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

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].