Business Wire | Jan 26, 2021 09:30PM EST

The First Bancshares, Inc. Reports Results for Fourth Quarter Ended December 31, 2020; Increases Quarterly Dividend 8%

Jan. 27, 2021

HATTIESBURG, Miss.--(BUSINESS WIRE)--Jan. 27, 2021--The First Bancshares, Inc. ("FBMS" or "the Company") (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders for the quarter ended December 31, 2020.

Highlights for the Quarter:

* Net income available to common shareholders totaled $15.3 million for the quarter ended December 31, 2020, representing an increase of $3.4 million, or 28.7%, compared to $11.9 million for the quarter ended September 30, 2020. * Net income available to common shareholders totaled $15.3 million for the quarter ended December 31, 2020, an increase of $3.5 million, or 29.4%, compared to $11.9 million for the quarter ended December 31, 2019. * Operating earnings (non-GAAP), which excludes acquisition charges, treasury awards, gain from bargain purchase of Southwest Georgia Financial Corporation ("SGB"), totaled $13.8 million for the quarter ended December 31, 2020, representing an increase of 14.4% as compared to $12.1 million for the third quarter of 2020. Operating earnings (non-GAAP) for the fourth quarter of 2020 reflect $1.8 million in fees associated with the Paycheck Protection Program ("PPP") loans. In sequential quarter comparison, net interest income includes $0.6 million in additional interest expense related to the subordinated debt issued in September 2020. Salaries and employee benefits include $0.7 million related to unused vacation paid out to employees and early vesting of restricted stock grants for the Company's directors. * Operating earnings (non-GAAP), which excludes acquisition charges, treasury awards, gain from bargain purchase of SGB, increased 5.1% to $13.8 million for the quarter ended December 31, 2020 as compared to $13.2 million for the fourth quarter of 2019. * Provision for loan losses totaled $3.5 million for the quarter as compared to $6.9 million for the sequential quarter comparison and $0.9 million for the fourth quarter of 2019. * During the quarter, the Company resumed the share buyback program and purchased 289,302 shares of stock.

Highlights for the Year:

* In year-over-year comparison, net income available to common shareholders increased $8.8 million, or 20.0%, from $43.7 million for the year ended December 31, 2019 to $52.5 million for the year ended December 31, 2020. * Excluding the bargain purchase and sale of land gains of $8.3 million, net of tax, and the increased provision expense of $16.5 million, net of tax, net income available to common shareholders increased $17.0 million in year-over-year comparison. * Provision for loan losses totaled $25.2 million for the year ended December 31, 2020 as compared to $3.7 million for the year ended December 31, 2019, an increase of $21.4 million or 572.8%. * As of December 31, 2020, total COVID related modifications were $82.0 million, representing 2.6% of the loan portfolio and down from a peak of $676 million or 21% of the loan portfolio. For additional details related to our response and potential effects of COVID-19, see the investor presentation filed and available under presentations and press releases included in the investor relations section of the company's website: www.thefirstbank.com. * During the first quarter of 2020, the Company elected to delay the adoption of the Current Expected Credit Losses ("CECL") afforded through the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The Company currently anticipates CECL adoption to occur as of January 1, 2021.

M. Ray "Hoppy" Cole, President and Chief Executive Officer, commented, "We are extremely proud of the way our team responded to the uncertainty and challenges in 2020. Their commitment to serving our clients, their ability to improvise and be nimble, showed in the performance of our Company. In a year with a multitude of headwinds that negatively impacted our industry, we continued to grow our asset base, increase our earnings and improve the overall capitalization of the Company. We believe that we are well positioned to take advantage of new growth opportunities as our economy continues to heal from the effects of the pandemic."

Quarterly Earnings

Net income available to common shareholders totaled $15.3 million for the quarter ended December 31, 2020, an increase of $3.4 million, or 28.7%, compared to $11.9 million for the quarter ended September 30, 2020. The Company recorded an additional $0.8 million bargain purchase gain due to a measurement period adjustment related to the tax impact of the CARES Act on the acquisition of SGB as well as income in the form of a financial assistance grant from the U. S. Department of Treasury of $0.7 million, net of tax during the quarter ended December 31, 2020. In sequential quarter comparison, net interest income includes $0.6 million in additional interest expense related to the subordinated debt issued in September 2020. During the fourth quarter of 2020, the Company recorded additional expense related to unused vacation paid out to employees as well as expense related to the early vesting of restricted stock grants to the Company's directors in the amount of $0.7 million.

Net income available to common shareholders totaled $15.3 million for the quarter ended December 31, 2020, an increase of $3.5 million, or 29.4%, compared to $11.9 million for the quarter ended December 31, 2019.

Operating earnings (non-GAAP), which exclude acquisition charges, treasury awards, and gains, increased 5.1% to $13.8 million for the quarter ended December 31, 2020 as compared to $13.2 million for the fourth quarter of 2019 and increased 14.4% to $13.8 million for the quarter ended December 31, 2020 as compared to $12.1 million for the third quarter of 2020.

Provision for loan losses totaled $3.5 million for the quarter ended December 31, 2020, an increase of $2.7 million, or 314.5% as compared to $0.9 million for the fourth quarter of 2019 and a decrease of $3.4 million, or 49.1% as compared to $6.9 million for the third quarter of 2020.

Earnings Per Share

For the fourth quarter of 2020, fully diluted earnings per share were $0.72, compared to $0.64 for the fourth quarter of 2019. The additional provision for loan losses expense of $2.7 million, or $2.1 million net of tax, for the quarter ended December 31, 2020, which is primarily attributable to the COVID-19 pandemic, represents a decrease of $0.09 in fully diluted earnings per share.

For the fourth quarter of 2020, fully diluted earnings per share were $0.72, compared to $0.55 for the third quarter of 2020. The bargain purchase and sale of land gains along with the financial assistance grant recognized during the quarter ended December 31, 2020 accounted for an increase of $0.08 in fully diluted earnings per share.

Fully diluted earnings per share for the quarter ended December 31, 2020 include the purchase by the Company of 289,302 shares during the fourth quarter of 2020, issuance of 2,546,967 shares of our common stock during the second quarter of 2020 in association with the acquisition of SGB and the issuance of 1,682,889 shares of our common stock during the fourth quarter of 2019 in association with the acquisition of First Florida Bancorp, Inc. ("FFB"). Fully diluted earnings per share for all quarters of 2020 include the purchase by the Company of 168,188 shares throughout the calendar year of 2019.

Fully diluted earnings per share for the quarter ended December 31, 2019 include the issuance of 2,377,501 shares of our common stock during the first quarter of 2019 in association with the acquisition of FPB Financial Corp ("FPB") and include the issuance of 1,682,889 shares of our common stock during the fourth quarter of 2019 in association with the acquisition of FFB.

Balance Sheet

Consolidated assets decreased $11.4 million to $5.153 billion at December 31, 2020 from $5.164 billion at September 30, 2020. PPP loans at December 31, 2020 were $239.6 million, down $20.6 million from September 30, 2020.

Total average loans were $3.154 billion for the quarter ended December 31, 2020, as compared to $3.166 billion for the quarter ended September 30, 2020, and $2.513 billion for the quarter ended December 31, 2019, representing a decrease of $12.1 million, or 0.4%, for the sequential quarter comparison, and an increase of $641.0 million, or 25.5%, in prior year quarterly comparison. The acquisitions of FFB and SGB accounted for $468.6 million, net of fair value marks, of the total increase in average loans as compared to the fourth quarter of 2019.

Average loans decreased $12.1 million, or 0.4% for the sequential quarter comparison. Excluding the acquired loans and PPP loans, average loans decreased $79.7 million, or 3.2% as compared to the quarter ended December 31, 2019.

Total average deposits were $4.195 billion for the quarter ended December 31, 2020, as compared to $4.212 billion for the quarter ended September 30, 2020, and $2.964 billion for the quarter ended December 31, 2019, representing a decrease of $16.9 million, or 0.4%, for the sequential quarter comparison, and an increase of $1.232 billion, or 41.6%, in prior year quarterly comparison. The acquisitions of FFB and SGB accounted for $663.6 million of the total increase in average deposits as compared to the fourth quarter of 2019.

Average deposits decreased $16.9 million, or 0.4% for the sequential quarter comparison. Excluding the acquired deposits, average deposits increased $568.3 million, or 19.2% as compared to the quarter ended December 31, 2019.

The Company implemented Deposit Reclassification at the beginning of 2020. This program reclassifies noninterest bearing deposits and NOW deposit balances to money market accounts. This program reduces our reserve balance required at the Federal Reserve Bank of Atlanta which provides additional funds for liquidity and lending. At quarter end December 31, 2020, $614.9 million in noninterest deposit balances and $683.2 million in NOW deposit accounts were reclassified as money market accounts.

Asset Quality

Nonperforming assets totaled $42.3 million at December 31, 2020, a decrease of $2.6 million compared to $44.9 million at September 30, 2020 and a decrease of $6.1 million compared to $48.4 million at December 31, 2019. Nonaccrual loans decreased $3.5 million as compared to September 30, 2020 and decreased $4.6 million as compared to December 31, 2019. Other real estate increased $0.6 million as compared to September 30, 2020 and decreased $1.5 million as compared to December 31, 2019.

The ratio of the allowance for loan and leases losses (ALLL) to total loans was 1.15% at December 31, 2020, 1.09% at September 30, 2020 and 0.53% at December 31, 2019. The ratio of annualized net charge-offs (recoveries) to total loans was 0.25% for the quarter ended December 31, 2020 compared to 0.09% for the quarter ended September 30, 2020 and (0.002%) for the quarter ended December 31, 2019.

Fourth Quarter 2020 vs. Fourth Quarter 2019 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2020 totaled $15.3 million compared to $11.9 million for the fourth quarter of 2019, an increase of $3.5 million or 29.4%. In comparing the quarters, the increase in net income available to common shareholders was partially offset by an increased provision for loan losses in the amount of $3.5 million for the fourth quarter of 2020 as compared to $0.9 million for the fourth quarter of 2019.

Net interest income for the fourth quarter of 2020 was $39.5 million, an increase of $6.0 million when compared to the fourth quarter of 2019. The increase was due to interest income earned on a higher volume of loans. Fully tax equivalent ("FTE") net interest income (non-GAAP) totaled $40.1 million and $33.8 million for the fourth quarter of 2020 and 2019, respectively. FTE net interest income (non-GAAP) increased $6.3 million in the prior year quarterly comparison mainly due to increased loan volume. Purchase accounting adjustments decreased $0.3 million for the fourth quarter comparisons. Fourth quarter 2020 FTE net interest margin of 3.51% which included 16 basis points related to purchase accounting adjustments compared to 4.06% for the same quarter in 2019, which included 26 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin decreased 45 basis points in prior year quarterly comparison.

Non-interest income increased $3.4 million for the fourth quarter of 2020 as compared to the fourth quarter of 2019. Mortgage income increased $1.6 million in prior year quarterly comparison. The Company recorded a $0.8 million bargain purchase gain on the acquisition of SGB during the quarter ended December 31, 2020.

Fourth quarter 2020 non-interest expense was $27.9 million, an increase of $2.9 million, or 11.8% as compared to the fourth quarter of 2019. Excluding the net decrease in acquisition charges of $2.3 million for the quarterly comparison, non-interest expense increased $5.2 million in the fourth quarter of 2020, of which $2.4 million was attributable to the operations of FFB and SGB, as compared to fourth quarter of 2019.

Investment securities totaled $1.050 billion, or 20.4% of total assets at December 31, 2020, versus $791.8 million, or 20.1% of total assets at December 31, 2019. The average balance of investment securities increased $276.1 million in prior year quarterly comparison, primarily as a result of the acquisition of SGB. The average tax equivalent yield on investment securities decreased 61 basis points to 2.45% from 3.06% in prior year quarterly comparison. The investment portfolio had a net unrealized gain of $34.6 million at December 31, 2020 as compared to a net unrealized gain of $13.5 million at December 31, 2019.

The FTE average yield on all earning assets (non-GAAP) decreased 86 basis points in prior year quarterly comparison, from 4.90% for the fourth quarter of 2019 to 4.04% for the fourth quarter of 2020. Average interest expense decreased 53 basis points from 1.11% for the fourth quarter of 2019 to 0.58% for the fourth quarter of 2020. Cost of all deposits averaged 39 basis points for the fourth quarter of 2020 compared to 73 basis points for the fourth quarter of 2019.

Fourth Quarter 2020 vs Third Quarter 2020 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2020 increased $3.4 million to $15.3 million compared to $11.9 million for the third quarter of 2020. During the fourth quarter of 2020, the Company recorded a bargain purchase gain in the amount of $0.8 million, net of tax and received a financial assistance grant from the U. S. Department of Treasury of $0.7 million, net of tax.

Net interest income for the fourth quarter of 2020 was $39.5 million as compared to $40.0 million for the third quarter of 2020, a decrease of $0.5 million. FTE net interest income (non-GAAP) decreased $0.5 million to $40.1 million from $40.6 million in sequential-quarter comparison. Fourth quarter 2020 FTE net interest margin (non-GAAP) of 3.51% included 16 basis points related to purchase accounting adjustments compared to 3.58% for the third quarter in 2020, which included 17 basis points related to purchase accounting adjustments. Excluding the purchase accounting adjustments, the core net interest margin (non-GAAP) decreased 6 basis point in sequential quarter comparison.

Investment securities totaled $1.050 billion, or 20.4% of total assets at December 31, 2020, versus $984.9 million, or 19.1% of total assets at September 30, 2020. The average balance of investment securities increased $63.1 million in sequential-quarter comparison. The average tax equivalent yield on investment securities (non-GAAP) decreased 3 basis points to 2.45% from 2.48% in sequential-quarter comparison. The investment portfolio had a net unrealized gain of $34.6 million at December 31, 2020 as compared to a net unrealized gain of $33.2 million at September 30, 2020.

The FTE average yield on all earning assets decreased in sequential-quarter comparison from 4.14% to 4.04%. Average interest expense decreased 3 basis points from 0.61% for the third quarter of 2020 to 0.58% for the fourth quarter of 2020. Cost of all deposits averaged 39 basis points for the fourth quarter of 2020 compared to 47 basis points for the third quarter of 2020.

Excluding the treasury awards and bargain purchase gain, non-interest income increased $0.4 million in sequential-quarter comparison resulting from increased mortgage income in the amount of $0.3 million.

Non-interest expense for the fourth quarter of 2020 was $27.9 million compared to $26.9 million for the third quarter of 2020. Excluding acquisition charges, non-interest expense increased $1.2 million. During the fourth quarter of 2020, the Company recorded additional expense related to unused vacation paid out to employees as well as expense related to the early vesting of restricted stock grants to the Company's directors in the amount of $0.7 million.

Year-to-Date Earnings Comparison

In year-over-year comparison, net income available to common shareholders increased $8.8 million, or 20.0%, from $43.7 million for the year ended December 31, 2019 to $52.5 million for the year ended December 31, 2020. Excluding the bargain purchase and sale of land gains of $8.3 million, net of tax, and the increased provision expense of $16.5 million, net of tax, net income available to common shareholders increased $17.0 million in year-over-year comparison.

Net interest income increased $30.9 million in year-over-year comparison, primarily due to interest income earned on a higher volume of loans and securities.

Non-interest income increased $6.5 million in year-over-year comparison excluding the awards and gains mentioned above. Mortgage income increased $4.5 million and interchange fee income increased $1.4 million in the year-over-year comparison.

Non-interest expense was $106.3 million for the year ended December 31, 2020, an increase of $17.8 million as compared to the same period ended December 31, 2019. $12.3 million of the increase is related to the operations of FFB and SGB.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.13 per share to be paid on its common stock on February 25, 2021 to shareholders of record as of the close of business on February 10, 2021.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association ("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 operating net earnings, operating efficiency ratio, pre-tax, pre-provision operating earnings, operating earnings per share, diluted operating earnings per common share, fully tax equivalent net interest income, fully tax equivalent net interest margin, core net interest margin, average tax equivalent yield on investment securities, fully tax equivalent average yield on all earning assets, total tangible common equity, tangible book value per common share and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company's results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).

Forward Looking Statements

This news release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as "believes," "anticipates," "expects," "may," "will," "assumes," "should," "predicts," "could," "would," "intends," "targets," "estimates," "projects," "plans," "potential," "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) changes in economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations; (3) interest rate risk; (4) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (5) risks related to the Company's recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (6) changes in management's plans for the future; (7) credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values, or competition; (8) changes in accounting principles, policies, or guidelines; (9) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs related to the COVID-19 pandemic; (10) the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (11) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (12) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission, which are available on the SEC's website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

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

FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands except per share data)

Quarter Quarter Quarter Quarter QuarterEARNINGS DATA Ended Ended Ended Ended Ended 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19

Total Interest Income $ 45,613 $ 46,337 $ 45,799 $ 41,598 $ 40,444

Total Interest Expense 6,147 6,365 6,619 7,533 7,000

Net Interest Income 39,466 39,972 39,180 34,065 33,444

FTE net interest income* 40,119 40,608 39,772 34,526 33,847

Provision for loan 3,523 6,921 7,606 7,102 850losses

Non-interest income 10,928 8,794 15,680 6,474 7,574

Non-interest expense 27,897 26,935 28,070 23,439 24,960

Earnings before income 18,974 14,910 19,184 9,998 15,208taxes

Income tax expense 3,639 2,993 2,241 1,687 3,353

Net income available to $ 15,335 $ 11,917 $ 16,943 $ 8,311 $ 11,855common shareholders





PER COMMON SHARE DATA

Basic earnings per share $ 0.72 $ 0.56 $ 0.79 $ 0.44 $ 0.65

Diluted earnings per 0.72 0.55 0.79 0.44 0.64share

Diluted earnings per 0.65 0.56 0.52 0.47 0.72share, operating*

Quarterly dividends per .12 .10 .10 .10 .08share

Book value per common 30.54 29.82 29.34 29.49 28.91share at end of period

Tangible book value percommon share at period 21.65 20.93 20.40 19.52 18.87end*

Market price at end of 30.88 20.97 22.50 19.07 35.52period

Shares outstanding at 21,115,009 21,408,017 21,395,258 18,851,955 18,802,266period end

Weighted average shares outstanding:

Basic 21,308,838 21,405,309 21,341,913 18,818,115 18,241,244

Diluted 21,421,367 21,544,040 21,437,180 18,942,129 18,398,609





AVERAGE BALANCE SHEET DATA

Total assets $5,136,136 $5,085,340 $4,913,620 $3,990,493 $3,767,587

Loans and leases 3,153,543 3,165,653 3,156,524 2,602,340 2,512,524

Total deposits 4,195,492 4,212,410 4,069,239 3,186,943 2,963,603

Total common equity 640,828 632,527 607,127 547,309 518,070

Total tangible common 451,011 441,635 423,966 358,889 346,742equity*





SELECTED RATIOS

Annualized return on avg 1.19% 0.94% 1.38% 0.83% 1.26%assets (ROA)

Annualized return on avg 1.08% 0.95% 0.91% 0.89% 1.40%assets, operating*

Annualized pre-tax,pre-provision, 1.62% 1.74% 1.75% 1.79% 1.87%operating*

Annualized return on avgcommon equity, 8.63% 7.65% 7.40% 6.50% 10.16%operating*

Annualized return on avgtangible common equity, 12.27% 10.95% 10.60% 9.91% 15.18%oper*

Average loans to average 75.17% 75.15% 77.57% 81.66% 84.78%deposits

FTE Net Interest Margin* 3.51% 3.58% 3.63% 3.93% 4.06%

Efficiency Ratio 54.65% 54.52% 50.62% 57.17% 60.26%

Efficiency Ratio, 56.54% 54.04% 53.91% 55.36% 55.67%operating*

*See reconciliation ofNon-GAAP financial measures

CREDIT QUALITY

Allowance for loanlosses (ALLL) as a % of 1.15% 1.09% 0.88% 0.80% 0.53%total loans

Nonperforming assets to 8.57% 9.31% 9.84% 12.12% 13.13%tangible equity + ALLL

Nonperforming assets to 1.35% 1.42% 1.44% 1.81% 1.86%total loans + OREO

Annualized QTD netcharge-offs (recoveries) 0.25% 0.09% 0.04% 0.03% (0.002%)to total loans



FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands)

BALANCE SHEET Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2020 2020 2020 2020 2019

Assets

Cash and cash $ 562,554 $ 603,736 $ 539,125 $ 286,759 $ 168,864equivalents

Securities 1,022,182 957,458 927,205 762,977 765,087available-for-sale

Securities - - - - -held-to-maturity

Other investments 27,475 27,461 26,059 25,911 26.690

Total investment 1,049,657 984,919 953,264 788,888 791,777securities

Loans held for sale 21,432 22,482 18,632 13,288 10,810

Total loans 3,123,678 3,155,932 3,171,535 2,602,288 2,600,358

Allowance for loan (35,820) (34,256) (28,064) (20,804) (13,908)losses

Loans, net 3,087,858 3,121,676 3,143,471 2,581,484 2,586,450

Premises and equipment 123,450 124,875 125,053 108,013 104,980

Other Real Estate Owned 5,802 5,202 5,471 6,974 7,299

Goodwill and other 187,700 190,380 191,431 187,927 188,865intangibles

Other assets 114,307 110,889 108,458 88,468 82,818

Total assets $5,152,760 $5,164,159 $5,084,905 $4,061,801 $3,941,863



Liabilities and Shareholders' Equity

Non-interest bearing $ 571,079 $ 482,236 $ 486,039 $ 340,606 $ 723,208deposits^

Interest-bearing 3,644,201 3,746,978 3,730,851 2,937,188 2,353,325deposits

Total deposits 4,215,280 4,229,214 4,216,890 3,277,794 3,076,533

Borrowings 114,647 115,827 116,005 116,180 214,319

Subordinated debentures 144,592 144,709 80,756 80,717 80,678

Other liabilities 33,426 36,040 43,459 31,184 26,675

Total liabilities 4,507,945 4,525,790 4,457,110 3,505,875 3,398,205

Total shareholders' 644,815 638,369 627,795 555,926 543,658equity

Total liabilities and $5,152,760 $5,164,159 $5,084,905 $4,061,801 $3,941,863shareholders' equity

^Reclassified $614,900 to interest-bearing deposits for Dec 31, 2020





FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

Three Months EndedEARNINGS STATEMENT 12/31/ 9/30/20 6/30/20 3/31/20 12/31/ 20 19

Interest Income:

Loans, including fees $ $ $ $ $ 38,472 39,344 39,184 34,290 33,556

Investment securities 5,606 5,309 5,187 5,304 5,298

Accretion of purchase accounting 1,494 1,655 1,409 1,715 1,553adjustments

Other interest income 41 29 19 289 37

Total interest income 45,613 46,337 45,799 41,598 40,444

Interest Expense:

Deposits 4,262 5,110 5,967 6,034 5,489

Borrowings 260 265 224 917 771

Subordinated debentures 1,823 1,188 1,176 1,203 1,213

Accretion of purchase accounting (198) (198) (748) (621) (473)adjustments

Total interest expense 6,147 6,365 6,619 7,533 7,000

Net interest income 39,466 39,972 39,180 34,065 33,444

Provision for loan losses 3,523 6,921 7,606 7,102 850

Net interest income after provision for 35,943 33,051 31,574 26,963 32,594loan losses



Non-interest Income:

Service charges on deposit accounts 1,925 1,780 1,597 1,914 2,110

Mortgage Income 3,270 2,961 2,646 1,567 1,720

Interchange Fee Income 2,562 2,491 2,395 1,986 2,075

Gain (loss) on securities, net 3 32 73 174 (9)

Financial Assistance Award/Bank 968 - - - 714Enterprise Award

Bargain Purchase Gain and Gain on Sale of 812 - 7,643 - -Land

Other charges and fees 1,388 1,530 1,326 833 964

Total non-interest income 10,928 8,794 15,680 6,474 7,574



Non-interest expense:

Salaries and employee benefits 16,642 15,494 15,866 13,228 13,092

Occupancy expense 3,890 3,826 3,200 2,918 3,190

FDIC/OCC premiums 520 447 237 147 147

Marketing 71 24 25 213 248

Amortization of core deposit intangibles 1,052 1,052 1,052 938 907

Other professional services 764 990 984 874 951

Acquisition charges 41 238 2,295 740 2,300

Other non-interest expense 4,917 4,864 4,411 4,381 4,125

Total Non-interest expense 27,897 26,935 28,070 23,439 24,960

Earnings before income taxes 18,974 14,910 19,184 9,998 15,208

Income tax expense 3,639 2,993 2,241 1,687 3,353

Net income available to common $ $ $ $ 8,311 $shareholders 15,335 11,917 16,943 11,855





Diluted earnings per common share $ 0.72 $ 0.55 $ 0.79 $ 0.44 $ 0.64

Diluted earnings per common share, $ 0.65 $ 0.56 $ 0.52 $ 0.47 $ 0.72operating*

*See reconciliation of Non-GAAP financialmeasures



FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

EARNINGS STATEMENT

Year to Date

2020

2019

Interest Income:

Loans, including fees

$ 151,290

$ 123,316

Investment securities

21,406

19,406

Accretion of purchase accounting adjustments

6,273

5,541

Other interest income

379

266

Total interest income

179,348

148,529

Interest Expense:

Deposits

21,373

20,297

Borrowings

1,666

2,056

Subordinated debentures

5,390

4,904

Amortization of purchase accounting adjustments

(1,765)

(534)

Total interest expense

26,664

26,723

Net interest income

152,684

121,806

Provision for loan losses

25,151

3,738

Net interest income after provision for loan losses

127,533

118,068

Non-interest Income:

Service charges on deposit accounts

7,216

7,838

Mortgage Income

10,446

5,988

Interchange Fee Income

9,433

8,024

Gain (loss) on securities, net

281

122

Financial Assistance Award/Bank Enterprise Award

968

947

Bargain Purchase Gain and Gain on Sale of Land

8,455

-

Other charges and fees

5,077

4,028

Total non-interest income

41,876

26,947

Non-interest expense:

Salaries and employee benefits

61,230

47,016

Occupancy expense

13,833

10,796

FDIC/OCC premiums

1,351

632

Marketing

333

645

Amortization of core deposit intangibles

4,093

3,215

Other professional services

3,613

3,956

Acquisition charges

3,315

6,275

Other non-interest expense

18,573

16,034

Total Non-interest expense

106,341

88,569

Earnings before income taxes

63,068

56,446

Income tax expense

10,563

12,701

Net income available to common shareholders

$ 52,505

$ 43,745

Diluted earnings per common share

$ 2.52

$ 2.55

Diluted earnings per common share, operating*

$ 2.21

$ 2.79

*See reconciliation of Non-GAAP financial measures





FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(in thousands except per share data)

Year to DateEARNINGS STATEMENT 2020 2019

Interest Income:

Loans, including fees $ 151,290 $ 123,316

Investment securities 21,406 19,406

Accretion of purchase accounting adjustments 6,273 5,541

Other interest income 379 266

Total interest income 179,348 148,529

Interest Expense:

Deposits 21,373 20,297

Borrowings 1,666 2,056

Subordinated debentures 5,390 4,904

Amortization of purchase accounting adjustments (1,765) (534)

Total interest expense 26,664 26,723

Net interest income 152,684 121,806

Provision for loan losses 25,151 3,738

Net interest income after provision for loan losses 127,533 118,068



Non-interest Income:

Service charges on deposit accounts 7,216 7,838

Mortgage Income 10,446 5,988

Interchange Fee Income 9,433 8,024

Gain (loss) on securities, net 281 122

Financial Assistance Award/Bank Enterprise Award 968 947

Bargain Purchase Gain and Gain on Sale of Land 8,455 -

Other charges and fees 5,077 4,028

Total non-interest income 41,876 26,947



Non-interest expense:

Salaries and employee benefits 61,230 47,016

Occupancy expense 13,833 10,796

FDIC/OCC premiums 1,351 632

Marketing 333 645

Amortization of core deposit intangibles 4,093 3,215

Other professional services 3,613 3,956

Acquisition charges 3,315 6,275

Other non-interest expense 18,573 16,034

Total Non-interest expense 106,341 88,569

Earnings before income taxes 63,068 56,446

Income tax expense 10,563 12,701

Net income available to common shareholders $ 52,505 $ 43,745





Diluted earnings per common share $ 2.52 $ 2.55

Diluted earnings per common share, operating* $ 2.21 $ 2.79

*See reconciliation of Non-GAAP financial measures



FIRST BANCSHARES, INC and SUBSIDIARIES

Condensed Consolidated Financial Information (unaudited)

(Dollars in thousands)

COMPOSITION OF Dec 31, Percent Sept 30, June 30, Mar 31, Dec 31, PercentLOANS 2020 of 2020 2020 2020 2019 of Total Total

Commercial,financial and $ 561,342 17.8% $ 576,812 $ 629,497 $ 327,979 $ 332,600 12.7%agricultural

Real estate - 301,283 9.6% 330,070 337,337 334,707 359,195 13.8%construction

Real estate - 1,214,602 38.6% 1,191,514 1,163,897 1,048,854 1,028,012 39.4%commercial

Real estate - 987,313 31.4% 999,381 978,372 828,378 814,282 31.2%residential

Lease Financing 2,733 0.1% 2,478 2,811 3,526 3,095 0.1%Receivable

Obligations ofStates & 15,369 0.5% 13,345 17,010 18,218 20,716 0.8%subdivisions

Consumer 41,036 1.3% 42,332 42,611 40,626 42,458 1.6%

Loans held for 21,432 0.7% 22,482 18,632 13,288 10,810 0.4%sale

Total loans $3,145,110 100% $3,178,414 $3,190,167 $2,615,576 $2,611,168 100%



COMPOSITION OF Dec 31, Percent Sept 30, June 30, Mar 31, Dec 31, PercentDEPOSITS 2020 of 2020 2020 2020 2019 of Total Total

Noninterest $ 571,079 13.5% $482,236 $486,039 $340,606 $723,208 23.5%bearing^

NOW and other^ 664,626 15.8% 658,453 601,195 478,526 941,598 30.6%

Money Market/ 2,398,526 56.9% 2,456,504 2,451,991 1,826,973 750,010 24.4%Savings^

Time Deposits ofless than 439,101 10.4% 473,265 499,406 462,808 479,386 15.6%$250,000

Time Deposits of 141,948 3.4% 158,756 178,259 168,881 182,331 5.9%$250,000 or more

Total Deposits $4,215,280 100% $4,229,214 $4,216,890 $3,277,794 $3,076,533 100%



Deposits Without Dec 31, Percent Sept 30, June 30, Mar 31,Reclassification 2020 of 2020 2020 2020 ^ Total

Noninterest $1,185,980 28.1% $1,195,042 $1,189,766 $ 749,939 bearing

Now and other 1,347,778 32.0% 1,335,798 1,347,324 1,122,027

Money Market/ 1,100,473 26.1% 1,066,353 1,002,135 774,139 Savings

Time Deposits ofless than 439,101 10.4% 473,265 499,406 462,808 $250,000

Time Deposits of 141,948 3.4% 158,756 178,259 168,881 $250,000 or more

Total Deposits $4,215,280 100% $4,229,214 $4,216,890 $3,277,794



ASSET QUALITY Dec 31, Sept 30, June 30, Mar 31, Dec 31, DATA 2020 2020 2020 2020 2019

Nonaccrual loans $ 33,774 $ 37,300 $ 39,201 $ 37,751 $ 38,393

Loans past due 2,692 2,396 1,009 2,393 2,715 90 days and over

Totalnonperforming 36,466 39,696 40,210 40,144 41,108 loans

Other real 5,802 5,202 5,471 6,974 7,299 estate owned

Nonaccrual - - - - - securities

Totalnonperforming $ 42,268 $44,898 $45,681 $47,118 $ 48,407 assets



Nonperformingassets to total 0.82% 0.87% 0.90% 1.16% 1.23% assets

Nonperformingassets to total 1.35% 1.42% 1.44% 1.81% 1.86% loans + OREO

ALLL tononperforming 98.23% 86.30% 69.79% 51.82% 33.83% loans

ALLL to total 1.15% 1.09% 0.88% 0.80% 0.53% loans



Qtr-to-date netcharge-offs $ 1,959 $ 729 $ 346 $ 205 $ (15) (recoveries)

Annualized QTDnet chg-offs 0.25% 0.09% 0.04% 0.03% (0.002%) (recs) to loans

FIRST BANCSHARES, INC and SUBSIDIARIESCondensed Consolidated Financial Information (unaudited)(in thousands) Yield Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months EndedAnalysis December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Tax Tax Tax Tax Tax Avg Equivalent Yield Avg Equivalent Yield Avg Equivalent Yield Avg Equivalent Yield Avg Equivalent Yield / / / / / Balance interest Rate Balance interest Rate Balance interest Rate Balance interest Rate Balance interest Rate Taxable $ 659,243 $ 3,678 2.23% $ 616,168 $ 3,432 2.23% $ 605,626 $ 3,439 2.27% $ 560,613 $ 3,944 2.81% $ 556,004 $ 4,108 2.96%securitiesTax-exemptsecurities 361,529 2,581 2.86% 341,550 2,513 2.94% 300,922 2,340 3.11% 224,212 1,821 3.25% 188,709 1,593 3.38%

Total investmentsecurities 1,020,772 6,259 2.45% 957,718 5,945 2.48% 906,548 5,779 2.55% 784,825 5,765 2.94% 744,713 5,701 3.06%

in other banks 404,069 41 0.04% 413,786 29 0.03% 321,559 19 0.02% 129,978 289 0.89% 80,612 37 0.18%

Loans 3,153,543 39,966 5.07% 3,165,653 40,999 5.18% 3,156,524 40,593 5.14% 2,602,340 36,005 5.53% 2,512,524 35,109 5.59%

Total Interestearning assets 4,578,384 46,266 4.04% 4,537,157 46,973 4.14% 4,384,631 46,391 4.23% 3,517,143 42,059 4.78% 3,337,849 40,847 4.90%

Other assets 557,752 548,183 528,989 473,350 429,738

$ $ $ $ $Total assets 5,136,136 5,085,340 4,913,620 3,990,493 3,767,587

Interest-bearingliabilities: $ $ 4,064 0.41% $ $ 4,912 0.50% $ $ 5,219 0.56% $ $ 5,413 0.71% $ $ 5,016 0.89%Deposits 3,971,379 3,960,054 3,746,535 3,042,529 2,263,299

Borrowed Funds 115,430 260 0.90% 115,935 265 0.91% 116,270 224 0.77% 145,267 917 2.53% 174,475 771 1.77%

Subordinateddebentures 144,676 1,823 5.04% 81,470 1,188 5.83% 80,736 1,176 5.83% 80,697 1,203 5.96% 80,658 1,213 6.02%

Total interestbearing 4,231,485 6,147 0.58% 4,157,459 6,365 0.61% 3,943,541 6,619 0.67% 3,268,493 7,533 0.92% 2,518,432 7,000 1.11%liabilitiesOther liabilities 263,823 295,354 362,952 174,691 731,085

Shareholders' 640,828 632,527 607,127 547,309 518,070equityTotal liabilitiesandshareholders' $ $ $ $ $equity 5,136,136 5,085,340 4,913,620 3,990,493 3,767,587

Net interestincome (FTE)* $ 40,119 3.46% $ 40,608 3.53% $ 39,772 3.56% $ 34,526 3.86% $ 33,847 3.78%

Net interest margin (FTE)* 3.51% 3.58% 3.63% 3.93% 4.06%

Core net interestmargin* 3.35% 3.41% 3.42% 3.65% 3.80%

*See reconciliation for Non-GAAP financial measuresFIRST BANCSHARES, INC and SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

Three Months Ended

Dec Sept June Mar Dec 31, 30, 30, 31, 31,Per Common Share Data 2020 2020 2020 2020 2019

Book value per common share $ $ $ $ $ 30.54 29.82 29.34 29.49 28.91

Effect of intangible assets per share 8.89 8.89 8.94 9.97 10.04

Tangible book value per common share $ $ $ $ $ 21.65 20.93 20.40 19.52 18.87



Diluted earnings per share $ 0.72 $ 0.55 $ 0.79 $ 0.44 $ 0.64

Effect of acquisition charges 0.01 0.01 0.11 0.04 0.14

Tax on acquisition charges - - (0.03) (0.01) (0.03)

Effect of bargain purchase gain and gain on (0.04) - (0.36) - -sale of land

Tax on gain on sale of land - - 0.01 - -

Effect of Treasury awards (0.05) - - - (0.04)

Tax on Treasury awards 0.01 - - - 0.01

Diluted earnings per share, operating $ 0.65 $ 0.56 $ 0.52 $ 0.47 $ 0.72



Year to Date

2020

2019

Diluted earnings per share

$ 2.52

$ 2.55

Effect of acquisition charges

0.16

0.37

Tax on acquisition charges

(0.03)

(0.08)

Effect of bargain purchase gain and gain on sale of land

(0.42)

-

Tax on gain on sale of land

.01

-

Effect of Treasury awards

(0.04)

(0.06)

Tax on Treasury awards

0.01

0.01

Diluted earnings per share, operating

$ 2.21

$ 2.79

Year to Date 2020 2019

Diluted earnings per share $ 2.52 $ 2.55

Effect of acquisition charges 0.16 0.37

Tax on acquisition charges (0.03) (0.08)

Effect of bargain purchase gain and gain on sale of land (0.42) -

Tax on gain on sale of land .01 -

Effect of Treasury awards (0.04) (0.06)

Tax on Treasury awards 0.01 0.01

Diluted earnings per share, operating $ 2.21 $ 2.79



Year to Date

2020

2019

Net income available to common shareholders

$ 52,505

$ 43,745

Acquisition charges

3,314

6,275

Tax on acquisition charges

(753)

(1,348)

Bargain purchase gain and gain on sale of land

(8,455)

-

Tax on gain on sale of land

157

-

Treasury awards

(968)

(947)

Tax on Treasury awards

245

240

Net earnings available to common shareholders, operating

$ 46,045

$ 47,965

Year to Date 2020 2019

Net income available to common shareholders $ 52,505 $ 43,745

Acquisition charges 3,314 6,275

Tax on acquisition charges (753) (1,348)

Bargain purchase gain and gain on sale of land (8,455) -

Tax on gain on sale of land 157 -

Treasury awards (968) (947)

Tax on Treasury awards 245 240

Net earnings available to common shareholders, $ 46,045 $ 47,965operating



Three Months Ended

Average Balance Dec 31, Sept 30, June 30, Mar 31, Dec 31,Sheet Data 2020 2020 2020 2020 2019

Total average $5,136,136 $5,085,340 $4,913,620 $3,990,493 $3,767,587assets A

Total average 4,578,384 $4,537,157 $4,384,631 $3,517,143 $3,337,849earning assets B



Common Equity C $ 640,828 $ 632,527 $ 607,127 $ 547,309 $ 518,070

Less intangible 189,817 190,892 183,161 188,420 171,328assets

Total Tangible $ 451,011 $ 441,635 $ 423,966 $ 358,889 $ 346,742common equity D





Three Months Ended

Net Interest Income Dec 31, Sept 30, June 30, Mar 31, Dec 31,Fully Tax 2020 2020 2020 2020 2019Equivalent

Net interest income E $ 39,466 $ 39,972 $ 39,180 $ 34,065 $ 33,444

Tax-exempt (1,928) (1,877) (1,748) (1,360) (1,190)investment income

Taxable investment 2,581 2,513 2,340 1,821 1,593income

Net Interest IncomeFully Tax F $ 40,119 $ 40,608 $ 39,772 $ 34,526 $ 33,847Equivalent



Annualized Net E 3.45% 3.52% 3.57% 3.87% 4.01%Interest Margin /B

Annualized NetInterest Margin, F 3.51% 3.58% 3.63% 3.93% 4.06%Fully Tax /B Equivalent



Total InterestIncome, Fully Tax Equivalent

Total Interest $ 45,613 $ 46,337 $ 45,799 $ 41,598 $ 40,444Income

Tax-exempt (1,928) (1,877) (1,748) (1,360) (1,190)investment income

Taxable investment 2,581 2,513 2,340 1,821 1,593income

Total InterestIncome, Fully Tax G $ 46,266 $ 46,973 $ 46,391 $ 42,059 $ 40,847Equivalent



Yield on AverageEarning Assets, G 4.04% 4.14% 4.23% 4.78% 4.90%Fully Tax /B Equivalent



Interest IncomeInvestment Securities, Fully Tax Equivalent

Interest IncomeInvestment $ 5,606 $ 5,309 $ 5,187 $ 5,304 $ 5,298Securities

Tax-exempt (1,928) (1,877) (1,748) (1,360) (1,190)investment income

Taxable investment 2,581 2,513 2,340 1,821 1,593Income

Interest IncomeInvestment $ 6,259 $ 5,945 $ 5,779 $ 5,765 $ 5,701Securities, Fully H Tax Equivalent



Average Investment $ $ 957,718 $ 906,548 $ 784,825 $ 744,713Securities I 1,020,772



Yield on Investment H/Securities, Fully I 2.45% 2.48% 2.55% 2.94% 3.06%Tax Equivalent



Three Months Ended

Core Net Interest Dec 31, Sept 30, June 30, Mar 31, Dec 31,Margin 2020 2020 2020 2020 2019

Net interest income $ 40,119 $ 40,608 $ 39,772 $ 34,526 $ 33,847(FTE)

Less purchaseaccounting 1,692 1,853 2,157 2,336 2,026adjustments

Net interestincome, net of J $ 38,427 $ 38,755 $ 37,615 $ 32,190 $ 31,821purchase accounting adj



Total average $4,578,384 $4,537,157 $4,384,631 $3,517,143 $3,337,849earning assets

Add average balanceof loan valuation 9,808 11,501 10,651 12,237 12.252discount

Avg earning assets,excluding loan K $4,588,192 $4,548,658 $4,395,282 $3,529,380 $3,350,101valuation discount



Core net interest J/ 3.35% 3.41% 3.42% 3.65% 3.80%margin K



Three Months Ended

Efficiency Ratio Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2020 2020 2020 2020 2019

Operating Expense

Total non-interest $ 27,897 $ 26,935 $ 28,070 $ 23,439 $ 24,960expense

Pre-taxnon-operating (41) (238) (2,295) (740) (2,300)expenses

Adjusted Operating $ 27,856 $ 26,697 $ 25,775 $ 22,699 $ 22,660Expense L



Operating Revenue

Net interest $ 40,119 $ 40,608 $ 39,772 $ 34,526 $ 33,847income, FTE

Total non-interest 10,928 8,794 15,680 6,474 7,574income

Pre-tax (1,780) - (7,643) - (714)non-operating items

Adjusted Operating $ 49,267 $ 49,402 $ 47,809 $ 41,000 $ 40,707Revenue M



Efficiency Ratio, L 56.54% 54.04% 53.91% 55.36% 55.67%operating /M



Three Months Ended

Return Ratios Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2020 2020 2020 2020 2019

Net incomeavailable to common N $ 15,335 $ 11,917 $ 16,943 $ 8,311 $ 11,855shareholders

Acquisition charges 41 238 2,295 740 2,300

Tax on acquisition (10) (61) (518) (164) (461)charges

Bargain purchasegain and gain on (812) - (7,643) - -sale of land

Tax on gain on sale - - 157 - -of land

Treasury awards (968) - - - (714)

Tax on Treasury 245 - - - 181awards

Net earningsavailable to common $ 13,831 $ 12,094 $ 11,234 $ 8,887 $ 13,161shareholders, O operating



Pre-TaxPre-Provision Operating Earnings

Earnings before $ 18,974 $ 14,910 $ 19,184 $ 9,998 $ 15,208income taxes P

Acquisition charges 41 238 2,295 740 2,300

Provision for loan 3,523 6,921 7,606 7,102 850losses

Treasury Awards and (1,780) - (7,643) - (714)Gains

Pre-Tax,Pre-Provision Q $ 20,758 $ 22,069 $ 21,442 $ 17,840 $ 17,644Operating Earnings





Annualized return N 1.19% 0.94% 1.38% 0.83% 1.26%on avg assets N/A /A

Annualized return O 1.08% 0.95% 0.91% 0.89% 1.40%on avg assets, oper /A

Annualized pre-tax, Q 1.62% 1.74% 1.75% 1.79% 1.87%pre-provision, oper /A

Annualized returnon avg common O 8.63% 7.65% 7.40% 6.50% 10.16%equity, oper /C

Annualized returnon avg tangible O 12.27% 10.95% 10.60% 9.91% 15.18%common equity, /D operating



Mortgage Department

Net Interest Incomeafter provision for $ 133 $ 142 $ 127 $ 119 $ 59loan losses

Loan fee income 3,270 2,961 2,646 1,567 1,720

Salaries and (1,329) (1,444) (1,246) (1,077) (975)employee benefits

Other non-interest (105) (110) (99) (152) (164)expense

Earnings before $ 1,969 $ 1,549 $ 1,428 $ 457 $ 640income taxes

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126006159/en/

CONTACT: M. Ray "Hoppy" Cole Chief Executive Officer Dee Dee Lowery Chief Financial Officer (601) 268-8998