0001408534false00014085342024-07-232024-07-230001408534us-gaap:CommonStockMember2024-07-232024-07-230001408534us-gaap:NoncumulativePreferredStockMember2024-07-232024-07-23

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): July 23, 2024

Image1.jpg
FIRST GUARANTY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Louisiana001-3762126-0513559
(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 registered
Common Stock, $1 par valueFGBIThe Nasdaq Stock Market LLC
Depositary 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 July 23, 2024, First Guaranty Bancshares, Inc. issued a press release reporting its key developments and financial results at and for the three months and six months ended June 30, 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 7.01.        Regulation FD Disclosure

A copy of First Guaranty Bancshares, Inc.'s investor presentation based on June 30, 2024 financial information is enclosed as Exhibit 99.2 to this report.

The information in Exhibit 99.2 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 July 23, 2024.

Exhibit 99.2    Presentation Materials.

Forward Looking Statements

This letter 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.





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: July 23, 2024   
  By:/s/Eric J. Dosch
   Eric J. Dosch
   Chief Financial Officer
   



INDEX TO EXHIBITS
 
Exhibit NumberDescription
Press Release July 23, 2024 "First Guaranty Bancshares, Inc. Announces Key Developments and Second Quarter 2024 Financial Results."
Presentation Materials


EXHIBIT 99.1
JULY 23, 2024
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
 
First Guaranty Bancshares, Inc. Announces Key Developments and Second Quarter 2024 Financial Results

Hammond, Louisiana, July 23, 2024 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its key developments and unaudited financial results for the second quarter and six months ending June 30, 2024.

Key developments are as follows:

•First Guaranty is initiating changes to its business strategy. The changes include slowing the trajectory of the bank’s asset growth, further increasing the capital position, and working with leaner staff while utilizing automation and technological advances. First Guaranty has reduced staff by 71 positions. This reduction represents approximately 15% of the bank’s workforce. Each of the affected employees will receive 60 days of pay, payment for their unused vacation time, their elected healthcare coverage through September 30, 2024, and will have the opportunity to apply for open positions within the bank. First Guaranty will continue its other noninterest expense reductions previously undertaken earlier in the year.

•First Guaranty anticipates that the change to the business strategy will generate a reduction in noninterest expense of approximately $12.0 million pre-tax on an annual basis which includes the reduction in staff. The cost savings are anticipated to impact the fourth quarter of 2024 by about $2.0 million pre-tax. It is anticipated that about $3.0 million in pre-tax savings will be realized per quarter for 2025.

•First Guaranty’s Board of Directors anticipates paying a quarterly cash dividend of $0.08 per share for the third and fourth quarters of 2024.

•As previously announced, on June 28, 2024, the Bank consummated a sale-leaseback transaction relating to two stand-alone branches and a portion of the headquarters building which also contains a branch (collectively, the “Properties”). The aggregate cash purchase price was $14.7 million. The sale-leaseback transaction resulted in a pre-tax gain of approximately $13.2 million, or $10.4 million after tax. Aggregate first full year of rent expense under the Lease Agreements will be approximately $1.3 million pre-tax, or $1.0 million after tax.

Financial Highlights for the second quarter and six months ended June 30, 2024, are as follows:

•Total assets increased $62.8 million and were $3.6 billion at June 30, 2024 and December 31, 2023. Total loans at June 30, 2024 were $2.8 billion, an increase of $84.6 million, or 3.1%, compared with December 31, 2023. Total deposits were $3.0 billion at June 30, 2024, an increase of $34.4 million, or 1.1%, compared with December 31, 2023. Retained earnings were $72.3 million at June 30, 2024, an increase of $4.3 million compared to $68.0 million at December 31, 2023. Shareholders' equity was $255.1 million and $249.6 million at June 30, 2024 and December 31, 2023, respectively.

•Net income for the second quarter of 2024 and 2023 was $7.2 million and $2.7 million, respectively, an increase of $4.5 million or 169.1%. Net income for the six months ended June 30, 2024 and 2023 was $9.5 million and $6.1 million, respectively, an increase of $3.4 million or 54.8%.

•Earnings per common share were $0.53 and $0.19 for the second quarter of 2024 and 2023, respectively, and $0.67 and $0.46 for the six months ended June 30, 2024 and 2023, respectively. Total weighted average shares outstanding were 12,504,717 and 10,913,029 for the second quarter of 2024 and 2023, respectively, and 12,497,313 and 10,815,454 for the six months ended June 30, 2024 and 2023, respectively. The change in shares was due to the issuance of 44,341 and 29,293 shares of common stock under the Equity Bonus Plan during the fourth quarter of 2023 and the first quarter of 2024, respectively, and the issuance of 1,714,287 shares of common stock under private placement in 2023.

•The allowance for credit losses was 1.07% of total loans at June 30, 2024 compared to 1.13% at December 31, 2023.

•Net interest income for the second quarter of 2024 was $21.2 million compared to $20.9 million for the same period in 2023. Net interest income for the six months ended June 30, 2024 was $43.2 million compared to $43.2 million for the six months ended June 30, 2023.

•The provision for credit losses for the second quarter of 2024 was $6.8 million compared to $0.5 million for the same period in 2023. The provision for credit losses for the six months ended June 30, 2024 was $9.1 million compared to $0.9 million for the six months ended June 30, 2023.

•First Guaranty had $1.0 million of other real estate owned as of June 30, 2024 compared to $1.3 million at December 31, 2023.

•The net interest margin for the three months ended June 30, 2024 was 2.48% which was a decrease of 26 basis points from the net interest margin of 2.74% for the same period in 2023. The net interest margin for the six months ended June 30, 2024 was 2.53% which was a decrease of 33 basis points from the net interest margin of 2.86% for the same period in 2023. First Guaranty attributed the decrease in the net interest margin to the increase in market interest rates that began in 2022 and continued through 2023 that increased the cost of liabilities. Loans as a percentage of average interest earning assets decreased to 81.1% at June 30, 2024 compared to 83.6% at June 30, 2023.




•Investment securities totaled $358.6 million at June 30, 2024, a decrease of $45.6 million when compared to $404.1 million at December 31, 2023. At June 30, 2024, available for sale securities, at fair value, totaled $37.4 million, a decrease of $46.1 million when compared to $83.5 million at December 31, 2023. The decrease in available for sale securities was primarily due to the maturity of low yielding Treasury securities of which the proceeds were subsequently reinvested in higher yielding loans and or cash equivalents. At June 30, 2024, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $321.2 million, an increase of $0.5 million when compared to $320.6 million at December 31, 2023. The allowance for credit losses for HTM securities was $0.1 million at June 30, 2024 and December 31, 2023.

•Total loans net of unearned income were $2.8 billion at June 30, 2024, a net increase of $84.6 million from December 31, 2023. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $30.3 million at June 30, 2024 and $30.9 million at December 31, 2023, respectively.

•Nonaccrual loans increased $37.1 million to $62.3 million at June 30, 2024 compared to $25.2 million at December 31, 2023. The increase in total nonaccrual loans was concentrated primarily in one commercial real estate relationship that totaled $36.9 million. This relationship is comprised of five loans secured by real estate located in the Midwest. $13.9 million of this relationship was previously reported in 90 day plus but still accruing at December 31, 2023.

•At June 30, 2024, our largest non-performing assets were comprised of the following nonaccrual loans: (1) $36.9 million non-farm non-residential loan relationship comprised of five loans; (2) a $2.0 million loan relationship that is classified as purchased credit deteriorated; (3) a commercial lease loan that totaled $1.8 million; (4) a construction and land development loan that totaled $1.7 million; (5) a commercial lease loan that totaled $1.7 million; and (6) a $1.3 million one- to four-family loan relationship.

•First Guaranty charged off $8.8 million in loan balances during the second quarter of 2024. The details of the $8.8 million in charged-off loans were as follows:
1.First Guaranty charged off $0.5 million in consumer loans during the second quarter of 2024. The consumer loan charge offs included $0.1 million of loans secured by automobiles or equipment and $0.4 million in unsecured loans.
2.First Guaranty charged off $3.8 million on a loan relationship associated with a restaurant supply business located in Louisiana during the second quarter of 2024. This loan was secured by real estate, equipment, and inventory. This loan had a previous specific reserve of $2.5 million as of March 31, 2024. This loan had no remaining principal balance at June 30, 2024.
3.First Guaranty charged off a $1.8 million commercial and industrial loan that was originated under the Main Street Lending Program during the second quarter of 2024. The $1.8 million was the unguaranteed retained portion of the loan. This loan had a previous allocation in the reserve of $1.8 million at March 31, 2024. This loan had no remaining principal balance at June 30, 2024.
4.First Guaranty charged off $0.6 million on a real estate secured loan located in Louisiana during the second quarter of 2024. This was an acquired loan from the Union Bank acquisition and was secured by rental properties. This loan had a remaining principal balance of $0.4 million at June 30, 2024.
5.First Guaranty charged off $0.4 million on a commercial and industrial SBA loan relationship during the second quarter of 2024. This relationship had a remaining principal balance of $0.6 million at June 30, 2024.
6.First Guaranty charged off $0.3 million on a real estate secured SBA loan during the second quarter of 2024. This loan had a remaining principal balance of $0.9 million at June 30, 2024.
7.Smaller loans and overdrawn deposit accounts comprised the remaining $1.4 million of charge-offs for the second quarter of 2024.

•Return on average assets for the three months ended June 30, 2024 and 2023 was 0.81% and 0.34%, respectively. Return on average assets for the six months ended June 30, 2024 and 2023 was 0.54% and 0.39%, respectively. Return on average common equity for the three months ended June 30, 2024 and 2023 was 12.16% and 4.19%, respectively. Return on average common equity for the six months ended June 30, 2024 and 2023 was 7.66% and 4.99% 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 $17.76 as of June 30, 2024 compared to $17.36 as of December 31, 2023. The increase was due primarily to the recent issuance of new shares and changes in accumulated other comprehensive income ("AOCI"). AOCI is comprised of unrealized gains and losses on available for sale securities, including unrealized losses on available for sale securities at the time of transfer to held to maturity.

•First Guaranty's Board of Directors declared cash dividends of $0.16 per common share in the second quarter of 2024 and 2023. First Guaranty has paid 124 consecutive quarterly dividends as of June 30, 2024.

•First Guaranty paid preferred stock dividends of $1.2 million during the first six months of 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)June 30, 2024December 31, 2023
Assets  
Cash and cash equivalents:  
Cash and due from banks$298,574 $286,114 
Federal funds sold392 341 
Cash and cash equivalents298,966 286,455 
Investment securities:  
Available for sale, at fair value37,403 83,485 
Held to maturity, at cost and net of allowance for credit losses of $80 (estimated fair value of $251,247 and $253,584 respectively)321,164 320,638 
Investment securities358,567 404,123 
Federal Home Loan Bank stock, at cost12,204 13,390 
Loans held for sale— — 
Loans, net of unearned income2,833,350 2,748,708 
Less: allowance for credit losses30,287 30,926 
Net loans2,803,063 2,717,782 
Premises and equipment, net69,439 69,792 
Goodwill12,900 12,900 
Intangible assets, net3,881 4,298 
Other real estate, net1,032 1,250 
Accrued interest receivable18,137 15,713 
Other assets37,382 27,069 
Total Assets$3,615,571 $3,552,772 
Liabilities and Shareholders' Equity  
Deposits:  
Noninterest-bearing demand$407,607 $442,755 
Interest-bearing demand1,502,703 1,526,628 
Savings234,306 218,986 
Time898,835 820,725 
Total deposits3,043,451 3,009,094 
Short-term advances from Federal Home Loan Bank60,000 50,000 
Short-term borrowings— 10,000 
Repurchase agreements6,971 6,297 
Accrued interest payable12,991 11,807 
Long-term advances from Federal Home Loan Bank155,000 155,000 
Senior long-term debt17,156 39,099 
Junior subordinated debentures44,715 15,000 
Other liabilities20,143 6,844 
Total Liabilities3,360,427 3,303,141 
Shareholders' Equity  
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized  
Non-cumulative perpetual; 34,500 issued and outstanding33,058 33,058 
Common stock, $1 par value - 100,600,000 shares authorized; 12,504,717 and 12,475,424 shares issued and outstanding12,505 12,475 
Surplus149,389 149,085 
Retained earnings72,317 67,972 
Accumulated other comprehensive (loss) income(12,125)(12,959)
Total Shareholders' Equity255,144 249,631 
Total Liabilities and Shareholders' Equity$3,615,571 $3,552,772 
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)2024202320242023
Interest Income:
Loans (including fees)$47,552 $40,290 $94,470 $78,439 
Deposits with other banks3,626 1,071 7,102 1,822 
Securities (including FHLB stock)2,473 2,420 4,987 4,807 
Total Interest Income53,651 43,781 106,559 85,068 
Interest Expense:
Demand deposits17,059 15,036 34,035 28,085 
Savings deposits1,327 838 2,554 1,417 
Time deposits10,446 5,224 20,018 8,800 
Borrowings3,577 1,770 6,789 3,552 
Total Interest Expense32,409 22,868 63,396 41,854 
Net Interest Income21,242 20,913 43,163 43,214 
Less: Provision for credit losses6,805 548 9,109 862 
Net Interest Income after Provision for Credit Losses14,437 20,365 34,054 42,352 
Noninterest Income:
Service charges, commissions and fees795 818 1,528 1,603 
ATM and debit card fees804 828 1,568 1,653 
Net gains on securities— — — — 
Net gains on sale of loans10 — 10 12 
Net gains on sale of assets13,207 7 13,213 18 
Other710 1,159 1,515 2,230 
Total Noninterest Income15,526 2,812 17,834 5,516 
Total Business Revenue, Net of Provision for Credit Losses29,963 23,177 51,888 47,868 
Noninterest Expense:
Salaries and employee benefits10,440 9,932 20,340 19,936 
Occupancy and equipment expense2,547 2,219 4,818 4,421 
Other7,622 7,584 14,385 15,544 
Total Noninterest Expense20,609 19,735 39,543 39,901 
Income Before Income Taxes9,354 3,442 12,345 7,967 
Less: Provision for income taxes2,153 766 2,834 1,823 
Net Income7,201 2,676 9,511 6,144 
Less: Preferred stock dividends582 582 1,164 1,164 
Net Income Available to Common Shareholders$6,619 $2,094 $8,347 $4,980 
Per Common Share:
Earnings$0.53 $0.19 $0.67 $0.46 
Cash dividends paid$0.16 $0.16 $0.32 $0.32 
Weighted Average Common Shares Outstanding12,504,717 10,913,029 12,497,313 10,815,454 
See Notes to Consolidated Financial Statements



              FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Three Months Ended June 30, 2024Three Months Ended June 30, 2023
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$271,113 $3,626 5.38 %$90,388 $1,071 4.75 %
Securities (including FHLB stock)370,926 2,473 2.68 %407,689 2,420 2.38 %
Federal funds sold627 — — %410 — — %
Loans held for sale — — — %— — — %
Loans, net of unearned income (6)2,807,234 47,552 6.81 %2,568,051 40,290 6.29 %
Total interest-earning assets3,449,900 $53,651 6.25 %3,066,538 $43,781 5.73 %
Noninterest-earning assets:
Cash and due from banks20,264 18,443 
Premises and equipment, net70,790 59,924 
Other assets30,854 28,958 
Total Assets$3,571,808 $3,173,863 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits$1,519,363 $17,059 4.52 %$1,458,353 $15,036 4.14 %
Savings deposits231,166 1,327 2.31 %214,055 838 1.57 %
Time deposits885,871 10,446 4.74 %631,605 5,224 3.32 %
Borrowings239,114 3,577 6.02 %122,969 1,770 5.77 %
Total interest-bearing liabilities2,875,514 $32,409 4.53 %2,426,982 $22,868 3.78 %
Noninterest-bearing liabilities:
Demand deposits420,957 496,209 
Other23,342 17,366 
Total Liabilities3,319,813 2,940,557 
Shareholders' equity251,995 233,306 
Total Liabilities and Shareholders' Equity$3,571,808 $3,173,863 
Net interest income$21,242 $20,913 
Net interest rate spread (1)1.72 %1.95 %
Net interest-earning assets (2)$574,386 $639,556 
Net interest margin (3), (4)2.48 %2.74 %
Average interest-earning assets to interest-bearing liabilities119.98 %126.35 %
(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 2.74% for the above periods ended June 30, 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 June 30, 2024 and 2023 respectively.
(5)Annualized.
(6)Includes loan fees of $2.0 million and $1.4 million for the three months ended June 30, 2024 and 2023 respectively.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Six Months Ended June 30, 2024Six Months Ended June 30, 2023
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$266,547 $7,102 5.36 %$81,497 $1,822 4.51 %
Securities (including FHLB stock)381,570 4,987 2.63 %417,104 4,807 2.32 %
Federal funds sold478 — — %421 — — %
Loans held for sale — — — %— — — %
Loans, net of unearned income (6)2,784,384 94,470 6.82 %2,548,446 78,439 6.21 %
Total interest-earning assets3,432,979 $106,559 6.24 %3,047,468 $85,068 5.63 %
Noninterest-earning assets:      
Cash and due from banks19,650 18,853   
Premises and equipment, net70,445 59,043   
Other assets29,345 27,854   
Total Assets$3,552,419   $3,153,218   
Liabilities and Shareholders' Equity      
Interest-bearing liabilities:      
Demand deposits$1,530,063 $34,035 4.47 %$1,473,147 $28,085 3.84 %
Savings deposits227,562 2,554 2.26 %209,190 1,417 1.37 %
Time deposits868,292 20,018 4.64 %596,575 8,800 2.97 %
Borrowings233,635 6,789 5.84 %121,892 3,552 5.88 %
Total interest-bearing liabilities2,859,552 $63,396 4.46 %2,400,804 $41,854 3.52 %
Noninterest-bearing liabilities:      
Demand deposits420,437 503,216   
Other20,258 15,071   
Total Liabilities3,300,247   2,919,091   
Shareholders' equity252,172 234,127   
Total Liabilities and Shareholders' Equity$3,552,419   $3,153,218   
Net interest income $43,163   $43,214  
Net interest rate spread (1)  1.78 %  2.11 %
Net interest-earning assets (2)$573,427   $646,664   
Net interest margin (3), (4)  2.53 %2.86 %
Average interest-earning assets to interest-bearing liabilities  120.05 %126.94 %
(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 2.53% and 2.86% for the above periods ended June 30, 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 June 30, 2024 and 2023 respectively.
(5)Annualized.
(6)Includes loan fees of $4.0 million and $2.8 million for the six months ended June 30, 2024 and 2023 respectively.




The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023:

 June 30, 2024March 31, 2024December 31, 2023September 30, 2023
(in thousands except for %)BalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of Category
Real Estate:    
Construction & land development$355,216 12.5 %$328,090 11.9 %$399,435 14.5 %$342,246 12.6 %
Farmland38,493 1.3 %37,534 1.3 %32,530 1.2 %31,361 1.1 %
1- 4 Family457,263 16.1 %456,659 16.5 %444,850 16.1 %419,045 15.5 %
Multifamily160,256 5.6 %165,148 6.0 %118,921 4.3 %121,206 4.5 %
Non-farm non-residential1,164,117 41.0 %1,133,516 41.1 %1,045,865 37.9 %1,052,750 38.9 %
Total Real Estate2,175,345 76.5 %2,120,947 76.8 %2,041,601 74.0 %1,966,608 72.6 %
Non-Real Estate:
Agricultural47,852 1.7 %43,422 1.6 %41,008 1.5 %47,949 1.8 %
Commercial and industrial(1)
300,597 10.6 %293,292 10.6 %334,972 12.1 %354,836 13.1 %
Commercial leases269,428 9.5 %253,016 9.2 %285,415 10.4 %292,208 10.8 %
Consumer and other47,836 1.7 %49,458 1.8 %54,485 2.0 %46,068 1.7 %
Total Non-Real Estate665,713 23.5 %639,188 23.2 %715,880 26.0 %741,061 27.4 %
Total loans before unearned income2,841,058 100.0 %2,760,135 100.0 %2,757,481 100.0 %2,707,669 100.0 %
Unearned income(7,708) (7,905)(8,773)(8,276)
Total loans net of unearned income$2,833,350  $2,752,230 $2,748,708 $2,699,393 

(1) Includes PPP loans fully guaranteed by the SBA of $2.3 million, $2.6 million, $2.8 million, and $3.1 million at June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.





The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Nonaccrual loans: 
Real Estate: 
Construction and land development$2,314 $598 $530 $664 
Farmland666 903 836 874 
1- 4 family7,900 8,157 6,985 6,827 
Multifamily537 537 537 537 
Non-farm non-residential41,626 9,733 9,740 8,403 
Total Real Estate53,043 19,928 18,628 17,305 
Non-Real Estate:
Agricultural1,379 1,658 1,369 1,378 
Commercial and industrial4,084 4,691 1,581 2,827 
Commercial leases3,552 1,799 1,799 1,799 
Consumer and other267 530 1,810 2,246 
Total Non-Real Estate9,282 8,678 6,559 8,250 
Total nonaccrual loans62,325 28,606 25,187 25,555 
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development— — — 182 
Farmland— — — 2,693 
1- 4 family77 — 124 593 
Multifamily— — — — 
Non-farm non-residential122 14,600 14,711 956 
Total Real Estate199 14,600 14,835 4,424 
Non-Real Estate:
Agricultural— 58 57 61 
Commercial and industrial— — 395 3,659 
Commercial leases— — — — 
Consumer and other— — — — 
Total Non-Real Estate— 58 452 3,720 
Total loans 90 days and greater delinquent & accruing199 14,658 15,287 8,144 
Total non-performing loans62,524 43,264 40,474 33,699 
Real Estate Owned:
Real Estate Loans:
Construction and land development201 282 251 251 
Farmland— — — — 
1- 4 family141 312 309 194 
Multifamily— — — — 
Non-farm non-residential690 690 690 690 
Total Real Estate1,032 1,284 1,250 1,135 
Non-Real Estate Loans:
Agricultural— — — — 
Commercial and industrial— — — — 
Commercial leases— — — — 
Consumer and other— — — — 
Total Non-Real Estate— — — — 
Total Real Estate Owned1,032 1,284 1,250 1,135 
Total non-performing assets$63,556 $44,548 $41,724 $34,834 
Non-performing assets to total loans2.24 %1.62 %1.52 %1.29 %
Non-performing assets to total assets1.76 %1.25 %1.17 %1.02 %
Non-performing loans to total loans2.21 %1.57 %1.47 %1.25 %
Nonaccrual loans to total loans2.20 %1.04 %0.92 %0.95 %
Allowance for credit losses to nonaccrual loans48.60 %109.94 %122.79 %124.97 %
Net loan charge-offs to average loans0.76 %0.29 %0.17 %0.05 %



The following table presents, for the periods indicated, the major categories of other noninterest expense:

 Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Other noninterest expense:  
Legal and professional fees$1,504 $1,358 $2,477 $3,534 
Data processing406 531 783 1,062 
ATM fees394 426 813 823 
Marketing and public relations370 481 703 1,009 
Taxes - sales, capital, and franchise607 545 1,211 1,105 
Operating supplies105 202 206 440 
Software expense and amortization1,367 1,164 2,620 2,404 
Travel and lodging260 387 487 788 
Telephone137 84 242 169 
Amortization of core deposit intangibles174 174 348 348 
Donations108 256 183 426 
Net costs from other real estate and repossessions179 92 383 119 
Regulatory assessment989 946 1,922 1,436 
Other1,022 938 2,007 1,881 
Total other noninterest expense$7,622 $7,584 $14,385 $15,544 



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 %)20242023202220212020
Tangible Common Equity  
Total shareholders' equity$255,144 $249,631 $234,991 $223,889 $178,591 
Adjustments:
Preferred33,058 33,058 33,058 33,058 — 
Goodwill12,900 12,900 12,900 12,900 12,900 
Acquisition intangibles3,310 3,658 4,355 5,051 5,815 
Other intangibles100 100 — — — 
Tangible common equity$205,776 $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
$17.76 $17.36 $18.84 $17.81 $16.66 
Tangible book value per common share
$16.46 $16.03 $17.23 $16.13 $14.92 
Tangible Assets
Total Assets$3,615,571 $3,552,772 $3,151,347 $2,878,120 $2,473,078 
Adjustments:
Goodwill12,900 12,900 12,900 12,900 12,900 
Acquisition intangibles3,310 3,658 4,355 5,051 5,815 
Other intangibles100 100 — — — 
Tangible Assets$3,599,261 $3,536,114 $3,134,092 $2,860,169 $2,454,363 
Tangible common equity to tangible assets5.72 %5.65 %5.89 %6.04 %6.51 %



Financial Data as of Second Quarter 2024

 
2 CERTAIN IMPORTANT INFORMATION CAUTION REGARDING FORWARD LOOKING STATEMENTS This presentation 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. (“First Guaranty,” the “Company” or “FGBI”). 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, changes in general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate acquired entities; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; changes in our organization, compensation and benefit plans; changes in our financial condition or results of operations that reduce capital available to pay dividends; increases in our provision for loan losses and changes in the financial condition or future prospects of issuers of securities that we own, which could cause our actual results and experience to differ from the anticipated results and expectations, expressed in such forward-looking statements. 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. NON-GAAP FINANCIAL MEASURES Statements included in this presentation include non-GAAP financial measures and should be read along with the accompanying tables under the section titled “Non-GAAP Reconciliations.” The Company uses non-GAAP financial measures to analyze its performance. Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company and provide meaningful comparison to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

 
FIRST GUARANTY BANCSHARES, INC.

 
4 FINANCIAL HIGHLIGHTS  Total assets increased YoY by 11.7% to $3.6 billion  Total loans increased YoY by 9.4% to $2.8 billion  QTD net income of $7.2 million  QTD earnings per common share of $0.53  Net interest margin decreased by 10 bps to 2.48% in 2Q compared to 2.58% in 1Q.  Return on average assets of 0.81% for 2Q 2024  Return on average common equity of 12.16% for 2Q 2024  Allowance for credit losses totaled $30.3 million, 1.07% of gross loans  Reserve for unfunded commitments in other liabilities totaled $2.0 million at 06/30/2024.  Strong liquidity resources on and off-balance sheet. 2024 HIGHLIGHTS ¹Non-GAAP measure. See “Certain Important Information – Non-GAAP Financial Measures” on slide 2 Source: Company documents In $000s except for per share data 12/31/2021 12/31/2022 12/31/2023 2Q2024 BALANCE SHEET Total  Assets $2,878,120 $3,151,347 $3,552,772 $3,615,571 Total  Gross  Loans $2,159,359 $2,519,077 $2,748,708 $2,833,350 Total  Deposits $2,596,492 $2,723,792 $3,009,094 $3,043,451 Loans/Deposits 83.16% 92.48% 91.35% 93.10% CAPITAL Common Equity $190,831 $201,933 $216,573 $222,086 Preferred Equity $33,058 $33,058 $33,058 $33,058 Total  Equity/Assets 7.78% 7.46% 7.03% 7.06% Tang. Common Equity/Tang. Assets1 6.04% 5.89% 5.65% 5.72% PROFITABILITY MEASURES Net Interest Margin 3.44% 3.47% 2.69% 2.48% Net Interest Income/Average Assets 3.31% 3.35% 2.60% 2.39% * Non Interest Expense/Average Assets 2.36% 2.38% 2.45% 2.31% * Efficiency Ratio 63.63% 63.94% 83.62% 56.05% Cost of funds 1.11% 1.66% 3.90% 4.53% ROACE 14.06% 13.64% 3.36% 12.16% Earnings  Per Common Share 2.42$            2.48$            0.62$            0.53$                   Net Income $27,297 $28,884 $9,219 $7,201 ASSET QUALITY NPAs/Total  Assets 0.70% 0.47% 1.17% 1.76% Reserves/Total  Loans 1.11% 0.93% 1.13% 1.07% For the Years Ended

 
5 LOAN PORTFOLIO Source: Company documents, as June 30, 2024  Loan growth of 9.4% YOY 20.4% growth in loan interest income YOY  Loan yield of 6.81% 2Q 2024 and 6.29% for 2Q 2023  Loan participation strategy facilitated industry concentration management and efficient use of capital Growth in SBA / USDA guaranteed lending Commercial leases represent 9.5% of the loan portfolio, providing higher yields and shorter average lives than real estate secured loans Oil & Gas related loans made up approximately 3.0% funded and 1.7% unfunded of the total loan portfolio as of June 30, 2024 Hotel and hospitality portfolio totaled $181.3 million, or 6.4% of the total loan portfolio as of June 30, 2024 • All hotels flagged by major brands HIGHLIGHTS Commercial &  Industrial10.6% Non‐Farm Non‐ Residential 41.0% Residential  Real Estate 21.7% Commercial  Leases 9.5% Consumer &  Other 1.7% Agriculture & Farm 3.0%C&D 12.5% LOAN PORTFOLIO COMPOSITION 06/30/24 Loan Portfolio Detail 2Q20242023Y2022Y2021Y($000s) $300,597 $      334,972 $      385,279 $      398,391 Commercial & Industrial 1,164,117 1,045,865 992,929 886,407 Non‐Farm Non‐Residential 617,519 563,771 486,115 354,195 Residential Real Estate 269,428 285,415 317,574 246,022 Commercial Leases 47,836 54,485 47,864 48,142 Consumer & Other 86,345 73,538 63,868 58,557 Agriculture & Farm 355,216 399,435 233,091 174,334 C&D $  2,841,058 $  2,757,481 $  2,526,720 $  2,166,048 Total Gross Loans 7,708 8,773 7,643 6,689 LESS: Unearned Income $  2,833,350 $  2,748,708 $  2,519,077 $  2,159,359 Total Loans

 
6 173.36% 122.79% 48.60% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% 180.00% 200.00% 2022 2023 2024 CREDIT SUMMARY Source: Company documents, as of and for the six months ended June 30, 2024 ACL/NONACCRUALS HISTORICAL ASSET QUALITY 0.47% 1.17% 1.76% 0.18% 0.17% 0.76% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2022 2023 2024 NPAs/Total Assets NCOs/Average Loans NPAs/TOTAL ASSETS & NCOs/AVG LOANS 6/30/202412/31/202312/31/2022(dollars in thousands) $62,325 $25,187 $13,566 NONACCRUAL LOANS $199 $15,287 $1,142 90 DAY LOANS AND GREATER BUT STILL ACCRUING $1,032 $1,250 $113 OREO $63,556 $41,724 $14,821 NONPERFORMING ASSETS $8,768 $3,726 $1,007 QTD Loan Chargeoffs $11,052 $5,953 $6,087 YTD Loan Chargeoffs 1.76%1.17%0.47%NPAs / TOTAL ASSETS 1.72%0.71%0.43%NONACCRUAL LOANS / TOTAL ASSETS 1.07%1.13%0.93%ACL / TOTAL LOANS 18.26%11.63%4.48%TEXAS RATIO

 
7 Demand ‐ Noninterest 13.4% Demand ‐ Interest49.4% Savings 7.7% Time Deposits 29.5% HIGHLIGHTS  Total YoY deposit growth of 10.0%  New Markets opened • Bridgeport, WV Branch opened 4/17/2024 • Mideast market total deposits of approximately $79.1 million with over 1,000 deposit accounts  Long history of ICS / CDARS expertise. $769.5 million at 6/30/24  Uninsured deposits excluding collateralized public funds estimated at approximately 9.1% of deposits  Continued strong CD demand. Time Deposits YoY up 42.6% as consumers shift funds from liquid deposits DEPOSIT PORTFOLIO Source: Company documents, as of and for the three months ended June 30, 2024 6/30/2024 DEPOSIT MIX ($000) 2021Y 2022Y 2023Y 2Q2024 Demand ‐ Noninterest Bearing $532,578 $524,415 $442,755 $407,607 Demand ‐ Interest Bearing 1,275,544 1,460,259 1,526,628 1,502,703 Savings 201,699 205,760 218,986 234,306 Time Deposits 586,671 533,358 820,725 898,835 Total Deposits $2,596,492 $2,723,792 $3,009,094 $3,043,451 Weighted Average Rate 0.8% 1.2% 3.1% 3.7% Deposit Composition

 
FIRST GUARANTY BANCSHARES, INC.

 
v3.24.2
Cover
Jul. 23, 2024
Document Information [Line Items]  
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001408534
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name FIRST GUARANTY BANCSHARES, INC.
Entity Incorporation, State or Country Code LA
Entity File Number 001-37621
Entity Tax Identification Number 26-0513559
Entity Address, Address Line One 400 East Thomas Street
Entity Address, City or Town Hammond
Entity Address, State or Province LA
Entity Address, Postal Zip Code 70401
City Area Code 345-7685
City Area Code (985)
Written Communications false
Soliciting Material false
Amendment Flag false
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $1 par value
Trading Symbol FGBI
Security Exchange Name NASDAQ
Noncumulative Preferred Stock  
Document Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)
Trading Symbol FGBIP
Security Exchange Name NASDAQ
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