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) Years Ended December 31, 2023 2022 (unaudited) Interest Income: Loans (including fees) $ 167,140 $ 126,002 Deposits with other banks 6,268 1,324 Securities (including FHLB stock) 9,601 9,250 Total Interest Income 183,009 136,576 Interest Expense: Demand deposits 60,243 21,419 Savings deposits 3,554 915 Time deposits 23,967 10,682 Borrowings 10,540 3,518 Total Interest Expense 98,304 36,534 Net Interest Income 84,705 100,042 Less: Provision for credit losses 3,714 3,656 Net Interest Income after Provision for Credit Losses 80,991 96,386 Noninterest Income: Service charges, commissions and fees 3,401 3,160 ATM and debit card fees 3,242 3,406 Net gains (losses) on securities - (17) Net gains on sale of loans 12 1,774 Other 3,922 2,686 Total Noninterest Income 10,577 11,009 Total Business Revenue, Net of Provision for Credit Losses 91,568 107,395 Noninterest Expense: Salaries and employee benefits 40,422 36,699 Occupancy and equipment expense 9,027 8,932 Other 30,223 25,374 Total Noninterest Expense 79,672 71,005 Income Before Income Taxes 11,896 36,390 Less: Provision for income taxes 2,677 7,506 Net Income 9,219 28,884 Less: Preferred stock dividends 2,329 2,328 Income Available to Common Shareholders $6,890 $26,556 Per Common Share: Earnings $0.62 $2.48 Cash dividends paid $0.64 $0.64 Book Value Per Common Share $17.36 $18.84 Weighted Average Common Shares Outstanding 11,165,303 10,716,796 Return on Average Assets 0.28% 0.97% Return on Average Common Equity 3.36% 13.64% Dear Shareholders, 2024!!!!!!! Happy New Year!!!!! We are happy to see 2023 in our rearview mirror. We survived the Silicon Valley adventure and now we have survived the Fed interest rate adventure. And we didn’t just survive, we made money. Our loan volume continued to be strong and continues to be strong. The loan volume grew year over year from $2,519,077,000 to $2,748,708,000. We have tightened down on our expenses and we have used this opportunity to clean our loan portfolio. What does this mean? It means that we are completing our 90th year and we are completing it with new heights in capital, with new heights in assets. Assets grew year over year from $3,151,347,000 to $3,552,772,000. We are in new heights in loans and loan interest income. We have taken everything that can be thrown at us and we have not only survived, we have continued to grow and we have continued to make money, not as much as we want to, but we continue to make money. So now, in 2024 we are ready to move forward. We are ready to make our 91st year a year of new heights for First Guaranty Bancshares, Inc. and for the shareholders of First Guaranty Bancshares, Inc. Alton B. Lewis Chief Executive Officer/President First Guaranty Bancshares, Inc. Assets Cash and cash equivalents: Cash and due from banks $286,114 $82,796 Federal funds sold 341 423 Cash and cash equivalents 286,455 83,219 Investment securities: Available for sale, at fair value 83,485 131,458 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) 320,638 320,068 Investment securities 404,123 451,526 Federal Home Loan Bank stock, at cost 13,390 6,528 Loans held for sale - - Loans, net of unearned income 2,748,708 2,519,077 Less: allowance for credit losses 30,926 23,518 Net loans 2,717,782 2,495,559 Premises and equipment, net 69,792 58,206 Goodwill 12,900 12,900 Intangible assets, net 4,298 4,979 Other real estate, net 1,250 113 Accrued interest receivable 15,713 13,002 Other assets 27,069 25,315 Total Assets $3,552,772 $3,151,347 Liabilities and Shareholders’ Equity Deposits: Noninterest-bearing demand 442,755 524,415 Interest-bearing demand 1,526,628 1,460,259 Savings 218,986 205,760 Time 820,725 533,358 Total deposits 3,009,094 2,723,792 Short-term advances from Federal Home Loan Bank 50,000 120,000 Short-term borrowings 10,000 20,000 Repurchase agreements 6,297 6,442 Accrued interest payable 11,807 4,289 Long-term advances from Federal Home Loan Bank 155,000 - Senior long-term debt 39,099 21,927 Junior subordinated debentures 15,000 15,000 Other liabilities 6,844 4,906 Total Liabilities 3,303,141 2,916,356 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; 12,475,424 and 10,716,796 shares issued and outstanding 12,475 10,717 Surplus 149,085 130,093 Retained earnings 67,972 76,351 Accumulated other comprehensive income (loss) (12,959) (15,228) Total Shareholders’ Equity 249,631 234,991 Total Liabilities & Shareholders’ Equity $3,552,772 $3,151,347 Three Months Ended December 31, 2023 2022 (unaudited) Interest Income: Loans (including fees) $45,294 $35,579 Deposits with other banks 2,549 400 Securities (including FHLB stock) 2,471 2,328 Total Interest Income 50,314 38,307 Interest Expense: Demand deposits 16,056 10,016 Savings deposits 1,136 486 Time deposits 8,663 2,854 Borrowings 3,413 1,594 Total Interest Expense 29,268 14,950 Net Interest Income 21,046 23,357 Less: Provision for credit losses 2,225 758 Net Interest Income after Provision for Credit Losses 18,821 22,599 Noninterest Income: Service charges, commissions and fees 940 796 ATM and debit card fees 793 815 Net gains (losses) on securities - - Net gains on sale of loans - 61 Other 839 830 Total Noninterest Income 2,572 2,502 Total Business Revenue, Net of Provision for Credit Losses 21,393 25,101 Noninterest Expense: Salaries and employee benefits 10,057 9,453 Occupancy and equipment expense 2,485 2,184 Other 7,233 7,067 Total Noninterest Expense 19,775 18,704 Income Before Income Taxes 1,618 6,397 Less: Provision for income taxes 315 1,276 Net Income 1,303 5,121 Less: Preferred stock dividends 582 582 Income Available to Common Shareholders $721 $4,539 Per Common Share: Earnings $0.06 $0.42 Cash dividends paid $0.16 $0.16 Weighted Average Common Shares Outstanding 11,587,810 10,716,796 Return on Average Assets 0.15% 0.66% Return on Average Common Equity 1.37% 8.94% Sincerely, December 31, 2023 2022 (unaudited)