On December 6, First Bancshares, holding company for the Hattiesburg, MS-based First National Banking Association, repurchased all 17,123 shares of its cumulative, perpetual preferred stock, series CD (CDCI preferred stock) issued to the U.S. Treasury in connection with the company’s participation in the Troubled Asset Relief Program’s Community Development Capital Initiative.

In connection with the repurchase, the company also entered into a loan agreement with First Tennessee Bank for a $20 million revolving line of credit. The maturity date of the agreement is December 5, 2017.

Under the terms of the agreement, the company is required to pay quarterly payments of interest on the unpaid principal balance of the line of credit.

The interest rate on the line of credit is subject to change from time to time based on changes in the LIBOR for an interest period of three months. The initial interest rate to be applied to the unpaid principal balance of the note will be at a rate of 2.50% over the LIBOR rate.