First Guaranty Bancshares (FGBI) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $7.2M, up 169% year-over-year, with EPS of $0.53.

• Total assets reached $3.6B and deposits $3.0B as of June 30, 2024, both up double digits year-over-year.

• Loan portfolio expanded to $2.8B, with 20.4% growth in loan interest income.

• Announced strategic shift: slower asset growth, higher capital, 15% staff reduction, and $12M annual cost savings.

• Sale-leaseback of branches and HQ generated a $13.2M–$13.3M pre-tax gain in Q2 2024.

Financial highlights

• Net interest margin for Q2 2024 was 2.48%, down from 2.58% in Q1 and 2.74% prior year.

• Return on average assets was 0.81% and return on average common equity was 12.16% for Q2 2024.

• Allowance for credit losses was 1.07% of loans at June 30, 2024, down from 1.13% at year-end.

• Provision for credit losses surged to $6.8M in Q2 2024 from $0.5M prior year.

• Book value per share was $17.76 at June 30, 2024, up from $17.36 at year-end.

Outlook and guidance

• Cost savings from staff reductions and other measures expected to total $12M annually, with $2M impact in Q4 2024 and $3M per quarter in 2025.

• Board anticipates maintaining a quarterly dividend of $0.08/share for Q3 and Q4 2024.

• Management highlights strong liquidity resources and continued focus on loan participation and SBA/USDA lending.