First Guaranty Bancshares, Inc. Announces Second Quarter 2023 Results

Hammond, Louisiana, August 8, 2023 - First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter ending June 30, 2023.

Resilient: Springing back, rebounding. Returning to the original form for position after being bent, compressed or stretched. Recovering readily from illness, depression, adversity, or the like; buoyant. Random House Webster's Unabridged Dictionary Second Edition.

Another good word is strong. An even better word is tough. These are words that describe what First Guaranty has been during a six month period in which we have survived wound after wound, not of our own causing as we continue to deliver to our shareholders, customers, and our staff members extraordinary results.

The latest of these have been the FDIC deposit insurance adjustment which was $450,000 for the second quarter.

Enough crying over spilt milk. This is what we did to make it better. Our interest income for the second quarter of 2023 increased to $43,781,000 compared to $32,540,000 for the second quarter of 2022. For the six months ending June 30, 2023, our interest income totaled $85,068,000 compared to $63,019,000. Our interest expense stabilized at $22,868,000 for the quarter compared to $41,854,000 for the six month period ending June 30, 2023.

We have significantly increased our loan interest income to offset the increased cost of deposits which are set by the Federal Reserve. For the quarter, we made over $2,000,000 for our shareholders even after the FDIC assessment.

Basically, we have and will continue to make a lot of money for our shareholders. We are working very hard to control non-interest expense. We are working very hard to expand our interest margin. Our lenders have done a great job working to increase the rates we receive for our loans.

Let's keep moving forward. Let's be resilient. Let's be TOUGH.

Thank you for your attention.

Sincerely,
Alton B. Lewis
President and CEO
First Guaranty, Bancshares, Inc.
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-six 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 press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact which represent our current judgement about possible future events. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or otherwise revise any forward-looking statements.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data) June 30, 2023 December 31, 2022
Assets
Cash and cash equivalents:
Cash and due from banks $ 145,773 $ 82,796
Federal funds sold 455 423
Cash and cash equivalents 146,228 83,219
Investment securities:
Available for sale, at fair value 80,153 131,458
Held to maturity, at cost and net of allowance for credit losses of $100 and $0 (estimated fair value of $250,008 and $242,560 respectively) 320,523 320,068
Investment securities 400,676 451,526
Federal Home Loan Bank stock, at cost 7,901 6,528
Loans held for sale - -
Loans, net of unearned income 2,590,666 2,519,077
Less: allowance for credit losses 31,861 23,518
Net loans 2,558,805 2,495,559
Premises and equipment, net 60,849 58,206
Goodwill 12,900 12,900
Intangible assets, net 4,583 4,979
Other real estate, net 1,273 113
Accrued interest receivable 15,099 13,002
Other assets 27,732 25,315
Total Assets $ 3,236,046 $ 3,151,347
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand $ 466,172 $ 524,415
Interest-bearing demand 1,448,492 1,460,259
Savings 222,296 205,760
Time 630,459 533,358
Total deposits 2,767,419 2,723,792
Short-term advances from Federal Home Loan Bank 30,000 120,000
Short-term borrowings 20,000 20,000
Repurchase agreements 7,409 6,442
Accrued interest payable 6,996 4,289
Long-term advances from Federal Home Loan Bank 120,000 -
Senior long-term debt 20,305 21,927
Junior subordinated debentures 15,000 15,000
Other liabilities 10,060 4,906
Total Liabilities 2,997,189 2,916,356
Shareholders' Equity
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 issued and outstanding 33,058 33,058
Common stock, $1 par value - 100,600,000 shares authorized; 11,431,083 and 10,716,796 shares issued and outstanding 11,431 10,717
Surplus 139,379 130,093
Retained earnings 69,887 76,351
Accumulated other comprehensive (loss) income (14,898) (15,228)
Total Shareholders' Equity 238,857 234,991
Total Liabilities and Shareholders' Equity $ 3,236,046 $ 3,151,347
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) 2023 2022 2023 2022
Interest Income:
Loans (including fees) $ 40,290 $ 29,999 $ 78,439 $ 58,037
Deposits with other banks 1,071 261 1,822 363
Securities (including FHLB stock) 2,420 2,280 4,807 4,619
Total Interest Income 43,781 32,540 85,068 63,019
Interest Expense:
Demand deposits 15,036 2,884 28,085 5,160
Savings deposits 838 101 1,417 162
Time deposits 5,224 2,540 8,800 5,295
Borrowings 1,770 705 3,552 1,109
Total Interest Expense 22,868 6,230 41,854 11,726
Net Interest Income 20,913 26,310 43,214 51,293
Less: Provision for credit losses 548 757 862 1,389
Net Interest Income after Provision for Credit Losses 20,365 25,553 42,352 49,904
Noninterest Income:
Service charges, commissions and fees 818 773 1,603 1,550
ATM and debit card fees 828 904 1,653 1,727
Net gains (losses) on securities - - - (17)
Net gains on sale of loans - 90 12 89
Other 1,166 760 2,248 1,140
Total Noninterest Income 2,812 2,527 5,516 4,489
Total Business Revenue, Net of Provision for Credit Losses 23,177 28,080 47,868 54,393
Noninterest Expense:
Salaries and employee benefits 9,932 9,085 19,936 18,065
Occupancy and equipment expense 2,219 2,252 4,421 4,453
Other 7,584 6,482 15,544 12,052
Total Noninterest Expense 19,735 17,819 39,901 34,570
Income Before Income Taxes 3,442 10,261 7,967 19,823
Less: Provision for income taxes 766 2,137 1,823 4,114
Net Income 2,676 8,124 6,144 15,709
Less: Preferred stock dividends 582 582 1,164 1,164
Net Income Available to Common Shareholders $ 2,094 $ 7,542 $ 4,980 $ 14,545
Per Common Share:
Earnings $ 0.19 $ 0.70 $ 0.46 $ 1.36
Cash dividends paid $ 0.16 $ 0.16 $ 0.32 $ 0.32
Weighted Average Common Shares Outstanding 10,913,029 10,716,796 10,815,454 10,716,796
See Notes to Consolidated Financial Statements



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
(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 $ 90,388 $ 1,071 4.75 % $ 135,072 $ 261 0.77 %
Securities (including FHLB stock) 407,689 2,420 2.38 % 455,224 2,280 2.01 %
Federal funds sold 410 - - % 162 - - %
Loans held for sale - - - % - - - %
Loans, net of unearned income (6) 2,568,051 40,290 6.29 % 2,244,110 29,999 5.36 %
Total interest-earning assets 3,066,538 $ 43,781 5.73 % 2,834,568 $ 32,540 4.60 %
Noninterest-earning assets:
Cash and due from banks 18,443 19,334
Premises and equipment, net 59,924 58,235
Other assets 28,958 28,828
Total Assets $ 3,173,863 $ 2,940,965
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits $ 1,458,353 $ 15,036 4.14 % $ 1,327,954 $ 2,884 0.87 %
Savings deposits 214,055 838 1.57 % 211,281 101 0.19 %
Time deposits 631,605 5,224 3.32 % 549,052 2,540 1.86 %
Borrowings 122,969 1,770 5.77 % 55,536 705 5.10 %
Total interest-bearing liabilities 2,426,982 $ 22,868 3.78 % 2,143,823 $ 6,230 1.17 %
Noninterest-bearing liabilities:
Demand deposits 496,209 563,832
Other 17,366 7,947
Total Liabilities 2,940,557 2,715,602
Shareholders' equity 233,306 225,363
Total Liabilities and Shareholders' Equity $ 3,173,863 $ 2,940,965
Net interest income $ 20,913 $ 26,310
Net interest rate spread (1) 1.95 % 3.43 %
Net interest-earning assets (2) $ 639,556 $ 690,745
Net interest margin (3), (4) 2.74 % 3.72 %
Average interest-earning assets to interest-bearing liabilities 126.35 % 132.22 %
(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 2.74% and 3.73% for the above periods ended June 30, 2023 and 2022 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2023 and 2022 respectively.
(5)Annualized.
(6)Includes loan fees of $1.4 million and $2.5 million for the three months ended June 30, 2023 and 2022 respectively. PPP loan fee income of $11,000 and $0.5 million was recognized for the three months ended June 30, 2023 and 2022 respectively.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
(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 $ 81,497 $ 1,822 4.51 % $ 183,047 $ 363 0.40 %
Securities (including FHLB stock) 417,104 4,807 2.32 % 444,879 4,619 2.09 %
Federal funds sold 421 - - % 197 - - %
Loans held for sale - - - % - - - %
Loans, net of unearned income (6) 2,548,446 78,439 6.21 % 2,199,435 58,037 5.32 %
Total interest-earning assets 3,047,468 $ 85,068 5.63 % 2,827,558 $ 63,019 4.49 %
Noninterest-earning assets:
Cash and due from banks 18,853 18,910
Premises and equipment, net 59,043 58,314
Other assets 27,854 28,709
Total Assets $ 3,153,218 $ 2,933,491
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits $ 1,473,147 $ 28,085 3.84 % $ 1,325,755 $ 5,160 0.78 %
Savings deposits 209,190 1,417 1.37 % 207,664 162 0.16 %
Time deposits 596,575 8,800 2.97 % 562,550 5,295 1.90 %
Borrowings 121,892 3,552 5.88 % 51,732 1,109 4.32 %
Total interest-bearing liabilities 2,400,804 $ 41,854 3.52 % 2,147,701 $ 11,726 1.10 %
Noninterest-bearing liabilities:
Demand deposits 503,216 554,475
Other 15,071 7,396
Total Liabilities 2,919,091 2,709,572
Shareholders' equity 234,127 223,919
Total Liabilities and Shareholders' Equity $ 3,153,218 $ 2,933,491
Net interest income $ 43,214 $ 51,293
Net interest rate spread (1) 2.11 % 3.39 %
Net interest-earning assets (2) $ 646,664 $ 679,857
Net interest margin (3), (4) 2.86 % 3.66 %
Average interest-earning assets to interest-bearing liabilities 126.94 % 131.66 %
(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 2.86% and 3.66% for the above periods ended June 30, 2023 and 2022 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2023 and 2022 respectively.
(5)Annualized.
(6)Includes loan fees of $2.8 million and $4.5 million for the six months ended June 30, 2023 and 2022 respectively. PPP loan fee income of $16,000 and $1.1 million was recognized for the six months ended June 30, 2023 and 2022 respectively.




The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022:

June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022
(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 $ 301,259 11.6 % $ 289,486 11.2 % $ 233,091 9.2 % $ 204,640 8.4 %
Farmland 29,398 1.1 % 23,065 0.9 % 24,823 1.0 % 24,556 1.0 %
1- 4 Family 406,148 15.6 % 385,984 14.9 % 366,330 14.5 % 352,501 14.5 %
Multifamily 121,342 4.7 % 120,620 4.7 % 119,785 4.7 % 118,273 4.9 %
Non-farm non-residential 1,025,073 39.5 % 1,027,199 39.8 % 992,929 39.3 % 981,954 40.5 %
Total Real Estate 1,883,220 72.5 % 1,846,354 71.5 % 1,736,958 68.7 % 1,681,924 69.3 %
Non-Real Estate:
Agricultural 47,924 1.8 % 40,351 1.6 % 39,045 1.5 % 47,642 2.0 %
Commercial and industrial(1)
338,023 13.0 % 344,332 13.3 % 385,279 15.3 % 365,549 15.1 %
Commercial leases 282,161 10.9 % 302,450 11.7 % 317,574 12.6 % 281,010 11.6 %
Consumer and other 47,771 1.8 % 49,157 1.9 % 47,864 1.9 % 48,188 2.0 %
Total Non-Real Estate 715,879 27.5 % 736,290 28.5 % 789,762 31.3 % 742,389 30.7 %
Total loans before unearned income 2,599,099 100.0 % 2,582,644 100.0 % 2,526,720 100.0 % 2,424,313 100.0 %
Unearned income (8,433) (8,402) (7,643) (6,986)
Total loans net of unearned income $ 2,590,666 $ 2,574,242 $ 2,519,077 $ 2,417,327
(1) Includes PPP loans fully guaranteed by the SBA of $5.4 million, $5.7 million, $5.9 million, and $6.1 million at June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.



The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022
Nonaccrual loans:
Real Estate:
Construction and land development $ 518 $ 221 $ 225 $ 104
Farmland 867 677 290 290
1- 4 family 6,320 6,209 3,826 3,646
Multifamily 537 - - -
Non-farm non-residential 8,285 2,675 3,746 2,629
Total Real Estate 16,527 9,782 8,087 6,669
Non-Real Estate:
Agricultural 1,375 1,469 1,622 1,645
Commercial and industrial 2,167 1,026 819 876
Commercial leases 1,818 1,799 1,799 -
Consumer and other 2,016 1,593 1,239 1,168
Total Non-Real Estate 7,376 5,887 5,479 3,689
Total nonaccrual loans 23,903 15,669 13,566 10,358
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development 182 190 427 326
Farmland - - - -
1- 4 family 295 - 332 359
Multifamily - - 157 13
Non-farm non-residential - 1,641 103 318
Total Real Estate 477 1,831 1,019 1,016
Non-Real Estate:
Agricultural 61 - - -
Commercial and industrial - 6,244 123 444
Commercial leases - - - -
Consumer and other - - - -
Total Non-Real Estate 61 6,244 123 444
Total loans 90 days and greater delinquent & accruing 538 8,075 1,142 1,460
Total non-performing loans 24,441 23,744 14,708 11,818
Real Estate Owned:
Real Estate Loans:
Construction and land development 251 - - -
Farmland - - - -
1- 4 family 248 113 113 249
Multifamily - - - -
Non-farm non-residential 774 774 - 1,418
Total Real Estate 1,273 887 113 1,667
Non-Real Estate Loans:
Agricultural - - - -
Commercial and industrial - - - -
Commercial leases - - - -
Consumer and other - - - -
Total Non-Real Estate - - - -
Total Real Estate Owned 1,273 887 113 1,667
Total non-performing assets $ 25,714 $ 24,631 $ 14,821 $ 13,485
Non-performing assets to total loans 0.99 % 0.96 % 0.59 % 0.56 %
Non-performing assets to total assets 0.79 % 0.76 % 0.47 % 0.44 %
Non-performing loans to total loans 0.94 % 0.92 % 0.58 % 0.49 %
Nonaccrual loans to total loans 0.92 % 0.61 % 0.54 % 0.43 %
Allowance for credit losses to nonaccrual loans 133.29 % 201.47 % 173.36 % 226.57 %


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 June 30, At December 31,
(in thousands except for share data and %) 2023 2022 2021 2020 2019
Tangible Common Equity
Total shareholders' equity $ 238,857 $ 234,991 $ 223,889 $ 178,591 $ 166,035
Adjustments:
Preferred 33,058 33,058 33,058 - -
Goodwill 12,900 12,900 12,900 12,900 12,942
Acquisition intangibles 4,007 4,355 5,051 5,815 6,527
Tangible common equity $ 188,892 $ 184,678 $ 172,880 $ 159,876 $ 146,566
Common shares outstanding
11,431,083 10,716,796 10,716,796 10,716,796 10,716,796
Book value per common share
$ 18.00 $ 18.84 $ 17.81 $ 16.66 $ 15.49
Tangible book value per common share
$ 16.52 $ 17.23 $ 16.13 $ 14.92 $ 13.68
Tangible Assets
Total Assets $ 3,236,046 $ 3,151,347 $ 2,878,120 $ 2,473,078 $ 2,117,216
Adjustments:
Goodwill 12,900 12,900 12,900 12,900 12,942
Acquisition intangibles 4,007 4,355 5,051 5,815 6,527
Tangible Assets $ 3,219,139 $ 3,134,092 $ 2,860,169 $ 2,454,363 $ 2,097,747
Tangible common equity to tangible assets 5.87 % 5.89 % 6.04 % 6.51 % 6.99 %


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First Guaranty Bancshares Inc. published this content on 08 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2023 13:08:42 UTC.