First Guaranty Bancshares, Inc. Announces Key Developments and Second Quarter 2024 Financial Results

Core Insights - First Guaranty Bancshares, Inc. reported significant financial improvements for the second quarter and first half of 2024, with net income increasing by 169.1% year-over-year for the second quarter and 54.8% for the first half [8][10]. Financial Performance - Total assets increased by $62.8 million to $3.6 billion as of June 30, 2024, compared to December 31, 2023 [10]. - Total loans reached $2.8 billion, reflecting a net increase of $84.6 million or 3.1% from the end of 2023 [10]. - Total deposits were $3.0 billion, up $34.4 million or 1.1% from December 31, 2023 [10]. - Net interest income for the second quarter was $21.2 million, slightly up from $20.9 million in the same period of 2023 [10]. - The net interest margin decreased to 2.48% for the second quarter of 2024, down 26 basis points from 2.74% in 2023 [10]. Loan and Credit Quality - The allowance for credit losses was 1.07% of total loans as of June 30, 2024, down from 1.13% at the end of 2023 [10]. - Nonaccrual loans increased by $37.1 million to $62.3 million, primarily due to one commercial real estate relationship totaling $36.9 million [3][10]. - First Guaranty charged off $8.8 million in loan balances during the second quarter, with significant charge-offs related to a restaurant supply business and other loans [12]. Business Strategy and Operational Changes - The company is implementing a new business strategy aimed at slowing asset growth, increasing capital, and reducing staff by 71 positions, which is about 15% of its workforce [9]. - Anticipated annual noninterest expense reductions of approximately $12.0 million pre-tax are expected, with $2.0 million savings impacting the fourth quarter of 2024 [9]. - A sale-leaseback transaction involving two branches and part of the headquarters generated a pre-tax gain of approximately $13.2 million [9]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.08 per share for the third and fourth quarters of 2024 [9]. - Book value per common share increased to $17.76 as of June 30, 2024, compared to $17.36 at the end of 2023 [13].