Attached files
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| 8-K - 8-K - First Guaranty Bancshares, Inc. | fgbi-form8xk12312019.htm |
EXHIBIT 99.1
FEBRUARY 4, 2020
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
First Guaranty Bancshares, Inc. Announces Fourth Quarter 2019 Results
Hammond, Louisiana, February 4, 2020 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter and year ending December 31, 2019.
A strong fourth quarter of 2019 brought an exciting end to an exciting year. Earnings for the fourth quarter were $4,049,000 compared to earnings for the fourth quarter of 2018 of $2,618,000. This is a 55% increase. Our assets increased to $2,117,048,000 as of the end of the year. Strong fourth quarter lending production brought us to a total portfolio as of December 31, 2019 of $1,525,490,169 compared to $1,225,267,846 as of December 31, 2018. This year end loan portfolio total was a combination of making our lending goals for First Guaranty Bank Lending for 2019 plus the addition of Union Bank in November 2019. We declared and paid four quarterly cash dividends of $0.16 per share for a total of $5,802,220 dividends paid to our shareholders in the year 2019. We declared and awarded a 10% stock dividend. Our fourth quarter net interest margin was 3.52% compared to 3.42% as of the end of December 2018.
We successfully implemented a commercial loan segment of our nCino platform resulting in much better customer service. We reached an agreement and started the process of replacing our online/internet banking service system with a new system to provide enhanced services to our customers.
We completed and opened our new Amite, Louisiana branch to replace and update our branch services in Amite.
While doing all of that, we continued our conservative and prudent management of our loan portfolio by charging off troubled loans and making provisions to our loan loss provision of $4,860,000 during the course of the year. While doing all of that, we continued our conservative and prudent management of our loan portfolio by charging off troubled loans and making provisions to our loan loss reserve of $4,860,000 during the course of the year. In addition to our regular allowance for loan losses which rose slightly to $10,928,643, we have loan discounts relating to the Union and Premier acquisitions totaling about $3.0 million, giving us a total level of reserves and discounts of approximately $14 million.
The year 2019 ended with a much stronger, better and bigger First Guaranty Bank than when the year began. 2019 brought great progress toward our goal of building a fortress balance sheet. First Guaranty Bancshares, Inc. looks to 2020 as being the best, the most successful, the most exciting year of our history.
Thank you for your support. We continue toward our goals of improving our customer services, growing First Guaranty Bancshares, Inc., and enhancing value for our shareholders.
Sincerely,
Alton B. Lewis
President and CEO
First Guaranty, Bancshares, Inc.
About First Guaranty
First Guaranty, a Louisiana-based company, has approximately $2.1 billion in assets as of December 31, 2019 and provides personalized commercial banking services through 33 banking facilities located across Louisiana and Texas. For more information, visit www.fgb.net.
Certain statements contained herein are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in our SEC filings, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which First Guaranty operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
First Guaranty wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. First Guaranty wishes to advise readers that the factors listed above could affect First Guaranty's financial performance and could cause First Guaranty's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. First Guaranty does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(in thousands, except share data) | December 31, 2019 | December 31, 2018 | ||||||
Assets | ||||||||
Cash and cash equivalents: | ||||||||
Cash and due from banks | $ | 66,511 | $ | 127,416 | ||||
Federal funds sold | 914 | 549 | ||||||
Cash and cash equivalents | 67,425 | 127,965 | ||||||
Investment securities: | ||||||||
Available for sale, at fair value | 340,434 | 296,977 | ||||||
Held to maturity, at cost (estimated fair value of $86,817 and $104,840, respectively) | 86,579 | 108,326 | ||||||
Investment securities | 427,013 | 405,303 | ||||||
Federal Home Loan Bank stock, at cost | 3,308 | 2,393 | ||||||
Loans held for sale | — | 344 | ||||||
Loans, net of unearned income | 1,525,490 | 1,225,268 | ||||||
Less: allowance for loan losses | 10,929 | 10,776 | ||||||
Net loans | 1,514,561 | 1,214,492 | ||||||
Premises and equipment, net | 55,667 | 39,695 | ||||||
Goodwill | 13,571 | 3,472 | ||||||
Intangible assets, net | 7,166 | 3,528 | ||||||
Other real estate, net | 4,879 | 1,138 | ||||||
Accrued interest receivable | 8,412 | 6,716 | ||||||
Other assets | 15,046 | 12,165 | ||||||
Total Assets | $ | 2,117,048 | $ | 1,817,211 | ||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 325,888 | $ | 244,516 | ||||
Interest-bearing demand | 635,942 | 594,359 | ||||||
Savings | 135,156 | 109,958 | ||||||
Time | 756,027 | 680,789 | ||||||
Total deposits | 1,853,013 | 1,629,622 | ||||||
Short-term advances from Federal Home Loan Bank | 13,079 | — | ||||||
Repurchase agreements | 6,840 | — | ||||||
Accrued interest payable | 6,047 | 3,952 | ||||||
Long-term advances from Federal Home Loan Bank | 3,533 | — | ||||||
Senior long-term debt | 48,558 | 19,838 | ||||||
Junior subordinated debentures | 14,737 | 14,700 | ||||||
Other liabilities | 5,206 | 1,815 | ||||||
Total Liabilities | 1,951,013 | 1,669,927 | ||||||
Shareholders' Equity | ||||||||
Common stock:1 | ||||||||
$1 par value - authorized 100,600,000 shares; issued 9,741,253 and 9,687,123 shares | 9,741 | 9,687 | ||||||
Surplus | 110,836 | 109,788 | ||||||
Retained earnings | 43,283 | 34,947 | ||||||
Accumulated other comprehensive income (loss) | 2,175 | (7,138 | ) | |||||
Total Shareholders' Equity | 166,035 | 147,284 | ||||||
Total Liabilities and Shareholders' Equity | $ | 2,117,048 | $ | 1,817,211 | ||||
See Notes to Consolidated Financial Statements | ||||||||
1 All share amounts have been restated to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019. | ||||||||
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(in thousands, except share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest Income: | ||||||||||||||||
Loans (including fees) | $ | 21,221 | $ | 17,186 | $ | 78,886 | $ | 64,836 | ||||||||
Deposits with other banks | 495 | 338 | 2,956 | 612 | ||||||||||||
Securities (including FHLB stock) | 2,419 | 3,175 | 9,800 | 12,941 | ||||||||||||
Federal funds sold | — | — | 1 | 1 | ||||||||||||
Total Interest Income | 24,135 | 20,699 | 91,643 | 78,390 | ||||||||||||
Interest Expense: | ||||||||||||||||
Demand deposits | 2,301 | 2,258 | 10,447 | 8,531 | ||||||||||||
Savings deposits | 120 | 126 | 527 | 407 | ||||||||||||
Time deposits | 4,420 | 3,399 | 17,141 | 10,690 | ||||||||||||
Borrowings | 625 | 422 | 1,851 | 1,738 | ||||||||||||
Total Interest Expense | 7,466 | 6,205 | 29,966 | 21,366 | ||||||||||||
Net Interest Income | 16,669 | 14,494 | 61,677 | 57,024 | ||||||||||||
Less: Provision for loan losses | 712 | 786 | 4,860 | 1,354 | ||||||||||||
Net Interest Income after Provision for Loan Losses | 15,957 | 13,708 | 56,817 | 55,670 | ||||||||||||
Noninterest Income: | ||||||||||||||||
Service charges, commissions and fees | 880 | 726 | 2,808 | 2,988 | ||||||||||||
ATM and debit card fees | 568 | 550 | 2,254 | 2,122 | ||||||||||||
Net gains (losses) on securities | 230 | (928 | ) | (157 | ) | (1,830 | ) | |||||||||
Net gains on sale of loans | 5 | 102 | 1,376 | 278 | ||||||||||||
Other | 490 | 285 | 2,018 | 1,722 | ||||||||||||
Total Noninterest Income | 2,173 | 735 | 8,299 | 5,280 | ||||||||||||
Noninterest Expense: | ||||||||||||||||
Salaries and employee benefits | 6,899 | 5,909 | 25,019 | 22,888 | ||||||||||||
Occupancy and equipment expense | 1,658 | 1,493 | 6,096 | 5,601 | ||||||||||||
Other | 4,522 | 3,833 | 16,104 | 14,786 | ||||||||||||
Total Noninterest Expense | 13,079 | 11,235 | 47,219 | 43,275 | ||||||||||||
Income Before Income Taxes | 5,051 | 3,208 | 17,897 | 17,675 | ||||||||||||
Less: Provision for income taxes | 1,002 | 590 | 3,656 | 3,462 | ||||||||||||
Net Income | $ | 4,049 | $ | 2,618 | $ | 14,241 | $ | 14,213 | ||||||||
Per Common Share:1 | ||||||||||||||||
Earnings | $ | 0.42 | $ | 0.27 | $ | 1.47 | $ | 1.47 | ||||||||
Cash dividends paid | $ | 0.16 | $ | 0.15 | $ | 0.60 | $ | 0.58 | ||||||||
Weighted Average Common Shares Outstanding | 9,718,895 | 9,687,123 | 9,695,131 | 9,687,123 | ||||||||||||
See Notes to Consolidated Financial Statements | ||||||||||||||||
1 All share and per share amounts have been restated to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019. | ||||||||||||||||
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||||||
Three Months Ended December 31, 2019 | Three Months Ended December 31, 2018 | |||||||||||||||||||||
(in thousands except for %) | Average Balance | Interest | Yield/Rate (5) | Average Balance | Interest | Yield/Rate (5) | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Interest-earning deposits with banks | $ | 126,864 | $ | 495 | 1.55 | % | $ | 65,715 | $ | 338 | 2.04 | % | ||||||||||
Securities (including FHLB stock) | 349,862 | 2,419 | 2.74 | % | 419,404 | 3,175 | 3.00 | % | ||||||||||||||
Federal funds sold | 961 | — | — | % | 366 | — | — | % | ||||||||||||||
Loans held for sale | 50 | — | — | % | 797 | 15 | 7.47 | % | ||||||||||||||
Loans, net of unearned income | 1,400,584 | 21,221 | 6.01 | % | 1,194,792 | 17,171 | 5.70 | % | ||||||||||||||
Total interest-earning assets | 1,878,321 | $ | 24,135 | 5.10 | % | 1,681,074 | $ | 20,699 | 4.88 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||
Cash and due from banks | 21,250 | 9,503 | ||||||||||||||||||||
Premises and equipment, net | 51,835 | 39,336 | ||||||||||||||||||||
Other assets | 20,322 | 13,836 | ||||||||||||||||||||
Total Assets | $ | 1,971,728 | $ | 1,743,749 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Demand deposits | $ | 607,538 | $ | 2,301 | 1.50 | % | $ | 517,722 | $ | 2,258 | 1.73 | % | ||||||||||
Savings deposits | 128,950 | 120 | 0.37 | % | 111,731 | 126 | 0.45 | % | ||||||||||||||
Time deposits | 699,999 | 4,420 | 2.51 | % | 677,908 | 3,399 | 1.99 | % | ||||||||||||||
Borrowings | 61,136 | 625 | 4.06 | % | 35,509 | 422 | 4.72 | % | ||||||||||||||
Total interest-bearing liabilities | 1,497,623 | $ | 7,466 | 1.98 | % | 1,342,870 | $ | 6,205 | 1.83 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Demand deposits | 297,562 | 250,034 | ||||||||||||||||||||
Other | 12,407 | 7,368 | ||||||||||||||||||||
Total Liabilities | 1,807,592 | 1,600,272 | ||||||||||||||||||||
Shareholders' equity | 164,136 | 143,477 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,971,728 | $ | 1,743,749 | ||||||||||||||||||
Net interest income | $ | 16,669 | $ | 14,494 | ||||||||||||||||||
Net interest rate spread (1) | 3.12 | % | 3.05 | % | ||||||||||||||||||
Net interest-earning assets (2) | $ | 380,698 | $ | 338,204 | ||||||||||||||||||
Net interest margin (3), (4) | 3.52 | % | 3.42 | % | ||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 125.42 | % | 125.19 | % | ||||||||||||||||||
(1) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(4) | The tax adjusted net interest margin was 3.53% and 3.43% for the above periods ended December 31, 2019 and 2018 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2019 and 2018 respectively. |
(5) | Annualized. |
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||
(in thousands except for %) | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Interest-earning deposits with banks | $ | 144,298 | $ | 2,956 | 2.05 | % | $ | 39,005 | $ | 612 | 1.57 | % | ||||||||||
Securities (including FHLB stock) | 349,247 | 9,800 | 2.81 | % | 465,399 | 12,941 | 2.78 | % | ||||||||||||||
Federal funds sold | 592 | 1 | 0.25 | % | 531 | 1 | 0.23 | % | ||||||||||||||
Loans held for sale | 324 | 24 | 7.41 | % | 1,330 | 84 | 6.32 | % | ||||||||||||||
Loans, net of unearned income | 1,315,524 | 78,862 | 5.99 | % | 1,167,458 | 64,752 | 5.55 | % | ||||||||||||||
Total interest-earning assets | 1,809,985 | $ | 91,643 | 5.06 | % | 1,673,723 | $ | 78,390 | 4.68 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||
Cash and due from banks | 11,951 | 10,013 | ||||||||||||||||||||
Premises and equipment, net | 45,034 | 38,502 | ||||||||||||||||||||
Other assets | 15,259 | 13,805 | ||||||||||||||||||||
Total Assets | $ | 1,882,229 | $ | 1,736,043 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Demand deposits | $ | 592,113 | $ | 10,447 | 1.76 | % | $ | 556,528 | $ | 8,531 | 1.53 | % | ||||||||||
Savings deposits | 115,682 | 527 | 0.46 | % | 111,134 | 407 | 0.37 | % | ||||||||||||||
Time deposits | 703,685 | 17,141 | 2.44 | % | 628,457 | 10,690 | 1.70 | % | ||||||||||||||
Borrowings | 40,766 | 1,851 | 4.54 | % | 39,150 | 1,738 | 4.44 | % | ||||||||||||||
Total interest-bearing liabilities | 1,452,246 | $ | 29,966 | 2.06 | % | 1,335,269 | $ | 21,366 | 1.60 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||
Demand deposits | 262,379 | 252,531 | ||||||||||||||||||||
Other | 9,204 | 5,870 | ||||||||||||||||||||
Total Liabilities | 1,723,829 | 1,593,670 | ||||||||||||||||||||
Shareholders' equity | 158,400 | 142,373 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,882,229 | $ | 1,736,043 | ||||||||||||||||||
Net interest income | $ | 61,677 | $ | 57,024 | ||||||||||||||||||
Net interest rate spread (1) | 3.00 | % | 3.08 | % | ||||||||||||||||||
Net interest-earning assets (2) | $ | 357,739 | $ | 338,454 | ||||||||||||||||||
Net interest margin (3), (4) | 3.41 | % | 3.41 | % | ||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 124.63 | % | 125.35 | % | ||||||||||||||||||
(1) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(4) | The tax adjusted net interest margin was 3.42% for the above periods ended December 31, 2019 and 2018 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended December 31, 2019 and 2018 respectively. |
The following table summarizes the components of First Guaranty's loan portfolio as of December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019:
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||
(in thousands except for %) | Balance | As % of Category | Balance | As % of Category | Balance | As % of Category | Balance | As % of Category | ||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||
Construction & land development | $ | 172,247 | 11.3 | % | $ | 157,980 | 12.2 | % | $ | 148,156 | 11.4 | % | $ | 142,861 | 11.0 | % | ||||||||||||
Farmland | 22,741 | 1.5 | % | 16,484 | 1.3 | % | 17,414 | 1.3 | % | 18,904 | 1.5 | % | ||||||||||||||||
1- 4 Family | 289,635 | 18.9 | % | 187,772 | 14.5 | % | 185,234 | 14.2 | % | 179,798 | 13.8 | % | ||||||||||||||||
Multifamily | 23,973 | 1.6 | % | 22,459 | 1.7 | % | 44,104 | 3.4 | % | 42,186 | 3.2 | % | ||||||||||||||||
Non-farm non-residential | 616,536 | 40.3 | % | 585,177 | 45.1 | % | 604,523 | 46.4 | % | 607,928 | 46.7 | % | ||||||||||||||||
Total Real Estate | 1,125,132 | 73.6 | % | 969,872 | 74.8 | % | 999,431 | 76.7 | % | 991,677 | 76.2 | % | ||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||||
Agricultural | 26,710 | 1.8 | % | 29,193 | 2.3 | % | 26,587 | 2.0 | % | 21,465 | 1.7 | % | ||||||||||||||||
Commercial and industrial | 268,256 | 17.5 | % | 213,993 | 16.5 | % | 199,768 | 15.3 | % | 210,187 | 16.1 | % | ||||||||||||||||
Consumer and other | 108,868 | 7.1 | % | 83,029 | 6.4 | % | 78,321 | 6.0 | % | 78,162 | 6.0 | % | ||||||||||||||||
Total Non-Real Estate | 403,834 | 26.4 | % | 326,215 | 25.2 | % | 304,676 | 23.3 | % | 309,814 | 23.8 | % | ||||||||||||||||
Total loans before unearned income | 1,528,966 | 100.0 | % | 1,296,087 | 100.0 | % | 1,304,107 | 100.0 | % | 1,301,491 | 100.0 | % | ||||||||||||||||
Unearned income | (3,476 | ) | (3,176 | ) | (3,554 | ) | (3,335 | ) | ||||||||||||||||||||
Total loans net of unearned income | $ | 1,525,490 | $ | 1,292,911 | $ | 1,300,553 | $ | 1,298,156 | ||||||||||||||||||||
The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands) | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||
Nonaccrual loans: | ||||||||||||||||
Real Estate: | ||||||||||||||||
Construction and land development | $ | 381 | $ | 390 | $ | 402 | $ | 305 | ||||||||
Farmland | 1,274 | 1,337 | 1,337 | 1,286 | ||||||||||||
1- 4 family | 2,759 | 1,975 | 1,678 | 2,538 | ||||||||||||
Multifamily | — | — | — | — | ||||||||||||
Non-farm non-residential | 4,646 | 745 | 609 | 3,650 | ||||||||||||
Total Real Estate | 9,060 | 4,447 | 4,026 | 7,779 | ||||||||||||
Non-Real Estate: | ||||||||||||||||
Agricultural | 4,800 | 4,842 | 4,923 | 4,916 | ||||||||||||
Commercial and industrial | 327 | 454 | 362 | 250 | ||||||||||||
Consumer and other | 216 | 1,155 | 37 | 50 | ||||||||||||
Total Non-Real Estate | 5,343 | 6,451 | 5,322 | 5,216 | ||||||||||||
Total nonaccrual loans | 14,403 | 10,898 | 9,348 | 12,995 | ||||||||||||
Loans 90 days and greater delinquent & accruing: | ||||||||||||||||
Real Estate: | ||||||||||||||||
Construction and land development | 48 | — | — | — | ||||||||||||
Farmland | — | — | — | — | ||||||||||||
1- 4 family | 923 | 2 | 60 | 363 | ||||||||||||
Multifamily | — | — | — | — | ||||||||||||
Non-farm non-residential | 1,603 | 184 | 468 | — | ||||||||||||
Total Real Estate | 2,574 | 186 | 528 | 363 | ||||||||||||
Non-Real Estate: | ||||||||||||||||
Agricultural | — | — | 242 | — | ||||||||||||
Commercial and industrial | 15 | 24 | 127 | 135 | ||||||||||||
Consumer and other | 50 | 128 | 19 | 115 | ||||||||||||
Total Non-Real Estate | 65 | 152 | 388 | 250 | ||||||||||||
Total loans 90 days and greater delinquent & accruing | 2,639 | 338 | 916 | 613 | ||||||||||||
Total non-performing loans | 17,042 | 11,236 | 10,264 | 13,608 | ||||||||||||
Real Estate Owned: | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Construction and land development | 669 | 213 | 219 | 219 | ||||||||||||
Farmland | — | — | — | — | ||||||||||||
1- 4 family | 559 | 117 | 466 | 135 | ||||||||||||
Multifamily | — | — | — | — | ||||||||||||
Non-farm non-residential | 3,651 | 3,040 | 3,049 | 766 | ||||||||||||
Total Real Estate | 4,879 | 3,370 | 3,734 | 1,120 | ||||||||||||
Non-Real Estate Loans: | ||||||||||||||||
Agricultural | — | — | — | — | ||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||
Consumer and other | — | — | — | — | ||||||||||||
Total Non-Real Estate | — | — | — | — | ||||||||||||
Total Real Estate Owned | 4,879 | 3,370 | 3,734 | 1,120 | ||||||||||||
Total non-performing assets | $ | 21,921 | $ | 14,606 | $ | 13,998 | $ | 14,728 | ||||||||
Non-performing assets to total loans | 1.44 | % | 1.13 | % | 1.08 | % | 1.13 | % | ||||||||
Non-performing assets to total assets | 1.04 | % | 0.81 | % | 0.75 | % | 0.77 | % | ||||||||
Non-performing loans to total loans | 1.12 | % | 0.87 | % | 0.79 | % | 1.05 | % | ||||||||
Non-GAAP Financial Measures
Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures.
Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names.
The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
At December 31, | ||||||||||||||||||||
(in thousands except for share data and %) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Tangible Common Equity | ||||||||||||||||||||
Total shareholders' equity | $ | 166,035 | $ | 147,284 | $ | 143,983 | $ | 124,349 | $ | 118,224 | ||||||||||
Adjustments: | ||||||||||||||||||||
Preferred | — | — | — | — | — | |||||||||||||||
Goodwill2 | 13,571 | 3,472 | 3,472 | 1,999 | 1,999 | |||||||||||||||
Acquisition intangibles2 | 6,527 | 2,704 | 3,249 | 978 | 1,298 | |||||||||||||||
Tangible common equity | $ | 145,937 | $ | 141,108 | $ | 137,262 | $ | 121,372 | $ | 114,927 | ||||||||||
Common shares outstanding1 | 9,741,253 | 9,687,123 | 9,687,123 | 9,205,635 | 9,205,635 | |||||||||||||||
Book value per common share1 | $ | 17.04 | $ | 15.20 | $ | 14.86 | $ | 13.51 | $ | 12.84 | ||||||||||
Tangible book value per common share1 | $ | 14.98 | $ | 14.57 | $ | 14.17 | $ | 13.18 | $ | 12.48 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total Assets | $ | 2,117,048 | $ | 1,817,211 | $ | 1,750,430 | $ | 1,500,946 | $ | 1,459,753 | ||||||||||
Adjustments: | ||||||||||||||||||||
Goodwill2 | 13,571 | 3,472 | 3,472 | 1,999 | 1,999 | |||||||||||||||
Acquisition intangibles2 | 6,527 | 2,704 | 3,249 | 978 | 1,298 | |||||||||||||||
Tangible Assets | $ | 2,096,950 | $ | 1,811,035 | $ | 1,743,709 | $ | 1,497,969 | $ | 1,456,456 | ||||||||||
Tangible common equity to tangible assets | 6.96 | % | 7.79 | % | 7.87 | % | 8.10 | % | 7.89 | % | ||||||||||
1 All share amounts have been restated to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019. | ||||||||||||||||||||
2The valuations of goodwill and acquisition intangibles are still preliminary and subject to change. United States generally accepted accounting principles ("U.S. GAAP") provides up to twelve months following the date of acquisition in which management can finalize the fair values of acquired assets and assumed liabilities. Material events that occur during the measurement period will be analyzed to determine if the new information reflected facts and circumstances that existed on the acquisition date. The measurement period ends as soon as First Guaranty receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns more information is unobtainable. The measurement period is limited to one year from the acquisition date. Once management has finalized the fair values of acquired assets and assumed liabilities within this twelve month period, management considers such values to be the "Day One Fair Values." | ||||||||||||||||||||