1.855.257.2265 • www.TheFirstBank.com1

Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . .1Corporate Information . . . . . . . . . . . . . . . . . . . . . . .5Directors and Corporate Offi cers . . . . . . . . . . . . . . .5Advisory Boards . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Dea� Fe� o� Shareholders :2018 was another landmark year in the history of our company. Through continued execution of our strategic plan, your company ended the year with $3 billion in total assets distributed across fi ve states, with 67 branches and over 600 total employees.

Our growth has been a combination of both organic and acquisitive and has been focused in the south east region from Louisiana to Florida and southern Georgia.

Since 2009, your team has closed ten acquisitions which include:

• 2011 Whitney Bank’s Mississippi Gulf Coast Branches

• 2013 FNB of Baldwin County, Baldwin County, Alabama

• 2014 BCB Holding Company - Bay Bank, Mobile, Alabama

• 2015 The Mortgage Connection, Jackson, Mississippi

• 2017 Iberville Bank, Baton Rouge, Louisiana

• 2017 Gulf Coast Community Bank, Pensacola, Florida

• 2018 Southwest Banc Shares, Mobile and south Alabama

• 2018 Sunshine Financial, Tallahassee, Florida

• 2018 FMB Banking Corporation, Tallahassee, Florida and Thomasville, Georgia

• 2019 FPB Banking Corp, Florida Parishes Bank, Hammond, Louisiana, closed 1Q 2019

On March 1, 2019, your company closed the acquisition of FPB Banking Corp and its subsidiary bank, Florida Parishes Bank.

Florida Parishes Bank was headquartered in Hammond, Louisiana with seven branches located: in Ponchatoula, Amite, Covington, Mandeville, Metairie, and two in Hammond, Louisiana.

Florida Parishes is a perfect geographic fi t adding market share in Louisiana as well as providing an outstanding group of experienced bankers to grow our Louisiana presence. We are absolutely thrilled to have them join our team.

Growth and Profi tabilityOur strategic vision of building a regional community bank was developed ten years ago.

Based upon that strategic vision and through execution of our growth plan, we have achieved exceptional results and created signifi cant value for our shareholders.

Since 2011, your company has averaged a compounded annual growth rate of 24% in total assets from under $500

million in 2009 to over $3 billion as of December 31, 2018.

This asset growth has produced a substantial increase in profi tability. During 2011, your company recorded net income of $2.5 million with earnings per share of $0.82. During 2018, your company recorded net income of $21.2 million and earnings per share of $1.62.

If you adjust 2018 for the substantial one-time charges associated with three acquisitions closed during the year, our “core” net income was $30 million with “core” earnings per share of $2.29. Since 2011, this is a twelve-fold increase in core net income and a 179% increase in earnings per share.

Building Franchise Value and Diversifi cationAnother major component of our strategic plan was to diversify our asset base across the south. Our plan was to expand across different geographic locations and focus on markets in the southeast with strong economies and strong demographics. We believed this would help drive a premium valuation and help mitigate concentration risk.

We are a Mississippi company and we are proud of our roots. However, your company is much more diversifi ed across the southeast and has signifi cant market share in some of the more dynamic growth markets in Mississippi, Alabama, Florida, Georgia, and Louisiana. In 2009, the majority of your company’s loans and deposits were concentrated in south Mississippi. Today, we are much more evenly distributed across our fi ve states.

Dear Fellow Shareholders: The year of 2018 was a landmark year. We now have operations in five states with 100,000 customers. The First has over $3.0 billion in consolidated assets. We achieved that milestone by determining a growth strategy in 2009 and executing it with precision. Our goal is to be a strong regional bank and we are continuing to achieve that status with acquisitions and organic growth. Our merger and acquisition strategy targeted 200 banks with $300-$500 million in assets along Interstate 10 and Interstate 12 corridors from Louisiana to Florida. Since 2009 we have acquired nine banks and one mortgage company. Our acquisitions include: • 2011Whitney Bank’s Mississippi Branches

• 2013Baldwin Bank of Baldwin County, Alabama

• 2014BCB Holding Company - Bay Bank, Alabama

• 2015TheMortgage Connection, Mississippi

• 2017 Iberville and Gulf Coast Community Banks, Florida

• 2018 Southwest Bancshares, Alabama

• 2018 Sunshine Financial, Florida

• 2018 FMB Banking Corporation, Florida and Georgia

• 2019FPB Banking Corp, Florida Parishes Bank, Louisiana,

closed 1Q 2019

The FPB Financial Corp’s (“FPB”) acquisition by our Company closed March 4, 2019. After this acquisition our Company has approximately $3.5 billion in total assets, $2.8 billion in total deposits and $2.3 billion in total loans. The First also has 71 locations. The financials in this report reflect 2018 results but the shareholders should be aware of the increase in assets, loans, deposits and locations as a result of this acquisition.

Results of 2018Our CAGR from 2009 to year end of 2018 was 24%. In 2018, 68% of our assets were from acquisitions and 32% from organic growth and our Company grew 9% from 2017 to 2018. We generated growth throughout our footprint. However, we believe that our area, especially Louisiana and Florida, holds great potential for future organic growth.

We have not sacrificed earnings for growth. Our net income for 2018 was $ 21.2 million, a 99.9% increase from 2017. Our operating net earnings were $30 million, a 77.8% increase from 2017 and our earnings per share rose to $1.62, a significant growth from $1.11 in the previous year. Our operating earnings per share was

$2.29 compared to $1.76 in 2017. We have achieved these earnings results since increasing our outstanding shares by 4,049,273 since the fourth quarter of 2017.

Our individual and institutional shareholders have also benefited from increased liquidity of our stock. We now have 14.8 million shares outstanding with 14 million in our float with a daily trading volume of approximately thirty thousand shares. Shareholders who have held our stock since we began acquiring other banks have significantly benefited from appreciation and dividends. Our stock closed on January 1, 2011 the year of our first acquisition at $8.61 with a dividend of $0.0375. Our stock closed on December 31, 2018 at $30.25 with a $0.05 dividend and a higher dividend of $0.07 will be offered in the first quarter of 2019.

Loans and DepositsThe First has had CAGR of 23% from 2009 and $2.1 billion in loans at year end 2018, compared to 1.2 billion in year end 2017, a 68.2% increase. Although The First is based in Mississippi, as a regional bank, its loan portfolio is dispersed geographically.

Net Income$ In Millions

LOANSDEPOSITS

Loans and Deposits$ In Millions

Tab

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f C

onte

nts

6

Advisory BoardsAs of 12-31-2018

HATTIESBURG, MISSISSIPPI

George “Josh” Blair

Richard E. Clatterbuck

Steven G. Cunningham

Troy Daniels

Charles Dawe

Bernard Green

Scott Hummel

John Kosko

L. Carr McClain

Renee Moore

Michael Neuendorf

Tony Petro

Don Roseberry

Steven Stogner

Jim Stroo

Millie Swan

PURVIS, MISSISSIPPI

Jonathan Hensleigh

David Lawson

A. L. Smith

John Wyzard

LAUREL, MISSISSIPPI

Roy Boutwell

Derrick Burgess

Brook Jones

Grayson Lacey

Charles Lightsey

Trent Mulloy

Jody Nichols

Robert Read

Elvin Ulmer

William Wells

BAY ST. LOUIS, MISSISSIPPI

Jason Chiniche

Mark Henderson

Ronnie Artigues, Jr.

Guy Johnson

Jimmie Ladner, Jr.

Larry Ladner

PICAYUNE, MISSISSIPPI

Gregory H. Mitchell, Sr.

Gerald Patch

Dr. Kevin Smith

Derwin Whitfield

WIGGINS, MISSISSIPPI

Dr. Marie Heim

Dr. Greg Loose

Pamela Loveless

John Russell O’Neal

HARRISON COUNTY, MISSISSIPPI

Joe Cloyd

Christen Duhé

William (Billy) Guice

Robert Heinrich

Erich N. Nichols

Steven Oberlies

David Treutel, Jr.

PASCAGOULA, MISSISSIPPI

Bradley P. Patano

Henry Hansel Furr

Nicky W. Maxwell

Dr. Alfred McNair

C. Scott Rankin

Marshall Smith

WASHINGTON PARISH, LOUISIANA

Chad Adcox

Robert A. Neilson

Roscoe Richmond

BALDWIN COUNTY, ALABAMA

Daniel G. Blackburn

J. Coleman Bryars

Leonard A. Kaiser

Cliff H. Pitman

Donald P. Robinson

Jim Robertson

Richard A. Schwartz

MOBILE COUNTY, ALABAMA

Tom Bramlett

Reid Cummings

Jimmy Lyons

David Marks

Juan Peasant

Mike Reid

John Sheldon

BATON ROUGE, LOUISIANA

Robert Anderson Blumberg

Kevin C. Davis

Jason Dupree

Stephen L. Dwyer

Rhaoul Guillame, Jr.

Pal D. Mascagni

Grey Mullins

Erik Piazza

Drew Sellers

Cheree Swartzenburg

R. David Wascom

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

2

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

Regional Economics

A key factor in The First’s success is our locations in the key markets within our fi ve state footprint. From 2019 to 2024 the population in the Southeastern region of the U.S. is projected to increase 4.6%, compared to an estimated population growth of 3.6% for the entire U.S. During this timeframe, Florida is expected to enjoy a booming population growth of 6.8%. Florida is also expected to benefi t from a 10.3% increase in household income, followed by Alabama with a projected 8.5% increase from 2019-2024.

In addition to focusing on growth and profi tability to enhance shareholder value, a major part of our plan was to improve liquidity and daily trading volume in our stock.

In 2011, we had approximately 3.1 million shares outstanding with average daily trading volume of 500 shares. At the end of 2018, total shares outstanding were approximately 14.8 million with an average daily trading volume of over 30,000 shares.

In January of 2011, our stock price was approximately $8.61 with a dividend of $0.15 annually. On December 31, 2018, our stock closed at $30.25 with a dividend of $0.20 per share. Subsequent to the year end, the Board approved increasing our dividend to $0.28 per share annually. We are pleased with the results of executing our strategic vision and the value that has been created based upon these results.

Our execution of our strategic plan of growth and diversifi cation has helped create strong value for our shareholders.

The geographic diversifi cation adds to our franchise value and helps mitigate our risks.

Alabama, Florida and Georgia MarketsOur markets in these three states include greater Mobile and Baldwin County in Alabama, Tallahassee and Pensacola areas in Florida and Thomasville, Georgia. These are all high growth areas that will continue to benefi t from a strong economic foundation.

1.855.257.2265 • www.TheFirstBank.com5

Directors and Corporate OfficersDirectors of the Bank and Holding Company

Dr. Rodney BennettPresident, USM

Dr. David W. BomboyOrthopedic Surgeon

M. Ray (Hoppy) Cole, Jr.President & CEO, The First Bancshares, Inc.President & CEO, The First, A National Banking Association

E. Ricky GibsonChairman of the Board, The First Bancshares, Inc.Chairman of the Board, The First, A National Banking AssociationPresident and Owner, N & H Electronics

Charles R. LightseySocial Security Disability Representative

Fred McMurryVice President and General Manager, Havard Pest Control

Thomas E. MitchellPresident, Stuart Contracting Co., Inc.

Ted E. ParkerCattle Farmer

Doug SeidenburgPresident, Molloy-Seidenburg & Co., Ltd., CPA’s

Andy StetelmanPresident, London & Stetelman Commercial Realtors

DIRECTOR OF THE BANK

Klein W. KirbyChairman, A. Wilbert’s Sons, LLC.

CORPORATE OFFICERSE. Ricky Gibson, Chairman of the Board

M. Ray (Hoppy) Cole, Jr., President & CEODee Dee Lowery, CFO

CORPORATE INFORMATIONANNUAL MEETINGThe Annual Meeting of Shareholders will be held Thursday, May 16, 2019 at The University of Southern Mississippi, Scianna Hall, 118 College Drive, Hattiesburg, MS 39406. All Shareholders are invited.

STOCK TRANSFER AGENTComputershare, Inc.211 Quality Circle, Suite 210 College Station, TX 778451-800-368-5948

INDEPENDENT AUDITORCrowe LLPCertified Public AccountantsAtlanta, Georgia

FINANCIAL INFORMATIONCopies of the form 10-K Annual Report to the Securities and Exchange Commission, including financial statements andfinancial statement schedules, are available without charge upon request at:

The First Bancshares, Inc.6480 U.S. Highway 98 West (39402) P.O. Box 15549

Hattiesburg, MS 39404-5549

The Form 10-K Annual Report to the Securities and Exchange Commission, including financial statements and financialstatement schedules, serves as the alternative annual disclosure statement pursuant to 12 CFR § 350.0

STOCK INFORMATIONThe Company’s articles of incorporation authorize it to issue up to 40,000,000 shares of Common Stock. As of March 22, 2019, the Company had 17,272,731 shares outstanding, held by shareholders of record.

The Common Stock of the Company is traded on the Nasdaq Global Market under the symbol FBMS.

1.855.257.2265 • www.TheFirstBank.com3

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with an estimated governmental job base of 60,000 employees, which is about 33% of the approximate 183,300 jobs in the area. It is the home of Florida State University, with an enrollment of over 41,000 students, and Florida A & M, with an estimated enrollment of 9,900 and is recognized as the most educated city in Florida. The education and health services sector has

The Gulf Coast area has a robust tourism industry with 11 casinos and a $1.1 billion gaming industry, as well as salt water fishing and other tourist attractions, which will include a new $93 million aquarium under construction that is expected to draw 500,000 visitors per year. Gulfport is also major deep

a projected growth rate of 15.5% and its leisure, hospitality and professional services sectors have a projected 10% growth rate during the next eight years. Pensacola, with its white sand beaches, is a vibrant part of Florida’s tourism industry and also has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training center are located in this area, including the precision Blue Angels flight team.

The bank entered the Monticello, Florida and Thomasville, Georgia markets with the FMB acquisition in 2018. Monticello is located between Tallahassee and Thomasville and has two colleges, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producer of trees and deciduous shrubs in the nation. Thomasville is the headquarters of Flowers Foods which has 46 bakeries and is a major distributor of packaged baked goods. Senior Insurance Company, along with a number of other large companies, is also located in this historic town. This area of Georgia is also known as the quail hunting capital of the world.

MississippiHattiesburg is the corporate headquarters for The First and is located in the Pine Belt region of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910, the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. Hattiesburg is home to William Carey University. William Carey was founded in 1892 and currently has an enrollment of 4,911 students. William Carey opened the College of Osteopathic Medicine in 2009. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

Mobile, the 12th largest seaport in the U. S., has a vibrant maritime industry with companies like Austral, which has military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has major chemical plants, an Airbus assembly plant and stainless steel manufacturing companies AM/NS Calver and Outokumpu Stainless. Baldwin County is the heart of Alabama’s thriving coastal tourism with 9.8 million visitors who spent $5.6 billion in 2017. With seven community colleges and nine universities within 50 miles, 10% of the population in Baldwin County hold graduate degrees and Baldwin County has five of the top twenty-five most educated cities in America. The area has a highly skilled labor pool of 500,000 people, fueled by a population growth of 51% of new residents since 2010.

Tallahassee is one of the fastest growing economies in Florida and outranks the average economic growth for the U.S.

4

M. Ray“Hoppy”Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

water port and Huntington-Ingalls Shipbuilders is located in the port of Pascagoula and employs approximately 11,500 workers. Chevron also operates one of the largest refineries in America in Pascagoula. Keesler Air Force Base is located in Biloxi and is home for the famous “Hurricane Hunters”.

Jackson is the capital of Mississippi and is the state’s largest city. It is the corporate home to three publically traded companies: Cal-Maine Foods, US EastGroup Properties and Trustmark National Bank. One of the largest Nissan automobile manufacturing plants is located just north of Jackson and Continental Tire is constructing a new $1.45 billion facility just west of Jackson which will generate 2,500 new jobs.

Louisiana

The First serves the greater New Orleans Area with seven branches. The New Orleans MSA is the largest in the state with employment at 578,000 and is predicted to grow 1.3% in 2019 according to the Louisiana Economic Outlook. There are $33.7 billion industrial projects that have been announced and the area has a vibrant healthcare sector with expansions of Ochsner Health System, Provision Healthcare and Children’s Hospital.

The retail and hospitality sector is also booming with three new hotel projects underway. One of the largest public works projects, with a $993 million investment, is the new Louis Armstrong airport which will significantly increase airline capacity to the City. The Baton Rouge MSA and the North Shore of Lake Pontchartrain, along with New Orleans, form a network of The First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and

on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The First also does business in Slidell which is six miles across Lake Pontchartrain from New Orleans. The area has a population of 28,000 with a growth forecast of 17% and a median age of 39.8 years. It has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center. It is home to many of residents who work in New Orleans and it has large retail centers to accommodate their needs. With the Florida Parishes Bank acquisition, The First added seven more locations filling in the footprint between Baton Rouge and Metro New Orleans.

As you can see by this data, The First is based in strong economies with the potential for significant future growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the 600 employees who carry out our mission on a daily basis. Just this past year we have acquired three companies and our staff has worked to add their talents to our team and to create more synergy that we believe will be accretive to earnings. We appreciate the confidence that our shareholders have shown in us and we will work diligently to earn their trust in our institution in the future.

tourist attractions. Gulfport has a deep-water port and Keesler Air Force Base which has many training centers and provides a home for the famous “Hurricane Hunters.”

Jackson is the capital of Mississippi and is the state’s largest city. It has three publicly traded companies including: Cal-Maine Foods, US East Group Properties and Trustmark Corporation. One of the largest Nissan automobile manufacturing plants is located in Jackson.

Louisiana

The Baton Rouge MSA and the North Shore of Lake Pontchartrain are the anchors of the First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and a labor force of 238,000. It is the capital of state government, as well as, the home of three significant educational institutions: Louisiana State University, Southern University and Baton Rouge Community College. Other drivers of the Baton Rouge economy are the many petrochemical complexes located on the Mississippi River. ExxonMobil, Dow and Shintech are just some of the global companies with significant operations in the region. The petrochemical industries are supported by the Port of Baton Rouge, a deep-water port

M. Ray “Hoppy” Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

4

Baton Rouge, Louisiana

Jackson, Mississippi

on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The First also does business in Slidell which is six miles across Lake Pontchartrain from New Orleans. The area has a population of 28,000 with a growth forecast of 17% and a median age of 39.8 years. It has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center. It is home to many of residents who work in New Orleans and it has large retail centers to accommodate their needs. With the Florida Parishes Bank acquisition, The First added seven more locations filling in the footprint between Baton Rouge and Metro New Orleans.

As you can see by this data, The First is based in strong economies with the potential for significant future growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the 600 employees who carry out our mission on a daily basis. Just this past year we have acquired three companies and our staff has worked to add their talents to our team and to create more synergy that we believe will be accretive to earnings. We appreciate the confidence that our shareholders have shown in us and we will work diligently to earn their trust in our institution in the future.

tourist attractions. Gulfport has a deep-water port and Keesler Air Force Base which has many training centers and provides a home for the famous “Hurricane Hunters.”

Jackson is the capital of Mississippi and is the state’s largest city. It has three publicly traded companies including: Cal-Maine Foods, US East Group Properties and Trustmark Corporation. One of the largest Nissan automobile manufacturing plants is located in Jackson.

Louisiana

The Baton Rouge MSA and the North Shore of Lake Pontchartrain are the anchors of the First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and a labor force of 238,000. It is the capital of state government, as well as, the home of three significant educational institutions: Louisiana State University, Southern University and Baton Rouge Community College. Other drivers of the Baton Rouge economy are the many petrochemical complexes located on the Mississippi River. ExxonMobil, Dow and Shintech are just some of the global companies with significant operations in the region. The petrochemical industries are supported by the Port of Baton Rouge, a deep-water port

M. Ray “Hoppy” Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

4

Baton Rouge, Louisiana

Jackson, Mississippi

a labor force of 238,000. Key drivers of its economy are the governmental capital complex and three large educational institutions – Louisiana State University, Southern University and Baton Rouge Community College with combined enrollments of over 50,000 students. Other drivers of the Baton Rouge economy are the many petrochemical complexes located along the Mississippi River such as ExxonMobil, Dow and Shintech. These complexes are served by the Port of Baton Rouge which is the last deep-water port on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The Northshore of Lake Pontchartrain is a vital part of The First’s Louisiana operations. This area is known for its wealth and wonderful quality of life. This area has seen high growth rates, especially following Hurricane Katrina. The area has many residents who work in New Orleans. However, it has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center.

The First operates in diverse communities with strong and expanding economies and

is well positioned for continued growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the over 700 team members who carry out our mission on a daily basis. Over the last 15 months, we have acquired four companies and our staff has worked to add their talents to our team and to create more synergy that we believe will bolster our growth and profitability. We appreciate the confidence that our shareholders have shown in us and we will work diligently to look for opportunities that create value for our shareholders.

1.855.257.2265 • www.TheFirstBank.com3

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with a governmental job base which comprises 32% of the area’s employment. It is the home of Florida State University which has an enrollment of over 41,000 students and Florida A & M University with an enrollment of 9,900 students. Its Education and Health Services sector has a projected growth rate of 15.5% and its Leisure, Hospitality and Professional Services sectors have 10% projected growth rates in the next eight years. Pensacola is a vibrant part of Florida’s tourism industry and has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training centers are located there as well as the widely-known Blue Angels.

Monticello, FL and Thomasville, GA were part of the FMB acquisition. Monticello is located between Tallahassee and Thomasville. It has two universities, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producers of trees and decidous shrubs in the nation. Thomasville is the headquarters for Flowers Foods, a national bakery and distributor of packaged baked goods with 46 bakeries in the US. Senior Insurance Company is also headquartered in this historic town.

MississippiHattiesburg is the corporate headquarters for The First and located in the Pine Belt of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910 the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

The Gulf Coast Area has a robust tourism industry. The Biloxi-Gulfport region has 11 Casinos and a $1.1 billion gaming industry, as well as, salt water fishing and other

Florida, Alabama and Georgia MarketsThese markets are comprised of Mobile and Baldwin County in Alabama and Pensacola and five locations in Tallahassee and one in Georgia.

These are all growth areas based on strong economic foundations. Mobile has a vibrant maritime industry with companies like Austral with military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has an Airbus Assembly plant and AM/NS Calvert and Outokumpu Stainless- stainless steel manufacturing companies. Baldwin County is in the heart of Alabama’s coastal tourism. It is the fastest growing county in Alabama and projected to have the 4th largest county population by 2020. It has a labor force of 500,000 and new residents since 2000 comprise 51% of that population. It has highly educated citizens with 10% of the population holding graduate degrees. In addition, seven community colleges and nine universities are within 50 miles.

Tallahassee is one of the fastest growing economies in Florida and outranking growth in the United States.

Economy Tallahassee, FL United StatesUnemployment Rate 3.6% 3.9%Recent Job Growth 2.0% 1.6%Future Job Growth 37.9% 33.5%Sales Taxes 7.5% 7.3%

3

Tallahassee, Florida

Hattiesburg, Mississippi

Mobile, Alabama

Tallahassee is the capital of Florida with an estimated governmental job base of 60,000 employees, which is about 33% of the approximate 183,300 jobs in the area. It is the home of Florida State University, with an enrollment of over 41,000 students, and Florida A & M, with an estimated enrollment of 9,900 and is recognized as the most educated city in Florida. The education and health services sector has

The Gulf Coast area has a robust tourism industry with 11 casinos and a $1.1 billion gaming industry, as well as salt water fishing and other tourist attractions, which will include a new $93 million aquarium under construction that is expected to draw 500,000 visitors per year. Gulfport is also major deep

a projected growth rate of 15.5% and its leisure, hospitality and professional services sectors have a projected 10% growth rate during the next eight years. Pensacola, with its white sand beaches, is a vibrant part of Florida’s tourism industry and also has a solid base of military jobs due to the strong naval presence in the area. The Naval Air Station employs 16,000 military and 7,400 civilian personnel. Many naval training center are located in this area, including the precision Blue Angels flight team.

The bank entered the Monticello, Florida and Thomasville, Georgia markets with the FMB acquisition in 2018. Monticello is located between Tallahassee and Thomasville and has two colleges, Chipola College and The Baptist College of Florida. This historic town is home to one of the largest producer of trees and deciduous shrubs in the nation. Thomasville is the headquarters of Flowers Foods which has 46 bakeries and is a major distributor of packaged baked goods. Senior Insurance Company, along with a number of other large companies, is also located in this historic town. This area of Georgia is also known as the quail hunting capital of the world.

MississippiHattiesburg is the corporate headquarters for The First and is located in the Pine Belt region of the state. It has a diverse economy with one of the largest hospitals in the region- Forrest General. This hospital drives $274 million in economic benefits annually and employs 4,100 individuals in its system. The University of Southern Mississippi is also located in Hattiesburg. Founded in 1910, the University has 15,000 students and offers a diverse choice of undergraduate and graduate courses of study. Hattiesburg is home to William Carey University. William Carey was founded in 1892 and currently has an enrollment of 4,911 students. William Carey opened the College of Osteopathic Medicine in 2009. This area also is home to Camp Shelby a significant military base that trains for overseas deployments.

Mobile, the 12th largest seaport in the U. S., has a vibrant maritime industry with companies like Austral, which has military contracts worth $5.1 billion and a workforce of 4,200. Mobile also has major chemical plants, an Airbus assembly plant and stainless steel manufacturing companies AM/NS Calver and Outokumpu Stainless. Baldwin County is the heart of Alabama’s thriving coastal tourism with 9.8 million visitors who spent $5.6 billion in 2017. With seven community colleges and nine universities within 50 miles, 10% of the population in Baldwin County hold graduate degrees and Baldwin County has five of the top twenty-five most educated cities in America. The area has a highly skilled labor pool of 500,000 people, fueled by a population growth of 51% of new residents since 2010.

Tallahassee is one of the fastest growing economies in Florida and outranks the average economic growth for the U.S.

4

M. Ray“Hoppy”Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

water port and Huntington-Ingalls Shipbuilders is located in the port of Pascagoula and employs approximately 11,500 workers. Chevron also operates one of the largest refineries in America in Pascagoula. Keesler Air Force Base is located in Biloxi and is home for the famous “Hurricane Hunters”.

Jackson is the capital of Mississippi and is the state’s largest city. It is the corporate home to three publically traded companies: Cal-Maine Foods, US EastGroup Properties and Trustmark National Bank. One of the largest Nissan automobile manufacturing plants is located just north of Jackson and Continental Tire is constructing a new $1.45 billion facility just west of Jackson which will generate 2,500 new jobs.

Louisiana

The First serves the greater New Orleans Area with seven branches. The New Orleans MSA is the largest in the state with employment at 578,000 and is predicted to grow 1.3% in 2019 according to the Louisiana Economic Outlook. There are $33.7 billion industrial projects that have been announced and the area has a vibrant healthcare sector with expansions of Ochsner Health System, Provision Healthcare and Children’s Hospital.

The retail and hospitality sector is also booming with three new hotel projects underway. One of the largest public works projects, with a $993 million investment, is the new Louis Armstrong airport which will significantly increase airline capacity to the City. The Baton Rouge MSA and the North Shore of Lake Pontchartrain, along with New Orleans, form a network of The First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and

on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The First also does business in Slidell which is six miles across Lake Pontchartrain from New Orleans. The area has a population of 28,000 with a growth forecast of 17% and a median age of 39.8 years. It has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center. It is home to many of residents who work in New Orleans and it has large retail centers to accommodate their needs. With the Florida Parishes Bank acquisition, The First added seven more locations filling in the footprint between Baton Rouge and Metro New Orleans.

As you can see by this data, The First is based in strong economies with the potential for significant future growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the 600 employees who carry out our mission on a daily basis. Just this past year we have acquired three companies and our staff has worked to add their talents to our team and to create more synergy that we believe will be accretive to earnings. We appreciate the confidence that our shareholders have shown in us and we will work diligently to earn their trust in our institution in the future.

tourist attractions. Gulfport has a deep-water port and Keesler Air Force Base which has many training centers and provides a home for the famous “Hurricane Hunters.”

Jackson is the capital of Mississippi and is the state’s largest city. It has three publicly traded companies including: Cal-Maine Foods, US East Group Properties and Trustmark Corporation. One of the largest Nissan automobile manufacturing plants is located in Jackson.

Louisiana

The Baton Rouge MSA and the North Shore of Lake Pontchartrain are the anchors of the First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and a labor force of 238,000. It is the capital of state government, as well as, the home of three significant educational institutions: Louisiana State University, Southern University and Baton Rouge Community College. Other drivers of the Baton Rouge economy are the many petrochemical complexes located on the Mississippi River. ExxonMobil, Dow and Shintech are just some of the global companies with significant operations in the region. The petrochemical industries are supported by the Port of Baton Rouge, a deep-water port

M. Ray “Hoppy” Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

4

Baton Rouge, Louisiana

Jackson, Mississippi

on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The First also does business in Slidell which is six miles across Lake Pontchartrain from New Orleans. The area has a population of 28,000 with a growth forecast of 17% and a median age of 39.8 years. It has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center. It is home to many of residents who work in New Orleans and it has large retail centers to accommodate their needs. With the Florida Parishes Bank acquisition, The First added seven more locations filling in the footprint between Baton Rouge and Metro New Orleans.

As you can see by this data, The First is based in strong economies with the potential for significant future growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the 600 employees who carry out our mission on a daily basis. Just this past year we have acquired three companies and our staff has worked to add their talents to our team and to create more synergy that we believe will be accretive to earnings. We appreciate the confidence that our shareholders have shown in us and we will work diligently to earn their trust in our institution in the future.

tourist attractions. Gulfport has a deep-water port and Keesler Air Force Base which has many training centers and provides a home for the famous “Hurricane Hunters.”

Jackson is the capital of Mississippi and is the state’s largest city. It has three publicly traded companies including: Cal-Maine Foods, US East Group Properties and Trustmark Corporation. One of the largest Nissan automobile manufacturing plants is located in Jackson.

Louisiana

The Baton Rouge MSA and the North Shore of Lake Pontchartrain are the anchors of the First’s operations in Louisiana. Baton Rouge has a population of 448,000 with a median age of 33.3 and a labor force of 238,000. It is the capital of state government, as well as, the home of three significant educational institutions: Louisiana State University, Southern University and Baton Rouge Community College. Other drivers of the Baton Rouge economy are the many petrochemical complexes located on the Mississippi River. ExxonMobil, Dow and Shintech are just some of the global companies with significant operations in the region. The petrochemical industries are supported by the Port of Baton Rouge, a deep-water port

M. Ray “Hoppy” Cole, Jr.President and CEO

E. Ricky GibsonChairman of the Board

4

Baton Rouge, Louisiana

Jackson, Mississippi

a labor force of 238,000. Key drivers of its economy are the governmental capital complex and three large educational institutions – Louisiana State University, Southern University and Baton Rouge Community College with combined enrollments of over 50,000 students. Other drivers of the Baton Rouge economy are the many petrochemical complexes located along the Mississippi River such as ExxonMobil, Dow and Shintech. These complexes are served by the Port of Baton Rouge which is the last deep-water port on the Mississippi River. The area also has a significant healthcare industry with The Franciscan Missionaries of Our Lady Health System, Mary Bird Perkins Cancer Center, Baton Rouge General and Woman’s Hospitals. According to the Louisiana Economic Outlook, job growth will be the second highest in the state in 2019.

The Northshore of Lake Pontchartrain is a vital part of The First’s Louisiana operations. This area is known for its wealth and wonderful quality of life. This area has seen high growth rates, especially following Hurricane Katrina. The area has many residents who work in New Orleans. However, it has a vibrant economy of aerospace with the Stennis Space Center nearby and Textron. It also has two major medical centers and the Tulane National Primate Research Center.

The First operates in diverse communities with strong and expanding economies and

is well positioned for continued growth.

Our TeamOur bank which started in 1995 is now the sixth largest bank based in Mississippi. Our growth and profitability are due to the execution of our strategy by the leadership team and the over 700 team members who carry out our mission on a daily basis. Over the last 15 months, we have acquired four companies and our staff has worked to add their talents to our team and to create more synergy that we believe will bolster our growth and profitability. We appreciate the confidence that our shareholders have shown in us and we will work diligently to look for opportunities that create value for our shareholders.

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

2

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

The geographic diversification adds to our franchise value and mitigates our risks. We also connect to the needs of local markets by maintaining advisory boards who have input into our products and services.

Deposits have shown a positive trend line as well with a 23% CAGR from 2009 to year end 2018. Deposits for 2018 were $2.5 billion up from $1.5 billion in 2017, an increase of 67.1%. Deposits are also geographically distributed and diversified across product lines which adds to franchise value.

In addition to the Company’s geographic expansion, The First has also expanded private banking services. Private bankers are working throughout the Company’s footprint. Technology has also boosted Treasury Management services. The First has focused on staying current with all of the delivery channel options that consumers want and need for their various markets.

Regional Economics

A key factor in The First’s success is our markets. The Southeastern region of the US is projected to increase population from 2019 to 2024 by 4.6% compared to overall US population growth of 3.6%. Florida has projected population growth of 6.8% and Louisiana has projected growth of 2.0% in that same time frame. Florida is also expected to have a 10.3% increase in household income and Alabama an increase of household income of 8.5% in that period.

2

LA23%

GA4%

FL20%

AL20%

MS32%

LoansBy State

LA21%

GA2%

FL22%

AL23%

MS32%

DepositsBy State

2019-2024Projected Population Growth(%)

Regional Economics

A key factor in The First’s success is our locations in the key markets within our fi ve state footprint. From 2019 to 2024 the population in the Southeastern region of the U.S. is projected to increase 4.6%, compared to an estimated population growth of 3.6% for the entire U.S. During this timeframe, Florida is expected to enjoy a booming population growth of 6.8%. Florida is also expected to benefi t from a 10.3% increase in household income, followed by Alabama with a projected 8.5% increase from 2019-2024.

In addition to focusing on growth and profi tability to enhance shareholder value, a major part of our plan was to improve liquidity and daily trading volume in our stock.

In 2011, we had approximately 3.1 million shares outstanding with average daily trading volume of 500 shares. At the end of 2018, total shares outstanding were approximately 14.8 million with an average daily trading volume of over 30,000 shares.

In January of 2011, our stock price was approximately $8.61 with a dividend of $0.15 annually. On December 31, 2018, our stock closed at $30.25 with a dividend of $0.20 per share. Subsequent to the year end, the Board approved increasing our dividend to $0.28 per share annually. We are pleased with the results of executing our strategic vision and the value that has been created based upon these results.

Our execution of our strategic plan of growth and diversifi cation has helped create strong value for our shareholders.

The geographic diversifi cation adds to our franchise value and helps mitigate our risks.

Alabama, Florida and Georgia MarketsOur markets in these three states include greater Mobile and Baldwin County in Alabama, Tallahassee and Pensacola areas in Florida and Thomasville, Georgia. These are all high growth areas that will continue to benefi t from a strong economic foundation.

1.855.257.2265 • www.TheFirstBank.com5

Directors and Corporate OfficersDirectors of the Bank and Holding Company

Dr. Rodney BennettPresident, USM

Dr. David W. BomboyOrthopedic Surgeon

M. Ray (Hoppy) Cole, Jr.President & CEO, The First Bancshares, Inc.President & CEO, The First, A National Banking Association

E. Ricky GibsonChairman of the Board, The First Bancshares, Inc.Chairman of the Board, The First, A National Banking AssociationPresident and Owner, N & H Electronics

Charles R. LightseySocial Security Disability Representative

Fred McMurryVice President and General Manager, Havard Pest Control

Thomas E. MitchellPresident, Stuart Contracting Co., Inc.

Ted E. ParkerCattle Farmer

Doug SeidenburgPresident, Molloy-Seidenburg & Co., Ltd., CPA’s

Andy StetelmanPresident, London & Stetelman Commercial Realtors

DIRECTOR OF THE BANK

Klein W. KirbyChairman, A. Wilbert’s Sons, LLC.

CORPORATE OFFICERSE. Ricky Gibson, Chairman of the Board

M. Ray (Hoppy) Cole, Jr., President & CEODee Dee Lowery, CFO

CORPORATE INFORMATIONANNUAL MEETINGThe Annual Meeting of Shareholders will be held Thursday, May 16, 2019 at The University of Southern Mississippi, Scianna Hall, 118 College Drive, Hattiesburg, MS 39406. All Shareholders are invited.

STOCK TRANSFER AGENTComputershare, Inc.211 Quality Circle, Suite 210 College Station, TX 778451-800-368-5948

INDEPENDENT AUDITORCrowe LLPCertified Public AccountantsAtlanta, Georgia

FINANCIAL INFORMATIONCopies of the form 10-K Annual Report to the Securities and Exchange Commission, including financial statements andfinancial statement schedules, are available without charge upon request at:

The First Bancshares, Inc.6480 U.S. Highway 98 West (39402) P.O. Box 15549

Hattiesburg, MS 39404-5549

The Form 10-K Annual Report to the Securities and Exchange Commission, including financial statements and financialstatement schedules, serves as the alternative annual disclosure statement pursuant to 12 CFR § 350.0

STOCK INFORMATIONThe Company’s articles of incorporation authorize it to issue up to 40,000,000 shares of Common Stock. As of March 22, 2019, the Company had 17,272,731 shares outstanding, held by shareholders of record.

The Common Stock of the Company is traded on the Nasdaq Global Market under the symbol FBMS.

1.855.257.2265 • www.TheFirstBank.com1

Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . .1Corporate Information . . . . . . . . . . . . . . . . . . . . . . .5Directors and Corporate Offi cers . . . . . . . . . . . . . . .5Advisory Boards . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Dea� Fe� o� Shareholders :2018 was another landmark year in the history of our company. Through continued execution of our strategic plan, your company ended the year with $3 billion in total assets distributed across fi ve states, with 67 branches and over 600 total employees.

Our growth has been a combination of both organic and acquisitive and has been focused in the south east region from Louisiana to Florida and southern Georgia.

Since 2009, your team has closed ten acquisitions which include:

• 2011 Whitney Bank’s Mississippi Gulf Coast Branches

• 2013 FNB of Baldwin County, Baldwin County, Alabama

• 2014 BCB Holding Company - Bay Bank, Mobile, Alabama

• 2015 The Mortgage Connection, Jackson, Mississippi

• 2017 Iberville Bank, Baton Rouge, Louisiana

• 2017 Gulf Coast Community Bank, Pensacola, Florida

• 2018 Southwest Banc Shares, Mobile and south Alabama

• 2018 Sunshine Financial, Tallahassee, Florida

• 2018 FMB Banking Corporation, Tallahassee, Florida and Thomasville, Georgia

• 2019 FPB Banking Corp, Florida Parishes Bank, Hammond, Louisiana, closed 1Q 2019

On March 1, 2019, your company closed the acquisition of FPB Banking Corp and its subsidiary bank, Florida Parishes Bank.

Florida Parishes Bank was headquartered in Hammond, Louisiana with seven branches located: in Ponchatoula, Amite, Covington, Mandeville, Metairie, and two in Hammond, Louisiana.

Florida Parishes is a perfect geographic fi t adding market share in Louisiana as well as providing an outstanding group of experienced bankers to grow our Louisiana presence. We are absolutely thrilled to have them join our team.

Growth and Profi tabilityOur strategic vision of building a regional community bank was developed ten years ago.

Based upon that strategic vision and through execution of our growth plan, we have achieved exceptional results and created signifi cant value for our shareholders.

Since 2011, your company has averaged a compounded annual growth rate of 24% in total assets from under $500

million in 2009 to over $3 billion as of December 31, 2018.

This asset growth has produced a substantial increase in profi tability. During 2011, your company recorded net income of $2.5 million with earnings per share of $0.82. During 2018, your company recorded net income of $21.2 million and earnings per share of $1.62.

If you adjust 2018 for the substantial one-time charges associated with three acquisitions closed during the year, our “core” net income was $30 million with “core” earnings per share of $2.29. Since 2011, this is a twelve-fold increase in core net income and a 179% increase in earnings per share.

Building Franchise Value and Diversifi cationAnother major component of our strategic plan was to diversify our asset base across the south. Our plan was to expand across different geographic locations and focus on markets in the southeast with strong economies and strong demographics. We believed this would help drive a premium valuation and help mitigate concentration risk.

We are a Mississippi company and we are proud of our roots. However, your company is much more diversifi ed across the southeast and has signifi cant market share in some of the more dynamic growth markets in Mississippi, Alabama, Florida, Georgia, and Louisiana. In 2009, the majority of your company’s loans and deposits were concentrated in south Mississippi. Today, we are much more evenly distributed across our fi ve states.

Dear Fellow Shareholders: The year of 2018 was a landmark year. We now have operations in five states with 100,000 customers. The First has over $3.0 billion in consolidated assets. We achieved that milestone by determining a growth strategy in 2009 and executing it with precision. Our goal is to be a strong regional bank and we are continuing to achieve that status with acquisitions and organic growth. Our merger and acquisition strategy targeted 200 banks with $300-$500 million in assets along Interstate 10 and Interstate 12 corridors from Louisiana to Florida. Since 2009 we have acquired nine banks and one mortgage company. Our acquisitions include: • 2011Whitney Bank’s Mississippi Branches

• 2013Baldwin Bank of Baldwin County, Alabama

• 2014BCB Holding Company - Bay Bank, Alabama

• 2015TheMortgage Connection, Mississippi

• 2017 Iberville and Gulf Coast Community Banks, Florida

• 2018 Southwest Bancshares, Alabama

• 2018 Sunshine Financial, Florida

• 2018 FMB Banking Corporation, Florida and Georgia

• 2019FPB Banking Corp, Florida Parishes Bank, Louisiana,

closed 1Q 2019

The FPB Financial Corp’s (“FPB”) acquisition by our Company closed March 4, 2019. After this acquisition our Company has approximately $3.5 billion in total assets, $2.8 billion in total deposits and $2.3 billion in total loans. The First also has 71 locations. The financials in this report reflect 2018 results but the shareholders should be aware of the increase in assets, loans, deposits and locations as a result of this acquisition.

Results of 2018Our CAGR from 2009 to year end of 2018 was 24%. In 2018, 68% of our assets were from acquisitions and 32% from organic growth and our Company grew 9% from 2017 to 2018. We generated growth throughout our footprint. However, we believe that our area, especially Louisiana and Florida, holds great potential for future organic growth.

We have not sacrificed earnings for growth. Our net income for 2018 was $ 21.2 million, a 99.9% increase from 2017. Our operating net earnings were $30 million, a 77.8% increase from 2017 and our earnings per share rose to $1.62, a significant growth from $1.11 in the previous year. Our operating earnings per share was

$2.29 compared to $1.76 in 2017. We have achieved these earnings results since increasing our outstanding shares by 4,049,273 since the fourth quarter of 2017.

Our individual and institutional shareholders have also benefited from increased liquidity of our stock. We now have 14.8 million shares outstanding with 14 million in our float with a daily trading volume of approximately thirty thousand shares. Shareholders who have held our stock since we began acquiring other banks have significantly benefited from appreciation and dividends. Our stock closed on January 1, 2011 the year of our first acquisition at $8.61 with a dividend of $0.0375. Our stock closed on December 31, 2018 at $30.25 with a $0.05 dividend and a higher dividend of $0.07 will be offered in the first quarter of 2019.

Loans and DepositsThe First has had CAGR of 23% from 2009 and $2.1 billion in loans at year end 2018, compared to 1.2 billion in year end 2017, a 68.2% increase. Although The First is based in Mississippi, as a regional bank, its loan portfolio is dispersed geographically.

Net Income$ In Millions

LOANSDEPOSITS

Loans and Deposits$ In Millions

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Advisory BoardsAs of 12-31-2018

HATTIESBURG, MISSISSIPPI

George “Josh” Blair

Richard E. Clatterbuck

Steven G. Cunningham

Troy Daniels

Charles Dawe

Bernard Green

Scott Hummel

John Kosko

L. Carr McClain

Renee Moore

Michael Neuendorf

Tony Petro

Don Roseberry

Steven Stogner

Jim Stroo

Millie Swan

PURVIS, MISSISSIPPI

Jonathan Hensleigh

David Lawson

A. L. Smith

John Wyzard

LAUREL, MISSISSIPPI

Roy Boutwell

Derrick Burgess

Brook Jones

Grayson Lacey

Charles Lightsey

Trent Mulloy

Jody Nichols

Robert Read

Elvin Ulmer

William Wells

BAY ST. LOUIS, MISSISSIPPI

Jason Chiniche

Mark Henderson

Ronnie Artigues, Jr.

Guy Johnson

Jimmie Ladner, Jr.

Larry Ladner

PICAYUNE, MISSISSIPPI

Gregory H. Mitchell, Sr.

Gerald Patch

Dr. Kevin Smith

Derwin Whitfield

WIGGINS, MISSISSIPPI

Dr. Marie Heim

Dr. Greg Loose

Pamela Loveless

John Russell O’Neal

HARRISON COUNTY, MISSISSIPPI

Joe Cloyd

Christen Duhé

William (Billy) Guice

Robert Heinrich

Erich N. Nichols

Steven Oberlies

David Treutel, Jr.

PASCAGOULA, MISSISSIPPI

Bradley P. Patano

Henry Hansel Furr

Nicky W. Maxwell

Dr. Alfred McNair

C. Scott Rankin

Marshall Smith

WASHINGTON PARISH, LOUISIANA

Chad Adcox

Robert A. Neilson

Roscoe Richmond

BALDWIN COUNTY, ALABAMA

Daniel G. Blackburn

J. Coleman Bryars

Leonard A. Kaiser

Cliff H. Pitman

Donald P. Robinson

Jim Robertson

Richard A. Schwartz

MOBILE COUNTY, ALABAMA

Tom Bramlett

Reid Cummings

Jimmy Lyons

David Marks

Juan Peasant

Mike Reid

John Sheldon

BATON ROUGE, LOUISIANA

Robert Anderson Blumberg

Kevin C. Davis

Jason Dupree

Stephen L. Dwyer

Rhaoul Guillame, Jr.

Pal D. Mascagni

Grey Mullins

Erik Piazza

Drew Sellers

Cheree Swartzenburg

R. David Wascom