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) Nine-Months Ended September 30, 2023 2022 (unaudited) Interest Income: Loans (including fees) $ 121,846 $ 90,423 Deposits with other banks 3,719 924 Securities (including FHLB stock) 7,130 6,922 Total Interest Income 132,695 98,269 Interest Expense: Demand deposits 44,187 11,403 Savings deposits 2,418 429 Time deposits 15,304 7,828 Borrowings 7,127 1,867 Total Interest Expense 69,036 21,527 Net Interest Income 63,659 76,742 Less: Provision for credit losses 1,489 2,898 Net Interest Income after Provision for Credit Losses 62,170 73,844 Noninterest Income: Service charges, commissions and fees 2,461 2,364 ATM and debit card fees 2,449 2,591 Net gains (losses) on securities - (17) Net gains on sale of loans 12 1,713 Other 3,083 1,856 Total Noninterest Income 8,005 8,507 Total Business Revenue, Net of Provision for Loan Losses 70,175 82,351 Noninterest Expense: Salaries and employee benefits 30,365 27,246 Occupancy and equipment expense 6,542 6,748 Other 22,990 18,364 Total Noninterest Expense 59,897 52,358 Income Before Income Taxes 10,278 29,993 Less: Provision for income taxes 2,362 6,230 Net Income 7,916 23,763 Less: Preferred stock dividends 1,747 1,747 Income Available to Common Shareholders $6,169 $22,016 Per Common Share: Earnings $0.56 $2.05 Cash dividends paid $0.48 $0.48 Book Value Per Common Share1 $18.00 $18.51 Weighted Average Common Shares Outstanding 11,022,919 10,716,796 Return on Average Assets 0.33% 1.07% Return on Average Common Equity 4.06% 15.29% Dear Shareholders, 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 it grew to $2,707,669,000 as of September 30, 2023 compared to $2,599,099,000 as of June 30, 3023 and $2,526,720,000 as of December 31, 2022. Total interest income for the quarter ending September 30, 2023 was $47,627,000 compared to $43,781,000 for the quarter ending June 30, 2023 and $41,287,000 for the quarter ending March 31, 2023 and $38,307,000 for the quarter ending December 31, 2022. Our total non-interest expense for the quarter ending September 30, 2023 was $19,996,000 compared to $19,735,000 for quarter ending June 30, 2023 and $20,166,000 for quarter ending March 31, 2023. We are making progress. This is not to say that the struggles are over. Our entire staff has reacted positively and strongly to reduce expenses. Everyone involved in Loan Production, Credit, and Loan Processing has been and continues to work very diligently to obtain new loans and get them expedited, approved, and earning. We appreciate the patience and understanding of our shareholders. We are making progress. We will prevail and continue to build First Guaranty into a profitable investment with a fortress balance sheet. Alton B. Lewis Chief Executive Officer/President First Guaranty Bancshares, Inc. Assets Cash and cash equivalents: Cash and due from banks $200,825 $109,174 Federal funds sold 450 183 Cash and cash equivalents 201,275 109,357 Investment securities: Available for sale, at fair value 79,857 131,318 Held to maturity, at cost and net of allowance for credit losses of $80 and $0 (estimated fair value of $234,771 and $243,800 respectively) 320,624 319,899 Investment securities 400,481 451,217 Federal Home Loan Bank stock, at cost 13,241 4,830 Loans held for sale - - Loans, net of unearned income 2,699,393 2,417,327 Less: allowance for credit losses 31,936 23,468 Net loans 2,667,457 2,393,859 Premises and equipment, net 64,006 58,209 Goodwill 12,900 12,900 Intangible assets, net 4,366 5,267 Other real estate, net 1,135 1,667 Accrued interest receivable 16,728 12,067 Other assets 36,645 47,424 Total Assets $3,418,234 $3,096,797 Liabilities and Shareholders’ Equity Deposits: Noninterest-bearing demand 458,392 534,548 Interest-bearing demand 1,435,555 1,421,877 Savings 214,371 217,820 Time 706,691 534,327 Total deposits 2,815,009 2,708,572 Short-term advances from Federal Home Loan Bank 125,000 80,000 Short-term borrowings 20,000 20,000 Repurchase agreements 7,659 6,408 Accrued interest payable 10,780 3,641 Long-term advances from Federal Home Loan Bank 155,000 - Senior long-term debt 20,306 22,738 Junior subordinated debentures 15,000 15,000 Other liabilities 10,658 9,000 Total Liabilities 3,179,412 2,865,359 Shareholders’ Equity Preferred Stock, Series A - $1,000 par value 100,000 shares authorized; non-cumulative perpetual; 34,500 issued and outstanding, respectively 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 69,247 73,526 Accumulated other comprehensive income (loss) (14,293) (15,956) Total Shareholders’ Equity 238,822 231,438 Total Liabilities & Shareholders’ Equity $3,418,234 $3,096,797 Three-Months Ended September 30, 2023 2022 (unaudited) Interest Income: Loans (including fees) $43,407 $32,386 Deposits with other banks 1,897 561 Securities (including FHLB stock) 2,323 2,303 Total Interest Income 47,627 35,250 Interest Expense: Demand deposits 16,102 6,243 Savings deposits 1,001 267 Time deposits 6,504 2,533 Borrowings 3,575 758 Total Interest Expense 27,182 9,801 Net Interest Income 20,445 25,449 Less: Provision for credit losses 627 1,509 Net Interest Income after Provision for Credit Losses 19,818 23,940 Noninterest Income: Service charges, commissions and fees 858 814 ATM and debit card fees 796 864 Net gains (losses) on securities - - Net gains on sale of loans - 1,624 Other 835 716 Total Noninterest Income 2,489 4,018 Total Business Revenue, Net of Provision for Loan Losses 22,307 27,958 Noninterest Expense: Salaries and employee benefits 10,429 9,181 Occupancy and equipment expense 2,121 2,295 Other 7,446 6,312 Total Noninterest Expense 19,996 17,788 Income Before Income Taxes 2,311 10,170 Less: Provision for income taxes 539 2,117 Net Income 1,772 8,053 Less: Preferred stock dividends 582 582 Income Available to Common Shareholders $1,190 $7,471 Per Common Share: Earnings $0.10 $0.70 Cash dividends paid $0.16 $0.16 Weighted Average Common Shares Outstanding 11,431,083 10,716,796 Return on Average Assets 0.21% 1.06% Return on Average Common Equity 2.27% 15.15% Sincerely, September 30, 2023 2022 (unaudited)