First Guaranty Bancshares : 2nd Quarter Report 2020 web

At A Glance

Bank Officers

Branches ATMs

33 47

Total Assets Deposits

$2.4 Billion $2.1Billion

Total Loans

$1.6 Billion

$5.2 Million

2Q 2020 Earnings (unaudited)

and	86
108counting
Consecutive	Years in
dividends paid	Banking

+

Executive Officers

Alton B. Lewis, Jr.*

President and CEO | Hammond

Eric J. Dosch*

Chief Financial Officer | Hammond

Senior Vice Presidents

Thomas F. Brothers

Director of Internal Audit

Scheila M. Davis

Operations Officer

Mark J. Ducoing

Chief Deposit Officer

Glenn A. Duhon, Sr.

Regional Manager | Abbeville

Ronnie R. Foshee

Regional Manager | Denham Springs

Adam J. Johnston

Regional Manager | North Louisiana

Mikki M. Kelley

Human Resource Department Manager

Jordan M. Lewis

Texas Area President

Ronnie C. Pittman

Special Assets Manager

Darrel D. Ryland

Central LA Area President

Desiree B. Simmons

Loan Administration, Marketing & Training

Evan M. Singer

Regional Manager

Director of Mergers & Acquisitions

J. Richard Stark

Operations

Randy S. Vicknair

Interim Chief Lending Officer

Christy L. Wells

Regional Manager | Hammond

Vice Presidents

Charles L. Baggs

Ashley N. Bell

Betty A. Boney

Brenda A. Briscoe

Cheryl Q. Brumfield

Timothy L. Chesney

Robert W. Clifton, ISO

Louis J. Cusimano

Vikki W. Dupaquier

Ronald W. Edmonds

Denise D. Fletcher

Eric M. Fuller, Controller

Vice Presidents

Shirley P. Jones

JoEllen K. Juhasz, BSA Officer

Michael D. Knighten

Terrie E. McCartney

Jason D. Normand

Steven F. Osman

Tracy D. Perry

Gregory P. Prudhomme

Craig E. Scelfo

Scott B. Schilling

Lisa K. Stoker

John A. Synco

D. Lynn Talley

Michael A. Wiggins

Assistant Vice Presidents

Conrad Arrambide

Evan Baranosky

Darryl P. Boudreaux

Lauryn H. Coburn

Lance S. Davis

Susan M. Desoto

Landa G. Domangue

Vanessa R. Drew

Kevin J. Foster

Christy L. Frierson

Harrison R. Gill

Bonnie J. Griener

Ludrick P. Hildago

Leslie A. Hinzman

Donna S. Hodges

A. Shane Hughes

Keith T. Klein

Mandy P. Lee

Pamela R. Normand

Dev M. Patel

Rahul R. Patel

Niekitsha S. Ridley

Melina West

Officers

Rebecca G. Brown

Calvin P. Ducote

Jeannette N. Ernst

V. Diane Patterson

Kristin M. Williams

PRESORTED FIRST-CLASS MAIL U.S. POSTAGE PAID BATON ROUGE, LA PERMIT NO. 984

2020

2ndQuarter

Report

FIRST GUARANTY BANCSHARES, INC.

Member FDIC

*Officers of First Guaranty Bancshares, Inc. and First Guaranty Bank

fgb.net

A Message to Our Shareholders

The first six months of 2020 brought us into a new world. It is a new world of survival, of business, of banking. Survival in a new world requires bold action, decisive action, and intelligent action.

The Board of Directors of First Guaranty Bank led the Bank on a course which brought, not just survival, but success. Success as defined not only by $5,184,000 in net income for the 3 months ending June 30, 2020 and $9,009,000 over six months ending June 30, 2020 while at the same time increasing our loan loss provision by 28.3%, but, also, taking strong steps to ensure the safety of our communities and our team members.

Immediately after enacting relief loans to assist our customers, employees, and community members through the initial financial stress of the pandemic, the Board acted to secure an additional $100 million in funding to ensure that First Guaranty had the necessary liquidity to meet our customer's demands should they arise. At the time, the Board acted quickly to invest that liquidity in corporate bonds and other securities to ensure that, not only were the borrowed funds earning money, but, that they were creating gains which would bolster our earnings and our capital. With these steps taken, First Guaranty then turned to the Payroll Protection Plan loans to help our business customers survive. First Guaranty extended over $115 million in Payroll Protection Plan loans to businesses in our communities to help ensure their survival.

As a result of the strong, affirmative steps taken, the assets of First Guaranty Bank increased by 15.1% between December 31, 2019 and June 30, 2020 from $2,117,216,000 to $2,436,625,000. Second quarter over second quarter, earnings increased by 61.3% between June 30, 2019 and June 30, 2020 from $3,213,000 for the quarter to $5,184,000 for the quarter. On the six-month period ending on June 30, earnings increased from $6,345,000 in 2019 to $9,009,000 in 2020, an increase of 42%. Earnings for the six-month period ending June 30, 2020 reached $0.92 per share.

At the same time bold financial steps were being taken, First Guaranty Bank moved to provide for safety of its customers and employees. Steps such as dividing crucial management and operations into different locations to reduce the chance of infection and for Business continuity. We also implemented a telephone appointment system and provided screens to further protect employees and customers.

The result of six months of a new world and new challenges is that First Guaranty has continued to progress and move closer to shareholder value enhancement by strong earnings and a fortress balance sheet.

This report would not be complete without acknowledgment of and a bow to our Board of Directors and our staff in, not only performing, but excelling in times of great change and adversity.

Thank you for your support.

Sincerely,

Alton B. Lewis

Chief Executive Officer/President

First Guaranty Bancshares, Inc.

Consolidated Statements of Condition

(in thousands, except share data)

	June 30,
	2020	2019
Assets	(unaudited)
Cash and cash equivalents:
Cash and due from banks	$236,365		$169,648
Federal funds sold	778		519
Cash and cash equivalents	237,143		170,167
Investment securities:
Available for sale, at fair value	450,538		228,745
Held to maturity, at cost (estimated fair value of
$0 and $102,623 respectively)	-		103,183
Investment securities	450,538		331,928
Federal Home Loan Bank stock, at cost	3,336		2,422
Loans held for sale	280		-
Loans, net of unearned income	1,640,723		1,300,553
Less: allowance for loan losses	14,017		10,908
Net loans	1,626,706		1,289,645
Premises and equipment, net	58,680		43,275
Goodwill	13,072		3,472
Intangible assets, net	6,934		3,203
Other real estate, net	4,194		3,734
Accrued interest receivable	16,339		7,055
Other assets	19,403		18,540
Total Assets	$2,436,625		$1,873,441
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	434,306		250,637
Interest-bearing demand	722,301		598,653
Savings	169,862		110,383
Time	794,529		713,270
Total deposits	2,120,998		1,672,943
Short-term advances from Federal Home Loan
Bank	50,000		-
Repurchase agreements	6,569		-
Accrued interest payable	5,377		4,600
Long-term advances from Federal Home Loan Bank	3,443		-
Senior long-term debt	45,470		18,371
Junior subordinated debentures	14,757		14,719
Other liabilities	10,085		3,670
Total Liabilities	2,256,699		1,714,303
Shareholders' Equity
Common stock1:
$1 par value - 100,600,000 authorized shares;
issued 9,741,253 and 9,687,123 shares	9,741		9,687
Surplus	110,836		109,788
Retained earnings	49,175		38,474
Accumulated other comprehensive income (loss)	10,174		1,189
Total Shareholders' Equity	179,926		159,138
Total Liabilities & Shareholders' Equity	$2,436,625		$1,873,441

Consolidated Statements of Income	Consolidated Statements of Income
(in thousands, except share, per share data & percentages)	(in thousands, except share, per share data & percentages)
	For the Three-Month		For the Six-Month
	Periods Ended		Periods Ended
	June 30,		June 20,
	2020	2019		2020	2019
Interest Income:	(unaudited)	Interest Income:	(unaudited)
Loans (including fees)	$22,441		$19,920	Loans (including fees)	$44,901		$38,402
Deposits with other banks	62		953	Deposits with other banks	297		1,589
Securities (including FHLB stock)	2,814		2,565	Securities (including FHLB stock)	5,557		5,422
Federal funds sold	0		1	Federal funds sold	0		1
Total Interest Income	25,317		23,439	Total Interest Income	50,755		45,414
Interest Expense:				Interest Expense:
Demand deposits	1,243		2,831	Demand deposits	3,354		5,642
Savings deposits	32		142	Savings deposits	148		280
Time deposits	4,439		4,356	Time deposits	8,998		8,363
Borrowings	763		408	Borrowings	1,492		834
Total Interest Expense	6,477		7,737	Total Interest Expense	13,992		15,119
Net Interest Income	18,840		15,702	Net Interest Income	36,763		30,295
Less: Provision for loan losses	1,836		1,634	Less: Provision for loan losses	3,081		2,421
Net Interest Income	17,004		14,068	Net Interest Income	33,682		27,874
after Provision for Loan Losses		after Provision for Loan Losses
Noninterest Income:				Noninterest Income:
Service charges, commissions and fees	471		613	Service charges, commissions and fees	1,200		1,221
ATM and debit card fees	806		579	ATM and debit card fees	1,415		1,107
Net gains (losses) on securities	1,355		(14)	Net gains (losses) on securities	1,855		(416)
Net gains on sale of loans	278		53	Net gains on sale of loans	295		64
Other	416		415	Other	987		971
Total Noninterest Income	3,326		1,646	Total Noninterest Income	5,752		2,947
Noninterest Expense:				Noninterest Expense:
Salaries and employee benefits	7,536		6,146	Salaries and employee benefits	14,935		12,108
Occupancy and equipment expense	1,865		1,530	Occupancy and equipment expense	3,694		3,015
Other	4,397		3,986	Other	9,464		7,707
Total Noninterest Expense	13,798		11,662	Total Noninterest Expense	28,093		22,830
Income Before Income Taxes	6,532		4,052	Income Before Income Taxes	11,341		7,991
Less: Provision for income taxes	1,348		839	Less: Provision for income taxes	2,332		1,646
Net Income	$5,184		$3,213	Net Income	9,009		6,345
Per Common Share1:				Per Common Share1:
Earnings	$0.53		$0.33	Earnings	$0.92		$0.65
Cash dividends paid				Cash dividends paid
$0.16		$0.15	$0.32		$0.29
Weighted Average	9,741,253		9,687,123	Book Value Per Common Share	$18.47		$16.43
Common Shares Outstanding		Weighted Average Common Shares
	0.89%		0.68%	9,741,253		9,687,123
Return on Average Assets		Outstanding
Return on Average Common Equity
11.92%		8.22%	Return on Average Assets	0.81%		0.68%
				Return on Average Common Equity
				10.48%		8.28%

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