First Guaranty Bancshares, Inc. Annual Report 2022

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FY2022 Annual Report · First Guaranty Bancshares, Inc.

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FIRST
GUARANTY
BANCSHARES, INC.

ANNUAL REPORT 2022

www.fgb.net

First Guaranty Bank is the
#1 Best Small Bank in the U.S. for the
THIRD YEAR IN A ROW

We are excited to announce that for the third year in a row, we've
been named the Best Small Bank in the U.S. and Louisiana by
Newsweek. Newsweek partnered with Lending Tree to evaluate
thousands of FDIC-insured banks on more than 50 different factors
in order to identify the best-in-class options in 26 categories.

We are proud to be part of this year's line up!

First Guaranty Bancshares Annual Report 2022 1

Table of Contents

#1 Best Small Bank Third Year in A Row .................................................................... Page 1

Table of Contents .................................................................................................... Page 2

Financial Snapshot .................................................................................................. Page 3

First Guaranty Bancshares, Inc. (Ordinary People Doing EXTRAORDINARY THINGS) ........ Page 4

Letter from the Chairman, Marshall T. Reynolds .......................................................... Page 7

Letter from the Chief Executive Officer & President, Alton B. Lewis ............................... Page 8

Report from the Chief Financial Officer, Eric J. Dosch................................................... Page 9

Report from the Chief Lending Officer, Randy S. Vicknair ............................................. Page 10

Report from the Texas Area President, Jordan M. Lewis ............................................... Page 11

Report from the Mideast Area President, Michael R. Mineer ........................................ Page 12

Report from the Senior Vice President, Glenn A. Duhon, Sr. ......................................... Page 13

First Guaranty Bank Board of Directors ...................................................................... Page 14

First Guaranty Bancshares, Inc. Board and North Louisiana Bank Advisory Board .......... Page 15

First Guaranty Bank Officers ...................................................................................... Page 16

Performance Graphs ................................................................................................. Page 17

Earnings & Dividends ............................................................................................... Page 20

Locations Map ......................................................................................................... Page 22

First Guaranty Bank ATM/ITM Locations ..................................................................... Page 24

First Guaranty Bank Departments & Branches ............................................................ Page 25

Mission Statement ................................................................................................... Page 53

Emerging Leader Development Program ..................................................................... Page 54

FGB Gives Back........................................................................................................ Page 55

FGB Celebrates 3 years as America's Best Small Bank ............................................... Page 78

Banks Headquartered in Louisiana ............................................................................ page 79

Corporate Information .............................................................................................. Page 80

Financial Table of Contents ...................................................................................... Page 81

Visit www.fgb.net for additional
information.

NASDAQ Stock Ticker Symbol:
FGBI and FGBIP

FIRST GUARANTY BANCSHARES, INC. Financial Snapshot

FGBI
FINANCIAL
SNAPSHOT

On December 31, 2022, total assets were $3.15
billion, net income was $28.9 million and earnings
per common share were $2.48. Return on average
assets was 0.97% and return on average common
equity was 13.64%. First Guaranty Bancshares, Inc.
shares trade on the Nasdaq Global Market Exchange
and has paid quarterly dividends for 118 consecutive
quarters at December 31, 2022. At First Guaranty
you will meet ordinary people doing extraordinary
things. The bank was named the Best Small Bank
in the U.S. for the THIRD CONSECUTIVE YEAR! First
Guaranty Bancshares, Inc. is committed to customer
service and shareholder value.

PROFILE
First Guaranty Bancshares, Inc. is the holding company
of First Guaranty Bank, which it wholly owns. The Bank
is a full-service financial institution with 36 locations
providing a major presence throughout Louisiana,
northeast Texas, and with expanding locations in
Vanceburg, Kentucky and Bridgeport, West Virginia.
Headquartered in Hammond, Louisiana, the Company
had 465 employees as of December 31, 2022.

PERFORMANCE GRAPHS
Book Value Growth Per One 1993 Share [1]
(per common share)

Book Value per one 1993 share has increased
from $3.70 to $60.66 since 1993.
Dividends Per One 1993 Common Share [2]

[1] Book value has been adjusted for cumulative stock splits and dividends of 3.22 times since 1993.
[2] Cash dividends from the perspective of one original common stock from 1993 to present, this considers the

impact of stock splits and stock dividends.

Cash Dividends on Common Stock
(In thousands)

First Guaranty
has paid
$97,821,000
in Cash Dividends
to common
shareholders
since 1993.

First Guaranty Bancshares Annual Report 2022 3

BEST SMALL BANK

The Best Small Bank in the U.S. Three Years in a Row

For the third consecutive year, First Guaranty
Bank was named the Best Small Bank in the U.S.
First Guaranty Bancshares, Inc., the holding company
of First Guaranty Bank, proudly shares this distinction.
Rather than celebrate, sit back and relax, this award
encourages the leadership team and employees to
strive to maintain and exceed customer, employee, and
shareholder expectations. We are not resting on our
laurels, rather, we are working hard to be even more
successful and competitive!

Was 2022 the best year yet? In many ways, yes.
However, we review all matrices as we self-evaluate.
Holding in-depth discussions, reviewing areas marked for
improvement, and taking action to self-correct happens
among the Board of Directors, officers, and FGB team
members. We request input from our customers and
shareholders regularly to gauge effectiveness. We
update our strategy using direct feedback.

CUSTOMERS

We have the best customers!
Our underlying motive continues
to be: Committed to Customer
Satisfaction.

EMPLOYEES

We believe we have the best
employees! Our employees
are loyal, dedicated, and
knowledgeable. They are
enthusiastic, understanding,
and generous. We value our
employees and enjoy spending
time and resources to better train them and provide
advancement opportunities. When special gifts and
talents are recognized, we work to provide occasions to
share these with fellow team members and customers.
The family culture at FGB values integrity, hard work,
and dedication.

COMMUNITY and COMMUNITIES:

First Guaranty Bank
is a community bank.
We have 36 brick and
mortar locations across
Louisiana; Texas;
Vanceburg, Kentucky;
and Bridgeport,
West Virginia. FGB’s
employees not only work
in these communities,
but they also LIVE in
these communities
where they have families and friends. FGB and their
employees believe in supporting the communities they
work and live in. In 2022, First Guaranty Bank contributed
$638,108 and our generous employees contributed
their time and effort to a variety of charitable and
civic organizations near and dear to the hearts of FGB
employees, officers, and Board of Directors.

SHAREHOLDERS

118th
Consecutive
Dividend
Paid

We believe we have the best
shareholders. We communicate
with quarterly statements, 118
consecutive dividend payments,
and an elaborate, detailed annual
report.

OFFICERS AND DIRECTORS

We believe we
have the best
officers and Board
of Directors. The
North Louisiana
Advisory Board
and Holding
Company Board also
provide additional
leadership.

TEAMWORK

First Guaranty
Bancshares, Inc. and
First Guaranty Bank,
along with their best
customers, employees,
communities,
shareholders, and
leadership comprise
the best team! We
communicate, cooperate,
and collaborate amongst
these groups of people.
We try to listen, observe, improve, and be thankful. In
addition to working toward common goals as a group, we
value the individual, especially our individual customers.

First Guaranty focuses both on personal and commercial
customers, realizing that everyone is an individual and
wants to be treated fairly and with respect. We establish
relationships with a goal of long-term friendship and
business. Teamwork has the incredible power to
increase productivity and job satisfaction.

❝It is literally true that you can succeed best
and quickest by helping others to succeed.❞
– Napolean Hill
❝If you want to lift yourself up, lift up
someone else.❞
– Booker T. Washington

DATA and UX

Like great professional
sports teams, First
Guaranty Bancshares
collects and analyzes
data to improve
performance, create
an outstanding user
experience (UX), and
remain competitive.

The primary purpose of First Guaranty in collecting data
is to respond favorably to customers’ needs. Information
is also utilized to enhance employee productivity.

Recognizing the need our customers have for additional
banking hours, First Guaranty implemented ITMs
throughout our geographic footprint. ITMs combine
personal and online presence for added convenience
and best use of customers’ time and energy. These
evolved ATMs do more than dispense cash: customers
interact with a virtual banker who can cash checks
and receive deposits, loan payments, and credit card
payments, all at extended hours beyond most branches’
lobby hours.

Online and mobile banking, MyFGB app, and 24-Hour
Telephone Banking are just a few digital means of
connecting with customers. First Guaranty offers a
budgeting tool or PFM (personal finance manager)
that allows customers to create a budget and review
expenses within a personalized time period and within
spending categories, such as auto, groceries, home
improvement, insurance, etc. This dynamic tool is
available on the FGB online platform.

Take time to explore www.fgb.net and find a credit
score monitoring tool. First Guaranty also offers
services beyond banking under the Digital Services tab
including Biller Direct, Goals, and GiveWorx, which are
all explained in detail on the website. Be confident:
once customers become familiar with and use these
beneficial services -- they won’t want to be without them!

For commercial customers, FGB offers Autobooks
whereby customers may send digital invoices, schedule
recurring invoices, accept debit/credit cards for
payment, manage cash flow, and much more! Ask about
a 60-day free trial.

Beyond a doubt, FGB is social–we connect with
our customers quickly about everything! Whether
it’s a weather statement that impacts normal
branch operations, a fun community event, or just
acknowledging world coffee day; First Guaranty is there,
sharing the news with customers and the world!

Examples of improvements made from this data include
updating ITM hours and a more varied approach in
communicating with our customers, such as social
media, first class mail, in-branch signage, and text
messaging.

OPPORTUNITIES

First Guaranty
Bancshares searches
for opportunities. We
want to offer as much as
we can professionally to
our customers, employees,
communities, shareholders….as much as we can for our
team and our common goals. Mergers and Acquisitions
are other opportunities we explore regularly. We look for
prospects of new customers, employees, shareholders,
communities, and branches.

❝Opportunity is missed by most people
because it is dressed in overalls and looks
like work.❞
– Thomas A. Edison

At First Guaranty, we may not dress in overalls, but we
relish hard work and positive results.

First Guaranty Bancshares Annual Report 2022 5

BANK ROLE

BEST BANK IN THE U.S.

As a full-service
financial institution,
First Guaranty offers
commercial and
personal loans. We
accept deposits and offer
a full array of products
and services including
checking, savings,
Certificates of Deposit

(CDs), Individual Retirement Accounts (IRAs), and credit
cards. Our Board of Directors take its responsibilities
seriously and is committed to acting in the best
interests of the institution.

S T OME

C U

C
O
M

S
E
E

M PLOY

AREHOLD E R S

COMMITMENT

The underlying
message among
all these aspects
of First Guaranty
is commitment. We
are committed to
customer satisfaction.
We are committed to
enhanced shareholder
value, a fortress
balance sheet,
and continuous
improvement.

The ranking compared
thousands of FDIC-
insured institutions,
on various factors like
savings and checking
accounts offered
among an additional
50+ separate factors.
Using this information,

they determined a best-in-class option in 26 different
categories—including the best big and small bank in
every state.

“We are honored to be named The Best Small
Bank in America for the third year in a row!

This is a testament of all the hard work from every
person at every level of our organization. From the
board members, to our staff, to our cleaning crew;
we work hard to be the best we can be for our
customers and our communities.”

– Alton Lewis, President and CEO of

First Guaranty Bank

“Rates are only one factor to consider when
choosing a bank these days. Finding an institution
that offers bigger incentives, like cashback or
other rewards programs and fewer-than-average
fees, also ranks highly for customers on the hunt
for a new bank this year, a J.D. Power survey
found.”

– Newsweek’s Senior Reporter, Kerri Anne Renzulii

First Guaranty Bank is proud to deliver all the best of banking small: a more personal touch,
good customer experience, competitive rates, low fees, and a variety of financial products.

Letter from the Chairman

Marshall T. Reynolds

Chairman of the Board

FIRST GUARANTY BANCSHARES, INC.

Dear Shareholders,

This year's letter to shareholders is very easy to write for the year 2022. Newsweek and
Lending Tree selected First Guaranty Bank as the "Best Small Bank" in the United States for
the third year in a row. What an honor! We appreciate them greatly.

First, I would like to talk about Texas. As you probably know we are about to close on a bank
acquisition in Houston, Texas. This fits well with our other five branches in Texas, and I am sure
once combined, we will end 2023 with over $500 million in deposits and loans. Jordan Lewis
serves as Texas Area President, has seized every opportunity to move the ball forward in the
past, and I am sure he will do likewise now.

Second, I would like to discuss Kentucky and West Virginia. In my 2021 letter I mentioned Mike
Mineer and his commitment to loans, as well as to building a strong banking team. He has
committed to $300 million in loans for 2023 and has already surpassed $250 million as of this
date. With Dan Peck and Sam Gallo on the team, I am rather certain they will succeed. Also,
they just received FDIC approval to accept deposits in Vanceburg, Kentucky and this branch has
already reached $20 million. Approval for Bridgeport, West Virginia is expected in late summer.

Third, I want to applaud the people and operations in Louisiana. Eric Dosch, our CFO, has,
in every way, done a super job; Randy Vicknair, our CLO, has been creative and driving hard
to secure quality loans; Evan Singer, our Mergers and Acquisitions man, has performed
spectacularly; while Desiree Simmons, our CAO and marketing team leader, has knocked it out
of the park! Last, but not least, our CEO Alton Lewis, has done it all -- from traveling to Kentucky
and West Virginia to Houston Texas, where he visits and supports all the branches. Thank
goodness Alton is not a man to sit behind his desk.

Fourth, your Board of Directors has been active and involved. Andrew Gasaway is returning to
health and Bill Hood, who heads the all-important Directors Loan Committee (DLC), is truly
amazing. Ed Smith, Jack Rossi, Dickie Sitman, Ed Hoover, Bob Gabriel, Bruce McNally, Tony
Berner, and all the rest of the Board members have done an outstanding job.

In closing, I would like to thank the Board, Management and all employees for a great job in
2022.

MARSHALL T. REYNOLDS
Chairman of the Board
FIRST GUARANTY BANCSHARES, INC.
Chairman of the Board
FIRST GUARANTY BANK

First Guaranty Bancshares Annual Report 2022 7

Letter from the Chief Executive Officer & President

Dear Shareholders,

The Best Small Bank in the United States three years in a row. Newsweek and
Lending Tree have made an objective analysis of all banks in the United States
and made this selection for three years. First Guaranty Bank has won that
honor for all three years. That is an incredible achievement. Not a one-time
win. Not winning it twice. Winning it all three years.

How does this happen? First of all, it takes Shareholders and a Board of
Directors who are willing to provide the leadership, the direction, and the
assets required to do the job. Then it required the efforts every day of 478
employees in 36 locations giving their best effort every day to make sure
First Guaranty Bank operated safely, soundly, and provided the best customer
service that could be provided. This was truly the effort of a lot of ordinary
people doing extraordinary things.

Alton B. Lewis

Chief Executive Officer &
President

In 2022, First Guaranty Bancshares, Inc. achieved this honor while, at the same time, setting new
highs in earnings and strengthening the financial status of building a fortress balance sheet for
First Guaranty Bancshares, Inc. and its shareholders.

As we move forward, our aim is to continue the growth we have demonstrated over the past
years while also continuing to increase the profitability and financial strength of First Guaranty
Bancshares, Inc. Our results have been due to the commitment of our entire team.

We thank you for your support and look forward to continued success.

Sincerely,

Alton B. Lewis
Vice Chairman of the Board and Chief Executive Officer/President
FIRST GUARANTY BANCSHARES, INC.
Vice Chairman of the Board and Chief Executive Officer/President
FIRST GUARANTY BANK

Report from the Chief Financial Officer

Learn, Grow, Listen, and Serve

First Guaranty Bancshares, Inc. continued its consistent track record of loan growth,
dividend payments, capital growth and outstanding customer service in 2022. Newsweek
and Lending Tree ranked First Guaranty Bank as the number one small bank in the United
States for the third year in a row. We are honored by this tribute and will continue to
make our bank better every day.

First Guaranty continued to execute its plan to grow loans as a percentage of our balance
sheet. This plan helped First Guaranty improve net interest income through the rising
interest rate environment. Loan interest income increased more than interest expense
in 2022. Loans and leases grew 16.7% or $359.7 million from $2.16 billion in 2021 to
$2.52 billion in 2022. First Guaranty increased loan interest income by $22.6 million in
2022. Loan yields averaged 5.48% for 2022. Interest expense increased $14.2 million in
2022. The average cost of interest-bearing liabilities was 1.66% for 2022.

Eric J. Dosch

Chief Financial Officer

First Guaranty total earnings improved to $28.9 million for 2022, a 5.9% improvement over the 2021 earnings
of $27.3 million. Earnings per common share were $2.48 in 2022 compared to $2.42 in 2021.

First Guaranty paid $2.3 million in preferred stock dividends in 2022 and $1.4 million in preferred stock
dividends in 2021.

The Texas loan portfolio grew to $333.8 million at December 31, 2022. which is a $76.0 million increase from
$257.8 million at December 31, 2021. Texas loans have grown a total of $205.8 million from $128.0 million at
the acquisition date in June 2017. Texas deposits grew to $341.4 million at December 31, 2022 from $339.5
million at December 31, 2021. Texas deposits have grown a total of $214.2 million from $127.2 million at June
2017.

First Guaranty entered the new Mid-East market with loan and deposit production offices in Kentucky and
West Virginia in late 2021. This market grew $146.4 million in 2022 from $64.5 million to $210.9 million in
total in loans were in this loan portfolio at December 31, 2022. First Guaranty opened a full service branch in
Vanceburg, Kentucky on January 17, 2023.

Total common shareholders equity increased $12.2 million from $190.8 million in 2021 to $201.9 million in
2022. Retained earnings increased $19.7 million from $56.7 million in 2021 to $76.3 million in 2022.

Tangible book value per share increased from $16.13 at December 31, 2021 to $17.23 at December 31,
2022.

The net interest margin improved was 3.47% for 2022 compared to 3.44% for 2021.

Return on average assets was 0.97% for 2022 and 1.01% for 2021. Return on average common equity was
13.64% for 2022 versus 14.06% for 2021.

First Guaranty Bancshares, Inc. paid a total of $6,859,000 in cash dividends to common shareholders in 2022.
The Company has paid 118 consecutive quarters of dividends as of December 31, 2022.

First Guaranty continues to build strength for the future. We increased loans and capital in 2022. First
Guaranty continues to maintain a leading deposit market share in the communities that we serve in Louisiana.
We continue to grow our business in Texas and our markets in Kentucky and West Virginia. Our continuing
investment in our products and systems will help our employees be more productive and better serve our
customers. We believe that the combination of these efforts will lead to a strong and profitable future for First
Guaranty Bancshares, Inc.

Sincerely,

Eric J. Dosch
Chief Financial Officer
FIRST GUARANTY BANCSHARES, INC.
Chief Financial Officer
FIRST GUARANTY BANK

First Guaranty Bancshares Annual Report 2022 9

Report from the Chief Lending Officer

2022 was a great year for the First Guaranty Bank team!

We continued executing on our growth strategy in 2022 with 17% net
loan growth, which contributed to a 22% increase in loan interest income.
Thankfully, there were no major hurricanes, ice storms, or viruses affecting
us in 2022. It was definitely a well-deserved break from these types of
events!

We continued our reign as the Best Small Bank in the nation for the 3rd year
in a row, which is truly a testament to the people that we have on our team.
I’m fortunate to get to visit our branches on a regular basis and it is great
to see the smiling faces eager to serve our customers. These extraordinary
people define the bank and our culture. We wouldn’t be successful without
every single member of our team, and it is truly an honor to work with them.

Randy S. Vicknair

Senior Vice President/
Chief Lending Officer

First Guaranty Bank’s total loan portfolio grew to $2.519 billion at December

31, 2022, which was a $360 million increase over the previous year end of $2.159 billion. The
strong loan growth is due to the continued execution of our strategy. It takes everyone to achieve
this success with contributions from commercial, mortgage, and national lending. For the second
year in a row, the First Guaranty Bank team closed $1 billion in new money loans with over $700
million in new loan fundings, which was partially offset by early loan payoffs exceeding $250
million. In addition to strong loan growth, we successfully added new loans to the portfolio at an
average yield of 5.69% while payoffs had an average yield of 4.73%. This is a 0.96% improvement
in the yield related to those loans which provide $2.4 million in additional interest income each
year. The 4th quarter of 2022 resulted in an average yield on new loans of 7.20% with an average
yield of payoffs of 5.27% for a 1.93% yield improvement. Overall loan interest income, excluding
fees, was $118.2 million as of December 31, 2022 compared to $96.1 million at December
31, 2021, an increase of $22.1 million or 23%. This significant increase was achieved by a
combination of yield improvement and loan growth.

First Guaranty Bank’s expansion into Kentucky and West Virginia was successful as we were cash-
flow positive in January 2022 and have continued to add new loans to the portfolio throughout
the year. The combination of quality team members, portfolio diversification, and new loan
opportunities will make the addition of the Mideast market continually accretive to the bank. First
Guaranty Bank’s existing markets remained strong in 2022, with significant contributions from our
Texas, Baton Rouge, Southwest, Mortgage, and National Lending teams. The best part continues
to be that each contributed at different times throughout the year to create a successful and
profitable 2022.

Everyone working together toward a common goal is what makes us successful. We are already
started on making 2023 another success story!

Randy S. Vicknair
Senior Vice President/Chief Lending Officer
FIRST GUARANTY BANK

Report from the Texas Area President

Prize Crop

For First Guaranty Bank in Texas, 2022 was an ordinary year. We hit the
goals we had for loan growth. That is, we grew our loan portfolio by about
29.5%. We grew our deposits. That is, we posted positive deposit growth
in a year when market headwinds and rising deposit interest rates were
peeling off interest-bearing deposits. We were a profit center for the bank
for yet another year; this year we contributed 68.73% more than previous
years.

JORDAN M. LEWIS

Texas Area President

Our strategy was heavily focused on the fundamentals: keep our customers
happy and make money. Make sure our employees felt like they had a voice
and were able to take care of their families financially. Grow our presence in
the community, and help the people in our communities grow.

The thing about growing a prize crop is that it goes through the same ordinary process as any
other crop. Yet when it’s all said and done, there’s something special about the crop. It’s bigger,
sweeter, special – extraordinary. The only way to make it happen is to invest more into it – special
nutrients, more work, more time, more painstaking effort with each stalk – every single day. Only
when the fruit of the labor appears does it seem special, but when you see it you know it is.

This year, Texas was a prize crop for First Guaranty Bank. The best part is that if we do it again
next year, we expect the yield to be even better. As the people of First Guaranty Bank in Texas step
forward into 2023, they are even better equipped, better prepared, even more on mission, and
ready to serve. I cannot wait to see the harvest.

Ever onward,

Jordan M. Lewis
Texas Area President
FIRST GUARANTY BANK

First Guaranty Bancshares Annual Report 2022 11

Report from the Mideast Area President

During the past year our Mid-East team fully integrated into First Guaranty
Bank. Our initial objective was to bring our teams existing lending
relationships as well as develop new relationships for the bank. As of this
writing the team has brought over $250 million in lending relationships.
Due to the initial speed the team was net revenue accretive to the bank
very early in the first quarter of the year. These new relationships bring
geographic asset diversification to the bank.

In addition to developing new lending relationships, branch approvals were
secured for one location in Kentucky and one in West Virginia. As of this
writing, the Kentucky location has just opened and has over $15 million
in deposits. The West Virginia location is in the process of being built and
should be completed by late summer. These new branches will house the
lending teams as well as provide additional deposit gathering resources for
the bank.

Michael R. Mineer

Kentucky/West Virginia
Area President

As we move forward our objective is to continue to bring new high quality lending relationships and
grow the deposit gathering functions in both Kentucky and West Virginia for First Guaranty Bank.

Sincerely,

Michael R. Mineer
Kentucky/West Virginia Area President

FIRST GUARANTY BANK

Report from the Senior Vice President

The Southwest Louisiana Region of First Guaranty Bank continues to
maintain production and provide excellent customer service. 2022 followed
prior years with loan growth despite two large payoffs in the hospitality
industry.

The Southwest Region maintains a large agricultural portfolio and has
yet again shown strength with nearly all farming customers meeting their
financial obligations despite many harsh weather conditions throughout the
year. Fortunately, due to hard work and experience, many of our producers
were able to begin the harvesting of their crops before the frigid weather
moved into our region. This did lower sugar output for sugar cane farmers
in some cases, but extremely minimized crop loss within our portfolio.

The Abbeville Branch ended 2022 with $86.9 million in loans, which was
a decrease of $5.3 million from 2021. On the deposit side, the Abbeville

Glenn A. Duhon, Sr.

Senior Vice President/
Regional Manager

Branch closed 2022 with $174.3 million in deposits, representing a decrease of $10.4 million as
compared to 2021.

The Jennings Branch ended 2022 with $6.7 million in loans, which was a decrease of $10.9
million from 2021. On the deposit side, the Jennings Branch closed 2022 with $50.1 million in
deposits, representing an increase of $9.1 million compared to 2021.

The Lake Charles Loan Production Office ended 2022 with $78.9 million in loans, boasting a
massive growth of $26.2 million as compared to 2021.

The combined Southwest Division closed 2022 with $10 million of loan growth over 2021,
resulting in $169.9 million in loans. The deposit side decreased by $1.3 million, resulting in
$224.4 to close 2022.

As in previous years, we are lucky and thankful for our dedicated employees, guidance and
support from management and Board of Directors, and our loyal customers. Because of this, First
Guaranty Bank’s Southwestern Region will continue to thrive!

Glenn A. Duhon, Sr.
Senior Vice President/Regional Manager

FIRST GUARANTY BANK

First Guaranty Bancshares Annual Report 2022 13

FIRST GUARANTY BANK Board of Directors

Front Row (left to right): Edgar R. Smith III, Nancy C. Ribas, Gloria M. Dykes, Dr. Phillip E. Fincher. Middle Row (left to right): Andrew
Gasaway, Jr., Bruce McAnally, Marshall T. Reynolds, Ann A. Smith, William K. Hood, Jack Rossi, Robert H. Gabriel. Back Row (left to right):
Jack M. Reynolds, Richard W. “Dickie” Sitman, Alton B. Lewis, Edwin L. Hoover, Jr., Anthony J. Berner, Morgan S. Nalty

ANTHONY J. BERNER, JR.
Consultant, Gold Star Food Group.
Former President of Pon Food Corporation
of Ponchatoula.

GLORIA M. DYKES
Owner of Dykes Beef Farm and
Part Owner of Dykes Feed & Fertilizer Inc.
and Bluff Creeks Properties.

DR. PHILLIP E. FINCHER
North Louisiana Advisory Board.
Retired Economics/Finance Professor of
Louisiana Tech University.
Board member of Claiborne Electric
Cooperative.
Owner of C & B Ranch since 1969.

ROBERT H. GABRIEL
President of Gabriel Building Supply
Company of Ponchatoula and Amite.

ANDREW GASAWAY, JR.
Secretary, Board of Directors of First
Guaranty Bank.
President of Gasaway-Gasaway-Bankston
Architects.

WILLIAM K. HOOD
Chairman of the Audit Committee,
Directors’ Loan Committee.
President, Hood Automotive Group.

EDWIN L. HOOVER, JR.
President of Encore Development Corporation.

ALTON LEWIS
Vice Chairman of the Board,
Chief Executive Officer/President of First
Guaranty Bank and Vice Chairman of the
Board, Chief Executive Officer/President of
First Guaranty Bancshares, Inc.

BRUCE MCANALLY
Registered pharmacist, Director of Paragon
HealthCare in Dallas, RxPreferred Benefits in
Nashville, and Best Value Pharmacies in Ft.
Worth.
MORGAN S. NALTY
Investment Banking Executive and Partner in
the firm of Johnson Rice & Company, LLC.
JACK M. REYNOLDS
Vice President of Trifecta Productions, Vice
President of Pritchard Electric and Secretary,
ADJ Corporation. Board member of Energy
Services of America, The Harrah and Reynolds
Corporation, and Citizens Deposit Bank.

MARSHALL T. REYNOLDS
Chairman of the Board of First Guaranty
Bancshares, Inc. and Chairman of the Board of
First Guaranty Bank.
Chairman of Champion Industries, Inc.

NANCY C. RIBAS
Owner of Ribas Holdings LLC.

JACK ROSSI
Chairman of First Guaranty Bancshares, Inc. Audit
Committee.
Certified Public Accountant in West Virginia and
Vice President Business Development at Summit
Community Bank in West Virginia and Virginia,
on the Board of Trustees of the West Virginia
Investment Management Board, a member of the
Charleston Area Alliance Board, and the Treasurer
and Past Chairman of the Charleston Regional
Chamber Of Commerce Board, and West Virginia
University Business Economics Visiting Committee.

RICHARD W. “DICKIE” SITMAN
Director of Dixie Electric Membership Corporation.
Board President of Dixie Business Center.
Board member of the Association of Louisiana
Electric Co-ops.

ANN A. SMITH
Member of the Southern University Board of
Supervisors, Southern University Chairwoman
Emeritus, former member of Louisiana Office
of Student Financial Assistance Advisory Board
(LOSFA).
Retired member of the Tangipahoa Parish School
Board. Committee member of the Ray Smith
Memorial Fund.

EDGAR R. SMITH, III
Chairman and CEO of Smitty’s Supply, Inc. and its
affiliates, Cam 2 International, Big 4 Trucking, Big 4
Investments, Jaxon Energy, and Xeray Systems.

FIRST GUARANTY BANCSHARES, INC. Board of Directors

Left to Right: Edgard R. Smith, III, Jack Rossi, William K. Hood, Vanessa R. Drew, Marshall T. Reynolds, Alton B. Lewis

FIRST GUARANTY BANK Advisory Board

Left to Right: Thomas “Tommy” D. Crump, Britt L. Synco, Dr. Philip E. Fincher, Gil Dowies, III, John D. Gladney, M.D.

First Guaranty Bancshares Annual Report 2022 15

FIRST GUARANTY BANK Officers

Chairman

MARSHALL T. REYNOLDS*
Chairman of the Board

Executive Officers

ALTON B. LEWIS*
President and CEO

ERIC J. DOSCH*
Chief Financial Officer

Senior Vice Presidents

SUSAN I. ANDREWS
Director of Internal Audit

AMANDA W. BARNETT*
General Counsel

KATHERINE K. CAMPBELL
Controller

MARTY B. COLE

MARK J. DUCOING
Chief Deposit Officer

GLENN A. DUHON, SR.
Regional Manager
Abbeville, Louisiana

RONALD R. FOSHEE
Director of Lending Development

KEVIN J. FOSTER
Regional Manager
Denham Springs, Louisiana

SAM J. GALLO
Regional Manager
Bridgeport, West Virginia

C. AARON GLASER
Chief Technology Officer

MIKKI M. KELLEY
Human Resources Department
Manager

WILLIAM F. LEACH
Chief Information Officer

JORDAN M. LEWIS
Texas Area President

MICHAEL MINEER
Mideast Area President

JANE A. MUEHLBAUER

DANIEL W. PACK
Regional Manager
Vanceburg, Kentucky

MICHAEL E. PARHAM
Construction/Facilities

CHRISTOPHER W. PARR

COBY L. PENNINGTON
Chief Information Security Officer

GREGORY P. PRUDHOMME
Regional Manager
Central Louisiana

CRAIG E. SCELFO
Regional Manager
Ponchatoula & St. Tammany,
Louisiana

DESIREE B. SIMMONS
Chief Administrative Officer

EVAN M. SINGER
Chief Mergers & Acquisitions
Officer

J. RICHARD STARK
Operations

JASON M. TURNER

RANDY S. VICKNAIR
Chief Lending Officer

CHRISTY L. WELLS
Regional Manager
Hammond, Louisiana

MATTHEW B. WISE
Chief Credit Officer

Vice Presidents

BRENDA A. BRISCOE

DARRYL P. BOUDREAUX

CHERYL Q. BRUMFIELD

CHRISTINA M. CARTER

AMMON L. COOPER

LOUIS J. CUSIMANO, JR.

VIKKI W. DUPAQUIER

RONALD W. EDMONDS

DENISE D. FLETCHER

CRAIG E. HRIBLAN

MATTHEW P. HUDNALL

ANTHONY S. HUGHES

SHIRLEY P. JONES

JOELLEN K. JUHASZ
BSA Officer

MICHAEL D. KNIGHTEN

TERRIE E. MCCARTNEY

COLTON C. MCDANIEL

MARY T. MAYO

LISA A. MUSGRAVE

JASON D. NORMAND

STEVEN F. OSMAN

SCOTT B. SCHILLING

AMBER L. SMITH

MARSHA V. SPRING

LISA K. STOKER

JOHN A. SYNCO

LAURYN H. WAITS

Assistant Vice Presidents

MIRANDA M. DERVELOY

SUSAN M. DESOTO

MICHELLE M. DIONNE

LANDA G. DOMANGUE

VANESSA R. DREW*

LUDRICK P. HIDALGO

LESLIE A. HINZMAN

DONNA S. HODGES

MARTIN R. HOLIFIELD

SARAH E. JENKINS

KEITH T. KLINE

LAURA L. LACOSTE

DANIEL L. LOE

CATHERINE E. MATHES

NICOLE M. MOUTON

PAMELA R. NORMAND

RAHUL R. PATEL

AREEB RASHIB

NIEKITSHA S. RIDLEY

KRISTY ROBERTS

CHANYON O. ROBINSON

DONNA D. SCAMARDO

STACY J. THOMPSON

Officers

MANDI B. AGUILLARD

CALVIN P. DUCOTE

JEANNETTE N. ERNST

KRISTIN M. WILLIAMS

*Officers of both First Guaranty Bank and First Guaranty Bancshares, Inc.

FIRST GUARANTY BANK Performance Graphs

Total Assets
(in millions)

1993

1998

2003

2008

2013

2018

2019

2020

2021

2022

$ 159

$ 245

$ 485

$ 871

$1,436

$1,817

$2,117

$2,473

$2,878

$3,151

First Guaranty Assets
have increased
1,882% since 1993.

Tangible Common Equity [3]
(in thousands)

Tangible Common Equity
(in thousands)

1993

1998

2003

2008

2013

2018

2019

2020

2021

2022

$ 9,005

$ 17,376

$ 43,557

$ 61,429

$ 80,033

$141,108

$146,566

$159,876

$172,880

$184,678

Tangible Common Equity
has increased
$175.7 million since 1993.

[3]Total equity less preferred equity, goodwill and acquisition
intangibles, principally core deposit intangibles, net of
accumulated amortization.

First Guaranty Bancshares Annual Report 2022 17

FIRST GUARANTY BANK Performance Graphs

Net Income
(in millions)

1993

1998

2003

2008

2013

2018

2019

2020

2021

2022

$2.1

$3.7

$7.0

$5.5

$9.1

$14.2

$20.3

$27.3

$28.9

Total Deposits
(in millions)

1993

1998

2003

2008

2013

2018

2019

2020

2021

2022

$ 149

$ 257

$ 376

$ 780

$1,303

$1,630

$1,853

$2,166

$2,596

$2,724

Net Income
(in millions)

Total Deposits
(in millions)

FIRST GUARANTY BANK Performance Graphs

Loans, Net of Unearned Income
(in millions)

1993

1998

2003

2008

2013

2018

2019

2020

2021

2022

$ 105

$ 177

$ 381

$ 606

$ 703

$1,225

$1,525

$1,844

$2,159

$2,519

Investments
(in millions)

1993

1998

2003

2008

2013

2018

2019

2020

$ 30

$ 73

$ 59

$139

$635

$405

$427

$239

2021 $364

2022

$452

Investments [4]
(in millions)

[4] Available for sale securities at fair value, held to maturity at amortized cost.

First Guaranty Bancshares Annual Report 2022 19

FIRST GUARANTY BANK Earnings & Dividends

Earnings

Total Common
Dividends Paid

Cumulative Retained
Earnings (Deficit)*

Notable Events

1993

$2.1 million

$ 200,000

$(4,984,000)

■ Investors purchased $3.6 million of common stock

1994

$1.7 million

$ 601,000

$(3,879,070)

1995

$2.1 million

$ 815,000

$(2,796,000)

■ Investors purchased $337,000 of common stock

1996

$3.3 million

$1,020,000

$ (774,000)

■ Three-for-two stock split

1997

$3.4 million

$1,223,000

$ 1,205,000

1998

$3.4 million

$1,223,000

$ 3,482,000

1999

$3.4 million

$1,316,000

$ 4,473,000

■ Investors purchased $9.6 million of common stock
■ Acquired 13 branches from Bank One of Louisiana
■ Acquired First Southwest Bank

2000

$5.0 million

$1,530,000

$ 5,027,000

■ Gains from sale of acquired branches net of tax totaling $2.8 million

2001

$6.0 million

$1,668,000

$ 8,638,000

■ Acquired Woodlands Bancorp
■ Gains from sale of acquired branches net of tax totaling $1.3 million

2002

$3.5 million

$1,751,000

$10,426,000

2003

$7.0 million

$2,086,000

$13,967,000

2004

$8.6 million

$2,752,000

$19,771,000

2005

$6.0 million

$3,173,000

$23,351,000

■ Four-for-three stock split

2006

$8.4 million

$3,335,000

$28,402,000

2007

$9.8 million

$3,503,000

$34,671,000

■ Acquired Homestead Bancorp

2008

$5.5 million

$3,558,000

$36,626,000

2009

$7.6 million

$3,558,000

$40,069,000

2010

$10.0 million

$3,558,000

$45,203,000

2011

$8.0 million

$3,610,000

$47,650,000

■ Acquired Greensburg Bancshares

2012

$12.1 million

$4,035,000

$53,702,000

■ 10% common stock dividend
■ Dividend rate per share remains $0.16 per quarter

2013

$9.1 million

$4,027,000

$58,102,000

■ Total loans exceeded $700 million
■ 82 consecutive quarterly dividends paid

2014

$11.2 million

$4,027,000

$64,905,000

■ Net income available to common shareholders grew by 28%
■ Retained earnings grew by $6.8 million
■ Total loans reached $790 million

2015

$14.5 million

$4,247,000

$73,445,000

■ 55% Efficiency Ratio
■ Retained earnings grew by $6.8 million
■ 10% common stock dividend
■ Listed in NASDAQ
■ Redeemed SBLF Preferred Stock

FIRST GUARANTY BANK Earnings & Dividends

2016

$14.1 million

$4,870,000

$82,668,000

■ Loans totaled $949 million
■ Focus on Fortress Balance Sheet

■ Grand openings of Bossier City, LA Banking Center
■ Acquisition of Synergy Bank and addition of five new Texas locations
■ New Texas loans of $128.0 million and Texas deposits of $127.0

million

2017

$11.8 million

$5,210,000

$89,209,000

■ 50% ownership in Centurion Insurance Services allowing First Guaranty

to sell insurance products

■ 10% common stock dividend paid to shareholders
■ Set a new record from $949 million in loans to $1.149 billion loans

outstanding at year end

2018

$14.2 million

$5,636,000

$97,786,00

■ Grand opening of Lake Charles, LA Loan Production Office
■ Total loans surpassed $1.2 billion

2019

$14.2 million

$5,803,000

$106,244,000

2020

$20.3 million

$6,234,000

$120,328,000

■ Acquisition of The Union Bank and addition of seven new Louisiana

locations

■ Declared a 10% stock dividend
■ Total assets exceeded $2 billion
■ Completed and opened our new Amite branch office
■ Celebrated openings of Texas branches
■ Installed four ITMs

■ Retained earnings of $57.4 million
■ Strengthened loan loss reserve and strong loan growth
■ Named #1 BEST SMALL BANK IN LOUISIANA AND THE U.S.!
■ Provided 900 PPP loans to small businesses for a total of $111.1

million, assisting 917 small businesses

■ MyFGB app
■ Opened the FGB Center

■ Year-end 10% common stock dividend
■ For the SECOND CONSECUTIVE YEAR named the #1 BEST SMALL BANK

IN LOUISIANA AND THE U.S.!

2021

$25.9 million

$6,393,000

$139,849,000

■ Asset quality increased as Texas Capital Ratio decreased from 11.65%

to 6.56%.

■ Expansion into Mideast Markets
■ MidEast market loans of $64.5 million

■ 118th consecutive quarterly dividend
■ For the THIRD CONSECUTIVE YEAR named #1 BEST SMALL BANK

IN LOUISIANA AND THE U.S.!

■ $3.15 billion Total Assets
■ Over $804,000 in charitable and civic contributions in the

communities FGB serves

■ Texas Loans increased to $333.8 million
■ Texas Deposits increased to $341.4 million
■ MidEast Market loans increased to $210.9 million
■ MidEast Market deposits of $7.5 million

2022 $26.6 million

$6,859,000

$159,546,000

$278.8 million $97,820,000

* Retained earnings have not been adjusted to consider stock splits or stock dividends. This better reflects earnings that have been retained as capital. Retained

earnings is the product of Company earnings less common and preferred dividends. The accumulated deficits in 1993 through 1996 were due to losses incurred
prior to 1993.

First Guaranty Bancshares Annual Report 2022 21

127

9 29

FIRST GUARANTY BANK Banking Locations

WEST VIRGINIA

KENTUCKY

TEXAS

1049205512FIRST GUARANTY BANK Banking Locations

127

LOUISIANA

28
9 29

LOCATIONS

1 Main Office Hammond, LA –

Guaranty Square

2 Hammond, LA – Guaranty West
3 Abbeville, LA
4 Alexandria, LA
5 Amite, LA
6 Benton, LA
7 Bossier City, LA
8 Bunkie, LA
9 Denham Springs, LA
10 Dubach, LA
11 Greensburg, LA
12 Haynesville, LA

13 Hessmer, LA
14 Homer, LA

Independence, LA

15
16 Jennings, LA
17 Kentwood, LA
18 Kentwood, LA – West
19 Lake Charles, LA – Loan

Production Office

20 Marksville, LA – Main Street
21 Marksville, LA – Tunica
22 Montpelier, LA
23 Moreauville, LA
24 Oil City

25 Pineville, LA
26 Ponchatoula, LA
27 Vivian, LA
28 Walker, LA
29 Watson, LA
30 Denton, TX
31 Fort Worth, TX
32 Garland, TX
33 McKinney, TX
34 Waco, TX
35 Bridgeport, WV
36 Vanceburg, KY

First Guaranty Bancshares Annual Report 2022 23

1049205512FIRST GUARANTY BANK ATM/ITM Locations

NORTH LOUISIANA
BENTON, LA
189 Burt Boulevard

BOSSIER CITY, LA
4221 Airline Drive

DUBACH, LA
117 East Hico Street

HAYNESVILLE, LA
10065 Highway 79

HOMER, LA
401 North 2nd Street

OIL CITY, LA
126 South Highway 1

VIVIAN, LA
102 East Louisiana Avenue

CENTRAL LOUISIANA
ALEXANDRIA, LA
1701 Metro Drive

6201 Coliseum Boulevard

BUNKIE, LA
1110 Shirley Road

HESSMER, LA
2705 Main Street

MARKSVILLE, LA
211 East Tunica Drive

711 Paragon Place (Paragon Casino
& Resort)

MOREAUVILLE, LA
10710 Highway 1

PINEVILLE, LA
40 Pinecrest Drive

TEXAS
FORT WORTH, TX
2001 North Handley Ederville Road

WACO, TX
7600 Woodway Drive

ATM LOCATIONS

SOUTH LOUISIANA
ABBEVILLE, LA
799 West Summers Drive

AMITE, LA
100 East Oak Street

1014 West Oak Street

BEDICO, LA
Bedico Supermarket:
28473 Highway 22

DENHAM SPRINGS, LA
2231 South Range Avenue

GREENSBURG, LA
6151 Highway 10

HAMMOND, LA
1201 West University Avenue

2111 West Thomas Street

400 East Thomas Street

North Oaks Medical Center:
4 Medical Center Drive

North Oaks Rehabilitation Center:
1900 South Morrison Boulevard

INDEPENDENCE, LA
455 Railroad Avenue

JENNINGS, LA
500 North Cary Avenue

KENTWOOD, LA
723 Avenue G

LIVINGSTON, LA
(LPMC) Livingston Parish
Medical Center:
17199 Spring Ranch Road

LORANGER, LA
19518 Highway 40

MONTPELIER, LA
35651 Highway 16

PONCHATOULA, LA
500 West Pine Street
ROBERT, LA
Robert’s Supermarket:
22628 Highway 190

WALKER, LA
29815 Walker Road South

WATSON, LA
33818 Highway 16

ITM LOCATIONS

AMITE, LA
632 West Oak Street

BOSSIER CITY, LA
4221 Airline Drive

DENHAM SPRINGS, LA
2231 South Range Avenue

GUARANTY WEST, LA
2111 West Thomas Street

HAMMOND MAIN OFFICE, LA
400 East Thomas Street

KENTWOOD, LA
723 Avenue G

PONCHATOULA, LA
500 West Pine Street

DENTON, TX
2209 West University Drive

FIRST GUARANTY BANK Departments & Locations

GUARANTY SQUARE
(985) 345-7685
(888) 375-3093
400 East Thomas Street
Hammond, LA 70401

APPRAISAL REVIEW
(Left to right)
Front: Starr Bernier, Stevie Vazquez,
Donna Turnage
Back: Patricia Schillace, Luke Orlando,
Jake Schembre, Laura Huszar

First Guaranty Bancshares Annual Report 2022 25

BSA MARKSVILLE
(Left to right)
Front: Cathy Butter, Lucinda Jacobs

BSA MAIN
(Left to right)
Front: Kendra Fairburn, Linda Miller, Kayla Perault
Back: Ludrick Hidalgo, Sharmaine Robertson, JoEllen Juhasz, Christe Feimster

CONSTRUCTION &
FACILITIES MAIN
(Left to right)
Darryl Boudreaux, Mike Parham,
Luke Varisco
Not Pictured: Joseph Ernest

CONSTRUCTION
& FACILITIES
MARKSVILLE
Armenio Magday

COMPLIANCE & LOAN REVIEW
(Left to right)
Front: Allison Duke, Isabel Oliva, Crystal Ward
Back: Megan Braden, Christina Carter, Byron Scullin, Breanna Bankston
Not Pictured: Destiny Bankston

Ordinary People Doing EXTRAORDINARY ThingsCREDIT MAIN
(Left to right)
Front: Claire Bourgeois, Blair Crump, Jane Wear, Lana Quinn, Taylor Lacara, Brianda Robinson
Back: Matt Wise, Louis Cusimano, Josh Madere, Patrick Meyers, Rene Puissegur, Colton McDaniel, Corey Hayden, Ben Lopez
Not Pictured: Madison Matherne, Marvin Cervantes, Christian Baer, Brittanie Wallace

CREDIT TX
(Left to right)
Stacy Dutcher, Ben Golan, Keith Klein
Not Pictured: Adam Smith

CREDIT CARD
(Left to right)
Derhonda Gaines, Jason Wilson, Debbie Dubuisson

First Guaranty Bancshares Annual Report 2022 27

CUSTOMER SUPPORT CENTER
Stairs (Top-Bottom): Ineteanna Hill, Cassandra Brumfield, Devenair Fultz, Cianna Templet, Norma Volkers, Shanara Pope
Front: Laura Ard, Danyelle Green, Angie Alvarado, Angela Grant, Danielle Huff, Matthew Sullivan, Destiny Harris, James Sullivan

DEPOSIT MANAGEMENT & PUBLIC FUNDS
(Left to right)
Front: Brandi Steffek, Holly Tamburello
Back: Thomas Calmes, Mark Ducoing, Phillip Jeanfreau, Steve Osman

EFT SERVICES
(Left to right)
Front: Brooke Garner, Alexa “Lexi” Salpietra, Elisa Costanza
Back: Sandra Hughes, Keith Mills, Brandon Stewart, Richard Stark
Not Pictured: Nicole Jackson, Cecelia Kinchen, Jada Breaux

Ordinary People Doing EXTRAORDINARY ThingsDEPOSIT OPERATIONS
MAIN
(Left to right)
Front: Tinesha Dyson, Tammy
Graves, Shirley Jones, Lori Lloyd,
Stefanie Addison
Back: Matthew Murphy,
Betty Plauche, Tracey Robertson,
Kim Fletcher, Amanda Johnson,
Christina Lacara
Not Pictured: Glenda Saucier

EXECUTIVE
(Left to right)
Alton Lewis, Kristin Williams, Vanessa Drew, Amanda Barnett

First Guaranty Bancshares Annual Report 2022 29

FINANCE MAIN
(Left to right)
Front: Camryn Woods, LaQuita Johnson, Karli Bishop, Katherine Campbell, Jessica Maxwell
Back: Michael Moye, Jacob Anthon, Eric Dosch, Rhesha Lamonte, Chandra McKinney, Donna Scamardo
Not Pictured: Nolan Hall, Diane Lanier, Lainey Roberts, Jannifer Knighten

FINANCE
MARKSVILLE
(Left) Calvin Ducote

FRONTLINE MAIN
(Left to right)
Front: Vickie Vanlandingham, Janay Cowart, Brianna Lowe, Maggie Hovsepian
Back: Ashley Johnson, Jeannette Ernst, Richard Hamilton, Edrea Jackson
Not Pictured: Ciara Hart

HUMAN RESOURCES MAIN
(Left to right)
Front: Landa Domangue, Blair Wascom
Back: Rudi Perrault, Mandi Aguillard,
Mikki Kelley, Christin Bacile

HUMAN RESOURCES
MARKSVILLE
Jason Normand

Ordinary People Doing EXTRAORDINARY ThingsINFORMATION
SECURITY MAIN
(Left to right)
Coby Pennington,
Samantha Petracek

INFORMATION
SECURITY WACO
(Left) Kenny Wilson

INTERNAL AUDIT MAIN
(Left to right)
Nicole Ferrante, Susan Andrews, Hannah White, Michelle Dionne

INFORMATION TECHNOLOGY MAIN
(Above, Left to right)
Front: Nick Barker, Nicole Brown, Tori Mac, Wendy Kinchen
Row 2: Lake Newell, Merill Magday, Dawn Cortez, Bill Leach,
Row 3: Makiel Peters, Tyler Matherne, Aaron Glaser,
David Couvillon, Austin Grant
Back: Jesper Kvist, Mark Montalbano, Lee Livaudais
Not Pictured: Star Lala

INFORMATION TECHNOLOGY MARKSVILLE
(Left) Tyler Roy

INTERNAL AUDIT
TX
Nancy Rodriguez

First Guaranty Bancshares Annual Report 2022 31

LEARNING AND DEVELOPMENT
NORTH LA
Kendra Phipps, Amber Smith

LEARNING AND DEVELOPMENT MAIN
(Left to right)
Front Vikki Dupaquier, Miranda Derveloy
Back: Mary Mayo, Summer Alessi, Wil Brown, Casie Qualls

LENDING MAIN
Randy Vicknair, Melanie Gottschalck

LENDING MAIN
(Left to right)
Front: Christy Wells, Vickie Jenkins, Catherine Egnew
Back: Christopher Geraci, Scott Schilling, Mike Knighten

Ronnie Foshee

Ordinary People Doing EXTRAORDINARY ThingsLOAN OPERATIONS MAIN
(Left to right)
Front: Kellie DeMarco, Virginia Lambert, Caprice Abed, Karleigh Bourgoyne, Catherine Mathes, Lauryn Waits, Denise Rehage, Heather Liuzza, Chelsi Overton,
Sarah Jenkins
Middle: Laura Lacoste, April Coker, Sarah Matthews, Angela Fields, Kim Drury, Emily McIntyre, Amy King, Caitlyn Cline
Back: Darlene Albert, Elizabeth Roy, Julie Carmo, Donna Hodges, Luke Lavergne, Krystal Gregory, Brittni Pareti, Connor Porta
Not Pictured: Sarah Sheridan, Melissa Nevels & Sharon Rogers

LOAN
OPERATIONS
ALEXANDRIA
Leah Hunter

LOAN OPERATIONS MARKSVILLE
Melissa Small, Stephanie Moses

LOAN OPERATIONS TX
(Front, left to right): Jenny Bae, Jan Brownd
(Stairs, bottom to top): Janice Muse, Linda Kolosey, Lisa Stoker

First Guaranty Bancshares Annual Report 2022 33

MERGERS AND ACQUISITIONS
Evan Singer, Kristy Petit

MORTGAGE
MARKSVILLE
Becky Sellers

MARKETING
Stairs (Top to bottom): Allison Ryan, Lauren Lee, Kay Kearney
Front (Left to right): Desiree Simmons, Kailey Aveton, Carl Duplessis

MORTGAGE MAIN
(Left to right)
Front: Kyleen Tulion, Jozey Pfister, Christine Zeringue
Back: Anna Borgstede, Bridgette DeMars, Brandon Wear, Kimberely Lecumberri
Not Pictured: Martin Holifield, Melissa Duchmann

Ordinary People Doing EXTRAORDINARY ThingsONLINE BANKING
(Left to right)
Front: Melinda Lenz, Tasha Jackson,
Julie Nevels, Richard Stark
Not Pictured: Madison Gatlin

REGIONAL EXPERIENCE AND
OPERATION MANAGERS
(Left to right)
Front: Hali Lacour, Marsha Spring,
Glenda Graham
Back: Shane Hughes, Chanyon Robinson,
Daniel Prince, Daniel Loe, Nicole Mouton,
Areeb Rashid, Steve Osman

SPECIAL ASSETS -
MARKSVILLE
Joann Moreau

SPECIAL ASSETS
(Left to right)
Christian Baer, Rhonda Schliegelmeyer, Lee Ann Sibley,
Luke Hammonds

First Guaranty Bancshares Annual Report 2022 35

ABBEVILLE
(337) 893-1777
799 West Summers Drive
Abbeville, LA 70510

ALEXANDRIA
(318) 443-8994
1701 Metro Drive
Alexandria, LA 71301

(Left to right)
Front: Ruth Huron, Kayla Gaspard, Ashley Prince, Gretchen Meaux
Back: Cody Gil, Diane Frederick, Rhesa Decuir, Glenn Duhon, Amy Broussard, Lisa Guidry,
Saxon Fuqua

(Left to right)
Front: Pamela Normand, Nolan Spillers
Back: Lisa Hernandez, Rachel Hazelton, Jeanette Brown, Lakisha Brossette, Jajuanna Pardue

Ordinary People Doing EXTRAORDINARY ThingsAMITE
(985) 748-5111
632 West Oak Street
Amite, LA 70422

BENTON
(318) 965-2221
189 Burt Boulevard
Benton, LA 71006

(Left to right)
Front: Heather Williams, Roxane Williams, Shana Wells
Back: Crystal Barnes, Brooke McNabb, Jeremy Adamson, Ike J Long II, Saleatha Gordon,
Stephanie Campo

(Left to right)
Front: Monique Rochelle, Kendria Smith
Back: Cori Scott, Tamantha Boatman, Kristy Schuldt, Donna Cummings

First Guaranty Bancshares Annual Report 2022 37

BOSSIER CITY
(318) 383-5234
4221 Airline Drive
Bossier City, LA 71111

(Left to right)
Front: Janet Parmer, Mildred Williams, Lynn Henry
Back: Kristi Harmon, Pam Coyote, Jorge Caal, Matt Hudnall, Allison Gaston

E B

A N C H
C O M I N G S O O N !

R V I C

L S

BRIDGEPORT, WEST
VIRGINIA
Loan & Deposit Production Office

(Left to right)
Front: Lisa Musgrave, Wendy Wayne, Lisa Blackwell, Diana Kinder
Back: Craig Hriblan, Jason Turner, Sam Gallo, Chris Parr

Ordinary People Doing EXTRAORDINARY Things(Left to right)
Front: Kim Ferguson, Rebekah Turner
Back: Casey Brouillette, Josiah Blood, Jadelyn Hall

BUNKIE
(318) 346-4981
1110 Shirley Road
Bunkie, LA 71322

DENHAM SPRINGS
(225) 791-7964
2231 South Range Avenue
Denham Springs, LA 70726

(Left to right)
Front: Kailey Dolan and Michelle O'Quin
Middle Sitting: Katie Naquin, Kathie Alimia, Ashley Oliver
Standing: Sharon Moore, Reynold Lagarrigue, Clint Trant
Not pictured: Kevin Foster

First Guaranty Bancshares Annual Report 2022 39

DENTON
(940) 383-0700
2209 West University Drive
Denton, TX 76201

DUBACH
(318) 777-3461
117 East Hico Street
Dubach, LA 71235

(Left to right)
Jerad Boardman, Leslie Hinzman, Monica Windham, Matthew Jefferson
Not Pictured Karen Stevenson

(Left to right)
Front: Iesha Johnson, Angela Brown
Back: Kristy Roberts, Cassie Roberson, Jeremy Dubose
Not Pictured: Diane Shoemaker

Ordinary People Doing EXTRAORDINARY ThingsFORT WORTH
(817) 502-6611
2001 North Handley Ederville Road
Fort Worth, TX 76118

(Left to right)
Front: Aaron Coleman, Hailey Hamilton
Back: Julius Boose, Yvette Rachal, Amber McKinley
Not Pictured: Teresa Ortiz

GARLAND
(214) 227-4550
603 Main Street #101
Garland, TX 75040

(Left to right)
Front: Amy Turner, Jennifer Petty
Back: Perla Alvizo, Ross Matthews, Sara Wayne, Brenda Briscoe

First Guaranty Bancshares Annual Report 2022 41

GREENSBURG
(225) 222-6101
6151 Highway 10
Greensburg, LA 70441

(Left to right)
Front: Melissa Smith, Trella Page
Middle: Holly Mulkey, Corten Coleman, Tyraneisha Burton
Back: Beau Brumley, Paige Rushing

HAMMOND – GUARANTY WEST
(985) 375-0371
2111 West Thomas Street
Hammond, LA 70401

(Left to right)
Front: Epris Mcknight, Tiffany McCallister, Angel Cox
Back: Shavonda Watts, Callie Guillot, Latonia Cotton, Ciara Hart

Ordinary People Doing EXTRAORDINARY ThingsHAYNESVILLE
(318) 624-1171
10065 Highway 79
Haynesville, LA 71038

HESSMER
(318) 563-4583
2705 Main Street
Hessmer, LA 71341

(Left to right)
Front: Candice Cripe, Caree Claunch
Back: Brooke Scott, Angela Edwards, Pennie Smith, Tammy Burley

(Left to right)
Rikki Deaville, Kathy Ponthieux, Ariel Deming, Nyika Moore

First Guaranty Bancshares Annual Report 2022 43

HOMER
(318) 927-3000
401 North 2nd Street
Homer, LA 71040

INDEPENDENCE
(985) 878-6777
455 West Railroad Avenue
Independence, LA 70443

(Left to right)
Front: Niekitsha Ridley, Candi White, Tristan Lowe, Caree Claunch
Middle: Debbie Spigner, C'Nya Anderson, Shanya Cowser
Back: Ron Edmonds, Angela Thomas, Laura Pair, John Synco

(Left to right)
Front: Elizabeth McKinzie, Karen Paille, Peggy Garon
Back: Natalia Rossano, Cheryl Brumfield, Caitlin Doty
Not Pictured: Kay Luke

Ordinary People Doing EXTRAORDINARY Things(Left to right)
Front: Georgette Miller, Tyler Savoie
Back: Brenda Mallet, Gwen Pete, Amanda Crochet

JENNINGS
(337) 824-1712
500 North Cary Avenue
Jennings, LA 70546

KENTWOOD
(888) 375-3093
301 Avenue F
Kentwood, LA 70444

New Kentwood branch rendering

(Left to right)
Front: Madison Wood, Connie Butler
Middle: Allison Keating, April McCray
Back: Destiny Lindsey, Lisa Rushing, Chris Geraci, Jeremy Addison
Not Pictured: Lindsey George

First Guaranty Bancshares Annual Report 2022 45

KENTWOOD WEST
(985) 229-6101
723 Avenue G
Kentwood, LA 70444

LAKE CHARLES:
LOAN PRODUCTION OFFICE
(337) 824-1712
4740 Nelson Road, #320
Lake Charles, LA 70605

(Left to right)
Ashley Ellzey, Ruby Carter, Cara Garner

Sitting: Amber Conroy
Standing: Rahul Patel

Ordinary People Doing EXTRAORDINARY ThingsMARKSVILLE
(318) 253-4531
305 North Main Street
Marksville, LA 71351

(Left to right)
Front: Greg Prudhomme, Sheila Smith, Jana Joshua, Ronald Chatelain, Colleen McGehee
Middle Cynthia Wyatt, Kristen Nelson, Ann Tassin
Back: Elizabeth Lemoine, Katherine Scallan, Ronny Green Jr.

Marksville Legal:
Samantha Lachney
Not Pictured:
Amanda Theriot

MARKSVILLE - TUNICA
(318) 253-9835
211 East Tunica Drive
Marksville, LA 71351

(Left to right)
Front: Nickie Dauzat, Mandy Trotter, Angel Williams
Back: Carolyn Bordelon, Colton Campbell, Natalie Raymond,
Shelby Marsh
Not Pictured: Catherine Normand

Tunica - Tag & Title/Insurance
(Left to right)
Minnie Deshotel, Pamela Landry

First Guaranty Bancshares Annual Report 2022 47

MCKINNEY
(972) 562-1400
8951 Synergy Drive, #100
McKinney, TX 75070

(Left to right)
Front: Deborah King, David Tidwell
Back: Gustavo Melendez
Not Pictured: Callistus Amajoyi, Hector Herrera, Ayan Musharraf

Jordan Lewis

MONTPELIER
(225) 777-4304
35651 Highway 16
Montpelier, LA 70422

(Left to right)
Betsy R. Ehret, Brianna Chaney, Trella Page

Ordinary People Doing EXTRAORDINARY ThingsMOREAUVILLE
(318) 985-2299
10710 Highway 1
Moreauville, LA 71355

OIL CITY
(318) 995-6682
126 South Highway 1
Oil City, LA 71061

(Left to right)
Front: Elizabeth Bordelon, Laura Dufour
Back: Catherine Normand, Susan Desoto, Melinda Fontenot, Courtney Lacombe
Not pictured: Lakin Lemoine

(Left to right)
Front: Emma Rolling, Dana Moore
Back: Jeremy Hartley, Tina Gay, Samantha Dupree

First Guaranty Bancshares Annual Report 2022 49

PINEVILLE
(318) 641-7564
40 Pinecrest Drive
Pineville, LA 71360

PONCHATOULA
(888) 375-3093
500 West Pine Street
Ponchatoula, LA 70454

(Left to right)
Chaston Price, Evelyn Pickney, Robyn Patterson, Taylor Peavy
Not pictured: Monchondria Allen

(Left to right)
Front: Joan Thibodeaux, Lori Robertson, Mallory Leeper, Amiee Gervais
Back: Craig Scelfo, Laura Serpas, Denise Fletcher, Misty Shaffett, Elliot Goorley

Ordinary People Doing EXTRAORDINARY Things(Left to right)
Front: Jane Muehlbauer, Ashley White, Jodie Collier, Tammy Highfield
Back: Mike Mineer, Adam Christy, Marty Cole, Ammon Cooper
Not Pictured: Dan Pack

VANCEBURG
15 Second Street
Vanceburg , KY 41179
(606) 375-4604

VIVIAN
(318) 375-3202
102 East Louisiana Avenue
Vivian, LA 71082

New Vivian branch rendering

(Left to right)
Front: Caroline Harville, Stacy Thompson
Back: Samantha Berry, Glenda Sepulveda, Madison Mosley, Diana Cash

First Guaranty Bancshares Annual Report 2022 51

WACO
(254) 399-0700
7600 Woodway Drive
Waco, TX 76712

WALKER
(225) 664-5549
29815 Walker Road South
Walker, LA 70785

(Left to right)
Pam Lambert, Jessica Garcia, Amy Dennis, Terrie McCartney

(Left to right)
Front: Sheila Lofton, Angela Wales
Back: Kylie Sibley, Joey Amadeo, Joy Christman

Ordinary People Doing EXTRAORDINARY ThingsWATSON
(225) 665-0400
33818 Highway 16
Denham Springs, LA 70706

(Left to right)
Bill Smith, Haleigh Brooks, Emily Glaviano, Kay Luke
Not Pictured: Mary Kutej

Our Mission
The mission of First Guaranty Bank and First Guaranty Bancshares, Inc. is
to increase the shareholder value while providing financial services for and
contributing to the growth and welfare of the communities we serve.

We believe that each customer is our most important customer and should
be treated as such. We endeavor to provide levels of service that exceed the
expectations of all our customers.

We believe that our employees are our greatest asset, as demonstrated in their
professionalism and dedication. We encourage open communications and strive
to cultivate an entrepreneurial environment in which our employees feel highly
responsible for the performance of the bank, and an environment where they will
contribute new ideas and innovations that will help us excel.

We seek to enhance stockholder value by continually improving the quality of
earnings, growth in earnings, return on equity and dividend payout.

We strive to be socially responsible corporate citizens by supporting community
activities and encouraging our employees to be actively involved in our
communities. We are committed to the success of the communities that we
serve, the same communities our employees call home. Our goal is to participate
in making our communities better places in which to live, work and play.

First Guaranty Bancshares Annual Report 2022 53

Emerging Leader Development Program

The Emerging Leader Development
Program was developed in early
2022 and is designed to enhance
the leadership skills of high potential
employees and future leaders within
the bank.

The goal of the program is for each participant to
increase their knowledge bank-wide and to help identify
their own strengths and opportunities when it comes
to leadership. Throughout the course of the year,
participants meet once a month to hear from various
departments and bank executives. They engage with
members of senior management, volunteer in the
community, and participate in team building exercises.

Upon completion of the program, participants will
have learned principles of public speaking, be able to
demonstrate behaviors that influence and inspire others
and be able to apply those skills for their own personal
and professional development.

Ordinary People Doing EXTRAORDINARY Things

Community contributions are a priority budget item
for First Guaranty Bank. Listed are the institutions,
organizations, and associations that we have assisted
with contributions and sponsorships during 2022.

At First Guaranty Bank, our goal is to help improve the communities we serve. In addition to monetary
contributions, our employees dedicated time, energy, and effort to many of these worthy causes.
First Guaranty Bank contributions for community support
exceeded $638,108 in 2022.

Ordinary People Doing EXTRAORDINARY Things

Ammon Cooper presented a contribution to President Craig
Stanfield for the Tollesboro Lions Club.

First Guaranty Bank presented a contribution to Live After 5. Front row, left to right:
Mayor Bob Zabbia, Faith Peterson, Rhonda Sheridan, Lauren Lee, Melissa Kairdolf,
Back row, left to right: Joe Benson, Chad Troxclair, Steven Portier, Elliot Goorley.

First Guaranty Bank presented a contribution to Hope House. Left
to right, Jajuanna Pardue, Robyn Patterson, and Chanyon Robinson.

Left to right: Rikki Deaville presented a contribution to Angela
Dixon, Director/Secretary of Save CenLA, Inc.

Photo, previous page: Kristin Williams presented a
contribution to Melissa Griffin, Executive Director for an
exhibit sponsorship at the Hammond Regional Arts Center.

First Guaranty Bank presented a contribution to Loranger High School Lady
Wolves Softball Program. Left to right: Cheryl Brumfield, Makayla Watts and
Claire Pelloat, LHS Softball Players and Nicole Pelloat of the Loranger High
School Lady Wolves Softball Booster Club..

Ordinary People Doing EXTRAORDINARY ThingsAdam Johnston presented a contribution to Myron Manning,
Head Coach of Bossier City 9U All Star baseball team.

Keisha Millier presented a contribution to Tyson Hager, student at Welsh High
School.

First Guaranty Bank presented a contribution to Launch. Left to right: Ludrick
Hidalgo, Angela Wales, Launch board member, Jennifer Rizzi, Sharon Moore,
Michelle O’Quin, Kathie Alimia, and Dr. Chantelle Varnado, Director of Launch.

First Guaranty Bank contributed to Kiwanis Club of Denham
Springs for the 2nd Annual Clay Shoot. Left to right: Bill Quirk,
Melanie Gottschalck, Clint Trant, Reynold Lagarrigue.

First Guaranty Bancshares Annual Report 2022 57

First Guaranty Bank presented a contribution to Kati LeBreton, Assistant Director of Development and Karley Fontenot, Events & Stewardship
Coordinator for a contribution to the SLU Alumni.

Caree Bailey presented a contribution to
Chris Brooks, Principal for the First Guaranty
Bank Gold Star Program to help build moral
and leadership skills among their staff at
Haynesville High/Jr. High School.

Carl Duplessis presented a contribution to Richard Graves for Northshore Arts Foundation.

Photo at left: Crystal Ward presented a contribution to
Na’Tisha Natt- Director of Community Engagement for the
BizTech Challenge offered through Nexus Louisiana.

Ordinary People Doing EXTRAORDINARY ThingsGeorgette Miller presented a contribution
to Clare Coleman, Library Director of Jeff
Davis Parish Library for the Summer Reading
Program.

First Guaranty Bank presented a contribution to Christmas on Caddo. Left to right: Dana Moore,
Glenda Graham, Casey Hartley, President of COC, Jeremy Hartley, Emma Rolling and Samantha
Dupree.

Caree Claunch presented a contribution to Lee
Simms, Principal of Homer High School for the
Danceline and FFA Leadership.

Desiree Simmons presented a contribution to Brian Shirey for the
Hammond BBQ Cookoff.

Cheryl Brumfield and Peggy Garon presented a contribution to Dr. Alecia Cyprian,
Chief Executive Officer of Southeast Community Health Systems for the Virtual
Community Baby Shower event.

First Guaranty Bancshares Annual Report 2022 59

Cheryl Brumfield presented a contribution to Carmella Coslan,
Bookkeeper for Mater Dolorosa Catholic School and Mater
Dolorosa Catholic Church for the sponsorship at the Annual
Steak Dinner.

Desiree Simmons presented a contribution to Dr. Rick Settoon, General Manager for
the Southeastern Channel.

Adam Johnston and Kendra Durham presented a contribution
to Terrace Marshall’s youth football camp that was free to
athletes ages 6-18 for Bossier Parish and its surrounding
areas.

Photo at left: Caree Claunch presented a contribution to
Heather Brooks Principal, for the First Guaranty Bank Gold
Star Program to help build moral and leadership skills
among their staff at Haynesville Elementary School.

Ordinary People Doing EXTRAORDINARY Things

Jason Wilson presented a contribution to Patrick Coudrain
for the Kiwanis Trivia night sponsorship.

Brenda Briscoe presented a contribution to Gwendolyn H. Daniels, Corporate Sponsor
Chair for NAACP.

Kristina Harmon presented a contribution to Sophia Herron and
Jessica Miller for the annual luncheon with the Gingerbread House in
Shreveport.

Pamela Normand and Jajuanna Pardue presented a contribution to Jeffrey
Matthews, Coordinator for Hope House of Central Louisiana.

First Guaranty Bancshares Annual Report 2022 61

Keisha Miller presented a contribution to Lynn Klumpp,
Secretary to the Chief of Police for the Jennings Police
Department.

Photo at right: Colton Campbell presented a
contribution to Alyssa Courville, Beta Club Member
for the Marksville High School Beta Club.

Cheryl Brumfield presented a contribution to Coach Lee Vernon Willie, Jr.
for the renewal of the Baseball Game Day sponsorship at Independence
High Magnet School.

Photo at right: First Guaranty Bank presented a
contribution to Village of Tangipahoa for the book bag
giveaway event. Left to right: Sheila Martin, Mayor
Village of Tangipahoa, Chris Geraci, and Allicie Briggs:
Town Clerk Village of Tangipahoa.

Cheryl Brumfield presented a contribution to Courtney Silewicz,
Admissions Director, for the Bubbles, BBQ and Bingo Event at St. Thomas
Aquinas Regional Catholic High School.

Ordinary People Doing EXTRAORDINARY ThingsBrandi Steffek presented a contribution to Melinda Blache for Teachers
Appreciation Day at Woodland Park Magnet School.

Danielle Willie and Brandon Wear presented a contribution to Jivka
Duke for a contribution to the School of Music at Southern Louisiana
University.

First Guaranty Bank presented a contribution to the Athletic Department
of St. Mary’s Assumption School. Left to right: Melinda Kidder Fontenot,
Blaine Dauzat, St. Mary’s School Principal, and Steve Osman.

Jajuanna Pardue presented a contribution to Christy Close, Committee member and AHS seniors for the Trojans Travels Senior Night.

First Guaranty Bank presented a
contribution to Fifth Ward Community
Center. Left to right: Ronald Chatelain,
Elizabeth Lemoine, Sheila Smith,
Colleen McGehee, Nathan Bordelon,
President, Diane Bordelon, Treasurer,
Calvin Ducote and Cynthia Wyatt.

Chris Geraci presented a contribution to
Coach Antonio Richardson, for the Baseball
program at Kentwood High School.

Denise Fletcher presented a contribution to
school board members Rose Dominguez and
Sandra Bailey Simmons for the 2022 Senior
Breakfast at Ponchatoula High School.

Chris Geraci and Director Ann Smith presented a
contribution to Coach Brown, Track coach for track
uniforms at Kentwood High School.

Photo below: Casie Qualls and Kristin Williams presented a contribution to City of Hammond’s Recreation Department for the Adult Leisure Program.

Ordinary People Doing EXTRAORDINARY Things

First Guaranty Bank presented a contribution to Independence Learning Academy Back to School Bash. Left to right: Mrs. Donnis McIntyre, Principal of
Independence High Magnet School, Ms. Jamie Mills, Principal of Independence Learning Academy, Cheryl Brumfield, Casse Whatley and Karen Phillips,
Junior Auxiliary Representatives, Ms. Alexa Hookfin, Coordinator of Student Services Child Welfare and Attendance of the Tangipahoa Parish School
System, Michelle Gallo, CEO/Executive Director, Crime Stoppers of Tangipahoa, Inc.,Rochelle Washington, Owner of A-Mazing Kidz Early Learning Center,
LLC; Town of Independence Chief of Police Frank Edwards; Town of Independence Mayor Jim Paine.

Chanyon Robinson presented a contribution to Lisa Guidry, CADA Victim’s
Advocate for Jeff Davis CADA Taste-N-Tell.

Donna Hodges presented a contribution to Katie Landry and Bailey
Derveloy for Albany High School Softball.

Denise Fletcher presented a contribution to Brigette Delatte
Hyde, for Ponchatoula Project Graduation.

Brandi Steffek presented a contribution to Carolyn Strahan with Greenville Park
Leadership Academy for Teacher’s Appreciation.

First Guaranty Bancshares Annual Report 2022 65

Courtney Tramiel presented a contribution to
Charlotte Moczygemba, Business Development
Director for the Bossier Parish Chamber of
Commerce, Louisiana State Capital Day sponsor.

Kristin Williams presented a contribution to
Coach Darrion Buckels for the Hammond Magnet
High School football team.

Adam Johnston presented a contribution to Justyn Dixon, President, for the North Louisiana
Economic Partnership.

Jason Wilson presented a contribution to Dr. Ann Carruth, Dean of College
of Nursing & Health Sciences for the Canine’s and Cupcakes event.

Gretchen Meaux, Crystal Ward, and Chanyon Robinson presented a
contribution to Brian Ford, Director, for Vermilion Boys & Girls Club.

Ordinary People Doing EXTRAORDINARY ThingsJosiah Blood and Colton Campbell presented a contribution to Jessica
Hayes, Committee member for the Avoyelles Project Graduation.

Vanessa Drew presented a contribution to Chris Fox, President and Sean
Jones, Attendee, for SOARR, Inc.

Denise Fletcher presented a contribution to Mr. Charles Coe,
Commander for Post #47, for American Legion Post #47 for 2
boys to attend Boys State.

Kristin Williams presented a contribution to Erin Fleming and
Monica St. Cyr for Hammond Eastside Magnet School’s Fall
Festival event.

Photo at right: Cheryl Brumfield and Peggy Garon
presented a contribution to Christopher McKinney, IVFD
and Event Sponsor for the Independence Volunteer Fire
Department for the Smokin’ On The Tracks Event.

Chris Geraci and Director Ann Smith presented a contribution to Football
Coach Jonathan Foster for Kentwood High School Football.

Randy Vicknair presented a contribution to Dr. Tará Lopez, Dean and
Professor of Marketing for the Southeastern Louisiana University College
of Business Partnership.

Chris Geraci presented a contribution to Evelyn Williams, Town of
Kentwood for the Book Bag and School Supply Giveaway.

Photo below: First Guaranty Bank presented a contribution to Mothers Against Drunk Driving, MADD. Left to right: Paula Zachary -Tangipahoa Alcohol
& Drug Abuse Council (TADAC), Courtney Lachney, Sunny Wall House, Affiliate Executive Director and Ludrick Hidalgo.

Ordinary People Doing EXTRAORDINARY Things

Angela Wales and Ludrick Hidalgo presented a contribution to Malayne
Sharpe, Kiwanis President, for the Kiwanis Clay Shoot event.

Denise Fletcher presented a contribution to Christie Atkins, Ponchatoula
High School Assistant Principal for the 2022 Senior Breakfast.

Cheryl Brumfield presented a contribution to Andrew Truxillo, Chairman
for the Italian Festival.

Jason Wilson presented a contribution to Rocky Brown and fellow
nurses from Mary Bird Perkins Center of Hammond for the Geaux
Yoga event.

Alton Lewis presented a contribution to Athletic Director, Jay Artigues and
Assistant Athletic Director for Athletic Development, Allie Crain, for the
Southeastern Athletic Department.

First Guaranty Bancshares Annual Report 2022 69

Leslie Hinzman and Jerad Boardman presented a contribution to Pat Smith, CEO, for Serve Denton.

Melanie Gottschalck presented a contribution to Michelle Biggs and
Olivia Graziano for Southeastern Louisiana University Alumni.

Cheryl Brumfield presented a contribution to Jeanette Patanella for the
Independence Summer Baseball Program.

Jason Wilson presented a contribution to Ryan Barker for Chappapeela
Sports Park sponsorship.

Ordinary People Doing EXTRAORDINARY ThingsRaeuntraque Anderson presented a contribution to PHS Basketball Coaches & freshman
player Jayden Walker for the Ponchatoula High School Boys Basketball Team.

First Guaranty Bank presented a contribution to Elton Junior High Jr. Beta students. Left
to right: Matilda Briscoe, Kaley LeMoine - President, Georgette Miller, Caitlin McKay, and
Mylee Chevallier.

Christy Wells presented a contribution to Hudson
and Emery Tantillo for the St Tammany Parish Junior
Livestock Association.

Jeremy Adamson presented
a contribution to Athletic
Director/Girls Head
Basketball Coach Fekesha
Pierre and Principal Travis
Ford for the Girls’ Basketball
team at Amite High School.

Laura Pervez presented a contribution to Amaya
Gervais - Ponchatoula Lady Green Waves Basketball
for the Lady Waves Ponchatoula High School
Basketball sponsorship.

Brandy Moon and Stacy Thompson presented a contribution to Coach John Kavanaugh and
Asst. Coach Myron Manning for North Caddo High School's football team.

Photo at left: Kristin Williams presented a contribution to
Peggy Hoover, Peggy Matheu and Joann Giannobile, for the
FeLions Salute the Lions event.

Photo below: First Guaranty Bank presented a contribution
to East Baton Rouge 4H Foundation. Left to right: Nick Uzee,
EBR 4H Agent, Amy Schulze,4H Helper, Kay Luke, Kylie
Sibley, Joy Christman, Kendra Fairburn, Angela Wales.

Ordinary People Doing EXTRAORDINARY Things

Denise Fletcher presented a contribution to Shannon Aycock, Office
Manager of Ponchatoula Area Recreation District.

Photo at left: Caree Claunch presented a
contribution to Dwayne Woodard, President for
the Annual Lake Claiborne Fireworks Show.

Catherine Egnew presented a contribution to
Coach Christopher Blanchard for the Springfield
High School Baseball team.

Photo at right: First Guaranty Bank presented
a contribution to Simsboro High School for the
FBLA State Competition. Left to right: Back row:
Kemberlin Locks, Vanessa Bautista, Kayden
Sullivan, Danylle Locks, Kaitlin Mercer, Teacher,
Richard Canterbury; Front Row: Helen Fischer,
Jadyn Bradley, Beatriz Hernandez; Not pictured:
Michael Pesnell, Selena Colohua, Julian Escobedo,
Lauryn Vernon.

Melanie Gottschalck presented a contribution to Kati LeBreton to the
SLU Foundation.

First Guaranty Bank presented a contribution to Lewis County High School
FBLA. Left to right: Marty Cole, Ashley White, Kody Willis, FBLA Director, Jodie
Collier, and Tammy Highfield.

Chris Geraci presented a contribution to Baseball Coach Antonio
Richardson and Mayor Roshell Bates for the contribution to the
Kentwood High School Baseball team.

Photo below: First Guaranty Bank contributed to the Acadian Museum
Foundation. Left to right: Rhesa Decuire, Gretchen Meaux, Linda
Woodruff - Member, Diane Frederick, Ruth Huron.

Ordinary People Doing EXTRAORDINARY Things

Evan Singer and Trella Page presented a contribution to Chesterton Frye, Band
Director, and Dr. Kelli Joseph, Superintendent, for the St. Helena Marching Band.

First Guaranty Bank presented a contribution to Loranger High
School Football Program. Left to right: Cheryl Brumfield, Sam
Messina, Head Football Coach, and Peggy Garon.

Mike Knighten and Scott Schilling presented a contribution to Angelle S Reeves,
Assistant Director of Business and Marketing and Jim Winter, Director for
Columbia Theatre sponsorship.

Photo below: First Guaranty Bank presented a contribution
to the Bordelonville Volunteer Fire Dept. Left to right: Susan
Desoto, Melinda K Fontenot, and James Gaspard, Fire Chief.

First Guaranty Bancshares Annual Report 2022 75

Ordinary People Doing EXTRAORDINARY Things

A
Acadian Heritage & Culture

Foundation, Inc. (Fit for French – 2
Mile Fun Walk)

Albany High School - Softball Fencing
American Legion #47 – 2022 Boys

State

American Legion #141 – Louisiana

Girls State Program

Amite Chamber of Commerce
Amite High School – Championship

and Football Rings
Amite Oyster Festival
Anderson Ray Leto Memorial Fund
Arts and Humanities Council for

Avoyelles – Arts and Music Festival
Sponsor

2022 ASH Trojan Travels – Alexandria
Senior High Graduation Night Event

Avoyelles Council on Aging, Inc. –
Christmas Lunch and Bingo, Box
Fans, Senior Fun Day

Avoyelles High School – Diamond

Sponsor and Improvements

Avoyelles High School – High School

Spirit Squad

Avoyelles Parish Schools – Back to

School Supplies

Avoyelles Parish School Board –
Avoyelles High Football Team,
Plaucheville Elementary Beta Club,

Marksville High Baseball Team,

Bunkie Baseball Sign

Avoyelles Public Charter School –

Project Graduation 2022
B
Benton High School – Boys Soccer

Gold Level Sponsor

Bordelonville Volunteer Fire
Department – BBQ Dinner
Fundraiser

Bossier Chamber of Commerce –

Bossier Youth Leadership

Bossier Little League – Baseball and

Softball

Bossier Parish School Board – Airline

High Basketball

Boy Scouts of America
Boys and Girls Club of Acadiana
Bridgeport High School
Robert C. Byrd High School –

Basketball Sponsorship
C
CADA – Taste n Tell Chef Team
Cedar Creek School
Town of Cheneyville – Founders Day

Festival

Chisholm Trail RSVP, Inc. – Golf

Tournament Sponsor

Christmas on Caddo – Platinum

Sponsor

Claiborne Academy – Championship

Rings, Booster Club, Golf
Championship Rings, Football and

Gym Billboards

Claiborne Chamber of Commerce –
Annual Banquet Platinum Sponsor

Claiborne Charity Inc. – Silver

Sponsor Claiborne Charity Classic
Claiborne Parish Police Jury – PJAL
Region IV Annual Meeting Sponsor

Claiborne Parish School Board –

Learning Space

CLHG Avoyelles LLC – Hope Crusader

Sponsor for Pink October

Code 9 Project Inc. – Tangipahoa

Sheriff’s Department

College of Nursing and Health

Sciences – Canines & Cupcakes
Colonial Nursing and Rehabilitation

Center LLC – Nursing Home
Resident Gifts

Colors of the World Inc – Holi Festival

Sponsor

Commission for Women of Bossier

City Inc. – Health & Advocacy
Luncheon

Community Renewal International Inc.

– Croquet Classic Fundraiser

Town of Cottonport
Crime Stoppers of Shreveport –

Burgers for the Badge

Crime Stoppers of Tangipahoa –

Cabernet Sauvignon Sponsorship

Louis Cusimano, Jr. – Hammond

Football Officials
D
Delta Waterfowl Foundation –

Banquet Sponsor

Denham Springs High School – Boys

Soccer

Melissa Doice Hope for the Miracle

Race Inc.

Dubach Restoration and

Beautification Organization –
Chicken Festival

Dubach School – Adopt-A-School
Town of Dubach – Back to School

Giveaway
E
East Baton Rouge 4-H Foundation –

Sporting Day Tournament

Elton High School – Jr. High Beta Club
Empowering Kingdom Growth – Grief

Counseling Sponsor

Excel Valley Soccer Academy - FC

Excel Sponsorship
F
Fairmont State Foundation, Inc. –

Men’s Basketball

Faith House, Inc. – Trivia Night Krewe

Sponsor

Fifth Ward Community Center
First Presbyterian Church of

Ponchatoula – In Memory of Audrey
H. Gabriel

Friends of the Alexandria Zoo – Zoo

Boo

Fuzzy Friends Rescue – New Year’s

Eve Barkin’ Ball

G
Gingerbread House Bossier/Caddo
Greater Central Louisiana Realtor
Association – Diamond Sponsor
Awards and Installation

Greenville Park Leadership Academy
– Teachers Appreciation Luncheon

Gujarati Samaj of Mississippi –

Annual Banquet Sponsor
H
Hammond Area Recreation District –
Chappapella Sports Park Sponsor,
Tots of Terror Halloween

Hammond BBQ Inc. – Backyard

Boogie Sauce Sponsor

Hammond – Downtown Development

District – Railroad Bench,
Community Garden, Picnic in the
Park

City of Hammond – Back to School

Bash, Fireworks Show

City of Hammond Recreation
Department – Adult Leisure
Program, H.A.R.D. Summer Camp
Hammond Eastside Magnet School –

Fall Festival

Hammond High Magnet School –

Football Stadium Sign

Hammond Junior Auxiliary –

Independence Back to School Bash
Hammond Regional Arts Center – Art

of the Cocktail Photo Backdrop,
Sponsor of The Pelican State

Goes to War Exhibit
Harrison County CASA Program Inc. –

Superhero 5K Race

Haynesville High School – Gold Star

Program

Haynesville Quarterback Club –

Stadium Sign

Heartbeat 2 Success – Thanksgiving

Bags

Hessmer Sports Club – Little League

Baseball/Softball

Holden High School – 2021 Softball

State Championship Rings

Homer Golf Club – Tee Box Sponsor
Homer High School – Danceline

Uniforms, FFA State Convention &
Leadership Camp, Championship

Football Rings
Hope House of Central LA – Lobster

Dinner Fundraiser

I
Independence Bowl Foundation, Inc.
– 2 Star General 2022 Corporate
Sponsor

Independence High School – Senior
Awards & Graduation, 2022 Game
Day Sign Sponsor

Independence Sicilian Heritage
Festival – Platinum Sponsor
Independence Summer Baseball
Independence Volunteer Fire

Department – Smokin’ on the Track
BBQ

International Association of Lions

Clubs – Lions Golf Classic

The Italian Festival Inc. – Muffuletta

Sponsor
J
Jeff Davis Chamber of Commerce –
Gold Tournament Entry Fee, Cart
Sponsor, Tee Box Sponsor

Jefferson Davis Parish Sheriff’s Office

– Golf Tournament Sponsor
Jefferson Davis Parish Library –

Summer Reading Program

Jennings Daily News – Community

News

Jennings Festival Association
Jennings High School – JHS Food

Pantry, Alumni Tournament, Teachers
Appreciation Week

Jennings High School Jazzers –
National Dance Competition
Jewel M Sumner High School –

Basketball Gym Sign

Alumni Softball Tournament Sponsor
Jennings Police Association – Shop

with a Cop

Junior Achievement of Chisholm Trail

Inc. – Fort Worth, TX

Junior Achievement of Greater Baton
Rouge & Acadia – Broadway Bowl-
A-Thon
K
Kentwood Baseball/Softball

Association – 5/6 Year Old Team
Sponsor, Sign

Kentwood High Magnet School –

Baseball Team Uniforms and Spring
Banquet, New Football Team

Uniforms and Equipment, Baseball
Team Pitching Machine, Baseball
Team Field Signs, Track Team

Uniforms
Town of Kentwood – Book Bag and

School Supply Giveaway

Kid’s Church in the Park – Renovation

of Avenue C Learning Centers

Kiwanis Club of Denham Springs –

Christmas Parade, Clay Shoot
Kiwanis Club of Hammond – Trivia

Night

Knights of Columbus Marksville

Council 1217 – Fishing Tournament
L
Lake Claiborne Inc – 4th of July

Fireworks

Lallie Kemp Foundation – Diamond

Sponsor 2022 Gala

Launch
Leadership Excel
Lewis County Chamber of Commerce

Inc. – May Fest Sponsor

Lewis County School District – Lewis

High Golf Tournament, Football
Community Birthday Calendar,

Football Stands Sign, Yearbook Ad
LA Jumpstart Coalition

Ordinary People Doing EXTRAORDINARY ThingsOrdinary People Doing EXTRAORDINARY Things

LaSAS FFA – Future Farmers of

America

Live Oak High School – Cheerleaders

Golf Tournament

Livestock Committee of Garland –

Sponsor FFA Students in Livestock
Show

Loranger High Baseball Booster – 2

Year Sign Sponsor

Loranger High School – Wolfettes,
Lady Wolf Softball Booster Club,
Football Scoreboard,

Loranger Middle School – Wolf-Bytes
Robotics Team Platinum Sponsor

Loranger Youth Basketball
Louisiana 4-H Foundation – Jr.

Livestock Show – 5 Grand Champion
Belt Buckles

Louisiana Catering Com LLC – LSU

Baseball Fundraiser

Louisiana Cattlemen’s Association –

Banquet Sponsor

Louisiana College – Video Board at

Wildcat Field

LSU Ag Center Homer – Claiborne

Parish Junior Livestock Sale

Louisiana Technology Park – Nexus

Louisiana Biz Tech Challenge
Sponsor

Love Moved First – Golf Tournament,

Recovery Home
M
City of Marksville – Annual Doll and

Toy Fund

Main Street Homer – LA Legends

Festival, Golf Tournament

Mansura Chamber of Commerce
– Cochon de Lait Festival Porky
Sponsor

Marksville High/Avoyelles Parish

School Board – Lady Tigers
Basketball Uniforms and Equipment,
Beta

Club Sponsor
Mary Bird Perkins Cancer Center –

Geaux Yoga Serenity Sponsor
Mater Dolorosa Catholic School –
Steak Dinner Eagle Sponsorship

Maysville and Mason County

Chamber of Commerce

Minutemen of Ponchatoula – Flag

Raising

Monterey County Club – Classic Golf

Tournament

Village of Moreauville – Christmas

Parade

Moreauville Volunteer Fire

Department – Training Center
Fundraiser

Morgantown Baseball League – World

Series Sponsor

Mothers Against Drunk Driving – Walk

Like MADD

Richard Murphy Hospice Foundation
– Ruby Sponsor Gems and Gents
Hospice Gala

N
N Stitches Custom Monogramming –

S
Sacred Heart Church – Spring Fling,

Strawberry Festival Blankets

Vacation Bible School

Natalbany Middle School – Positive
Behavior Intervention & Support
Sponsor

NAACP – Freedom Fund Brunch &

Silent Auction

North Caddo Elementary Middle

School – Teachers Appreciation Day
North Caddo Magnet High School –

Football Equipment

North Caddo Medical Center

Foundation

North Louisiana Economic

Partnership

North Oaks Foundation – Mobile

Health Unit Sponsorship

Northshore Arts Foundation Inc. –

Arts in Bloom Lily Sponsor
O
Oak Forest Academy – Championship

Rings, Golf Tournament

Options, Inc. – Ballin’ 4 Options

Presenting Sponsor

Our Daily Bread of Tangipahoa
Our Lady of Sorrows Catholic Church
P
Plaucheville Softball League –

Softball Field Lights

Ponchatoula Area Recreation – Gold

Corporate Sponsor

City of Ponchatoula – Downtown
Revitalization – Live After Five
Sponsor

Ponchatoula Chamber of Commerce
Ponchatoula High School – Lady Wave
Basketball, Unified School Field Day
– Special Education, Softball

Field Improvements, Boys

Basketball Sign, Wavettes Dance
Team Spirit Sponsor, 2022 Senior

Breakfast, Project Graduation
PHS Band Boosters Inc – PHS Cheer/

Band/Colorguard Championship

Ponchatoula Youth Basketball
Q
Quinn Chapel AME Church
R
Red River Revel Inc.
Restoration Pregnancy Resource
Center, Inc. – Gold Sponsorship
Fundraising Dinner

Sacred Heart Knights of Columbus

Council 2972

St. Genevieve Catholic Church –

Vacation Bible School, Fundraiser

St. Helena Marching Band – Trip

Contribution

St. Peter & St. Michael Catholic
Churches – Church Fair Sponsor

St. Tammany Junior Livestock
Association – 4H Pig Sponsor

St. Thomas Aquinas High School –
Bubbles, BBQ & Bingo Fundraiser

Save Cenla Inc.
Serve Denton Center Inc. – Business

Partnership Sponsor

Shreveport Bossier African American

Chamber of Commerce

Shreveport Regional Arts Council –
Christmas in the Sky Magic Carpet
Sponsor

Simsboro High School – Future
Business Leaders of America
Competition

Town of Simmesport Housing

Authority – Christmas Extravaganza

Southeastern Louisiana University
– Columbia Theatre for the Arts
Season Tickets

SLU Athletic Association – Playoff
Tickets, Champagne Bingo Table,
Sports Package, Salute the Lions

Sponsor, Baseball Tournament

Tickets

SLU Foundation – Business

Perspectives Week Sponsor,
Columbia Theatre, Southeastern
Giving Day,

Community Music School, Alumni

Partnership, Southeastern Channel
Sponsorship, Chefs Evening
Southern University College of

Business – Annual Gala on the Bluff
Master Sponsorship

Southwood Lady Basketball
Student Organization for Aeronautic

Robotic Research

SWLA Volleyball
Jewel M Sumner High School –

Basketball Gym Sign
T
Tangi Chamber of Commerce –

LHSAA Basketball & Soccer State
Tournament

Rotary Club of Alexandria – Winter

Tangi Professional Women’s

Fete Gumbo Cookoff

Rotary Club of Denton, Texas – 2022

Organization – Women Mean
business Conference Sponsor

Flag Program

Rotary Club of Hammond – Movie

Night Under the Stars Cast Member
Sponsor, Shamrock Run
Rotary Club of Ponchatoula
Rusheon Middle School – Teacher

Appreciation Week Luncheon

Village of Tangipahoa – Pack the Sack

Back to School Giveaway

Tangipahoa Parish School System –

Talented Theatre

Tangipahoa Parish Sheriff’s Office
– Bucking Shoot Sponsor – TPSO
Mounted Division

The Central Louisiana Chamber of
Commerce Inc. – Annual Meeting
Platinum Sponsor, Congressional

Update Silver Sponsor
The Chairman’s Cup Foundation –

Golf Tournament

The Generals of Hope – VIP Sponsor
Pink October Night of Hope Gala

Tollsboro Lions Club – Platinum
Sponsor Tollsboro Lions Fair

Trojan Theatre Boosters
Tunica-Biloxi Indians PAC – Golf

Tournament

Trafton Academy – IPAD Contribution
U
United Health Foundation Inc. – Golf

Tournament

United Way of Northwest Louisiana –

Day of Caring Sponsor

United Way of Southeast Louisiana –
Employee Match Contribution 2022
V
Vivian Athletic Association – Ballpark

Sig
W
Welsh High School – Safe and Sober

After Graduation Party

West Calcasieu Chamber of

Commerce – Banquet Sponsor,
Annual Membership

Westminster Place – Christmas

Festivities for the Elderly

Woodland Park Magnet School –

Teacher Appreciation Week

First
Guaranty
Bank
contributions
for community
support
exceeded
$638,108
in 2022.

First Guaranty Bancshares Annual Report 2022 77

FGB Celebrates
3 years as
America's Best
Small Bank

(Top photo) FGB Main Office in Hammond, (Second row, L to R) Tunica-Marksville Branch, Dubach Branch
(Third row, L to R) Moreauville Branch with a customer, Fort Worth Branch (Bottom photo) Alexandria Branch

Ordinary People Doing EXTRAORDINARY ThingsBanks Headquartered in Louisiana Ranked by Asset Size as of December 31, 2022

Origin Bank

b1Bank

Home Bank, National Association

First Guaranty Bank

Red River Bank

Gulf Coast Bank and Trust Company

Investar Bank, National Association

Citizens National Bank, N.A.

First American Bank and Trust

Crescent Bank & Trust

Sabine State Bank and Trust Company

JD Bank

First Federal Bank of Louisiana

Liberty Bank and Trust Company

Fidelity Bank

First National Banker's Bank

Resource Bank

The Evangeline Bank and Trust Company

BOM Bank

Synergy Bank

Community Bank of Louisiana

Progressive Bank

South Louisiana Bank, Houma, Louisiana

Concordia Bank & Trust Company

Jonesboro State Bank

United Community Bank

Community First Bank

Century Next Bank

29 Metairie Bank & Trust Company

Home Federal Bank

First National Bank of Louisiana

Cross Keys Bank

Delta Bank

Gulf Coast Bank

Gibsland Bank & Trust Company

Homeland Federal Savings Bank

Fifth District Savings Bank

Rayne State Bank & Trust Company

39 Merchants & Farmers Bank & Trust Company

Cottonport Bank

Farmers-Merchant Bank & Trust Company

Louisiana National Bank

Citizens Bank & Trust Company

The First National Bank of Jeanerette

The Bank

Bank of Commerce & Trust Co.

City Bank & Trust Co.

48 M C Bank & Trust Company

Southern Heritage Bank

First National Bank in DeRidder

Guaranty Bank & Trust Company of Delhi, Louisiana

Bank of Zachary

Lakeside Bank

Patterson State Bank

Exchange Bank and Trust Company, Natchitoches, Louisiana Natchitoches

Choudrant

Baton Rouge

Lafayette

Hammond

Alexandria

New Orleans

Baton Rouge

Bossier City

Vacherie

New Orleans

Many

Jennings

Lake Charles

New Orleans

Baton Rouge

Covington

Ville Platte

Natchitoches

Houma

Mansfield

Monroe

Houma

Vidalia

Jonesboro

Raceland

New Iberia

Ruston

Metairie

Shreveport

Crowley

Saint Joseph

Vidalia

Abbeville

Gibsland

Columbia

Rayne

Leesville

Cottonport

Breaux Bridge

Ruston

Plaquemine

Jeanerette

Jennings

Crowley

Natchitoches

Morgan City

Jonesville

DeRidder

Delhi

Zachary

Lake Charles

Patterson

Bank of Coushatta

Guaranty Bank and Trust Company

St. Landry Bank and Trust Company

60 Washington State Bank

Citizens Savings Bank

CLB The Community Bank

Commercial Capital Bank

Bank of St. Francisville

Hibernia Bank

Catalyst Bank

American Bank

American Bank & Trust Company

Citizens Progressive Bank

Caldwell Bank & Trust Company

71 Marion State Bank

Franklin State Bank & Trust Company

First National Bank USA

Plaquemine Bank & Trust Company

Bank of Abbeville & Trust Company

Simmesport State Bank

Bank of Sunset and Trust Company

Landmark Bank

Heritage Bank of St. Tammany

Tensas State Bank

Anthem Bank & Trust

Citizens Bank & Trust Company

Vermilion Bank & Trust Company

South Lafourche Bank & Trust Company

Bank of Winnfield & Trust Company

Citizen's Bank & Trust Company of Vivian, Louisiana

Farmers State Bank & Trust Co.

Colfax Banking Company

State Bank & Trust Company

Feliciana Bank & Trust Company

Currency Bank

Progressive National Bank of DeSoto Parish

Bank of Erath

Eureka Homestead

Bank of Louisiana

Peoples Bank

First National Bank of Benton

100 Bank of Oak Ridge

101 Hodge Bank & Trust Company

102 Bank of Gueydan

103 Beauregard FSB

104 Sicily Island State Bank

105 The Bank of Commerce

106 Jackson Parish Bank

107 Basile State Bank

109 Rayne Building and Loan Association

110 The Mer Rouge State Bank

New Orleans

93 Mississippi River Bank

Coushatta

New Roads

Opelousas

Washington

Bogalusa

Jonesville

Delhi

Saint Francisville

New Orleans

Opelousas

Covington

Opelousas

Winnsboro

Columbia

Marion

Winnsboro

Boutte

Plaquemine

Abbeville

Simmesport

Sunset

Clinton

Covington

Newellton

Plaquemine

Covington

Kaplan

Larose

Winnfield

Vivian

Church Point

Colfax

Golden Meadow

Clinton

Oak Grove

Belle Chasse

Mansfield

Erath

Metairie

New Orleans

Chatham

Benton

Oak Ridge

Hodge

Gueydan

Deridder

Sicily Island

White Castle

Jonesboro

Basile

Rayne

Mer Rouge

Metairie

108 Abbeville Building & Loan (A State-Chartered Savings Bank)

Abbeville

Peoples Bank and Trust Company of Pointe Coupee Parish

New Roads

111 Mutual Savings and Loan Association

56 Winnsboro State Bank & Trust Company

Winnsboro

First Guaranty Bancshares Annual Report 2022 79

FIRST GUARANTY BANCSHARES, INC. Corporate Information

ANNUAL MEETING
The Annual Meeting of Shareholders will
convene at 2:00 PM Central Daylight Saving
Time (CDT) on
Thursday, May 18, 2023 in the FGB Center
206 S. Orange Street
Hammond, LA 70403

CORPORATE HEADQUARTERS
First Guaranty Square
400 East Thomas Street
Hammond, Louisiana 70401-3320
Telephone: (888) 375-3093

SHAREHOLDER SERVICES
First Guaranty Bancshares, Inc.
Post Office Box 2009
Hammond, Louisiana 70404-2009
Contact: Vanessa R. Drew
Telephone: (985) 375-0343
Email: investorrelations@fgb.net

CERTIFIED PUBLIC ACCOUNTANTS
Griffith, DeLaney, Hillman & Lett
Ashland, Kentucky

FINANCIAL AND GENERAL INFORMATION
Persons seeking financial or other information
about the Company are invited to contact:

Eric J. Dosch
Chief Financial Officer, Treasurer and Secretary
First Guaranty Bancshares, Inc.
Post Office Box 2009
Hammond, Louisiana 70404-2009
Telephone: (985) 375-0308

NOTICE TO SHAREHOLDERS
A copy of the First Guaranty Bancshares, Inc.
Annual Report filed on Form 10-K with the U.S.
Securities and Exchange Commission can be
accessed through the Company’s website at
www.fgb.net or is available without charge by
writing.

FIRST GUARANTY BANK Financial Table of Contents

Management’s Discussion and Analysis
of Financial Condition and Results of Operations ......................................82

Selected Financial Data .............................................................................. 102

Report of Independent Registered Public Accounting Firms ................. 108

Consolidated Balance Sheets ..................................................................... 111

Consolidated Statements of Income ......................................................... 112

Consolidated Statements of Comprehensive Income (Loss) ................. 113

Consolidated Statements of Changes in Shareholders’ Equity ............. 113

Consolidated Statements of Cash Flows .................................................. 114

Notes to Consolidated Financial Statements ........................................... 115

Ordinary People Doing EXTRAORDINARY Things

First Guaranty Bancshares Annual Report 2022 81

Management’s Discussion and Analysis
of Financial Condition and Results of
Operations
The following discussion and analysis of our financial condition and
results of operations should be read in conjunction with our audited
consolidated financial statements and the accompanying notes included
elsewhere in this Annual Report on Form 10-K. A discussion regarding
significant changes in our financial condition from December 31, 2020
to December 31, 2021 and our results of operations for the year ended
December 31, 2021 can be found under "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the SEC on March 16, 2022, which is
available on the SEC's website at www.sec.gov and First Guaranty's
website, www.fgb.net This discussion and analysis contains forward-
looking statements that are subject to certain risks and uncertainties
and are based on certain assumptions that we believe are reasonable
but may prove to be inaccurate. Certain risks, uncertainties and other
factors, including those set forth under "Forward-Looking Statements,"
"Risk Factors" and elsewhere in this Annual Report on Form 10-K,
may cause actual results to differ materially from those projected
results discussed in the forward-looking statements appearing in this
discussion and analysis. We assume no obligation to update any of
these forward-looking statements.

Overview

First Guaranty Bancshares is a Louisiana corporation and a financial
holding company headquartered in Hammond, Louisiana. Our
wholly-owned subsidiary, First Guaranty Bank, a Louisiana-chartered
commercial bank, provides personalized commercial banking services
primarily to Louisiana and Texas customers through 36 banking facilities
primarily located in the MSAs of Hammond, Baton Rouge, Lafayette,
Shreveport-Bossier City, Lake Charles and Alexandria, Louisiana and
Dallas-Fort Worth-Arlington, Waco, Texas and Mideast markets in
Kentucky and West Virginia. We emphasize personal relationships and
localized decision making to ensure that products and services are
matched to customer needs. We compete for business principally on
the basis of personal service to customers, customer access to officers
and directors and competitive interest rates and fees.

Total assets were $3.2 billion at December 31, 2022 and $2.9 billion at
December 31, 2021. Total deposits were $2.7 billion at December 31,
2022 and $2.6 billion at December 31, 2021. Total loans were $2.5
billion at December 31, 2022, an increase of $359.7 million, or 16.7%,
compared with $2.2 billion at December 31, 2021. Total shareholders'
equity was $235.0 million and $223.9 million at December 31, 2022
and December 31, 2021, respectively.

Net income was $28.9 million and $27.3 million for the years ended
December 31, 2022 and 2021, respectively. We generate most of our
revenues from interest income on loans, interest income on securities,
sales of securities, ATM and debit card fees and service charges,
commissions and fees. We incur interest expense on deposits and other
borrowed funds and noninterest expense such as salaries and employee
benefits and occupancy and equipment expenses. Net interest income
is the difference between interest income earned on interest-earning
assets such as loans and securities and interest expense paid on
interest-bearing liabilities such as deposits and borrowings which are
used to fund those assets. Net interest income is our largest source of
revenue. To evaluate net interest income, we measure and monitor:
(1) yields on our loans and other interest-earning assets; (2) the costs
of our deposits and other funding sources; (3) our net interest spread
and (4) our net interest margin. Net interest spread is the difference
between rates earned on interest-earning assets and rates paid on

interest-bearing liabilities. Net interest margin is calculated as net
interest income divided by average interest-earning assets. Because
noninterest-bearing sources of funds, such as noninterest-bearing
deposits also fund interest-earning assets, net interest margin includes
the benefit of these noninterest-bearing sources.

Changes in market interest rates and interest rates we earn on interest-
earning assets or pay on interest-bearing liabilities, as well as the
volume and types of interest-earning assets, interest-bearing and
noninterest-bearing liabilities are usually the largest drivers of periodic
changes in net interest spread, net interest margin and net interest
income. Fluctuations in market interest rates are driven by many
factors, including governmental monetary policies, inflation, deflation,
macroeconomic developments, changes in unemployment, the money
supply, political and international conditions, conditions in domestic
and foreign financial markets and in 2020 and 2021 the economic
and social effects of the COVID-19 pandemic. Periodic changes in the
volume and types of loans in our loan portfolio are affected by, among
other factors, economic and competitive conditions in Louisiana, Texas
and our other out-of-state market areas. During the extended period of
historically low interest rates, we continue to evaluate our investments
in interest-earning assets in relation to the impact such investments
have on our financial condition, results of operations and shareholders'
equity.

Financial highlights for 2022 and 2021:

•

Total assets increased $273.2 million, or 9.5%, to $3.2 billion at
December 31, 2022 when compared with December 31, 2021.
Total loans at December 31, 2022 were $2.5 billion, an increase
of $359.7 million, or 16.7%, compared with December 31,
2021. Total deposits were $2.7 billion at December 31, 2022, an
increase of $127.3 million, or 4.9% compared with December 31,
2021. Retained earnings were $76.4 million at December 31,
2022, an increase of $19.7 million compared to $56.7 million at
December 31, 2021. Shareholders' equity was $235.0 million and
$223.9 million at December 31, 2022 and December 31, 2021,
respectively.

• Net income for each of the years ended December 31, 2022 and

2021 was $28.9 million and $27.3 million, respectively.

•

Earnings per common share were $2.48 for the year ended
December 31, 2022 and $2.42 for the year ended December 31,
2021. Total weighted average common shares outstanding were
10,716,796 at December 31, 2022 and December 31, 2021.

First Guaranty participated in the SBA Paycheck Protection
Program ("PPP") under the Coronavirus Aid, Relief, and Economic
Security Act ("CARES Act"). The CARES Act authorized the SBA
to guarantee loans under a new 7(a) loan program known as the
PPP. As a qualified SBA lender, we were automatically authorized
to originate PPP loans. The SBA will guarantee 100% of the PPP
loans made to eligible borrowers and will forgive such loans. The
program has been conducted in two phases which First Guaranty
classifies as Round 1 loans (originated in 2020) and Round 2
loans (originated in 2021). As of December 31, 2022, First
Guaranty had remaining Round 1 PPP loans of $2.0 million with
deferred fees of $16,000 and Round 2 PPP loans of $3.9 million
with deferred fees of $16,000 remaining. $1.3 million in PPP fees
were recognized during 2022 compared to $2.0 million in PPP
fees recognized in 2021.

•

The allowance for loan and lease losses was 0.93% of total loans
at December 31, 2022 compared to 1.11% at December 31,
2021. First Guaranty attributes the decrease in the allowance
as a percentage of loans to the improvement in factors related
to the COVID-19 pandemic offset by growth in the loan portfolio

identified risks. First Guaranty had acquisition related loan
discounts that totaled approximately $1.1 million at December 31,
2022. First Guaranty had $5.9 million at December 31, 2022 of
SBA guaranteed PPP loans that have no related allowance due to
the 100% government guarantee in accordance with regulatory
guidance.

•

The provision for loan losses totaled $3.7 million for 2022 compared
to $2.1 million in 2021.

•

• Net interest income for 2022 was $100.0 million compared to

$89.6 million for 2021.

• Noninterest income for 2022 was $11.0 million compared
to $10.8 million for 2021. Excluding the impact of securities
gains, noninterest income for 2022 improved to $11.0 million from
$10.0 million for 2021. The increase was primarily due to higher
gains on loan sales.

•

The net interest margin was 3.47% for 2022 and 3.44% for 2021.
The increase was driven by an increase in loan yields, including loan
fees, which increased more than the cost of liabilities. Loans as a
percentage of average interest earning assets increased to 79.8%
at December 31, 2022 compared to 77.3% at December 31, 2021.

Investment securities totaled $451.5 million at December 31, 2022,
an increase of $87.4 million when compared to $364.2 million
at December 31, 2021. Losses on the sale of securities were
$17,000 for 2022 as compared to gains of $0.7 million for 2021.
At December 31, 2022, available for sale securities, at fair value,
totaled $131.5 million, a decrease of $79.2 million when compared
to $210.6 million at December 31, 2021. At December 31, 2022,
held to maturity securities, at amortized cost, totaled $320.1 million
as compared to $153.5 million at December 31, 2021. During the
first quarter of 2022, First Guaranty designated $165.8 million of
AFS securities for HTM status.

Total loans net of unearned income were $2.5 billion at
December 31, 2022 compared to $2.2 billion at December 31,
2021. Total loans net of unearned income are reduced by the
allowance for loan and lease losses which totaled $23.5 million
at December 31, 2022 and $24.0 million at December 31, 2021.

Total impaired loans increased $4.4 million to $19.4 million at
December 31, 2022 compared to $15.0 million at December 31,
2021.

• Nonaccrual loans decreased $3.1 million to $13.6 million at
December 31, 2022 compared to $16.7 million at December 31,
2021.

•

First Guaranty is a smaller reporting company and delayed the
adoption of ASU 2016-13, "Financial Instruments - Credit Losses:
Measurement of Credit Losses on Financial Instruments" ("CECL").
First Guaranty used the incurred loss model for the calculation of
its allowance for December 31, 2022. First Guaranty adopted ASU
2016-13 effective January 1, 2023.

• Return on average assets was 0.97% and 1.01% for the years
ended December 31, 2022 and 2021, respectively. Return on
average common equity was 13.64% and 14.06% for 2022 and
2021, respectively. Return on average assets is calculated by
dividing net income by average assets. Return on average common
equity is calculated by dividing net income by average common
equity.

• Book value per common share was $18.84 as of December 31,
2022 compared to $17.81 as of December 31, 2021. Tangible
book value per common share was $17.23 as of December 31,

2022 compared to $16.13 as of December 31, 2021. The increase
in book value was due primarily to an increase in retained earnings
partially offset by changes in accumulated other comprehensive
income ("AOCI"). AOCI is comprised of unrealized gains and
losses on available for sale securities, including unrealized losses
on available for sale securities at the time of transfer to held to
maturity.

First Guaranty's Board of Directors declared cash dividends of
$0.64 per common share in 2022. First Guaranty also declared
cash dividends of $0.64 in 2021, which was the equivalent of
$0.60 per common share after adjusting for the 10% common
stock dividend paid in December 2021. First Guaranty has paid
118 consecutive quarterly dividends on its common stock as
of December 31, 2022.

•

First Guaranty paid preferred cash dividends of $2.3 million during
2022. The preferred stock was issued in April of 2021.

Recent Developments

Legal Settlement

First Guaranty was a defendant in a lawsuit alleging overpayment on
a loan related to a disputed interest rate. First Guaranty settled this
lawsuit in February of 2023 for $0.6 million.

Lone Star Acquisition

On January 6, 2023, we entered into a definitive agreement to acquire
Lone Star Bank, a Texas state-chartered bank with its main office in
Houston, Texas. Under the terms of the agreement, we will acquire all of
the issued and outstanding shares of Lone Star Bank common stock in
exchange solely for shares of First Guaranty common stock through the
merger of Lone Star Bank with and into First Guaranty Bank, with First
Guaranty Bank surviving the merger. Based on December 31, 2022
financials, the combined financial institution would have approximately
$3.2 billion in total assets, $2.5 billion in total loans, and $2.8 billion in
total deposits following the close of the merger.

As a result of the proposed merger, First Guaranty Bank will acquire four
banking locations in Texas: two locations in Houston and two locations
west of Houston along the I-10 corridor in Sealy and Columbus.

Employee Stock Grant Program

As disclosed in previous filings by First Guaranty Bancshares, Inc.,
for approximately 15 years First Guaranty Bank, a subsidiary of First
Guaranty Bancshares, Inc. has utilized an “Employee Stock Grant
Program” to incentivize and reward bank employees for performance.
Each quarter, the Board of Directors of First Guaranty Bank allocates
a $75,000 payment to an attorney to be used to purchase, on the
open market, shares of stock with First Guaranty Bancshares, Inc. The
attorney receives nominations which come from managers throughout
the Bank for awards to employees which range from clerical through top
Management. An average of just over 100 employees receive awards, in
full ownership with no vesting nor other requirements, each quarter with
an average award of approximately 37 shares per employee awarded.

The total cost of this program per year is approximately $300,000 with
total shares awarded of approximately 15,000 shares.

In addition, the same process is utilized by First Guaranty Bancshares,
Inc. at the conclusion of each year for the grant of stock bonuses to
members of Management of First Guaranty Bank, selected by the
Board of Directors of First Guaranty Bancshares, Inc. Those awards
have averaged approximately $275,000 or 12,500 shares per year. The
SEC has requested information concerning this practice. No process
has been instituted; only, a request for information. First Guaranty has
provided the requested information.

First Guaranty Bancshares Annual Report 2022 83

loans deemed performing is determined by discounting cash flows, both
principal and interest, for each pool at prevailing market interest rates
as well as consideration of inherent potential losses. The difference
between the fair value and principal balances due at acquisition date,
the fair value discount, is accreted into income over the estimated life of
each loan pool. The fair value is estimated using an analysis of expected
cash flows to be received from the loan and may include the use of
third party appraisals to assist in the calculation. Performing acquired
loans are subsequently evaluated for any required allowance at each
reporting date.

The general component covers non-classified loans and special mention
loans and is based on historical loss experience adjusted for qualitative
factors. Qualitative factors include analysis of levels and trends in
delinquencies, nonaccrual loans, charge-offs and recoveries, loan
risk ratings, trends in volume and terms of loans, changes in lending
policy, credit concentrations, portfolio stress test results, national and
local economic trends including the impact of COVID-19, industry
conditions, and other relevant factors.

An unallocated component is maintained to cover uncertainties that
could affect the estimate of probable losses.

The allowance for loan and lease losses is reviewed on a monthly
basis. The monitoring of credit risk also extends to unfunded credit
commitments, such as unused commercial credit lines and letters of
credit. A reserve is established as needed for estimates of probable
losses on such commitments.

Financial Condition

Assets.

Our total assets were $3.2 billion at December 31, 2022, an increase of
$273.2 million, or 9.5%, from total assets of $2.9 billion at December 31,
2021. Assets increased primarily due to increases in net loans of
$360.2 million and investment securities of $87.4 million, partially

TOTAL ASSETS
In Billions

Critical Accounting Estimates
Our consolidated financial statements are prepared to conform to
generally accepted accounting principles in the United States and with
predominant accounting practices within the banking industry. Certain
critical estimates require judgment and estimates which are used in the
preparation of the financial statements and accompanying notes.

We have identified the following critical accounting estimate that is
critical to an understanding of our financial condition and results of
operations.

Allowance for Loan and Lease Losses.

The allowance for loan and lease losses is established through a
provision for loan losses charged to expense. Loans are charged against
the allowance for loan and lease losses when management believes
that the collectability of the principal is unlikely. The allowance, which
is based on evaluation of the collectability of loans and prior loan
loss experience, is an amount that, in the opinion of management,
reflects the risks inherent in the existing loan portfolio and exists at the
reporting date. The evaluations take into consideration a number of
subjective factors including changes in the nature and volume of the
loan portfolio, overall portfolio quality, review of specific problem loans,
current economic conditions that may affect a borrower's ability to pay,
adequacy of loan collateral and other relevant factors.

The following are general credit risk factors that affect our loan portfolio
segments. These factors do not encompass all risks associated with
each loan category. Construction and land development loans have
risks associated with interim construction prior to permanent financing
and repayment risks due to the future sale of developed property.
Farmland and agricultural loans have risks such as weather, government
agricultural policies, fuel and fertilizer costs, and market price volatility.
One- to four-family residential, multifamily, and consumer credits are
strongly influenced by employment levels, consumer debt loads and the
general economy. Non-farm non-residential loans include both owner-
occupied real estate and non-owner occupied real estate. Common
risks associated with these properties is the ability to maintain tenant
leases and keep lease income at a level able to service required debt
and operating expenses. Commercial and industrial loans generally
have non-real estate secured collateral which requires closer monitoring
than real estate collateral.

Although management uses available information to recognize losses
on loans, because of uncertainties associated with local economic
conditions, collateral values and future cash flows on impaired loans,
it is reasonably possible that a material change could occur in the
allowance for loan and lease losses in the near term. However, the
amount of the change that is reasonably possible cannot be estimated.
The evaluation of the adequacy of loan collateral is often based upon
estimates and appraisals. Because of changing economic conditions,
the valuations determined from such estimates and appraisals may
also change. Accordingly, we may ultimately incur losses that vary from
management's current estimates. Adjustments to the allowance for loan
and lease losses will be reported in the period such adjustments become
known or can be reasonably estimated. All loan losses are charged to
the allowance for loan and lease losses when the loss actually occurs
or when the collectability of the principal is unlikely. Recoveries are
credited to the allowance at the time of recovery.

Loans acquired in a business combination are recorded at their estimated
fair value on their purchase date with no carryover of the related
allowance for loan and lease losses. Acquired loans are segregated
between those with deteriorated credit quality at acquisition and those
deemed as performing. To make this determination, management
considers such factors as past due status, nonaccrual status, credit risk
ratings, interest rates and collateral position. The fair value of acquired

offset by a decrease in cash and cash equivalents of $178.7 million at
December 31, 2022 compared to December 31, 2021.

Loans.

Net loans increased $360.2 million, or 16.9%, to $2.5 billion at
December 31, 2022 from $2.1 billion at December 31, 2021. Non-farm
non-residential loan balances increased $106.5 million primarily due
to new originations. One-to four-family loans increased $78.0 million
primarily due to new originations. Commercial lease loan balances
increased $71.6 million primarily due to new lease originations. First
Guaranty has continued to expand its commercial lease portfolio which
generally have higher yields than commercial real estate loans but shorter
average lives. Construction and land development loans increased
$58.8 million principally due to advances on existing construction lines
and new originations. Multifamily loans increased $53.9 million primarily
due to the conversion of existing construction loans to permanent
financing. Agricultural loans increased $12.3 million primarily due to
seasonal activity. Consumer and other loans decreased $0.3 million
primarily due to payoffs. Farmland loans decreased $7.0 million due to
decreases on agricultural loan commitments. Commercial and industrial
loans decreased $13.1 million primarily due to payoffs. SBA PPP loans
totaled $5.9 million at December 31, 2022 compared to $35.4 million
at December 31, 2021. These totals are included in commercial and
industrial loans. Round 1 SBA PPP loans decreased from $12.7 million
at December 31, 2021 to $2.0 million at December 31, 2022 due to
SBA loan forgiveness and payments received. Round 2 SBA PPP loans
decreased from $22.6 million at December 31, 2021 to $3.9 million
at December 31, 2022 due to SBA loan forgiveness and payments
received. First Guaranty had approximately 4.8% of funded and 2.3%
of unfunded commitments in our loan portfolio to businesses engaged
in support or service activities for oil and gas operations. First Guaranty's
hotel and hospitality portfolio totaled $160.2 million at December 31,

2022. As part of the management of risks in our loan portfolio, First
Guaranty had previously established an internal guidance limit of
approximately $200.0 million for its hotel and hospitality portfolio. First
Guaranty had $333.8 million in loans related to our Texas markets at
December 31, 2022 which was an increase of $76.0 million or 29.5%
from $257.8 million at December 31, 2021. First Guaranty continues
to have significant loan growth associated with its Texas branches.
We anticipate additional growth opportunities in Texas as it contains
four major cities in Austin, Dallas, Houston, and San Antonio, plus
the continued growth and development of these areas is exceeding
that of other areas of the country. First Guaranty had $210.9 million
in loans related to our new Mideast markets in Kentucky and West
Virginia at December 31, 2022. Syndicated loans at December 31,
2022 were $88.3 million, of which $26.6 million were shared national
credits. Syndicated loans increased $40.9 million from $47.4 million at
December 31, 2021.

As of December 31, 2022, 68.7% of our loan portfolio was secured
by real estate. The largest portion of our loan portfolio, at 39.3% as of
December 31, 2022, was non-farm non-residential loans secured by
real estate. Approximately 39.8% of the loan portfolio was based on a
floating rate tied to the prime rate or LIBOR as of December 31, 2022.
64.0% of the loan portfolio is scheduled to mature within five years
from December 31, 2022. First Guaranty had $47.7 million in loans
that were priced off of the LIBOR index rate at December 31, 2022. As
it is anticipated that LIBOR will be discontinued after June 30, 2023,
First Guaranty is reviewing its loan documents to determine alternative
reference rates such as the Secured Overnight Financing Rate ("SOFR")
and does not anticipate there will be a significant financial statement
impact with the transition.

First Guaranty Bancshares Annual Report 2022 85

Loan Portfolio Maturities.

The following tables summarize the scheduled repayments of our loan portfolio at December 31, 2022. Demand loans, loans having no stated
repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Maturities are based on the final contractual
payment date and do not reflect the effect of prepayments and scheduled principal amortization.

December 31, 2022

One Year
or Less

More Than One
Year Through
Five Years

More Than Five
Years Through
Fifteen Years

After Fifteen
Years

Total

(in thousands)

Real Estate:

Construction & land development

$ 42,650 $ 107,567 $ 53,976 $ 28,898 $ 233,091

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

3,314

47,797

6,247

113,271

213,279

12,957

93,187

46,052

9,164

161,360

7,927

50,661

31,228

515,994

713,377

6,496

222,840

271,522

31,077

531,935

2,163

38,500

23,815

138,047

256,501

9,135

62,425

3,220

74,780

11,419

229,372

58,495

225,617

24,823

366,330

119,785

992,929

553,801

1,736,958

10,457

6,827

4,403

21,687

39,045

385,279

317,574

47,864

789,762

Total Loans Before Unearned Income

$ 374,639 $ 1,245,312 $ 331,281 $ 575,488

$ 2,526,720

Less: Unearned Income

Total Loans Net Of Unearned Income

(7,643 )

$ 2,519,077

The following table sets forth the scheduled repayments of fixed and
adjustable-rate loans at December 31, 2022 that are contractually due
after December 31, 2022.

Due After December 31, 2022

(in thousands)

Fixed

Floating

Total

One year or less

$ 234,921 $ 137,203 $ 372,124

One to five years

Over five to 15 years

Over 15 years

Subtotal

Nonaccrual loans

Total

900,960

114,425

261,209

339,894

1,240,854

216,251

308,291

330,676

569,500

$ 1,511,515 $ 1,001,639 $ 2,513,154

13,566

$ 2,526,720

Non-performing Assets.

Non-performing assets consist of non-performing loans and other real-
estate owned. Non-performing loans (including nonaccruing troubled
debt restructurings described below) are those on which the accrual of
interest has stopped or loans which are contractually 90 days past due
on which interest continues to accrue. Loans are ordinarily placed on
nonaccrual status when principal and interest is delinquent for 90 days
or more. However, management may elect to continue the accrual when
the estimated net available value of collateral is sufficient to cover the
principal balance and accrued interest. It is our policy to discontinue
the accrual of interest income on any loan for which we have reasonable
doubt as to the payment of interest or principal. When a loan is placed
on nonaccrual status, unpaid interest credited to income is reversed.
Nonaccrual loans are returned to accrual status when the financial
position of the borrower indicates there is no longer any reasonable
doubt as to the payment of principal or interest. Other real estate owned
consists of property acquired through formal foreclosure, in-substance
foreclosure or by deed in lieu of foreclosure.

Included in floating rate loans are loans that adjust to a floating rate
following an initial fixed rate period. The initial fixed rate periods are
typically one, three, or five year periods.

The following table shows the principal amounts and categories of our non-performing assets at December 31, 2022 and 2021.

Nonaccrual loans:
Real Estate:
Construction and land development

Farmland

1- 4 family

Multifamily

Non-farm non-residential
Total Real Estate
Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases
Consumer and other
Total Non-Real Estate
Total nonaccrual loans

Loans 90 days and greater delinquent & still accruing:
Real Estate:
Construction and land development
Farmland
1- 4 family
Multifamily
Non-farm non-residential
Total Real Estate
Non-Real Estate:
Agricultural
Commercial and industrial
Commercial leases
Consumer and other
Total Non-Real Estate
Total loans 90 days and greater delinquent & still accruing
Total non-performing loans

December 31,

2022

2021

(in thousands)

$ 225

$ 530

290

3,826

3,746
8,087

1,622

819

1,799
1,239
5,479
13,566

427
-
332
157
103
1,019

787

2,861

8,733
12,911

2,302

699

-
803
3,804
16,715

246
-
514
162
281
1,203

-
123
-
-
123
1,142
$ 14,708

-
23
-
19
42
1,245
$ 17,960

First Guaranty Bancshares Annual Report 2022 87

Other real estate owned and foreclosed assets:
Real Estate:
Construction and land development
Farmland
1- 4 family
Multifamily
Non-farm non-residential
Total Real Estate
Non-Real Estate:
Agricultural
Commercial and industrial
Commercial leases
Consumer and other
Total Non-Real Estate
Total other real estate owned and foreclosed assets
Total non-performing assets
Non-performing assets to total loans
Non-performing assets to total assets
Non-performing loans to total loans
Nonaccrual loans to total loans
Allowance for loan and lease losses to nonaccrual loans

December 31,

2022

2021

(in thousands)

-
-
113
-
-
113

-
-
817
-
1,255
2,072

-
-
-
-
-
113
$ 14,821

-
-
-
-
-
2,072
$ 20,032

0.59%
0.47%
0.58%
0.54%
173.36%

0.93%
0.70%
0.83%
0.77%
143.76%

For the years ended December 31, 2022 and 2021, gross interest
income which would have been recorded had the non-performing loans
been current in accordance with their original terms amounted to $0.5
million and $0.8 million, respectively. We recognized $0.2 million and
$0.1 million of interest income on such loans during the years ended
December 31, 2022 and 2021, respectively. For the years ended
December 31, 2022 and 2021, gross interest income which would have
been recorded had the troubled debt restructured loans been current
in accordance with their original terms amounted to $0.1 million and
$0.2 million, respectively. We recognized $0.1 million and $0.2 million
of interest income on such loans during the years ended December 31,
2022 and 2021, respectively.

Non-performing assets were $14.8 million, or 0.47%, of total assets
at December 31, 2022, compared to $20.0 million, or 0.70%, of total
assets at December 31, 2021, which represented a decrease in non-
performing assets of $5.2 million. The decrease in non-performing
assets occurred primarily due to a reduction in nonaccrual loans, 90
days or greater delinquent and still accruing, other real estate owned.
Contributing to the decrease was a sale of a $3.4 million real estate
secured nonaccrual loan in the second quarter of 2022. This loan was
previously reported as a TDR. A real estate secured loan in the amount
of $1.7 million was returned to performing status from nonaccrual.
A $0.5 million real estate secured loan was returned to performing
status from nonaccrual. Both of these loans demonstrated satisfactory
payment performance in order to be returned to performing status.
First Guaranty sold smaller OREO properties during 2022 which also
contributed to the reduction in non-performing assets.

Nonaccrual loans decreased from $16.7 million at December 31, 2021
to $13.6 million at December 31, 2022. The decrease in nonaccrual
loans was concentrated primarily
in non-farm non-residential,
agricultural, farmland and construction and land development loans.
Non-performing assets included $1.0 million in loans with a government
guarantee, or 6.69% of non-performing assets. These are structured as
net loss guarantees in which up to 90% of loss exposure is covered.

At December 31, 2022 loans 90 days and greater delinquent and still
accruing totaled $1.1 million, a decrease of $0.1 million or 8.3% from
$1.2 million at December 31, 2021. The decrease in loans 90 days or
greater delinquent and still accruing was concentrated primarily in one-
to four-family residential, non-farm non-residential and consumer and
other loans.

Other real estate owned at December 31, 2022 totaled $0.1 million, a
decrease of $2.0 million from $2.1 million at December 31, 2021. The
decrease was primarily due to a retail shopping center property with
a net book value of $1.1 million being sold in October 2022. The sale
of other smaller properties resulted in an additional reduction of $1.0
million.

At December 31, 2022, our largest non-performing assets were
comprised of the following nonaccrual loans: (1) a commercial lease loan
that totaled $1.8 million; (2) a non-farm non-residential loan secured
by a mobile home facility that totaled $1.3 million; (3) a non-farm
nonresidential loan that totaled $1.1 million. This loan was originated
for the sale of other real estate owned, the previously mentioned retail
shopping center, and was included in nonaccrual until establishment
of a satisfactory payment history by the borrower; (4) a non-farm non-
residential loan secured by a waste treatment facility that totaled $0.9
million; and (5) an agricultural/farmland loan relationship that totaled
$0.9 million. The agricultural loan is partially guaranteed by the USDA
Farm Service Agency.

Troubled Debt Restructuring.

Another category of assets which contribute to our credit risk is troubled
debt restructurings ("TDRs"). A TDR is a loan for which a concession
has been granted to the borrower due to a deterioration of the borrower's

financial condition. Such concessions may include reduction in interest
rates, deferral of interest or principal payments, principal forgiveness
and other actions intended to minimize the economic loss and to
avoid foreclosure or repossession of the collateral. We strive to identify
borrowers in financial difficulty early and work with them to modify to
more affordable terms before such loan reaches nonaccrual status. In
evaluating whether to restructure a loan, management analyzes the
long-term financial condition of the borrower, including guarantor and
collateral support, to determine whether the proposed concessions will
increase the likelihood of repayment of principal and interest. TDRs that
are not performing in accordance with their restructured terms and are
either contractually 90 days past due or placed on nonaccrual status are
reported as non-performing loans. Our policy provides that nonaccrual
TDRs are returned to accrual status after a period of satisfactory
and reasonable future payment performance under the terms of the
restructuring. Satisfactory payment performance is generally no less
than six consecutive months of timely payments and demonstrated
ability to continue to repay.

Under section 4013 of the Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”), which was signed into law on March
27, 2020 and subsequently modified by later legislation, financial
institutions have the option to temporarily suspend certain requirements
under U.S. generally accepted accounting principles related to troubled
debt restructurings for a limited period of time to account for the effects
of COVID-19. This provision allows a financial institution the option to
not apply the guidance on accounting for troubled debt restructurings to
loan modifications, such as extensions or deferrals, related to COVID-19
made between March 1, 2020 and the earlier of (i) January 1, 2022 or
(ii) 60 days after the end of the COVID-19 national emergency. The relief
can only be applied to modifications for borrowers that were not more
than 30 days past due as of December 31, 2019. First Guaranty elected
to adopt these provisions of the CARES Act.

At December 31, 2022, First Guaranty had one outstanding TDR
which was a $1.1 million farmland loan. The restructuring of this loan
was related to interest rate and amortization concessions. The TDR
at December 31, 2021 was a $3.4 million non-farm non-residential
loan secured by commercial real estate that was on nonaccrual. The
restructuring of this loan was related to interest rate and amortization
concessions. The loan was secured by a hotel facility. This loan was not
eligible for a CARES Act modification. This loan was subsequently sold
in the second quarter of 2022.

The TDR requirements became inapplicable to First Guaranty upon our
adoption of CECL on January 1, 2023.

Classified Assets.

Federal regulations provide for the classification of loans and other
assets, such as debt and equity securities considered by the FDIC to
be of lesser quality, as "substandard," "doubtful" or "loss." An asset is
considered "substandard" if it is inadequately protected by the current
net worth and paying capacity of the obligor or of the collateral pledged,
if any. "Substandard" assets include those characterized by the "distinct
possibility" that the insured institution will sustain "some loss" if the
deficiencies are not corrected. Assets classified as "doubtful" have all
of the weaknesses inherent in those classified as "substandard," with
the added characteristic that the weaknesses present make "collection
or liquidation in full," on the basis of currently existing facts, conditions,
and values, "highly questionable and improbable." Assets classified as
"loss" are those considered "uncollectible" and of such little value that
their continuance as assets without the establishment of a specific

First Guaranty Bancshares Annual Report 2022 89

allowance for loan and lease losses is not warranted. Assets that do
not currently expose the insured institution to sufficient risk to warrant
classification in one of the aforementioned categories but possess
weaknesses are designated as "special mention" by our management.

When an insured institution classifies problem assets as either
substandard or doubtful, it may establish general allowances in
an amount deemed prudent by management to cover losses that
were both probable and reasonable to estimate. General allowances
represent allowances which have been established to cover accrued
losses associated with lending activities that were both probable and
reasonable to estimate, but which, unlike specific allowances, have
not been allocated to particular problem assets. When an insured
institution classifies problem assets as "loss," it is required either to
establish a specific allowance for losses equal to 100% of that portion
of the asset so classified or to charge-off such amount. An institution's
determination as to the classification of its assets and the amount of its
valuation allowances is subject to review by the regulatory authorities,
which may require the establishment of additional general or specific
allowances.

In connection with the filing of our periodic regulatory reports and in
accordance with our classification of assets policy, we continuously
assess the quality of our loan portfolio and we regularly review the
problem loans in our loan portfolio to determine whether any loans
require classification in accordance with applicable regulations.
Loans are listed on the "watch list" initially because of emerging
financial weaknesses even though the loan is currently performing as
agreed, or delinquency status, or if the loan possesses weaknesses
although currently performing. Management reviews the status of our
loan portfolio delinquencies, by product types, with the full board of
directors on a monthly basis. Individual classified loan relationships
are discussed as warranted. If a loan deteriorates in asset quality, the
classification is changed to "special mention," "substandard," "doubtful"
or "loss" depending on the circumstances and the evaluation. Generally,
loans 90 days or more past due are placed on nonaccrual status and
classified "substandard."

We also employ a risk grading system for our loans to help assure that
we are not taking unnecessary and/or unmanageable risk. The primary
objective of the loan risk grading system is to establish a method of
assessing credit risk to further enable management to measure loan
portfolio quality and the adequacy of the allowance for loan and
lease losses. Further, we contract with an external loan review firm to
complete a credit risk assessment of the loan portfolio on a regular
basis to help determine the current level and direction of our credit risk.
The external loan review firm communicates the results of their findings
to the Bank's audit committee. Any material issues discovered in an
external loan review are also communicated to us immediately.

The decrease in classified assets at December 31, 2022 as compared
to December 31, 2021 was due to a $10.6 million decrease in
substandard loans. Substandard loans at December 31, 2022 consisted
of $9.8 million in one- to four-family residential, $9.0 million in non-farm
non-residential, $8.3 million in commercial and industrial, $5.1 million
in farmland, $4.0 million in agricultural, $2.3 million in multifamily,
$1.8 million in commercial leases, $0.8 million in construction and land
development, and the remaining $1.6 million comprised of consumer
and other loans. Special mention loans decreased by $108.4 million in
2022. The decrease in special mention loans was primarily the result of
the upgrade of several loan relationships from special mention to pass
status. The largest industry type was associated with hotel loans. First
Guaranty had previously moved several hotel relationships to special
mention following the onset of the COVID-19 pandemic.

Allowance for Loan Losses.

The allowance for loan and lease losses is maintained to absorb
potential losses in the loan portfolio. The allowance is increased by

the provision for loan losses offset by recoveries of previously charged-
off loans and is decreased by loan charge-offs. The provision is a
charge to current expense to provide for current loan losses and to
maintain the allowance commensurate with management's evaluation
of the risks inherent in the loan portfolio. Various factors are taken into
consideration when determining the amount of the provision and the
adequacy of the allowance. These factors include but are not limited to:

•

past due and non-performing assets;

specific internal analysis of loans requiring special attention;

the current level of regulatory classified and criticized assets and
the associated risk factors with each;

changes in underwriting standards or lending procedures and
policies;

charge-off and recovery practices;

national and local economic and business conditions including the
COVID-19 pandemic;

nature and volume of loans;

overall portfolio quality, loan concentrations and portfolio stress
test results;

adequacy of loan collateral;

quality of loan review system and degree of oversight by our board
of directors;

competition and legal and regulatory requirements on borrowers;

examinations of the loan portfolio by federal and state regulatory
agencies and examinations; and

review by our internal loan review department and independent
accountants.

The data collected from all sources in determining the adequacy of
the allowance is evaluated on a regular basis by management with
regard to current national and local economic trends, prior loss history,
underlying collateral values, credit concentrations and industry risks. An
estimate of potential loss on specific loans is developed in conjunction
with an overall risk evaluation of the total loan portfolio. This evaluation
is inherently subjective as it requires estimates that are susceptible to
significant revision as new information becomes available.

The allowance consists of specific, general, and unallocated
components. The specific component relates to loans that are
classified as doubtful, substandard, and impaired. For such loans that
are also classified as impaired, an allowance is established when the
discounted cash flows (or collateral value or observable market price)
of the impaired loan is lower than the carrying value of that loan. Also, a
specific reserve is allocated for our syndicated loans, including shared
national credits. The general component covers non-classified loans
and special mention loans and is based on historical loss experience for
the past three years adjusted for qualitative factors described above. An
unallocated component is maintained to cover uncertainties that could
affect the estimate of probable losses.

The allowance for loan and lease losses was $23.5 million at
December 31, 2022 compared to $24.0 million at December 31, 2021.

The balance in the allowance for loan and lease losses is principally influenced by the provision for loan losses and by net loan loss experience.
Additions to the allowance are charged to the provision for loan losses. Losses are charged to the allowance as incurred and recoveries on losses
previously charged to the allowance are credited to the allowance at the time recovery is collected. The table below reflects the activity in the
allowance for loan and lease losses for the years indicated.

Balance at beginning of year

24,029

24,518

At or For the Years Ended December 31,

2022

2021

(dollars in thousands)

Charge-offs:

Real Estate:

Construction and land development

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial loans

Commercial leases

Consumer and other

Total Non-Real Estate

Total charge-offs

Recoveries:

Real Estate:

Construction and land development

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial loans

Commercial leases

Consumer and other

Total Non-Real Estate

Total recoveries

Net (charge-offs) recoveries

Provision for loan losses

Balance at end of year

Ratios:

Net loan charge-offs to average loans

Net loan charge-offs to loans at end of year

Allowance for loan and lease losses to loans at end of year

Net loan charge-offs to allowance for loan and lease losses

Net loan charge-offs to provision charged to expense

(65)

(94)

(603)

(762)

(460)

(563)

(150)

(4,151)

(5,324)

(6,086)

340

452

349

1,217

133

473

702

1,919

(4,167)

3,656

(92)

(266)

(12)

(1,020)

(1,390)

(149)

(89)

(1,494)

(1,732)

(3,122)

141

320

437

578

(2,544)

2,055

$ 23,518

$ 24,029

0.18%

0.17%

0.93%

17.72%

113.98%

0.13%

0.12%

1.11%

10.59%

123.80%

First Guaranty Bancshares Annual Report 2022 91

2022 and $0.6 million during 2021. The details of the $6.1 million in
charged-off loans were as follows:

1. First Guaranty charged off $1.9 million in consumer loans related to
Hurricane Ida relief loans during 2022. These loans were originated
in the Fall of 2021 following Hurricane Ida that impacted Southeast
Louisiana on August 29, 2021.

2. First Guaranty charged off $0.4 million on a non-farm non-residential
loan during the second quarter of 2022. This loan was subsequently
sold in the second quarter of 2022.

3. First Guaranty charged off $0.3 million on an agricultural loan during
the third quarter of 2022. This loan had no remaining principal
balance at December 31, 2022.

4. First Guaranty charged off $0.2 million on a commercial lease
loan during the third quarter of 2022. This loan had no remaining
principal balance at December 31, 2022.

5. Smaller loans and overdrawn deposit accounts comprised the

remaining $3.3 million of charge-offs for 2022.

TOTAL LOANS
In Millions

TOTAL DEPOSITS
In Millions

A provision for loan losses of $3.7 million was made during the year
ended December 31, 2022 as compared to $2.1 million for 2021. The
provisions made in 2022 were taken to provide for current loan losses
and to maintain the allowance proportionate to risks inherent in the
loan portfolio. First Guaranty’s incurred loan loss calculation method
incorporates risk factors in the loan portfolio such as historical loss
rates along with qualitative and quantitative factors. The composition
of the loan portfolio affects the final allowance calculation.

The loan portfolio factors in 2022 that primarily affected the allocation
of the allowance included the following:

•

The loan portfolio risks that changed and affected the allocation
of the allowance were due to changes in historical loss rates,
adjustments of certain qualitative factors to take into account
the current estimated impact of COVID-19 and changes in other
market conditions, loan concentrations including those related
to commercial real estate and loan relationships and related
economic conditions on borrowers' ability to repay loans and for
allocations to impaired loans within their respective categories.

• Construction and land development loans increased during 2022
due to advances on existing construction lines of credit and new
loan originations. Several loans previously in this category moved
to permanent financing and are now included in the multifamily
loan category as of December 31, 2022. The allowance increase
related to this portfolio was due to growth in the portfolio along
with changes in the qualitative analysis of the portfolio related to
economic conditions.

• One- to four-family residential loans increased during 2022. The
allowance decrease related to this portfolio was due to changes
in the qualitative analysis of the portfolio related to COVID-19 and
improving economic conditions.

• Multifamily loans increased during 2022. The allowance related
to this portfolio decreased due to improving economic conditions.

• Non-farm non-residential loans increased by $106.5 million
during 2022. The allowance decrease related to this portfolio was
due to the sale of an impaired loan with a specific reserve, the
payoff of a substandard loan, and improved credit quality in this
portfolio. There was growth in the portfolio along with changes
in the qualitative analysis of the portfolio related to COVID-19
and historical loss rates. First Guaranty continues to maintain a
significant allowance for hotel loans based on qualitative factors
primarily related to COVID-19 and related credit ratings for hotel
loans. Special mention loans in this category declined which also
contributed to a reduction in the related allowance.

• Commercial and industrial loans decreased during 2022. The
allowance decrease related to this portfolio was due to the changes
in historical loss rates and changes in the qualitative analysis of
the portfolio related to COVID-19 and economic conditions.

• Commercial leases increased during 2022. The allowance
increase related to this portfolio was due to the changes in
historical loss rates and changes in the qualitative analysis of the
portfolio related to COVID-19 and due to growth in the portfolio.
Commercial leases grew during 2022 from $246.0 million at
December 31, 2021 to $317.6 million at December 31, 2022.

•

First Guaranty continues to monitor the acquired loans from prior
acquisitions. Discounts on the acquired loans were approximately
$1.1 million at December 31, 2022.

First Guaranty charged off $6.1 million in loan balances during the
year ended December 31, 2022 as compared to $3.1 million for 2021.
Recoveries totaled $1.9 million for the year ended December 31,

Allocation of Allowance for Loan and Lease Losses.

The following tables set forth the allowance for loan and lease losses allocated by loan category and the percent of loans in each category to total
loans at the dates indicated. The allowance for loan and lease losses allocated to each category is not necessarily indicative of future losses in any
particular category and does not restrict the use of the allowance for losses in other categories.

2022

Percent of
Allowance to
Total Allowance
for Loan and
Lease Losses

Allowance
for Loan and
Lease Losses

At December 31,

Percent of
Loans in Each
Category to
Total Loans

Allowance
for Loan and
Lease Losses

(dollars in thousands)

2021

Percent of
Allowance to
Total Allowance
for Loan and
Lease Losses

Percent of Loans
in Each Category
to Total Loans

Real Estate:

Construction and land development

$ 1,232

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Unallocated

Total Allowance

1,761

746

9,280

240

2,194

4,879

2,506

5.2%

0.4%

7.5%

3.2%

39.5%

1.0%

9.3%

20.7%

10.7%

597

2.5%

$ 23,518

100.0%

9.2%

1.0%

14.5%

4.7%

39.3%

1.5%

15.3%

12.6%

1.9%

100.0%

$ 769

478

1,921

940

3.2%

2.0%

8.0%

3.9%

12,730

53.0%

183

2,363

2,486

1,371

0.8%

9.8%

10.3%

5.7%

788

3.3%

$ 24,029

100.0%

8.1%

1.5%

13.3%

3.0%

40.9%

1.2%

18.4%

11.4%

2.2%

100.0%

The following table presents net charge-offs during the period to average loans outstanding:

December 31, 2022

December 31, 2021

Net
(Charge-offs)
Recoveries

Average Loans
Oustanding1

Net Charge-offs
During Period to
Average Loans
Oustanding

Net

(Charge-offs)
Recoveries

Average Loans
Oustanding1

Net Charge-offs
During Period to
Average Loans
Oustanding

(in thousands, except for %)

Real Estate:

Construction and land development

$ 275

$ 203,364

0.1%

$ (92 )

$ 168,269

(0.1)%

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

(18)

452

(254)

(327)

(472)

(145)

(3,678)

27,343

330,752

103,194

957,858

38,175

390,183

273,367

48,301

0.4%

(0.9)%

(0.1)%

(7.6)%

(222)

(12)

(1,013)

(132)

(1,174)

28,596

281,835

95,936

845,428

30,888

357,746

220,747

43,957

0.3%

(0.1)%

(0.4)%

(2.7)%

1Average loans outstanding was calculated using the trailing four quarters total for loans.

First Guaranty Bancshares Annual Report 2022 93

Investment Securities.

Investment securities at December 31, 2022 totaled $451.5 million, an increase of $87.4 million, or 24.0%, compared to $364.2 million at
December 31, 2021. We purchase securities for our investment portfolio to provide a source of liquidity, to provide an appropriate return on funds
invested, to manage interest rate risk and meet pledging requirements for public funds and borrowings.

The securities portfolio consisted principally of U.S. Government and Government agency securities, agency mortgage-backed securities, corporate
debt securities and municipal bonds. U.S. government agencies consist of FHLB, Federal Farm Credit Bank ("FFCB"), Freddie Mac and Fannie
Mae obligations. Mortgage-backed securities that we purchase are issued by Freddie Mac and Fannie Mae. Management monitors the securities
portfolio for both credit and interest rate risk. We generally limit the purchase of corporate securities to individual issuers to manage concentration
and credit risk. Corporate securities generally have a maturity of 10 years or less. U.S. Government securities consist of U.S. Treasury bills that have
maturities of less than 30 days. Government agency securities generally have maturities of 15 years or less. Agency mortgage-backed securities
have stated final maturities of 15 to 20 years.

At December 31, 2022, the U.S. Government and Government agency securities and municipal bonds qualified as securities available to
collateralize public funds. Securities pledged as collateral totaled $260.8 million at December 31, 2022 and $234.9 million at December 31, 2021.
Our public funds deposits have a seasonal increase due to tax collections at the end of the year and the first quarter. We typically collateralize the
seasonal public fund increases with short term instruments such as U.S. Treasuries or other agency backed securities.

Our available for sale securities portfolio totaled $131.5 million at December 31, 2022, a decrease of $79.2 million, or 37.6%, compared to
$210.6 million at December 31, 2021. The decrease was primarily due to the transfer of AFS securities to the HTM portfolio in the first quarter of
2022 of $165.8 million that was partially offset by purchases.

Our held to maturity securities portfolio had an amortized cost of $320.1 million at December 31, 2022, compared to $153.5 million at December 31,
2021. The increase was primarily due to the transfer of AFS securities to the HTM portfolio in the first quarter of 2022.

The following tables set forth the stated maturities and weighted average yields of our investment securities at December 31, 2022.

At December 31, 2022

One Year or Less

Carrying
Value

Weighted
Average
Yield

More than One Year
through Five Years

More than Five Years
through Ten Years

Carrying
Value

Weighted
Average
Yield

Carrying
Value

Weighted
Average
Yield

More than Ten Years

Carrying
Value

Weighted
Average
Yield

(in thousands, except for %)

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

$ 49,885

0.6%

$ 48,615

1.0%

$ -

15,998

5.4%

$ -

1,026

2.8%

3,049

3.5%

3,131

4.4%

7,141 3.5%

3.0%

2,608 4.0%

Total available for sale securities

$ 50,911

0.6%

$ 51,664

1.1%

$ 19,134 5.2%

$ 9,749 3.7%

Held to maturity:

U.S. Government Agencies

Corporate debt securities

Total held to maturity securities

$ -

$ 19,458

1.6%

$ 245,574 2.5%

402 20.6%

54,634

3.2%

$ 402 20.6%

$ 74,092

2.8%

$ 245,574 2.5%

At December 31, 2022, $50.9 million, or 11.3%, of the securities portfolio was scheduled to mature in less than one year. Securities, not including
mortgage-backed securities and collateralized mortgage obligations, with contractual maturity dates over 10 years totaled $252.7 million, or
56.0%, of the total portfolio at December 31, 2022. We closely monitor the investment portfolio's yield, duration, and maturity to ensure a
satisfactory return. The average maturity of the securities portfolio is affected by call options that may be exercised by the issuer of the securities
and are influenced by market interest rates. Prepayments of mortgages that collateralize mortgage-backed securities also affect the maturity of
the securities portfolio.

Deposits.

Managing the mix and pricing the maturities of deposit liabilities is an important factor affecting our ability to maximize our net interest margin.
The strategies used to manage interest-bearing deposit liabilities are designed to adjust as the interest rate environment changes. We regularly
assess our funding needs, deposit pricing and interest rate outlooks. From December 31, 2021 to December 31, 2022, total deposits increased
$127.3 million, or 4.9%, to $2.7 billion. Noninterest-bearing demand deposits decreased $8.2 million, or 1.5% to $524.4 million at December 31,
2022. The increase in noninterest-bearing demand deposits was primarily due to growth of compensating balances associated with new loan
originations, existing loan customers, and new customers as part of First Guaranty's efforts to increase lower cost deposits. Interest-bearing
demand deposits increased $184.7 million, or 14.5%, to $1.5 billion at December 31, 2022. The increase in interest-bearing demand deposits
was primarily concentrated in public funds interest-bearing demand deposits. Savings deposits increased $4.1 million, or 2.0%, to $205.8 million
at December 31, 2022, primarily related to increases in individual savings deposits. Time deposits decreased $53.3 million, or 9.1%, to
$533.4 million at December 31, 2022, primarily due to decreases in consumer and business time deposits.

As we seek to strengthen our net interest margin and improve our earnings, attracting non-interest-bearing or lower cost deposits will be a primary
emphasis. Management will continue to evaluate and update our product mix and related technology in its efforts to attract additional customers.
We currently offer a number of deposit products that are competitively priced and designed to attract and retain customers with primary emphasis
on noninterest-bearing deposits and other lower cost deposits.

The following table sets forth the distribution of deposit accounts, by account type, for the dates indicated.

Total Deposits

2022

For the Years Ended December 31,

Average
Balance

Percent

Weighted
Average Rate

Average
Balance

(in thousands except for %)

Noninterest-bearing Demand

Interest-bearing Demand

Savings

Time

Total Deposits

$ 552,786

1,362,396

212,329

546,776

20.7%

50.9%

7.9%

20.5%

$ 2,674,287

100.0%

1.6%

0.4%

2.0%

1.2%

2021

Percent

19.8%

45.0%

8.0%

27.2%

$ 477,802

1,082,922

191,967

655,025

$ 2,407,716

100.0%

Weighted
Average Rate

0.7%

0.1%

2.0%

0.8%

Individual and Business Deposits

Average
Balance

Noninterest-bearing Demand

$ 544,948

Interest-bearing Demand

Savings

Time

424,257

170,571

514,167

2022

Percent

32.9%

25.7%

10.3%

31.1%

Total Individual and Business Deposits

$ 1,653,943

100.0%

For the Years Ended December 31,

Weighted
Average Rate

Average
Balance

(in thousands except for %)

2021

Percent

Weighted
Average Rate

2.1%

0.1%

2.0%

1.2%

$ 471,371

390,481

154,560

569,924

29.7%

24.6%

9.8%

35.9%

$ 1,586,336

100.0%

1.0%

0.1%

2.2%

1.0%

Public Fund Deposits

2022

For the Years Ended December 31,

Average
Balance

Percent

Weighted
Average Rate

Average
Balance

2021

Percent

Weighted
Average Rate

Noninterest-bearing Demand

$ 7,838

Interest-bearing Demand

Savings

Time

938,139

41,758

32,609

0.8%

91.9%

4.1%

3.2%

Total Public Fund Deposits

$ 1,020,344

100.0%

(in thousands except for %)

1.3%

1.9%

1.4%

$ 6,431

692,441

37,407

85,101

0.8%

84.3%

4.5%

10.4%

$ 821,380

100.0%

0.5%

0.2%

0.8%

0.5%

First Guaranty Bancshares Annual Report 2022 95

At December 31, 2022, public funds deposits totaled $1.1 billion compared to $957.9 million at December 31, 2021. Public funds time deposits
totaled $32.4 million at December 31, 2022 compared to $31.4 million at December 31, 2021. Public funds deposits increased due to new
balances from existing customers that was primarily attributed to seasonal fluctuations. First Guaranty has developed a program for the retention
and management of public funds deposits. Since the end of 2012, First Guaranty has maintained public funds deposits in excess of $400.0
million. These deposits are from public entities such as school districts, hospital districts, sheriff departments and municipalities. The majority of
these funds are under fiscal agency agreements with terms of three years or less. Deposits under fiscal agency agreements are generally stable
but public entities may maintain the ability to negotiate term deposits on a specific basis including with other financial institutions. These deposits
generally have stable balances as we maintain both operating accounts and time deposits for these entities. There is a seasonal component to
public deposit levels associated with annual tax collections. Public funds will increase at the end of the year and during the first quarter. In addition
to seasonal fluctuations, there are monthly fluctuations associated with internal payroll and short-term tax collection accounts for our public funds
deposit accounts. Public funds deposit accounts are collateralized by FHLB letters of credit, by expanded reciprocal deposit insurance programs,
by Louisiana municipal bonds and by eligible government and government agency securities such as those issued by the FHLB, FFCB, Fannie
Mae, and Freddie Mac. First Guaranty continues to grow the proportion of its public funds portfolio that is collateralized by reciprocal deposit
insurance as an alternative to pledging securities or utilizing FHLB letters of credit. First Guaranty initiated this strategy to more efficiently invest
these deposits in higher yielding loans to improve the net interest margin and earnings. Total public funds collateralized by reciprocal deposit
insurance programs increased to $576.3 million at December 31, 2022 compared to $496.4 million at December 31, 2021.

The following table sets forth public funds as a percent of total deposits.

Public Funds:

Noninterest-bearing Demand

Interest-bearing Demand

Savings

Time

Total Public Funds

Total Deposits

Total Public Funds as a percent of Total Deposits

At December 31, 2022, the aggregate amount of outstanding
certificates of deposit in amounts greater than or equal to $250,000 was
approximately $155.0 million. At December 31, 2022, approximately
$65.5 million of our certificates of deposit greater than or equal to
$250,000 had a remaining term greater than one year.

The total amount of our uninsured deposits (deposits in excess of
$250,000, as calculated in accordance with FDIC regulations) was
estimated at $384.5 million at December 31, 2022. This total excludes
public funds deposits that are collateralized by securities or FHLB
letters of credit.

The following table sets forth the maturity of certificates of deposits
greater than $250,000 at December 31, 2022.

Three months or less

Three to six months

Six months to one year

One to three years

More than three years

December 31,
2022

(in thousands)

$ 16,534

10,530

50,600

49,794

6,013

Total certificates of deposit greater
than $250,000

$ 133,471

At December 31,

2022

2021

(in thousands except for %)

11,730

1,022,760

46,354

32,427

5,919

882,156

38,432

31,365

1,113,271

957,872

$ 2,723,792

$ 2,596,492

40.9%

36.9%

Borrowings.

First Guaranty maintains borrowing relationships with other financial
institutions as well as the Federal Home Loan Bank on a short and long-
term basis to meet liquidity needs. First Guaranty had $146.4 million in
short-term borrowings outstanding at December 31, 2022 compared
to $6.4 million outstanding at December 31, 2021. The short-term
borrowings at December 31, 2022 were comprised of short-term
Federal Home Loan Bank advances of $120.0 million, a line of credit
of $20.0 million with an outstanding balance of $20.0 million and
repurchase agreements of $6.4 million. The short-term borrowings
outstanding at December 31, 2021 were comprised of repurchase
agreements of $6.4 million. First Guaranty had available lines of credit
of $26.5 million, with $20.0 million outstanding at December 31,
2022. A net availability of $6.5 million remained.

At December 31, 2022, we had $388.6 million in FHLB letters of
credit outstanding obtained primarily for collateralizing public deposits
compared to $250.7 million at December 31, 2021.

First Guaranty had senior long-term debt totaling $21.9 million at
December 31, 2022 and $25.2 million at December 31, 2021.

First Guaranty had a long-term FHLB advance that was acquired
from the Union transaction that totaled $3.2 million at December 31,
2021. This advance was paid off during the first quarter of 2022.

First Guaranty also had subordinated debt totaling $15.0 million at
December 31, 2022 and $14.8 million at December 31, 2021.

Shareholders' Equity

Net Interest Income

Total shareholders' equity increased to $235.0 million at December 31,
2022 from $223.9 million at December 31, 2021. The increase
in shareholders' equity was principally the result of an increase
of $19.7 million in retained earnings, partially offset by an increase
of $8.6 million in accumulated other comprehensive loss. The
$19.7 million increase in retained earnings was due to net income of
$28.9 million during the year ended December 31, 2022, partially offset
by $6.9 million in cash dividends paid on shares of our common stock
and $2.3 million in cash dividends paid on shares of our preferred
stock. The increase in accumulated other comprehensive loss was
primarily attributed to the increase in unrealized losses on available for
sale securities during the year ended December 31, 2022.

Results of Operations

A discussion regarding significant changes in our financial condition
from December 31, 2020 to December 31, 2021 and our results of
operations for the year ended December 31, 2021 can be found under
“Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations” in our Annual Report on Form 10-K for
the year ended December 31, 2021, filed with the SEC on March 16,
2022, which is available on the SEC’s website at www.sec.gov and on
our website, www.fgb.net.

Performance Summary

Year ended December 31, 2022 compared with year ended
December 31, 2021. Net income for the year ended December 31,
2022 was $28.9 million, an increase of $1.6 million, or 5.8%, as
compared to $27.3 million for the year ended December 31, 2021. The
increase in net income of $1.6 million for the year ended December 31,
2022 was the result of several factors. First Guaranty experienced an
increase in interest income and an increase in noninterest income. This
was partially offset by an increase in interest expense, an increase in
the provision for loan losses and an increase in noninterest expense.

Loan interest income increased due to the growth in First Guaranty's
loan portfolio, including loan fees recognized as an adjustment to
yield from the origination of the SBA guaranteed PPP loans. Securities
interest income increased due to an increase in the average balance of
the investment portfolio. Noninterest income increased primarily due
to gains on the sale of loans during the third quarter of 2022. Factors
that partially offset the increase in net income included an increase in
interest expense due to increases in volume and market interest rates.
The increase in the provision was related to growth in the loan portfolio
and due to elevated charge-offs as compared to the same period in
2021. Noninterest expense increased primarily due to increased
personnel expenses, software expense, legal and professional fees,
travel expense and capital taxes. Earnings per common share for the
years ended December 31, 2022 was $2.48 per common share, an
increase of 2.5% or $0.06 per common share from $2.42 per common
share for the year ended December 31, 2021. Earnings per share was
afected by the increase in earnings.

Our operating results depend primarily on our net interest income, which
is the difference between interest income earned on interest-earning
assets, including loans and securities, and interest expense incurred on
interest-bearing liabilities, including deposits and other borrowed funds.
Interest rate fluctuations, as well as changes in the amount and type of
interest-earning assets and interest-bearing liabilities, combine to affect
net interest income. First Guaranty’s assets and liabilities are generally
most affected by changes in the Federal Funds rate, LIBOR rate, short
term Treasury rates such as one month and three month Treasury bills,
and longer term Treasury rates such as the U.S. ten year Treasury rate.
These rates increased in 2022 due to the impact of inflation and the
Federal Reserves actions to reduce inflation by increasing interest
rates. Our net interest income is affected by changes in the amount
and mix of interest-earning assets and interest-bearing liabilities. There
may also be a time lag in the effect of interest rate changes on assets
and liabilities. It is also affected by changes in yields earned on interest-
earning assets and rates paid on interest-bearing deposits and other
borrowed funds.

TOTAL NET INCOME
In Millions

TOTAL COMMON SHAREHOLDERS' EQUITY
In Millions

First Guaranty Bancshares Annual Report 2022 97

Interest income on loans increased $22.6 million, or 21.9%, to
$126.0 million for the year ended December 31, 2022 as a result of
an increase in the average balance and average yield of loans. The
average balance of loans (excluding loans held for sale) increased by
$284.2 million to $2.3 billion for the year ended December 31, 2022
from $2.0 billion for the year ended December 31, 2021 as a result
of new loan originations. The average yield on loans (excluding loans
held for sale) increased by 35 basis points to 5.48% for the year ended
December 31, 2022 from 5.13% for the year ended December 31,
2021 due to the improved mix of loans along with an increase in market
interest rates.

Interest Expense

Year ended December 31, 2022 compared with year ended
December 31, 2021. Interest expense increased $14.2 million, or
63.8%, to $36.5 million for the year ended December 31, 2022 from
$22.3 million for the year ended December 31, 2021 due primarily to an
increase in market interest rates and due to an increase in the average
balance of interest-bearing liabilities. The average rate of interest-
bearing demand deposits increased by 90 basis points during the year
ended December 31, 2022 to 1.57% as compared to 0.67% for the prior
year. The increase in market interest rates, particularly U.S. Treasury
rates, contributed to the increase in rates paid on interest-bearing
demand deposits. Treasury rates increased as the Federal Reserve
increased rates to address increased inflation in the U.S. economy.
The average rate of time deposits decreased two basis points during
the year ended December 31, 2022 to 1.95% as compared to 1.97%
for the prior year. The decrease in the average rate of time deposits
was due to First Guaranty's efforts to reprice maturing time deposits to
more attractive rates. The average balance of interest-bearing liabilities
increased by $185.0 million during the year ended December 31,
2022 to $2.2 billion. This increase was a result of a $279.5 million
increase in the average balance of interest-bearing demand deposits,
a $20.4 million increase in the average balance of savings deposits,
which were partially offset by a $108.2 million decrease in the average
balance of time deposits and a $6.6 million decrease in the average
balance of borrowings.

Average Balances and Yields

The following table sets forth average balance sheet balances, average
yields and costs, and certain other information for the years indicated.
No tax-equivalent yield adjustments were made, as the effect thereof
was not material. All average balances are daily average balances.
Nonaccrual loans were included in the computation of average
balances, but have been reflected in the table as loans carrying a zero
yield. Loans, net of unearned income, include loans held for sale. The
yields set forth below include the effect of deferred fees, discounts and
premiums that are amortized or accreted to interest income or expense.

The net interest income yield presented below is calculated by dividing
net interest income by average interest-earning assets and is a measure
of the efficiency of the earnings from the balance sheet activities. It
is affected by changes in the difference between interest on interest-
earning assets and interest-bearing liabilities and the percentage of
interest-earning assets funded by interest-bearing liabilities.

A financial institution's asset and liability structure is substantially
different from that of a non-financial company, in that virtually all
assets and liabilities are monetary in nature. Accordingly, changes in
interest rates may have a significant impact on a financial institution's
performance. The impact of interest rate changes depends on the
sensitivity to the change of our interest-earning assets and interest-
bearing liabilities. The effects of the changing interest rate environment
in recent periods and our interest sensitivity position is discussed below.

Year ended December 31, 2022 compared with year ended
December 31, 2021. Net interest income for the years ended
December 31, 2022 and 2021 was $100.0 million and $89.6 million,
respectively. The increase in net interest income for the year ended
December 31, 2022 as compared to the prior year was primarily due
to an increase in the average balance of our total interest-earning
assets and an increase in the average yield of our total interest-earning
assets, partially offset by an increase in the average balance of our total
interest-bearing liabilities and an increase in the average rate of our total
interest-bearing liabilities. For the year ended December 31, 2022, the
average balance of our total interest-earning assets increased by $274.5
million to $2.9 billion due to increased securities balances, and strong
growth in our loan portfolio. The average yield of our interest-earning
assets increased by 45 basis points to 4.74% from 4.29% for the year
ended December 31, 2021 due to an improved mix of higher yielding
assets. For the year ended December 31, 2022, the average balance
of our total interest-bearing liabilities increased by $185.0 million to
$2.2 billion due to the growth in low cost deposits and the average
rate of our total interest-bearing liabilities increased by 55 basis points
to 1.66% from 1.11% for the year ended 2021. The rise in market
interest rates, particularly associated with Treasury rates, contributed
to the increase in our liabilities cost. Treasury rates increased as the
Federal Reserve increased rates to address rising inflation during 2022.
As a result, our net interest rate spread decreased 10 basis points to
3.08% for the year ended December 31, 2022 from 3.18% for the year
ended December 31, 2021. Our net interest margin increased three
basis points to 3.47% for the year ended December 31, 2022 from
3.44% for the year ended December 31, 2021.

Interest Income

Year ended December 31, 2022 compared with year ended
December 31, 2021. Interest income increased $24.7 million, or
22.0%, to $136.6 million for the year ended December 31, 2022 as
compared to the prior year. First Guaranty's loan portfolio expanded
during 2022 due to growth associated with our loan originations. These
factors contributed to the increase in interest income as the average
balance of our total interest-earning assets, primarily associated with
loans, increased, and the average yield of interest-earning assets
increased. The average balance of our interest-earning assets increased
$274.5 million to $2.9 billion for the year ended December 31, 2022 as
compared to the prior year. The average yield of interest-earning assets
increased by 45 basis points to 4.74% for the year ended December 31,
2022 compared to 4.29% for the year ended December 31, 2021.

Interest income on securities increased $1.0 million to $9.3 million
for the year ended December 31, 2022 as compared to the prior year
primarily as a result of an increase in average balances. The average
balance of securities increased $119.6 million to $452.2 million for the
year ended December 31, 2022 from $332.6 million for the year ended
December 31, 2021 primarily due to an increase in the average balance
of our U.S. Treasuries securities portfolio compared to the prior year.
The average yield on securities decreased by 43 basis points to 2.05%
for the year ended December 31, 2022 from 2.48% for the year ended
December 31, 2021 due to the increase in lower yielding Treasury
securities.

Assets
Interest-earning assets:
Interest-earning deposits with banks(1)
Securities (including FHLB stock)
Federal funds sold
Loans held for sale
Loans, net of unearned income(6)
Total interest-earning assets

Noninterest-earning assets:

Cash and due from banks
Premises and equipment, net
Other assets
Total Assets

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits
Savings deposits
Time deposits
Borrowings
Total interest-bearing liabilities

Noninterest-bearing liabilities:

Demand deposits
Other
Total Liabilities

Shareholders' Equity
Total Liabilities and Shareholders' Equity
Net interest income

Net interest rate spread(2)

Net interest-earning assets(3)

Net interest margin(4)(5)

Average interest-earning assets to interest-bearing
liabilities

December 31, 2022

December 31, 2021

Average
Balance

Interest

Yield/
Rate

Average
Balance

(in thousands, except for %)

Interest

Yield/
Rate

$ 130,406
452,213
256
-
2,298,273
2,881,148

1,324
9,250
-
-
126,002
136,576

1.02%
2.05%
-%
-%
5.48%
4.74%

$ 258,916
332,566
1,052
16
2,014,095
2,606,645

316
8,248
-
-
103,353
111,917

0.12%
2.48%
-%
-%
5.13%
4.29%

18,833
58,197
29,509
$2,987,687

$ 1,362,396
212,329
546,776
75,962
2,197,463

552,786
9,669
2,759,918

227,769
$2,987,687

$ 683,685

15,077
59,739
26,551
$ 2,708,012

21,419
915
10,682
3,518
36,534

1.57%
0.43%
1.95%
4.63%
1.66%

$ 1,082,922
191,967
655,025
82,565
2,012,479

7,237
204
12,893
1,965
22,299

0.67%
0.11%
1.97%
2.38%
1.11%

477,802
10,619
2,500,900

207,112
$ 2,708,012

$100,042

$ 89,618

$ 594,166

3.08%

3.47%

131.11%

3.18%

3.44%

129.52%

(1) Includes Federal Reserve balances reported in cash and due from banks on the consolidated balance sheets.
(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.
(5) The tax adjusted net interest margin was 3.48% and 3.44% for the years ended December 31, 2022 and 2021. A 21% tax rate was used to
calculate the effect on securities income from tax exempt securities for the years ended December 31, 2022 and 2021.
(6) Includes loan fees of $7.8 million and $7.2 million for the years ended December 31, 2022 and 2021. PPP loan fee income of $1.3 million and $2.0 million
was recognized for the years ended December 31, 2022 and 2021, respectively.

First Guaranty Bancshares Annual Report 2022 99

Volume/Rate Analysis

The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets
and interest-bearing liabilities for the years indicated. The table distinguishes between: (1) changes attributable to volume (changes in volume
multiplied by the prior year's rate); (2) changes attributable to rate (change in rate multiplied by the prior year's volume) and (3) total increase
(decrease) (the sum of the previous columns). Changes attributable to both volume and rate are allocated ratably between the volume and rate
categories.

Interest earned on:

Interest-earning deposits with banks

Securities (including FHLB stock)

Federal funds sold

Loans held for sale

Loans, net of unearned income

Total interest income

Interest paid on:

Demand deposits

Savings deposits

Time deposits

Borrowings

Total interest expense

For the Years Ended
December 31, 2022 vs. 2021

Increase (Decrease) Due To

Volume

Rate

Increase/Decrease

(in thousands except for %)

$ (230)

$ 1,238

$ 1,008

2,618

15,254

17,642

2,273

(2,115)

(169)

(1,616)

7,395

7,017

11,909

688

(96)

1,722

14,223

1,002

22,649

24,659

14,182

711

(2,211)

1,553

14,235

Change in net interest income

$ 17,630

$ (7,206)

$ 10,424

Provision for Loan Losses

A provision for loan losses is a charge to income in an amount that man-
agement believes is necessary to maintain an adequate allowance for
loan and lease losses. The provision is based on management's regular
evaluation of current economic conditions in our specific markets as
well as regionally and nationally, changes in the character and size of
the loan portfolio, underlying collateral values securing loans, and other
factors which deserve recognition in estimating loan losses. This evalu-
ation is inherently subjective as it requires estimates that are suscep-
tible to significant revision as more information becomes available or as
future events change.

We recorded a $3.7 million provision for loan losses for the year ended
December 31, 2022 compared to $2.1 million for 2021. The allowance
for loan losses at December 31, 2022 was $23.5 million or 0.93%
of total loans, compared to $24.0 million or 1.11% of total loans at
December 31, 2021. Total charge-offs were $6.1 million for year ended
December 31, 2022 and $3.1 million for 2021. We believe that the
allowance is adequate to cover potential losses in the loan portfolio
given the current economic conditions.

Noninterest Income

Our primary sources of recurring noninterest income are customer
service fees, ATM and debit card fees, loan fees, gains on the sale
of loans and available for sale securities and other service fees.

100

Noninterest income does not include loan origination fees which are
recognized over the life of the related loan as an adjustment to yield
using the interest method.

for

income

Noninterest
the year ended
totaled $11.0 million
December 31, 2022, an increase of $0.2 million from $10.8 million
for the year ended December 31, 2021. The increase was primarily
due to increased gains on the sale of loans. First Guaranty sold a loan
with a government guarantee in the third quarter of 2022. The loan
had a principal balance of $24.7 million with a guaranteed balance of
$19.8 million. Net securities losses were $17,000 for the year ended
December 31, 2022 as compared to net securities gains of $0.7 million
for 2021. The losses on securities sales primarily occurred as First
Guaranty sold investment securities in order to fund loan growth
and manage interest rate risk. Service charges, commissions and
fees totaled $3.2 million for the year ended December 31, 2022 as
compared to $2.7 million for 2021. ATM and debit card fees totaled
$3.4 million for the year ended December 31, 2022 and $3.6 million
for 2021. Net gains on the sale of loans were $1.8 million for the
year ended December 31, 2022 and $0.9 million for 2021. Other
noninterest income totaled $2.7 million and $2.8 million for the years
ended December 31, 2022 and 2021, respectively.

Noninterest Expense

Noninterest expense
includes salaries and employee benefits,
occupancy and equipment expense and other types of expenses.
Noninterest expense totaled $71.0 million for the year ended
December 31, 2022 and $63.9 million for the year ended December 31,
2021. Salaries and benefits expense totaled $36.7 million for the year
ended December 31, 2022 and $32.2 million for the year ended

December 31, 2021. The increase was primarily due to the increase
in personnel expense from new hires including those in the Mideast
market. Occupancy and equipment expense increased to $8.9 million
for the year ended December 31, 2022 from $8.7 million for the
year ended December 31, 2021. Other noninterest expense totaled
$25.4 million for the year ended December 31, 2022 and $23.0 million
for 2021.

The following table presents, for the years indicated, the major categories of other noninterest expense:

December 31, 2022

December 31, 2021

(in thousands)

$ 4,159

$ 3,375

1,596

1,750

1,747

1,949

728

4,191

1,236

406

696

638

393

1,997

3,888

1,794

1,760

1,711

1,755

853

3,071

826

398

764

564

801

1,945

3,391

$ 25,374

$ 23,008

Unlike many industrial companies, substantially all of our assets and
liabilities are monetary in nature. As a result, interest rates have a
more significant impact on our performance than the effects of general
levels of inflation. Interest rates may not necessarily move in the same
direction or in the same magnitude as the prices of goods and services.
However, other operating expenses do reflect general levels of inflation.

The Federal Reserve increased interest rates during 2022 to address
rising inflation in the U.S. The impact of rising interest rates associated
with inflation impacted First Guaranty's net interest income and net
interest margin along with the value of its financial assets.

Other noninterest expense:

Legal and professional fees

Data processing

ATM fees

Marketing and public relations

Taxes - sales, capital and franchise

Operating supplies

Software expense and amortization

Travel and lodging

Telephone

Amortization of core deposits

Donations

Net costs from other real estate and repossessions

Regulatory assessment

Other

Total other expense

Income Taxes

The amount of income tax expense is influenced by the amount of
pre-tax income, the amount of tax-exempt income and the amount
of other non-deductible expenses. The provision for income taxes
for the years ended December 31, 2022 and 2021 was $7.5 million
and $7.2 million, respectively. The provision for income taxes in 2022
increased as compared to 2021 due to the increase in income before
income taxes. First Guaranty's statutory tax rate was 21.0% for the years
ended December 31, 2022 and 2021.

Impact of Inflation

Our consolidated financial statements and related notes included
elsewhere in this Annual Report on Form 10-K have been prepared
in accordance with GAAP. These require the measurement of financial
position and operating results in terms of historical dollars, without
considering changes in the relative value of money over time due to
inflation or deflation.

First Guaranty Bancshares Annual Report 2022 101

Selected Financial Data

The following table presents consolidated selected financial data for First Guaranty. It does not purport to be complete and is qualified in its entirety
by more detailed financial information and the audited consolidated financial statements contained elsewhere in this annual report.

Year End Balance Data Sheet:

Investment securities

Federal funds sold

Loans, net of unearned income

Allowance for loan and lease losses

Total assets

Total deposits

Borrowings

Shareholders' equity

Common shareholders' equity

Performance Ratios and Other Data:

Return on average assets

Return on average common equity

Return on average tangible assets(1)

Return on average tangible common equity(1)

Net interest margin

Average loans to average deposits

Efficiency ratio(2)

At or For the Years Ended December 31,

2022

2021

2020

2019

2018

(in thousands except for %)

451,526

$ 364,156

$ 238,548

423

183

702

426,516

914

405,303

549

$ 2,519,077

$ 2,159,359

$1,844,135

$ 1,525,490

$ 1,225,268

23,518

24,029

24,518

10,929

10,776

$ 3,151,347

$ 2,878,120

$ 2,473,078

$ 2,117,216

$ 1,817,211

$ 2,723,792

$ 2,596,492

$2,166,318

$ 1,853,013

$ 1,629,622

183,369

49,635

$ 116,630

234,991

$ 223,889

$ 178,591

201,933

$ 190,831

$ 178,591

86,747

166,035

34,538

147,284

0.97%

1.01%

13.64%

14.06%

0.99%

1.04%

15.31%

15.98%

3.47%

3.44%

85.94%

83.65%

63.94%

63.63%

0.87%

11.36%

0.90%

13.08%

3.35%

81.25%

58.95%

0.76%

8.99%

0.78%

9.68%

3.41%

78.59%

67.48%

0.82%

9.98%

0.85%

10.77%

3.41%

75.39%

69.46%

Efficiency ratio (excluding amortization of intagibles and

securities transactions)(2)

63.30%

63.32%

68.44%

66.77%

66.63%

Full time equivalent employees (year end)

472

470

429

431

346

(Footnotes on page 104.)

102

Capital Ratios:

Average shareholders' equity to average assets

Average tangible equity to average tangible assets(3)

Common shareholders' equity to total assets

Tangible Common equity to tangible assets(3)

Income Data:

Interest income

Interest expense

Net interest income

Provision for loan losses

Noninterest income (excluding securities transactions)

Securities (losses) gains

Noninterest expense

Earnings before income taxes

Net income

Net income available to common shareholders

Per Common Share Data:

Net earnings

Cash dividends paid

Book value

Tangible book value(4)

At or For the Years Ended December 31,

2022

2021

2020

2019

2018

(in thousands except for % and share data)

7.62%

7.08%

6.41%

5.89%

7.65%

7.02%

6.63%

6.04%

7.62%

6.86%

7.22%

6.51%

8.42%

8.02%

7.84%

6.99%

8.20%

7.86%

8.10%

7.79%

136,576

36,534

100,042

3,656

11,026

(17) $

71,005

36,390

28,884

26,556

2.48

0.64

18.84

17.23

111,917

22,299

89,618

2,055

10,046

714

63,868

34,455

27,297

25,913

2.42

0.60

17.81

16.13

100,684

26,017

74,667

14,877

8,989

14,791

58,033

25,537

20,318

1.90

0.58

16.66

14.92

91,643

29,966

61,677

4,860

8,456

78,390

21,366

57,024

1,354

7,110

(157) $

(1,830)

47,219

17,897

14,241

1.34

0.54

15.49

13.68

43,275

17,675

14,213

1.33

0.53

13.82

13.24

Dividend payout ratio for Common and Preferred

31.81%

28.49%

30.68%

40.74%

39.65%

Weighted average number of shares outstanding

10,716,796

10,666,055

10,657,245

Number of shares outstanding

10,716,796

10,657,245

Asset Quality Ratios:

Non-performing assets to total assets

Non-performing assets to total loans

Non-performing loans to total loans

0.47%

0.59%

0.58%

0.70%

0.93%

0.83%

1.25%

1.68%

1.55%

1.04%

1.44%

1.12%

0.55%

0.82%

0.73%

Loan loss reserve to non-performing assets

158.68%

119.95%

79.33%

49.86%

107.48%

Net charge-offs to average loans

Provision for loan and lease loss to average loans

Allowance for loan and lease loss to total loans

0.18%

0.16%

0.93%

0.13%

0.10%

1.11%

0.08%

0.89%

1.33%

0.36%

0.37%

0.72%

(0.02)%

0.12%

0.88%

First Guaranty Bancshares Annual Report 2022 103

(1) Tangible calculation eliminates goodwill and acquisition intangibles, principally core deposit intangibles, net of accumulated amortization, net of tax. See
below for our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected
Historical Consolidated Financial and Other Data— Non-GAAP Financial Measures."

(2) Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. We calculate both a GAAP and a non-

GAAP efficiency ratio. The GAAP-based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income. See below for our
reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Financial Data—
Non-GAAP Financial Measures.

(3) We calculate tangible common equity as total shareholders' equity less preferred stock, goodwill and acquisition intangibles, principally core deposit

intangibles, net of accumulated amortization, and we calculate tangible assets as total assets less goodwill and core deposit intangibles. Tangible common
equity to tangible assets is a non-GAAP financial measure, and, as we calculate tangible common equity to tangible assets, the most directly comparable
GAAP financial measure is total shareholders' equity to total assets. See below for our reconciliation of non-GAAP financial measures to their most directly
comparable GAAP financial measures under the caption "Selected Historical Consolidated Financial and Other Data— Non-GAAP Financial Measures."
(4) We calculate tangible book value per common share as total shareholders' equity less preferred stock, goodwill and acquisition intangibles, principally

core deposit intangibles, net of accumulated amortization at the end of the relevant period, divided by the outstanding number of shares of our common
stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book
value per common share, the most directly comparable GAAP financial measure is book value per common share. See below for our reconciliation of non-
GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Financial Data— Non-GAAP Financial
Measures."

Non-GAAP Financial Measures

Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing
practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share
and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP
financial measures.

Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital
adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from
the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per
share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share
or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible
book value per share and any other related measures may differ from that of other companies reporting measures with similar names.

The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP
basis) to tangible assets and calculates our tangible book value per share.

Tangible Common Equity

Total shareholder's equity

Adjustments:

Preferred Stock

Goodwill

Acquisition intangibles

Tangible common equity

Common shares outstanding

Book value per common share

Tangible book value per common share

Tangible Assets

Total Assets

Adjustments:

Goodwill

Acquisition intangibles

Tangible Assets

At December 31,

2022

2021

2020

2019

2018

(in thousands except for share data and %)

234,991

223,889

178,591

166,035

147,284

33,058

12,900

4,355

33,058

12,900

5,051

12,900

5,815

12,942

6,527

3,472

2,704

184,678

172,880

159,876

10,716,796

18.84

17.23

17.81

16.13

16.66

14.92

146,566

141,108

10,716,796

10,657,245

15.49

13.68

13.82

13.24

$ 3,151,347

$ 2,878,120

$ 2,473,078

$ 2,117,216

$ 1,817,211

12,900

4,355

12,900

5,051

12,900

5,815

12,942

6,527

3,472

2,704

$ 3,134,092

$ 2,860,169

$ 2,454,363

$ 2,097,747

$ 1,811,035

Tangible common equity to tangible assets

5.89%

6.04%

6.51%

6.99%

7.79%

104

The efficiency ratio is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We
calculate the efficiency ratio by dividing noninterest expense by the sum of net interest income and noninterest income, excluding amortizations
of intangibles and securities transactions. The GAAP-based efficiency ratio is noninterest expenses divided by net interest income plus noninterest
income.

The following table reconciles, as of the dates set forth below, our efficiency ratio to the GAAP-based efficiency ratio:

GAAP-based efficiency ratio

Noninterest expense

Amortization of intangibles

Noninterest expense, excluding amortization

Net interest income

Noninterest income

Adjustments:

Securities transactions

For the Year Ended December 31,

2022

2021

2020

2019

2018

(in thousands except for share data and %)

63.94%

63.63%

58.95%

67.48%

69.46%

71,005

63,868

58,033

47,219

43,275

696

70,309

100,042

11,009

764

63,104

89,618

10,760

711

57,322

74,667

23,780

390

46,829

61,677

8,299

545

42,730

57,024

5,280

(17)

714

14,691

(157)

(1.830)

Noninterest income, excluding securities transactions

11,026

10,046

9,089

8,456

7,110

Efficiency ratio

63.30%

63.32%

68.44%

66.77%

66.36%

Liquidity and Capital Resources

Liquidity

Liquidity refers to the ability or flexibility to manage future cash flows
to meet the needs of depositors and borrowers and fund operations.
Maintaining appropriate levels of liquidity allows us to have sufficient
funds available to meet customer demand for loans, withdrawal of
deposit balances and maturities of deposits and other liabilities.
Liquid assets include cash and due from banks, interest-earning
demand deposits with banks, federal funds sold and available for sale
investment securities.

First Guaranty's cash and cash equivalents totaled $83.2 million at
December 31, 2022 compared to $261.9 million at December 31,
2021. Loans maturing within one year or less at December 31, 2022
totaled $372.1 million compared to $357.1 million at December 31,
2021. At December 31, 2022, time deposits maturing within one
year or less totaled $312.9 million compared to $267.0 million at
December 31, 2021. Time deposits maturing after one year through
three years totaled $183.0 million at December 31, 2022 compared
to $269.7 million at December 31, 2021. Time deposits maturing after
three years totaled $37.4 million at December 31, 2022 compared to
$50.0 million at December 31, 2021. First Guaranty's held to maturity
("HTM") investment securities portfolio at December 31, 2022 was
$320.1 million or 70.9% of the investment portfolio compared to
$153.5 million at December 31, 2021. First Guaranty's available for
sale ("AFS") portfolio was $131.5 million, or 29.1% of the investment
portfolio at December 31, 2022 compared to $210.6 million, or 57.8%
at December 31, 2021. The majority of the AFS portfolio was comprised
of U.S. Treasuries, U.S. Government Agencies, mortgage-backed
securities, municipal bonds and investment grade corporate bonds.
We believe these securities are readily marketable and enhance our
liquidity.

We maintained a net borrowing capacity at the FHLB totaling $369.5
million and $456.3 million at December 31, 2022 and December 31,

2021, respectively with $120.0 million and $3.2 million in FHLB
advances outstanding at December 31, 2022 and December 31,
2021, respectively. The advances outstanding at December 31, 2022
were comprised of three short-term advances that were paid off in
January 2023. The advance outstanding at December 31, 2021
was comprised of a long-term advance that totaled $3.2 million.
First Guaranty paid off the $3.2 million long-term advance acquired
from the Union acquisition in the first quarter of 2022. The change
in borrowing capacity with the Federal Home Loan Bank was due to
changes in the value that First Guaranty receives on pledged collateral
and due to First Guaranty's usage of the line. First Guaranty has
increasingly transitioned public funds deposits into reciprocal deposit
programs for collateralization as an alternative to FHLB letters of credit.
At December 31, 2022, we had outstanding letters of credit from the
FHLB in the amount of $388.6 million that were primarily used to
collateralize public funds deposits. We also maintain federal funds
lines of credit at various correspondent banks with borrowing capacity
of $100.5 million and two revolving lines of credit totaling $26.5 million
secured by a pledge of the Bank's common stock, with $20.0 million
outstanding balance at December 31, 2022. We also have a discount
window line with the Federal Reserve Bank that totaled $29.0 million at
December 31, 2022. Management believes there is sufficient liquidity
to satisfy current operating needs.

Capital Resources

Our capital position is reflected in total shareholders' equity, subject to
certain adjustments for regulatory purposes. Further, our capital base
allows us to take advantage of business opportunities while maintaining
the level of resources we deem appropriate to address business risks
inherent in daily operations.

First Guaranty Bancshares Annual Report 2022 105

of $28.9 million during the year ended December 31, 2022, partially offset by $6.9 million in cash dividends paid on our common stock and
$2.3 million in cash dividends paid on shares of our preferred stock. The decrease in accumulated other comprehensive income was primarily
attributed to the increase in unrealized losses on available for sale securities during the year ended December 31, 2022.

Capital Management

We manage our capital to comply with our internal planning targets and regulatory capital standards administered by the Federal Reserve and
the FDIC. We review capital levels on a monthly basis. We evaluate a number of capital ratios, including Tier 1 capital to total adjusted assets
(the leverage ratio) and Tier 1 capital to risk-weighted assets. At December 31, 2022, First Guaranty Bank was classified as well-capitalized. First
Guaranty Bank's capital conservation buffer was 3.16% at December 31, 2022.

The following table presents First Guaranty Bank's capital ratios as of the indicated dates.

"Well Capitalized
Minimums"

At December 31, 2022

"Well Capitalized
Minimums"

At December 31, 2021

Tier 1 Leverage Ratio

5.00%

Tier 1 Risk-based Capital Ratio

Total Risk-based Capital Ratio

Common Equity Tier One Capital

8.00%

10.00%

6.50%

9.35%

10.31%

11.16%

10.31%

5.00%

8.00%

10.00%

6.50%

8.71%

10.22%

11.22%

10.22%

Off-balance sheet commitments

We are a party to financial instruments with off-balance sheet risk
in the normal course of business to meet the financing needs of our
customers and to reduce our own exposure to fluctuations in interest
rates. These financial instruments include commitments to extend
credit and standby and commercial letters of credit. Those instruments
involve, to varying degrees, elements of credit and interest rate risk in
excess of the amount recognized in our consolidated balance sheets.
The contract or notional amounts of those instruments reflect the extent
of the involvement in particular classes of financial instruments.

The exposure to credit loss in the event of nonperformance by the other
party to the financial instrument for commitments to extend credit and
standby and commercial letters of credit is represented by the contractual
notional amount of those instruments. The same credit policies are used
in making commitments and conditional obligations as we do for on-
balance sheet instruments. Unless otherwise noted, collateral or other
security is not required to support financial instruments with credit risk.

The notional amounts of the financial instruments with off-balance sheet risk at December 31, 2022 and 2021 are as follows:

Contract Amount

Commitments to Extend Credit

Unfunded Commitments under lines of credit

Commercial and Standby letters of credit

December 31, 2022

December 31, 2021

(in thousands)

$ 246,968

$ 253,906

$ 14,222

$ 198,444

$ 250,231

$ 13,787

Commercial and standby letters of credit are conditional commitments
to guarantee the performance of a customer to a third party. These
guarantees are primarily issued to support public and private borrowing
arrangements, including commercial paper, bond financing and similar
transactions. The majority of these guarantees are short-term (one year
or less); however, some guarantees extend for up to three years. The
credit risk involved in issuing letters of credit is essentially the same
as that involved in extending loan facilities to customers. Collateral
requirements are the same as on-balance sheet instruments and
commitments to extend credit.

There were no losses incurred on any commitments during the years
ended December 31, 2022 and 2021.

Commitments to extend credit are agreements to lend to a customer as
long as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination
clauses and may require payment of a fee. Since commitments may
expire without being drawn upon, the total commitment amounts do
not necessarily represent future cash requirements. Each customer's
creditworthiness is evaluated on a case-by-case basis. The amount
of collateral obtained, if deemed necessary upon extension of credit,
is based on our credit evaluation of the counterpart. Collateral
requirements vary but may include accounts receivable, inventory,
property, plant and equipment, residential real estate and commercial
properties.

Unfunded commitments under lines of credit are contractually
obligated by us as long as the borrower is in compliance with the terms
of the loan relationship. Unfunded lines of credit are typically operating
lines of credit that adjust on a regular basis as a customer requires
funding. There may be seasonal variations to the usage of these
lines. At December 31, 2022, the largest concentrations of unfunded
commitments were lines of credit associated with construction and land
development loans and commercial and industrial loans.

106

Item 7A – Quantitative and Qualitative Disclosures about
Market Risk

Asset/Liability Management and Market Risk

Asset/Liability Management.
Our asset/liability management process consists of quantifying,
analyzing and controlling interest rate risk to maintain reasonably stable
net interest income levels under various interest rate environments.
The principal objective of asset/liability management is to maximize net
interest income while operating within acceptable limits established for
interest rate risk and to maintain adequate levels of liquidity.

The majority of our assets and liabilities are monetary in nature.
Consequently, one of our most significant forms of market risk is interest
rate risk, which is inherent in our lending and deposit-taking activities.
Our assets, consisting primarily of loans secured by real estate and fixed
rate securities in our investment portfolio, have longer maturities than
our liabilities, consisting primarily of deposits. As a result, a principal
part of our business strategy is to manage interest rate risk and reduce
the exposure of our net interest income to changes in market interest
rates. The board of directors of First Guaranty Bank has established two
committees, the management asset liability committee and the board
investment committee, to oversee the interest rate risk inherent in our
assets and liabilities, for determining the level of risk that is appropriate

given our business strategy, operating environment, capital, liquidity
and performance objectives, and for managing this risk consistent with
the guidelines approved by the board of directors. The management
asset liability committee is comprised of senior officers of the Bank
and meets as needed to review our asset liability policies and interest
rate risk position. The board ALCO investment committee is comprised
of certain members of the board of directors of the Bank and meets
monthly. The management asset liability committee provides a monthly
report to the board ALCO investment committee.

The need for interest sensitivity gap management is most critical in
times of rapid changes in overall interest rates. We generally seek to
limit our exposure to interest rate fluctuations by maintaining a relatively
balanced mix of rate sensitive assets and liabilities on a one-year
time horizon and greater than one-year time horizon. Because of the
significant impact on net interest margin from mismatches in repricing
opportunities, we monitor the asset-liability mix periodically depending
upon the management asset liability committee's assessment of
current business conditions and the interest rate outlook. We maintain
exposure to interest rate fluctuations within prudent levels using varying
investment strategies. These strategies include, but are not limited to,
frequent internal modeling of asset and liability values and behavior
due to changes in interest rates. We monitor cash flow forecasts closely
and evaluate the impact of both prepayments and extension risk.

The following interest sensitivity analysis is one measurement of interest rate risk. This analysis, which we prepare quarterly, reflects the contractual
maturity characteristics of assets and liabilities over various time periods. This analysis does not factor in prepayments or interest rate floors on
loans which may significantly change the report. This table includes nonaccrual loans in their respective maturity periods. The gap indicates
whether more assets or liabilities are subject to repricing over a given time period. The interest sensitivity analysis at December 31, 2022 illustrated
below reflects a liability-sensitive position with a negative cumulative gap on a one-year basis.

December 31, 2022

Interest Sensitivity Within

3 Months
Or Less

Over 3
Months thru
12 Months

Total One
Year

Over One
Year

Total

(dollars in thousands, except for percentages)

$ 635,288

$ 264,614

$ 899,902

$ 1,619,175

$ 2,519,077

56,748

423

70,086

691

57,439

423

70,086

400,615

458,054

423

70,086

$ 762,545

$ 265,305

$ 1,027,850

$ 2,019,790

$ 3,047,640

$ 1,460,259

$ -

$ 1,460,259

$ -

$ 1,460,259

205,760

66,523

140,000

21,927

15,000

248,236

205,760

314,759

140,000

21,927

15,000

218,599

5,884

665,452

205,760

533,358

145,884

21,927

15,000

665,452

$ 1,909,469

$ 248,236

$ 2,157,705

$ 889,935

$ 3,047,640

$ (1,146,924)

$ 17,069

$(1,129,855)

$ 1,129,855

$ (1,146,924)

$ (1,129,855)

$(1,129,855)

$ -

Earning Assets:

Loans (including loans held for sale)

Securities (including FHLB stock)

Federal Funds Sold

Other earning assets

Total earning assets

Source of Funds:

Interest-bearing accounts:

Demand deposits

Savings deposits

Time deposits

Short-term borrowings

Senior long-term debt

Junior subordinated debt

Noninterest-bearing, net

Total source of funds

Period gap

Cumulative gap

Cumulative gap as a percent of earning assets

(37.6)%

(37.1)%

First Guaranty Bancshares Annual Report 2022 107

GGrriiffffiitthh,, DDeeLLaanneeyy,, HHiillllmmaann && LLeetttt

CERTIFIED PUBLIC ACCOUNTANTS

PAUL DAVID GRIFFITH, CPA
JOHN MICHAEL DELANEY, CPA
TRACY NEAL HILLMAN, CPA
JONATHAN E. LETT, CPA

BEVERLY SUE PEMBERTON, CPA
KIMBERLY PAYNE CURTIS, CPA
CHRIS TILSLEY, CPA

429 - 13th Street, P.O. Box 1360
Ashland, Kentucky 41105-1360
(606) 329-1656
(800) 377-6270
FAX: (606) 324-4739

Report of Independent Registered Public Accounting Firm

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
To the Board of Directors and
First Guaranty Bancshares, Inc.
Shareholders of First Guaranty Bancshares, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheet of First Guaranty Bancshares, Inc. and Subsidiary (First Guaranty) as of
December 31, 2022, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for the
We have audited the accompanying consolidated balance sheet of First Guaranty Bancshares,
year ended December 31, 2022, and the related notes collectively referred to as the financial statements. We also have audited First Guaranty’s
Inc. and Subsidiary (First Guaranty) as of December 31, 2022, and the related consolidated
internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework
statements of income, comprehensive income, stockholders’ equity, and cash flows for the year
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
ended December 31, 2022, and the related notes collectively referred to as the financial
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of First Guaranty as of
statements. We also have audited First Guaranty’s internal control over financial reporting as of
December 31, 2022, and the results of its operations and its cash flows for the year ended December 31, 2022, in conformity with accounting
December 31, 2022, based on criteria established in Internal Control—Integrated Framework
principles generally accepted in the United States of America. Also, in our opinion, First Guaranty maintained, in all material respects, effective
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework
(COSO).
(2013) issued by COSO.

Basis for Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of First Guaranty as of December 31, 2022, and the results of its operations
First Guaranty’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting,
and its cash flows for the year ended December 31, 2022, in conformity with accounting principles
and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual
generally accepted in the United States of America. Also, in our opinion, First Guaranty
Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on First Guaranty’s financial statements and
maintained, in all material respects, effective internal control over financial reporting as of
an opinion on First Guaranty’s internal control over financial reporting based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to First Guaranty
December 31, 2022, based on criteria established in Internal Control—Integrated Framework
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
(2013) issued by COSO.
PCAOB.

Basis for Opinion

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and
whether effective internal control over financial reporting was maintained in all material respects.
First Guaranty’s management is responsible for these financial statements, for maintaining
effective internal control over financial reporting, and for its assessment of the effectiveness of
Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements,
internal control over financial reporting included in the accompanying Management’s Annual
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal
on First Guaranty’s financial statements and an opinion on First Guaranty’s internal control over
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a
financial reporting based on our audits. We are a public accounting firm registered with the Public
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
Company Accounting Oversight Board (United States) (PCAOB) and are required to be
audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a
independent with respect to First Guaranty in accordance with the U.S. federal securities laws
reasonable basis for our opinions.
and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
We conducted our audits in accordance with the standards of the PCAOB. Those standards
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
require that we plan and perform the audits to obtain reasonable assurance about whether the
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
financial statements are free of material misstatement, whether due to error or fraud, and whether
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
effective internal control over financial reporting was maintained in all material respects.
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Our audits of the financial statements included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.

108

Critical Audit Matters
calculation, as a critical audit matter. First Guaranty uses asset quality risk ratings to monitor
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were
portfolio performance and trends and to adjust historical loss percentages for classified loans.
communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the
First Guaranty stratifies loans into pools based on collateral and type of loan, based on regulatory
financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
guidelines, and estimates inherent loss rates for each of the loan pools, which are used in the
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters
calculation of the allowance for loan and lease losses. The general valuation allowance portion of
below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
the allowance for loan and lease losses is used to estimate losses and is based on management’s
Allowance for Loan and Lease Losses
evaluation of various factors that are not captured in the historical credit loss factors or on the
specific impairment component. Auditing management’s judgements regarding the determination
As described in Notes 1, 5 and 6 to the financial statements, at December 31, 2022, First Guaranty’s total loans were $2.5 billion and the
of the quantitative and qualitative portion of the allowance for loan and lease losses involved a
associated allowance for loan and lease losses balance was $23.5 million. The allowance for loan and lease losses is management’s best estimate
high degree of subjectivity.
of probable incurred losses inherent in its loan portfolio and is based on historical loss experience by loan segment and class with adjustments
for current events and conditions. These factors include, among others, loan loss experience, current loan portfolio quality, present economic,
political, and regulatory conditions, specific credit risks, industry concentrations, and unidentified losses inherent in the current loan portfolio.
The primary procedures we performed to address the critical audit matter included:

We identified management’s asset quality ratings of loans and determination of qualitative factors, which is based on general economic
• Testing the design, implementation, and operating effectiveness of controls relating to
conditions and other qualitive risk factors both internal and external to First Guaranty, both of which are used in the allowance for loan and
lease losses calculation, as a critical audit matter. First Guaranty uses asset quality risk ratings to monitor portfolio performance and trends and
management’s calculation of the allowance for loan and lease losses, including controls
to adjust historical loss percentages for classified loans. First Guaranty stratifies loans into pools based on collateral and type of loan, based on
over the accuracy of asset quality ratings of loans, the loan pools based on collateral type,
regulatory guidelines, and estimates inherent loss rates for each of the loan pools, which are used in the calculation of the allowance for loan
and the determination of the qualitative and quantitative factors of the allowance for loan
and lease losses. The general valuation allowance portion of the allowance for loan and lease losses is used to estimate losses and is based on
and lease losses.
management’s evaluation of various factors that are not captured in the historical credit loss factors or on the specific impairment component.
Auditing management’s judgements regarding the determination of the quantitative and qualitative portion of the allowance for loan and lease
losses involved a high degree of subjectivity.

• Testing a risk-based targeted selection of loans to gain substantive evidence that First
Guaranty is appropriately rating these loans in accordance with its policies, and that the
The primary procedures we performed to address the critical audit matter included:
asset quality ratings for the loans are reasonable.

• Testing the design, implementation, and operating effectiveness of controls relating to management’s calculation of the allowance for loan
• Obtaining management’s analysis and supporting documentation related to the qualitative
and lease losses, including controls over the accuracy of asset quality ratings of loans, the loan pools based on collateral type, and the
determination of the qualitative and quantitative factors of the allowance for loan and lease losses.
factors and testing whether the qualitative risk factors both internal and external to First
Guaranty used in the calculation of the allowance for loan and lease losses are supported
by the analysis provided by management.

• Testing a risk-based targeted selection of loans to gain substantive evidence that First Guaranty is appropriately rating these loans in

accordance with its policies, and that the asset quality ratings for the loans are reasonable.

• Obtaining management’s analysis and supporting documentation related to the qualitative factors and testing whether the qualitative risk
• Testing the appropriateness of the methodology and assumptions used in the calculation
factors both internal and external to First Guaranty used in the calculation of the allowance for loan and lease losses are supported by the
of the allowance for loan and lease losses, and testing the calculation itself, including
analysis provided by management.
completeness and accuracy of the data used in the calculation, application of the
qualitative factors determined by management and used in the calculation, and
recalculation of the allowance for loan and lease losses balance.

testing the calculation itself, including completeness and accuracy of the data used in the calculation, application of the qualitative factors
determined by management and used in the calculation, and recalculation of the allowance for loan and lease losses balance.

• Testing the appropriateness of the methodology and assumptions used in the calculation of the allowance for loan and lease losses, and

We have served as First Guaranty’s auditor since 2022.
We have served as First Guaranty’s auditor since 2022.
Ashland, Kentucky
March 16, 2023
Griffith, DeLaney, Hillman & Lett, CPAs, PSC
Ashland, Kentucky
March 16, 2023

First Guaranty Bancshares Annual Report 2022 109

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
First Guaranty Bancshares, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of First Guaranty Bancshares, Inc. and Subsidiary (First Guaranty) as of
December 31, 2021, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows, and the
related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present
fairly, in all material respects, the financial position of First Guaranty as of December 31, 2021 and the results of its operations and its cash
flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of First Guaranty’s management. Our responsibility is to express an opinion on First Guaranty’s
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to First Guaranty in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable
basis for our opinion.

We served as First Guaranty’s auditor from 2001 to 2022.

New Iberia, Louisiana
March 16, 2022

110

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY - CONSOLIDATED BALANCE SHEETS

Assets
Cash and cash equivalents:
Cash and due from banks
Federal funds sold
Cash and cash equivalents

Investment securities:
Available for sale, at fair value
Held to maturity, at cost (estimated fair value of $242,560 and $150,585, respectively)
Investment securities

Federal Home Loan Bank stock, at cost
Loans held for sale

Loans, net of unearned income
Less: allowance for loan and lease losses
Net loans

Premises and equipment, net
Goodwill
Intangible assets, net
Other real estate, net
Accrued interest receivable
Other assets
Total Assets

Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand
Interest-bearing demand
Savings
Time
Total deposits

Short-term advances from Federal Home Loan Bank

Short-term borrowings

Repurchase agreements
Accrued interest payable
Long-term advances from Federal Home Loan Bank
Senior long-term debt
Junior subordinated debentures
Other liabilities
Total Liabilities

Shareholders' Equity
Common stock:
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 issued and outstanding, respectively
Common stock, $1 par value - 100,600,000 shares authorized and 10,716,796
shares issued
Surplus
Retained earnings
Accumulated other comprehensive (loss) income
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity

See Notes to the Consolidated Financial Statements.

December 31, 2022

December 31, 2021

(in thousands, except share data)

$ 82,796
423
83,219

$ 261,749
183
261,932

131,458
320,068
451,526

6,528
-

2,519,077
23,518
2,495,559

210,620
153,536
364,156

1,359
-

2,159,359
24,029
2,135,330

58,206
12,900
4,979
113
13,002
25,315
$ 3,151,347

58,637
12,900
5,922
2,072
12,047
23,765
$ 2,878,120

$ 524,415
1,460,259
205,760
533,358
2,723,792

$ 532,578
1,275,544
201,699
586,671
2,596,492

120,000

20,000

6,442
4,289
-
21,927
15,000
4,906
2,916,356

6,439
4,480
3,208
25,170
14,818
3,624
2,654,231

$ 33,058

10,717

130,093
76,351
(15,228)
234,991
$ 3,151,347

130,093
56,654
(6,633)
223,889
$ 2,878,120

First Guaranty Bancshares Annual Report 2022 111

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME

Interest Income:
Loans (including fees)
Deposits with other banks
Securities (including FHLB stock)
Federal funds sold

Total Interest Income

Interest Expense:
Demand deposits
Savings deposits
Time deposits
Borrowings

Total Interest Expense

Net Interest Income
Less: Provision for loan losses

Net Interest Income after Provision for Loan Losses

Noninterest Income:
Service charges, commissions and fees
ATM and debit card fees
Net (losses) gains on securities
Net gains on sale of loans
Other

Total Noninterest Income

Noninterest Expense:
Salaries and employee benefits
Occupancy and equipment expense
Other

Total Noninterest Expense

Income Before Income Taxes
Less: Provision for income taxes

Net Income
Less: Preferred stock dividends

Years Ended December 31,
2021
2022

(in thousands, except share data)

$ 126,002
1,324
9,250
-
136,576

21,419
915
10,682
3,518
36,534

100,042
3,656
96,386

3,160
3,406
(17)
1,774
2,686
11,009

36,699
8,932
25,374
71,005

36,390
7,506
28,884
2,328

$ 103,353
316
8,248
-
111,917

7,237
204
12,893
1,965
22,299

89,618
2,055
87,563

2,699
3,562
714
942
2,843
10,760

32,179
8,681
23,008
63,868

34,455
7,158
27,297
1,384

Net Income Available to Common Shareholders

$ 26,556

$ 25,913

Per Common Share:
Earnings
Cash dividends paid

Weighted Average Common Shares Outstanding

See Notes to Consolidated Financial Statements

112

$ 2.48
$ 0.64

$ 2.42
$ 0.60

10,716,796

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Net Income
Other comprehensive income:
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains arising during the period
Reclassification adjustments for losses (gains) included in net income

Reclassification of OTTI losses included in net income

Change in unrealized (losses) gains on securities
Tax impact

Other comprehensive (loss) income

Comprehensive Income

See Notes to Consolidated Financial Statements

Years Ended December 31,
2021
2022

(in thousands)

$ 28,884

$ 27,297

(10,897)
17

(10,880)
2,285
(8,595)

(8,501)
(714)

(9,215)
1,935
(7,280)

$ 20,289

$ 20,017

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Balance December 31, 2020

Net income

Preferred stock issued, 34,500 shares, net of costs

Other comprehensive income (loss)

Preferred stock dividends

Cash dividends on common stock ($0.60 per share)

Balance December 31, 2021

Net income

Other comprehensive income (loss)

Preferred stock dividends

Cash dividends on common stock ($0.64 per share)

Preferred
Stock
$1,000 Par

Common
Stock
$1 Par

Surplus

Retained
Earnings

Accumulated
Other
Comprehensive
Income/(Loss)

Total

(in thousands, except share data)

$ -

$ 10,717

$ 130,093

$ 37,134

$ 647

$ 178,591

33,058

27,297

(1,384)

(6,393)

(7,280)

27,297

33,058

(7,280)

(1,384)

(6,393)

$ 33,058

$ 10,717

$ 130,093

$ 56,654

$ (6,633) $ 223,889

28,884

(8,595)

(2,328)

(6,859)

(8,595)

(2,328)

(6,859)

Balance December 31, 2022

$ 33,058

$ 10,717

$ 130,093

$ 76,351

$ (15,228)

$ 234,991

See Notes to Consolidated Financial Statements

First Guaranty Bancshares Annual Report 2022 113

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS

Cash Flows From Operating Activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses
Depreciation and amortization
Amortization/Accretion of investments
(Gain) loss on sale/call of securities
Gain on sale of assets
Repossessed asset writedowns, gains and losses on dispositions
FHLB stock dividends
Change in other assets and liabilities, net
Net Cash Provided by Operating Activities

Cash Flows From Investing Activities:
Proceeds from maturities, calls and sales of AFS securities
Funds invested in AFS securities
Funds invested in preferred securities
Proceeds from redemption of preferred securities
Proceeds from sale/redemption of Federal Home Loan Bank stock
Funds invested in Federal Home Loan Bank stock
Net increase in loans
Purchases of premises and equipment
Proceeds from sales of premises and equipment
Proceeds from sales of other real estate owned
Net Cash Used In Investing Activities

Cash Flows From Financing Activities:
Net increase in deposits
Net (decrease) increase in federal funds purchased and short-term borrowings
Repayment of long-term borrowings
Net proceeds from issuance of preferred stock
Dividends paid on preferred stock
Dividends paid common stock
Net Cash Provided By Financing Activities

Net (Decrease) Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Period
Cash and Cash Equivalents at the End of the Period

Noncash Activities:
Acquisition of real estate in settlement of loans
Transfer of securities from AFS to HTM

Cash Paid During the Period:
Interest on deposits and borrowed funds
Federal income taxes
State income taxes

See Notes to the Consolidated Financial Statements.

114

Years Ended December 31,

2022

2021

(in thousands)

$ 28,884

$ 27,297

3,656
4,109
1,801
17
(1,857)
96
(20)
179
36,865

52,986
(153,053)

-
-
2,182
(7,331)
(362,543)
(2,643)
70
2,421
(467,911)

127,300
140,003
(5,783)
-
(2,328)
(6,859)
252,333

2,055
4,775
(104)
(714)
(965)
536
(13)
(6,347)
26,520

417,557
(551,563)
(1,000)
1,500
2,160
(155)
(320,347)
(2,204)
77
1,330
(452,645)

430,174
(49,682)
(17,321)
33,058
(1,384)
(6,393)
388,452

(178,713)
261,932
$ 83,219

(37,673)
299,605
$ 261,932

$ 558
$ 176,181

$ 1,782
$ 160,014

$ 36,725
$ 7,600
$ 20

$ 23,111
$ 11,400
$ 36

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

Note 1. Business and Summary of Significant Accounting
Policies

Business

First Guaranty Bancshares, Inc. ("First Guaranty") is a Louisiana
corporation and a financial holding company headquartered in
Hammond, LA. First Guaranty owns all of the outstanding shares of
common stock of First Guaranty Bank. First Guaranty Bank (the
"Bank") is a Louisiana-chartered commercial bank that offers a wide
range of financial services and focuses on building client relationships
and providing exceptional customer service. These services include
consumer and commercial lending, mortgage loan origination, the
issuance of credit cards and retail banking services. The Bank
also maintains an investment portfolio comprised of government,
government agency, corporate, and municipal securities. The Bank has
thirty-six banking facilities and forty-eight automated teller machines
(ATMs) in Southeast, Southwest, Central and North Louisiana, North
Central Texas, Kentucky and West Virginia.

Summary of significant accounting policies

The accounting and reporting policies of First Guaranty conform
to generally accepted accounting principles and to predominant
accounting practices within the banking industry. The more significant
accounting and reporting policies are as follows:

Consolidation

The consolidated financial statements include the accounts of First
Guaranty Bancshares, Inc., and its wholly owned subsidiary, First
Guaranty Bank. All significant intercompany balances and transactions
have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
dates of the financial statements and the reported amounts of revenue
and expense during the reporting periods. Actual results could differ
from those estimates. Material estimates that are particularly susceptible
to significant change in the near-term relate to the determination of the
allowance for loan and lease losses, the valuation of real estate acquired
in connection with foreclosures or in satisfaction of loans, and the
valuation of investment securities. In connection with the determination
of the allowance for loan and lease losses and real estate owned, First
Guaranty obtains independent appraisals for significant properties.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents are
defined as cash, due from banks, interest-bearing demand deposits
with banks and federal funds sold with maturities of three months or
less.

Securities

First Guaranty reviews its financial position, liquidity and future plans
in evaluating the criteria for classifying investment securities. Debt
securities that Management has the ability and intent to hold to maturity
are classified as held to maturity and carried at cost, adjusted for
amortization of premiums and accretion of discounts using methods
approximating the interest method. Securities available for sale are

stated at fair value. The unrealized difference, if any, between amortized
cost and fair value of these AFS securities is excluded from income and
is reported, net of deferred taxes, in accumulated other comprehensive
income as a part of shareholders' equity. Details of other comprehensive
income are reported in the consolidated statements of comprehensive
income. Realized gains and losses on securities are computed based
on the specific identification method and are reported as a separate
component of other income. Amortization of premiums and discounts
is included in interest income. Discounts and premiums related to debt
securities are amortized using the effective interest rate method.

Management evaluates securities for other-than-temporary impairment
("OTTI") at least on a quarterly basis, and more frequently when economic
or market conditions warrant such an evaluation. In estimating other-
than-temporary losses, management considers the length of time and
extent that fair value has been less than cost and the financial condition
and near term prospects of the issuer. Management also assesses
whether it intends to sell, or it is more likely than not that it will be
required to sell, a security in an unrealized loss position before recovery
of its amortized cost basis. If either of the criteria regarding intent or
requirement to sell is met, the entire difference between amortized cost
and fair value is recognized as impairment through earnings. For debt
securities that do not meet the aforementioned criteria, the amount of
impairment is split into two components as follows: 1) OTTI related to
credit loss, which must be recognized in the income statement and 2)
OTTI related to other factors, which is recognized in other comprehensive
income. The credit loss is defined as the difference between the present
value of the cash flows expected to be collected and the amortized cost
basis.

Loans held for sale

Mortgage loans originated and intended for sale in the secondary
market are carried at the lower of cost or estimated fair value in the
aggregate. Net unrealized losses, if any, are recognized through a
valuation allowance by charges to income. Loans held for sale have
primarily been fixed rate single-family residential mortgage loans under
contract to be sold in the secondary market. In most cases, loans in
this category are sold within thirty days. Buyers generally have recourse
to return a purchased loan under limited circumstances. Recourse
conditions may include early payment default, breach of representations
or warranties and documentation deficiencies. Mortgage loans held
for sale are generally sold with the mortgage servicing rights released.
Gains or losses on sales of mortgage loans are recognized based on
the differences between the selling price and the carrying value of the
related mortgage loans sold.

Loans

Loans are stated at the principal amounts outstanding, net of unearned
income and deferred loan fees. In addition to loans issued in the normal
course of business, overdrafts on customer deposit accounts are
considered to be loans and reclassified as such. Interest income on all
classifications of loans is calculated using the simple interest method on
daily balances of the principal amount outstanding.

Accrual of interest is discontinued on a loan when Management believes,
after considering economic and business conditions and collection
efforts, the borrower's financial condition is such that reasonable doubt
exists as to the full and timely collection of principal and interest. This
evaluation is made for all loans that are 90 days or more contractually past
due. When a loan is placed in nonaccrual status, all interest previously
accrued but not collected is reversed against current period interest
income. Income on such loans is then recognized only to the extent that
cash is received and where the future collection of interest and principal
is probable. Loans are returned to accrual status when, in the judgment
of Management, all principal and interest amounts contractually due
are reasonably assured to be collected within a reasonable time frame

First Guaranty Bancshares Annual Report 2022 115

and when the borrower has demonstrated payment performance of
cash or cash equivalents; generally for a period of 6 months. All loans,
except mortgage loans, are considered past due if they are past due 30
days. Mortgage loans are considered past due when two consecutive
payments have been missed. Loans that are past due 90-120 days and
deemed uncollectible are charged-off. The loan charge off is a reduction
of the allowance for loan and lease losses.

Troubled Debt Restructurings (TDRs)

TDRs are loans in which the borrower is experiencing financial difficulty
at the time of restructuring, and the Bank has granted a concession to
the borrower. TDRs are undertaken in order to improve the likelihood
of recovery on the loan and may take the form of modifications made
with the stated interest rate lower than the current market rate for new
debt with similar risk, other modifications to the structure of the loan
that fall outside of normal underwriting policies and procedures, or in
limited circumstances forgiveness of principal and / or interest. TDRs
can involve loans remaining on non-accrual, moving to nonaccrual, or
continuing on accrual status, depending on the individual facts and
circumstances of the borrower. TDRs are subject to policies governing
accrual and nonaccrual evaluation consistent with all other loans
as discussed in the "Loans" section above. All loans with the TDR
designation are considered to be impaired, even if they are accruing.

First Guaranty's policy is to evaluate TDRs that have subsequently
been restructured and returned to market terms after 6 months of
performance. The evaluation includes a review of the loan file and
analysis of the credit to assess the loan terms, including interest
rate to insure such terms are consistent with market terms. The loan
terms are compared to a sampling of loans with similar terms and risk
characteristics, including loans originated by First Guaranty and loans
lost to a competitor. The sample provides a guide to determine market
terms pursuant to ASC 310-40-50-2. The loan is also evaluated at that
time for impairment. A loan determined to be restructured to market
terms and not considered impaired will no longer be disclosed as a TDR
in the years following the restructuring. These loans will continue to be
individually evaluated for impairment. A loan determined to either be
restructured to below market terms or to be impaired will remain a TDR.

the deficiencies are not corrected. These loans require more intensive
supervision. Substandard loans are generally characterized by current
or expected unprofitable operations, inadequate debt service coverage,
inadequate liquidity, or marginal capitalization. Repayment may depend
on collateral or other credit risk mitigates. For some substandard loans,
the likelihood of full collection of interest and principal may be in doubt
and interest is no longer accrued. Consumer loans that are 90 days or
more past due or that are nonaccrual are considered substandard.

Doubtful loans have the weaknesses of substandard loans with the
additional characteristic that the weaknesses make collection or
liquidation in full questionable and there is a high probability of loss
based on currently existing facts, conditions and values.

A loan is considered impaired when, based on current information
and events, it is probable that First Guaranty 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 for commercial and construction loans by either
the present value of expected future cash flows discounted at the loan's
effective interest rate, the loan's obtainable market price or the fair value
of the collateral if the loan is collateral dependent. This process is only
applied to impaired loans or relationships in excess of $500,000. Large
groups of smaller balance homogeneous loans are collectively evaluated
for impairment. Accordingly, individual consumer and residential loans
are not separately identified for impairment disclosures, unless such
loans are the subject of a restructuring agreement. Loans that have
been restructured in a troubled debt restructuring will continue to
be evaluated individually for impairment, including those no longer
requiring disclosure.

The TDR requirements became inapplicable to First Guaranty upon our
adoption of CECL on January 1, 2023.

Acquired Loans

Loans are recorded at estimated fair value on their purchase date
with no carryover of the related allowance for loan and lease losses.
Acquired loans are segregated between those with deteriorated credit
quality at acquisition and those deemed as performing. To make this
determination, Management considers such factors as past due status,
nonaccrual status, credit risk ratings, interest rates and collateral
position. The fair value of acquired loans deemed performing is
determined by discounting cash flows, both principal and interest, for
each pool at prevailing market interest rates as well as consideration
of inherent potential losses. The difference between the fair value and
principal balances due at acquisition date, the fair value discount, is
accreted into income over the estimated life of each loan pool.

Loans acquired in a business combination are recorded at their
estimated fair value on their purchase date with no carryover of the
related allowance for loan and lease losses. Performing acquired
loans are subsequently evaluated for any required allowance at each
reporting date. An allowance for loan and lease losses is calculated
using a similar methodology for originated loans.

Credit Quality

First Guaranty's credit quality indicators are pass, special mention,
substandard, and doubtful.

Loans included in the pass category are performing loans with
satisfactory debt coverage ratios, collateral, payment history, and
documentation requirements.

Special mention loans have potential weaknesses that deserve close
attention. If left uncorrected, these potential weaknesses may result
in deterioration of the repayment prospects. Borrowers may be
experiencing adverse operating trends (declining revenues or margins)
or an ill proportioned balance sheet (e.g., increasing inventory without
an increase in sales, high leverage, tight liquidity). Adverse economic or
market conditions, such as interest rate increases or the entry of a new
competitor, may also support a special mention rating. Nonfinancial
reasons
litigation, an
ineffective loan agreement or other material structural weakness, and
any other significant deviation from prudent lending practices.

include management problems, pending

A substandard loan is inadequately protected by the paying capacity
of the obligor or of the collateral pledged, if any. Loans classified as
substandard have a well-defined weakness. They are characterized
by the distinct possibility that First Guaranty will sustain some loss if

116

Loan fees and costs

Nonrefundable loan origination and commitment fees and direct costs
associated with originating loans are deferred and recognized over the
lives of the related loans as an adjustment to the loans' yield using the
level yield method.

Allowance for loan and lease losses

The allowance for loan and lease losses is established through a
provision for loan losses charged to expense. Loans are charged against
the allowance for loan and lease losses when Management believes
that the collectability of the principal is unlikely. The allowance, which
is based on evaluation of the collectability of loans and prior loan loss
experience, is an amount that, in the opinion of Management, reflects
the risks inherent in the existing loan portfolio and exists at the reporting
date. The evaluations take into consideration a number of subjective
factors including changes in the nature and volume of the loan portfolio,
historical losses, overall portfolio quality, review of specific problem
loans, current economic conditions that may affect a borrower's ability
to pay including the impact of the COVID-19 pandemic, adequacy of
loan collateral and other relevant factors.

The following are general credit risk factors that affect First Guaranty's
loan portfolio segments. These factors do not encompass all risks
associated with each loan category. Construction and land development
loans have risks associated with interim construction prior to permanent
financing and repayment risks due to the future sale of developed
property. Farmland and agricultural loans have risks such as weather,
government agricultural policies, fuel and fertilizer costs, and market
price volatility. 1-4 family, multi-family, and consumer credits are
strongly influenced by employment levels, consumer debt loads and the
general economy. Non-farm non-residential loans include both owner
occupied real estate and non-owner occupied real estate. Common
risks associated with these properties is the ability to maintain tenant
leases and keep lease income at a level able to service required debt
and operating expenses. Commercial and industrial loans generally
have non-real estate secured collateral which requires closer monitoring
than real estate collateral.

Although Management uses available information to recognize losses
on loans, because of uncertainties associated with local economic
conditions, collateral values and future cash flows on impaired loans,
it is reasonably possible that a material change could occur in the
allowance for loan and lease losses in the near term. However, the
amount of the change that is reasonably possible cannot be estimated.
The evaluation of the adequacy of loan collateral is often based upon
estimates and appraisals. Because of changing economic conditions,
the valuations determined from such estimates and appraisals may also
change.

Accordingly, First Guaranty may ultimately incur losses that vary from
Management's current estimates. Adjustments to the allowance for loan
and lease losses will be reported in the period such adjustments become
known or can be reasonably estimated. All loan losses are charged to
the allowance for loan and lease losses when the loss actually occurs
or when the collectability of the principal is unlikely. Recoveries are
credited to the allowance at the time of recovery.

The allowance consists of specific, general, and unallocated components.
The specific component relates to loans that are classified as doubtful,
substandard, and impaired. For such loans that are also classified as
impaired, an allowance is established when the discounted cash flows
(or collateral value or observable market price) of the impaired loan
is lower than the carrying value of that loan. Also, a specific reserve
is allocated for syndicated loans. The general component covers non-
classified loans and special mention loans and is based on historical
loss experience adjusted for qualitative factors. Qualitative factors

include analysis of levels and trends in delinquencies, nonaccrual
loans, charge-offs and recoveries, loan risk ratings, trends in volume
and terms of loans, changes in lending policy, credit concentrations,
portfolio stress test results, national and local economic trends including
the impact of COVID-19, industry conditions, and other relevant factors.
An unallocated component is maintained to cover uncertainties that
could affect the estimate of probable losses.

Goodwill and intangible assets

Goodwill and intangible assets deemed to have indefinite lives are
subject to annual impairment tests. Goodwill represents the excess of the
purchase price over the fair value of the net identifiable assets acquired
in an acquisition. First Guaranty's goodwill is tested for impairment on
an annual basis, or more often if events or circumstances indicate that
there may be impairment in accordance with ASC Topic 350.

Identifiable intangible assets are acquired assets that lack physical
substance but can be distinguished from goodwill because of
contractual or legal rights or because the assets are capable of being
sold or exchanged either on their own or in combination with the related
contract, asset or liability. First Guaranty's intangible assets primarily
relate to core deposits and loan servicing assets related to the SBA
portfolio. These core deposit intangibles are amortized on a straight-
line basis over terms ranging from seven to fifteen years. Management
periodically evaluates whether events or circumstances have occurred
that impair this deposit intangible.

Premises and equipment

Premises and equipment are stated at cost, less accumulated
depreciation. Depreciation is computed for financial reporting purposes
using the straight-line method over the estimated useful lives of the
respective assets as follows:

Buildings and improvements 10-40 years
Equipment, fixtures and automobiles 3-10 years

Expenditures for renewals and betterments are capitalized and
depreciated over their estimated useful lives. Repairs, maintenance
and minor improvements are charged to operating expense as incurred.
Gains or losses on disposition, if any, are recorded as a separate line
item in noninterest income on the Statements of Income.

Other real estate

Other real estate includes properties acquired through foreclosure or
acceptance of deeds in lieu of foreclosure. These properties are recorded
at the lower of the recorded investment in the property or its fair value less
the estimated cost of disposition. Any valuation adjustments required
prior to foreclosure are charged to the allowance for loan and lease
losses. Subsequent to foreclosure, losses on the periodic revaluation of
the property are charged to current period earnings as other real estate
expense or to the allowance for other real estate. Costs of operating and
maintaining the properties are charged to other real estate expense as
incurred. Any subsequent gains or losses on dispositions are credited
or charged to income in the period of disposition.

First Guaranty Bancshares Annual Report 2022 117

Off-balance sheet financial instruments

Earnings per common share

In the ordinary course of business, First Guaranty has entered into
commitments to extend credit, including commitments under credit
card arrangements, commitments to fund commercial real estate,
construction and land development loans secured by real estate, and
performance standby letters of credit. Such financial instruments are
recorded when they are funded.

Income taxes

First Guaranty and its subsidiary file a consolidated federal income tax
return on a calendar year basis. In lieu of Louisiana state income tax,
the Bank is subject to the Louisiana bank shares tax, which is included
in noninterest expense in First Guaranty's consolidated financial
statements. With few exceptions, First Guaranty is no longer subject
to U.S. federal, state or local income tax examinations for years before
2018. Deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax basis. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years
in which the deferred tax assets or liabilities are expected to be settled
or realized. Valuation allowances are established when necessary to
reduce deferred tax assets to the amount expected to be utilized.

Comprehensive income

Accounting principles generally require that recognized revenue,
expenses, gains and losses be included in net income. Although certain
changes in assets and liabilities, such as unrealized gains and losses
on available for sale securities, are reported as a separate component
of the equity section of the balance sheet, such items along with net
income, are components of comprehensive income. The components
of other comprehensive income and related tax effects are presented in
the Statements of Comprehensive Income.

Fair Value Measurements

The fair value of a financial instrument is the current amount that would
be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. A fair value measurement
assumes that the transaction to sell the asset or transfer the liability
occurs in the principal market for the asset or liability or, in the absence
of a principal market, the most advantageous market for the asset
or liability. Valuation techniques use certain inputs to arrive at fair
value. Inputs to valuation techniques are the assumptions that market
participants would use in pricing the asset or liability. They may be
observable or unobservable. First Guaranty uses a fair value hierarchy
for valuation inputs that gives the highest priority to quoted prices in
active markets for identical assets or liabilities and the lowest priority to
unobservable inputs. See Note 19 for a detailed description of fair value
measurements.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control
over the assets has been surrendered. Control over transferred assets is
deemed to be surrendered when (i) the assets have been isolated from
First Guaranty, (ii) the transferee obtains the right (free of conditions that
constrain it from taking advantage of that right) to pledge or exchange
the transferred assets, and (iii) First Guaranty does not maintain
effective control over the transferred assets through an agreement to
repurchase them before their maturity.

Earnings per share represents income available to common shareholders
divided by the weighted average number of common shares outstanding
during the period. In December of 2021, First Guaranty issued a pro
rata, 10% common stock dividend. The shares issued for the stock
dividend have been retrospectively factored into the calculation of
earnings per share as well as cash dividends paid on common stock
and represented on the face of the financial statements. No convertible
shares of First Guaranty's stock are outstanding.

Operating Segments

All of First Guaranty's operations are considered by management to
be aggregated into one reportable operating segment. While the chief
decision-makers monitor the revenue streams of the various products
and services, the identifiable segments are not material. Operations are
managed and financial performance is evaluated on a Company-wide
basis.

Reclassifications

Certain reclassifications have been made to prior year end financial
statements in order to conform to the classification adopted for reporting
in 2022.

Note 2. Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-
Credit Losses: Measurement of Credit Losses on Financial Instruments".
This ASU amends guidance on reporting credit losses for assets held
at amortized cost basis and available for sale debt securities. The ASU
amendments require the measurement of all expected credit losses
for financial assets held at the reporting date be based on historical
experience, current conditions, and reasonable and supportable
forecasts. The ASU requires assets held at cost basis to reflect the
company's current estimate of all expected credit losses. For available
for sale debt securities, credit losses should be presented as an
allowance rather than as a write-down. In addition, this ASU amends
the accounting for purchased financial assets with credit deterioration.
On October 16, 2019, the FASB approved an effective date delay
applicable to smaller reporting companies until fiscal years beginning
after December 15, 2022, including interim periods within those fiscal
years. First Guaranty adopted this guidance on January 1, 2023.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments-
Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage
Disclosures. ASU 2022-02 addresses areas identified by the FASB
as part of its post-implementation review of the credit losses standard
(ASU 2016-13) that introduced the CECL model. The amendments
eliminate the accounting guidance for troubled debt restructurings
by creditors that have adopted the CECL model and enhance the
disclosure requirements for loan refinancings and restructurings made
with borrowers experiencing financial difficulty. The effective date is
January 1, 2023. We do not expect it will have a material impact on the
consolidated financial statements.

Note 3. Cash and Due from Banks

Certain reserves are required to be maintained at the Federal Reserve
Bank. There was no reserve requirement as of December 31, 2022
and 2021. At December 31, 2022 First Guaranty had three accounts
at correspondent banks, excluding the Federal Reserve Bank, that
exceeded the FDIC insurable limit of $250,000. These accounts were
over the insurable limit by $4.6 million. At December 31, 2021 First
Guaranty had three accounts at correspondent banks, excluding
the Federal Reserve Bank, that exceeded the FDIC insurable limit of
$250,000. These accounts were over the insurable limit by $2.0 million.

118

Note 4. Securities
A summary comparison of securities by type at December 31, 2022 and 2021 is shown below.

December 31, 2022

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

December 31, 2021

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair Value

Amortized
Cost

(in thousands)

$ 100,642

$ -

$ (2,142) $ 98,500

$ -

16,750

14,742

2,711

(752)

(426)

(98)

116,733

15,998

14,347

2,613

79,344

15,543

576

732

156

(623)

116,110

(1,851)

78,225

15,699

586

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

Total available for sale securities

$ 134,845

$ 31

$ (3,418) $ 131,458

$ 212,196

$ 898

$ (2,474) $ 210,620

Held to maturity:

U.S. Government Agencies

Corporate debt securities

$ 265,032

$ -

$(69,503) $ 195,529

$ 153,536

$ -

$ (2,951) $ 150,585

55,036

(8,005)

47,031

Total held to maturity securities

$ 320,068

$ -

$(77,508) $ 242,560

$ 153,536

$ -

$ (2,951) $ 150,585

The scheduled maturities of securities at December 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from
contractual maturities due to call or prepayments. Mortgage-backed securities are not due at a single maturity because of amortization and
potential prepayment of the underlying mortgages. For this reason they are presented separately in the maturity table below.

Available for sale:

Due in one year or less

Due after one year through five years

Due after five years through 10 years

Over 10 years

Subtotal

Mortgage-backed Securities

Total available for sale securities

Held to maturity:

Due in one year or less

Due after one year through five years

Due after five years through 10 years

Over 10 years

December 31, 2022

Amortized Cost

Fair Value

(in thousands)

$ 51,087

$ 50,911

53,552

20,001

7,494

132,134

2,711

51,664

19,129

7,141

128,845

2,613

$ 134,845

$ 131,458

$ -

402

74,092

245,574

344

62,211

180,005

Total held to maturity securities

$ 320,068

$ 242,560

First Guaranty Bancshares Annual Report 2022 119

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31,
2022.

Less Than 12 Months

December 31, 2022

12 Months or More

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

(in thousands)

Total

Fair
Value

Gross
Unrealized
Losses

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

Total available for sale
securities

Held to maturity

U.S. Government Agencies

Corporate debt securities

Total held to maturity
securities

$ -

$ 98,500

$ (2,142)

$ 98,500

$ (2,142)

14,628

5,854

2,608

(622)

(394)

(98)

1,370

673

(130)

(32)

$ 23,090

$ (1,114)

$100,548

$ (2,304)

$ 89,695

$ (21,724)

47,031

(8,005)

$136,726

$ (29,729)

$105,834

$ (47,779)

$105,834

$ (47,779)

15,998

6,527

2,613

(752)

(426)

(98)

$123,638

$ (3,418)

$195,529

$ (69,503)

47,031

(8,005)

$242,560

$(77,508)

The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31,
2021.

Less Than 12 Months

December 31, 2021

12 Months or More

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

Total

Fair
Value

Gross
Unrealized
Losses

(in thousands)

$ -

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

Total available for sale
securities

Held to maturity

116,110

61,551

(623)

(1,677)

$177,727

$ (2,300)

U.S. Government Agencies

$ 150,585

$ (2,951)

Total held to maturity
securities

$150,585

$ (2,951)

445

(174)

$ -

116,110

61,996

(623)

(1,851)

$ 454

$ (174)

$178,181

$ (2,474)

$ -

$150,585

$ (2,951)

$150,585

$ (2,951)

As of December 31, 2022, 169 of First Guaranty's debt securities had gross unrealized losses totaling 18.1% of the individual securities' amortized
cost basis and 17.8% of First Guaranty's total amortized cost basis of the investment securities portfolio. 34 of the 169 securities had been in
a continuous loss position for over 12 months at such date. The 34 securities had an aggregate amortized cost basis of $256.5 million and an
unrealized loss of $50.1 million at December 31, 2022. Management has the intent and ability to hold these debt securities until maturity or until
anticipated recovery.

120

Securities are evaluated for other-than-temporary impairment at least
quarterly and more frequently when economic or market conditions
warrant such evaluation. Consideration is given to (i) the length of time
and the extent to which the fair value has been less than cost, (ii)
the financial condition and near-term prospects of the issuer, (iii) the
recovery of contractual principal and interest and (iv) the intent and
ability of First Guaranty to retain its investment in the issuer for a period
of time sufficient to allow for any anticipated recovery in fair value.

Investment securities issued by the U.S. Government and Government
sponsored enterprises with unrealized losses and the amount of
unrealized losses on those investment securities that are the result
of changes in market interest rates will not be other-than-temporarily
impaired. First Guaranty has the ability and intent to hold these
securities until recovery, which may not be until maturity.

Corporate debt securities in a loss position consist primarily of
corporate bonds issued by businesses in the financial, insurance,
utility, manufacturing, industrial, consumer products and oil and gas
industries. There were no securities with an other-than-temporary
impairment loss at December 31, 2022. First Guaranty believes that
the remaining issuers will be able to fulfill the obligations of these
securities based on evaluations described above. First Guaranty has
the ability and intent to hold these securities until they recover, which
could be at their maturity dates.

There were no other-than-temporary impairment losses recognized on
securities during the years ended December 31, 2022 and 2021.

The following table presents a roll-forward of the amount of credit losses on debt securities held by First Guaranty for which a portion of OTTI was
recognized in other comprehensive income for the year ended December 31, 2022 and 2021:

Beginning balance of credit losses at beginning of year

Other-than-temporary impairment credit losses on securities not previously OTTI

Increases for additional credit losses on securities previously determined to be
OTTI

Reduction for increases in cash flows

Reduction due to credit impaired securities sold or fully settled

Ending balance of cumulative credit losses recognized in earnings at end of year

Year Ended
December 31,
2022

Year Ended
December 31,
2021

(in thousands)

$ -

$ 100

(100)

In 2022 and 2021 there were no other-than-temporary impairment
credit losses on securities for which First Guaranty had previously
recognized OTTI. For securities that have indications of credit related
impairment, management analyzes future expected cash flows to
determine if any credit related impairment is evident. Estimated cash
flows are determined using management's best estimate of future
cash flows based on specific assumptions. The assumptions used to
determine the cash flows were based on estimates of loss severity and
credit default probabilities. Management reviews reports from credit
rating agencies and public filings of issuers.

At December 31, 2022 and 2021 the carrying value of pledged
securities totaled $260.8 million and $234.9 million, respectively.

Gross realized gains on sales of securities were $0.1 million and $1.0
million for the years ended December 31, 2022 and 2021, respectively.
Gross realized losses were $0.1 million and $0.4 million for the years
ended December 31, 2022 and 2021. The tax applicable to these
transactions amounted to $3,000 and $0.1 million for 2022 and 2021,
respectively. Proceeds from sales of securities classified as available
for sale amounted to $3.1 million and $49.7 million for the years ended
December 31, 2022 and 2021, respectively.

Net unrealized losses on available for sale securities included in
accumulated other comprehensive income (loss) ("AOCI"), net of
applicable income taxes, totaled $15.2 million at December 31, 2022.

At December 31, 2021 net unrealized gains included in AOCI, net of
applicable income taxes, totaled $6.6 million. During 2022 net gains,
net of tax, reclassified out of AOCI into earnings totaled $13,000.
During 2021 net gains, net of tax, reclassified out of AOCI into earnings
totaled $0.6 million.

At December 31, 2022, First Guaranty's exposure to investment
securities issuers that exceeded 10% of shareholders' equity was as
follows:

December 31, 2022

Amortized
Cost

Fair Value

(in thousands)

U.S. Government Treasuries (U.S.)

$ 100,642

$ 98,500

Federal Home Loan Bank (FHLB)

Federal Home Loan Mortgage
Corporation (Freddie Mac-FHLMC)

Federal Fam Credit Bank (FFCB)

Total

32,090

25,047

97,414

138,237

67,307

105,787

$ 368,383

$ 296,641

First Guaranty Bancshares Annual Report 2022 121

Note 5. Loans
The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2022 and December 31, 2021:

December 31,

2022

2021

Balance

As % of Category

Balance

As % of Category

(in thousands, except for %)

Real Estate:

Construction & land development

$ 233,091

Farmland

1- 4 Family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial(1)

Commercial leases

Consumer and other

Total Non-Real Estate

Total Loans Before Unearned Income

Unearned income

24,823

366,330

119,785

992,929

1,736,958

39,045

385,279

317,574

47,864

789,762

2,526,720

(7,643)

9.2%

1.0%

14.5%

4.7%

39.3%

68.7%

1.5%

15.3%

12.6%

1.9%

31.3%

100.0%

$ 174,334

31,810

288,347

65,848

886,407

1,446,746

26,747

398,391

246,022

48,142

719,302

2,166,048

(6,689)

8.1%

1.5%

13.3%

3.0%

40.9%

66.8%

1.2%

18.4%

11.4%

2.2%

33.2%

100.0%

Total Loans Net of Unearned Income

$ 2,519,077

$ 2,159,359

(1) Includes PPP loans fully guaranteed by the SBA of $5.9 million and $35.4 million at December 31, 2022 and December 31, 2021, respectively.

The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of December 31, 2022 and
December 31, 2021 unadjusted for scheduled principal payments, prepayments, or repricing opportunities. The average life of the loan portfolio
may be substantially less than the contractual terms when these adjustments are considered.

2022

December 31,

(in thousands)

2022

Fixed

Floating

Total

Fixed

Floating

Total

$ 234,921

$ 137,203

$ 372,124

$ 239,423

$ 117,697

$ 357,120

900,960

114,425

339,894

1,240,854

216,251

330,676

569,500

926,640

114,976

179,522

385,509

106,579

78,987

1,312,149

221,555

258,509

261,209

308,291

$ 1,511,515

$ 1,001,639

2,513,154

$ 1,460,561

$ 688,772

2,149,333

13,566

2,526,720

(7,643)

$ 2,519,077

16,715

2,166,048

(6,689)

$ 2,159,359

One year or less

One to five years

Five to 15 years

Over 15 years

Subtotal

Nonaccrual loans

Total Loans Before Unearned Income

Unearned income

Total Loans Net of Unearned Income

Included in floating rate loans are loans that adjust to a floating rate following an initial fixed rate period. The initial fixed rate periods are typically
one, three, or five years.

122

The following tables present the age analysis of past due loans at December 31, 2022 and December 31, 2021:

As of December 31, 2022

30-89 Days
Past Due

90 Days or
Greater Past
Due

Total Past
Due

Current

Total Loans

Recorded
Investment 90
Days Accruing

(in thousands)

Real Estate:

Construction & land development

$ 1,029

$ 652

$ 1,681

$ 231,410

$ 233,091 $ 427

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

357

4,512

874

1,133

7,905

120

1,369

1,997

3,486

290

4,158

157

3,849

9,106

1,622

942

1,799

1,239

5,602

647

8,670

1,031

4,982

24,176

357,660

118,754

987,947

24,823

366,330

119,785

992,929

332

157

103

17,011

1,719,947

1,736,958

1,019

1,742

2,311

1,799

3,236

9,088

37,303

382,968

315,775

44,628

780,674

39,045

385,279

317,574

47,864

789,762

123

Total Loans Before Unearned Income

$ 11,391

$ 14,708

$ 26,099

$2,500,621

2,526,720

$ 1,142

Unearned income

Total Loans Net of Unearned Income

(7,643)

$ 2,519,077

As of December 31, 2021

30-89 Days
Past Due

90 Days or
Greater Past
Due

Total Past
Due

Current

Total Loans

Recorded
Investment 90
Days Accruing

(in thousands)

Real Estate:

Construction & land development

$ 956

$ 776

$ 1,732

$ 172,602

$ 174,334 $ 246

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

3,932

1,669

1,352

7,926

1,233

920

2,250

787

3,375

162

9,014

14,114

2,302

722

822

3,846

804

7,307

1,831

10,366

22,040

2,399

1,955

1,742

6,096

31,006

281,040

64,017

876,041

31,810

288,347

65,848

886,407

514

162

281

1,424,706

1,446,746

1,203

24,348

396,436

246,022

46,400

713,206

26,747

398,391

246,022

48,142

719,302

Total Loans Before Unearned Income

$ 10,176

$ 17,960

$ 28,136

$2,137,912

2,166,048

$ 1,245

Unearned income

Total Loans Net of Unearned Income

(6,689)

$ 2,159,359

The tables above include $13.6 million and $16.7 million of nonaccrual loans for December 31, 2022 and 2021, respectively. See the tables below
for more detail on nonaccrual loans.

First Guaranty Bancshares Annual Report 2022 123

The following is a summary of nonaccrual loans by class at the dates indicated:

As of December 31,

2022

2021

(in thousands)

Real Estate:

Construction & land development

$ 225

$ 530

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Nonaccrual Loans

290

3,826

3,746

8,087

1,622

819

1,799

1,239

5,479

787

2,861

8,733

12,911

2,302

699

803

3,804

$ 13,566

$ 16,715

The following table identifies the credit exposure of the loan portfolio, including loans acquired with deteriorated credit quality, by specific credit
ratings as of the dates indicated:

As of December 31, 2022

As of December 31, 2021

Pass

Special
Mention

Sub-

standard Doubtful

Total

Pass

Special
Mention

Sub-

standard Doubtful

Total

(in thousands)

$ 229,416 $ 2,846 $ 829

$ - $ 233,091 $ 151,220

$ 21,997 $ 1,117 $ - $ 174,334

19,722

347,842

8,667

117,081

444

968,861

15,071

5,066

9,821

2,260

8,997

1,682,922

27,063

26,973

34,827

374,947

315,775

198

2,016

45,225

1,031

4,020

8,316

1,799

1,608

770,774

3,245

15,743

24,823

27,678

366,330

270,866

119,785

992,929

56,686

7,644

2,212

4,092

9,837

6,950

795,495

72,103

18,809

1,736,958

1,301,945

103,996

40,805

39,045

23,952

128

385,279

355,407

34,220

317,574

245,869

47,864

46,804

374

2,667

8,764

153

964

789,762

672,032

34,722

12,548

31,810

288,347

65,848

886,407

1,446,746

26,747

398,391

246,022

48,142

719,302

$ 2,453,696 $ 30,308 $ 42,716

$ -

2,526,720 $1,973,977

$138,718 $ 53,353 $ -

2,166,048

(7,643)

$2,519,077

(6,689)

$2,159,359

Real Estate:

Construction & land
development

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Loans Before Unearned
Income

Unearned income

Total Loans Net of Unearned
Income

124

Purchased Impaired Loans

As part of the acquisition of Union Bancshares, Inc. on November 7, 2019 and Premier Bancshares, Inc. on June 16, 2017, First Guaranty
purchased credit impaired loans for which there was, at acquisition, evidence of deterioration of credit quality since their origination and it was
probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at
December 31, 2022 and 2021.

As of December 31, 2022

As of December 31, 2021

(in thousands)

Real Estate:

Construction & land development

$ 301

$ 146

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total

1,311

1,904

3,516

742

1,848

2,192

4,186

159

798

957

$ 4,258

$ 5,143

For those purchased loans disclosed above, there was an allowance
for loan and lease losses of $0.7 million at December 31, 2022 and
December 31, 2021.

Where First Guaranty can reasonably estimate the cash flows expected
to be collected on the loans, a portion of the purchase discount is
allocated to an accretable yield adjustment based upon the present
value of the future estimated cash flows versus the current carrying
value of the loan and the accretable yield portion is being recognized
as interest income over the remaining life of the loan.

Where First Guaranty cannot reasonably estimate the cash flows
expected to be collected on the loans, it has decided to account for
those loans using the cost recovery method of income recognition.

As such, no portion of a purchase discount adjustment has been
determined to meet the definition of an accretable yield adjustment
on those loans accounted for using the cost recovery method. If,
in the future, cash flows from the borrower(s) can be reasonably
estimated, a portion of the purchase discount would be allocated to an
accretable yield adjustment based upon the present value of the future
estimated cash flows versus the current carrying value of the loan and
the accretable yield portion would be recognized as interest income
over the remaining life of the loan. Until such accretable yield can
be calculated, under the cost recovery method of income recognition,
all payments will be used to reduce the carrying value of the loan and
no income will be recognized on the loan until the carrying value is
reduced to zero.

The accretable yield, or income expected to be collected, on the purchased loans above is as follows for the years ended December 31, 2022 and
2021.

Balance, beginning of period

Acquisition accretable yield

Accretion

Net transfers from nonaccretable difference to accretable yield

Year Ended
December 31,

2022

2021

(in thousands)

$ 2,378

$ 2,892

(268)

(514)

Balance, end of period

$ 2,110

$ 2,378

First Guaranty Bancshares Annual Report 2022 125

Note 6. Allowance for Loan and Lease Losses
A summary of changes in the allowance for loan and lease losses, by loan type, for the years ended December 31, 2022 and 2021 are as follows:

141

320

437

(74 )

(367 )

(26)

478

1,921

940

(1,321)

12.730

(1,956)

16,838

134

183

(446

)

1,899

1,638

786

4,011

2,363

2,486

1,371

788

7,191

As of December 31,

2022

2021

Beginning
Allowance
(12/31/21)

Charge-
Offs

Recoveries Provision

Ending
Allowance
(12/31/22)

Beginning
Allowance
(12/31/20)

Charge-
Offs

(in thousands)

Recoveries

Provision

Ending
Allowance
(12/31/21)

$ 769 $ (65

)

$ 340

$ 188

$ 1,232

$ 1,029 $ (92

)

$ -

$ (168 )

$ 769

478

1,921

940

(94)

452

(395 )

(142 )

(646)

1,761

746

462

2,510

978

(266)

(12)

12,730

16,838

(603)

(762)

349

(3,196)

9,280

15,064

(1,020)

1,217

(4,191)

13,102

20,043

(1,390)

Real Estate:

Construction & land
development

Farmland

1- 4 family

Multifamily

Non-farm non-
residential

Total Real Estate

Non-Real Estate:

Agricultural

183

(460)

Commercial and
industrial

Commercial leases

Consumer and other

Unallocated

2,363

2,486

1,371

788

(563)

(150)

(4,151)

133

473

384

303

2,538

4,813

(191)

240

181

(149)

2,194

4,879

2,506

597

2,802

(89)

583

907

(1,494)

Total Non-Real Estate

7,191

(5,324)

702

7,847

10,416

4,475

(1,732)

Total

$24,029 $(6,086)

$1,919

$ 3,656

$23,518

$24,518

$(3,122)

$ 578

$ 2,055

$24,029

Negative provisions are caused by changes in the composition and credit quality of the loan portfolio. The result is an allocation of the loan loss
reserve from one category to another.

126

A summary of the allowance along with loans and leases, including loans acquired with deteriorated credit quality, individually and collectively
evaluated for impairment are as follows:

As of December 31, 2022

Allowance
Individually
Evaluated
for
Purchased
Credit-
Impairment

Allowance
Individually
Evaluated
for
Impairment

Allowance
Collectively
Evaluated
for Impairment

Total
Allowance
for Credit
Losses

Loans
Individually
Evaluated
for
Purchased
Credit-
Impairment

Loans
Individually
Evaluated
for
Impairment

Loans
Collectively
Evaluated
for
Impairment

Total
Loans
before
Unearned
Income

(in thousands)

$ -

$ 1,232 $ 1,232

$ 68 $ 301

$ 232,722

$ 233,091

666

412

1,799

512

212

1,761

746

8,102

11,924

1,761

746

9,280

13,102

240

1,570

3,080

2,506

597

7,993

2,194

4,879

2,506

597

4,240

949

4,095

9,352

2,366

5,919

1,799

1,311

1,904

3,516

20,583

364,070

119,785

24,823

366,330

119,785

986,930

992,929

1,724,090

1,736,958

36,679

39,045

742

378,618

315,775

47,864

385,279

317,574

47,864

Real Estate:

Construction & land
development

Farmland

1- 4 family

Multifamily

Non-farm non-
residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and
industrial

Commercial leases

Consumer and other

Unallocated

Total Non-Real Estate

2,211

212

10,416

10,084

742

778,936

789,762

Total

Unearned Income

Total Loans Net of
Unearned Income

$ 2,877

$ 724

$ 19,917

$ 23,518

$ 19,436 $ 4,258

$ 2,503,026

$ 2,526,720

(7,643)

$ 2,519,077

First Guaranty Bancshares Annual Report 2022 127

As of December 31, 2021

Allowance
Individually
Evaluated
for
Purchased
Credit-
Impairment

Allowance
Individually
Evaluated
for
Impairment

Allowance
Collectively
Evaluated
for Impairment

Total
Allowance
for Credit
Losses

Loans
Individually
Evaluated
for
Purchased
Credit-
Impairment

Loans
Individually
Evaluated
for
Impairment

Loans
Collectively
Evaluated
for
Impairment

Total
Loans
before
Unearned
Income

(in thousands)

Real Estate:

Construction & land
development

Farmland

1- 4 family

Multifamily

Non-farm non-
residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and
industrial

Commercial leases

Consumer and other

Unallocated

Total Non-Real Estate

Total

Unearned Income

Total Loans Net of
Unearned Income

$ -

$ 769 $ 769

$ - $ 146

$ 174,188

$ 174,334

258

1,822

2,099

509

216

459

1,663

940

10,399

14,230

478

1,921

940

12,730

16,838

183

2,075

2,486

1,371

788

6,903

2,363

2,486

1,371

788

7,191

496

961

10,899

12,356

1,383

1,286

1,848

2,192

4,186

159

798

31,314

285,538

65,848

31,810

288,347

65,848

873,316

886,407

1,430,204

1,446,746

25,205

26,747

396,307

246,022

48,142

398,391

246,022

48,142

2,669

957

715,676

719,302

$ 2,171

$ 725

$ 21,133

$ 24,029

$ 15,025 $ 5,143

$ 2,145,880

$ 2,166,048

(6,689)

$ 2,159,359

As of December 31, 2022 and 2021, First Guaranty had loans totaling $13.6 million and $16.7 million, respectively, not accruing interest. As of
December 31, 2022, and 2021, First Guaranty had loans past due 90 days or more and still accruing interest totaling $1.1 million and $1.2 million,
respectively. The average outstanding balance of nonaccrual loans in 2022 was $12.8 million compared to $17.1 million in 2021.

As of December 31, 2022, First Guaranty has no outstanding commitments to advance additional funds in connection with impaired loans.

128

The following is a summary of impaired loans, excluding loans acquired with deteriorated credit quality, by class at December 31, 2022:

As of December 31, 2022

Recorded
Investment

Unpaid
Principal
Balance

Average
Recorded
Investment

Interest Income
Recognized

Related
Allowance

(in thousands)

Impaired Loans with no related allowance:

Real Estate:

Construction & land development

$ 68

$ -

$ 68

$ -

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Impaired Loans with no related allowance

Impaired Loans with an allowance recorded:

Real estate:

Construction & land development

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Impaired Loans with an allowance recorded

4,240

949

1,814

7,071

2,366

4,871

949

1,814

7,071

2,521

4,988

7,237

14,308

7,509

14,580

2,281

1,048

1,799

2,847

5,128

2,855

1,048

1,812

2,860

5,715

666

412

1,799

2,211

2,877

4,242

949

1,817

7,076

2,366

4,988

7,354

14,430

2,279

1,112

1,817

2,929

5,208

112

152

Total Impaired Loans

$ 19,436

$ 20,295

$ 2,877

$ 19,638

$ 219

First Guaranty Bancshares Annual Report 2022 129

The following is a summary of impaired loans, excluding loans acquired with deteriorated credit quality, by class at December 31, 2021:

As of December 31, 2021

Recorded
Investment

Unpaid
Principal
Balance

Related
Allowance

(in thousands)

Average
Recorded
Investment

Interest Income
Recognized

Impaired Loans with no related allowance:

Real Estate:

Construction & land development

$ -

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Impaired Loans with no related allowance

Impaired Loans with an allowance recorded:

Real estate:

Construction & land development

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total Impaired Loans with an allowance recorded

5,164

1,383

470

1,853

7,017

496

961

5,735

7,192

816

8,008

5,818

1,668

470

2,138

7,956

626

961

5,996

7,583

816

8,399

258

1,822

2,099

2,171

5,935

1,412

479

1,891

7,826

515

968

5,842

7,325

875

8,200

137

167

146

174

Total Impaired Loans

$ 15,025

$ 16,355

$ 2,171

$ 16,026

$ 341

130

Troubled Debt Restructurings

A Troubled Debt Restructuring ("TDR") is considered such if the
lender for economic or legal reasons related to the debtor's financial
difficulties grants a concession to the debtor that it would not otherwise
consider. The modifications to First Guaranty's TDRs were concessions
on either the interest rate charged or the amortization. The effect of
the modifications to First Guaranty was a reduction in interest income.
These loans have an allocated reserve in First Guaranty's allowance
for loan and lease losses. First Guaranty restructured one loan that is
considered TDR in the year ended December 31, 2022. First Guaranty
did not restructure any loans that are considered TDRs in the year
ended December 31, 2021. At December 31, 2022, First Guaranty
had one outstanding TDR.

Under section 4013 of the Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”), which was signed into law on March 27,
2020, financial institutions have the option to temporarily suspend
certain requirements under U.S. generally accepted accounting
principles related to troubled debt restructurings for a limited period
of time to account for the effects of COVID-19. This provision allows a
financial institution the option to not apply the guidance on accounting
for troubled debt restructurings to loan modifications, such as
extensions or deferrals, related to COVID-19 made between March 1,
2020 and the earlier of (i) December 31, 2020 or (ii) 60 days after
the end of the COVID-19 national emergency. The relief can only be
applied to modifications for borrowers that were not more than 30 days
past due as of December 31, 2019. First Guaranty elected to adopt
these provisions of the CARES Act.

The following table is an age analysis of TDRs as of December 31, 2022 and December 31, 2021:

December 31, 2022

December 31, 2021

Accruing Loans

30-89
Days Past
Due

Current

Accruing Loans

Non-

accrual

Total
TDRs

Current

(in thousands)

30-89
Days
Past Due

Non-
accrual

Total
TDRs

Real Estate:

Construction & land development

- $

Farmland

1- 4 Family

Multifamily

Non-farm non-residential

Total Real Estate

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Total Non-Real Estate

Total

1,094

$ 1,094 $

- $

- $ 1,094

$ -

3,382

$ 3,382

There were no commitments to lend additional funds to debtors whose terms have been modified in a troubled debt restructuring at
December 31, 2022.

The TDR requirements became inapplicable to First Guaranty upon its adoption of CECL on January 1, 2023.

First Guaranty Bancshares Annual Report 2022 131

Note 7. Premises and Equipment

The components of premises and equipment at December 31, 2022 and 2021 are as follows:

Land

Bank premises

Furniture and equipment

Construction in progress

Acquired value

Less: accumulated depreciation

Net book value

December 31,

2022

2021

(in thousands)

$ 15,284

54,423

31,109

1,854

102,670

44,464

53,899

30,481

536

100,200

41,563

$ 58,206

$ 58,637

Depreciation expense amounted to $3.1 million and $3.4 million for 2022 and 2021, respectively. Interest cost capitalized as a construction cost
was $0 and $61,000 for 2022 and 2021, respectively.

Note 8. Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are no longer amortized, but are subject to impairment testing. Other intangible
assets continue to be amortized over their useful lives. Goodwill represents the purchase price over the fair value of net assets acquired from the
Homestead Bancorp in 2007, Premier Bancshares, Inc. in 2017 and Union Bancshares, Incorporated in 2019. No impairment charges have been
recognized since acquisition. Goodwill totaled $12.9 million at December 31, 2022 and 2021.

The following table summarizes intangible assets subject to amortization.

December 31,

2022

2021

Gross Carrying
Amount

Accumulated
Amortization

Net Carrying
Amount

Gross Carrying
Amount

Accumulated
Amortization

Net Carrying
Amount

(in thousands)

Core deposit intangibles

Loan servicing assets

Total

$ 16,266

$ 11,911

$ 4,355

$ 16,266

$ 11,215

$ 5,051

2,195

1,571

$ 18,461

$ 13,482

624

$ 4,979

2,133

1,262

$ 18,399

$ 12,477

871

$ 5,922

The core deposits intangible reflect the value of deposit relationships,
including the beneficial rates, which arose from acquisitions. The
weighted-average amortization period remaining for the core deposit
intangibles is 6.3 years.

Amortization expense relating to purchase accounting intangibles
totaled $0.7 million and $0.8 million for the years ended December 31,
2022 and 2021, respectively.

Amortization expense of the core deposit intangible assets for the next
five years is as follows:

Note 9. Other Real Estate
Other real estate owned consists of the following at the dates indicated:

December 31,

2022

2021

(in thousands)

Real Estate Owned Acquired by
Foreclosure:

Residential

$ 113

$ 817

For the Years Ended

Estimated Amortization Expense

Construction & land development

(in thousands)

Non-farm non-residential

December 31, 2023

December 31, 2024

December 31, 2025

December 31, 2026

December 31, 2027

132

$696

Total Other Real Estate Owned and
Foreclosed Property

Allowance for Other Real Estate
Owned losses

Net Other Real Estate Owned and
Foreclosed Property

1,776

113

2,593

(521)

$ 113

$ 2,072

Note 10. Deposits

A schedule of maturities of all time deposits are as follows:

2023

2024

2025

2026

December 31, 2022

(in thousands)

$ 312,910

148,386

34,624

25,191

2027 and thereafter

12,247

Total

$ 533,358

The table above includes $250,000 in brokered deposits for
December 31, 2022. The aggregate amount of jumbo time deposits,
each with a minimum denomination of $250,000 totaled $155.0 million
and $159.1 million at December 31, 2022 and 2021, respectively.

Note 11. Borrowings

Short-term borrowings are summarized as follows:

December 31,
2022

December 31,
2021

(in thousands)

Federal Home Loan Bank

advances

$ 120,000

$ -

Repurchase agreements

Line of credit

6,442

20,000

6,439

Total short-term borrowings

$ 146,442

$ 6,439

Available lines of credit totaled $505.5 million at December 31, 2022
and $597.6 million at December 31, 2021.

The following schedule provides certain information about First
Guaranty's short-term borrowings for the periods indicated:

Outstanding at year end

Maximum month-end outstanding

Average daily outstanding

Weighted average rate during the

year

Weighted average rate at year end

December 31,

2022

2021

(in thousands, except for %)

$ 146,442

$ 6,439

$ 146,442

$ 42,149

$ 56,369

$ 10,458

5.12%

4.86%

1.40%

2.23%

Long-term debt is summarized as follows:

First Guaranty had a long-term FHLB advance that was acquired from
the Union transaction that totaled $3.2 million at December 31, 2021.
This advance was paid off during the first quarter of 2022.

Senior long-term debt with a commercial bank, priced at floating Wall
Street Journal Prime less 70 basis points (6.80%), totaled $21.9 million
at December 31, 2022 and $25.2 million at December 31, 2021. First
Guaranty pays $812,500 principal plus interest quarterly. This loan
was renewed in November 2019 and has a contractual maturity date
of November 7, 2024. This long-term debt is secured by a pledge of
85% (4,823,899 shares) of First Guaranty's interest in First Guaranty
Bank (a wholly owned subsidiary).

Subordinated debt, priced at Wall Street Journal Prime plus 75
basis points totaled $0 at December 31, 2022 and $14.8 million at
December 31, 2021. First Guaranty redeemed this Note on June 21,
2022.

Junior subordinated debt, priced at Wall Street Journal Prime plus
75 basis points (8.25% as of December 31, 2022), totaled $15.0
million at December 31, 2022. First Guaranty pays interest quarterly.
The Note is unsecured and ranks junior in right of payment to any
senior indebtedness and obligations to general and secured creditors.
This note replaced the previously mentioned $15.0 million junior
subordinated note above in June 2022. The current Note is scheduled
to mature on June 21, 2032. The Note qualifies for treatment as Tier 2
capital for regulatory capital purposes.

First Guaranty maintains two revolving lines of credit. A $6.5 million
line of credit with an availability of $6.5 million at December 31, 2022.
This line of credit is secured by a pledge of 13.2% (735,745 shares)
of First Guaranty's interest in First Guaranty Bank (a wholly owned
subsidiary) and is priced at 7.50%. A $20.0 million line of credit
with an availability of $0 at December 31, 2022. This line of credit is
secured by a pledge of 85% (4,823,899 shares) of First Guaranty's
interest in First Guaranty Bank (a wholly owned subsidiary) and is
priced at 7.25%.

At December 31, 2022, letters of credit issued by the FHLB totaling
$388.6 million were outstanding and carried as off-balance sheet
items, all of which expire by 2024. At December 31, 2021, letters of
credit issued by the FHLB totaling $250.7 million were outstanding
and carried as off-balance sheet items, all of which expire by 2024.
The letters of credit are solely used for pledging towards public fund
deposits. The FHLB has a blanket lien on substantially all of the
loans in First Guaranty's portfolio which is used to secure borrowing
availability from the FHLB. First Guaranty has obtained a subordination
agreement from the FHLB on First Guaranty's farmland, agricultural,
and commercial and industrial loans. These loans are available to be
pledged for additional reserve liquidity.

As of December 31, 2022 obligations on long-term advances from
FHLB, senior long-term debt and junior subordinated debentures
totaled $36.9 million.

First Guaranty Bancshares Annual Report 2022 133

The scheduled payments are as follows:

2023

2024

2025

2026

2027

2028 and thereafter

Subtotal

Debt issuance costs

Total

Long-term
Advances
from FHLB

Senior
Long-term

Debts

(in thousands)

Junior
Subordinated
Debentures

$ -

$ 3,250

$ -

18,687

15,000

$ -

$ 21,937

$ 15,000

(10)

$ -

$ 21,927

$ 15,000

Note 12. Capital Requirements
First Guaranty Bank is subject to various regulatory capital requirements
administered by federal and state banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory and
possibly additional discretionary actions that, if undertaken, could
have a direct material effect on First Guaranty's financial statements.
Under capital adequacy guidelines and the regulatory framework
for prompt corrective action, the Bank must meet specific capital
guidelines that involve quantitative measures of their assets, liabilities
and certain off-balance sheet items as calculated under regulatory
accounting practices. The capital amounts and classification are also
subject to qualitative judgments by the regulators about components,
risk weightings and other factors.

Quantitative measures established by regulation to ensure capital
adequacy require the Bank to maintain minimum amounts and ratios
of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to
average assets. Management believes, as of December 31, 2022 and
2021, that the Bank met all capital adequacy requirements.

In addition to establishing the minimum regulatory capital requirements,
the regulations limit capital distributions and certain discretionary
bonus payments to management if the institution does not hold a
"capital conservation buffer" consisting of 2.5% of common equity Tier
1 capital to risk-weighted assets above the amount necessary to meet
its minimum risk-based capital requirements. First Guaranty Bank's
capital conservation buffer was 3.16% at December 31, 2022.

In addition, as a result of the legislation, the federal banking agencies
have developed a "Community Bank Leverage Ratio" (the ratio
of a bank's Tier 1 capital to average total consolidated assets) for
financial institutions with assets of less than $10 billion. A "qualifying
community bank" that exceeds this ratio will be deemed to be in
compliance with all other capital and leverage requirements, including
the capital requirements to be considered "well capitalized" under
Prompt Corrective Action statutes. The federal banking agencies may
consider a financial institution's risk profile when evaluating whether
it qualifies as a community bank for purposes of the capital ratio
requirement. The federal banking agencies set the new Community
Bank Leverage Ratio at 9%. Pursuant to the CARES Act, the federal
banking agencies set the Community Bank Leverage Ratio at 8%
beginning in the second quarter of 2020 through the end of 2020.
Beginning in 2021, the Community Bank Leverage Ratio increased
to 8.5% for the calendar year. Community banks will have until Jan.
1, 2022, before the Community Bank Leverage Ratio requirement will
return to 9%. A financial institution can elect to be subject to this new
definition. The new rule took effect on January 1, 2020. The Bank did
not elect to follow the Community Bank Leverage Ratio.

134

As of December 31, 2022, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized
under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total
risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification
that Management believes have changed the Bank's category. First Guaranty Bank's actual capital amounts and ratios as of December 31, 2022
and 2021 are presented in the following table.

Actual

Minimum Capital
Requirements

Minimum to be Well
Capitalized Under Action
Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

December 31, 2022

Total Risk-Based Capital:

Tier 1 Capital:

Tier 1 Leverage Capital:

Common Equity Tier One Capital:

December 31, 2021

Total Risk-Based Capital:

Tier 1 Capital:

Tier 1 Leverage Capital:

Common Equity Tier One Capital:

$ 308,510

11.16%

$ 284,992

10.31%

$ 284,992

9.35%

$ 284,992

10.31%

$ 268,002

11.22%

$ 243,973

10.22%

$ 243,973

8.71%

$ 243,973

10.22%

(in thousands, except for %)

$ 221,066

$ 165,800

$ 121,884

$ 124,350

$ 191,069

$ 143,302

$ 112,018

$ 107,476

8.00%

6.00%

4.00%

4.50%

8.00%

6.00%

4.00%

4.50%

$ 276,333

10.00%

$ 221,066

$ 152,355

$ 179,616

8.00%

5.00%

6.50%

$ 238,837

10.00%

$ 191,069

$ 140,023

$ 155,244

8.00%

5.00%

6.50%

Note 13. Dividend Restrictions

The Federal Reserve Bank ("FRB") has stated that, generally, a
bank holding company should not maintain a rate of distributions
to shareholders unless its available net income has been sufficient
to fully fund the distributions, and the prospective rate of earnings
retention appears consistent with the bank holding company's capital
needs, asset quality and overall financial condition. As a Louisiana
corporation, First Guaranty is restricted under the Louisiana corporate
law from paying dividends under certain conditions.

First Guaranty Bank may not pay dividends or distribute capital assets
if it is in default on any assessment due to the FDIC. First Guaranty
Bank is also subject to regulations that impose minimum regulatory
capital and minimum state law earnings requirements that affect
the amount of cash available for distribution. In addition, under the
Louisiana Banking Law, dividends may not be paid if it would reduce
the unimpaired surplus below 50% of outstanding capital stock in any
year.

The Bank is restricted under applicable laws in the payment of dividends
to an amount equal to current year earnings plus undistributed
earnings for the immediately preceding year, unless prior permission
is received from the Commissioner of Financial Institutions for the
State of Louisiana. Dividends payable by the Bank in 2023 without
permission will be limited to 2023 earnings plus the undistributed
earnings of $10.3 million from 2022.

Accordingly, at January 1, 2023, $276.7 million of First Guaranty's
equity in the net assets of the Bank was restricted. In addition,
dividends paid by the Bank to First Guaranty would be prohibited if
the effect thereof would cause the Bank's capital to be reduced below
applicable minimum capital requirements.

Note 14. Related Party Transactions

In the normal course of business, First Guaranty and its subsidiary,
First Guaranty Bank, have loans, deposits and other transactions
with its executive officers, directors, affiliates and certain business

organizations and individuals with which such persons are associated.
These transactions are completed with terms no less favorable than
current market rates. An analysis of the activity of loans made to
such borrowers during the year ended December 31, 2022 and 2021
follows:

December 31,

2022

2021

(in thousands)

Balance, beginning of year

$ 93,270

$ 79,399

Net (Decrease) Increase

Balance, end of year

(3,535)

13,871

$ 89,735

$ 93,270

Unfunded commitments to First Guaranty and Bank directors
and executive officers totaled $45.6 million and $45.4 million at
December 31, 2022 and 2021, respectively. At December 31, 2022
First Guaranty and the Bank had deposits from directors and executives
totaling $75.4 million. There were no participations in loans purchased
from affiliated financial institutions included in First Guaranty's loan
portfolio in 2022 or 2021.

During the years ended 2022 and 2021, First Guaranty paid
approximately $0.3 million, respectively, for printing services and
supplies and office furniture and equipment to Champion Industries,
Inc., of which Mr. Marshall T. Reynolds, the Chairman of First Guaranty's
Board of Directors, is President, Chief Executive Officer, Chairman of
the Board of Directors and a major shareholder of Champion.

On December 21, 2015, First Guaranty issued a $15.0 million
subordinated note (the "2015 Note") to Edgar Ray Smith III, a director
of First Guaranty. The 2015 Note had a ten-year term (non-callable
for first five years) and bore interest at a fixed annual rate of 4.0%
for the first five years of the term and then adjusted to a floating rate
based on the Prime Rate as reported by the Wall Street Journal plus 75
basis points for the period of time after the fifth year until redemption
or maturity. On June 21, 2022, First Guaranty issued a $15.0 million

First Guaranty Bancshares Annual Report 2022 135

subordinated note (the “2022 Note”) to Mr. Smith, and used the
proceeds of such issuance to redeem the 2015 Note in full. The 2022
Note has a ten-year term, maturing on June 21, 2032, is non-callable
for the first five years, and bears interest at a floating rate based on the
Prime Rate as reported by the Wall Street Journal plus 75 basis points.
During the years ended 2022 and 2021, First Guaranty paid interest of
$0.7 million and $0.8 million, respectively, under the 2015 Note and
the 2022 Note.

Note 16. Other Expenses

The following is a summary of the significant components of other
noninterest expense:

December 31,

2022

2021

During the years ended 2022 and 2021, First Guaranty paid approx-
imately $0.1 million and $0.1 million, respectively, for the purchase and
maintenance of First Guaranty's automobiles to subsidiaries of Hood
Automotive Group, of which William K. Hood, a director of First Guaranty,
is President.

Legal and professional fees

Other noninterest expense:

(in thousands)

$ 4,159

$ 3,375

Data processing

1,596

1,794

During the years ended 2022 and 2021, First Guaranty paid
approximately $58,000 and $0, respectively, for architectural services
in relation to bank branches to Gasaway Gasaway Bankston Architects,
of which bank subsidiary board member Andrew B. Gasaway is part
owner.

During the years ended 2022 and 2021, First Guaranty paid
approximately $0.7 million and $0.6 million, respectively, to Centurion
Insurance, an insurance brokerage agency, to bind coverage at
market terms for property casualty insurance and health insurance.
First Guaranty owns a 50% interest in Centurion and accounts for this
investment under the equity method.

Note 15. Employee Benefit Plans

First Guaranty has an employee savings plan to which employees, who
meet certain service requirements, may defer 1% up to the IRS legal
limit of their base salaries, 6% of which may be matched up to 100%,
at its sole discretion. Contributions to the savings plan were $440,000
and $396,000 in 2022 and 2021, respectively. First Guaranty has an
Employee Stock Ownership Plan ("ESOP") which was frozen in 2010.
No contributions were made to the ESOP for the years 2022 or 2021.
As of December 31, 2022, the ESOP held 1,003 shares. First Guaranty
is in the process of terminating the plan.

ATM Fees

Marketing and public relations

Taxes - sales, capital and franchise

Operating supplies

Software expense and amortization

Travel and lodging

Telephone

Amortization of core deposits

Donations

Net costs from other real estate

and repossessions

Regulatory assessment

Other

1,750

1,747

1,949

728

4,191

1,236

406

696

638

393

1,997

3,888

1,760

1,711

1,755

853

3,071

826

398

764

564

801

1,945

3,391

Total other noninterest expense

$ 25,374

$ 23,008

First Guaranty does not capitalize advertising costs. They are expensed
as incurred and are included in other noninterest expense on the
Consolidated Statements of Income. Advertising expense was $1.0
million for 2022 and 2021.

Note 17. Income Taxes
The following is a summary of the provision for income taxes included
in the Consolidated Statements of Income:

December 31,

2022

2021

(in thousands)

$ 7,761

(255)

$ 7,506

$ 7,970

(812)

$ 7,158

Current

Deferred

Total

136

The difference between income taxes computed by applying the
statutory federal income tax rate and the provision for income taxes in
the financial statements is reconciled as follows:

carryforwards were acquired in 2017 in the Premier acquisition and
expire from 2027 to 2034, and will be utilized subject to annual
Internal Revenue Code Section 382 limitations.

December 31,

2022

2021

(in thousands, except for %)

21.0%

$ 7,642

$ 7,236

(108)

(28)

(81)

$ 7,506

$ 7,158

Statutory tax rate

Federal income taxes at

statutory rate

Tax exempt municipal income

Other

Total

Deferred taxes are recorded based upon differences between the
financial statement and tax basis of assets and liabilities, and available
tax credit carry forwards. Temporary differences between the financial
statement and tax values of assets and liabilities give rise to deferred
taxes. The significant components of deferred taxes classified in First
Guaranty's Consolidated Balance Sheets at December 31, 2022 and
2021 are as follows:

December 31,

2022

2021

(in thousands)

Deferred tax assets:

Allowance for loan and lease losses

$ 4,939

$ 4,817

Other real estate owned

219

Unrealized losses on available for sale

securities

Net operating loss

Other

Gross deferred tax assets

Deferred tax liabilities:

Depreciation and amortization

Core deposit intangibles

Unrealized gains on available for sale

securities

Discount on purchased loans

Other

711

1,006

648

7,309

331

1,098

781

7,246

(2,116)

(1,917)

(914)

(1,059)

(60)

(880)

(164)

(687)

ASC 740-10, Income Taxes, clarifies the accounting for uncertainty in
income taxes and prescribes a recognition threshold and measurement
attribute for the consolidated financial statements recognition and
measurement of a tax position taken or expected to be taken in a
tax return. First Guaranty does not believe it has any unrecognized
tax benefits included in its consolidated financial statements. First
Guaranty has not had any settlements in the current period with taxing
authorities, nor has it recognized tax benefits as a result of a lapse of the
applicable statute of limitations. First Guaranty recognizes interest and
penalties accrued related to unrecognized tax benefits, if applicable,
in noninterest expense. During the years ended December 31, 2022
and 2021, First Guaranty did not recognize any interest or penalties in
its consolidated financial statements, nor has it recorded an accrued
liability for interest or penalty payments.

Note 18. Commitments and Contingencies

Off-balance sheet commitments.

First Guaranty is a party to financial instruments with off-balance sheet
risk in the normal course of business to meet the financing needs of
its customers and to reduce its own exposure to fluctuations in interest
rates. These financial instruments include commitments to extend
credit and standby and commercial letters of credit. Those instruments
involve, to varying degrees, elements of credit and interest rate risk in
excess of the amount recognized in the consolidated balance sheets.
The contract or notional amounts of those instruments reflect the
extent of the involvement in particular classes of financial instruments.

The exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for commitments to extend
credit and standby and commercial letters of credit is represented
by the contractual notional amount of those instruments. The same
credit policies are used in making commitments and conditional
obligations as it does for balance sheet instruments. Unless otherwise
noted, collateral or other security is not required to support financial
instruments with credit risk.

Set forth below is a summary of the notional amounts of the financial
instruments with off-balance sheet risk at December 31, 2022 and
December 31, 2021.

December 31,

2022

2021

(in thousands)

Contract Amount

Commitments to Extend Credit

$ 246,968

$ 198,444

Unfunded Commitments under lines of

Gross deferred tax liabilities

(3,970)

(3,827)

credit

$ 253,906

$ 250,231

Commercial and Standby letters of credit

$ 14,222

$ 13,787

Net deferred tax assets (liabilities)

$ 3,339

$ 3,419

First Guaranty determined that the net deferred tax asset at December
31, 2022 and 2021 was more likely than not to be realized based
on an assessment of all available positive and negative evidence, and
therefore no valuation allowance was recorded.

Net operating loss carryforwards for income tax purposes were
$4.8 million as of December 31, 2022 and $5.2 million in 2021. The

Commitments to extend credit are agreements to lend to a customer as
long as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination
clauses and may require payment of a fee. Since commitments may
expire without being drawn upon, the total commitment amounts do
not necessarily represent future cash requirements. Each customer's
creditworthiness is evaluated on a case-by-case basis. The amount of
collateral obtained, if deemed necessary upon extension of credit, is
based on Management's credit evaluation of the counterpart. Collateral
requirements vary but may include accounts receivable, inventory,

First Guaranty Bancshares Annual Report 2022 137

property, plant and equipment, residential real estate and commercial
properties.

Standby and commercial letters of credit are conditional commitments
to guarantee the performance of a customer to a third party. These
guarantees are primarily issued to support public and private borrowing
arrangements, including commercial paper, bond financing and similar
transactions. The majority of these guarantees are short-term, one year
or less; however, some guarantees extend for up to three years. The
credit risk involved in issuing letters of credit is essentially the same
as that involved in extending loan facilities. Collateral requirements
are the same as on-balance sheet instruments and commitments to
extend credit.

There were no losses incurred on off-balance sheet commitments in
2022 or 2021.

Note 19. Fair Value Measurements
The fair value of a financial instrument is the current amount that would
be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. A fair value measurement
assumes that the transaction to sell the asset or transfer the liability
occurs in the principal market for the asset or liability or, in the absence
of a principal market, the most advantageous market for the asset or
liability. Valuation techniques use certain inputs to arrive at fair value.
Inputs to valuation techniques are the assumptions that market
participants would use in pricing the asset or liability. They may be
observable or unobservable. First Guaranty uses a fair value hierarchy
for valuation inputs that gives the highest priority to quoted prices in
active markets for identical assets or liabilities and the lowest priority to
unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs – Unadjusted quoted market prices in active markets
for identical assets or liabilities that the reporting entity has the
ability toaccess at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level
1 that are observable for the asset or liability, either directly or
indirectly. These might include quoted prices for similar assets or
liabilities in active markets, quoted prices for identical or similar
assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the asset or liability (such
as interest rates, volatilities, prepayment speeds or credit risks) or
inputs that are derived principally from or corroborated by market
data by correlation or other means.

Level 3 Inputs – Unobservable inputs for determining the fair values
of assets or liabilities that reflect an entity's own assumptions about
the assumptions that market participants would use in pricing the
assets or liabilities.

A description of the valuation methodologies used for instruments
measured at fair value follows, as well as the classification of such
instruments within the valuation hierarchy.

Securities available for sale.

Securities are classified within Level 1 where quoted market prices
are available in an active market. Inputs include securities that have
quoted prices in active markets for identical assets. If quoted market
prices are unavailable, fair value is estimated using quoted prices of
securities with similar characteristics, at which point the securities
would be classified within Level 2 of the hierarchy. Securities classified
Level 3 as of December 31, 2022 includes corporate debt and
municipal securities.

Impaired loans.

Loans are measured for impairment using the methods permitted by
ASC Topic 310. Fair value of impaired loans is measured by either the

138

fair value of the collateral if the loan is collateral dependent (Level 2 or
Level 3), or the present value of expected future cash flows, discounted
at the loan's effective interest rate (Level 3). Fair value of the collateral
is determined by appraisals or by independent valuation.

Other real estate owned.

Properties are recorded at the balance of the loan or at estimated
fair value less estimated selling costs, whichever is less, at the
date acquired. Fair values of other real estate owned ("OREO") at
December 31, 2022 and 2021 are determined by sales agreement
or appraisal, and costs to sell are based on estimation per the terms
and conditions of the sales agreement or amounts commonly used
in real estate transactions. Inputs include appraisal values or recent
sales activity for similar assets in the property's market; thus OREO
measured at fair value would be classified within either Level 2 or Level
3 of the hierarchy.

Certain non-financial assets and non-financial liabilities are measured
at fair value on a non-recurring basis including assets and liabilities
related to reporting units measured at fair value in the testing of goodwill
impairment, as well as intangible assets and other non-financial long-
lived assets measured at fair value for impairment assessment.

The following table summarizes financial assets measured at fair value
on a recurring basis as of December 31, 2022 and 2021, segregated
by the level of the valuation inputs within the fair value hierarchy
utilized to measure fair value:

December 31,

2022

2021

(in thousands)

Available for Sale Securities Fair Value
Measurements Using:

Level 1: Quoted Prices in Active Markets

For Identical Assets

Level 2: Significant Other Observable

Inputs

$ 98,466

$ -

21,890

198,315

Level 3: Significant Unobservable Inputs

11,102

12,305

Securities available for sale measured
at fair value

$ 131,458

$ 210,620

First Guaranty's valuation methodologies may produce a fair value
calculation that may not be indicative of net realizable value or reflective
of future fair values. While Management believes the methodologies
used are appropriate and consistent with other market participants,
the use of different methodologies or assumptions to determine the
fair value of certain financial instruments could result in a different
estimate of fair value.

The change in Level 1 securities available for sale from December 31,
2021 to December 31, 2022 was due to a net increase in Treasury
bills of $98.5 million. The change in Level 2 securities available for
sale from December 31, 2021 to December 31, 2022 was due to
the transfer of $111.0 million in U.S. Government agency securities
and $54.8 million in corporate debt securities from the available for
sale to the held to maturity portfolio. There were no transfers between
Level 1 and 2 securities available for sale from December 31, 2021 to
December 31, 2022. There were no transfers between Level 2 and 3
from December 31, 2021 to December 31, 2022.

The following table reconciles assets measured at fair value on a
recurring basis using unobservable inputs (Level 3):

Level 3 Changes

December 31,

2022

2021

(in thousands)

Balance, beginning of year

$ 12,305

$ 26,189

Total gains or losses (realized/unrealized):

Included in earnings

Included in other comprehensive income

(676 )

(195 )

Purchases, sales, issuances and

settlements, net

Transfers in and/or out of Level 3

Balance as of end of year

(527 )

(8,845 )

(4,844 )

$ 11,102

$ 12,305

There were no gains or losses for the period included in earnings
attributable to the change in unrealized gains or losses relating to
assets still held as of December 31, 2022.

The following table measures financial assets and financial liabilities
measured at fair value on a non-recurring basis as of December 31,
2022 and December 31, 2021, segregated by the level of valuation
inputs within the fair value hierarchy utilized to measure fair value:

December 31,

2022

2021

(in thousands)

Fair Value Measurements Using: Impaired
Loans

Level 1: Quoted Prices in Active Markets

For Identical Assets

Level 2: Significant Other Observable

Inputs

Level 3: Significant Unobservable Inputs

2,251

8,494

Impaired loans measured at fair value

$ 2,251

$ 8,494

Fair Value Measurements Using: Other
Real Estate Owned

Level 1: Quoted Prices in Active Markets

For Identical Assets

Level 2: Significant Other Observable

Inputs

Level 3: Significant Unobservable Inputs

Other real estate owned measured at fair
value

113

817

1,255

113

$ 2,072

ASC 825-10 provides First Guaranty with an option to report selected
financial assets and liabilities at fair value. The fair value option
established by this statement permits First Guaranty to choose to
measure eligible items at fair value at specified election dates and
report unrealized gains and losses on items for which the fair value
option has been elected in earnings at each reporting date subsequent
to implementation.

First Guaranty has chosen not to elect the fair value option for any
items that are not already required to be measured at fair value in
accordance with accounting principles generally accepted in the
United States.

Note 20. Financial Instruments

Fair value estimates are generally subjective in nature and are
dependent upon a number of significant assumptions associated
with each instrument or group of similar instruments, including
estimates of discount rates, risks associated with specific financial
instruments, estimates of future cash flows and relevant available
market information. Fair value information is intended to represent
an estimate of an amount at which a financial instrument could be
exchanged in a current transaction between a willing buyer and seller
engaging in an exchange transaction. However, since there are no
established trading markets for a significant portion of First Guaranty's
financial instruments, First Guaranty may not be able to immediately
settle financial instruments; as such, the fair values are not necessarily
indicative of the amounts that could be realized through immediate
settlement. In addition, the majority of the financial instruments, such
as loans and deposits, are held to maturity and are realized or paid
according to the contractual agreement with the customer.

Quoted market prices are used to estimate fair values when available.
However, due to the nature of the financial instruments, in many
instances quoted market prices are not available. Accordingly,
estimated fair values have been estimated based on other valuation
techniques, such as discounting estimated future cash flows using
a rate commensurate with the risks involved or other acceptable
methods. Fair values are estimated without regard to any premium or
discount that may result from concentrations of ownership of financial
instruments, possible income tax ramifications or estimated transaction
costs. The fair value estimates are subjective in nature and involve
matters of significant judgment and, therefore, cannot be determined
with precision. Fair values are also estimated at a specific point in time
and are based on interest rates and other assumptions at that date. As
events change the assumptions underlying these estimates, the fair
values of financial instruments will change.

Disclosure of fair values is not required for certain items such as lease
financing, investments accounted for under the equity method of
accounting, obligations of pension and other postretirement benefits,
premises and equipment, other real estate, prepaid expenses, the value
of long-term relationships with depositors (core deposit intangibles)
and other customer relationships, other intangible assets and income
tax assets and liabilities. Fair value estimates are presented for existing
on- and off-balance sheet financial instruments without attempting to
estimate the value of anticipated future business and the value of assets
and liabilities that are not considered financial instruments. In addition,
the tax ramifications related to the realization of the unrealized gains
and losses have not been considered in the estimates. Accordingly, the
aggregate fair value amounts presented do not purport to represent
and should not be considered representative of the underlying market
or franchise value of First Guaranty.

Because the standard permits many alternative calculation techniques
and because numerous assumptions have been used to estimate the
fair values, reasonable comparison of the fair value information with
other financial institutions' fair value information cannot necessarily be
made. The methods and assumptions used to estimate the fair values
of financial instruments are as follows:

Cash and due from banks, interest-bearing deposits with banks, federal
funds sold and federal funds purchased.

These items are generally short-term and the carrying amounts reported
in the consolidated balance sheets are a reasonable estimation of the
fair values.

First Guaranty Bancshares Annual Report 2022 139

Investment Securities.

Accrued interest payable.

The carrying amount of accrued interest payable approximates its fair
value.

Borrowings.

The carrying amount of federal funds purchased and other short-
term borrowings approximate their fair values. The fair value of First
Guaranty's long-term borrowings is computed using net present
value formulas. The present value is the sum of the present value of
all projected cash flows on an item at a specified discount rate. The
discount rate is set as an appropriate rate index, plus or minus an
appropriate spread. Borrowings are classified within level 3 of the fair
value hierarchy.

Other Unrecognized Financial Instruments.

The fair value of commitments to extend credit is estimated using the
fees charged to enter into similar legally binding agreements, taking into
account the remaining terms of the agreements and customers' credit
ratings. For fixed-rate loan commitments, fair value also considers the
difference between current levels of interest rates and the committed
rates. The fair values of letters of credit are based on fees charged for
similar agreements or on estimated cost to terminate them or otherwise
settle the obligations with the counterparties at the reporting date. At
December 31, 2022 and 2021 the fair value of guarantees under
commercial and standby letters of credit was not material.

Fair values are principally based on quoted market prices. If quoted
market prices are not available, fair values are based on quoted market
prices of comparable instruments or the use of discounted cash flow
analyses.

Loans Held for Sale.

Fair values of mortgage loans held for sale are based on commitments
on hand from investors or prevailing market prices. These loans are
classified within level 3 of the fair value hierarchy.

Loans, net.

Market values are computed present values using net present value
formulas. The present value is the sum of the present value of all
projected cash flows on an item at a specified discount rate. The
discount rate is set as an appropriate rate index, plus or minus an
appropriate spread. These loans are classified within level 3 of the fair
value hierarchy.

Impaired loans.

Fair value of impaired loans is measured by either the fair value of
the collateral if the loan is collateral dependent (Level 2 or Level 3),
or the present value of expected future cash flows, discounted at the
loan's effective interest rate (Level 3). Fair value of the collateral is
determined by appraisals or by independent valuation.

Cash Surrender of BOLI.

The cash surrender value of BOLI approximates fair value.

Accrued interest receivable.

The carrying amount of accrued interest receivable approximates its
fair value.

Deposits.

The fair value of customer deposits, excluding certificates of deposit,
is the amount payable on demand. Market values of certificates of
deposit are actually computed present values using net present
value formulas. The present value is the sum of the present value of
all projected cash flows on an item at a specified discount rate. The
discount rate is set as an appropriate rate index, plus or minus an
appropriate spread. Deposits are classified within level 3 of the fair
value hierarchy.

140

The carrying amounts and estimated fair values of financial instruments at December 31, 2022 were as follows:

Fair Value Measurements at December 31, 2022 Using

Carrying
Amount

Level 1

Level 2

Level 3

Total

(in thousands)

Assets

Cash and due from banks

Federal funds sold

Securities, available for sale

Securities, held for maturity

Loans, net

Cash surrender value of BOLI

Accrued interest receivable

Liabilities

Deposits

Short-term advances from Federal Home Loan Bank

Short-term borrowings

Repurchase agreements

Accrued interest payable

Long-Term advances from Federal Loan Bank

Senior long-term debt

Junior subordinated debentures

82,796

423

82,796

423

131.458

320,068

2,495,559

5,712

13,002

$ 2,723,792

120,000

20,000

6,442

4,289

21,927

15,000

98,466

21,890

11,102

131,458

242,560

2,404,402

5,712

13,002

5,712

13,002

$ 2,717,471

120,000

20,000

6,509

4,289

21,938

15,000

6,509

4,289

21,938

15,000

First Guaranty Bancshares Annual Report 2022 141

The carrying amounts and estimated fair values of financial instruments at December 31, 2021 were as follows:

Fair Value Measurements at December 31, 2021 Using

Carrying
Amount

Level 1

Level 2

Level 3

Total

(in thousands)

Assets

Cash and due from banks

Federal funds sold

Securities, available for sale

Securuties, held for maturity

Loans, net

Cash surrender value of BOLI

Accrued interest receivable

Liabilities

Deposits

Short-term advances from Federal Home Loan Bank

Repurchase agreements

Accrued interest payable

Long-Term advances from Federal Loan Bank

Senior long-term debt

Junior subordinated debentures

6,439

4,480

3,208

25,170

14,818

261,749

$ 261,749

183

210,620

153,536

2,135,330

5,568

12,047

$ 2,596,492

183

198,315

150,585

12,305

261,749

183

210,620

150,585

2,152,590

5,568

12,047

5,568

12,047

$ 2,606,635

6,462

4,480

3,208

25,187

15,000

6,462

4,480

3,208

25,187

15,000

There is no material difference between the contract amount and the estimated fair value of off-balance sheet items that are primarily comprised
of short-term unfunded loan commitments that are generally at market prices.

Note 21. Concentrations of Credit and Other Risks

First Guaranty monitors loan portfolio concentrations by region,
collateral type, loan type, and industry on a monthly basis and has
established maximum thresholds as a percentage of its capital to
ensure that the desired mix and diversification of its loan portfolio is
achieved. First Guaranty is compliant with the established thresholds
as of December 31, 2022. Personal, commercial and residential
loans are granted to customers, most of who reside in northern and
southern areas of Louisiana. Although First Guaranty has a diversified
loan portfolio, significant portions of the loans are collateralized by
real estate located in Tangipahoa Parish and surrounding parishes in
Southeast Louisiana. Declines in the Louisiana economy could result
in lower real estate values which could, under certain circumstances,
result in losses to First Guaranty.

The distribution of commitments to extend credit approximates the
distribution of loans outstanding. Commercial and standby letters of
credit were granted primarily to commercial borrowers.

Approximately 40.9% of First Guaranty's deposits are derived from local
governmental agencies at December 31, 2022. These governmental
depositing authorities are generally long-term customers. A number of
the depositing authorities are under contractual obligation to maintain
their operating funds exclusively with First Guaranty. In most cases,
First Guaranty is required to pledge securities or letters of credit
issued by the Federal Home Loan Bank to the depositing authorities
to collateralize their deposits. Under certain circumstances, the
withdrawal of all of, or a significant portion of, the deposits of one or
more of the depositing authorities may result in a temporary reduction
in liquidity, depending primarily on the maturities and/or classifications
of the securities pledged against such deposits and the ability to

142

replace such deposits with either new deposits or other borrowings.
Public fund deposits totaled $1.1 billion at December 31, 2022.

Note 22. Litigation

First Guaranty is subject to various legal proceedings in the normal
course of its business. First Guaranty assesses its liabilities and
contingencies in connection with outstanding legal proceedings. Where
it is probable that First Guaranty will incur a loss and the amount of
the loss can be reasonably estimated, First Guaranty records a liability
in its consolidated financial statements. First Guaranty does not
record a loss if the loss is not probable or the amount of the loss is not
estimable. First Guaranty Bank is a defendant in a lawsuit alleging fault
for a loss of funds by a customer related to fraud by a third party with
a possible loss range of $0.0 million to $1.5 million. The Bank denies
the allegations and intends to vigorously defend against this lawsuit,
which is in very early stages. No trial date has been set, therefore and
no accrued liability has been recorded related to this lawsuit. First
Guaranty settled a case in the third quarter of 2021 for $1.1 million.
A receivable for $0.9 million has been recorded for recovery through
First Guaranty's insurance coverage. In the opinion of management,
neither First Guaranty nor First Guaranty Bank is currently involved
in such legal proceedings, either individually or in the aggregate, that
the resolution is expected to have a material adverse effect on First
Guaranty’s consolidated results of operations, financial condition, or
cash flows. However, one or more unfavorable outcomes in these
ordinary claims or litigation against First Guaranty or First Guaranty
Bank could have a material adverse effect for the period in which
they are resolved. In addition, regardless of their merits or ultimate
outcomes, such matters are costly, divert management’s attention, and
may materially and adversely affect the reputation of First Guaranty
and First Guaranty Bank, even if resolved favorably.

Note 23. Subsequent Events
On January 6, 2023, First Guaranty and First Guaranty Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Lone
Star Bank (“Lone Star”), pursuant to which First Guaranty will, subject to the terms and conditions set forth in the Agreement, acquire all of the
issued and outstanding shares of Lone Star common stock in exchange solely for shares of First Guaranty common stock through the merger of
Lone Star with and into First Guaranty Bank, with First Guaranty Bank as the surviving banking corporation (the “Transaction”).

Under the terms of the Agreement, First Guaranty will issue shares of First Guaranty common stock with an assumed value of $23.67 per share
on the closing date of the Transaction to the shareholders of Lone Star with an aggregate value equal to 1.5 times Lone Star’s tangible book value
as of the month end prior to the closing date, subject to certain adjustments described in the Agreement. Outstanding options to purchase Lone
Star common stock will be cashed out. The combined financial institutions will have approximately $3.2 billion in total assets, $2.5 billion in total
loans, and $2.8 billion in total deposits following the close of the Transaction. The Agreement was approved by the board of directors of each of
First Guaranty, FGB, and Lone Star.

The Agreement contains certain termination rights for both First Guaranty and Lone Star and further provides that a termination fee of $1.0 million
will be payable by Lone Star to First Guaranty upon termination of the Agreement under certain specified circumstances.

Note 24. Condensed Parent Company Information
The following condensed financial information reflects the accounts and transactions of First Guaranty Bancshares, Inc. for the dates indicated:

First Guaranty Bancshares, Inc.
Condensed Balance Sheets

Assets

Cash

Investment in bank subsidiary

Other assets

Total Assets

Liabilities and Shareholders' Equity

Short-term debt

Senior long-term debt

Junior subordinated debentures

Other liabilities

Total Liabilities

Shareholders' Equity

December 31,

2022

2021

(in thousands)

$ 3,324

$ 5,143

287,019

2,375

255,291

3,893

$ 292,718

$ 264,327

$ 20,000

$ -

21,927

25,170

15,000

800

57,727

234,991

14,818

450

40,438

223,889

Total Liabilities and Shareholders' Equity

$ 292,718

$ 264,327

First Guaranty Bancshares Annual Report 2022 143

First Guaranty Bancshares, Inc.
Condensed Statements of Income

Operating Income

Dividends received from bank subsidiary

Net gains on sale of equity securities

Other income

Total operating income

Operating Expenses

Interest expense

Salaries & Benefits

Other expenses

Total operating expenses

Income before income tax benefit and increase in equity in undistributed earnings of subsidiary

Income tax benefit

Income before increase in equity in undistributed earnings of subsidiary

Increase in equity in undistributed earnings of subsidiary

December 31,

2022

2021

(in thousands)

$ 21,863

$ 20,733

526

414

22,389

21,147

2,703

252

1,783

4,738

17,651

910

18,561

10,323

1,624

198

1,298

3,120

18,027

568

18,595

8,702

Net Income

$ 28,884

$ 27,297

144

First Guaranty Bancshares, Inc.
Condensed Statements of Cash Flows

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Increase in equity in undistributed earnings of subsidiary

Depreciation and amortization

Net change in other liabilities

Net change in other assets

Net cash provided by operating activities

Cash flows from investing activities:

Proceeds from sales of equity securities

Funds invested in equity securities

Funds invested in bank subsidiary

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Net increase in short-term borrowings

Repayment of long-term debt

Net proceeds from issuance of preferred stock

Dividends paid

Net cash provided by financing activities

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

December 31,

2022

2021

(in thousands)

$ 28,884

$ 27,297

(10,323)

225

350

1,482

20,618

(30,000 )

(30,000)

20,000

(3,250)

(9,187)

7,563

(1,819 )

5,143

(8,702)

102

(145)

1,235

19,787

1,500

(1,000)

(25,000 )

(24,500)

(17,221)

33,058

(7,777)

8,060

3,347

1,796

$ 3,324

$ 5,143

Item 9 - Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure

None.

Item 9A - Contracts and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, an evaluation was
carried out under the supervision and with the participation of First
Guaranty's management, including its Chief Executive Officer (Principal
Executive Officer) and its Chief Financial Officer (Principal Financial
Officer), of the effectiveness of its disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Securities Exchange Act of
1934). Based on that evaluation, the Chief Executive Officer and the
Chief Financial Officer concluded that these disclosure controls and
procedures were effective.

For further information, see "Management's annual report on internal
control over financial reporting" below. There was no change in First
Guaranty's internal control over financial reporting (as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934) that occurred
during the quarter ended December 31, 2022, that has materially
affected, or is reasonably likely to materially affect, First Guaranty's
internal control over financial reporting.

Management's Annual Report on Internal Control over Financial Reporting

The Management of First Guaranty Bancshares, Inc. has prepared the
consolidated financial statements and other information in our Annual
Report in accordance with accounting principles generally accepted
in the United States of America and is responsible for its accuracy.
The financial statements necessarily include amounts that are based
on Management's best estimates and judgments. In meeting its
responsibility, Management relies on internal accounting and related

First Guaranty Bancshares Annual Report 2022 145

regulatory restrictions, the general economic and regulatory climate
and ability to service any equity or debt obligations senior to common
stock. There are legal restrictions on the ability of First Guaranty Bank
to pay cash dividends to First Guaranty Bancshares, Inc. Under federal
and state law, we are required to maintain certain surplus and capital
levels and may not distribute dividends in cash or in kind, if after such
distribution we would fall below such levels. Specifically, an insured
depository institution is prohibited from making any capital distribution
to its shareholders, including by way of dividend, if after making
such distribution, the depository institution fails to meet the required
minimum level for any relevant capital measure including the risk-
based capital adequacy and leverage standards.

Additionally, under the Louisiana Business Corporation Act, First
Guaranty Bancshares, Inc. is prohibited from paying any cash dividends
to shareholders if, after the payment of such dividend First Guaranty
Bancshares would not be able to pay its debts as they became due in
the usual course of business or its total assets would be less than its
total liabilities or where net assets are less than the liquidation value
of shares that have a preferential right to participate in First Guaranty
Bancshares, Inc.'s assets in the event First Guaranty Bancshares, Inc.
were to be liquidated.

First Guaranty Bancshares, Inc. did not repurchase any of its shares of
common stock during the fourth quarter of 2022.

control systems. The internal control systems are designed to ensure
that transactions are properly authorized and recorded in our financial
records and to safeguard our assets from material loss or misuse. Such
assurance cannot be absolute because of inherent limitations in any
internal control system.

Management is responsible for establishing and maintaining the
adequate internal control over financial reporting, as such term is
defined in the Exchange Act Rules 13 – 15(f). Under the supervision
and with the participation of Management, including our principal
executive officer and principal financial officer, we conducted an
evaluation of the effectiveness of internal control over financial reporting
based on the framework in Internal Control – Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission. This section relates to Management's
evaluation of internal control over financial reporting including controls
over the preparation of the schedules equivalent to the basic financial
statements and compliance with laws and regulations. Our evaluation
included a review of the documentation of controls, evaluations of the
design of the internal control system and tests of the effectiveness of
internal controls.

Based on our evaluation under the framework in Internal Control –
Integrated Framework, Management concluded that internal control
over financial reporting was effective as of December 31, 2022.

First Guaranty's independent registered public accounting firm has
also issued an attestation report, which expresses an unqualified
opinion on the effectiveness of First Guaranty's internal control over
financial reporting as of December 31, 2022.

Item 9B - Other Information
None.

Item 9C - Disclosure Regarding Foreign Jurisdictions that
Prevent Inspections
Not applicable.

Item 5 - Market for Registrant's Common Equity, Related
Shareholder Matters and Issuer Purchases of Equity
Securities
Shares of our common stock are traded on the Nasdaq Global Market
under the symbol "FGBI". As of December 31, 2022, there were
approximately 1,500 holders of record of our common stock.

The depositary shares underlying our Series A Preferred Stock are
traded on the Nasdaq Global Market under the symbol “FGBIP”.

Our common and preferred shareholders are entitled to receive
dividends when, and if, declared by the Board of Directors, out of funds
legally available for dividends. We have paid quarterly cash dividends on
our common stock for each of the last 118 quarters dating back to the
third quarter of 1993. The Board of Directors intends to continue to pay
regular quarterly cash dividends on both our common and preferred
stock. The ability to pay dividends in the future will depend on our
earnings and financial condition, liquidity and capital requirements,

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FIRST
GUARANTY
BANCSHARES, INC.

ANNUAL REPORT 2022