Financial Performance - Net income for the second quarter of 2024 was $7.2 million, an increase of $4.5 million or 169.1% compared to $2.7 million in the second quarter of 2023 [95]. - Net income for the three months ended June 30, 2024, was $7.2 million, a 169.1% increase from $2.7 million for the same period in 2023 [145]. - Net income for the six months ended June 30, 2024, was $9.5 million, a 54.8% increase from $6.1 million for the same period in 2023 [146]. - Earnings per common share for the three months ended June 30, 2024, was $0.53, an increase of 178.9% from $0.19 for the same period in 2023 [145]. Asset and Loan Growth - Total assets increased by $62.8 million, or 1.8%, to $3.6 billion as of June 30, 2024, compared to December 31, 2023 [97]. - Total loans increased by $84.6 million, or 3.1%, to $2.8 billion at June 30, 2024, compared to December 31, 2023 [96]. - The average outstanding loan balance was $2,784.4 million for the six months ended June 30, 2024, compared to $2,548.4 million for the same period in 2023 [129]. Noninterest Income and Expenses - Noninterest income for the second quarter of 2024 was $15.5 million, compared to $2.8 million for the same period in 2023 [95]. - Noninterest income for the three months ended June 30, 2024, totaled $15.5 million, an increase of $12.7 million from $2.8 million for the same period in 2023, primarily due to gains on asset sales [175]. - Noninterest expense for the three months ended June 30, 2024, was $20.6 million, up from $19.7 million for the same period in 2023, reflecting increased salaries and benefits [177]. Credit Losses and Nonperforming Assets - The provision for credit losses for the second quarter of 2024 was $6.8 million, compared to $0.5 million for the same period in 2023 [95]. - Nonperforming loans increased to $62.5 million at June 30, 2024, compared to $40.5 million at December 31, 2023 [112]. - The allowance for credit losses totaled $30.3 million at June 30, 2024, down from $30.9 million at December 31, 2023, with a provision for credit losses of $9.1 million for the first six months of 2024 [103]. - Total charge-offs for the six months ended June 30, 2024, were $11.1 million, compared to $1.5 million for the same period in 2023, indicating a substantial rise in credit losses [172]. Deposits and Borrowings - Total deposits increased by $34.4 million, or 1.1%, to $3.0 billion from December 31, 2023 to June 30, 2024 [130]. - Noninterest-bearing demand deposits decreased by $35.1 million, or 7.9%, to $407.6 million at June 30, 2024 [130]. - 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 [130]. - First Guaranty had long-term borrowings from the FHLB totaling $155.0 million as of June 30, 2024 [141]. Capital Ratios and Equity - Total shareholders' equity increased to $255.1 million at June 30, 2024, up from $249.6 million at December 31, 2023, driven by a $4.3 million increase in retained earnings [144]. - The capital conservation buffer for First Guaranty was 3.28% as of June 30, 2024, exceeding the minimum requirement of 2.50% [188]. - The Bank's Tier 1 Leverage Ratio was 5.00%, down from 8.94% as of December 31, 2023 [192]. - The Common Equity Tier One Capital Ratio was 6.50% as of June 30, 2024, compared to 10.31% as of December 31, 2023 [192]. Interest Income and Margin - Net interest income for the three months ended June 30, 2024, was $21.2 million, up from $20.9 million for the same period in 2023 [150]. - Interest income increased by $9.9 million, or 22.5%, to $53.7 million for the three months ended June 30, 2024, compared to the prior year [153]. - The net interest margin for the three months ended June 30, 2024, was 2.48%, a decrease of 26 basis points from 2.74% for the same period in 2023 [150]. Securities and Investments - Investment securities decreased to $358.6 million at June 30, 2024, down $45.6 million from $404.1 million at December 31, 2023 [104]. - The available for sale securities portfolio decreased by 55.2% to $37.4 million at June 30, 2024, primarily due to the maturity of U.S. Treasury securities [106]. - The held to maturity securities portfolio was $321.2 million at June 30, 2024, representing 89.6% of the investment portfolio, up from 79.3% at December 31, 2023 [183].
FIRST GTY BANCSH(FGBIP) - 2024 Q2 - Quarterly Report