First Guaranty Bancshares (FGBI) 8-K First Guaranty Bancshares, Inc. Announces Second Quarter 2016 Results

EXHIBIT 99.1

AUGUST 1, 2016

NEWS FOR IMMEDIATE RELEASE

CONTACT: ERIC J. DOSCH, CFO

985.375.0308

First Guaranty Bancshares, Inc.  Announces Second Quarter 2016 Results

Hammond, Louisiana, August 1, 2016 – First Guaranty Bancshares, Inc. (the "Company" or First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter ending June 30, 2016.  The second quarter 2016 concluded with a continuation of outstanding results.  The business strategy of moving assets from lower earning investments to higher earning loans continued to be successful as the loan portfolio as of June 30, 2016 totaled $896.4 million, a new record for the loan portfolio.  This number is up $42 million from March 31, 2016 and $86 million from June 30, 2015, an increase of 10.6%.  As planned in the strategy, in order to fund the strong loan growth, it was necessary to sell securities.  Due to the high quality of the Investment portfolio, this strategy of transferring assets from lower yielding securities to higher yielding loans resulted in a pre-tax gain on the sale of securities for the second quarter of $2.2 million or $1.5 million after tax.  As of June 30, 2016, First Guaranty was $18.7 million ahead of budget for core loans, $11.3 million ahead on all loans.

Because of the strong loan portfolio growth, First Guaranty was required, according to normal loan loss reserve calculations, to fund approximately $210,000 to the loan loss provision in excess of budget.  This extra provision is funded from the gains on securities which were required to fund the loans.

The loans to deposits ratio improved to 70% as of June 30, 2016, up from 66% as of March 31, 2016 and 60% as of June 30, 2015.

The net interest margin for the second quarter 2016 increased to 3.43% compared to 3.30% for the first quarter of 2016 and 3.16% for the second quarter 2015.  The increase in the net interest margin confirms and validates the business strategy of moving assets from lower yielding securities to higher yielding loans.

The increase in the size of the loan portfolio has improved loan interest income which totaled $11.3 million in the second quarter of 2016 compared to $10.8 million for the first quarter of 2016 and $10.4 million for the second quarter 2015.

When you combine the effects of the larger loan portfolio, increased net interest margin, and gains from sales of securities required to fund the loans, the net income improved substantially to $4.4 million for the second quarter of 2016 compared to $3.2 million for the first quarter of 2016.  Earnings per common share totaled $0.58 for the quarter ended June 30, 2016 compared to $0.41 for the quarter ended March 31, 2016.

For the 92^nd consecutive quarter, First Guaranty paid a quarterly dividend.  This dividend was $0.16 per share.  Since 1993, First Guaranty Bank has paid a total of $59.2 million in common dividends to shareholders.

Total equity as of June 30, 2016 equaled $127.4 million or $16.74 per share, an increase of $9.2 million from December 31, 2015.

In December 2015, First Guaranty issued a 10% stock dividend which resulted in a book value dilution of $1.56 per share.  As of June 30, 2016, First Guaranty had earned back $0.67, or 43% of that dilution.  If the earnings trend continues, the projected earn back date of the stock dividend dilution is February 28, 2017, 14 months from issuance.

Total deposits as of June 30, 2016 were $1.3 billion.

The provision to loan loss for the quarter was $0.9 million, and for the year to date $1.7 million compared to $1.0 million year to date as of June 30, 2015.  Approximately $0.5 million of the increase in loan loss provision between 2015 and 2016 is due to the $54.8 million increase in the loan portfolio.

Total non-interest expense for the year to date through June 30, 2016 was $16.4 million compared to $15.6 million year to date through June 30, 2015.  Year to date non-interest income as of June 30, 2016 totaled $5.5 million compared to $3.9 million year to date through June 30, 2015.

As of June 30, 2016, nonperforming assets had decreased to $25.0 million compared to $26.0 million as of March 31, 2016.

Alton B. Lewis, President and CEO commented: "Everyone throughout the entire organization is working together toward our common goals.  As a result, the first half of 2016 has been strong.  We intend to continue these efforts.  We intend to continue and improve the way we take care of our customers and to build on those efforts to obtain our goals."

About First Guaranty

First Guaranty, a Louisiana-based company, has approximately $1.5 billion in assets as of June 30, 2016 and provides personalized commercial banking services through 21 banking facilities located across Louisiana.  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 the Company 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.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company 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.

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)	June 30, 2016		December 31, 2015
Assets
Cash and cash equivalents:
Cash and due from banks	$	18,236	$	36,690
Federal funds sold		274		582
Cash and cash equivalents		18,510		37,272
Interest-earning time deposits with banks		-		997
Investment securities:
Available for sale, at fair value		407,824		376,369
Held to maturity, at cost (estimated fair value of $108,844 and $168,148 respectively)		107,443		169,752
Investment securities		515,267		546,121
Federal Home Loan Bank stock, at cost		1,305		935
Loans held for sale		123		-
Loans, net of unearned income		896,384		841,583
Less: allowance for loan losses		9,857		9,415
Net loans		886,527		832,168
Premises and equipment, net		21,743		22,019
Goodwill		1,999		1,999
Intangible assets, net		1,223		1,394
Other real estate, net		1,126		1,577
Accrued interest receivable		5,798		6,015
Other assets		7,115		9,256
Total Assets	$	1,460,736	$	1,459,753
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$	212,909	$	213,203
Interest-bearing demand		423,772		409,209
Savings		88,491		81,448
Time		554,817		592,010
Total deposits		1,279,989		1,295,870
Short-term borrowings		9,000		1,800
Accrued interest payable		2,148		1,707
Senior long-term debt		24,277		25,824
Junior subordinated debentures		14,613		14,597
Other liabilities		3,295		1,731
Total Liabilities		1,333,322		1,341,529
Shareholders' Equity
Common stock:
$1 par value - authorized 100,600,000 shares; issued 7,609,194 shares		7,609		7,609
Surplus		61,584		61,584
Retained earnings		55,049		49,932
Accumulated other comprehensive income (loss)		3,172		(901	)
Total Shareholders' Equity		127,414		118,224
Total Liabilities and Shareholders' Equity	$	1,460,736	$	1,459,753
See Notes to Consolidated Financial Statements

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except share data)	2016			2015			2016			2015
Interest Income:
Loans (including fees)	$	11,306		$	10,391		$	22,107		$	21,129
Deposits with other banks		14			21			44			42
Securities (including FHLB stock)		3,427			3,598			7,016			6,943
Total Interest Income		14,747			14,010			29,167			28,114
Interest Expense:
Demand deposits		627			346			1,241			704
Savings deposits		17			9			35			17
Time deposits		1,507			1,798			3,071			3,641
Borrowings		365			35			757			70
Total Interest Expense		2,516			2,188			5,104			4,432
Net Interest Income		12,231			11,822			24,063			23,682
Less: Provision for loan losses		893			400			1,736			1,010
Net Interest Income after Provision for Loan Losses		11,338			11,422			22,327			22,672
Noninterest Income:
Service charges, commissions and fees		609			682			1,266			1,328
ATM and debit card fees		471			461			915			887
Net gains on securities		2,231			623			2,585			939
Net gain on sale of loans		3			4			3			4
Other		327			349			706			702
Total Noninterest Income		3,641			2,119			5,475			3,860
Noninterest Expense:
Salaries and employee benefits		4,144			3,859			8,241			7,905
Occupancy and equipment expense		999			986			1,971			1,969
Other		3,174			2,876			6,203			5,739
Total Noninterest Expense		8,317			7,721			16,415			15,613
Income Before Income Taxes		6,662			5,820			11,387			10,919
Less: Provision for income taxes		2,261			1,958			3,835			3,663
Net Income		4,401			3,862			7,552			7,256
Preferred Stock Dividends		-			(99	)		-			(197	)
Income Available to Common Shareholders	$	4,401		$	3,763		$	7,552		$	7,059
Per Common Share:
Earnings	$	0.58		$	0.54		$	0.99		$	1.02
Cash dividends paid	$	0.16		$	0.15		$	0.32		$	0.30
Book Value							$	16.74		$	15.36
Weighted Average Common Shares Outstanding		7,609,194			6,920,022			7,609,194			6,920,022
Return on Average Assets		1.21	%		1.01	%		1.03	%		0.95	%
Return on Average Common Equity		14.14	%		14.00	%		12.33	%		13.43	%
Net Interest Margin		3.43	%		3.16	%		3.37	%		3.18	%

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
(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	$	19,146	$	14	0.29	%	$	30,805	$	21	0.27	%
Securities (including FHLB stock)		551,601		3,427	2.50	%		672,093		3,598	2.15	%
Federal funds sold		246		-	-	%		364		-	-	%
Loans held for sale		-		-	-	%		-		-	-	%
Loans, net of unearned income		861,237		11,306	5.28	%		794,999		10,391	5.24	%
Total interest-earning assets		1,432,230	$	14,747	4.14	%		1,498,261	$	14,010	3.75	%
Noninterest-earning assets:
Cash and due from banks		7,731						5,044
Premises and equipment, net		21,798						19,869
Other assets		3,678						5,723
Total Assets	$	1,465,437					$	1,528,897
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits	$	413,524	$	627	0.61	%	$	422,407	$	346	0.33	%
Savings deposits		87,501		17	0.08	%		76,563		9	0.05	%
Time deposits		569,347		1,507	1.06	%		654,863		1,798	1.10	%
Borrowings		40,284		365	3.64	%		6,065		35	2.31	%
Total interest-bearing liabilities		1,110,656	$	2,516	0.91	%		1,159,898	$	2,188	0.76	%
Noninterest-bearing liabilities:
Demand deposits		225,263						215,467
Other		4,369						6,316
Total Liabilities		1,340,288						1,381,681
Shareholders' equity		125,149						147,216
Total Liabilities and Shareholders' Equity	$	1,465,437					$	1,528,897
Net interest income			$	12,231					$	11,822
Net interest rate spread (1)					3.23	%					2.99	%
Net interest-earning assets (2)	$	321,574					$	338,363
Net interest margin (3), (4)					3.43	%					3.16	%
Average interest-earning assets to interest-bearing liabilities					128.95	%					129.17	%

(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 3.47% and 3.20% for the above periods ended June 30, 2016 and 2015 respectively. A 35% tax rate was used to calculate the effect on securities income from tax exempt securities.
(5)	Annualized.

FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
(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	$	24,242	$	44	0.36	%	$	33,510	$	42	0.25	%
Securities (including FHLB stock)		564,012		7,015	2.50	%		671,957		6,943	2.08	%
Federal funds sold		247		-	-	%		301		-	-	%
Loans held for sale		-		-	-	%		-		-	-	%
Loans, net of unearned income		848,594		22,107	5.24	%		796,063		21,129	5.35	%
Total interest-earning assets		1,437,095	$	29,166	4.08	%		1,501,831	$	28,114	3.78	%
Noninterest-earning assets:
Cash and due from banks		7,865						6,816
Premises and equipment, net		22,019						19,575
Other assets		4,236						5,921
Total Assets	$	1,471,215					$	1,534,143
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits	$	419,404	$	1,241	0.59	%	$	431,446	$	704	0.33	%
Savings deposits		85,921		35	0.08	%		75,805		17	0.05	%
Time deposits		580,664		3,071	1.06	%		659,964		3,641	1.11	%
Borrowings		40,961		757	3.72	%		5,119		70	2.74	%
Total interest-bearing liabilities		1,126,950	$	5,104	0.91	%		1,172,334	$	4,432	0.76	%
Noninterest-bearing liabilities:
Demand deposits		217,113						210,613
Other		3,979						5,763
Total Liabilities		1,348,042						1,388,710
Shareholders' equity		123,173						145,433
Total Liabilities and Shareholders' Equity	$	1,471,215					$	1,534,143
Net interest income			$	24,062					$	23,682
Net interest rate spread (1)					3.17	%					3.01	%
Net interest-earning assets (2)	$	310,145					$	329,497
Net interest margin (3), (4)					3.37	%					3.18	%
Average interest-earning assets to interest-bearing liabilities					127.52	%					128.11	%

(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 3.40% and 3.21% for the above periods ended June 30, 2016 and 2015 respectively. A 35% tax rate was used to calculate the effect on securities income from tax exempt securities.
(5)	Annualized.

The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2016, March 31, 2016 and December 31, 2015:

	June 30, 2016						March 31, 2016						December 31, 2015
(in thousands except for %)	Balance			As % of Category			Balance			As % of Category			Balance			As % of Category
Real Estate:
Construction & land development	$	71,736			8.0	%	$	69,875			8.1	%	$	56,132			6.6	%
Farmland		21,455			2.4	%		22,037			2.6	%		17,672			2.1	%
1- 4 Family		137,522			15.3	%		131,543			15.3	%		129,610			15.4	%
Multifamily		12,682			1.4	%		10,830			1.3	%		12,629			1.5	%
Non-farm non-residential		352,582			39.3	%		333,048			38.9	%		323,363			38.3	%
Total Real Estate		595,977			66.4	%		567,333			66.2	%		539,406			63.9	%
Non-Real Estate:
Agricultural		27,561			3.1	%		23,266			2.7	%		25,838			3.1	%
Commercial and industrial		214,270			23.8	%		206,178			24.1	%		224,201			26.6	%
Consumer and other		60,475			6.7	%		59,925			7.0	%		54,163			6.4	%
Total Non-Real Estate		302,306			33.6	%		289,369			33.8	%		304,202			36.1	%
Total loans before unearned income		898,283			100.0	%		856,702			100.0	%		843,608			100.0	%
Unearned income		(1,899	)					(1,926	)					(2,025	)
Total loans net of unearned income	$	896,384					$	854,776					$	841,583

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

(in thousands)	June 30, 2016			March 31, 2016			December 31, 2015
Nonaccrual loans:
Real Estate:
Construction and land development	$	551		$	555		$	558
Farmland		111			118			117
1 - 4 family residential		4,383			4,749			4,538
Multifamily		5,152			5,262			9,045
Non-farm non-residential		1,741			1,935			2,934
Total Real Estate		11,938			12,619			17,192
Non-Real Estate:
Agricultural		2,630			3,537			2,628
Commercial and industrial		7,878			8,266			48
Consumer and other		1,022			-			171
Total Non-Real Estate		11,530			11,803			2,847
Total nonaccrual loans		23,468			24,422			20,039
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development		-			-			-
Farmland		-			-			19
1 - 4 family residential		276			216			391
Multifamily		-			-			-
Non-farm non-residential		91			129			-
Total Real Estate		367			345			410
Non-Real Estate:
Agricultural		-			-			-
Commercial and industrial		-			-			-
Consumer and other		-			-			-
Total Non-Real Estate		-			-			-
Total loans 90 days and greater delinquent & accruing		367			345			410
Total non-performing loans		23,835			24,767			20,449
Real Estate Owned:
Real Estate Loans:
Construction and land development		21			25			25
Farmland		-			-			-
1 - 4 family residential		498			564			880
Multifamily		-			-			-
Non-farm non-residential		607			637			672
Total Real Estate		1,126			1,226			1,577
Non-Real Estate Loans:
Agricultural		-			-			-
Commercial and industrial		-			-			-
Consumer and other		-			-			-
Total Non-Real Estate		-			-			-
Total Real Estate Owned		1,126			1,226			1,577
Total non-performing assets	$	24,961		$	25,993		$	22,026
Non-performing assets to total loans		2.78	%		3.04	%		2.62	%
Non-performing assets to total assets		1.71	%		1.77	%		1.51	%
Non-performing loans to total loans		2.66	%		2.90	%		2.43	%