First Guaranty Bank(US:FGBI)2022-08-08 16:00Financial Performance - Net income for the second quarter of 2022 was $8.1 million, an increase of $1.7 million or 26.3% compared to $6.4 million in the second quarter of 2021 [126]. - Earnings per common share were $0.70 for the second quarter of 2022, compared to $0.58 for the same period in 2021 [127]. - Net income for the six months ended June 30, 2022 was $15.7 million, an increase of $4.3 million, or 37.1%, from $11.5 million for the same period in 2021 [211]. - Earnings per common share for the six months ended June 30, 2022 was $1.36, an increase of 29.5% or $0.31 per common share from $1.05 for the same period in 2021 [211]. Asset and Loan Growth - Total assets increased by $81.2 million, or 2.8%, to $2.96 billion at June 30, 2022 compared to December 31, 2021 [125]. - Total loans at June 30, 2022 were $2.3 billion, an increase of $136.4 million, or 6.3%, compared to December 31, 2021 [125]. - Net loans increased by $136.8 million, or 6.4%, to $2.3 billion as of June 30, 2022, compared to December 31, 2021 [149]. - Non-farm non-residential loan balances increased by $76.0 million due to new originations, while multifamily loans increased by $39.6 million primarily from the conversion of existing construction loans to permanent financing [149]. Interest Income and Margin - Net interest income for the second quarter of 2022 was $26.3 million, compared to $21.4 million for the same period in 2021 [130]. - The net interest margin for the three months ended June 30, 2022 was 3.72%, an increase of 39 basis points from 3.33% for the same period in 2021 [134]. - Net interest income for the six months ended June 30, 2022 was $51.3 million, up from $41.0 million in the prior year, reflecting an increase of $10.3 million, or 25.1% [216]. - Average yield of interest-earning assets increased by 30 basis points to 4.49% for the six months ended June 30, 2022 from 4.19% for the same period in 2021 [221]. Non-Performing Assets - Total non-performing loans decreased to $11.0 million from $18.0 million, a reduction of $6.0 million, or 33.4% [162]. - Non-performing assets decreased by $7.4 million, or 36.9%, to $12.6 million, representing 0.43% of total assets as of June 30, 2022 [164]. - The allowance for loan and lease losses was $23.6 million as of June 30, 2022, compared to $24.0 million at December 31, 2021 [152]. Deposits and Equity - Total deposits increased by $63.6 million, or 2.4%, to $2.7 billion from December 31, 2021 to June 30, 2022 [191]. - Total shareholders' equity increased to $226.5 million at June 30, 2022, from $223.9 million at December 31, 2021, primarily due to an increase in retained earnings [208]. - Public funds deposits totaled $1.0 billion at June 30, 2022, up from $957.9 million at December 31, 2021, indicating a growth of 4.5% [201]. Loan Loss Provisions - A provision for loan losses of $1.4 million was made during the six months ended June 30, 2022, compared to $1.5 million for the same period in 2021 [180]. - The provision for loan losses is based on management's evaluation of economic conditions and changes in the loan portfolio [233]. - The allowance for loan losses is considered adequate to cover potential losses, although economic uncertainty may lead to future increases [236]. Interest Rate Sensitivity - The interest sensitivity gap was $(833,876,000) on a one-year basis, indicating a liability-sensitive position [266]. - A 400 basis point increase in interest rates could lead to a decrease in net interest income by 3.59% [269]. - The Bank's asset/liability management process aims to maintain stable net interest income levels under various interest rate environments [259].