On December 6, 2016, The First Bancshares, Inc. (the “Company”) entered into a loan agreement (“Loan Agreement”) with First Tennessee Bank National Association (the “Lender”) for a $20 million revolving line of credit (“Line of Credit”) The maturity date of the Loan Agreement is December 5, 2017. Under the terms of the Loan Agreement, the Company is required to pay quarterly payments of interest on the unpaid principal balance of the Line of Credit. The interest rate on the Line of Credit is subject to change from time to time based on the LIBOR rate. The initial interest rate to be applied to the unpaid principal balance of the Line of Credit will be at a rate of two and 50/100 percent (2.50%) over the LIBOR Rate. In connection with the Line of Credit, the Company executed a negative pledge agreement with the Lender to which it agreed not to pledge any capital stock of the Bank so long as any indebtedness is outstanding under the Line of Credit. The Agreement includes financial covenants and other restrictions customary in financings of this nature. Outstanding indebtedness under the Agreement can be accelerated by the Lender upon the occurrence of customary events of default.

The foregoing description of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the complete terms and conditions of the Loan Agreement, which is attached at Exhibit 10.1 and is incorporated herein by reference.

Item 1.02 Termination of a Material Definitive Agreement

On December 6, 2016, The First Bancshares, Inc. repurchased all 17,123 shares of its Cumulative, Perpetual Preferred Stock, Series CD (CDCI Preferred Stock”) issued to the U.S. Treasury in connection with the Company’s participation in the Troubled Asset Relief Program’s Community Development Capital Initiative and terminated the Exchange Agreement and Securities Purchase Agreement. In connection with the repurchase of the CDCI Preferred Stock, both the Company’s Securities Purchase Agreement, dated September 29, 2010 (“Securities Purchase Agreement”), and the Company’s Exchange Agreement, dated September 29, 2010 (“Exchange Agreement”), both with U.S. Treasury, were terminated. The Securities Purchase Agreement and Exchange Agreement were filed as Exhibit 10.2 and Exhibit 10.1, respectively, to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 4, 2010, and are incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 Press Release dated December 7, 2016

Exhibit 10.1 Loan Agreement, dated December 6, 2016, between The First Bancshares, Inc. and First Tennessee Bank National Association

About The First Bancshares, Inc. (NASDAQ:FBMS)

The First Bancshares, Inc. is a bank holding company for The First, A National Banking Association (the Bank) located in Hattiesburg, Mississippi. The Company and the Bank engage in a general commercial and retail banking business for small to medium-sized businesses, professional concerns and individuals. The Bank offers a portfolio of loans, including mortgage loans held for sale; commercial, financial and agricultural; real estate, such as mortgage-commercial, mortgage-residential and construction; lease financing receivable, and consumer and other loans. The Banks’ investment securities portfolio is categorized into available-for-sale and held-to-maturity. The Bank primarily invests in securities of the United States Government agencies and mortgage-backed securities; states and municipal subdivisions; corporate obligations, and mutual funds. It offers a range of deposit services, including noninterest-bearing accounts and negotiable order of withdrawal (NOW) accounts.

The First Bancshares, Inc. (NASDAQ:FBMS) Recent Trading Information

The First Bancshares, Inc. (NASDAQ:FBMS) closed its last trading session down -0.05 at 25.00 with 630 shares trading hands.