First Guaranty Bancshares, Inc. · NASDAQ:FGBI
First Guaranty Bancshares — Investor Presentation (June 2016)
30 slides from First Guaranty Bancshares's investor presentation, Jun 2, 2016
Slide 1: First Guaranty Bancshares, Inc. Investor Presentation
First Guaranty Bancshares, Inc. a Investor Presentation June 2016 Financial Information as of March 31, 2016 unless otherwise noted
Slide 2: Disclosures
Disclosures This presentation has been prepared by First Guaranty Bancshares, Inc. (the “Company”) solely for informational purposes based on its own information, as well as information from public sources. This presentation has been prepared to assist interested parties in making their own evaluati
Slide 3: Forward Looking Statements
Forward Looking Statements These slides and the accompanying oral presentation contain forward-looking statements, which can be identified by the use of words Pe ” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume
Slide 4: Forward Looking Statements (cont’d)
Forward Looking Statements (cont’d) our ability to attract and maintain deposits and our success in introducing new financial products; our ability to improve our asset quality even as we increase our commercial real estate and commercial and industrial lending; changes in interest rates generally,
Slide 5: Summary Financial Overview
Summary Financial Overview * Headquartered in Hammond, LA and originally founded in Amite, LA in 1934 * Operates 21 banking facilities primarily located in the Hammond, Baton Rouge, Lafayette, and Shreveport- Bossier City MSAs * 2016Q1 TBV / share of $15.78, 2016Q1 EPS of $0.41 and 2016Q1 annualized
Slide 6: Snapshot (Then and Now) and Corporate Timeline
Dollars in millions Snapshot (Then and Now) Metrics 1993 a1'16 Total Assets: $158.8 $1,469.0 10.5% Net Loans: $103.5 $845.4 9.9% Book Value Per Share’: $3.70 $39.21 10.8% Branches 6 21 Corporate Timeline First Guaranty Announces Announces acquisition of Alton Lewis IPO completed / Bank founded in ac
Slide 7: Historical BV/Share Growth Excluding the Impact of Stock Splits and Stock Dividends
Historical BV/Share Growth Excluding the Impact of Stock Splits and Stock Dividends Historical Book Value/Share Growth $45.00 $40.00 39.21 $35.00 $30.00 RS c $25.00 $20.00 $15.00 $10.00 $5.00 - 3.70 | | | $0.00 l | 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 8: Cash Dividends on Common Stock
Cash Dividends on Common Stock (in Thousands) Cash Dividends on Common Stock 4,247 3,500 | 3,000 2,500 4 2,000 + 1,500 1,000 | 200 oR EERE BEE BEE 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Company filings 7
Slide 9: Insider Shareholder Base
Insider Shareholder Base Percent of insider Name Position | Total Shares (#) Outstanding 9) Marshall T. Reynolds 73 Chairman of the Board 1,655,417 21.8% William K. Hood* 64 Director 985,546 13.0% Edgar R. Smith, III* 51 Director 846,301 11.1% Alton B. Lewis, Jr. 66 Vice Chairman, President & CEO 46
Slide 10: Market Opportunity and Branch Locations
Market Opportunity and Branch Locations Major transportation hub Distribution hub for Wal-Mart and Winn Dixie Home of Southeastern Louisiana University (enrollment 15,400) 2016-2021 projected population growth of 5.09% 2016-2021 projected income growth of 7.34% Baton Rouge is the second largest city
Slide 11: Branch Footprint
Branch Footprint @ First Guaranty (21) * 8 offices (including headquarters) ie 3 + 36.4% deposit market share (Ranked er #1)" ha 7 * Includes all of Tangipahoa Parish = "= tidelond prog Mesa Ae Es sete a ee * — Soffices ea ee d * 1.3% deposit market share (Ranked — al #8) ro Mh Phe ot dhs Brookhaven
Slide 12: Community Involvement
Community Involvement * First Guaranty is a strong contributor to the communities we serve. * Contributes over 2.0% of net earnings to the community. * Contributed $429,000 to our local communities in 2015. * Every employee contributes at least four hours of community service annually. * Inthe first
Slide 13: Products & Services
Products & Services Consumer Loans & Mortgages 1.4 Family Multifamily Customer Offerings Commercial Loans CRE cal Owner Occupied MiBY MyFGB App Interactive Teller Machine
Slide 14: Ponchatoula Branch
Ponchatoula Branch 13
Slide 15: Bossier City Groundbreaking
Bossier City Groundbreaking About Bossier anh e" + Population: 67,4722 * Median age: 31.8 years! + Median Household Income: $47,103? + One of the fastest growing school districts in LA? ae 14
Slide 16: 2015 Highlights
2015 Highlights * Total 2015 Earnings to Common Shareholders of $14,121,000. Increase of 30% from $10,830,000 in 2014. * Completed capital raise in November. Raised net proceeds of $9.3 million. Listed on NASDAQ under symbol FGBI. * Redeemed $39,435,000 in SBLF preferred stock. * Increased loan to d
Slide 17: 2015 Net Income Highlights
2015 Net Income Highlights * Net Income = $14,505,000 * Net Income to Common Shareholders = $14,121,000 * Dividends Paid to Common Shareholders = $4,247,000 * 2015 Earnings Per Common Share = $2.01 * Return on Average Assets: 0.97% * Return on Common Shareholders’ Equity: 12.98% Source: Company fili
Slide 18: 1st Quarter 2016 Highlights
1%* Quarter 2016 Highlights * First Quarter 2016 Net Income of $3,151,000 * Loan growth of $13.2 million. 6.4% CAGR ¢ First Quarter Dividend paid of $0.16 per share * Earnings per common share of $0.41. ¢ Return on Average Assets of 0.86%.* « Return on Average Common Equity of 10.46%* 7 ia v7
Slide 19: Increasing Earnings Power
Increasing Earnings Power $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 so + 2013Y 2014Y 2015Y SHAN SUiay So Net Interest Margin TCE/TA 3.40% 9.00% + saa ‘ rae 8.19% 3.30% 3.26% 8.00% + | 7.00% +} 6.37% 3.20% | 9 ae 6.00% | 5.59% 3.10% 5.00% | 3.00% | 4.00% + | 2.92% 3.00% | 2.90% | i
Slide 20: Loan Portfolio
Loan Portfolio Total Gross Loans ($million) Loan Portfolio (3/31/2016) Consumer & $900 $842 $855 Other, 7.0% paren 2078 $800 $700 $600 $500 $400 $790 q $703 0 t4Family, | ' 15.3% ‘Multifamily, r « 1.3% Agricultural, $200 | 2.7% go — : $300 $100 oui saaY siniey SBiBGL. Total Gross Loans: $854.7 milli
Slide 21: First Guaranty Loan Portfolio Credit Quality
First Guaranty Loan Portfolio Credit Quality NPAs / Assets NCOs / Avg. Loans 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% oan Loss Reserves / Gross Loans Reserves / NPAs 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2.13% a 1.77% = 1.67% —! = 127% = = B 099% a = ez a = = a = BSB B BB BEB 2011 2
Slide 22: Deposits
D) its Deposit Composition at 3/31/16 Individual and Business Deposits’ Time, 45.9% Noninterest- bearing demand, 28.2% Total Deposits: $1,300.7 million Total Deposits: $719.7 million * Expanded lower cost non-maturity deposits year over year. ¢ Reduced size of public funds deposit portfolio. (2) _ I
Slide 23: Investment Portfolio & Asset/Liability
Investment Portfolio & Asset/Liability * First Guaranty has been reducing the percentage of securities as a portion of total assets in recent years and concentrating on higher yielding loans Securities as Percentage of Balance Sheet Loan / Deposit Improvement 46.0% 44.2% 70;0% 44.0% = 9 — maibeg 65.
Slide 24: Strategy and Opportunity
Strategy and Opportunity * Continuing to strengthen the balance sheet by moving more assets into higher yielding loans and reducing securities 65.7% of deposits currently used to fund loans as of March 31, 2016 Investment portfolio is positioned to efficiently fund loan growth Net Interest Margin ha
Slide 25: Strategy and Opportunity (cont’d)
Strategy and Opportunity (cont’d) * First Guaranty is positioned to operate in the most desirable markets in Louisiana — Operates in major MSAs along interstates I-55, I-12, I-10 and I-20 * Leverage existing branch footprint to increase deposit market share — New loans are being priced to encourage
Slide 26: Investing in First Guaranty
Investing in First Guaranty Double digit loan growth since 2011 Earning growth over 20% per year since 2013 Annualized margin expansion of 5.5% between 2014 and 2016Q1 First Guaranty has a long history of TBV growth and has been a consistent dividend payer Chairman has long history of creating share
Slide 27: Appendix
Appendix
Slide 28: Historical Balance Sheets
Historical Balance Sheets (@ollarsin thousands) ‘Assets ‘Cash anddue from banke Federal funds old ‘Cashandcash equivalents Interest-earning time deposits with banks ‘maliabe forsale, atfarvalue Heldtomaturity, at cost Investment securities FederalHomeLoan Banksteck, at cost Loans, held forsale Loans
Slide 29: Historical Income Statements
Historical Income Statements (Dollars in thousands) Year Ended December 31, 2012 2013 Income Statement Interest Income 54,609 55,195 50,886 53,297 36,079 14,420 Interest Expense 15,118 13,120 11,134 9,202 8,608 2,588 Net Interest Income 39,491 42,075 39,752 44,095 AT ATL 11,832 Provision for Loan Lo
Slide 30: Reconciliation of Non GAAP Financial Measures
Reconciliation of Non GAAP Financial Measures Tangible common equity Total stockholders’ equity Adjustments: Series C preferred stock Goodwill Acquisition intangibles ‘Tangible common equity Common shares outstanding Book value per common share Tangible book value per common share Tangible assets To
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