First Guaranty Reports Net Income of $8.1 Million for the Third Quarter of 2022; Earnings Per Common Share Increased to $0.70 for the Third Quarter of 2022 Compared to $0.67 for the Third Quarter of 2021

HAMMOND, La., Oct. 28, 2022 (GLOBE NEWSWIRE) -- First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter ending September 30, 2022.

The real strength of your progress is shown when you are swimming against the tide. In the third quarter 2022, First Guaranty Bank showed continued progress and strength by improving its earnings, asset quality and equity while overcoming interest rate increases, adversity due to natural disasters, and market doubts about the economy.

With all of these questions, First Guaranty’s earnings for the nine months ending September 30th increased from $1.72 per share in 2021 to $2.05 in 2022 and the earnings for the three months ending September 30th increased from $0.67 per share in 2021 to $0.70 in 2022. This performance resulted in you receiving today, your 117th consecutive quarterly dividend.

For the period from September 30, 2021, until September 30, 2022, Fed funds interest rates increased from 0.08% to 3.08%. This is a percentage increase of 3,750%. For that same period of time, First Guaranty’s total interest expense increased by only 28%. This management of our deposits allowed us to not only overcome other adversities of the marketplace; but, to increase our earnings.

Perhaps the most significant adversity to crop up was the losses we took on “relief loans.” Over the past seven years, our areas have been hit with a series of natural disasters including two floods, a Covid pandemic, several hurricanes, and an ice storm. For each of these, First Guaranty has quickly stepped forward and offered “relief loans” to its employees, customers, and community members to help them get through the sudden extra expenses and sudden loss of income which comes with these types of events. First Guaranty Bank sees this as part of its duty as a community bank. Hurricane Ida hit parts of Louisiana much more severely than even Katrina. Although the denominations of the relief loans are relatively small ($5,000), the number of losses was much greater than any past experience. We were still able to overcome this adversity and maintain our profitability. Going forward, we have reviewed the criteria for these relief loans in order to still assist our communities, but reduce losses incurred.

The strength is in large part, due to the continuing growth and strength of our loan portfolio. For the nine-month period ending September 30, 2022, our total interest income increased to $98,269,000 from $81,743,000, an increase of 20%. Our loan portfolio increased from $2,073,461,000 at September 30, 2021 to $2,417,327,000, an increase of 17%. Our deposits increased from $2,544,374,000 at September 30, 2021 to $2,708,572,000.

So, what does all this mean to you? It means that your First Guaranty Bancshares, Inc. has grown and gotten stronger so that it can continue to grow even more profitable while overcoming “bumps in the road.” It means that our balance sheet has grown stronger so that we can remain a profitable, income producing asset, as we go forward.

Our aim is to increase our shareholder value while continuing to build a fortress balance sheet.

We appreciate your 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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Eric J. Dosch, CFO 985.375.0308