First Guaranty Bancshares, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with net income rising to $12.4 million, a 35% increase from $9.2 million in 2023. This growth was primarily driven by a $3.7 million increase in net interest income, totaling $88.4 million, alongside a substantial rise in noninterest income, which surged to $24.7 million from $10.6 million the previous year. The company's total assets reached $4.0 billion, marking an 11.8% increase from $3.6 billion in 2023, while total deposits rose by 15.5% to $3.5 billion.
In terms of operational changes, First Guaranty experienced a decrease in total loans, which fell by $54.9 million, or 2.0%, to $2.7 billion. This decline was attributed to strategic decisions to moderate growth in certain loan categories, particularly commercial real estate loans. The company also reported a notable increase in non-performing assets, which rose to $120.4 million, or 3.03% of total assets, compared to $41.7 million, or 1.17%, in the previous year. This increase was largely due to a rise in nonaccrual loans, particularly in the non-farm non-residential and multifamily sectors.
Strategically, First Guaranty has been focusing on enhancing its digital services and expanding its geographic footprint, which now includes branches in Kentucky and West Virginia. The company has also modified its business strategy to emphasize controlled asset growth and improved credit risk management. As part of this strategy, First Guaranty reduced its employee headcount by approximately 20%, or nearly 100 full-time equivalent employees, in an effort to streamline operations and reduce costs.
Looking ahead, First Guaranty expressed a cautious outlook, emphasizing the need to manage its loan portfolio and capital levels effectively. The company plans to continue focusing on residential mortgage lending, consumer lending, and agricultural loans while reducing exposure to commercial real estate loans. The management remains vigilant regarding market conditions and potential economic downturns that could impact asset quality and overall financial performance.
About First Guaranty Bancshares, Inc.
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