EX-99.1 2 fgbi-ex991pressrelease0930.htm PRESS RELEASE DATED OCTOBER 25, 2021 Document

EXHIBIT 99.1
OCTOBER 25, 2021
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
 
First Guaranty Bancshares, Inc. Announces Third Quarter 2021 Results

Hammond, Louisiana, October 25, 2021 – 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, 2021.

The third quarter of 2021 gives evidence of the strength, the resilience, and the progress of First Guaranty Bancshares, Inc. over the past few years. The third quarter of 2021 brought record earnings and shareholder value in spite of Hurricane Ida and in spite of the continued obstacles of Covid-19. Continued strong loan demand resulted in loan interest income of $26,685,000 for the quarter compared to $22,519,000 for the same quarter of 2020, an increase of approximately 20%. At the same time, our interest expense reduction efforts resulted in a decrease in total interest expense of approximately 10%. The combination resulted in net interest income, after provision for loan losses, for the quarter of $23,528,000 compared to $17,494,000 for the same quarter of 2020; an increase of approximately 35%. At the same time, due to our emphasis on expense control, non-interest expense increased only 8.5%. The net income available to common shareholders improved from, for the quarter, $5,182,000 to $7,209,000, an increase in net income available to common shareholders of approximately 40%.

Strong progress.

Our loan pipeline indicates that we will continue to make strong progress. Because of forgiveness of PPP, our loan portfolio for the quarter did not increase significantly; however, the fact that we replaced PPP loans with core loans, because of the difference in yield, we will increase income by approximately $1,000,000 without any significant difference in our balance sheet. This is the type of management and progress we expect to continue.

And, in case you didn’t know this, we have been selected by Newsweek and Lending Tree, for the second year in a row as the Best Small Bank in the United States. Our championship last year was not a one-time flash. We have shown that we have the quality and consistency to repeat.
We will continue to build a strong, fortress balance sheet. We will continue to enhance shareholder value.

Thank you for your support.

Sincerely,
Alton B. Lewis
President and CEO
First Guaranty, Bancshares, Inc.
 
About First Guaranty
First Guaranty, a Louisiana-based company, has approximately $2.8 billion in assets as of September 30, 2021 and provides personalized commercial banking services through 34 banking facilities located across Louisiana and Texas. For more information, visit www.fgb.net.
Certain statements contained herein are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in our SEC filings, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which First Guaranty operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
First Guaranty wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. First Guaranty wishes to advise readers that the factors listed above could affect First Guaranty's financial performance and could cause First Guaranty's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. First Guaranty does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.


FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)September 30, 2021December 31, 2020
Assets  
Cash and cash equivalents:  
Cash and due from banks$269,617 $298,903 
Federal funds sold160 702 
Cash and cash equivalents269,777 299,605 
Investment securities:  
Available for sale, at fair value226,814 238,548 
Held to maturity, at cost (estimated fair value of $152,235 and $0 respectively)153,333 — 
Investment securities380,147 238,548 
Federal Home Loan Bank stock, at cost1,358 3,351 
Loans held for sale— — 
Loans, net of unearned income2,073,461 1,844,135 
Less: allowance for loan losses25,338 24,518 
Net loans2,048,123 1,819,617 
Premises and equipment, net59,312 59,892 
Goodwill12,900 12,900 
Intangible assets, net6,027 6,587 
Other real estate, net2,531 2,240 
Accrued interest receivable14,097 11,933 
Other assets30,232 18,405 
Total Assets$2,824,504 $2,473,078 
Liabilities and Shareholders' Equity  
Deposits:  
Noninterest-bearing demand$499,649 $411,416 
Interest-bearing demand1,245,969 860,394 
Savings200,094 168,879 
Time598,662 725,629 
Total deposits2,544,374 2,166,318 
Short-term borrowings— 50,000 
Repurchase agreements6,079 6,121 
Accrued interest payable4,304 5,292 
Long-term advances from Federal Home Loan Bank3,248 3,366 
Senior long-term debt25,981 42,366 
Junior subordinated debentures14,807 14,777 
Other liabilities6,626 6,247 
Total Liabilities2,605,419 2,294,487 
Shareholders' Equity  
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized  
Non-cumulative perpetual; 34,500 and 0 shares issued and outstanding, respectively33,058 — 
Common stock, $1 par value - 100,600,000 shares outstanding; 9,741,253 shares issued9,741 9,741 
Surplus110,836 110,836 
Retained earnings71,136 57,367 
Accumulated other comprehensive (loss) income(5,686)647 
Total Shareholders' Equity219,085 178,591 
Total Liabilities and Shareholders' Equity$2,824,504 $2,473,078 
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)2021202020212020
Interest Income:   
Loans (including fees)$26,685 $22,519 $75,629 $67,420 
Deposits with other banks69 51 210 348 
Securities (including FHLB stock)2,660 2,605 5,904 8,162 
Total Interest Income29,414 25,175 81,743 75,930 
Interest Expense:    
Demand deposits1,983 1,291 5,222 4,645 
Savings deposits50 62 152 210 
Time deposits3,079 4,139 9,930 13,137 
Borrowings470 644 1,558 2,136 
Total Interest Expense5,582 6,136 16,862 20,128 
Net Interest Income23,832 19,039 64,881 55,802 
Less: Provision for loan losses304 1,545 1,812 4,626 
Net Interest Income after Provision for Loan Losses23,528 17,494 63,069 51,176 
Noninterest Income:    
Service charges, commissions and fees556 652 1,934 1,852 
ATM and debit card fees874 818 2,649 2,233 
Net (losses) gains on securities(184)789 876 2,631 
Net gains on sale of loans110 679 435 974 
Other706 612 2,092 1,612 
Total Noninterest Income2,062 3,550 7,986 9,302 
Noninterest Expense:    
Salaries and employee benefits8,131 7,254 23,678 22,189 
Occupancy and equipment expense2,227 1,922 6,746 5,616 
Other5,394 5,342 16,340 14,806 
Total Noninterest Expense15,752 14,518 46,764 42,611 
Income Before Income Taxes9,838 6,526 24,291 17,867 
Less: Provision for income taxes2,047 1,344 5,043 3,676 
Net Income7,791 5,182 19,248 14,191 
Less: Preferred stock dividends582 — 802 — 
Net Income Available to Common Shareholders$7,209 $5,182 $18,446 $14,191 
Per Common Share:    
Earnings$0.74 $0.53 $1.89 $1.46 
Cash dividends paid $0.16 $0.16 $0.48 $0.48 
Weighted Average Common Shares Outstanding9,741,253 9,741,253 9,741,253 9,741,253 
 See Notes to Consolidated Financial Statements                      



              FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Three Months Ended September 30, 2021Three Months Ended September 30, 2020
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$190,309 $69 0.14 %$208,108 $51 0.10 %
Securities (including FHLB stock)425,824 2,660 2.48 %419,276 2,605 2.47 %
Federal funds sold2,691 — — %920 — — %
Loans held for sale — — — %102 1 3.54 %
Loans, net of unearned income2,061,501 26,685 5.14 %1,708,015 22,518 5.24 %
Total interest-earning assets2,680,325 $29,414 4.35 %2,336,421 $25,175 4.29 %
Noninterest-earning assets:
Cash and due from banks17,313 12,922 
Premises and equipment, net59,631 58,905 
Other assets22,748 39,199 
Total Assets$2,780,017 $2,447,447 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits$1,192,626 $1,983 0.66 %$742,325 $1,291 0.69 %
Savings deposits199,101 50 0.10 %174,128 62 0.14 %
Time deposits600,921 3,079 2.03 %781,874 4,139 2.11 %
Borrowings78,680 470 2.37 %120,524 644 2.13 %
Total interest-bearing liabilities2,071,328 $5,582 1.07 %1,818,851 $6,136 1.34 %
Noninterest-bearing liabilities:
Demand deposits479,433 429,594 
Other10,003 14,039 
Total Liabilities2,560,764 2,262,484 
Shareholders' equity219,253 184,963 
Total Liabilities and Shareholders' Equity$2,780,017 $2,447,447 
Net interest income$23,832 $19,039 
Net interest rate spread (1)3.28 %2.95 %
Net interest-earning assets (2)$608,997 $517,570 
Net interest margin (3), (4)3.53 %3.24 %
Average interest-earning assets to interest-bearing liabilities129.40 %128.46 %
(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 3.53% and 3.25% for the above periods ended September 30, 2021 and 2020 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, 2021 and 2020 respectively.
(5)Annualized.



              FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$251,465 $210 0.11 %$165,898 $348 0.28 %
Securities (including FHLB stock)318,768 5,904 2.48 %420,554 8,162 2.59 %
Federal funds sold1,342 — — %680 — — %
Loans held for sale 14 — — %452 20 5.87 %
Loans, net of unearned income1,999,809 75,629 5.06 %1,613,847 67,400 5.58 %
Total interest-earning assets2,571,398 $81,743 4.25 %2,201,431 $75,930 4.61 %
Noninterest-earning assets:      
Cash and due from banks14,127 12,898   
Premises and equipment, net60,038 58,190   
Other assets24,127 36,957   
Total Assets$2,669,690   $2,309,476   
Liabilities and Shareholders' Equity      
Interest-bearing liabilities:      
Demand deposits$1,038,276 $5,222 0.67 %$692,760 $4,645 0.90 %
Savings deposits188,099 152 0.11 %159,433 210 0.18 %
Time deposits675,870 9,930 1.96 %778,325 13,137 2.25 %
Borrowings93,434 1,558 2.23 %107,508 2,136 2.65 %
Total interest-bearing liabilities1,995,679 $16,862 1.13 %1,738,026 $20,128 1.55 %
Noninterest-bearing liabilities:      
Demand deposits462,548 381,967   
Other10,067 12,524   
Total Liabilities2,468,294   2,132,517   
Shareholders' equity201,396 176,959   
Total Liabilities and Shareholders' Equity$2,669,690   $2,309,476   
Net interest income $64,881   $55,802  
Net interest rate spread (1)  3.12 %  3.06 %
Net interest-earning assets (2)$575,719   $463,405   
Net interest margin (3), (4)  3.37 %3.39 %
Average interest-earning assets to interest-bearing liabilities  128.85 %126.66 %
(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 3.38% and 3.39% for the above periods ended September 30, 2021 and 2020 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, 2021 and 2020 respectively.
(5)Annualized.





The following table summarizes the components of First Guaranty's loan portfolio as of September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020:
 September 30, 2021June 30, 2021March 31, 2021December 31, 2020
(in thousands except for %)BalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of Category
Real Estate:    
Construction & land development$165,090 7.9 %$191,795 9.3 %$141,858 7.2 %$150,841 8.2 %
Farmland28,008 1.4 %28,157 1.4 %26,410 1.3 %26,880 1.4 %
1- 4 Family287,668 13.8 %278,252 13.4 %273,071 13.9 %271,236 14.7 %
Multifamily102,478 4.9 %104,461 5.0 %110,955 5.6 %45,932 2.5 %
Non-farm non-residential850,614 40.9 %830,686 40.0 %814,003 41.3 %824,137 44.6 %
Total Real Estate1,433,858 68.9 %1,433,351 69.1 %1,366,297 69.3 %1,319,026 71.4 %
Non-Real Estate:
Agricultural36,215 1.7 %34,123 1.6 %26,468 1.3 %28,335 1.5 %
Commercial and industrial343,428 16.5 %358,831 17.3 %330,332 16.8 %353,028 19.1 %
Consumer and other267,683 12.9 %248,157 12.0 %248,814 12.6 %148,783 8.0 %
Total Non-Real Estate647,326 31.1 %641,111 30.9 %605,614 30.7 %530,146 28.6 %
Total loans before unearned income2,081,184 100.0 %2,074,462 100.0 %1,971,911 100.0 %1,849,172 100.0 %
Unearned income(7,723) (8,054)(5,479)(5,037)
Total loans net of unearned income$2,073,461  $2,066,408 $1,966,432 $1,844,135 





The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands)September 30, 2021June 30, 2021March 31, 2021December 31, 2020
Nonaccrual loans: 
Real Estate: 
Construction and land development$623 $623 $621 $621 
Farmland791 791 840 857 
1- 4 family3,034 2,157 2,244 2,227 
Multifamily— — — — 
Non-farm non-residential9,592 7,512 7,846 7,449 
Total Real Estate14,040 11,083 11,551 11,154 
Non-Real Estate:
Agricultural2,416 2,545 3,508 3,472 
Commercial and industrial616 890 663 701 
Consumer and other679 549 387 249 
Total Non-Real Estate3,711 3,984 4,558 4,422 
Total nonaccrual loans17,751 15,067 16,109 15,576 
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development— 1,471 880 1,000 
Farmland— — — — 
1- 4 family1,340 3,462 4,908 4,980 
Multifamily— — — 366 
Non-farm non-residential739 2,431 2,240 4,699 
Total Real Estate2,079 7,364 8,028 11,045 
Non-Real Estate:
Agricultural— 150 186 67 
Commercial and industrial521 578 781 1,856 
Consumer and other— 141 132 123 
Total Non-Real Estate521 869 1,099 2,046 
Total loans 90 days and greater delinquent & accruing2,600 8,233 9,127 13,091 
Total non-performing loans20,351 23,300 25,236 28,667 
Real Estate Owned:
Real Estate Loans:
Construction and land development— — 90 311 
Farmland— — — — 
1- 4 family1,043 357 119 131 
Multifamily— — — — 
Non-farm non-residential1,488 1,663 1,765 1,798 
Total Real Estate2,531 2,020 1,974 2,240 
Non-Real Estate Loans:
Agricultural— — — — 
Commercial and industrial— — — — 
Consumer and other— — — — 
Total Non-Real Estate— — — — 
Total Real Estate Owned2,531 2,020 1,974 2,240 
Total non-performing assets$22,882 $25,320 $27,210 $30,907 
Non-performing assets to total loans1.10 %1.23 %1.38 %1.68 %
Non-performing assets to total assets0.81 %0.92 %1.06 %1.25 %
Non-performing loans to total loans0.98 %1.13 %1.28 %1.55 %



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 %)20212020201920182017
Tangible Common Equity  
Total shareholders' equity$219,085 $178,591 $166,035 $147,284 $143,983 
Adjustments:
Preferred33,058 — — — — 
Goodwill12,900 12,900 12,942 3,472 3,472 
Acquisition intangibles5,225 5,815 6,527 2,704 3,249 
Tangible common equity$167,902 $159,876 $146,566 $141,108 $137,262 
Common shares outstanding
9,741,253 9,741,253 9,741,253 9,687,123 9,687,123 
Book value per common share
$19.10 $18.33 $17.04 $15.20 $14.86 
Tangible book value per common share
$17.24 $16.41 $15.05 $14.57 $14.17 
Tangible Assets
Total Assets$2,824,504 $2,473,078 $2,117,216 $1,817,211 $1,750,430 
Adjustments:
Goodwill12,900 12,900 12,942 3,472 3,472 
Acquisition intangibles5,225 5,815 6,527 2,704 3,249 
Tangible Assets$2,806,379 $2,454,363 $2,097,747 $1,811,035 $1,743,709 
Tangible common equity to tangible assets5.98 %6.51 %6.99 %7.79 %7.87 %