First Guaranty Bancshares (FGBI) Q4 2024 earnings summary

Executive summary

• Total assets grew 11.8% year-over-year to $4.0 billion as of December 31, 2024.

• Net income for 2024 increased 35% year-over-year to $12.4 million, despite a 22.5% decline in Q4 net income compared to Q4 2023.

• Net income for the quarter was $1.0 million, with earnings per common share of $0.03.

• Implemented a new business strategy in July 2024, focusing on reducing loan concentration risk, especially in commercial real estate.

• Reduced noninterest expense and headcount significantly year-over-year.

Financial highlights

• Net interest margin declined by 19 bps to 2.32% in Q4 compared to 2.51% in Q3.

• Net interest income for 2024 was $88.4 million, up from $84.7 million in 2023.

• Allowance for credit losses totaled $34.8 million, or 1.29% of gross loans.

• Efficiency ratio improved to 68.16% in 2024 from 83.62% in 2023.

• Cost of funds increased to 4.42% in 2024 from 3.90% in 2023.

Outlook and guidance

• Forward-looking statements highlight risks from economic conditions, interest rates, competition, and regulatory changes.

• Plans to continue reducing commercial real estate secured loans in 2025.

• Anticipates further reduction in specific nonperforming loan relationships through collateral sales and renewals.