First Bancshares, Inc.
120 North Street, Bellevue, Ohio 44811
419-483-7340 – Fax 419-483-0006
www.fnblifetime.com
April 17, 2026

Dear Shareholder,

The board of directors of First Bancshares, Inc. have declared a first-quarter dividend in the amount of thirty-five cents ($0.35) per share which represents a two cent ($.02) increase compared to the prior quarterly payment made in January. We continue to balance the return to our shareholders while retaining the appropriate capital levels to support the growth of the bank. This payment is enclosed or has been direct deposited for those that are electing cash payments. Additional shares of First Bancshares stock will be purchased for those that are part of the dividend reinvestment plan.
From the summary financial statistics worksheet included, Net Income for the first quarter 2026 increased by $114k, or 56% compared to the same period in 2025. Interest & investment income improved by $406.6k quarter over quarter, primarily driven by a $449k increase in investment income, which remains very strong since our securities portfolio restructuring in Q3 2025. This was partially offset by a $75k decline in loan interest, as rates declined quarter over quarter and loan balances were down by $5MM.
Fed Funds balances were up $6.5MM, which contributed to a $32.4k improvement in earnings, while SBA Loan Sale gains of $94k contributed to the non-interest income increase of 32.4% for the quarter. The bank was able to increase its ACL Reserves by $250k for the quarter, continuing to exercise appropriate risk management oversight for our loan portfolio. The portfolio continues to perform relatively well during these times of economic uncertainty and global instability. We will continue to closely monitor the impact of inflation on our markets, while maintaining sound underwriting practices for new opportunities.
Non-interest expenses for the quarter increased slightly over the same quarter in 2025, primarily driven by an increase in group insurance costs and personnel expenses. The bank added experienced sales staff over the past six months as part of our strategic plan to grow the loan portfolio and profitability. The bank has shown positive early returns on the plan, as evidenced by the Per Share Data and Financial Ratios disclosed on the financial statistics worksheet included. First Bancshares also recovered $32.5k in federal income taxes from the net operating loss carry forward from 2025.
The overall demand for business and consumer loans is stable, but not robust. Proactive client and prospective client outreach remains a top priority for our banking teams. While interest rates remain relatively stable, consumer sentiment and spending are concerning, as uncertainty around oil prices and inflation persists. We continue to monitor this closely through our customer-facing business units, including commercial and residential lending groups and branch banking teams.
On behalf of the board and staff, we thank you for your support and look forward to continued success in 2026. As a valued shareholder, please remember to submit your proxy votes prior to our annual meeting scheduled for 2:00pm on May 6, 2026, at our corporate office in Bellevue.

Sincerely,

Jeffrey S. Bechtel                     James V. Stouffer, Jr.
President & CEO                      Chairman