First Guaranty Bank(US:FGBI)2021-08-08 16:00Financial Performance - Net income for the second quarter of 2021 was $6.4 million, up from $5.2 million in the second quarter of 2020[123]. - Net income for the six months ended June 30, 2021, was $11.5 million, a 27.2% increase from $9.0 million in the same period of 2020[203]. - Earnings per common share increased to $0.64 for the second quarter of 2021 from $0.53 in the second quarter of 2020[124]. - Net interest income for the second quarter of 2021 was $21.4 million, compared to $18.8 million for the same period in 2020[128]. - Noninterest income for the second quarter of 2021 was $3.6 million, compared to $3.3 million for the same period in 2020[131]. - Net interest income for the six months ended June 30, 2021, was $41,049 thousand, up from $36,763 thousand in the same period in 2020, representing an increase of 11.9%[1]. - Noninterest income totaled $5,900 thousand for the six months ended June 30, 2021, an increase of $200 thousand from $5,800 thousand for the same period in 2020[2]. Asset and Loan Growth - Total assets increased by $272.0 million, or 11.0%, to $2.7 billion at June 30, 2021 compared to December 31, 2020[122]. - Total loans increased by $222.3 million, or 12.1%, to $2.1 billion at June 30, 2021 compared to December 31, 2020[122]. - Net loans increased by $221.3 million, or 12.2%, to $2.0 billion as of June 30, 2021, compared to December 31, 2020[144]. - Investment securities totaled $446.3 million, an increase of $207.7 million from $238.5 million at December 31, 2020[148]. - The held to maturity securities portfolio was $153.1 million, or 34.3% of the investment portfolio, as of June 30, 2021, compared to $0 at December 31, 2020[242]. Deposit Growth - Total deposits rose by $254.4 million, or 11.7%, to $2.4 billion at June 30, 2021 compared to December 31, 2020[122]. - Noninterest-bearing demand deposits rose by $71.9 million, or 17.5%, to $483.3 million at June 30, 2021, driven by economic conditions related to the CARES Act and stimulus payments[185]. - Interest-bearing demand deposits increased by $216.1 million, or 25.1%, to $1.1 billion at June 30, 2021, primarily in public funds[185]. - Public funds deposits rose to $821.9 million at June 30, 2021, compared to $715.3 million at December 31, 2020, marking an increase of 14.8%[195]. - Total deposits increased to $2,310.3 million as of June 30, 2021, up from $2,046.6 million at December 31, 2020, representing a growth of 12.9%[194]. Loan Loss Provisions and Asset Quality - The provision for loan losses decreased to $0.9 million in the second quarter of 2021 from $1.8 million in the same period of 2020[129]. - The provision for loan losses totaled $1.5 million for the first six months of 2021, down from $3.1 million for the same period in 2020[146]. - Non-performing assets decreased by $5.6 million, or 18.1%, to $25.3 million, representing 0.92% of total assets as of June 30, 2021[158]. - Nonaccrual loans decreased from $15.6 million at December 31, 2020, to $15.1 million at June 30, 2021[159]. - Loans 90 days or greater delinquent and still accruing totaled $8.2 million, a decrease of $4.9 million compared to $13.1 million at December 31, 2020[160]. Shareholder Equity and Capital Ratios - Total shareholders' equity increased to $214.3 million at June 30, 2021, from $178.6 million at December 31, 2020, reflecting a growth of 19.98%[200]. - The Tier 1 Risk-based Capital Ratio was 8.00% as of June 30, 2021, down from 10.64% at December 31, 2020, indicating a decrease in capital adequacy[252]. - The capital conservation buffer was 3.78% as of June 30, 2021, exceeding the minimum requirement of 2.50%[249]. Interest Income and Expense - Interest income on loans increased by $2.8 million, or 12.3%, to $25.2 million in Q2 2021[212]. - Interest expense decreased by $0.9 million, or 14.5%, to $5.5 million for the three months ended June 30, 2021, compared to $6.5 million for the same period in 2020[217]. - For the six months ended June 30, 2021, interest expense decreased by $2.7 million, or 19.4%, to $11.3 million from $14.0 million in the prior year[218]. - The average yield of interest-earning assets decreased by 59 basis points to 4.19% for the first half of 2021 compared to 4.78% for the same period in 2020[213]. Other Financial Metrics - The average maturity of the securities portfolio is forecasted to be approximately 7.85 years based on the current interest rate environment[152]. - The company charged off $0.8 million in loan balances during the first six months of 2021[182]. - The company maintained a net borrowing capacity at the Federal Home Loan Bank totaling $280.1 million as of June 30, 2021, an increase from $161.2 million at December 31, 2020[243]. - The cumulative gap as a percent of earning assets is (28.2)%[261]. - A gradual 400 basis point increase in interest rates would lead to a net interest income decrease of (5.73)%[263].