First Guaranty Bancshares, Inc. · NASDAQ:FGBI
First Guaranty Bancshares — Investor Presentation (March 2017)
32 slides from First Guaranty Bancshares's investor presentation, Mar 27, 2017
Slide 1: First Guaranty Bancshares, Inc. Investor Presentation
First Guaranty Bancshares, Inc. Investor Presentation March 2017 Financial Information as of December 31, 2016 unless otherwise noted
Slide 2: Disclosures
Disclosures This presentation has been prepared by First Guaranty Bancshares, Inc. (the “Company”) solely for informational purposes based on its own information, as well as information from public sources. This presentation has been prepared to assist interested parties in making their own evaluati
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,
Slide 5: Summary Financial Overview
Summary Financial Overview a . 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: Snapshot (Then and Now)
Dollars in millions Snapshot (Then and Now) Metrics 1993 Bee Total Assets: $1,500.9 Net Loans: $937.8 Book Value Per Share’: $39.54 Branches 21 Corporate Timeline First Guaranty Announces Announces acq ‘ion of Announces 94" consecutive Bank founded in acquisition of Homestead Bancorp, Inc. acquisiti
Slide 7: Historical Book Value/Share Growth
Historical BV/Share Growth Excluding the Impact of Stock Splits and Stock Dividends Historical Book Value/Share Growth $45.00 4 39.54 $40.00 $35.00 $30.00 + ay $25.00 per $20.00 + $15.00 $10.00 + §5.00 43.70 | | | $0.00 iL _a _ _ _s ff = 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20
Slide 8: Cash Dividends on Common Stock
Cash Dividends on Common Stock (in Thousands) $5,000 + 4,870 $4,000 $3,000 4 $2,000 $1,000 200 $0 + ¥ ‘ ¥ — T : : ; 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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: Market Opportunity and Branch Locations
Market Opportunity and Branch Locations ci 5 7 co} ea if Fi cI is isle rowed Scerhaa Nf = ae : : Ee aie oo gigs 4 ‘ 6 = Pics. Valley ° Mons onto, + Major transportation hub we _._#eShreveport ——~ ston gy SS Motwoe y + Distribution hub for Wal-Mart and Winn Dixie Sy al ee he dgeand + Home of Southeas
Slide 11: Market Opportunity and Branch Locations
Market Opportunity and Branch Locations Yaro0 Cy Shreveport MSA 09, * Diversified economy; employment services, government, ae, education, and wholesale / retail trade F ws... Agen + Barksdale Air Force Base is largest employer with 10,284 Baily Ki bu 4 ‘se * Contains Las Vegas-style gaming industry
Slide 12: Branch Footprint
Branch Footprint bullied! © First Guaranty (21) + 8 offices (including headquarters) Farrer _jBaswop i 6 + 35.3% deposit market share (Ranked | ay ad ie 7 + Includes all of Tangipahoa Parish | fdgehnd / age Winnsboro 7 5 offices pe af * 1.2% deposit market share (Ranked es #3)" {om ee Is =< Shrevepo
Slide 13: Premier Bancshares Branch Footprint
Premier Bancshares Branch Footprint Dallas / Forth Worth * 5 offices * Dallas Metro Area is the 4" Largest in U.S. * Population over 7 million * Fort Worth Population: 812,238 * Garland Population: 235,501 * Mckinney Population : 156,767 * Waco Population: 130,194 * Denton Population: 128,205
Slide 14: 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 dig
Slide 15: Community Involvement
Community Involvement * 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 co
Slide 16: Products & Services
Products & Services Consumer Loans & Mortgages Agricultural Loans 1-4 Family Multifamily Customer Offerings Commercial Loans = cal : Owner Occupied MiBY Interactive Teller Machine MyFGB App
Slide 17: August 2016 Flood
August 2016 Flood Resilient Strong Determined
Slide 18: + Population: 67,472"
+ Population: 67,472" + Median age: 31.8 years! + Median Household Income: $47,103? + One of the fastest growing school districts in LA? wre cencus gov 2 won bossierschools. ore a7
Slide 19: 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 20: 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% PT aul Source: Company filings,
Slide 21: Increasing Earnings Power
Increasing Earnings Power AGR $16,000 athe $46,000 > $45,495 $14,121 $14,093 $14,000 $45,000 $44,000 + $12,000 $10,830 $43.000\4 $42,536 $10,000 $42,000 + $8,000 $41,000 + $39,787 $6,000 $40,000 + $39,000 + $4,000 $38,000 | $2,000 $37,000 + $0 + - 7 ] $36,000 ++ 2014 2015 2016 2014 2015 2016 Net Int
Slide 22: Loan Portfolio
Loan Portfolio Consumer & Other, 6.6% $949 Farmland, 2.2% $1,000 $900 4 $800 $700 | $790 $842 | $600 | $500 | | | Agricultural, 2.5% $0 — $400 2014 2015 2016 Multifamily, 1.3% $300 $200 $100 Total Gross Loans: $948.9 million Yield on Loans: 5.16% Non-farm Non-residential CRE Portfolio (12/31/2016) L
Slide 23: First Guaranty Loan Portfolio Credit Quality
First Guaranty Loan Portfolio Credit Quality 1.80% 1.67% oy 0.50% — g.45% 0.45% 9.44% 1.60% =| 1.51% 1.48% 0% 0.38% 1.40% 1.27% 0.40% 1.20% = 099% oso E 1.00% Es =| — = 0.23% 0.80% =| = 0.20% =I =| = 0.60% = = = — z =| 0.40% — =| eS 0.10% — 0.20% = = SS E =| = = = = = = | =| 0.00% 0.00% 2012 2013 20
Slide 24: Deposits
D) its Individual and Business Deposits at 12/31/16" Individual and Business Deposits at 12/31/15" | Total Deposits: $723.3 million | Total Deposits: $752.2 million ¢ Expanded lower cost non-maturity deposits year over year. (2) Individual and Business Deposits based on average balances, excluding P
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 Securities as Percentage of Balance Sheet Loan / Deposit Improvement 45.0% 42.2% bei a16% — 37.4% _ —s 64.9%
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 72% of deposits currently used to fund loans as of December 31, 2016 Loans grew by $107.3MM Investment portfolio is positioned to efficiently fund loan growt
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 ¢ Leverage existing branch footprint to increase deposit market share — New lo
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 * Chairman has long history of creating shareholder value, and both he and the board are fully a
Slide 29: Appendix
Appendix append
Slide 30: Historical Balance Sheets
Historical Balance Sheets (ola in thousands) Assets (cath and due from banks 43,812 93,342 60219 44.365 35,680 37840 Fageral funds :ols 68,630 2891 665 210 582 27 (cath and cash equivalents 712,482 36.233 eiaee as7s 7272 eat Jnterertearing time daposite with bank ° 747 747 30247 997 ° Available fors
Slide 31: Historical Income Statements
Historical Income Statements (Dollars in thousands) Year Ended December 31, 2012 2013 “Income Statement | Interest Income 54,609 55,195 50,886 53,297 56,079 58,532 Interest Expense 15,18, 13,1220 11334 9,202 8,608 10,140 Net interest income 39,491 22,075 39,752 144,095 a7 ATL 48,392 Provision for Lo
Slide 32: Reconciliation of Non GAAP Financial Measures
Reconciliation of Non GAAP Financial Measures ‘At December 31, 2013 ‘Tangible common equity Total stockholders’ equity $126,602 $134,181 $123,405 $139,583 sa1s.224 $124,349 Adjustments: Series C preferred stock (39,435) (39,435) (39,435) (39,435) ° ° Goodwill (2,999) (2,999) (2,999) (2,999) (2,999)
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