First Guaranty Bancshares, Inc. Announces Third Quarter 2024 Financial Results

HAMMOND, La., Oct. 31, 2024 (GLOBE NEWSWIRE) -- First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), which owns First Guaranty Bank, has released its unaudited financial results for the third quarter and the nine months that ended on September 30, 2024.

Here are the key financial highlights for the company:

• Total assets grew by $371.2 million, amounting to $3.9 billion as of September 30, 2024, compared to $3.6 billion at the end of 2023. The total loans stood at $2.8 billion at the end of this quarter, representing a slight increase of $20.9 million or 0.8% from December 31, 2023. Furthermore, total deposits rose by $420.8 million, or 14.0%, reaching $3.4 billion as of September 30, 2024. Retained earnings reached $72.7 million, up from $68.0 million at the end of 2023. Shareholders' equity increased to $256.4 million from $249.6 million in the same timeframe.
• Net income for the third quarter of 2024 was reported at $1.9 million, which is an increase from $1.8 million in 2023, reflecting an 8.7% rise. For the nine months ending September 30, 2024, net income rose significantly to $11.4 million from $7.9 million a year earlier, marking a 44.5% increase.
• Earnings per share rose as well, coming in at $0.11 for the third quarter of 2024 versus $0.10 in 2023, and for the nine months, it increased to $0.78 from $0.56 year-over-year. The number of shares increased due to the issuance of new common stock under various plans.
• The allowance for credit losses stood at 1.20% of total loans by the end of September 2024, compared to 1.13% at the end of the previous year.
• Net interest income for the third quarter of 2024 totaled $22.7 million, an increase from $20.4 million in the same quarter of 2023. For the nine months, net interest income rose to $65.9 million from $63.7 million.
• The provision for credit losses surged to $4.9 million for the third quarter of 2024, up from $0.6 million a year ago. Over the nine months, this provision totaled $14.0 million compared to $1.5 million in the previous year.
• Charge-offs for the first nine months of 2024 were $13.7 million, significantly up from $2.0 million in the same time frame of 2023, while recoveries were reported at $0.7 million.
• First Guaranty reported net gains of $1.5 million from loan sales this quarter, compared to no gains in the same quarter of the previous year.
• The company held $1.2 million of other real estate owned as of September 30, 2024, a slight decrease from $1.3 million at the end of 2023.
• The net interest margin for the quarter dipped to 2.51%, down from 2.54% a year earlier. Over nine months, it decreased from 2.75% to 2.52%. The decline was largely due to increased market interest rates that began in 2022 and continued into 2023, which raised the cost of liabilities.
• Investment securities totaled $664.0 million by the end of the quarter, showing a healthy increase compared to the $404.1 million at the year-end 2023. This year also saw a substantial rise in available-for-sale securities, primarily due to the acquisition of Treasury securities.
• Total loans after accounting for unearned income reached $2.8 billion, marking a slight increase since year-end 2023.
• Nonaccrual loans rose significantly to $65.8 million, with a notable increase concentrated in one commercial real estate project.
• During the third quarter of 2024, the company charged off $2.6 million in loans, with a breakdown including various consumer loans and commercial relationships.
• The return on average assets was maintained at 0.21% for both the third quarters of 2024 and 2023, but improved to 0.42% for the first nine months of 2024 compared to 0.33% the previous year. Return on common equity showed a similar pattern, achieving 2.40% in the latest quarter and climbing to 5.87% for the nine months compared to last year.
• As of September 30, 2024, the book value per share was $17.86, rising from $17.36 at the end of 2023, largely due to new share issuances.
• The Board of Directors declared cash dividends of $0.08 and $0.16 for the third quarters of 2024 and 2023, respectively. First Guaranty has consistently paid dividends for 125 consecutive quarters as of this report.
• In a significant transaction, on June 28, 2024, the Bank completed a sale-leaseback of two branches and part of its headquarters building for $14.7 million, resulting in a pre-tax gain of approximately $13.2 million.

About First Guaranty Bancshares, Inc.

First Guaranty Bancshares, Inc. serves as the holding entity for First Guaranty Bank, a Louisiana-chartered bank which was established in 1934. The bank offers a comprehensive range of financial services with a strong focus on customer relationships and exceptional service. The company currently operates thirty-six branches across Louisiana, Texas, Kentucky, and West Virginia. First Guaranty's shares are traded on NASDAQ under the ticker FGBI.

Forward-Looking Statements

This financial report includes forward-looking statements as defined by U.S. federal securities laws, which reflect the company's views about potential future events. It is essential to recognize that these statements cannot guarantee future events or financial performance, and actual results may differ due to various factors.

finance, banking, earnings