First Guaranty Bancshares, Inc. · NASDAQ:FGBI
First Guaranty Bancshares — Investor Presentation (April 2017)
32 slides from First Guaranty Bancshares's investor presentation, Apr 27, 2017
Slide 1: First Guaranty Bancshares, Inc. Investor Presentation
First Guaranty Bancshares, Inc. a Investor Presentation April 2017 Financial Information as of December 31, 2016 or March 31, 2017 unless otherwise noted
Slide 2: Disclosures
Disclosures This presentation has been prepared by First Guaranty Bancshares, Inc. ("First Guaranty”) 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 evalu
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 generally, i
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 * 12/31/2016 TBV / share of $15.95, 2016 EPS of $1.85 and dividend of $0.6
Slide 6: Modern history begins in 1993 with recapitalization; Snapshot Then and Now
. 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 Total Assets: $158.8 $1,572.3 10.4% Net Loans: $103.5 $982.8 10.2% Book Value Per Share’ $3.70? $40.37 10.5% Branches 6
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 40.37 $40.00 $35.00 $30.00 $25.00 + oe $20.00 $15.00 $10.00 $5.00 | 3.70 | WI $0.00 ul | o 1993 1994 1995 1996 1997 1998 1999 2000 2001 ‘2002 2003 2004 2005 2006 2007 2008 20
Slide 8: Cash Dividends on Common Stock
Cash Dividends on Common Stock (in Thousands) Cash nds on Common Stock $6,000 $5,000 4,870 $4,000 “alll 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 € al Source: Company filings
Slide 9: Insider Shareholder Base
Insider Shareholder Base ¢ First Guaranty has strong insider ownership. * Over 42% of our shares are owned by insiders. Marshall T. Reynolds Chairman of the Board William K. Hood Director Edgar R. Smith, III Director Glenda B. Glover Director Alton B. Lewis, Jr. Vice Chairman, President & CEO Eric J
Slide 10: Community Involvement
Community Involvement He First Guaranty is a strong contributor to the communities we serve. Contributes over 2.0% of net earnings to the community. Contributed $415,000 to our local communities in 2016. community | giving back working together Every employee contributes at least four hours of commu
Slide 11: 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
Slide 12: Market Opportunity and Branch Locations
Market Opportunity and Branch Locations + Diversified economy; employment services, government, education, and wholesale / retail trade + Barksdale Air Force Base is largest employer with 10,284 employees + Contains Las Vegas-style gaming industry + 2016-2021 projected income growth of 4.20% * $44,6
Slide 13: Branch Footprint
Branch Footprint + Boffices (including headquarters) le pees 4 fn =! + 35.3% deposit market share (Ranked wal #1)' igpent Shreveport >} Ruston Hel Sy be smi — ema etee = Includes all of Tangipahoa Parish = © Sige 7 hie aah wacked edd a0 + 5S offices frm + 1.2% deposit market share (Ranked aa cy re #
Slide 14: Local market demographics
* Population: 67,472? + Median age: 31.8 years! + Median Household Income: $47,103* * One of the fastest growing school jam ae districts in LA? Bee Mg iat chooks. org
Slide 15: Products & Services
Products & Services Consumer Loans & Mortgages 1-4 Family Multifamily Customer Offerings Commercial Loans CRE cal Owner Occupied MiBy ) Interactive Teller Machine MyEGB App ]
Slide 16: Post Merger Branch Footprint
Post Merger Branch Footprint FY \ LiL A Fe y (e ~ r . é ad a > 4 t ‘ , 4 ATA Seril_4 ws 15
Slide 17: Premier Bancshares Acquisition
Premier Bancshares Acquisition ¢ Expansion into strong and rapidly growing markets SBA Lending in both Texas and Louisiana ¢ Logical extension of Northwest LA market ¢ Loan and Deposit diversification ¢ Acquisition is subject to regulatory and shareholder approval i
Slide 18: 2016 Highlights
2016 Highlights * Total 2016 Earnings to Common Shareholders of $14,093,000. * Increased loan to deposit ratio to 72% at 12/31/2016. Continued to transition from securities into higher yielding loans. ¢ Net interest margin expanded to 3.39% for 2016 compared to 3.26% for 2015. * Loans grew by 12.8%
Slide 19: 2016 Net Income Highlights
2016 Net Income Highlights * Net Income = $14,093,000 * Dividends Paid to Common Shareholders = $4,870,000 * 2016 Earnings Per Common Share = $1.85 ¢ Return on Average Assets: 0.97% ¢ Return on Common Shareholders’ Equity: 11.18%
Slide 20: 1st Quarter 2017 Highlights
1st Quarter 2017 Highlights * Net Income = $3,251,000 (Net of pre-tax merger expenses of $281,000). * Dividends Paid to Common Shareholders = $1,217,000 * Loans grew 4.8% or $45.5 million in the First Quarter * Loan interest income improved to $12.2 million compared to $10.8 million in the First Qua
Slide 21: Increasing Earnings Power
Increasing Earnings Power Net Income Av: $16,000 $14,000 $12,000 $10,000 + $8,000 + $6,000 $4,000 $2,000 $o 4 Net Interest Margin CE/TA 3.45% 3.40% 3.35% 3.20% 3.25% 3.20% 3.15% 3.10% 3.05% 3.00% 2.95% holders ($000) Loan Interest Income ($000) $46,000 $45,495 $1421 $14,093 eae $44,000 $10,830 $43,0
Slide 22: Loan Portfolio
Loan Portfolio $1,200 Consumer & das Other, 6.9% $1,000 $949 © Farmland, | 8 $842 2.3% $800 + . $600 \ 1-4 Family, 14.0% > jmuttifamily, 1.3% 2400 Agricultural, —— | = $200 = _ 2014 2015 2016 201701 = Total Gross Loans: $994.4 million Yield on Loans: 5.06% Loan / Deposit Improvement 80.0% 5 esidenti
Slide 23: First Guaranty Loan Portfolio Credit Quality
First Guaranty Loan Portfolio Credit Quality 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 1.27% 1.51% 1.48% 1.35% 0.99% 2013 2014 2015 2016 201701 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 0.45% 0.44% 0.38% 0.23% 2013 2014 2015 2016 Loan Loss Reserves / Gross Loans Reserves / NPAs 1.60% 1.40% 1.2
Slide 24: Deposits
Deposits Deposit Composition at 3/31/17 Deposit Composition at 12/31/16 _Noninterest- _Noninterest- bearing bearing ~*~ >” Savings 4 7.1% Total Deposits: $1,402.3 million Total Deposits: $1,326.2 million * Continue to grow non-maturity deposits. * Continue to transition public funds deposits into lo
Slide 25: 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 Secu s as Percentage of Balance Sheet Loan / Deposit Improvemen 45.0% 42.2% % 80.0% 71.6% 70.9% 40.0% 37.4 7
Slide 26: Strategy and Opportunity
Strategy and Opportunity * Continuing to strengthen the balance sheet by moving more assets into higher yielding loans and reducing securities — 71% of deposits currently used to fund loans as of March 31, 2017 Loans grew by $45.5MM during the 1* Quarter Investment portfolio is positioned to efficie
Slide 27: 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 * New expansion into Texas market * Focus on Strategic partnerships while continuing to grow core bank ig
Slide 28: Investing in First Guaranty
Investing in First Guaranty ¢ Double digit loan growth since 2011 ¢ Earnings growth over 12% per year since 2014 ¢ First Guaranty has a long history of TBV growth and has been a consistent dividend payer ¢ First Guaranty has long history of creating shareholder value a
Slide 29: Appendix
Appendix
Slide 30: Historical Balance Sheets
Historical Balance Sheets Assets cath and dus from banks Federal funce sold (Cash and cash equivalents Intarestearning te deposte with banks ‘Avalable forza, atfarvalue Held to maturity, at cost Investment securities Federal Home Loan Bane stack st cost Loans, hele forsale bans, nat of unearned inco
Slide 31: Historical Income Statements
Historical Income Statements (Dollars in thousands) Year Ended December 31, 2013 2014 Income Statement Interest Income 55,195 50,886 53,297 56,079 58,532 15,622 Interest Expense 13,120 11,134 9,202 8,608 10,140 2,928 Net Interest Income 42,075 39,752 44,095 47,471 48,392 12,694 Provision for Loan Lo
Slide 32: 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 Tot
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