First Guaranty Bank(US:FGBI)2021-05-09 16:00Financial Performance - Net income for the first quarter of 2021 was $5.0 million, up from $3.8 million in the same period of 2020[125]. - Earnings per common share were $0.52 for the first quarter of 2021, compared to $0.39 for the same period in 2020[125]. - Net income for the three months ended March 31, 2021 was $5.0 million, an increase of $1.2 million, or 31.3%, from $3.8 million for the same period in 2020[200]. - The net income for the three-month period ended March 31, 2021, was $5.0 million, partially offset by $1.6 million in cash dividends paid on common stock[229]. Asset and Loan Growth - Total assets increased by $93.6 million, or 3.8%, to $2.6 billion as of March 31, 2021, compared to December 31, 2020[124]. - Total loans rose by $122.3 million, or 6.6%, to $2.0 billion at March 31, 2021, compared to December 31, 2020[124]. - Total deposits increased by $148.4 million, or 6.8%, to $2.3 billion at March 31, 2021, compared to December 31, 2020[124]. - The average outstanding balance of loans was $1.91 billion for the three months ended March 31, 2021, compared to $1.51 billion for the same period in 2020[183]. Interest Income and Margin - Net interest income for the first quarter of 2021 was $19.6 million, compared to $17.9 million for the same period in 2020[129]. - The net interest margin decreased by 32 basis points to 3.25% for the three months ended March 31, 2021, compared to 3.57% for the same period in 2020[132]. - Interest income on loans increased by $1.3 million, or 5.7%, to $23.8 million for the three months ended March 31, 2021[207]. - Average yield of interest-earning assets decreased by 86 basis points to 4.20% for the three months ended March 31, 2021[205]. Loan Losses and Allowance - The allowance for loan losses was 1.26% of total loans at March 31, 2021, down from 1.33% at December 31, 2020[127]. - The allowance for loan losses was $24.8 million, representing 1.26% of total loans and 98.2% of nonperforming loans as of March 31, 2021[173]. - A provision for loan losses of $0.6 million was recorded for the three months ended March 31, 2021, compared to $1.2 million for the same period in 2020[175]. - Total charge-offs were $0.4 million for the three months ended March 31, 2021, compared to $0.3 million for the same period in 2020[216]. Non-Performing Assets - Non-performing assets totaled $27.2 million, or 1.06% of total assets, at March 31, 2021, down from $30.9 million, or 1.25%, at December 31, 2020, representing a decrease of $3.7 million or 12.0%[159]. - Total impaired loans increased by $1.7 million to $17.6 million at March 31, 2021, compared to $15.9 million at December 31, 2020[135]. - Nonaccrual loans increased to $16.1 million at March 31, 2021, from $15.6 million at December 31, 2020[160]. - Loans 90 days or greater delinquent and still accruing totaled $9.1 million, a decrease of $4.0 million compared to $13.1 million at December 31, 2020[161]. Deposits and Funding - Noninterest-bearing demand deposits rose by $55.3 million, or 13.4%, to $466.7 million at March 31, 2021, driven by economic conditions related to the CARES Act and stimulus payments[185]. - Interest-bearing demand deposits increased by $70.7 million, or 8.2%, to $931.1 million at March 31, 2021[185]. - Total public funds deposits increased to $767.7 million at March 31, 2021, compared to $715.3 million at December 31, 2020, reflecting seasonal fluctuations[192]. - The total amount of outstanding certificates of deposit greater than or equal to $100,000 was approximately $513.7 million as of March 31, 2021[187]. Capital and Equity - Total shareholders' equity decreased to $176.3 million at March 31, 2021 from $178.6 million at December 31, 2020, primarily due to a decrease in accumulated other comprehensive income[198]. - First Guaranty issued 34,500 shares of 6.75% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock, raising total gross proceeds of $34.5 million[230]. - The Bank's Tier 1 Risk-based Capital Ratio was 8.00% as of March 31, 2021, down from 10.33% at December 31, 2020[236]. Interest Rate Risk Management - The cumulative interest sensitivity gap was $(492,996) as of March 31, 2021, indicating a liability-sensitive position[245]. - An instantaneous increase of 400 basis points in interest rates would result in a 2.02% increase in net interest income[247]. - A gradual increase of 400 basis points in interest rates would lead to a decrease of 0.52% in net interest income[247]. - The company considers various factors, including borrower debt servicing ability, when monitoring interest rate risk exposure[247].