8-K
First Guaranty Bancshares, Inc. (FGBI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2025
FIRST GUARANTY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Louisiana | 001-37621 | 26-0513559 |
|---|---|---|
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
| incorporation or organization) | Identification Number) | |
| 400 East Thomas Street | ||
| Hammond, Louisiana | 70401 | |
| (Address of principal executive offices) | (Zip Code) | |
| (985) 345-7685 | ||
| (Registrant’s telephone number, including area code) | ||
| Not Applicable | ||
| (Former name or former address, if changed since last report) |
Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock, $1 par valueFGBIThe Nasdaq Stock Market LLCDepositary Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)FGBIPThe Nasdaq Stock Market LLC
Item 2.02. Results of Operations and Financial Condition
On January 30, 2025, First Guaranty Bancshares, Inc. issued a press release reporting its financial results at and for the three months and year ended December 31, 2024.
The Press Release is enclosed as Exhibit 99.1 to this report. The information in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1 Press Release dated January 30, 2025.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST GUARANTY BANCSHARES, INC. | ||
|---|---|---|
| (Registrant) | ||
| Date: January 30, 2025 | ||
| By: | /s/Eric J. Dosch | |
| Eric J. Dosch | ||
| Chief Financial Officer |
INDEX TO EXHIBITS
| Exhibit Number | Description |
|---|---|
| Exhibit 99.1 | Press Release January 30, 2025 "First Guaranty Bancshares, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results." |
Document
EXHIBIT 99.1
January 30, 2025
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
First Guaranty Bancshares, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results
Hammond, Louisiana, January 30, 2025 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter and year ending December 31, 2024.
Financial Highlights for the fourth quarter and year ending December 31, 2024, are as follows:
•First Guaranty continued with its new business strategy previously announced on July 23, 2024. In the fourth quarter of 2024, noninterest expense totaled $17.9 million, a decline of $1.8 million from the third quarter of 2024 and a decline of $2.7 million from the second quarter of 2024. Salaries and benefits expense totaled $7.9 million in the fourth quarter of 2024 which was $2.2 million lower than the third quarter of 2024 and $2.6 million lower than the second quarter total of $2024. Full-time equivalent employees totaled 399 at December 31, 2024, a decline of 92 employees, or 19% compared to 491 at December 31, 2023.
•First Guaranty loan balances declined to $2.69 billion at December 31, 2024 compared to $2.77 billion at September 30, 2024 and $2.83 billion at June 30, 2024. The reduction in loan balances occurred due to participations, payoffs, write offs, loan sales and loan amortization. This planned reduction was part of First Guaranty’s strategy to reduce loan concentration risk particularly related to commercial real estate loans. Total real estate secured loans declined to $2.14 billion at December 31, 2024 compared to $2.16 billion at September 30, 2024 and $2.18 billion at June 30, 2024. First Guaranty’s unfunded loan commitments for commercial real estate construction declined to $72 million at December 31, 2024 compared to $108 million at September 30, 2024 and compared to $147 million at June 30, 2024. First Guaranty anticipates continuing to reduce commercial real estate secured loans in 2025.
•Total assets increased $420.0 million and were $4.0 billion at December 31, 2024 compared to $3.6 billion at December 31, 2023. Total loans at December 31, 2024 were $2.7 billion, a decrease of $54.9 million, or 2.0%, compared with December 31, 2023. Total deposits were $3.5 billion at December 31, 2024, an increase of $467.2 million, or 15.5%, compared with December 31, 2023. Retained earnings were $73.0 million at December 31, 2024, an increase of $5.0 million compared to $68.0 million at December 31, 2023. Shareholders' equity was $255.0 million and $249.6 million at December 31, 2024 and December 31, 2023, respectively.
•Net income for the fourth quarter of 2024 and 2023 was $1.0 million and $1.3 million, respectively, a decrease of $0.3 million or 22.5%. Net income for the years ended December 31, 2024 and 2023 was $12.4 million and $9.2 million, respectively, an increase of $3.2 million or 35.0%.
•Earnings per common share were $0.03 and $0.06 for the fourth quarter of 2024 and 2023, respectively, and $0.81 and $0.62 for the years ended December 31, 2024 and 2023, respectively. Total weighted average shares outstanding were 12,504,717 and 11,587,810 for the fourth quarter of 2024 and 2023, respectively, and 12,501,035 and 11,165,303 for the years ended December 31, 2024 and 2023, respectively.
•The allowance for credit losses was 1.29% of total loans at December 31, 2024 compared to 1.13% at December 31, 2023.
•Net interest income for the fourth quarter of 2024 was $22.6 million compared to $21.0 million for the same period in 2023. Net interest income for the year ended December 31, 2024 was $88.4 million compared to $84.7 million for the year ended December 31, 2023.
•The provision for credit losses for the fourth quarter of 2024 was $6.0 million compared to $2.2 million for the same period in 2023. The provision for credit losses for the year ended December 31, 2024 was $20.0 million compared to $3.7 million for the year ended December 31, 2023.
•Charge-offs were $18.6 million during the year ended December 31, 2024 and $6.0 million during 2023. Recoveries totaled $0.9 million during the year ended December 31, 2024 and $1.4 million during 2023.
•Net gains on the sale of loans for the years ended December 31, 2024 was $1.5 million compared to $12,000 for the year ended December 31, 2023.
•First Guaranty had $0.3 million of other real estate owned as of December 31, 2024 compared to $1.3 million at December 31, 2023.
•The net interest margin for the three months ended December 31, 2024 was 2.32% which was a decrease of 21 basis points from the net interest margin of 2.53% for the same period in 2023. The net interest margin for the year ended December 31, 2024 was 2.47% which was a decrease of 22 basis points from the net interest margin of 2.69% for the year ended December 31, 2023. Loans as a percentage of average interest earning assets decreased to 77.4% at December 31, 2024 compared to 82.8% at December 31, 2023.
•Investment securities totaled $602.7 million at December 31, 2024, an increase of $198.6 million when compared to $404.1 million at December 31, 2023. At December 31, 2024, available for sale securities, at fair value, totaled $281.1 million, an increase of $197.6 million when compared to $83.5 million at December 31, 2023. The increase in available for sale securities was primarily due to purchases of Treasury securities, mortgage-backed securities and collateralized mortgage obligations. At December 31, 2024, held to maturity securities ("HTM"), at amortized cost and net of the allowance for credit losses, totaled $321.6 million, an increase of $1.0 million when compared to $320.6 million at December 31, 2023. The allowance for credit losses for HTM securities was $0.2 million at December 31, 2024, an increase of $0.1 million when compared to $0.1 million at December 31, 2023.
•Total loans net of unearned income were $2.7 billion at December 31, 2024, a net decrease of $54.9 million from December 31, 2023. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $34.8 million at December 31, 2024 and $30.9 million at December 31, 2023, respectively.
•Nonaccrual loans increased $83.3 million to $108.5 million at December 31, 2024 compared to $25.2 million at December 31, 2023. The increase in total nonaccrual loans was concentrated primarily in non-farm non-residential and multifamily loans.
•At December 31, 2024, the largest 6 non-performing loan relationships comprise 76% of total non-performing loans. Additional details on the non-performing relationships are as follows:
1.A $28.7 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the fourth quarter of 2024.
2.A $26.0 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the fourth quarter of 2024.
3.A $23.0 million loan relationship was placed on nonaccrual at June 30, 2024. The loan relationship originally totaled $37.0 million and was secured by five retail shopping center properties located in the Midwest. First Guaranty initiated liquidation of the collateral with two properties sold in the fourth quarter of 2024. The proceeds, net of charge-offs, reduced the balance to $23.0 million. First Guaranty anticipates continued reduction in this loan relationship through additional sales of properties in 2025.
4.A $7.4 million loan relationship contractually matured at the end of the third quarter of 2024 and was greater than 90 days at December 31, 2024. The loan is secured by land located in Texas. First Guaranty anticipates satisfactorily renewing this relationship in the first quarter of 2025 and moving back to the performing loan category.
5.A $4.0 million loan relationship contractually matured at the end of the third quarter of 2024 and was greater than 90 days at December 31, 2024. The loan is secured by a hotel located in Louisiana. First Guaranty and the borrower satisfactorily renewed the relationship in January 2025. It was removed from the nonperforming category and moved to performing in January of 2025.
6.A $2.0 million loan relationship secured by a one- to four- family residential property located in West Virginia; the loan was placed on nonaccrual at June 30, 2024.
•First Guaranty charged off $4.9 million in loan balances during the fourth quarter of 2024. The details of the $4.9 million in charged-off loans were as follows:
1.First Guaranty charged off $0.4 million in consumer loans during the fourth quarter of 2024. The consumer loan charge offs included $0.1 million in credit card loans, $0.1 million of loans secured by automobiles or equipment, and $0.2 million in unsecured loans.
2.First Guaranty charged off $3.9 million on a non-farm non-residential loan relationship during the fourth quarter of 2024. This relationship had remaining principal balance of $23.0 million at December 31, 2024.
3.Smaller loans and overdrawn deposit accounts comprised the remaining $0.6 million of charge-offs for the fourth quarter of 2024.
•Return on average assets for the three months ended December 31, 2024 and 2023 was 0.10% and 0.15%, respectively. Return on average assets for the years ended December 31, 2024 and 2023 was 0.34% and 0.28%, respectively. Return on average common equity for the three months ended December 31, 2024 and 2023 was 0.76% and 1.37%, respectively. Return on average common equity for the years ended December 31, 2024 and 2023 was 4.58% and 3.36% respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.
•Book value per common share was $17.75 as of December 31, 2024 compared to $17.36 as of December 31, 2023. Tangible book value per common share was $16.48 as of December 31, 2024 compared to $16.03 as of December 31, 2023.
•First Guaranty's Board of Directors declared cash dividends of $0.01 and $0.16 per common share in the fourth quarter of 2024 and 2023. First Guaranty has paid 126 consecutive quarterly dividends as of December 31, 2024.
•First Guaranty paid preferred stock dividends of $2.3 million during the years ended December 31, 2024 and 2023.
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-five 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.
Forward Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended with respect to the financial condition, liquidity, results of operations, and future performance of the business of First Guaranty Bancshares, Inc. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” We caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. These forward-looking statements are subject to a number of factors and uncertainties, including, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of First Guaranty. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | |||
|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS (unaudited) | |||
| (in thousands, except share data) | December 31, 2023 | ||
| Assets | |||
| Cash and cash equivalents: | |||
| Cash and due from banks | 563,778 | $ | 286,114 |
| Federal funds sold | 341 | ||
| Cash and cash equivalents | 286,455 | ||
| Interest-earning time deposits with banks | — | ||
| Investment securities: | |||
| Available for sale, at fair value | 83,485 | ||
| Held to maturity, at cost and net of allowance for credit losses of 150 and 80 (estimated fair value of 251,458 and 253,584 respectively) | 320,638 | ||
| Investment securities | 404,123 | ||
| Federal Home Loan Bank stock, at cost | 13,390 | ||
| Loans held for sale | — | ||
| Loans, net of unearned income | 2,748,708 | ||
| Less: allowance for credit losses | 30,926 | ||
| Net loans | 2,717,782 | ||
| Premises and equipment, net | 69,792 | ||
| Goodwill | 12,900 | ||
| Intangible assets, net | 4,298 | ||
| Other real estate, net | 1,250 | ||
| Accrued interest receivable | 15,713 | ||
| Other assets | 27,069 | ||
| Total Assets | 3,972,728 | $ | 3,552,772 |
| Liabilities and Shareholders' Equity | |||
| Deposits: | |||
| Noninterest-bearing demand | 404,056 | $ | 442,755 |
| Interest-bearing demand | 1,526,628 | ||
| Savings | 218,986 | ||
| Time | 820,725 | ||
| Total deposits | 3,009,094 | ||
| Short-term advances from Federal Home Loan Bank | 50,000 | ||
| Short-term borrowings | 10,000 | ||
| Repurchase agreements | 6,297 | ||
| Accrued interest payable | 11,807 | ||
| Long-term advances from Federal Home Loan Bank | 155,000 | ||
| Senior long-term debt | 39,099 | ||
| Junior subordinated debentures | 15,000 | ||
| Other liabilities | 6,844 | ||
| Total Liabilities | 3,303,141 | ||
| Shareholders' Equity | |||
| Preferred stock, Series A - 1,000 par value - 100,000 shares authorized | |||
| Non-cumulative perpetual; 34,500 issued and outstanding | 33,058 | ||
| Common stock, 1 par value - 100,600,000 shares authorized; 12,504,717 and 12,475,424 shares issued and outstanding | 12,475 | ||
| Surplus | 149,085 | ||
| Retained earnings | 67,972 | ||
| Accumulated other comprehensive (loss) income | (12,959) | ||
| Total Shareholders' Equity | 249,631 | ||
| Total Liabilities and Shareholders' Equity | 3,972,728 | $ | 3,552,772 |
| See Notes to Consolidated Financial Statements |
All values are in US Dollars.
| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
| (in thousands, except share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Interest Income: | ||||||||||||
| Loans (including fees) | $ | 46,101 | $ | 45,294 | $ | 190,382 | $ | 167,140 | ||||
| Deposits with other banks | 5,652 | 2,549 | 17,399 | 6,268 | ||||||||
| Securities (including FHLB stock) | 5,967 | 2,471 | 13,925 | 9,601 | ||||||||
| Total Interest Income | 57,720 | 50,314 | 221,706 | 183,009 | ||||||||
| Interest Expense: | ||||||||||||
| Demand deposits | 14,339 | 16,056 | 65,331 | 60,243 | ||||||||
| Savings deposits | 1,245 | 1,136 | 5,173 | 3,554 | ||||||||
| Time deposits | 16,517 | 8,663 | 49,166 | 23,967 | ||||||||
| Borrowings | 3,042 | 3,413 | 13,598 | 10,540 | ||||||||
| Total Interest Expense | 35,143 | 29,268 | 133,268 | 98,304 | ||||||||
| Net Interest Income | 22,577 | 21,046 | 88,438 | 84,705 | ||||||||
| Less: Provision for credit losses | 6,021 | 2,225 | 20,034 | 3,714 | ||||||||
| Net Interest Income after Provision for Credit Losses | 16,556 | 18,821 | 68,404 | 80,991 | ||||||||
| Noninterest Income: | ||||||||||||
| Service charges, commissions and fees | 846 | 940 | 3,189 | 3,401 | ||||||||
| ATM and debit card fees | 780 | 793 | 3,132 | 3,242 | ||||||||
| Net gains on securities | — | — | — | — | ||||||||
| Net gains on sale of loans | — | — | 1,481 | 12 | ||||||||
| Net gains on sale of assets | 62 | 12 | 13,306 | 23 | ||||||||
| Other | 812 | 827 | 3,631 | 3,899 | ||||||||
| Total Noninterest Income | 2,500 | 2,572 | 24,739 | 10,577 | ||||||||
| Total Business Revenue, Net of Provision for Credit Losses | 19,056 | 21,393 | 93,143 | 91,568 | ||||||||
| Noninterest Expense: | ||||||||||||
| Salaries and employee benefits | 7,866 | 10,057 | 38,304 | 40,422 | ||||||||
| Occupancy and equipment expense | 2,831 | 2,485 | 10,187 | 9,027 | ||||||||
| Other | 7,191 | 7,233 | 28,646 | 30,223 | ||||||||
| Total Noninterest Expense | 17,888 | 19,775 | 77,137 | 79,672 | ||||||||
| Income Before Income Taxes | 1,168 | 1,618 | 16,006 | 11,896 | ||||||||
| Less: Provision for income taxes | 158 | 315 | 3,558 | 2,677 | ||||||||
| Net Income | 1,010 | 1,303 | 12,448 | 9,219 | ||||||||
| Less: Preferred stock dividends | 582 | 582 | 2,329 | 2,329 | ||||||||
| Net Income Available to Common Shareholders | $ | 428 | $ | 721 | $ | 10,119 | $ | 6,890 | ||||
| Per Common Share: | ||||||||||||
| Earnings | $ | 0.03 | $ | 0.06 | $ | 0.81 | $ | 0.62 | ||||
| Cash dividends paid | $ | 0.01 | $ | 0.16 | $ | 0.41 | $ | 0.64 | ||||
| Weighted Average Common Shares Outstanding | 12,504,717 | 11,587,810 | 12,501,035 | 11,165,303 | ||||||||
| See Notes to Consolidated Financial Statements | ||||||||||||
| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | |||||||||||
| (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 | $ | 455,769 | $ | 5,652 | 4.93 | % | $ | 192,007 | $ | 2,549 | 5.27 | % |
| Securities (including FHLB stock) | 689,040 | 5,967 | 3.45 | % | 415,691 | 2,471 | 2.36 | % | ||||
| Federal funds sold | 2,326 | — | — | % | 324 | — | — | % | ||||
| Loans held for sale | — | — | — | % | — | — | — | % | ||||
| Loans, net of unearned income (6) | 2,728,126 | 46,101 | 6.72 | % | 2,696,928 | 45,294 | 6.66 | % | ||||
| Total interest-earning assets | 3,875,261 | $ | 57,720 | 5.93 | % | 3,304,950 | $ | 50,314 | 6.04 | % | ||
| Noninterest-earning assets: | ||||||||||||
| Cash and due from banks | 21,236 | 18,795 | ||||||||||
| Premises and equipment, net | 68,348 | 66,410 | ||||||||||
| Other assets | 30,414 | 26,943 | ||||||||||
| Total Assets | $ | 3,995,259 | $ | 3,417,098 | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Demand deposits | $ | 1,440,298 | $ | 14,339 | 3.96 | % | $ | 1,419,494 | $ | 16,056 | 4.49 | % |
| Savings deposits | 232,269 | 1,245 | 2.13 | % | 217,507 | 1,136 | 2.07 | % | ||||
| Time deposits | 1,415,224 | 16,517 | 4.64 | % | 804,590 | 8,663 | 4.27 | % | ||||
| Borrowings | 202,901 | 3,042 | 5.96 | % | 250,850 | 3,413 | 5.40 | % | ||||
| Total interest-bearing liabilities | 3,290,692 | $ | 35,143 | 4.25 | % | 2,692,441 | $ | 29,268 | 4.31 | % | ||
| Noninterest-bearing liabilities: | ||||||||||||
| Demand deposits | 410,083 | 458,612 | ||||||||||
| Other | 38,767 | 23,769 | ||||||||||
| Total Liabilities | 3,739,542 | 3,174,822 | ||||||||||
| Shareholders' equity | 255,717 | 242,276 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 3,995,259 | $ | 3,417,098 | ||||||||
| Net interest income | $ | 22,577 | $ | 21,046 | ||||||||
| Net interest rate spread (1) | 1.68 | % | 1.73 | % | ||||||||
| Net interest-earning assets (2) | $ | 584,569 | $ | 612,509 | ||||||||
| Net interest margin (3), (4) | 2.32 | % | 2.53 | % | ||||||||
| Average interest-earning assets to interest-bearing liabilities | 117.76 | % | 122.75 | % |
(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 2.32% and 2.53% for the above periods ended December 31, 2024 and 2023 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2024 and 2023 respectively.
(5)Annualized.
(6)Includes loan fees of $1.5 million and $1.7 million for the three months ended December 31, 2024 and 2023 respectively.
| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||||||||
| (in thousands except for %) | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Interest-earning deposits with banks | $ | 338,743 | $ | 17,399 | 5.14 | % | $ | 125,417 | $ | 6,268 | 5.00 | % |
| Securities (including FHLB stock) | 469,679 | 13,925 | 2.96 | % | 415,504 | 9,601 | 2.31 | % | ||||
| Federal funds sold | 1,378 | — | — | % | 374 | — | — | % | ||||
| Loans held for sale | — | — | — | % | — | — | — | % | ||||
| Loans, net of unearned income (6) | 2,776,990 | 190,382 | 6.86 | % | 2,607,074 | 167,140 | 6.41 | % | ||||
| Total interest-earning assets | 3,586,790 | $ | 221,706 | 6.18 | % | 3,148,369 | $ | 183,009 | 5.81 | % | ||
| Noninterest-earning assets: | ||||||||||||
| Cash and due from banks | 19,891 | 18,729 | ||||||||||
| Premises and equipment, net | 69,548 | 61,733 | ||||||||||
| Other assets | 30,785 | 27,514 | ||||||||||
| Total Assets | $ | 3,707,014 | $ | 3,256,345 | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Demand deposits | $ | 1,499,959 | $ | 65,331 | 4.36 | % | $ | 1,448,597 | $ | 60,243 | 4.16 | % |
| Savings deposits | 230,393 | 5,173 | 2.25 | % | 213,025 | 3,554 | 1.67 | % | ||||
| Time deposits | 1,048,118 | 49,166 | 4.69 | % | 669,661 | 23,967 | 3.58 | % | ||||
| Borrowings | 235,542 | 13,598 | 5.77 | % | 187,019 | 10,540 | 5.64 | % | ||||
| Total interest-bearing liabilities | 3,014,012 | $ | 133,268 | 4.42 | % | 2,518,302 | $ | 98,304 | 3.90 | % | ||
| Noninterest-bearing liabilities: | ||||||||||||
| Demand deposits | 414,804 | 481,456 | ||||||||||
| Other | 24,084 | 18,672 | ||||||||||
| Total Liabilities | 3,452,900 | 3,018,430 | ||||||||||
| Shareholders' equity | 254,114 | 237,915 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 3,707,014 | $ | 3,256,345 | ||||||||
| Net interest income | $ | 88,438 | $ | 84,705 | ||||||||
| Net interest rate spread (1) | 1.76 | % | 1.91 | % | ||||||||
| Net interest-earning assets (2) | $ | 572,778 | $ | 630,067 | ||||||||
| Net interest margin (3), (4) | 2.47 | % | 2.69 | % | ||||||||
| Average interest-earning assets to interest-bearing liabilities | 119.00 | % | 125.02 | % |
(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 2.47% and 2.69% for the above periods ended December 31, 2024 and 2023 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2024 and 2023 respectively.
(5)Includes loan fees of $7.1 million and $6.0 million for the years ended December 31, 2024 and 2023 respectively.
The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024:
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands except for %) | Balance | As % of Category | Balance | As % of Category | Balance | As % of Category | Balance | As % of Category | ||||||||
| Real Estate: | ||||||||||||||||
| Construction & land development | $ | 330,048 | 12.2 | % | $ | 323,123 | 11.6 | % | $ | 355,216 | 12.5 | % | $ | 328,090 | 11.9 | % |
| Farmland | 35,991 | 1.3 | % | 39,569 | 1.4 | % | 38,493 | 1.3 | % | 37,534 | 1.3 | % | ||||
| 1- 4 Family | 450,371 | 16.7 | % | 471,885 | 17.0 | % | 457,263 | 16.1 | % | 456,659 | 16.5 | % | ||||
| Multifamily | 165,121 | 6.1 | % | 162,243 | 5.8 | % | 160,256 | 5.6 | % | 165,148 | 6.0 | % | ||||
| Non-farm non-residential | 1,159,842 | 42.9 | % | 1,165,552 | 42.0 | % | 1,164,117 | 41.0 | % | 1,133,516 | 41.1 | % | ||||
| Total Real Estate | 2,141,373 | 79.2 | % | 2,162,372 | 77.8 | % | 2,175,345 | 76.5 | % | 2,120,947 | 76.8 | % | ||||
| Non-Real Estate: | ||||||||||||||||
| Agricultural | 40,722 | 1.5 | % | 47,552 | 1.7 | % | 47,852 | 1.7 | % | 43,422 | 1.6 | % | ||||
| Commercial and industrial(1) | 257,518 | 9.5 | % | 274,441 | 9.9 | % | 300,597 | 10.6 | % | 293,292 | 10.6 | % | ||||
| Commercial leases | 220,200 | 8.2 | % | 248,563 | 9.0 | % | 269,428 | 9.5 | % | 253,016 | 9.2 | % | ||||
| Consumer and other | 42,267 | 1.6 | % | 45,672 | 1.6 | % | 47,836 | 1.7 | % | 49,458 | 1.8 | % | ||||
| Total Non-Real Estate | 560,707 | 20.8 | % | 616,228 | 22.2 | % | 665,713 | 23.5 | % | 639,188 | 23.2 | % | ||||
| Total loans before unearned income | 2,702,080 | 100.0 | % | 2,778,600 | 100.0 | % | 2,841,058 | 100.0 | % | 2,760,135 | 100.0 | % | ||||
| Unearned income | (8,300) | (8,949) | (7,708) | (7,905) | ||||||||||||
| Total loans net of unearned income | $ | 2,693,780 | $ | 2,769,651 | $ | 2,833,350 | $ | 2,752,230 |
(1) Includes PPP loans fully guaranteed by the SBA of $1.6 million, $2.0 million, $2.3 million, and $2.6 million at December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated
| (in thousands) | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonaccrual loans: | ||||||||||||
| Real Estate: | ||||||||||||
| Construction and land development | $ | 3,624 | $ | 2,815 | $ | 2,314 | $ | 598 | ||||
| Farmland | 2,619 | 1,189 | 666 | 903 | ||||||||
| 1- 4 family | 10,053 | 9,563 | 7,900 | 8,157 | ||||||||
| Multifamily | 27,542 | 537 | 537 | 537 | ||||||||
| Non-farm non-residential | 54,171 | 42,414 | 41,626 | 9,733 | ||||||||
| Total Real Estate | 98,009 | 56,518 | 53,043 | 19,928 | ||||||||
| Non-Real Estate: | ||||||||||||
| Agricultural | 1,992 | 1,968 | 1,379 | 1,658 | ||||||||
| Commercial and industrial | 6,762 | 3,711 | 4,084 | 4,691 | ||||||||
| Commercial leases | 1,533 | 3,334 | 3,552 | 1,799 | ||||||||
| Consumer and other | 233 | 257 | 267 | 530 | ||||||||
| Total Non-Real Estate | 10,520 | 9,270 | 9,282 | 8,678 | ||||||||
| Total nonaccrual loans | 108,529 | 65,788 | 62,325 | 28,606 | ||||||||
| Loans 90 days and greater delinquent & accruing: | ||||||||||||
| Real Estate: | ||||||||||||
| Construction and land development | 7,394 | — | — | — | ||||||||
| Farmland | — | — | — | — | ||||||||
| 1- 4 family | — | 77 | 77 | — | ||||||||
| Multifamily | — | — | — | — | ||||||||
| Non-farm non-residential | 4,108 | — | 122 | 14,600 | ||||||||
| Total Real Estate | 11,502 | 77 | 199 | 14,600 | ||||||||
| Non-Real Estate: | ||||||||||||
| Agricultural | — | — | — | 58 | ||||||||
| Commercial and industrial | — | — | — | — | ||||||||
| Commercial leases | — | — | — | — | ||||||||
| Consumer and other | — | — | — | — | ||||||||
| Total Non-Real Estate | — | — | — | 58 | ||||||||
| Total loans 90 days and greater delinquent & accruing | 11,502 | 77 | 199 | 14,658 | ||||||||
| Total non-performing loans | 120,031 | 65,865 | 62,524 | 43,264 | ||||||||
| Real Estate Owned: | ||||||||||||
| Real Estate Loans: | ||||||||||||
| Construction and land development | 226 | 203 | 201 | 282 | ||||||||
| Farmland | — | — | — | — | ||||||||
| 1- 4 family | 3 | 267 | 141 | 312 | ||||||||
| Multifamily | — | — | — | — | ||||||||
| Non-farm non-residential | 90 | 690 | 690 | 690 | ||||||||
| Total Real Estate | 319 | 1,160 | 1,032 | 1,284 | ||||||||
| Non-Real Estate Loans: | ||||||||||||
| Agricultural | — | — | — | — | ||||||||
| Commercial and industrial | — | — | — | — | ||||||||
| Commercial leases | — | — | — | — | ||||||||
| Consumer and other | — | — | — | — | ||||||||
| Total Non-Real Estate | — | — | — | — | ||||||||
| Total Real Estate Owned | 319 | 1,160 | 1,032 | 1,284 | ||||||||
| Total non-performing assets | $ | 120,350 | $ | 67,025 | $ | 63,556 | $ | 44,548 | ||||
| Non-performing assets to total loans | 4.47 | % | 2.42 | % | 2.24 | % | 1.62 | % | ||||
| Non-performing assets to total assets | 3.03 | % | 1.71 | % | 1.76 | % | 1.25 | % | ||||
| Non-performing loans to total loans | 4.46 | % | 2.38 | % | 2.21 | % | 1.57 | % | ||||
| Nonaccrual loans to total loans | 4.03 | % | 2.38 | % | 2.20 | % | 1.04 | % | ||||
| Allowance for credit losses to nonaccrual loans | 32.08 | % | 50.59 | % | 48.60 | % | 109.94 | % | ||||
| Net loan charge-offs to average loans | 0.64 | % | 0.62 | % | 0.76 | % | 0.29 | % |
The following table presents, for the periods indicated, the major categories of other noninterest expense:
| Three Months Ended December 31, | Years Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
| Other noninterest expense: | ||||||||
| Legal and professional fees | $ | 1,363 | $ | 880 | $ | 4,465 | $ | 5,709 |
| Data processing | 358 | 541 | 1,555 | 2,100 | ||||
| ATM fees | 431 | 533 | 1,668 | 1,804 | ||||
| Marketing and public relations | 241 | 455 | 1,240 | 1,927 | ||||
| Taxes - sales, capital, and franchise | 347 | 599 | 2,237 | 2,263 | ||||
| Operating supplies | 90 | 114 | 336 | 778 | ||||
| Software expense and amortization | 1,270 | 1,514 | 5,093 | 5,282 | ||||
| Travel and lodging | 86 | 244 | 685 | 1,362 | ||||
| Telephone | 46 | 118 | 424 | 382 | ||||
| Amortization of core deposit intangibles | 174 | 174 | 696 | 696 | ||||
| Donations | 26 | 21 | 267 | 595 | ||||
| Net costs from other real estate and repossessions | 294 | (86) | 827 | 157 | ||||
| Regulatory assessment | 1,583 | 1,024 | 4,688 | 3,136 | ||||
| Other | 882 | 1,102 | 4,465 | 4,032 | ||||
| Total other noninterest expense | $ | 7,191 | $ | 7,233 | $ | 28,646 | $ | 30,223 |
Non-GAAP Financial Measures
Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures.
Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names.
The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
| At December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands except for share data and %) | 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||
| Tangible Common Equity | |||||||||||||||
| Total shareholders' equity | $ | 255,049 | $ | 249,631 | $ | 234,991 | $ | 223,889 | $ | 178,591 | |||||
| Adjustments: | |||||||||||||||
| Preferred | 33,058 | 33,058 | 33,058 | 33,058 | — | ||||||||||
| Goodwill | 12,900 | 12,900 | 12,900 | 12,900 | 12,900 | ||||||||||
| Acquisition intangibles | 2,962 | 3,658 | 4,355 | 5,051 | 5,815 | ||||||||||
| Other intangibles | 100 | 100 | — | — | — | ||||||||||
| Tangible common equity | $ | 206,029 | $ | 199,915 | $ | 184,678 | $ | 172,880 | $ | 159,876 | |||||
| Common shares outstanding | 12,504,717 | 12,475,424 | 10,716,796 | 10,716,796 | 10,716,796 | ||||||||||
| Book value per common share | $ | 17.75 | $ | 17.36 | $ | 18.84 | $ | 17.81 | $ | 16.66 | |||||
| Tangible book value per common share | $ | 16.48 | $ | 16.03 | $ | 17.23 | $ | 16.13 | $ | 14.92 | |||||
| Tangible Assets | |||||||||||||||
| Total Assets | $ | 3,972,728 | $ | 3,552,772 | $ | 3,151,347 | $ | 2,878,120 | $ | 2,473,078 | |||||
| Adjustments: | |||||||||||||||
| Goodwill | 12,900 | 12,900 | 12,900 | 12,900 | 12,900 | ||||||||||
| Acquisition intangibles | 2,962 | 3,658 | 4,355 | 5,051 | 5,815 | ||||||||||
| Other intangibles | 100 | 100 | — | — | — | ||||||||||
| Tangible Assets | $ | 3,956,766 | $ | 3,536,114 | $ | 3,134,092 | $ | 2,860,169 | $ | 2,454,363 | |||||
| Tangible common equity to tangible assets | 5.21 | % | 5.65 | % | 5.89 | % | 6.04 | % | 6.51 | % |