The First Bancshares, Inc. Reports Annual 2007 Earnings and Quarterly Dividend

Net Income increases 15.3% for 2007
HATTIESBURG, Miss.--(Business Wire)--The First Bancshares, Inc. (NASDAQGS: FBMS), holding company for
The First, A National Banking Association, (www.thefirstbank.com)
today reported earnings for the Company for the quarter and the year
ended December 31, 2007. The Company also announced a $.075 per share
quarterly dividend. The record date of the dividend will be February
1, 2008, with a payable date of February 15, 2008.

Earnings for the three months ended December 31, 2007, were $707
thousand, or $.23 per share on a diluted basis, compared to $836
thousand or $.30 per share on a diluted basis for the same quarter in
2006.

Net income for the year ended December 31, 2007, amounted to $3.82
million, a 15.3% increase over the $3.32 million reported for the year
ended December 31, 2006. Diluted earnings per share for 2007 were
$1.25 compared to $1.27 for 2006.

David E. Johnson, Chairman and Chief Executive officer, commented,
"We are pleased to announce another record year of earnings for our
organization. During the year we expanded our network by opening a new
branch in Gulfport, MS. The Company is growing profitably, and we are
excited about being able to expand our footprint in south
Mississippi."

The following are key achievements in the last twelve months ended
December 31, 2007:

-- Total loans increased 29.0% to $371.2 million.

-- Total deposits increased 9.8% to $386.2 million.

-- Net income increased 15.3%.

-- Net interest income increased 26.9%.

-- Return on Average Equity was 11.14%.

-- Company opened a de novo branch in Gulfport, Mississippi.

-- Company relocated into a permanent facility in Bay St. Louis,
Mississippi.

-- Company purchased land in Biloxi, Mississippi.

Deposits

Total deposits increased to $386.2 million in the period ended
December 31, 2007, a 9.8% increase over the period ended December 31,
2006. This continued growth is attributed to superior performance in
all of our branches in attracting new deposits and continued growth in
our newest locations in southern Mississippi.

Loans

Total loans increased 29.0% to $371.2 million for the twelve month
period ended December 31, 2007, compared to the period ended December
31, 2006. The Company is continuing to experience growth in all
categories of the loan portfolio.

Net Income and Earnings Per Share

Net income was $707,000 and $3,823,000 for the three and twelve
months ended December 31, 2007, compared to $836,000 and $3,315,000,
respectively for the same period in 2006. Net income increased
$508,000 or 15.3% for the twelve months ended December 31, 2007,
compared to the twelve months ended December 31, 2006. Net Interest
income increased 26.9% over the last twelve months and non-interest
income increased 42.4% in that same period. Non-interest income was
$3,189,000 in the twelve month period ended December 31, 2007,
compared to $2,239,000. The Company has maintained a net interest
margin of 4.31% in a challenging interest rate environment.

Diluted earnings per share for the three month period ended
December 31, 2007, amounted to $.23 per share, a 23.3% decrease from
the comparable period in 2006 of $.30. Diluted earnings per share
amounted to $1.25 for the twelve month period ended December 31, 2007,
a 1.6% decrease from the comparable period in 2006 of $1.27.

Dividends

At the beginning of 2007, the Company instituted a policy of
paying quarterly dividends. The dividends paid in 2007 totaled $.525
per share which included quarterly dividends of $.225 per share and an
annual dividend of $.30 per share compared to an annual dividend of
$.16 per share paid in 2006.

The Company

The First Bancshares, Inc., headquartered in Hattiesburg,
Mississippi, is the parent company of The First, A National Banking
Association. Founded in 1996, The First operates 10 offices with
locations in Hattiesburg, Laurel, Purvis, Picayune, Pascagoula, Bay
St. Louis, Wiggins and Gulfport, Mississippi. The Company's stock is
traded on NASDAQ Global under the symbol FBMS.

Forward Looking Statement

This news release contains statements regarding the projected
performance of The First Bancshares, Inc. and it 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; and legislation or regulatory changes which
adversely affect the ability of the combined Company to conduct
business combinations or new operations. 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. Further information
on The First Bancshares, Inc. is available in its filings with the
Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov.

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THE FIRST BANCSHARES, INC.
FINANCIAL HIGHLIGHTS
(Unaudited)

($ amounts in thousands, except earnings and book value per share)

For three months For twelve months
ended December 31, ended Decmeber 31,
2007 2006 2007 2006

Interest income $8,758 $7,289 $33,399 $23,760
Interest expense 4,210 3,178 15,143 9,376
Net interest income 4,548 4,111 18,256 14,384
Provision for loan losses 355 217 1,321 800
Net interest income after
provision for loan losses 4,193 3,894 16,935 13,584
Non-interest income 862 607 3,189 2,239
Non-interest expense 3,983 3,306 14,823 11,139
Income before income taxes 1,072 1,195 5,301 4,684
Income taxes 365 359 1,478 1,369
Net income $ 707 $ 836 $ 3,823 $ 3,315
Basic:
Earnings per share $ .24 $ .31 $ 1.28 $ 1.35
Diluted:
Earnings per share $ .23 $ .30 $ 1.25 $ 1.27
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Dec 31, 2007 Dec 31, 2006

Total assets 496,056 417,758
Cash and due from banks 11,118 10,415
Federal funds sold 223 8,772
Investment securities 87,096 91,810
Loans, net of unearned interest 371,223 287,875
Deposits-interest bearing 330,815 293,055
Deposits-non interest bearing 55,353 58,667
Total deposits 386,168 351,722
Borrowed funds 60,773 20,827
Subordinated debentures 10,310 11,341
Stockholders' equity 36,281 32,354
Book value (per share) 12.14 11.32
Total shares outstanding 2,988,551 2,857,939
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The First Bancshares, Inc.
David Johnson, CEO, 601-268-8998
or
DeeDee Lowery, CFO, 601-268-8998

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