Financial Performance - Net income for the third quarter of 2024 was $1.9 million, an increase of $0.2 million or 8.7% from $1.8 million in the same period of 2023[108]. - Net income for the nine months ended September 30, 2024, was $11.4 million, up $3.5 million or 44.5% from $7.9 million in the same period of 2023[108]. - Net interest income for the three months ended September 30, 2024, was $22.7 million, up from $20.4 million in the same period of 2023, primarily due to an increase in interest-earning assets[179]. - Net interest income for the nine months ended September 30, 2024, was $65,861 thousand, compared to $63,659 thousand for the same period in 2023, reflecting an increase of 3.5%[1]. - Noninterest income for the three months ended September 30, 2024, totaled $4.4 million, an increase of $1.9 million from $2.5 million in the same period of 2023[203]. Asset and Liability Growth - Total assets increased by $371.2 million, reaching $3.9 billion as of September 30, 2024, compared to $3.6 billion at December 31, 2023, representing a growth of 10.4%[107]. - Total loans amounted to $2.8 billion, an increase of $20.9 million or 0.8% from December 31, 2023[107]. - Total deposits rose to $3.4 billion, an increase of $420.8 million or 14.0% compared to December 31, 2023[107]. - Total liabilities increased to $3,356,890 thousand as of September 30, 2024, compared to $2,965,726 thousand in the same period of 2023, reflecting a growth of 13.1%[1]. - Total shareholders' equity rose to $256.4 million at September 30, 2024, from $249.6 million at December 31, 2023, driven by a $4.7 million increase in retained earnings[215]. Credit Quality and Loss Provisions - The provision for credit losses for the third quarter of 2024 was $4.9 million, significantly higher than $0.6 million for the same period in 2023[111]. - The provision for credit losses for the first nine months of 2024 was $14.0 million, compared to $1.5 million for the same period in 2023[130]. - Nonaccrual loans increased by $40.6 million to $65.8 million at September 30, 2024, compared to $25.2 million at December 31, 2023[117]. - Nonperforming assets increased to $67.0 million, or 1.71% of total assets, compared to $41.7 million, or 1.17% at December 31, 2023, representing a 60.6% increase[139]. - The allowance for credit losses on loans was $33.3 million, representing 1.20% of total loans and 50.5% of nonperforming loans as of September 30, 2024[151]. Interest Income and Expense - Interest income for the three months ended September 30, 2024, increased by 20.6% to $57.4 million, driven by growth in the loan portfolio and higher market rates[182]. - Interest expense increased by $29.1 million or 42.1%, totaling $98.1 million for the nine months ended September 30, 2024, compared to $69.0 million in the prior year[191]. - The average yield on loans rose by 58 basis points to 6.90% for the nine months ended September 30, 2024, from 6.32% in the prior year[188]. - The average rate of interest-bearing demand deposits was 4.48% for the nine months ended September 30, 2024, up from 4.05% in the prior year[191]. Securities and Investments - Investment securities totaled $664.0 million as of September 30, 2024, an increase of $259.9 million from $404.1 million at December 31, 2023[131]. - The available for sale securities portfolio increased by $259.1 million, or 310.4%, to $342.6 million compared to $83.5 million at December 31, 2023[133]. - The average yield on securities increased by 39 basis points to 2.68% for the nine months ended September 30, 2024, despite a decrease in the average balance of securities[187]. Capital and Liquidity - The capital conservation buffer was 3.64% as of September 30, 2024, exceeding the minimum requirement of 2.50%[218]. - The Tier 1 Risk-based Capital Ratio for the bank was 8.00% as of September 30, 2024, compared to 10.62% in the previous year[221]. - The bank maintained a net borrowing capacity at the Federal Home Loan Bank totaling $477.2 million as of September 30, 2024, an increase from $259.6 million at December 31, 2023[213]. - Cash and cash equivalents increased to $367.6 million at September 30, 2024, compared to $286.5 million at December 31, 2023[212]. Deposits and Funding Sources - Noninterest-bearing demand deposits decreased by $40.8 million, or 9.2%, to $402.0 million at September 30, 2024[160]. - Time deposits increased by $471.8 million, or 57.5%, to $1.3 billion at September 30, 2024, primarily due to increases in brokered time deposits[160]. - Demand deposits total $1,501,886,000, representing a significant portion of the funding sources[228]. - The company has a total of $1,225,827,000 in noninterest-bearing liabilities, which impacts its net interest income[228].

分组1 - First Guaranty Bancshares (FGBI) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of 1,000% [1] - The company posted revenues of $27.1 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 12.32%, compared to $22.93 million in the same quarter last year [2] - Over the last four quarters, First Guaranty Bancshares has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 6.9% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $24.37 million, and for the current fiscal year, it is $0.84 on revenues of $96.28 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 36% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Performance - First Guaranty Bancshares reported a net income of $1.9 million for Q3 2024, an increase of 8.7% from $1.8 million in Q3 2023 [2] - For the nine months ended September 30, 2024, net income was $11.4 million, up 44.5% from $7.9 million in the same period of 2023 [2] - Earnings per common share increased to $0.11 for Q3 2024 from $0.10 in Q3 2023, and for the nine months, it rose to $0.78 from $0.56 [3] Asset and Loan Growth - Total assets increased by $371.2 million to $3.9 billion as of September 30, 2024, compared to $3.6 billion at the end of 2023 [1] - Total loans reached $2.8 billion, reflecting a modest increase of $20.9 million or 0.8% since December 31, 2023 [1][10] - Total deposits grew by $420.8 million, or 14.0%, to $3.4 billion as of September 30, 2024 [1] Credit Quality - The allowance for credit losses was 1.20% of total loans as of September 30, 2024, up from 1.13% at the end of 2023 [4] - The provision for credit losses for Q3 2024 was $4.9 million, significantly higher than $0.6 million in Q3 2023 [5] - Nonaccrual loans increased by $40.6 million to $65.8 million, primarily due to one commercial real estate relationship totaling $37.0 million [11] Interest Income and Margin - Net interest income for Q3 2024 was $22.7 million, compared to $20.4 million in Q3 2023 [4] - The net interest margin for Q3 2024 was 2.51%, a slight decrease from 2.54% in Q3 2023 [8] - For the nine months ended September 30, 2024, the net interest margin was 2.52%, down from 2.75% in the same period of 2023 [8] Investment Securities - Investment securities totaled $664.0 million as of September 30, 2024, an increase of $259.9 million from $404.1 million at the end of 2023 [9] - Available for sale securities at fair value increased to $342.6 million, up from $83.5 million at December 31, 2023 [9] Shareholder Returns - The book value per common share increased to $17.86 as of September 30, 2024, from $17.36 at the end of 2023 [15] - Cash dividends declared were $0.08 per common share for Q3 2024, compared to $0.16 in Q3 2023 [16]

Financial Performance - Net income for the third quarter of 2024 was $1.9 million, an increase of $0.2 million or 8.7% from $1.8 million in the same period of 2023[3] - Earnings per common share increased to $0.11 for the third quarter of 2024 from $0.10 in 2023, and to $0.78 for the nine months ended September 30, 2024, up from $0.56 in 2023[4] - Net income available to common shareholders for the three months ended September 30, 2024, was $1,345 thousand, compared to $1,190 thousand, representing a growth of 13.0%[23] - Total interest income for the three months ended September 30, 2024, was $57,427 thousand, an increase of 20.5% from $47,627 thousand in the same period last year[23] - Net interest income for the three months ended September 30, 2024, was $22,698 thousand, compared to $20,445 thousand for the same period in 2023, reflecting an increase of 11.03%[24] - For the nine months ended September 30, 2024, net interest income was $65,861 thousand, compared to $63,659 thousand for the same period in 2023, reflecting an increase of 3.46%[25] Asset and Deposit Growth - Total assets increased by $371.2 million to $3.9 billion as of September 30, 2024, compared to $3.6 billion at December 31, 2023[2] - Total deposits rose by $420.8 million, or 14.0%, to $3.4 billion at September 30, 2024, compared to December 31, 2023[2] - Total assets increased to $3,924,007 thousand, up from $3,552,772 thousand, representing a growth of approximately 10.5% year-over-year[22] - Total deposits reached $3,429,925 thousand, up from $3,009,094 thousand, showing an increase of 13.9%[22] - Cash and cash equivalents increased to $367,621 thousand from $286,455 thousand, a rise of 28.3% year-over-year[22] - Total assets increased to $3,726,451 thousand as of September 30, 2024, up from $3,298,485 thousand a year earlier, representing a growth of 12.98%[24] Credit Quality and Provisions - The provision for credit losses for the third quarter of 2024 was $4.9 million, significantly higher than $0.6 million in the same period of 2023[6] - Nonaccrual loans increased by $40.6 million to $65.8 million at September 30, 2024, primarily due to one commercial real estate relationship[12] - Provision for credit losses was $4,904 thousand, significantly higher than $627 thousand in the previous year, indicating a substantial increase in risk provisions[23] - Non-performing assets increased to $67,025,000 as of September 30, 2024, compared to $63,556,000 on June 30, 2024, representing a rise of 2.42% of total loans[28] - Nonaccrual loans totaled $65,788,000 as of September 30, 2024, up from $62,325,000 on June 30, 2024, indicating a growing concern in loan performance[28] - The allowance for credit losses to nonaccrual loans ratio improved to 50.59% as of September 30, 2024, compared to 48.60% on June 30, 2024[28] Equity and Shareholder Information - Shareholders' equity increased to $256,350 thousand, up from $241,007 thousand, indicating a growth of 6.03%[24] - Total shareholders' equity increased to $256,396,000 as of September 30, 2024, compared to $249,631,000 in 2023, reflecting a growth of 0.31%[33] - Tangible common equity reached $207,201,000, up from $199,915,000 in 2023, indicating an increase of 0.64%[33] - Book value per common share rose to $17.86, compared to $17.36 in 2023, representing a growth of 2.88%[33] - Tangible book value per common share increased to $16.57 from $16.03 in 2023, marking a rise of 3.37%[33] - The number of common shares outstanding was 12,504,717, slightly up from 12,475,424 in 2023[33] Loan Portfolio and Interest Margin - Net loans rose to $2,736,370 thousand, compared to $2,717,782 thousand, reflecting a slight increase of 0.7%[22] - Loans, net of unearned income, rose to $2,811,227 thousand with a yield of 7.05%, up from $2,632,564 thousand and a yield of 6.54% in the prior year, indicating a growth of 6.79% in loan balances[24] - Total loans before unearned income as of September 30, 2024, amounted to $2,778,600,000, a slight decrease from $2,841,058,000 on June 30, 2024[26] - The net interest margin for the three months ended September 30, 2024, was 2.51%, a decrease of 3 basis points from 2.54% in 2023[9] - The average interest-earning assets to interest-bearing liabilities ratio was 118.42% for the three months ended September 30, 2024, down from 123.88% in the previous year[24] Expenses and Cost Management - Total other noninterest expense for the three months ended September 30, 2024, was $7,070,000, a decrease from $7,446,000 in the same period of 2023[29] - Marketing and public relations expenses decreased to $296,000 for the three months ended September 30, 2024, compared to $463,000 in the same period of 2023[29] - Regulatory assessment expenses increased to $1,182,000 for the three months ended September 30, 2024, compared to $676,000 in the same period of 2023[29]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for First Guaranty Bancshares (FGBI) despite higher revenues, with the actual results being crucial for stock price movement [1] Earnings Expectations - First Guaranty Bancshares is expected to report quarterly earnings of $0.01 per share, reflecting a year-over-year decrease of 90% [2] - Revenues are projected to be $24.13 million, which is an increase of 5.2% compared to the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 38.46% over the last 30 days, indicating a reassessment by analysts [3] - The Most Accurate Estimate for First Guaranty Bancshares aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [6] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the lack of recent analyst revisions makes it challenging to predict an earnings beat for First Guaranty Bancshares [4][6] - A positive Earnings ESP is generally a strong indicator of an earnings beat, especially when combined with a favorable Zacks Rank [5] Historical Performance - In the last reported quarter, First Guaranty Bancshares exceeded the expected earnings of $0.20 per share by delivering $0.53, resulting in a surprise of +165% [7] - Over the past four quarters, the company has beaten consensus EPS estimates twice [7] Industry Context - In the Southeast banking industry, First Citizens BancShares is expected to report earnings of $47.94 per share, indicating a year-over-year decline of 14.3% [9] - First Citizens' revenue is anticipated to be $2.36 billion, down 9.5% from the previous year, with a consensus EPS estimate revised down by 4.4% [9]

Core Viewpoint - The articles emphasize that the content provided is opinion-based and does not constitute investment advice, urging readers to conduct their own research before making investment decisions [1][3][4]. Group 1 - The author has a beneficial long position in FGBI shares, indicating a personal investment interest in the company [2]. - The articles clarify that the opinions expressed are solely those of the author and may change without notice [1][3]. - There is a disclaimer that past performance does not guarantee future results, and no specific investment recommendations are made [4].

Financial Performance - Net income for the second quarter of 2024 was $7.2 million, a 169.1% increase from $2.7 million in the same period of 2023[85]. - For the first six months of 2024, net income was $9.5 million, up 54.8% from $6.1 million in the same period of 2023[136]. - Noninterest income surged to $15.5 million in the second quarter of 2024, compared to $2.8 million in the same period of 2023[87]. - Interest income for Q2 2024 rose by $9.9 million, or 22.5%, to $53.7 million compared to Q2 2023[143]. - Net interest income for Q2 2024 was $21.2 million, slightly up from $20.9 million in Q2 2023[140]. - Total interest-earning assets increased to $3.45 billion for the three months ended June 30, 2024, with a net interest income of $21.24 million[154]. - Total interest-earning assets increased to $3,432,979 thousand for the six months ended June 30, 2024, compared to $3,047,468 thousand for the same period in 2023, reflecting a growth of 12.6%[1]. Asset and Loan Growth - Total assets increased by $62.8 million, reaching $3.6 billion as of June 30, 2024, representing a 1.8% increase from December 31, 2023[94]. - Total loans were $2.8 billion at June 30, 2024, an increase of $84.6 million or 3.1% compared to December 31, 2023[85]. - The average balance of interest-earning assets increased by $383.4 million to $3.4 billion for Q2 2024, reflecting strong loan portfolio growth[140]. - Loans maturing within one year decreased to $341.8 million at June 30, 2024, from $357.7 million at December 31, 2023[169]. Credit Losses and Nonperforming Assets - The provision for credit losses for the second quarter of 2024 was $6.8 million, significantly higher than $0.5 million in the same period of 2023[87]. - The allowance for credit losses was 1.07% of total loans at June 30, 2024, compared to 1.13% at December 31, 2023[86]. - As of June 30, 2024, nonperforming assets totaled $63.6 million, representing 1.76% of total assets, an increase of $21.8 million or 52.3% from $41.7 million (1.17%) at December 31, 2023[108]. - Nonaccrual loans increased from $25.2 million at December 31, 2023, to $62.3 million at June 30, 2024, with significant concentrations in non-farm non-residential and commercial loans[109]. - The provision for credit losses was $9.1 million for the first six months of 2024, compared to $0.9 million for the same period in 2023[100]. Deposits and Funding - Total deposits increased by $34.4 million, or 1.1%, to $3.0 billion from December 31, 2023, to June 30, 2024[123]. - Noninterest-bearing demand deposits decreased by $35.1 million, or 7.9%, to $407.6 million at June 30, 2024[123]. - Time deposits increased by $78.1 million, or 9.5%, to $898.8 million at June 30, 2024, primarily due to increases in consumer and business time deposits[123]. - The total amount of uninsured deposits was estimated at $277.4 million at June 30, 2024[125]. - Public funds deposits totaled $1.2 billion at June 30, 2024, remaining stable compared to December 31, 2023[128]. Shareholder Equity and Dividends - Book value per common share increased to $17.76 as of June 30, 2024, from $17.36 at December 31, 2023[92]. - Total shareholders' equity increased to $255.1 million at June 30, 2024, from $249.6 million at December 31, 2023, driven by a $4.3 million rise in retained earnings[134]. - First Guaranty plans to pay a quarterly cash dividend of $0.08 per share for the third and fourth quarters of 2024[83]. Interest Rates and Margins - The net interest margin decreased to 2.48% for the three months ended June 30, 2024, down 26 basis points from 2.74% in the same period of 2023[88]. - The average rate of total interest-bearing liabilities increased by 75 basis points to 4.53% for Q2 2024, from 3.78% in Q2 2023[140]. - The average yield on loans increased by 52 basis points to 6.81% for Q2 2024, compared to 6.29% in Q2 2023[145]. - The average rate of interest-bearing demand deposits rose to 4.47% for the six months ended June 30, 2024, compared to 3.84% for the same period in 2023[151]. Noninterest Expenses - Noninterest expense increased to $20.6 million for the three months ended June 30, 2024, compared to $19.7 million for the same period in 2023[165]. - Salaries and benefits expense rose to $10.4 million for the three months ended June 30, 2024, from $9.9 million for the same period in 2023[165]. - Noninterest expense for the six months ended June 30, 2024, totaled $39.5 million, a slight decrease from $39.9 million in the same period of 2023[166]. - Salaries and benefits expense increased to $20.3 million for the six months ended June 30, 2024, compared to $19.9 million for the same period in 2023[166].

Financial Performance - Total assets increased by $62.8 million to $3.6 billion as of June 30, 2024, compared to December 31, 2023 [1] - Total loans reached $2.8 billion, an increase of $84.6 million or 3.1% from December 31, 2023 [1] - Total deposits were $3.0 billion, up by $34.4 million or 1.1% from December 31, 2023 [1] - Net income for Q2 2024 was $7.2 million, a significant increase of $4.5 million or 169.1% compared to Q2 2023 [1] - Earnings per common share for Q2 2024 were $0.53, compared to $0.19 for Q2 2023 [1] Credit Quality - The allowance for credit losses was 1.07% of total loans as of June 30, 2024, down from 1.13% at December 31, 2023 [1] - Nonaccrual loans increased by $37.1 million to $62.3 million as of June 30, 2024, primarily due to one commercial real estate relationship [4] - Total charge-offs during Q2 2024 amounted to $8.8 million, with significant amounts related to a restaurant supply business and other loans [13] Investment Securities - Investment securities totaled $358.6 million as of June 30, 2024, a decrease of $45.6 million from December 31, 2023 [3] - Available for sale securities decreased to $37.4 million, down by $46.1 million from December 31, 2023 [3] Business Strategy Changes - The company is implementing a new business strategy that includes slowing asset growth and increasing capital position, resulting in a reduction of 71 positions, approximately 15% of the workforce [12] - Anticipated annual noninterest expense reduction of approximately $12.0 million, with quarterly savings expected to impact Q4 2024 and 2025 [12] - A sale-leaseback transaction was completed for two branches and part of the headquarters, generating a pre-tax gain of approximately $13.2 million [12] Shareholder Returns - Book value per common share increased to $17.76 as of June 30, 2024, from $17.36 at December 31, 2023 [6] - The Board of Directors declared cash dividends of $0.16 per common share for Q2 2024, maintaining a record of 124 consecutive quarterly dividends [6]

Core Insights - First Guaranty Bancshares, Inc. reported significant financial improvements for the second quarter and first half of 2024, with net income increasing by 169.1% year-over-year for the second quarter and 54.8% for the first half [8][10]. Financial Performance - Total assets increased by $62.8 million to $3.6 billion as of June 30, 2024, compared to December 31, 2023 [10]. - Total loans reached $2.8 billion, reflecting a net increase of $84.6 million or 3.1% from the end of 2023 [10]. - Total deposits were $3.0 billion, up $34.4 million or 1.1% from December 31, 2023 [10]. - Net interest income for the second quarter was $21.2 million, slightly up from $20.9 million in the same period of 2023 [10]. - The net interest margin decreased to 2.48% for the second quarter of 2024, down 26 basis points from 2.74% in 2023 [10]. Loan and Credit Quality - The allowance for credit losses was 1.07% of total loans as of June 30, 2024, down from 1.13% at the end of 2023 [10]. - Nonaccrual loans increased by $37.1 million to $62.3 million, primarily due to one commercial real estate relationship totaling $36.9 million [3][10]. - First Guaranty charged off $8.8 million in loan balances during the second quarter, with significant charge-offs related to a restaurant supply business and other loans [12]. Business Strategy and Operational Changes - The company is implementing a new business strategy aimed at slowing asset growth, increasing capital, and reducing staff by 71 positions, which is about 15% of its workforce [9]. - Anticipated annual noninterest expense reductions of approximately $12.0 million pre-tax are expected, with $2.0 million savings impacting the fourth quarter of 2024 [9]. - A sale-leaseback transaction involving two branches and part of the headquarters generated a pre-tax gain of approximately $13.2 million [9]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.08 per share for the third and fourth quarters of 2024 [9]. - Book value per common share increased to $17.76 as of June 30, 2024, compared to $17.36 at the end of 2023 [13].

Company Performance - First Guaranty Bancshares (FGBI) reported quarterly earnings of $0.53 per share, significantly exceeding the Zacks Consensus Estimate of $0.20 per share, and up from $0.19 per share a year ago, indicating strong performance [2][4] - The earnings surprise for the quarter was 165%, with a previous expectation of $0.10 per share resulting in a 40% surprise when actual earnings were $0.14 [3] - The company achieved revenues of $36.77 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 47.90%, compared to $23.73 million in the same quarter last year [4] Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [5] - The current estimate revisions trend for First Guaranty Bancshares is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [8] Industry Context - The Zacks Industry Rank for Banks - Southeast, to which First Guaranty Bancshares belongs, is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [9]