First Guaranty Bancshares, Inc. · NASDAQ:FGBI
First Guaranty Bancshares — IPO Roadshow (October 2015)
35 slides from First Guaranty Bancshares's IPO roadshow presentation, Oct 26, 2015
Slide 1: First Guaranty Bancshares, Inc. Investor Presentation
Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-199602 First Guaranty Bancshares, Inc. Investor Presentation October 2015 Financial Information as of June 30, 2015 unless otherwise noted
Slide 2: Offering Disclosures
Offering 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
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 such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “w
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 gener
Slide 5: Terms of Proposed Offering
Terms of Proposed Offering Issuer: First Guaranty Bancshares, Inc. Offering Size: 750,000 shares Offering Structure: 100% Primary Overallotment: 15% Lock-Up: 180 days Proposed Exchange / Ticker: NASDAQ / “FGBI” Use of Proceeds: To support growth in the Bank’s loan portfolio, including the possibilit
Slide 6: Summary Financial Overview
Summary Financial Overview 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 • 2015Q2 TBV / share of $16.35, YTD EPS of $1.12 and 2015Q2 annua
Slide 7: Investment Highlights
Investment Highlights 5th largest independent bank in Louisiana out of 133 banks, with a 81 year-old history • Strong and improving financial performance – YTD ROAA of 0.95%¹ – YTD ROATCE of 14.10%¹ – YTD efficiency ratio of 56.69% – Net interest margin has expanded from 2.92% for the fiscal year 20
Slide 8: Investment Highlights
Investment Highlights 5th largest independent bank in Louisiana out of 133 banks, with a 81 year-old history • Substantial opportunity to improve profitability and continue growth – Loans/depositscurrentlystandat only 60.1%,with investmentsecuritiesandcashcomprising44.3%of the total assets – First G
Slide 9: History
History Overview • Modern history begins in 1993 with the recapitalization of First Guaranty by a group of investors led by Marshall T. Reynolds Dollars in millions Snapshot (Then and Now) Metrics 1993 Q2'15 CAGR Total Assets: $158.8 $1,512.7 11.1% Net Loans: $103.5 $800.9 10.0% Book Value Per Share
Slide 10: Market Opportunity
Market Opportunity Hammond MSA • Major transportation hub • Distribution hub for Wal-Mart and Winn Dixie • Home of Southeastern Louisiana University (enrollment ~15,000) • 2015-2020 projected population growth of 5.04% • 2015-2020 projected income growth of 6.58% Baton Rouge MSA • Baton Rouge is the
Slide 11: Attractive Demographics and Presence
Attractive Demographics and Presence 2016-2021 Projected Population Growth by MSA 2016-2021 Household Net Income Growth by MSA 6.00% 14.00% 9.5%Above 3.4%Above 5.09% Nat. Avg. 11.77% Nat. Avg. 5.00% 12.00% 10.81% 4.41% 4.04% 10.00% 4.00% 3.69% 3.31% 8.03% 7.77% 8.00% 7.34% 3.00% 6.00% 2.00% 4.20% 4.
Slide 12: Branch Footprint
Branch Footprint Hammond MSA First Guaranty (21) • 8 offices (including headquarters) • 36.4% deposit market share (Ranked #1)¹ • Includes all of Tangipahoa Parish Baton Rouge MSA • 5 offices • 1.3% deposit market share (Ranked #8)¹ Shreveport MSA • 3 offices • 2.2% deposit market share (Ranked #13)
Slide 13: 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 $40.00 $37.18 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $3.70 $0.00 1993¹ 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 14: Management Team
Management Team • Chairman of the Bank since 1996 and the Company since inception in 2007 • ~40 years of Banking experience Marshall T. Reynolds • CEO of Champion Industries, Inc. (printing) Chairman of the Board • ServesasChairmanof PremierFinancialBancorp,Inc.(WestVirginia) and asDirector of Citiz
Slide 15: Insider Shareholder Base
Insider Shareholder Base Position Percent of Total Shares Outstanding Insider Name Age Title (#) (%) Marshall T. Reynolds¹ 78 Chairman of the Board 1,504,017 23.9 William K. Hood² 64 Director 895,536 14.2 Edgar R. Smith III³ 51 Director 768,712 12.2 4 Alton B. Lewis Jr. 66 Vice Chairman, President &
Slide 16: Recent Developments (Sep. 30, 2015)
Recent Developments (Sep. 30, 2015) • Balance Sheet – Total assets $1.4B – Gross loans $857M – Investment securities $518M – Total deposits $1.3B – Common equity $109M • Income Statement – Net income of $3.7M to $3.9M or $0.60 per share – Pre-tax gain of $2.2M from the sale of common shares from a c
Slide 17: Financial Performance
Financial Performance Total Assets ($million) Total Gross Loans ($million) $1,600 $850 $1,519 $810 $1,513 $800 $790 $1,500 $1,436 $1,407 $750 $1,400 $1,354 $703 $700 $1,300 $650 $630 $1,200 $576 $1,133 $600 $573 $1,100 $550 $1,000 $500 2010 2011 2012 2013 2014 2015Q2 2010 2011 2012 2013 2014 2015Q2
Slide 18: Solid Profitability Metrics
Solid Profitability Metrics ROAA ROATCE 1.00% 0.95% 16.00% 0.89% 14.10% 0.90% 0.77% 14.00% 0.80% 11.70% 12.10% 0.65% 0.65% 12.00% 0.70% 9.99% 0.60% 10.00% 7.97% 0.50% 8.00% 0.40% 6.00% 0.30% 4.00% 0.20% 0.10% 2.00% 0.00% 0.00% 2011 2012 2013 2014 2015YTD¹ 2011 2012 2013 2014 2015YTD¹ Net Interest Ma
Slide 19: Increasing Earnings Power
Increasing Earnings Power Net Income ($000) Net Income Available for Common ($000) $16,000 $14,632 $16,000 $14,235 $14,000 $14,000 $12,059 $12,000 $11,224 $12,000 $10,830 $10,087 $10,000 $9,146 $10,000 $8,033 $8,433 $8,000 $8,000 $6,057 $6,000 $6,000 $4,000 $4,000 $2,000 $2,000 $0 $0 2011 2012 2013
Slide 20: Consistent Dividends… While Increasing TBV
Consistent Dividends… While Increasing TBV Total Annual Dividend History TBV Per Share $4,500.00 $18.00 $16.35 $4,000.00 $16.00 $15.34 $15.13¹ $14.38 $3,500.00 $14.00 $13.12 $12.72 $3,000.00 $12.01 $12.00 $2,500.00 $10.00 $2,000.00 $8.00 $1,500.00 $6.00 $1,000.00 $4.00 • 88 consecutive quarters of d
Slide 21: Loan Portfolio
Loan Portfolio Loan Portfolio (12/31/2011) Loan Portfolio (6/30/2015) Consumer Consumer Farmland & Other & Other 1.8% 4.1% Farmland 5.1% C&D C&I C&D Agriculture 2.0% 6.8% 11.9% 13.7% 3.0% C&I 1-4 Family 1-4 Family 27.1% 15.7% 15.6% Multifamily Non-farm Non-farm 1.8% non- non- residential Multifamily
Slide 22: Syndicated Loan Portfolio
Syndicated Loan Portfolio • First Guaranty developed its syndicated loan program in 2007 • FirstGuarantyhasneverexperienceda lossin itssyndicatedloanportfolio • $115.1M or 14.2% of the total gross loan portfolio is comprised of syndicated loans in 20 relationships of which 12 are Shared National Cre
Slide 23: First Guaranty Loan Portfolio Credit Quality
First Guaranty Loan Portfolio Credit Quality NPAs / Assets NCOs / Avg. Loans 2.50% 1.80% 1.65% 2.13% 1.60% 2.00% 1.40% 1.67% 1.20% 1.50% 1.27% 1.00% 1.10% 0.99% 0.80% 1.00% 0.60% 0.45% 0.45% 0.38% 0.50% 0.40% 0.15% 0.20% 0.00% 0.00% 2011 2012 2013 2014 2015Q2 2011 2012 2013 2014 2015YTD¹ Loan Loss R
Slide 24: Deposits
Deposits Deposit Composition at 6/30/15 Individual and Business Deposits¹ Savings Savings 5.7% 8.5% Time Time Interest- Interest- 49.7% 47.8% bearing bearing demand demand 14.9% Noninterest- 31.1% Noninterest- bearing bearing demand demand 26.9% 15.4% Total Deposits: $1,347.3 million Total Deposits:
Slide 25: Public Funds Business Line Overview
Public Funds Business Line Overview • First Guaranty has an expertise in managing public funds deposits • First Guaranty has $600 million of public funds deposits outstanding (44.5% of total deposits) at June 30, 2015 • Majority of deposits are under contractual relationships. First Guaranty seeks t
Slide 26: Public Funds
Public Funds Public Funds Deposit Composition Weighted Avg. Rate of Public Funds Deposits 0.79% 0.75% Savings 0.74% 1.9% 0.69% Time 0.64% Interest- 46.0% 0.59% 0.59% bearing 0.53% demand 0.54% 0.52% 51.4% 0.49% Noninterest- 0.44% bearing 2012 2013 2014 2015 YTD demand 0.7% • Weighted average rate of
Slide 27: 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 • First Guaranty has been actively seeking to reduce the average life of the portfolio to prepare for a risin
Slide 28: Capital Ratios
Capital Ratios TCE / TA Total Equity/ Total Assets 8.00% 9.80% 9.64% 6.82% 9.60% 9.53% 7.00% 6.45% 6.37% 6.12% 9.35% 6.00% 5.59% 9.40% 9.19% 9.20% 5.00% 9.00% 4.00% 8.80% 3.00% 8.59% 8.60% 2.00% 8.40% 1.00% 8.20% 0.00% 8.00% 2011 2012 2013 2014 2015Q2 2011 2012 2013 2014 2015Q2 Tier 1 Risk-Based Cap
Slide 29: Strategy and Opportunity
Strategy and Opportunity • Balance sheet is well-positioned for loan growth and margin expansion – Only 60.1% of deposits currently used to fund loans as of June 30, 2015 – Investment portfolio is positioned to efficiently and seamlessly fund loan growth • High quality loan growth is a focus and pri
Slide 30: 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 31: Investing in First Guaranty
Investing in First Guaranty • 5th largest independent bank in Louisiana out of 133 banks, with a 81 year-old history • Double digit loan growth since 2011 • Earning growth over 20% per year since 2013 • Annualized margin expansion of 5.5% between Q2 ‘13 and Q2 ‘15 • First Guaranty has a long history
Slide 32: Appendix
Appendix
Slide 33: Historical Balance Sheets
Historical Balance Sheets (Dollars in thousands) At December 31, 2011 2012 2013 2014 June 30, 2015 Assets Cash and due from banks 43,812 83,342 60,819 44,365 16,939 Federal funds sold 68,630 2,891 665 210 340 Cash and cash equivalents 112,442 86,233 61,484 44,575 17,279 Interest-earning time deposit
Slide 34: Historical Income Statements
Historical Income Statements (Dollars in thousands) Year Ended December 31, YTD 2011 2012 2013 2014 6/30/15 Income Statement Interest Income 54,609 55,195 50,886 53,297 28,114 Interest Expense 15,118 13,120 11,134 9,202 4,432 Net Interest Income 39,491 42,075 39,752 44,095 23,682 Provision for Loan
Slide 35: Reconciliation of Non GAAP Financial Measures
Reconciliation of Non GAAP Financial Measures At December 31, YTD June 30, 2011 2012 2013 2014 2015 Tangible common equity Total stockholders' equity $126,602 $134,181 $123,405 $139,583 $145,752 Adjustments: Series C preferred stock (39,435) (39,435) (39,435) (39,435) (39,435) Goodwill (1,999) (1,99
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