First Bancshares, Inc.
120 North Street, Bellevue, Ohio 44811
419-483-7340 – Fax 419-483-0006

April 21, 2025

Dear Shareholder,

The board of directors of First Bancshares, Inc. have declared a first-quarter dividend in the amount of thirty-three cents ($0.33) per share which is equal 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, we have noted the bank’s net income for the first quarter 2025, which decreased by $74k compared to the same period in 2024. Interest income declined by $109k quarter over quarter, as loan balances declined by $7MM, slightly offset by a 4bps rate improvement in the portfolio. Total deposits increased by $17.3MM, while total borrowings were down by $19.6MM, resulting in a $228k net improvement to the bank’s funding costs. The resulting net interest income improved by $137k for the quarter.

The net interest Income for the quarter was more than offset by certain non-interest Income and expenses. Loan fee income was down slightly with lower production and balances. NSF checking fees, Visa interchange income and retirement funding earnings were down quarter over quarter as well. Data processing costs, outside loan servicing and certain other tax and accruals contributed to the earnings offset for the quarter.

The overall demand for business and consumer loans has softened, largely due to the uncertainty and concerns relating to global trade war developments. While interest rates, inflation and unemployment remain stable year over year, consumer sentiment and spending trends have fallen in 2025, which represent a significant portion of the U.S. economy. We continue to monitor this closely through our customer-facing business units, including commercial and residential lending groups and branch consumer lending.

Our loan portfolio continues to perform relatively well during these slower growth times. We have experienced some softening in select consumer-related commercial segments, but our sound underwriting practices and attention to appropriate risk management help mitigate potential concerns of credit quality weakness. Our team will continue to focus on serving the needs of our loyal customers and increase our efforts to attract new clients to FNB, so to best position us for future growth opportunities.

As we look ahead, we will continue to assess the economic impacts of tariffs and trade war concerns, working closely with our valued customers and stakeholders. We remain optimistic about 2025 and the possibility of a more favorable banking regulatory environment within which to operate. This will further enable us to concentrate our efforts and resources on our customers and the communities we serve. We hope your year is starting well and we wish you great success in 2025. On behalf of the board and staff, we thank you for your support and look forward to good things ahead.

Sincerely,

James V. Stouffer Jr. Chairman

Jeffrey S. Bechtel-President & CEO