Louisiana
|
26-0513559
|
(State or other jurisdiction incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
400 East Thomas Street
|
|
Hammond, Louisiana
|
70401
|
(Address of principal executive office)
|
(Zip Code)
|
(985) 345-7685
|
|
(Telephone number, including area code)
|
Page
|
||
Part I.
|
||
Item 1.
|
3 | |
3
|
||
4
|
||
5 | ||
6 | ||
7 | ||
8
|
||
Item 2.
|
22 | |
Item 3.
|
33 | |
Item 4.
|
35 | |
Part II.
|
35 | |
Item 1.
|
35 | |
Item 1A.
|
35 | |
Item 2.
|
35 | |
Signatures
|
36 |
CONSOLIDATED BALANCE SHEETS (unaudited)
|
||||||
(in thousands, except share data) |
March 31, 2013
|
December 31, 2012
|
||||
Assets
|
||||||
Cash and cash equivalents:
|
||||||
Cash and due from banks
|
$
|
75,599
|
$
|
83,330
|
||
Interest-earning demand deposits with banks
|
11
|
12
|
||||
Federal funds sold
|
2,773
|
2,891
|
||||
Cash and cash equivalents
|
78,383
|
86,233
|
||||
Interest-earning time deposits with banks | 747 | 747 | ||||
Investment securities:
|
||||||
Available for sale, at fair value
|
571,634
|
602,300
|
||||
Held to maturity, at cost (estimated fair value of $47,830 and $58,939, respectively)
|
47,972
|
58,943
|
||||
Investment securities
|
619,606
|
661,243
|
||||
Federal Home Loan Bank stock, at cost
|
555
|
1,275
|
||||
Loans held for sale | - | 557 | ||||
Loans, net of unearned income
|
653,285
|
629,500
|
||||
Less: allowance for loan losses
|
9,407
|
10,342
|
||||
Net loans
|
643,878
|
619,158
|
||||
Premises and equipment, net
|
19,512
|
19,564
|
||||
Goodwill
|
1,999
|
1,999
|
||||
Intangible assets, net
|
2,329
|
2,413
|
||||
Other real estate, net
|
4,409
|
2,394
|
||||
Accrued interest receivable
|
6,317
|
6,711
|
||||
Other assets
|
6,010
|
5,009
|
||||
Total Assets
|
$
|
1,383,745
|
$
|
1,407,303
|
||
Liabilities and Stockholders' Equity
|
||||||
Deposits:
|
||||||
Noninterest-bearing demand
|
$
|
190,642
|
$
|
192,232
|
||
Interest-bearing demand
|
322,124
|
348,870
|
||||
Savings
|
64,510
|
63,062
|
||||
Time
|
650,514
|
648,448
|
||||
Total deposits
|
1,227,790
|
1,252,612
|
||||
Short-term borrowings
|
14,674
|
14,746
|
||||
Accrued interest payable
|
3,179
|
2,840
|
||||
Long-term borrowings | 950 | 1,100 | ||||
Other liabilities
|
3,048
|
1,824
|
||||
Total Liabilities
|
1,249,641
|
1,273,122
|
||||
Stockholders' Equity
|
||||||
Preferred stock:
|
||||||
Series C - $1,000 par value - authorized 39,435 shares; issued and outstanding 39,435 | 39,435 | 39,435 | ||||
Common stock:
|
||||||
$1 par value - authorized 100,600,000 shares; issued 6,294,227 shares
|
6,294
|
6,294
|
||||
Surplus
|
39,387
|
39,387
|
||||
Treasury stock, at cost, 2,895 shares | (54 | ) | (54 | ) | ||
Retained earnings
|
43,871
|
43,071
|
||||
Accumulated other comprehensive income
|
5,171
|
|
6,048
|
|
||
Total Stockholders' Equity
|
134,104
|
134,181
|
||||
Total Liabilities and Stockholders' Equity
|
$
|
1,383,745
|
$
|
1,407,303
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
||||||
Three Months Ended March 31, | ||||||
(in thousands, except share data) | 2013 |
2012
|
||||
Interest Income:
|
||||||
Loans (including fees)
|
$
|
9,096 | $ |
8,772
|
||
Loans held for sale
|
- |
1
|
||||
Deposits with other banks
|
40 |
15
|
||||
Securities (including FHLB stock)
|
3,368 |
5,630
|
||||
Federal funds sold
|
- |
4
|
||||
Total Interest Income
|
12,504 |
14,422
|
||||
Interest Expense:
|
||||||
Demand deposits
|
362 |
343
|
||||
Savings deposits
|
14 |
13
|
||||
Time deposits
|
2,506 |
3,173
|
||||
Borrowings
|
38 |
39
|
||||
Total Interest Expense
|
2,920 |
3,568
|
||||
Net Interest Income
|
9,584 |
10,854
|
||||
Less: Provision for loan losses
|
904 |
1,200
|
||||
Net Interest Income after Provision for Loan Losses
|
8,680 |
9,654
|
||||
Noninterest Income:
|
||||||
Service charges, commissions and fees
|
1,151 |
1,188
|
||||
Net gains on securities
|
777 |
728
|
||||
Net gains on sale of loans
|
(25 | ) |
(30
|
) | ||
Other
|
327 |
373
|
||||
Total Noninterest Income
|
2,230 |
2,259
|
||||
Noninterest Expense:
|
||||||
Salaries and employee benefits
|
3,526 |
3,371
|
||||
Occupancy and equipment expense
|
981 |
920
|
||||
Other
|
3,197 |
2,959
|
||||
Total Noninterest Expense
|
7,704 |
7,250
|
||||
Income Before Income Taxes
|
3,206 |
4,663
|
||||
Less: Provision for income taxes
|
1,117 |
1,612
|
||||
Net Income
|
2,089 |
3,051
|
||||
Preferred Stock Dividends
|
(283 | ) |
(484
|
)
|
||
Income Available to Common Shareholders
|
$
|
1,806 | $ |
2,567
|
||
Per Common Share:
|
||||||
Cash dividends paid
|
$
|
0.16 | $ |
0.16
|
||
Earnings |
$
|
0.29 | $ |
0.41
|
||
Weighted Average Common Shares Outstanding
|
6,291,332 |
6,294,194
|
||||
See Notes to Consolidated Financial Statements
|
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
|
||||||
Three Months Ended March 31, | ||||||
(in thousands) | 2013 | 2012 | ||||
Net Income | $ | 2,089 | $ | 3,051 | ||
Other comprehensive income, net of tax: | ||||||
Unrealized gains on securities: | ||||||
Unrealized holding losses arising during the period | (100 | ) | (2,607 | ) | ||
Reclassification adjustments for net gains included in net income | (777 | ) | (728 | ) | ||
Other comprehensive income, net of tax | (877 | ) | (3,335 | ) | ||
Comprehensive Income (Loss) | $ | 1,212 | $ | (284 | ) | |
See Notes to Consolidated Financial Statements |
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) | |||||||||||||||||||||
Series C | Accumulated | ||||||||||||||||||||
Preferred | Common | Other | |||||||||||||||||||
Stock | Stock | Treasury | Retained | Comprehensive | |||||||||||||||||
$1,000 Par | $1 Par | Surplus | Stock | Earnings | Income/(Loss) | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
Balance December 31, 2011
|
$ | 39,435 | $ |
6,294
|
|
$ |
39,387
|
$ | - |
|
$ |
37,019
|
|
$ |
4,467
|
|
$ |
126,602
|
|||
Net income
|
- |
-
|
-
|
- |
3,051
|
-
|
3,051
|
||||||||||||||
Other comprehensive income
|
- |
-
|
-
|
- |
-
|
(3,335
|
) |
(3,335
|
)
|
||||||||||||
Cash dividends on common stock ($0.16 per share)
|
- |
-
|
-
|
- |
(1,015
|
)
|
-
|
(1,015
|
)
|
||||||||||||
Treasury shares purchased, at cost, 600 shares | - | - | - | (11 | ) | - | - | (11 |
)
|
||||||||||||
Preferred stock dividend
|
- |
-
|
-
|
- |
(484
|
)
|
-
|
(484
|
)
|
||||||||||||
Balance March 31, 2012 (unaudited)
|
$ | 39,435 | $ |
6,294
|
|
$ |
39,387
|
$ | (11 |
)
|
$ |
38,571
|
|
$ |
1,132
|
|
$ |
124,808
|
|||
Balance December 31, 2012
|
$ | 39,435 | $ |
6,294
|
|
$ |
39,387
|
$ | (54 |
)
|
$ |
43,071
|
|
$ |
6,048
|
|
$ |
134,181
|
|||
Net Income | - | - | - | - | 2,089 | - | 2,089 | ||||||||||||||
Other comprehensive income
|
- |
-
|
-
|
- |
-
|
(877
|
)
|
(877
|
)
|
||||||||||||
Cash dividends on common stock ($0.16 per share)
|
- |
-
|
-
|
- |
(1,006
|
)
|
-
|
(1,006
|
)
|
||||||||||||
Preferred stock dividend
|
- |
-
|
-
|
- |
(283
|
)
|
-
|
(283
|
)
|
||||||||||||
Balance March 31, 2013 (unaudited)
|
$ | 39,435 | $ |
6,294
|
|
$ |
39,387
|
$ | (54 |
)
|
$ |
43,871
|
|
$ |
5,171
|
|
$ |
134,104
|
|||
See Notes to Consolidated Financial Statements
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
||||||
Three Months Ended March 31,
|
||||||
(in thousands) |
2013
|
2012
|
||||
Cash Flows From Operating Activities
|
||||||
Net income
|
$
|
2,089
|
$
|
3,051
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||
Provision for loan losses
|
904
|
1,200
|
||||
Depreciation and amortization
|
527
|
524
|
||||
Amortization/Accretion of investments
|
511
|
433
|
|
|||
Gain on calls and sales of securities | (777 | ) | (728 | ) | ||
Gain on sale of assets | 25 | 47 | ||||
ORE write downs and loss on disposition
|
24
|
381
|
||||
Net decrease (increase) in loans held for sale
|
557
|
|
(55
|
)
|
||
Change in other assets and liabilities, net
|
1,365
|
2,022
|
||||
Net Cash Provided By Operating Activities
|
5,225
|
6,875
|
||||
Cash Flows From Investing Activities
|
||||||
Proceeds from maturities and calls of HTM securities
|
11,000
|
61,118
|
||||
Proceeds from maturities, calls and sales of AFS securities | 283,452 | 131,003 | ||||
Funds invested in HTM securities
|
-
|
|
(40,901
|
) | ||
Funds Invested in AFS securities
|
(253,879
|
)
|
(214,262
|
)
|
||
Proceeds from sale/redemption of Federal Home Loan Bank stock
|
720
|
-
|
||||
Funds invested in Federal Home Loan Bank stock
|
-
|
|
(1,155
|
)
|
||
Net increase in loans
|
(27,894
|
) |
(4,526
|
)
|
||
Purchase of premises and equipment
|
(372
|
)
|
(344
|
)
|
||
Proceeds from sales of other real estate owned
|
231
|
589
|
||||
Net Cash Provided By (Used In) Investing Activities
|
13,258
|
|
(68,478
|
)
|
||
Cash Flows From Financing Activities
|
||||||
Net (decrease) increase in deposits
|
(24,822
|
) | $ |
5,258
|
||
Net (decrease) increase in federal funds purchased and short-term borrowings
|
(72
|
) |
159
|
|
||
Repayment of long-term borrowings
|
(150
|
) |
(150
|
)
|
||
Purchase of treasury stock | - | (11 | ) | |||
Dividends paid
|
(1,289
|
)
|
(1,499
|
)
|
||
Net Cash (Used In) Provided By Financing Activities
|
(26,333
|
) |
3,757
|
|||
Net Decrease In Cash and Cash Equivalents
|
(7,850
|
) |
(57,846
|
) | ||
Cash and Cash Equivalents at the Beginning of the Period
|
86,233
|
112,442
|
||||
Cash and Cash Equivalents at the End of the Period
|
$
|
78,383
|
$
|
54,596
|
||
Noncash Activities:
|
||||||
Loans transferred to foreclosed assets
|
$
|
2,270
|
$
|
266
|
||
Cash Paid During The Period:
|
||||||
Interest on deposits and borrowed funds
|
$
|
2,581
|
$
|
3,398
|
||
Income taxes
|
$
|
-
|
$
|
-
|
||
See Notes to the Consolidated Financial Statements. |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
(in thousands) |
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||||||
Available for sale:
|
||||||||||||||||||||||||
U.S Treasuries | $ | 26,000 | $ | - | $ | - | $ | 26,000 | $ | 20,000 | $ | - | $ | - | $ | 20,000 | ||||||||
U.S. Government Agencies
|
369,768 |
|
311
|
|
(658
|
)
|
|
369,421
|
|
392,616
|
751
|
|
(278
|
)
|
393,089
|
|||||||||
Corporate debt securities
|
148,614 |
7,577
|
(237
|
)
|
155,954
|
159,488
|
8,024
|
(401
|
)
|
167,111
|
||||||||||||||
Mutual funds or other equity securities
|
2,064 |
19
|
-
|
|
2,083
|
2,564
|
23
|
-
|
|
2,587
|
||||||||||||||
Municipal bonds
|
17,367 |
809
|
-
|
|
18,176
|
18,481
|
1,032
|
-
|
|
19,513
|
||||||||||||||
Total available for sale securities
|
$
|
563,813
|
$
|
8,716
|
$
|
(895
|
)
|
$
|
571,634
|
$
|
593,149
|
$
|
9,830
|
$
|
(679
|
)
|
$
|
602,300
|
||||||
Held to maturity:
|
||||||||||||||||||||||||
U.S. Government Agencies
|
$
|
47,972
|
$
|
72
|
$
|
(214
|
)
|
$
|
47,830
|
$
|
58,943
|
$
|
175
|
$
|
(179
|
)
|
$
|
58,939
|
||||||
Total held to maturity securities
|
$
|
47,972
|
$
|
72
|
$
|
(214
|
)
|
$
|
47,830
|
$
|
58,943
|
$
|
175
|
$
|
(179
|
)
|
$
|
58,939
|
March 31, 2013
|
|||||
(in thousands) |
Amortized Cost
|
Fair Value
|
|||
Available For Sale:
|
|||||
Due in one year or less
|
$
|
51,744
|
$
|
51,828
|
|
Due after one year through five years
|
164,671
|
167,478
|
|||
Due after five years through 10 years
|
302,547
|
306,871
|
|||
Over 10 years
|
44,851
|
45,457
|
|||
Total available for sale securities
|
$
|
563,813
|
$
|
571,634
|
|
Held to Maturity:
|
|||||
Due in one year or less
|
$
|
-
|
$
|
-
|
|
Due after one year through five years
|
-
|
-
|
|||
Due after five years through 10 years
|
47,972
|
47,830
|
|||
Over 10 years
|
-
|
-
|
|||
Total held to maturity securities
|
$
|
47,972
|
$
|
47,830
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||
(in thousands) |
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
||||||||||||
Available for sale:
|
||||||||||||||||||
U.S Treasuries
|
$
|
16,000
|
$
|
-
|
$
|
- |
$
|
-
|
$
|
16,000
|
$
|
-
|
||||||
U.S. Government agencies
|
198,272
|
(658
|
) | - |
-
|
198,272
|
(658
|
) | ||||||||||
Corporate debt securities
|
11,276
|
(186
|
) |
1,167
|
(51
|
) |
12,443
|
(237
|
) | |||||||||
Mutual funds or other equity securities
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Municipals
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Total available for sale securities
|
$
|
225,548
|
$
|
(844
|
) |
$
|
1,167
|
$
|
(51
|
) |
$
|
226,715
|
$
|
(895
|
) | |||
Held to maturity:
|
||||||||||||||||||
U.S. Government agencies
|
$
|
35,763
|
$
|
(214
|
) |
$
|
-
|
$
|
-
|
$
|
35,763
|
$
|
(214
|
) | ||||
Total held to maturity securities
|
$
|
35,763
|
$
|
(214
|
) |
$
|
-
|
$
|
-
|
$
|
35,763
|
$
|
(214
|
) |
At March 31, 2013
|
|||||
(in thousands)
|
Amortized Cost
|
Fair Value
|
|||
U.S Treasury
|
$
|
26,000
|
$
|
26,000
|
|
Federal Home Loan Bank (FHLB)
|
133,081
|
132,918
|
|||
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)
|
23,977
|
23,844
|
|||
Federal National Mortgage Association (Fannie Mae-FNMA)
|
137,047
|
136,907
|
|||
Federal Farm Credit Bank (FFCB)
|
123,635
|
123,582
|
|||
Total
|
$
|
443,740
|
$
|
443,251
|
March 31, 2013
|
December 31, 2012
|
|||||||||
(in thousands except for %) |
Balance
|
As % of Category
|
Balance
|
As % of Category
|
||||||
Real Estate:
|
||||||||||
Construction & land development
|
$
|
49,378
|
7.5
|
%
|
$
|
44,856
|
7.1
|
%
|
||
Farmland
|
11,152
|
1.7
|
%
|
11,182
|
1.8
|
%
|
||||
1- 4 Family
|
90,932
|
13.9
|
%
|
87,473
|
13.8
|
%
|
||||
Multifamily
|
14,020
|
2.1
|
%
|
14,855
|
2.4
|
%
|
||||
Non-farm non-residential
|
322,398
|
49.3
|
%
|
312,716
|
49.6
|
%
|
||||
Total Real Estate
|
487,880
|
74.5
|
%
|
471,082
|
74.7
|
%
|
||||
Non-Real Estate: | ||||||||||
Agricultural
|
17,030
|
2.6
|
%
|
18,476
|
2.9
|
%
|
||||
Commercial and industrial
|
126,925
|
19.4
|
%
|
117,425
|
18.6
|
%
|
||||
Consumer and other
|
22,721
|
3.5
|
%
|
23,758
|
3.8
|
%
|
||||
Total Non-Real Estate | 166,676 | 25.5 | % | 159,659 | 25.3 | % | ||||
Total loans before unearned income
|
654,556
|
100.0
|
%
|
630,741
|
100.0
|
%
|
||||
Unearned income
|
(1,271
|
)
|
(1,241
|
)
|
||||||
Total loans net of unearned income
|
$
|
653,285
|
$
|
629,500
|
March 31, 2013
|
December 31, 2012 | |||||||||||||||||
(in thousands) |
Fixed
|
Floating
|
Total
|
Fixed | Floating | Total | ||||||||||||
One year or less
|
$
|
84,113
|
$
|
126,471
|
$
|
210,584
|
$ |
89,117
|
$ |
107,176
|
$ |
196,293
|
||||||
One to five years
|
161,671
|
157,548
|
319,219
|
147,896
|
175,743
|
323,639
|
||||||||||||
Five to 15 years
|
54,882
|
33,922
|
88,804
|
33,770
|
42,595
|
76,365
|
||||||||||||
Over 15 years
|
8,427
|
10,521
|
18,948
|
7,829
|
5,927
|
13,756
|
||||||||||||
Subtotal
|
$
|
309,093
|
$ |
328,462
|
637,555
|
$ |
278,612
|
$ |
331,441
|
610,053
|
||||||||
Nonaccrual loans
|
17,001
|
20,688
|
||||||||||||||||
Total loans before unearned income
|
654,556
|
630,741
|
||||||||||||||||
Unearned income
|
(1,271
|
)
|
(1,241 | ) | ||||||||||||||
Total loans net of unearned income | $ | 653,285 | $ | 629,500 |
As of March 31, 2013
|
||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
90 Days or Greater
|
Total Past Due
|
Current
|
Total Loans
|
Recorded Investment 90 Days Accruing
|
||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
53
|
$
|
254
|
$
|
307
|
$
|
49,071
|
$
|
49,378
|
$
|
-
|
||||||
Farmland
|
408
|
293
|
701
|
10,451
|
11,152
|
-
|
||||||||||||
1 - 4 family
|
4,023
|
4,417
|
8,440
|
82,492
|
90,932
|
823
|
||||||||||||
Multifamily
|
805
|
-
|
805
|
13,215
|
14,020
|
-
|
||||||||||||
Non-farm non-residential
|
2,148
|
10,235
|
12,383
|
310,015
|
322,398
|
-
|
||||||||||||
Total Real Estate
|
|
7,437
|
|
15,199
|
|
22,636
|
465,244
|
487,880
|
823
|
|||||||||
Non-Real Estate:
|
||||||||||||||||||
Agricultural
|
|
85
|
511
|
596
|
16,434
|
17,030
|
-
|
|||||||||||
Commercial and industrial
|
108
|
2,114
|
2,222
|
124,703
|
126,925
|
-
|
||||||||||||
Consumer and other
|
81
|
-
|
81
|
22,640
|
22,721
|
-
|
||||||||||||
Total Non-Real Estate
|
|
274
|
|
2,625
|
2,899
|
163,777
|
166,676
|
-
|
||||||||||
Total loans before unearned income
|
$
|
7,711
|
$
|
17,824
|
$
|
25,535
|
$
|
629,021
|
$
|
654,556
|
$
|
823
|
||||||
Unearned income
|
(1,271
|
)
|
||||||||||||||||
Total loans net of unearned income
|
$
|
653,285
|
As of December 31, 2012
|
||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
90 Days or Greater Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Recorded Investment 90 Days Accruing
|
||||||||||||
Real estate:
|
||||||||||||||||||
Construction & land development
|
$
|
228
|
$
|
854
|
$
|
1,082
|
$
|
43,774
|
$
|
44,856
|
$
|
-
|
||||||
Farmland
|
96
|
312
|
408
|
10,774
|
11,182
|
-
|
||||||||||||
1 - 4 family
|
4,895
|
5,058
|
9,953
|
77,520
|
87,473
|
455
|
||||||||||||
Multifamily
|
156
|
-
|
156
|
14,699
|
14,855
|
-
|
||||||||||||
Non-farm non-residential
|
1,137
|
11,571
|
12,708
|
300,008
|
312,716
|
-
|
||||||||||||
Total Real Estate
|
6,512
|
17,795
|
24,307
|
446,775
|
471,082
|
455
|
||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
512
|
512
|
17,964
|
18,476
|
-
|
||||||||||||
Commercial and industrial
|
60
|
2,831
|
2,891
|
114,534
|
117,425
|
-
|
||||||||||||
Consumer and other
|
115
|
5
|
120
|
23,638
|
23,758
|
-
|
||||||||||||
Total Non-Real Estate | 175 | 3,348 | 3,523 | 156,136 | 159,659 | - | ||||||||||||
Total loans before unearned income
|
$
|
6,687
|
$
|
21,143
|
$
|
27,830
|
$
|
602,911
|
$
|
630,741
|
$
|
455
|
||||||
Unearned income
|
(1,241
|
)
|
||||||||||||||||
Total loans net of unearned income
|
$
|
629,500
|
in thousands)
|
As of March 31, 2013
|
As of December 31, 2012 | ||||
Real Estate:
|
||||||
Construction & land development
|
$
|
254
|
$ |
854
|
||
Farmland
|
293
|
312
|
||||
1 - 4 family
|
3,594
|
4,603
|
||||
Multifamily
|
-
|
- | ||||
Non-farm non-residential
|
10,235
|
11,571
|
||||
Total Real Estate
|
14,376
|
17,340
|
||||
Non-Real Estate: | ||||||
Agricultural
|
511
|
512
|
||||
Commercial and industrial
|
2,114
|
2,831
|
||||
Consumer and other
|
-
|
5
|
||||
Total Non-Real Estate | 2,625 | 3,348 | ||||
Total Nonaccrual Loans
|
$
|
17,001
|
$ |
20,688
|
As of March 31, 2013
|
As of December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful |
Total
|
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||
Construction & land development
|
$
|
37,723
|
$
|
4,938
|
$
|
6,717
|
$ | - |
$
|
49,378
|
$ |
29,654
|
$ |
5,595
|
$ |
9,607
|
$ | - | $ |
44,856
|
||||||||||
Farmland
|
11,096
|
27
|
29
|
- |
11,152
|
11,059
|
- |
123
|
- |
11,182
|
||||||||||||||||||||
1 - 4 family
|
75,714
|
6,088
|
9,130
|
- |
90,932
|
71,240
|
7,117
|
9,116
|
- |
87,473
|
||||||||||||||||||||
Multifamily
|
5,913
|
155
|
7,952
|
- |
14,020
|
6,746
|
806
|
7,303
|
- |
14,855
|
||||||||||||||||||||
Non-farm non-residential
|
285,838
|
14,003
|
22,557
|
- |
322,398
|
274,970
|
10,605
|
27,141
|
- |
312,716
|
||||||||||||||||||||
Total real estate
|
416,284
|
25,211
|
46,385
|
- |
487,880
|
393,669
|
24,123
|
53,290
|
- |
471,082
|
||||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||||||
Agricultural
|
16,525
|
75
|
430
|
- |
17,030
|
17,969
|
75
|
432
|
- |
18,476
|
||||||||||||||||||||
Commercial and industrial
|
119,666
|
3,037
|
4,222
|
- |
126,925
|
108,590
|
3,834
|
5,001
|
- |
117,425
|
||||||||||||||||||||
Consumer and other
|
22,522
|
130
|
69
|
- |
22,721
|
23,560
|
140
|
58
|
- |
23,758
|
||||||||||||||||||||
Total Non-Real Estate | 158,713 | 3,242 | 4,721 | - | 166,676 | 150,119 | 4,049 | 5,491 | - | 159,659 | ||||||||||||||||||||
Total loans before unearned income
|
$
|
574,997
|
$
|
28,453
|
$
|
51,106
|
$ | - |
$
|
654,556
|
$ |
543,788
|
$ |
28,172
|
$ |
58,781
|
$ | - | $ |
630,741
|
||||||||||
Unearned income
|
(1,271
|
)
|
(1,241
|
) | ||||||||||||||||||||||||||
Total loans net of unearned income
|
$
|
653,285
|
$ |
629,500
|
As of March 31, 2013 | ||||||||||||||||||||||||||||||
Real Estate Loans:
|
Non-Real Estate Loans:
|
|||||||||||||||||||||||||||||
(in thousands)
|
Construction and Land Development
|
Farmland
|
1-4 Family
|
Multi-family
|
Non-farm non-residential
|
Agricultural
|
Commercial and Industrial
|
Consumer and other
|
Unallocated
|
Total
|
||||||||||||||||||||
Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||
Beginning balance (12/31/12)
|
$
|
1,098
|
$
|
50
|
$
|
2,239
|
$
|
284
|
$
|
3,666
|
$
|
64
|
$
|
2,488
|
$
|
233
|
$
|
220
|
$
|
10,342
|
||||||||||
Charge offs
|
(219
|
)
|
-
|
(68
|
)
|
-
|
(898
|
)
|
-
|
(679
|
)
|
(65 | ) |
-
|
(1,929
|
)
|
||||||||||||||
Recoveries
|
1
|
-
|
22
|
-
|
1
|
1
|
4
|
61
|
-
|
90
|
||||||||||||||||||||
Provision
|
338
|
(13
|
)
|
(1
|
) |
-
|
|
246
|
(2
|
) |
182
|
|
(18
|
) |
172
|
904
|
||||||||||||||
Ending Balance
|
$
|
1,218
|
$
|
37
|
$
|
2,192
|
$
|
284
|
$
|
3,015
|
$
|
63
|
$
|
1,995
|
$
|
211
|
$
|
392
|
$
|
9,407
|
As of March 31, 2012 | ||||||||||||||||||||||||||||||
Real Estate Loans:
|
Non-Real Estate Loans:
|
|||||||||||||||||||||||||||||
(in thousands)
|
Construction and Land Development
|
Farmland
|
1-4 Family
|
Multi-family
|
Non-farm non-residential
|
Agricultural
|
Commercial and Industrial
|
Consumer and other
|
Unallocated
|
Total
|
||||||||||||||||||||
Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||
Beginning balance (12/31/11)
|
$
|
1,002
|
$
|
65
|
$
|
1,917
|
$
|
780
|
$
|
2,980
|
$
|
125
|
$
|
1,407
|
$
|
314
|
$
|
289
|
$
|
8,879
|
||||||||||
Charge offs
|
(53
|
)
|
-
|
(71
|
)
|
-
|
-
|
|
(7
|
)
|
(100
|
)
|
(155
|
)
|
-
|
(386
|
)
|
|||||||||||||
Recoveries
|
5
|
-
|
11
|
-
|
106
|
-
|
40
|
97
|
-
|
259
|
||||||||||||||||||||
Provision
|
304
|
32
|
212
|
63
|
191
|
(13
|
) |
290
|
57
|
64
|
|
1,200
|
||||||||||||||||||
Ending Balance
|
$
|
1,258
|
$
|
97
|
$
|
2,069
|
$
|
843
|
$
|
3,277
|
$
|
105
|
$
|
1,637
|
$
|
313
|
$
|
353
|
$
|
9,952
|
As of March 31, 2013 | ||||||||||||||||||||||||||||||
Real Estate Loans: | Non-Real Estate Loans: | |||||||||||||||||||||||||||||
(in thousands)
|
Construction and Land Development | Farmland | 1-4 Family | Multi-family | Non-farm non-residential | Agricultural | Commercial and Industrial | Consumer and other | Unallocated | Total | ||||||||||||||||||||
Allowance individually evaluated for impairment
|
$
|
905
|
$
|
-
|
$
|
33
|
$
|
256
|
$
|
751
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,945
|
||||||||||
Allowance collectively evaluated for impairment
|
|
313
|
|
37
|
|
2,159
|
|
28
|
|
2,264
|
|
63
|
|
1,995
|
|
211
|
|
392
|
|
7,462
|
||||||||||
Allowance at March 31, 2013 | $ | 1,218 | $ | 37 | $ | 2,192 | $ | 284 | $ | 3,015 | $ | 63 | $ | 1,995 | $ | 211 | $ | 392 | $ | 9,407 | ||||||||||
Loans individually evaluated for impairment
|
$ |
6,254
|
$
|
-
|
$
|
1,142
|
$
|
7,953
|
$
|
21,270
|
$
|
-
|
$
|
3,647
|
$
|
-
|
|
|
$ |
40,266
|
||||||||||
Loans collectively evaluated for impairment
|
|
43,124
|
|
11,152
|
|
89,790
|
|
6,067
|
|
301,128
|
|
17,030
|
|
123,278
|
|
22,721
|
|
|
|
614,290
|
||||||||||
Loans at March 31, 2013 (before unearned income) | $ | 49,378 | $ | 11,152 | $ | 90,932 | $ | 14,020 | $ | 322,398 | $ | 17,030 | $ | 126,925 | $ | 22,721 | $ | 654,556 | ||||||||||||
Unearned income
|
(1,271 | ) | ||||||||||||||||||||||||||||
Total loans net of unearned income | $ | 653,285 |
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Real Estate Loans: | Non-Real Estate Loans: | |||||||||||||||||||||||||||||
(in thousands)
|
Construction and Land Development | Farmland | 1-4 Family | Multi-family | Non-farm non-residential | Agricultural | Commercial and Industrial | Consumer and other | Unallocated | Total | ||||||||||||||||||||
Allowance individually evaluated for impairment
|
$
|
713
|
$
|
-
|
$
|
91
|
$
|
244
|
$
|
1,535
|
$
|
-
|
$
|
507
|
$
|
-
|
$
|
-
|
$
|
3,090
|
||||||||||
Allowance collectively evaluated for impairment
|
|
385
|
|
50
|
|
2,148
|
40
|
2,131
|
64
|
1,981
|
233
|
220
|
7,252
|
|||||||||||||||||
Allowance at December 31, 2012 | $ | 1,098 | $ | 50 | $ | 2,239 | $ | 284 | $ | 3,666 | $ | 64 | $ | 2,488 | $ | 233 | $ | 220 | $ | 10,342 | ||||||||||
Loans individually evaluated for impairment
|
$ |
8,865
|
$
|
-
|
$
|
2,126
|
$
|
7,302
|
$
|
25,904
|
$
|
-
|
$
|
4,390
|
$
|
-
|
|
|
$ |
48,587
|
||||||||||
Loans collectively evaluated for impairment
|
35,991
|
11,182
|
85,347
|
7,553
|
286,812
|
18,476
|
113,035
|
23,758
|
|
|
582,154
|
|||||||||||||||||||
Loans at December 31, 2012 (before unearned income) | $ | 44,856 | $ | 11,182 | $ | 87,473 | $ | 14,855 | $ | 312,716 | $ | 18,476 | $ | 117,425 | $ | 23,758 | $ | 630,741 | ||||||||||||
Unearned income | (1,241 | ) | ||||||||||||||||||||||||||||
Total loans net of unearned income | $ | 629,500 |
As of March 31, 2013
|
||||||||||||||||||
(in thousands) |
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
Interest Income Cash Basis | ||||||||||||
Impaired Loans with no related allowance:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
3,168
|
$
|
3,173
|
$
|
-
|
$
|
5,601
|
$
|
892
|
$ | 879 | ||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
440
|
440
|
-
|
568
|
41
|
50 | ||||||||||||
Multifamily
|
650
|
650
|
-
|
166
|
11
|
- | ||||||||||||
Non-farm non-residential
|
3,594
|
4,005
|
-
|
10,655
|
1,145
|
1,147 | ||||||||||||
Total Real Estate
|
7,852
|
8,268
|
-
|
16,990
|
2,089
|
2,076 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
3,647
|
3,651
|
-
|
3,900
|
82
|
161 | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | 3,647 | 3,651 | - | 3,900 | 82 | 161 | ||||||||||||
Total Impaired Loans with no related allowance | 11,499 | 11,919 | - | 20,890 | 2,171 | 2,237 | ||||||||||||
Impaired Loans with an allowance recorded:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
3,086
|
3,086
|
905
|
3,086
|
118
|
105 | ||||||||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
702
|
874
|
33
|
420
|
66
|
66 | ||||||||||||
Multifamily
|
7,303
|
7,303
|
256
|
7,302
|
969
|
961 | ||||||||||||
Non-farm non-residential
|
17,676
|
20,634
|
751
|
14,990
|
1,068
|
1,015 | ||||||||||||
Total real estate
|
28,767
|
31,897
|
1,945
|
25,798
|
2,221
|
2,147 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | ||||||||||||
Total Impaired Loans with an allowance recorded | 28,767 | 31,897 | 1,945 | 25,798 | 2,221 | 2,147 | ||||||||||||
Total Impaired Loans
|
$
|
40,266
|
$
|
43,816
|
$
|
1,945
|
$
|
46,688
|
$
|
4,392
|
$ | 4,384 |
As of December 31, 2012
|
||||||||||||||||||
(in thousands) |
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
Interest Income Cash Basis | ||||||||||||
Impaired Loans with no related allowance:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
3,177
|
$
|
3,177
|
$
|
-
|
$
|
4,012
|
$
|
414
|
$ | 404 | ||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
1,516
|
2,176
|
-
|
2,102
|
162
|
73 | ||||||||||||
Multifamily
|
1,351
|
1,351
|
-
|
1,355
|
103
|
110 | ||||||||||||
Non-farm non-residential
|
2,936
|
2,982
|
-
|
5,963
|
427
|
287 | ||||||||||||
Total Real Estate
|
8,980
|
9,686
|
-
|
13,432
|
1,106
|
874 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
3,734
|
3,734
|
-
|
1,098
|
117
|
87 | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | 3,734 | 3,734 | - | 1,098 | 117 | 87 | ||||||||||||
Total Impaired Loans with no related allowance | 12,714 | 13,420 | - | 14,530 | 1,223 | 961 | ||||||||||||
Impaired Loans with an allowance recorded:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
5,688
|
5,688
|
713
|
3,677
|
406
|
418 | ||||||||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
610
|
776
|
91
|
732
|
70
|
67 | ||||||||||||
Multifamily
|
5,951
|
5,951
|
244
|
5,998
|
597
|
593 | ||||||||||||
Non-farm non-residential
|
22,968
|
25,720
|
1,535
|
24,669
|
2,616
|
2,711 | ||||||||||||
Total real estate
|
35,217
|
38,135
|
2,583
|
35,076
|
3,689
|
3,789 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
656
|
656
|
507
|
786
|
94
|
- | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | 656 | 656 | 507 | 786 | 94 | - | ||||||||||||
Total Impaired Loans with an allowance recorded | 35,873 | 38,791 | 3,090 | 35,862 | 3,783 | 3,789 | ||||||||||||
Total Impaired Loans
|
$
|
48,587
|
$
|
52,211
|
$
|
3,090
|
$
|
50,392
|
$
|
5,006
|
$ | 4,750 |
Troubled Debt Restructurings | March 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Accruing Loans | Accruing Loans | |||||||||||||||||||||||
(in thousands) | Current | 30-89 Days Past Due | Nonaccrual | Total TDRs | Current | 30-89 Days Past Due | Nonaccrual | Total TDRs | ||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Construction & land development | $ | - | $ | - | $ | - | $ | - | $ | 2,602 | $ | - | $ | - | $ | 2,602 | ||||||||
Farmland | - | - | - | - | - | - | - | - | ||||||||||||||||
1-4 Family | - | - | - | - | - | - | 1,296 | 1,296 | ||||||||||||||||
Multifamily | 5,951 | - | - | 5,951 | 5,951 | - | - | 5,951 | ||||||||||||||||
Non-farm non residential | 3,007 | - | 324 | 3,331 | 6,103 | - | 678 | 6,781 | ||||||||||||||||
Total Real Estate | 8,958 | - | - | 9,282 | 14,656 | - | 1,974 | 16,630 | ||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | - | ||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | - | - | ||||||||||||||||
Consumer and other | - | - | - | - | - | - | - | - | ||||||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 8,958 | $ | - | $ | 324 | $ | 9,282 | $ | 14,656 | $ | - | $ | 1,974 | $ | 16,630 |
Real Estate Loans:
|
Non-Real Estate Loans: | ||||||||||||||||||||||||||
(in thousands)
|
Construction and Land Development | Farmland | 1-4 family | Multi-family | Non-farm non-residential | Agricultural | Commercial and Industrial | Consumer and other | Total | ||||||||||||||||||
Beginning balance of TDRs (12/31/2012) |
$
|
2,602
|
$ | - | $ |
1,296
|
$ | 5,951 | $ | 6,781 | $ | - | $ | - | $ | - |
$
|
16,630 | |||||||||
New TDRs |
-
|
|
- |
|
-
|
- | - |
|
- | - |
|
- | - | ||||||||||||||
Charge-offs post-modification | - | - | - | - | (355 | ) | - | - | - | (355 | ) | ||||||||||||||||
Transferred to ORE | (1,075 | ) | (1,075 | ) | |||||||||||||||||||||||
Paydowns | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Construction to permanent financing | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Restructured to market terms | (2,602 | ) | - | (221 | ) | - | (3,095 | ) | - | - | - | (5.918 | ) | ||||||||||||||
Ending balance of TDRs (3/31/2013) |
$
|
-
|
$
|
- |
$
|
-
|
$ | 5,951 |
$
|
3,331 |
$
|
- |
$
|
- |
$
|
- |
$
|
9,282 |
(in thousands)
|
March 31, 2013 | December 31, 2012 | ||||
Real Estate Owned Acquired by Foreclosure: | ||||||
Residential | $ | 2,067 | $ | 1,186 | ||
Construction & land development | 1,103 | 1,083 | ||||
Non-farm non-residential | 1,239 | 125 | ||||
Total Other Real Estate Owned and Foreclosed Property | $ | 4,409 | $ | 2,394 |
Contract Amount
|
||||||
(in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||
Commitments to Extend Credit
|
$
|
25,388 |
$
|
26,775
|
||
Unfunded Commitments under lines of credit
|
$
|
79,923 |
$
|
71,423
|
||
Commercial and Standby letters of credit
|
$
|
5,525 |
$
|
5,470
|
(in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||
Securities available for sale measured at fair value
|
$
|
571,634 |
$
|
602,300 | ||
Fair Value Measurements Using:
|
||||||
Quoted Prices in Active Markets For Identical Assets (Level 1)
|
$
|
53,518 |
$
|
20,522 | ||
Significant Other Observable Inputs (Level 2)
|
$
|
509,916 |
$
|
573,071 | ||
Significant Unobservable Inputs (Level 3)
|
$
|
8,200 |
$
|
8,707 |
(in thousands)
|
At March 31, 2013
|
At December 31, 2012
|
||||
Impaired loans measured at fair value
|
$
|
28,767 |
$
|
35,873 | ||
Fair Value Measurements Using:
|
||||||
Quoted Prices in Active Markets For Identical Assets (Level 1)
|
$
|
- |
$
|
- | ||
Significant Other Observable Inputs (Level 2)
|
$
|
8,534 |
$
|
8,563 | ||
Significant Unobservable Inputs (Level 3)
|
$
|
20,233 |
$
|
27,310 | ||
Other real estate owned measured at fair value
|
$
|
4,409 |
$
|
2,394 | ||
Fair Value Measurements Using:
|
||||||
Quoted Prices in Active Markets For Identical Assets (Level 1)
|
$
|
- |
$
|
- | ||
Significant Other Observable Inputs (Level 2)
|
$
|
4,409 |
$
|
2,394 | ||
Significant Unobservable Inputs (Level 3)
|
$
|
- |
$
|
- |
● |
Net income for the first quarter of 2013 and 2012 was $2.1 million and $3.1 million, respectively. Net income to common shareholders after preferred stock dividends was $1.8 million and $2.6 million for the first quarter of 2013 and 2012, with earnings per common share of $0.29 and $0.41, respectively. The decrease in net income for the first quarter of 2013 when compared to the first quarter of 2012 was primarily the result of a decrease in interest income from securities investments. The decrease in interest income on securities is the result of lower volume and lower yield due to investments in shorter term securities.
|
● |
Net interest income for the first quarter of 2013 and 2012 was $9.6 million and $10.9 million, respectively. The net interest margin was 2.85% for the first quarter 2013 and 3.31% for the same period in 2012.
|
● |
The provision for loan losses for the first quarter of 2013 was $0.9 million compared to $1.2 million for the first quarter of 2012.
|
● |
Total assets at March 31, 2013 were $1.4 billion; a decrease of $23.6 million or 1.7% from December 31, 2012. The decrease in assets was primarily from a decrease in deposits.
|
● |
Investment securities totaled $619.6 million at March 31, 2013, a decrease of $41.6 million when compared to $661.2 million at December 31, 2012. At March 31, 2013, available for sale securities, at fair value, totaled $571.6 million; a decrease of $30.7 million when compared to $602.3 million at December 31, 2012. At March 31, 2013, held to maturity securities, at amortized cost, totaled $48.0 million; a decrease of $11.0 million when compared to $58.9 million at December 31, 2012.
|
● |
The net loan portfolio at March 31, 2013 totaled $643.9 million, a net increase of $24.7 million from the December 31, 2012 net loan portfolio of $619.2 million. Loans are reduced by the allowance for loan losses which totaled $9.4 million for March 31, 2013 and $10.3 million for December 31, 2012.
|
● | Total impaired loans decreased $8.3 million at March 31, 2013 to $40.3 million compared to $48.6 million at December 31, 2012. |
● | Loans classified as Troubled Debt Restructurings ("TDRs") decreased $7.3 million to $9.3 million from $16.6 million at December 31, 2012. |
● |
Total deposits decreased $24.8 million or 2.0% at March 31, 2013 compared to December 31, 2012. This decrease is from seasonal fluctuation of public fund deposits.
|
● |
Return on average assets for the three months ended March 31, 2013 and March 31, 2012 was 0.60% and 0.90%, respectively. Return on average common shareholders’ equity, adjusted for preferred stock dividends, for the three months ended March 31, 2013 and March 31, 2012 was 7.69% and 11.57%, respectively. Return on average assets is calculated by dividing annualized net income before preferred dividends by average assets. Return on common shareholders’ equity is calculated by dividing net earnings applicable to common shareholders by average common shareholders’ equity.
|
● | The Company's Board of Directors declared a cash dividend of $0.16 per common share in the first quarter of 2013 and 2012. |
● |
Other real estate increased $2.0 million to $4.4 million at March 31, 2013 from $2.4 million at December 31, 2012. The increase in other real estate owned is due to the additions of a $1.1 million residential property, a $0.3 million residential property, and a $0.8 million commercial property.
|
● |
Book value per common share was $15.05 as of March 31, 2013 compared to $15.06 as of December 31, 2012. The decrease in book value per share is a result of the decrease in the unrealized gain on available for sale securities.
|
● | Preferred stock dividends from participation in the U.S. Treasury's Small Business Lending Fund ("SBLF") decreased $0.2 million to $0.3 million for the first quarter of 2013 compared to $0.5 million for the same period in 2012. The reduction was due to the increase in qualified small business loans. |
(in thousands)
|
March 31, 2013 |
December 31, 2012
|
||||
Nonaccrual loans:
|
||||||
Real Estate:
|
||||||
Construction and land development
|
$
|
254
|
$
|
854
|
||
Farmland
|
293
|
312
|
||||
1 - 4 family residential
|
3,594
|
4,603
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
10,235
|
11,571
|
||||
Total Real Estate | 14,376 | 17,340 | ||||
Non-Real Estate:
|
||||||
Agricultural
|
511
|
512
|
||||
Commercial and industrial
|
2,114
|
2,831
|
||||
Consumer and other
|
-
|
5
|
||||
Total Non-Real Estate | 2,625 | 3,348 | ||||
Total nonaccrual loans
|
17,001
|
20,688
|
||||
Loans 90 days and greater delinquent & accruing:
|
||||||
Real Estate:
|
||||||
Construction and land development
|
-
|
-
|
||||
Farmland
|
-
|
-
|
||||
1 - 4 family residential
|
823
|
455
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
-
|
-
|
||||
Total Real Estate | 823 | 455 | ||||
Non-Real Estate:
|
||||||
Agricultural
|
-
|
-
|
||||
Commercial and industrial
|
-
|
-
|
||||
Consumer and other
|
-
|
-
|
||||
Total Non-Real Estate | - | - | ||||
Total loans 90 days and greater delinquent & accruing
|
823
|
455
|
||||
Total non-performing loans
|
$ |
17,824
|
$ |
21,143
|
||
Real Estate Owned:
|
||||||
Real Estate Loans: | ||||||
Construction and land development
|
1,103
|
1,083
|
||||
Farmland
|
-
|
-
|
||||
1 - 4 family residential
|
2,067
|
1,186
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
1,239
|
125
|
||||
Total Real Estate | 4,409 | 2,394 | ||||
Non-Real Estate Loans:
|
||||||
Agricultural
|
-
|
-
|
||||
Commercial and industrial
|
-
|
-
|
||||
Consumer and other
|
-
|
-
|
||||
Total Non-Real Estate
|
-
|
-
|
||||
Total Real Estate Owned | 4,409 | 2,394 | ||||
Total non-performing assets
|
$
|
22,233
|
$
|
23,537
|
||
Non-performing assets to total loans | 3.40 | % | 3.74 | % | ||
Non-performing assets to total assets | 1.61 | % | 1.67 | % |
(in thousands) | March 31, 2013 |
December 31, 2012
|
||||
Restructured Loans: | ||||||
In Compliance with Modified Terms |
$
|
8,958
|
$
|
14,656
|
||
Past Due 30 through 89 days and still accruing | - | - | ||||
Past Due 90 days and greater and still accruing | - | - | ||||
Nonaccrual | 324 | 221 | ||||
Restructured Loans that subsequently defaulted | - | 1,753 | ||||
Total Restructured Loans | $ | 9,282 | $ | 16,630 |
●
|
past due and nonperforming assets;
|
●
|
specific internal analysis of loans requiring special attention;
|
●
|
the current level of regulatory classified and criticized assets and the associated risk factors with each;
|
●
|
changes in underwriting standards or lending procedures and policies;
|
●
|
charge off and recovery practices;
|
●
|
national and local economic and business conditions;
|
●
|
nature and volume of loans;
|
●
|
overall portfolio quality;
|
●
|
adequacy of loan collateral;
|
●
|
quality of loan review system and degree of oversight by its Board of Directors;
|
●
|
competition and legal and regulatory requirements on borrowers;
|
●
|
examinations of the loan portfolio by federal and state regulatory agencies and examinations;
|
●
|
and review by our internal loan review department and independent accountants.
|
1. |
A $0.7 million charge-off was recorded for a commercial loan secured by accounts receivable and equipment. The loan had a balance of $0.7 million with a specific reserve of $0.5 million at December 31, 2012. Analysis of the credit indicated that additional charges were needed in the first quarter.
|
2. |
A $0.4 million charge-off was recorded for a loan secured by real estate and accounts receivable. This loan had a recorded balance of $0.7 million at December 31, 2012 and a remaining recorded balance of $0.3 million as of March 31, 2013.
|
3. |
A $0.3 million charge-off was recorded for a loan secured by owner occupied real estate that was foreclosed upon in the first quarter of 2013 and moved to other real estate owned. This loan had a recorded balance of $1.3 at December 31, 2012. The balance in other real estate owned was $0.8 million as of March 31, 2013.
|
(in thousands)
|
March 31, 2013 | March 31, 2012 | ||||
Loans: | ||||||
Average outstanding balance
|
$
|
629,753
|
$
|
572,683
|
||
Balance at end of period
|
$
|
653,285
|
$
|
577,233
|
||
Allowance for Loan Losses:
|
||||||
Balance at beginning of year
|
$
|
10,342
|
$
|
8,879
|
||
Charge offs
|
(1,929
|
)
|
(386
|
) | ||
Recoveries
|
90
|
259
|
||||
Provision | 904 | 1,200 | ||||
Balance at end of period
|
$
|
9,407
|
$
|
9,952
|
Increase/(Decrease) | ||||||||||||
(in thousands except for %)
|
March 31, 2013 |
December 31, 2012
|
Amount |
Percent
|
||||||||
Noninterest-bearing demand
|
$
|
190,642
|
$
|
192,232
|
$
|
(1,590
|
) | -0.8 |
%
|
|
||
Interest-bearing demand
|
322,124
|
348,870
|
(26,746
|
) | -7.7 |
%
|
|
|||||
Savings
|
64,510
|
63,062
|
1,448
|
2.3 |
%
|
|
||||||
Time
|
650,514
|
648,448
|
2,066
|
0.3 |
%
|
|
||||||
Total deposits
|
$
|
1,227,790
|
$
|
1,252,612
|
$
|
(24,822
|
) | -2.0 |
%
|
|
(in thousands)
|
March 31, 2013 | ||
Time deposits of less than $100,000 | $ | 222,676 | |
Time deposits of $100,000 through $250,000 | $ | 167,228 | |
Time deposits of more than $250,000 | $ | 260,610 | |
Total Time Deposits | $ | 650,514 |
(in thousands except for %)
|
March 31, 2013 | December 31, 2012 | December 31, 2011 | December 31, 2010 | December 31, 2009 | ||||||||||||||
Total Public Funds | $ | 445,654 | $ | 470,498 | $ | 431,905 | $ | 356,153 | $ | 268,474 | |||||||||
Total Deposits | $ | 1,227,790 | $ | 1,252,612 | $ | 1,207,302 | $ | 1,007,383 | $ | 799,746 | |||||||||
Total Public Funds as a percent of Total Deposits | 36.3 | % | 37.6 | % | 35.8 | % | 35.4 | % | 33.6 | % |
March 31, 2013 | March 31, 2012 | |||||||||||||||||
(in thousands except for %)
|
Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||
Assets
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||
Interest-earning deposits with banks
|
$
|
78,610 |
$
|
40
|
0.21 |
%
|
$
|
38,799
|
$
|
15
|
0.16 |
%
|
||||||
Securities (including FHLB stock)
|
653,150 | 3,368 | 2.09 |
%
|
673,414
|
5,630
|
3.35 |
%
|
||||||||||
Federal funds sold
|
2,930 |
-
|
- |
%
|
30,936
|
4
|
0.05 |
%
|
||||||||||
Loans, net of unearned income
|
629,753 | 9,096 | 5.86 |
%
|
572,683
|
8,773
|
6.14 |
%
|
||||||||||
Total interest-earning assets
|
$
|
1,364,443 |
$
|
12,504 | 3.72 |
%
|
$
|
1,315,832
|
$
|
14,422
|
4.40 |
%
|
||||||
Noninterest-earning assets:
|
||||||||||||||||||
Cash and due from banks
|
$
|
9,869 |
$
|
10,134
|
||||||||||||||
Premises and equipment, net
|
19,539 |
19,906
|
||||||||||||||||
Other assets
|
7,099 |
13,990
|
||||||||||||||||
Total Assets
|
$
|
1,400,950 |
$
|
1,359,862
|
||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
$
|
341,175 |
$
|
362 | 0.43 |
%
|
$
|
309,948
|
$
|
343
|
0.44 |
%
|
||||||
Savings deposits
|
63,897 |
14
|
0.09 |
%
|
58,115
|
13
|
0.09 |
%
|
||||||||||
Time deposits
|
650,558 | 2,506 | 1.56 |
%
|
676,731
|
3,173
|
1.88 |
%
|
||||||||||
Borrowings
|
15,787 |
38
|
0.98 |
%
|
16,163
|
39
|
0.97 |
%
|
||||||||||
Total interest-bearing liabilities
|
$
|
1,071,417 |
$
|
2,920 | 1.11 |
%
|
$
|
1,060,957
|
$
|
3,568
|
1.35 |
%
|
||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
$
|
189,832 |
$
|
164,808
|
||||||||||||||
Other
|
5,096 |
5,459
|
||||||||||||||||
Total Liabilities
|
$
|
1,266,345 |
$
|
1,231,224
|
||||||||||||||
Stockholders' equity
|
$ | 134,605 | $ |
128,638
|
||||||||||||||
Total Liabilities and Stockholders'
|
$
|
1,400,950 |
$
|
1,359,862
|
||||||||||||||
Net interest income
|
$
|
9,584 |
$
|
10,854
|
||||||||||||||
Net interest rate spread (1)
|
2.61 |
%
|
3.05 |
%
|
||||||||||||||
Net interest-earning assets (2)
|
$
|
293,026 |
$
|
254,875
|
||||||||||||||
Net interest margin (3)
|
2.85 |
%
|
3.31 |
%
|
||||||||||||||
Average interest-earning assets to interest-bearing liabilities
|
127.3 |
%
|
124.02 |
%
|
(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. |
(in thousands) |
As of March 31, 2013
|
As of March 31, 2012
|
||||
Other noninterest expense:
|
||||||
Legal and professional fees
|
$
|
522
|
$
|
487
|
||
Data processing
|
498
|
305
|
||||
Marketing and public relations
|
244
|
175
|
||||
Taxes - sales, capital, and franchise
|
147
|
181
|
||||
Operating supplies
|
159
|
145
|
||||
Travel and lodging
|
145
|
130
|
||||
Net costs from other real estate and repossessions
|
267 | 419 | ||||
Regulatory assessment | 476 | 203 | ||||
Other
|
739
|
914
|
||||
Total other expense
|
$
|
3,197
|
$
|
2,959
|
March 31, 2013
|
|||||||||||||||
Interest Sensitivity Within
|
|||||||||||||||
(in thousands except for %)
|
3 Months Or Less
|
Over 3 Months thru 12 Months
|
Total One Year
|
Over One Year
|
Total | ||||||||||
Earning Assets:
|
|||||||||||||||
Loans (including loans held for sale) | $ |
177,798
|
$
|
99,268
|
$
|
277,066
|
$
|
376,219
|
$
|
653,285
|
|||||
Securities (including FHLB stock)
|
47,129
|
4,699
|
51,828
|
568,333
|
620,161
|
||||||||||
Federal Funds Sold
|
2,773
|
-
|
2,773
|
-
|
2,773
|
||||||||||
Other earning assets
|
67,513
|
-
|
67,513
|
-
|
67,513
|
||||||||||
Total earning assets
|
$
|
295,213
|
$
|
103,967
|
$
|
399,180
|
$
|
944,552
|
$
|
1,343,732
|
|||||
Source of Funds:
|
|||||||||||||||
Interest-bearing accounts:
|
|||||||||||||||
Demand deposits
|
$
|
322,124
|
$
|
-
|
$
|
322,124
|
$
|
-
|
$
|
322,124
|
|||||
Savings deposits
|
64,510
|
-
|
64,510
|
-
|
64,510
|
||||||||||
Time deposits
|
169,368
|
230,243
|
399,611
|
250,903
|
650,514
|
||||||||||
Short-term borrowings
|
14,674
|
-
|
14,674
|
-
|
14,674
|
||||||||||
Long-term borrowings
|
150
|
450
|
600
|
350
|
950
|
||||||||||
Noninterest-bearing, net
|
-
|
-
|
-
|
290,960
|
290,960
|
||||||||||
Total source of funds
|
$
|
570,826
|
$
|
230,693
|
$
|
801,519
|
$
|
542,213
|
$
|
1,343,732
|
|||||
Period gap
|
$
|
(275,613
|
)
|
$
|
(126,726
|
)
|
$
|
(402,339
|
)
|
$
|
402,339
|
||||
Cumulative gap
|
$
|
(275,613
|
)
|
$
|
(402,339
|
)
|
$
|
(402,339
|
)
|
$
|
-
|
||||
Cumulative gap as a percent of earning assets
|
-20.5
|
%
|
-29.9
|
%
|
-29.9
|
%
|
"Well Capitalized Minimums"
|
As of March 31, 2013
|
As of December 31, 2012 | |||||||
Tier 1 Leverage Ratio
|
|||||||||
Consolidated
|
5.00
|
%
|
8.98
|
%
|
9.24 | % | |||
Bank
|
5.00
|
%
|
9.01
|
%
|
9.34 | % | |||
Tier 1 Risk-based Capital Ratio
|
|||||||||
Consolidated
|
6.00
|
%
|
14.03
|
%
|
14.13 | % | |||
Bank
|
6.00
|
%
|
14.07
|
%
|
14.29 | % | |||
Total Risk-based Capital Ratio
|
|||||||||
Consolidated
|
10.00
|
%
|
15.09
|
%
|
15.31 | % | |||
Bank
|
10.00
|
%
|
15.14
|
%
|
15.47 | % |
Exhibit
|
|
Number
|
Exhibit
|
14.0
|
Code of Ethics
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
FIRST GUARANTY BANCSHARES, INC.
|
||
Date: May 13, 2013
|
By: /s/ Alton B. Lewis
|
|
Alton B. Lewis
|
||
Principal Executive Officer
|
||
Date: May 13, 2013
|
By: /s/ Eric J. Dosch
|
|
Eric J. Dosch
|
||
Principal Financial Officer
|
||
Secretary and Treasurer
|
I, Alton B. Lewis, certify that:
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of First Guaranty Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
I, Eric J. Dosch, certify that:
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of First Guaranty Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Basis of Presentation
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles. The consolidated financial statements and the footnotes of First Guaranty Bancshares, Inc. (the "Company") thereto should be read in conjunction with the audited financial statements and note disclosures for the Company previously filed with the Securities and Exchange Commission in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2012. The consolidated financial statements include the accounts of First Guaranty Bancshares, Inc. and its wholly owned subsidiary First Guaranty Bank. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of the consolidated financial statements. Those adjustments are of a normal recurring nature. The results of operations for the three month periods ended March 31, 2013 and 2012 are not necessarily indicative of the results expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the allowance for loan losses, valuation of goodwill, intangible assets and other purchase accounting adjustments. |