over previous quarter, to be paid on its common stock on February 24, 2023 to shareholders of record as of the close of business on February 8, 2023.

 **Conference Call**

The Company will host a conference call for analysts and investors to discuss the Company's financial results at 9:30 a.m. Central Time on Thursday, January 26, 2023. Investors and analysts may participate by clicking on the Participant Conference Link: https://register.vevent.com/register/BI8f25f7d93b164314bb9ed2b26dcd36a1. An audio archive of the conference call along with the transcript will be available within 24-48 hours after the call and placed in the Investor Relations section of our website.

 **About The First Bancshares, Inc.**

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First Bank ("The First"). 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 pre-tax, pre-provision operating earnings, FTE net interest income, FTE net interest margin, core net interest margin, average tax equivalent yield on investment securities, FTE average yield on all earning assets, total tangible common equity, tangible book value per common share, net earnings available to common shareholders, operating, diluted earnings per share, efficiency ratio, operating 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, net earnings available to common shareholders, diluted earnings per share, efficiency ratio, 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).

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 **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," "positioned" 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) prevailing, or changes in, economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations, including the effects of declines in the real estate market, high unemployment rates, inflationary pressure, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (3) interest rate risk, including the effects of rising interest rates; (4) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (5) changes in applicable laws, rules, or regulations; (6) risks related to the Company's recently completed and pending 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; (7) changes in management's plans for the future; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) changes in accounting principles, policies, or guidelines; (11) 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 and related variants; (12) higher inflation and its impacts; (13) significant turbulence or disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (14) the effects of war or other conflicts including the impacts relating to or resulting from Russia's military action in Ukraine; and (15) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.

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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 SEC, 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.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited**) <br> **(Dollars in thousands except per share data)**  |
| **EARNINGS DATA**  | **Quarter <br> Ended <br> 12/31/22**  | **Quarter <br> Ended <br> 9/30/22**  | **Quarter <br> Ended <br> 6/30/22**  | **Quarter <br> Ended <br> 3/31/22**  | **Quarter <br> Ended <br> 12/31/21**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Income  | $57923  | $53874  | $45847  | $42741  | $43885  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Expense  | <u>10002</u>  | <u>4726</u>  | <u>3746</u>  | <u>4102</u>  | <u>4128</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Interest Income  | <u>47921</u>  | <u>49148</u>  | <u>42101</u>  | <u>38639</u>  | <u>39757</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Interest Income excluding PPP Fee Income  | <u>47899</u>  | <u>48986</u>  | <u>41563</u>  | <u>37643</u>  | <u>37151</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; FTE net interest income\*  | <u>48916</u>  | <u>50122</u>  | <u>43042</u>  | <u>39459</u>  | <u>40425</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses  | 705  | 4300  | 600  | -  | (1104 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest income  | 8131  | 9022  | 8664  | 11157  | 9593  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest expense  | <u>35040</u>  | <u>35903</u>  | <u>30955</u>  | <u>28590</u>  | <u>30789</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings before income taxes  | 20307  | 17967  | 19210  | 21206  | 19665  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense  | <u>4012</u>  | <u>3924</u>  | <u>3457</u>  | <u>4377</u>  | <u>3874</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  | $<u>16295</u>  | $<u>14043</u>  | $<u>15753</u>  | $<u>16829</u>  | $<u>15791</u>  |
| **PER COMMON SHARE DATA**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share  | $0.68  | $0.61  | $0.77  | $0.81  | $0.75  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share  | 0.67  | 0.61  | 0.76  | 0.81  | 0.75  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share, operating\*  | 0.71  | 0.85  | 0.80  | 0.72  | 0.76  |
| &nbsp;&nbsp;&nbsp;&nbsp; Quarterly dividends per share  | .20  | .19  | .18  | .17  | .16  |
| &nbsp;&nbsp;&nbsp;&nbsp; Book value per common share at end of period  | 26.92  | 25.86  | 27.30  | 28.82  | 32.17  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tangible book value per common share at period end\*  | 17.97  | 16.93  | 18.32  | 19.79  | 23.31  |
| &nbsp;&nbsp;&nbsp;&nbsp; Market price at end of period  | 32.01  | 29.87  | 28.60  | 33.66  | 38.62  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding at period end  | 24025762  | 24028120  | 20529124  | 20484830  | 21019037  |
| &nbsp;&nbsp;&nbsp;&nbsp; Weighted average shares outstanding:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic  | 24027189  | 22861795  | 20507451  | 20697946  | 21020768  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted  | 24168544  | 22979529  | 20615928  | 20846997  | 21175323  |
| **AVERAGE BALANCE SHEET DATA**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets  | $6446521  | $6372872  | $6112241  | $6202669  | $5664336  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans and leases  | 3749561  | 3492110  | 3013228  | 2945877  | 2956657  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total deposits  | 5515713  | 5503040  | 5347415  | 5361480  | 4814945  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total common equity  | 617049  | 630744  | 593410  | 666561  | 672121  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total tangible common equity\*  | 408365  | 424873  | 408855  | 480922  | 500639  |
| **SELECTED RATIOS**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized return on avg assets (ROA)  | 1.01 <br> %  | 0.88 <br> %  | 1.03 <br> %  | 1.09 <br> %  | 1.12 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized return on avg assets, operating\*  | 1.07 <br> %  | 1.23 <br> %  | 1.08 <br> %  | 0.97 <br> %  | 1.13 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized pre-tax, pre-provision, operating\*  | 1.38 <br> %  | 1.63 <br> %  | 1.36 <br> %  | 1.24 <br> %  | 1.33 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized return on avg common equity, operating\*  | 11.14 <br> %  | 12.46 <br> %  | 11.12 <br> %  | 8.99 <br> %  | 9.53 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized return on avg tangible common equity, oper\*  | 16.83 <br> %  | 18.49 <br> %  | 16.14 <br> %  | 12.46 <br> %  | 12.80 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average loans to average deposits  | 67.98 <br> %  | 63.46 <br> %  | 56.35 <br> %  | 54.95 <br> %  | 61.41 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; FTE Net Interest Margin\*  | 3.37 <br> %  | 3.50 <br> %  | 3.09 <br> %  | 2.78 <br> %  | 3.14 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Efficiency Ratio  | 61.42 <br> %  | 60.70 <br> %  | 59.87 <br> %  | 56.48 <br> %  | 61.56 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Efficiency Ratio, operating\*  | 59.34 <br> %  | 54.55 <br> %  | 57.66 <br> %  | 58.37 <br> %  | 59.91 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*See reconciliation of Non-GAAP financial measures  |  |  |  |  |  |
| **CREDIT QUALITY**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses (ACL) as a % of total loans  | 1.03 <br> %  | 1.03 <br> %  | 1.04 <br> %  | 1.06 <br> %  | 1.04 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nonperforming assets to tangible equity + ACL  | 3.76 <br> %  | 6.01 <br> %  | 6.41 <br> %  | 6.31 <br> %  | 5.88 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nonperforming assets to total loans + OREO  | 0.47 <br> %  | 0.72 <br> %  | 0.84 <br> %  | 0.93 <br> %  | 1.03 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized QTD net charge-offs (recoveries) to total loans  | 0.004 <br> %  | (0.04 <br> %)  | (0.04 <br> %)  | (0.12 <br> %)  | 0.03 <br> %  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands)**  |
| **BALANCE SHEET**  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Assets**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $145315  | $163841  | $356771  | $802613  | $919713  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale  | 1257101  | 1379410  | 1489247  | 1591677  | 1751832  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities held to maturity  | 691484  | 593553  | 593154  | 372062  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments  | <u>33944</u>  | <u>31060</u>  | <u>22588</u>  | <u>22226</u>  | <u>22226</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment securities  | 1982529  | 2004023  | 2104989  | 1985965  | 1774058  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale  | 4443  | 2225  | 6703  | 8213  | 7678  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | 3774157  | 3719388  | 3124924  | 2970246  | 2959553  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses  | <u>(38917</u> <br> <u>)</u>  | <u>(38356</u> <br> <u>)</u>  | <u>(32400</u> <br> <u>)</u>  | <u>(31620</u> <br> <u>)</u>  | <u>(30742</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net  | 3735240  | 3681032  | 3092524  | 2938626  | 2928811  |
| &nbsp;&nbsp;&nbsp;&nbsp; Premises and equipment  | 153068  | 150480  | 132724  | 131813  | 132448  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Real Estate Owned  | 4832  | 10328  | 1985  | 2835  | 2565  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill and other intangibles  | 214890  | 214708  | 184323  | 185104  | 186171  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets  | <u>221400</u>  | <u>228211</u>  | <u>157406</u>  | <u>140926</u>  | <u>125970</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets  | $<u>6461717</u>  | $<u>6454848</u>  | $<u>6037425</u>  | $<u>6196095</u>  | $<u>6077414</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Liabilities and Shareholders' Equity**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest bearing deposits  | $1630203  | $1770848  | $1658288  | $1648451  | $1550381  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits  | <u>3864201</u>  | <u>3780450</u>  | <u>3647909</u>  | <u>3789333</u>  | <u>3676403</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits  | 5494404  | 5551298  | 5306197  | 5437784  | 5226784  |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowings  | 130100  | 90000  | -  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Subordinated debentures  | 145027  | 144952  | 144876  | 144801  | 144726  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other liabilities  | <u>45523</u>  | <u>47127</u>  | <u>25900</u>  | <u>23117</u>  | <u>29732</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities  | 5815054  | 5833377  | 5476973  | 5605655  | 5401242  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity  | <u>646663</u>  | <u>621471</u>  | <u>560452</u>  | <u>590440</u>  | <u>676172</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and shareholders' equity  | $<u>6461717</u>  | $<u>6454848</u>  | $<u>6037425</u>  | $<u>6196095</u>  | $<u>6077414</u>  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  |
| **EARNINGS STATEMENT**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **EARNINGS STATEMENT**  | **12/31/22**  | **9/30/22**  | **6/30/22**  | **3/31/22**  | **12/31/21**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Income:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, including fees  | $45583  | $41456  | $34058  | $33354  | $36035  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities  | 11251  | 11598  | 11152  | 8574  | 7032  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of purchase accounting adjustments  | 1086  | 818  | 605  | 800  | 800  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest income  | <u>3</u>  | <u>2</u>  | <u>32</u>  | <u>13</u>  | <u>18</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest income  | 57923  | 53874  | 45847  | 42741  | 43885  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Expense:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits  | 7206  | 2863  | 1923  | 2302  | 2371  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings  | 1015  | 92  | -  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debentures  | 1946  | 1886  | 1841  | 1819  | 1818  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of purchase accounting adjustments  | <u>(165</u> <br> <u>)</u>  | <u>(115</u> <br> <u>)</u>  | <u>(18</u> <br> <u>)</u>  | <u>(19</u> <br> <u>)</u>  | <u>(61</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense  | <u>10002</u>  | <u>4726</u>  | <u>3746</u>  | <u>4102</u>  | <u>4128</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income  | 47921  | 49148  | 42101  | 38639  | 39757  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses  | <u>705</u>  | <u>4300</u>  | <u>600</u>  | <u>-</u>  | <u>(1104</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income after provision for credit losses  | 47216  | 44848  | 41501  | 38639  | 40861  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest Income:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service charges on deposit accounts  | 2277  | 2219  | 2038  | 2040  | 1901  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Income  | 625  | 1221  | 1227  | 1230  | 1556  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interchange Fee Income  | 3093  | 3310  | 3102  | 3197  | 3029  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (Loss) on securities, net  | -  | 1  | (80 )  | (3 )  | 36  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial Assistance Award/Bank Enterprise Award/RRP Grant  | -  | -  | 171  | 702  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bargain Purchase Gain and (Loss) on Sale of Land  | -  | -  | 165  | -  | 1300  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  | -  | -  | -  | 1630  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other charges and fees  | <u>2136</u>  | <u>2271</u>  | <u>2041</u>  | <u>2361</u>  | <u>1771</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest income  | 8131  | 9022  | 8664  | 11157  | 9593  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-interest expense:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits  | 19934  | 19099  | 17237  | 16799  | 17519  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy expense  | 4305  | 3826  | 3828  | 3876  | 3948  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FDIC/OCC premiums  | 514  | 496  | 546  | 566  | 550  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing  | 135  | 50  | 122  | 86  | 113  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of core deposit intangibles  | 1309  | 1227  | 1064  | 1064  | 982  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other professional services  | 971  | 1256  | 768  | 563  | 1282  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition and charter conversion charges  | 1190  | 3640  | 1172  | 408  | 1602  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-interest expense  | <u>6682</u>  | <u>6309</u>  | <u>6218</u>  | <u>5228</u>  | <u>4793</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Non-interest expense  | <u>35040</u>  | <u>35903</u>  | <u>30955</u>  | <u>28590</u>  | <u>30789</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings before income taxes  | 20307  | 17967  | 19210  | 21206  | 19665  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense  | <u>4012</u>  | <u>3924</u>  | <u>3457</u>  | <u>4377</u>  | <u>3874</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  | $<u>16295</u>  | $<u>14043</u>  | $<u>15753</u>  | $<u>16829</u>  | $<u>15791</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per common share  | $<u>0.67</u>  | $<u>0.61</u>  | $<u>0.76</u>  | $<u>0.81</u>  | $<u>0.75</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per common share, operating\*  | $<u>0.71</u>  | $<u>0.85</u>  | $<u>0.80</u>  | $<u>0.72</u>  | $<u>0.76</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*See reconciliation of Non-GAAP financial measures  |  |  |  |  |  |

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| | | |
|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(in thousands except per share data)**  |
| **EARNINGS STATEMENT**  | **Year to Date**  | **Year to Date**  |
| **EARNINGS STATEMENT**  | **2022**  | **2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Income:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, including fees  | $152741  | $135780  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PPP loan fee income  | 1718  | 11499  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities  | 42575  | 25420  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of purchase accounting adjustments  | 3309  | 3924  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest income  | <u>50</u>  | <u>122</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest income  | 200393  | 176745  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Expense:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits  | 14295  | 12304  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings  | 1107  | 340  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debentures  | 7492  | 7279  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of purchase accounting adjustments  | <u>(317</u> <br> <u>)</u>  | <u>(242</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense  | <u>22577</u>  | <u>19681</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income  | 177816  | 157064  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses  | <u>5605</u>  | <u>(1104</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income after provision for credit losses  | 172211  | 158168  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest Income:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service charges on deposit accounts  | 8668  | 7264  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Income  | 4303  | 8823  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interchange Fee Income  | 12702  | 11562  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on securities, net  | (82 )  | 143  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financial Assistance Award/Bank Enterprise Award/RRP Grant  | 873  | 1826  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bargain Purchase Gain and Loss on Sale of Fixed Assets  | 165  | 903  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  | 1630  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other charges and fees  | <u>8702</u>  | <u>6952</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest income  | 36961  | 37473  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest expense:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits  | 73077  | 65856  |
| &nbsp;&nbsp;&nbsp;&nbsp; Occupancy expense  | 15835  | 15562  |
| &nbsp;&nbsp;&nbsp;&nbsp; FDIC/OCC premiums  | 2122  | 2074  |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketing  | 393  | 391  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of core deposit intangibles  | 4664  | 4137  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other professional services  | 3558  | 4198  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition & charter conversion charges  | 6410  | 1607  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-interest expense  | <u>24424</u>  | <u>20734</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Non-interest expense  | <u>130483</u>  | 114559  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings before income taxes  | 78689  | 81082  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax expense  | <u>15770</u>  | <u>16915</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  | $<u>62919</u>  | $<u>64167</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per common share  | $<u>2.84</u>  | $<u>3.03</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per common share, operating\*  | $<u>3.08</u>  | $<u>3.04</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*See reconciliation of Non-GAAP financial measures  |  |  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  | **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Condensed Consolidated Financial Information (unaudited)** <br> **(Dollars in thousands)**  |
| **COMPOSITION OF LOANS**  | **Dec 31, <br> 2022**  | **Percent <br> of Total**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  | **Percent <br> of Total**  |
| Commercial, financial and agricultural  | $506907  | 13.4 <br> %  | $489225  | $379363  | $364702  | $375379  | 12.7 <br> %  |
| Real estate – construction  | 475956  | 12.6 <br> %  | 481100  | 429946  | 387290  | 364075  | 12.3 <br> %  |
| Real estate – commercial  | 1626066  | 43.0 <br> %  | 1595944  | 1319821  | 1249203  | 1242529  | 41.9 <br> %  |
| Real estate – residential  | 1094204  | 29.0 <br> %  | 1082488  | 932268  | 911568  | 916179  | 30.9 <br> %  |
| Lease Financing Receivable  | 2118  | 0.1 <br> %  | 1907  | 2283  | 2409  | 2556  | 0.1 <br> %  |
| Obligations of States & subdivisions  | 26143  | 0.7 <br> %  | 25757  | 20784  | 15842  | 16765  | 0.5 <br> %  |
| Consumer  | 42763  | 1.1 <br> %  | 42967  | 40459  | 39233  | 42070  | 1.4 <br> %  |
| Loans held for sale  | <u>4443</u>  | <u>0.1</u> <br> <u>%</u>  | <u>2225</u>  | <u>6703</u>  | <u>8213</u>  | <u>7678</u>  | <u>0.2</u> <br> <u>%</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | $<u>3778600</u>  | <u>100</u> <br> <u>%</u>  | $<u>3721613</u>  | $<u>3131627</u>  | $<u>2978460</u>  | $<u>2967231</u>  | <u>100</u> <br> <u>%</u>  |
| **COMPOSITION OF DEPOSITS**  | **Dec 31, <br> 2022**  | **Percent <br> of Total**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  | **Percent <br> of Total**  |
| Non-interest bearing  | $1630203  | 29.7 <br> %  | $1770848  | $1658288  | $1648451  | $1550381  | 29.7 <br> %  |
| NOW and other  | 1769699  | 32.2 <br> %  | 1786213  | 1790980  | 1885145  | 1771510  | 33.9 <br> %  |
| Money Market/Savings  | 1368108  | 24.9 <br> %  | 1423953  | 1326245  | 1337419  | 1320284  | 25.3 <br> %  |
| Time Deposits of less than $250,000  | 590564  | 10.7 <br> %  | 418931  | 400354  | 424183  | 445879  | 8.5 <br> %  |
| Time Deposits of $250,000 or more  | <u>135830</u>  | <u>2.5</u> <br> <u>%</u>  | <u>151353</u>  | <u>130330</u>  | <u>142539</u>  | <u>138730</u>  | <u>2.6</u> <br> <u>%</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Deposits  | $<u>5494404</u>  | <u>100</u> <br> <u>%</u>  | $<u>5551298</u>  | $<u>5306197</u>  | $<u>5437737</u>  | $<u>5226784</u>  | <u>100</u> <br> <u>%</u>  |
| **ASSET QUALITY DATA**  | **Dec 31, <br> 2022**  |  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31,** <br> **2021**  |  |
| Nonaccrual loans  | $12591  |  | $15844  | $23678  | $24736  | $28013  |  |
| Loans past due 90 days and over  | <u>289</u>  |  | <u>571</u>  | <u>527</u>  | <u>-</u>  | <u>45</u>  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total nonperforming loans  | 12880  |  | 16415  | 24205  | 24736  | 28058  |  |
| Other real estate owned  | 4832  |  | 10328  | 1985  | 2834  | 2565  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total nonperforming assets  | $<u>17712</u>  |  | $<u>26743</u>  | $<u>26190</u>  | $<u>27570</u>  | $<u>30623</u>  |  |
| Nonperforming assets to total assets  | 0.27 <br> %  |  | 0.41 <br> %  | 0.43 <br> %  | 0.44 <br> %  | 0.50 <br> %  |  |
| Nonperforming assets to total loans + OREO  | 0.47 <br> %  |  | 0.72 <br> %  | 0.84 <br> %  | 0.93 <br> %  | 1.03 <br> %  |  |
| ACL to nonperforming loans  | 302.15 <br> %  |  | 233.66 <br> %  | 133.86 <br> %  | 127.83 <br> %  | 109.57 <br> %  |  |
| ACL to total loans  | 1.03 <br> %  |  | 1.03 <br> %  | 1.04 <br> %  | 1.06 <br> %  | 1.04 <br> %  |  |
| Qtr-to-date net charge-offs (recoveries)  | $39  |  | $(353 )  | $(329 )  | $(879 )  | $220  |  |
| Annualized QTD net chg-offs (recs) to loans  | 0.004 <br> %  |  | (0.04 <br> %)  | (0.04 <br> %)  | (0.12 <br> %)  | 0.03 <br> %  |  |

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| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** | **FIRST BANCSHARES, INC and SUBSIDIARIES** | **FIRST BANCSHARES, INC and SUBSIDIARIES** | **FIRST BANCSHARES, INC and SUBSIDIARIES** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Condensed Consolidated Financial Information (unaudited)** | **Condensed Consolidated Financial Information (unaudited)** | **Condensed Consolidated Financial Information (unaudited)** | **Condensed Consolidated Financial Information (unaudited)** |  |  |  |  |  |  |  |  |  |  |  |  |
| **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Yield** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| **Analysis** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** | **June 30, 2022** | **June 30, 2022** | **June 30, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | <br>**Avg**<br>**Balance** | **Tax**<br>**Equivalent**<br>**interest** | <br>**Yield/**<br>**Rate** | <br>**Avg**<br>**Balance** | **Tax**<br>**Equivalent**<br>**interest** | <br>**Yield/**<br>**Rate** | <br>**Avg**<br>**Balance** | **Tax**<br>**Equivalent**<br>**interest** | <br>**Yield/**<br>**Rate** | <br>**Avg**<br>**Balance** | **Tax**<br>**Equivalent**<br>**interest** | <br>**Yield/**<br>**Rate** | <br>**Avg**<br>**Balance** | **Tax**<br>**Equivalent**<br>**interest** | <br>**Yield/**<br>**Rate** |
| Taxable securities | $1522953  | $8312  | 2.18% | $1612066  | $8723  | 2.16% | $1634679  | $8372  | 2.05% | $1413523  | $6152  | 1.74% | $1166432  | $5059  | 1.73% |
| Tax-exempt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;securities | 453651  | 3934  | 3.47% | 479168  | 3849  | 3.21% | 492405  | 3721  | 3.02% | 483780  | 3242  | 2.68% | 397906  | 2641  | 2.65% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities | 1976604  | 12246  | 2.48% | 2091234  | 12572  | 2.40% | 2127084  | 12093  | 2.27% | 1897303  | 9394  | 1.98% | 1564338  | 7700  | 1.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in other banks | 72910  | 3  | 0.02% | 143867  | 2  | 0.01% | 432851  | 32  | 0.03% | 825877  | 13  | 0.01% | 634541  | 18  | 0.01% |
| Loans | 3749561  | 46670  | 4.98% | 3492110  | 42274  | 4.84% | 3013228  | 34663  | 4.60% | 2945877  | 34154  | 4.64% | 2956657  | 36835  | 4.98% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;earning assets | 5799075  | 58919  | 4.06% | 5727211  | 54848  | 3.83% | 5573163  | 46788  | 3.36% | 5669057  | 43561  | 3.07% | 5155536  | 44553  | 3.46% |
| Other assets | 647446  |  |  | 645661  |  |  | 539078  |  |  | 533612  |  |  | 508800  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6446521  |  |  | $6372872  |  |  | $6112241  |  |  | $6202669  |  |  | $5664336  |  |  |
| Interest-bearing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Deposits | $3801632  | $7042  | 0.74% | $3777059  | $2748  | 0.29% | $3706711  | $1905  | 0.21% | $3786808  | $2283  | 0.24% | $3330603  | $2310  | 0.28% |
| Borrowed Funds | 108881  | 1015  | 3.73% | 13261  | 92  | 2.78% | -  | -  | 0.00% | -  | -  |  | -  | -  | 0.00% |
| Subordinated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;debentures | 144985  | 1946  | 5.37% | 144910  | 1886  | 5.21% | 144834  | 1841  | 5.08% | 144759  | 1819  | 5.03% | 144684  | 1818  | 5.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bearing liabilities | 4055498  | 10002  | 0.99% | 3935230  | 4726  | 0.48% | 3851545  | 3746  | 0.39% | 3931567  | 4102  | 0.42% | 3475287  | 4128  | 0.48% |
| Other liabilities | 1773974  |  |  | 1806898  |  |  | 1667286  |  |  | 1604541  |  |  | 1516928  |  |  |
| Shareholders' equity | 617049  |  |  | 630744  |  |  | 593410  |  |  | 666561  |  |  | 672121  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders' |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equity | $6446521  |  |  | $6372872  |  |  | $6112241  |  |  | $6202669  |  |  | $5664336  |  |  |
| Net interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;income (FTE)\* |  | $48917  | 3.08% |  | $50122  | 3.35% |  | $43042  | 2.97% |  | $39459  | 2.66% |  | $40425  | 2.98% |
| Net interest margin (FTE)\* |  |  | 3.37% |  |  | 3.50% |  |  | 3.09% |  |  | 2.78% |  |  | 3.14% |
| Core net interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;margin\* |  |  | 3.29% |  |  | 3.44% |  |  | 3.04% |  |  | 2.73% |  |  | 3.07% |
| \*See reconciliation for Non-GAAP financial measures | \*See reconciliation for Non-GAAP financial measures | \*See reconciliation for Non-GAAP financial measures | \*See reconciliation for Non-GAAP financial measures |  |  |  |  |  |  |  |  |  |  |  |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **FIRST BANCSHARES, INC and SUBSIDIARIES** <br> **Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data)**  |  |  |  |  |  |  |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| <br> **Per Common Share Data**  | **Dec 31, <br> 2022**  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31,** <br> **2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Book value per common share  | $ | $26.92  | $25.86  | $27.30  | $28.82  | $32.17  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of intangible assets per share  |  | <u>8.95</u>  | <u>8.93</u>  | <u>8.98</u>  | <u>9.03</u>  | <u>8.86</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible book value per common share  | <u>$</u>  | $<u>17.97</u>  | $<u>16.93</u>  | $<u>18.32</u>  | $<u>19.79</u>  | $<u>23.31</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share  | $ | $0.68  | $0.61  | $0.76  | $0.81  | $0.75  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of acquisition and charter conversion charges  |  | 0.05  | 0.16  | 0.05  | 0.02  | 0.07  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on acquisition and charter conversion charges  |  | (0.02 )  | (0.05 )  | (0.01 )  | -  | (0.02 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Initial provision for acquired loans  |  | -  | 0.17  | -  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on initial provision for acquired loans  |  | -  | (0.04 )  | -  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of bargain purchase gain and loss on sale of fixed assets  |  | -  | -  | -  | -  | (0.06 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on bargain purchase gain and loss on sale of fixed assets  |  | -  | -  | -  | -  | 0.02  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of Treasury awards  |  | -  | -  | -  | (0.03 )  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  |  | -  | -  | -  | (0.08 )  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share, operating  | <u>$</u>  | $<u>0.71</u>  | $<u>0.85</u>  | $<u>0.80</u>  | $<u>0.72</u>  | $<u>0.76</u>  |
|  |  | **Year to Date**  | **Year to Date**  | **Year to Date**  | **Year to Date**  | **Year to Date**  |
|  |  |  | **2022**  |  | **2021**  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share  |  |  | $2.84  |  | $3.03  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of acquisition and charter conversion charges  |  |  | 0.29  |  | 0.08  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on acquisition and charter conversion charges  |  |  | (0.08 )  |  | (0.02 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of bargain purchase gain and loss on sale of fixed assets  |  |  | (0.01 )  |  | (0.04 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on loss on sale of fixed assets  |  |  | -  |  | 0.01  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of Treasury awards  |  |  | (0.04 )  |  | (0.09 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on Treasury awards  |  |  | 0.01  |  | 0.02  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  |  |  | (0.08 )  |  | -  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect on Contributions related to Treasury awards  |  |  | 0.01  |  | 0.07  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on Contributions related to Treasury awards  |  |  | -  |  | (0.02 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Initial provision for acquired loans  |  |  | 0.18  |  | <u>-</u>  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on initial provision for acquired loans  |  |  | <u>(0.04</u> <br> <u>)</u>  |  | <u>-</u>  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share, operating  |  |  | $<u>3.08</u>  |  | $<u>3.04</u>  |  |
|  |  | **Year to Date**  | **Year to Date**  | **Year to Date**  | **Year to Date**  | **Year to Date**  |
|  |  |  | **2022**  |  | **2021**  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  |  |  | $62919  |  | $64167  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition and charter conversion charges  |  |  | 6410  |  | 1607  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on acquisition and charter conversion charges  |  |  | (1621 )  |  | (406 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bargain purchase gain and loss on sale of fixed assets  |  |  | (165 )  |  | (903 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on bargain purchase gain and loss on sale of fixed assets  |  |  | 42  |  | 229  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Treasury awards  |  |  | (872 )  |  | (1826 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on Treasury awards  |  |  | 221  |  | 462  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  |  |  | (1630 )  |  | -  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions related to Treasury awards  |  |  | 165  |  | 1400  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on Contributions related to Treasury awards  |  |  | (42 )  |  | (354 )  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Initial provision for acquired loans  |  |  | 3855  |  | -  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on initial provision for acquired loans  |  |  | <u>(976</u> <br> <u>)</u>  |  | <u>-</u>  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earnings available to common shareholders, operating  |  |  | $<u>68306</u>  |  | $<u>64376</u>  |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Average Balance Sheet Data**  |  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total average assets  | A  | $6446521  | $6372872  | $6112241  | $6202669  | $5664336  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total average earning assets  | B  | 5799075  | $5727211  | $5573163  | $5669057  | $5155536  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Equity  | C  | $617049  | $630744  | $593410  | $666561  | $672121  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less intangible assets  |  | <u>208684</u>  | <u>205871</u>  | <u>184555</u>  | <u>185639</u>  | <u>171482</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Tangible common equity  | D  | $<u>408365</u>  | $<u>424873</u>  | $<u>408855</u>  | $<u>480922</u>  | $<u>500639</u>  |
|  |  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Net Interest Income Fully Tax Equivalent**  |  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income  | E  | $47921  | $49148  | $42101  | $38639  | $39757  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt investment income  |  | (2939 )  | (2875 )  | (2780 )  | (2422 )  | (1973 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxable investment income  |  | <u>3934</u>  | <u>3849</u>  | <u>3721</u>  | <u>3242</u>  | <u>2641</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Interest Income Fully Tax Equivalent  | F  | $<u>48916</u>  | $<u>50122</u>  | $<u>43042</u>  | $<u>39459</u>  | $<u>40425</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized Net Interest Margin  | E/B  | 3.31 <br> %  | 3.43 <br> %  | 3.02 <br> %  | 2.73 <br> %  | 3.08 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Annualized Net Interest Margin, Fully Tax Equivalent  | F/B  | 3.37 <br> %  | 3.50 <br> %  | 3.09 <br> %  | 2.78 <br> %  | 3.14 <br> %  |
| **Total Interest Income, Fully Tax Equivalent**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Income  |  | $57923  | $53874  | $45847  | $42741  | $43885  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt investment income  |  | (2939 )  | (2875 )  | (2780 )  | (2422 )  | (1973 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxable investment income  |  | <u>3934</u>  | <u>3849</u>  | <u>3721</u>  | <u>3242</u>  | <u>2641</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Interest Income, Fully Tax Equivalent  | G  | $<u>58918</u>  | $<u>54848</u>  | $<u>46788</u>  | $<u>43561</u>  | $<u>44553</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Yield on Average Earning Assets, Fully Tax Equivalent  | G/B  | <u>4.06</u> <br> <u>%</u>  | <u>3.83</u> <br> <u>%</u>  | <u>3.36</u> <br> <u>%</u>  | <u>3.07</u> <br> <u>%</u>  | <u>3.46</u> <br> <u>%</u>  |
| **Interest Income Investment Securities, Fully Tax Equivalent**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Income Investment Securities  |  | $11251  | $11598  | $11152  | $8574  | $7032  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt investment income  |  | (2939 )  | (2875 )  | (2780 )  | (2422 )  | (1973 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxable investment Income  |  | <u>3934</u>  | <u>3849</u>  | <u>3721</u>  | <u>3242</u>  | <u>2641</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Income Investment Securities, Fully Tax Equivalent  | H  | $<u>12246</u>  | $<u>12572</u>  | $<u>12093</u>  | $<u>9394</u>  | $<u>7700</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Investment Securities  | I  | $<u>1976604</u>  | $<u>2091234</u>  | $<u>2127084</u>  | $<u>1897303</u>  | $<u>1564338</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Yield on Investment Securities, Fully Tax Equivalent  | H/I  | <u>2.48</u> <br> <u>%</u>  | <u>2.40</u> <br> <u>%</u>  | <u>2.27</u> <br> <u>%</u>  | <u>1.98</u> <br> <u>%</u>  | <u>1.97</u> <br> <u>%</u>  |
|  |  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Core Net Interest Margin**  |  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income (FTE)  |  | $48916  | $50122  | $43042  | $39459  | $40425  |
| &nbsp;&nbsp;&nbsp;&nbsp; Less purchase accounting adjustments  |  | <u>1086</u>  | <u>818</u>  | <u>605</u>  | <u>800</u>  | <u>861</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income, net of purchase accounting adj  | J  | $<u>47830</u>  | $<u>49304</u>  | $<u>42437</u>  | $<u>38659</u>  | $<u>39564</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total average earning assets  |  | $5799075  | $5727211  | $5573163  | $5669057  | $5155536  |
| &nbsp;&nbsp;&nbsp;&nbsp; Add average balance of loan valuation discount  |  | <u>10928</u>  | <u>2681</u>  | <u>3085</u>  | <u>3836</u>  | <u>4353</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avg earning assets, excluding loan valuation discount  | K  | $<u>5810003</u>  | $<u>5729892</u>  | $<u>5576248</u>  | $<u>5672893</u>  | $<u>5159889</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Core net interest margin  | J/K  | <u>3.29</u> <br> <u>%</u>  | <u>3.44</u> <br> <u>%</u>  | <u>3.04</u> <br> <u>%</u>  | <u>2.73</u> <br> <u>%</u>  | <u>3.07</u> <br> <u>%</u>  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Efficiency Ratio**  |  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating Expense  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest expense  |  | $35040  | $35903  | $30955  | $28590  | $30789  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-tax non-operating expenses  |  | <u>(1190</u> <br> <u>)</u>  | <u>(3641</u> <br> <u>)</u>  | <u>(1337</u> <br> <u>)</u>  | <u>(408</u> <br> <u>)</u>  | <u>(1602</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted Operating Expense  | L  | $<u>33850</u>  | $<u>32262</u>  | $<u>29618</u>  | $<u>28182</u>  | $<u>29187</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating Revenue  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income, FTE  |  | $48916  | $50122  | $43042  | $39459  | $40425  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest income  |  | 8131  | 9022  | 8664  | 11157  | 9593  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-tax non-operating items  |  | <u>-</u>  | <u>-</u>  | <u>(336</u> <br> <u>)</u>  | <u>(2331</u> <br> <u>)</u>  | <u>(1300</u> <br> <u>)</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted Operating Revenue  | M  | $<u>57047</u>  | $<u>59144</u>  | $<u>51370</u>  | $<u>48285</u>  | $<u>48718</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Efficiency Ratio, operating  | L/M  | 59.34 <br> %  | 54.55 <br> %  | 57.66 <br> %  | 58.37 <br> %  | 56.91 <br> %  |
|  |  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Return Ratios**  |  | **Dec 31, <br> 2022**  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  | N  | $16295  | $14043  | $15753  | $16829  | $15791  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition and charter conversion charges  |  | 1190  | 3641  | 1172  | 408  | 1602  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on acquisition and charter conversion charges  |  | (301 )  | (920 )  | (296 )  | (103 )  | (405 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Initial provision for acquired loans  |  | -  | 3855  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on initial provision for acquired loans  |  | -  | (976 )  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bargain purchase gain and loss on sale of fixed assets  |  | -  | -  | (165 )  | -  | (1300 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on bargain purchase gain and loss on sale of fixed assets  |  | -  | -  | 41  | -  | 329  |
| &nbsp;&nbsp;&nbsp;&nbsp; Treasury awards  |  | -  | -  | (171 )  | (702 )  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on Treasury awards  |  | -  | -  | 43  | 178  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charitable contributions related to Treasury awards  |  | -  | -  | 165  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax on charitable contributions related to Treasury awards  |  | -  | -  | (42 )  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  |  | <u>-</u>  | <u>-</u>  | <u>-</u>  | <u>(1630</u> <br> <u>)</u>  | <u>-</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net earnings available to common shareholders, operating  | O  | $<u>17184</u>  | $<u>19643</u>  | $<u>16500</u>  | $<u>14980</u>  | $<u>16017</u>  |
| **Pre-Tax Pre-Provision Operating Earnings**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Earnings before income taxes  | P  | $20307  | $17967  | $19210  | $21206  | $19665  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition and charter conversion charges  |  | 1190  | 3641  | 1172  | 408  | 1602  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for loan losses  |  | 705  | 4300  | 600  | -  | (1104 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bargain purchase gain and loss on sale of fixed assets  |  | -  | -  | (165 )  | -  | (1300 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Treasury Awards  |  | -  | -  | (171 )  | (702 )  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charitable contributions related to Treasury awards  |  | -  | -  | 165  | -  | -  |
| &nbsp;&nbsp;&nbsp;&nbsp; BOLI income from death proceeds  |  | <u>-</u>  | <u>-</u>  | <u>-</u>  | <u>(1630</u> <br> <u>)</u>  | <u>-</u>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pre-Tax, Pre-Provision Operating Earnings  | Q  | $<u>22202</u>  | $<u>25908</u>  | $<u>20811</u>  | $<u>19282</u>  | $<u>18863</u>  |
| Annualized return on avg assets  | N/A  | 1.01 <br> %  | 0.88 <br> %  | 1.03 <br> %  | 1.09 <br> %  | 1.12 <br> %  |
| Annualized return on avg assets, oper  | O/A  | 1.07 <br> %  | 1.23 <br> %  | 1.08 <br> %  | 0.97 <br> %  | 1.13 <br> %  |
| Annualized pre-tax, pre-provision, oper  | Q/A  | 1.38 <br> %  | 1.63 <br> %  | 1.36 <br> %  | 1.24 <br> %  | 1.33 <br> %  |
| Annualized return on avg common equity, oper  | O/C  | 11.14 <br> %  | 12.46 <br> %  | 11.12 <br> %  | 8.99 <br> %  | 9.53 <br> %  |
| Annualized return on avg tangible common equity, operating  | O/D  | 16.83 <br> %  | 18.49 <br> %  | 16.14 <br> %  | 12.46 <br> %  | 12.80 <br> %  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
| **Capital Ratios**  | **Dec 31, <br> 2022\***  | **Sept 30, <br> 2022**  | **June 30, <br> 2022**  | **Mar 31, <br> 2022**  | **Dec 31, <br> 2021**  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common equity tier 1 (CET1) ratio  | 12.7 <br> %  | 12.6 <br> %  | 12.7 <br> %  | 13.1 <br> %  | 13.7 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Leverage (Tier 1) ratio  | 9.4 <br> %  | 9.3 <br> %  | 8.6 <br> %  | 8.2 <br> %  | 9.2 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total risk based capital ratio  | 16.7 <br> %  | 16.7 <br> %  | 17.3 <br> %  | 17.9 <br> %  | 18.6 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tangible common equity ratio  | 6.9 <br> %  | 6.5 <br> %  | 6.4 <br> %  | 6.7 <br> %  | 8.3 <br> %  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*estimated  |  |  |  |  |  |

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## Contacts
For additional information, contact: <br> M. Ray "Hoppy" Cole <br> Chief Executive Officer <br> Dee Dee Lowery <br> Chief Financial Officer <br> (601) 268-8998