Growing in the Gulf South. Results of 2014 and 1Q15 1

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1 Growing in the Gulf South Results of 2014 and 1Q15 1

2 Forward Looking Statement Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about the companies anticipated future financial performance. This act provides a safe harbor for such disclosure which protects First Bancshares Inc. from unwarranted litigation if actual results are different from management expectations. This presentation contains forward-looking statements and reflects management s current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the actual results and experience of First Bancshares Inc. to differ from the anticipated results and expectations expressed in such forward-looking statements. First Bancshares Inc. undertakes no obligation to update or clarify forwardlooking statements, whether as a result of new information, future events or otherwise. 2

3 Overview Bank Established in 1995, Hattiesburg, MS Strong Growth Rates from Acquisitions and Legacy Branches 30 Locations in Gulf South: MS, LA, AL Doubled Assets in 5 Years to $1.1 Billion Increasing Profitability with Rapid Expansion Net Income to Common % Change 2010 $2.2M $2.5M 13.6% 2012 $3.6M 44.0% 2013 $4.2M 16.7% 2014 $6.3M 50.0% 1Q14 $1.3M Q15 $1.9M 46.2% 3

4 Highlights of 2014 Superior Growth % Increase % Increase Total Assets 16.2% Total Interest Income 16.1% Total Loans 21.7% Net Interest Income 14.2% Total Deposits 14.5% Net Income to Common 48.3% 4

5 Investment Perspective Strategically Positioned for Acquisition and Growth Superior Performance of 5 Year Plan Strong Fundamentals and Asset Quality Sustainable Results with Positive Earnings Trend Shareholder Value and Return Successful Team of Talented Bankers 5

6 Growth Strategy Performance 2009 Tri-State Expansion Strategy: 5 Year Plan Branch Expansion and Bank Acquisitions: <$500 M in Assets In Growing Areas of MS, AL and LA 2011 Acquired 8 Whitney Branches in MS: $179 M Deposits 2013 De Novo Expansion: Ocean Springs, MS Branch 2013 Successful Private Placement: $20 M 2013 Acquired First National Bank of Baldwin County: $187 M Assets Acquisition of BCB Holding Co. of Mobile (Bay Bank) Assets of $79 Million/Valued at 115% of Tangible Book Post Acquisition: 30 locations; $250 M Deposits in Mobile MSA 9 th Market Ranking Opened Full Service Office in Baton Rouge, LA on 12/1 Opened Slidell Loan Production Office (New Orleans area) 2015 Potential Acquisitions: 100+ Banks in LA, MS, and AL 6

7 Growth Strategy Right Place, Right Time Unemployment February 2015 Wage and Salary Growth February Population Growth Baton Rouge 5.5% 2.4% 13.7% Hattiesburg 5.8% 2.1% 15.4% Jackson 5.4% 1.9% 8.4% Gulfport 6.8% 1.7% 1.8%* Mobile 6.4% 1.5% 3.3% Pensacola 5.5% 3.5% 8.9% Source: US Census 7

8 Growth Strategy Right Place, Right Time Southern Region Northern Region Alabama Region Military and Defense Petrochemical Manufacturing Mobile Port: 128,000 jobs Shipbuilding Tourism Major Universities Movie Industry Thyssen Krupp: $5.1 B Plant Austal Shipbuilding: 4,200 jobs Gaming Technology: IBM hub Aviation/Airspace: Airbus Major Port State Capital USA: Medical School BP Oil Settlement Major Port Tourism / Hospitality (Coast) 8

9 Superior Performance 5 Year Plan CAGR = 18.0% Legacy Bank CAGR = 6.2% Asset Growth $1, $478 Acquired Assets Organic Assets $ in millions

10 Strong Fundamentals Well-Capitalized $ In Millions 12/31/11 12/31/12 12/31/13 12/31/14 Tangible Common Equity/ Tangible Assets 4.74% 5.24% 5.90% 5.96% Leverage Ratio 8.48% 8.55% 8.95% 8.43% Tier 1 Risked Based Capital Ratio Tier 1 Risked Based Common Equity Ratio 12.56% 12.82% 12.49% 11.48% 6.68% 7.18% 8.40% 7.99% 10

11 Strong Fundamentals Financial Highlights $1,200 $1,100 $1,146 $ In Millions $1,000 Balance Sheet $900 $800 $700 $600 $500 $400 $300 12/31/11 12/31/12 12/31/13 12/31/14 3/31/15 Total Assets $681 $721 $941 $1,064 $1,146 $681 $718 Gross Loans $388 $414 $583 $707 Average $718 $573 Loan/Deposit Ratio Deposits $573 $597 $780 $893 $985 $ % 64.5% 68.1% 72.1% 75.7% $985 $ in millions Loans/Deposits 67.15% 69.3% 74.7% 79.2% 72.9% 12/31/11 12/31/12 12/31/13 12/31/14 3/31/15 Total Assets Gross Loans Deposits 11

12 Strong Fundamentals Deposit Portfolio Deposits: $985 Million 3/31/ % 8.2% 20.7% Checking 6.9% NOW Money Market Savings 11.7% 41.1% Time > $100K Time < $100K 77% of Deposits are Non-CD 12

13 Strong Fundamentals Loan Portfolio 5.4% 4.1% 2.1% Loans: $718 Million 3/31/ % Owner Occupied CRE Non-Owner Occupied CRE $160 M $83 M 15.5% Total $243 M 13.0% 26.0% Non-Farm Non-Residential Mortgage Residential Construction Commercial Home Equity Consumer Other $243 M $186 M $93 M $111 M $39 M $15 M $29 M 13

14 Strong Fundamentals Loan Portfolio Retail Center $30.7 M Professional Office Space $16.9 M Multi-family $20.2 M Mini Warehouses $10.2 M Warehouse Space $8.6 M Retail Buildings $15.1 M Other $18.2 M Total $199.0 M Construction and Commercial RE: $250.7 Million 3/31/15 4.6% 47.8% 26.7% Construction Loans Land Development Undeveloped Land Commercial RE Other RE Loans 10.1% 10.8% Residential Commercial $26.5 M $40.4 M 14

15 Strong Asset Quality Ratios Q15 Past Dues 30 > (%) NPA/Assets (%) NCO/Avg. Loans (%) Source: SNL Financial LC 15

16 Sustainable Results Positive Earnings Trend $40.00 $30.00 Net Interest Income $33.40 $20.00 $10.00 $16.30 $8.90 $ Q15 In Millions Q15 Net Income to Common $2.2 $2.5 $3.6 $4.2 $6.3 $1.9 EPS (diluted) $0.74 $0.82 $1.16 $0.96 $1.19 $0.36 Core EPS $0.74 $0.82 $1.16 $1.12 $1.17 $

17 Sustainable Results NIM 3.90% 3.80% 3.84% Net Interest Margin 3.70% 3.60% 3.60% 3.63% 3.70% 3.60% 3.50% 3.44% 3.40% 3.30% 3.20% Q15 17

18 Shareholder Value and Return 12 Months Ended Three Months Ended 12/31/14 12/31/13 3/31/15 3/31/14 ROA (%) ROTCE(%) ROE (%) Efficiency Ratio (%)

19 Shareholder Value and Return Market Information and Historical Pricing /17/15 Average Stock Price ($) Market Capitalization ($) In Millions Average Daily Volume ,679 3,841 4,453 7,244 Price/LTM EPS (x) Price/Tangible Book (%)

20 Shareholder Value and Return 25 Price/Earnings LTM (x) Gulf States Peer Group $0.5 B to $4.0 B in Assets Peer Median 13.7x 13.2x TBK MSL CIZN AUBN FNBC FBMS USBI HBCP ISTR GNBC VBTX Source: SNL Financial LC Closing Prices 4/16/15 *Gulf States Peer Group: Banks in LA, MS, AL and TX 20

21 Shareholder Value and Return 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Price/Tangible Book Gulf States Peer Group $0.5 B to $4.0 B in Assets Peer Median 118.5% 132.1% PFBX USBI HBCP CIZN ISTR GNBC AUBN TBK FBMS MSL VBTX FNBC Source: SNL Financial LC Closing Prices 4/16/15 *Gulf States Peer Group: Banks in LA, MS, AL and TX 21

22 Successful Leadership Team Executives E. Ricky Gibson Chairman Director for 17 Years Successful Entrepreneur for 26 Years M. Ray Hoppy Cole, Jr. President, CEO 29 Years Experience Dee Dee Lowery Executive VP, CFO 25 Years Experience 22

23 Successful Leadership Team Executives Ion Mixon Sr. VP, Risk Manager 16 years experience Chris Ryals Executive VP, COO 21 years experience Hayden Mitchell Executive VP, Chief Retail Banking Officer 39 years experience Ray Wesson President, Southern Region 23 years experience Eric Waldron President, Northern Region 20 years experience Carol Daniel Executive VP, Credit Administrator 33 years experience Dave Bush Executive VP, Private Banking Manager 36 years experience Wade Neth President, Alabama Region 29 years experience 23

24 Six Reasons to Invest in The First Consistent and Increasing Earnings Located in a Robust and Growing Region Proven Ability to Execute Growth Strategy 100 Potential M&A Targets: LA, MS, AL Proven Shareholder Value and Return Experienced and Successful Leadership 24

25 Growing in the Gulf South 25