EXHIBIT 99.1
JULY 31, 2020
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
 
First Guaranty Bancshares, Inc. Announces Second Quarter 2020 Results

Hammond, Louisiana,
July 31, 2020 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter and year ending June 30, 2020.
 
First Guaranty Bancshares results for the second quarter of 2020 showed strong earnings in the first half of 2020.

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
President and CEO
First Guaranty, Bancshares, Inc.
 
About First Guaranty
First Guaranty, a Louisiana-based company, has approximately $2.4 billion in assets as of June 30, 2020 and provides personalized commercial banking services through 33 banking facilities located across Louisiana and Texas. 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.




FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)June 30, 2020December 31, 2019
Assets  
Cash and cash equivalents:  
Cash and due from banks$236,365  $66,511  
Federal funds sold778  914  
Cash and cash equivalents237,143  67,425  
Investment securities:  
Available for sale, at fair value450,538  339,937  
Held to maturity, at cost (estimated fair value of $0 and $86,817 respectively)—  86,579  
Investment securities450,538  426,516  
Federal Home Loan Bank stock, at cost3,336  3,308  
Loans held for sale280  —  
Loans, net of unearned income1,640,723  1,525,490  
Less: allowance for loan losses14,017  10,929  
Net loans1,626,706  1,514,561  
Premises and equipment, net58,680  56,464  
Goodwill13,072  12,942  
Intangible assets, net6,934  7,166  
Other real estate, net4,194  4,879  
Accrued interest receivable16,339  8,412  
Other assets19,403  15,543  
Total Assets$2,436,625  $2,117,216  
Liabilities and Shareholders' Equity  
Deposits:  
Noninterest-bearing demand$434,306  $325,888  
Interest-bearing demand722,301  635,942  
Savings169,862  135,156  
Time794,529  756,027  
Total deposits2,120,998  1,853,013  
Short-term advances from Federal Home Loan Bank50,000  13,079  
Repurchase agreements6,569  6,840  
Accrued interest payable5,377  6,047  
Long-term advances from Federal Home Loan Bank3,443  3,533  
Senior long-term debt45,470  48,558  
Junior subordinated debentures14,757  14,737  
Other liabilities10,085  5,374  
Total Liabilities2,256,699  1,951,181  
Shareholders' Equity  
Common stock:  
$1 par value - authorized 100,600,000 shares; issued 9,741,253 shares9,741  9,741  
Surplus110,836  110,836  
Retained earnings49,175  43,283  
Accumulated other comprehensive income10,174  2,175  
Total Shareholders' Equity179,926  166,035  
Total Liabilities and Shareholders' Equity$2,436,625  $2,117,216  
See Notes to Consolidated Financial Statements  






FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED STATEMENTS OF INCOME (unaudited)        
 Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, except share data)2020201920202019
Interest Income:   
Loans (including fees)$22,441  $19,920  $44,901  $38,402  
Deposits with other banks62  953  297  1,589  
Securities (including FHLB stock)2,814  2,565  5,557  5,422  
Federal funds sold—   —   
Total Interest Income25,317  23,439  50,755  45,414  
Interest Expense:    
Demand deposits1,243  2,831  3,354  5,642  
Savings deposits32  142  148  280  
Time deposits4,439  4,356  8,998  8,363  
Borrowings763  408  1,492  834  
Total Interest Expense6,477  7,737  13,992  15,119  
Net Interest Income18,840  15,702  36,763  30,295  
Less: Provision for loan losses1,836  1,634  3,081  2,421  
Net Interest Income after Provision for Loan Losses17,004  14,068  33,682  27,874  
Noninterest Income:    
Service charges, commissions and fees471  613  1,200  1,221  
ATM and debit card fees806  579  1,415  1,107  
Net gains (losses) on securities1,355  (14) 1,855  (416) 
Net gains on sale of loans278  53  295  64  
Other416  415  987  971  
Total Noninterest Income3,326  1,646  5,752  2,947  
Noninterest Expense:    
Salaries and employee benefits7,536  6,146  14,935  12,108  
Occupancy and equipment expense1,865  1,530  3,694  3,015  
Other4,397  3,986  9,464  7,707  
Total Noninterest Expense13,798  11,662  28,093  22,830  
Income Before Income Taxes6,532  4,052  11,341  7,991  
Less: Provision for income taxes1,348  839  2,332  1,646  
Net Income$5,184  $3,213  $9,009  $6,345  
Per Common Share:1
    
Earnings$0.53  $0.33  $0.92  $0.65  
Cash dividends paid $0.16  $0.15  $0.32  $0.29  
Weighted Average Common Shares Outstanding9,741,253  9,687,123  9,741,253  9,687,123  
 See Notes to Consolidated Financial Statements                      
1 All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019.






FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three Months Ended June 30, 2020Three Months Ended June 30, 2019
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets
Interest-earning assets:
Interest-earning deposits with banks$196,317  $62  0.13 %$164,965  $953  2.32 %
Securities (including FHLB stock)428,681  2,814  2.64 %360,936  2,565  2.85 %
Federal funds sold546  —  — %406   0.26 %
Loans held for sale1,034  14  5.38 %829  16  7.74 %
Loans, net of unearned income1,617,920  22,427  5.58 %1,294,249  19,904  6.17 %
Total interest-earning assets2,244,498  $25,317  4.54 %1,821,385  $23,439  5.16 %
Noninterest-earning assets:
Cash and due from banks13,391  8,904  
Premises and equipment, net58,516  42,652  
Other assets38,316  14,069  
Total Assets$2,354,721  $1,887,010  
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits$687,978  $1,243  0.73 %$595,243  $2,831  1.91 %
Savings deposits158,987  32  0.08 %112,566  142  0.51 %
Time deposits794,256  4,439  2.23 %725,350  4,356  2.41 %
Borrowings121,813  763  2.62 %33,794  408  4.84 %
Total interest-bearing liabilities1,763,034  $6,477  1.48 %1,466,953  $7,737  2.12 %
Noninterest-bearing liabilities:
Demand deposits403,620  254,252  
Other13,140  8,977  
Total Liabilities2,179,794  1,730,182  
Shareholders' equity174,927  156,828  
Total Liabilities and Shareholders' Equity$2,354,721  $1,887,010  
Net interest income$18,840  $15,702  
Net interest rate spread (1)3.06 %3.04 %
Net interest-earning assets (2)$481,464  $354,432  
Net interest margin (3), (4)3.38 %3.46 %
Average interest-earning assets to interest-bearing liabilities127.31 %124.16 %
(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
(4) The tax adjusted net interest margin was 3.38% and 3.47% for the above periods ended June 30, 2020 and 2019 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2020 and 2019 respectively.
(5) Annualized.




              FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Six Months Ended June 30, 2020Six Months Ended June 30, 2019
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$144,561  $297  0.41 %$141,333  $1,589  2.27 %
Securities (including FHLB stock)421,199  5,557  2.65 %381,806  5,422  2.86 %
Federal funds sold559  —  — %461   0.25 %
Loans held for sale 628  17  5.46 %624  24  7.76 %
Loans, net of unearned income1,566,246  44,884  5.76 %1,285,338  38,378  6.02 %
Total interest-earning assets2,133,193  $50,755  4.78 %1,809,562  $45,414  5.06 %
Noninterest-earning assets:      
Cash and due from banks12,886  9,009    
Premises and equipment, net57,829  41,800    
Other assets36,046  13,197    
Total Assets$2,239,954    $1,873,568    
Liabilities and Shareholders' Equity      
Interest-bearing liabilities:      
Demand deposits$667,705  $3,354  1.01 %$599,720  $5,642  1.90 %
Savings deposits152,005  148  0.20 %111,355  280  0.51 %
Time deposits776,531  8,998  2.33 %716,138  8,363  2.36 %
Borrowings100,929  1,492  2.97 %34,150  834  4.93 %
Total interest-bearing liabilities1,697,170  $13,992  1.66 %1,461,363  $15,119  2.09 %
Noninterest-bearing liabilities:      
Demand deposits357,891  250,594    
Other11,981  7,880    
Total Liabilities2,067,042    1,719,837    
Shareholders' equity172,912  153,731    
Total Liabilities and Shareholders' Equity$2,239,954    $1,873,568    
Net interest income $36,763    $30,295   
Net interest rate spread (1)  3.12 %  2.97 %
Net interest-earning assets (2)$436,023    $348,199    
Net interest margin (3), (4)  3.47 %3.38 %
Average interest-earning assets to interest-bearing liabilities  125.69 %123.83 %
(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
(3)Net interest margin represents net interest income divided by average total interest-earning assets.
(4)The tax adjusted net interest margin was 3.47% and 3.39% for the above periods ended June 30, 2020 and 2019 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2020 and 2019 respectively.
(5)Annualized.






The following table summarizes the components of First Guaranty's loan portfolio as of June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019:
 June 30, 2020March 31, 2020December 31, 2019September 30, 2019
(in thousands except for %)BalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of Category
Real Estate:    
Construction & land development$128,051  7.8 %$125,201  8.1 %$172,247  11.3 %$157,980  12.2 %
Farmland25,691  1.6 %21,840  1.4 %22,741  1.5 %16,484  1.3 %
1- 4 Family283,162  17.2 %286,157  18.5 %289,635  18.9 %187,772  14.5 %
Multifamily25,997  1.6 %27,948  1.8 %23,973  1.6 %22,459  1.7 %
Non-farm non-residential671,969  40.8 %654,081  42.3 %616,536  40.3 %585,177  45.1 %
Total Real Estate1,134,870  69.0 %1,115,227  72.1 %1,125,132  73.6 %969,872  74.8 %
Non-Real Estate:
Agricultural33,884  2.0 %25,320  1.6 %26,710  1.8 %29,193  2.3 %
Commercial and industrial366,413  22.3 %298,185  19.3 %268,256  17.5 %213,993  16.5 %
Consumer and other111,293  6.7 %108,922  7.0 %108,868  7.1 %83,029  6.4 %
Total Non-Real Estate511,590  31.0 %432,427  27.9 %403,834  26.4 %326,215  25.2 %
Total loans before unearned income1,646,460  100.0 %1,547,654  100.0 %1,528,966  100.0 %1,296,087  100.0 %
Unearned income(5,737)  (3,522) (3,476) (3,176) 
Total loans net of unearned income$1,640,723   $1,544,132  $1,525,490  $1,292,911  




The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands)June 30, 2020March 31, 2020December 31, 2019September 30, 2019
Nonaccrual loans:  
Real Estate:  
Construction and land development$968  $901  $381  $390  
Farmland886  855  1,274  1,337  
1- 4 family5,744  4,347  2,759  1,975  
Multifamily—  —  —  —  
Non-farm non-residential8,082  4,638  4,646  745  
Total Real Estate15,680  10,741  9,060  4,447  
Non-Real Estate:
Agricultural4,895  4,480  4,800  4,842  
Commercial and industrial908  412  327  454  
Consumer and other271  273  216  1,155  
Total Non-Real Estate6,074  5,165  5,343  6,451  
Total nonaccrual loans21,754  15,906  14,403  10,898  
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development311  414  48  —  
Farmland53  —  —  —  
1- 4 family2,088  1,203  923   
Multifamily—  —  —  —  
Non-farm non-residential5,219  5,056  1,603  184  
Total Real Estate7,671  6,673  2,574  186  
Non-Real Estate:
Agricultural332  46  —  —  
Commercial and industrial763  139  15  24  
Consumer and other63  58  50  128  
Total Non-Real Estate1,158  243  65  152  
Total loans 90 days and greater delinquent & accruing8,829  6,916  2,639  338  
Total non-performing loans30,583  22,822  17,042  11,236  
Real Estate Owned:
Real Estate Loans:
Construction and land development606  669  669  213  
Farmland—  —  —  —  
1- 4 family147  205  559  117  
Multifamily—  —  —  —  
Non-farm non-residential3,441  3,511  3,651  3,040  
Total Real Estate4,194  4,385  4,879  3,370  
Non-Real Estate Loans:
Agricultural—  —  —  —  
Commercial and industrial—  —  —  —  
Consumer and other—  —  —  —  
Total Non-Real Estate—  —  —  —  
Total Real Estate Owned4,194  4,385  4,879  3,370  
Total non-performing assets$34,777  $27,207  $21,921  $14,606  
Non-performing assets to total loans2.12 %1.76 %1.44 %1.13 %
Non-performing assets to total assets1.43 %1.21 %1.04 %0.81 %
Non-performing loans to total loans1.86 %1.48 %1.12 %0.87 %




Non-GAAP Financial Measures
 
Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures.
 
Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names.
 
The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
 At June 30,At December 31,
(in thousands except for share data and %)20202019201820172016
Tangible Common Equity  
Total shareholders' equity$179,926  $166,035  $147,284  $143,983  $124,349  
Adjustments:
Goodwill13,072  12,942  3,472  3,472  1,999  
Acquisition intangibles6,171  6,527  2,704  3,249  978  
Tangible common equity$160,683  $146,566  $141,108  $137,262  $121,372  
Common shares outstanding1
9,741,253  9,741,253  9,687,123  9,687,123  9,205,635  
Book value per common share1
$18.47  $17.04  $15.20  $14.86  $13.51  
Tangible book value per common share1
$16.50  $15.05  $14.57  $14.17  $13.18  
Tangible Assets
Total Assets$2,436,625  $2,117,216  $1,817,211  $1,750,430  $1,500,946  
Adjustments:
Goodwill13,072  12,942  3,472  3,472  1,999  
Acquisition intangibles6,171  6,527  2,704  3,249  978  
Tangible Assets$2,417,382  $2,097,747  $1,811,035  $1,743,709  $1,497,969  
Tangible common equity to tangible assets6.65 %6.99 %7.79 %7.87 %8.10 %
1 All share amounts have been restated to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019.


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