First Guaranty Bancshares (FGBI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

          A Message to Our Stockholders

Dear Shareholders:

For the quarter ending March 31, 2010, First Guaranty Bank recorded net income of $2.6 million with net income available to common shareholders of $2.3 million. This compares favorably to net income for the same period in 2009 of $1.1 million. The earnings per share to common shareholders for the first quarter of 2010 were $0.40 per share compared to $0.19 per share for the first quarter of 2009. In addition to the earnings, $679,000 was added though the provision for loan losses. The allowance for loan losses for the first quarter of 2010 totaled $8.3 million compared to $6.4 million as of March 31, 2009.

Common stock equity as of March 31, 2010 equaled $77.4 million compared to $63.5 million as of March 31, 2009. The book value per share of common stock as of March 31, 2010 was $13.91 as compared to a book value per share as of March 31, 2009 of $11.43. This constitutes an increase of $2.48 per share.

The increase in earnings is as a result of strategies developed by our board of directors and implemented by management resulting in increased loans and loan income, decreased cost of funds, and increased gains from the sale of securities while at the same time controlling costs and expenses.

Thank you for your investment in First Guaranty Bancshares, Inc. and for your continued support. If you have any questions about our financial position or any of the information presented in this report, please contact me directly at (985) 375-0350.

Sincerely,

/s/ Alton B. Lewis

Alton B. Lewis

Chief Executive Officer

First Guaranty Bancshares, Inc.

Statements of Condition

(in thousands, except share data)

	March 31,
	2010		2009
	(unaudited)
Assets
Cash and cash equivalents:
Cash and due from banks	$	16,403	$	18,040
Interest-earning demand deposits with banks		17,168		45,230
Federal funds sold		32,181		50,533
Cash and cash equivalents		65,752		113,803
Interest-earning time deposits with banks		-		18,766
Investment securities:
Available for sale, at fair value		247,275		235,816
Held to maturity, at cost (estimated fair value of $12,462 and $20,272, respectively)		12,247		20,159
Investment securities		259,522		255,975
Federal Home Loan Bank stock, at cost		2,785		946
Loans held for sale		264		56
Loans, net of unearned income		602,637		591,473
Less: allowance for loan losses		8,268		6,444
Net loans		594,369		585,029
Premises and equipment, net		16,976		16,077
Goodwill		1,999		1,980
Intangible assets, net		1,839		2,007
Other real estate, net		1,417		720
Accrued interest receivable		6,626		5,390
Other assets		8,318		7,871
Total Assets	$	959,867	$	1,008,620
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand	$	122,957	$	118,008
Interest-bearing demand		202,754		247,042
Savings		41,607		42,873
Time		460,139		503,899
Total deposits		827,457		911,822
Short-term borrowings		9,665		18,482
Accrued interest payable		3,024		4,226
Long-term borrowings		17,508		5,871
Other liabilities		4,035		4,695
Total Liabilities		861,689		945,096
Stockholders’ Equity
Preferred stock:
Series A - $1,000 par value - authorized 5, 000 shares; issued and outstanding 2,069.9 shares		19,686		-
Series B - $1,000 par value - authorized 5, 000 shares; issued and outstanding 103 shares		1,134		-
Common stock:
$1 par value - authorized 100,600,000 shares; issued and outstanding 5,559,644 shares		5,560		5,560
Surplus		26,459		26,459
Retained earnings		41,430		36,808
Accumulated other comprehensive income (loss)		3,909		(5,303	)
Total Stockholders’ Equity		98,178		63,524
Total Liabilities and Stockholders’ Equity	$	959,867	$	1,008,620

Statements of Income

(in thousands, except share, per share data and percentages)

	For the Periods Ended March 31,
	2010			2009
	(unaudited)
Interest Income:
Loans (including fees)	$	8,804		$	8,657
Loans held for sale		1			1
Deposits with other banks		9			225
Securities (including FHLB stock)		3,419			2,074
Federal funds sold		2			17
Total Interest Income		12,235			10,974
Interest Expense:
Demand deposits		201			319
Savings deposits		10			41
Time deposits		2,718			3,592
Borrowings		41			62
Total Interest Expense		2,970			4,014
Net Interest Income		9,265			6,960
Provision for loan losses		679			648
Net Interest Income after Provision for Loan Losses		8,586			6,312
Noninterest Income:
Service charges, commissions and fees		983			980
Net gains on sale of securities		261			-
Net gains on sale of loans		59			79
Other		339			278
Total Noninterest Income		1,642			1,337
Noninterest Expense:
Salaries and employee benefits		2,898			2,826
Occupancy and equipment expense		752			683
Regulatory assessment expense		64			110
Net cost of other real estate and repossessions		356			401
Other		2,186			1,987
Total Noninterest Expense		6,256			6,007
Income Before Income Taxes		3,972			1,642
Provision for income taxes		1,389			570
Net Income		2,583			1,072
Preferred stock dividends		(333	)		-
Income Available to Common Shareholders	$	2,250		$	1,072
				��
Per Common Share:
Earnings	$	0.40		$	0.19
Cash dividends paid	$	0.16		$	0.16
Book Value	$	13.91		$	11.43
Average Common Shares Outstanding		5,559,644			5,559,644
Return on Average Assets		1.10	%		0.46	%
Return on Average Common Equity		13.77	%		6.52	%

Banking Center Locations

Full-Service Banking Centers	Service24 ATM Locations
South Louisiana	South Louisiana
Abbeville Banking Center	Abbeville
Amite Banking Center	799 West Summers Drive
Denham Springs	Amite
Banking Center	100 East Oak Street
Hammond Banking Centers:	1014 West Oak Street
First Guaranty Square	Denham Springs
Guaranty West	2231 South Range Avenue
Independence Banking Center	Hammond
Jennings Banking Center	1201 West University Avenue
Kentwood Banking Center	14145 West University Avenue
Ponchatoula Banking Centers:	2111West Thomas Street
Ponchatoula	400 East Thomas Street
Berryland	North Oaks Medical Center
Walker Banking Center	North Oaks Rehabilitation Center
	Independence
North Louisiana	455 West Railroad Ave.
Benton Banking Center	Lallie Kemp Hospital
Dubach Banking Center	Jennings
Haynesville Banking Center	500 North Cary
Homer Banking Center	Kentwood
Oil City Banking Center	708 Avenue G
Vivian Banking Center	Loranger
	19518 Hwy 40
	Ponchatoula
	105 Berryland
	170 West Hickory Street
	Robert
	22628 Highway 190
	Walker
	29815 Walker Rd. S
	North Louisiana
	Benton
	189 Burt Boulevard
	Dubach
	117 East Hico Street
	Haynesville
	10065 Highway 79
	Homer
	401 North 2nd Street
	Homer Memorial Hospital
	Oil City
	126 South Highway 1
	Vivian
	102 East Louisiana Avenue