10-Q

U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

x QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: September 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 33-94288

THE FIRST BANCSHARES, INC.

(EXACT NAME OF ISSUER AS SPECIFIED IN ITS CHARTER)

MISSISSIPPI	64-0862173
(STATE OF INCORPORATION)	(I.R.S. EMPLOYER IDENTIFICATION NO.)

6480 U.S. HIGHWAY 98 WEST
HATTIESBURG, MISSISSIPPI	39402
(ADDRESS OF PRINCIPAL	(ZIP CODE)
EXECUTIVE OFFICES)

(601) 268-8998

(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

NONE

(FORMER NAME, ADDRESS AND FISCAL YEAR, IF CHANGED SINCE LAST REPORT)

INDICATE BY CHECK MARK WHETHER THE ISSUER: (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.

YES x NO  ¨

INDIATE BY CHECK MARK WHETHER THE REGISTRANT HAS SUBMITTED ELECTRONICALLY AND POSTED ON ITS CORPORATE WEB SITE, IF ANY, EVERY INTERACTIVE DATA FILE REQUIRED TO BE SUBMITTED AND POSTED PURSUANT TO RULE 405 OF REGULATION S-T (§232.405 OF THIS CHAPTER) DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT HE REGISTRANT WAS REQUIRED TO SUBMIT AND POST SUCH FILES).

YES x NO   ¨

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A LARGE ACCELERATED FILER, AN ACCELERATED FILER, A NON-ACCELERATED FILER, OR A SMALLER REPORTING COMPANY. SEE THE DEFINITIONS OF “LARGE ACCELERATED FILER,” “ACCELERATED FILER,” “NON-ACCELERATED FILER” AND “SMALLER REPORTING COMPANY” IN RULE 12B-2 OF THE EXCHANGE ACT.

LARGE ACCELERATED FILER	¨	ACCELERATED FILER	¨
NON-ACCELERATED FILER	x	SMALLER REPORTING COMPANY	¨

ON SEPTEMBER 30, 2013, 5,107,131 SHARES OF THE ISSUER'S COMMON STOCK, PAR VALUE $1.00 PER SHARE WERE ISSUED AND OUTSTANDING.

TRANSITIONAL DISCLOSURE FORMAT (CHECK ONE):

YES     ¨  NO   x

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A SHELL COMPANY (AS DEFINED IN RULE 12B-2 OF THE EXCHANGE ACT):       YES  ¨  NO x

 

PART I - FINANCIAL INFORMATION

ITEM NO. 1. FINANCIAL STATEMENTS

THE FIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

($ amounts in thousands)

	(Unaudited)
	September 30,		December 31,
	2013		2012
ASSETS
Cash and due from banks	$	26,110	$	20,225
Interest-bearing deposits with banks		24,326		9,588
Federal funds sold		1,328		1,064
Total cash and cash equivalents		51,764		30,877
Securities held-to-maturity, at amortized cost		8,446		8,470
Securities available-for-sale, at fair value		251,813		214,393
Other securities		4,624		3,438
Total securities		264,883		226,301
Loans held for sale		1,399		5,586
Loans		571,114		408,112
Allowance for loan losses		(5,672)		(4,727)
Loans, net		566,841		408,971
Premises and equipment		32,551		22,243
Interest receivable		3,377		2,887
Cash surrender value of life insurance		6,548		6,441
Goodwill		10,621		9,362
Other assets		10,018		7,522
Other real estate owned		5,292		6,782
TOTAL ASSETS	$	951,895	$	721,386
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	169,001	$	109,625
Interest-bearing		644,964		487,002
TOTAL DEPOSITS		813,965		596,627
Interest payable		413		212
Borrowed funds		30,000		36,771
Subordinated debentures		10,310		10,310
Other liabilities		13,447		11,580
TOTAL LIABILITIES		868,135		655,500
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, $1,000 per
share liquidation, 10,000,000 shares
authorized; 17,123 issued and outstanding
at September 30, 2013 and December 31,
2012, respectively		17,082		17,021
Common stock, par value $1 per share,
10,000,000 shares authorized; 5,133,625
shares issued at September 30, 2013 and
3,133,596 at December 31, 2012,
respectively		5,134		3,134
Additional paid-in capital		41,994		23,711
Retained earnings		21,305		19,951
Accumulated other comprehensive income (loss)		(1,291)		2,533
Treasury stock, at cost, 26,494 shares at
September 30, 2013 and at December 31, 2012		(464)		(464)
TOTAL STOCKHOLDERS’ EQUITY		83,760		65,886
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	951,895	$	721,386

2

 

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

($ amounts in thousands, except earnings and dividends per share)

	(Unaudited)				(Unaudited)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
INTEREST INCOME:
Interest and fees on loans	$	7,216	$	5,204	$	18,765	$	16,011
Interest and dividends on securities:
Taxable interest and dividends		841		731		2,484		2,154
Tax exempt interest		555		513		1,588		1,527
Interest on federal funds sold		36		11		70		42
TOTAL INTEREST INCOME		8,648		6,459		22,907		19,734
INTEREST EXPENSE:
Interest on deposits		540		714		1,824		2,440
Interest on borrowed funds		150		314		448		870
TOTAL INTEREST EXPENSE		690		1,028		2,272		3,310
NET INTEREST INCOME		7,958		5,431		20,635		16,424
PROVISION FOR LOAN LOSSES		360		371		1,020		744
NET INTEREST INCOME AFTER     PROVISION FOR LOAN LOSSES		7,598		5,060		19,615		15,680
OTHER INCOME:
Service charges on deposit accounts		1,077		853		2,931		2,580
Other service charges and fees		515		665		2,481		1,923
TOTAL OTHER INCOME		1,592		1,518		5,412		4,503
OTHER EXPENSES:
Salaries and employee benefits		4,010		3,075		10,922		9,009
Occupancy and equipment		802		493		2,862		2,402
Other		2,818		1,869		7,070		4,962
TOTAL OTHER EXPENSES		7,630		5,437		20,854		16,373
INCOME BEFORE INCOME TAXES		1,560		1,141		4,173		3,810
INCOME TAXES		456		269		1,032		930
NET INCOME		1,104		872		3,141		2,880
PREFERRED STOCK ACCRETION AND DIVIDENDS		106		106		318		318
NET INCOME APPLICABLE TO     COMMON STOCKHOLDERS	$	998	$	766	$	2,823	$	2,562
NET INCOME APPLICABLE TO COMMON     STOCKHOLDERS:
BASIC	$	.20	$	.25	$	.70	$	.83
DILUTED		.19		.24		.69		.82
DIVIDENDS PER SHARE – COMMON		.0375		.0375		.1125		.1125

3

 

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

($ amounts in thousands)

	(Unaudited)				(Unaudited)
	Three Months Ended				Nine Months Ended
	September,				September 30,
	2013		2012		2013		2012
Net income per consolidated
statements of income	$	1,104	$	872	$	3,141	$	2,880
Other comprehensive income:
Unrealized holding gains (losses)
arising during the period on
available-for-sale securities		226		1,989		(5,844)		3,712
Unrealized holding gains (losses)
on loans held for sale		153		36		50		73
Income tax benefit (expense)		(129)		(688)		1,970		(1,287)
Other Comprehensive Income (Loss)		250		1,337		(3,824)		2,498
Comprehensive Income (Loss)	$	1,354	$	2,209	$	(683)	$	5,378

4

 

THE FIRST BANCSHARES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited)

($ in thousands)

	Common Stock		Preferred Stock		Stock Warrants		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income(Loss)		Treasury Stock		Total
Balance, January 1, 2012	$	3,093	$	16,939	$	284	$	23,220	$	16,791	$	562	$	(464)	$	60,425
Net income		-		-		-		-		2,880		-		-		2,880
Other comprehensive    income		-		-		-		-		-		2,498		-		2,498
Accretion and dividends    on preferred stock		-		61		-		-		(318)		-		-		(257)
Dividends on common    stock, $0.1125 per share		-		-		-		-		(348)		-		-		(348)
Restricted stock grant		42		-		-		(42)		-		-		-		-
Compensation expense		-		-		-		174		-		-		-		174
Balance, Sept. 30, 2012	$	3,135	$	17,000	$	284	$	23,352	$	19,005	$	3,060	$	(464)	$	65,372
Balance, January 1, 2013	$	3,134	$	17,021	$	284	$	23,427	$	19,951	$	2,533	$	(464)	$	65,886
Net income		-		-		-		-		3,141		-		-		3,141
Other comprehensive loss		-		-		-		-		-		(3,824)		-		(3,824)
Accretion and dividends on    preferred stock		-		61		-		-		(318)		-		-		(257)
Dividends on common stock,    $0.1125 per share		-		-		-		-		(427)		-		-		(427)
Issuance of 1,951,220 common    shares		1,951		-		-		18,049		(1,042)		-		-		18,958
Restricted stock grant		49		-		-		(49)		-		-		-		-
Compensation expense		-		-		-		283		-		-		-		283
Balance, Sept. 30, 2013	$	5,134	$	17,082	$	284	$	41,710	$	21,305	$	(1,291)	$	(464)	$	83,760

5

 

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ Amounts in Thousands)

	(Unaudited)
	Nine Months Ended
	September 30,
	2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$	3,141	$	2,880
Adjustments to reconcile net income to net cash provided by      operating activities:
Depreciation, amortization and accretion		1,316		1,894
Provision for loan losses		1,020		744
Loss on sale/writedown of ORE		280		396
Restricted stock expense		283		174
Increase in cash value of life insurance		(107)		(130)
Federal Home Loan Bank stock dividends		(5)		(3)
Changes in:
Interest receivable		(140)		(282)
Loans held for sale, net		4,962		(1,914)
Interest payable		(140)		(81)
Other, net		5,670		3,287
NET CASH PROVIDED BY OPERATING ACTIVITIES		16,280		6,965
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received in excess of cash paid for acquisition		43,150		-
Maturities and calls of securities available-for-sale		44,637		40,136
Purchases of securities available-for-sale and held-to-maturity		(83,416)		(60,762)
Net redemptions (purchases) of other securities		(1,084)		11
Net increase in loans		(41,390)		(10,020)
Net additions in premises and equipment		(658)		(428)
NET CASH USED IN INVESTING ACTIVITIES		(38,761)		(31,063)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits		31,851		48,477
Net decrease in borrowed funds		(6,771)		(10,251)
Dividends paid on common stock		(413)		(340)
Dividends paid on preferred stock		(257)		(257)
Issuance of 1,951,220 common shares, net		18,958		-
NET CASH PROVIDED BY FINANCING ACTIVITIES		43,368		37,629
NET INCREASE IN CASH		20,887		13,531
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		30,877		23,181
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	51,764	$	36,712
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST		2,071		3,391
CASH PAYMENTS FOR INCOME TAXES		980		967
LOANS TRANSFERRED TO OTHER REAL ESTATE		1,875		6,353
ISSUANCE OF RESTRICTED STOCK GRANTS		49		42

6

 

THE FIRST BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE A — BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2012.

NOTE B — SUMMARY OF ORGANIZATION

The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First, A National Banking Association (the “Bank”).

At September 30, 2013, the Company had approximately $951.9 million in assets, $566.8 million in net loans, $814.0 million in deposits, and $83.8 million in stockholders' equity. For the nine months ended September 30, 2013, the Company reported net income of $3.1 million ($2.8 million applicable to common stockholders).

In the first, second, and third quarters of 2013, the Company declared and paid a dividend of $.0375 per common share.

NOTE C – BUSINESS COMBINATION

The Company entered into an Acquisition Agreement dated January 31, 2013, as amended (the “Agreement”) with First Baldwin Bancshares, Inc., an Alabama corporation (“Baldwin”). The Agreement provided that, based upon the terms and subject to the conditions set forth in the Agreement, the Company would acquire all of the outstanding shares (the “Acquisition”) of Baldwin’s wholly-owned subsidiary, First National Bank of Baldwin County, A National Banking Association (“FNB”). Subject to the terms and conditions of the Agreement, as amended, which was approved by both the Company’s Board of Directors and the Board of Directors of Baldwin, on February 21, 2013, Baldwin filed a voluntary bankruptcy petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Alabama (“Bankruptcy Court”) and sought Bankruptcy Court approval of the Agreement and the Acquisition through a Chapter 11 plan. Upon approval by the Bankruptcy Court and consummation of the Acquisition, all outstanding FNB common stock would be sold to the Company for cash consideration of $3,300,000 (the “Purchase Price”). Each outstanding share of FNB common stock will remain outstanding and be unaffected by the Acquisition.

7

The Company has recently completed its Acquisition of FNB. On April 23, 2013, the Bankruptcy Court confirmed the Chapter 11 Plan of Reorganization for Baldwin pursuant to which Baldwin had agreed to sell all of the outstanding voting stock of its subsidiary, FNB, under the Agreement. The Bankruptcy Court’s approval received was the last required regulatory approval regarding the Acquisition. Previously, both the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency had granted the requisite approvals for the Acquisition by the Company of all of the outstanding voting stock of FNB on March 28, 2013, and April 4, 2013, respectively. The Acquisition closed and was completed on April 30, 2013. There was no vote required of shareholders of FNB to approve the Acquisition.

No further additional action or regulatory approval is required with respect to the Acquisition. As of the closing on April 30, 2013, FNB became a wholly-owned subsidiary of the Company and subsequently was merged with and into the Company’s bank subsidiary, The First, A National Banking Association.

In connection with the acquisition, the Company recorded $1.3 million of goodwill and $.7 million of core deposit intangible. The core deposit will be expensed over 10 years.

The Company acquired the $124.2 million loan portfolio at a fair value discount of $.5 million. The discount represents expected credit losses, adjustments to market interest rates and liquidity adjustments.

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	3,300
Total purchase price		3,300
Identifiable assets:
Cash and due from banks		46,450
Investments		2,508
Loans and leases		124,165
Other Real Estate		87
Core deposit intangible		680
Personal and real property		10,655
Deferred tax asset		2,969
Other assets		1,034
Total assets		188,548
Liabilities and equity:
Deposits		185,771
Other liabilities		736
Total liabilities		186,507
Net assets acquired		2,041
Goodwill resulting from acquisition	$	1,259

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2013, are as follows (dollars in thousands):

Outstanding principal balance	$	117,567
Carrying amount	$	117,369

8

All loans obtained in the acquisition reflect no specific evidence of credit deterioration and very low probability that the Company would be unable to collect all contractually required principal and interest payments.

The amount of the revenue and earnings included in the Company’s consolidated income statement for the nine months ended September 30, 2013, reflect only amounts from the acquisition date of April 30, 2013, through the quarter end September 30, 2013. Historical financial information related to each loan and deposit acquired was impractical to determine due to retrospective application requiring significant estimates of amounts that cannot be independently substantiated. Further, we believe it is impossible to distinguish objectively information about those estimates that provides evidence of circumstances that existed on the dates at which those amounts would be recognized and measured under retrospective application.

Expenses associated with the acquisition were $447,000 and $1,408,000 for the three and nine month periods ended September 30, 2013, respectively. These costs included system conversion and integrating operations charges as well as legal and consulting expenses, which have been expensed as incurred.

NOTE D – PREFERRED STOCK AND WARRANT

On February 6, 2009, as part of the U.S. Department of Treasury’s (“Treasury”) Capital Purchase Program (“CPP”), the Company received a $5.0 million equity investment by issuing 5 thousand shares of Series A, no par value preferred stock to the Treasury pursuant to a Letter Agreement and Securities Purchase Agreement that was previously disclosed by the Company. The Company also issued a warrant to the Treasury allowing it to purchase 54,705 shares of the Company’s common stock at an exercise price of $13.71. The warrant can be exercised immediately and has a term of 10 years.

The Company allocated the proceeds received from the Treasury, net of transaction costs, on a pro rata basis to the Series A preferred stock and the warrant based on their relative fair values. The Company assigned $.3 million and $4.7 million to the warrant and the Series A preferred stock, respectively. The resulting discount on the Series A preferred stock is being accreted up to the $5.0 million liquidation amount at the time of the exchange that is described in the following paragraphs.

On September 29, 2010, and pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company closed a transaction whereby Treasury exchanged its 5,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST, (the “CPP Preferred Shares”) for 5,000 shares of a new series of preferred stock designated Fixed Rate Cumulative Perpetual Preferred Stock, Series CD (the “CDCI Preferred Shares”). On the same day, and pursuant to the terms of the letter agreement between the Company and Treasury, the Company issued an additional 12,123 CDCI Preferred Shares to Treasury for a purchase price of $12,123,000. As a result of the CDCI Transactions, the Company is no longer participating in the TARP Capital Purchase Program being administered by Treasury and is now participating in Treasury’s TARP Community Development Capital Initiative (the “CDCI”). The terms of the CDCI Transactions are more fully set forth in the Exchange Letter Agreement and the Purchase Letter Agreement.

The Letter Agreement, pursuant to which the Preferred Shares were exchanged, contains limitations on the payment of dividends on the common stock to no more than 100% of the aggregate per share dividend and distributions for the immediate prior fiscal year (dividends of $0.15 per share were declared and paid in 2010, 2011, and 2012) and on the Company’s ability to repurchase its common stock, and continues to subject the Company to certain of the executive compensation limitations included in the Emergency Economic Stabilization Act of 2008 (EESA), as previously disclosed by the Company.

9

The most significant difference in terms between the CDCI Preferred Shares and the CPP Preferred Shares is the dividend rate applicable to each. The CPP Preferred Shares entitled the holder to an annual dividend of 5% increasing to 9% after 5 years of the liquidation value of the shares, payable quarterly in arrears; by contrast, the CDCI Preferred Shares entitle the holder to an annual dividend of 2% for 8 years of the liquidation value of the shares, payable quarterly in arrears. Other differences in terms between the CDCI Preferred Shares and the CPP Preferred Shares, including, without limitation, the restrictions on common stock dividends and on redemption of common stock and other securities exist. The terms of the CDCI Preferred Shares are more fully set forth in the Articles of Amendment creating the CDCI Preferred Shares, which Articles of Amendment were filed with the Mississippi Secretary of State on September 27, 2010.

As a condition to participate in the CDCI, the Company was required to obtain certification as a Community Development Financial Institution (a “CDFI”) from the Treasury’s Community Development Financial Fund. On September 28, 2010, the Company was notified that its application for CDFI certification had been approved. In order to become certified and maintain its certification as a CDFI, the Company is required to meet the CDFI eligibility requirements set forth in 12 C.F.R. 1805.201(b).

On March 22, 2013, the Company raised $20,000,005 in a private placement of 1,951,220 shares of newly authorized Series D Nonvoting Convertible Preferred Stock (“Convertible Preferred Stock”) at a purchase price of $10.25 per share. The terms of the Convertible Preferred Stock provided for mandatory conversion into the Company’s common stock upon approval, which occurred at the annual meeting, May 23, 2013. The Company paid $921,487.43 in fees to its financial advisors who acted as placement agents in the private placement.

The Company intends to use the net proceeds from the private placement to increase its equity capital and for general corporate purposes, which includes, among other things, support for organic and acquisition-based growth. The private placement was exempt from Securities and Exchange Commission registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated thereunder.

Upon conversion of the Convertible Preferred Stock, the Company issued 1,951,220 shares of common stock. On September 30, 2013, the Company had 5,107,131 shares of common stock outstanding, excluding treasury shares.

NOTE E — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as stock options. 

		For the Three Months Ended
		September 30, 2013
		Net Income	Shares		Per
		(Numerator)	(Denominator)		Share Data
Basic per share	$	998,000	5,102,572	$	.20
Effect of dilutive shares:
Restricted stock grants			47,945
Diluted per share	$	998,000	5,150,517	$	.19

10

	For the Nine Months Ended
	September 30, 2013
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,823,000		4,058,432	$	.70
Effect of dilutive shares:
Restricted stock grants				47,945
Diluted per share	$	2,823,000		4,106,377	$	.69

	For the Three Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

The Company granted 35,133 shares of restricted stock in the first quarter of 2013, 15,500 shares of restricted stock in the third quarter of 2013 and 42,795 shares of restricted stock in the first quarter of 2012.

NOTE F — FAIR VALUE OF ASSETS AND LIABILITIES

The Company groups its financial assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1: Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities

11

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets.

Available-for-Sale Securities

The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Level 2 securities include U.S. Treasury securities, obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, mortgage-backed securities and collateralized mortgage obligations. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of September 30, 2013 and December 31, 2012 (in thousands):

September 30, 2013

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	32,527	$	-	$	32,527	$	-
Municipal securities		110,367		-		110,367		-
Mortgage-backed securities		81,032		-		81,032		-
Corporate obligations		26,918		-		24,135		2,783
Other		969		969		-		-
Total	$	251,813	$	969	$	248,061	$	2,783

12

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	36,359	$	-	$	36,359	$	-
Municipal securities		98,910		-		98,910		-
Mortgage-backed securities		61,967		-		61,967		-
Corporate obligations		16,187		-		13,519		2,668
Other		970		970		-		-
Total	$	214,393	$	970	$	210,755	$	2,668

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)

	Bank-Issued Trust Preferred Securities
	2013		2012
Balance, January 1	$	2,668	$	2,252
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		-
Unrealized gain included in comprehensive income		115		416
Balance at Sept. 30, 2013 and December 31, 2012	$	2,783	$	2,668

Following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Impaired Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is determined not to be collateral dependent, then the discounted cash flow method is used. This method requires the impaired loan to be recorded at the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate of a loan is the contractual interest rate adjusted for any net deferred loan fees or costs, or premium or discount existing at origination or acquisition of the loan. Impaired loans are classified within Level 2 of the fair value hierarchy.

13

Other Real Estate Owned

Other real estate owned acquired through loan foreclosure is initially recorded at fair value less estimated costs to sell, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Operating costs associated with the assets are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other non-interest expense. Other real estate owned measured at fair value on a non-recurring basis at September 30, 2013, amounted to $5.3 million. Other real estate owned is classified within Level 2 of the fair value hierarchy.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2013 and December 31, 2012.

($ in thousands)

September 30, 2013

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	4,351	$	-	$	4,351	$	-
Other real estate owned		5,292		-		5,292		-

14

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	3,589	$	-	$	3,589	$	-
Other real estate owned		6,782		-		6,782		-

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash and Cash Equivalents – For such short-term instruments, the carrying amount is a reasonable estimate of fair value.

Investment in securities available-for-sale and held-to-maturity – The fair value measurement for securities available-for-sale was discussed earlier. The same measurement approach was used for securities held-to-maturity.

Loans – The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits – The fair values of demand deposits are, as required by ASC Topic 825, equal to the carrying value of such deposits. Demand deposits include noninterest-bearing demand deposits, savings accounts, NOW accounts, and money market demand accounts. The fair value of variable rate term deposits, those repricing within six months or less, approximates the carrying value of these deposits. Discounted cash flows have been used to value fixed rate term deposits and variable rate term deposits repricing after six months. The discount rate used is based on interest rates currently being offered on comparable deposits as to amount and term.

Short-Term Borrowings – The carrying value of any federal funds purchased and other short-term borrowings approximates their fair values.

FHLB and Other Borrowings – The fair value of the fixed rate borrowings are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount of any variable rate borrowing approximates its fair value.

Subordinated Debentures – The subordinated debentures bear interest at a variable rate and the carrying value approximates the fair value.

Off-Balance Sheet Instruments – Fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value until such commitments are funded or closed. Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned.

15

	As of September 30, 2013				As of December 31, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	51,764	$	51,764	$	30,877	$	30,877
Securities available-for-sale		251,813		251,813		214,393		214,393
Securities held-to-maturity		8,446		9,441		8,470		7,055
Other securities		4,624		4,624		3,438		3,438
Loans, net		566,841		580,204		408,971		422,029
Liabilities:
Noninterest-bearing Deposits	$	169,001	$	169,001	$	109,625	$	109,625
Interest-bearing deposits		644,964		644,511		487,002		487,599
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		30,000		30,000		36,771		36,771

NOTE G — LOANS

Loans typically provide higher yields than the other types of earning assets, and, thus, one of the Company's goals is for loans to be the largest category of the Company's earning assets. At September 30, 2013 and December 31, 2012, loans accounted for 66.3% and 63.6% of earning assets, respectively. The Company controls and mitigates the inherent credit and liquidity risks through the composition of its loan portfolio.

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	September 30, 2013				December 31, 2012
	Amount		Percent of Total		Amount		Percent of Total
	(Dollars in thousands)
Mortgage loans held for sale	$	1,399	.2	%	$	5,586	1.4	%
Commercial, financial and agricultural		79,094	13.8			53,234	12.9
Real Estate:
Mortgage-commercial		198,123	34.6			142,046	34.3
Mortgage-residential		211,494	36.9			140,703	34.0
Construction		66,745	11.7			57,529	13.9
Consumer and other		15,658	2.8			14,600	3.5
Total loans		572,513	100	%		413,698	100	%
Allowance for loan losses		(5,672)				(4,727)
Net loans	$	566,841			$	408,971

In the context of this discussion, a "real estate mortgage loan" is defined as any loan, other than a loan for construction purposes, secured by real estate, regardless of the purpose of the loan. The Company follows the common practice of financial institutions in the Company’s market area of obtaining a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate loan portfolio component. Generally, the Company limits its loan-to-value ratio to 80%. Management attempts to maintain a conservative philosophy regarding its underwriting guidelines and believes it will reduce the risk elements of its loan portfolio through strategies that diversify the lending mix.

16

Loans held for sale consists of mortgage loans originated by the Bank and sold into the secondary market. Commitments from investors to purchase the loans are obtained upon origination.

Activity in the allowance for loan losses for the period is as follows:

(In thousands)

	Three Months		Nine Months
	Ended		Ended
	Sept. 30, 2013		Sept. 30, 2013
Balance at beginning of period	$	5,393	$	4,727
Loans charged-off:
Real Estate		(50)		(356)
Installment and Other		(41)		(171)
Commercial, Financial and Agriculture		(35)		(105)
Total		(126)		(632)
Recoveries on loans previously charged-off:
Real Estate		27		492
Installment and Other		12		51
Commercial, Financial and Agriculture		6		14
Total		45		557
Net charge-offs		(81)		(75)
Provision for Loan Losses		360		1,020
Balance at end of period	$	5,672	$	5,672

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at September 30, 2013 and December 31, 2012.

17

Allocation of the Allowance for Loan Losses

	September 30, 2013
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	504	13.7	%
Commercial Real Estate		3,339	57.5
Consumer Real Estate		1,238	25.3
Consumer		198	3.5
Unallocated		393	-
Total	$	5,672	100	%

	December 31, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	420	13.3	%
Commercial Real Estate		3,338	63.7
Consumer Real Estate		810	19.0
Consumer		151	4.0
Unallocated		8	-
Total	$	4,727	100	%

The following table represents the Company’s impaired loans at September 30, 2013, and December 31, 2012.

	Sept. 30,		December 31,
	2013		2012
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,850	$	1,445
Impaired loans with a valuation allowance		2,501		2,144
Total impaired loans	$	4,351	$	3,589
Allowance for loan losses on impaired loans at period end		748		936
Total nonaccrual loans		2,681		3,401
Past due 90 days or more and still accruing		471		158
Average investment in impaired loans		3,554		2,979

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months Ended Sept. 30, 2013		Nine Months Ended Sept. 30, 2013
Average of individually impaired loans during period	$	3,554	$	3,554
Interest income recognized during Impairment		43		98
Cash-basis interest income recognized		42		110

18

The gross interest income that would have been recorded in the period that ended if the nonaccrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the three and nine months ended September 30, 2013, was $40,500 and $131,400, respectively. The Company had no loan commitments to borrowers in non-accrual status at September 30, 2013 and 2012.

The following tables provide the ending balances in the Company's loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of September 30, 2013 and December 31, 2012. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

September 30, 2013

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,218	$	41	$	92	$	4,351
Collectively evaluated		468,851		19,698		78,214		566,763
Total	$	473,069	$	19,739	$	78,306	$	571,114
Allowance for Loan Losses
Individually evaluated	$	680	$	36	$	32	$	748
Collectively evaluated		3,897		555		472		4,924
Total	$	4,577	$	591	$	504	$	5,672

December 31, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,111	$	55	$	221	$	4,387
Collectively evaluated		333,299		16,401		54,025		403,725
Total	$	337,410	$	16,456	$	54,246	$	408,112
Allowance for Loan Losses
Individually evaluated	$	917	$	110	$	76	$	1,103
Collectively evaluated		3,231		49		344		3,624
Total	$	4,148	$	159	$	420	$	4,727

19

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2013 and December 31, 2012. The recorded investment included in the following table represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at September 30, 2013, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

September 30, 2013

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	4	$	4	$	-	$	50	$	-
Commercial real estate		1,715		1,773		-		1,129		56
Consumer real estate		126		126		-		145		2
Consumer installment		5		5		-		5		-
Total	$	1,850	$	1,908	$	-	$	1,329	$	58
Impaired loans with a related allowance:
Commercial installment	$	87	$	87	$	32	$	60	$	5
Commercial real estate		1,610		1,680		391		1,308		33
Consumer real estate		768		768		289		820		12
Consumer installment		36		36		36		37		2
Total	$	2,501	$	2,571	$	748	$	2,225	$	52
Total Impaired Loans:
Commercial installment	$	91	$	91	$	32	$	110	$	5
Commercial real estate		3,325		3,453		391		2,437		89
Consumer real estate		894		894		289		965		14
Consumer installment		41		41		36		42		2
Total Impaired Loans	$	4,351	$	4,479	$	748	$	3,554	$	110

20

December 31, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	15	$	15	$	-	$	46	$	-
Commercial real estate		1,013		1,529		-		1,004		39
Consumer real estate		106		969		-		168		8
Consumer installment		311		311		-		156		1
Total	$	1,445	$	2,824	$	-	$	1,374	$	48
Impaired loans with a related allowance:
Commercial installment	$	203	$	203	$	73	$	173	$	8
Commercial real estate		1,549		1,549		747		1,546		38
Consumer real estate		44		44		44		72		4
Consumer installment		348		348		72		197		2
Total	$	2,144	$	2,144	$	936	$	1,988	$	52
Total Impaired Loans:
Commercial installment	$	218	$	218	$	73	$	219	$	8
Commercial real estate		2,562		3,078		747		2,550		77
Consumer real estate		150		1,013		44		240		12
Consumer installment		659		659		72		353		3
Total Impaired Loans	$	3,589	$	4,968	$	936	$	3,362	$	100

The following tables provide additional detail of troubled debt restructurings at September 30, 2013.

For the Three Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		858		858		3		24
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	858	$	858		3	$	24

21

For the Nine Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment			Interest
	Investment		Post-		Number of	Income
	Pre-Modification		Modification		Loans	Recognized
Commercial installment	$	-	$	-	-	$	-
Commercial real estate		858		858	3		41
Consumer real estate		66		66	1		1
Consumer installment		-		-	-		-
Total	$	924	$	924	4	$	42

The recorded investment in receivables for which the allowance for credit losses was previously measured under a general allowance for credit losses methodology and are now impaired under Section 310-10-35 was $1.3 million. The allowance for credit losses associated with those receivables on the basis of a current evaluation of loss was $48,000. All loans were performing as agreed with modified terms.

During the three and nine month periods ending September 30, 2013, there were 3 loans and 4 loans, respectively, modified as TDR, and are considered non-performing.

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	September 30, 2013
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	276	$	-	$	210	$	486	$	66,745
Real Estate-mortgage		1,283		468		1,950		3,701		211,494
Real Estate-non farm non residential		935		-		511		1,446		198,123
Commercial		519		-		10		529		79,094
Consumer		64		3		-		67		15,658
Total	$	3,077	$	471	$	2,681	$	6,229	$	571,114

22

	December 31, 2012
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	990	$	-	$	1,667	$	2,657	$	57,529
Real Estate-mortgage		3,045		147		986		4,178		140,703
Real Estate-non farm non residential		389		-		608		997		142,046
Commercial		88		-		135		223		53,234
Consumer		132		11		5		148		14,600
Total	$	4,644	$	158	$	3,401	$	8,203	$	408,112

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience credit documentation, public information, and current economic trends, among other factors. The Company uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance:

Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

23

($ in thousands)

September 30, 2013

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	310,903	$	143,200	$	19,699	$	76,800	$	550,602
Special Mention		6,338		33		-		1,278		7,649
Substandard		11,634		1,283		40		258		13,215
Doubtful		-		-		-		-		-
Subtotal		328,875		144,516		19,739		78,336		571,466
Less:
Unearned discount		228		94		-		30		352
Loans, net of unearned discount	$	328,647	$	144,422	$	19,739	$	78,306	$	571,114

December 31, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	241,927	$	76,206	$	16,426	$	53,880	$	388,439
Special Mention		5,653		144		17		-		5,814
Substandard		12,606		1,059		15		320		14,000
Doubtful		-		-		-		60		60
Subtotal		260,186		77,409		16,458		54,260		408,313
Less:
Unearned discount		91		94		2		14		201
Loans, net of unearned discount	$	260,095	$	77,315	$	16,456	$	54,246	$	408,112

NOTE H — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

24

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013, follows:

($ in thousands)

	September 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	32,573	$	84	$	130	$	32,527
Tax-exempt and taxable obligations of states and municipal    subdivisions		110,052		1,842		1,527		110,367
Mortgage-backed securities		81,526		871		1,365		81,032
Corporate obligations		28,398		233		1,713		26,918
Other		1,255		-		286		969
Total	$	253,804	$	3,030	$	5,021	$	251,813
Held-to-maturity securities:
Mortgage-backed securities	$	2,446	$	-	$	66	$	2,380
Taxable obligations of states and municipal subdivisions		6,000		1,061		-		7,061
Total	$	8,446	$	1,061	$	66	$	9,441

NOTE I — ALLOWANCE FOR LOAN LOSSES

The Company has developed policies and procedures for evaluating the overall quality of its credit portfolio and the timely identification of potential problem loans. Management’s judgment as to the adequacy of the allowance is based upon a number of assumptions which it believes to be reasonable, but which may not prove to be accurate, particularly given the Company’s growth and the economy. Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required.

The Company’s allowance consists of two parts. The first part is determined in accordance with authoritative guidance regarding contingencies. The Company’s determination of this part of the allowance is based upon quantitative and qualitative factors. A loan loss history based upon the three year quarterly moving average is utilized in determining the appropriate allowance. Historical loss factors are determined by graded and ungraded loans by loan type. These historical loss factors are applied to the loans by loan type to determine an indicated allowance. The loss factors of peer groups are considered in the determination of the allowance and are used to assist in the establishment of a long-term loss history for areas in which this data is unavailable and incorporated into the qualitative factors to be considered. The historical loss factors may also be modified based upon other qualitative factors including but not limited to local and national economic conditions, trends of delinquent loans, changes in lending policies and underwriting standards, concentrations, and management’s knowledge of the loan portfolio. These factors require judgment upon the part of management and are based upon state and national economic reports received from various institutions and agencies including the Federal Reserve Bank, United States Bureau of Economic Analysis, Bureau of Labor Statistics, meetings with the Company’s loan officers and loan committee, and data and guidance received or obtained from the Company’s regulatory authorities.

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The second part of the allowance is determined in accordance with authoritative guidance regarding loan impairment. Impaired loans are determined based upon a review by internal loan review and senior loan officers.

The sum of the two parts constitutes management’s best estimate of an appropriate allowance for loan losses. When the estimated allowance is determined, it is presented to the Company’s audit committee for review and approval on a quarterly basis.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Impairment is measured on a loan by loan basis, and a specific allowance is assigned to each loan determined to be impaired. Impaired loans not deemed collateral dependent are analyzed according to the ultimate repayment source, whether that is cash flow from the borrower, guarantor or some other source of repayment. Impaired loans are deemed collateral dependent if in the Company’s opinion the ultimate source of repayment will be generated from the liquidation of collateral.

The Company discontinues accrual of interest on loans when management believes, after considering economic and business conditions and collection efforts, that a borrower’s financial condition is such that the collection of interest is doubtful. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

NOTE J – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued.

NOTE K – RECLASSIFICATION

Certain amounts in the 2012 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.

ITEM NO. 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL CONDITION

The following discussion contains "forward-looking statements" relating to, without limitation, future economic performance, plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. The words "expect," "estimate," "anticipate," and "believe," as well as similar expressions, are intended to identify forward-looking statements. The Company's actual results may differ materially from the results discussed in the forward-looking statements, and the Company's operating performance each quarter is subject to various risks and uncertainties that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's most recently filed Form 10-K.

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The First represents the primary asset of the Company. The First reported total assets of $950.9 million at September 30, 2013, compared to $720.0 million at December 31, 2012. Loans increased $158.8 million, or 38.4%, during the first nine months of 2013. Deposits at September 30, 2013, totaled $814.0 million compared to $596.7 million at December 31, 2012. For the nine month period ended September 30, 2013, The First reported net income of $4.3 million compared to $3.2 million for the nine months ended September 30, 2012.

NONPERFORMING ASSETS AND RISK ELEMENTS. Diversification within the loan portfolio is an important means of reducing inherent lending risks. At September 30, 2013, The First had no concentrations of ten percent or more of total loans in any single industry or any geographical area outside its immediate market areas.

At September 30, 2013, The First had loans past due as follows:

	($ In Thousands)
Past due 30 through 89 days	$	3,077
Past due 90 days or more and still accruing		471

The accrual of interest is discontinued on loans which become ninety days past due (principal and/or interest), unless the loans are adequately secured and in the process of collection. Nonaccrual loans totaled $2.7 million at September 30, 2013, a decrease of $.7 million from December 31, 2012. Any other real estate owned is carried at fair value, determined by an appraisal, less estimated costs to sell. Other real estate owned totaled $5.3 million at September 30, 2013. A loan is classified as a restructured loan when the following two conditions are present: First, the borrower is experiencing financial difficulty and second, the creditor grants a concession it would not otherwise consider but for the borrower’s financial difficulties. At September 30, 2013, the Bank had $2.5 million in loans that were modified as troubled debt restructurings, of which $1.5 million were performing as agreed with modified terms.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is adequate with cash and cash equivalents of $51.8 million as of September 30, 2013. In addition, loans and investment securities repricing or maturing within one year or less exceeded $208.4 million at September 30, 2013. Approximately $107.5 million in loan commitments could fund within the next six months and other commitments, primarily standby letters of credit, totaled $.6 million at September 30, 2013.

There are no known trends or any known commitments or uncertainties that will result in The First’s liquidity increasing or decreasing in a significant way.

Total consolidated equity capital at September 30, 2013, was $83.8 million, or approximately 8.8% of total assets. The Company currently has adequate capital positions to meet the minimum capital requirements for all regulatory agencies. The Company’s capital ratios as of September 30, 2013, were as follows:

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Tier 1 leverage	8.73	%
Tier 1 risk-based	12.50	%
Total risk-based	13.37	%

On June 30, 2006, The Company issued $4,124,000 of floating rate junior subordinated deferrable interest debentures to The First Bancshares Statutory Trust 2 in which the Company owns all of the common equity. The debentures are the sole asset of the Trust. The Trust issued $4,000,000 of Trust Preferred Securities (TPSs) to investors. The Company’s obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the Trust’s obligations under the preferred securities. The preferred securities are redeemable by the Company at its option. The preferred securities must be redeemed upon maturity of the debentures in 2036. Interest on the preferred securities is the three month London Interbank Offer Rate (LIBOR) plus 1.65% and is payable quarterly. The terms of the subordinated debentures are identical to those of the preferred securities. On July 27, 2007, The Company issued $6,186,000 of floating rate junior subordinated deferrable interest debentures to The First Bancshares Statutory Trust 3 in which the Company owns all of the common equity. The debentures are the sole asset of Trust 3. The Trust issued $6,000,000 of Trust Preferred Securities (TPSs) to investors. The Company’s obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the Trust’s obligations under the preferred securities. The preferred securities are redeemable by the Company in 2013 or later, at its option. The preferred securities must be redeemed upon maturity of the debentures in 2037. Interest on the preferred securities is the three month LIBOR plus 1.40% and is payable quarterly. The terms of the subordinated debentures are identical to those of the preferred securities. In accordance with the authoritative guidance, the trusts are not included in the consolidated financial statements.

RESULTS OF OPERATIONS - QUARTERLY

The Company had a consolidated net income of $1,104,000 for the three months ended September 30, 2013, compared with consolidated net income of $872,000 for the same period last year.

Net interest income increased to $8.0 million from $5.4 million for the three months ended September 30, 2013, or an increase of 46.5% as compared to the same period in 2012. Average earning assets through September 30, 2013, increased $145.5 million, or 22.4% and average interest-bearing liabilities also increased $111.2 million or 19.4% when compared to September 30, 2012.

Noninterest income for the three months ended September 30, 2013, was $1,592,000 compared to $1,518,000 for the same period in 2012, reflecting an increase of $74,000 or 4.9%. An increase in fee income associated with higher loan and deposit volumes attributed to this increase.

The provision for loan losses was $360,000 for the three months ended September 30, 2013, compared with $371,000 for the same period in 2012. The allowance for loan losses of $5.7 million at September 30, 2013 (approximately .99% of total loans and 1.26% of loans excluding those booked at fair value due to the business combination) is considered by management to be adequate to cover losses inherent in the loan portfolio. The level of this allowance is dependent upon a number of factors, including the total amount of past due loans, general economic conditions, and management’s assessment of potential losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant change. Ultimately, losses may vary from current estimates and future additions to the allowance may be necessary.

Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required. Management evaluates the adequacy of the allowance for loan losses quarterly and makes provisions for loan losses based on this evaluation.

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Noninterest expense increased by $2,193,000 or 40.3% for the three months ended September 30, 2013, when compared with the same period in 2012. This increase is primarily related to increases in operating costs as well as acquisition costs associated with the acquisition of First National Bank of Baldwin County. One-time acquisition costs expensed during the third quarter of 2013 amounted to $447,000.

RESULTS OF OPERATIONS – YEAR TO DATE

The Company had a consolidated net income of $3,141,000 for the nine months ended September 30, 2013, compared with consolidated net income of $2,880,000 for the same period last year.

Net interest income increased to $20.6 million from $16.4 million for the nine months ended September 30, 2013, or an increase of 25.6% as compared to the same period in 2012. This increase was primarily a result of increased loan volume in existing markets as well as loan growth associated with the acquisition of First national Bank of Baldwin County.

Noninterest income for the nine months ended September 30, 2013, was $5,412,000 compared to $4,503,000 for the same period in 2012, reflecting an increase of $909,000 or 20.2%. Included in noninterest income is service charges on deposit accounts, which for the nine months ended September 30, 2013, totaled $2,931,000 compared to $2,580,000 for the same period in 2012. An increase in fee income associated with higher loan and deposit volumes attributed to this income.

The provision for loan losses was $1,020,000 for the nine months ended September 30, 2013, compared with $744,000 for the same period in 2012. The allowance for loan losses of $5.7 million at September 30, 2013 (approximately .99% of total loans and 1.26% of loans excluding those booked at fair value due to the business combination) is considered by management to be adequate to cover losses inherent in the loan portfolio. The level of this allowance is dependent upon a number of factors, including the total amount of past due loans, general economic conditions, and management’s assessment of potential losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant change. Ultimately, losses may vary from current estimates and future additions to the allowance may be necessary.

Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required. Management evaluates the adequacy of the allowance for loan losses quarterly and makes provisions for loan losses based on this evaluation.

Noninterest expense increased by $4.5 million or 27.4% for the nine months ended September 30, 2013, when compared with the same period in 2012. This increase is primarily related to increases in operating costs associated with the acquisition of First National Bank of Baldwin County as well as an increase in salaries and employee benefits associated with the start of our Private Banking Division.

ITEM NO. 3. CONTROLS AND PROCEDURES

As of September 30, 2013, (the “Evaluation Date”), we carried out an evaluation, under the supervision of and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

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There have been no changes, significant or otherwise, in our internal controls over financial reporting that occurred during the quarter ended September 30, 2013, that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

ITEM NO. 4. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet Disclosures about Offsetting Assets and Liabilities.” The ASU amends ASC Topic 210 by requiring additional improved information to be disclosed regarding financial instruments and derivative instruments that are offset in accordance with the conditions under ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The amendment is effective for annual and interim reporting periods beginning on or after January 1, 2013. The disclosures required by the amendments should be applied retrospectively for all comparative periods presented. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. Only derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the Codification or subject to a master netting arrangement or similar agreement are applicable. The Company does not believe the amendments will have a material impact on the financial statements.

In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. These amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U. S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U. S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U. S. GAAP that provide additional details about these amounts. ASU 2013-02 is effective for interim and annual periods beginning after December 15, 2012. The Company adopted this standard on January 1, 2013. The effect of adopting this standard increased the disclosures surrounding reclassification items, if any, out of accumulated other comprehensive income.

In February 2013, the FASB issued ASU No. 2013-04, “Liabilities – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.” The ASU requires entities to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. The measurement is the sum of both the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. ASU 2013-04 is effective for interim and annual periods beginning on or after December 15, 2013. The ASU should be applied retrospectively to obligations existing at the beginning of an entity’s fiscal year of adoption. Early adoption is permitted. The Company is currently evaluating the possible effects of this guidance on its financial statement disclosures.

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In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes – Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU requires an entity to present a unrecognized tax benefit, or a portion thereof, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward, except when the entity does not intend to use the deferred tax asset, or the item is not available as of the reporting date. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Company is currently evaluating the possible effects of this guidance on its financial statements.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

There are no material changes in the Company’s risk factors since December 31, 2012. Please refer to the Annual Report on Form 10-K of The First Bancshares, Inc., filed with the Securities and Exchange Commission on March 28, 2013.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITY AND USE OF PROCEEDS

On March 20, 2013, The First Bancshares, Inc., a Mississippi corporation (the "Company") entered into Securities Purchase Agreements with a limited number of institutional and other accredited investors, including certain directors and executive officers of the Company (collectively, the "Purchasers') to sell a total of 1,951,220 shares of mandatorily convertible non-cumulative, non-voting, perpetual Preferred Stock, Series D, $1.00 par value (the "Series D Preferred Stock") at a price of $10.25 per share, for an aggregate gross purchase price of $20,000,005 (the "Private Placement"). The Private Placement closed on March 22, 2013, after the Company issued an aggregate of 1,951,220 shares of Series D Preferred Stock against receipt of $20,000,005 in cash from the Purchasers. The Private Placement was not registered under the Securities Act of 1933, as amended (the "Act"), in reliance on Section 4(2) of the Act and Rule 506 of Regulation D promulgated thereunder.

The Series D Preferred Stock automatically converted into a like number of shares of the Company's common stock after the Company received shareholder approval of such conversion at a meeting of shareholders held on May 23, 2013. Upon conversion of the Series D Preferred Stock, each share of Series D Preferred Stock was automatically converted into one share of the Company’s common stock par value of one U.S. dollar ($1.00) per share (“Common Stock”). The holders of record of Series D Preferred Stock were entitled to receive as, when, and if declared by the Company’s board of directors, dividends on each share of Series D Preferred Stock equal to the per share amount paid on a share of Common Stock (the “Preferred Dividend”), and no dividends were payable on the Common Stock or any other class or series of capital stock ranking with respect to dividends pari passu with the Common Stock unless a Preferred Dividend was payable at the same time on the Series D Preferred Stock; provided, however, in the event the shareholders of the Company did not approve the conversion of the Series D Preferred Stock to Common Stock within six (6) months of issuance, the holders of record of Series D Preferred Stock would have been entitled to receive as, when, and if declared by the board of directors of the Company, dividends on each share of Series D Preferred Stock equal to six (6) percent of liquidation value per annum or $0.62 per share (the “Fixed Preferred Dividend”) and no dividends would have been payable on the Common Stock or any other class or series of capital stock ranking with respect to dividends pari passu with the Common Stock unless a Preferred Dividend was payable at the time on the Series D Preferred Stock. Such Fixed Preferred Dividends would have been payable semi-annually in arrears on June 30 and December 31, beginning on December 31, 2013, until the shareholders of the Company approved the conversion of the Series D Preferred Shares into the Common Stock. The Series D Preferred Stock was not redeemable by the Company or by the holders. Complete details concerning the Series D Preferred Stock are contained in the Certificate of Designation filed with the Mississippi Secretary of State on March 20, 2013, a copy of which was attached as Exhibit 4.1 to the Form 8-K filed by the Company on March 25, 2013 and incorporated herein by reference.

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In accordance with Section 4.11 of the Securities Purchase Agreement, the Company called a meeting of the Company shareholders to vote on proposals to approve the conversion of shares of Series D Preferred Stock into shares of Common Stock for purposes of compliance with NASDAQ Stock Market Rule 5635. The board of directors of the Company unanimously recommended shareholder approval of this proposal.

Also on March 20, 2013, pursuant to the Securities Purchase Agreements, the Company entered into a Registration Rights Agreement with each of the Purchasers. Pursuant to the Registration Rights Agreement, the Company filed a registration statement with the Securities and Exchange Commission to register for resale the Common Stock to be issued upon conversion of the Series D Preferred Stock, within 90 calendar days after the closing of the Private Placement, and to used commercially reasonable efforts to cause such registration statement to be declared effective upon the earlier of (i) the 120th calendar day following March 22, 2013 (or the 150th calendar day following March 22, 2013 in the event that such registration statement is subject to review by the Securities and Exchange Commission) and (ii) the 5th trading day (as defined in the Registration Rights Agreement) after the date the Company is notified (orally or in writing, whichever is earlier) by the Securities and Exchange Commission that such registration statement will not be “reviewed” or will not be subject to further review. Failure to meet these deadlines and certain other events could have resulted in the Company's payment of liquidated damages to the holders of the rights, monthly in the amount of 0.5% of the aggregate purchase price of each holder of the converted Common Stock.

Copies of the form of Securities Purchase Agreements and the form of Registration Rights Agreements were attached to the Company’s Form 8-K filed on March 25, 2013 as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference. The foregoing descriptions of the Securities Purchase Agreements, the Registration Rights Agreements and the Certificate of Designation do not purport to be complete and are qualified in their entirety by reference to the full text of the Securities Purchase Agreements, the Registration Rights Agreements and the Certificate of Designation filed as exhibits to this report.

Pursuant to shareholder approval obtained at the Annual Meeting held on May 23, 2013, the Series D Nonvoting Convertible Preferred Stock has been converted to common stock.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4. REMOVED AND RESERVED

ITEM 5. OTHER INFORMATION

Not Applicable

ITEM 6. EXHIBITS

(a) Exhibits

Exhibit No.

2.1	Acquisition Agreement, dated as of January 31, 2013, between The First Bancshares, Inc. and First Baldwin Bancshares, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on 2-1-13) and First Amendment to Acquisition Agreement, dated as of March 15, 2013, between First Bancshares, Inc. and First Baldwin Bancshares, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on 3-20-13)
3.1	Articles of Amendment and Certificate of Designation, Preferences and Rights of Series D Nonvoting Convertible Preferred Stock dated as of March 18,2013(incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on 3-21-13).
3.2	Restated Articles of Incorporation dated as of March 21, 2013 (incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed on 3-21-13).
4.1	Certificate of Designation of Series D Nonvoting Convertible Preferred Stock, as filed with the Mississippi Secretary of State on March 20, 2013 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on March 25, 2013).
10.1	Form of Securities Purchase Agreement between the Company and each of the Purchasers, dated as of March 20, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on March 25, 2013)

33

10.2	Form of Registration Rights Agreement between the Company and each of the Purchasers, dated as of March 20, 2013 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on March 25, 2013)
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of principal executive officer pursuant to 18 U. S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of principal financial officer pursuant to 18 U. S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase
101.DEF**	XBRL Taxonomy Extension Definition Linkbase
101.LAB**	XBRL Taxonomy Extension Label Linkbase
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase

______________

**Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

(b) The Company filed one report on Form 8-K during the quarter ended September 30, 2013

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SIGNATURES

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

	THE FIRST BANCSHARES, INC.
	(Registrant)
	/s/ M. RAY (HOPPY) COLE, JR.
November 14, 2013	M. Ray (Hoppy) Cole, Jr.
(Date)	Chief Executive Officer
	/s/ DEEDEE LOWERY
November 14, 2013	DeeDee Lowery, Executive
(Date)	Vice President and Chief
	Financial Officer

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EX-31.1

Exhibit 31.1

Certificate pursuant to Rule 13a-14(a) or 15d-14(a) of Securities Exchange Act of 1934 as adopted pursuant to section 302 of Sarbanes-Oxley Act of 2002-Chief Executive Officer

I, M. Ray (Hoppy) Cole, Jr., certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The First Bancshares, Inc.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 14, 2013	/s/ M. Ray (Hoppy) Cole, Jr.
		M. Ray (Hoppy) Cole, Jr.
		Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31.2

Exhibit 31.2

Certificate pursuant to Rule 13a-14(a) or 15d-14(a) of Securities Exchange Act of 1934 as adopted pursuant to section 302 of Sarbanes-Oxley Act of 2002-Principal Accounting and Financial Officer

I, DeeDee Lowery, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The First Bancshares, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 14, 2013	/s/ DeeDee Lowery
		DeeDee Lowery, Executive Vice
		President and Chief Financial
		Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C., Section 1350

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q, filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, of The First Bancshares, Inc. (the "Company") for the period ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, M. Ray (Hoppy) Cole, Jr., the Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ M. Ray (Hoppy) Cole, Jr.
Name:	M. Ray (Hoppy) Cole, Jr.
Title:	Chief Executive Officer
Date:	November 14, 2013

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

 

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C., Section 1350

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q, filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, of The First Bancshares, Inc. (the "Company") for the period ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, DeeDee Lowery, the Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ DeeDee Lowery
Name:	DeeDee Lowery
Title:	Executive Vice President and Chief
	Financial Officer
Date:	November 14, 2013

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

 

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SECURITIES

9 Months Ended

Sep. 30, 2013

Securities [Abstract]

SECURITIES

NOTE H — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013, follows:

($ in thousands)

	September 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	32,573	$	84	$	130	$	32,527
Tax-exempt and taxable obligations of states and municipal    subdivisions		110,052		1,842		1,527		110,367
Mortgage-backed securities		81,526		871		1,365		81,032
Corporate obligations		28,398		233		1,713		26,918
Other		1,255		-		286		969
Total	$	253,804	$	3,030	$	5,021	$	251,813
Held-to-maturity securities:
Mortgage-backed securities	$	2,446	$	-	$	66	$	2,380
Taxable obligations of states and municipal subdivisions		6,000		1,061		-		7,061
Total	$	8,446	$	1,061	$	66	$	9,441

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
INTEREST INCOME:
Interest and fees on loans	$ 7,216	$ 5,204	$ 18,765	$ 16,011
Interest and dividends on securities:
Taxable interest and dividends	841	731	2,484	2,154
Tax exempt interest	555	513	1,588	1,527
Interest on federal funds sold	36	11	70	42
TOTAL INTEREST INCOME	8,648	6,459	22,907	19,734
INTEREST EXPENSE:
Interest on deposits	540	714	1,824	2,440
Interest on borrowed funds	150	314	448	870
TOTAL INTEREST EXPENSE	690	1,028	2,272	3,310
NET INTEREST INCOME	7,958	5,431	20,635	16,424
PROVISION FOR LOAN LOSSES	360	371	1,020	744
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	7,598	5,060	19,615	15,680
OTHER INCOME:
Service charges on deposit accounts	1,077	853	2,931	2,580
Other service charges and fees	515	665	2,481	1,923
TOTAL OTHER INCOME	1,592	1,518	5,412	4,503
OTHER EXPENSES:
Salaries and employee benefits	4,010	3,075	10,922	9,009
Occupancy and equipment	802	493	2,862	2,402
Other	2,818	1,869	7,070	4,962
TOTAL OTHER EXPENSES	7,630	5,437	20,854	16,373
INCOME BEFORE INCOME TAXES	1,560	1,141	4,173	3,810
INCOME TAXES	456	269	1,032	930
NET INCOME	1,104	872	3,141	2,880
PREFERRED STOCK ACCRETION AND DIVIDENDS	106	106	318	318
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 998	$ 766	$ 2,823	$ 2,562
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS:
BASIC	$ 0.20	$ 0.25	$ 0.70	$ 0.83
DILUTED	$ 0.19	$ 0.24	$ 0.69	$ 0.82
DIVIDENDS PER SHARE - COMMON	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2013

Basis Of Presentation [Abstract]

BASIS OF PRESENTATION

NOTE A — BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2012.

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LOANS (Tables)

9 Months Ended

Sep. 30, 2013

Loans Receivable, Net [Abstract]

Composition of Loan Portfolio

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	September 30, 2013				December 31, 2012
	Amount		Percent of Total		Amount		Percent of Total
	(Dollars in thousands)
Mortgage loans held for sale	$	1,399	.2	%	$	5,586	1.4	%
Commercial, financial and agricultural		79,094	13.8			53,234	12.9
Real Estate:
Mortgage-commercial		198,123	34.6			142,046	34.3
Mortgage-residential		211,494	36.9			140,703	34.0
Construction		66,745	11.7			57,529	13.9
Consumer and other		15,658	2.8			14,600	3.5
Total loans		572,513	100	%		413,698	100	%
Allowance for loan losses		(5,672)				(4,727)
Net loans	$	566,841			$	408,971

Activity in Allowance for Loan Losses

Activity in the allowance for loan losses for the period is as follows:

(In thousands)

	Three Months		Nine Months
	Ended		Ended
	Sept. 30, 2013		Sept. 30, 2013
Balance at beginning of period	$	5,393	$	4,727
Loans charged-off:
Real Estate		(50)		(356)
Installment and Other		(41)		(171)
Commercial, Financial and Agriculture		(35)		(105)
Total		(126)		(632)
Recoveries on loans previously charged-off:
Real Estate		27		492
Installment and Other		12		51
Commercial, Financial and Agriculture		6		14
Total		45		557
Net charge-offs		(81)		(75)
Provision for Loan Losses		360		1,020
Balance at end of period	$	5,672	$	5,672

Allocation of Allowance for Loan Losses

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at September 30, 2013 and December 31, 2012.

Allocation of the Allowance for Loan Losses

	September 30, 2013
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	504	13.7	%
Commercial Real Estate		3,339	57.5
Consumer Real Estate		1,238	25.3
Consumer		198	3.5
Unallocated		393	-
Total	$	5,672	100	%

	December 31, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	420	13.3	%
Commercial Real Estate		3,338	63.7
Consumer Real Estate		810	19.0
Consumer		151	4.0
Unallocated		8	-
Total	$	4,727	100	%

Impaired Loans

The following table represents the Company’s impaired loans at September 30, 2013, and December 31, 2012.

	Sept. 30,		December 31,
	2013		2012
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,850	$	1,445
Impaired loans with a valuation allowance		2,501		2,144
Total impaired loans	$	4,351	$	3,589
Allowance for loan losses on impaired loans at period end		748		936
Total nonaccrual loans		2,681		3,401
Past due 90 days or more and still accruing		471		158
Average investment in impaired loans		3,554		2,979

Summary of Interest Recognized and Cash-Basis Interest Earned on Impaired Loans

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months Ended Sept. 30, 2013		Nine Months Ended Sept. 30, 2013
Average of individually impaired loans during period	$	3,554	$	3,554
Interest income recognized during Impairment		43		98
Cash-basis interest income recognized		42		110

Loans and Allowance for Loan Losses Evaluated Individually and Collectively

The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

September 30, 2013

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,218	$	41	$	92	$	4,351
Collectively evaluated		468,851		19,698		78,214		566,763
Total	$	473,069	$	19,739	$	78,306	$	571,114
Allowance for Loan Losses
Individually evaluated	$	680	$	36	$	32	$	748
Collectively evaluated		3,897		555		472		4,924
Total	$	4,577	$	591	$	504	$	5,672

December 31, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,111	$	55	$	221	$	4,387
Collectively evaluated		333,299		16,401		54,025		403,725
Total	$	337,410	$	16,456	$	54,246	$	408,112
Allowance for Loan Losses
Individually evaluated	$	917	$	110	$	76	$	1,103
Collectively evaluated		3,231		49		344		3,624
Total	$	4,148	$	159	$	420	$	4,727

Troubled Debt Restructurings

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2013 and December 31, 2012. The recorded investment included in the following table represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at September 30, 2013, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

September 30, 2013

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	4	$	4	$	-	$	50	$	-
Commercial real estate		1,715		1,773		-		1,129		56
Consumer real estate		126		126		-		145		2
Consumer installment		5		5		-		5		-
Total	$	1,850	$	1,908	$	-	$	1,329	$	58
Impaired loans with a related allowance:
Commercial installment	$	87	$	87	$	32	$	60	$	5
Commercial real estate		1,610		1,680		391		1,308		33
Consumer real estate		768		768		289		820		12
Consumer installment		36		36		36		37		2
Total	$	2,501	$	2,571	$	748	$	2,225	$	52
Total Impaired Loans:
Commercial installment	$	91	$	91	$	32	$	110	$	5
Commercial real estate		3,325		3,453		391		2,437		89
Consumer real estate		894		894		289		965		14
Consumer installment		41		41		36		42		2
Total Impaired Loans	$	4,351	$	4,479	$	748	$	3,554	$	110

December 31, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	15	$	15	$	-	$	46	$	-
Commercial real estate		1,013		1,529		-		1,004		39
Consumer real estate		106		969		-		168		8
Consumer installment		311		311		-		156		1
Total	$	1,445	$	2,824	$	-	$	1,374	$	48
Impaired loans with a related allowance:
Commercial installment	$	203	$	203	$	73	$	173	$	8
Commercial real estate		1,549		1,549		747		1,546		38
Consumer real estate		44		44		44		72		4
Consumer installment		348		348		72		197		2
Total	$	2,144	$	2,144	$	936	$	1,988	$	52
Total Impaired Loans:
Commercial installment	$	218	$	218	$	73	$	219	$	8
Commercial real estate		2,562		3,078		747		2,550		77
Consumer real estate		150		1,013		44		240		12
Consumer installment		659		659		72		353		3
Total Impaired Loans	$	3,589	$	4,968	$	936	$	3,362	$	100

Additional Detail of Troubled Debt Restructurings

The following tables provide additional detail of troubled debt restructurings at September 30, 2013.

For the Three Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		858		858		3		24
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	858	$	858		3	$	24

For the Nine Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment			Interest
	Investment		Post-		Number of	Income
	Pre-Modification		Modification		Loans	Recognized
Commercial installment	$	-	$	-	-	$	-
Commercial real estate		858		858	3		41
Consumer real estate		66		66	1		1
Consumer installment		-		-	-		-
Total	$	924	$	924	4	$	42

Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	September 30, 2013
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	276	$	-	$	210	$	486	$	66,745
Real Estate-mortgage		1,283		468		1,950		3,701		211,494
Real Estate-non farm non residential		935		-		511		1,446		198,123
Commercial		519		-		10		529		79,094
Consumer		64		3		-		67		15,658
Total	$	3,077	$	471	$	2,681	$	6,229	$	571,114

	December 31, 2012
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	990	$	-	$	1,667	$	2,657	$	57,529
Real Estate-mortgage		3,045		147		986		4,178		140,703
Real Estate-non farm non residential		389		-		608		997		142,046
Commercial		88		-		135		223		53,234
Consumer		132		11		5		148		14,600
Total	$	4,644	$	158	$	3,401	$	8,203	$	408,112

Risk Category of Loans by Class of Loans

As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

($ in thousands)

September 30, 2013

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	310,903	$	143,200	$	19,699	$	76,800	$	550,602
Special Mention		6,338		33		-		1,278		7,649
Substandard		11,634		1,283		40		258		13,215
Doubtful		-		-		-		-		-
Subtotal		328,875		144,516		19,739		78,336		571,466
Less:
Unearned discount		228		94		-		30		352
Loans, net of unearned discount	$	328,647	$	144,422	$	19,739	$	78,306	$	571,114

December 31, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	241,927	$	76,206	$	16,426	$	53,880	$	388,439
Special Mention		5,653		144		17		-		5,814
Substandard		12,606		1,059		15		320		14,000
Doubtful		-		-		-		60		60
Subtotal		260,186		77,409		16,458		54,260		408,313
Less:
Unearned discount		91		94		2		14		201
Loans, net of unearned discount	$	260,095	$	77,315	$	16,456	$	54,246	$	408,112

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ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2013

Allowance For Loan Losses [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE I — ALLOWANCE FOR LOAN LOSSES

The Company has developed policies and procedures for evaluating the overall quality of its credit portfolio and the timely identification of potential problem loans. Management’s judgment as to the adequacy of the allowance is based upon a number of assumptions which it believes to be reasonable, but which may not prove to be accurate, particularly given the Company’s growth and the economy. Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required.

The Company’s allowance consists of two parts. The first part is determined in accordance with authoritative guidance regarding contingencies. The Company’s determination of this part of the allowance is based upon quantitative and qualitative factors. A loan loss history based upon the three year quarterly moving average is utilized in determining the appropriate allowance. Historical loss factors are determined by graded and ungraded loans by loan type. These historical loss factors are applied to the loans by loan type to determine an indicated allowance. The loss factors of peer groups are considered in the determination of the allowance and are used to assist in the establishment of a long-term loss history for areas in which this data is unavailable and incorporated into the qualitative factors to be considered. The historical loss factors may also be modified based upon other qualitative factors including but not limited to local and national economic conditions, trends of delinquent loans, changes in lending policies and underwriting standards, concentrations, and management’s knowledge of the loan portfolio. These factors require judgment upon the part of management and are based upon state and national economic reports received from various institutions and agencies including the Federal Reserve Bank, United States Bureau of Economic Analysis, Bureau of Labor Statistics, meetings with the Company’s loan officers and loan committee, and data and guidance received or obtained from the Company’s regulatory authorities.

The second part of the allowance is determined in accordance with authoritative guidance regarding loan impairment. Impaired loans are determined based upon a review by internal loan review and senior loan officers.

The sum of the two parts constitutes management’s best estimate of an appropriate allowance for loan losses. When the estimated allowance is determined, it is presented to the Company’s audit committee for review and approval on a quarterly basis.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Impairment is measured on a loan by loan basis, and a specific allowance is assigned to each loan determined to be impaired. Impaired loans not deemed collateral dependent are analyzed according to the ultimate repayment source, whether that is cash flow from the borrower, guarantor or some other source of repayment. Impaired loans are deemed collateral dependent if in the Company’s opinion the ultimate source of repayment will be generated from the liquidation of collateral.

The Company discontinues accrual of interest on loans when management believes, after considering economic and business conditions and collection efforts, that a borrower’s financial condition is such that the collection of interest is doubtful. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

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Risk Category of Loans by Class of Loans (Excluding Mortgage Loans Held for Sale) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 571,466	$ 408,313
Unearned discount	352	201
Total	571,114	408,112
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	550,602	388,439
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	7,649	5,814
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	13,215	14,000
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	60
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	328,875	260,186
Unearned discount	228	91
Total	328,647	260,095
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	310,903	241,927
Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	6,338	5,653
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	11,634	12,606
Commercial Real Estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Mortgage Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	144,516	77,409
Unearned discount	94	94
Total	144,422	77,315
Mortgage Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	143,200	76,206
Mortgage Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	33	144
Mortgage Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	1,283	1,059
Mortgage Real Estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Installment and Other
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	19,739	16,458
Unearned discount	0	2
Total	19,739	16,456
Installment and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	19,699	16,426
Installment and Other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	17
Installment and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	40	15
Installment and Other | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Commercial,Financial and Agriculture
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	78,336	54,260
Unearned discount	30	14
Total	78,306	54,246
Commercial,Financial and Agriculture | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	76,800	53,880
Commercial,Financial and Agriculture | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	1,278	0
Commercial,Financial and Agriculture | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	258	320
Commercial,Financial and Agriculture | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 0	$ 60

XML

Loans - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Percentage of loan portfolio to earning assets		66.30%	63.60%
Loan to value ratio	80.00%	80.00%
Gross interest income if non-accrual loans had been current	$ 40,500	$ 131,400
Troubled debt restructurings, balance	1,300,000	1,300,000
Impaired receivables for which allowance for credit losses had previously been measured under general allowance for credit losses methodology, allowance for credit losses	$ 48,000	$ 48,000

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Business Combination - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Business Acquisition [Line Items]
Goodwill, acquired during period		$ 1,300,000
Acquired finite-lived intangible assets, weighted average useful life		10 years
Business acquisition purchase price allocation loans receivable	124,200,000	124,200,000
Business combination fair value adjustments loans		5,000,000
Business combination, acquisition related costs	447,000	1,408,000
Core Deposits
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		7,000,000
Alabama Corporation
Business Acquisition [Line Items]
Business acquisition costs of acquired entity purchase price	$ 3,300,000	$ 3,300,000

XML

Summary of Organization - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Organization [Line Items]
Entity Incorporation, Date Of Incorporation					Jun. 23, 1995
Entity Incorporation, State Country Name					Hattiesburg, Mississippi
Assets	$ 951,895				$ 951,895		$ 721,386
Loans, including Loans held for sale	572,513				572,513		413,698
Deposits	813,965				813,965		596,627
Stockholders' equity	83,760			65,372	83,760	65,372	65,886	60,425
Net income	1,104			872	3,141	2,880
Net Income applicable to common stockholders	$ 998			$ 766	$ 2,823	$ 2,562
Dividends per share common	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125

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Additional Detail of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Modifications [Line Items]
Outstanding Record Investment Pre-Modification	$ 858	$ 924
Outstanding Record Investment Post-Modification	858	924
Number of loans	3	4
Interest income Recognized	24	42	100
Commercial installment
Financing Receivable, Modifications [Line Items]
Outstanding Record Investment Pre-Modification	0
Outstanding Record Investment Post-Modification	0
Number of loans	0	0
Interest income Recognized	0	0
Commercial real estate
Financing Receivable, Modifications [Line Items]
Outstanding Record Investment Pre-Modification	858	858
Outstanding Record Investment Post-Modification	858	858
Number of loans	3	3
Interest income Recognized	24	41	77
Consumer real estate
Financing Receivable, Modifications [Line Items]
Outstanding Record Investment Pre-Modification	0	66
Outstanding Record Investment Post-Modification	0	66
Number of loans	0	1
Interest income Recognized	0	1	12
Consumer installment
Financing Receivable, Modifications [Line Items]
Outstanding Record Investment Pre-Modification	0	0
Outstanding Record Investment Post-Modification	0	0
Number of loans	0	0
Interest income Recognized	$ 0	$ 0

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Fair Value of Assets Measured on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 251,813	$ 214,393
Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	32,527	36,359
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	110,367	98,910
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	81,032	61,967
Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	26,918	16,187
Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	969	970
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	969	970
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	969	970
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	248,061	210,755
Significant Other Observable Inputs (Level 2) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	32,527	36,359
Significant Other Observable Inputs (Level 2) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	110,367	98,910
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	81,032	61,967
Significant Other Observable Inputs (Level 2) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	24,135	13,519
Significant Other Observable Inputs (Level 2) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	2,783	2,668
Significant Unobservable Inputs (Level 3) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	2,783	2,668
Significant Unobservable Inputs (Level 3) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 0	$ 0

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Activity in Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	$ 5,393		$ 4,727
Loans charged-off	(126)		(632)
Recoveries on loans previously charged-off	45		557
Net charge-offs	(81)		(75)
Provision for Loan Losses	360	371	1,020	744
Balance at end of period	5,672		5,672
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(50)		(356)
Recoveries on loans previously charged-off	27		492
Installment and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(41)		(171)
Recoveries on loans previously charged-off	12		51
Commercial Financial And Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(35)		(105)
Recoveries on loans previously charged-off	$ 6		$ 14

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Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	$ 253,804
Available-for-sale Securities, Gross Unrealized Gain	3,030
Available-for-sale Securities, Gross Unrealized Loss	5,021
Available-for-sale securities, Estimated Fair Value	251,813	214,393
Held-to-Maturity, Amortized Cost	8,446
Held-to-maturity Securities, Gross Unrecognized Gain	1,061
Held-to-maturity Securities, Gross Unrecognized Loss	66
Held-to-Maturity, Estimated Fair Value	9,441
Obligations of U.S. Government Agencies
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	32,573
Available-for-sale Securities, Gross Unrealized Gain	84
Available-for-sale Securities, Gross Unrealized Loss	130
Available-for-sale securities, Estimated Fair Value	32,527
Tax-exempt and taxable obligations of states and municipal subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	110,052
Available-for-sale Securities, Gross Unrealized Gain	1,842
Available-for-sale Securities, Gross Unrealized Loss	1,527
Available-for-sale securities, Estimated Fair Value	110,367
Held-to-Maturity, Amortized Cost	6,000
Held-to-maturity Securities, Gross Unrecognized Gain	1,061
Held-to-maturity Securities, Gross Unrecognized Loss	0
Held-to-Maturity, Estimated Fair Value	7,061
Mortgage-backed securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	81,526
Available-for-sale Securities, Gross Unrealized Gain	871
Available-for-sale Securities, Gross Unrealized Loss	1,365
Available-for-sale securities, Estimated Fair Value	81,032
Held-to-Maturity, Amortized Cost	2,446
Held-to-maturity Securities, Gross Unrecognized Gain	0
Held-to-maturity Securities, Gross Unrecognized Loss	66
Held-to-Maturity, Estimated Fair Value	2,380
Corporate obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	28,398
Available-for-sale Securities, Gross Unrealized Gain	233
Available-for-sale Securities, Gross Unrealized Loss	1,713
Available-for-sale securities, Estimated Fair Value	26,918
Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	1,255
Available-for-sale Securities, Gross Unrealized Gain	0
Available-for-sale Securities, Gross Unrealized Loss	286
Available-for-sale securities, Estimated Fair Value	$ 969

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Earnings Applicable to Common Stockholders - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2013	Mar. 31, 2013	Mar. 31, 2012
Earnings Per Share Basic [Line Items]
Shares of restricted stock granted	15,500	35,133	42,795

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Summary of Interest Recognized and Cash-Basis Interest Earned on Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Average of individually impaired loans during period	$ 3,554	$ 3,554	$ 2,979
Interest income recognized during impairment	24	42	100
Cash-basis interest income recognized	$ 42	$ 110

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SECURITIES (Tables)

9 Months Ended

Sep. 30, 2013

Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-to-Maturity Securities

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013, follows:

($ in thousands)

	September 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	32,573	$	84	$	130	$	32,527
Tax-exempt and taxable obligations of states and municipal    subdivisions		110,052		1,842		1,527		110,367
Mortgage-backed securities		81,526		871		1,365		81,032
Corporate obligations		28,398		233		1,713		26,918
Other		1,255		-		286		969
Total	$	253,804	$	3,030	$	5,021	$	251,813
Held-to-maturity securities:
Mortgage-backed securities	$	2,446	$	-	$	66	$	2,380
Taxable obligations of states and municipal subdivisions		6,000		1,061		-		7,061
Total	$	8,446	$	1,061	$	66	$	9,441

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock	Preferred Stock	Stock Warrants	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income(Loss)	Treasury Stock
Balance at Dec. 31, 2011	$ 60,425	$ 3,093	$ 16,939	$ 284	$ 23,220	$ 16,791	$ 562	$ (464)
Net income	2,880	0	0	0	0	2,880	0	0
Other comprehensive income(loss)	2,498	0	0	0	0	0	2,498	0
Accretion and dividends on preferred stock	(257)	0	61	0	0	(318)	0	0
Dividends on common stock, $.1125 per share	(348)	0	0	0	0	(348)	0	0
Restricted stock grant	0	42	0	0	(42)	0	0	0
Compensation expense	174	0	0	0	174	0	0	0
Balance at Sep. 30, 2012	65,372	3,135	17,000	284	23,352	19,005	3,060	(464)
Balance at Dec. 31, 2012	65,886	3,134	17,021	284	23,427	19,951	2,533	(464)
Net income	3,141	0	0	0	0	3,141	0	0
Other comprehensive income(loss)	(3,824)	0	0	0	0	0	(3,824)	0
Accretion and dividends on preferred stock	(257)	0	61	0	0	(318)	0	0
Dividends on common stock, $.1125 per share	(427)	0	0	0	0	(427)	0	0
Issuance of 1,951,220 common shares	18,958	1,951	0	0	18,049	(1,042)	0	0
Restricted stock grant	0	49	0	0	(49)	0	0	0
Compensation expense	283	0	0	0	283	0	0	0
Balance at Sep. 30, 2013	$ 83,760	$ 5,134	$ 17,082	$ 284	$ 41,710	$ 21,305	$ (1,291)	$ (464)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 3,141	$ 2,880
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	1,316	1,894
Provision for loan losses	1,020	744
Loss on sale/writedown of ORE	280	396
Restricted stock expense	283	174
Increase in cash value of life insurance	(107)	(130)
Federal Home Loan Bank stock dividends	(5)	(3)
Changes in:
Interest receivable	(140)	(282)
Loans held for sale, net	4,962	(1,914)
Interest payable	(140)	(81)
Other, net	5,670	3,287
NET CASH PROVIDED BY OPERATING ACTIVITIES	16,280	6,965
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received in excess of cash paid for acquisition	43,150	0
Maturities and calls of securities available-for-sale	44,637	40,136
Purchases of securities available-for-sale and held-to-maturity	(83,416)	(60,762)
Net redemptions (purchases) of other securities	(1,084)	11
Net increase in loans	(41,390)	(10,020)
Net additions in premises and equipment	(658)	(428)
NET CASH USED IN INVESTING ACTIVITIES	(38,761)	(31,063)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits	31,851	48,477
Net decrease in borrowed funds	(6,771)	(10,251)
Dividends paid on common stock	(413)	(340)
Dividends paid on preferred stock	(257)	(257)
Issuance of 1,951,220 common shares, net	18,958	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	43,368	37,629
NET INCREASE IN CASH	20,887	13,531
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	30,877	23,181
CASH AND CASH EQUIVALENTS AT END OF PERIOD	51,764	36,712
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST	2,071	3,391
CASH PAYMENTS FOR INCOME TAXES	980	967
LOANS TRANSFERRED TO OTHER REAL ESTATE	1,875	6,353
ISSUANCE OF RESTRICTED STOCK GRANTS	$ 49	$ 42

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SUMMARY OF ORGANIZATION

9 Months Ended

Sep. 30, 2013

Summary Of Organization [Abstract]

SUMMARY OF ORGANIZATION

NOTE B — SUMMARY OF ORGANIZATION

The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First, A National Banking Association (the “Bank”).

At September 30, 2013, the Company had approximately $951.9 million in assets, $566.8 million in net loans, $814.0 million in deposits, and $83.8 million in stockholders' equity. For the nine months ended September 30, 2013, the Company reported net income of $3.1 million ($2.8 million applicable to common stockholders).

In the first, second, and third quarters of 2013, the Company declared and paid a dividend of $.0375 per common share.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	9 Months Ended
	Sep. 30, 2013
Issuance of common stock	1,951,220

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Allocation of Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 5,672	$ 5,393	$ 4,727
Allowance for loan losses, percentage of total	100.00%		100.00%
Commercial Non Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	504		420
Allowance for loan losses, percentage of total	13.70%		13.30%
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	3,339		3,338
Allowance for loan losses, percentage of total	57.50%		63.70%
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	1,238		810
Allowance for loan losses, percentage of total	25.30%		19.00%
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	198		151
Allowance for loan losses, percentage of total	3.50%		4.00%
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 393		$ 8
Allowance for loan losses, percentage of total	0.00%		0.00%

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Acquired Identifiable Assets and Liabilities as of Acquisition Date (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Purchase price:
Cash	$ 3,300
Total purchase price	3,300
Identifiable assets:
Cash and due from banks	46,450
Investments	2,508
Loans and leases	124,165
Other Real Estate	87
Core deposit intangible	680
Personal and real property	10,655
Deferred tax asset	2,969
Other assets	1,034
Total assets	188,548
Liabilities and equity:
Deposits	185,771
Other liabilities	736
Total liabilities	186,507
Net assets acquired	2,041
Goodwill resulting from acquisition	$ 1,259

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Earnings Applicable to Common Stockholders (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share Basic [Line Items]
Net income available to common stock holders, basic	$ 998,000	$ 766,000	$ 2,823,000	$ 2,562,000
Net income available to common stock holders, diluted	$ 998,000	$ 766,000	$ 2,823,000	$ 2,562,000
Weighted average number of shares outstanding, basic	5,102,572	3,108,867	4,058,432	3,099,024
Effect of dilutive shares:
Restricted stock grants	47,945	26,378	47,945	26,378
Weighted average number of shares outstanding, diluted	5,150,517	3,135,245	4,106,377	3,125,402
Basic per share	$ 0.20	$ 0.25	$ 0.70	$ 0.83
Diluted per share	$ 0.19	$ 0.24	$ 0.69	$ 0.82

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Fair Values of off-Balance Sheet Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Assets:
Cash and cash equivalents	$ 51,764	$ 30,877	$ 36,712	$ 23,181
Securities available-for-sale	251,813	214,393
Securities held-to-maturity	8,446	8,470
Other securities	4,624	3,438
Loans, net	566,841	408,971
Liabilities:
Noninterest-bearing deposits	169,001	109,625
Interest-bearing deposits	644,964	487,002
Subordinated debentures	10,310	10,310
FHLB and other borrowings	30,000	36,771
Estimated Fair Value
Assets:
Cash and cash equivalents	51,764	30,877
Securities available-for-sale	251,813	214,393
Securities held-to-maturity	9,441	7,055
Other securities	4,624	3,438
Loans, net	580,204	422,029
Liabilities:
Noninterest-bearing deposits	169,001	109,625
Interest-bearing deposits	644,511	487,599
Subordinated debentures	10,310	10,310
FHLB and other borrowings	$ 30,000	$ 36,771

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Additional Detail of Impaired Loans Broken Out According to Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, recorded investment	$ 1,850	$ 1,850	$ 1,445
Impaired loans with no related allowance, unpaid balance	1,908	1,908	2,824
Impaired loans with no related allowance, average recorded investment YTD		1,329	1,374
Impaired loans with no related allowance, interest income recognized YTD		58	48
Impaired loans with a related allowance, recorded investment	2,501	2,501	2,144
Impaired loans with a related allowance, unpaid balance	2,571	2,571	2,144
Impaired loans with a related allowance:	748	748	936
Impaired loans with a related allowance, average recored investment YTD		2,225	1,988
Impaired loans with a related allowance, interest income recognized YTD		52	52
Recorded Investment	4,351	4,351	3,589
Unpaid Balance	4,479	4,479	4,968
Related Allowance	748	748	936
Average Recorded Investment YTD	3,554	3,554	2,979
Interest Income Recognized YTD	24	42	100
Commercial installment
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, recorded investment	4	4	15
Impaired loans with no related allowance, unpaid balance	4	4	15
Impaired loans with no related allowance, average recorded investment YTD		50	46
Impaired loans with no related allowance, interest income recognized YTD		0	0
Impaired loans with a related allowance, recorded investment	87	87	203
Impaired loans with a related allowance, unpaid balance	87	87	203
Impaired loans with a related allowance:	32	32	73
Impaired loans with a related allowance, average recored investment YTD		60	173
Impaired loans with a related allowance, interest income recognized YTD		5	8
Recorded Investment	91	91	218
Unpaid Balance	91	91	218
Related Allowance	32	32	73
Average Recorded Investment YTD		110	219
Interest Income Recognized YTD		5	8
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, recorded investment	1,715	1,715	1,013
Impaired loans with no related allowance, unpaid balance	1,773	1,773	1,529
Impaired loans with no related allowance, average recorded investment YTD		1,129	1,004
Impaired loans with no related allowance, interest income recognized YTD		56	39
Impaired loans with a related allowance, recorded investment	1,610	1,610	1,549
Impaired loans with a related allowance, unpaid balance	1,680	1,680	1,549
Impaired loans with a related allowance:	391	391	747
Impaired loans with a related allowance, average recored investment YTD		1,308	1,546
Impaired loans with a related allowance, interest income recognized YTD		33	38
Recorded Investment	3,325	3,325	2,562
Unpaid Balance	3,453	3,453	3,078
Related Allowance	391	391	747
Average Recorded Investment YTD		2,437	2,550
Interest Income Recognized YTD	24	41	77
Consumer real estate
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, recorded investment	126	126	106
Impaired loans with no related allowance, unpaid balance	126	126	969
Impaired loans with no related allowance, average recorded investment YTD		145	168
Impaired loans with no related allowance, interest income recognized YTD		2	8
Impaired loans with a related allowance, recorded investment	768	768	44
Impaired loans with a related allowance, unpaid balance	768	768	44
Impaired loans with a related allowance:	289	289	44
Impaired loans with a related allowance, average recored investment YTD		820	72
Impaired loans with a related allowance, interest income recognized YTD		12	4
Recorded Investment	894	894	150
Unpaid Balance	894	894	1,013
Related Allowance	289	289	44
Average Recorded Investment YTD		965	240
Interest Income Recognized YTD	0	1	12
Consumer installment
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, recorded investment	5	5	311
Impaired loans with no related allowance, unpaid balance	5	5	311
Impaired loans with no related allowance, average recorded investment YTD		5	156
Impaired loans with no related allowance, interest income recognized YTD		0	1
Impaired loans with a related allowance, recorded investment	36	36	348
Impaired loans with a related allowance, unpaid balance	36	36	348
Impaired loans with a related allowance:	36	36	72
Impaired loans with a related allowance, average recored investment YTD		37	197
Impaired loans with a related allowance, interest income recognized YTD		2	2
Recorded Investment	41	41	659
Unpaid Balance	41	41	659
Related Allowance	36	36	72
Average Recorded Investment YTD		42	353
Interest Income Recognized YTD		$ 2	$ 3

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Preferred stock, per share liquidation	$ 1,000	$ 1,000
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	17,123	17,123
Preferred stock, outstanding	17,123	17,123
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,133,625	3,133,596
Treasury stock, shares	26,494	26,494

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EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

NOTE E — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as stock options. 

		For the Three Months Ended
		September 30, 2013
		Net Income	Shares		Per
		(Numerator)	(Denominator)		Share Data
Basic per share	$	998,000	5,102,572	$	.20
Effect of dilutive shares:
Restricted stock grants			47,945
Diluted per share	$	998,000	5,150,517	$	.19

	For the Nine Months Ended
	September 30, 2013
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,823,000		4,058,432	$	.70
Effect of dilutive shares:
Restricted stock grants				47,945
Diluted per share	$	2,823,000		4,106,377	$	.69

	For the Three Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

The Company granted 35,133 shares of restricted stock in the first quarter of 2013, 15,500 shares of restricted stock in the third quarter of 2013 and 42,795 shares of restricted stock in the first quarter of 2012.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income per consolidated statements of income	$ 1,104	$ 872	$ 3,141	$ 2,880
Other comprehensive income:
Unrealized holding gains (losses) arising during the period on available-for-sale securities	226	1,989	(5,844)	3,712
Unrealized holding gains (losses) on loans held for sale	153	36	50	73
Income tax benefit (expense)	(129)	(688)	1,970	(1,287)
Other Comprehensive Income (Loss)	250	1,337	(3,824)	2,498
Comprehensive Income (Loss)	$ 1,354	$ 2,209	$ (683)	$ 5,378

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 26,110	$ 20,225
Interest-bearing deposits with banks	24,326	9,588
Federal funds sold	1,328	1,064
Total cash and cash equivalents	51,764	30,877
Securities held-to-maturity, at amortized cost	8,446	8,470
Securities available-for-sale, at fair value	251,813	214,393
Other securities	4,624	3,438
Total securities	264,883	226,301
Loans held for sale	1,399	5,586
Loans	571,114	408,112
Allowance for loan losses	(5,672)	(4,727)
Loans, net	566,841	408,971
Premises and equipment	32,551	22,243
Interest receivable	3,377	2,887
Cash surrender value of life insurance	6,548	6,441
Goodwill	10,621	9,362
Other assets	10,018	7,522
Other real estate owned	5,292	6,782
TOTAL ASSETS	951,895	721,386
Deposits:
Noninterest-bearing	169,001	109,625
Interest-bearing	644,964	487,002
TOTAL DEPOSITS	813,965	596,627
Interest payable	413	212
Borrowed funds	30,000	36,771
Subordinated debentures	10,310	10,310
Other liabilities	13,447	11,580
TOTAL LIABILITIES	868,135	655,500
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, $1,000 per 2012, share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at September 30, 2013 and December 31, 2012 respectively	17,082	17,021
Common stock, par value $1 per share, 10,000,000 shares authorized; 5,133,625 shares issued at September 30, 2013 and 3,133,596 at December 31, 2012, respectively	5,134	3,134
Additional paid-in capital	41,994	23,711
Retained earnings	21,305	19,951
Accumulated other comprehensive income (loss)	(1,291)	2,533
Treasury stock, at cost, 26,494 shares at September 30, 2013 and at December 31, 2012	(464)	(464)
TOTAL STOCKHOLDERS’ EQUITY	83,760	65,886
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 951,895	$ 721,386

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Outstanding Principal Balance And Carrying Amount Of These Loans Included In The Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Business Combination, Separately Recognized Transactions [Line Items]
Outstanding principal balance	$ 571,466	$ 408,313
Business Acquisition
Business Combination, Separately Recognized Transactions [Line Items]
Outstanding principal balance	117,567
Carrying amount	$ 117,369

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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on Recurring Basis

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of September 30, 2013 and December 31, 2012 (in thousands):

September 30, 2013

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	32,527	$	-	$	32,527	$	-
Municipal securities		110,367		-		110,367		-
Mortgage-backed securities		81,032		-		81,032		-
Corporate obligations		26,918		-		24,135		2,783
Other		969		969		-		-
Total	$	251,813	$	969	$	248,061	$	2,783

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	36,359	$	-	$	36,359	$	-
Municipal securities		98,910		-		98,910		-
Mortgage-backed securities		61,967		-		61,967		-
Corporate obligations		16,187		-		13,519		2,668
Other		970		970		-		-
Total	$	214,393	$	970	$	210,755	$	2,668

Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)

	Bank-Issued Trust Preferred Securities
	2013		2012
Balance, January 1	$	2,668	$	2,252
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		-
Unrealized gain included in comprehensive income		115		416
Balance at Sept. 30, 2013 and December 31, 2012	$	2,783	$	2,668

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2013 and December 31, 2012.

($ in thousands)

September 30, 2013

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	4,351	$	-	$	4,351	$	-
Other real estate owned		5,292		-		5,292		-

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	3,589	$	-	$	3,589	$	-
Other real estate owned		6,782		-		6,782		-

Financial Instruments with No Distinguishable Fair Value

Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned.

	As of September 30, 2013				As of December 31, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	51,764	$	51,764	$	30,877	$	30,877
Securities available-for-sale		251,813		251,813		214,393		214,393
Securities held-to-maturity		8,446		9,441		8,470		7,055
Other securities		4,624		4,624		3,438		3,438
Loans, net		566,841		580,204		408,971		422,029
Liabilities:
Noninterest-bearing Deposits	$	169,001	$	169,001	$	109,625	$	109,625
Interest-bearing deposits		644,964		644,511		487,002		487,599
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		30,000		30,000		36,771		36,771

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Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Loans
Individually evaluated	$ 4,351		$ 4,387
Collectively evaluated	566,763		403,725
Total	571,114		408,112
Allowance for Loan Losses
Individually evaluated	748		1,103
Collectively evaluated	4,924		3,624
Total	5,672	5,393	4,727
Real Estate
Loans
Individually evaluated	4,218		4,111
Collectively evaluated	468,851		333,299
Total	473,069		337,410
Allowance for Loan Losses
Individually evaluated	680		917
Collectively evaluated	3,897		3,231
Total	4,577		4,148
Installment and Other
Loans
Individually evaluated	41		55
Collectively evaluated	19,698		16,401
Total	19,739		16,456
Allowance for Loan Losses
Individually evaluated	36		110
Collectively evaluated	555		49
Total	591		159
Commercial Financial And Agricultural
Loans
Individually evaluated	92		221
Collectively evaluated	78,214		54,025
Total	78,306		54,246
Allowance for Loan Losses
Individually evaluated	32		76
Collectively evaluated	472		344
Total	$ 504		$ 420

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Composition of Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 571,114		$ 408,112
Total loans	572,513		413,698
Allowance for loan losses	(5,672)	(5,393)	(4,727)
Loans, net	566,841		408,971
Percent of loan to total loan portfolio	100.00%		100.00%
Mortgage loans held for sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	1,399		5,586
Percent of loan to total loan portfolio	0.20%		1.40%
Commercial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	79,094		53,234
Percent of loan to total loan portfolio	13.80%		12.90%
Mortgage-commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	198,123		142,046
Percent of loan to total loan portfolio	34.60%		34.30%
Mortgage-residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	211,494		140,703
Percent of loan to total loan portfolio	36.90%		34.00%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	66,745		57,529
Percent of loan to total loan portfolio	11.70%		13.90%
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 15,658		$ 14,600
Percent of loan to total loan portfolio	2.80%		3.50%

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Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance, January 1	$ 2,668	$ 2,252
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Other-than-temporary impairment loss included in earnings	0	0
Unrealized gain included in comprehensive income	115	416
Balance at Sept. 30, 2013 and December 31, 2012	$ 2,783	$ 2,668

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Fair Value of Assets Measured on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 5,300
Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	4,351	3,589
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	5,292	6,782
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Significant Other Observable Inputs (Level 2) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	4,351	3,589
Significant Other Observable Inputs (Level 2) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	5,292	6,782
Significant Unobservable Inputs (Level 3) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Significant Unobservable Inputs (Level 3) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 0	$ 0

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PREFERRED STOCK AND WARRANT

9 Months Ended

Sep. 30, 2013

Preferred Stock and Warrant [Abstract]

PREFERRED STOCK AND WARRANT

NOTE D – PREFERRED STOCK AND WARRANT

On February 6, 2009, as part of the U.S. Department of Treasury’s (“Treasury”) Capital Purchase Program (“CPP”), the Company received a $5.0 million equity investment by issuing 5 thousand shares of Series A, no par value preferred stock to the Treasury pursuant to a Letter Agreement and Securities Purchase Agreement that was previously disclosed by the Company. The Company also issued a warrant to the Treasury allowing it to purchase 54,705 shares of the Company’s common stock at an exercise price of $13.71. The warrant can be exercised immediately and has a term of 10 years.

The Company allocated the proceeds received from the Treasury, net of transaction costs, on a pro rata basis to the Series A preferred stock and the warrant based on their relative fair values. The Company assigned $.3 million and $4.7 million to the warrant and the Series A preferred stock, respectively. The resulting discount on the Series A preferred stock is being accreted up to the $5.0 million liquidation amount at the time of the exchange that is described in the following paragraphs.

On September 29, 2010, and pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company closed a transaction whereby Treasury exchanged its 5,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST, (the “CPP Preferred Shares”) for 5,000 shares of a new series of preferred stock designated Fixed Rate Cumulative Perpetual Preferred Stock, Series CD (the “CDCI Preferred Shares”). On the same day, and pursuant to the terms of the letter agreement between the Company and Treasury, the Company issued an additional 12,123 CDCI Preferred Shares to Treasury for a purchase price of $12,123,000. As a result of the CDCI Transactions, the Company is no longer participating in the TARP Capital Purchase Program being administered by Treasury and is now participating in Treasury’s TARP Community Development Capital Initiative (the “CDCI”). The terms of the CDCI Transactions are more fully set forth in the Exchange Letter Agreement and the Purchase Letter Agreement.

The Letter Agreement, pursuant to which the Preferred Shares were exchanged, contains limitations on the payment of dividends on the common stock to no more than 100% of the aggregate per share dividend and distributions for the immediate prior fiscal year (dividends of $0.15 per share were declared and paid in 2010, 2011, and 2012) and on the Company’s ability to repurchase its common stock, and continues to subject the Company to certain of the executive compensation limitations included in the Emergency Economic Stabilization Act of 2008 (EESA), as previously disclosed by the Company.

The most significant difference in terms between the CDCI Preferred Shares and the CPP Preferred Shares is the dividend rate applicable to each. The CPP Preferred Shares entitled the holder to an annual dividend of 5% increasing to 9% after 5 years of the liquidation value of the shares, payable quarterly in arrears; by contrast, the CDCI Preferred Shares entitle the holder to an annual dividend of 2% for 8 years of the liquidation value of the shares, payable quarterly in arrears. Other differences in terms between the CDCI Preferred Shares and the CPP Preferred Shares, including, without limitation, the restrictions on common stock dividends and on redemption of common stock and other securities exist. The terms of the CDCI Preferred Shares are more fully set forth in the Articles of Amendment creating the CDCI Preferred Shares, which Articles of Amendment were filed with the Mississippi Secretary of State on September 27, 2010.

As a condition to participate in the CDCI, the Company was required to obtain certification as a Community Development Financial Institution (a “CDFI”) from the Treasury’s Community Development Financial Fund. On September 28, 2010, the Company was notified that its application for CDFI certification had been approved. In order to become certified and maintain its certification as a CDFI, the Company is required to meet the CDFI eligibility requirements set forth in 12 C.F.R. 1805.201(b).

On March 22, 2013, the Company raised $20,000,005 in a private placement of 1,951,220 shares of newly authorized Series D Nonvoting Convertible Preferred Stock (“Convertible Preferred Stock”) at a purchase price of $10.25 per share. The terms of the Convertible Preferred Stock provided for mandatory conversion into the Company’s common stock upon approval, which occurred at the annual meeting, May 23, 2013. The Company paid $921,487.43 in fees to its financial advisors who acted as placement agents in the private placement.

The Company intends to use the net proceeds from the private placement to increase its equity capital and for general corporate purposes, which includes, among other things, support for organic and acquisition-based growth. The private placement was exempt from Securities and Exchange Commission registration pursuant to Section 4(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated thereunder.

Upon conversion of the Convertible Preferred Stock, the Company issued 1,951,220 shares of common stock. On September 30, 2013, the Company had 5,107,131 shares of common stock outstanding, excluding treasury shares.

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Preferred Stock and Warrant - Additional Information (Detail) (USD $)	1 Months Ended	9 Months Ended		12 Months Ended			9 Months Ended	0 Months Ended	1 Months Ended
	Sep. 29, 2010	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Sep. 30, 2013 Private Placement	Feb. 06, 2009 Series A Preferred Stock	Sep. 29, 2010 Capital Purchase Program (CPP)	Sep. 29, 2010 Capital Purchase Program (CPP) After Five Years	Sep. 29, 2010 Series CD Preferred Stock	Mar. 22, 2013 Series D Preferred Stock	Sep. 30, 2013 Convertible Preferred Stock
Class of Stock [Line Items]
Proceeds received from treasury								$ 5,000,000
Issuance of preferred stock, shares								5,000			12,123
Common Stock, shares repurchased								54,705
Warrant, exercise price								13.71
Warrant, term period								10 years
Preferred stock, annual dividend rate									5.00%	9.00%	2.00%
Capital purchase liquidation dividend term									5 years		8 years
Proceeds received from treasury, warrant								3,000,000
Net proceeds from issuance and redemption of preferred stock		18,958,000	0					4,700,000			12,123,000
Accretion of Series A Preferred Stock discount, maximum amount								5,000,000
Series UST Fixed rate cumulative perpetual preferred shares exchanged to Series CD Preferred stocks									5,000
Limitations on payment of dividends on common stock	no more than 100% of the aggregate per share dividend
Dividend declared and paid, common stock				$ 0.15	$ 0.15	$ 0.15
Preferred stock, no par value, $1,000 per share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at June 30, 2013 and December 31, 2012, respectively		17,082,000		17,021,000								20,000,005
Preferred stock, issued		17,123		17,123								1,951,220
Preferred stock par value												$ 10.25
Common stock, shares, outstanding		5,107,131
Series CD fixed rate cumulative perpetual preferred shares issued in exchange to Series UST preferred stocks											5,000		1,951,220
Financial advisory fee							$ 921,487.43

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Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Impaired Loans:
Impaired loans without a valuation allowance	$ 1,850	$ 1,850	$ 1,445
Impaired loans with a valuation allowance	2,501	2,501	2,144
Total impaired loans	4,351	4,351	3,589
Allowance for loan losses on impaired loans at period end	748	748	936
Total nonaccrual loans	2,681	2,681	3,401
Past due 90 days or more and still accruing	471	471	158
Average investment in impaired loans	$ 3,554	$ 3,554	$ 2,979

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LOANS

9 Months Ended

Sep. 30, 2013

Loans Receivable, Net [Abstract]

LOANS

NOTE G — LOANS

Loans typically provide higher yields than the other types of earning assets, and, thus, one of the Company's goals is for loans to be the largest category of the Company's earning assets. At September 30, 2013 and December 31, 2012, loans accounted for 66.3% and 63.6% of earning assets, respectively. The Company controls and mitigates the inherent credit and liquidity risks through the composition of its loan portfolio.

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	September 30, 2013				December 31, 2012
	Amount		Percent of Total		Amount		Percent of Total
	(Dollars in thousands)
Mortgage loans held for sale	$	1,399	.2	%	$	5,586	1.4	%
Commercial, financial and agricultural		79,094	13.8			53,234	12.9
Real Estate:
Mortgage-commercial		198,123	34.6			142,046	34.3
Mortgage-residential		211,494	36.9			140,703	34.0
Construction		66,745	11.7			57,529	13.9
Consumer and other		15,658	2.8			14,600	3.5
Total loans		572,513	100	%		413,698	100	%
Allowance for loan losses		(5,672)				(4,727)
Net loans	$	566,841			$	408,971

In the context of this discussion, a "real estate mortgage loan" is defined as any loan, other than a loan for construction purposes, secured by real estate, regardless of the purpose of the loan. The Company follows the common practice of financial institutions in the Company’s market area of obtaining a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate loan portfolio component. Generally, the Company limits its loan-to-value ratio to 80%. Management attempts to maintain a conservative philosophy regarding its underwriting guidelines and believes it will reduce the risk elements of its loan portfolio through strategies that diversify the lending mix.

Loans held for sale consists of mortgage loans originated by the Bank and sold into the secondary market. Commitments from investors to purchase the loans are obtained upon origination.

Activity in the allowance for loan losses for the period is as follows:

(In thousands)

	Three Months		Nine Months
	Ended		Ended
	Sept. 30, 2013		Sept. 30, 2013
Balance at beginning of period	$	5,393	$	4,727
Loans charged-off:
Real Estate		(50)		(356)
Installment and Other		(41)		(171)
Commercial, Financial and Agriculture		(35)		(105)
Total		(126)		(632)
Recoveries on loans previously charged-off:
Real Estate		27		492
Installment and Other		12		51
Commercial, Financial and Agriculture		6		14
Total		45		557
Net charge-offs		(81)		(75)
Provision for Loan Losses		360		1,020
Balance at end of period	$	5,672	$	5,672

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at September 30, 2013 and December 31, 2012.

Allocation of the Allowance for Loan Losses

	September 30, 2013
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	504	13.7	%
Commercial Real Estate		3,339	57.5
Consumer Real Estate		1,238	25.3
Consumer		198	3.5
Unallocated		393	-
Total	$	5,672	100	%

	December 31, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	420	13.3	%
Commercial Real Estate		3,338	63.7
Consumer Real Estate		810	19.0
Consumer		151	4.0
Unallocated		8	-
Total	$	4,727	100	%

The following table represents the Company’s impaired loans at September 30, 2013, and December 31, 2012.

	Sept. 30,		December 31,
	2013		2012
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,850	$	1,445
Impaired loans with a valuation allowance		2,501		2,144
Total impaired loans	$	4,351	$	3,589
Allowance for loan losses on impaired loans at period end		748		936
Total nonaccrual loans		2,681		3,401
Past due 90 days or more and still accruing		471		158
Average investment in impaired loans		3,554		2,979

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months Ended Sept. 30, 2013		Nine Months Ended Sept. 30, 2013
Average of individually impaired loans during period	$	3,554	$	3,554
Interest income recognized during Impairment		43		98
Cash-basis interest income recognized		42		110

The gross interest income that would have been recorded in the period that ended if the nonaccrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the three and nine months ended September 30, 2013, was $40,500 and $131,400, respectively. The Company had no loan commitments to borrowers in non-accrual status at September 30, 2013 and 2012.

The following tables provide the ending balances in the Company's loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of September 30, 2013 and December 31, 2012. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

September 30, 2013

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,218	$	41	$	92	$	4,351
Collectively evaluated		468,851		19,698		78,214		566,763
Total	$	473,069	$	19,739	$	78,306	$	571,114
Allowance for Loan Losses
Individually evaluated	$	680	$	36	$	32	$	748
Collectively evaluated		3,897		555		472		4,924
Total	$	4,577	$	591	$	504	$	5,672

December 31, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,111	$	55	$	221	$	4,387
Collectively evaluated		333,299		16,401		54,025		403,725
Total	$	337,410	$	16,456	$	54,246	$	408,112
Allowance for Loan Losses
Individually evaluated	$	917	$	110	$	76	$	1,103
Collectively evaluated		3,231		49		344		3,624
Total	$	4,148	$	159	$	420	$	4,727

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2013 and December 31, 2012. The recorded investment included in the following table represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at September 30, 2013, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

September 30, 2013

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	4	$	4	$	-	$	50	$	-
Commercial real estate		1,715		1,773		-		1,129		56
Consumer real estate		126		126		-		145		2
Consumer installment		5		5		-		5		-
Total	$	1,850	$	1,908	$	-	$	1,329	$	58
Impaired loans with a related allowance:
Commercial installment	$	87	$	87	$	32	$	60	$	5
Commercial real estate		1,610		1,680		391		1,308		33
Consumer real estate		768		768		289		820		12
Consumer installment		36		36		36		37		2
Total	$	2,501	$	2,571	$	748	$	2,225	$	52
Total Impaired Loans:
Commercial installment	$	91	$	91	$	32	$	110	$	5
Commercial real estate		3,325		3,453		391		2,437		89
Consumer real estate		894		894		289		965		14
Consumer installment		41		41		36		42		2
Total Impaired Loans	$	4,351	$	4,479	$	748	$	3,554	$	110

December 31, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	15	$	15	$	-	$	46	$	-
Commercial real estate		1,013		1,529		-		1,004		39
Consumer real estate		106		969		-		168		8
Consumer installment		311		311		-		156		1
Total	$	1,445	$	2,824	$	-	$	1,374	$	48
Impaired loans with a related allowance:
Commercial installment	$	203	$	203	$	73	$	173	$	8
Commercial real estate		1,549		1,549		747		1,546		38
Consumer real estate		44		44		44		72		4
Consumer installment		348		348		72		197		2
Total	$	2,144	$	2,144	$	936	$	1,988	$	52
Total Impaired Loans:
Commercial installment	$	218	$	218	$	73	$	219	$	8
Commercial real estate		2,562		3,078		747		2,550		77
Consumer real estate		150		1,013		44		240		12
Consumer installment		659		659		72		353		3
Total Impaired Loans	$	3,589	$	4,968	$	936	$	3,362	$	100

The following tables provide additional detail of troubled debt restructurings at September 30, 2013.

For the Three Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		858		858		3		24
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	858	$	858		3	$	24

For the Nine Months Ending September 30, 2013

			Outstanding
	Outstanding		Recorded
	Recorded		Investment			Interest
	Investment		Post-		Number of	Income
	Pre-Modification		Modification		Loans	Recognized
Commercial installment	$	-	$	-	-	$	-
Commercial real estate		858		858	3		41
Consumer real estate		66		66	1		1
Consumer installment		-		-	-		-
Total	$	924	$	924	4	$	42

The recorded investment in receivables for which the allowance for credit losses was previously measured under a general allowance for credit losses methodology and are now impaired under Section 310-10-35 was $1.3 million. The allowance for credit losses associated with those receivables on the basis of a current evaluation of loss was $48,000. All loans were performing as agreed with modified terms.

During the three and nine month periods ending September 30, 2013, there were 3 loans and 4 loans, respectively, modified as TDR, and are considered non-performing.

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	September 30, 2013
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	276	$	-	$	210	$	486	$	66,745
Real Estate-mortgage		1,283		468		1,950		3,701		211,494
Real Estate-non farm non residential		935		-		511		1,446		198,123
Commercial		519		-		10		529		79,094
Consumer		64		3		-		67		15,658
Total	$	3,077	$	471	$	2,681	$	6,229	$	571,114

	December 31, 2012
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	990	$	-	$	1,667	$	2,657	$	57,529
Real Estate-mortgage		3,045		147		986		4,178		140,703
Real Estate-non farm non residential		389		-		608		997		142,046
Commercial		88		-		135		223		53,234
Consumer		132		11		5		148		14,600
Total	$	4,644	$	158	$	3,401	$	8,203	$	408,112

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience credit documentation, public information, and current economic trends, among other factors. The Company uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance:

Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

($ in thousands)

September 30, 2013

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	310,903	$	143,200	$	19,699	$	76,800	$	550,602
Special Mention		6,338		33		-		1,278		7,649
Substandard		11,634		1,283		40		258		13,215
Doubtful		-		-		-		-		-
Subtotal		328,875		144,516		19,739		78,336		571,466
Less:
Unearned discount		228		94		-		30		352
Loans, net of unearned discount	$	328,647	$	144,422	$	19,739	$	78,306	$	571,114

December 31, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	241,927	$	76,206	$	16,426	$	53,880	$	388,439
Special Mention		5,653		144		17		-		5,814
Substandard		12,606		1,059		15		320		14,000
Doubtful		-		-		-		60		60
Subtotal		260,186		77,409		16,458		54,260		408,313
Less:
Unearned discount		91		94		2		14		201
Loans, net of unearned discount	$	260,095	$	77,315	$	16,456	$	54,246	$	408,112

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BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2013

Business Combination, Description [Abstract]

BUSINESS COMBINATION

NOTE C – BUSINESS COMBINATION

The Company entered into an Acquisition Agreement dated January 31, 2013, as amended (the “Agreement”) with First Baldwin Bancshares, Inc., an Alabama corporation (“Baldwin”). The Agreement provided that, based upon the terms and subject to the conditions set forth in the Agreement, the Company would acquire all of the outstanding shares (the “Acquisition”) of Baldwin’s wholly-owned subsidiary, First National Bank of Baldwin County, A National Banking Association (“FNB”). Subject to the terms and conditions of the Agreement, as amended, which was approved by both the Company’s Board of Directors and the Board of Directors of Baldwin, on February 21, 2013, Baldwin filed a voluntary bankruptcy petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Alabama (“Bankruptcy Court”) and sought Bankruptcy Court approval of the Agreement and the Acquisition through a Chapter 11 plan. Upon approval by the Bankruptcy Court and consummation of the Acquisition, all outstanding FNB common stock would be sold to the Company for cash consideration of $3,300,000 (the “Purchase Price”). Each outstanding share of FNB common stock will remain outstanding and be unaffected by the Acquisition.

The Company has recently completed its Acquisition of FNB. On April 23, 2013, the Bankruptcy Court confirmed the Chapter 11 Plan of Reorganization for Baldwin pursuant to which Baldwin had agreed to sell all of the outstanding voting stock of its subsidiary, FNB, under the Agreement. The Bankruptcy Court’s approval received was the last required regulatory approval regarding the Acquisition. Previously, both the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency had granted the requisite approvals for the Acquisition by the Company of all of the outstanding voting stock of FNB on March 28, 2013, and April 4, 2013, respectively. The Acquisition closed and was completed on April 30, 2013. There was no vote required of shareholders of FNB to approve the Acquisition.

No further additional action or regulatory approval is required with respect to the Acquisition. As of the closing on April 30, 2013, FNB became a wholly-owned subsidiary of the Company and subsequently was merged with and into the Company’s bank subsidiary, The First, A National Banking Association.

In connection with the acquisition, the Company recorded $1.3 million of goodwill and $.7 million of core deposit intangible. The core deposit will be expensed over 10 years.

The Company acquired the $124.2 million loan portfolio at a fair value discount of $.5 million. The discount represents expected credit losses, adjustments to market interest rates and liquidity adjustments.

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	3,300
Total purchase price		3,300
Identifiable assets:
Cash and due from banks		46,450
Investments		2,508
Loans and leases		124,165
Other Real Estate		87
Core deposit intangible		680
Personal and real property		10,655
Deferred tax asset		2,969
Other assets		1,034
Total assets		188,548
Liabilities and equity:
Deposits		185,771
Other liabilities		736
Total liabilities		186,507
Net assets acquired		2,041
Goodwill resulting from acquisition	$	1,259

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2013, are as follows (dollars in thousands):

Outstanding principal balance	$	117,567
Carrying amount	$	117,369

All loans obtained in the acquisition reflect no specific evidence of credit deterioration and very low probability that the Company would be unable to collect all contractually required principal and interest payments.

The amount of the revenue and earnings included in the Company’s consolidated income statement for the nine months ended September 30, 2013, reflect only amounts from the acquisition date of April 30, 2013, through the quarter end September 30, 2013. Historical financial information related to each loan and deposit acquired was impractical to determine due to retrospective application requiring significant estimates of amounts that cannot be independently substantiated. Further, we believe it is impossible to distinguish objectively information about those estimates that provides evidence of circumstances that existed on the dates at which those amounts would be recognized and measured under retrospective application.

Expenses associated with the acquisition were $447,000 and $1,408,000 for the three and nine month periods ended September 30, 2013, respectively. These costs included system conversion and integrating operations charges as well as legal and consulting expenses, which have been expensed as incurred.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Dividends on common stock, per share	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125
Issuance of common stock					1,951,220

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Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	$ 3,077	$ 4,644
Past due 90 days or more and still accruing	471	158
Non- Accrual	2,681	3,401
Total Past Due and Non- Accrual	6,229	8,203
Total Loans	571,114	408,112
Real Estate-construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	276	990
Past due 90 days or more and still accruing	0	0
Non- Accrual	210	1,667
Total Past Due and Non- Accrual	486	2,657
Total Loans	66,745	57,529
Real Estate-mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	1,283	3,045
Past due 90 days or more and still accruing	468	147
Non- Accrual	1,950	986
Total Past Due and Non- Accrual	3,701	4,178
Total Loans	211,494	140,703
Real Estate-non farm non residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	935	389
Past due 90 days or more and still accruing	0	0
Non- Accrual	511	608
Total Past Due and Non- Accrual	1,446	997
Total Loans	198,123	142,046
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	519	88
Past due 90 days or more and still accruing	0	0
Non- Accrual	10	135
Total Past Due and Non- Accrual	529	223
Total Loans	79,094	53,234
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	64	132
Past due 90 days or more and still accruing	3	11
Non- Accrual	0	5
Total Past Due and Non- Accrual	67	148
Total Loans	$ 15,658	$ 14,600

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Fair Value of Assets and Liabilities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non recurring basis	$ 5.3

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE J – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued.

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FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

NOTE F — FAIR VALUE OF ASSETS AND LIABILITIES

The Company groups its financial assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1: Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets.

Available-for-Sale Securities

The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Level 2 securities include U.S. Treasury securities, obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, mortgage-backed securities and collateralized mortgage obligations. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of September 30, 2013 and December 31, 2012 (in thousands):

September 30, 2013

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	32,527	$	-	$	32,527	$	-
Municipal securities		110,367		-		110,367		-
Mortgage-backed securities		81,032		-		81,032		-
Corporate obligations		26,918		-		24,135		2,783
Other		969		969		-		-
Total	$	251,813	$	969	$	248,061	$	2,783

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	36,359	$	-	$	36,359	$	-
Municipal securities		98,910		-		98,910		-
Mortgage-backed securities		61,967		-		61,967		-
Corporate obligations		16,187		-		13,519		2,668
Other		970		970		-		-
Total	$	214,393	$	970	$	210,755	$	2,668

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)

	Bank-Issued Trust Preferred Securities
	2013		2012
Balance, January 1	$	2,668	$	2,252
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		-
Unrealized gain included in comprehensive income		115		416
Balance at Sept. 30, 2013 and December 31, 2012	$	2,783	$	2,668

Following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Impaired Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is determined not to be collateral dependent, then the discounted cash flow method is used. This method requires the impaired loan to be recorded at the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate of a loan is the contractual interest rate adjusted for any net deferred loan fees or costs, or premium or discount existing at origination or acquisition of the loan. Impaired loans are classified within Level 2 of the fair value hierarchy.

Other Real Estate Owned

Other real estate owned acquired through loan foreclosure is initially recorded at fair value less estimated costs to sell, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Operating costs associated with the assets are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other non-interest expense. Other real estate owned measured at fair value on a non-recurring basis at September 30, 2013, amounted to $5.3 million. Other real estate owned is classified within Level 2 of the fair value hierarchy.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2013 and December 31, 2012.

($ in thousands)

September 30, 2013

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	4,351	$	-	$	4,351	$	-
Other real estate owned		5,292		-		5,292		-

December 31, 2012

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	3,589	$	-	$	3,589	$	-
Other real estate owned		6,782		-		6,782		-

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash and Cash Equivalents – For such short-term instruments, the carrying amount is a reasonable estimate of fair value.

Investment in securities available-for-sale and held-to-maturity – The fair value measurement for securities available-for-sale was discussed earlier. The same measurement approach was used for securities held-to-maturity.

Loans – The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits – The fair values of demand deposits are, as required by ASC Topic 825, equal to the carrying value of such deposits. Demand deposits include noninterest-bearing demand deposits, savings accounts, NOW accounts, and money market demand accounts. The fair value of variable rate term deposits, those repricing within six months or less, approximates the carrying value of these deposits. Discounted cash flows have been used to value fixed rate term deposits and variable rate term deposits repricing after six months. The discount rate used is based on interest rates currently being offered on comparable deposits as to amount and term.

Short-Term Borrowings – The carrying value of any federal funds purchased and other short-term borrowings approximates their fair values.

FHLB and Other Borrowings – The fair value of the fixed rate borrowings are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount of any variable rate borrowing approximates its fair value.

Subordinated Debentures – The subordinated debentures bear interest at a variable rate and the carrying value approximates the fair value.

Off-Balance Sheet Instruments – Fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value until such commitments are funded or closed. Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned.

	As of September 30, 2013				As of December 31, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	51,764	$	51,764	$	30,877	$	30,877
Securities available-for-sale		251,813		251,813		214,393		214,393
Securities held-to-maturity		8,446		9,441		8,470		7,055
Other securities		4,624		4,624		3,438		3,438
Loans, net		566,841		580,204		408,971		422,029
Liabilities:
Noninterest-bearing Deposits	$	169,001	$	169,001	$	109,625	$	109,625
Interest-bearing deposits		644,964		644,511		487,002		487,599
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		30,000		30,000		36,771		36,771

XML

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Weighted-Average Number of Common Shares Outstanding

Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as stock options. 

		For the Three Months Ended
		September 30, 2013
		Net Income	Shares		Per
		(Numerator)	(Denominator)		Share Data
Basic per share	$	998,000	5,102,572	$	.20
Effect of dilutive shares:
Restricted stock grants			47,945
Diluted per share	$	998,000	5,150,517	$	.19

	For the Nine Months Ended
	September 30, 2013
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,823,000		4,058,432	$	.70
Effect of dilutive shares:
Restricted stock grants				47,945
Diluted per share	$	2,823,000		4,106,377	$	.69

	For the Three Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

XML

RECLASSIFICATION

9 Months Ended

Sep. 30, 2013

Reclassification [Abstract]

RECLASSIFICATION

NOTE K – RECLASSIFICATION

Certain amounts in the 2012 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.

XML

Document And Entity Information	9 Months Ended
	Sep. 30, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	FBMS
Entity Common Stock, Shares Outstanding	5,107,131
Entity Registrant Name	FIRST BANCSHARES INC /MS/
Entity Central Index Key	0000947559
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer

XML

BUSINESS COMBINATIONS (Tables)

9 Months Ended

Sep. 30, 2013

Business Combination, Description [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	3,300
Total purchase price		3,300
Identifiable assets:
Cash and due from banks		46,450
Investments		2,508
Loans and leases		124,165
Other Real Estate		87
Core deposit intangible		680
Personal and real property		10,655
Deferred tax asset		2,969
Other assets		1,034
Total assets		188,548
Liabilities and equity:
Deposits		185,771
Other liabilities		736
Total liabilities		186,507
Net assets acquired		2,041
Goodwill resulting from acquisition	$	1,259

Business Combination, Separately Recognized Transactions

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2013, are as follows (dollars in thousands):

Outstanding principal balance	$	117,567
Carrying amount	$	117,369