Financial Performance - As of December 31, 2024, First Guaranty Bancshares had consolidated total assets of $4.0 billion, total deposits of $3.5 billion, and total shareholders' equity of $255.0 million[18]. - For the year ended December 31, 2024, net interest income was $88.4 million, significantly higher than the total noninterest income of $24.7 million[158]. - Service charges, commissions, and fees contributed $3.2 million, or 12.9% of total noninterest income for the year ended December 31, 2024, down from $3.4 million, or 32.2%, in the previous year[159]. - The loan to deposit ratio was 77.5% as of December 31, 2024, indicating a strong reliance on loans relative to deposits[171]. - The carrying value of the securities portfolio was $602.7 million as of December 31, 2024, with unrealized losses of $73.8 million due to rising interest rates[171]. Growth and Expansion - First Guaranty has grown from 6 branches and $159 million in assets in 1993 to 35 branches and $4.0 billion in assets by the end of 2024[19]. - The company has supplemented organic growth with four acquisitions since the Share Exchange, enhancing its geographic footprint and deposit stability[21]. - The company continues to focus on expanding its individual and business deposit bases while maintaining a public funds deposit program for stable funding[41]. Regulatory Compliance - As of December 31, 2024, First Guaranty Bank exceeded all regulatory capital requirements and was considered well-capitalized[94]. - The bank's total risk-based capital ratio must be at least 10.0% to be deemed "well capitalized," with a Tier 1 risk-based capital ratio of 8.0% or greater[100]. - The company is subject to consolidated regulatory capital requirements due to total consolidated assets exceeding $3 billion, effective March 31, 2024[115]. - The bank's transactions with affiliates are limited to 10% of its capital stock and surplus for any one affiliate, with an aggregate limit of 20%[103]. Loan Portfolio Composition - As of December 31, 2024, loans secured by non-farm non-residential properties totaled $1.2 billion, representing 42.9% of the total loan portfolio[44]. - Commercial and industrial loans amounted to $257.5 million, or 9.5% of the total loan portfolio, with a maximum loan-to-value limit of 80%[47]. - One- to four-family residential real estate loans totaled $450.4 million, accounting for 16.7% of the total loan portfolio[50]. - Construction and land development loans comprised $330.0 million, or 12.2% of the total loan portfolio, with plans to reduce exposure in 2025[56][58]. - Non-performing assets totaled $120.4 million, representing 3.03% of total assets, an increase of 188.4% from the previous year[122]. Risk Management - The company has developed a fully amortizing loan product that now represents the majority of new origination and renewed loans[45]. - The allowance for credit losses was 1.29% of total loans and 29.00% of total non-performing loans as of December 31, 2024[135]. - The company may need to increase its allowance for credit losses in response to future credit deterioration, which could materially affect net income[135]. - The company faces potential litigation risks related to its participation in the PPP and Main Street Lending Program, which could adversely impact its financial condition[138]. - Environmental liability risks are present due to a significant portion of the loan portfolio being secured by real property, which may incur remediation costs[144]. Capital and Funding - The company intends to continue increasing capital and risk-weighted capital ratios through retained earnings and credit loss allowances[42]. - The bank held $3.5 billion in total deposits as of December 31, 2024, including $1.0 billion in public funds deposits[69][70]. - Brokered deposits were $768.0 million, with $657.5 million in time deposits and $110.5 million in money market deposits[71]. - The ability to declare and pay dividends is limited by regulatory guidance and restrictions, with future dividends dependent on capital levels and financial performance[188]. Cybersecurity and Technology - The Information Security Program is aligned with the Federal Financial Institutions Examination Council (FFIEC) standards for cybersecurity risk management[204]. - The organization has a board-approved risk appetite of "low" for cybersecurity risks[205]. - First Guaranty has developed and implemented an Incident Response Plan (IRP) that is tested annually[206]. - The Chief Information Security Officer (CISO) reports quarterly on cybersecurity metrics and emerging risks[204]. - As of the date of this Form 10-K, there are no known cybersecurity incidents that have materially affected the organization[209]. Community Engagement - The bank's employees volunteered approximately 4,039 hours of service in 2024 and contributed over $256,000 to charitable organizations[78]. - First Guaranty Bank's latest FDIC CRA rating, dated October 11, 2022, was "satisfactory," reflecting its commitment to meet the credit needs of its community[108].
FIRST GTY BANCSH(FGBIP) - 2024 Q4 - Annual Report