# EDGAR Filing Document

**Accession Number:** 0001408534
**File Stem:** 0001408534-23-000008
**Filing Date:** 2023-1
**Character Count:** 38755
**Document Hash:** d0cc9c3d90b5c481fec3bf9c5f2f7346
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001408534-23-000008.hdr.sgml**: 20230131

**ACCESSION NUMBER**: 0001408534-23-000008

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230131

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230131

**DATE AS OF CHANGE**: 20230131

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** First Guaranty Bancshares, Inc.
- **CENTRAL INDEX KEY:** 0001408534
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **IRS NUMBER:** 260513559
- **STATE OF INCORPORATION:** LA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37621
- **FILM NUMBER:** 23573016

**BUSINESS ADDRESS:**
- **STREET 1:** 400 EAST THOMAS STREET
- **CITY:** HAMMOND
- **STATE:** LA
- **ZIP:** 70401
- **BUSINESS PHONE:** 985-345-7685

**MAIL ADDRESS:**
- **STREET 1:** 400 EAST THOMAS STREET
- **CITY:** HAMMOND
- **STATE:** LA
- **ZIP:** 70401

?xml version="1.0" ? fgbi-20230131

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **January 31, 2023**

![fgbi-20230131_g1.jpg](fgbi-20230131_g1.jpg)

**FIRST GUARANTY BANCSHARES, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Louisiana** | **001-37621** | **26-0513559** |
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
| incorporation or organization) |  | Identification Number) |
| **400 East Thomas Street** |  |  |
| **Hammond, Louisiana** |  | **70401** |
| (Address of principal executive offices) |  | (Zip Code) |
| **(985) 345-7685** | **(985) 345-7685** | **(985) 345-7685** |
| (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |
| **Not Applicable** | **Not Applicable** | **Not Applicable** |
| (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) |

---

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $1 par value | FGBI | The Nasdaq Stock Market LLC |
| Depositary Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock) | FGBIP | The Nasdaq Stock Market LLC |

---

------

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp; <u>Results of Operations and Financial Condition</u>**

On January 31, 2023, First Guaranty Bancshares, Inc. issued a press release reporting its financial results at and for the three months and year ended December 31, 2022.

The Press Release is enclosed as Exhibit 99.1 to this report. The information in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial Statements and Exhibits.</u>** 

<u>[Exhibit 99.1](fgbi-ex991earningspressrel.htm)</u>&nbsp;&nbsp;&nbsp;&nbsp;Press Release dated January 31, 2023.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | FIRST GUARANTY BANCSHARES, INC. | FIRST GUARANTY BANCSHARES, INC. |
| | (Registrant) | (Registrant) |
| Date: January 31, 2023 |  |  |
|  | By: | /s/Eric J. Dosch |
|  |  | Eric J. Dosch |
|  |  | Chief Financial Officer |

---

------

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[Exhibit 99.1](fgbi-ex991earningspressrel.htm)</u> | Press Release January 31, 2023 "First Guaranty Bancshares, Inc. Announces Fourth Quarter 2022 Results." |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**January 31, 2023**

**NEWS FOR IMMEDIATE RELEASE**

**CONTACT: ERIC J. DOSCH, CFO**

**985.375.0308** **First Guaranty Bancshares, Inc. Announces Fourth Quarter 2022 Results**

**Hammond, Louisiana**, **January 31, 2023** – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter and year ending December 31, 2022.

2022 marked another very successful year for First Guaranty Bancshares, Inc. Earnings increased for the fifth year consecutively. The number of consecutive quarters with a quarterly dividend paid to shareholders increased to 118. Total assets broke through the $3 billion mark to a total of $3,151,347,000 compared to $2,878,120,000 as of the end of December 2021, an increase of 9% year over year. The loan portfolio increased to $2,519,077,000 from $2,159,359,000, an increase of 17% year over year. Asset quality continued to improve as the Texas capital ratio dropped from 6.63% as of December 31, 2021 to 4.48% as of December 31, 2022. The Texas capital ratio was 13.54% as of January 2021. The lower the Texas capital ratio is, the better.

The increase in earnings for the year was modest, $1,600,000 as noted above. The loan portfolio increased in size by 17%. The net earnings were limited by the increase in interest expense as the Federal Reserve raised rates to try to control inflation. The key number is the yield rate on interest earning assets. For the three month period ending December 31, 2021, the yield rate was 5.35%; however, that included PPP fees. If the PPP fees were taken out of that number, the yield rate reduces to 5.12%. For the three months ending December 31, 2022, the yield was 5.77%, an increase of 65 basis points. When you match the significantly higher size of the portfolio with the significantly higher yield as of December 2022, it is clear that First Guaranty Bancshares, Inc. is positioned for significantly stronger earnings in 2023.

Our original markets continue to be strong. Texas, West Virginia and Kentucky have all become major contributors to growth, as expected. The entry into the Houston, Texas market is in process. The table is set for continued financial success. We have continued to improve and strengthen our personnel. We have made significant improvements in our IT processes and our internal loan production processes. We have continued to improve our facilities.

We continue to make First Guaranty Bancshares, Inc. stronger and safer.

Thank you for your continued support.

Sincerely,

Alton B. Lewis

President and CEO

First Guaranty, Bancshares, Inc.

**About First Guaranty**

First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates thirty-six locations throughout Louisiana, Texas, Kentucky and West Virginia. First Guaranty's common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.

*Certain statements contained herein are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in our SEC filings, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which First Guaranty operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.First Guaranty wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. First Guaranty wishes to advise readers that the factors listed above could affect First Guaranty's financial performance and could cause First Guaranty's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. First Guaranty does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.*

------

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| | | |
|:---|:---|:---|
| **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY** |
| **CONSOLIDATED BALANCE SHEETS (unaudited)** | **CONSOLIDATED BALANCE SHEETS (unaudited)** | **CONSOLIDATED BALANCE SHEETS (unaudited)** |
| *(in thousands, except share data)* | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| **Cash and cash equivalents:** |  |  |
| Cash and due from banks | $82796 | $261749 |
| Federal funds sold | 423 | 183 |
| **Cash and cash equivalents** | **83219** | **261932** |
| **Investment securities:** |  |  |
| Available for sale, at fair value | 131458 | 210620 |
| Held to maturity, at cost (estimated fair value of $242,560 and $150,585 respectively) | 320068 | 153536 |
| **Investment securities** | **451526** | **364156** |
| Federal Home Loan Bank stock, at cost | 6528 | 1359 |
| Loans held for sale |  |  |
| Loans, net of unearned income | 2519077 | 2159359 |
| Less: allowance for loan and lease losses | 23518 | 24029 |
| **Net loans** | **2495559** | **2135330** |
| Premises and equipment, net | 58206 | 58637 |
| Goodwill | 12900 | 12900 |
| Intangible assets, net | 4979 | 5922 |
| Other real estate, net | 113 | 2072 |
| Accrued interest receivable | 13002 | 12047 |
| Other assets | 25315 | 23765 |
| **Total Assets** | $**3151347** | $**2878120** |
| **Liabilities and Shareholders' Equity** |  |  |
| **Deposits:** |  |  |
| Noninterest-bearing demand | $524415 | $532578 |
| Interest-bearing demand | 1460259 | 1275544 |
| Savings | 205760 | 201699 |
| Time | 533358 | 586671 |
| **Total deposits** | **2723792** | **2596492** |
| Short-term advances from Federal Home Loan Bank | 120000 |  |
| Short-term borrowings | 20000 |  |
| Repurchase agreements | 6442 | 6439 |
| Accrued interest payable | 4289 | 4480 |
| Long-term advances from Federal Home Loan Bank |  | 3208 |
| Senior long-term debt | 21927 | 25170 |
| Junior subordinated debentures | 15000 | 14818 |
| Other liabilities | 4906 | 3624 |
| **Total Liabilities** | **2916356** | **2654231** |
| **Shareholders' Equity** |  |  |
| Preferred stock, Series A - $1,000 par value - 100,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;Non-cumulative perpetual; 34,500 issued and outstanding | 33058 | 33058 |
| Common stock, $1 par value - 100,600,000 shares outstanding; 10,716,796 shares issued | 10717 | 10717 |
| Surplus | 130093 | 130093 |
| Retained earnings | 76351 | 56654 |
| Accumulated other comprehensive (loss) income | (15228) | (6633) |
| **Total Shareholders' Equity** | **234991** | **223889** |
| **Total Liabilities and Shareholders' Equity** | $**3151347** | $**2878120** |
| *See Notes to Consolidated Financial Statements* |  |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** |
| **CONSOLIDATED STATEMENTS OF INCOME (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED STATEMENTS OF INCOME (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED STATEMENTS OF INCOME (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED STATEMENTS OF INCOME (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED STATEMENTS OF INCOME (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** |
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| *(in thousands, except share data)* | **2022** | **2021** | **2022** | **2021** |
| **Interest Income:** |  |  |  |  |
| Loans (including fees) | $35579 | $27724 | $126002 | $103353 |
| Deposits with other banks | 400 | 106 | 1324 | 316 |
| Securities (including FHLB stock) | 2328 | 2344 | 9250 | 8248 |
| **Total Interest Income** | **38307** | **30174** | **136576** | **111917** |
| **Interest Expense:** |  |  |  |  |
| Demand deposits | 10016 | 2015 | 21419 | 7237 |
| Savings deposits | 486 | 52 | 915 | 204 |
| Time deposits | 2854 | 2963 | 10682 | 12893 |
| Borrowings | 1594 | 407 | 3518 | 1965 |
| **Total Interest Expense** | **14950** | **5437** | **36534** | **22299** |
| **Net Interest Income** | **23357** | **24737** | **100042** | **89618** |
| Less: Provision for loan losses | 758 | 243 | 3656 | 2055 |
| **Net Interest Income after Provision for Loan Losses** | **22599** | **24494** | **96386** | **87563** |
| **Noninterest Income:** |  |  |  |  |
| Service charges, commissions and fees | 796 | 765 | 3160 | 2699 |
| ATM and debit card fees | 815 | 913 | 3406 | 3562 |
| Net (losses) gains on securities |  | (162) | (17) | 714 |
| Net gains on sale of loans | 61 | 507 | 1774 | 942 |
| Other | 830 | 751 | 2686 | 2843 |
| **Total Noninterest Income** | **2502** | **2774** | **11009** | **10760** |
| **Total Business Revenue, Net of Provision for Loan Losses** | **25101** | **27268** | **107395** | **98323** |
| **Noninterest Expense:** |  |  |  |  |
| Salaries and employee benefits | 9453 | 8501 | 36699 | 32179 |
| Occupancy and equipment expense | 2184 | 1935 | 8932 | 8681 |
| Other | 7067 | 6668 | 25374 | 23008 |
| **Total Noninterest Expense** | **18704** | **17104** | **71005** | **63868** |
| **Income Before Income Taxes** | **6397** | **10164** | **36390** | **34455** |
| Less: Provision for income taxes | 1276 | 2115 | 7506 | 7158 |
| **Net Income** | **5121** | **8049** | **28884** | **27297** |
| Less: Preferred stock dividends | 582 | 582 | 2328 | 1384 |
| **Net Income Available to Common Shareholders** | $**4539** | $**7467** | $**26556** | $**25913** |
| **Per Common Share:**<sup>1</sup> |  |  |  |  |
| Earnings | $0.42 | $0.70 | $2.48 | $2.42 |
| Cash dividends paid | $0.16 | $0.16 | $0.64 | $0.60 |
| **Weighted Average Common Shares Outstanding** | 10716796 | 10716796 | 10716796 | 10716796 |
| *See Notes to Consolidated Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* |  |  |  |  |
| <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* |
| <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** |
| **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** |
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| *(in thousands except for %)* | **Average Balance** | **Interest** | **Yield/Rate (5)** | **Average Balance** | **Interest** | **Yield/Rate (5)** |
| **Assets** |  |  |  |  |  |  |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Interest-earning deposits with banks | $47913 | $400 | 3.31% | $281028 | $106 | 0.15% |
| Securities (including FHLB stock) | 458483 | 2328 | 2.01% | 373514 | 2344 | 2.49% |
| Federal funds sold | 359 |  | —% | 191 |  | —% |
| Loans held for sale |  |  | —% | 21 |  | —% |
| Loans, net of unearned income (6) | 2446131 | 35579 | 5.77% | 2056487 | 27724 | 5.35% |
| **Total interest-earning assets** | **2952886** | $**38307** | **5.15%** | **2711241** | $**30174** | **4.42%** |
| **Noninterest-earning assets:** |  |  |  |  |  |  |
| Cash and due from banks | 19905 |  |  | 17896 |  |  |
| Premises and equipment, net | 58036 |  |  | 58849 |  |  |
| Other assets | 32618 |  |  | 28936 |  |  |
| **Total Assets** | $**3063445** |  |  | $**2816922** |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Demand deposits | $1398616 | $10016 | 2.84% | $1210596 | $2015 | 0.66% |
| Savings deposits | 213267 | 486 | 0.91% | 203447 | 52 | 0.10% |
| Time deposits | 530266 | 2854 | 2.13% | 593171 | 2963 | 1.98% |
| Borrowings | 125515 | 1594 | 5.04% | 50313 | 407 | 3.21% |
| **Total interest-bearing liabilities** | **2267664** | $**14950** | **2.62%** | **2057527** | $**5437** | **1.05%** |
| **Noninterest-bearing liabilities:** |  |  |  |  |  |  |
| Demand deposits | 548031 |  |  | 523067 |  |  |
| Other | 13361 |  |  | 12252 |  |  |
| **Total Liabilities** | **2829056** |  |  | **2592846** |  |  |
| **Shareholders' equity** | 234389 |  |  | 224076 |  |  |
| **Total Liabilities and Shareholders' Equity** | $**3063445** |  |  | $**2816922** |  |  |
| **Net interest income** |  | $**23357** |  |  | $**24737** |  |
| **Net interest rate spread (1)** |  |  | **2.53%** |  |  | **3.37%** |
| **Net interest-earning assets (2)** | $**685222** |  |  | $**653714** |  |  |
| **Net interest margin (3), (4)** |  |  | **3.14%** |  |  | **3.62%** |
| **Average interest-earning assets to interest-bearing liabilities** |  |  | **130.22%** |  |  | **131.77%** |

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(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 3.14% and 3.62% for the above periods ended December 31, 2022 and 2021 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2022 and 2021 respectively.

(5)Annualized.

(6)Includes loan fees of $1.5 million and $2.8 million for the three months ended December 31, 2022 and 2021 respectively. PPP loan fee income of $20,000 and $1.2 million was recognized for the three months ended December 31, 2022 and 2021 respectively.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY&nbsp;&nbsp;&nbsp;&nbsp;** |
| **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** | **CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)&nbsp;&nbsp;&nbsp;&nbsp;** |
| | **Years Ended December 31, 2022** | **Years Ended December 31, 2022** | **Years Ended December 31, 2022** | **Years Ended December 31, 2021** | **Years Ended December 31, 2021** | **Years Ended December 31, 2021** |
| *(in thousands except for %)* | **Average Balance** | **Interest** | **Yield/Rate** | **Average Balance** | **Interest** | **Yield/Rate** |
| **Assets** |  |  |  |  |  |  |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Interest-earning deposits with banks | $130406 | $1324 | 1.02% | $258916 | $316 | 0.12% |
| Securities (including FHLB stock) | 452213 | 9250 | 2.05% | 332566 | 8248 | 2.48% |
| Federal funds sold | 256 |  | —% | 1052 |  | —% |
| Loans held for sale |  |  | —% | 16 |  | —% |
| Loans, net of unearned income (6) | 2298273 | 126002 | 5.48% | 2014095 | 103353 | 5.13% |
| **Total interest-earning assets** | **2881148** | $**136576** | **4.74%** | **2606645** | $**111917** | **4.29%** |
| **Noninterest-earning assets:** |  |  |  |  |  |  |
| Cash and due from banks | 18833 |  |  | 15077 |  |  |
| Premises and equipment, net | 58197 |  |  | 59739 |  |  |
| Other assets | 29509 |  |  | 26551 |  |  |
| **Total Assets** | $**2987687** |  |  | $**2708012** |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Demand deposits | $1362396 | $21419 | 1.57% | $1082922 | $7237 | 0.67% |
| Savings deposits | 212329 | 915 | 0.43% | 191967 | 204 | 0.11% |
| Time deposits | 546776 | 10682 | 1.95% | 655025 | 12893 | 1.97% |
| Borrowings | 75962 | 3518 | 4.63% | 82565 | 1965 | 2.38% |
| **Total interest-bearing liabilities** | **2197463** | $**36534** | **1.66%** | **2012479** | $**22299** | **1.11%** |
| **Noninterest-bearing liabilities:** |  |  |  |  |  |  |
| Demand deposits | 552786 |  |  | 477802 |  |  |
| Other | 9669 |  |  | 10619 |  |  |
| **Total Liabilities** | **2759918** |  |  | **2500900** |  |  |
| **Shareholders' equity** | 227769 |  |  | 207112 |  |  |
| **Total Liabilities and Shareholders' Equity** | $**2987687** |  |  | $**2708012** |  |  |
| **Net interest income** |  | $**100042** |  |  | $**89618** |  |
| **Net interest rate spread (1)** |  |  | **3.08%** |  |  | **3.18%** |
| **Net interest-earning assets (2)** | $**683685** |  |  | $**594166** |  |  |
| **Net interest margin (3), (4)** |  |  | **3.47%** |  |  | **3.44%** |
| **Average interest-earning assets to interest-bearing liabilities** |  |  | **131.11%** |  |  | **129.52%** |

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(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 3.48% and 3.44% for the above periods ended December 31, 2022 and 2021 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2022 and 2021 respectively.

(5)Includes loan fees of $7.8 million and $7.2 million for the years ended December 31, 2022 and 2021 respectively. PPP loan fee income of $1.3 million and $2.0 million was recognized for the years ended December 31, 2022 and 2021 respectively.

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The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **June 30, 2022** | **June 30, 2022** | **March 31, 2022** | **March 31, 2022** |
| *(in thousands except for %)* | **Balance** | **As % of Category** | **Balance** | **As % of Category** | **Balance** | **As % of Category** | **Balance** | **As % of Category** |
| **Real Estate:** |  |  |  |  |  |  |  |  |
| Construction & land development | $233091 | 9.2% | $204640 | 8.4% | $175221 | 7.6% | $200504 | 9.0% |
| Farmland | 24823 | 1.0% | 24556 | 1.0% | 28152 | 1.2% | 31840 | 1.4% |
| 1- 4 Family | 366330 | 14.5% | 352501 | 14.5% | 310403 | 13.5% | 293773 | 13.1% |
| Multifamily | 119785 | 4.7% | 118273 | 4.9% | 105454 | 4.6% | 69264 | 3.1% |
| Non-farm non-residential | 992929 | 39.3% | 981954 | 40.5% | 962442 | 41.8% | 894105 | 40.0% |
| **Total Real Estate** | **1736958** | **68.7%** | **1681924** | **69.3%** | **1581672** | **68.7%** | **1489486** | **66.6%** |
| **Non-Real Estate:** |  |  |  |  |  |  |  |  |
| Agricultural | 39045 | 1.5% | 47642 | 2.0% | 37164 | 1.6% | 28850 | 1.3% |
| Commercial and industrial<sup>(1)</sup> | 385279 | 15.3% | 365549 | 15.1% | 397233 | 17.3% | 412672 | 18.4% |
| Commercial leases | 317574 | 12.6% | 281010 | 11.6% | 237560 | 10.3% | 257323 | 11.5% |
| Consumer and other | 47864 | 1.9% | 48188 | 2.0% | 48448 | 2.1% | 48702 | 2.2% |
| **Total Non-Real Estate** | **789762** | **31.3%** | **742389** | **30.7%** | **720405** | **31.3%** | **747547** | **33.4%** |
| **Total loans before unearned income** | **2526720** | **100.0%** | **2424313** | **100.0%** | **2302077** | **100.0%** | **2237033** | **100.0%** |
| Unearned income | (7643) |  | (6986) |  | (6339) |  | (5914) |  |
| **Total loans net of unearned income** | $**2519077** |  | $**2417327** |  | $**2295738** |  | $**2231119** |  |

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(1) Includes PPP loans fully guaranteed by the SBA of $5.9 million, $6.1 million, $12.0 million, and $20.2 million at December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

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The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands)* | **December 31, 2022** | **September 30, 2022** | **June 30, 2022** | **March 31, 2022** |
| **Nonaccrual loans:** |  |  |  |  |
| **Real Estate:** |  |  |  |  |
| Construction and land development | $225 | $104 | $— | $257 |
| Farmland | 290 | 290 | 290 | 291 |
| 1- 4 family | 3826 | 3646 | 3148 | 3266 |
| Multifamily |  |  |  |  |
| Non-farm non-residential | 3746 | 2629 | 2925 | 8172 |
| **Total Real Estate** | **8087** | **6669** | **6363** | **11986** |
| **Non-Real Estate:** |  |  |  |  |
| Agricultural | 1622 | 1645 | 1791 | 1690 |
| Commercial and industrial | 819 | 876 | 864 | 671 |
| Commercial leases | 1799 |  | 152 |  |
| Consumer and other | 1239 | 1168 | 991 | 784 |
| **Total Non-Real Estate** | **5479** | **3689** | **3798** | **3145** |
| **Total nonaccrual loans** | **13566** | **10358** | **10161** | **15131** |
| **Loans 90 days and greater delinquent & accruing:** |  |  |  |  |
| **Real Estate:** |  |  |  |  |
| Construction and land development | 427 | 326 |  | 21 |
| Farmland |  |  |  |  |
| 1- 4 family | 332 | 359 | 210 | 170 |
| Multifamily | 157 | 13 |  | 162 |
| Non-farm non-residential | 103 | 318 | 508 | 478 |
| **Total Real Estate** | **1019** | **1016** | **718** | **831** |
| **Non-Real Estate:** |  |  |  |  |
| Agricultural |  |  |  |  |
| Commercial and industrial | 123 | 444 | 123 | 123 |
| Commercial leases |  |  |  |  |
| Consumer and other |  |  |  |  |
| **Total Non-Real Estate** | **123** | **444** | **123** | **123** |
| **Total loans 90 days and greater delinquent & accruing** | **1142** | **1460** | **841** | **954** |
| **Total non-performing loans** | **14708** | **11818** | **11002** | **16085** |
| **Real Estate Owned:** |  |  |  |  |
| **Real Estate Loans:** |  |  |  |  |
| Construction and land development |  |  |  |  |
| Farmland |  |  |  |  |
| 1- 4 family | 113 | 249 | 218 | 362 |
| Multifamily |  |  |  |  |
| Non-farm non-residential |  | 1418 | 1416 | 1492 |
| **Total Real Estate** | **113** | **1667** | **1634** | **1854** |
| **Non-Real Estate Loans:** |  |  |  |  |
| Agricultural |  |  |  |  |
| Commercial and industrial |  |  |  |  |
| Commercial leases |  |  |  |  |
| Consumer and other |  |  |  |  |
| **Total Non-Real Estate** |  |  |  |  |
| **Total Real Estate Owned** | **113** | **1667** | **1634** | **1854** |
| **Total non-performing assets** | $**14821** | $**13485** | $**12636** | $**17939** |
| **Non-performing assets to total loans** | **0.59%** | **0.56%** | **0.55%** | **0.80%** |
| **Non-performing assets to total assets** | **0.47%** | **0.44%** | **0.43%** | **0.62%** |
| **Non-performing loans to total loans** | **0.58%** | **0.49%** | **0.48%** | **0.72%** |
| **Nonaccrual loans to total loans** | **0.54%** | **0.43%** | **0.44%** | **0.68%** |
| **Allowance for loan and lease losses to nonaccrual loans** | **173.36%** | **226.57%** | **232.09%** | **159.57%** |

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**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.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
| *(in thousands except for share data and %)* | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Tangible Common Equity** |  |  |  |  |  |
| Total shareholders' equity | $234991 | $223889 | $178591 | $166035 | $147284 |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred | 33058 | 33058 |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | 12900 | 12900 | 12900 | 12942 | 3472 |
| &nbsp;&nbsp;&nbsp;Acquisition intangibles | 4355 | 5051 | 5815 | 6527 | 2704 |
| **Tangible common equity** | $**184678** | $**172880** | $**159876** | $**146566** | $**141108** |
| **Common shares outstanding**<sup>1</sup> | 10716796 | 10716796 | 10716796 | 10716796 | 10657245 |
| **Book value per common share**<sup>1</sup> | $18.84 | $17.81 | $16.66 | $15.49 | $13.82 |
| **Tangible book value per common share**<sup>1</sup> | $17.23 | $16.13 | $14.92 | $13.68 | $13.24 |
| **Tangible Assets** |  |  |  |  |  |
| Total Assets | $3151347 | $2878120 | $2473078 | $2117216 | $1817211 |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | 12900 | 12900 | 12900 | 12942 | 3472 |
| &nbsp;&nbsp;&nbsp;Acquisition intangibles | 4355 | 5051 | 5815 | 6527 | 2704 |
| **Tangible Assets** | $**3134092** | $**2860169** | $**2454363** | $**2097747** | $**1811035** |
| **Tangible common equity to tangible assets** | **5.89%** | **6.04%** | **6.51%** | **6.99%** | **7.79%** |
| <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* | <sup>1</sup>*All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.* |

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