A Message to Our Shareholders Consolidated Balance Sheets (in thousands, except share data) Consolidated Statements of Income (in thousands, except share, per share data & percentages) Consolidated Statements of Income (in thousands, except share, per share data & percentages) Six-Months Ended June 30, 2023 2022 (unaudited) Interest Income: Loans (including fees) $ 78,439 $ 58,037 Deposits with other banks 1,822 363 Securities (including FHLB stock) 4,807 4,619 Total Interest Income 85,068 63,019 Interest Expense: Demand deposits 28,085 5,160 Savings deposits 1,417 162 Time deposits 8,800 5,295 Borrowings 3,552 1,109 Total Interest Expense 41,854 11,726 Net Interest Income 43,214 51,293 Less: Provision for credit losses 862 1,389 Net Interest Income after Provision for Credit Losses 42,352 49,904 Noninterest Income: Service charges, commissions and fees 1,603 1,550 ATM and debit card fees 1,653 1,727 Net gains (losses) on securities - (17) Net gains on sale of loans 12 89 Other 2,248 1,140 Total Noninterest Income 5,516 4,489 Total Business Revenue, Net of Provision for Loan Losses 47,868 54,393 Noninterest Expense: Salaries and employee benefits 19,936 18,065 Occupancy and equipment expense 4,421 4,453 Other 15,544 12,052 Total Noninterest Expense 39,901 34,570 Income Before Income Taxes 7,967 19,823 Less: Provision for income taxes 1,823 4,114 Net Income 6,144 15,709 Less: Preferred stock dividends 1,164 1,164 Income Available to Common Shareholders $4,980 $14,545 Per Common Share: Earnings $0.46 $1.36 Cash dividends paid $0.32 $0.32 Book Value Per Common Share1 $18.00 $18.05 Weighted Average Common Shares Outstanding 10,815,454 10,716,796 Return on Average Assets 0.39% 1.08% Return on Average Common Equity 4.99% 15.37% Dear Shareholders, Resilient: Springing back, rebounding. Returning to the original form for position after being bent, compressed or stretched. Recovering readily from illness, depression, adversity, or the like; buoyant. Random House Webster’s Unabridged Dictionary Second Edition. Another good word is strong. An even better word is tough. These are words that describe what First Guaranty has been during a six month period in which we have survived wound after wound, not of our own causing as we continue to deliver to our shareholders, customers, and our staff members extraordinary results. The latest of these have been the FDIC deposit insurance adjustment which was $450,000 for the second quarter. Enough crying over spilt milk. This is what we did to make it better. Our interest income for the second quarter of 2023 increased to $43,781,000 compared to $32,540,000 for the second quarter of 2022. For the six months ending June 30, 2023, our interest income totaled $85,068,000 compared to $63,019,000. Our interest expense stabilized at $22,868,000 for the quarter compared to $41,854,000 for the six month period ending June 30, 2023. We have significantly increased our loan interest income to offset the increased cost of deposits which are set by the Federal Reserve. For the quarter, we made over $2,000,000 for our shareholders even after the FDIC assessment. Basically, we have and will continue to make a lot of money for our shareholders. We are working very hard to control non-interest expense. We are working very hard to expand our interest margin. Our lenders have done a great job working to increase the rates we receive for our loans. Let’s keep moving forward. Let’s be resilient. Let’s be TOUGH. Thank you for your attention. Alton B. Lewis Chief Executive Officer/President First Guaranty Bancshares, Inc. Assets Cash and cash equivalents: Cash and due from banks $145,773 $120,164 Federal funds sold 455 234 Cash and cash equivalents 146,228 120,398 Investment securities: Available for sale, at fair value 80,153 131,091 Held to maturity, at cost and net of allowance for credit losses of $100 and $0 (estimated fair value of $250,008 and $264,310 respectively) 320,523 319,731 Investment securities 400,676 450,822 Federal Home Loan Bank stock, at cost 7,901 1,476 Loans held for sale - - Loans, net of unearned income 2,590,666 2,295,738 Less: allowance for credit losses 31,861 23,583 Net loans 2,558,805 2,272,155 Premises and equipment, net 60,849 58,394 Goodwill 12,900 12,900 Intangible assets, net 4,583 5,313 Other real estate, net 1,273 1,634 Accrued interest receivable 15,099 12,359 Other assets 27,732 23,905 Total Assets $3,236,046 $2,959,356 Liabilities and Shareholders’ Equity Deposits: Noninterest-bearing demand 466,172 560,624 Interest-bearing demand 1,448,492 1,340,412 Savings 222,296 221,708 Time 630,459 537,317 Total deposits 2,767,419 2,660,061 Short-term advances from Federal Home Loan Bank 30,000 - Short-term borrowings 20,000 20,000 Repurchase agreements 7,409 6,361 Accrued interest payable 6,996 3,138 Long-term advances from Federal Home Loan Bank 120,000 - Senior long-term debt 20,305 23,549 Junior subordinated debentures 15,000 15,000 Other liabilities 10,060 4,711 Total Liabilities 2,997,189 2,732,820 Shareholders’ Equity Preferred Stock, Series A - $1,000 par value 100,000 shares authorized; non-cumulative perpetual; 34,500 issued and outstanding 33,058 33,058 Common stock - $1 par value 100,600,000 shares authorized; 11,431,083 and 10,716,796 shares issued and outstanding 11,431 10,717 Surplus 139,379 130,093 Retained earnings 69,887 67,769 Accumulated other comprehensive (loss) income (14,898) (15,101) Total Shareholders’ Equity 238,857 226,536 Total Liabilities & Shareholders’ Equity $3,236,046 $2,959,356 Three-Months Ended June 30, 2023 2022 (unaudited) Interest Income: Loans (including fees) $40,290 $29,999 Deposits with other banks 1,071 261 Securities (including FHLB stock) 2,420 2,280 Total Interest Income 43,781 32,540 Interest Expense: Demand deposits 15,036 2,884 Savings deposits 838 101 Time deposits 5,224 2,540 Borrowings 1,770 705 Total Interest Expense 22,868 6,230 Net Interest Income 20,913 26,310 Less: Provision for credit losses 548 757 Net Interest Income after Provision for Credit Losses 20,365 25,553 Noninterest Income: Service charges, commissions and fees 818 773 ATM and debit card fees 828 904 Net gains (losses) on securities - - Net gains on sale of loans - 90 Other 1,166 760 Total Noninterest Income 2,812 2,527 Total Business Revenue, Net of Provision for Loan Losses 23,177 28,080 Noninterest Expense: Salaries and employee benefits 9,932 9,085 Occupancy and equipment expense 2,219 2,252 Other 7,584 6,482 Total Noninterest Expense 19,735 17,819 Income Before Income Taxes 3,442 10,261 Less: Provision for income taxes 766 2,137 Net Income 2,676 8,124 Less: Preferred stock dividends 582 582 Income Available to Common Shareholders $2,094 $7,542 Per Common Share: Earnings $0.19 $0.70 Cash dividends paid $0.16 $0.16 Weighted Average Common Shares Outstanding 10,913,029 10,716,796 Return on Average Assets 0.34% 1.11% Return on Average Common Equity 4.19% 15.73% Sincerely, June 30, 2023 2022 (unaudited)