First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI),
the holding company for First Guaranty Bank, announced its
unaudited financial results for the quarter ending September
30, 2022.
The real strength of your progress is shown when
you are swimming against the tide. In the third quarter 2022, First
Guaranty Bank showed continued progress and strength by improving
its earnings, asset quality and equity while overcoming interest
rate increases, adversity due to natural disasters, and market
doubts about the economy.
With all of these questions, First Guaranty’s
earnings for the nine months ending September 30th increased from
$1.72 per share in 2021 to $2.05 in 2022 and the earnings for the
three months ending September 30th increased from $0.67 per share
in 2021 to $0.70 in 2022. This performance resulted in you
receiving today, your 117th consecutive quarterly dividend.
For the period from September 30, 2021, until
September 30, 2022, Fed funds interest rates increased from 0.08%
to 3.08%. This is a percentage increase of 3,750%. For that same
period of time, First Guaranty’s total interest expense increased
by only 28%. This management of our deposits allowed us to not only
overcome other adversities of the marketplace; but, to increase our
earnings.
Perhaps the most significant adversity to crop
up was the losses we took on “relief loans.” Over the past seven
years, our areas have been hit with a series of natural disasters
including two floods, a Covid pandemic, several hurricanes, and an
ice storm. For each of these, First Guaranty has quickly stepped
forward and offered “relief loans” to its employees, customers, and
community members to help them get through the sudden extra
expenses and sudden loss of income which comes with these types of
events. First Guaranty Bank sees this as part of its duty as a
community bank. Hurricane Ida hit parts of Louisiana much more
severely than even Katrina. Although the denominations of the
relief loans are relatively small ($5,000), the number of losses
was much greater than any past experience. We were still able to
overcome this adversity and maintain our profitability. Going
forward, we have reviewed the criteria for these relief loans in
order to still assist our communities, but reduce losses
incurred.
The strength is in large part, due to the
continuing growth and strength of our loan portfolio. For the
nine-month period ending September 30, 2022, our total interest
income increased to $98,269,000 from $81,743,000, an increase of
20%. Our loan portfolio increased from $2,073,461,000 at September
30, 2021 to $2,417,327,000, an increase of 17%. Our deposits
increased from $2,544,374,000 at September 30, 2021 to
$2,708,572,000.
So, what does all this mean to you? It means
that your First Guaranty Bancshares, Inc. has grown and gotten
stronger so that it can continue to grow even more profitable while
overcoming “bumps in the road.” It means that our balance sheet has
grown stronger so that we can remain a profitable, income producing
asset, as we go forward.
Our aim is to increase our shareholder value
while continuing to build a fortress balance sheet.
We appreciate your support.
Sincerely,
Alton B. Lewis
President and CEO
First Guaranty, Bancshares, Inc.
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-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.
For full release click
here.
Eric J. Dosch, CFO 985.375.0308
First Guaranty Bancshares (NASDAQ:FGBI)
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