Financial Performance - Net income for Q3 2023 was $1.8 million, a decrease of $6.3 million or 78.0% compared to Q3 2022[102]. - Earnings per common share were $0.10 for Q3 2023, down from $0.70 in Q3 2022[102]. - Net interest income for Q3 2023 was $20.4 million, down from $25.4 million in Q3 2022[102]. - Noninterest income for Q3 2023 was $2.5 million, compared to $4.0 million in Q3 2022[102]. - Net income for the three months ended September 30, 2023 was $1.8 million, a decrease of $6.3 million, or 78.0%, from $8.1 million for the same period in 2022[153]. - Net interest income for the three months ended September 30, 2023 was $20.4 million, down from $25.4 million in the prior year, reflecting an increase in interest-bearing liabilities[158]. - Noninterest income totaled $8,000 thousand for the nine months ended September 30, 2023, down from $8,500 thousand for the same period in 2022, a decrease of 5.88%[185]. - Net interest income for the nine months ended September 30, 2023, was $63,659 thousand, a decrease from $76,742 thousand for the same period in 2022, reflecting a decline of 16.9%[186]. Asset and Loan Growth - Total assets increased by $266.9 million to $3.4 billion, or 8.5%, as of September 30, 2023, compared to December 31, 2022[102]. - Total loans reached $2.7 billion, an increase of $180.3 million, or 7.2%, from December 31, 2022[102]. - Net loans increased by $171.9 million, or 6.9%, to $2.7 billion as of September 30, 2023, compared to December 31, 2022[107]. - Loans maturing within one year totaled $384.8 million at September 30, 2023, while time deposits maturing within one year increased to $507.6 million from $312.9 million at December 31, 2022[192]. - Loans, including those held for sale, totaled $2,699,393,000, indicating strong lending activity[208]. Credit Quality and Allowance for Losses - The allowance for credit losses was 1.18% of total loans as of September 30, 2023, compared to 0.93% at December 31, 2022[102]. - The allowance for credit losses totaled $31.9 million at September 30, 2023, up from $23.5 million at December 31, 2022[111]. - As of September 30, 2023, the allowance for credit losses on loans was $31.9 million, representing 1.18% of total loans and covering 94.8% of nonperforming loans[132]. - A provision for credit losses of $1.5 million was made during the nine months ended September 30, 2023, compared to $2.9 million for the same period in 2022[134]. - Special mention loans rose by $21.1 million to $51.4 million at September 30, 2023, primarily due to downgrades in commercial lease and industrial loan relationships[109]. - Substandard loans increased by $49.7 million to $92.5 million at September 30, 2023, mainly due to the downgrade of a real estate secured loan relationship[110]. - Non-performing assets totaled $34.8 million, or 1.02% of total assets, as of September 30, 2023, up from $14.8 million, or 0.47%, at December 31, 2022, representing a 135.0% increase[120]. - Nonaccrual loans increased from $13.6 million at December 31, 2022, to $25.6 million at September 30, 2023, with significant concentrations in non-farm non-residential and one-to-four family loans[121]. - Loans 90 days or greater delinquent and still accruing totaled $8.1 million, an increase of $7.0 million compared to $1.1 million at December 31, 2022[122]. Deposits and Funding - Total deposits increased by $91.2 million, or 3.3%, to $2.8 billion from December 31, 2022, to September 30, 2023[138]. - Time deposits increased by $173.3 million, or 32.5%, to $706.7 million at September 30, 2023, primarily due to increases in consumer and business time deposits[138]. - Noninterest-bearing demand deposits decreased by $66.0 million, or 12.6%, to $458.4 million at September 30, 2023[138]. - The total amount of uninsured deposits was estimated at $280.0 million at September 30, 2023[141]. - Public funds deposits totaled $1.1 billion at September 30, 2023, remaining stable compared to December 31, 2022[145]. Capital and Borrowing - Total shareholders' equity increased to $238.8 million at September 30, 2023, up from $235.0 million at December 31, 2022, driven by a $9.3 million increase in surplus[152]. - The Tier 1 Risk-based Capital Ratio was 9.79% as of September 30, 2023, down from 10.31% at December 31, 2022[201]. - First Guaranty maintained a net borrowing capacity at the Federal Home Loan Bank of $207.7 million as of September 30, 2023, down from $369.5 million at December 31, 2022[193]. - Long-term borrowings from the Federal Home Loan Bank totaled $155.0 million at September 30, 2023[149]. - The capital conservation buffer was 2.72% as of September 30, 2023, exceeding the minimum requirement of 2.50%[197]. Interest Income and Expense - Interest income increased by $12.4 million, or 35.1%, to $47.6 million for the three months ended September 30, 2023, due to growth in the loan portfolio[160]. - Interest income on loans increased by $11.0 million, or 34.0%, to $43.4 million for the three months ended September 30, 2023[162]. - Interest income on loans rose by $31.4 million, or 34.8%, to $121.8 million for the nine months ended September 30, 2023, driven by a $328.3 million increase in average loan balance to $2.6 billion and a 94 basis points increase in average yield to 6.32%[165]. - Interest expense surged by $47.5 million, or 220.7%, to $69.0 million for the nine months ended September 30, 2023, due to rising market interest rates and an increase in average interest-bearing liabilities[168]. - The average rate of interest-bearing demand deposits increased to 4.05% for the nine months ended September 30, 2023, compared to 1.13% for the same period in 2022[168]. - The average rate of time deposits increased by 139 basis points to 3.28% for the nine months ended September 30, 2023[168]. Securities and Investments - Investment securities decreased by $51.0 million to $400.5 million at September 30, 2023, compared to $451.5 million at December 31, 2022[112]. - The available for sale securities portfolio decreased by $51.6 million, or 39.3%, to $79.9 million at September 30, 2023, primarily due to the maturity of U.S. Treasury securities[114]. - The available for sale securities portfolio decreased to $79.9 million, or 19.9% of the investment portfolio, from $131.5 million, or 29.1% at December 31, 2022[192]. - Securities, including FHLB stock, totaled $413,722,000, with $63,557,000 maturing within one year[208].
FIRST GTY BANCSH(FGBIP) - 2023 Q3 - Quarterly Report