Financial Performance - Net income for the third quarter of 2024 was $1.9 million, an increase of $0.2 million or 8.7% compared to $1.8 million in the same quarter of 2023[99]. - Net income for the nine months ended September 30, 2024, was $11.4 million, an increase of $3.5 million, or 44.5%, from $7.9 million for the same period in 2023[152]. - Net interest income for the three months ended September 30, 2024, was $22.7 million, an increase from $20.4 million for the same period in 2023[156]. - Net interest income for the nine months ended September 30, 2024, was $65.9 million, compared to $63.7 million for the same period in 2023[173]. - Noninterest income for the three months ended September 30, 2024, totaled $4.4 million, an increase of $1.9 million from $2.5 million for the same period in 2023, primarily due to increased gains on the sale of loans[181]. Asset and Deposit 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%[101]. - Total deposits rose to $3.4 billion, an increase of $420.8 million or 14.0% from December 31, 2023[99]. - The investment securities portfolio totaled $664.0 million at September 30, 2024, an increase of $259.9 million from $404.1 million at December 31, 2023[109]. - 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[136]. - Time deposits maturing within one year or less totaled $773.8 million at September 30, 2024, compared to $503.7 million at December 31, 2023, showing growth in short-term funding[189]. Credit Quality and Losses - The allowance for credit losses increased to $33.3 million, or 1.20% of total loans, compared to $30.9 million, or 1.13%, at December 31, 2023[99]. - Nonperforming assets rose to $67.0 million, or 1.71% of total assets, compared to $41.7 million, or 1.17% of total assets at December 31, 2023, marking a 60.6% increase[117]. - Total charge-offs for the nine months ended September 30, 2024, were $13.7 million, compared to $2.0 million for the same period in 2023, indicating a substantial rise in loan losses[178]. - The provision for credit losses for the three months ended September 30, 2024, was $4.9 million, a significant increase from $0.6 million for the same period in 2023[177]. - Special mention loans increased by $60.5 million in 2024, primarily due to downgrades of several loan relationships[106]. Capital and Equity - Total shareholders' equity increased to $256.4 million at September 30, 2024, up from $249.6 million at December 31, 2023, driven by a $4.7 million increase in retained earnings[150]. - The cash and cash equivalents totaled $367.6 million at September 30, 2024, compared to $286.5 million at December 31, 2023, reflecting improved liquidity[189]. - The Bank's Tier 1 Risk-based Capital Ratio was 10.62% as of December 31, 2023, compared to 8.00% minimum requirement[199]. - The Bank's Tier 1 Leverage Ratio was 8.32%, down from 8.94% as of December 31, 2023[199]. - First Guaranty's capital conservation buffer was 2.79% as of September 30, 2024, also above the minimum of 2.50%[195]. Interest Income and Expense - Interest income increased by $9.8 million, or 20.6%, to $57.4 million for the three months ended September 30, 2024, compared to the prior year[158]. - Interest expense increased by $29.1 million, or 42.1%, to $98.1 million for the nine months ended September 30, 2024, from $69.0 million for the same period in 2023, primarily due to rising market interest rates and an increase in the average balance of interest-bearing liabilities[167]. - The average rate of interest-bearing demand deposits increased to 4.48% for the nine months ended September 30, 2024, compared to 4.05% for the same period in 2023[167]. - The average balance of interest-earning assets increased to $3.5 billion for the nine months ended September 30, 2024, with total interest income of $164.0 million[173]. - The average yield of interest-earning assets increased by 42 basis points to 6.34% for the three months ended September 30, 2024[158]. Loan Portfolio - Average balance of loans (excluding loans held for sale) increased by $178.7 million to $2.8 billion for the three months ended September 30, 2024[160]. - The net loan charge-offs to average loans ratio was 0.62% at September 30, 2024, compared to 0.17% at December 31, 2023[116]. - Nonaccrual loans increased significantly from $25.2 million at December 31, 2023, to $65.8 million at September 30, 2024[118]. - As of September 30, 2024, First Guaranty's largest commercial real estate (CRE) loan secured by an apartment complex totaled $41.5 million located in Louisiana[105]. - The average balance of loans, net of unearned income, increased to $2.8 billion for the nine months ended September 30, 2024, generating interest income of $144.3 million[173]. Risk Management - The period gap for interest sensitivity was $(657,330,000), indicating a liability-sensitive position[206]. - Cumulative gap as a percent of earning assets was (17.3%) as of September 30, 2024[206]. - The majority of the Bank's assets are loans secured by real estate and fixed-rate securities, which have longer maturities than liabilities[201]. - The management asset liability committee oversees interest rate risk and meets regularly to review policies and positions[201].
FIRST GTY BANCSH(FGBIP) - 2024 Q3 - Quarterly Report