First Guaranty Bank(FGBI) - 2024 Q3 - Quarterly Results

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]