First Guaranty Bank(US:FGBI)2024-08-09 20:13Financial 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].