Financial Position - As of December 31, 2022, First Guaranty Bancshares had consolidated total assets of $3.2 billion, total deposits of $2.7 billion, and total shareholders' equity of $235.0 million[19]. - Total deposits held by the company were $2.7 billion as of December 31, 2022[75]. - Public funds deposits amounted to $1.1 billion at the end of 2022, primarily from local government entities[76]. - The investment securities portfolio generated $63.2 million of pre-tax income over the last five years, with a fair value of $195.5 million in U.S. government agency securities as of December 31, 2022[78][79]. - The carrying value of the securities portfolio was $451.5 million as of December 31, 2022, with 14.3% of total assets invested in investment securities[181]. - First Guaranty Bank exceeded all regulatory capital requirements and was considered well-capitalized based on FDIC guidelines as of December 31, 2022[104]. - The company had $20.3 million in brokered deposits, mainly in reciprocal deposit programs, as of December 31, 2022[77]. - The company is required to maintain adequate capital levels, and future capital raising may be challenging depending on market conditions[187]. Loan Portfolio - The loan to deposit ratio was 92.5% as of December 31, 2022, indicating a strong focus on increasing total loans as a percentage of assets[37]. - First Guaranty aims to grow its loan portfolio by targeting small and medium-sized businesses in sectors such as manufacturing, agriculture, and healthcare[38]. - Non-farm non-residential loans totaled $992.9 million, or 39.3% of the total loan portfolio as of December 31, 2022, with owner-occupied loans making up 35.4% of this segment[51]. - Commercial and industrial loans amounted to $385.3 million, or 15.3% of the total loan portfolio as of December 31, 2022, with commercial term loans at $157.5 million, representing 40.9% of commercial and industrial loans[54]. - One- to four-family residential real estate loans totaled $366.3 million, or 14.5% of the total loan portfolio as of December 31, 2022, with jumbo loans exceeding the conforming limit at $29.3 million[57]. - Multifamily loans accounted for $119.8 million, or 4.7% of the total loan portfolio as of December 31, 2022, with underwriting following general guidelines for non-farm non-residential loans[61]. - Agricultural loans totaled $39.0 million, representing 1.5% of the total loan portfolio as of December 31, 2022[65]. - Farmland loans amounted to $24.8 million, or 1.0% of the total loan portfolio at the end of 2022[67]. - Commercial leases reached $317.6 million, making up 12.6% of the total loan portfolio as of December 31, 2022[68]. - Consumer and other loans totaled $47.9 million, or 1.9% of the total loan portfolio at the end of 2022[69]. - As of December 31, 2022, construction and land development loans accounted for $233.1 million, or 9.2% of the total loan portfolio[63]. - Approximately 68.7% of the total loan portfolio was secured by real estate, primarily in Louisiana and North Central Texas[137]. - Approximately $47.7 million in loans were indexed to LIBOR as of December 31, 2022, highlighting exposure to the transition from LIBOR[189]. - The majority of the guaranteed loan portfolio, amounting to $5.9 million, was comprised of loans originated under the SBA PPP program as of December 31, 2022[195]. Growth and Expansion - First Guaranty expanded into Kentucky and West Virginia in 2021, with a branch in Vanceburg, Kentucky, and a loan and deposit production office in Bridgeport, West Virginia[21]. - The company is in the process of acquiring Lone Star Bank, which will expand its geographic footprint into the Greater Houston area and along the I-10 corridor[23]. - The company plans to continue expanding its Texas markets in Dallas-Fort Worth-Arlington and Waco both organically and through strategic acquisitions[37]. - The company has completed four acquisitions since its Share Exchange, enhancing its deposit base and geographic reach in key markets[22]. - The company aims to pursue strategic acquisitions of community banks and non-banking financial companies to supplement organic growth, focusing on targets with quality loan portfolios[46]. Dividend and Shareholder Value - First Guaranty has paid a quarterly dividend on its common stock for 118 consecutive quarters as of December 31, 2022, demonstrating a commitment to returning value to shareholders[21]. - The ability to pay dividends is subject to regulatory guidance and restrictions, and future dividends will depend on various factors including capital levels[202]. - Dividends on the Series A Preferred Stock are non-cumulative and discretionary, with no obligation to pay if not declared by the board[209]. - The Series A Preferred Stock ranks junior to all existing and future indebtedness, affecting the payment of dividends[206]. - Principal shareholders beneficially own approximately 40% of the outstanding common stock as of December 31, 2022[201]. Risk Management and Regulatory Environment - The company emphasizes maintaining strong asset quality through disciplined credit culture and proactive measures in response to economic challenges, including loan relief measures during the COVID-19 pandemic[44]. - The company is subject to extensive regulation, and changes in laws could materially affect operations and financial condition[185]. - The bank's ability to pay dividends is subject to restrictions under Louisiana law, requiring unimpaired surplus equal to 50% of its outstanding capital stock[95]. - The concentration in commercial real estate loans was 399% of total capital, subjecting the company to additional regulatory scrutiny[147]. - The company faces risks related to interest rates, as shifts may reduce net interest income and impact loan demand, delinquencies, and repayment rates[155]. - The company may face increased FDIC deposit insurance assessments due to recent bank failures, which could reduce profitability[191]. - The company adopted the current expected credit loss model effective January 1, 2023, which may impact how credit impairment is recognized[177]. - The company must periodically test goodwill and core deposit intangible assets for impairment, which could adversely affect financial performance[179]. - The company operates in a market area susceptible to natural disasters, which could disrupt operations and increase loan losses[183]. Operational Challenges - Liquidity is essential for operations, with a lack of liquidity potentially jeopardizing the company's financial condition and results of operations[157]. - The company relies heavily on deposits, and recent increases in interest rates have intensified competition for these deposits, which could adversely affect liquidity[157][160]. - The operational and technological infrastructure is critical for growth, and failures in these systems could lead to significant financial losses and reputational damage[172]. - The company may face challenges in maintaining and managing growth, particularly in attracting core deposits and identifying commercial lending opportunities[166]. Performance Metrics - For the year ended December 31, 2022, net interest income totaled $100.0 million, significantly higher than the total noninterest income of $11.0 million, indicating a strong dependence on net interest income for earnings[167]. - Service charges, commissions, and fees contributed $3.2 million, or 28.7% of total noninterest income for the year ended December 31, 2022, up from $2.7 million, or 26.9% in the previous year[168]. - Non-performing assets were $14.8 million, or 0.47% of total assets, adversely affecting net income and requiring management involvement for resolution[142]. - The allowance for credit losses was 0.93% of total loans and 159.90% of total non-performing loans, indicating potential for significant credit losses[145]. - Short-term loans comprised $1.6 billion, or 64.0% of total loans, increasing the risk of significant losses due to balloon payments at maturity[146]. - The assessment range for First Guaranty Bank, based on financial measures and supervisory ratings, is from 1.5 basis points to 30 basis points[116].

Financial Performance - Net income for the third quarter of 2022 was $8.1 million, an increase of $0.3 million or 3.4% compared to $7.8 million in the same period of 2021 [126]. - Earnings per common share were $0.70 for the third quarter of 2022, up from $0.67 for the same period in 2021 [127]. - Net income for the nine months ended September 30, 2022 was $23.8 million, an increase of $4.5 million, or 23.5%, from $19.2 million for the same period in 2021 [212]. - Earnings per common share for the nine months ended September 30, 2022 was $2.05, an increase of 19.2% or $0.33 from $1.72 for the same period in 2021 [212]. Asset and Loan Growth - Total assets increased by $218.7 million, or 7.6%, to $3.10 billion at September 30, 2022 compared to December 31, 2021 [125]. - Total loans at September 30, 2022 were $2.4 billion, an increase of $258.0 million, or 11.9%, compared to December 31, 2021 [125]. - Net loans increased by $258.5 million, or 12.1%, to $2.4 billion as of September 30, 2022, compared to December 31, 2021 [150]. - Investment securities totaled $451.2 million, an increase of $87.1 million, or 23.9%, compared to $364.2 million at December 31, 2021 [155]. Income and Expenses - Net interest income for the third quarter of 2022 was $25.4 million, compared to $23.8 million for the same period in 2021 [130]. - Noninterest income for the third quarter of 2022 was $4.0 million, compared to $2.1 million for the same period in 2021 [133]. - Noninterest expense for Q3 2022 was $17.8 million, an increase from $15.8 million in Q3 2021, with salaries and benefits expense rising to $9.2 million from $8.1 million [243]. - Interest expense increased by $4.7 million, or 27.7%, to $21.5 million for the nine months ended September 30, 2022 from $16.9 million for the same period in 2021 [227]. Loan Loss Provisions - The provision for loan losses for the third quarter of 2022 was $1.5 million, compared to $0.3 million for the same period in 2021 [131]. - The provision for loan losses totaled $2.9 million for the first nine months of 2022, compared to $1.8 million for the same period in 2021 [153]. - Provision for loan losses increased to $1.5 million for Q3 2022 from $0.3 million in Q3 2021, with total charge-offs of $1.8 million compared to $0.7 million in the prior year [236]. - For the nine months ended September 30, 2022, provision for loan losses was $2.9 million, up from $1.8 million in the same period in 2021, with total charge-offs of $5.1 million compared to $1.5 million [237]. Deposits and Equity - Total deposits increased by $112.1 million, or 4.3%, to $2.7 billion from December 31, 2021, to September 30, 2022 [193]. - Total shareholders' equity rose to $231.4 million at September 30, 2022, up from $223.9 million at December 31, 2021, driven by a $16.9 million increase in retained earnings [209]. - Noninterest-bearing demand deposits rose by $2.0 million, or 0.4%, to $534.5 million, primarily due to growth in compensating balances associated with new loan originations [193]. - Total public funds deposits reached $1.07 billion at September 30, 2022, compared to $957.9 million at December 31, 2021, marking a 11.5% increase [204]. Asset Quality - Total impaired loans decreased by $8.2 million to $6.8 million at September 30, 2022 compared to $15.0 million at December 31, 2021 [138]. - Non-performing assets decreased by $6.5 million, or 32.7%, to $13.5 million, representing 0.44% of total assets as of September 30, 2022 [165]. - Nonaccrual loans decreased from $16.7 million at December 31, 2021, to $10.4 million at September 30, 2022 [166]. - The allowance for loan and lease losses was $23.5 million, representing 0.97% of total loans and 198.6% of nonperforming loans [179]. Interest Rate Sensitivity - The interest sensitivity gap at September 30, 2022, was $(983,907,000), indicating a liability-sensitive position [268]. - A 100 basis point increase in interest rates could lead to a decrease in net interest income by 2.52% [271]. - The estimated change in net interest income from a gradual 100 basis point increase in interest rates is a decrease of 1.44% [271]. - The Bank's asset/liability management process aims to maximize net interest income while controlling interest rate risk [261].

Financial Performance - Net income for the second quarter of 2022 was $8.1 million, an increase of $1.7 million or 26.3% compared to $6.4 million in the second quarter of 2021 [126]. - Earnings per common share were $0.70 for the second quarter of 2022, compared to $0.58 for the same period in 2021 [127]. - Net income for the six months ended June 30, 2022 was $15.7 million, an increase of $4.3 million, or 37.1%, from $11.5 million for the same period in 2021 [211]. - Earnings per common share for the six months ended June 30, 2022 was $1.36, an increase of 29.5% or $0.31 per common share from $1.05 for the same period in 2021 [211]. Asset and Loan Growth - Total assets increased by $81.2 million, or 2.8%, to $2.96 billion at June 30, 2022 compared to December 31, 2021 [125]. - Total loans at June 30, 2022 were $2.3 billion, an increase of $136.4 million, or 6.3%, compared to December 31, 2021 [125]. - Net loans increased by $136.8 million, or 6.4%, to $2.3 billion as of June 30, 2022, compared to December 31, 2021 [149]. - Non-farm non-residential loan balances increased by $76.0 million due to new originations, while multifamily loans increased by $39.6 million primarily from the conversion of existing construction loans to permanent financing [149]. Interest Income and Margin - Net interest income for the second quarter of 2022 was $26.3 million, compared to $21.4 million for the same period in 2021 [130]. - The net interest margin for the three months ended June 30, 2022 was 3.72%, an increase of 39 basis points from 3.33% for the same period in 2021 [134]. - Net interest income for the six months ended June 30, 2022 was $51.3 million, up from $41.0 million in the prior year, reflecting an increase of $10.3 million, or 25.1% [216]. - Average yield of interest-earning assets increased by 30 basis points to 4.49% for the six months ended June 30, 2022 from 4.19% for the same period in 2021 [221]. Non-Performing Assets - Total non-performing loans decreased to $11.0 million from $18.0 million, a reduction of $6.0 million, or 33.4% [162]. - Non-performing assets decreased by $7.4 million, or 36.9%, to $12.6 million, representing 0.43% of total assets as of June 30, 2022 [164]. - The allowance for loan and lease losses was $23.6 million as of June 30, 2022, compared to $24.0 million at December 31, 2021 [152]. Deposits and Equity - Total deposits increased by $63.6 million, or 2.4%, to $2.7 billion from December 31, 2021 to June 30, 2022 [191]. - Total shareholders' equity increased to $226.5 million at June 30, 2022, from $223.9 million at December 31, 2021, primarily due to an increase in retained earnings [208]. - Public funds deposits totaled $1.0 billion at June 30, 2022, up from $957.9 million at December 31, 2021, indicating a growth of 4.5% [201]. Loan Loss Provisions - A provision for loan losses of $1.4 million was made during the six months ended June 30, 2022, compared to $1.5 million for the same period in 2021 [180]. - The provision for loan losses is based on management's evaluation of economic conditions and changes in the loan portfolio [233]. - The allowance for loan losses is considered adequate to cover potential losses, although economic uncertainty may lead to future increases [236]. Interest Rate Sensitivity - The interest sensitivity gap was $(833,876,000) on a one-year basis, indicating a liability-sensitive position [266]. - A 400 basis point increase in interest rates could lead to a decrease in net interest income by 3.59% [269]. - The Bank's asset/liability management process aims to maintain stable net interest income levels under various interest rate environments [259].

Financial Performance - Net income for the first quarter of 2022 was $7.6 million, an increase of $2.6 million or 51% from $5.0 million in the first quarter of 2021[124]. - Earnings per common share increased to $0.65 for the first quarter of 2022, compared to $0.47 for the same period in 2021[124]. - Net interest income for the first quarter of 2022 was $25.0 million, up from $19.6 million in the same period of 2021[127]. - The net interest margin increased by 34 basis points to 3.59% for the three months ended March 31, 2022, compared to 3.25% for the same period in 2021[130]. - Noninterest income decreased to $2.0 million for the three months ended March 31, 2022, down from $2.3 million in the same period in 2021, primarily due to increased losses on securities sales[223]. - Noninterest expense rose to $16.8 million for the three months ended March 31, 2022, compared to $15.0 million for the same period in 2021, driven by higher salaries and benefits expenses[225]. - The provision for income taxes increased to $2.0 million for the three months ended March 31, 2022, up from $1.3 million in the same period in 2021, reflecting an increase in income before income taxes[227]. Asset and Loan Growth - Total assets increased by $32.0 million, or 1.1%, to $2.9 billion as of March 31, 2022, compared to December 31, 2021[123]. - Total loans rose by $71.8 million, or 3.3%, to $2.2 billion at March 31, 2022, compared to December 31, 2021[123]. - The average outstanding loan balance increased to $2.15 billion at March 31, 2022, compared to $1.91 billion at March 31, 2021[185]. - Investment securities increased by $88.6 million to $452.8 million at March 31, 2022, compared to $364.2 million at December 31, 2021[150]. - Held to maturity securities increased by $166.0 million, or 108.1%, to $319.6 million at March 31, 2022[153]. - As of March 31, 2022, 66.6% of the loan portfolio was secured by real estate, with non-farm non-residential loans making up 40.0% of the portfolio[146]. Loan Quality and Impairment - Total impaired loans decreased by $3.5 million to $11.5 million at March 31, 2022, compared to $15.0 million at December 31, 2021[133]. - Special mention loans decreased by $43.9 million to $94.8 million at March 31, 2022, compared to $138.7 million at December 31, 2021[147]. - Non-performing assets totaled $17.9 million, or 0.62% of total assets, a decrease from $20.0 million, or 0.70%, at December 31, 2021[160]. - Nonaccrual loans decreased from $16.7 million at December 31, 2021, to $15.1 million at March 31, 2022[161]. - Loans 90 days or greater delinquent and still accruing totaled $1.0 million, a decrease of $0.3 million compared to $1.2 million at December 31, 2021[162]. - The allowance for loan and lease losses totaled $24.1 million at March 31, 2022, with loan charge-offs of $0.8 million in Q1 2022[148]. Deposits and Funding - Total deposits increased by $27.4 million, or 1.1%, to $2.6 billion from December 31, 2021, to March 31, 2022[187]. - Noninterest-bearing demand deposits rose by $23.4 million, or 4.4%, to $556.0 million at March 31, 2022, primarily due to growth in compensating balances[187]. - Interest-bearing demand deposits increased by $23.8 million, or 1.9%, to $1.3 billion at March 31, 2022, mainly concentrated in public funds[187]. - Time deposits decreased by $23.6 million, or 4.0%, to $563.0 million at March 31, 2022, due to the transition of public funds customers to interest-bearing deposits[187]. - Public funds deposits totaled $979.5 million at March 31, 2022, compared to $957.9 million at December 31, 2021, representing an increase due to seasonal fluctuations[196]. Capital and Ratios - Total shareholders' equity decreased to $221.8 million at March 31, 2022, from $223.9 million at December 31, 2021[203]. - As of March 31, 2022, the Bank's Tier 1 Risk-based Capital Ratio was 8.00%, down from 10.40% at December 31, 2021, indicating a decrease in capital adequacy[239]. - The capital conservation buffer was 3.38% as of March 31, 2022, exceeding the minimum requirement of 2.50%[236]. Interest Income and Expense - Interest income increased by $5.1 million, or 20.3%, to $30.5 million for the three months ended March 31, 2022, compared to the prior year period[210]. - Interest expense declined due to decreases in market interest rates and a strategy to increase lower-cost deposits[205]. - The average yield of interest-earning assets rose by 18 basis points to 4.38% for the three months ended March 31, 2022, up from 4.20% in the same period of 2021[210]. - The net interest rate spread increased by 35 basis points to 3.34% for the three months ended March 31, 2022, compared to 2.99% for the same period in 2021[208]. - Interest-sensitive assets totaled $992,440,000 within the one-year time frame[248]. Risk Management - The interest sensitivity analysis indicated a liability-sensitive position with a negative cumulative gap of $(804,077,000) on a one-year basis[245]. - The company maintains exposure to interest rate fluctuations within prudent levels using various investment strategies, including internal modeling[243]. - The interest sensitivity gap reflects the difference between total interest-sensitive assets and liabilities, indicating potential risk exposure[246]. - The analysis does not factor in prepayments or interest rate floors, which could significantly alter the results[245].

Financial Performance - As of December 31, 2021, the company had consolidated total assets of $2.9 billion, total deposits of $2.6 billion, and total shareholders' equity of $223.9 million[17]. - The loan-to-deposit ratio was 83.2% as of December 31, 2021, indicating a strong focus on increasing total loans as a percentage of assets[36]. - The company has grown from $159 million in assets in 1993 to $2.9 billion in assets by the end of 2021, demonstrating significant growth over the years[19]. - The company has completed four acquisitions since its Share Exchange, which added stable deposits and expanded its geographic footprint[20]. - The company has a deposit market share of 37.5% in the Hammond MSA, placing it first overall in that market[24]. - Total deposits held by the company were $2.6 billion as of December 31, 2021, including $957.9 million in public funds deposits[77][78]. - The investment securities portfolio had a fair value of $266.7 million, with U.S. government agency securities comprising the largest share[80]. - The company generated $68.7 million of pre-tax income from its securities portfolio over the last five years, with no temporary impairments recognized for the year ended December 31, 2021[81]. - The bank had $43.9 million in brokered deposits, primarily in reciprocal deposit programs, as of December 31, 2021[79]. Loan Portfolio - As of December 31, 2021, non-farm non-residential loans totaled $886.4 million, representing 40.9% of the total loan portfolio, with owner-occupied loans at $332.2 million, or 37.5% of non-farm non-residential loans[50]. - Commercial and industrial loans amounted to $398.4 million, or 18.4% of the total loan portfolio, with commercial term loans at $157.9 million, or 39.6% of commercial and industrial loans[53]. - The company holds $288.3 million in one- to four-family residential real estate loans, accounting for 13.3% of the total loan portfolio, with jumbo loans totaling $29.1 million[57]. - Multifamily loans stood at $65.8 million, or 3.0% of the total loan portfolio, with underwriting following guidelines for non-farm non-residential loans[61]. - The total loan portfolio included $174.3 million in construction and land development loans, representing 8.1% of the total[64]. - Agricultural loans amounted to $26.7 million, or 1.2% of the total loan portfolio, with a focus on crops and secured by various collateral[66]. - Farmland loans totaled $31.8 million, accounting for 1.5% of the total loan portfolio, with terms up to five years and potential for 100% financing with guarantees[68]. - Commercial leases reached $246.0 million, representing 11.4% of the total loan portfolio, with an average size of approximately $16.0 million[69]. - Consumer and other loans totaled $48.1 million, or 2.2% of the total loan portfolio, with $23.8 million being unsecured[70]. Strategic Initiatives - The company plans to continue expanding its Texas markets in Dallas-Fort Worth-Arlington and Waco both organically and through strategic acquisitions[36]. - The company aims to grow its market share along key interstate corridors in Louisiana and expand its services to small and medium-sized businesses[36]. - The company is expanding its small business lending program, focusing on SBA, USDA, and commercial leasing loans, leveraging expertise from the acquisition of Synergy Bank[39]. - The company plans to pursue strategic acquisitions of community banks and non-banking financial companies to supplement organic growth, focusing on targets with quality loan portfolios[45]. - The bank's expansion into Kentucky and West Virginia includes loan and deposit production offices, indicating a strategic move to grow its market presence[23]. - First Guaranty Bank plans to grow its loan portfolio by targeting small and medium-sized businesses in various sectors, including agriculture and healthcare[37]. Regulatory Environment - The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 exempts banks with less than $10 billion in assets from certain regulations, including the ability-to-repay requirements for qualified residential mortgage loans[93]. - The CARES Act provided over $2 trillion to support the economy during the COVID-19 pandemic, including the establishment of the Paycheck Protection Program (PPP) to support affected businesses[95]. - As of December 31, 2021, First Guaranty Bank exceeded all regulatory capital requirements and was considered well-capitalized based on FDIC guidelines[104]. - Federal regulations require a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, and a total capital to risk-based assets of 8%[97]. - The community bank leverage ratio was temporarily reduced to 8% under the CARES Act, with plans to revert to 9% thereafter[103]. - First Guaranty Bank is subject to concentrated commercial real estate lending regulations, which require heightened risk management practices if certain concentration thresholds are met[106]. - Transactions between First Guaranty Bank and its affiliates are limited to 10% of the institution's capital stock and surplus for any one affiliate, with an aggregate limit of 20%[114]. - The bank's ability to pay dividends is subject to Louisiana law, which requires an unimpaired surplus equal to 50% of its outstanding capital stock before and after the dividend payment[96]. - The FDIC has the authority to establish higher capital requirements for individual institutions if deemed necessary based on qualitative factors[102]. - First Guaranty Bank did not elect to follow the community bank leverage ratio as of December 31, 2021[103]. Competition and Market Challenges - The bank faces intense competition in loan making and deposit attraction, particularly from larger financial institutions in its market areas[83]. - The bank's market areas face intense competition from larger financial institutions, impacting its ability to attract deposits and make loans[83]. Employee and Operational Information - The bank employed 463 full-time and 27 part-time employees as of December 31, 2021, with no collective bargaining agreements in place[86]. - The bank is required to maintain non-interest-earning reserves against transaction accounts, which were reduced to zero in March 2020 due to COVID-19[121]. - The bank is subject to consolidated regulatory capital requirements as a bank holding company, but is not currently subject to the Federal Reserve Board's consolidated capital adequacy guidelines as it does not have more than $3.0 billion in total assets[131]. - The bank's operations are subject to various federal laws, including the Truth-In-Lending Act and the Equal Credit Opportunity Act, which govern credit transactions[125]. - First Guaranty Bank has elected "financial holding company" status, allowing it to engage in a broader array of financial activities[130].

Financial Performance - Net income for the third quarter of 2021 was $7.8 million, up from $5.2 million in the same period of 2020[120]. - Earnings per common share increased to $0.74 for the third quarter of 2021 from $0.53 in the third quarter of 2020[121]. - Net income for the nine months ended September 30, 2021, was $19.2 million, contributing to an increase in retained earnings of $13.8 million[200]. - Net income for Q3 2021 was $7.8 million, a 50.3% increase from $5.2 million in Q3 2020[202]. - Net income for the nine months ended September 30, 2021 was $19.2 million, a 35.6% increase from $14.2 million in the same period of 2020[203]. Asset and Loan Growth - Total assets increased by $351.4 million, or 14.2%, to $2.8 billion at September 30, 2021 compared to December 31, 2020[119]. - Total loans increased by $229.3 million, or 12.4%, to $2.1 billion at September 30, 2021 compared to December 31, 2020[119]. - Net loans increased by $228.5 million, or 12.6%, to $2.0 billion as of September 30, 2021, compared to December 31, 2020[144]. - The loan portfolio's average outstanding balance increased to $1.999 billion at September 30, 2021, from $1.614 billion at September 30, 2020[182]. - Loans, including those held for sale, totaled $2,073,461,000, indicating strong lending activity[260]. Deposit Growth - Total deposits rose by $378.1 million, or 17.5%, to $2.5 billion at September 30, 2021 compared to December 31, 2020[119]. - Total deposits increased to $2,364.8 million as of September 30, 2021, up from $2,046.6 million at December 31, 2020, representing a growth of 15.6%[189]. - Noninterest-bearing demand deposits rose by $88.2 million, or 21.4%, to $499.6 million at September 30, 2021[184]. - Interest-bearing demand deposits increased by $385.6 million, or 44.8%, to $1.2 billion at September 30, 2021[184]. - Public funds deposits rose to $885.3 million at September 30, 2021, compared to $715.3 million at December 31, 2020, marking an increase of 23.7%[192]. Interest Income and Expense - Net interest income for the third quarter of 2021 was $23.8 million, compared to $19.0 million for the same period in 2020[125]. - Interest income for Q3 2021 increased by $4.2 million, or 16.8%, to $29.4 million compared to Q3 2020[210]. - Interest expense decreased by $0.6 million, or 9.0%, to $5.6 million for the three months ended September 30, 2021, compared to $6.1 million for the same period in 2020[217]. - For the nine months ended September 30, 2021, interest expense decreased by $3.3 million, or 16.2%, to $16.9 million from $20.1 million in the same period in 2020[218]. Noninterest Income and Expense - Noninterest income for the third quarter of 2021 was $2.1 million, down from $3.6 million in the same period of 2020[128]. - Noninterest income totaled $8.0 million for the nine months ended September 30, 2021, a decrease of $1.3 million from $9.3 million for the same period in 2020, primarily due to decreased gains on securities sales[233]. - Noninterest expense increased to $46.8 million for the nine months ended September 30, 2021, compared to $42.6 million for the same period in 2020, driven by higher salaries and benefits expenses[236]. Asset Quality - The provision for loan losses decreased to $0.3 million in the third quarter of 2021 from $1.5 million in the same period of 2020[126]. - The provision for loan losses totaled $1.8 million for the first nine months of 2021, down from $4.6 million for the same period in 2020[147]. - Non-performing assets decreased by $8.0 million, or 26.0%, to $22.9 million, representing 0.81% of total assets as of September 30, 2021[158]. - Nonaccrual loans increased from $15.6 million at December 31, 2020, to $17.8 million at September 30, 2021[159]. - Loans 90 days or greater delinquent and still accruing totaled $2.6 million, a decrease of $10.5 million compared to $13.1 million at December 31, 2020[160]. Capital and Equity - Total shareholders' equity increased to $219.1 million at September 30, 2021, up from $178.6 million at December 31, 2020, reflecting a growth of 22.7%[200]. - The Bank's Tier 1 Risk-based Capital Ratio was 8.00% as of September 30, 2021, down from 10.39% at December 31, 2020, indicating a decrease in capital adequacy[251]. - The capital conservation buffer was 3.48% as of September 30, 2021, exceeding the minimum requirement of 2.50%[248]. Securities and Investments - Investment securities totaled $380.1 million, an increase of $141.6 million from $238.5 million at December 31, 2020[149]. - The held to maturity securities portfolio was $153.3 million, or 40.3% of the investment portfolio, as of September 30, 2021, compared to $0 at December 31, 2020[242]. - The available for sale securities portfolio was $226.8 million, or 59.7% of the investment portfolio, as of September 30, 2021, down from $238.5 million at December 31, 2020[242]. Liquidity and Funding - First Guaranty maintained a net borrowing capacity at the Federal Home Loan Bank totaling $412.8 million at September 30, 2021, compared to $161.2 million at December 31, 2020[243]. - The Bank's liquidity management includes a discount window line with the Federal Reserve Bank and federal funds lines of credit with borrowing capacity of $100.5 million[243]. - Demand deposits reached $1,245,969,000, representing a significant portion of total source of funds[260].

Financial Performance - Net income for the second quarter of 2021 was $6.4 million, up from $5.2 million in the second quarter of 2020[123]. - Net income for the six months ended June 30, 2021, was $11.5 million, a 27.2% increase from $9.0 million in the same period of 2020[203]. - Earnings per common share increased to $0.64 for the second quarter of 2021 from $0.53 in the second quarter of 2020[124]. - Net interest income for the second quarter of 2021 was $21.4 million, compared to $18.8 million for the same period in 2020[128]. - Noninterest income for the second quarter of 2021 was $3.6 million, compared to $3.3 million for the same period in 2020[131]. - Net interest income for the six months ended June 30, 2021, was $41,049 thousand, up from $36,763 thousand in the same period in 2020, representing an increase of 11.9%[1]. - Noninterest income totaled $5,900 thousand for the six months ended June 30, 2021, an increase of $200 thousand from $5,800 thousand for the same period in 2020[2]. Asset and Loan Growth - Total assets increased by $272.0 million, or 11.0%, to $2.7 billion at June 30, 2021 compared to December 31, 2020[122]. - Total loans increased by $222.3 million, or 12.1%, to $2.1 billion at June 30, 2021 compared to December 31, 2020[122]. - Net loans increased by $221.3 million, or 12.2%, to $2.0 billion as of June 30, 2021, compared to December 31, 2020[144]. - Investment securities totaled $446.3 million, an increase of $207.7 million from $238.5 million at December 31, 2020[148]. - The held to maturity securities portfolio was $153.1 million, or 34.3% of the investment portfolio, as of June 30, 2021, compared to $0 at December 31, 2020[242]. Deposit Growth - Total deposits rose by $254.4 million, or 11.7%, to $2.4 billion at June 30, 2021 compared to December 31, 2020[122]. - Noninterest-bearing demand deposits rose by $71.9 million, or 17.5%, to $483.3 million at June 30, 2021, driven by economic conditions related to the CARES Act and stimulus payments[185]. - Interest-bearing demand deposits increased by $216.1 million, or 25.1%, to $1.1 billion at June 30, 2021, primarily in public funds[185]. - Public funds deposits rose to $821.9 million at June 30, 2021, compared to $715.3 million at December 31, 2020, marking an increase of 14.8%[195]. - Total deposits increased to $2,310.3 million as of June 30, 2021, up from $2,046.6 million at December 31, 2020, representing a growth of 12.9%[194]. Loan Loss Provisions and Asset Quality - The provision for loan losses decreased to $0.9 million in the second quarter of 2021 from $1.8 million in the same period of 2020[129]. - The provision for loan losses totaled $1.5 million for the first six months of 2021, down from $3.1 million for the same period in 2020[146]. - Non-performing assets decreased by $5.6 million, or 18.1%, to $25.3 million, representing 0.92% of total assets as of June 30, 2021[158]. - Nonaccrual loans decreased from $15.6 million at December 31, 2020, to $15.1 million at June 30, 2021[159]. - Loans 90 days or greater delinquent and still accruing totaled $8.2 million, a decrease of $4.9 million compared to $13.1 million at December 31, 2020[160]. Shareholder Equity and Capital Ratios - Total shareholders' equity increased to $214.3 million at June 30, 2021, from $178.6 million at December 31, 2020, reflecting a growth of 19.98%[200]. - The Tier 1 Risk-based Capital Ratio was 8.00% as of June 30, 2021, down from 10.64% at December 31, 2020, indicating a decrease in capital adequacy[252]. - The capital conservation buffer was 3.78% as of June 30, 2021, exceeding the minimum requirement of 2.50%[249]. Interest Income and Expense - Interest income on loans increased by $2.8 million, or 12.3%, to $25.2 million in Q2 2021[212]. - Interest expense decreased by $0.9 million, or 14.5%, to $5.5 million for the three months ended June 30, 2021, compared to $6.5 million for the same period in 2020[217]. - For the six months ended June 30, 2021, interest expense decreased by $2.7 million, or 19.4%, to $11.3 million from $14.0 million in the prior year[218]. - The average yield of interest-earning assets decreased by 59 basis points to 4.19% for the first half of 2021 compared to 4.78% for the same period in 2020[213]. Other Financial Metrics - The average maturity of the securities portfolio is forecasted to be approximately 7.85 years based on the current interest rate environment[152]. - The company charged off $0.8 million in loan balances during the first six months of 2021[182]. - The company maintained a net borrowing capacity at the Federal Home Loan Bank totaling $280.1 million as of June 30, 2021, an increase from $161.2 million at December 31, 2020[243]. - The cumulative gap as a percent of earning assets is (28.2)%[261]. - A gradual 400 basis point increase in interest rates would lead to a net interest income decrease of (5.73)%[263].

Financial Performance - Net income for the first quarter of 2021 was $5.0 million, up from $3.8 million in the same period of 2020[125]. - Earnings per common share were $0.52 for the first quarter of 2021, compared to $0.39 for the same period in 2020[125]. - Net income for the three months ended March 31, 2021 was $5.0 million, an increase of $1.2 million, or 31.3%, from $3.8 million for the same period in 2020[200]. - The net income for the three-month period ended March 31, 2021, was $5.0 million, partially offset by $1.6 million in cash dividends paid on common stock[229]. Asset and Loan Growth - Total assets increased by $93.6 million, or 3.8%, to $2.6 billion as of March 31, 2021, compared to December 31, 2020[124]. - Total loans rose by $122.3 million, or 6.6%, to $2.0 billion at March 31, 2021, compared to December 31, 2020[124]. - Total deposits increased by $148.4 million, or 6.8%, to $2.3 billion at March 31, 2021, compared to December 31, 2020[124]. - The average outstanding balance of loans was $1.91 billion for the three months ended March 31, 2021, compared to $1.51 billion for the same period in 2020[183]. Interest Income and Margin - Net interest income for the first quarter of 2021 was $19.6 million, compared to $17.9 million for the same period in 2020[129]. - The net interest margin decreased by 32 basis points to 3.25% for the three months ended March 31, 2021, compared to 3.57% for the same period in 2020[132]. - Interest income on loans increased by $1.3 million, or 5.7%, to $23.8 million for the three months ended March 31, 2021[207]. - Average yield of interest-earning assets decreased by 86 basis points to 4.20% for the three months ended March 31, 2021[205]. Loan Losses and Allowance - The allowance for loan losses was 1.26% of total loans at March 31, 2021, down from 1.33% at December 31, 2020[127]. - The allowance for loan losses was $24.8 million, representing 1.26% of total loans and 98.2% of nonperforming loans as of March 31, 2021[173]. - A provision for loan losses of $0.6 million was recorded for the three months ended March 31, 2021, compared to $1.2 million for the same period in 2020[175]. - Total charge-offs were $0.4 million for the three months ended March 31, 2021, compared to $0.3 million for the same period in 2020[216]. Non-Performing Assets - Non-performing assets totaled $27.2 million, or 1.06% of total assets, at March 31, 2021, down from $30.9 million, or 1.25%, at December 31, 2020, representing a decrease of $3.7 million or 12.0%[159]. - Total impaired loans increased by $1.7 million to $17.6 million at March 31, 2021, compared to $15.9 million at December 31, 2020[135]. - Nonaccrual loans increased to $16.1 million at March 31, 2021, from $15.6 million at December 31, 2020[160]. - Loans 90 days or greater delinquent and still accruing totaled $9.1 million, a decrease of $4.0 million compared to $13.1 million at December 31, 2020[161]. Deposits and Funding - Noninterest-bearing demand deposits rose by $55.3 million, or 13.4%, to $466.7 million at March 31, 2021, driven by economic conditions related to the CARES Act and stimulus payments[185]. - Interest-bearing demand deposits increased by $70.7 million, or 8.2%, to $931.1 million at March 31, 2021[185]. - Total public funds deposits increased to $767.7 million at March 31, 2021, compared to $715.3 million at December 31, 2020, reflecting seasonal fluctuations[192]. - The total amount of outstanding certificates of deposit greater than or equal to $100,000 was approximately $513.7 million as of March 31, 2021[187]. Capital and Equity - Total shareholders' equity decreased to $176.3 million at March 31, 2021 from $178.6 million at December 31, 2020, primarily due to a decrease in accumulated other comprehensive income[198]. - First Guaranty issued 34,500 shares of 6.75% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock, raising total gross proceeds of $34.5 million[230]. - The Bank's Tier 1 Risk-based Capital Ratio was 8.00% as of March 31, 2021, down from 10.33% at December 31, 2020[236]. Interest Rate Risk Management - The cumulative interest sensitivity gap was $(492,996) as of March 31, 2021, indicating a liability-sensitive position[245]. - An instantaneous increase of 400 basis points in interest rates would result in a 2.02% increase in net interest income[247]. - A gradual increase of 400 basis points in interest rates would lead to a decrease of 0.52% in net interest income[247]. - The company considers various factors, including borrower debt servicing ability, when monitoring interest rate risk exposure[247].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________. Commission file number: 001-37621 FIRST GUARANTY BANCSHARES, INC. (Exact name of registrant as specified in its charter) Louisiana 26-051355 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from __________ to __________ Commission File Number: 001-37621 FIRST GUARANTY BANCSHARES, INC. (Exact name of registrant as specified in its charter) Louisiana 26-0513559 (State ...