First Quarter March 31, 2024 Financial Overview

First Guaranty Bancshares is a financial holding company headquartered in Louisiana. For the first quarter of 2024, net income was $2.3 million, a 33.4% decrease from $3.5 million in the first quarter of 2023, primarily driven by increased interest expense and provision for loan losses.

Earnings per share decreased 48.1% to $0.14. Total assets were $3.6 billion, up 0.1% from December 2023. Loans increased 0.1% to $2.8 billion while deposits grew 1.8% to $3.1 billion. The net interest margin declined 41 basis points to 2.58%.

Financial Performance

Net interest income decreased $0.4 million year-over-year to $21.9 million, as the higher interest expense outpaced loan growth and improved yields on interest-earning assets. The provision for loan losses rose significantly to $2.3 million from $0.3 million last year. Noninterest income fell $0.4 million to $2.3 million, mainly due to valuation changes in the loan servicing asset. Noninterest expense decreased $1.3 million to $18.9 million, largely attributed to lower personnel costs.

Loan Portfolio

Total loans grew modestly, with increases seen in non-farm residential, multifamily, farmland and agriculture loans funded by originations. These gains were mostly offset by declines in commercial leases, commercial & industrial loans and construction loans from paydowns or conversions to permanent financing. Credit quality metrics remained stable. The allowance for loan losses represented 1.14% of total loans.

Investment Portfolio

The investment portfolio decreased 4.7% to $358.7 million, as the held-to-maturity portfolio expanded slightly while the available-for-sale portfolio contracted due to maturities of U.S. Treasuries. The portfolio has an average life of 11.28 years and duration of 8.93 years.

Deposits and Borrowings

Total deposits rose $54.8 million. Noninterest-bearing demand deposits fell while interest-bearing demand, savings and time deposits increased. Short-term borrowings were reduced to $6.8 million as long-term FHLB advances grew to $155 million. The company has ample liquidity and borrowing capacity.

Capital Position

Shareholders’ equity increased to $250.3 million. Regulatory capital levels remain above well-capitalized minimums. The company is focused on effectively managing interest rate risk while pursuing loan growth opportunities.