First Guaranty Bank(FGBI) - 2021 Q3 - Quarterly Report

Financial Performance - Net income for the third quarter of 2021 was $7.8 million, up from $5.2 million in the same period of 2020[120]. - Earnings per common share increased to $0.74 for the third quarter of 2021 from $0.53 in the third quarter of 2020[121]. - Net income for the nine months ended September 30, 2021, was $19.2 million, contributing to an increase in retained earnings of $13.8 million[200]. - Net income for Q3 2021 was $7.8 million, a 50.3% increase from $5.2 million in Q3 2020[202]. - Net income for the nine months ended September 30, 2021 was $19.2 million, a 35.6% increase from $14.2 million in the same period of 2020[203]. Asset and Loan Growth - Total assets increased by $351.4 million, or 14.2%, to $2.8 billion at September 30, 2021 compared to December 31, 2020[119]. - Total loans increased by $229.3 million, or 12.4%, to $2.1 billion at September 30, 2021 compared to December 31, 2020[119]. - Net loans increased by $228.5 million, or 12.6%, to $2.0 billion as of September 30, 2021, compared to December 31, 2020[144]. - The loan portfolio's average outstanding balance increased to $1.999 billion at September 30, 2021, from $1.614 billion at September 30, 2020[182]. - Loans, including those held for sale, totaled $2,073,461,000, indicating strong lending activity[260]. Deposit Growth - Total deposits rose by $378.1 million, or 17.5%, to $2.5 billion at September 30, 2021 compared to December 31, 2020[119]. - Total deposits increased to $2,364.8 million as of September 30, 2021, up from $2,046.6 million at December 31, 2020, representing a growth of 15.6%[189]. - Noninterest-bearing demand deposits rose by $88.2 million, or 21.4%, to $499.6 million at September 30, 2021[184]. - Interest-bearing demand deposits increased by $385.6 million, or 44.8%, to $1.2 billion at September 30, 2021[184]. - Public funds deposits rose to $885.3 million at September 30, 2021, compared to $715.3 million at December 31, 2020, marking an increase of 23.7%[192]. Interest Income and Expense - Net interest income for the third quarter of 2021 was $23.8 million, compared to $19.0 million for the same period in 2020[125]. - Interest income for Q3 2021 increased by $4.2 million, or 16.8%, to $29.4 million compared to Q3 2020[210]. - Interest expense decreased by $0.6 million, or 9.0%, to $5.6 million for the three months ended September 30, 2021, compared to $6.1 million for the same period in 2020[217]. - For the nine months ended September 30, 2021, interest expense decreased by $3.3 million, or 16.2%, to $16.9 million from $20.1 million in the same period in 2020[218]. Noninterest Income and Expense - Noninterest income for the third quarter of 2021 was $2.1 million, down from $3.6 million in the same period of 2020[128]. - Noninterest income totaled $8.0 million for the nine months ended September 30, 2021, a decrease of $1.3 million from $9.3 million for the same period in 2020, primarily due to decreased gains on securities sales[233]. - Noninterest expense increased to $46.8 million for the nine months ended September 30, 2021, compared to $42.6 million for the same period in 2020, driven by higher salaries and benefits expenses[236]. Asset Quality - The provision for loan losses decreased to $0.3 million in the third quarter of 2021 from $1.5 million in the same period of 2020[126]. - The provision for loan losses totaled $1.8 million for the first nine months of 2021, down from $4.6 million for the same period in 2020[147]. - Non-performing assets decreased by $8.0 million, or 26.0%, to $22.9 million, representing 0.81% of total assets as of September 30, 2021[158]. - Nonaccrual loans increased from $15.6 million at December 31, 2020, to $17.8 million at September 30, 2021[159]. - Loans 90 days or greater delinquent and still accruing totaled $2.6 million, a decrease of $10.5 million compared to $13.1 million at December 31, 2020[160]. Capital and Equity - Total shareholders' equity increased to $219.1 million at September 30, 2021, up from $178.6 million at December 31, 2020, reflecting a growth of 22.7%[200]. - The Bank's Tier 1 Risk-based Capital Ratio was 8.00% as of September 30, 2021, down from 10.39% at December 31, 2020, indicating a decrease in capital adequacy[251]. - The capital conservation buffer was 3.48% as of September 30, 2021, exceeding the minimum requirement of 2.50%[248]. Securities and Investments - Investment securities totaled $380.1 million, an increase of $141.6 million from $238.5 million at December 31, 2020[149]. - The held to maturity securities portfolio was $153.3 million, or 40.3% of the investment portfolio, as of September 30, 2021, compared to $0 at December 31, 2020[242]. - The available for sale securities portfolio was $226.8 million, or 59.7% of the investment portfolio, as of September 30, 2021, down from $238.5 million at December 31, 2020[242]. Liquidity and Funding - First Guaranty maintained a net borrowing capacity at the Federal Home Loan Bank totaling $412.8 million at September 30, 2021, compared to $161.2 million at December 31, 2020[243]. - The Bank's liquidity management includes a discount window line with the Federal Reserve Bank and federal funds lines of credit with borrowing capacity of $100.5 million[243]. - Demand deposits reached $1,245,969,000, representing a significant portion of total source of funds[260].