First Guaranty Bancshares, a Louisiana bank with 21 branches and $1.5 billion in assets, filed on Friday with the SEC to raise up to $75 million in a public offering on the NASDAQ. The company currently trades on the OTCQB under the symbol FGBI.
Business
First Guaranty was founded in 1934 and recapitalized in 1993 when a private investor investor group led by Chairman Marshall Reynolds invested $3.6 million. Since then, it has grown from six branches with $159 million in assets to 21 branches with $1.5 billion in assets (50% in loans, 46% in investment securities). The company's loan portfolio is comprised of non-farm non-residential real estate (47%), residential real estate (17%) and non-real estate commercial and industrial (21%).
Its primary markets in Louisiana include the MSAs of Hammond, Baton Rouge, Lafayete and Shreveport-Bossier City. First Guaranty has paid quarterly dividends for 85 consecutive quarters, and in 2013 distributed $0.64 per share. Primary shareholders include Marshall Reynolds and family, Director William Hood, Daniel Harrington and Director Edgar Smith.
2014 Louisiana bank IPO and peer Investar Holding (ISTR) has fallen 7% since its June offering.
Recent financials
Combined net interest and noninterest income increased 10% to $24 million. Net income rose 41% to $5 million due to higher loan interest income, lower interest expense and a lower provision for loan losses. Its higher net income was partially offset by lower securities gains.
ROA improved 15 bps to 0.76% and ROE rose 310 bps to 12.0%. Its efficiency ratio improved 170 bps to 63.9%, which is over 5 percentage points higher than it was in 2012 and 2011. The company's year-to-date tangible book value per share is $14.61, up from $12.70 in 2013 and $14.36 in 2012.
The Hammond, LA-based company, which was founded in 1934 and booked $23 million in net interest and noninterest income for the 12 months ended , plans to list on the NASDAQ under the symbol FGBI. Raymond James is the sole bookrunner on the deal. No pricing terms were disclosed.
