First Guaranty Bancshares, Inc. Announces Third Quarter 2023 Results

Hammond, Louisiana, October 27, 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 September 30, 2023.

We are making progress. In a time in which all banks have been battling the squeeze between loan interest rates and the rates to be paid for deposits, it appears that, in the second half of the third quarter, we passed the bottom and began to climb upward. Our loan portfolio before unearned income continued to grow as it grew to $2,707,669,000 as of September 30, 2023 compared to $2,599,099,000 as of June 30, 3023 and $2,526,720,000 as of December 31, 2022. Total interest income for the quarter ending September 30, 2023 was $47,627,000 compared to $43,781,000 for the quarter ending June 30, 2023 and $41,287,000 for the quarter ending March 31, 2023 and $38,307,000 for the quarter ending December 31, 2022. Our total non-interest expense for the quarter ending September 30, 2023 was $19,996,000 compared to $19,735,000 for quarter ending June 30, 2023 and $20,166,000 for quarter ending March 31, 2023.

We are making progress. This is not to say that the struggles are over. Our entire staff has reacted positively and strongly to reduce expenses. Everyone involved in Loan Production, Credit, and Loan Processing has been and continues to work very diligently to obtain new loans and get them expedited, approved, and earning.

We appreciate the patience and understanding of our shareholders. We are making progress. We will prevail and continue to build First Guaranty into a profitable investment with a fortress balance sheet.

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) September 30, 2023 December 31, 2022
Assets
Cash and cash equivalents:
Cash and due from banks $ 200,825 $ 82,796
Federal funds sold 450 423
Cash and cash equivalents 201,275 83,219
Investment securities:
Available for sale, at fair value 79,857 131,458
Held to maturity, at cost and net of allowance for credit losses of $80 and $0 (estimated fair value of $234,771 and $242,560 respectively) 320,624 320,068
Investment securities 400,481 451,526
Federal Home Loan Bank stock, at cost 13,241 6,528
Loans held for sale - -
Loans, net of unearned income 2,699,393 2,519,077
Less: allowance for credit losses 31,936 23,518
Net loans 2,667,457 2,495,559
Premises and equipment, net 64,006 58,206
Goodwill 12,900 12,900
Intangible assets, net 4,366 4,979
Other real estate, net 1,135 113
Accrued interest receivable 16,728 13,002
Other assets 36,645 25,315
Total Assets $ 3,418,234 $ 3,151,347
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand $ 458,392 $ 524,415
Interest-bearing demand 1,435,555 1,460,259
Savings 214,371 205,760
Time 706,691 533,358
Total deposits 2,815,009 2,723,792
Short-term advances from Federal Home Loan Bank 125,000 120,000
Short-term borrowings 20,000 20,000
Repurchase agreements 7,659 6,442
Accrued interest payable 10,780 4,289
Long-term advances from Federal Home Loan Bank 155,000 -
Senior long-term debt 20,306 21,927
Junior subordinated debentures 15,000 15,000
Other liabilities 10,658 4,906
Total Liabilities 3,179,412 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 69,247 76,351
Accumulated other comprehensive (loss) income (14,293) (15,228)
Total Shareholders' Equity 238,822 234,991
Total Liabilities and Shareholders' Equity $ 3,418,234 $ 3,151,347
See Notes to Consolidated Financial Statements



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
(in thousands, except share data) 2023 2022 2023 2022
Interest Income:
Loans (including fees) $ 43,407 $ 32,386 $ 121,846 $ 90,423
Deposits with other banks 1,897 561 3,719 924
Securities (including FHLB stock) 2,323 2,303 7,130 6,922
Total Interest Income 47,627 35,250 132,695 98,269
Interest Expense:
Demand deposits 16,102 6,243 44,187 11,403
Savings deposits 1,001 267 2,418 429
Time deposits 6,504 2,533 15,304 7,828
Borrowings 3,575 758 7,127 1,867
Total Interest Expense 27,182 9,801 69,036 21,527
Net Interest Income 20,445 25,449 63,659 76,742
Less: Provision for credit losses 627 1,509 1,489 2,898
Net Interest Income after Provision for Credit Losses 19,818 23,940 62,170 73,844
Noninterest Income:
Service charges, commissions and fees 858 814 2,461 2,364
ATM and debit card fees 796 864 2,449 2,591
Net gains (losses) on securities - - - (17)
Net gains on sale of loans - 1,624 12 1,713
Other 835 716 3,083 1,856
Total Noninterest Income 2,489 4,018 8,005 8,507
Total Business Revenue, Net of Provision for Credit Losses 22,307 27,958 70,175 82,351
Noninterest Expense:
Salaries and employee benefits 10,429 9,181 30,365 27,246
Occupancy and equipment expense 2,121 2,295 6,542 6,748
Other 7,446 6,312 22,990 18,364
Total Noninterest Expense 19,996 17,788 59,897 52,358
Income Before Income Taxes 2,311 10,170 10,278 29,993
Less: Provision for income taxes 539 2,117 2,362 6,230
Net Income 1,772 8,053 7,916 23,763
Less: Preferred stock dividends 582 582 1,747 1,747
Net Income Available to Common Shareholders $ 1,190 $ 7,471 $ 6,169 $ 22,016
Per Common Share:
Earnings $ 0.10 $ 0.70 $ 0.56 $ 2.05
Cash dividends paid $ 0.16 $ 0.16 $ 0.48 $ 0.48
Weighted Average Common Shares Outstanding 11,431,083 10,716,796 11,022,919 10,716,796
See Notes to Consolidated Financial Statements



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three Months Ended September 30, 2023 Three Months Ended September 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 $ 145,235 $ 1,897 5.18 % $ 109,333 $ 561 2.04 %
Securities (including FHLB stock) 412,169 2,323 2.24 % 460,370 2,303 1.98 %
Federal funds sold 331 - - % 272 - - %
Loans held for sale - - - % - - - %
Loans, net of unearned income (6) 2,632,564 43,407 6.54 % 2,344,868 32,386 5.48 %
Total interest-earning assets 3,190,299 $ 47,627 5.92 % 2,914,843 $ 35,250 4.80 %
Noninterest-earning assets:
Cash and due from banks 18,418 17,611
Premises and equipment, net 62,348 58,126
Other assets 27,420 27,430
Total Assets $ 3,298,485 $ 3,018,010
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits $ 1,429,402 $ 16,102 4.47 % $ 1,397,720 $ 6,243 1.77 %
Savings deposits 216,089 1,001 1.84 % 220,567 267 0.48 %
Time deposits 678,521 6,504 3.80 % 532,253 2,533 1.89 %
Borrowings 251,317 3,575 5.64 % 74,078 758 4.06 %
Total interest-bearing liabilities 2,575,329 $ 27,182 4.19 % 2,224,618 $ 9,801 1.75 %
Noninterest-bearing liabilities:
Demand deposits 461,489 554,218
Other 20,660 10,448
Total Liabilities 3,057,478 2,789,284
Shareholders' equity 241,007 228,726
Total Liabilities and Shareholders' Equity $ 3,298,485 $ 3,018,010
Net interest income $ 20,445 $ 25,449
Net interest rate spread (1) 1.73 % 3.05 %
Net interest-earning assets (2) $ 614,970 $ 690,225
Net interest margin (3), (4) 2.54 % 3.46 %
Average interest-earning assets to interest-bearing liabilities 123.88 % 131.03 %
(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 2.55% and 3.47% for the above periods ended September 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 September 30, 2023 and 2022 respectively.
(5)Annualized.
(6)Includes loan fees of $1.5 million and $1.8 million for the three months ended September 30, 2023 and 2022 respectively. PPP loan fee income of $0 and $0.2 million was recognized for the three months ended September 30, 2023 and 2022 respectively.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Nine Months Ended September 30, 2023 Nine Months Ended September 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 $ 102,976 $ 3,719 4.83 % $ 158,206 $ 924 0.78 %
Securities (including FHLB stock) 415,442 7,130 2.29 % 450,100 6,922 2.06 %
Federal funds sold 391 - - % 222 - - %
Loans held for sale - - - % - - - %
Loans, net of unearned income (6) 2,576,793 121,846 6.32 % 2,248,445 90,423 5.38 %
Total interest-earning assets 3,095,602 $ 132,695 5.73 % 2,856,973 $ 98,269 4.60 %
Noninterest-earning assets:
Cash and due from banks 18,706 18,472
Premises and equipment, net 60,157 58,251
Other assets 27,707 28,461
Total Assets $ 3,202,172 $ 2,962,157
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits $ 1,458,405 $ 44,187 4.05 % $ 1,350,190 $ 11,403 1.13 %
Savings deposits 211,515 2,418 1.53 % 212,013 429 0.27 %
Time deposits 624,190 15,304 3.28 % 552,340 7,828 1.89 %
Borrowings 165,508 7,127 5.76 % 59,263 1,867 4.21 %
Total interest-bearing liabilities 2,459,618 $ 69,036 3.75 % 2,173,806 $ 21,527 1.32 %
Noninterest-bearing liabilities:
Demand deposits 489,154 554,388
Other 16,954 8,424
Total Liabilities 2,965,726 2,736,618
Shareholders' equity 236,446 225,539
Total Liabilities and Shareholders' Equity $ 3,202,172 $ 2,962,157
Net interest income $ 63,659 $ 76,742
Net interest rate spread (1) 1.98 % 3.28 %
Net interest-earning assets (2) $ 635,984 $ 683,167
Net interest margin (3), (4) 2.75 % 3.59 %
Average interest-earning assets to interest-bearing liabilities 125.86 % 131.43 %
(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 2.75% and 3.60% for the above periods ended September 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 September 30, 2023 and 2022 respectively.
(5)Annualized.
(6)Includes loan fees of $4.3 million and $6.3 million for the nine months ended September 30, 2023 and 2022 respectively. PPP loan fee income of $16,000 and $1.3 million was recognized for the nine months ended September 30, 2023 and 2022 respectively.




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

September 30, 2023 June 30, 2023 March 31, 2023 December 31, 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 $ 342,246 12.6 % $ 301,259 11.6 % $ 289,486 11.2 % $ 233,091 9.2 %
Farmland 31,361 1.1 % 29,398 1.1 % 23,065 0.9 % 24,823 1.0 %
1- 4 Family 419,045 15.5 % 406,148 15.6 % 385,984 14.9 % 366,330 14.5 %
Multifamily 121,206 4.5 % 121,342 4.7 % 120,620 4.7 % 119,785 4.7 %
Non-farm non-residential 1,052,750 38.9 % 1,025,073 39.5 % 1,027,199 39.8 % 992,929 39.3 %
Total Real Estate 1,966,608 72.6 % 1,883,220 72.5 % 1,846,354 71.5 % 1,736,958 68.7 %
Non-Real Estate:
Agricultural 47,949 1.8 % 47,924 1.8 % 40,351 1.6 % 39,045 1.5 %
Commercial and industrial(1)
354,836 13.1 % 338,023 13.0 % 344,332 13.3 % 385,279 15.3 %
Commercial leases 292,208 10.8 % 282,161 10.9 % 302,450 11.7 % 317,574 12.6 %
Consumer and other 46,068 1.7 % 47,771 1.8 % 49,157 1.9 % 47,864 1.9 %
Total Non-Real Estate 741,061 27.4 % 715,879 27.5 % 736,290 28.5 % 789,762 31.3 %
Total loans before unearned income 2,707,669 100.0 % 2,599,099 100.0 % 2,582,644 100.0 % 2,526,720 100.0 %
Unearned income (8,276) (8,433) (8,402) (7,643)
Total loans net of unearned income $ 2,699,393 $ 2,590,666 $ 2,574,242 $ 2,519,077
(1) Includes PPP loans fully guaranteed by the SBA of $3.1 million, $5.4 million, $5.7 million, and $5.9 million at September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, , respectively.



The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands) September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022
Nonaccrual loans:
Real Estate:
Construction and land development $ 664 $ 518 $ 221 $ 225
Farmland 874 867 677 290
1- 4 family 6,827 6,320 6,209 3,826
Multifamily 537 537 - -
Non-farm non-residential 8,403 8,285 2,675 3,746
Total Real Estate 17,305 16,527 9,782 8,087
Non-Real Estate:
Agricultural 1,378 1,375 1,469 1,622
Commercial and industrial 2,827 2,167 1,026 819
Commercial leases 1,799 1,818 1,799 1,799
Consumer and other 2,246 2,016 1,593 1,239
Total Non-Real Estate 8,250 7,376 5,887 5,479
Total nonaccrual loans 25,555 23,903 15,669 13,566
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development 182 182 190 427
Farmland 2,693 - - -
1- 4 family 593 295 - 332
Multifamily - - - 157
Non-farm non-residential 956 - 1,641 103
Total Real Estate 4,424 477 1,831 1,019
Non-Real Estate:
Agricultural 61 61 - -
Commercial and industrial 3,659 - 6,244 123
Commercial leases - - - -
Consumer and other - - - -
Total Non-Real Estate 3,720 61 6,244 123
Total loans 90 days and greater delinquent & accruing 8,144 538 8,075 1,142
Total non-performing loans 33,699 24,441 23,744 14,708
Real Estate Owned:
Real Estate Loans:
Construction and land development 251 251 - -
Farmland - - - -
1- 4 family 194 248 113 113
Multifamily - - - -
Non-farm non-residential 690 774 774 -
Total Real Estate 1,135 1,273 887 113
Non-Real Estate Loans:
Agricultural - - - -
Commercial and industrial - - - -
Commercial leases - - - -
Consumer and other - - - -
Total Non-Real Estate - - - -
Total Real Estate Owned 1,135 1,273 887 113
Total non-performing assets $ 34,834 $ 25,714 $ 24,631 $ 14,821
Non-performing assets to total loans 1.29 % 0.99 % 0.96 % 0.59 %
Non-performing assets to total assets 1.02 % 0.79 % 0.76 % 0.47 %
Non-performing loans to total loans 1.25 % 0.94 % 0.92 % 0.58 %
Nonaccrual loans to total loans 0.95 % 0.92 % 0.61 % 0.54 %
Allowance for credit losses to nonaccrual loans 124.97 % 133.29 % 200.83 % 173.36 %
Net loan charge-offs to average loans 0.05 % 0.04 % 0.08 % 0.18 %


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 September 30, At December 31,
(in thousands except for share data and %) 2023 2022 2021 2020 2019
Tangible Common Equity
Total shareholders' equity $ 238,822 $ 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 3,832 4,355 5,051 5,815 6,527
Tangible common equity $ 189,032 $ 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
$ 16.54 $ 17.23 $ 16.13 $ 14.92 $ 13.68
Tangible Assets
Total Assets $ 3,418,234 $ 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 3,832 4,355 5,051 5,815 6,527
Tangible Assets $ 3,401,502 $ 3,134,092 $ 2,860,169 $ 2,454,363 $ 2,097,747
Tangible common equity to tangible assets 5.56 % 5.89 % 6.04 % 6.51 % 6.99 %


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First Guaranty Bancshares Inc. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 20:34:30 UTC.