First Guaranty’s primary leasing activities relate to certain real estate leases of certain branches, and certain ATM locations. These leases have all been designated as operating leases. First Guaranty does not lease equipment under operating leases, and does not have leases designated as financing leases.

On April 29, 2026, First Guaranty repurchased certain properties, previously sold in a sale-leaseback transaction in June of 2024, for an aggregate purchase price of $14.8 million. Upon repurchase, the related lease agreements were terminated and no further lease payments are required. Lease expense associated with the sale‑leaseback arrangement totaled approximately $0.3 million per quarter prior to termination. As a result of the repurchase, this lease expense relating to these properties was eliminated and partially offset by depreciation expense, which is expected to increase by approximately $0.2 million per quarter.

First Guaranty’s operating lease right-of-use ("ROU") assets were $0.1 million and $11.1 million at June 30, 2026 and December 31, 2025, respectively, and the related operating lease liabilities were $0.1 million and $11.2 million, respectively. The ROU asset is included in Other Assets on the balance sheet, and the related operating lease liabilities are included in Other Liabilities.

Operating lease expense, including short-term leases, is included in occupancy expense in the amount of $0.6 million and $0.8 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Cash payment for amounts included in the measurement of lease liabilities of $0.1 million and $0.7 million were included in operating cash flows for the respective six-month periods.