Item 2.06 Material Impairments.

On December 31, 2008, First Bancshares, Inc. ("Company"), the holding company for First Home Savings Bank ("Bank"), announced that the Bank determined that there had been further adverse developments with respect to certain loans in the Bank's portfolio. The determination was made following a review of the Bank's major loan credits. As a result of the review, the Company determined that it anticipates an increase its allowance of loan losses through an additional provision for loan losses charged to income of between $4.0 million and $4.5 million for the quarter ended December 31, 2008. In addition, during the same period, the Bank recorded a $562,000 tax provision resulting from the decision to cash in the Bank's investment in bank owned life insurance ("BOLI"). The additional provision for loan losses, net of provision for income tax, and the tax provision resulting from cashing in the BOLI will result in a decrease in the Company's after tax earnings of between $3.1 million and $3.4 million and a decrease in diluted earnings per share by an amount that is between $1.99 and $2.19 for the quarter ended December 31, 2008. For further information see the Company's press release attached hereto as Exhibit 99.1, which is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 News Release of First Bancshares, Inc. dated December 31, 2008.

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