Form 8-K - Current report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2025

FIRST GUARANTY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Louisiana			001-37621			26-0513559
(State or other jurisdiction			(Commission File Number)			(I.R.S. Employer
incorporation or organization)						Identification Number)
400 East Thomas Street
Hammond, Louisiana						70401
(Address of principal executive offices)						(Zip Code)
[phone]
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 

Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1 par value

FGBI

The Nasdaq Stock Market LLC

Depositary Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)

FGBIP

The Nasdaq Stock Market LLC

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Item 2.02.        Results of Operations and Financial Condition

On January 30, 2025, First Guaranty Bancshares, Inc. issued a press release reporting its financial results at and for the three months and year ended December 31, 2024. 

The Press Release is enclosed as Exhibit 99.1 to this report. The information in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01.        Financial Statements and Exhibits. 

Exhibit 99.1    Press Release dated January 30, 2025.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

						FIRST GUARANTY BANCSHARES, INC.
						(Registrant)
Date: January 30, 2025
						By:			/s/Eric J. Dosch
									Eric J. Dosch
									Chief Financial Officer

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INDEX TO EXHIBITS

 

Exhibit Number			Description
Exhibit 99.1			Press Release January 30, 2025 "First Guaranty Bancshares, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results."

EXHIBIT 99.1

January 30, 2025

NEWS FOR IMMEDIATE RELEASE

CONTACT: ERIC J. DOSCH, CFO

985.375.0308

 

First Guaranty Bancshares, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results

Hammond, Louisiana, January 30, 2025 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter and year ending December 31, 2024.

Financial Highlights for the fourth quarter and year ending December 31, 2024, are as follows:

•First Guaranty continued with its new business strategy previously announced on July 23, 2024. In the fourth quarter of 2024, noninterest expense totaled $17.9 million, a decline of $1.8 million from the third quarter of 2024 and a decline of $2.7 million from the second quarter of 2024. Salaries and benefits expense totaled $7.9 million in the fourth quarter of 2024 which was $2.2 million lower than the third quarter of 2024 and $2.6 million lower than the second quarter total of $2024. Full-time equivalent employees totaled 399 at December 31, 2024, a decline of 92 employees, or 19% compared to 491 at December 31, 2023.

•First Guaranty loan balances declined to $2.69 billion at December 31, 2024 compared to $2.77 billion at September 30, 2024 and $2.83 billion at June 30, 2024. The reduction in loan balances occurred due to participations, payoffs, write offs, loan sales and loan amortization. This planned reduction was part of First Guaranty’s strategy to reduce loan concentration risk particularly related to commercial real estate loans. Total real estate secured loans declined to $2.14 billion at December 31, 2024 compared to $2.16 billion at September 30, 2024 and $2.18 billion at June 30, 2024. First Guaranty’s unfunded loan commitments for commercial real estate construction declined to $72 million at December 31, 2024 compared to $108 million at September 30, 2024 and compared to $147 million at June 30, 2024. First Guaranty anticipates continuing to reduce commercial real estate secured loans in 2025.

•Total assets increased $420.0 million and were $4.0 billion at December 31, 2024 compared to $3.6 billion at December 31, 2023. Total loans at December 31, 2024 were $2.7 billion, a decrease of $54.9 million, or 2.0%, compared with December 31, 2023. Total deposits were $3.5 billion at December 31, 2024, an increase of $467.2 million, or 15.5%, compared with December 31, 2023. Retained earnings were $73.0 million at December 31, 2024, an increase of $5.0 million compared to $68.0 million at December 31, 2023. Shareholders' equity was $255.0 million and $249.6 million at December 31, 2024 and December 31, 2023, respectively.

•Net income for the fourth quarter of 2024 and 2023 was $1.0 million and $1.3 million, respectively, a decrease of $0.3 million or 22.5%. Net income for the years ended December 31, 2024 and 2023 was $12.4 million and $9.2 million, respectively, an increase of $3.2 million or 35.0%.

•Earnings per common share were $0.03 and $0.06 for the fourth quarter of 2024 and 2023, respectively, and $0.81 and $0.62 for the years ended December 31, 2024 and 2023, respectively. Total weighted average shares outstanding were 12,504,717 and 11,587,810 for the fourth quarter of 2024 and 2023, respectively, and 12,501,035 and 11,165,303 for the years ended December 31, 2024 and 2023, respectively.

•The allowance for credit losses was 1.29% of total loans at December 31, 2024 compared to 1.13% at December 31, 2023.

•Net interest income for the fourth quarter of 2024 was $22.6 million compared to $21.0 million for the same period in 2023. Net interest income for the year ended December 31, 2024 was $88.4 million compared to $84.7 million for the year ended December 31, 2023.

•The provision for credit losses for the fourth quarter of 2024 was $6.0 million compared to $2.2 million for the same period in 2023. The provision for credit losses for the year ended December 31, 2024 was $20.0 million compared to $3.7 million for the year ended December 31, 2023.

•Charge-offs were $18.6 million during the year ended December 31, 2024 and $6.0 million during 2023. Recoveries totaled $0.9 million during the year ended December 31, 2024 and $1.4 million during 2023.

•Net gains on the sale of loans for the years ended December 31, 2024 was $1.5 million compared to $12,000 for the year ended December 31, 2023.

•First Guaranty had $0.3 million of other real estate owned as of December 31, 2024 compared to $1.3 million at December 31, 2023.

•The net interest margin for the three months ended December 31, 2024 was 2.32% which was a decrease of 21 basis points from the net interest margin of 2.53% for the same period in 2023. The net interest margin for the year ended December 31, 2024 was 2.47% which was a decrease of 22 basis points from the net interest margin of 2.69% for the year ended December 31, 2023. Loans as a percentage of average interest earning assets decreased to 77.4% at December 31, 2024 compared to 82.8% at December 31, 2023.

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•Investment securities totaled $602.7 million at December 31, 2024, an increase of $198.6 million when compared to $404.1 million at December 31, 2023. At December 31, 2024, available for sale securities, at fair value, totaled $281.1 million, an increase of $197.6 million when compared to $83.5 million at December 31, 2023. The increase in available for sale securities was primarily due to purchases of Treasury securities, mortgage-backed securities and collateralized mortgage obligations. At December 31, 2024, held to maturity securities ("HTM"), at amortized cost and net of the allowance for credit losses, totaled $321.6 million, an increase of $1.0 million when compared to $320.6 million at December 31, 2023. The allowance for credit losses for HTM securities was $0.2 million at December 31, 2024, an increase of $0.1 million when compared to $0.1 million at December 31, 2023.

•Total loans net of unearned income were $2.7 billion at December 31, 2024, a net decrease of $54.9 million from December 31, 2023. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $34.8 million at December 31, 2024 and $30.9 million at December 31, 2023, respectively.

•Nonaccrual loans increased $83.3 million to $108.5 million at December 31, 2024 compared to $25.2 million at December 31, 2023. The increase in total nonaccrual loans was concentrated primarily in non-farm non-residential and multifamily loans.

•At December 31, 2024, the largest 6 non-performing loan relationships comprise 76% of total non-performing loans. Additional details on the non-performing relationships are as follows:

1.A $28.7 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the fourth quarter of 2024.

2.A $26.0 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the fourth quarter of 2024.

3.A $23.0 million loan relationship was placed on nonaccrual at June 30, 2024. The loan relationship originally totaled $37.0 million and was secured by five retail shopping center properties located in the Midwest. First Guaranty initiated liquidation of the collateral with two properties sold in the fourth quarter of 2024. The proceeds, net of charge-offs, reduced the balance to $23.0 million. First Guaranty anticipates continued reduction in this loan relationship through additional sales of properties in 2025.

4.A $7.4 million loan relationship contractually matured at the end of the third quarter of 2024 and was greater than 90 days at December 31, 2024. The loan is secured by land located in Texas. First Guaranty anticipates satisfactorily renewing this relationship in the first quarter of 2025 and moving back to the performing loan category.

5.A $4.0 million loan relationship contractually matured at the end of the third quarter of 2024 and was greater than 90 days at December 31, 2024. The loan is secured by a hotel located in Louisiana. First Guaranty and the borrower satisfactorily renewed the relationship in January 2025. It was removed from the nonperforming category and moved to performing in January of 2025.

6.A $2.0 million loan relationship secured by a one- to four- family residential property located in West Virginia; the loan was placed on nonaccrual at June 30, 2024.

•First Guaranty charged off $4.9 million in loan balances during the fourth quarter of 2024. The details of the $4.9 million in charged-off loans were as follows:

1.First Guaranty charged off $0.4 million in consumer loans during the fourth quarter of 2024. The consumer loan charge offs included $0.1 million in credit card loans, $0.1 million of loans secured by automobiles or equipment, and $0.2 million in unsecured loans.

2.First Guaranty charged off $3.9 million on a non-farm non-residential loan relationship during the fourth quarter of 2024. This relationship had remaining principal balance of $23.0 million at December 31, 2024.

3.Smaller loans and overdrawn deposit accounts comprised the remaining $0.6 million of charge-offs for the fourth quarter of 2024.

•Return on average assets for the three months ended December 31, 2024 and 2023 was 0.10% and 0.15%, respectively. Return on average assets for the years ended December 31, 2024 and 2023 was 0.34% and 0.28%, respectively. Return on average common equity for the three months ended December 31, 2024 and 2023 was 0.76% and 1.37%, respectively. Return on average common equity for the years ended December 31, 2024 and 2023 was 4.58% and 3.36% respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.

•Book value per common share was $17.75 as of December 31, 2024 compared to $17.36 as of December 31, 2023. Tangible book value per common share was $16.48 as of December 31, 2024 compared to $16.03 as of December 31, 2023.

•First Guaranty's Board of Directors declared cash dividends of $0.01 and $0.16 per common share in the fourth quarter of 2024 and 2023. First Guaranty has paid 126 consecutive quarterly dividends as of December 31, 2024.

•First Guaranty paid preferred stock dividends of $2.3 million during the years ended December 31, 2024 and 2023.

About First Guaranty

First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates thirty-five locations throughout Louisiana, Texas, Kentucky and West Virginia. First Guaranty’s common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.

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Forward Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended with respect to the financial condition, liquidity, results of operations, and future performance of the business of First Guaranty Bancshares, Inc. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” We caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. These forward-looking statements are subject to a number of factors and uncertainties, including, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

No Offer or Solicitation

This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of First Guaranty. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)						December 31, 2024						December 31, 2023
Assets
Cash and cash equivalents:
Cash and due from banks						$	563,778					$	286,114
Federal funds sold						430						341
Cash and cash equivalents						564,208						286,455
Interest-earning time deposits with banks						250						—
Investment securities:
Available for sale, at fair value						281,097						83,485
Held to maturity, at cost and net of allowance for credit losses of $150 and $80 (estimated fair value of $251,458 and $253,584 respectively)						321,622						320,638
Investment securities						602,719						404,123
Federal Home Loan Bank stock, at cost						9,706						13,390
Loans held for sale						—						—
Loans, net of unearned income						2,693,780						2,748,708
Less: allowance for credit losses						34,811						30,926
Net loans						2,658,969						2,717,782
Premises and equipment, net						67,789						69,792
Goodwill						12,900						12,900
Intangible assets, net						3,474						4,298
Other real estate, net						319						1,250
Accrued interest receivable						14,850						15,713
Other assets						37,544						27,069
Total Assets						$	3,972,728					$	3,552,772
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand						$	404,056					$	442,755
Interest-bearing demand						1,387,068						1,526,628
Savings						234,444						218,986
Time						1,450,692						820,725
Total deposits						3,476,260						3,009,094
Short-term advances from Federal Home Loan Bank						—						50,000
Short-term borrowings						—						10,000
Repurchase agreements						7,009						6,297
Accrued interest payable						20,437						11,807
Long-term advances from Federal Home Loan Bank						135,000						155,000
Senior long-term debt						15,169						39,099
Junior subordinated debentures						44,745						15,000
Other liabilities						19,059						6,844
Total Liabilities						3,717,679						3,303,141
Shareholders' Equity
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 issued and outstanding						33,058						33,058
Common stock, $1 par value - 100,600,000 shares authorized; 12,504,717 and 12,475,424 shares issued and outstanding						12,505						12,475
Surplus						149,389						149,085
Retained earnings						72,965						67,972
Accumulated other comprehensive (loss) income						(12,868)						(12,959)
Total Shareholders' Equity						255,049						249,631
Total Liabilities and Shareholders' Equity						$	3,972,728					$	3,552,772
See Notes to Consolidated Financial Statements

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
						Three Months Ended December 31,												Years Ended December 31,
(in thousands, except share data)						2024						2023						2024						2023
Interest Income:
Loans (including fees)						$	46,101					$	45,294					$	190,382					$	167,140
Deposits with other banks						5,652						2,549						17,399						6,268
Securities (including FHLB stock)						5,967						2,471						13,925						9,601
Total Interest Income						57,720						50,314						221,706						183,009
Interest Expense:
Demand deposits						14,339						16,056						65,331						60,243
Savings deposits						1,245						1,136						5,173						3,554
Time deposits						16,517						8,663						49,166						23,967
Borrowings						3,042						3,413						13,598						10,540
Total Interest Expense						35,143						29,268						133,268						98,304
Net Interest Income						22,577						21,046						88,438						84,705
Less: Provision for credit losses						6,021						2,225						20,034						3,714
Net Interest Income after Provision for Credit Losses						16,556						18,821						68,404						80,991
Noninterest Income:
Service charges, commissions and fees						846						940						3,189						3,401
ATM and debit card fees						780						793						3,132						3,242
Net gains on securities						—						—						—						—
Net gains on sale of loans						—						—						1,481						12
Net gains on sale of assets						62						12						13,306						23
Other						812						827						3,631						3,899
Total Noninterest Income						2,500						2,572						24,739						10,577
Total Business Revenue, Net of Provision for Credit Losses						19,056						21,393						93,143						91,568
Noninterest Expense:
Salaries and employee benefits						7,866						10,057						38,304						40,422
Occupancy and equipment expense						2,831						2,485						10,187						9,027
Other						7,191						7,233						28,646						30,223
Total Noninterest Expense						17,888						19,775						77,137						79,672
Income Before Income Taxes						1,168						1,618						16,006						11,896
Less: Provision for income taxes						158						315						3,558						2,677
Net Income						1,010						1,303						12,448						9,219
Less: Preferred stock dividends						582						582						2,329						2,329
Net Income Available to Common Shareholders						$	428					$	721					$	10,119					$	6,890
Per Common Share:
Earnings						$	0.03					$	0.06					$	0.81					$	0.62
Cash dividends paid						$	0.01					$	0.16					$	0.41					$	0.64
Weighted Average Common Shares Outstanding						12,504,717						11,587,810						12,501,035						11,165,303
See Notes to Consolidated Financial Statements

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
						Three Months Ended December 31, 2024																		Three Months Ended December 31, 2023
(in thousands except for %)						Average Balance						Interest						Yield/Rate (5)						Average Balance						Interest						Yield/Rate (5)
Assets
Interest-earning assets:
Interest-earning deposits with banks						$	455,769					$	5,652					4.93		%				$	192,007					$	2,549					5.27		%
Securities (including FHLB stock)						689,040						5,967						3.45		%				415,691						2,471						2.36		%
Federal funds sold						2,326						—						—		%				324						—						—		%
Loans held for sale						—						—						—		%				—						—						—		%
Loans, net of unearned income (6)						2,728,126						46,101						6.72		%				2,696,928						45,294						6.66		%
Total interest-earning assets						3,875,261						$	57,720					5.93		%				3,304,950						$	50,314					6.04		%
Noninterest-earning assets:
Cash and due from banks						21,236																		18,795
Premises and equipment, net						68,348																		66,410
Other assets						30,414																		26,943
Total Assets						$	3,995,259																	$	3,417,098
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits						$	1,440,298					$	14,339					3.96		%				$	1,419,494					$	16,056					4.49		%
Savings deposits						232,269						1,245						2.13		%				217,507						1,136						2.07		%
Time deposits						1,415,224						16,517						4.64		%				804,590						8,663						4.27		%
Borrowings						202,901						3,042						5.96		%				250,850						3,413						5.40		%
Total interest-bearing liabilities						3,290,692						$	35,143					4.25		%				2,692,441						$	29,268					4.31		%
Noninterest-bearing liabilities:
Demand deposits						410,083																		458,612
Other						38,767																		23,769
Total Liabilities						3,739,542																		3,174,822
Shareholders' equity						255,717																		242,276
Total Liabilities and Shareholders' Equity						$	3,995,259																	$	3,417,098
Net interest income												$	22,577																	$	21,046
Net interest rate spread (1)																		1.68		%																1.73		%
Net interest-earning assets (2)						$	584,569																	$	612,509
Net interest margin (3), (4)																		2.32		%																2.53		%
Average interest-earning assets to interest-bearing liabilities																		117.76		%																122.75		%

(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 2.32% and 2.53% for the above periods ended December 31, 2024 and 2023 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2024 and 2023 respectively.

(5)Annualized.

(6)Includes loan fees of $1.5 million and $1.7 million for the three months ended December 31, 2024 and 2023 respectively.

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FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
						Year Ended December 31, 2024																		Year Ended December 31, 2023
(in thousands except for %)						Average Balance						Interest						Yield/Rate						Average Balance						Interest						Yield/Rate
Assets
Interest-earning assets:
Interest-earning deposits with banks						$	338,743					$	17,399					5.14		%				$	125,417					$	6,268					5.00		%
Securities (including FHLB stock)						469,679						13,925						2.96		%				415,504						9,601						2.31		%
Federal funds sold						1,378						—						—		%				374						—						—		%
Loans held for sale						—						—						—		%				—						—						—		%
Loans, net of unearned income (6)						2,776,990						190,382						6.86		%				2,607,074						167,140						6.41		%
Total interest-earning assets						3,586,790						$	221,706					6.18		%				3,148,369						$	183,009					5.81		%
Noninterest-earning assets:
Cash and due from banks						19,891																		18,729
Premises and equipment, net						69,548																		61,733
Other assets						30,785																		27,514
Total Assets						$	3,707,014																	$	3,256,345
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits						$	1,499,959					$	65,331					4.36		%				$	1,448,597					$	60,243					4.16		%
Savings deposits						230,393						5,173						2.25		%				213,025						3,554						1.67		%
Time deposits						1,048,118						49,166						4.69		%				669,661						23,967						3.58		%
Borrowings						235,542						13,598						5.77		%				187,019						10,540						5.64		%
Total interest-bearing liabilities						3,014,012						$	133,268					4.42		%				2,518,302						$	98,304					3.90		%
Noninterest-bearing liabilities:
Demand deposits						414,804																		481,456
Other						24,084																		18,672
Total Liabilities						3,452,900																		3,018,430
Shareholders' equity						254,114																		237,915
Total Liabilities and Shareholders' Equity						$	3,707,014																	$	3,256,345
Net interest income												$	88,438																	$	84,705
Net interest rate spread (1)																		1.76		%																1.91		%
Net interest-earning assets (2)						$	572,778																	$	630,067
Net interest margin (3), (4)																		2.47		%																2.69		%
Average interest-earning assets to interest-bearing liabilities																		119.00		%																125.02		%

(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 2.47% and 2.69% for the above periods ended December 31, 2024 and 2023 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2024 and 2023 respectively.

(5)Includes loan fees of $7.1 million and $6.0 million for the years ended December 31, 2024 and 2023 respectively.

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The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024:

						December 31, 2024												September 30, 2024												June 30, 2024												March 31, 2024
(in thousands except for %)						Balance						As % of Category						Balance						As % of Category						Balance						As % of Category						Balance						As % of Category
Real Estate:
Construction & land development						$	330,048					12.2		%				$	323,123					11.6		%				$	355,216					12.5		%				$	328,090					11.9		%
Farmland						35,991						1.3		%				39,569						1.4		%				38,493						1.3		%				37,534						1.3		%
1- 4 Family						450,371						16.7		%				471,885						17.0		%				457,263						16.1		%				456,659						16.5		%
Multifamily						165,121						6.1		%				162,243						5.8		%				160,256						5.6		%				165,148						6.0		%
Non-farm non-residential						1,159,842						42.9		%				1,165,552						42.0		%				1,164,117						41.0		%				1,133,516						41.1		%
Total Real Estate						2,141,373						79.2		%				2,162,372						77.8		%				2,175,345						76.5		%				2,120,947						76.8		%
Non-Real Estate:
Agricultural						40,722						1.5		%				47,552						1.7		%				47,852						1.7		%				43,422						1.6		%
Commercial and industrial(1)						257,518						9.5		%				274,441						9.9		%				300,597						10.6		%				293,292						10.6		%
Commercial leases						220,200						8.2		%				248,563						9.0		%				269,428						9.5		%				253,016						9.2		%
Consumer and other						42,267						1.6		%				45,672						1.6		%				47,836						1.7		%				49,458						1.8		%
Total Non-Real Estate						560,707						20.8		%				616,228						22.2		%				665,713						23.5		%				639,188						23.2		%
Total loans before unearned income						2,702,080						100.0		%				2,778,600						100.0		%				2,841,058						100.0		%				2,760,135						100.0		%
Unearned income						(8,300)												(8,949)												(7,708)												(7,905)
Total loans net of unearned income						$	2,693,780											$	2,769,651											$	2,833,350											$	2,752,230

(1) Includes PPP loans fully guaranteed by the SBA of $1.6 million, $2.0 million, $2.3 million, and $2.6 million at December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

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The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated

(in thousands)						December 31, 2024						September 30, 2024						June 30, 2024						March 31, 2024
Nonaccrual loans:
Real Estate:
Construction and land development						$	3,624					$	2,815					$	2,314					$	598
Farmland						2,619						1,189						666						903
1- 4 family						10,053						9,563						7,900						8,157
Multifamily						27,542						537						537						537
Non-farm non-residential						54,171						42,414						41,626						9,733
Total Real Estate						98,009						56,518						53,043						19,928
Non-Real Estate:
Agricultural						1,992						1,968						1,379						1,658
Commercial and industrial						6,762						3,711						4,084						4,691
Commercial leases						1,533						3,334						3,552						1,799
Consumer and other						233						257						267						530
Total Non-Real Estate						10,520						9,270						9,282						8,678
Total nonaccrual loans						108,529						65,788						62,325						28,606
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development						7,394						—						—						—
Farmland						—						—						—						—
1- 4 family						—						77						77						—
Multifamily						—						—						—						—
Non-farm non-residential						4,108						—						122						14,600
Total Real Estate						11,502						77						199						14,600
Non-Real Estate:
Agricultural						—						—						—						58
Commercial and industrial						—						—						—						—
Commercial leases						—						—						—						—
Consumer and other						—						—						—						—
Total Non-Real Estate						—						—						—						58
Total loans 90 days and greater delinquent & accruing						11,502						77						199						14,658
Total non-performing loans						120,031						65,865						62,524						43,264
Real Estate Owned:
Real Estate Loans:
Construction and land development						226						203						201						282
Farmland						—						—						—						—
1- 4 family						3						267						141						312
Multifamily						—						—						—						—
Non-farm non-residential						90						690						690						690
Total Real Estate						319						1,160						1,032						1,284
Non-Real Estate Loans:
Agricultural						—						—						—						—
Commercial and industrial						—						—						—						—
Commercial leases						—						—						—						—
Consumer and other						—						—						—						—
Total Non-Real Estate						—						—						—						—
Total Real Estate Owned						319						1,160						1,032						1,284
Total non-performing assets						$	120,350					$	67,025					$	63,556					$	44,548
Non-performing assets to total loans						4.47		%				2.42		%				2.24		%				1.62		%
Non-performing assets to total assets						3.03		%				1.71		%				1.76		%				1.25		%
Non-performing loans to total loans						4.46		%				2.38		%				2.21		%				1.57		%
Nonaccrual loans to total loans						4.03		%				2.38		%				2.20		%				1.04		%
Allowance for credit losses to nonaccrual loans						32.08		%				50.59		%				48.60		%				109.94		%
Net loan charge-offs to average loans						0.64		%				0.62		%				0.76		%				0.29		%

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The following table presents, for the periods indicated, the major categories of other noninterest expense:

						Three Months Ended December 31,												Years Ended December 31,
(in thousands)						2024						2023						2024						2023
Other noninterest expense:
Legal and professional fees						$	1,363					$	880					$	4,465					$	5,709
Data processing						358						541						1,555						2,100
ATM fees						431						533						1,668						1,804
Marketing and public relations						241						455						1,240						1,927
Taxes - sales, capital, and franchise						347						599						2,237						2,263
Operating supplies						90						114						336						778
Software expense and amortization						1,270						1,514						5,093						5,282
Travel and lodging						86						244						685						1,362
Telephone						46						118						424						382
Amortization of core deposit intangibles						174						174						696						696
Donations						26						21						267						595
Net costs from other real estate and repossessions						294						(86)						827						157
Regulatory assessment						1,583						1,024						4,688						3,136
Other						882						1,102						4,465						4,032
Total other noninterest expense						$	7,191					$	7,233					$	28,646					$	30,223

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Non-GAAP Financial Measures

 

Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures.

 

Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names.

 

The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.

						At December 31,
(in thousands except for share data and %)						2024						2023						2022						2021						2020
Tangible Common Equity
Total shareholders' equity						$	255,049					$	249,631					$	234,991					$	223,889					$	178,591
Adjustments:
Preferred						33,058						33,058						33,058						33,058						—
Goodwill						12,900						12,900						12,900						12,900						12,900
Acquisition intangibles						2,962						3,658						4,355						5,051						5,815
Other intangibles						100						100						—						—						—
Tangible common equity						$	206,029					$	199,915					$	184,678					$	172,880					$	159,876
Common shares outstanding						12,504,717						12,475,424						10,716,796						10,716,796						10,716,796
Book value per common share						$	17.75					$	17.36					$	18.84					$	17.81					$	16.66
Tangible book value per common share						$	16.48					$	16.03					$	17.23					$	16.13					$	14.92
Tangible Assets
Total Assets						$	3,972,728					$	3,552,772					$	3,151,347					$	2,878,120					$	2,473,078
Adjustments:
Goodwill						12,900						12,900						12,900						12,900						12,900
Acquisition intangibles						2,962						3,658						4,355						5,051						5,815
Other intangibles						100						100						—						—						—
Tangible Assets						$	3,956,766					$	3,536,114					$	3,134,092					$	2,860,169					$	2,454,363
Tangible common equity to tangible assets						5.21		%				5.65		%				5.89		%				6.04		%				6.51		%

Cover	Jan. 30, 2025
Document Information [Line Items]
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001408534
Document Type	8-K
Document Period End Date	Jan. 30, 2025
Entity Registrant Name	FIRST GUARANTY BANCSHARES, INC.
Entity Incorporation, State or Country Code	LA
Entity File Number	001-37621
Entity Tax Identification Number	26-0513559
Entity Address, Address Line One	400 East Thomas Street
Entity Address, City or Town	Hammond
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70401
City Area Code	345-7685
City Area Code	(985)
Written Communications	false
Soliciting Material	false
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	FGBI
Security Exchange Name	NASDAQ
Noncumulative Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of 6.75% Series A Fixed-Rate Non-Cumulative perpetual preferred stock)
Trading Symbol	FGBIP
Security Exchange Name	NASDAQ

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