First Guaranty Bancshares, Inc. (FGBI)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 EPS was $0.03 and net income was $1.0 million; net interest margin compressed to 2.32% while noninterest expense fell meaningfully QoQ to $17.9 million as management “continued with its new business strategy” to lower costs .
• Credit costs and problem loan formation were the key headwinds: provision for credit losses rose to $6.0 million and nonaccrual loans increased to $108.5 million, driving NPLs to total loans up to 4.46% (vs 2.38% in Q3) .
• Balance sheet repositioning is underway: loans declined to $2.69B, available-for-sale securities increased to $281.1M, and deposits rose to $3.48B (+15.5% YoY), materially increasing time deposit funding .
• Strategic guidance focused on further reducing CRE concentration in 2025; FTEs were lowered by 19% YoY (399 vs 491), supporting the OPEX trajectory; common dividend was $0.01 in Q4 (preferred dividend policy reaffirmed in Jan-2025 8-K) .
• Wall Street consensus estimates from S&P Global were unavailable at the time of this analysis (access constraints); therefore, estimate comparisons are not presented.*

What Went Well and What Went Wrong

What Went Well

• “First Guaranty continued with its new business strategy” and cut noninterest expense to $17.9M, down $1.8M QoQ and $2.7M vs Q2 2024; salaries/benefits fell to $7.9M, down $2.2M QoQ and $2.6M vs Q2 .
• Deposit growth and liquidity strengthened: total deposits were $3.5B (+$467.2M, +15.5% YoY); cash and cash equivalents ended at $564.2M, up sharply YoY .
• Net interest income increased YoY: Q4 2024 NII was $22.6M vs $21.0M in Q4 2023, despite ongoing NIM pressure .

What Went Wrong

• Credit quality deterioration: nonaccrual loans rose to $108.5M (from $65.8M in Q3), with concentration in non-farm non-residential and multifamily; NPLs/total loans climbed to 4.46% .
• Elevated credit costs: provision for credit losses grew to $6.0M in Q4 (vs $2.2M in Q4 2023), and net charge-offs were $18.6M for 2024 vs $6.0M in 2023 .
• Margin compression: NIM fell to 2.32% in Q4 (down 21 bps YoY); loans as % of average interest-earning assets decreased to 77.4% (vs 82.8% in 2023) .

Financial Results

Quarterly progression (QoQ)

Note: S&P Global consensus estimates were unavailable at the time of this analysis due to access constraints; comparisons vs estimates are therefore not shown.*

Year-over-year (Q4 2024 vs Q4 2023)

Segment/Portfolio Breakdown (Loans)

KPIs

Guidance Changes

Note: No formal quantitative guidance provided for revenue/NIM/OpEx ranges; strategic direction emphasized on CRE de-risking and expense discipline .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available; themes derived from company press releases and 8-Ks.

Management Commentary

• “First Guaranty continued with its new business strategy previously announced on July 23, 2024.” Focused expense reductions and portfolio repositioning (noninterest expense down to $17.9M; salaries/benefits $7.9M) .
• “First Guaranty anticipates continuing to reduce commercial real estate secured loans in 2025.” CRE reduction is a stated priority following declines in real estate-secured loans and commitments .
• Portfolio and credit detail: six largest non-performing relationships comprise 76% of total NPLs, including $28.7M assisted living (LA) and $26.0M multifamily (TX) placed on nonaccrual in Q4 .
• Loan workout progress: retail shopping center relationship liquidations in Q4 reduced balances to $23.0M, with further reductions expected in 2025 .
• Staffing and efficiency: FTEs reduced to 399 at Dec 31, 2024 (–19% YoY), consistent with cost actions .

Q&A Highlights

No Q4 2024 earnings call transcript was found in company filings; Q&A themes are therefore unavailable [ListDocuments: earnings-call-transcript returned none].

Estimates Context

• S&P Global consensus estimates were unavailable at the time of this analysis due to access constraints. As a result, comparisons vs Wall Street consensus for Q4 2024 EPS and revenue are not presented.*

Where estimate comparisons are critical to positioning, we expect analysts to adjust models for higher credit costs (provision), lower NIM, and reduced loan balances given CRE de-risking .

Key Takeaways for Investors

• Credit quality is the dominant swing factor: nonaccruals rose to $108.5M and NPL ratio to 4.46%; expect near-term volatility around credit outcomes and workout progress on concentrated relationships .
• Margin pressure persists: NIM at 2.32% reflects higher funding costs and a shift toward time deposits; watch deposit repricing and securities reinvestment yields .
• Expense actions are tangible: noninterest expense fell to $17.9M; FTEs down 19% YoY, providing an offset to margin compression over time .
• CRE de-risking is the core 2025 strategy: continued reductions in CRE and unfunded construction commitments should slowly improve concentration risk but may weigh on near-term loan growth .
• Liquidity is strong: deposits up 15.5% YoY and cash/ equivalents elevated, providing flexibility for balance sheet repositioning and credit management .
• Dividend policy more conservative on common ($0.01) while preferred distributions remain steady; indicates capital preservation amid credit normalization .
• Trading implications: near-term stock moves likely tied to updates on major NPL relationships, provision trajectory, and NIM stabilization; medium-term thesis hinges on successful CRE de-risking, sustained expense control, and rebuilding earnings power .

*Estimates note: S&P Global consensus estimates were not retrievable at the time of writing due to access limits.