Financial Data and Key Metrics Changes - The company reported a loss of $0.54 per share for the first quarter of 2025, attributed to a provision expense of $5.8 million from the sale of $70 million worth of loans due to credit deterioration [23][24] - Total provision for the quarter was $14.5 million, with net interest income before provision at $22.2 million, an increase from $21.9 million in the same quarter last year [25][24] - Noninterest income increased to $2.4 million from $2.3 million year-over-year, while noninterest expense decreased to $18 million from $18.9 million [25][24] Business Line Data and Key Metrics Changes - The management team is focusing on addressing nonperforming assets, which are concentrated in six major loans totaling approximately $105.3 million [24] - The strategy includes reducing risk-weighted assets and improving capital ratios, with the risk-weighted capital ratio improving to 12.74% as of March 2025, up from 11.28% in June 2024 [28] Market Data and Key Metrics Changes - The company has reduced construction lending commitments and is working towards a 300% concentration of commercial real estate to total capital [28] - There has been a dramatic increase in on-balance sheet liquidity, which is crucial for the bank's operations [29] Company Strategy and Development Direction - The company has implemented a change in business strategy since July 2024, focusing on reducing risk and improving capital ratios [27][28] - Cost reduction measures have achieved approximately $12 million in annualized savings compared to last year [30] - The management team is committed to addressing nonperforming assets aggressively and improving overall financial health [30][31] Management's Comments on Operating Environment and Future Outlook - The management team acknowledges the challenges faced in 2024 but expresses confidence in overcoming these issues and improving results by the end of 2025 [8][31] - The CEO emphasized the importance of direction and continuous improvement, stating that the company must not drift but actively work towards its goals [31][32] Other Important Information - The company has reduced its common stock dividend to increase capital at the bank level, reflecting a shift towards strengthening the bank's financial position [28] - The management team has fewer staff but believes they have the right personnel to move forward effectively [30] Q&A Session Summary Question: Are there any questions from virtual attendees? - There were no questions submitted by virtual attendees during the session [34] Question: Are there any questions from the room? - No questions were raised from the attendees present in the room [35]

Group 1 - First Guaranty Bancshares (FGBI) reported a quarterly loss of $0.54 per share, significantly worse than the Zacks Consensus Estimate of $0.17, marking an earnings surprise of -417.65% [1] - The company posted revenues of $24.58 million for the quarter ended March 2025, slightly exceeding the Zacks Consensus Estimate by 0.07%, and showing an increase from $24.23 million year-over-year [2] - The stock has underperformed, losing about 15.4% since the beginning of the year, compared to a decline of -3.8% for the S&P 500 [3] Group 2 - The earnings outlook for First Guaranty Bancshares is mixed, with current consensus EPS estimates at $0.20 for the coming quarter and $0.89 for the current fiscal year [7] - The Zacks Industry Rank for Banks - Southeast is in the top 20% of over 250 Zacks industries, indicating a favorable environment for the sector [8] - First National Corp. is another company in the same industry, expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year change of +3.9% [9]

Financial Performance - First Guaranty recorded a net loss of $6.2 million for Q1 2025, a decrease of $8.5 million or 366.9% compared to a net income of $2.3 million in Q1 2024[3] - Net loss available to common shareholders was $(6,748), compared to net income of $1,728 in the previous year, indicating a significant downturn[11] - Cash dividends paid per common share decreased to $0.01 from $0.16, a reduction of 93.8%[11] Loan and Asset Management - Total loans decreased to $2.51 billion at March 31, 2025, down $181.0 million or 6.7% from $2.69 billion at December 31, 2024[3] - Nonaccrual loan balances increased to $133.4 million, an increase of $24.9 million compared to $108.5 million at December 31, 2024[4] - The provision for credit losses was $14.5 million for Q1 2025, compared to $2.3 million for Q1 2024, with $5.8 million related to the sale of two commercial real estate loans[3] - Total assets decreased by $143.5 million to $3.8 billion at March 31, 2025, compared to $4.0 billion at December 31, 2024[3] - The allowance for credit losses was 1.71% of total loans at March 31, 2025, up from 1.29% at December 31, 2024[3] - Non-performing loans totaled $133,780 thousand as of March 31, 2025, representing an increase of 11.5% from $120,031 thousand on December 31, 2024[18] - The ratio of non-performing assets to total loans increased to 5.33% as of March 31, 2025, up from 4.47% on December 31, 2024[18] - As of March 31, 2025, First Guaranty's total loan portfolio amounted to $2,520,193 thousand, a decrease of 6.7% from $2,702,080 thousand on December 31, 2024[16] Income and Expenses - Net interest income for Q1 2025 was $22.2 million, an increase from $21.9 million in Q1 2024[3] - The net interest margin for Q1 2025 was 2.35%, a decrease of 23 basis points from 2.58% in Q1 2024[3] - Interest income from loans decreased to $42,969, down from $46,918, a decrease of about 8.5%[11] - Net interest income after provision for credit losses dropped to $7,675, down from $19,617, a decline of approximately 60.9%[11] - Provision for credit losses increased significantly to $14,548, compared to $2,304, marking a rise of about 532.5%[11] - Total noninterest expense decreased slightly to $18,017, down from $18,934, a reduction of about 4.8%[11] Equity and Shareholder Information - Book value per common share decreased to $17.21 as of March 31, 2025, down from $17.75 at December 31, 2024[4] - Total shareholders' equity as of March 31, 2025, is $251,445,000, compared to $255,049,000 at December 31, 2024, reflecting a decrease of approximately 0.24%[23] - Tangible common equity stands at $202,599,000 as of March 31, 2025, down from $206,029,000 at December 31, 2024, indicating a decline of about 2.07%[23] - Common shares outstanding increased to 12,691,504 as of March 31, 2025, from 12,504,717 at December 31, 2024, representing an increase of approximately 1.49%[23] Operational Changes - First Guaranty closed three branches and consolidated two existing branches into one location on March 7, 2025, with no material impact on operations[4]

Financial Performance - First Guaranty recorded a net loss of $6.2 million for the three months ended March 31, 2025, compared to a net income of $2.3 million for the same period in 2024, representing a decrease of $8.5 million [107]. - Total assets decreased by $143.5 million to $3.8 billion at March 31, 2025, a decline of 3.6% from December 31, 2024, driven by decreases in investment securities and net loans [111]. - Total shareholders' equity decreased to $251.4 million at March 31, 2025, down from $255.0 million at December 31, 2024, primarily due to a net loss of $6.2 million [156]. - Net loss for the three months ended March 31, 2025 was $6.2 million, a decrease of $8.5 million from net income of $2.3 million for the same period in 2024 [157]. - Noninterest expense decreased to $18.0 million for the three months ended March 31, 2025, from $18.9 million for the same period in 2024 [176]. Loan and Credit Quality - Total loans decreased to $2.51 billion at March 31, 2025, down $181.0 million or 6.7% from December 31, 2024, continuing the strategy to reduce loan concentration risk [107]. - Nonaccrual loan balances increased to $133.4 million at March 31, 2025, an increase of $24.9 million compared to December 31, 2024, primarily concentrated in two commercial real estate loans [107]. - The provision for credit losses was $14.5 million for the first quarter of 2025, significantly higher than $2.3 million for the same period in 2024, with $5.8 million related to the sale of two commercial real estate loans [107]. - Nonperforming assets totaled $133.9 million, or 3.50% of total assets, an increase of $13.6 million, or 11.3%, from $120.4 million, or 3.03%, at December 31, 2024 [127]. - Nonaccrual loans increased from $108.5 million at December 31, 2024, to $133.4 million at March 31, 2025, with a significant portion concentrated in two commercial real estate relationships totaling $40.3 million [128]. Deposits and Funding - Total deposits decreased by $136.8 million, or 3.9%, to $3.3 billion from December 31, 2024, to March 31, 2025 [143]. - Noninterest-bearing demand deposits increased by $21.6 million, or 5.3%, to $425.6 million at March 31, 2025 [143]. - Interest-bearing demand deposits decreased by $138.4 million, or 10.0%, to $1.2 billion at March 31, 2025 [143]. - Public funds deposits totaled $928.4 million at March 31, 2025, down from $1.0 billion at December 31, 2024 [150]. - The total amount of uninsured deposits was estimated at $294.9 million at March 31, 2025 [146]. Capital and Regulatory Compliance - As of March 31, 2025, the Bank's capital conservation buffer was 4.74%, exceeding the minimum requirement of 2.50% [185]. - The Bank satisfied the minimum regulatory capital requirements and was classified as well capitalized as of March 31, 2025 [188]. - The Tier 1 Risk-based Capital Ratio for the Bank was 8.00% as of March 31, 2025, compared to 11.49% at December 31, 2024 [189]. - The total risk-based capital ratio for the Bank was 10.00% as of March 31, 2025, down from 12.74% at December 31, 2024 [189]. Interest Income and Expense - Net interest income for the three months ended March 31, 2025 was $22.2 million, slightly up from $21.9 million for the same period in 2024 [107]. - Interest income increased by $1.6 million, or 2.9%, to $54.5 million for the three months ended March 31, 2025 compared to the prior year [161]. - Interest income on loans decreased by $3.9 million, or 8.4%, to $43.0 million for the three months ended March 31, 2025 [163]. - Interest expense increased by $1.3 million, or 4.0%, to $32.2 million for the three months ended March 31, 2025 [165]. - The net interest margin was 2.35% for the three months ended March 31, 2025, down from 2.58% for the same period in 2024 [169]. Business Strategy and Operations - First Guaranty declared cash dividends of $0.01 per common share in the first quarter of 2025, a reduction from $0.16 per share in the same period of 2024, as part of a new business strategy to increase capital [109]. - First Guaranty closed three branches and consolidated two existing branches into one location on March 7, 2025, with no material impact on operations [109]. - The company modified its business plan in 2024 to reduce the liability-sensitive nature of its balance sheet [192].

Group 1 - The article emphasizes that the opinions expressed are personal and do not constitute investment advice [1][3][4] - It highlights the importance of conducting independent research and analysis before making investment decisions [1][3][4] - The author has a beneficial long position in FGBI shares, indicating a personal investment interest [2] Group 2 - The content is presented as opinion pieces rather than formal investment recommendations [1][3][4] - There is a disclaimer regarding the past performance not guaranteeing future results, underscoring the speculative nature of investments [4] - The article notes that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among contributors [4]

Company Overview - First Guaranty Bancshares (FGBI) shares increased by 6.7% to $8.14 in the last trading session, marking a total gain of 11.7% over the past four weeks [1] - The stock's recent rally is attributed to the postponement of tariffs for 90 days, providing relief to bank investors [1] Earnings Expectations - FGBI is expected to report quarterly earnings of $0.17 per share, reflecting a year-over-year increase of 21.4% [2] - Revenue projections for the upcoming report stand at $24.56 million, which is a 1.4% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for FGBI has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - FGBI currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In comparison, Home Bancorp (HBCP), another bank in the Southeast industry, closed 1.5% higher at $42.24, but has seen a decline of 6.7% over the past month [3]

Financial Performance - As of December 31, 2024, First Guaranty Bancshares had consolidated total assets of $4.0 billion, total deposits of $3.5 billion, and total shareholders' equity of $255.0 million[19]. - For the year ended December 31, 2024, net interest income was $88.4 million, significantly higher than the total noninterest income of $24.7 million, indicating a strong reliance on net interest income[163]. - The loan to deposit ratio was 77.5% at December 31, 2024, indicating a significant portion of assets invested in loans[177]. - The carrying value of the securities portfolio was $602.7 million as of December 31, 2024, with unrealized losses of $73.8 million due to rising interest rates[177]. - The investment securities portfolio generated $66.0 million of pre-tax income over the last five years, with a fair value of U.S. government agency securities at $202.1 million[74][75]. Market Position and Growth - The company has a deposit market share of 46.5% in the Hammond MSA as of June 30, 2024, making it the leading bank in that market[27]. - First Guaranty has grown from 6 branches and $159 million in assets in 1993 to 35 branches and $4.0 billion in assets by the end of 2024[21]. - The company aims to expand its market share along key interstate corridors in Louisiana and Texas while strengthening relationships in Kentucky and West Virginia[38]. - The company has supplemented its organic growth with four acquisitions, enhancing its geographic footprint and deposit base[23]. Loan Portfolio and Credit Risk - As of December 31, 2024, non-farm non-residential loans totaled $1.2 billion, representing 42.9% of the total loan portfolio[46]. - Non-performing assets totaled $120.4 million, representing 3.03% of total assets, an increase of 188.4% from the previous year[126]. - The allowance for credit losses was 1.29% of total loans and 29.00% of total non-performing loans as of December 31, 2024[139]. - The company has a concentration in commercial real estate loans at 369% of total bank capital, subjecting it to additional regulatory scrutiny[141]. - The company must provide for probable loan losses through a current period charge to the provision for credit losses[131]. Regulatory Compliance and Capital Requirements - As of December 31, 2024, First Guaranty Bank exceeded all regulatory capital requirements and was considered well-capitalized based on FDIC and Federal Reserve Board guidelines[98]. - The bank's common equity Tier 1 capital to risk-based assets ratio is required to be at least 4.5%, with a total capital to risk-based assets ratio of 8%[92]. - The bank is subject to a capital conservation buffer of 2.5% of common equity Tier 1 capital to risk-weighted assets above the minimum requirements[95]. - The company is subject to consolidated regulatory capital requirements due to total consolidated assets exceeding $3 billion, effective March 31, 2024[119]. Workforce and Community Engagement - The company has reduced its workforce by approximately 20%, or almost 100 full-time equivalent employees, by the end of 2024 compared to the end of 2023[41]. - The bank's workforce consisted of 396 full-time and 13 part-time employees as of December 31, 2024[82]. - In 2024, employees volunteered approximately 4,039 hours of service and the bank contributed over $256,000 to charitable organizations[80]. Cybersecurity and Operational Risks - The Chief Information Security Officer (CISO) is responsible for the development and implementation of the Information Security Program, with over 30 years of combined cybersecurity experience[209]. - First Guaranty has a board-approved risk appetite of "low" for cybersecurity risks, with any higher risks escalated to the board[210]. - An Incident Response Plan (IRP) has been developed and is tested annually to manage cybersecurity incidents[211]. - Third-party services are engaged for penetration testing and regular evaluations of security protocols[212]. - The company faces operational risks related to its technological infrastructure, which is critical for managing transactions and compliance with regulations[166]. Challenges and Risks - Increased competition for deposits due to rising interest rates could negatively impact liquidity and net interest income[155]. - The judicial foreclosure process may delay the resolution of non-performing loans, adversely affecting recoveries[147]. - Environmental liability risks associated with real property collateral could lead to significant remediation costs and impact financial condition[148]. - The rapid rise in interest rates during 2022 has led to increased volatility and uncertainty in the U.S. banking system, impacting liquidity and customer concentrations[185]. - The company may need to raise additional capital in the future, but market conditions could limit its ability to do so on acceptable terms, potentially impairing growth strategies[183].

Total Assets and Deposits - Total assets increased to $3,972,728 thousand in 2024 from $3,552,772 thousand in 2023, reflecting a growth of 11.8%[8] - Total deposits grew to $3,476,260 thousand in 2024 from $3,009,094 thousand in 2023, an increase of 15.5%[8] Net Loans and Loan Portfolio Composition - Net loans decreased slightly to $2,658,969 thousand in 2024 from $2,717,782 thousand in 2023, a decline of 2.2%[8] - Loans, net of unearned income, grew to $2,776,990 thousand in 2024, up from $2,607,074 thousand in 2023, with a yield of 6.86% compared to 6.41% in 2023[16] - Real estate loans accounted for 79.2% of the total loan portfolio as of December 31, 2024, with non-farm non-residential loans making up the largest portion at 42.9%[19] - Non-real estate loans represented 20.8% of the total loan portfolio as of December 31, 2024, with commercial and industrial loans being the largest segment at 9.5%[19] Net Interest Income and Margin - Net interest income for the year ended December 31, 2024, was $88,438 thousand, up 4.4% from $84,705 thousand in 2023[10] - Net interest income rose to $88,438 thousand in 2024 from $84,705 thousand in 2023, with a net interest margin of 2.47% compared to 2.69% in 2023[16] - Net interest margin decreased to 2.32% in Q4 2024 from 2.53% in Q4 2023[12] - The tax-adjusted net interest margin was 2.47% for the period ended December 31, 2024, compared to 2.69% for the same period in 2023[17] Provision for Credit Losses - Provision for credit losses increased significantly to $20,034 thousand in 2024 from $3,714 thousand in 2023, a rise of 439.5%[10] Net Income and Shareholder Returns - Net income available to common shareholders rose to $10,119 thousand in 2024 from $6,890 thousand in 2023, an increase of 46.9%[10] Interest-Earning Assets and Liabilities - Average interest-earning assets grew to $3,875,261 thousand in Q4 2024 from $3,304,950 thousand in Q4 2023, a 17.3% increase[12] - Total interest-earning assets increased to $3,586,790 thousand in 2024, up from $3,148,369 thousand in 2023, with a yield of 6.18% compared to 5.81% in 2023[16] - Total interest-bearing liabilities increased to $3,290,692 thousand in Q4 2024 from $2,692,441 thousand in Q4 2023, a 22.2% rise[12] - Total interest-bearing liabilities increased to $3,014,012 thousand in 2024, up from $2,518,302 thousand in 2023, with a cost of 4.42% compared to 3.90% in 2023[16] - Net interest-earning assets decreased to $572,778 thousand in 2024 from $630,067 thousand in 2023[16] - The average interest-earning assets to interest-bearing liabilities ratio was 119.00% in 2024, down from 125.02% in 2023[16] Loan Fees - Loan fees contributed $7.1 million in 2024, up from $6.0 million in 2023[18] Net Interest Rate Spread - Net interest rate spread declined to 1.68% in Q4 2024 from 1.73% in Q4 2023[12]

分组1 - First Guaranty Bancshares (FGBI) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.80 per share, representing an earnings surprise of 103.75% [1] - The company posted revenues of $25.08 million for the quarter ended December 2024, which was 3.25% below the Zacks Consensus Estimate, but an increase from $23.62 million year-over-year [2] - Over the last four quarters, First Guaranty Bancshares has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 7.6% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.30 for the coming quarter and $1.31 for the current fiscal year [7] - The Zacks Industry Rank for Banks - Southeast is in the top 10% of over 250 Zacks industries, indicating a favorable environment for the stock [8]

Group 1 - First Guaranty Bancshares (FGBI) has experienced a significant decline of 23.4% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal [1] - The Relative Strength Index (RSI) for FGBI is currently at 21.89, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] - There is strong consensus among Wall Street analysts that FGBI will report better earnings than previously predicted, with a 57.8% increase in the consensus EPS estimate over the last 30 days [6] Group 2 - FGBI holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]