First Guaranty Bancshares : Announces Fourth Quarter 2021 Results - Form 8-K
January 26, 2022 at 04:20 pm
Share
First Guaranty Bancshares, Inc. Announces Fourth Quarter 2021 Results
Hammond, Louisiana, January 26, 2022 - 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, 2021.
The fourth quarter of 2021 continued First Guaranty Bancshares, Inc. eight consecutive quarters of strong earnings and outstanding performance. With net earnings for the quarter of $8,049,000 ($7,467,000 after preferred stock dividend payments) First Guaranty Bancshares, Inc.'s earnings for the year 2021 totaled $27,297,000, $25,913,000 after payment of preferred stock dividends. Net income for the fourth quarter represented a 31% increase over the fourth quarter of 2020 and a 34% increase for the year 2021 over the year 2020. These strong results were the result of an increase in total interest income year over year of 11% combined with a decrease in total interest expense of approximately 14%.
Asset Quality also increased significantly as the Texas ratio decreased to 6.56% as of December 31, 2021, compared to 11.65% as of December 31, 2020.
The loan portfolio ended the year at $2,159,359,000 compared to $1,844,135,000 as of December 31, 2020. This represents an increase in the loan portfolio of year over year of 17%.
Total shareholders' equity ended the year at $223,889,000 compared to $178,591,000 as of December 31, 2020.
On December 31, 2021, First Guaranty Bancshares, Inc. paid to its shareholders the 114th consecutive quarterly cash dividend. This cash dividend followed a 10% stock dividend which was awarded to all First Guaranty Bancshares, Inc's shareholders on December 17, 2021. The result was a strong cash dividend and a value enhancement to First Guaranty Bancshares, Inc.
While 2021 brought great financial benefit to the shareholders for First Guaranty Bancshares, Inc., we continued to build and strengthen our Bank system. In the fourth quarter 2021, we were awarded and established loan production and deposit production offices in Vanceburg, Kentucky and Bridgeport, West Virginia. The addition of strong management and loan teams in these areas in November 2021 led to immediate loan production and loan income in these areas. As of December 31, 2021, First Guaranty Bancshares, Inc. had $64,000,000 in loans, from the new areas, booked and earning interest. An additional $81,000,000 are in the pipeline, either approved or in the approval process.
We continue to explore new opportunities for development of and expansion of our branch operations in Texas. With a strong loan pipeline, additional opportunities for reduction of interest expense, and improvements in our processes and procedures, we expect the success of First Guaranty Bancshares, Inc. to continue and to increase. The quality of our efforts have been recognized by Newsweek and Lending Tree as we have been named the Best Small Bank in the United States for the year of 2022 as a follow-up to the same title in 2021. We will continue to build a strong, fortress balance sheet and we will continue to enhance shareholder value.
Thank you for your continued support.
Sincerely,
Alton B. Lewis
President/CEO
First Guaranty, Bancshares, Inc.
About First Guaranty Bancshares, Inc.
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-six 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.
Certain statements contained herein are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in our SEC filings, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which First Guaranty operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
First Guaranty wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. First Guaranty wishes to advise readers that the factors listed above could affect First Guaranty's financial performance and could cause First Guaranty's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. First Guaranty does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)
December 31, 2021
December 31, 2020
Assets
Cash and cash equivalents:
Cash and due from banks
$
261,749
$
298,903
Federal funds sold
183
702
Cash and cash equivalents
261,932
299,605
Investment securities:
Available for sale, at fair value
210,620
238,548
Held to maturity, at cost (estimated fair value of $150,585 and $0 respectively)
153,536
-
Investment securities
364,156
238,548
Federal Home Loan Bank stock, at cost
1,359
3,351
Loans held for sale
-
-
Loans, net of unearned income
2,159,359
1,844,135
Less: allowance for loan losses
24,029
24,518
Net loans
2,135,330
1,819,617
Premises and equipment, net
58,637
59,892
Goodwill
12,900
12,900
Intangible assets, net
5,922
6,587
Other real estate, net
2,072
2,240
Accrued interest receivable
12,047
11,933
Other assets
23,765
18,405
Total Assets
$
2,878,120
$
2,473,078
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand
$
532,578
$
411,416
Interest-bearing demand
1,275,544
860,394
Savings
201,699
168,879
Time
586,671
725,629
Total deposits
2,596,492
2,166,318
Short-term borrowings
-
50,000
Repurchase agreements
6,439
6,121
Accrued interest payable
4,480
5,292
Long-term advances from Federal Home Loan Bank
3,208
3,366
Senior long-term debt
25,170
42,366
Junior subordinated debentures
14,818
14,777
Other liabilities
3,624
6,247
Total Liabilities
2,654,231
2,294,487
Shareholders' Equity
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized
Non-cumulative perpetual; 34,500 and 0 shares issued and outstanding, respectively
33,058
-
Common stock, $1 par value - 100,600,000 shares authorized and 10,716,796 shares issued1
10,717
10,717
Surplus
130,093
130,093
Retained earnings
56,654
37,134
Accumulated other comprehensive (loss) income
(6,633)
647
Total Shareholders' Equity
223,889
178,591
Total Liabilities and Shareholders' Equity
$
2,878,120
$
2,473,078
See Notes to Consolidated Financial Statements
1All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.
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)
2021
2020
2021
2020
Interest Income:
Loans (including fees)
$
27,724
$
23,388
$
103,353
$
90,808
Deposits with other banks
106
56
316
404
Securities (including FHLB stock)
2,344
1,309
8,248
9,471
Federal funds sold
-
1
-
1
Total Interest Income
30,174
24,754
111,917
100,684
Interest Expense:
Demand deposits
2,015
1,444
7,237
6,089
Savings deposits
52
58
204
268
Time deposits
2,963
3,771
12,893
16,908
Borrowings
407
616
1,965
2,752
Total Interest Expense
5,437
5,889
22,299
26,017
Net Interest Income
24,737
18,865
89,618
74,667
Less: Provision for loan losses
243
10,251
2,055
14,877
Net Interest Income after Provision for Loan Losses
24,494
8,614
87,563
59,790
Noninterest Income:
Service charges, commissions and fees
765
719
2,699
2,571
ATM and debit card fees
913
789
3,562
3,022
Net (losses) gains on securities
(162)
12,160
714
14,791
Net gains on sale of loans
507
80
942
1,054
Other
751
730
2,843
2,342
Total Noninterest Income
2,774
14,478
10,760
23,780
Total Business Revenue, Net of Provision for Loan Losses
27,268
23,092
98,323
83,570
Noninterest Expense:
Salaries and employee benefits
8,501
7,411
32,179
29,600
Occupancy and equipment expense
1,935
2,093
8,681
7,709
Other
6,668
5,918
23,008
20,724
Total Noninterest Expense
17,104
15,422
63,868
58,033
Income Before Income Taxes
10,164
7,670
34,455
25,537
Less: Provision for income taxes
2,115
1,543
7,158
5,219
Net Income
8,049
6,127
27,297
20,318
Less: Preferred stock dividends
(582)
-
(1,384)
-
Net Income Available to Common Shareholders
$
7,467
$
6,127
$
25,913
$
20,318
Per Common Share:1
Earnings
$
0.70
$
0.57
$
2.42
$
1.90
Cash dividends paid
$
0.16
$
0.15
$
0.60
$
0.58
Weighted Average Common Shares Outstanding
10,716,796
10,716,796
10,716,796
10,716,796
See Notes to Consolidated Financial Statements
1All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three Months Ended December 31, 2021
Three Months Ended December 31, 2020
(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
$
281,028
$
106
0.15
%
$
231,305
$
56
0.10
%
Securities (including FHLB stock)
373,514
2,344
2.49
%
263,164
1,309
1.98
%
Federal funds sold
191
-
-
%
673
1
0.59
%
Loans held for sale
21
-
-
%
154
1
2.87
%
Loans, net of unearned income
2,056,487
27,724
5.35
%
1,808,892
23,387
5.14
%
Total interest-earning assets
2,711,241
$
30,174
4.42
%
2,304,188
$
24,754
4.27
%
Noninterest-earning assets:
Cash and due from banks
17,896
13,124
Premises and equipment, net
58,849
59,067
Other assets
28,936
88,284
Total Assets
$
2,816,922
$
2,464,663
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits
$
1,210,596
$
2,015
0.66
%
$
810,807
$
1,444
0.71
%
Savings deposits
203,447
52
0.10
%
174,942
58
0.13
%
Time deposits
593,171
2,963
1.98
%
733,570
3,771
2.05
%
Borrowings
50,313
407
3.21
%
118,581
616
2.07
%
Total interest-bearing liabilities
2,057,527
$
5,437
1.05
%
1,837,900
$
5,889
1.27
%
Noninterest-bearing liabilities:
Demand deposits
523,067
428,781
Other
12,252
13,279
Total Liabilities
2,592,846
2,279,960
Shareholders' equity
224,076
184,703
Total Liabilities and Shareholders' Equity
$
2,816,922
$
2,464,663
Net interest income
$
24,737
$
18,865
Net interest rate spread (1)
3.37
%
3.00
%
Net interest-earning assets (2)
$
653,714
$
466,288
Net interest margin (3), (4)
3.62
%
3.26
%
Average interest-earning assets to interest-bearing liabilities
131.77
%
125.37
%
(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 3.62% and 3.26% for the above periods ended December 31, 2021 and 2020 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, 2021 and 2020 respectively.
(5)Annualized.
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Year Ended December 31, 2021
Year Ended December 31, 2020
(in thousands except for %)
Average Balance
Interest
Yield/Rate
Average Balance
Interest
Yield/Rate
Assets
Interest-earning assets:
Interest-earning deposits with banks
$
258,916
$
316
0.12
%
$
182,339
$
404
0.22
%
Securities (including FHLB stock)
332,566
8,248
2.48
%
380,991
9,471
2.49
%
Federal funds sold
1,052
-
-
%
678
1
0.08
%
Loans held for sale
16
-
-
%
377
21
5.56
%
Loans, net of unearned income
2,014,095
103,353
5.13
%
1,662,875
90,787
5.46
%
Total interest-earning assets
2,606,645
$
111,917
4.29
%
2,227,260
$
100,684
4.52
%
Noninterest-earning assets:
Cash and due from banks
15,077
12,955
Premises and equipment, net
59,739
58,411
Other assets
26,551
49,859
Total Assets
$
2,708,012
$
2,348,485
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits
$
1,082,922
$
7,237
0.67
%
$
722,433
$
6,089
0.84
%
Savings deposits
191,967
204
0.11
%
163,332
268
0.16
%
Time deposits
655,025
12,893
1.97
%
767,075
16,908
2.20
%
Borrowings
82,565
1,965
2.38
%
110,292
2,752
2.50
%
Total interest-bearing liabilities
2,012,479
$
22,299
1.11
%
1,763,132
$
26,017
1.48
%
Noninterest-bearing liabilities:
Demand deposits
477,802
393,734
Other
10,619
12,714
Total Liabilities
2,500,900
2,169,580
Shareholders' equity
207,112
178,905
Total Liabilities and Shareholders' Equity
$
2,708,012
$
2,348,485
Net interest income
$
89,618
$
74,667
Net interest rate spread (1)
3.18
%
3.04
%
Net interest-earning assets (2)
$
594,166
$
464,128
Net interest margin (3), (4)
3.44
%
3.35
%
Average interest-earning assets to interest-bearing liabilities
129.52
%
126.32
%
(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 3.44% and 3.36% for the above periods ended December 31, 2021 and 2020 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, 2021 and 2020 respectively.
The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021:
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
(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
$
174,334
8.1
%
$
165,090
7.9
%
$
191,795
9.3
%
$
141,858
7.2
%
Farmland
31,810
1.5
%
28,008
1.4
%
28,157
1.4
%
26,410
1.3
%
1- 4 Family
288,347
13.3
%
287,668
13.8
%
278,252
13.4
%
273,071
13.9
%
Multifamily
65,848
3.0
%
102,478
4.9
%
104,461
5.0
%
110,955
5.6
%
Non-farm non-residential
886,407
40.9
%
850,614
40.9
%
830,686
40.0
%
814,003
41.3
%
Total Real Estate
1,446,746
66.8
%
1,433,858
68.9
%
1,433,351
69.1
%
1,366,297
69.3
%
Non-Real Estate:
Agricultural
26,747
1.2
%
36,215
1.7
%
34,123
1.6
%
26,468
1.3
%
Commercial and industrial(1)
390,405
18.0
%
343,428
16.5
%
358,831
17.3
%
330,332
16.8
%
Consumer and other(2)
302,150
14.0
%
267,683
12.9
%
248,157
12.0
%
248,814
12.6
%
Total Non-Real Estate
719,302
33.2
%
647,326
31.1
%
641,111
30.9
%
605,614
30.7
%
Total loans before unearned income
2,166,048
100.0
%
2,081,184
100.0
%
2,074,462
100.0
%
1,971,911
100.0
%
Unearned income
(6,689)
(7,723)
(8,054)
(5,479)
Total loans net of unearned income
$
2,159,359
$
2,073,461
$
2,066,408
$
1,966,432
(1) Includes PPP loans fully guaranteed by the SBA of $35.4 million at December 31, 2021.
(2) Includes equipment financing leases of $254.0 million at December 31, 2021.
The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands)
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Nonaccrual loans:
Real Estate:
Construction and land development
$
530
$
623
$
623
$
621
Farmland
787
791
791
840
1- 4 family
2,861
3,034
2,157
2,244
Multifamily
-
-
-
-
Non-farm non-residential
8,733
9,592
7,512
7,846
Total Real Estate
12,911
14,040
11,083
11,551
Non-Real Estate:
Agricultural
2,302
2,416
2,545
3,508
Commercial and industrial
699
616
890
663
Consumer and other
803
679
549
387
Total Non-Real Estate
3,804
3,711
3,984
4,558
Total nonaccrual loans
16,715
17,751
15,067
16,109
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development
246
-
1,471
880
Farmland
-
-
-
-
1- 4 family
514
1,340
3,462
4,908
Multifamily
162
-
-
-
Non-farm non-residential
281
739
2,431
2,240
Total Real Estate
1,203
2,079
7,364
8,028
Non-Real Estate:
Agricultural
-
-
150
186
Commercial and industrial
23
521
578
781
Consumer and other
19
-
141
132
Total Non-Real Estate
42
521
869
1,099
Total loans 90 days and greater delinquent & accruing
1,245
2,600
8,233
9,127
Total non-performing loans
17,960
20,351
23,300
25,236
Real Estate Owned:
Real Estate Loans:
Construction and land development
-
-
-
90
Farmland
-
-
-
-
1- 4 family
817
1,043
357
119
Multifamily
-
-
-
-
Non-farm non-residential
1,255
1,488
1,663
1,765
Total Real Estate
2,072
2,531
2,020
1,974
Non-Real Estate Loans:
Agricultural
-
-
-
-
Commercial and industrial
-
-
-
-
Consumer and other
-
-
-
-
Total Non-Real Estate
-
-
-
-
Total Real Estate Owned
2,072
2,531
2,020
1,974
Total non-performing assets
$
20,032
$
22,882
$
25,320
$
27,210
Non-performing assets to total loans
0.93
%
1.10
%
1.23
%
1.38
%
Non-performing assets to total assets
0.70
%
0.81
%
0.92
%
1.06
%
Non-performing loans to total loans
0.83
%
0.98
%
1.13
%
1.28
%
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 %)
2021
2020
2019
2018
2017
Tangible Common Equity
Total shareholders' equity
$
223,889
$
178,591
$
166,035
$
147,284
$
143,983
Adjustments:
Preferred
33,058
-
-
-
-
Goodwill
12,900
12,900
12,942
3,472
3,472
Acquisition intangibles
5,051
5,815
6,527
2,704
3,249
Tangible common equity
$
172,880
$
159,876
$
146,566
$
141,108
$
137,262
Common shares outstanding1
10,716,796
10,716,796
10,716,796
10,657,245
10,657,245
Book value per common share1
$
17.81
$
16.66
$
15.49
$
13.82
$
13.51
Tangible book value per common share1
$
16.13
$
14.92
$
13.68
$
13.24
$
12.88
Tangible Assets
Total Assets
$
2,878,120
$
2,473,078
$
2,117,216
$
1,817,211
$
1,750,430
Adjustments:
Goodwill
12,900
12,900
12,942
3,472
3,472
Acquisition intangibles
5,051
5,815
6,527
2,704
3,249
Tangible Assets
$
2,860,169
$
2,454,363
$
2,097,747
$
1,811,035
$
1,743,709
Tangible common equity to tangible assets
6.04
%
6.51
%
6.99
%
7.79
%
7.87
%
1All share amounts have been restated to reflect the ten percent stock dividend paid December 17, 2021 to shareholders of record as of December 15, 2021.
Attachments
Original Link
Original Document
Permalink
Disclaimer
First Guaranty Bancshares Inc. published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 21:19:23 UTC.
First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank (the Bank). The Bank offers a range of financial services and focuses on building client relationships and providing customer service. The Bank operates about 36 locations throughout Louisiana, Texas, Kentucky, and West Virginia. The Banks principal business consists of attracting deposits from the general public and local municipalities in its market areas and then investing those deposits. The Bank also generates funds from operations, borrowings in lending and investing in securities. The Bank serves the credit needs of its customer base, including commercial real estate loans, commercial and industrial loans, commercial leases, and others. The Bank offers a variety of deposit accounts to consumers, small businesses, and municipalities, including personal and business checking and savings accounts, time deposits and money market accounts. In addition, the Bank offers a range of consumer services.