First Guaranty Bank(US:FGBI)2023-11-08 16:00Financial Performance - Net income for Q3 2023 was $1.8 million, a decrease of $6.3 million or 78.0% from Q3 2022[108] - Earnings per common share for Q3 2023 were $0.10, down from $0.70 in Q3 2022[108] - First Guaranty's net income for Q3 2023 was $1.8 million, a decrease of $6.3 million or 78.0% from $8.1 million in Q3 2022[160] - For the nine months ended September 30, 2023, net income was $7.9 million, down $15.8 million or 66.7% from $23.8 million in the same period of 2022[161] Asset and Loan Growth - Total assets increased by $266.9 million to $3.4 billion, representing an 8.5% growth from December 31, 2022[108] - Total loans rose by $180.3 million to $2.7 billion, a 7.2% increase compared to December 31, 2022[108] - Net loans increased by $171.9 million, or 6.9%, to $2.7 billion as of September 30, 2023, compared to December 31, 2022[112] - The average outstanding loan balance for the nine months ended September 30, 2023, was $2,576.8 million, compared to $2,248.4 million for the same period in 2022[142] Deposit Trends - Total deposits reached $2.8 billion, up $91.2 million or 3.3% from December 31, 2022[108] - Noninterest-bearing demand deposits decreased by $66.0 million, or 12.6%, to $458.4 million at September 30, 2023[143] - 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[143] - Public funds deposits totaled $1.1 billion at September 30, 2023, remaining stable compared to December 31, 2022[151] Credit Quality and Losses - The allowance for credit losses was 1.18% of total loans at September 30, 2023, compared to 0.93% at December 31, 2022[108] - 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[114] - Substandard loans increased by $49.7 million to $92.5 million at September 30, 2023, mainly due to a downgrade of a real estate secured loan relationship[115] - Non-performing assets totaled $34.8 million, or 1.02% of total assets, as of September 30, 2023, an increase of $20.0 million, or 135.0%, from December 31, 2022[126] Interest Income and Expense - Net interest income for Q3 2023 was $20.4 million, down from $25.4 million in Q3 2022[108] - Interest income for Q3 2023 increased by $12.4 million or 35.1% to $47.6 million compared to Q3 2022[168] - Interest expense surged by $47.5 million, or 220.7%, to $69.0 million for the nine months ended September 30, 2023, largely due to rising market interest rates and an increase in average interest-bearing liabilities[176] - The average yield of interest-earning assets increased by 112 basis points to 5.92% for Q3 2023 from 4.80% in Q3 2022[168] Capital and Equity - Total shareholders' equity rose to $238.8 million at September 30, 2023, up from $235.0 million at December 31, 2022[158] - The Tier 1 Risk-based Capital Ratio was 9.79% as of September 30, 2023, down from 10.31% at December 31, 2022[213] - The capital conservation buffer was 2.72% as of September 30, 2023, exceeding the minimum requirement of 2.50%[209] Noninterest Income and Expenses - Noninterest income for Q3 2023 was $2.5 million, compared to $4.0 million in Q3 2022[108] - 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%[194] - Noninterest expense increased to $59,900 thousand for the nine months ended September 30, 2023, from $52,400 thousand for the same period in 2022, an increase of 14.24%[197] Borrowings and Liquidity - First Guaranty had $152.7 million in short-term borrowings as of September 30, 2023, compared to $146.4 million at December 31, 2022[154] - Long-term borrowings from the Federal Home Loan Bank totaled $155.0 million at September 30, 2023[155] - The company had a discount window line with the Federal Reserve Bank totaling $214.7 million as of September 30, 2023, an increase of $185.7 million from $29.0 million at December 31, 2022[204] - First Guaranty did not have any advances under the discount window facility as of September 30, 2023[204]