First Guaranty Bancshares, Inc. reported significant financial growth in its third quarter and year-to-date results for 2024, reflecting a robust performance compared to the previous fiscal period. As of September 30, 2024, total assets increased by $371.2 million, reaching $3.9 billion, a 10.4% rise from $3.6 billion at the end of 2023. Total deposits surged by $420.8 million, or 14.0%, to $3.4 billion, driven by a notable increase in time deposits, which rose by 57.5% to $1.3 billion.

The company’s net income for the third quarter of 2024 was $1.9 million, an 8.7% increase from $1.8 million in Q3 2023. For the nine months ended September 30, 2024, net income reached $11.4 million, up 44.5% from $7.9 million in the same period of 2023. Earnings per common share also improved, rising to $0.11 for Q3 2024 from $0.10 in Q3 2023, and to $0.78 for the nine months ended September 30, 2024, compared to $0.56 in the prior year.

Interest income for the third quarter increased by 20.6% to $57.4 million, while net interest income rose to $22.7 million, up from $20.4 million in the same quarter of 2023. The growth in interest income was attributed to an expanded loan portfolio and higher market rates. However, interest expense also increased significantly, rising by 27.8% to $34.7 million for the third quarter, reflecting a higher volume of interest-bearing liabilities.

The provision for credit losses saw a substantial increase, totaling $4.9 million for Q3 2024, compared to $0.6 million in Q3 2023. This rise was linked to changes in the loan portfolio and increased charge-offs, which amounted to $13.7 million for the first nine months of 2024, up from $2.0 million in the same period of 2023.

Strategically, First Guaranty executed a sale-leaseback transaction in June 2024, selling two branches and part of its headquarters for approximately $14.7 million, resulting in a pre-tax gain of $13.3 million. This transaction is expected to enhance liquidity and reduce operational costs.

As of September 30, 2024, the allowance for credit losses was $33.3 million, representing 1.20% of total loans, up from $30.9 million at the end of 2023. The increase in nonaccrual loans, which rose to $65.8 million from $25.2 million, was primarily due to a single commercial real estate relationship totaling $37.0 million.

Overall, First Guaranty Bancshares demonstrated strong financial performance and strategic growth initiatives, positioning itself favorably in the current market environment.