First Guaranty Bancshares, Inc. · NASDAQ:FGBI
First Guaranty Bancshares — IPO Roadshow (April 2021)
32 slides from First Guaranty Bancshares's IPO roadshow presentation, Apr 21, 2021
Slide 1: Investor Presentation: Preferred Equity Offering
M ARCH 2020 D ISCUSSION M ATERIALS STRICTLY CONFIDENTIAL Materials Prepared For: [B ANK N AME ] Financial Institutions Group INVESTOR PRESENTATION PREFERRED EQUITY OFFERING April 2021 NASDAQ: FGBI www.fgb.net Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333 -
Slide 2: Certain Important Information
2 CERTAIN IMPORTANT INFORMATION CERTAIN IMPORTANT INFORMATION This presentation has been prepared by First Guaranty Bancshares, Inc . (the “Company ” or “FGBI”) solely for informational purposes based on its own information, as well as information from public sources . This presentation is a summary
Slide 3: Caution Regarding Forward Looking Statements
3 CERTAIN IMPORTANT INFORMATION CAUTION REGARDING FORWARD LOOKING STATEMENTS This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended (the “Exchange Act”
Slide 4: Terms of Proposed Offering
4 ISSUER First Guaranty Bancshares, Inc. (NASDAQ: FGBI) in Hammond, Louisiana SECURITY Non - Cumulative Perpetual Preferred Stock, Series A (Depository Shares 1/40) LIQUIDATION PREFERENCE $25.00 per depository share TERM Perpetual ISSUANCE TYPE SEC Registered DIVIDEND PAYMENT DATES Dividends will be
Slide 5: Corporate Overview
CORPORATE OVERVIEW
Slide 6: First Guaranty Bancshares, Inc. at a Glance
6 FIRST GUARANTY BANCSHARES, INC. ¹Non - GAAP measure. See “Certain Important Information – Non - GAAP Financial Measures” on slide 3 and “Non - GAAP Reconciliation” on slide 32 for additional information Note: Market data as of April 19, 2021; Financial information as of and for the year ended Dece
Slide 7: Investment Highlights
7 INVESTMENT HIGHLIGHTS Note: Financial information as of December 31, 2020 Source : Company documents ▪ $299.6 million in cash equivalents ▪ Net charge - offs / a verage l oans of 0.08% in 2020; average of 0.44% since 1993 ▪ Significant reduction in loan deferrals related to the pandemic over the l
Slide 8: Experienced Leadership
8 EXPERIENCED LEADERSHIP Alton B. Lewis Jr. Chief Executive Officer & President Eric J. Dosch Chief Financial Officer ▪ Chief Executive Officer and President of First Guaranty Bank and also its holding company First Guaranty Bancshares, Inc. since October 2009 ▪ President at First Guaranty Bancshare
Slide 9: Board of Directors
9 BOARD OF DIRECTORS Source : Company documents MARSHALL T. REYNOLDS Chairman of the Board of Directors ▪ Chairman of the Board, Champion Industries WILLIAM K. HOOD ▪ President, Hood Automotive Group ALTON B. LEWIS JR. ▪ Bio on Experienced Leadership Slide JACK ROSSI ▪ CPA, Consultant EDGAR R. SMITH
Slide 10: Insider Shareholder Base
10 INSIDER SHAREHOLDER BASE Insider Name Age Title Shares Owned Percent of Total Shares Outstanding (%) Marshall T. Reynolds 84 Chairman of the Board 1,741,046 17.9% William K. Hood* 70 Board Director 1,923,711 19.7% Edgar R. Smith, III* 57 Board Director 2,025,276 20.8% Alton B. Lewis, Jr. 72 Vice
Slide 11: Growing Stockholder Value
11 $0.00 $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 $21.00 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ($000) Total Dividend TBV per Share GROWING STOCKHOLD
Slide 12: Growth Milestones
12 Year Milestone 1934 First Guaranty Bank is founded in Amite, LA 1993 Investor group led by Marshall Reynolds invests $3.6M as part of recapitalization 1999 Acquisition of First Southwest Bank 2001 Acquisition of Woodlands Bancorp, Inc. 2007 Acquisition of Homestead Bancorp, Inc.; First Guaranty B
Slide 13: Branch Footprint
13 BRANCH FOOTPRINT Source : S&P Global Market Intelligence
Slide 14: Key Markets
14 KEY MARKETS Source : S&P Global Market Intelligence, Forbes, Wall Street Journal, Louisiana State University, Barksdale Air Force, Southeastern Louisiana University , S hreveport Business Bureau Hammond MSA Baton Rouge MSA Shreveport MSA Dallas MSA ▪ Major transportation hub ▪ Distribution hub fo
Slide 15: Recent Acquisitive Success
15 RECENT ACQUISITIVE SUCCESS ¹Financial data as of most recent available quarter prior to close, ended 3/31/2017 2 Financial data as of most recent available quarter prior to close, ended 9 /30/2019 Source: S&P Global Market Intelligence PREMIER BANCSHARES (1) UNION BANCSHARES (2) HEADQUARTERS Dall
Slide 16: Business Highlights
BUSINESS HIGHLIGHTS
Slide 17: 2020 Financial Highlights
17 2020 FINANCIAL HIGHLIGHTS ▪ Total assets increased by 16.8% to $2.5 billion ▪ Total loans increased by 20.9% to $1.8 billion ▪ Net income of $20.3 million ▪ Earnings per share of $2.09 ▪ Return on average assets of 0.87% ▪ Return on average tangible common equity of 13.08% 1 ▪ Funded more than 90
Slide 18: Recent Developments – 1st Quarter 2021
18 RECENT DEVELOPMENTS – 1 ST QUARTER 2021 ¹Non - GAAP measure. See “Certain Important Information – Non - GAAP Financial Measures” on slide 3 and “Non - GAAP Reconciliation” on slide 31 for additional information Source : Company documents Dollars in thousands, except per share data March 31, 2021
Slide 19: Financial Trends
19 $949 $1,149 $1,225 $1,525 $1,844 $0 $400 $800 $1,200 $1,600 $2,000 2016Y 2017Y 2018Y 2019Y 2020Y $1,501 $1,750 $1,817 $2,117 $2,473 $0 $600 $1,200 $1,800 $2,400 $3,000 2016Y 2017Y 2018Y 2019Y 2020Y FINANCIAL TRENDS Source : Company documents TOTAL ASSETS ($M) TOTAL GROSS LOANS ($M) TOTAL DEPOSITS
Slide 20: Earnings Power
20 3.39% 3.33% 3.41% 3.41% 3.35% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 2016Y 2017Y 2018Y 2019Y 2020Y $14,093 $11,751 $14,213 $14,241 $20,318 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2016Y 2017Y 2018Y 2019Y 2020Y 0.97% 0.71% 0.82% 0.76% 0.87% 0.00% 0.25% 0.50% 0.75% 1.00% 2016Y 2017Y 2018Y 2019Y 2020Y
Slide 21: Loan Portfolio
21 Commercial & Industrial 19.1% Non - Farm Non - Residential 44.6% Residential Real Estate 17.2% Consumer & Other 8.0% Agriculture & Farm 3.0% C&D 8.2% LOAN PORTFOLIO Source : Company documents ▪ Loan yield of 5.46% in 2020 ▪ Loan growth of 20.9% during 2020 including PPP loans, primarily driven by
Slide 22: Pandemic Response
22 PANDEMIC RESPONSE Source: Company documents ▪ Originated over 900 loans totaling $111.1 million in the SBA’s Paycheck Protection Program (“PPP”) under the CARES Act ▪ Fee income of $2.2 million was realized in 2020 with an additional $1.2 million deferred as of December 31, 2020 ▪ Loan deferrals
Slide 23: Allowance for Loan Losses
24 ALLOWANCE FOR LOAN LOSSES Source: Company documents ▪ FGBI increased allocations in 2020 for potential COVID - 19 related losses and other risks ▪ Largest provision allocation associated with hospitality and hotel industry loans ▪ Continued to monitor loans acquired from the Union acquisition in
Slide 24: Investment Portfolio
25 U.S. Treasuries 1.3% U.S. Government Agencies 71.1% Corporate Notes and Bonds 15.3% Municipal Bonds 11.8% MBS 0.5% INVESTMENT PORTFOLIO Note: The Company converted unrealized gains in securities portfolio to realized gains in 4Q20 in response to the uncertainty of the COVID - 19 pandemic Source :
Slide 25: Deposit Portfolio
26 HIGHLIGHTS ▪ Weighted average rate was 1.1% in 2020 compared to 1.7% in 2019 ▪ Noninterest - bearing deposits increased by $85.5 million to $411.4 million in 2020, representing 19.0% of total deposits at year end ▪ Total time deposits decreased from 40.8% of total deposits at year end 2019 to 33.
Slide 26: Offering Impact
OFFERING IMPACT
Slide 27: Illustrative Impact of the Proposed Offering: Dividend Coverage
28 ILLUSTRATIVE IMPACT OF THE PROPOSED OFFERING Note: Assumes $30.0 million gross offering at 6.75%; assumes issuance on January 1, 2020 Note: A ll offering assumptions are for illustrative purposes only Source : S&P Global Market Intelligence PREFERRED DIVIDEND COVERAGE PRO FORMA 2020Y 2020Y INTERE
Slide 28: Illustrative Impact of the Proposed Offering: Pro Forma Capital Ratios
29 ILLUSTRATIVE IMPACT OF THE PROPOSED OFFERING Note: Assumes $30.0 million gross offering at 6.75% Note: Assumes offering has no impact on average assets and risk based assets Note : All offering assumptions are for illustrative purposes only; See “Caution Regarding Forward Looking Statements ” Not
Slide 29: Appendix
APPENDIX
Slide 30: Non-GAAP Reconciliation
31 NON - GAAP RECONCILIATION Source : Company documents Tangible common equity, tangible assets, and tangible book value per share are non - GAAP financial measures calculated using GAAP amounts . Tangible common equity is calculated by excluding the balance of goodwill and the core deposit intangib
Slide 31: Non-GAAP Reconciliation
32 NON - GAAP RECONCILIATION Dollars in thousands 2016 2017 2018 2019 2020 Average Common Equity $126,036 $136,817 $142,373 $158,400 $178,905 LESS: Average Intangibles 3,135 5,340 6,445 8,029 19,217 Average Tangible common equity (non-GAAP) $122,901 $131,477 $135,928 $150,371 $159,688 A Net Income A
Slide 32: fgb.net
fgb.net 888.375.3093 NASDAQ: FGBI
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