Alton B. Lewis Chief Executive Officer/President First Guaranty Bancshares, Inc. 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) Sincerely, Assets Cash and cash equivalents: Cash and due from banks $331,592 $168,456 Federal funds sold 465 479 Cash and cash equivalents 332,057 168,935 Investment securities: Available for sale, at fair value 37,752 81,060 Held to maturity, at cost and net of allowance for credit losses of $80 and $100 (estimated fair value of $251,627 and $254,284 respectively) 320,901 320,248 Investment securities 358,653 401,308 Federal Home Loan Bank stock, at cost 10,410 4,523 Loans held for sale - - Loans, net of unearned income 2,752,230 2,574,242 Less: allowance for credit losses 31,450 31,468 Net loans 2,720,780 2,542,774 Premises and equipment, net 70,646 58,600 Goodwill 12,900 12,900 Intangible assets, net 4,088 4,770 Other real estate, net 1,284 887 Accrued interest receivable 17,339 15,332 Other assets 27,634 27,767 Total Assets $3,555,791 $3,237,796 Liabilities and Shareholders’ Equity Deposits: Noninterest-bearing demand 415,113 519,028 Interest-bearing demand 1,556,257 1,531,321 Savings 229,098 206,008 Time 863,408 606,231 Total deposits 3,063,876 2,862,588 Short-term advances from Federal Home Loan Bank - 50,000 Short-term borrowings - 20,000 Repurchase agreements 6,834 6,606 Accrued interest payable 10,182 4,608 Long-term advances from Federal Home Loan Bank 155,000 20,000 Senior long-term debt 18,102 21,116 Junior subordinated debentures 44,700 15,000 Other liabilities 6,777 9,202 Total Liabilities 3,305,471 3,009,120 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; 12,504,717 and 10,716,796 shares issued and outstanding 12,505 10,717 Surplus 149,389 130,093 Retained earnings 67,699 69,622 Accumulated other comprehensive income (loss) (12,331) (14,814) Total Shareholders’ Equity 250,320 228,676 Total Liabilities & Shareholders’ Equity $3,555,791 $3,237,796 March 31, 2024 2023 (unaudited) Three-Months Ended March 31, 2024 2023 (unaudited) Interest Income: Loans (including fees) $ 46,918 $ 38,149 Deposits with other banks 3,476 751 Securities (including FHLB stock) 2,514 2,387 Total Interest Income 52,908 41,287 Interest Expense: Demand deposits 16,976 13,049 Savings deposits 1,227 579 Time deposits 9,572 3,576 Borrowings 3,212 1,782 Total Interest Expense 30,987 18,986 Net Interest Income 21,921 22,301 Less: Provision for credit losses 2,304 314 Net Interest Income after Provision for Credit Losses 19,617 21,987 Noninterest Income: Service charges, commissions and fees 733 785 ATM and debit card fees 764 825 Net gains (losses) on securities - - Net gains on sale of loans - 12 Other 811 1,082 Total Noninterest Income 2,308 2,704 Total Business Revenue, Net of Provision for Credit Losses 21,925 24,691 Noninterest Expense: Salaries and employee benefits 9,900 10,004 Occupancy and equipment expense 2,271 2,202 Other 6,763 7,960 Total Noninterest Expense 18,934 20,166 Income Before Income Taxes 2,991 4,525 Less: Provision for income taxes 681 1,057 Net Income 2,310 3,468 Less: Preferred stock dividends 582 582 Income Available to Common Shareholders $1,728 $2,886 Per Common Share: Earnings $0.14 $0.27 Cash dividends paid Weighted Average Common Shares Outstanding 12,489,910 10,716,796 Return on Average Assets 0.26% 0.45% Return on Average Common Equity 3.17% 5.80% Book Value $17.37 $18.25 $0.16 $0.16 Dear Shareholders, Previously, I reported that we had survived the squeeze on income that was created by the Fed’s rapid hikes in the amount of interest that we had to pay on deposits. Our increase in the rates we receive on our loans had surpassed the negative impact on the Fed’s rate squeeze. That recovery/trend continued in the first quarter of 2024, confirming our prior analysis. With a combination of increased loan interest rates and reduction of expenses, our net income available to shareholders for the quarter ending March 31, 2024 increased to $1,728,000. With a combination of increased loan interest rates and reductions in expenses, our net income for the month of March 2024 increased to $915,813 compared to $904,184 for the month of February. Our salaries and benefits from the month of March 2024 totaled $3,060,652 compared to $3,286,393 for March 2023. We continue to make progress. The battle is not over as the Fed’s have yet to institute the rate decreases. Our Lending staff, Loan Operations department, Credit and Loan Processing have worked diligently to get deals in place at higher rates and to increase the rates we receive on renewals. We have survived this latest ordeal. We will continue to increase earnings. We continue to work to enhance the value of your ownership interest in First Guaranty Bancshares, Inc. Thank you for your support and assistance.