EXHIBIT 99.1
APRIL 26, 2023
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
First Guaranty Bancshares, Inc. Announces First Quarter 2023 Results
Hammond, Louisiana, April 26, 2023 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the quarter ending March 31, 2023.
Extraordinary! That is the only word that is appropriate for the performance of First Guaranty Bank. In a time in which the “experts” are all about gloom and doom in the banking industry, extraordinary describes the performance of First Guaranty Bank.
Our loan interest income for the first quarter of 2023 totaled $38,149,000 compared to $35,579,000 for the fourth quarter of 2022 and $28,038,000 for the first quarter of 2022. Yes, our interest expense has significantly reduced our net income; however, that impact has been greatly reduced in the past few months as our loan income has risen to offset the rise in interest expense. As we enter the back side of this cycle, we have already moved past the worst period and should be benefiting greatly.
Our total deposits have grown to $2,862,588 for the quarter ending March 31, 2023 compared to $2,623,935 for the quarter ending March 31, 2022.
We have shown that we can not only survive this “gloom and doom;” but that we can thrive.
Our strength is further shown as our acquisition of Lone Star Bank in Houston continues to move forward through the regulatory process. Additionally, we have received preliminary approval from the City of Fate in Rockwall County for our branch plans in Fate, Texas. Between Lone Star and Fate, we will double our presence in the Texas markets. We are not stopping there. We will continue to seek out growth opportunities to better serve our customers and shareholders.
We recently paid our 119th consecutive quarterly cash dividend. Extraordinary is the right word. We appreciate your support of our efforts. We will continue to build First Guaranty Bank and to build a fortress balance sheet.
Thank you for your attention.
Sincerely,
Alton B. Lewis
President and CEO
First Guaranty, Bancshares, Inc.
About First Guaranty
First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates thirty-six locations throughout Louisiana, Texas, Kentucky and West Virginia. First Guaranty’s common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact which represent our current judgement about possible future events. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or otherwise revise any forward-looking statements.
Important Information and Where to Find It
This Report does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed acquisition by First Guaranty of Lone Star. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
In connection with the proposed Transaction, First Guaranty has filed with the SEC a Registration Statement on Form S-4, as amended, that includes a proxy statement of Lone Star and a prospectus of First Guaranty (as may be further amended or supplemented from time to time, the “Proxy Statement/Prospectus”), and First Guaranty may file with the SEC other relevant documents concerning the proposed Transaction. The definitive Proxy Statement/Prospectus will be mailed to shareholders of Lone Star. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY FIRST GUARANTY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST GUARANTY, FGB, LONE STAR AND THE PROPOSED TRANSACTION.
Free copies of the Proxy Statement/Prospectus, as well as other filings containing information about First Guaranty, may be obtained at the SEC’s website (http://www.sec.gov) when they are filed by First Guaranty. You will also be able to obtain these documents, when they are filed, free of charge, from First Guaranty at www.fgb.net under the heading “SEC Filings.” Copies of the Proxy Statement/Prospectus can also be obtained, when it becomes available, free of charge, by directing a request to First Guaranty Bancshares, Inc., 400 East Thomas Street, Hammond, Louisiana 70401, Attn: Investor Relations, (985) 375-0343.
Participants in the Solicitation
This Report is not a solicitation of a proxy from any security holder of Lone Star. However, Lone Star and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Lone Star in respect of the proposed Transaction. Information about Lone Star’s directors and executive officers will be contained in the Proxy Statement/Prospectus. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement/Prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||||||||
(in thousands, except share data) | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Cash and due from banks | $ | 168,456 | $ | 82,796 | ||||||||||
Federal funds sold | 479 | 423 | ||||||||||||
Cash and cash equivalents | 168,935 | 83,219 | ||||||||||||
Investment securities: | ||||||||||||||
Available for sale, at fair value | 81,060 | 131,458 | ||||||||||||
Held to maturity, at cost (estimated fair value of $254,284 and $242,560 respectively) | 320,348 | 320,068 | ||||||||||||
Investment securities | 401,408 | 451,526 | ||||||||||||
Federal Home Loan Bank stock, at cost | 4,523 | 6,528 | ||||||||||||
Loans held for sale | — | — | ||||||||||||
Loans, net of unearned income | 2,574,242 | 2,519,077 | ||||||||||||
Less: allowance for credit losses | 31,568 | 23,518 | ||||||||||||
Net loans | 2,542,674 | 2,495,559 | ||||||||||||
Premises and equipment, net | 58,600 | 58,206 | ||||||||||||
Goodwill | 12,900 | 12,900 | ||||||||||||
Intangible assets, net | 4,770 | 4,979 | ||||||||||||
Other real estate, net | 887 | 113 | ||||||||||||
Accrued interest receivable | 15,332 | 13,002 | ||||||||||||
Other assets | 27,767 | 25,315 | ||||||||||||
Total Assets | $ | 3,237,796 | $ | 3,151,347 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing demand | $ | 519,028 | $ | 524,415 | ||||||||||
Interest-bearing demand | 1,531,321 | 1,460,259 | ||||||||||||
Savings | 206,008 | 205,760 | ||||||||||||
Time | 606,231 | 533,358 | ||||||||||||
Total deposits | 2,862,588 | 2,723,792 | ||||||||||||
Short-term advances from Federal Home Loan Bank | 50,000 | 120,000 | ||||||||||||
Short-term borrowings | 20,000 | 20,000 | ||||||||||||
Repurchase agreements | 6,606 | 6,442 | ||||||||||||
Accrued interest payable | 4,608 | 4,289 | ||||||||||||
Long-term advances from Federal Home Loan Bank | 20,000 | — | ||||||||||||
Senior long-term debt | 21,116 | 21,927 | ||||||||||||
Junior subordinated debentures | 15,000 | 15,000 | ||||||||||||
Other liabilities | 9,202 | 4,906 | ||||||||||||
Total Liabilities | 3,009,120 | 2,916,356 | ||||||||||||
Shareholders' Equity | ||||||||||||||
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized | ||||||||||||||
Non-cumulative perpetual; 34,500 issued and outstanding | 33,058 | 33,058 | ||||||||||||
Common stock, $1 par value - 100,600,000 shares outstanding; 10,716,796 shares issued | 10,717 | 10,717 | ||||||||||||
Surplus | 130,093 | 130,093 | ||||||||||||
Retained earnings | 69,622 | 76,351 | ||||||||||||
Accumulated other comprehensive (loss) income | (14,814) | (15,228) | ||||||||||||
Total Shareholders' Equity | 228,676 | 234,991 | ||||||||||||
Total Liabilities and Shareholders' Equity | $ | 3,237,796 | $ | 3,151,347 | ||||||||||
See Notes to Consolidated Financial Statements |
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
(in thousands, except share data) | 2023 | 2022 | ||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||
Loans (including fees) | $ | 38,149 | $ | 28,038 | ||||||||||||||||||||||
Deposits with other banks | 751 | 102 | ||||||||||||||||||||||||
Securities (including FHLB stock) | 2,387 | 2,339 | ||||||||||||||||||||||||
Total Interest Income | 41,287 | 30,479 | ||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||
Demand deposits | 13,049 | 2,276 | ||||||||||||||||||||||||
Savings deposits | 579 | 61 | ||||||||||||||||||||||||
Time deposits | 3,576 | 2,755 | ||||||||||||||||||||||||
Borrowings | 1,782 | 404 | ||||||||||||||||||||||||
Total Interest Expense | 18,986 | 5,496 | ||||||||||||||||||||||||
Net Interest Income | 22,301 | 24,983 | ||||||||||||||||||||||||
Less: Provision for credit losses | 314 | 632 | ||||||||||||||||||||||||
Net Interest Income after Provision for Credit Losses | 21,987 | 24,351 | ||||||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||
Service charges, commissions and fees | 785 | 777 | ||||||||||||||||||||||||
ATM and debit card fees | 825 | 823 | ||||||||||||||||||||||||
Net gains (losses) on securities | — | (17) | ||||||||||||||||||||||||
Net gains (losses) on sale of loans | 12 | (1) | ||||||||||||||||||||||||
Other | 1,082 | 380 | ||||||||||||||||||||||||
Total Noninterest Income | 2,704 | 1,962 | ||||||||||||||||||||||||
Total Business Revenue, Net of Provision for Credit Losses | 24,691 | 26,313 | ||||||||||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 10,004 | 8,980 | ||||||||||||||||||||||||
Occupancy and equipment expense | 2,202 | 2,201 | ||||||||||||||||||||||||
Other | 7,960 | 5,570 | ||||||||||||||||||||||||
Total Noninterest Expense | 20,166 | 16,751 | ||||||||||||||||||||||||
Income Before Income Taxes | 4,525 | 9,562 | ||||||||||||||||||||||||
Less: Provision for income taxes | 1,057 | 1,977 | ||||||||||||||||||||||||
Net Income | 3,468 | 7,585 | ||||||||||||||||||||||||
Less: Preferred stock dividends | 582 | 582 | ||||||||||||||||||||||||
Net Income Available to Common Shareholders | $ | 2,886 | $ | 7,003 | ||||||||||||||||||||||
Per Common Share: | ||||||||||||||||||||||||||
Earnings | $ | 0.27 | $ | 0.65 | ||||||||||||||||||||||
Cash dividends paid | $ | 0.16 | $ | 0.16 | ||||||||||||||||||||||
Weighted Average Common Shares Outstanding | 10,716,796 | 10,716,796 | ||||||||||||||||||||||||
See Notes to Consolidated Financial Statements |
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||
(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 | $ | 72,506 | $ | 751 | 4.20 | % | $ | 231,556 | $ | 102 | 0.18 | % | ||||||||||||||||||||||||||
Securities (including FHLB stock) | 426,625 | 2,387 | 2.27 | % | 434,420 | 2,339 | 2.18 | % | ||||||||||||||||||||||||||||||
Federal funds sold | 431 | — | — | % | 232 | — | — | % | ||||||||||||||||||||||||||||||
Loans held for sale | — | — | — | % | — | — | — | % | ||||||||||||||||||||||||||||||
Loans, net of unearned income (6) | 2,528,622 | 38,149 | 6.12 | % | 2,154,264 | 28,038 | 5.28 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 3,028,184 | $ | 41,287 | 5.53 | % | 2,820,472 | $ | 30,479 | 4.38 | % | ||||||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 19,269 | 18,481 | ||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 58,152 | 58,393 | ||||||||||||||||||||||||||||||||||||
Other assets | 26,737 | 28,589 | ||||||||||||||||||||||||||||||||||||
Total Assets | $ | 3,132,342 | $ | 2,925,935 | ||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 1,488,105 | $ | 13,049 | 3.56 | % | $ | 1,323,532 | $ | 2,276 | 0.70 | % | ||||||||||||||||||||||||||
Savings deposits | 204,271 | 579 | 1.15 | % | 204,008 | 61 | 0.12 | % | ||||||||||||||||||||||||||||||
Time deposits | 561,154 | 3,576 | 2.58 | % | 576,199 | 2,755 | 1.94 | % | ||||||||||||||||||||||||||||||
Borrowings | 120,803 | 1,782 | 5.98 | % | 47,886 | 404 | 3.42 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 2,374,333 | $ | 18,986 | 3.24 | % | 2,151,625 | $ | 5,496 | 1.04 | % | ||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 510,302 | 545,013 | ||||||||||||||||||||||||||||||||||||
Other | 12,749 | 6,839 | ||||||||||||||||||||||||||||||||||||
Total Liabilities | 2,897,384 | 2,703,477 | ||||||||||||||||||||||||||||||||||||
Shareholders' equity | 234,958 | 222,458 | ||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 3,132,342 | $ | 2,925,935 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 22,301 | $ | 24,983 | ||||||||||||||||||||||||||||||||||
Net interest rate spread (1) | 2.29 | % | 3.34 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets (2) | $ | 653,851 | $ | 668,847 | ||||||||||||||||||||||||||||||||||
Net interest margin (3), (4) | 2.99 | % | 3.59 | % | ||||||||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 127.54 | % | 131.09 | % |
(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 2.99% and 3.60% for the above periods ended March 31, 2023 and 2022 respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended March 31, 2023 and 2022 respectively.
(5)Annualized.
(6)Includes loan fees of $1.4 million and $2.1 million for the three months ended March 31, 2023 and 2022 respectively. PPP loan fee income of $5,000 and $0.6 million was recognized for the three months ended March 31, 2023 and 2022 respectively.
The following table summarizes the components of First Guaranty's loan portfolio as of March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022:
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 289,486 | 11.2 | % | $ | 233,091 | 9.2 | % | $ | 204,640 | 8.4 | % | $ | 175,221 | 7.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Farmland | 23,065 | 0.9 | % | 24,823 | 1.0 | % | 24,556 | 1.0 | % | 28,152 | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
1- 4 Family | 385,984 | 14.9 | % | 366,330 | 14.5 | % | 352,501 | 14.5 | % | 310,403 | 13.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 120,620 | 4.7 | % | 119,785 | 4.7 | % | 118,273 | 4.9 | % | 105,454 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-farm non-residential | 1,027,199 | 39.8 | % | 992,929 | 39.3 | % | 981,954 | 40.5 | % | 962,442 | 41.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate | 1,846,354 | 71.5 | % | 1,736,958 | 68.7 | % | 1,681,924 | 69.3 | % | 1,581,672 | 68.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | 40,351 | 1.6 | % | 39,045 | 1.5 | % | 47,642 | 2.0 | % | 37,164 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial(1) | 344,332 | 13.3 | % | 385,279 | 15.3 | % | 365,549 | 15.1 | % | 397,233 | 17.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial leases | 302,450 | 11.7 | % | 317,574 | 12.6 | % | 281,010 | 11.6 | % | 237,560 | 10.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other | 49,157 | 1.9 | % | 47,864 | 1.9 | % | 48,188 | 2.0 | % | 48,448 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Non-Real Estate | 736,290 | 28.5 | % | 789,762 | 31.3 | % | 742,389 | 30.7 | % | 720,405 | 31.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans before unearned income | 2,582,644 | 100.0 | % | 2,526,720 | 100.0 | % | 2,424,313 | 100.0 | % | 2,302,077 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unearned income | (8,402) | (7,643) | (6,986) | (6,339) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans net of unearned income | $ | 2,574,242 | $ | 2,519,077 | $ | 2,417,327 | $ | 2,295,738 |
(1) Includes PPP loans fully guaranteed by the SBA of $5.7 million, $5.9 million, $6.1 million, and $12.0 million at March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.
The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands) | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||
Construction and land development | $ | 221 | $ | 225 | $ | 104 | $ | — | ||||||||||||||||||
Farmland | 677 | 290 | 290 | 290 | ||||||||||||||||||||||
1- 4 family | 6,209 | 3,826 | 3,646 | 3,148 | ||||||||||||||||||||||
Multifamily | — | — | — | — | ||||||||||||||||||||||
Non-farm non-residential | 2,675 | 3,746 | 2,629 | 2,925 | ||||||||||||||||||||||
Total Real Estate | 9,782 | 8,087 | 6,669 | 6,363 | ||||||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||
Agricultural | 1,469 | 1,622 | 1,645 | 1,791 | ||||||||||||||||||||||
Commercial and industrial | 1,026 | 819 | 876 | 864 | ||||||||||||||||||||||
Commercial leases | 1,799 | 1,799 | — | 152 | ||||||||||||||||||||||
Consumer and other | 1,593 | 1,239 | 1,168 | 991 | ||||||||||||||||||||||
Total Non-Real Estate | 5,887 | 5,479 | 3,689 | 3,798 | ||||||||||||||||||||||
Total nonaccrual loans | 15,669 | 13,566 | 10,358 | 10,161 | ||||||||||||||||||||||
Loans 90 days and greater delinquent & accruing: | ||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||
Construction and land development | 190 | 427 | 326 | — | ||||||||||||||||||||||
Farmland | — | — | — | — | ||||||||||||||||||||||
1- 4 family | — | 332 | 359 | 210 | ||||||||||||||||||||||
Multifamily | — | 157 | 13 | — | ||||||||||||||||||||||
Non-farm non-residential | 1,641 | 103 | 318 | 508 | ||||||||||||||||||||||
Total Real Estate | 1,831 | 1,019 | 1,016 | 718 | ||||||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||
Agricultural | — | — | — | — | ||||||||||||||||||||||
Commercial and industrial | 6,244 | 123 | 444 | 123 | ||||||||||||||||||||||
Commercial leases | — | — | — | — | ||||||||||||||||||||||
Consumer and other | — | — | — | — | ||||||||||||||||||||||
Total Non-Real Estate | 6,244 | 123 | 444 | 123 | ||||||||||||||||||||||
Total loans 90 days and greater delinquent & accruing | 8,075 | 1,142 | 1,460 | 841 | ||||||||||||||||||||||
Total non-performing loans | 23,744 | 14,708 | 11,818 | 11,002 | ||||||||||||||||||||||
Real Estate Owned: | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||
Construction and land development | — | — | — | — | ||||||||||||||||||||||
Farmland | — | — | — | — | ||||||||||||||||||||||
1- 4 family | 113 | 113 | 249 | 218 | ||||||||||||||||||||||
Multifamily | — | — | — | — | ||||||||||||||||||||||
Non-farm non-residential | 774 | — | 1,418 | 1,416 | ||||||||||||||||||||||
Total Real Estate | 887 | 113 | 1,667 | 1,634 | ||||||||||||||||||||||
Non-Real Estate Loans: | ||||||||||||||||||||||||||
Agricultural | — | — | — | — | ||||||||||||||||||||||
Commercial and industrial | — | — | — | — | ||||||||||||||||||||||
Commercial leases | — | — | — | — | ||||||||||||||||||||||
Consumer and other | — | — | — | — | ||||||||||||||||||||||
Total Non-Real Estate | — | — | — | — | ||||||||||||||||||||||
Total Real Estate Owned | 887 | 113 | 1,667 | 1,634 | ||||||||||||||||||||||
Total non-performing assets | $ | 24,631 | $ | 14,821 | $ | 13,485 | $ | 12,636 | ||||||||||||||||||
Non-performing assets to total loans | 0.96 | % | 0.59 | % | 0.56 | % | 0.55 | % | ||||||||||||||||||
Non-performing assets to total assets | 0.76 | % | 0.47 | % | 0.44 | % | 0.43 | % | ||||||||||||||||||
Non-performing loans to total loans | 0.92 | % | 0.58 | % | 0.49 | % | 0.48 | % | ||||||||||||||||||
Nonaccrual loans to total loans | 0.61 | % | 0.54 | % | 0.43 | % | 0.44 | % | ||||||||||||||||||
Allowance for credit losses to nonaccrual loans | 201.47 | % | 173.36 | % | 226.57 | % | 232.09 | % |
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 March 31, | At December 31, | |||||||||||||||||||||||||||||||
(in thousands except for share data and %) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Tangible Common Equity | ||||||||||||||||||||||||||||||||
Total shareholders' equity | $ | 228,676 | $ | 234,991 | $ | 223,889 | $ | 178,591 | $ | 166,035 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Preferred | 33,058 | 33,058 | 33,058 | — | — | |||||||||||||||||||||||||||
Goodwill | 12,900 | 12,900 | 12,900 | 12,900 | 12,942 | |||||||||||||||||||||||||||
Acquisition intangibles | 4,181 | 4,355 | 5,051 | 5,815 | 6,527 | |||||||||||||||||||||||||||
Tangible common equity | $ | 178,537 | $ | 184,678 | $ | 172,880 | $ | 159,876 | $ | 146,566 | ||||||||||||||||||||||
Common shares outstanding | 10,716,796 | 10,716,796 | 10,716,796 | 10,716,796 | 10,716,796 | |||||||||||||||||||||||||||
Book value per common share | $ | 18.25 | $ | 18.84 | $ | 17.81 | $ | 16.66 | $ | 15.49 | ||||||||||||||||||||||
Tangible book value per common share | $ | 16.66 | $ | 17.23 | $ | 16.13 | $ | 14.92 | $ | 13.68 | ||||||||||||||||||||||
Tangible Assets | ||||||||||||||||||||||||||||||||
Total Assets | $ | 3,237,796 | $ | 3,151,347 | $ | 2,878,120 | $ | 2,473,078 | $ | 2,117,216 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Goodwill | 12,900 | 12,900 | 12,900 | 12,900 | 12,942 | |||||||||||||||||||||||||||
Acquisition intangibles | 4,181 | 4,355 | 5,051 | 5,815 | 6,527 | |||||||||||||||||||||||||||
Tangible Assets | $ | 3,220,715 | $ | 3,134,092 | $ | 2,860,169 | $ | 2,454,363 | $ | 2,097,747 | ||||||||||||||||||||||
Tangible common equity to tangible assets | 5.54 | % | 5.89 | % | 6.04 | % | 6.51 | % | 6.99 | % |