Exhibit 99.1

The First Bancshares, Inc. Reports a 9.8% Increase in Net Income Available to Common Shareholders and a 70.3% Increase in Operating Net Earnings for the Year Ended December 31, 2017; Declares an Increased Quarterly Dividend of 33.3%

HATTIESBURG, Miss.--(BUSINESS WIRE)--January 26, 2018--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) reported today net income available to common shareholders of $10.6 million for the fiscal year ended December 31, 2017, an increase of $0.9 million or 9.8%, compared to $9.7 million for the fiscal year ended December 31, 2016. Operating net earnings increased 70.3% ($7.0 million) for the fiscal year ended December 31, 2017, totaling $16.9 million for fiscal year 2017 as compared to $9.9 million for fiscal 2016. Operating net earnings for the fiscal year 2017 excludes merger-related costs of $4.2 million, net of tax, and a $2.1 million charge to income tax expense related to a reduction in our deferred tax asset resulting from the change in tax rate under the Tax Cuts and Jobs Act enacted in December of 2017.

Net income available to common shareholders for the fourth quarter of 2017 totaled $2.4 million compared to $2.1 million for the fourth quarter of 2016, an increase of 14.3%. Operating net earnings for the fourth quarter of 2017 totaled $4.7 million as compared to $2.4 million for the fourth quarter of 2016 representing a 97.6% increase, excluding merger-related costs of $0.2 million, net of tax, in the fourth quarter of 2017 as well as the $2.1 million income tax charge discussed above in the fourth quarter of 2017.

For the full year 2017, fully diluted earnings per share were $1.11, compared to $1.57 for the full year 2016. Fully diluted earnings per share for the quarter ended December 31, 2017, were $0.23, compared to $0.26 for the quarter ended December 31, 2016. Excluding the impact of the merger-related costs and the income tax charge discussed above, fully diluted operating earnings per share for the year ended December 31, 2017 were $1.76 as compared to $1.64 for 2016, and were $0.45 for the fourth quarter of 2017 as compared to $0.30 for the fourth quarter of 2016. Fully diluted earnings per share for 2017 includes the issuance of 2,012,500 shares of our common stock during the fourth quarter related to the capital raise described below. Fully diluted earnings per share for 2016 includes the issuance of 3,563,380 shares of our common stock during the fourth quarter.

Highlights for the Quarter:

• On October 24, 2017, the Company announced the signing of an Agreement and Plan of Merger with Southwest Banc Shares, Inc. (“Southwest”), parent company of First Community Bank, headquartered in Chatom, AL. Upon completion, the acquisition will add 9 locations servicing southwest Alabama and is expected to close during the first quarter of 2018 subject to Southwest shareholder approval and customary closing conditions.
• On October 31, 2017, the Company completed a sale of an aggregate of 2,012,500 shares of its common stock in a public offering. Net proceeds after underwriting discounts and estimated expenses were approximately $55.2 million.
• On December 6, 2017, the Company announced the signing of an Agreement and Plan of Merger with Sunshine Financial, Inc. (“Sunshine”), parent company of Sunshine Community Bank, headquartered in Tallahassee, FL. Upon completion, the acquisition will add 5 locations servicing Tallahassee and is expected to close during the second quarter of 2018 subject to regulatory approval, Sunshine shareholder approval and customary closing conditions.

M. Ray “Hoppy” Cole, President & Chief Executive Officer, commented, “2017 was another outstanding year for our Company characterized by substantial growth and improved operating performance. We continue to expand our franchise in the gulf south region through a combination of organic and acquisitive growth.

We are excited about our recently announced pending acquisition of Southwest Bancshares, Inc. in Mobile, AL and Sunshine Financial, Inc. in Tallahassee, FL. Our team members look forward to closing these acquisitions in the first half of 2018. Southwest and Sunshine represent continued execution of our strategic vision of creating a regional community bank focused on being nimble and responsive to the needs of our clients and generating substantial returns for our shareholders.”

Balance Sheet

Consolidated assets increased $25.4 million to $1.813 billion at December 31, 2017, due primarily to the receipt of $55.2 million in proceeds related to the capital raise, offset by a reduction in public fund deposits of $38.1 million due to the seasonality of this portfolio.

Total loans were $1.225 billion at December 31, 2017, as compared to $1.198 billion at September 30, 2017, and $867.1 million at December 31, 2016, representing increases of $27.1 million or 2.3%, and $358.3 million or 41.3%, respectively. Increased loan volume of $27.1 million for the fourth quarter of 2017 was primarily distributed among all real estate categories. The acquisitions of Gulf Coast Community Bank and Iberville Bank accounted for $239.6 million of the total increase in loans as compared to the fourth quarter of 2016.

Total deposits were $1.471 billion at December 31, 2017, as compared to $1.508 billion at September 30, 2017, and $1.039 billion at December 31, 2016, representing a decrease of $37.4 million or 2.5%, and an increase of $431.4 million or 41.5%, respectively. The sequential-quarter decrease was primarily due to a decrease in NOW accounts of $38.1 million, which is attributable to the seasonality of the public fund deposits. The acquisitions of Gulf Coast Community Bank and Iberville Bank accounted for $335.1 million of the total increase in deposits as compared to the fourth quarter in 2016.

Asset Quality

Nonperforming assets totaled $13.5 million at December 31, 2017, a decrease of $1.1 million compared to $14.6 million at September 30, 2017 and an increase of $3.6 million compared to December 31, 2016. The majority of the increase in same quarter comparison is the result of acquired assets with associated fair value marks. The ratio of the allowance for loan and leases losses (ALLL) to total loans was 0.68% at December 31, 2017 and September 30, 2017. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.11% of total loans at December 31, 2017. The ratio of annualized net charge-offs (recoveries) to total loans was 0.003% for the quarter ended December 31, 2017 compared to (0.005%) for the quarter ended September 30, 2017.

Fourth Quarter 2017 vs. Fourth Quarter 2016 Earnings Comparison

Net income available to common shareholders for the fourth quarter of 2017 totaled $2.4 million compared to $2.1 million for the fourth quarter of 2016, an increase of $0.3 million or 14.3%.

Operating net earnings for the fourth quarter of 2017 totaled $4.7 million compared to $2.4 million for the fourth quarter of 2016, an increase of $2.3 million or 97.6%. Operating net earnings exclude the merger-related costs and the income tax charge discussed above.

Revenues from consolidated operations increased $6.1 million in quarterly comparison. Net interest income for the fourth quarter of 2017 was $15.2 million, an increase of $4.5 million when compared to the fourth quarter of 2016. The increase is primarily due to interest income earned on a higher volume of loans. Net interest margin for the fourth quarter of 2017 was 3.71% as compared to 3.68% for the same quarter in 2016.

Non-interest income increased $0.9 million for the fourth quarter of 2017 as compared to the fourth quarter of 2016 due to increased service charges and interchange fee income.

Fourth quarter 2017 non-interest expense increased $2.3 million, or 22.3% as compared to fourth quarter 2016. The majority of the increase is due to higher compensation expense, occupancy expense and other non-interest expense. Salaries increased $1.5 million, of which $1.3 million resulted from increased employment as a result of the acquisitions. Occupancy and other non-interest expense of $0.7 million in the fourth quarter of 2017 was attributable to the acquisitions.

Fully tax equivalent (“FTE”) net interest income totaled $15.5 million and $10.9 million for the fourth quarter of 2017 and 2016, respectively. FTE net interest income increased $4.6 million in the prior year quarterly comparison primarily due to an increase in interest earned on loans. Purchase accounting adjustments accounted for $0.3 million of the difference in net interest income for the fourth quarter comparisons. Fourth quarter 2017 FTE net interest margin of 3.79% includes 3 basis points related to purchase accounting adjustments.

Investment securities totaled $372.9 million, or 20.6% of total assets at December 31, 2017, versus $255.8 million, or 20.0% of total assets at December 31, 2016. The average volume of investment securities increased $104.2 million in prior year quarterly comparison, primarily as a result of the acquisitions. The average tax equivalent yield on investment securities increased 28 basis points to 2.90% from 2.62% in prior year quarterly comparison. The investment portfolio had a net unrealized loss of $0.6 million at December 31, 2017 as compared to $1.7 million at December 31, 2016.

The average yield on all earnings assets increased 8 basis points in prior year quarterly comparison, from 4.17% for the fourth quarter of 2016 to 4.25% for the fourth quarter of 2017. This increase was offset partially by an increase in average interest expense of 9 basis points from 0.51% for the fourth quarter of 2016 to 0.60% for the fourth quarter of 2017.

Fourth Quarter 2017 vs Third Quarter 2017 Earnings Comparison

Operating net earnings for the fourth quarter of 2017 compared to the third quarter of 2017 remained constant at $4.7 million.

Net interest income for the fourth quarter of 2017 was $15.2 million. FTE net interest income increased $0.3 million to $15.5 million from $15.2 million in sequential-quarter comparison. The increase was due primarily to increased loan volume. Interest income from purchase accounting adjustments decreased slightly in sequential quarter comparison.

The average yield on all earnings assets remained unchanged in sequential-quarter comparison at 4.25%. Average interest expense increased 5 basis points from 0.55% for the third quarter of 2017 to 0.60% for the fourth quarter of 2017.

Non-interest income decreased $0.1 million in sequential-quarter comparison resulting from decreased mortgage income of $0.1 million.

Non-interest expense increased $0.5 million in sequential-quarter comparison, which reflects increases in salaries and employee benefits and other professional services. Merger-related costs of $0.4 million were included in other professional services for the fourth quarter of 2017.

Year to Date Earnings Comparison

In year-over-year comparison, net income available to common shareholders increased $0.9 million, or 9.8%, from $9.7 million at December 31, 2016 to $10.6 million at December 31, 2017. Operating net earnings increased $7.0 million or 70.3% to $16.9 million at December 31, 2017 from $9.9 million at December 31, 2016, excluding the impact of the merger-related costs and the income tax charge discussed above. Net interest income increased $18.9 million in year-over-year comparison as interest income earned on a higher volume of loans attributed to this overall increase.

Non-interest income was $14.4 million at December 31, 2017, an increase of $3.1 million in year-over-year comparison consisting of increases in service charges on deposit accounts, interchange fee income and other charges and fees.

Non-interest expense was $55.4 million at December 31, 2017, an increase of $18.6 million in year-over-year comparison primarily resulting from increases in salaries and benefits of $8.4 million, of which $6.7 million relates to the acquisitions. Increases in other professional services and other non-interest expense increased $8.8 million which includes $6.7 million in merger-related costs.

Declaration of Cash Dividend

The Company announced that its Board of Directors declared a cash dividend in the amount of $0.05 per share, an increase of $0.0125 per share, or 33.3%, to be paid on its common stock on February 22, 2018 to shareholders of record as of the close of business on February 5, 2018.

About The First Bancshares, Inc.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, The First has operations in Mississippi, Louisiana, Alabama and Florida. 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 earnings per share, fully tax equivalent net interest income, total tangible common equity, tangible book value per common share and certain ratios derived from these non-GAAP financial measures. The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the periods presented in this press release. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented, and other bank holding companies may define or calculate these measures differently. These non-GAAP financial measures should not be considered in isolation and do not purport to be an alternative to net income, earnings per share, net interest income, book value or other GAAP financial measures as a measure of operating performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in this press release following the Condensed Consolidated Financial Information (unaudited).

Forward Looking Statements

This news release contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; and risks related to the proposed acquisitions of Southwest Banc Shares, Inc. and Sunshine Financial, Inc., including the risk that the proposed acquisitions do not close when expected or at all because of required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the terms of the proposed transactions may need to be modified to satisfy such approvals or conditions, and the risk that anticipated benefits from the proposed transactions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions. 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. 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.

CONTACT:
The First Bancshares, Inc.
M. Ray “Hoppy” Cole, 601-268-8998
Chief Executive Officer
or
Dee Dee Lowery, 601-268-8998
Chief Financial Officer