UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 28, 2020
 
The First Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Mississippi
33-94288
64-0862173
(State or other jurisdiction
of incorporation)
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
6480 U.S. Hwy 98 West, Hattiesburg, MS
 
39402
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code
(601) 268-8998
 

N/A
 
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock
FBMS
NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

Item 7.01.          Regulation FD Disclosure


On July 28, 2020, The First Bancshares, Inc. (the “Company”) issued a press release announcing that company representatives will participate in the 21st Annual KBW Community Bank Investor Conference, which is being held virtually on July 28, 2020 through July 30, 2020 and will have one-on-one meetings with certain bank stock analysts and investors. A copy of the press releases is attached hereto as Exhibit 99.1 and incorporated herein.

The Company has prepared presentation materials for use during meetings with certain bank stock analysts and current and potential investors at the KBW Conference (the “Conference Presentation”).  A copy of the Conference Presentation is attached hereto as Exhibit 99.2 and incorporated herein.

The Company has also prepared presentation materials for general use by the Company’s management (the “Earnings Presentation”) in connection with the press release announcing the Company’s second quarter earnings and the declaration of a cash dividend that was issued on July 27, 2020.  The Company first made the Earnings Presentation available on its website on July 28, 2020, and a copy of the Earnings Presentation is attached hereto as Exhibit 99.3 and incorporated herein. Materials on the Company’s website are not part of or incorporated by reference into this report.

The information contained in this Item 7.01 and in Exhibits 99.1, 99.2 and 99.3 attached to this Report is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. Furthermore, such information shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended
 
Item 9.01          Financial Statements and Exhibits

Exhibit 99.1            Press Release dated July 28, 2020 announcing participation at the Virtual KBW Community Bank Investor Conference

Exhibit 99.2            Investor Presentation for the KBW Community Bank Investor Conference

Exhibit 99.3            Investor Presentation for Use with Press Release Announcing Second Quarter Earnings filed on 7-27-2020


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
The First Bancshares, Inc.
 
 
 
 
Date:  July 28, 2020
 
 
 
 
 
 
/s/ Donna T. (Dee Dee) Lowery
 
Name: Donna T. (Dee Dee) Lowery
 
Title:   EVP and CFO

Exhibit 99.1

The First Bancshares to Participate in Virtual KBW Community Bank Conference

HATTIESBURG, Miss.--(BUSINESS WIRE)--July 28, 2020--The First Bancshares, Inc. (NASDAQ: FBMS), holding company for The First, A National Banking Association, (www.thefirstbank.com) will participate in the 21st Annual KBW Community Bank Investor Conference, which is being held virtually, on July 28, 2020 through July 30, 2020 and will have one-on-one meetings with certain bank stock analysts and investors.

The presentation prepared for use during these meetings will be available at the company’s website www.thefirstbank.com under Investor Relations>News & Events>Presentations.

The First Bancshares, Inc., headquartered in Hattiesburg, Mississippi, is the parent company of The First, A National Banking Association. Founded in 1996, the First has operations in Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s stock is traded on NASDAQ Global Market under the symbol FBMS. Information is available on the Company’s website: www.thefirstbank.com.

Contacts

M. Ray “Hoppy” Cole, CEO or
DeeDee Lowery, CFO

Phone: 601-268-8998

Exhibit 99.2


 July 2020  NASDAQ: FBMS 
 

 This slide presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) changes in economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations; (3) interest rate risk; (4) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (5) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (6) changes in management’s plans for the future; (7) credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values, or competition; (8) changes in accounting principles, policies, or guidelines; (9) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (10) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (11) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (12) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Statements about the potential effects of the COVID-19 pandemic on the Company’s assets, business, liquidity, financial condition, prospects, and results of operations may constitute forward-looking statements and are subject to the risks that the actual effects may differ, possibly materially, from what is reflected in these forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the depth, dispersion and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, employees, third parties and the Company.   2  Forward Looking Statement 
 

 The First Bancshares: Building Shareholder Value  3 
 

 Overview of The First Bancshares, Inc.  4    Bank Headquartered in Hattiesburg, MS in 1996  84 Locations in Gulf South: MS, LA, AL, FL & GA  Revenues of $175.7 Million LTM  Assets of $5.1 Billion at June 30, 2020  5th Largest Bank Headquartered in Mississippi   # of Employees – 793  Stock Traded on Nasdaq – Symbol FBMS  # of Closed Transactions since 2010 – 12                 
 

 Franchise Footprint    FBMS Branch (68)    SGB (8)    FBMS LPO (2)      FFB (6)                                                                                                                                                                              Jackson  Mobile  Baton Rouge  Tallahassee  New Orleans  Columbus  Shreveport  Jacksonville  Destin  Pensacola  Albany  Moultrie  Valdosta  Panama City Beach  Birmingham  Huntsville  Montgomery  Atlanta  Hattiesburg      5 
 

 Organic and Acquisitive Growth  December 31, 2009        June 30, 2020    Total Assets ($mm)  2010 – Q2 ‘20 CAGR: 28%  Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q2 ’20 data as of 6/30/20   FBMS Branch (9)                    FBMS Branch (82)  FBMS LPO (2)                                  6 
 

 Historical Performance Over TimeNinth Year of Record Earnings                    EPS  Net Income ($mm)      $0.82  $1.16  $0.96  $1.19  $1.55  $1.57  $1.11  $1.62            1.75%  2.03%  1.80%  1.93%  1.87%  1.73%  1.79%  1.75%    $2.55  7  Pre-tax Pre Provision Income ($mm)  PTPP ROA 
 

 Historical Profitability Trends  8  Reported ROAA (%)   Source: S&P Global Market Intelligence, Company Documents Data as of or for the three months ended each respective quarter(1) Refer to appendix for “Non-GAAP Reconciliation” * Inclusive of $7.0 million bargain purchase gain  Adjusted ROAA (%) (1)  Reported ROATCE (%)  Adjusted ROATCE (%) (1) 
 

 9    First Community BankMobile MSA  Sunshine Community BankTallahassee MSA  FMB Banking CorporationTallahassee MSA  FPB FinancialCorp.Hammond MSA  First Florida Bancorp, Inc.Destin MSA  Southwest Georgia Financial CorporationValdosta MSA  The First Gained  Date Closed  March 1, 2018  April 1, 2018  November 1, 2018  March 2, 2019  November 1, 2019  April 3, 2020    Branches  9  5  6  7  6  8  41  Purchase Price  Cash & Stock: $60.0M  Cash & Stock: $30.5M  Cash & Stock: $80.0M  Cash & Stock: $86.1M   Cash & Stock $84.3M  Cash & Stock $47.9M  --  Assets  $398.5M  $213.1M  $477.1M  $375.7M  $428.5M  $535.7M  $2.4B  Loans  $269.9M  $173.1M  $331.6M  $247.8M  $248.9M  $394.6M  $1.7B  Deposits  $357.3M  $154.2M  $428.1M  $313.4M  $372.3M  $475.9M  $2.1B  Building Franchise ValueSix Acquisitions | Closed 2018 – ‘20 
 

 Balance Sheet Composition by State  10  2015 Deposits by State  June 30, 2020 Deposits by State   Source: S&P Global Market Intelligence and Company Documents 2009 and 2015 data as of June 30  2015 Loans by State  June 30, 2020 Loans by State  2009 Loans by State  2009 Deposits by State 
 

 Market Demographics  11  ‘20 – ‘25 Projected Population Growth (%)  ‘20 – ‘25 Projected Median HHI Growth (%)  2025 Projected Median HHI ($)  Source: S&P Global IntelligenceDeposit data as of 6/30/19Demographic data deposit weighted by county 
 

 12    2012  2013  2014  2015  2016  2017  2018  2019  Q1 ‘20  Q2 ‘20  Average Stock Price ($)  $9.21  $12.99  $14.54  $16.40  $18.88  $29.06  $35.08  $31.79  $30.00  $20.32  Average Market Capitalization ($)In Millions  $28.5  $57.3  $75.8  $88.1  $101.4  $277.4  $455.0  $542.9  $564.4  $433.3  Average Daily Volume (shares)  1,679  3,841  4,453  7,387  3,819  24,078  34,841  48,983  95,235  102,667  Price/LTM EPS (x)  8.1x  14.6x  12.2x  11.8x  16.8x  29.7x  18.7x  15.1x  7.5x  9.1x  Price/Tangible Book (%)  78.8%  130.6%  120.0%  140.0%  177.9%  230.0%  179.2%  188.2%  101.1%  110.3%  Market Information and Historical Pricing  Source: S&P Global Market Intelligence, Company documentsPricing data as of 6/30/20 
 

 13  Overview of Potential Whole Bank Opportunities        Source: S&P Global Market IntelligenceData as of most recent quarter availableNote: Excludes banks and thrifts in north Georgia, greater Atlanta region and only includes the Florida panhandle; excludes merger targets and MHCs  Opportunities by State  Opportunities by Asset Size  Includes all banks and thrifts headquartered in Alabama, Louisiana, Mississippi and select Florida and Georgia markets with total assets between $450 million and $2.0 billion 
 

 Nine Years of Record Earnings  Superior Performance and Execution  Strategically Focused on Acquisitive and Organic Growth  Strong Capital Structure  Situated in Growing Markets  Shareholder Value and Return Demonstrated  Successful Leadership Team  14  Seven ReasonsTo Invest in The First     
 

 Historical Balance Sheet Growth  15  Assets ($mm)  Source: S&P Global Market IntelligenceData as of 12/31 of each year, respectively; Q2 ’20 data as of 6/30/20  Loans ($mm)  Deposits ($mm)  2010 – Q2 ‘20 CAGR: 28%  2010 – Q2 ‘20 CAGR: 27%  2010 – Q2 ‘20 CAGR: 28% 
 

 Net Interest Income Over Time  16  3.74%  3.99%  3.59%  3.44%  3.70%  3.72%  3.71%  3.97%  4.08%  Net Interest Income ($mm)  NIM  4.05%  3.83%  3.93%  4.06%  3.89%  3.93%  4.07%  3.63%  4.00% 
 

 Execution of Strategic Vision  17  Source: S&P Global Market Intelligence, Company documentsPricing data as of 7/20/20  Price Performance since 12/31/08  In 2009, FBMS formulated a strategic vision focused on branch expansion and acquisition of banks with assets less than $500 million in MS, AL, LA, FL and GA  $9.04  $19.85  3/22/13$20.0M Preferred Stock Offering  4/30/13Acquired First Baldwin Bancshares, Inc.  7/1/14Acquired BCB Holding Company, Inc.  12/14/15Acquired Mortgage Connection, LLC  10/24/16$63.3M Preferred Stock Offering  1/1/17Acquired Gulf Coast Community Bank  1/1/17Acquired Iberville Bank  10/26/17$58.4M Common Stock Offering`  3/1/18Acquired South West Banc Shares, Inc.  4/1/18Acquired Sunshine Financial, Inc.  5/1/18$66.0M Subordinated Debt Offering  10/31/18Acquired FMB Banking Corp.  3/1/19Acquired FPB Financial Corp.  10/31/19 Acquired First Florida Bancorp.  12/18/19 Acquired Southwest Georgia Financial Corporation 
 

   Note: Assets shown as of next quarter after close; Dates are as of transaction close, unless otherwise specifiedSource: S&P Global Market Intelligence   Executing Upon Growth Strategy  Tangible Book Value Per Share Growth  18  Building Upon a Proven Track Record    12/31/19  12/31/18  12/31/17  12/31/16  12/31/15  12/31/14  12/31/13  6/30/20 
 

 19  Successful Leadership TeamExecutives  E. Ricky GibsonChairmanDirector for 25 YearsSuccessful Entrepreneur for 31 Years  M. Ray “Hoppy” Cole, Jr.President/CEO33 Years of Experience  Dee Dee LoweryExecutive VP, CFO29 Years of Experience     
 

 Ion MixonExecutive VP, Risk Manager20 years experience  Eric WaldronPresident, Mississippi Region24 years experience  Carol DanielExecutive VP, Credit Administrator37 years experience  Chris RyalsExecutive VP, COO25 years experience  Jarrett NicholsonExecutive VP, Chief Administrative Officer26 years experience  Mit ColeExecutive VP of Private Banking11 years experience  Hayden MitchellExecutive VP, Chief Retail Banking Officer 43 years experience  Ronnie FugarinoPresident, Louisiana Region39 years experience  Wade NethPresident, Florida-Alabama Region33 years experience  20  Successful Leadership TeamExecutives     
 

 21  Non-GAAP Reconciliation 
 



Exhibit 99.3


 1  Investor PresentationJuly 27, 2020  NASDAQ: FBMS 
 

 2  Forward Looking Statements  This slide presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: (1) competitive pressures among financial institutions increasing significantly; (2) changes in economic or political conditions, either nationally or locally, particularly in areas in which the Company conducts operations; (3) interest rate risk; (4) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (5) risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; (6) changes in management’s plans for the future; (7) credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values, or competition; (8) changes in accounting principles, policies, or guidelines; (9) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (10) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (11) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (12) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission, which are available on the SEC’s website, http://www.sec.gov. Undue reliance should not be placed on forward-looking statements. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Statements about the potential effects of the COVID-19 pandemic on the Company’s assets, business, liquidity, financial condition, prospects, and results of operations may constitute forward-looking statements and are subject to the risks that the actual effects may differ, possibly materially, from what is reflected in these forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the depth, dispersion and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on customers, employees, third parties and the Company.  
 

   3  Response to Covid-19  Enacted the Pandemic section of our internal Business Continuity Plan Informed employees of CDC and internal recommendations, procedures and protocols concerning: social distancing, business travel, sanitation and disinfection; weekly system wide calls to re-enforce procedures and keep team members up to date on current developments  Distributed inventory of masks, sanitizers and disinfectants system-wide Increased the frequency of facility janitorial services Restricted access to lobbies to “by appointment only” and maintained full drive thru service    THE FIRST ACTED QUICKLY TO ENSURE SAFETY OF EMPLOYEES AND CLIENTS 
 

   4  Response to Covid-19 Continued  Moved as many as practical employees to work by remote access Rotated access as much as practical for employees who’s function could not be performed remotely Provided lunch daily to on site personnel to limit their off premise exposure during the day; rotate purchasing our meals to our restaurant clients in each market to help support them during this emergency Improved and upgraded electronic delivery and execution of documents system wide to limit in person exposure but maintain business volume  
 

 5  Loan Portfolio Potential Increased Risk SectorsJune 30, 2020   SECTOR   BOOK BALANCE   AVAILABLE   TOTAL COMMITTED   % OF LOANS  HOTELS  $129.1 MILLION  $15.6 MILLION  $144.7 MILLION  4.5%  RESTAURANTS  $90.6 MILLION  $2.4 MILLION  $93.0 MILLION  2.9%  RETAIL  $205.6 MILLION  $2.5 MILLION  $208.1 MILLION  6.6%  CONVENIENCE STORES  $61.9 MILLION  $3.6 MILLION  $65.5 MILLION  2.1%  HEALTHCARE  $61.7 MILLION  $19.8 MILLION  $81.5 MILLION  2.6%  DIRECT ENERGY   $19.6 MILLION  $12.8 MILLION  $32.4 MILLION  1.0%  TOTAL   $568.5 MILLION  $56.7 MILLION  $625.2 MILLION  19.7% 
 

 6  Loan Portfolio Risk Sectors DetailJune 30, 2020  SECTOR   TOTAL COMMITTED  % OF LOANS  LTV %  HOTELS  $144.7 MILLION  4.5%  55.4%   FLAGGED  $106.3 MILLION       NON-FLAGGED  $38.4 MILLION      RESTAURANTS  $93.0 MILLION  2.9%  55.5%   CHAIN  $42.6 MILLION       NON-CHAIN  $47.6 MILLION       CONSTRUCTION  $2.8 MILLION      RETAIL  $208.1 MILLION  6.6%  52.5%   CONSTRUCTION  $2.5 MILLION       NON-OWNER OCCUPIED   $51.9 MILLION       RETAIL STRIP W/ ANCHOR  $39.4 MILLION       RETAIL STRIP NO ANCHOR  $114.3 MILLION     
 

 7  Loan Portfolio Risk Sectors by StateJune 30, 2020  SECTOR  TOTAL COMMITTED  % OF LOANS  LTV %  HOTELS  $144.7 MILLION  4.5%  55.4%   MISSISSIPPI   $31.2 MILLION    56.4%   LOUISIANA  $59.0 MILLION    50.0%   ALABAMA  $8.2 MILLION    50.3%   FLORIDA  $25.4 MILLION    52.5%   GEORGIA  $20.9 MILLION    52.6%  RESTAURANTS  $93.0 MILLION  2.9%  55.5%   MISSISSIPPI   $22.9 MILLION    67.4%   LOUISIANA   $38.3 MILLION    50.0%   ALABAMA  $6.2 MILLION    57.1%   FLORIDA  $25.5 MILLION    59.3%   GEORGIA   $0.1 MILLION    10.8% 
 

 8  Risk Sectors by State ContinuedJune 30, 2020  SECTOR  TOTAL COMMITTED  % OF LOANS  LTV %  RETAIL  $208.1 MILLION  6.6%  52.5%   MISSISSIPPI  $57.5 MILLION    53.1%   LOUISIANA  $34.2 MILLION    53.1%   ALABAMA  $20.9 MILLION    45.8%   FLORIDA   $51.7 MILLION    54.9%   GEORGIA  $43.8 MILLION    50.9% 
 

 Modifications of $196 million or 6% of loan portfolio with Majority on 3 month deferralsEnhanced Risk Sectors with modifications as Of July 23, 2020:   9  Loan Modifications Resulting from COVID-19    SECTOR  TOTAL MODIFIED  % OF SECTOR TOTAL  HOTELS  $28.0 MILLION  19.4%  RESTAURANTS  $25.2 MILLION  27.1%  RETAIL  $6.9 MILLION  3.3%  HEALTHCARE  $4.8 MILLION  5.9%   TOTAL   $64.9 MILLION   
 

 10 
 

 As of July 23, 2020, we have processed 3,213 loans totaling $264.8 million with average loan size of $82,000 Net Fees - $10.6 million ppp loans made to Enhanced Risk sectors are detailed below:   11  Payroll Protection Program (PPP)     HOTELS  $2.4 MILLION  RESTAURANTS  $27.0 MILLION  RETAIL  $51.6 MILLION  CONVENIENCE STORES  $3.7 MILLION  HEALTHCARE  $25.2 MILLION   TOTAL   $109.9 MILLION 
 

 12  LOAN RESERVES & NPAs    LOAN BALANCES  ALLL/CREDIT MARK  ALLL/MARK TO LOANS  ACQUIRED LOANS NOT INCORPORATED INTO ALLL MODEL  $903.2 MILLION  $9.4 MILLION MARK  1.0%  ACQUIRED PURCHASED CREDIT IMPAIRED LOANS  $27.6 MILLION  $2.1 MILLION MARK  7.6%  LOANS INCORPORATED INTO ALLL MODEL  $2.241 BILLION  $28.1 MILLION ALLL  1.3%   TOTAL LOANS  $3.172 BILLION  $39.6 MILLION  1.25%  ALLL/CREDIT MARKS @ JUNE 30, 2020  NON PERFORMING ASSETS    BALANCES  % OF LOANS + OREO  LEGACY  $19.8 MILLION  0.6%  ACQUIRED  $25.9 MILLION  0.8%   TOTAL NON PERFORMING ASSETS  $45.7 MILLION  1.4% 
 

 solid capital  13  Balance Sheet Management    JUNE 30, 2020 ESTIMATES  The First, ANBA  First Bancshares  TOTAL SHAREHOLDER’S EQUITY  $688.2 MILLION   $627.8 MILLION  COMMON EQUITY TIER 1 CAPITAL RATIO  15.0%  12.5%  TIER 1 CAPITAL RATIO  15.0%  13.6%  TOTAL RISK-BASED CAPITAL RATIO  15.9%  16.6%  LEVERAGE RATIO  10.1%  9.2%  TCE    8.9% 
 

 14  NASDAQ: FBMS