First Guaranty Bank(US:FGBI)2023-08-08 16:00Financial Performance - Net income for the second quarter of 2023 was $2.7 million, a decrease of $5.4 million or 67.1% compared to $8.1 million in the second quarter of 2022[107]. - Earnings per common share were $0.19 for the second quarter of 2023, down from $0.70 for the same period in 2022[107]. - Net income for the six months ended June 30, 2023 was $6.1 million, a decrease of $9.6 million, or 60.9%, from $15.7 million for the same period in 2022[162]. - Earnings per common share for the six months ended June 30, 2023 was $0.46, a decrease of 66.2% from $1.36 for the same period in 2022[162]. Asset and Loan Growth - Total assets increased by $84.7 million to $3.2 billion, or 2.7%, as of June 30, 2023 compared to December 31, 2022[107]. - Total loans at June 30, 2023 were $2.6 billion, an increase of $71.6 million, or 2.8%, compared to December 31, 2022[107]. - Net loans increased by $63.2 million, or 2.5%, to $2.6 billion as of June 30, 2023, compared to December 31, 2022[113]. - Total earning assets amount to $3,134,929 thousand, with $2,590,666 thousand in loans and $408,577 thousand in securities[220]. Interest Income and Expense - Net interest income for the second quarter of 2023 was $20.9 million, down from $26.3 million for the same period in 2022[107]. - Interest income increased by $22.0 million, or 35.0%, to $85.1 million for the six months ended June 30, 2023 compared to the prior year[172]. - Interest expense increased by $30.1 million, or 256.9%, to $41.9 million for the six months ended June 30, 2023 from $11.7 million for the same period in 2022[177]. - Net interest margin decreased by 80 basis points to 2.86% for the six months ended June 30, 2023 from 3.66% for the same period in 2022[167]. Credit Quality and Allowance for Losses - The allowance for credit losses was 1.23% of total loans at June 30, 2023, compared to 0.93% at December 31, 2022[107]. - The allowance for credit losses totaled $31.9 million at June 30, 2023, up from $23.5 million at December 31, 2022[117]. - Non-performing assets totaled $25.7 million, or 0.79% of total assets, as of June 30, 2023, an increase of $10.9 million, or 73.5%, from December 31, 2022[127]. - Special mention loans rose by $16.5 million to $46.8 million at June 30, 2023, primarily due to the downgrade of one commercial lease loan relationship[115]. Deposits and Funding - Total deposits increased by $43.6 million, or 1.6%, to $2.8 billion from December 31, 2022, to June 30, 2023[144]. - Noninterest-bearing demand deposits decreased by $58.2 million, or 11.1%, to $466.2 million at June 30, 2023[144]. - Time deposits increased by $97.1 million, or 18.2%, to $630.5 million at June 30, 2023, primarily due to increases in consumer and public fund time deposits[144]. - Total public funds deposits were $1.1 billion at June 30, 2023, down from $1.11 billion at December 31, 2022, with public funds as a percentage of total deposits decreasing to 39.8%[155]. Capital and Equity - Total shareholders' equity rose to $238.9 million at June 30, 2023, up from $235.0 million at December 31, 2022, primarily due to a $9.3 million increase in surplus[159]. - The Tier 1 Risk-based Capital Ratio was 10.22% as of June 30, 2023, compared to 10.31% at December 31, 2022[213]. - The capital conservation buffer was 3.18% as of June 30, 2023, exceeding the minimum requirement of 2.50%[209]. Interest Rate Risk Management - The company has a liability-sensitive position with a negative cumulative gap of $(1,185,315) thousand on a one-year basis as of June 30, 2023[218]. - The management asset liability committee regularly reviews asset liability policies and interest rate risk positions to mitigate exposure[216]. - The company employs various investment strategies to manage interest rate risk, including internal modeling of asset and liability values[216]. - The board investment committee meets monthly to oversee interest rate risk management strategies[215].