First Guaranty Bancshares, Inc. Annual Report 2023

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FY2023 Annual Report · First Guaranty Bancshares, Inc.

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FORWARD

FIRST
GUARANTY
BANCSHARES, INC.

ANNUAL REPORT 2023

FGB is

a resilient community bank.

FGB is

a balance-sheet focused,
strong fortress bank.

FGB is

moving

FORWARD

FIRST GUARANTY BANCSHARES, INC. Financial Snapshot

FGBI FINANCIAL
SNAPSHOT

On December 31, 2023, total assets were $3.55
billion, net income was $9.2 million and earnings
per common share were $0.62. Return on average
assets was 0.28% and return on average common
equity was 3.36%. First Guaranty Bancshares, Inc.
shares trade on the Nasdaq Global Market Exchange
and has paid quarterly dividends for 122 consecutive
quarters at December 31, 2023. 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 491 employees as of December 31, 2023.

First Guaranty has paid $105,190,000
in Cash Dividends to common
shareholders since 1993.

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 $55.90 since 1993.
Dividends Per One 1993 Common Share [2]

[1] Book value has been adjusted for cumulative stock splits and dividends 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)

2 First Guaranty Bancshares, Inc. Annual Report 2023

Table of Contents

Financial Snapshot ................................................................................................. Page 2

Forward! ................................................................................................................. Page 4

Our Mission and Our Values ..................................................................................... Page 6

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

First Guaranty Bank ATM/ITM Locations ................................................................. Page 17

Locations Map ........................................................................................................ Page 18

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

Performance Graphs ............................................................................................... Page 22

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

FGB Financial Foundations ...................................................................................... Page 50

FGB Gives Back ...................................................................................................... Page 51

Banks Headquartered in Louisiana .......................................................................... Page 74

Corporate Information ............................................................................................. Page 76

First Guaranty Bancshares, Inc. Financial Table of Contents ..................................... Page 77

Visit www.fgb.net for additional
information.

NASDAQ Stock Ticker Symbol:
FGBI and FGBIP

Forward!

In our 2023 annual report, First Guaranty Bancshares,
Inc. reviews our past year’s performance and results
and outlines our vision for moving FORWARD.

2023 was a challenging year, yet thanks to our strong
banking habits and desire for success, we are confidently
moving forward with vision. The bottom line is that First
Guaranty Bancshares, Inc. remains deeply committed
to our customers, investors, and to the fortress balance
sheet. Our Bank, leadership, and employees are
resilient, persistent, and prepared to persevere.

First Guaranty Bancshares, Inc. is the holding company
for First Guaranty Bank (FGB). FGB is a quality bank with
a conservative balance sheet, diversified loan portfolio,
and quality management.

A customer-focused bank starts with its leadership.
Additionally, our values and goals set us apart and
help guide our decisions. Though we do not have
spreadsheets on kindness and caring, these attributes
are reflected in our deposits and the loans we make in
the communities we serve, evidenced in part by earning
three consecutive years’ of Newsweek’s Best Small
Bank ranking.

Regarding profitability and efficiency, First Guaranty
Bancshares, Inc. has limited expenses, which is vital
to cost control, while significantly increasing deposits
and earnings growth. While banking has changed
with digitization, automation, and an emphasis on
online solutions, bank profitability fundamentals have
remained constant.

COMMITTED TO CUSTOMER
SATISFACTION

DEDICATED LEADERSHIP

4 First Guaranty Bancshares, Inc. Annual Report 2023

The people at First Guaranty Bancshares, Inc. and
those who invest in us and bank with us provide the
power for us to move forward. We have the finest team
of people who work hard each day and enjoy helping
our customers. Providing the best banking experience
possible to our customers has long been a driving
motivation. We are proud and honored to include our
customers as part of our corporate family.

AS REPORTED IN OUR THIRD QUARTER STATEMENT:

We are making progress. In a time in which all
banks have been battling the squeeze between loan
interest rates and the rates to be paid for deposits,
it appears that, in the second half of the third
quarter, we passed the bottom and began to climb
upward. Our loan portfolio before unearned income
continued to grow, as does total interest income.

We are making progress. This is not to say that
the struggles are over. Our entire staff has reacted
positively and strongly to reducing expenses.
Everyone involved in Loan Production, Credit, and
Loan Processing has been and continues working
very diligently to obtain new loans and get them
expedited, approved, and earning.

We appreciate the patience and understanding of
our shareholders while making progress. We will
prevail and continue to strengthen First Guaranty
Bank into a profitable investment with our fortress
balance sheet.

TECHNOLOGY

DIVERSITY

WEST VIRGINIA

KENTUCKY

TEXAS

LOUISIANA

In these economic times with challenging interest
rates, inflation, and global concerns, First Guaranty
Bancshares, Inc. is committed to our vision of
for
moving FORWARD and
shareholders, customers, and employees alike. First
Guaranty Bancshares, Inc. is resilient. First Guaranty
Bancshares, Inc. is strong. First Guaranty Bancshares,
Inc. is determined and will persevere.

it will prove

fruitful

Thank you for being a part of First Guaranty and
moving FORWARD with us.

VALUES (see next page)

GREAT COMMUNITY,
GREAT PEOPLE….
MOVING FORWARD!

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

Our Values

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 a socially responsible corporate citizen 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.

6 First Guaranty Bancshares, Inc. Annual Report 2023

Letter from the Chairman

FIRST GUARANTY BANCSHARES, INC.

Dear Shareholders,

Unlike 2022 when I wrote the shareholders’ letter, 2023 presented some dire challenges. After
all, in 2022 we made $26.6 million and in 2023 this number fell to $6.9 million.

That is a tremendous difference, and I would allocate the blame to the explosive rate hike
imposed by the Fed. Rates were raised at every Fed meeting, and we were in a mode where we
were making good loans at a hectic pace. This is our model – this is what we are about. I don’t
need to tell you that the cost of funds increased so rapidly that it put excessive pressure on our
margin – this is the reason for the $6.9 million mentioned aforehand.

Marshall T. Reynolds

Chairman of the Board

Our mission is to grow the Bank. With loans soaring and earnings squeezed, there was a
shortage of capital. With our stock falling to $13, the Board of Directors stepped in and bought
$10 million in new stock at $14. The exact same thing happened a couple months later, and
the stock fell to $9 and the Board bought another $10 million at $10.

With capital in good shape and new loans earning at 8.50% plus with older “cheaper” loans
maturing, this sets the stage for a much better 2024.

Our Board of Directors is totally committed to our mission, and they showed it with their $20
million stock purchase, which included every one of them. Our management team is totally
committed. Our employees are totally committed.

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

Letter from the Chief Executive Officer & President

Dear Shareholders,

Forward. That is what we do. No matter what the obstacles, we move forward.
We will continue to move forward and make First Guaranty Bancshares, Inc. a
growing, thriving, productive entity and investment for our shareholders.

In 2009, we were a $600-$700 million asset bank. We had 17 locations.
Since then, we have doubled the number of our locations; but we have
increased our assets by five times, from $600-$700 million to $3.6 billion.
Doubling our locations, but quintupling our assets means that we have been
doing a great job of bringing new business into First Guaranty.

Along the way, we have overcome obstacles and problems not of our causing.
We had nothing to do with Covid. We had nothing to do with Silicon Valley Bank
crash. We had nothing to do with the Fed dramatically raising rates faster than
ever in history.

Alton B. Lewis

Chief Executive Officer &
President

We just keep moving forward. We have a great Board of Directors and a great group of people here
at First Guaranty Bank. We are completing our 90th year. We are going to continue to move forward
just as we did in 2023 in spite of great obstacles. We understood the issues that we faced. We
properly analyzed the situation. We came up with a plan and executed the plan to not only survive
the adversity of the Fed rate increases, but also to continue to grow. At the same time we continued
to take care of our communities and our staff.

That is what we are. We cannot be that without the support of our shareholders. Thank you for your
attention and support.

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

8 First Guaranty Bancshares, Inc. Annual Report 2023

Report from the Chief Financial Officer

Forward

First Guaranty Bancshares, Inc. has positioned itself to move forward in 2024. First
Guaranty made several changes to its assets and liabilities in 2023 in order to improve
performance and profitability going forward.

First Guaranty grew the loan portfolio and repriced maturing loans to higher market rates.
Loan balances increased $229.6 million or 9.1% to $2.75 billion at December 31, 2023
from $2.52 billion at December 31, 2022. Loan interest income and fees increased by
$41.1 million or 32.6% during 2023. The average yield on loans for the fourth quarter
of 2023 was 6.66% compared to 5.77% for the fourth quarter of 2022. This was an
increase of 89 basis points.

Eric J. Dosch

Chief Financial Officer

First Guaranty increased liquidity during 2023. Cash and equivalents increased from
$83.2 million at December 31, 2022 to $286.5 million at December 31, 2023.

Investment securities totaled $404.1 million at December 31, 2023 a decline of $47.4 million from $451.5
million at December 31, 2022 as First Guaranty reinvested low yielding maturing Treasury bills into higher
yielding loans during 2023.

First Guaranty converted short term FHLB higher cost borrowings to longer term lower cost fixed rate borrowings.
These FHLB borrowings totaled $155.0 million at December 31, 2023. $20.0 million matures in in the first
quarter of 2025 and $135.0 million matures in the second quarter of 2027. The rates on these borrowings
ranged from 4.4% to 4.5%. This change helped to reduce risk to rising interest rates.

First Guaranty grew its deposit balances in 2023. First Guaranty increased total deposits by $285.3 million
during 2023. The majority of deposit growth occurred with time deposits. Our strategy balanced both local
deposit growth and growth with select issuance of brokered time deposits. The majority of time deposits were
kept at a maturity of three years or less in order to provide pricing flexibility should interest rates decline. First
Guaranty’s newest Mideast market of Kentucky and West Virginia grew deposits $44.2 million from $7.4 million
at December 31, 2022 to $51.6 million at December 31, 2023. This deposit growth was impressive during
a time of significant market competition for deposits. First Guaranty has a full-service branch in Vanceburg,
Kentucky that opened January 17, 2023. We anticipate our full-service branch in Bridgeport, West Virginia to be
opened by the second quarter of 2024.

First Guaranty refinanced existing senior debt on attractive terms which included a new revolving line of credit
for $20.0 million. First Guaranty used $10.0 million of this new line at December 31, 2023 to support growth in
the bank’s loan portfolio.

First Guaranty completed two private placements of common stock during 2023. A total of $20.0 million of new
capital was raised in order to provide for existing and future growth.

First Guaranty continues to build strength to move forward. We increased loans and capital in 2023. Key
changes to the balance sheet were made in order to better manage sensitivity to interest rates. 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 newest 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 help move First Guaranty Bancshares, Inc.
forward into 2024 and beyond.

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

Report from the Chief Lending Officer

2023 was a defining year for the First Guaranty Bank team!

In a year that brought us interest rate hikes, liquidity challenges, and major
bank failures; the First Guaranty Bank team pulled together and remained
resilient to provide the same great service to our customers and advancement
for our company. We continued to provide strong loan growth in 2023 with over
9% net loan growth, which contributed to over a 36% increase in loan interest
income.

Randy S. Vicknair

Senior Vice President/
Chief Lending Officer

First Guaranty Bank’s total loan portfolio grew to $2.749 billion as of
December 31, 2023, which was a $230 million increase over the previous
year end of $2.519 billion. Despite increasing rates and other headwinds, the
First Guaranty Bank team’s strong loan growth success is due to the continued
execution of our strategy. It takes everyone to achieve this success with
contributions from consumer loans, commercial loans, mortgage, and national
lending. The First Guaranty Bank team closed over $700 million in new money loans with over $500
million in new loan fundings, which was partially offset by the standard amortization of the portfolio
plus early loan payoffs exceeding $76 million. In addition to strong loan growth, we successfully
added new loans to the portfolio at an average yield of 7.87% while payoffs had an average yield of
6.42%.This is a 1.45% improvement in the yield related to those loans which provide $1.1 million in
additional interest income each year. The 4th quarter of 2023 resulted in an average yield on new
loans of 8.15% with an average yield of payoffs of 7.22% for a 0.93% yield improvement. Overall loan
interest income, excluding fees, was $156.7 million as of December 31, 2023, compared to $118.2
million as of December 31, 2022, an increase of $38.5 million or 32.6%.This significant increase
was achieved by a combination of yield improvement and loan growth.

First Guaranty Bank continued our successful expansion into Kentucky and West Virginia by adding
new loans and deposits to the portfolio throughout the year. The combination of quality team
members, portfolio diversification, and new loan opportunities throughout our footprint makes us
successful each year. First Guaranty Bank’s markets remained resilient in 2023, with significant
contributions from all regions and loan products. As with prior years, the team continues to diligently
pursue opportunities which resulted in even contributions to loan growth throughout the year. This
success doesn’t just apply to loans, as the lending team generated over $30 million in new deposits
for 2023, with a contribution of over $180 million in new deposits over the last 4 years.

We are grateful that our region was spared another year free from devastating Hurricanes and
ice storms, though the summer heat was brutal. Another heat streak last year is the continuation
of being named 2023's Best Small Bank in the Country by Newsweek/LendingTree (that’s 3 in a
row!).Since the award is being discontinued, this winning streak and our great team will forever be
memorialized in history as the only small bank to ever win this award. I’m honored and humbled to
be part of such an outstanding team and accomplishment.

It’s the people that make First Guaranty the bank that we are today. Our customers, team members,
Board of Directors, and vendors all contribute to our success. It’s truly an exceptional team which will
advance us forward to exceptional results in 2024!

Thank you!

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

10 First Guaranty Bancshares, Inc. Annual Report 2023

Report from the Texas Area President

Since taking the helm of the Texas market in 2018, the goal has been to
instill “further up and further in” as First Guaranty Bank’s directive.

Treat others as you would like to be treated: care for your employees and
their families, their friends, and their neighbors. Think about the bottom line
that drives returns that shareholders are counting on for their future hopes
and dreams, their kids’ college educations, and their own retirement plans.
Listen to our customers, learn to ask good questions that help explore the
challenges and the opportunities, and keep your products and services
sharp to provide the solutions that make the difference.

JORDAN M. LEWIS

Texas Area President

Prior to 2023, the Texas region thrived in the midst of industry-wide growth;
in 2023 we learned to keep moving forward while experiencing industry-wide
contraction. Despite the historic compression in the rising-rate environment,

the Texas region saw its net interest income rise from $10.6 million in 2022 to $14.0 million in
2023. To highlight how remarkable these results are, consider that the Texas region realized net
interest income of only $6.0 million in 2020.

2023 was also the year that First Guaranty Bank invested considerably into Texas infrastructure.
The bank invested into key assets that are expected to result in new markets and strong returns.
We recruited talented professionals to oversee our Texas mortgage, treasuries, and lending
initiatives. We added new accounts, ATMs, and other products to increase the value we provide
our existing customers. And we promoted from within to maintain integrity, quality, and culture
throughout our information security programs.

First Guaranty Bank saw unparalleled success in Texas during 2023 among challenging national
tidewaters. Yet, in many respects it was a year of building, honing fundamentals, and preparing to
perform. As we crest 2024, the only path possible is forward: expanding our markets, seeing our
investments begin to yield returns, and demonstrating to our communities that we are on mission.

Ever onward,

Jordan M. Lewis
Texas Area President
FIRST GUARANTY BANK

Report from the Mideast Area President

In the Mid-East region, we have had a year of success in continuing
to build our franchise. On March 31, of last year we had our grand
opening for our branch location in Vanceburg, Kentucky. Since that time,
the team has worked to grow that location approaching $40 million
in deposits with over 1,000 new accounts opened. Our West Virginia
team is currently still operating as a loan production office and deposit
production office. The new branch in Bridgeport/Clarksburg, West Virginia
is expected to be operating by April. Even without a physical branch
presence, the team has grown deposits to $20 million. Total deposits for
the Mid-East region are $60 million and with the new branch opening we
are heading forward to a year end deposit total of $100 million.

The region increased loans by over $30 million during the year, with the
bulk of the growth from our West Virginia team. Our West Virginia team is
approaching over $200 million in outstanding loans. Total loans for the

Michael R. Mineer

Kentucky/West Virginia
Area President

region are $280 million in outstanding volume. The team has an additional $40 million in loans
approved and approaching closing. We are heading forward to a year end loan total of $340
million.

During the past 27 months our team has assimilated into the First Guaranty Bank culture. This
culture has helped us in achieving the level of growth mentioned. As we move forward, we have
removed our rear-view mirror, we are looking straight into the windshield and we are focused on
the goals ahead as outlined in this writing.

Sincerely,

Michael R. Mineer
Kentucky/West Virginia Area President

FIRST GUARANTY BANK

12 First Guaranty Bancshares, Inc. Annual Report 2023

Report from the Senior Vice President

Despite tough economic conditions throughout 2023, the Southwest
Louisiana Region managed to increase deposits and loans while also
keeping delinquency at an acceptable level.

Not only did the Southwest Louisiana team face economic pressures, but
also we dealt with major weather conditions such as drought affecting our
agricultural industry. Due to these conditions sugar cane yields specifically
were very low including some areas reporting complete losses. Fortunately,
many of our farming customers were fully insured with crop insurance to
combat these losses. Most rice farmers in our portfolio performed well
as they were able to maintain a flood on the crop because of levees.
Unfortunately, the weather conditions did kill much of the crawfish supply
causing low to no yields, this seems to be improving which will help future
crops. Lastly, we fully expect to receive government disaster payments on
all affected crops. This should supplement our farmers and allow them to
proceed into 2024.

Glenn A. Duhon, Sr.

Senior Vice President/
Regional Manager

Our Jennings Branch ended 2023 with a total of $39.8 million in deposits, representing a
decrease of $10.3 million from 2022 and $6 million in loan production which is a decrease of
$700,000.00.

The Lake Charles Loan Production Office ended 2023 with $69.9 million in loans representing a
reduction of $9 million from 2022. This office does not maintain deposits.

Our Abbeville Branch completed the year of 2023 with $15.6 million increase to our deposit
portfolio totaling $189.9 million in deposits to close the year. The lending team also increased
loan volume by $15.1 million bringing the total portfolio to $99.4 million.

The Southwest Region as a whole ended the 2023 year with $229.7 million in deposits
representing an increase of $5.3 million over 2022 and $175.3 million in loans resulting in an
increase of $5.4 million from 2022.

We are so thankful for another successful year which would not have been possible without our
loyal customers, dedicated staff, and the support of our management and Board of Directors.

Sincerely,

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

FIRST GUARANTY BANK

FIRST GUARANTY BANK Board of Directors

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

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

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

DR. PHILLIP E. FINCHER
North Louisiana Advisory Board.
Retired Economics/Finance Professor of
Louisiana Tech University.
Vice President of the Board of Claiborne
Electric Cooperative.
Vice President of the 1803 Electrical
Cooperative Board.
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, Compliance
Review Committee, and Marketing
Committee of First Guaranty Bank.
President, Hood Automotive Group.

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

ALTON B. 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, Founder of Paragon
HealthCare in Dallas, Founder and Director of
RxPreferred Benefits in Nashville, and Director
of 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 and The Harrah and
Reynolds Corporation.

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., as well
as Chairman of various other institutions.

NANCY C. RIBAS
Owner of Ribas Holdings LLC.

JACK ROSSI
First Guaranty Bancshares, Inc. Board Member.
Chairman of First Guaranty Bancshares, Inc. Audit
Committee.
Certified Public Accountant in West Virginia and
Virginia.
Executive Vice President of Business
Development at Summit Community Bank in West
Virginia.
Past President of the West Virginia Society of
CPAs and served as a member of the West
Virginia Board of Accountancy.

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, Inaugural committee member of the
Anderson Ray Leto Memorial Fund.

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

14 First Guaranty Bancshares, Inc. Annual Report 2023

FIRST GUARANTY BANCSHARES, INC. Board of Directors

(L-R): Edgard R. Smith, III, Jack Rossi, William K. Hood, Vanessa R. Drew, Marshall T. Reynolds, Alton B. Lewis

FIRST GUARANTY BANK Advisory Board

(L-R): Thomas “Tommy” D. Crump, Britt L. Synco, Dr. Philip E. Fincher, Gil Dowies, III, John D. Gladney, M.D.

FIRST GUARANTY BANK Officers

Chairman

MARSHALL T. REYNOLDS*

Executive Officers

ALTON B. LEWIS, JR.*
President and CEO | Hammond

ERIC J. DOSCH*
Chief Financial Officer | Hammond

Senior Vice Presidents

KATHERINE K. CAMPBELL
Controller

MARTY B. COLE

MARK J. DUCOING
Chief Deposit Officer

GLENN A. DUHON, SR.

RONNIE R. FOSHEE
Director of Lending Development

KEVIN J. FOSTER

SAM J. GALLO

MATTHEW P. HUDNALL

SHIRLEY P. JONES
Deposit Operations Manager

JOELLEN K. JUHASZ
BSA Officer

MIKKI M. KELLEY
Chief Human Resources Officer

WENDY B. KINCHEN
Chief Innovation and Implementation Officer

JORDAN M. LEWIS
Texas Area President

MICHAEL R. MINEER
Mideast Area President

JANE A. MUEHLBAUER

DANIEL W. PACK

MICHAEL E. PARHAM

CHRISTOPHER W. PARR

COBY L. PENNINGTON
Chief Information Officer

GREGORY P. PRUDHOMME

CRAIG E. SCELFO

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

Vice Presidents

MANDI B. AGUILLARD

JOEY E. AMADEO

DARRYL P. BOUDREAUX

CHERYL Q. BRUMFIELD

CHRISTINA M. CARTER

AMMON L. COOPER

LOUIS J. CUSIMANO

MIRANDA M. DERVELOY

LANDA G. DOMANGUE

VIKKI W. DUPAQUIER

DENISE D. FLETCHER

CRAIG E. HRIBLAN

A. SHANE HUGHES

DIANA L. KINDER

MICHAEL D. KNIGHTEN

D. JESPER KVIST

MARY T. MAYO

TERRIE E. MCCARTNEY

COLTON C. MCDANIEL

LISA A. MUSGRAVE

JASON D. NORMAND

STEVEN F. OSMAN

SCOTT B. SCHILLING

AMBER L. SMITH

LISA K. STOKER

JOHN A. SYNCO

LAURYN H. WAITS

KENNY E. WILSON
Chief Information Security Officer

Assistant Vice Presidents

JOSIAH C. BLOOD

SUSAN M. DESOTO

MICHELLE A. DIONNE

VANESSA R. DREW*

CODY J. GIL

LUDRICK P. HILDAGO

LESLIE A. HINZMAN

DONNA S. HODGES

MARTIN R. HOLIFIELD

SARAH E. JENKINS

KEITH T. KLEIN

LAURA L. LACOSTE

DANIEL L. LOE

CATHERINE E. MATHES

NICOLE M. MOUTON

PAMELA R. NORMAND

RAHUL R. PATEL

AREEB RASHID

NIEKITSHA S. RIDLEY

KRISTY L. ROBERTS

CHANYON O. ROBINSON

DONNA D. SCAMARDO

STACY J. THOMPSON

Officers

CALVIN P. DUCOTE

JEANNETTE N. ERNST

MELANIE T. GOTTSCHALCK

KRISTIN M. WILLIAMS

16 First Guaranty Bancshares, Inc. Annual Report 2023

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

FIRST GUARANTY BANK ATM/ITM Locations

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

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

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

301 Avenue F

PONCHATOULA, LA
500 West Pine Street

SLU STUDENT UNION,
HAMMOND, LA
303 Union Avenue

VANCEBURG, KY
15 Second Street

DENTON, TX
2209 West University Drive

127

9 29

FIRST GUARANTY BANK Banking Locations

WEST VIRGINIA

KENTUCKY

TEXAS

18 First Guaranty Bancshares, Inc. Annual Report 2023

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
(Consolidation in 2024)

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

1049205512FIRST 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

2014

$11.2 million

$4,027,000

$64,905,000

2015

$14.5 million

$4,247,000

$73,445,000

2016

$14.1 million

$4,870,000

$82,668,000

■ Retained earnings grew by $6.8 million
■ Total loans reached $790 million

■ 10% common stock dividend
■ Listed in NASDAQ
■ Redeemed SBLF Preferred Stock

■ Loans totaled $949 million
■ 94th consecutive quarterly dividend

20 First Guaranty Bancshares, Inc. Annual Report 2023

FIRST GUARANTY BANK Earnings & Dividends

Earnings

Total Common
Dividends Paid

Cumulative Retained
Earnings (Deficit)*

Notable Events

2017

$11.8 million

$5,210,000

$89,209,000

■ Grand openings of Bossier City, LA Banking Center
■ Acquisition of Synergy Bank and addition of five new Texas locations
■ 50% ownership in Centurion Insurance Services allowing First

Guaranty to sell insurance products

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

2021

$25.9 million

$6,392,000

$139,849,000

■ 106th consecutive quarterly dividend
■ Acquisition of The Union Bank and addition of seven new Louisiana

locations

■ Completed and opened our new Amite branch office
■ Celebrated openings of Texas branches
■ Installed four ITMs

■ 110th consecutive quarterly dividend
■ 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

■ 114th consecutive quarterly dividend
■ Year-end 10% common stock dividend
■ For the SECOND CONSECUTIVE YEAR named the #1 BEST SMALL

BANK IN LOUISIANA AND THE U.S.!

■ Expansion into Mideast Markets

■ For the THIRD CONSECUTIVE YEAR named #1 BEST SMALL BANK IN

2022

$26.6 million

$6,859,000

$159,546,000

LOUISIANA AND THE U.S.!

2023 $6.9 million $7,369,000

$159,067,000

■ Grand openings of locations in mideast Market

■ 122nd consecutive quarterly dividend
■ Vanceburg Branch opened
■ USDA Lender of the Year
■ Total Assets: $3.5 billion
■ Total Loans: $2.7 billion
■ Total Deposits: $3.0 billion
■ Texas loans increased to $376.3 million
■ Texas Loan Portfolio Growth of 12.74%
■ Texas had a record of $155+ million in new

money loans

■ Texas has a regional profitability increase of 50.95%
■ Mideast loans increased to $278.0 million
■ Mideast deposits increased to $51.5 million

$285.7 million $105,189,000

* 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 BANK Performance Graphs

Loans, Net of Unearned Income
(in millions)

1993

1998

2003

2008

2013

2018

2023

$ 105

$ 177

$ 381

$ 606

$ 703

$1,225

$2,749

Investments [4]
(in millions)

Investments
(in millions)

1993

1998

2003

2008

2013

2018

2023

$ 30

$ 73

$ 59

$139

$635

$405

$404

[4] Available for sale securities at fair value, held to maturity at amortized cost. Net of allowance for credit losses.

22 First Guaranty Bancshares, Inc. Annual Report 2023

FIRST GUARANTY BANK Performance Graphs

Net Income
(in millions)

Total Deposits
(in millions)

Net Income
(in millions)

1993

1998

2003

2008

2013

2018

2023

$2.1

$3.7

$7.0

$5.5

$9.1

$14.2

$9.2

Total Deposits
(in millions)

1993

1998

2003

2008

2013

2018

2023

$ 149

$ 257

$ 376

$ 780

$1,303

$1,630

$3,009

FIRST GUARANTY BANK Performance Graphs

Total Assets
(in millions)

1993

$ 159

1998

2003

2008

$ 245

$ 485

$ 871

2013

$1,436

2018

2023

$1,817

$3,553

First Guaranty Assets
have increased
2,135% since 1993.

Tangible Common Equity
(in thousands)

1993

$ 9,005

1998

2003

2008

$ 17,376

$ 43,557

$ 61,429

2013

$ 80,033

2018

2023

$141,108

$199,915

Tangible Common Equity
has increased
$190.9 million since 1993.

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

Tangible Common Equity [3]
(in thousands)

24 First Guaranty Bancshares, Inc. Annual Report 2023

FIRST GUARANTY BANK Departments & Locations

EXECUTIVE
Front (L-R): Desiree Simmons, Mikki Kelley, Wendy Kinchen, Christina Carter, JoEllen Juhasz
Back (L-R): Michael Parham, Mark Ducoing, Kenny Wilson, Randy Vicknair, Alton Lewis, Eric Dosch, Richard Stark, Coby Pennington, Evan Singer

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

EXECUTIVE ASSISTANTS
Front (L-R): Melanie Gottschalck, Vanessa Drew
Back (L-R): Edrea Jackson, Kristin Williams, Kristy Petit, Carl Duplessis

APPRAISAL REVIEW
(L-R): Laura Huszar, Starr Bernier, Jake Schembre, Miranda Sanchez

BSA MAIN
Front (L-R): Ashley Johnson,
Kendra Fairburn,
Sharmaine Robertson
Back (L-R): Christe Feimster,
Ludrick Hidalgo,
Matthew Murphy, JoEllen Juhasz
Not Pictured: Kayla Perault

BSA MARKSVILLE
(L-R): Cathy Butter, Lucinda Jacobs

COMPLIANCE
Front (L-R): Breanna Bankston, Isabel Oliva, Allison Duke
Back (L-R): Crystal Ward, Megan Braden, Destiny Bankston, Christina Carter

CONSTRUCTION & FACILITIES MAIN
(L-R): Darryl Boudreaux, Mike Parham, Luke Varisco
Not Pictured: Joseph Ernst

26 First Guaranty Bancshares, Inc. Annual Report 2023

CONSTRUCTION
& FACILITIES
MARKSVILLE
Armenio Magday

CREDIT MAIN
Front (L-R): Jane Wear,
Brianda Robinson, Shannon Lovell,
Lana Quinn
Back (L-R): Colton McDaniel,
Marvin Cervantes, Christian Baer,
Sydney Forbes, Taylor Lacara,
Shelly Garrett, Rene Puissegur,
Louis Cusimano
Not Pictured: Brittanie Wallace,
Patrick Meyers, Blair Crump

CREDIT TX
Front (L-R): Stacy Dutcher
Back (L-R): Ben Golan, Adam Smith, Keith Klein

CREDIT CARD
(L-R): Melissa Nevels, Jason Wilson, Debbie Dubuisson

CUSTOMER SUPPORT CENTER
Front (L-R): Breahna Palmasino,
Ineteanna Hill, Danyelle Green, Litzy Perea,
Ruby Simmons, Shanara Pope
Back (L-R): Dakota Rosamond, Antionette
Williams, James Sullivan, Matthew Sullivan,
Angie Alvarado, Jada Wells, Devenair Fultz
Not Pictured: Brett Bernard

DEPOSIT
MANAGEMENT &
PUBLIC FUNDS
Shane Hughes

DEPOSIT
MANAGEMENT &
PUBLIC FUNDS TX
Jonathan G. Jennings

DEPOSIT MANAGEMENT & PUBLIC FUNDS
Front (L-R): Thomas Calmes, Brandi Steffek, Steven Osman
Back (L-R): Edrea Jackson, Philip Jeanfreau, III, Mark Ducoing,
Holly Tamburello

DEPOSIT OPERATIONS MAIN
Front (L-R): Stefanie Addison,
Corrissa Gardner, Epris McKnight,
Shirley Jones
Back (L-R): Christina Lacara,
Tammy Graves, Tracey Robertson,
Lori Lloyd, Melissa King,
Amanda Johnson
Not Pictured: Glenda Saucier,
Kimberley Fletcher

EFT/ITM SERVICES
Front (L-R): Sandra Hughes, Nicole Jackson, Laura Ard,
Brooke Garner
Back (L-R): Richard Stark, Grace Savoy, Jessica Clayton,
Brandon Stewart, Keith Mills
Not Pictured: Alexa Salpietra

28 First Guaranty Bancshares, Inc. Annual Report 2023

FINANCE MARKSVILLE
Calvin Ducote

FINANCE MAIN
Front (L-R): Jannifer Knighten, LaQuita Johnson,
Karli Bishop, Katherine Campbell, Rhesha Lamonte
Middle (L-R): Michael Moye, Diane Lanier,
Donna Scamardo, Chandra McKinney,
Jessica Maxwell, Joshua Hajiakbarifini
Back (L-R): Jacob Anthon, Nolan Hall,
Brendan Gallagher, Eric Dosch

FRONTLINE MAIN
Front (L-R): Vickie Vanlandingham, Jeannette Ernst, Maggie Hovsepian
Back (L-R): Brianna Lowe, Richard Hamilton, Janay Cowart, Bobbie Jo Waller

HUMAN RESOURCES MAIN
Front (L-R): Landa Domangue, Mikki Kelley,
Mandi Aguillard
Back (L-R): Danielle Trosclair, Blair Wascom,
Christin Bacile, Rudi Perrault

HUMAN
RESOURCES
MARKSVILLE
Jason Normand

INFORMATION SECURITY
(L-R): Austin Kirk, Samantha Petracek, Makiel Peters, Kenny Wilson

INFORMATION
TECHNOLOGY MARKSVILLE
Tyler Roy

INFORMATION TECHNOLOGY MAIN
Front (L-R): Star Lala, Theresa Harris, Madison Matherne, Wendy Kinchen, Casie Qualls, Ashlynn Martell, Tyler Matherne
Middle (L-R): Tori Boyd, David Couvillon, Dawn Cortez, Coby Pennington, Jesper Kvist, Lee N. Barker, III, Alex Chaplain
Back (L-R): Luke Lavergne, Mark Montalbano, Marcus McMillian, Robert L. Newell, Matthew Lemons, Austin Grant, and Merill Magday
Not Pictured: Anneliese Livaudais, Christopher Benton

INFORMATION
TECHNOLOGY MCKINNEY
David Stolarski

INTERNAL AUDIT & LOAN REVIEW
Michelle Dionne, Britney Tarto
Not Pictured: Rene Clouatre

INTERNAL AUDIT TX
Nancy Rodriguez

LEARNING & DEVELOPMENT MAIN
Front (L-R): Vikki Dupaquier, Miranda Derveloy
Back (L-R): Summer Alessi, Wil Brown, Mary Mayo

LEARNING &
DEVELOPMENT
NORTH LA
Amber Smith

LENDING MAIN
Front (L-R): Corey Hayden, Christy Wells, Michael Knighten
Back (L-R): Justin Cashe, Scott Schilling
Not Pictured: Vickie Jenkins

LENDING MAIN
Ronnie Foshee

30 First Guaranty Bancshares, Inc. Annual Report 2023

LOAN OPERATIONS MAIN
Front (L-R): Virginia Lambert, Kellie DeMarco, Heather Liuzza, Lauryn Waits, Chelsi Overton, Caprice Abed, Jessica Matthews, Denise Rehage
Middle (L-R): Cate Mathes, Angela Fields, Connor Porta, Caitlyn Cline, Amy King, Krystal Memleb, Darlene Albert, Catherine Egnew, Laura Lacoste,
Karen Paille, Sarah Jenkins
Back (L-R): Karleigh Bourgoyne, April Coker, Bryanna Scuderi, Elizabeth Roy, Sarah Matthews, Julie Carmo, Michael Curry-Theriot, Donna Hodges,
Debra Talbert, Kim Drury
Not Pictured: Pamela Kaisner, Emily McIntyre, Sarah Sheridan

LOAN OPERATIONS - SBA
Front (L-R): Janice Muse,
Back (L-R): Linda Kolosey, Jan Bownd, Lisa Stoker

MARKETING
Front (L-R): Allison Ryan, Lauren Lee
Back (L-R): Kay Kearney, Enrique Monzon, Celest Wilson

ONLINE BANKING
Front (L-R): Destiny Lindsey, Tasha Jackson, Julie Nevels
Back (L-R): Richard Stark, Melinda Lenz

MORTGAGE MAIN
Front (L-R): Melissa Duchmann, Christine Zeringue, Martin Holifield
Back (L-R): Kimberely Lecumberri, Bridgette DeMars, Brandon Wear,
Anna Borgstede
Not Pictured: Kyleen Tulion

REGIONAL EXPERIENCE &
OPERATION MANAGERS
CENTRAL
Chanyon Robinson, Hali Lacour

REGIONAL EXPERIENCE &
OPERATION MANAGERS
NORTH LOUISIANA
Tanisha Jackson, Glenda Graham

REGIONAL EXPERIENCE &
OPERATION MANAGERS
SOUTHEAST
Marsha Spring, Nicole Mouton

REGIONAL EXPERIENCE &
OPERATION MANAGER TX
Areeb Rashid

SPECIAL ASSETS
MARKSVILLE
Brittany Dauzat

SPECIAL ASSETS
Front (L-R): Evan Singer, Luke Hammonds
Back(L-R): Lee Ann Sibley, Norma Volkers,
Rhonda Schliegelmeyer, Danielle Huff

32 First Guaranty Bancshares, Inc. Annual Report 2023

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

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

Front (L-R): Ruth Huron, Ashley Painter, Kayla Gaspard, Diane Frederick
Back (L-R): Cody Gil, Gretchen Meaux, Glenn Duhon, Rhesa Decuir, Amy Broussard
Not Pictured: Lisa Guidry

Front (L-R): Catherine Marcum, Jeanette Brown
Back (L-R): Shelby Marsh, Jajuanna Pardue, Rachel Hazelton
Not Pictured: Lisa Hernandez

Front (L-R): Heather Burrell, Roxane Williams, Shana Wells, Crystal Barnes
Back (L-R): Stephanie Campo, Tammy Chavers, Jeremy Adamson, Donnie Lyday, Brooke McNabb
Not pictured: Ike Long

AMITE
(985) 748-5111
632 West Oak Street
Amite, LA 70422

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

Front (L-R): Kendria Smith, Monique Rochelle
Back (L-R): Cori Scott, Pam Coyote, Nunu Williams, Donna Cummings
Not Pictured: Kristy Schuldt

34 First Guaranty Bancshares, Inc. Annual Report 2023

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

Front (L-R): Schana Payne, Courtney Tramiel
Back (L-R): Haley Whitten, Cassidy Behrendt, Shari Alden, Jorge Caal
Not Pictured: Kristi Harmon, Lynn Henry, Matt Hudnall

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

Sitting (L-R): Diana Kinder, Wendy Wayne, Lisa Musgrave
Standing (L-R): Mariah Frantz, Craig Hriblan, Sam Gallo, Chris Parr, Jason Turner, Lisa Blackwell
Not Pictured: Sarah Benson, Autumn Kelley, Tiffany Gowen

(L-R): Kim Mikronis, Cheri Moses, Kristen Nelson, Rebekah Turner
Not Pictured: Casey Brouillette

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

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

Front (L-R): Brittanie Wallace, Ashley Oliver, Angela Wales
Back (L-R): Courtney Lachney, Michelle O’Quin, Jennifer Rizzi, Reynold Lagarrigue,
Early (Clint) Trant, Kailey Dolan, Kathie Alimia, Melinda Fontenot
Not Pictured: Sharon Moore

36 First Guaranty Bancshares, Inc. Annual Report 2023

(L-R): Daniel Prince, Leslie Hinzman, Jackie Melgoza

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

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

Front (L-R): Cassie Colvin, Angela Brewster
Back(L-R): Jeremy Dubose, Kristy Roberts, Nic Mason, Everett Geis Jr.
Not Pictured: Diane Shoemaker

FORT WORTH
(817) 502-6611
2001 North Handley Ederville Road
Fort Worth, TX 76118

Front (L-R): Ilse Trillo, Marcus Khoury, Amber McKinley
Back (L-R): Fareed Ali, Mark Sosa, Thomas Cudd, Darshan Patel, Julius Boose

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

Front (L-R): Sara Wayne, Azucena Morales, Corinne Forbes
Middle (L-R): Amy Turner, Perla Alvizo, Jennifer Petty
Back (L-R): Ross Matthews, John Gonzalez, Jordan Lewis

38 First Guaranty Bancshares, Inc. Annual Report 2023

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

Front (L-R): Holly Mulkey, Daejoana Frazier
Back (L-R): Trella Page, Melissa Smith, Tyraneisha Burton

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

(L-R): Jerri Price, Angel Cox, Shavonda Watts, Derhonda Gaines
Not Pictured: Latonia Cotton, Sommer Robertson

(L-R): Iesha Johnson, Caree Claunch, Tammy Burley, Aleshia Lee

HAYNESVILLE
(318) 624-1171
10065 Highway 79
Haynesville, LA 71038

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

(L-R): Katherine Scallan, Becki Normand, Jadelyn Hall, Rikki Deaville

40 First Guaranty Bancshares, Inc. Annual Report 2023

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

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

Front (L-R): Tristan Lowe, Niekitsha Ridley, Candie White, Candice Cripe
Back (L-R): Jenna Hunt, Angela Thomas, Debbie Spigener, Caree Claunch, John Synco, Laura Pair

Front (L-R): Peggy Garon, Karen Paille
Back (L-R): Caitlin Doty, Debra James, Kay Luke, Cheryl Brumfield
Not Pictured: Michele Montgomery

Front (L-R): Colby Trahan, Jaylyn Perry
Back (L-R): Brenda Mallett, Georgette Miller, Amanda Crochet, Gwen Pete

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

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

Front (L-R): Lindsey George, Connie Butler
Back (L-R): Lisa Rushing, April McCray, Allison Keating, Kristin Cole

KENTWOOD WEST
(Consolidation in 2024)

42 First Guaranty Bancshares, Inc. Annual Report 2023

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

(L-R): Rahul Patel, Amber Conroy

MARKSVILLE
(318) 253-4531
305 North Main Street
Marksville, LA 71351

Row 1 (Front L-R): Sheila Smith, Jana Josuha
Row 2 (L-R): Cynthia Wyatt, Colleen McGehee
Row 3 (L-R): Melissa Small, Ronald Chatelain, Stefanie Moses, Elizabeth Lemoine
Row 4 (back L-R): Nyika Moore, Carlyn Barron, Greg Prudhomme, Ronnie Green

MARKSVILLE LEGAL
(L-R): Samantha Lachney,
Amanda Theriot

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

Front (L-R): Nickie Dauzat, Josiah Blood, Mandy Knott, Catherine Normand
Back (L-R): Carolyn Bordelon, Abigail Couvillion, Ariel Deming, Angel Williams, Annette Roy,
Shelby Marsh

TUNICA TAG & TITLE
MARKSVILLE
Minnie Deshotel
Not Pictured: Pamela Landry

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

Front (L-R): Philisha Adair, Deborah King, Erick Jorgensen
Back (L-R): Francois Nedd, Callistus Amajoyi
Not Pictured: Victoria Melton

44 First Guaranty Bancshares, Inc. Annual Report 2023

(L-R) Trella Page, Brianna Chaney, Betsy Ehret

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

MOREAUVILLE
(318) 985-2299
10710 Highway 1
Moreauville, LA 71355

Front (L-R): Courtney Lacombe, Susan Desoto
Back (L-R): Laura Dufour, Elizabeth Bordelon, Abigail Couvillion, Lakin Lemoine

(L-R): Tamantha Boatman, Jeremy Hartley, Dana Moore, Samantha Dupree

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

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

Front (L-R): Robyn Patterson, Monchondria Allen
Back (L-R): Kara Medica, Evelyn Pickney, Nolan Spillers, Leah Hunter

46 First Guaranty Bancshares, Inc. Annual Report 2023

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

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

Front (L-R): Denise Fletcher, Lori Robertson, Bernisha Caleb
Back (L-R): Ruby Williams, Amiee Gervais, Elliot Goorley, Laura Perez, and Mallory Leeper
Not Pictured: Misty Shaffett, Craig Scelfo

Front (L-R): Jodie Collier, Ashley White, Jane Muehlbauer, Tammy Highfield
Back (L-R): Ammon Cooper, Marty Cole, Adam Christy, Mike Mineer
Not Pictured: Daniel Pack

Front (L-R): Glenda Sepulveda, Caroline Harville, Madison Mosley, Emma Rolling
Back (L- R): Stacy Thompson, Ashline Harding, Tina Gay, Samantha Berry

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

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

Front (L-R): Terrie McCartney, Jessica Garcia, Amy Dennis
Back (L-R): Pam Lambert, Yvonne Lagasse, Kellie Davis, Angelia Simmers

48 First Guaranty Bancshares, Inc. Annual Report 2023

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

Front (L-R): Janie Spearman, Joey Amadeo
Back (L-R): Joy Christman, Kylie Sibley, Sheila Lofton

WATSON
(225) 665-0400
33818 Highway 16
Denham Springs, LA 70706

(L-R): Mary Kutej, Gracie Pope
Not Pictured: Bill Smith

FIRST GUARANTY BANK–Helping Students FORWARD

Thomas Calmes, Financial Education Specialist at First Guaranty Bank visited Ponchatoula High School and spoke to students about Banking 101,
Budgeting, and Credit.

Delivering financial education to the community is a
longstanding First Guaranty Bank service.

In early 2023, First Guaranty Bank created financial
education curriculum named FGB Financial Foundations:
Financial Wellness at Every Age. The curriculum was
designed to offer financial education in a relatable format for
both adults and teens. First Guaranty offers informative, in-
person sessions to both local businesses and schools. The
FGB Financial Foundations program has been introduced
in over ten schools/businesses and reached over 500
students so far.

Thomas Calmes, Financial Education Specialist at First
Guaranty Bank visited Ponchatoula High School and spoke
to students about Banking 101, Budgeting, and Credit.

Representative Muscarello attended the latest FGB
Financial Foundations session and said “If we can
change people’s foundations on finance, we can change
lives. It’s been encouraging to me because I like people
who are passionate -- that’s what we need in order to
build this curriculum for the state.”

With the recent passage of Louisiana State Representative.
Nicholas Muscarello Jr.’s authored bill, financial literacy will
be a requirement for graduation for all Louisiana students
by 2026.

For more information on this free program or to learn
how your business or students can benefit, contact
Thomas Calmes, Financial Education Specialist, at
tmcalmes@fgb.net.

50 First Guaranty Bancshares, Inc. Annual Report 2023

PARTICIPATING SCHOOLS

Ponchatoula High School
Hammond High School
Loranger High School
Independence High School
Amite High School
St. Thomas Aquinas High

School

Tangipahoa Parish Virtual

Learning

Natalbany Middle School
Northwood High School
Avoyelles Virtual Alternative

Program

Newman High School
Bossier High School
Bossier Parish School for
Technology & Innovative
Learning

Benton High School
Alexandria Senior High
Avoyelles Virtual and
Alternative Program

Tioga High School
Avoyelles Virtual and
Alternative Program
Pineville High School

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 2023.

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 $692,789 in 2023.

Kristina Harmon presented a contribution
to Jessica Miller, CEO of Gingerbread House
and Sophia Sanders, Director of Child Life &
Community Engagement / Forensic Interviewer
for the Gingerbread House.

Jeannette Ernst presented a contribution to Kerri Vinyard and Wende
Powell for the K.E.Y.S. Alliance Youth Leadership Color Run.

Areeb Rashid presented a contribution to Kimberly Robinson and Kathleen Barbee with
Junior Achievement of the Chisholm Trail to support the financial literacy efforts within
the Cradle to Career initiative in the Fort Worth area.

Monique Rochelle presented a contribution to Trishe Cormany for
the Benton Boys Soccer team.

Kristin Williams presented a contribution to Karley Fontenot, Events and Stewardship
Coordinator and Faith Allen, Assistant Director, Alumni Relations, for the Southeastern
Louisiana University Giving Day and Alumni Partner.

First Guaranty Bank contributed to Brother Bill's Helping Hand.
(L-R): Jerad Boardman, Jordan Lewis, Wes Keyes, Executive
Director, Ross Matthews.

First Guaranty Bank contributed to Roseland Montessori. (L-R): Stephanie Campo,
Ike Long, Amy Ballard, Rainey Iasi.

52 First Guaranty Bancshares, Inc. Annual Report 2023

First Guaranty Bank presented a contribution to L36, A Warrior’s
Way. (L-R): Mandi Aguillard, Heather Baker, President and Founder
of L36 A Warrior’s Way, Rudi Perrault.

Joey Amadeo presented a
contribution to April Wehrs,
Livingston Chamber Foundation
President/CEO for the PAC Can Play,
Leadership Livingston project.

Matt Hudnall presented a contribution to Justyn
Dixon, President of the North Louisiana Economic
Partnership for an Annual Event sponsorship.

First Guaranty Bank presented a contribution to Hammond High Magnet School. (L-R): Carey Watts,
Registered Nurse, Vanessa Drew, Tanya Bradley, Financial Secretary, Michael Kyles, Jr., Principal.

Below: Vanessa Drew presented a contribution to Hammond High Torbotics for their World Competition.

Cheryl Brumfield and Peggy Garon presented a
contribution to Melissa Capadona, Principal of Mater
Dolorosa Catholic School for their Annual Steak
Dinner fundraiser.

Matt Hudnall presented a contribution to Philip Rodgers, owner of Rodgers Homes and Construction
for the Shreveport/Bossier area St. Jude home.

Carl Duplessis presented a contribution to Emily Brock,
Manager of Development and Law Enforcement Torch
Run for Special Olympics 2023 State Summer Games.

Madison Matherne presented a contribution to Chief Ed Bergeron, Officer Trenell Williams, and
Reserve Officer Steve Amos for Hammond Police Department’s Camp Blue.

Ludrick Hidalgo and Angela Wales presented a
contribution to Larry Davis, Kiwanis President for the
sponsorship of the Denham Springs Christmas Parade.

54 First Guaranty Bancshares, Inc. Annual Report 2023

First Guaranty Bank presented
a contribution to Independence
High Magnet School for the
Baseball Team’s 2023 Game Day
Sponsor. (L-R): Coach Vernon
Willie, Baseball Head Coach,
Cheryl Brumfield, Mrs. Donnis
Casanave McIntyre, Principal.

First Guaranty Bank contributed to Benton High School for Project Graduation.
(L-R): Kendria Smith, Terri Kelley, Lori Gore, Pam Coyote, Daniel Loe.

Brenda Mallett presented a contribution to Linda Leblanc for Jeff Davis Parish
Chamber of Commerce Annual Sponsorship.

First Guaranty Bank presented a contribution to East Baton Rouge 4H
Foundation. (L-R): Liz Doolittle, Ludrick Hidalgo, Amy Schulze, EBR 4H
Volunteer Coordinator, Sheila Lofton, Angela Wales, Joy Christman.

First Guaranty Bank presented a contribution to the North Caddo High School
Football Team. (L-R): Michael Glover, Athletic Director, Madison Mosely, Caroline
Harville, Chase Thompson, Head Football Coach.

Below: Matt Hudnall, Daniel Loe, and Kristi Harmon presented a contribution to Coach Eddie Hamilton, Coach Brittnay Smith, and
members of the Boys Basketball and Girls Softball teams.

Jason Wilson presented a contribution to Rick Settoon for the
Southeastern Channel.

Leslie Hinzman presented a contribution to President Justin Lemish and President
Elect Cheryl Hughey for Champions Rotary Club of Justin.

Matt Hudnall and Courtney Tramiel presented a contribution to
Drew Maulsby, Director for the Independence Bowl Foundation.

First Guaranty Bank contributed to Haynesville High School FBLA for the FBLA
State Conference. (L-R): Aaliyah Vines, FBLA Vice President, Caree Claunch,
Mallory Schilling, FBLA President, Ella Hollis, FBLA Treasurer.

Chris Geraci presented a contribution to James Harris for Kids Church in
the Park.

Ludrick Hidalgo presented a contribution to Malayne Sharp, Denham Springs
Kiwanis for the Kiwanis Club Clay Shoot.

56 First Guaranty Bancshares, Inc. Annual Report 2023

Cassie Roberson and Iesha Johnson, presented a contribution to Tiffany Curry,
Principal for Dubach Elementary School’s Teacher/Staff Appreciation week.

Jane Wear presented a contribution to Jivka Duke, Director for Community
Music School.

Eric Dosch presented a contribution to Alexis Sterling, Calin Ardoin, Casey Rudolph
for Ballin 4 Options.

Below: Gretchen Meaux presented a contribution to the Abbeville Fire Department.

Chanyon Robinson presented a contribution to Katina Crochet, school
secretary to the Elton Elementary School.

Rachel Hazelton presented a contribution to Dr. Amber Eskew at Forest Hill Junior High for
bleachers replacement.

Sarah Sheridan presented a contribution to Sarah Warthan
for New Orleans Mission on the Rescue Nola event.

Caroline Harville and Stacy Thompson presented a contribution to Susan Conly, Board member
for Monterey Country Club.

First Guaranty Bank Abbeville Branch presented a contribution to Brian Ford of
Boys & Girls Club of Acadiana.

Georgette Miller presented a contribution to Nikki Miller, Financial Secretary,
for Jennings High School Awards Day Program.

58 First Guaranty Bancshares, Inc. Annual Report 2023

Matt Hudnall presented a contribution to Justyn Dixon,
President, for North Louisiana Economic Partnership.

Kristin Williams presented a contribution to members of the Parent Teacher Organization along
with students of Hammond Eastside for the Parent Teacher Organization at Hammond Eastside
Magnet School.

Jeremy Dubose presented a contribution to Sgt. Iris Winston with Lincoln Parish Sheriff's
Department for the Senior Expo.

Brenda Briscoe presented a contribution to Rick Wyatt for the
Garland Future Farmers of America program.

Below: First Guaranty Bank contributed to Hammond Firefighter’s 9/11 Memorial Run. (L-R): Coy Baham, Eli Brignac, Jamie Hammons, Kristin Williams,
Frank “Tony” Patti, Jacob Lee, Lauren Lee, Matt Bazile, Quenton Cornelious.

Roxane Williams presented a contribution to Tomyka Rivera-Ayala of
Amite High for Amite High Magnet School PTO.

First Guaranty Bank contributed to Homer High School FBLA for the FBLA State
Conference. (L-R): David Robinson, FBLA Chapter Advisor, Debbie Spigener, Brendon
Harris, FBLA Chapter President and Senior.

Kristin Williams presented a contribution to Amber Andrews, Deputy
Director/Programs Director, and Melinda Edwards, Office Manager, for
Chappapeela Sports Park Easter event.

First Guaranty Bank presented a contribution to the Veterans of Foreign Wars Post
3652. (L-R): Albert "Bert" Cusimano Sr. Commander, Randy Vicknair, Brian Bonanno,
Quartermaster, and Jeff Crownover, Fundraising Chairman.

Jeremy Duboise presented a contribution to Ms. Curry and Ms. Crane
for Dubach Elementary School.

60 First Guaranty Bancshares, Inc. Annual Report 2023

Jason Wilson presented a contribution to Dr. Ann Carruth,
DNS, RN, Dean, College of Nursing and Health Sciences
at Southeastern Louisiana University for the Canines and
Cupcakes event.

Crystal Ward presented a contribution to Jarvis A
Lewis, Director of Government Affairs for Louisiana
Housing Corporation’s annual housing conference.

First Guaranty Bank presented a contribution to the City of Hammond for Back to School Bash. (L-R): Guy
Recotta, Clerk of Court/Juvenile Services Director City Court of Hammond, Mayor Pete Panepinto, Kristin
Williams, Judge Britain Sledge, Sarah Sheridan, Alton Lewis.

Philip Jeanfreau presented a contribution to Katie Addison, and
Katie Fletcher for the Ponchatoula Wavettes at Ponchatoula High
School.

Amanda Barnett presented a contribution to Colleen Scarle, President for the Northshore Arts
Foundation Arts in Bloom event

Below: First Guaranty Bank presented a contribution to North Caddo Medical Center Foundation for telemedicine workstations for 5 local schools in our area. (L-R):
Missy Moore: Board Member, Heather Courtney: NCMC Foundation Chairwoman, Glenda Graham, Mary Coil: NCMC Marketing Director, Daniel Loe, Caroline Harville,
Shane Hughes, David Jones: NCMC CEO, Dakota Robinson: NCMC CFO, Kourtney Tyson: NCMC Foundation Executive Director, Tina Gay, Britney Stringham: NCMC
Admin Assistant and Stacy Thompson.

Jason Wilson and Kristin Williams presented a contribution
to Ryan Barker, Director for Chappapeela Sports Park.

Amanda Crochet presented a contribution to Clare Coleman for Jeff Davis Parish Public Library.

Caroline Harville presented a contribution to Jason Beasley,
President for the Vivian Athletic Association.

Greg Prudhomme presented a contribution to Avoyelles Public Charter School.

Caroline Harville and Stacy Thompson presented a contribution to Chief Joey Ryan for the
Vivian Fire Department.

Denise Fletcher presented a contribution to the Coach
Tom Taylor for the PHS Boys Basketball team.

62 First Guaranty Bancshares, Inc. Annual Report 2023

Ashley White presented a contribution to Amy McCray, Paraeducator and
Amber Justice, Paraeducator to Laurel Elementary School.

First Guaranty Bank presented a contribution to Elton Jr. High School Beta Club.
(L-R): Mylee Chevallier, Beta Member, Kayla McKay, Beta Sponsor, Caitlin McKay,
Beta Member and Georgette Miller.

Cheryl Brumfield presented a contribution to Chad Thompson, Chief Financial
Officer and Lisa Bruhl, Chief Executive Officer for the Lallie Kemp Foundations
Board Gala.

Alton Lewis and Desiree Simmons presented a contribution to Lynn Horgan,
Director of Development, University Advancement for Southeastern Louisiana
University Partner Sponsor.

Below: First Guaranty Bank presented a contribution to LHSAA Soccer and Basketball Sponsorship. (L-R): Melissa Bordelon, President and CEO Tangipahoa
Chamber; Hammond Mayor Pete Panepinto; Alton Lewis; Parish President Robby Miller; Guy Recotta, Clerk of Court/Judicial Administrator, City Court of Hammond;
Carla Tate, Executive Director Tangipahoa Parish Convention & Visitor Bureau; Scott Nunez, University Center Director; Andrew Bechac, Deputy Director of Athletics,
Southeastern Louisiana University.

Randy Vicknair presented a contribution to Karley Fontenot, Events and
Stewardship Coordinator of University Advancement for the Chef’s Evening
Sponsorship.

Corinne Forbes presented a contribution to Gwendolyn Daniels- Corporate Sponsor
Chair for NAACP Freedom Fund Brunch & Silent Auction.

Brandi Steffek presented a contribution to
Sherice Hurst, Assistant Principal at Natalbany
Middle School for the PBIS program.

First Guaranty Bank presented a contribution to North Caddo High School for their Senior Crawfish Boil.
(L-R): Caroline Harville, Annie Cherry, Principal, Maggie Reger Senior class officer, Dakota Roberts, Senior
class officer, Philippe Sanders, Senior class officer, Donna Pannell, Senior class sponsor, Stacy Thompson.

First Guaranty Bank presented a contribution to Welsh High School for the
Safe & Sober Graduation event. (L-R): Taylor Benoit, Grant Daigle, Georgette
Miller, Carson Hall, Phoebe Boudreaux.

Luke Varisco presented a contribution to Baseball Head Coach Michael
Rutland, for Hammond High Baseball.

64 First Guaranty Bancshares, Inc. Annual Report 2023

First Guaranty Bank presented a contribution
to Launch event 2023. Front (L-R) Summer
Alessi, Launch Gala Committee Member, Angela
Wales, Dr. Chantelle Varnado, Launch Director,
Kendra Fairburn, Kylie Sibley. Back (L-R): Ludrick
Hidalgo, Joy Christman, Sheila Lofton.

Lee Ann Sibley presented a contribution to Suzanne Miller for the Tangipahoa
Parish Sheriff’s Office Annual Rodeo.

First Guaranty Bank contributed to the Back to School Bash for the
Independence Leadership Academy. (L-R): Melanie Johnston, Assistant
Principal, David Tucker, Crimestoppers, Jamie Mills, Principal, Cheryl Brumfield.

Below: First Guaranty Bank presented a contribution to Ace of Hearts Foundation. Front: Asher “Ace” Bergeron. Back: (L-R): Stephen Alexander, Treasurer, Scott
Schilling, Trevor Bergeron, Wesley Wilson, President.

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

First Guaranty Bank presented a contribution to United Way of Harrison and Doddridge
Counties. (L-R): Betty Watty, Brock Malcolm, Wayne Worth, Jason Turner, Lisa Musgrave,
Wendy Wayne.

Kristin Williams presented a contribution to Jodee Hoover, Executive
Director and Donna Olivia, Administer, for Hospice Gala.

First Guaranty Bank presented a contribution to Denton High School for the Senior
Awards Banquet. (L-R): Lt. Col Robert C West Jr., (Ret), USAF and Senior Aerospace
Science Instructor, Heather Kirk, Bookkeeper, and Leslie Hinzman.

Desiree Simmons presented a contribution to Delmas Dunn, President of
TAAHM Board, Belinda Trepagnier, TAAHM Benefit Co Chair, and Guy Recotta,
Clerk of Court/Juvenile Services Director City Court of Hammond, for the
Tangipahoa Parish African American Heritage Museum benefit.

Alton Lewis presented Mayor Pete Panepinto a contribution for the City of
Hammond’s Fourth of July Fireworks celebration.

66 First Guaranty Bancshares, Inc. Annual Report 2023

First Guaranty Bank contributed to the Independence Volunteer Fire Department for the
Smokin’ on the Tracks BBQ Competition. (L-R): Taylor Hastings, Firefighter IVFD, Roy Shar,
District Fire Chief, Peggy Garon, Cheryl Brumfield, Chris McKinney, Captain of IVFD, John Polito,
Fire Chief IVFD.

Jeremy Duboise presented a contribution to Brooke Hancock,
FFA Advisor for Union Parish High School.

Kristi Harmon presented a contribution to Charlotte Moczygemba, Development
Director, for Bossier Chamber of Commerce’s Bossier Youth Leadership.

Vanessa Drew presented a contribution to Melissa Griffin, Executive Director
for Hammond Regional Arts Center for the Brews Art Festival.

Below: Casie Qualls and Jesper Kvist presented a contribution to the Amite and Jewel Sumner High School’s students for the Tangipahoa Parish School Board’s
Talented Theatre Program.

Melinda Fontenot presented a contribution to Fire Chief Dana
Smith for Simmesport Volunteer Fire Department.

Jeremy Dubose presented a contribution to Chris Jones, Assistant Principal at Choudrant
High School for the 2023 Junior and Senior prom.

Lauren Lee presented a contribution to Amber Andrews, Deputy Director/Programs
Director and Samantha Carson, Program Specialist, for Back to School Bash at
Chappapeela Sports Park.

Caroline Harville presented a contribution to Toni Thompkins, President of
the Vivian Black History Parade Organization.

Cheryl Brumfield presented a contribution to Lisa Paine,
Chairperson, for the Independence Sicilian Heritage Festival.

First Guaranty Bank presented a contribution to Tangipahoa Government for the K.E.Y.S.
Alliance Youth Leadership run event. (L-R): Gaylin Mull, Jeannette Ernst, Taylor Addison,
Rylie Butler

68 First Guaranty Bancshares, Inc. Annual Report 2023

Desiree Simmons presented a contribution to Jay Artigues, Athletic Director and Allie Crain, Assistant to
the Athletic Director for Development, for Southeastern Louisiana University Athletics.

First Guaranty Bank presented a contribution to FeLions for Salute the Lions. (L-R): Peggy Hoover,
Suzanne Gautier, Rita Bertolino, Christy Wells, Jan Labbe, Randi Matthews.

Caroline Harville presented a contribution to Toy Ward
for the Ladies Auxiliary of Bowen Holland Post 141
American Legion.

Below: First Guaranty Bank contributed to Town of
Cheneyville. (L-R): Tiffany Lemoine, Cynthia Wyatt,
Liz Lemoine, Mayor Derrick Johnson, Ronny Green,
Colleen McGehee.

Kristin Williams presented a contribution to John Hair,
Executive Director for Our Daily Bread.

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

Chris Geraci presented a contribution to Antonio
Richardson, Baseball Coach for Kentwood High School’s
baseball and track program.

Vanessa Drew presented a contribution to Jim Winter and Angelle Reeves
for the Columbia Theatre.

70 First Guaranty Bancshares, Inc. Annual Report 2023

Amiee Gervais presented a
contribution to the 2022 PHS Lady
Wave Basketball State 5A Champions.

Chanyon Robinson presented a contribution to Chuck LeJeune, President for
Leadership Excel for the Annual Leadership Program.

Jeannette Ernst presented a contribution to Thomas Levatino for the 4th
Annual A Night in Little Italy “sotto le Stelle” meaning, Under the Stars
celebration by the Independence Italian Cultural Museum.

Vanessa Drew presented a contribution to Courtney Lewis, CEO, and D.
Scott Vaughan, CFO, for Unbranded.

Below: First Guaranty Bank contributed to Lewis County Recreation Park. (L-R): Jodie Collier, Alton Lewis, Tammy Highfield, Ashley White, Marty Cole, Jack Lykins,
Lewis Co. High School principal, Nate Stone, Teacher at Lewis Co. High.

Helping communities to move FORWARD!

A
City of Abbeville – Fire Department
A.D. Sutton & Sons, Inc. – Back to

School Bash Supply Kits

Ace of Hearts Foundation – Golf

Scramble Fundraiser

Airline High Basketball – Digital

Marquee

Airline High Softball – Lady Vikings

Outfield Sign

Albany High School – Softball Team

Platinum Sponsor

Alexandria Mardi Gras Association,

Inc. – Mardi Gras Parade

ALSAC/St. Jude’s Hospital – St. Jude

Dream Home, Bossier City, LA

American Heart Association, Inc. –

Red for Women

American Legion Post #47 –

Louisiana Girls State

American Legion Post #141 –

Louisiana Girls State

Amite Chamber of Commerce
Amite High School – PTO’s Spring

Fling Fundraiser

Amite Oyster Festival – Pearl Sponsor
Arts and Humanities Council for

Avoyelles – Avoyelles Arts & Music
Fest

Ascension Chamber of Commerce –

Gold Sponsor

Associated Builders & Contractors –

Pelican Chapter Membership

Avoyelles High School – Baseball Turf

and Base Installation

Avoyelles Parish School Board –

Avoyelles High Spirit Team, Avoyelles
High Softball Team Diamond
Sponsor, Lady Mustang Basketball
Playoff Expenses, Marksville High
Softball Team

Avoyelles Public Charter School –
Championship Rings, Basketball
Championship Rings, Project
Graduation

B
B1 Foundation – Breaking the

Lending Code Seminars

Baton Rouge Area Chamber – Young

Professional Summit

Benton High School – Boys Soccer

Gold Level Sponsor, Project
Graduation

Black History Parade Organization
Bordelonville Volunteer Fire
Department - BBQ Dinner
Fundraiser

Bossier Chamber of Commerce
– Salute to Community Heroes,
Bossier Youth Leadership
Bossier High School – State

Championship Rings
Boy Scouts of America
Boys & Girls Club of Acadiana –

Presenting Sponsor Celebrity Waiter
Dinner

Bridgeport High School – Baseball

Sponsor

Brother Bill’s Helping Hand – Bullseye

Sponsor Wild Grame West Dallas
Bunkie High School – Baseball Team

Sign

Bunkie Rotary Club – Golf Tournament

Sponsor

C
CADA – Taste N Tell Sponsor
Caddo Parish Fire District #8 –

Purchase Furniture for Fire House

Cedar Creek School – Cougar

Baseball Outfield Sign

Chamber of Commerce Maysville and

Mason County

Champions Rotary Club – Habitat for

Humanity Denton County

Chanson, Inc. – Children’s Choir
Choudrant High School – Junior/

Senior Prom

Adam J. Christy – Feed the

Roar Contribution Committee
(Southeastern Louisiana University)
Claiborne Academy – Championship

Golf Rings

Claiborne Chamber of Commerce –
Annual Banquet Platinum Sponsors
Claiborne Charity, Inc. – Golf Classic

Silver Sponsor

Claiborne Parish School Board –

Jump Start Students Lunch
Claiborne Unite Foundation –

Louisiana Legends Fest Special
Court Sponsor

Coastal Conservation Association
of Louisiana – Chapter Banquet
Redfish Sponsor

College of Nursing and Health

Sciences – Canines & Cupcakes
Sponsor

Crimestoppers of Tangipahoa –
Independence Back to School
Bash and Murder Mystery Cabernet
Sauvignon Sponsor

Crying Eagle Brewing Co. – Concert

Series Silver Sponsor

D
Denham Springs High School – Girls

Basketball Sign in Hornsby Gym

City of Denton – Denton Active Adults

Fair Silver Sponsor

City of Denton – Senior Center

Denton Health Fair Sponsorship

Denton Independent School District –

Senior Class Casino Night

East Baton Rouge 4-H Foundation –

Sporting Clay Tournament

Elton Elementary School – Partners in

Education

F
Forest Hill Junior High – Gym

Bleachers

Friends of Bridgeport Recreation, Inc.

– Inclusive Playground

G
Giving Transformation for

Opportunities Discover – Jump Start
& Ready to Geaux School Supplies

Gujarati Samaj of Mississippi –

Annual Banquet & Diwali Dinner
Bronze Sponsor

H
H20 Ministries – Housing for Aged-

Out Foster Youths

Hammond Airshow Foundation, Inc. –

Fall 2023 Presenting Sponsor

Hammond Area Recreation District
1 – Pole Banner Sponsor, Back
to School Bash School Supplies,
Easter Eggstravaganza, H.A.R.D.
Summer Camp

Hammond BBQ, Inc. – Rib Sponsor
City of Hammond - Back to School
Bash School Supplies, Camp Blue,
Fireworks Display Sponsor

Hammond Eastside Magnet School –

PTO Corporate Sponsor

Hammond Firefighters Association
– 911 Memorial 5K Run Chief
Sponsor

Hammond High Magnet School
– Lady Tornado Volleyball Team
Ace Sponsor, Torbotics World
Competition, Special Ed Annual
Field Day Sponsor, Baseball Sign
Hammond – Ponchatoula Sunriser
Rotary – Chili Cookoff Blazing
Sponsor

Hammond Regional Arts Center
– 2023 Brews Arts Festival
Entertainment Sponsor

Hammond VFW Post 3652 – First
Annual Golf Tournament Front 9
Sponsor

Harrison County Chamber of

Commerce – Annual Awards Dinner
Haynesville Dixie Youth Softball – All-

Doyle High School – Baseball Team

Stars Tournament

Sponsorship Sign

Dubach Restoration and

Beautification Organization –
Chicken Festival Sponsor and Tent
Rental

Dubach School – Adopt-A-School,

Elementary School Teacher/Staff
Appreciation Week

Haynesville High School – FBLA State

Conference

Haynesville Quarterback Club –

Stadium Sign

Helping Hands Youth Center – Big

Night of Bingo

Herbert S Ford Memorial Museum –

Sustaining Membership

Hessmer Sports Club – Team

Sponsor

Homer Golf Club – Tee Box Sign
Homer High School – Pelican

Quarterback Club Sign, FBLA State
Conference

I
Independence Bowl Foundation
– 2-Star General Corporate
Sponsorship

Independence High School –

2023 Baseball Gameday Sign
Sponsorship

Independence Sicilian Heritage –

Pearl Sponsorship

Independence Summer Baseball –
Boys & Girls Summer Program
Independence Volunteer Fire –

Smokin’ on the Tracks – Assistant
Chief Sponsor

J
Jeff Davis Chamber of Commerce –

Diamond Level Sponsor

Jeff Davis Sheriff’s Office – Annual
Golf Tournament – Gold Sponsor

Jefferson Davis Parish Library – 2023
Summer Reading Program Sponsor
Jennings High School – PTO’s Teacher
Appreciation Week, Annual Awards
Program, Tennis Team Sponsorship

Jewel M. Sumner High School –

Football Team Sign

Junior Achievement of Greater Baton

Rouge & Acadia – JA in a Day –
Vermilion Parish, JA Leading Ladies
Finance Park

Junior Achievement of Southeast
Texas, Inc. – Katy School Golf
Scramble

Junior Auxiliary of Tangipahoa –

Flamingo Bingo

K
Kaplan High School – Pirate Baseball

Sign

Kentwood High Magnet School –

Equipment Purchase, Annual Awards
Banquet

Kentwood Rotary Club – Cam2 Golf

Tournament Platinum Sponsor

Town of Kentwood – Annual Bookbag

& School Supply

Kids Church in the Park – Summer

Camp for 90 Children

Kiwanis Club of Denham Springs
– Christmas Parade Snowman
Sponsor, Clay Shoot (Team of 4 &
Golf Cart)

Kiwanis Club of Denton – Taste

of North Texas Children’s Clinic
Advocate Sponsor

Kiwanis Club of Hammond – Trivia

Night

72 First Guaranty Bancshares, Inc. Annual Report 2023

L
L-36 A Warrior’s Way – Gala Silver

Sponsor

Lake Claiborne, Inc. = 4th of July

Fireworks

Lallie Kemp Foundation - Gala

Diamond Sponsor

Launch – Big Wig Gala Title Sponsor
Leadership Excel – Community

Sponsor

Lewis County 4-H Council – 4-H Youth

Camp Scholarship

Lewis County Lionbackers Booster
Club, Inc. – Vanceburg Opening
Lewis County Little League – Major
League Sponsor, Snack Shack
Signage

Lewis County Recreational Park
– Phase II Park Development
Contribution

Lewis County School District - Lewis

County Middle Cheerleading
Team Uniforms, Lewis County
High Football Stadium, Vanceburg
Opening, Laurel Elementary Easter
Activities, Pep Bus Sponsor for Boys
Basketball Team to Regionals, Lewis
County High Girls Softball Fence
Banner, Central Elementary Boys
Basketball Team Sponsor

Lewis County Shooting Sports Club,
Inc. – Shooting Sports Banquet

Lincoln High School – Class of 2025

Gold Sponsor

Lincoln Parish Sheriff – Senior Expo

Silver Sponsor

Livestock Committee of Garland – FFA

Livestock Show Contribution

Livingston Chamber Foundation –

Leadership Livingston Project, PAC
CAN PLAY Amadeo

Livingston Council on Aging – Senior

Christmas Stuff a Stocking

Loranger Dixie Baseball and Girls

Softball – Sponsor 2 Teams 2023
Louisiana Association of Chiefs of

Police – Annual Conference

Louisiana Bankers Association –

Education Council Clay Shoot Event
Sponsor

Louisiana Cattleman’s Association –

Annual Banquet Sponsor

Louisiana Corn Festival – Silver

Sponsor

Louisiana Housing Corporation –

Conference Silver Sponsor

Louisiana School Bus Operator

Association – School Bus Drivers’
Lunch & Gifts for 45

Louisiana Women in Agriculture –

Sponsor

LSU Foundation – Commercial

Banking Initiative

M
Macon Graves Industrial LLC
Main Street Homer – Golf Tournament

Sponsor

Mansura Chamber of Commerce
– Cochon de Lait Festival Porky
Sponsor

Marksville Chamber of Commerce –

Mixer Sponsorship

Marksville High/Avoyelles Parish

Ponchatoula High School Band

School Board – Marksville High Tiger
Touchdown Club Platinum Sponsor,
Baseball Field Sign

Mary Bird Perkins Cancer Center –

Cancer Center of Hammond Balance
Sponsor Geaux Yoga

Mater Dolorosa Catholic Church –
Steak Dinner Bronze Sponsor
Corey Michelli – Sheriff of the Year
Monterey Country Club – Golf

Tournament Corporate Sponsor, 1
Man, 1 Woman Entry Fees

Town of Mooringsport
Moreauville Sports Club – Little

League Baseball Field
Moreauville Volunteer Fire

Department – Annual Benefit Dinner
Morgantown Baseball League – Pony

Baseball

N
N Stitches Custom Monogramming
– 2023 Strawberry Festival Open
House

NAACP – Freedom Fund Brunch

Corporate Silver Sponsor

Natalbany Middle School PBIS
Program – Community Prayer
Breakfast

Nesom Middle School – Basketball

Team Sponsorship

Boosters, Inc.

Ponchatoula Lions Club – Benefit

Dinner

Ponchatoula Youth Basketball – 2

Team Sponsorship 9/10 Year Old
Baseball & Softball

R
Richard Murphy Hospice Foundation –

Hospice Gala Rockafella Sponsor

Roseland Montessori School –
Booster-Thon Color Fun Run

Rotary Club of Denton, Texas – 2023

Flag Program

Rotary Club of Hammond – Shamrock
Run Starting/Finish Line Sponsor

S
Sacred Heart Church – Vacation Bible

School, New Water Fountain
St. Helena Council on Aging –

November Bingo Lunch Sponsor

Shreveport Bossier African American
Chamber – Annual Meeting Silver
Sponsor

Simmesport Volunteer Fire

Department – BBQ Lunch Fundraiser

Southeast Regional Officials

Association – Golf Tournament RBI
Sponsor

New Orleans Mission, Inc. – Rescue

Southeastern Louisiana University –

NOLA Sapphire Sponsor

North Caddo Magnet High School –

Annual Crawfish Boil & Splash Party
Sponsor

North Caddo Medical Center

Foundation - 5 Telemedicine
Workstations Contribution
North Louisiana Economic

Partnership – 2023 Annual Meeting
Sponsor

Northshore Arts Foundation, Inc. –

Arts in Bloom Sponsor

O
Oak Forest Academy – Golf

Tournament Business Sponsor
Operation Graduation Jennings –

2023 Jennings High

Options, Inc. – Ballin’ 4 Options

Presenting Sponsor

Our Daily Bread of Tangipahoa –

Christmas Contribution

P
Petra Foundation – Gala Ball Platinum

Sponsor

Pi Beta Phi Foundation – In Memory

of Harriet M. Cole

Plaucheville Softball League – Field

Improvements

Ponchatoula Chamber of Commerce
– Berries & Business Luncheon,
Diamond Sponsor Membership

City of Ponchatoula – Live After Five

Level 1 Sponsorship

Ponchatoula High School – Boys

Basketball Championship Rings,
2023 Project Graduation, 2023
Seniors Breakfast, Wavette Spirit
Sponsor,

Junior Beta Club Sponsor

Southeastern Louisiana University
Athletic Association – Champagne
Bingo Table, 2022 Football
Championship Rings, 2022
Volleyball Championship Rings,
FE Lions - Salute the Lions Dinner
Sponsor, Baseball Championship
Rings

Southeastern Louisiana University

Theatre for the Arts – Sponsorship,
23-24 Season Tickets

Southeastern Louisiana University
Foundation – College of Business
Partnership, Alumni Partner, SLU
Giving Day, Community Music School
Partnership, Southeastern Channel,
Chef’s Evening Platinum Sponsor

Southern University College of

Business – Annual Gala on the Bluff
Master Sponsorship

Special Olympics Louisiana – 2023
State Summer Games Sponsor
Student Organization for Aeronautic

Robotic Research – SOARR Program

Summerfield High School – Spring

Auction

T
Take It Personal Gifts – Lake Charles

High School Girls Softball Team
T-Shirt Sponsor

Tangi Parish Government – Run Your
Butts Off Color Run Gold Sponsor

Tangi Professionals Women’s
Organization – Woman Mean
Business Conference Sponsor

Village of Tangipahoa – Pack the Sack

Back to School Giveaway

Tangipahoa African American Heritage
Museum – Annual Benefit Dinner
Platinum Sponsor

Tangipahoa Chamber of Commerce
– Chillin’ with the Chamber Title
Sponsor, LHSAA Basketball &
Soccer State Tournament

Tangipahoa Parish School System –

Talented Theatre Program

Tangipahoa Parish Sheriff – Mounted

Division Rodeo-Bucking Chute
Sponsor

Terzia’s, Inc. – Chicken Festival Tent

Rental

The Generals of Hope – Pink October

Night of Hope Gala VIP Sponsor

The Italian Festival – Lasagna

Sponsor

Tollesboro Lions Club – Main Pavilion
Sponsor, Lions Club Show Sponsor
of 2 Classes

Tunica-Biloxi Tribe of Louisiana –
Governor’s Cup for United Way
Platinum Sponsor, Pow Wow Hawk
Sponsor, After School Program

U
Unbranded – Laser Removal of Marks

on Sex Trafficking Victims

Union Parish School Board – FFA

Convention Sponsor

United Health Foundation, Inc. –

UHCPRO-AM Golf Tournament Eagle
Sponsor

United Way of Harrison and Doddridge

Counties – Mountaineer of Honor
United Way of Southeast Louisiana
– Bank, Employees, and Directors
Contributions

V
Vanceburg Police Department
– July Jubilee Celebration for
Independence Day

Vivian Athletic Association – Title

Sponsorship Banner

W
Watermark CDC – Credit Counselor

Meeting Representative Contribution

Welsh High School – Safe & Sober

After Graduation Party

West Monroe West Ouachita

Chamber of Commerce – 2023
Business Expo

First
Guaranty Bank
contributions
for community
support
exceeded
$692,789
in 2023.

Banks Headquartered in Louisiana Ranked by Asset Size as of December 31, 2023

Origin Bank

b1Bank

First Guaranty Bank

Home Bank, National Association

Gulf Coast Bank and Trust Company

Red River Bank

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

Synergy Bank

Fidelity Bank

First Federal Bank of Louisiana

Liberty Bank and Trust Company

First National Banker's Bank

Resource Bank

BOM Bank

The Evangeline Bank and Trust Company

Community Bank of Louisiana

Progressive Bank

Century Next Bank

Jonesboro State Bank

Community First Bank

Concordia Bank & Trust Company

United Community Bank

South Louisiana Bank

Home Federal Bank

30 Metairie Bank & Trust Company

Cross Keys Bank

First National Bank of Louisiana

Delta Bank

Homeland Federal Savings Bank

Gibsland Bank & Trust Company

Rayne State Bank & Trust Company

Gulf Coast Bank

Cottonport Bank

The First National Bank of Jeanerette

Fifth District Savings Bank

Citizens Bank & Trust Company

42 Merchants & Farmers Bank & Trust Company

Louisiana National Bank

Farmers-Merchant Bank & Trust Company

45 M C Bank & Trust Company

The Bank

Bank of Zachary

Guaranty Bank & Trust Company of Delhi, Louisiana

First National Bank in Deridder

City Bank & Trust Co.

Southern Heritage Bank

Bank of Commerce & Trust Co.

Lakeside Bank

Patterson State Bank

55 Winnsboro State Bank & Trust Company

Choudrant

Baton Rouge

Hammond

Lafayette

New Orleans

Alexandria

Baton Rouge

Bossier City

Vacherie

New Orleans

Many

Jennings

Houma

New Orleans

Lake Charles

New Orleans

Baton Rouge

Covington

Natchitoches

Ville Platte

Mansfield

Monroe

Ruston

Jonesboro

New Iberia

Vidalia

Raceland

Houma

Shreveport

Metairie

Saint Joseph

Crowley

Vidalia

Columbia

Gibsland

Rayne

Abbeville

Cottonport

Jeanerette

New Orleans

Plaquemine

Leesville

Ruston

Breaux Bridge

Morgan City

Jennings

Zachary

Delhi

Deridder

Jonesville

Crowley

Bank of St. Francisville

Guaranty Bank and Trust Company

American Bank

CLB The Community Bank

Bank of Coushatta

Citizens Savings Bank

62 Washington State Bank

Commercial Capital Bank

St. Landry Bank and Trust Company

Hibernia Bank

Citizens Progressive Bank

Catalyst Bank

American Bank & Trust Company

Caldwell Bank & Trust Company

Franklin State Bank & Trust Company

71 Marion State Bank

Landmark Bank

Simmesport State Bank

First National Bank USA

Plaquemine Bank & Trust Company

Bank of Abbeville & Trust Company

Currency Bank

Bank of Sunset and Trust Company

Citizens Bank & Trust Company

Anthem Bank & Trust

Tensas State Bank

Heritage Bank of St. Tammany

South Lafourche Bank & Trust Company

Farmers State Bank & Trust Co.

Vermilion Bank & Trust Company

Bank of Winnfield & Trust Company

Feliciana Bank & Trust Company

Colfax Banking Company

State Bank & Trust Company

92 Mississippi River Bank

Progressive National Bank

Bank of Erath

Eureka Homestead

Bank of Oak Ridge

Hodge Bank & Trust Company

Bank of Louisiana

Peoples Bank

100 Sicily Island State Bank

101 Beauregard FSB

102 The Bank of Commerce

103 Bank of Gueydan

104 Jackson Parish Bank

74 First Guaranty Bancshares, Inc. Annual Report 2023

Natchitoches

105 Basile State Bank

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

Abbeville

107 Rayne Building and Loan Association

Lake Charles

108 The Mer Rouge State Bank

Patterson

Winnsboro

109 Mutual Savings and Loan Association

Saint Francisville

New Roads

Covington

Jonesville

Coushatta

Bogalusa

Washington

Delhi

Opelousas

New Orleans

Winnsboro

Opelousas

Columbia

Winnsboro

Marion

Clinton

Simmesport

Boutte

Plaquemine

Abbeville

Oak Grove

Sunset

Covington

Plaquemine

Newellton

Covington

Larose

Church Point

Kaplan

Winnfield

Clinton

Colfax

Golden Meadow

Belle Chasse

Mansfield

Erath

Metairie

Oak Ridge

Hodge

New Orleans

Chatham

Sicily Island

Deridder

White Castle

Gueydan

Jonesboro

Basile

Rayne

Mer Rouge

Metairie

Exchange Bank and Trust Company, Natchitoches, Louisiana Natchitoches

Citizens Bank & Trust Company of Vivian, Louisiana

Vivian

FDIC Community Banks in Louisiana Ranked by Asset Size as of December 31, 2023

First Guaranty Bank

Gulf Coast Bank and Trust Company

Red River Bank

Citizens National Bank, N.A.

First American Bank and Trust

Crescent Bank & Trust

Sabine State Bank and Trust Company

JD Bank

Synergy Bank

Fidelity Bank

First Federal Bank of Louisiana

Liberty Bank and Trust Company

Resource Bank

BOM Bank

The Evangeline Bank and Trust Company

Community Bank of Louisiana

Progressive Bank

Century Next Bank

Jonesboro State Bank

Community First Bank

Concordia Bank & Trust Company

United Community Bank

South Louisiana Bank

Home Federal Bank

25 Metairie Bank & Trust Company

Cross Keys Bank

First National Bank of Louisiana

Delta Bank

Homeland Federal Savings Bank

Gibsland Bank & Trust Company

Rayne State Bank & Trust Company

Gulf Coast Bank

Cottonport Bank

The First National Bank of Jeanerette

Fifth District Savings Bank

Citizens Bank & Trust Company

37 Merchants & Farmers Bank & Trust Company

Louisiana National Bank

Farmers-Merchant Bank & Trust Company

40 M C Bank & Trust Company

The Bank

Bank of Zachary

Guaranty Bank & Trust Company of Delhi, Louisiana

First National Bank in Deridder

City Bank & Trust Co.

Southern Heritage Bank

Bank of Commerce & Trust Co.

Lakeside Bank

Patterson State Bank

50 Winnsboro State Bank & Trust Company

Hammond

New Orleans

Alexandria

Bossier City

Vacherie

New Orleans

Many

Jennings

Houma

New Orleans

Lake Charles

New Orleans

Covington

American Bank

CLB The Community Bank

Bank of Coushatta

Citizens Savings Bank

57 Washington State Bank

Commercial Capital Bank

St. Landry Bank and Trust Company

Hibernia Bank

Citizens Progressive Bank

Catalyst Bank

American Bank & Trust Company

Caldwell Bank & Trust Company

Franklin State Bank & Trust Company

Natchitoches

66 Marion State Bank

Landmark Bank

Simmesport State Bank

First National Bank USA

Plaquemine Bank & Trust Company

Bank of Abbeville & Trust Company

Currency Bank

Bank of Sunset and Trust Company

Citizens Bank & Trust Company

Anthem Bank & Trust

Tensas State Bank

Heritage Bank of St. Tammany

South Lafourche Bank & Trust Company

Farmers State Bank & Trust Co.

Vermilion Bank & Trust Company

Bank of Winnfield & Trust Company

Feliciana Bank & Trust Company

Colfax Banking Company

State Bank & Trust Company

87 Mississippi River Bank

Progressive National Bank

Bank of Erath

Eureka Homestead

Bank of Oak Ridge

Hodge Bank & Trust Company

Bank of Louisiana

Peoples Bank

Sicily Island State Bank

Beauregard FSB

The Bank of Commerce

Bank of Gueydan

Jackson Parish Bank

Ville Platte

Mansfield

Monroe

Ruston

Jonesboro

New Iberia

Vidalia

Raceland

Houma

Shreveport

Metairie

Saint Joseph

Crowley

Vidalia

Columbia

Gibsland

Rayne

Abbeville

Cottonport

Jeanerette

New Orleans

Plaquemine

Leesville

Ruston

Breaux Bridge

Morgan City

Jennings

Zachary

Delhi

Deridder

Natchitoches

Jonesville

Crowley

Patterson

Winnsboro

Bank of St. Francisville

Saint Francisville

103 The Mer Rouge State Bank

Guaranty Bank and Trust Company

New Roads

104 Mutual Savings and Loan Association

Lake Charles

100 Basile State Bank

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

Abbeville

102 Rayne Building and Loan Association

Exchange Bank and Trust Company, Natchitoches, Louisiana Natchitoches

Citizens Bank & Trust Company of Vivian, Louisiana

Vivian

Covington

Jonesville

Coushatta

Bogalusa

Washington

Delhi

Opelousas

New Orleans

Winnsboro

Opelousas

Columbia

Winnsboro

Marion

Clinton

Simmesport

Boutte

Plaquemine

Abbeville

Oak Grove

Sunset

Covington

Plaquemine

Newellton

Covington

Larose

Church Point

Kaplan

Winnfield

Clinton

Colfax

Golden Meadow

Belle Chasse

Mansfield

Erath

Metairie

Oak Ridge

Hodge

New Orleans

Chatham

Sicily Island

Deridder

White Castle

Gueydan

Jonesboro

Basile

Rayne

Mer Rouge

Metairie

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 16, 2024 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.

76 First Guaranty Bancshares, Inc. Annual Report 2023

FIRST GUARANTY BANCSHARES, INC. Financial Table of Contents

Management’s Discussion and Analysis
of Financial Condition and Results of Operations ................................... 78

Selected Financial Data ............................................................................. 96

Report of Independent Registered Public Accounting Firm ............... 102

Consolidated Balance Sheets ................................................................. 104

Consolidated Statements of Income ...................................................... 105

Consolidated Statements of Comprehensive Income (Loss) ............... 106

Consolidated Statements of Changes in Shareholders’ Equity ........... 106

Consolidated Statements of Cash Flows ................................................ 108

Notes to Consolidated Financial Statements ......................................... 109

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, 2021 to December 31, 2022 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, 2022, filed with the SEC on March 16, 2023, 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 $3.6 billion at December 31, 2023 and $3.2 billion at
December 31, 2022. Total deposits were $3.0 billion at December 31,
2023 and $2.7 billion at December 31, 2022. Total loans were $2.7
billion at December 31, 2023, an increase of $229.6 million, or 9.1%,
compared with $2.5 billion at December 31, 2022. Total shareholders'
equity was $249.6 million and $235.0 million at December 31, 2023
and December 31, 2022, respectively.

Net income was $9.2 million and $28.9 million for the years ended
December 31, 2023 and 2022, 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. The decrease in net
income was caused principally by a decrease in net interest income of
$15.3 million and an increase in noninterest expense of $8.7 million,
partially offset by a decrease in income tax expense of $4.8 million.

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. 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. As the economy transitioned from
an extended period of historically low interest rates to a period of higher
interest rates in 2022-2023, 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 2023 and 2022:

•

Total assets increased $401.4 million, or 12.7%, to $3.6 billion at
December 31, 2023 when compared with December 31, 2022.
Total loans at December 31, 2023 were $2.7 billion, an increase
of $229.6 million, or 9.1%, compared with December 31, 2022.
Total deposits were $3.0 billion at December 31, 2023, an increase
of $285.3 million, or 10.5% compared with December 31,
2022. Retained earnings were $68.0 million at December 31,
2023, a decrease of $8.4 million compared to $76.4 million at
December 31, 2022. Shareholders' equity was $249.6 million and
$235.0 million at December 31, 2023 and December 31, 2022,
respectively.

• Net income for each of the years ended December 31, 2023 and

2022 was $9.2 million and $28.9 million, respectively.

•

Earnings per common share were $0.62 for the year ended
December 31, 2023 and $2.48 for the year ended December 31,
2022. Total weighted average common shares outstanding
were 11,165,303 and 10,716,796 at December 31, 2023 and
December 31, 2022, respectively.

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, 2023, First Guaranty had
remaining Round 1 PPP loans of $0.1 million and Round 2 PPP
loans of $2.8 million. $16,000 in PPP fees were recognized during
2023 compared to $1.3 million in PPP fees recognized in 2022.

78 First Guaranty Bancshares, Inc. Annual Report 2023

compared to $17.23 as of December 31, 2022. The decrease was
due primarily to a decrease in retained earnings associated with
the adoption of CECL, the recent issuances of new shares, and
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 2023 and 2022. First Guaranty has
paid 122 consecutive quarterly dividends on its common stock as
of December 31, 2023.

First Guaranty paid preferred cash dividends of $2.3 million during
2023 and 2022.

First Guaranty issued $20.0 million of common stock through two
separate private placements during 2023.

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.

•

• 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. On July 10, 2023, First Guaranty, First
Guaranty Bank, and Lone Star entered into a Mutual Termination
Agreement and Release pursuant to which the parties mutually
agreed to terminate the Merger Agreement. First Guaranty
estimates that total costs associated with the Lone Star acquisition
was approximately $0.5 million through December 31, 2023.

• On October 5, 2023, we entered into a Loan Agreement (the “Loan
Agreement”) with Summit Community Bank, Inc. (“Lender”)
pursuant to which Lender made (i) a term loan in the principal
amount of $40.3 million (the “Term Loan”), and (ii) a revolving
line of credit in the maximum principal amount of up to $20.0
million (the “Line of Credit,” and, together with the Term Loan, the
“Loans”). The principal sum outstanding under the Term Loan will
bear interest at a rate equal to the Prime Index Rate as published by
the Wall Street Journal, reset quarterly, minus 0.50% per annum,
with a floor of 4.49% per annum. The principal sum outstanding
under the Line of Credit will bear interest at a rate equal to the
Prime Index Rate as published by the Wall Street Journal, reset
monthly, with a floor of 4.49% per annum. The principal amount
due and payable under the Term Loan will be amortized over a
period of forty (40) quarters and will be in quarterly installments of
principal, plus accrued interest, with the final payment equal to the
then-outstanding principal balance and all accrued and unpaid
interest, penalties and fees due thereon due at maturity of October
5, 2033. Any outstanding amounts under the Line of Credit will
be repaid with monthly installments of interest only, followed by a
final payment equal to the then-outstanding principal balance and
all accrued and unpaid interest, penalties and fees due thereon
at maturity on October 5, 2024, unless renewed. The proceeds of
the Term Loan were used to repay in full all outstanding amounts
under the existing indebtedness from First Horizon Bank (formerly
known as First Tennessee Bank National Association).

•

The allowance for credit losses was 1.13% of total loans at
December 31, 2023 compared to 0.93% at December 31, 2022.
The adoption of the CECL model under ASC 326 was the main
component of the increase.

•

The provision for credit losses totaled $3.7 million for 2023 and
2022.

• Net interest income for 2023 was $84.7 million compared to

$100.0 million for 2022.

• Noninterest income for 2023 was $10.6 million compared

to $11.0 million for 2022.

•

The net interest margin was 2.69% for 2023 and 3.47% for 2022.
First Guaranty attributed the decrease in the net interest margin
to the increase in market interest rates that began in 2022 and
continued through the third quarter of 2023 that increased the
cost of liabilities. Loans as a percentage of average interest earning
assets increased to 82.8% at December 31, 2023 compared to
79.8% at December 31, 2022.

Investment securities totaled $404.1 million at December 31, 2023,
a decrease of $47.4 million when compared to $451.5 million at
December 31, 2022. Losses on the sale of securities were $0 for
2023 as compared to $17,000 for 2022. At December 31, 2023,
available for sale securities, at fair value, totaled $83.5 million, a
decrease of $48.0 million when compared to $131.5 million at
December 31, 2022. At December 31, 2023, held to maturity
securities, at amortized cost and net of the allowance for credit
losses, totaled $320.6 million as compared to $320.1 million at
December 31, 2022. A provision for credit losses on HTM securities
of $0.1 million was recorded in the third quarter of 2023, and the
allowance for credit losses for HTM securities was $0.1 million at
December 31, 2023.

Total loans net of unearned income were $2.7 billion at
December 31, 2023 compared to $2.5 billion at December 31,
2022. Total loans net of unearned income are reduced by
the allowance for credit losses which totaled $30.9 million at
December 31, 2023 and $23.5 million at December 31, 2022.
First Guaranty adopted ASC 326 effective January 1, 2023 and
recorded a cumulative adoption adjustment to the allowance of
$7.1 million.

• Nonaccrual loans increased $11.6 million to $25.2 million at
December 31, 2023 compared to $13.6 million at December 31,
2022.

•

First Guaranty adopted ASU 2016-13, "Financial Instruments
- Credit Losses: Measurement of Credit Losses on Financial
Instruments." (CECL) effective January 1, 2023. The total
adjustment for CECL was $10.0 million which includes $7.0 million
for the ACL, $0.1 million for HTM securities, and $2.9 million for
unfunded loan commitments. The $2.9 million for unfunded loan
commitments is recorded in other liabilities.

• Return on average assets was 0.28% and 0.97% for the years
ended December 31, 2023 and 2022, respectively. Return on
average common equity was 3.36% and 13.64% for 2023 and
2022, 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 $17.36 as of December 31,
2023 compared to $18.84 as of December 31, 2022. Tangible book
value per common share was $16.03 as of December 31, 2023

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 Credit Losses.

The allowance for credit losses is established through a provision for loan
losses charged to expense. Loans are charged against the allowance
for credit losses when management believes that the collectability of
the principal is unlikely. The allowance is based on management’s
evaluation of expected credit losses over the life of the loans in the
portfolio, in accordance with ASC 326. The loan portfolio is divided
into segments to evaluate expected losses. Loans that do not share risk
characteristics with a segment are evaluated individually. Management
estimates the allowance balance using available information such as
past events, current conditions and reasonable forecasts. Adjustments
to historical information are made using qualitative and qualitative
factors developed by management.

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.

The allowance consists of specific, general, and unallocated components.
The specific component relates to loans that are classified as doubtful,
substandard, and individually evaluated for impairment. For such loans
that are also classified as individually evaluated for impairment, an
allowance is established when the discounted cash flows (or collateral
value or observable market price) of the loan is lower than the carrying
value of that loan. 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, 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 credit losses on unfunded commitments represents
expected credit losses over the contractual period for which First
Guaranty is exposed to credit risk from a contractual obligation to
extend credit. No allowance is recorded if there is an unconditional right
to cancel the obligation. The allowance is reported as a component of
Other Liabilities on the Consolidated Balance Sheets. Adjustments to
the allowance for unfunded commitments are included in the provision
for credit losses on the Consolidated Statements of Income.

Financial Condition

Assets.

Our total assets were $3.6 billion at December 31, 2023, an increase
of $401.4 million, or 12.7%, from total assets of $3.2 billion at
December 31, 2022. Assets increased primarily due to increases in net
loans of $222.2 million and cash and cash equivalents of $203.2 million,
partially offset by a decrease in investment securities of $47.4 million
at December 31, 2023 compared to December 31, 2022.

TOTAL ASSETS
In Billions

Loans.

Net loans increased $222.2 million, or 8.9%, to $2.7 billion at
December 31, 2023 from $2.5 billion at December 31, 2022.
Construction and land development loans increased $166.3 million
principally due to advances on existing construction lines and new
originations that was partially offset by the conversion of loans to
permanent financing. Non-farm non-residential
loan balances
increased $52.9 million primarily due to new originations. One-
to four-family loans increased $78.5 million primarily due to new
originations. Farmland loans increased $7.7 million due to increases on
agricultural loan commitments. Consumer and other loans increased
$6.6 million primarily due to new originations. Agricultural loans
increased $2.0 million primarily due to seasonal activity. Multifamily
loans decreased $0.9 million primarily due to pay downs on the existing
multifamily loan portfolio. Commercial lease loan balances decreased
$32.2 million primarily due to pay downs on the existing lease portfolio.
First Guaranty's commercial lease portfolio generally has higher yields
than commercial real estate loans but shorter average lives. Commercial
and industrial loans decreased $50.3 million primarily due to payoffs.
SBA PPP loans totaled $2.8 million at December 31, 2023 compared
to $5.9 million at December 31, 2022. These totals are included in
commercial and industrial loans. Round 1 SBA PPP loans decreased
from $2.0 million at December 31, 2022 to $0.1 million at December 31,
2023 due to SBA loan forgiveness and payments received. Round 2
SBA PPP loans decreased from $3.9 million at December 31, 2022 to
$2.8 million at December 31, 2023 due to SBA loan forgiveness and
payments received. First Guaranty had approximately 2.8% of funded
and 2.0% 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 $182.3 million at
December 31, 2023. As part of the management of risks in our loan

80 First Guaranty Bancshares, Inc. Annual Report 2023

portfolio, First Guaranty had previously established an internal guidance
limit of approximately $200.0 million for its hotel and hospitality
portfolio. First Guaranty had $375.7 million in loans related to our Texas
markets at December 31, 2023 which was an increase of $41.8 million
or 12.5% from $333.8 million at December 31, 2022. First Guaranty
anticipates additional growth opportunities in Texas. First Guaranty had
$278.1 million in loans related to our new Mideast markets in Kentucky
and West Virginia at December 31, 2023 which was an increase of
$67.2 million or 31.8% from $210.9 million at December 31, 2022.
Syndicated loans at December 31, 2023 were $76.7 million, of which
$23.9 million were shared national credits. Syndicated loans decreased
$11.6 million from $88.3 million at December 31, 2022.

As of December 31, 2023, 74.0% of our loan portfolio was secured
by real estate. The largest portion of our loan portfolio, at 37.9% as of
December 31, 2023, was non-farm non-residential loans secured by
real estate. As of December 31, 2023, approximately 45.8% of the loan
portfolio was based on a floating rate tied to the prime rate, the Secured
Overnight Financing Rate ("SOFR") or Treasury rates. 54.5% of the loan
portfolio is scheduled to mature within five years from December 31,
2023. First Guaranty initiated a process to transfer any LIBOR indexed
loans to alternative reference rates such as the prime rate or SOFR as
LIBOR was discontinued for repricings after June 30, 2023.

Commercial real estate (“CRE”) has received increased regulatory
scrutiny in recent quarters due to valuation concerns associated with
the increase in market interest rates and the impact of the COVID-19
pandemic. First Guaranty has utilized enhanced risk management
practices for CRE concentration analysis for several years. First
Guaranty Bank’s credit department conducts an annual stress test for

CRE related loans that is presented to the Bank’s board of directors.
The stress test analyses the impact of changes in interest rates and
cash flow on loan customers with credit exposures of $2.5 million or
greater. First Guaranty generally requires personal guarantees on CRE
loans. First Guaranty generally approves CRE loans with loan-to-values
of 80% or less. First Guaranty also generally requires for construction
related CRE loans that the borrower provides their equity contribution
upfront before loan funds are advanced.

First Guaranty has diversified its CRE portfolio across both industries
and geographic location. The following is a summary of the largest
CRE related loans associated with hotel and motels, office properties,
apartment complexes, healthcare related properties, and properties
under construction as of December 31, 2023. The largest CRE loan
secured by a hotel or motel totaled $21.1 million. The property is a
flagged hotel located in Texas. The largest CRE loan secured by an
office related property totaled $21.7 million and is located in West
Virginia. The largest CRE loan secured by an apartment complex
totaled $25.9 million and is located in Texas. The largest healthcare
related loan is a $17.7 million property secured by an assisted living
center located in Louisiana. The largest CRE loan under construction
totaled $37.9 million for an apartment complex and is secured by a
property located in Louisiana.

Loan Portfolio Maturities.

The following tables summarize the scheduled repayments of our loan portfolio at December 31, 2023. 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, 2023

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

$ 63,230 $ 134,139 $ 110,357 $ 91,709 $ 399,435

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

2,467

24,666

4,596

117,559

212,518

14,739

59,614

71,908

10,940

157,201

7,639

39,977

28,257

428,913

638,925

6,554

254,436

207,205

37,113

505,308

2,689

44,447

23,927

145,871

327,291

8,738

14,665

6,302

6,077

35,782

19,735

335,760

62,141

353,522

862,867

10,977

6,257

355

17,589

32,530

444,850

118,921

1,045,865

2,041,601

41,008

334,972

285,415

54,485

715,880

Total Loans Before Unearned Income

$ 369,719 $ 1,144,233 $ 363,073 $ 880,456

$ 2,757,481

Less: Unearned Income

Total Loans Net Of Unearned Income

(8,773 )

$ 2,748,708

The following table sets forth the scheduled repayments of fixed and
adjustable-rate loans at December 31, 2023 that are contractually due
after December 31, 2023.

Due After December 31, 2023

(in thousands)

Fixed

Floating

Total

One year or less

$ 268,864 $ 88,884 $ 357,748

One to five years

782,754

357,981

1,140,735

Over five to 15 years

Over 15 years

Subtotal

Nonaccrual loans

Total

88,490

334,337

269,918

541,066

358,408

875,403

$ 1,474,445 $ 1,257,849 $ 2,732,294

25,187

$ 2,757,481

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.

82 First Guaranty Bancshares, Inc. Annual Report 2023

The following table shows the principal amounts and categories of our non-performing assets at December 31, 2023 and 2022.

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

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

December 31,

2023

2022

(in thousands)

$ 530

$ 225

836

6,985

537

9,740
18,628

1,369

1,581

1,799
1,810
6,559
25,187

-
-
124
-
14,711
14,835

290

3,826

3,746
8,087

1,622

819

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

427
-
332
157
103
1,019

57
395
-
-
452
15,287
$ 40,474

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

251
-
309
-
690
1,250

-
-
113
-
-
113

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,

2023

2022

(in thousands)

-
-
-
-
-
1,250
$ 41,724

-
-
-
-
-
113
$ 14,821

1.52%
1.17%
1.47%
0.92%
122.79%

0.59%
0.47%
0.58%
0.54%
173.36%

For the years ended December 31, 2023 and 2022, gross interest
income which would have been recorded had the non-performing
loans been current in accordance with their original terms amounted to
$1.2 million and $0.5 million, respectively. We recognized $0.3 million
and $0.2 million of interest income on such loans during the years
ended December 31, 2023 and 2022, respectively. For the years ended
December 31, 2023 and 2022, 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
$0.1 million, respectively. We recognized $0.1 million and $0.1 million
of interest income on such loans during the years ended December 31,
2023 and 2022, respectively.

Non-performing assets were $41.7 million, or 1.17%, of total assets
at December 31, 2023, compared to $14.8 million, or 0.47%, of total
assets at December 31, 2022, which represented an increase in non-
performing assets of $26.9 million. The increase in non-performing
assets occurred primarily due to an increase in nonaccrual loans, 90
days or greater delinquent and still accruing, and other real estate
owned. Nonperforming loans included loans previously classified as
purchase credit deteriorated following the adoption of CECL.

Nonaccrual loans increased from $13.6 million at December 31, 2022
to $25.2 million at December 31, 2023. The increase in nonaccrual
loans was concentrated primarily in non-farm non-residential, one- to
four-family, commercial and industrial, and consumer and other loans.
Non-performing assets included $1.9 million in loans with a government
guarantee, or 4.45% of non-performing assets. These are structured as
net loss guarantees in which up to 90% of loss exposure is covered.

At December 31, 2023 loans 90 days and greater delinquent and still
accruing totaled $15.3 million, an increase of $14.1 million or 1,238.6%
from $1.1 million at December 31, 2022. The increase in loans 90 days
or greater delinquent and still accruing was concentrated primarily in
non-farm non-residential, commercial and industrial, and agricultural
loans.

Other real estate owned at December 31, 2023 totaled $1.3 million, an
increase of $1.1 million from $0.1 million at December 31, 2022. The
increase was primarily due to the addition of a $0.8 million non-farm
non-residential property during the first quarter of 2023. This property
was related to a loan that was on nonaccrual status at December 31,
2022.

At December 31, 2023, our largest non-performing assets were
comprised of the following nonaccrual loans and 90 days or greater
delinquent and still accruing loans: (1) a non-farm non-residential loan
that totaled $13.6 million; (2) a non-farm non-residential loan that
totaled $4.7 million; (3) a $2.1 million loan relationship that is classified
as purchased credit deteriorated; (4) a commercial lease loan that
totaled $1.8 million; and (5) a non-farm non-residential loan secured
by a mobile home facility that totaled $1.3 million.

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
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

84 First Guaranty Bancshares, Inc. Annual Report 2023

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 increase in classified assets at December 31, 2023 as compared
to December 31, 2022 was due to a $45.6 million increase in
substandard loans and a $1.6 million increase in doubtful loans.
The increase in substandard loans was primarily the result of the
downgrade of one real estate secured loan relationship in the second
quarter of 2023 with an aggregate principal balance of $36.5 million
as of December 31, 2023. The loans are secured by shopping centers.
While the loans are over collateralized based upon recent appraisals
totaling $47.4 million, there is no certainty that the Bank will receive
full repayment upon liquidation should that become necessary. The
increase in doubtful loans was primarily the result of the downgrade
of several loan relationships from substandard to doubtful. Special
mention loans increased by $28.4 million in 2023. The increase in
special mention loans was primarily the result of the downgrade of
one commercial real estate loan from pass status to special mention
totaling $15.0 million and the downgrade of one commercial lease loan
relationship from pass status to special mention totaling $13.0 million.

Allowance for Credit Losses.

First Guaranty adopted FASB ASC Topic 326 “Financial Instruments –
Credit Losses: Measurement of Credit Losses on Financial Instruments”
Update No. 2016-13 (“ASU 2016-13”). ASU 2016-13 on January 1,
2023. ASU 2016-13, referred to as the Current Expected Credit Loss
(“CECL”) standard, requires financial assets measured on an amortized
cost basis, including loans and held to maturity debt securities, to be
presented at an amount net of an allowance for credit losses, which
reflects expected losses for the full life of the financial asset. Unfunded
lending commitments are also within the scope of this topic. Under
prior GAAP losses were not recognized until the occurrence of the
loss was probable. See Recent Accounting Pronouncements for more
information on the adoption of ASC 326.

The allowance for credit losses on loans is maintained to absorb expected
losses over the life of the loans 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
expected 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;

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, or collateral dependent. For such
loans that are also classified as collateral dependent, an allowance
is established when the collateral value is lower than the carrying
value of that loan. 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 balance in the allowance for credit losses is principally influenced
by the provision for loan losses, recoveries, and by net loan loss
experience. Additions to the allowance are charged to the provision
for credit 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 allowance for credit losses was $30.9 million at December 31,
to $23.5 million at December 31, 2022.
2023 compared

The balance in the allowance for credit 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 credit 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 credit losses
for the years indicated. As previously disclosed, the adoption of the CECL model in ASC 326 was the cause of most of the increase in the allowance.

Balance at beginning of year

ASC 326 Adoption Day 1 Adjustment

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

86 First Guaranty Bancshares, Inc. Annual Report 2023

At or For the Years Ended December 31,

2023

2022

(dollars in thousands)

23,518

8,120

(964)

(138)

(1,102)

(1,694)

(2,975)

(4,669)

(5,771)

230

330

414

205

426

1,045

1,375

(4,396)

3,684

24,029

(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

$ 30,926

$ 23,518

0.17%

0.16%

1.13%

14.21%

119.33%

0.18%

0.17%

0.93%

17.72%

113.98%

• Commercial and industrial loans decreased during 2023. The
allowance increase related to this portfolio was due to the adoption
of the CECL methodology.

• Commercial leases decreased during 2023. The allowance
decrease related to this portfolio was due to the reduction in this
portfolio and due to changes in the qualitative analysis of the
portfolio. Commercial leases declined during 2023 from $317.6
million at December 31, 2022 to $285.4 million at December 31,
2023.

• Consumer and other loans increased during 2023. The decrease
in the related loan loss allowance balance was due primarily to
qualitative analysis, charge-offs on consumer loans and the
adoption of the CECL methodology.

First Guaranty charged off $5.8 million in loan balances during the
year ended December 31, 2023 as compared to $6.1 million for 2022.
Recoveries totaled $1.4 million for the year ended December 31,
2023 and $1.9 million during 2022. The details of the $5.8 million in
charged-off loans were as follows:

1. First Guaranty charged off $0.3 million in consumer loans related to
Hurricane Ida relief loans during 2023. 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 $0.8 million on a real estate secured loan
in the fourth quarter of 2023. This loan had no remaining principal
balance at December 31, 2023. This loan was previously acquired
in the 2019 Union Bancshares acquisition.

3. First Guaranty charged off $0.3 million on a commercial and industrial
loan during the fourth quarter of 2023. This loan had no remaining
principal balance at December 31, 2023.

4. Smaller loans and overdrawn deposit accounts comprised the
remaining $4.4 million of charge-offs for 2023. These charge offs
were concentrated in equipment, vehicle, and unsecured loans.

TOTAL LOANS
In Millions

A provision for credit losses of $3.7 million was made during each of
the years ended December 31, 2023 and 2022. The provisions made in
2023 included a $0.1 million negative provision for credit losses related
to unfunded commitments and a $0.1 million provision for credit losses
on HTM securities. The provisions made were taken to provide for
current credit losses and to maintain the allowance proportionate to
risks inherent in the loan portfolio.

The loan portfolio factors in 2023 that primarily affected the allocation
of the allowance included the following:

•

The adoption of the CECL methodology under ASU 2016-13 was
the largest contributor to changes in both the size and allocation
of the allowance for credit losses. First Guaranty also made
adjustments of certain qualitative factors to take into account
the current estimated impact of COVID-19, 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 individually evaluated for impairment loans within
their respective categories.

• Construction and land development loans increased during 2023
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, 2023. The allowance increase
related to this portfolio was due to growth in the portfolio along with
changes in the qualitative analysis of the portfolio and the adoption
of CECL.

• One-to-four family residential loans increased during 2023. The
allowance increase related to this portfolio was due to changes in
the qualitative analysis of the portfolio, portfolio growth, and also
the adoption of CECL.

• Multifamily loans decreased during 2023. The allowance related

to this portfolio increased due primarily to the adoption of CECL.

• Non-farm non-residential loans increased during 2023. The
allowance increase related to this portfolio was due primarily to
growth in the portfolio and also to the adoption of CECL.

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.

2023

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)

2022

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

$ 5,845

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

Unallocated

Total Allowance

6,653

1,614

10,596

2,711

1,948

1,426

18.9%

0.1%

21.5%

5.2%

34.3%

0.3%

8.8%

6.3%

4.6%

$ 30,926

100.0%

14.5%

1.2%

16.1%

4.3%

37.9%

1.5%

12.1%

10.4%

2.0%

100.0%

$ 1,232

1,761

746

9,280

240

2,194

4,879

2,506

597

$ 23,518

5.2%

0.4%

7.5%

3.2%

39.5%

1.0%

9.3%

20.7%

10.7%

2.5%

100.0%

9.2%

1.0%

14.5%

4.7%

39.3%

1.5%

15.3%

12.6%

1.9%

100.0%

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

December 31, 2023

December 31, 2022

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

$ 7

$ 333,107

$ 275

$ 203,364

0.1%

Farmland

1- 4 family

Multifamily

Non-farm non-residential

Non-Real Estate:

Agricultural

Commercial and industrial

Commercial leases

Consumer and other

(871)

414

(1,489)

(2,549)

29,089

414,007

120,522

1,037,722

44,308

343,041

290,559

49,370

(0.2)%

0.9%

(0.4)%

(5.2)%

(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)%

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

88 First Guaranty Bancshares, Inc. Annual Report 2023

Investment Securities.

Investment securities at December 31, 2023 totaled $404.1 million, a decrease of $47.4 million, or 10.5%, compared to $451.5 million at
December 31, 2022. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). The securities designated as
held to maturity are agency and corporate debt securities that are part of First Guaranty’s investment strategy and public funds collateralization
program. 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, 2023, the U.S. Government and Government agency securities and municipal bonds qualified as securities available to
collateralize public funds. Securities pledged as collateral totaled $192.2 million at December 31, 2023 and $260.8 million at December 31, 2022.
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 $83.5 million at December 31, 2023, a decrease of $48.0 million, or 36.5%, compared to
$131.5 million at December 31, 2022. The decrease was primarily due to the maturity of U.S. Treasury securities.

Our held to maturity securities portfolio had an amortized cost of $320.6 million, net of allowance at December 31, 2023, compared to $320.1 million
at December 31, 2022.

There were no credit related impairment of available for sale securities during 2023. An allowance for credit losses of $0.1 million for held to
maturity securities was recorded upon the adoption of ASC 326. There was one charge-off, net of recovery of $0.1 million recognized on a
corporate security classed as held to maturity during 2023. There was a provision of $0.1 million was recorded in the third quarter of 2023. The
allowance for credit losses for held to maturity securities was $0.1 million at December 31, 2023.

The following tables set forth the stated maturities and weighted average yields of our investment securities at December 31, 2023.

At December 31, 2023

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 %)

$ 49,830

1.0%

$ -

15,474

5.4%

$ -

807

3.4%

2,763

3.6%

3,290

4.3%

6.321 3.5%

3.4%

5.4%

4,995 5.0%

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

Total available for sale securities

$ 50,637

1.0%

$ 2,764

3.6%

$ 18,768 5.2%

$ 11,316

4.2%

Held to maturity:

U.S. Government Agencies

Corporate debt securities

Total held to maturity securities

$ -

$ 62,756

2.3%

$ 203,140 2.5%

$ 2,004

3.1%

$ 52,818

3.2%

$ -

$ 2,004

3.1%

$115,574 2.7%

$ 203,140 2.5%

At December 31, 2023, $50.6 million, or 12.5%, 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 $209.5 million, or
51.8%, of the total portfolio at December 31, 2023. 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, 2022 to December 31, 2023, total deposits increased
$285.3 million, or 10.5%, to $3.0 billion. Noninterest-bearing demand deposits decreased $81.7 million, or 15.6% to $442.8 million at
December 31, 2023. The decrease in noninterest-bearing demand deposits was primarily due to increased competition in the marketplace for
interest bearing deposits. Interest-bearing demand deposits increased $66.4 million, or 4.5%, to $1.5 billion at December 31, 2023. The increase
in interest-bearing demand deposits was primarily concentrated in public funds interest-bearing demand deposits. Savings deposits increased
$13.2 million, or 6.4%, to $219.0 million at December 31, 2023, primarily related to increases in business and individual savings deposits. Time
deposits increased $287.4 million, or 53.9%, to $820.7 million at December 31, 2023, primarily due to increases in consumer and business time
deposits along with increased brokered time deposits of approximately $175.6 million. These new brokered time deposits had maturities of two
and three years. The proceeds from the new deposits were used to reduce short-term FHLB borrowings.

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.

At December 31, 2023, public funds deposits totaled $1.2 billion compared to $1.1 billion at December 31, 2022. Public funds time deposits
totaled $50.9 million at December 31, 2023 compared to $32.4 million at December 31, 2022. 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 $591.7 million at December 31, 2023 compared to $576.3 million at December 31, 2022.

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, 2023, the aggregate amount of outstanding
certificates of deposit in amounts greater than or equal to $250,000 was
approximately $196.9 million. At December 31, 2023, approximately
$34.6 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 $302.6 million at December 31, 2023. This total excludes
public funds deposits that are collateralized by securities or FHLB letters
of credit. The amount of uninsured deposits including collateralized
public funds deposits was estimated at $880.6 million at December
31, 2023.

December 31,

2023

2022

(in thousands except for %)

$ 6,471
1,090,527
46,606
50,934
$ 1,194,538
$ 3,009,094

$ 11,730
1,022,760
46,354
32,427
$ 1,113,271
$ 2,723,792

39.7%

40.9%

The following table sets forth the maturity of certificates of deposits
greater than $250,000 at December 31, 2023.

December 31, 2023

(in thousands)

Three months or less
Three to six months
Six months to one year
One to three years
More than three years
Total certificates of deposit greater
than $250,000

$ 76,884
27,222
39,559
19,612
4,105

$ 167,382

90 First Guaranty Bancshares, Inc. Annual Report 2023

TOTAL DEPOSITS
In Millions

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 $66.3 million in
short-term borrowings outstanding at December 31, 2023 compared
to $146.4 million outstanding at December 31, 2022. The short-term
borrowings at December 31, 2023 were comprised of short-term
Federal Home Loan Bank advances of $50.0 million, a line of credit
of $20.0 million with an outstanding balance of $10.0 million and
repurchase agreements of $6.3 million. The short-term borrowings
outstanding at December 31, 2022 were comprised of $120.0 million
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. First Guaranty had
available lines of credit of $20.0 million, with $10.0 million outstanding
at December 31, 2023. A net availability of $10.0 million remained.

First Guaranty had long-term borrowings from the FHLB that totaled
$155.0 million at December 31, 2023. First Guaranty converted
previous short-term floating rate borrowings from the FHLB into long-
term lower fixed rate borrowings in order to reduce interest expense.
First Guaranty has a $20.0 million FHLB advance that matures in the
first quarter of 2025, a $100.0 million FHLB advance that matures in
the second quarter of 2027, and $35.0 million FHLB advance that
matures in the third quarter of 2027.

At December 31, 2023, we had $513.3 million in FHLB letters of
credit outstanding obtained primarily for collateralizing public deposits
compared to $388.6 million at December 31, 2022.

First Guaranty had senior long-term debt totaling $39.1 million at
December 31, 2023 and $21.9 million at December 31, 2022. The
change in senior long-term debt occurred when First Guaranty
refinanced its outstanding balance on a revolving line of credit into a
long term credit facility in October 2023.

First Guaranty also had subordinated debt totaling $15.0 million at
December 31, 2023 and $15.0 million at December 31, 2022.

Shareholders' Equity

Total shareholders' equity increased to $249.6 million at December 31,
2023 from $235.0 million at December 31, 2022. The increase in

shareholders' equity was principally the result of an increase of $19.0
million in surplus and a $2.3 million decrease in accumulated other
comprehensive loss, partially offset by a decrease of $8.4 million in
retained earnings. The $19.0 million increase in surplus was due to
common stock issued in private placements and common stock
issued under the Equity Bonus Plan during 2023. The decrease in
accumulated other comprehensive loss was primarily attributed to the
decrease in unrealized losses on available for sale securities during the
year ended December 31, 2023. The $8.4 million decrease in retained
earnings was primarily due to the adoption of CECL which had a $7.9
million after tax reduction to retained earnings, $7.4 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, partially offset by net
income of $9.2 million during the year ended December 31, 2023.

Results of Operations
A discussion regarding significant changes in our financial condition
from December 31, 2021 to December 31, 2022 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, 2022, filed with the SEC on March 16, 2023,
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, 2023 compared with year ended
December 31, 2022. Net income for the year ended December 31,
2023 was $9.2 million, a decrease of $19.7 million, or 68.1%, as
compared to $28.9 million for the year ended December 31, 2022.
The decrease in net income of $19.7 million for the year ended
December 31, 2023 was the result of several factors. First Guaranty
experienced an increase in interest income. This increased income was
offset by an increase in interest expense, an increase in the provision
for credit losses, a decrease in noninterest income, and an increase in
noninterest expense. Loan interest income increased due to the growth
in First Guaranty's loan portfolio and repricing of existing loans to higher
market rates, including loan fees recognized as an adjustment to yield.
Securities interest income increased due to an increase in the average
yield of the investment portfolio. Factors that 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 changes within the portfolio. Noninterest income decreased
primarily due a decrease on the sale of loans. Noninterest expense
increased primarily due to increased personnel expenses, legal and
professional fees, software expense, regulatory assessment, and data
processing expenses. Earnings per common share for the years ended
December 31, 2023 was $0.62 per common share, a decrease of
75.0% or $1.86 per common share from $2.48 per common share for
the year ended December 31, 2022.

Net Interest Income

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, SOFR 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 and
2023 due to the impact of inflation and the Federal Reserve's 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.

Treasury securities that matured in 2023. The average balance of
securities decreased $36.7 million to $415.5 million for the year
ended December 31, 2023 from $452.2 million for the year ended
December 31, 2022 primarily due to a decrease in the average balance
of our U.S. Treasuries securities portfolio compared to the prior year.

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, 2023 compared with year ended
December 31, 2022. Net interest income for the years ended
December 31, 2023 and 2022 was $84.7 million and $100.0 million,
respectively. The decrease in net interest income for the year ended
December 31, 2023 as compared to the prior year was primarily due
to 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, partially offset by 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. For the year ended December 31, 2023,
the average balance of our total interest-bearing liabilities increased by
$320.8 million to $2.5 billion due to growth in interest-bearing deposits
and borrowings. The average rate of our total interest-bearing liabilities
increased by 224 basis points to 3.90% from 1.66% for the year ended
2022. The rise in market interest rates, particularly associated with
Treasury rates, contributed to the increase in our liabilities cost. The
primary source of the increase in liabilities cost was associated with
interest bearing demand deposits for public funds that are primarily
indexed to Treasury rates. For the year ended December 31, 2023,
the average balance of our total interest-earning assets increased by
$267.2 million to $3.1 billion due to an improved mix of higher yielding
assets. The average yield of our interest-earning assets increased by 107
basis points to 5.81% from 4.74% for the year ended December 31,
2022 due to an improved mix of higher yielding assets. As a result,
our net interest rate spread decreased 117 basis points to 1.91% for
the year ended December 31, 2023 from 3.08% for the year ended
December 31, 2022. Our net interest margin decreased 78 basis points
to 2.69% for the year ended December 31, 2023 from 3.47% for the
year ended December 31, 2022.

Interest Income

Year ended December 31, 2023 compared with year ended
December 31, 2022. Interest income increased $46.4 million, or
34.0%, to $183.0 million for the year ended December 31, 2023 as
compared to the prior year. First Guaranty's loan portfolio expanded
during 2023 due to growth associated with our loan originations and
existing loans repriced to higher market rates. 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 $267.2 million to
$3.1 billion for the year ended December 31, 2023 as compared to
the prior year. The average yield of interest-earning assets increased
by 107 basis points to 5.81% for the year ended December 31, 2023
compared to 4.74% for the year ended December 31, 2022.

Interest income on securities increased $0.4 million to $9.6 million
for the year ended December 31, 2023 as compared to the prior year
primarily as a result of an increase in average yield of securities. The
average yield on securities increased by 26 basis points to 2.31%
for the year ended December 31, 2023 from 2.05% for the year
ended December 31, 2022 due to the decrease in lower yielding

Interest income on loans increased $41.1 million, or 32.6%, to
$167.1 million for the year ended December 31, 2023 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
$308.8 million to $2.6 billion for the year ended December 31, 2023
from $2.3 billion for the year ended December 31, 2022 as a result
of new loan originations. The average yield on loans (excluding loans
held for sale) increased by 93 basis points to 6.41% for the year ended
December 31, 2023 from 5.48% for the year ended December 31,
2022 due to the improved mix of loans along with an increase in market
interest rates.

Interest Expense

Year ended December 31, 2023 compared with year ended
December 31, 2022. Interest expense increased $61.8 million, or
169.1%, to $98.3 million for the year ended December 31, 2023 from
$36.5 million for the year ended December 31, 2022 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 259 basis points during
the year ended December 31, 2023 to 4.16% as compared to 1.57%
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. The largest concentration of interest-bearing
demand deposits is associated with public funds deposits that are
primarily indexed to Treasury rates. Treasury rates increased as the
Federal Reserve increased rates to address increased inflation in
the U.S. economy. The average rate of time deposits increased 163
basis points during the year ended December 31, 2023 to 3.58% as
compared to 1.95% for the prior year. The increase in the average rate of
time deposits was due to changes in market rates. The average balance
of interest-bearing liabilities increased by $320.8 million during the year
ended December 31, 2023 to $2.5 billion. This increase was a result
of a $86.2 million increase in the average balance of interest-bearing
demand deposits, a $0.7 million increase in the average balance of
savings deposits, a $122.9 million increase in the average balance of
time deposits, and a $111.1 million increase 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.

92 First Guaranty Bancshares, Inc. Annual Report 2023

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, 2023

December 31, 2022

Average
Balance

Interest

Yield/
Rate

Average
Balance

(in thousands, except for %)

Interest

Yield/
Rate

$ 125,417
415,504
374
-
2,607,074
3,148,369

6,268
9,601
-
-
167,140
183,009

5.00%
2.31%
-%
-%
6.41%
5.81%

$ 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%

18,729
61,733
27,514
$3,256,345

$ 1,448,597
213,025
669,661
187,019
2,518,302

481,456
18,672
3,018,430

237,915
$3,256,345

$ 630,067

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

60,243
3,554
23,967
10,540
98,304

4.16%
1.67%
3.58%
5.64%
3.90%

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

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

1.57%
0.43%
1.95%
4.63%
1.66%

552,786
9,669
2,759,918

227,769
$ 2,987,687

$ 84,705

$100,042

$ 683,685

1.91%

2.69%

125.02%

3.08%

3.47%

131.11%

(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 2.69% and 3.48% for the years ended December 31, 2023 and 2022. A 21% tax rate was used to
calculate the effect on securities income from tax exempt securities for the years ended December 31, 2023 and 2022.
(6) Includes loan fees of $6.0 million and $7.8 million for the years ended December 31, 2023 and 2022. PPP loan fee income of $16,000 and $1.3 million was
recognized for the years ended December 31, 2023 and 2022, respectively.

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, 2023 vs. 2022

Increase (Decrease) Due To

Volume

Rate

Increase/Decrease

(in thousands except for %)

$ (52)

$ 4,996

$ 4,944

(788)

18,198

17,358

1,437

2,825

6,115

10,380

1,139

22,940

29,075

37,387

2,636

10,460

907

51,390

351

41,138

46,433

38,824

2,639

13,285

7,022

61,770

Change in net interest income

$ 6,978

$ (22,315)

$ (15,337)

Provision for Credit and Loan Losses

A provision for credit and loan losses is a charge to income in an amount
that management believes is necessary to maintain an adequate
allowance for credit losses. The allowance for credit losses is calculated
under ASC 326 and is management's evaluation of expected credit
losses over the life of the loans in the portfolio. 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. Past events, current conditions, and reasonable
forecasts, along with quantitative and qualitative adjustments, are
used in calculating the allowance for credit losses. This evaluation is
inherently subjective as it requires estimates that are susceptible to
significant revision as more information becomes available or as future
events change.

We recorded a $3.7 million provision for credit losses for the year
ended December 31, 2023 compared to $3.7 million for 2022. The
$3.7 million provision included a $0.1 million negative provision for
credit losses related to unfunded commitments and a $0.1 million
provision for credit losses on HTM securities. Total charge-offs were
$5.8 million for year ended December 31, 2023 and $6.1 million for
2022. Charge-offs for 2023 were concentrated in consumer relief loans
associated with Hurricane Ida, a non-farm non-residential loan, and a

commercial and industrial loan. Hurricane Ida consumer relief loans
charge-offs totaled $0.3 million during 2023. Partially offsetting these
charge-offs were recoveries that totaled $1.4 million for the year ended
December 31, 2023 and $1.9 million for the same period in 2022.

We believe that the allowance is adequate to cover expected losses
in the loan portfolio. Economic uncertainty may result in additional
increases to the allowance for credit losses in future periods.

Noninterest Income

Our primary sources of recurring noninterest income are customer
service fees, ATM and debit card fees, loan fees, gains on the sales
of loans and available for sale securities and other service fees.
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 $10.6 million
December 31, 2023, a decrease of $0.4 million from $11.0 million for
the year ended December 31, 2022. The decrease was primarily due to
reduced gains on the sale of loans. Net securities losses were $0 for the
year ended December 31, 2023 as compared to net securities losses
of $17,000 for 2022. Service charges, commissions and fees totaled
$3.4 million for the year ended December 31, 2023 as compared to
$3.2 million for 2022. ATM and debit card fees totaled $3.2 million for
the year ended December 31, 2023 and $3.4 million for 2022. Net gains

94 First Guaranty Bancshares, Inc. Annual Report 2023

on the sale of loans were $12,000 for the year ended December 31,
2023 and $1.8 million for 2022. Other noninterest income totaled
$3.9 million and $2.7 million for the years ended December 31, 2023
and 2022, respectively.

Noninterest Expense

Noninterest expense includes salaries and employee benefits, occupancy
and equipment expense and other types of expenses. Noninterest
expense totaled $79.7 million for the year ended December 31, 2023
and $71.0 million for the year ended December 31, 2022. Salaries and
benefits expense totaled $40.4 million for the year ended December 31,
2023 and $36.7 million for the year ended December 31, 2022. The

increase was primarily due to the increase in personnel expense from
new hires. Occupancy and equipment expense totaled $9.0 million for
the year ended December 31, 2023 and $8.9 million for the year ended
December 31, 2022. Other noninterest expense totaled $30.2 million
for the year ended December 31, 2023 and $25.4 million for 2022.
The largest increase in other noninterest expense was a $1.5 million
increase in legal fees, which incluced a $0.6 million settlement payment
to the SEC and legal fees related to the propesed merger with Lone Star
Bank. Regulatory assessments increased $1.1 million to $3.1 million in
2023, compared to $2.0 million in 2022.

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

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 and the statutory tax rate. The
provision for income taxes for the years ended December 31, 2023
and 2022 was $2.7 million and $7.5 million, respectively. The
provision for income taxes in 2023 decreased as compared to 2022
due to the decrease in income before income taxes. First Guaranty's
statutory tax rate was 21.0% for the years ended December 31, 2023
and 2022.

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.

December 31, 2023

December 31, 2022

(in thousands)

$ 5,709

$ 4,159

2,100

1,804

1,927

2,263

778

5,282

1,362

382

696

595

157

3,136

4,032

1,596

1,750

1,747

1,949

728

4,191

1,236

406

696

638

393

1,997

3,888

$ 30,223

$ 25,374

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 and 2023
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.

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

Net interest margin

Average loans to average deposits

Efficiency ratio(2)

At or For the Years Ended December 31,

2023

2022

2021

2020

2019

(in thousands except for %)

404,123

$ 451,526

$ 364,156

341

423

183

238,548

702

426,516

914

$ 2,748,708

$ 2,519,077

$2,159,359

$ 1,844,135

$ 1,525,490

30,926

23,518

24,029

24,518

10,929

$ 3,552,772

$ 3,151,347

$ 2,878,120

$ 2,473,078

$ 2,117,216

$ 3,009,094

$ 2,723,792

$2,596,492

$ 2,166,318

$ 1,853,013

275,396

$ 183,369

49,635

249,631

$ 234,991

$ 223,889

216,573

$ 201,933

$ 190,831

116,630

178,591

86,747

166,035

0.28%

3.36%

0.30%

3.98%

2.69%

92.69%

83.62%

0.97%

13.64%

0.99%

15.31%

3.47%

85.94%

63.94%

1.01%

14.06%

1.04%

15.98%

3.44%

83.65%

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%

Efficiency ratio (excluding amortization of intagibles and

securities transactions)(2)

82.89%

63.30%

63.32%

68.44%

66.77%

Full time equivalent employees (year end)

491

472

470

429

431

(Footnotes on page 98.)

96 First Guaranty Bancshares, Inc. Annual Report 2023

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,

2023

2022

2021

2020

2019

(in thousands except for % and share data)

7.31%

6.82%

6.10%

5.65%

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%

183,009

98,304

84,705

3,714

10,577

79,672

11,896

9,219

6,890

0.62

0.64

17.36

16.03

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

(157)

47,219

17,897

14,241

1.34

0.54

15.49

13.68

Dividend payout ratio for Common and Preferred

105.20%

31.81%

28.49%

30.68%

40.74%

Weighted average number of shares outstanding

11,165,303

10,716,796

10,666,055

Number of shares outstanding

12,475,424

10,716,796

Asset Quality Ratios:

Non-performing assets to total assets

Non-performing assets to total loans

Non-performing loans to total loans

Loan loss reserve to non-performing assets

Net charge-offs to average loans

Provision for loan and lease loss to average loans

Allowance for loan and lease loss to total loans

1.17%

1.52%

1.47%

0.47%

0.59%

0.58%

0.70%

0.93%

0.83%

1.25%

1.68%

1.55%

1.04%

1.44%

1.12%

74.12%

158.68%

119.95%

79.33%

49.86%

0.17%

0.14%

1.13%

0.18%

0.16%

0.93%

0.13%

0.10%

1.11%

0.08%

0.89%

1.33%

0.36%

0.37%

0.72%

(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

Other 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

Other intangibles

Tangible Assets

At December 31,

2023

2022

2021

2020

2019

(in thousands except for share data and %)

249,631

234,991

223,889

178,591

166,035

33,058

12,900

3,658

100

33,058

12,900

4,355

33,058

12,900

5,051

12,900

5,815

12,942

6,527

199,915

184,678

172,880

12,475,424

10,716,796

17.36

16.03

18.84

17.23

17.81

16.13

159,876

146,566

10,716,796

16.66

14.92

15.49

13.68

$ 3,552,772

$ 3,151,347

$ 2,878,120

$ 2,473,078

$ 2,117,216

12,900

3,658

100

12,900

4,355

12,900

5,051

12,900

5,815

12,942

6,527

$ 3,536,114

$ 3,134,092

$ 2,860,169

$ 2,454,363

$ 2,097,747

Tangible common equity to tangible assets

5.65%

5.89%

6.04%

6.51%

6.99%

98 First Guaranty Bancshares, Inc. Annual Report 2023

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,

2023

2022

2021

2020

2019

(in thousands except for share data and %)

83.62%

63.94%

63.63%

58.95%

67.48%

79,672

71,005

63,868

58,033

47,219

696

78,976

70,309

84,705

100,042

10,577

11,009

764

63,104

89,618

10,760

711

57,322

74,667

23,780

390

46,829

61,677

8,299

(17)

714

14,691

(157)

Noninterest income, excluding securities transactions

10,577

11,026

10,046

9,089

8,456

Efficiency ratio

82.89%

63.30%

63.32%

68.44%

66.77%

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 $286.5 million
at December 31, 2023 compared to $83.2 million at December 31,
2022. Loans maturing within one year or less at December 31, 2023
totaled $357.7 million compared to $372.1 million at December 31,
2022. At December 31, 2023, time deposits maturing within one
year or less totaled $503.7 million compared to $312.9 million at
December 31, 2022. Time deposits maturing after one year through
three years totaled $214.0 million at December 31, 2023 compared
to $183.0 million at December 31, 2022. Time deposits maturing after
three years totaled $103.0 million at December 31, 2023 compared
to $37.4 million at December 31, 2022. First Guaranty's held to
maturity ("HTM") investment securities portfolio at December 31, 2023
was $320.6 million or 79.3% of the investment portfolio compared to
$320.1 million at December 31, 2022. First Guaranty's available for
sale ("AFS") portfolio was $83.5 million, or 20.7% of the investment
portfolio at December 31, 2023 compared to $131.5 million, or 29.1%
at December 31, 2022. 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 $259.6
million and $369.5 million at December 31, 2023 and December 31,
2022, respectively with $205.0 million and $120.0 million in FHLB
advances outstanding at December 31, 2023 and December 31,
2022, respectively. The advances outstanding at December 31, 2023
were comprised of three long-term advances totaling $155.0 million

and two short-term advances that totaled $50.0 million. 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, 2023, we had outstanding letters of credit from
the FHLB in the amount of $513.3 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 one revolving line of credit totaling $20.0 million
secured by a pledge of the Bank's common stock, with a $10.0 million
outstanding balance at December 31, 2023. We also have a discount
window line with the Federal Reserve Bank that totaled $219.1 million
at December 31, 2023. 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.

Total shareholders' equity increased to $249.6 million at December 31,
2023 from $235.0 million at December 31, 2022. The increase in
shareholders' equity was principally the result of an increase of $19.0
million in surplus and a $2.3 million decrease in accumulated other
comprehensive loss, partially offset by a decrease of $8.4 million in
retained earnings. The $19.0 million increase in surplus was due
to common stock issued in private placements and common stock
issued under the Equity Bonus Plan during 2023. The decrease in
accumulated other comprehensive loss was primarily attributed to the
decrease in unrealized losses on available for sale securities during the
year ended December 31, 2023. The $8.4 million decrease in retained
earnings was primarily due to the adoption of CECL which had a $7.9
million after tax reduction to retained earnings, $7.4 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, partially offset by
net income of $9.2 million during the year ended December 31, 2023.

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, 2023, First Guaranty Bank was classified as well-capitalized. First
Guaranty Bank's capital conservation buffer was 3.20% at December 31, 2023.

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

"Well Capitalized
Minimums"

At December 31, 2023

"Well Capitalized
Minimums"

At December 31, 2022

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%

8.94%

10.31%

11.20%

10.31%

5.00%

8.00%

10.00%

6.50%

9.35%

10.31%

11.16%

10.31%

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, 2023 and 2022 are as follows:

December 31, 2023

December 31, 2022

(in thousands)

$ 304,218

$ 214,546

$ 13,971

$ 246,968

$ 253,906

$ 14,222

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, 2023 and 2022. The reserve for credit losses on
unfunded commitments was $2.8 million at December 31, 2023.

Contract Amount

Commitments to Extend Credit

Unfunded Commitments under lines of credit

Commercial and Standby letters of credit

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, 2023, the largest concentrations of unfunded
commitments were lines of credit associated with construction and land
development loans and commercial and industrial loans.

Commercial and standby letters of credit are conditional commitments
to guarantee the performance of a customer to a third party. These

100 First Guaranty Bancshares, Inc. Annual Report 2023

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, 2023 illustrated
below reflects a liability-sensitive position with a negative cumulative gap on a one-year basis.

December 31, 2023

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)

$ 681,614

$ 327,423

$ 1,009,037

$ 1,739,671

$ 2,748,708

63,574

341

273,237

453

64,027

341

273,237

353,486

417,513

341

273,237

$ 1,018,766

$ 327,876

$ 1,346,642

$ 2,093,157

$ 3,439,799

$ 1,526,628

$ -

$ 1,526,628

$ -

$ 1,526,628

218,986

220,856

60,000

39,099

15,000

282,798

218,986

503,654

60,000

39,099

15,000

317,071

6,115

155,000

598,246

218,986

820,725

66,115

194,099

15,000

598,246

$ 2,080,569

$ 282,798

$ 2,363,367

$ 1,076,432

$ 3,439,799

$ (1,061,803)

$ 45,078

$(1,016,725)

$ 1,016,725

$ (1,061,803)

$ (1,016,725)

$(1,016,725)

$ -

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

(30.9)%

(29.6)%

101

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 sheets of First Guaranty Bancshares, Inc. and Subsidiary (First Guaranty) as of December
31, 2023 and 2022, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of
the years in the two-year period ended December 31, 2023, and the related notes collectively referred to as the financial statements. We also have
audited First Guaranty’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

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 year
ended December 31, 2022, and the related notes collectively referred to as the financial
statements. We also have audited First Guaranty’s internal control over financial reporting as of
December 31, 2022, based on criteria established in Internal Control—Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).

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, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the two-year period ended December
31, 2023, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, First Guaranty
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in
Internal Control—Integrated Framework (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
and its cash flows for the year ended December 31, 2022, in conformity with accounting principles
generally accepted in the United States of America. Also, in our opinion, First Guaranty
maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2022, based on criteria established in Internal Control—Integrated Framework
(2013) issued by COSO.

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 internal control over financial reporting included in the accompanying Management’s Annual Report on
Internal Control over Financial Reporting. Our responsibility is to express an opinion on First Guaranty’s financial statements and 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 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 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.

Basis for Opinion

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 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 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
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable
basis for our opinions.

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
internal control over financial reporting included in the accompanying Management’s Annual
Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion
on First Guaranty’s financial statements and 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 in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A
company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance 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 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.

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.

Definition and Limitations of Internal Control over Financial Reporting

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.

102 First Guaranty Bancshares, Inc. Annual Report 2023

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements
and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters 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 below, providing
separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for Credit Losses

As described in Notes 1, 5 and 6 to the financial statements, at December 31, 2023, First Guaranty’s total loans were $2.7 billion and the associated
allowance for credit losses balance was $30.9 million. The allowance for credit losses is management’s evaluation of expected credit losses over
the life of the loans in the portfolio in accordance with Accounting Standards Codification ASC 326: Financial Instruments – Credit Losses.
The Company uses the discounted cash flow method to estimate expected losses for all of the Company’s loan segments that exhibit similar
risk characteristics and loans that do not share risk characteristics are evaluated on an individual basis. For each loan segment, the Company
generates cash flow projections at the instrument level adjusting payment expectations for estimated prepayment speed, curtailments, time to
recovery, probability of default and loss given default. Additional qualitative adjustments are applied for risk factors that are not considered within
the modeling process but are relevant in assessing the expected credit losses within the loan segments. Consideration is given to the following
factors: changes in lending policies, procedures and strategies; changes in nature and volume of the portfolio; staff experience; changes in volume
and trends in classified loans, delinquencies and nonaccruals; concentration risk; trends in underlying collateral values; external factors such as
competition, legal and regulatory environment; changes in the quality of the loan review system; and economic conditions.

Auditing management’s estimate of the allowances for loan credit losses, and more specifically the qualitative factor adjustments applied in the
ACL, is a critical audit matter. The principal consideration for our determination of the critical audit matter is a high degree of subjectivity of
the assumptions utilized in calculating the qualitative reserve component within the model. Furthermore, certain inputs and assumptions lack
observable data and, therefore, applying audit procedures required a higher degree of auditor judgement and subjectivity due to the nature and
extent of audit evidence and effort required to address this matter.

The primary procedures we performed to address the critical audit matter included:

• Obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the reliability and accuracy of
data used to calculate and estimate the various components of the ACL including:

Loan data completeness and accuracy,

◦
◦ Grouping of loans by segment,
◦ Model inputs utilized,
◦ Approval of model assumptions selected, and
◦ Qualitative factors have been appropriately identified, are adequately supported, and accurately applied.

• Evaluated and tested the data and inputs utilized within the ACL calculation for completeness and accuracy including mathematical
accuracy of the calculation.

• Evaluated the qualitative factors for appropriate identification and application including reasonableness of the basis for adjustment.

• Analyzed the total qualitative factor adjustment applied to each loan segment, in comparison to changes in the Company’s quantitatively
driven expected credit losses and loan segments and evaluated the appropriateness of the total qualitative factor adjustments applied in
the overall allowance.

We have served as First Guaranty's auditor since 2022.

Ashland, Kentucky
March 15, 2024

103

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 and net of allowance for credit losses of $80 and $0 (estimated
fair value of $253,584 and $242,560, respectively)
Investment securities

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

Loans, net of unearned income
Less: allowance for credit 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 12,475,424 and
10,716,796 shares issued and outstanding
Surplus
Retained earnings
Accumulated other comprehensive (loss) income
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity

See Notes to the Consolidated Financial Statements.

104 First Guaranty Bancshares, Inc. Annual Report 2023

December 31, 2023

December 31, 2022

(in thousands, except share data)

$ 286,114
341
286,455

$ 82,796
423
83,219

83,485

320,638

404,123

13,390
-

2,748,708
30,926
2,717,782

131,458

320,068

451,526

6,528
-

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

69,792
12,900
4,298
1,250
15,713
27,069
$ 3,552,772

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

$ 442,755
1,526,628
218,986
820,725
3,009,094

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

50,000

10,000

6,297
11,807
155,000
39,099
15,000
6,844
3,303,141

120,000

20,000

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

$ 33,058

12,475

10,717

149,085
67,972
(12,959)
249,631
$ 3,552,772

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

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 credit losses

Net Interest Income after Provision for Credit Losses

Noninterest Income:
Service charges, commissions and fees
ATM and debit card fees
Net gains (losses) 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,
2022
2023

(in thousands, except share data)

$ 167,140
6,268
9,601
-
183,009

60,243
3,554
23,967
10,540
98,304

84,705
3,714
80,991

3,401
3,242
-
12
3,922
10,577

40,422
9,027
30,223
79,672

11,896
2,677
9,219
2,329

$ 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

Net Income Available to Common Shareholders

$ 6,890

$ 26,556

Per Common Share:
Earnings
Cash dividends paid

$ 0.62
$ 0.64

$ 2.48
$ 0.64

Weighted Average Common Shares Outstanding

11,165,303

10,716,796

See Notes to Consolidated Financial Statements

105

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

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

Change in unrealized gains (losses) on securities
Tax impact

Other comprehensive income (loss)

Comprehensive Income

See Notes to Consolidated Financial Statements

Years Ended December 31,
2022
2023

(in thousands)

9,219

$ 28,884

2,872
-
2,872
(603)
2,269

(10,897)
17
(10,880)
2,285
(8,595)

$ 11,488

$ 20,289

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

Balance December 31, 2021

Net income

Other comprehensive income (loss)

Preferred stock dividends

Cash dividends on common stock ($0.16 per share)

Balance March 31, 2022

Net income

Other comprehensive income (loss)

Preferred stock dividends

Cash dividends on common stock ($0.16 per share)

Balance June 30, 2022

Net income

Other comprehensive income (loss)

Preferred stock dividends

Cash dividends on common stock ($0.16 per share)

Balance September 30, 2022

Net income

Other comprehensive income

Preferred stock dividends

Cash dividends on common stock ($0.16 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)

$ 33,058

$ 10,717

$ 130,093

$ 56,654

$ (6,633 )

$ 223,889

7,585

(7,425 )

(582 )

(1,715 )

7,585

(7,425 )

(582)

(1,715)

$ 33,058

$ 10,717

$ 130,093

$ 61,942

$ (14,058 ) $ 221,752

8,124

(1,043 )

(582 )

(1,715 )

8,124

(1,043)

(582)

(1,715)

$ 33,058

$ 10,717

$ 130,093

$ 67,769

$ (15,101) $ 226,536

8,053

(582)

(1,714 )

(855)

8,053

(855)

(582)

(1,714)

$ 33,058

$ 10,717

$ 130,093

$ 73,526

$ (15,956 ) $ 231,438

5,122

(582)

(1,715 )

728

5,122

728

(582)

(1,715)

Balance December 31, 2022

$ 33,058

$ 10,717

$ 130,093

$ 76,351

$ (15,228 ) $ 234,991

See Notes to Consolidated Financial Statements.

106 First Guaranty Bancshares, Inc. Annual Report 2023

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

Balance December 31, 2022

Net income

Cumulative effect of adoption of ASC Topic 326,
net of tax

Other comprehensive income

Preferred stock dividends

Cash dividends on common stock ($0.16 per share)

Balance March 31, 2023

Net income

Common stock issued in private placement, 714,287
shares

Other comprehensive income (loss)

Preferred stock dividends

Preferred
Stock
$1,000 Par

Common
Stock
$1 Par

Surplus

Retained
Earnings

Accumulated
Other
Comprehensive
Income/(Loss)

Total

(in thousands, except share data)

$ 33,058

$ 10,717

$ 130,093

$ 76,351

$ (15,228 )

$ 234,991

3,468

(7,900)

(582)

(1,715 )

414

3,468

(7,900 )

414

(582)

(1,715)

$ 33,058

$ 10,717

$ 130,093

$ 69,622

$ (14,814 ) $ 228,676

2,676

714

9,286

(582 )

(84 )

2,676

10,000

(84)

(582)

Cash dividends on common stock ($0.16 per share)

(1,829)

Balance June 30, 2023

Net income

Other comprehensive income

Preferred stock dividends

$ 33,058

$ 11,431

$ 139,379

$ 69,887

$ (14,898) $ 238,857

1,772

(582)

605

1,772

605

(582)

Cash dividends on common stock ($0.16 per share)

(1,830)

Balance September 30, 2023

Net income

Common stock issued in private placement,
1,000,000 shares
Common stock issued under Equity Bonus Plan,
44,341 shares

Other comprehensive income

Preferred stock dividends

$ 33,058

$ 11,431

$ 139,379

$ 69,247

$ (14,293) $ 238,822

1,303

1,000

9,000

706

(582)

1,334

1,303

10,000

750

1,334

(582)

Cash dividends on common stock ($0.16 per share)

(1,996)

Balance December 31, 2023

$ 33,058

$ 12,475

$ 149,085

$ 67,972

$ (12,959 ) $ 249,631

See Notes to Consolidated Financial Statements.

107

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
Proceeds from maturities and calls of HTM securities
Proceeds from sale/redemption of Federal Home Loan Bank stock
Funds invested in Federal Home Loan Bank stock
Funds invested in intangibles
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
Proceeds of long-term borrowings, net of costs
Repayment of long-term borrowings
Common stock issued in private placement
Dividends paid on preferred stock
Dividends paid common stock
Net Cash Provided By Financing Activities

Net Increase (Decrease) 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
Common stock issued for stock grants

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

See Notes to the Consolidated Financial Statements.

108 First Guaranty Bancshares, Inc. Annual Report 2023

Years Ended December 31,

2023

2022

(in thousands)

$ 9,219

$ 28,884

3,714
4,026
987
-
(35 )
150
(358 )
4,011
21,714

51,406
(2,626 )
289
2,425
(8,929 )
(100 )
(234,123 )
(14,855 )
324
101
(206,088 )

285,302
(80,145 )
195,097
(22,946 )
20,000
(2,328 )
(7,370 )
387,610

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

203,236
83,219
$ 286,455

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

$ 1,388
$ -
$ 750

$ 558
$ 176,181
$ -

$ 90,786
$ 3,100
$ 330

$ 36,725
$ 7,600
$ 20

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-nine 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.

On January 1, 2023 the Bank adopted ASC 326, which requires
expected credit related losses on available for sale debt securities to
be recorded through an allowance for credit losses, while non-credit
related losses or declines in fair value continue to be recognized
through other comprehensive income. Under the new guidance, First
Guaranty is also required to evaluate held to maturity debt securities for
expected credit losses.

Management evaluates securities for impairment at least on a quarterly
basis, and more frequently when economic or market conditions warrant
such an evaluation. In estimating losses, management considers the
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 an allowance for
credit losses. For debt securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as
follows: 1) impairment related to credit loss, which must be recognized
in the income statement and 2) impairment 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 but cannot be
more than the difference between amortized cost and the fair value of
the security.

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

109

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

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
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.

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 credit losses

110 First Guaranty Bancshares, Inc. Annual Report 2023

value or observable market price) of the loan is lower than the carrying
value of that loan. 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, 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.

Off-balance sheet financial instruments

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
2019. 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.

111

Earnings per common share

represents

income available

Earnings per share
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

ASU 2016-13 also amended the accounting model for purchased
financial assets and replaced the guidance for purchased credit impaired
(“PCI”) financial assets with the concept of PCDs. For PCD assets, the
CECL estimate is recognized through the allowance for credit losses
with an offset to the amortized cost basis of the PCD asset at the date
of acquisition. Subsequent changes in the allowance for credit losses
for PCD assets are recognized through a provision for credit losses on
loans. First Guaranty used the prospective transition approach for PCD
loans that were previously classified as PCI and accounted for under
ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated
Credit Quality” (“ASC 310-30”). First Guaranty determined that certain
PCI assets no longer met meet the criteria of PCD assets as of the date
of adoption.

First Guaranty adopted ASU 2016-13 on January 1, 2023, and recorded
a one-time, cumulative effect adjustment as shown in the table below
(dollars in thousands).

December 31,
2022

Impact
of ASU
2016-13

January 1,
2023

(in thousands)

Certain reclassifications have been made to prior year end financial
statements in order to conform to the classification adopted for
reporting in 2023.

Assets:

Note 2. Recent Accounting Pronouncements

Allowance for credit losses

$ (23,518) $ (8,220) $ (31,738)

Accounting Standards Adopted in 2023

First Guaranty adopted FASB ASC Topic 326 “Financial Instruments –
Credit Losses: Measurement of Credit Losses on Financial Instruments”
Update No. 2016-13 (“ASU 2016-13”). ASU 2016-13 on January 1,
2023. ASU 2016-13, referred to as the Current Expected Credit Loss
(“CECL”) standard, requires financial assets measured on an amortized
cost basis, including loans and held-to-maturity debt securities, to be
presented at an amount net of an allowance for credit losses, which
reflects expected losses for the full life of the financial asset. Unfunded
lending commitments are also within the scope of this topic. Under
prior GAAP losses were not recognized until the occurrence of the loss
was probable.

CECL requires the measurement of all expected credit losses for
financial assets held at the reporting date based on historical experience,
current conditions, and reasonable and supportable forecasts and
requires enhanced disclosures related to the significant estimates and
judgments used in estimating credit losses, as well as the credit quality
and underwriting standards of an organization’s portfolio. The CECL
methodology requires that lifetime expected credit losses be recorded
at the time the financial asset is originated or acquired, and be adjusted
each period as a provision for credit losses for changes in expected
lifetime credit losses. ASU 2016-13 does not specify the method for
measuring expected credit losses, and an entity is allowed to apply
methods that reasonably reflect its expectations of the lifetime credit
loss estimate. First Guaranty developed a CECL model methodology
that calculates expected credit losses over the life of the portfolio by
analyzing the composition, characteristics and quality of the loan and
securities portfolios, as well as prevailing economic conditions and
forecasts. First Guaranty’s CECL calculation estimates loan losses using
a combination of discounted cash flow and remaining life analyses.

First Guaranty adopted ASU 2016-13 using the modified retrospective
approach for all loans and off-balance sheet credit exposures measured
at amortized cost, other than purchased credit deteriorated (“PCD”)
financial assets. Results for reporting periods beginning after December
31, 2022 are presented in accordance with ASU 2016-13 while prior
period amounts continue to be reported in accordance with previously
applicable GAAP.

Deferred tax asset

Remaining purchase
discount on loans

Liabilities:

Reserve for unfunded loan
commitments

Stockholder's Equity:

Retained earnings

6,420

2,100

8,520

(1,120)

1,120

(2,900)

76,351

(7,900)

68,451

In addition, ASU 2016-13 amends the accounting for credit losses on
available for sale (“AFS”) securities, requiring expected credit losses on
AFS securities to be recorded in an allowance for credit losses rather
than as a write-down of the securities’ amortized cost. Declines in the
fair value of AFS securities that are not considered credit related are
recognized in accumulated other comprehensive income. In addition,
expected credit losses on held to maturity (“HTM”) securities are
required to be recorded in an allowance for credit losses rather than
as a write-down of the securities’ amortized cost basis. First Guaranty’s
AFS securities portfolio was not materially impacted by the adoption of
ASC 326. A $100,000 allowance for HTM securities was recorded at
the adoption of ASC 326.

The allowance for credit losses is measured on a pool basis when
similar risk characteristics exist and is maintained at an amount which
management believes is a current estimate of the expected credit
losses for the full life of the relevant pool of loans and related unfunded
lending commitments. For modeling purposes, loan pools include: Real
Estate based pools for construction and land development, farmland,
1-4 family residential, multifamily, and non-farm non-residential and
non-real-estate pools for agricultural, commercial and industrial,
commercial leases and consumer and other. Management periodically
reassesses each pool to confirm the loans within the pool continue to
share similar characteristics and risk profiles and to determine whether
further segmentation is necessary. The loss rates computed for each
pool and expected pool-level funding rates are applied to the related
unfunded lending commitments to calculate an allowance for credit
losses.

112 First Guaranty Bancshares, Inc. Annual Report 2023

Loans that do not share similar risk characteristics with other loans are excluded from the loan pools and individually evaluated for impairment.
Individually evaluated loans are loans for which it is probable that all the amounts due under the contractual terms of the loan will not be collected.

FASB ASC Topic 326 “Financial Instruments – Credit Losses, Troubled Debt Restructurings and Vintage Disclosures” Update No. 2022-02 (“ASU
2022-02”). ASU 2022-02 became effective for First Guaranty on January 1, 2023 and is applied prospectively. ASU 2022-02 amends Topic 326
to eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted ASU 2016-13 and, instead, requires
that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendment also requires that
public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases.
The adoption of ASU 2022-02 did not have a material impact on First Guaranty’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

ASU No. 2023-09, "Improvements to Tax Disclosures" ("ASU 2023-09") is intended to enhance the transparency and decision usefulness of
income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual
periods beginning after December 15, 2024, though early adoption is permitted. We do not expect it to have a material effect on First Guaranty's
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, 2023 and
2022. At December 31, 2023 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 $1.2 million. 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.

Note 4. Securities
A summary comparison of securities by type at December 31, 2023 and 2022 is shown below.

December 31, 2023

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

December 31, 2022

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair Value

Amortized
Cost

(in thousands)

$ 50,048

$ -

$ (218) $ 49,830

$ 100,642

$ -

$ (2,142) $ 98,500

16,750

13,522

5,144

(1,279)

(372)

(144)

15,474

13,181

5,000

16,750

14,742

2,711

(752)

(426)

(98)

15,998

14,347

2,613

Available for sale:

U.S. Treasuries

U.S. Government Agencies

Corporate debt securities

Municipal bonds

Mortgage-backed securities

Total available for sale securities

$ 85,464

$ 34

$ (2,013) $ 83,485

$ 134,845

$ 31

$ (3,418) $ 131,458

Held to maturity:

U.S. Government Agencies

Corporate debt securities

$ 265,896

$ -

$(61,532) $ 204,364

$ 265,032

$ -

$(69,503) $ 195,529

54,822

(5,602)

49,220

55,036

(8,005)

47,031

Total held to maturity securities

$ 320,718

$ -

$(67,134) $ 253,584

$ 320,068

$ -

$ (77,508) $ 242,560

113

The scheduled maturities of securities at December 31, 2023, 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, 2023

Amortized Cost

Fair Value

(in thousands)

$ 50,858

$ 50,637

2,784

20,041

6,637

80,320

5,144

2,762

18,764

6,322

78,485

5,000

$ 85,464

$ 83,485

$ -

2,004

115,574

203,140

1,865

100,500

151,219

Total held to maturity securities

$ 320,718

$ 253,584

At December 31, 2023 and 2022 the carrying value of pledged securities totaled $192.2 million and $260.8 million, respectively.

Accrued interest receivable on First Guaranty's investment securities was $1.8 million and $2.0 million at December 31, 2023 and 2022,
respectively, and was included in accrued interest receivable on the consolidated balance sheet. First Guaranty had a $0.1 million allowance for
credit losses related to the held to maturity portfolio at December 31, 2023.

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, 2023.

Less Than 12 Months

December 31, 2023

12 Months or More

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities

$ -

3,417

2,606

(6)

(21)

$ 6,023

$ (27)

$ -

(in thousands)

$ 49,830

$ (218)

14,471

(1,279)

5,895

2,394

(366)

(123)

$ 72,590

$ (1,986)

$204,364

$ (61,532)

49,220

(5,602)

$253,584

$(67,134)

Total

Fair
Value

Gross
Unrealized
Losses

$ 49,830

$ (218)

14,471

(1,279 )

9,312

5,000

(372)

(144)

$ 78,613

$ (2,013)

$204,364

$ (61,532)

49,220

(5,602 )

$253,584

$(67,134)

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

114 First Guaranty Bancshares, Inc. Annual Report 2023

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

Total

Number
of

Securities

Fair
Value

Gross
Unrealized
Losses

Number
of

Securities Fair Value

Gross
Unrealized
Losses

Number
of

Securities 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

U.S. Government Agencies

Corporate debt securities

Total held to maturity
securities

$ -

14,628

5,854

2,608

(622)

(394)

(98)

$ 98,500

$ (2,142)

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)

$ 98,500

$ (2,142)

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)

As of December 31, 2023, 164 of First Guaranty's debt securities had gross unrealized losses totaling 17.2% of the individual securities' amortized
cost basis and 17.0% of First Guaranty's total amortized cost basis of the investment securities portfolio. 150 of the 164 securities had been in
a continuous loss position for over 12 months at such date. The 150 securities had an aggregate amortized cost basis of $395.3 million and an
unrealized loss of $69.1 million at December 31, 2023. Management has the intent and ability to hold these debt securities until maturity or until
anticipated recovery.

115

Securities are evaluated for impairment from credit losses at least
quarterly and more frequently when economic or market conditions
warrant such evaluation. Consideration is given to (i) 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 credit impaired. First
Guaranty has the ability and intent to hold these securities until recovery,
which may not be until maturity.

There was one charge-off, net of recovery, of $0.1 million recognized on
a corporate security during the year ended December 31, 2023. There
was a $0.1 million provision for credit losses recognized on securities
during the year ended December 31, 2023.

Gross realized gains on sales of securities were $0 and $0.1 million
for the years ended December 31, 2023 and 2022, respectively.
Gross realized losses were $0 and $0.1 million for the years ended
December 31, 2023 and 2022. The tax applicable to these transactions
amounted to $0 and $3,000 for 2023 and 2022, respectively. Proceeds
from sales of securities classified as available for sale amounted to $0
and $3.1 million for the years ended December 31, 2023 and 2022,
respectively.

Net unrealized losses on available for sale securities included in
accumulated other comprehensive income (loss) ("AOCI"), net of
applicable income taxes, totaled $13.0 million and $15.2 million at
December 31, 2023 and 2022. During 2023 net gains, net of tax,
reclassified out of AOCI into earnings totaled $0. During 2022 net
gains, net of tax, reclassified out of AOCI into earnings totaled $13,000.

At December 31, 2023, First Guaranty's exposure to investment
securities issuers that exceeded 10% of shareholders' equity was as
follows:

December 31, 2023

Amortized
Cost

Fair Value

(in thousands)

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

$ 50,048

$ 49,830

Federal Home Loan Bank (FHLB)

Federal Home Loan Mortgage
Corporation (Freddie Mac-FHLMC)

Federal Fam Credit Bank (FFCB)

Total

32,196

26,109

97,488

138,730

69,941

110,707

$ 318,462

$ 256,587

Note 5. Loans
The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2023 and December 31, 2022:

December 31,

2023

2022

Balance

As % of Category

Balance

As % of Category

(in thousands, except for %)

Real Estate:

Construction & land development

$ 399,435

14.5%

$ 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

32,530

444,850

118,921

1,045,865

2,041,601

41,008

334,972

285,415

54,485

715,880

2,757,481

(8,773)

1.2%

16.1%

4.3%

37.9%

74.0%

1.5%

12.1%

10.4%

2.0%

26.0%

100.0%

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%

Total Loans Net of Unearned Income

$ 2,748,708

$ 2,519,077

(1) Includes PPP loans fully guaranteed by the SBA of $2.8 million and $5.9 million at December 31, 2023 and December 31, 2022, respectively.

116 First Guaranty Bancshares, Inc. Annual Report 2023

Accrued interest receivable on First Guaranty's loans totaled $13.9 million and $11.0 million at December 31, 2023 and December 31, 2022,
respectively, and is included in accrued interest receivable on the consolidated balance sheet. Accrued interest receivable is excluded from First
Guaranty's estimate of the allowance for credit losses.

The following table summarizes fixed and floating rate loans by contractual maturity, excluding nonaccrual loans, as of December 31, 2023 and
December 31, 2022 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.

2023

December 31,

(in thousands)

2022

Fixed

Floating

Total

Fixed

Floating

Total

$ 268,864

$ 88,884

$ 357,748

$ 234,921

$ 137,203

$ 372,124

782,754

88,490

357,981

1,140,735

269,918

358,408

875,403

900,960

114,425

339,894

216,251

261,209

308,291

1,240,854

330,676

569,500

334,337

541,066

$ 1,474,445

$ 1,257,849

2,732,294

$ 1,511,515

$ 1,001,639

2,513,154

25,187

2,757,481

(8,773)

$ 2,748,708

13,566

2,526,720

(7,643)

$ 2,519,077

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.

117

The following tables present the age analysis of past due loans at December 31, 2023 and December 31, 2022:

As of December 31, 2023

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

$ 1,281

$ 530

$ 1,811

$ 397,624

$ 399,435 $ -

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

3,929

824

1,020

7,151

240

2,483

1,037

3,760

836

7,109

537

24,451

33,463

1,426

1,976

1,799

1,810

7,011

933

11,038

1,361

25,471

40,614

1,666

4,459

1,799

2,847

10,771

31,597

433,812

117,560

32,530

444,850

118,921

1,020,394

1,045,865

2,000,987

2,041,601

39,342

330,513

283,616

51,638

705,109

41,008

334,972

285,415

54,485

715,880

124

14,711

14,835

395

452

Total Loans Before Unearned Income

$ 10,911

$ 40,474

$ 51,385

$2,706,096

2,757,481

$ 15,287

Unearned income

Total Loans Net of Unearned Income

(8,773)

$ 2,748,708

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

The tables above include $25.2 million and $13.6 million of nonaccrual loans for December 31, 2023 and 2022, respectively. See the tables below
for more detail on nonaccrual loans.

118 First Guaranty Bancshares, Inc. Annual Report 2023

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

As of December 31, 2023

With Related
Allowance

Without Related
Allowance

Total

(in thousands)

Real Estate:

Construction & land development

$ 530

$ -

$ 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

511

5,417

8,730

15,188

399

1,581

1,810

3,790

325

1,568

537

1.010

3,440

970

1,799

2,769

836

6,985

537

9,740

18,628

1,369

1,581

1,799

1,810

6,559

$ 18,978

$ 6,209

$ 25,187

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 Nonaccrual Loans

As of December
31, 2022

Total

(in thousands)

$ 225

290

3,826

3,746

8,087

1,622

819

1,799

1,239

5,479

$ 13,566

119

The following table presents First Guaranty's loan portfolio by credit quality classification and origination year as of the date indicated:

2023

2022

2021

2020

2019

Prior

Revolving
Loans

Total

As of December 31, 2023

(in thousands)

Real Estate:

Construction & land development

Pass

Special Mention

Substandard

Doubtful

Total Construction & land
development

Current period gross charge-offs

Farmland

Pass

Special Mention

Substandard

Doubtful

Total Farmland

$ 134,527

$ 140,068

$ 75,884 $ 3,369

$ 8,533

$ 11,940

$ 18,907

$ 393,228

789

1,579

716

170

458

263

250

1,668

2,878

3,199

130

135,316

142,402

76,603

3,632

8,717

13,858

18,907

399,435

9,513

4,032

3,340

1,768

194

251

514

1,369

3,877

9,513

4,477

4,709

6,159

253

115

368

2,730

2,162

23,798

359

653

3,742

1,355

3,562

1,067

7,620

32,530

Current period gross charge-offs

1- 4 family

Pass

Special Mention

Substandard

Doubtful

Total 1- 4 family

112,636

110,978

70,599

41,766

19,542

47,374

17,215

420,110

1,307

2,505

2,625

122

749

5,368

391

1,544

1,357

775

1,956

239

997

3,086

159

667

773

8,544

15,213

983

113,991

116,230

77,107

44,667

22,512

51,616

18,727

444,850

Current period gross charge-offs

964

Multifamily

Pass

Special Mention

Substandard

Doubtful

Total 1- 4 Multifamily

9,945

76,217

6,121

15,131

1,877

2,311

1,648

537

5,110

116,712

1,672

537

9,945

76,217

6,121

15,131

1,877

4,496

5,134

118,921

Current period gross charge-offs

Non-farm non-residential

Pass

Special Mention

Substandard

Doubtful

162,234

247,182

111,054

88,039

73,797

256,032

33,907

972,245

708

247

369

1,014

388

15,846

18,930

18,488

5,191

6,125

1,525

4,723

25,041

48,513

Total non-farm non-residential

163,189

266,481

130,556

88,493

89,643

267,348

40,155

1,045,865

Current period gross charge-offs

138

Total Real Estate

431,954

605,807

295,096

158,082

123,117

341,060

86,485

2,041,601

120 First Guaranty Bancshares, Inc. Annual Report 2023

2023

2022

2021

2020

2019

Prior

Revolving
Loans

Total

As of December 31, 2023

(in thousands)

2,555

10,406

3,142

1,336

1,532

2,378

16,259

37,608

104

692

279

2,555

10,510

3,834

1,696

1,552

2,100

4,520

210

3,148

16,341

41,008

41,105

27,800

48,097

53,585

5,613

27,634

119,886

323,720

283

4,382

178

146

602

4,531

162

598

145

5,279

5,811

162

41,213

28,120

52,657

54,333

5,640

32,380

120,629

334,972

791

133

532

209

74,456

117,566

11,867

1,799

67,615

1,597

6,087

4,428

74,456

131,232

69,212

6,087

4,428

1,694

270,152

13,464

1,799

285,415

21,257

164

21,457

598

8,770

151

1,077

9,998

1,126

6,463

6,164

650

7,887

150

51,341

255

790

7,542

820

265

6,595

359

753

7,990

150

563

2,450

131

54,485

2,975

139,681

179,860

133,245

68,711

12,373

44,890

137,120

715,880

568,228

743,019

392,315

217,245

116,225

358,286

213,596

2,608,914

2,903

504

16,806

25,681

161

8,167

27,343

516

2,760

6,643

145

16,726

2,298

241

8,517

18,768

379

2,839

7,053

117

58,718

88,290

1,559

Non-Real Estate:

Agricultural

Pass

Special Mention

Substandard

Doubtful

Total Agricultural

Current period gross charge-offs

Commercial and industrial

Pass

Special Mention

Substandard

Doubtful

Total Commercial and industrial

Current period gross charge-offs

Commercial leases

Pass

Special Mention

Substandard

Doubtful

Total Commercial leases

Current period gross charge-offs

Consumer and other loans

Pass

Special Mention

Substandard

Doubtful

Total Consumer and other loans

Current period gross charge-offs

Total Non-Real Estate

Total Loans

Pass

Special Mention

Substandard

Doubtful

Total Loans Before Unearned Income

$571,635

$785,667

$428,341

$226,793

$135,490

$385,950

$223,605

$ 2,757,481

Unearned income

Total Loans Net of Unearned Income

(8,773)

$ 2,748,708

Total Current Period Gross Charge-offs

$ 627

$ 1,917

$ 953 $ 1,029

$ 28

$ 1,217

$ -

$ 5,771

121

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 date indicated:

As of December 31, 2022

Pass

Special
Mention

Substandard

Doubtful

Total

(in thousands)

Real Estate:

Construction & land development

$ 229,416

$ 2,846

$ 829

$ -

$ 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

19,722

347,842

117,081

968,861

1,682,922

34,827

374,947

315,775

45,225

770,774

8,667

444

15,071

27,063

198

2,016

1,031

3,245

5,066

9,821

2,260

8,997

26,973

4,020

8,316

1,799

1,608

15,743

24,823

366,330

119,785

992,929

1,736,958

39,045

385,279

317,574

47,864

789,762

Total Loans Before Unearned Income

$ 2,453,696

$ 30,308

$ 42,716

$ -

2,526,720

Unearned Income

Total Loans Net of Unearned Income

Purchased Credit Deteriorated Loans

(7,643)

$ 2,519,077

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.

Real Estate:

Construction & land development

$ 301

As of December 31, 2022

(in thousands)

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

$ 4,258

122 First Guaranty Bancshares, Inc. Annual Report 2023

Note 6. Allowance for Credit Losses on Loans
A summary of changes in the allowance for credit losses, by portfolio type, for the years ended December 31, 2022 and 2022 are as follows:

For the Year Ended December 31,

2023

Beginning
Allowance
(12/31/22)

ASC 326
Adoption

Day 1
Adjustment

Charge-Offs

Recoveries

Provision

(in thousands)

Ending

Allowance
(12/31/23)

Real Estate:

Construction & land development

$ 1,232

$ 1,891

$ -

$ 7

$ 2,715

$ 5,845

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

1,761

746

9,280

13,102

240

2,194

4,879

2,506

597

10,416

(39)

3,465

1,418

307

7,042

(98)

2,971

(162)

(1,042)

(591)

1,078

(964)

(138)

(1,102)

(1,694)

(2,975)

230

330

414

205

426

(4,669)

1,045

(8)

2,298

(550)

917

5,372

(459)

(965)

(2,769)

2,511

(6)

(1,688)

6,653

1,614

10,596

24,744

2,711

1,948

1,426

6,182

$ 23,518

$ 8,120

$ (5,771)

$ 1,375

$ 3,684

$ 30,926

123

As of December 31,

2022

Beginning Allowance
(12/31/21)

Charge-Offs

Recoveries

Provision

(in thousands)

Ending Allowance
(12/31/22)

$ 769

$ (65 )

$ 340

$ 188

$ 1,232

478

1,921

940

12,730

16,838

183

2,363

2,486

1,371

788

7,191

(94)

(603)

(762)

(460)

(563)

(150)

(4,151)

(5,324)

452

349

1,217

133

473

702

(395 )

(142 )

(646)

(3,196)

(4,191)

384

303

2,538

4,813

(191)

7,847

1,761

746

9,280

13,102

240

2,194

4,879

2,506

597

10,416

$ 24,029

$ (6,086)

$ 1,919

$ 3,656

$ 23,518

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

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.

124 First Guaranty Bancshares, Inc. Annual Report 2023

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, 2023

Allowance
Individually
Evaluated

Allowance
Collectively
Evaluated

Total Allowance
for Credit
Losses

Loans
Individually
Evaluated

Loans
Collectively
Evaluated

Total Loans
before Unearned
Income

(in thousands)

Real Estate:

Construction & land development

$ -

$ 5,845 $ 5,845

$ 1,389

$ 398,046 $ 399,435

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

316

3,047

3,363

758

759

6,337

1,614

7,549

21,381

1,953

1,948

1,426

5,423

6,653

1,614

10,596

24,744

2,711

1,948

1,426

6,182

5,670

5,066

537

46,571

59,233

1,466

4,464

1,799

26,860

439,784

118,384

999,294

1,982,368

39,542

330,508

283,616

54,485

32,530

444,850

118,921

1,045,865

2,041,601

41,008

334,972

285,415

54,485

7,729

708,151

715,880

$ 4,122

$ 26,804 $ 30,926

$ 66,962

$ 2,690,519 $ 2,757,481

(8,773)

$ 2,748,708

All loans individually evaluated for impairment as of December 31, 2023 were considered collateral dependent loans.

125

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

As of December 31, 2023 and 2022, First Guaranty had loans totaling $25.2 million and $13.6 million, respectively, not accruing interest. As of
December 31, 2023, and 2022, First Guaranty had loans past due 90 days or more and still accruing interest totaling $15.3 million and $1.1
million, respectively. The average outstanding balance of nonaccrual loans in 2023 was $22.5 million compared to $12.8 million in 2022.

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. Payment status, collateral value
and the probability of collecting scheduled principal and interest payments when due are considered in evaluating loan impairment. Loans that
experience insignificant payment delays and payment shortfalls generally are not classified as impaired.

126 First Guaranty Bancshares, Inc. Annual Report 2023

The following is a summary of impaired loans, excluding loans acquired with deteriorated credit quality, by class as of the date indicated:

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

127

Note 7. Premises and Equipment

The components of premises and equipment at December 31, 2023 and 2022 are as follows:

Land

Bank premises

Furniture and equipment

Construction in progress

Acquired value

Less: accumulated depreciation

Net book value

December 31,

2023

2022

(in thousands)

$ 15,541

$ 15,284

55,452

31,681

14,368

117,042

47,250

54,423

31,109

1,854

102,670

44,464

$ 69,792

$ 58,206

Depreciation expense amounted to $3.0 million and $3.1 million for 2023 and 2022, respectively. Interest cost capitalized as a construction cost
was $0 for 2023 and 2022, 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, such as core deposit intangibles and loan servicing 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, 2023 and 2022. Other intangible assets not subject to amortization totaled $0.1 million and $0 at December 31, 2023 and 2022.

The following table summarizes intangible assets subject to amortization.

December 31,

2023

2022

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

$ 12,607

$ 3,659

$ 16,266

$ 11,911

$ 4,355

2,198

1,659

$ 18,464

$ 14,266

539

$ 4,198

2,195

1,571

$ 18,461

$ 13,482

624

$ 4,979

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 5.3 years.

Amortization expense relating to purchase accounting intangibles
totaled $0.7 million for the years ended December 31, 2023 and 2022,
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,

2023

2022

(in thousands)

Real Estate Owned Acquired by
Foreclosure:

Residential

$ 309

$ 113

For the Years Ended

Estimated Amortization Expense

Construction & land development

(in thousands)

Non-farm non-residential

December 31, 2024

December 31, 2025

December 31, 2026

December 31, 2027

December 31, 2028

$696

Total Other Real Estate Owned and
Foreclosed Property

Allowance for Other Real Estate
Owned losses

Net Other Real Estate Owned and
Foreclosed Property

251

690

1,250

113

$ 1,250

$ 113

128 First Guaranty Bancshares, Inc. Annual Report 2023

Loans secured by 1- to 4-family residential properties in the process of
foreclosure totaled $1.3 million as of December 31, 2023.

The following schedule provides certain information about First
Guaranty's short-term borrowings for the periods indicated:

Note 10. Deposits

A schedule of maturities of all time deposits are as follows:

2024

2025

2026

2027

2028 and thereafter

December 31, 2023

(in thousands)

$ 505,561

179,990

32,228

10,520

92,426

Total

$ 820,725

The table above includes $175.1 million in brokered deposits for
December 31, 2023. The aggregate amount of jumbo time deposits,
each with a minimum denomination of $250,000 totaled $196.9 million
and $155.0 million at December 31, 2023 and 2022, respectively.

Note 11. Borrowings

Short-term borrowings are summarized as follows:

December 31,
2023

December 31,
2022

(in thousands)

Federal Home Loan Bank

advances

$ 50,000

$ 120,000

Repurchase agreements

Line of credit

6,297

10,000

6,442

20,000

Total short-term borrowings

$ 66,297

$ 146,442

Available lines of credit totaled $589.2 million at December 31, 2023
and $505.5 million at December 31, 2022.

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,

2023

2022

(in thousands, except for %)

$ 66,297

$ 146,442

$ 152,659

$ 67,102

$ 146,442

$ 42,149

5.78%

5.65%

5.12%

4.86%

Long-term debt is summarized as follows:

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. First Guaranty refinanced this note in October
of 2023.

Senior long-term debt with a commercial bank, priced at floating Wall
Street Journal Prime less 50 basis points (currently 8.00%), totaled
$39.1 million at December 31, 2023 and $0 at December 31, 2022.
First Guaranty refinanced this note on October 2023. First Guaranty
pays $1.0 million principal plus interest quarterly. First Guaranty
refinanced this note on October 2023. This loan has a contractual
maturity date of October 5, 2033. This long-term debt is secured by
a pledge of 86.77% (4,823,899 shares) of First Guaranty's interest in
First Guaranty Bank (a wholly owned subsidiary).

Junior subordinated debt, priced at Wall Street Journal Prime plus 75
basis points (9.25% as of December 31, 2023), totaled 15.0 million
at December 31, 2023 and 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. 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 one revolving line of credit. A $20.0 million
line of credit with an availability of $10.0 million at December 31, 2023.
This line of credit is secured by a pledge of 86.77% (4,823,899 shares)
of First Guaranty's interest in First Guaranty Bank (a wholly owned
subsidiary) and is priced at 8.50%.

At December 31, 2023, letters of credit issued by the FHLB totaling
$513.3 million were outstanding and carried as off-balance sheet
items, all of which expire by 2024. 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.
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, 2023 obligations on long-term advances from
FHLB, senior long-term debt and junior subordinated debentures
totaled $209.1 million.

129

The scheduled payments are as follows:

2024

2025

2026

2027

2028

2029 and thereafter

Subtotal

Debt issuance costs

Total

Long-term
Advances
from FHLB

Senior
Long-term

Debts

(in thousands)

Junior
Subordinated
Debentures

$ -

$ 4,031

$ -

20,000

135,000

4,031

19,149

15,000

$ 155,000

$ 39,304

$ 15,000

(205)

$ 155,000

$ 39,099

$ 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, 2023 and
2022, 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 3.20% at December 31, 2023.

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 has not elected to
follow the Community Bank Leverage Ratio.

130 First Guaranty Bancshares, Inc. Annual Report 2023

As of December 31, 2023, 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, 2023
and 2022 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, 2023

Total Risk-Based Capital:

Tier 1 Capital:

Tier 1 Leverage Capital:

Common Equity Tier One Capital:

December 31, 2022

Total Risk-Based Capital:

Tier 1 Capital:

Tier 1 Leverage Capital:

Common Equity Tier One Capital:

$ 330,944

11.20%

$ 304,553

10.31%

$ 304,553

8.94%

$ 304,553

10.31%

$ 308,510

11.16%

$ 284,992

10.31%

$ 284,992

9.35%

$ 284,992

10.31%

(in thousands, except for %)

$ 236,321

$ 177,241

$ 121,821

$ 132,931

$ 221,066

$ 165,800

$ 121,884

$ 124,350

8.00%

6.00%

4.00%

4.50%

8.00%

6.00%

4.00%

4.50%

$ 295,402

10.00%

$ 236,321

$ 152,277

$ 192,011

8.00%

5.00%

6.50%

$ 276,333

10.00%

$ 221,066

$ 152,355

$ 179,616

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 2024 without permission
will be limited to 2024 earnings plus the undistributed earnings of $3.9
million from 2023.

Accordingly, at January 1, 2024, $298.4 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, 2023 and 2022 follows:

December 31,

2023

2022

(in thousands)

Balance, beginning of year

$ 89,735

$ 93,270

Net (Decrease) Increase

Balance, end of year

(33,850)

(3,535)

$ 55,885

$ 89,735

Unfunded commitments to First Guaranty and Bank directors and
executive officers totaled $19.6 million and $45.6 million at December
31, 2023 and 2022, respectively. At December 31, 2023 First Guaranty
and the Bank had deposits from directors and executives totaling $54.8
million. There were no participations in loans purchased from affiliated
financial institutions included in First Guaranty's loan portfolio in 2023
or 2022.

During the years ended 2023 and 2022, 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

131

or maturity. On June 21, 2022, First Guaranty issued a $15.0 million
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 2023 and 2022, First Guaranty paid interest of
$1.2 million and $0.7 million, respectively, under the 2015 Note and
the 2022 Note.

During the years ended 2023 and 2022, First Guaranty paid
approximately $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.

During the years ended 2023 and 2022, First Guaranty paid
approximately $0.7 million and $58,000, 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 2023 and 2022, First Guaranty paid
approximately $0.8 million and $0.7 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 $80,000
and $440,000 in 2023 and 2022, 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 2023 or 2022. As of
December 31, 2023, the ESOP held 1,003 shares. First Guaranty is in
the process of terminating the plan.

On May 19, 2022 the shareholders of First Guaranty adopted the First
Guaranty Bank Equity Bonus Plan. The plan established an equity
bonus pool of 80,000 shares. All full time employees of First Guaranty
are eligible to participate. In December 31, 2023, 44,341 shares were
distributed to a total of 311 employees. Grant date fair market value of
the shares issued was $750,000. All shares were vested on the date of
issuance.

Note 16. Other Expenses

The following is a summary of the significant components of other
noninterest expense:

December 31,

2023

2022

(in thousands)

Other noninterest expense:

Legal and professional fees

$ 5,709

$ 4,159

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

2,100

1,804

1,927

2,263

778

5,282

1,362

382

696

595

157

3,136

4,032

1,596

1,750

1,747

1,949

728

4,191

1,236

406

696

638

393

1,997

3,888

Total other noninterest expense

$ 30,223

$ 25,374

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 2023 and 2022.

Note 17. Income Taxes
The following is a summary of the provision for income taxes included
in the Consolidated Statements of Income:

December 31,

2023

2022

(in thousands)

$ 2,857

(180)

$ 2,677

$ 7,761

(255)

$ 7,506

Current

Deferred

Total

132 First Guaranty Bancshares, Inc. Annual Report 2023

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,

2023

2022

(in thousands, except for %)

21.0%

$ 2,452

$ 7,642

(102)

107

220

(108)

$ 2,677

$ 7,506

Statutory tax rate

Federal income taxes at

statutory rate

Tax exempt municipal income

Other

State tax expense

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, 2023 and
2022 are as follows:

Deferred tax assets:

Allowance for credit losses

Other real estate owned

Unrealized losses on available for sale

securities

Unrealized losses on available for sale

securities transferred to held to maturity

Net operating loss

Other

December 31,

2023

2022

(in thousands)

$ 7,101

$ 4,939

416

3,029

914

473

711

3,337

1,006

648

Gross deferred tax assets

11,951

10,646

Deferred tax liabilities:

Depreciation and amortization

Core deposit intangibles

Unrealized gains on available for sale

securities

Discount on purchased loans

Other

Gross deferred tax liabilities

Net deferred tax assets (liabilities)

(1,871)

(2,116)

(768)

(914)

(180)

(927)

(60)

(880)

(3,746)

(3,970)

$ 8,205

$ 6,676

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, 2023
and 2022, 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, 2023 and
December 31, 2022.

December 31,

2023

2022

(in thousands)

Contract Amount

Commitments to Extend Credit

$ 304,218

$ 246,968

Unfunded Commitments under lines of

credit

$ 214,546

$ 253,906

Commercial and Standby letters of credit

$ 13,971

$ 14,222

First Guaranty determined that the net deferred tax asset at December
31, 2023 and 2022 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 $4.4
million as of December 31, 2023 and $4.8 million in 2022. The

133

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,
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
2023 or 2022.

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 to access 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, 2023 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
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, 2023 and 2022 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, 2023 and 2022, segregated by
the level of the valuation inputs within the fair value hierarchy utilized
to measure fair value:

Available for Sale Securities Fair Value
Measurements Using:

Level 1: Quoted Prices in Active Markets

For Identical Assets

Level 2: Significant Other Observable

Inputs

Level 3: Significant Unobservable Inputs

Securities available for sale measured
at fair value

December 31,

2023

2022

(in thousands)

$ 49,830

$ 98,466

23,172

10,483

21,890

11,102

$ 83,485

$ 131,458

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,
2022 to December 31, 2023 was due to a net decrease in Treasury
bills of $48.6 million. There were no transfers between Level 1 and
2 securities available for sale from December 31, 2022 to December
31, 2023. There were no transfers between Level 2 and Level 3 from
December 31, 2022 to December 31, 2023.

134 First Guaranty Bancshares, Inc. Annual Report 2023

The following table reconciles assets measured at fair value on a
recurring basis using unobservable inputs (Level 3):

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.

Level 3 Changes

December 31,

2023

2022

(in thousands)

Balance, beginning of year

$ 11,102

$ 12,305

Total gains or losses (realized/unrealized):

Included in earnings

Included in other comprehensive income

(38 )

(676 )

Purchases, sales, issuances and

settlements, net

Transfers in and/or out of Level 3

Balance as of end of year

(581 )

(527 )

$ 10,483

$ 11,102

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, 2023.

The following table measures financial assets and financial liabilities
measured at fair value on a non-recurring basis as of December 31,
2023 and December 31, 2022, segregated by the level of valuation
inputs within the fair value hierarchy utilized to measure fair value:

December 31,

2023

2022

(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

8,083

2,251

Impaired loans measured at fair value

$ 8,083

$ 2,251

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

1,250

113

$ 1,250

113

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.

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.

135

Investment Securities.

Accrued interest payable.

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.

Loan individually evaluated for impairment.

Fair value 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.

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, 2023 and 2022 the fair value of guarantees under
commercial and standby letters of credit was not material.

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.

136 First Guaranty Bancshares, Inc. Annual Report 2023

The carrying amounts and estimated fair values of financial instruments at December 31, 2023 were as follows:

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

Fair Value Measurements at December 31, 2023 Using

Carrying
Amount

Level 1

Level 2

Level 3

Total

(in thousands)

286,114

341

83,485

49,830

320,638

2,717,782

5,861

15,713

$ 3,009,094

50,000

10,000

6,297

11,807

155,000

39,099

15,000

23,172

253,584

- $

286,114

341

10,483

83,485

253,584

2,581,979

5,861

15,713

5,861

15,713

$ 3,001,498

3,001,498

50,000

10,000

6,285

50,000

10,000

6,285

11,807

152,299

39,304

15,000

39,304

15,000

137

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

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

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

6,509

4,289

Long-Term advances from Federal Loan Bank

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.

Senior long-term debt

21,938

21,927

Junior subordinated debentures

15,000

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, 2023. 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 39.7% of First Guaranty's deposits are derived from local
governmental agencies at December 31, 2023. 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 replace
such deposits with either new deposits or other borrowings. Public fund
deposits totaled $1.2 billion at December 31, 2023.

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 early
stages and no trial date has been set. No accrued liability has been
recorded related to this lawsuit. First Guaranty settled a case in the

138 First Guaranty Bancshares, Inc. Annual Report 2023

third quarter of 2021 for $1.1 million. A receivable for $0.9 million has been recorded for recovery by a claim against First Guaranty's insurer. 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. 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,

2023

2022

(in thousands)

$ 8,955

$ 3,324

302,327

2,952

287,019

2,375

$ 314,234

$ 292,718

10,000

$ 20,000

39,099

15,000

504

64,603

249,631

21,927

15,000

800

57,727

234,991

Total Liabilities and Shareholders' Equity

$ 314,234

$ 292,718

139

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,

2023

2022

(in thousands)

$ 10,579

$ 21,863

638

526

11,217

22,389

4,532

313

2,365

7,210

4,007

1,273

5,280

3,939

2,703

252

1,783

4,738

17,651

910

18,561

10,323

Net Income

$ 9,219

$ 28,884

140 First Guaranty Bancshares, Inc. Annual Report 2023

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 investing activities

Cash flows from financing activities:

Net (decrease) increase in short-term borrowings

Proceeds from long-term borrowings, net of costs

Repayment of long-term debt

Net proceeds from issuance of common stock

Subsidiary payment for stock grants issued

Dividends paid

Net cash provided by financing activities

Net increase (decrease) 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,

2023

2022

(in thousands)

$ 9,219

$ 28,884

(3,939)

(296)

(580)

4,428

(10,323)

225

350

1,482

20,618

(17,000)

(30,000 )

(30,000)

(10,000)

40,097

(22,946)

20,000

750

(9,698)

18,203

5,631

3,324

20,000

(3,250)

(9,187)

7,563

(1,819 )

5,143

$ 8,955

$ 3,324

Item 9 - Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure

Chief Financial Officer concluded that these disclosure controls and
procedures were effective.

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

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, 2023, that has materially
affected, or is reasonably likely to materially affect, First Guaranty's
internal control over financial reporting.

141

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
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, 2023.

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, 2023.

Item 9B - Other Information
(a) None

(b) During the three months ended December 31, 2023, no First
Guaranty director or officer adopted or terminated a "Rule 10b5-1
trading arrangement" or "non-Rule 10b5-1 trading arrangement," as
each term is defined in item 408(a) of Regulation S-K.

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, 2023, there were
approximately 1,600 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 122 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,
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 2023.

142 First Guaranty Bancshares, Inc. Annual Report 2023

143

www.fgb.net

144 First Guaranty Bancshares, Inc. Annual Report 2023