Texas Mortgages – Alexandra and Austin http://alexandraandaustin.com/ Tue, 24 May 2022 15:32:43 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://alexandraandaustin.com/wp-content/uploads/2021/05/default1.png Texas Mortgages – Alexandra and Austin http://alexandraandaustin.com/ 32 32 Companies to watch with a housing shortage that should benefit homebuilder stocks https://alexandraandaustin.com/companies-to-watch-with-a-housing-shortage-that-should-benefit-homebuilder-stocks/ Tue, 24 May 2022 12:30:01 +0000 https://alexandraandaustin.com/companies-to-watch-with-a-housing-shortage-that-should-benefit-homebuilder-stocks/ Ariel Skelley | Digital vision | Getty Images The double whammy of a falling stock market and rising interest rates has hit homebuilder stocks this year, driving valuations to rock bottom. These valuations make housing stocks look like the worst house in a bad neighborhood. But in reality, the industry is the cheapest house in […]]]>

Ariel Skelley | Digital vision | Getty Images

The double whammy of a falling stock market and rising interest rates has hit homebuilder stocks this year, driving valuations to rock bottom.

These valuations make housing stocks look like the worst house in a bad neighborhood. But in reality, the industry is the cheapest house in an undervalued neighborhood.

In early April, the average forward price-to-earnings ratio of homebuilder stock prices to projected earnings for 2022 was just four times earnings, the lowest of any sector in the entire stock market American. This ratio fell to 3.5 in mid-May, when the iShares US Home Construction ETF (ITB) was down about 30% year-to-date. Shares of some major manufacturers, such as industry leader DH Horton, have fallen nearly 40% this year.

This decline was triggered, in part, by investors’ assumption that rising mortgage interest rates will hollow out the market by discouraging buyers. Never mind that bidding wars in some buoyant local markets are producing selling prices higher than lenders’ valuations, forcing buyers to find additional cash at closing.

More FA Playbook:

Here’s a look at other stories impacting the financial advisor industry.

This market heat hasn’t stopped investors from selling stocks for fear that rising rates will soon dampen demand. As a result, many of these stocks went from slightly overvalued to significantly undervalued in just a few months.

Still, rumors of impending industry weakness have been greatly exaggerated. The dire state of these stocks is actually an opportunity – reflected in analysts’ lofty price targets – as data indicates that a chronic housing shortage will continue to fuel strong demand, despite higher rates.

Although mortgage rates are expected to continue to rise, they are still quite low and will likely remain so for at least a year or two. Over the past few months, typical 30-year fixed rate mortgage rates have climbed from about 3% to about 5%.

Yet, historically, this is by no means high. Since 2011, rates had rarely fallen below 5%, and many buyers looking for their second or third home recall paying 8% to 9% in 2000 or 10% to 11% a decade earlier. .

Faced with the alternative of soaring apartment rents – in April, up on average more than 25% year-over-year and expected to continue to rise with high inflation – many buyers will no doubt continue to consider home ownership as the best financial option.

Many who already have limited budgets will simply buy cheaper homes, so higher rates can largely suppress demand at the lower end. Low-end, overpriced buyers could be forced to rent, which would benefit builders of multi-family homes.

The current shortage of available housing is expected to continue for a decade. Statistics from the US Census Bureau and Credit Suisse show the extent of this shortage with these readings of key market indicators:

  • Historically, the nation has had a current supply of approximately 1.5 million homes available for purchase. The current inventory of available single-family and multi-family homes – approximately 700,000 – is the lowest in over 40 years.
  • Although homes are now being built at a breakneck pace, the nation has not built enough homes in the past 17 years. Since home construction peaked in 2005 with more than 2 million starts, there have been an average of 500,000 fewer starts per year, resulting in a shortfall of about 3 million homes. This shortage has eased a bit lately, but it could easily take another decade for supply to match demand.
  • Overbuilding before the Great Recession led to an oversupply of nearly 2 million homes, but that supply was exhausted in 2014. The subsequent underbuilding caused supply to plummet in subsequent years, resulting in a shortfall of 3 million homes by 2020. Even with construction picking up speed now, the long period of underbuilding will maintain the supply shortfall for years to come.
  • The age of the US housing stock has exacerbated the shortage. In 2019, the median age of a house in this country was 41 years old. Now it’s 44 – the oldest on record. When evaluating investment opportunities, investors should probably consider small-cap companies, although some of the bigger names are poised to generate good returns over the next two years. Suppliers should also benefit from long-term demand.

Here are a few companies with good growth prospects and low downside risk, as evidenced by fundamentals, price movements, and analyst projections:

  • Meritage Homes (MTH): A builder of single-family homes primarily in the Sunbelt, this small-cap company ($3 billion market cap) was trading at $83 per share in mid-May, but has a one-year average analyst target of $122. .
  • Tri-Point Houses (TPH): Another small-cap company ($2 billion), Tri-Pointe builds single-family homes on the West Coast, in Texas and in the Southeast. Its price target is $30, although as of mid-May the stock was trading at around $20.
  • Lennar (LEN): This large company (market cap, $22 billion) is a single-family and multi-family builder that operates nationwide, but primarily in the Sunbelt. Trading at $74 in mid-May, Lennar has a target of $115.
  • Eagle materials (EXP): With a market capitalization of $5 billion, Eagle produces concrete, wallboard and other building materials. Its price in mid-May was around $125. Price target: $172.
  • Quanex (NX): This small public company (market cap, $600 million) manufactures windows and cabinets. At $32, its price target is a significant jump from its mid-May price of $20. The company’s earnings growth rate is around 12%.
  • Masonite International Corp. (DOOR): Over the past six months, this maker of interior and exterior doors (market cap, $1.9 billion) has had one of the highest year-to-date sales (-27%) of any stocks from highly ranked vendors. Masonite was trading at $85 in mid-May. Price target: $133.

These and various other companies in the industry are poised to grow significantly over the next few months, likely driving their stock prices higher. Eventually, the dark clouds of fear will lift, allowing investors to see the light of sustained market demand.

— By David Sheaff Gilreath, Certified Financial Planner, Partner and CIO of Sheaff Brock Investment Advisors and institutional asset manager Innovative Portfolios.

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States with worst foreclosure rates this year – 24/7 Wall St. https://alexandraandaustin.com/states-with-worst-foreclosure-rates-this-year-24-7-wall-st/ Sun, 22 May 2022 21:00:54 +0000 https://alexandraandaustin.com/states-with-worst-foreclosure-rates-this-year-24-7-wall-st/ Part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act, passed by Congress and signed by President Donald Trump in March 2020, included temporary foreclosure and eviction protections for homeowners holding federally guaranteed mortgages. This emergency regulatory safeguard kept millions of Americans at home during the pandemic’s most economically crippling time. (These are […]]]>

Part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act, passed by Congress and signed by President Donald Trump in March 2020, included temporary foreclosure and eviction protections for homeowners holding federally guaranteed mortgages. This emergency regulatory safeguard kept millions of Americans at home during the pandemic’s most economically crippling time. (These are the states where most people own their homes.)

Thanks to the continued spike in home prices nationwide, many of these borrowers are holding more equity in their homes than before the global virus outbreak. But not everyone emerged above the water from this abstention lifeline.

According to recent analysis by real estate data provider ATTTOM, foreclosure filings hit a post-pandemic high in the first quarter of 2022 at 78,271, up 39% from the previous quarter and 132% from the same period. period last year. To find the states with the most foreclosures, 24/7 Wall St. looked at 2021 and 2022 foreclosure data provided by ATTOM Data Solutions. States are ranked by the number of foreclosures per 100,000 dwellings.

Foreclosure activity is still 57% lower than it was in the first three months of 2020, but the return to normal is fast approaching. Foreclosures have declined in the 12 months to March 2022 in just three states – Alaska and the Dakotas – while foreclosure activity has jumped more than 200% in five states – New York, New Jersey, Colorado, Nevada and Michigan. Foreclosure activity jumped nearly 500% in Nevada and Michigan. Nationally, foreclosure activity increased by 135%.

Chicago, New York, Los Angeles, Houston and Philadelphia had the highest number of foreclosures. For cities with populations under 200,000, the highest foreclosure rates were in Cleveland, Ohio; Atlantic City, New Jersey; Jacksonville, North Carolina; Rockford, Ill.; and Columbia, South Carolina. (See also the city with the highest housing costs of any state.)

In three states — Wyoming, Louisiana and Mississippi — underwater mortgages accounted for between 10% and 17% of all mortgages, the most among the states. An underwater mortgage is when a home is worth less than the money owed on the mortgage.

Here’s the state with the worst foreclosure rate this year

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Airbnb hosts use platform revenue to pay for food, rent and mortgages – but three US states are more lucrative than others https://alexandraandaustin.com/airbnb-hosts-use-platform-revenue-to-pay-for-food-rent-and-mortgages-but-three-us-states-are-more-lucrative-than-others/ Fri, 20 May 2022 18:14:00 +0000 https://alexandraandaustin.com/airbnb-hosts-use-platform-revenue-to-pay-for-food-rent-and-mortgages-but-three-us-states-are-more-lucrative-than-others/ With prices rising everywhere, Airbnb ABNB, -1.42% hosts report that their hosting money has become essential money. More than a third of Airbnb hosts globally said hosting has helped them cover the rising cost of living. The accommodation rental company launched its annual survey this week which examines how users interact with the platform. This […]]]>

With prices rising everywhere, Airbnb ABNB,
-1.42%
hosts report that their hosting money has become essential money.

More than a third of Airbnb hosts globally said hosting has helped them cover the rising cost of living.

The accommodation rental company launched its annual survey this week which examines how users interact with the platform. This year, the survey focuses on global inflation and asks how it affects hosts and guests to use the platform.

While more than 40% of hosts say income earned through the platform is for additional spending, a similar percentage say they depend on that money to make ends meet. As groceries have become more expensive, nearly half of hosts globally said they use income to buy basic necessities such as food.

According to the Food and Agriculture Organization of the United Nations, the FAO Food Index – an index that tracks monthly movements in international prices – increased by almost 30% in April compared to a year ago.

Nearly 45% of respondents say guest money has kept them in their home over the past year, helping with their rent or mortgage payments.

Nearly 45% of respondents say the money has allowed them to stay in their home, helping with their rent or mortgage payments.

The company reports that hosts are making more money as people show greater willingness to travel – a typical host in the US earned a median accommodation income of $13,800 in 2021, up 85% since 2019.

California, Florida and Texas are the top three states – and three of the hottest real estate markets in the country – where new hosts in the US earn the mostgrossing $270 million, $265 million, and $170 million, respectively, last year.

The vacation rental company reported a strong first quarter earlier this year. With a banner year in 2021, the company said its performance showed full recovery from the impact of COVID-19.

On the company’s earnings call, Airbnb chief executive Brian Chesky said, “People are also more confident booking trips further in advance, and we’re seeing strong demand for summer bookings and beyond.”

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FirstClose Plans to Accelerate Growth with $35 Million Investment from Lateral | Business https://alexandraandaustin.com/firstclose-plans-to-accelerate-growth-with-35-million-investment-from-lateral-business/ Tue, 17 May 2022 16:49:44 +0000 https://alexandraandaustin.com/firstclose-plans-to-accelerate-growth-with-35-million-investment-from-lateral-business/ AUSTIN, Texas–(BUSINESS WIRE)–May 17, 2022– FirstClose, Inc., a leading fintech provider of data and workflow solutions for mortgage and real estate lenders nationwide, has closed a $35 million investment from the capital firm of Lateral Investment Management to accelerate its growth products and strategies. FirstClose provides underwriting workflow automation technology, point-of-sale software and data services […]]]>

AUSTIN, Texas–(BUSINESS WIRE)–May 17, 2022–

FirstClose, Inc., a leading fintech provider of data and workflow solutions for mortgage and real estate lenders nationwide, has closed a $35 million investment from the capital firm of Lateral Investment Management to accelerate its growth products and strategies.

FirstClose provides underwriting workflow automation technology, point-of-sale software and data services for the US home equity and mortgage markets. FirstClose will use the funds to expand its growing financial services footprint to leverage real estate data intelligence, industry-leading partners and breakthrough technology to enable lenders to compete and close consumer loans like no other industry solution.

“FirstClose is thrilled to announce this next step in our company’s journey,” said Tedd Smith, co-founder and CEO of FirstClose. “Our mission has always been to improve the way banks and credit unions serve consumers by accelerating loan closing times, increasing loan volumes and reducing costs. This year, as interest rates continue to rise and home equity loan volumes soar, this funding will allow us to continue to innovate faster and deliver a superior customer experience, while delivering end-to-end solutions that are in high demand in today’s ever-evolving lending industry. environment.”

Soaring home prices have made home loan products a clear option for lenders looking to diversify their loan portfolios while creating new revenue streams. The increase in mortgage rates since the beginning of the year has led to a significant increase in additional demand for home equity lines of credit (HELOCs) and other home equity loan products. FirstClose’s new funding is the first institutional investment round in the self-funded company since its inception in 2000.

“Lateral is thrilled to partner with the FirstClose team as it accelerates its growth,” said Stuart Barden, managing director of Lateral Investment Management, a growth capital investment firm based in San Mateo, Calif. . “We believe FirstClose has a critical role to play in streamlining origination, underwriting and closing processes in the $200 billion consumer home loan market.”

Based in Austin, TX, FirstClose provides solutions that dramatically reduce HELOC and mortgage closing times for more than 400 banks and credit unions. Lenders using the FirstClose EquityIQ solution experienced a 35% increase in online applications, a 25% increase in calls, and a 77% reduction in closing time from application to funding. The company has strategic partnerships with MeridianLink and other industry-leading LOS companies to integrate its workflow and data automation solutions into their platforms.

“We want to continue to deliver more value to our customers. Demanding a simple and easy way to get instant feedback on home value, available home equity, and instant loan decision when applying for a HELOC has become a business imperative,” said Tim Smith, co-founder and chief revenue officer of FirstClose. . “We are expanding our sales and customer success teams to serve more customers in the home loan market. By partnering with Lateral, we have found a team that has the skills and experience to support our growth, both organically and through acquisition.

FirstClose recently expanded the leadership team to add Pat Carney as Chief Technology Officer and Kathy Mantych as Senior Vice President of Sales. Carney has over 20 years of industry experience formulating strategies and developing innovative products for the real estate and securities industries, including serving as Chief Innovation Officer and Senior Vice President of strategic partnerships at ClosingCorp. Mantych has been a veteran sales leader in the mortgage banking and financial services industries.

About FirstClose

Founded in 2000 and based in Austin, Texas, FirstClose provides technology solutions to HELOCs and mortgage lenders nationwide. The company’s mission is to increase profitability and reduce costs for mortgage lenders. FirstClose makes this possible by offering systems and relationships that allow lenders to more effectively assist lender’s borrowers, reduce closing costs, and ultimately shorten times to close.

For more information, visit https://firstclose.com/.

About Managing Lateral Investments

Lateral Investment Management is a private investment firm focused on partnering with lower middle market companies facing transformational growth. Lateral provides “institutional first” growth capital ranging from $5 million to $50 million as well as value-added assistance to established companies that can be leaders in fundamental sectors such as manufacturing, business services and infrastructure that is at the intersection of technology and disruptive change. Based in San Mateo, Calif., Lateral believes that profitable and sustainable businesses create a wealth of opportunity for everyone. Lateral embraces the mission of companies that create high-quality jobs, protect the earth, and solve humanity’s problems.

For more information, visit https://lateralim.com/.

Show source version on businesswire.com:https://www.businesswire.com/news/home/20220516006131/en/

CONTACT: FirstClose

Michael Hammond

Marketing Director

Michael.hammond@firstclose.com Lateral Investment Management

Margret Hardardottir

General director

mags@lateralim.com

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: FINANCIAL DATA MANAGEMENT PROFESSIONAL SERVICES SOFTWARE TECHNOLOGY

SOURCE: Lateral Investment Management

Copyright BusinessWire 2022.

PUBLISHED: 05/17/2022 12:49 PM / DISK: 05/17/2022 12:49 PM

http://www.businesswire.com/news/home/20220516006131/en

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Comparison between Republic First Bancorp (NASDAQ:FRBK) and South Plains Financial (NASDAQ:SPFI) https://alexandraandaustin.com/comparison-between-republic-first-bancorp-nasdaqfrbk-and-south-plains-financial-nasdaqspfi/ Mon, 16 May 2022 02:11:14 +0000 https://alexandraandaustin.com/comparison-between-republic-first-bancorp-nasdaqfrbk-and-south-plains-financial-nasdaqspfi/ Republic First Bancorp (NASDAQ:FRBK – Get a rating) and South Plains Financial (NASDAQ: SPFI – Get a rating) are both small cap finance companies, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership. Analyst Recommendations This is […]]]>

Republic First Bancorp (NASDAQ:FRBKGet a rating) and South Plains Financial (NASDAQ: SPFIGet a rating) are both small cap finance companies, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Republic First Bancorp and South Plains Financial, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Republic First Bancorp 0 0 0 0 N / A
Southern Plains Financial 0 0 0 0 N / A

Profitability

This chart compares the net margins, return on equity, and return on assets of Republic First Bancorp and South Plains Financial.

Net margins Return on equity return on assets
Republic First Bancorp 13.94% 7.93% 0.47%
Southern Plains Financial 25.12% 14.56% 1.50%

Risk and Volatility

Republic First Bancorp has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. In comparison, South Plains Financial has a beta of 0.64, suggesting that its stock price is its stock is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

82.8% of Republic First Bancorp shares are held by institutional investors. By comparison, 22.3% of South Plains Financial shares are held by institutional investors. 14.4% of Republic First Bancorp shares are held by insiders of the company. By comparison, 25.9% of South Plains Financial shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Republic First Bancorp and South Plains Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Republic First Bancorp $180.55 million 1.32 $25.18 million $0.33 12.12
Southern Plains Financial $232.51 million 1.82 $58.61 million $3.13 7.66

South Plains Financial has higher revenues and profits than Republic First Bancorp. South Plains Financial is trading at a lower price-to-earnings ratio than Republic First Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

South Plains Financial beats Republic First Bancorp on 8 out of 11 factors compared between the two stocks.

Republic First Bancorp Company Profile (Get a rating)

Republic First Bancorp, Inc. operates as the holding company of Republic First Bank which provides a range of credit and deposit banking products and services to individuals and businesses. It accepts consumer and business deposit accounts, checks, interest-bearing demand accounts, money market accounts, savings accounts, sweepstakes accounts, and individual retirement accounts, as well as certificates of deposit. The Company also offers secured and unsecured commercial, real estate, construction and land development, automobile and home improvement loans; mortgages, home equity and short lines of credit, and other products; and safe deposit box services. As of April 5, 2022, it operated 34 offices located in Atlantic, Burlington, Camden, and Gloucester counties in New Jersey; Bucks, Delaware, Montgomery, and Philadelphia counties in Pennsylvania; and New York County in New York. Republic First Bancorp, Inc. was founded in 1987 and is based in Philadelphia, Pennsylvania.

South Plains Financial Company Profile (Get a rating)

Southern Plains Financial LogoSouth Plains Financial, Inc. operates as a bank holding company for City Bank which provides commercial and consumer financial services to small and medium businesses and individuals. The Company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts and certificates of deposit. The company also offers commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment and insurance loans, as well as goods, services, restaurant and retail loans, to construction and other industries; residential construction loans; and residential loans for 1 to 4 families, car loans and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trusted products and services; investment services; mortgage banking services; online and mobile banking; and debit and credit cards. The company operates 25 full-service banking locations; and 15 loan origination offices located throughout Texas and eastern New Mexico. South Plains Financial, Inc. was founded in 1941 and is headquartered in Lubbock, Texas.



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East Texas Housing Finance Corporation Approves $13.5 Million Housing Renovation | Business https://alexandraandaustin.com/east-texas-housing-finance-corporation-approves-13-5-million-housing-renovation-business/ Fri, 13 May 2022 13:00:00 +0000 https://alexandraandaustin.com/east-texas-housing-finance-corporation-approves-13-5-million-housing-renovation-business/ The East Texas Housing Finance Corporation announced approval for a $13.5 million multi-family housing renovation in Tyler. The transaction closed on April 5 and the project is expected to begin soon, board chairman Danny Buck Davidson said in a press release. The transaction was presented to the board by a developer of the Liberty Arms […]]]>

The East Texas Housing Finance Corporation announced approval for a $13.5 million multi-family housing renovation in Tyler.

The transaction closed on April 5 and the project is expected to begin soon, board chairman Danny Buck Davidson said in a press release.

The transaction was presented to the board by a developer of the Liberty Arms Apartment project in Tyler, which is designed to help low- and moderate-income families obtain safe and healthy housing in accordance with Texas law governing the regional housing finance. society.

“The company has served to facilitate this public-private partnership, which will promote affordable housing in Tyler and Smith County, and similar projects may become possible throughout East Texas as the developer sees the opportunities that arise. ‘offer to him,” Davidson said.

Smith County Judge Nathaniel Moran, who serves on the company’s executive committee, expressed his gratitude for the assistance of Danny Buck Davidson and the company.

The East Texas Housing Corporation serves an area of ​​17 counties in East Texas. Former Harrison County Judge and State Senator Richard Anderson explained that the company was founded in 1981 and serves residents of Anderson, Angelina, Cherokee, Gregg, Harrison, Henderson, Marion, Nacogdoches, Panola, Rains , Rusk, Smith, Tyler, Upshur, Van Zandt and Wood Counties.

Since 1981, the company has provided hundreds of mortgages to first-time home buyers and has been involved in several multi-family housing projects in Smith County. These bond programs provide lower cost financing to financial institutions for owners and also for developer projects, which must be submitted and approved by the Texas Bond Review Board in Austin. Bonds are not an obligation, moral or legal, of the State of Texas or any county or city thereof, and are paid exclusively by apartment owners or developers.

“The company can be approached by developers wanting help with new construction or renovation projects, and they typically focus on major metropolitan areas,” Anderson said. “With interest rates raised by the Federal Reserve, it seems more likely that we will see some of these programs popping up in the less populated areas of the 17-county area, but again, these projects are usually driven by the developer, who organizes the financing of the projects and leads the construction of the project.

The company has a similar project proposed at Longview.

“The Society is grateful for the continued service of Danny Buck Davidson as Chairman, as well as the services of the Executive Committee of the Board of Directors, Ms. Anne Yappen, Richard Manley, Justice Nathaniel Moran, Andy Vinson, as well as members of the council, including Judge Robert Johnston, Earl Commissioner Kenneth Dickson, Robert Warren, Pat Penn, Bart Townsend, County Commission Steve Lindley, Mike Lewis, Clay Allen, Steve Moore, Ryan Cawthon, County Commission John Ross Ashley, Corey Bankhead, Patsy Marshall, Justice Robert Sisk Joel Hale, Brenda Johnson, CD Woodrome, Gary Smith, County Commission Virgil Holland Jr. and Debra Holland,” Anderson said.

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The 10 most lucrative markets for real estate investment — RISMedia https://alexandraandaustin.com/the-10-most-lucrative-markets-for-real-estate-investment-rismedia/ Thu, 12 May 2022 18:15:11 +0000 https://alexandraandaustin.com/the-10-most-lucrative-markets-for-real-estate-investment-rismedia/ The real estate market grew as the COVID-19 pandemic progressed, leaving many people in dire financial straits. Still, homeowners and real estate investors have taken advantage of tough economic times. According to CoreLogic, homeowners with mortgages in the United States increased their equity by $1 trillion between September 2019 and September 2021. COVID-19 has driven […]]]>

The real estate market grew as the COVID-19 pandemic progressed, leaving many people in dire financial straits. Still, homeowners and real estate investors have taken advantage of tough economic times. According to CoreLogic, homeowners with mortgages in the United States increased their equity by $1 trillion between September 2019 and September 2021.

COVID-19 has driven up prices and reduced time on the market for homes, which has had a significant impact on the current state of real estate. That said, many metropolitan areas remain great places to invest in real estate due to continued population and economic growth, especially in the current situation. Here is an overview of the 10 most lucrative markets to invest in real estate:

Raleigh/Durham, North Carolina

The Raleigh/Durham area is one of the best rental real estate investment opportunities in the future with high tech employment in the area’s Research Triangle.

Although a third of Americans rent their homes, Raleigh and Durham have rental rates of 43% and 52%, respectively, partly due to the huge student population, but also the younger generation who come here to work . Other reasons to invest in Raleigh/Durham are:

  • Median home prices in Raleigh and Durham are $340,303 and $304,217, respectively, and have risen significantly over the past year.
  • The Research Triangle offers a wide range of job opportunities; in fact, Raleigh is only second to Austin in terms of tech job opportunities.

Austin, TX

Austin’s housing market is a prescription for success, with low availability, rising prices, high demand and a booming employment sector. Samsung, Tesla and Apple have all benefited greatly from the city’s tax incentives for companies that migrate here, either relocating completely (Tesla) or creating large operations (Apple).

Austin has seen a 45% decrease in relocations since 2020, yet Texas continues to recruit new residents.

  • Austin has an unemployment rate of 4.2%, which is well below the national average.
  • The cost of living in Austin is much lower than in San Francisco.
  • Although rents are steadily increasing, the typical monthly rent remains affordable at $1,431.

Austin’s real estate market is a strong long-term investment, with real estate values ​​up more than 90% since 2012.

Tampa, Florida

If you want to buy a home for less than the national average, any city in Florida is a decent bet, but Tampa tops the list given the growth in urban Tampa jobs over the year. last. Despite COVID-19, the Tampa Bay area managed to gain more than 30,000 jobs last year, fueling strong housing demand.

The Tampa Bay area also has several tourist attractions such as Busch Gardens, an aquarium, a zoo, and the Tampa Riverwalk, as well as close proximity to the beach and a pleasant year-round climate.

Additionally, Florida has no income tax, allowing citizens to keep more of their hard-earned money each year.

Nashville, TN

Nashville has consistently ranked among the top 10 metro areas for job creation and economic growth in recent years and is known for having jobs in a wide range of industries, including health care, manufacturing, tourism and music. The Wall Street Journal ranked Nashville second in job growth in the metro area (after Austin, Texas) and first in the nation for the lowest unemployment rate at the start of 2020.

Nashville is known for its fantastic restaurants, music scene, entertainment and nightlife, in addition to job prospects, but the standard of living is higher in Nashville than in other metropolitan areas such as Atlanta, Georgia , and Charlotte, North Carolina.

Still, home ownership — and a happy lifestyle — is within reach for young professionals with a median income of at least $85,000, making it rare among major metropolitan areas with compelling features. Nashville is also one of the hottest locations for young professionals, making it ideal for real estate investors looking to get into the rental market.

Cleveland, Ohio

Low availability is pushing average asking prices in Cleveland properties above $300,000, however, data shows Cleveland is still reasonably cheap. The average sale price is significantly lower, close to $180,000. Cleveland prices may attract first-time home buyers as more businesses migrate to the cloud.

Jobs, incomes and population are all growing in Cleveland, but the fact that more than half of the city’s residents are renters is especially relevant for real estate investors.

With cheap real estate prices, Ohio would attract both first-time and experienced investors, but with home values ​​up more than 20% from 2020, those looking to buy should do so before the end of 2022 to take advantage of the development of the equity in their property.

Las Vegas, Nevada

During the global recession, the Las Vegas real estate market was erratic, with the worst falls in the country. The nation’s recovery has been rapid, thanks to a variety of factors such as no state taxes, low cost of living, and a diverse business climate. It’s also a simple change for Californians who can work from home.

  • Las Vegas is experiencing unprecedented population growth. According to the last census, its population has increased by 14.53% since 2010. The metropolitan area has approximately 2 million inhabitants.
  • In the United States, Las Vegas is one of the busiest sellers’ markets today.

Phoenix, Arizona

Home values ​​in Phoenix have increased by nearly $100,000 over the past year, from $350,000 in January 2020 to $457,000 in January 2021. This increase is largely due to an increase in asks remote employees and retirees looking for more space for their money.

“While housing prices are slightly above the national average, pay scale data reveals that the cost of living in Phoenix is ​​5% lower than the national average, implying your money will go further. “, says Joshua Blackburn of House in progress.

Phoenix is ​​on the list of “hottest” real estate markets due to a six-digit price increase, but the state’s largest city has a lot to offer its residents. With a growing number of tech jobs, restaurants, and nightlife, it’s clear to see why so many are choosing to move to Phoenix.

Dallas, TX

One of Dallas’ economic strengths is its diverse economy, which generates work for people of all income levels. Renting is cheaper than owning and rental demand has increased significantly in recent years. It has one of the lowest homeownership rates in the country.

  • Dallas’ population is booming; in fact, Frisco, about 20 minutes north of Dallas, is ranked #6 on WalletHub’s ranking of the fastest growing regions in the United States.
  • 9% of city residents rent their apartment or house, compared to a national average of 33%.
  • The average monthly rent in Dallas is $1,276, up 2% from the previous year.

Charlotte, North Carolina

Charlotte’s population and job growth has been fueled by the finance and technology sectors. The city’s 25 colleges and universities also contribute to the city’s youthful population. Property taxes are lower here than in other IT clusters, making it easier to buy a home.

  • Despite a 16.4% increase over the past year, the median home price of $302,570 has remained affordable.
  • Median apartment rent rose 6% to $1,259 per month.
  • It is the most influential banking center in the United States, after New York, and its financial prowess attracts IT investment.

Denver, Colorado

Denver has experienced a tremendous population explosion following the legalization of cannabis, and it is currently growing at a rate of more than 2% per year.

With the housing market extremely competitive throughout the pandemic, Colorado home prices just hit new highs in February 2021, thanks in part to the city’s weakest supply. Even though COVID-19 is having a significant impact on the city’s employment rates, this inventory issue is one of the factors why Denver will outperform the national average for home value growth.

However, if you’re ready to rent, work from home full-time, or compete in a rising market, Denver welcomes the move, consistently ranking high on “best cities to live” lists.

Grant McDonald has over three decades of experience in the real estate industry and over a decade in real estate finance. He is currently Vice President of Corporate Development at 14th Street Capital, America’s leading hard money lender to real estate investors.

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FIRST GUARANTY BANCSHARES, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://alexandraandaustin.com/first-guaranty-bancshares-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Tue, 10 May 2022 19:16:05 +0000 https://alexandraandaustin.com/first-guaranty-bancshares-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The following discussion of First Guaranty's financial condition and results of operations is intended to highlight the significant factors affecting First Guaranty's financial condition and results of operations presented in the consolidated financial statements included in this Form 10-Q. This discussion is designed to provide readers with a more comprehensive view of the operating results […]]]>
The following discussion of First Guaranty's financial condition and results of
operations is intended to highlight the significant factors affecting First
Guaranty's financial condition and results of operations presented in the
consolidated financial statements included in this Form 10-Q. This discussion is
designed to provide readers with a more comprehensive view of the operating
results and financial position than would be obtained from reading the
consolidated financial statements alone. Reference should be made to those
statements for an understanding of the following review and analysis. The
financial data at March 31, 2022 and for the three months ended March 31, 2022
and 2021 have been derived from unaudited consolidated financial statements and
include, in the opinion of management, all adjustments (consisting of normal
recurring accruals and provisions) necessary to present fairly First Guaranty's
financial position and results of operations for such periods.

Special note regarding forward-looking statements


Congress passed the Private Securities Litigation Act of 1995 in an effort to
encourage corporations to provide information about a company's anticipated
future financial performance. This act provides a safe harbor for such
disclosure, which protects us from unwarranted litigation, if actual results are
different from management expectations. This discussion and analysis contains
forward-looking statements and reflects management's current views and estimates
of future economic circumstances, industry conditions, company performance and
financial results. The words "may," "should," "expect," "anticipate," "intend,"
"plan," "continue," "believe," "seek," "estimate" and similar expressions are
intended to identify forward-looking statements. These forward-looking
statements are subject to a number of factors and uncertainties, including,
changes in general economic conditions, either nationally or in our market
areas, that are worse than expected; the ongoing effects of the COVID-19
pandemic on First Guaranty's operations and financial performance; competition
among depository and other financial institutions; inflation and changes in the
interest rate environment that reduce our margins or reduce the fair value of
financial instruments; adverse changes in the securities markets; changes in
laws or government regulations or policies affecting financial institutions,
including changes in regulatory fees and capital requirements; our ability to
enter new markets successfully and capitalize on growth opportunities; our
ability to successfully integrate acquired entities; changes in consumer
spending, borrowing and savings habits; changes in accounting policies and
practices, as may be adopted by the bank regulatory agencies, the Financial
Accounting Standards Board, the Securities and Exchange Commission and the
Public Company Accounting Oversight Board; changes in our organization,
compensation and benefit plans; changes in our financial condition or results of
operations that reduce capital available to pay dividends; increases in our
provision for loan losses and changes in the financial condition or future
prospects of issuers of securities that we own, which could cause our actual
results and experience to differ from the anticipated results and expectations,
expressed in such forward-looking statements. We undertake no obligation to
publicly update any forward looking statement, whether as a result of new
information, future events or otherwise.


                                      -31-
--------------------------------------------------------------------------------

first quarter March 31, 2022 Financial overview


First Guaranty Bancshares is a Louisiana corporation and a financial holding
company headquartered in Hammond, Louisiana. Our wholly-owned subsidiary, First
Guaranty Bank, a Louisiana-chartered commercial bank, provides personalized
commercial banking services primarily to Louisiana and Texas customers through
36 banking facilities primarily located in the MSAs of Hammond, Baton Rouge,
Lafayette, Shreveport-Bossier City, Lake Charles and Alexandria, Louisiana and
Dallas-Fort Worth-Arlington, Waco, Texas and our new Mideast markets in Kentucky
and West Virginia. We emphasize personal relationships and localized decision
making to ensure that products and services are matched to customer needs. We
compete for business principally on the basis of personal service to customers,
customer access to officers and directors and competitive interest rates and
fees.

The financial highlights for the first quarter of 2022 are as follows:


•Total assets increased $32.0 million, or 1.1%, to $2.9 billion at March 31,
2022 when compared with December 31, 2021. Total loans at March 31, 2022 were
$2.2 billion, an increase of $71.8 million, or 3.3%, compared with December 31,
2021. Total deposits were $2.6 billion at March 31, 2022, an increase of $27.4
million, or 1.1%, compared with December 31, 2021. Retained earnings were $61.9
million at March 31, 2022, an increase of $5.3 million compared to $56.7 million
at December 31, 2021. Shareholders' equity was $221.8 million and $223.9 million
at March 31, 2022 and December 31, 2021, respectively.

• Net profit for the first quarter of 2022 and 2021 was $7.6 million and $5.0 millionrespectively, an increase of $2.6 million or 51%.

• Earnings per common share were $0.65 and $0.47 for the first quarter of 2022 and 2021, respectively. The total weighted average number of shares outstanding was 10,716,796 for the three months ended March 31, 2022 and 2021.


•First Guaranty participated in the SBA Paycheck Protection Program ("PPP")
under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The
CARES Act authorized the SBA to guarantee loans under a new 7(a) loan program
known as the PPP. As a qualified SBA lender, we were automatically authorized to
originate PPP loans. The SBA guaranteed 100% of the PPP loans made to eligible
borrowers and will forgive such loans. The program has been conducted in two
phases which First Guaranty classifies as Round 1 loans (originated in 2020) and
Round 2 loans (originated in 2021). As of March 31, 2022, First Guaranty had
remaining Round 1 PPP loans of $4.7 million with deferred fees of $0.1 million
and Round 2 PPP loans of $15.6 million with deferred fees of $0.7 million
remaining. $0.6 million in PPP fees were recognized during the three months
ended March 31, 2022.

•The allowance for loan and lease losses was 1.08% of total loans at March 31,
2022 compared to 1.11% at December 31, 2021. First Guaranty had acquisition
related loan discounts that totaled approximately $1.3 million at March 31,
2022. First Guaranty had $20.2 million at March 31, 2022 of SBA guaranteed PPP
loans that have no related allowance due to the government guarantee in
accordance with regulatory guidance.

• Net interest income for the first quarter of 2022 was $25.0 million compared to
$19.6 million for the same period in 2021.

•The provision for loan losses has been $0.6 million for the first quarter of 2022 and 2021.

• The first guarantee had $1.9 million other real estate owned in March 31, 2022
compared to $2.1 million to December 31, 2021.


•Noninterest income for the first quarter of 2022 was $2.0 million compared to
$2.3 million for the same period in 2021. Excluding the impact of securities
gains, noninterest income for the first quarter of 2022 was $2.0 million
compared to $2.2 million for the first quarter of 2021.

•The net interest margin for the three months ended March 31, 2022 was 3.59%
which was an increase of 34 basis points from the net interest margin of 3.25%
for the same period in 2021. First Guaranty attributed the increase in the net
interest margin in the first quarter of 2022 compared to the same period in 2021
to an improved mix of loans compared to securities and cash along with continued
reduction in First Guaranty's cost of funds. Loans as a percentage of average
interest earning assets decreased to 76.4% at March 31, 2022 compared to 78.2%
at March 31, 2021.

•Investment securities totaled $452.8 million at March 31, 2022, an increase of
$88.6 million when compared to $364.2 million at December 31, 2021. Losses on
the sale of securities for the first quarter of 2022 were $17,000 compared to
gains of $0.1 million for the same period in 2021. At March 31, 2022, available
for sale securities, at fair value, totaled $133.2 million, a decrease of $77.4
million when compared to $210.6 million at December 31, 2021. At March 31, 2022,
held to maturity securities, at amortized cost, totaled $319.6 million, an
increase of $166.0 million when compared to $153.5 million at December 31, 2021.
During the first quarter of 2022, First Guaranty designated $165.8 million of
AFS securities for HTM status.

•Total loans net of unearned income were $2.2 billion, a net increase of $71.8
million from December 31, 2021. Total loans net of unearned income are reduced
by the allowance for loan and lease losses which totaled $24.1 million at
March 31, 2022 and $24.0 million at December 31, 2021, respectively.

• Total impaired loans decreased $3.5 million for $11.5 million to March 31, 2022
compared to $15.0 million to December 31, 2021.

• Unexpected loans decreased $1.6 million for $15.1 million to March 31, 2022
compared to $16.7 million to December 31, 2021.


•First Guaranty is a smaller reporting company and has delayed the adoption of
ASU 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit
Losses on Financial Instruments." First Guaranty uses the incurred loss model
for the calculation of its allowance.

                                      -32-
--------------------------------------------------------------------------------

•Return on average assets for the three months ended March 31, 2022 and 2021 was
1.05% and 0.80%, respectively. Return on average common equity for the three
months ended March 31, 2022 and 2021 was 14.99% and 11.31%, respectively. Return
on average assets is calculated by dividing annualized net income by average
assets. Return on average common equity is calculated by dividing annualized net
income by average common equity.

•Book value per common share was $17.61 as of March 31, 2022 compared to $16.45
as of March 31, 2021. Book value per share was $17.81 per share as of December
31, 2021. The year over year increase was due primarily to an increase in
retained earnings partially offset by changes in accumulated other comprehensive
income ("AOCI"). The year to date change was primarily due to changes in AOCI
partially offset by an increase in retained earnings. AOCI is comprised of
unrealized gains and losses on available for sale securities, including
unrealized losses on available for sale securities at the time of transfer to
held to maturity.

•First Guaranty's Board of Directors declared cash dividends of $0.16 per common
share in the first quarter of 2022. First Guaranty also declared $0.16 per
common share in the first quarter of 2021, which was the equivalent of $0.15 per
share after adjusting for the 10% common stock dividend paid in December 2021.
First Guaranty has paid 115 consecutive quarterly dividends as of March 31,
2022.

• First Guaranty paid preferred share dividends of $0.6 million in the first three months of 2022.



Recent Developments

As disclosed in previous filings by First Guaranty Bancshares, Inc., for
approximately 15 years First Guaranty Bank, a subsidiary of First Guaranty
Bancshares, Inc., utilized an "Employee Stock Grant Program" to incentivize and
reward bank employees for performance. Each quarter, the Board of Directors of
First Guaranty Bank allocated a $75,000 payment to an attorney to be used to
purchase, on the open market, shares of First Guaranty Bancshares, Inc. stock.
Nominations came from managers throughout the Bank for awards to employees which
ranged from clerical through top Management. An average of just over 100
employees received awards, in full ownership with no vesting nor other
requirements, each quarter with an average award of approximately 37 shares per
employee awarded.

The total cost of this program per year was approximately $300,000 with total shares granted of approximately 15,000 shares.


In addition, the same process was utilized by First Guaranty Bancshares, Inc. at
the conclusion of each year for the grant of stock bonuses to members of
Management of First Guaranty Bank, selected by the Board of Directors of First
Guaranty Bancshares, Inc. Those awards averaged approximately $275,000 or 12,500
shares per year.

the SECOND requested information regarding this practice. No process has been instituted; only, a request for information.

                                      -33-
--------------------------------------------------------------------------------

Financial condition

Changes in the financial situation of December 31, 2021 for March 31, 2022

Assets


Total assets at March 31, 2022 were $2.9 billion, an increase of $32.0 million,
or 1.1%, from December 31, 2021. Assets increased primarily due to increases in
investment securities of $88.6 million and net loans of $71.6 million, partially
offset by a decrease in cash and cash equivalents of $129.2 million at March 31,
2022 compared to December 31, 2021.

Loans


Net loans increased $71.6 million, or 3.4%, to $2.2 billion at March 31,
2022 from December 31, 2021. Construction and land development loans
increased $26.2 million principally due to advances on existing construction
lines and new originations. Commercial and industrial loans increased $14.3
million primarily due to new originations. SBA PPP loans totaled $20.2 million
at March 31, 2022 compared to $35.4 million at December 31, 2021. These totals
are included in commercial and industrial loans. Round 1 SBA PPP loans decreased
from $12.7 million at December 31, 2021 to $4.7 million at March 31, 2022 due to
SBA loan forgiveness and payments received. Round 2 SBA PPP loans decreased from
$22.6 million at December 31, 2021 to $15.6 million at March 31, 2022 due to SBA
loan forgiveness and payments received. Commercial lease loan balances increased
$11.3 million primarily due to new lease originations. First Guaranty has
continued to expand its commercial lease portfolio which generally has higher
yields than commercial real estate loans but shorter average lives. Non-farm
non-residential loan balances increased $7.7 million due to new
originations. One-to-four family residential loans increased $5.4
million primarily due to new originations. Multifamily loans increased $3.4
million primarily due to the conversion of existing construction loans to
permanent financing and the origination of new loans. Agricultural loans
increased $2.1 million due to seasonal activity. Consumer and other loans
increased $0.6 million primarily due to new originations. Farmland loans
increased $30,000 primarily due to increases on agricultural loan commitments.
First Guaranty had approximately 5.8% of funded and 1.3% of unfunded commitments
in our loan portfolio to businesses engaged in support or service activities for
oil and gas operations. First Guaranty's hotel and motel portfolio totaled
$161.1 million at March 31, 2022. As part of the management of risks in our loan
portfolio, First Guaranty had previously established an internal guidance limit
of approximately $187.0 million for its hotel and motel portfolio. First
Guaranty had $265.3 million in loans related to our Texas markets at March 31,
2022 which was an increase of $7.5 million or 2.9% from $257.8 million at
December 31, 2021. First Guaranty continues to have significant loan growth
associated with its Texas branches. We anticipate additional growth
opportunities in Texas as it contains four major cities in Austin, Dallas,
Houston, and San Antonio, plus the continued growth and development of these
areas is exceeding that of other areas of the country. Syndicated loans
at March 31, 2022 were $48.9 million, of which $17.9 million were shared
national credits. Syndicated loans increased $1.5 million from $47.4
million at December 31, 2021.

As of March 31, 2022, 66.6% of our loan portfolio was secured by real estate.
The largest portion of our loan portfolio, at 40.0% as of March 31, 2022, was
non-farm non-residential loans secured by real estate. Approximately 32.8% of
the loan portfolio was based on a floating rate tied to the prime rate or LIBOR
as of March 31, 2022. 75.6% of the loan portfolio is scheduled to mature within
five years from March 31, 2022. First Guaranty had $46.4 million in loans that
were priced off of the LIBOR index rate at March 31, 2022. As it is anticipated
that LIBOR will be discontinued after 2022, First Guaranty is reviewing its loan
documents to determine alternative reference rates and does not anticipate there
will be a significant financial statement impact with the transition.

Special mention loans decreased $43.9 million to $94.8 million at March 31, 2022
compared to $138.7 million at December 31, 2021. The decrease in special mention
loans was primarily the result of the upgrade of several loan relationships from
special mention to pass status.

Net loans are reduced by the allowance for loan and lease losses which totaled
$24.1 million at March 31, 2022 and $24.0 million at December 31, 2021. Loan
charge-offs were $0.8 million during the first three months of 2022 and $0.4
million during the same period in 2021. Recoveries totaled $0.3 million during
the first three months of 2022 and $0.1 million during the same period in 2021.
The provision for loan losses totaled $0.6 million for the first three months of
2022 and 2021. See Note 4 of the Notes to Consolidated Financial Statements for
more information on loans and Note 5 for more information on the allowance for
loan and lease losses.



                                      -34-
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Investment security


Investment securities at March 31, 2022 totaled $452.8 million, an increase of
$88.6 million compared to $364.2 million at December 31, 2021. The portfolio
consists of both available for sale (AFS) and held to maturity securities (HTM)
at March 31, 2022. The securities designated as held to maturity are agency and
corporate debt securities that are part of First Guaranty's investment strategy
and public funds collateralization program. We purchase securities for our
investment portfolio to provide a source of liquidity, to provide an appropriate
return on funds invested, to manage interest rate risk and meet pledging
requirements for public funds and borrowings.

The securities portfolio consisted principally of U.S. Government and Government
agency securities, agency mortgage-backed securities, corporate debt securities
and municipal bonds. U.S. government agencies consist of FHLB, Federal Farm
Credit Bank ("FFCB"), Freddie Mac and Fannie Mae obligations. Mortgage-backed
securities that we purchase are issued by Freddie Mac and Fannie Mae. Management
monitors the securities portfolio for both credit and interest rate risk. We
generally limit the purchase of corporate securities to individual issuers to
manage concentration and credit risk. Corporate securities generally have a
maturity of 10 years or less. U.S. Government securities consist of U.S.
Treasury bills that have maturities of less than 30 days. Government agency
securities generally have maturities of 15 years or less. Agency mortgage-backed
securities have stated final maturities of 15 to 20 years.

Our portfolio of securities available for sale totals $133.2 million to March 31, 2022a decrease of $77.4 millioni.e. 36.7%, compared to $210.6 million to
December 31, 2021. The decrease is mainly due to the transfer of AFS securities to the HTM portfolio in the first quarter of 2022.


Our held to maturity securities portfolio totaled $319.6 million at March 31,
2022, an increase of $166.0 million, or 108.1%, compared to $153.5 million at
December 31, 2021. The increase was primarily due to the transfer of AFS
securities to the HTM portfolio in the first quarter of 2022.

At March 31, 2022, $50.9 million, or 11.2%, of the securities portfolio was
scheduled to mature in less than one year. $53.5 million, or 11.8%, of the
securities portfolio, not including collateralized mortgage obligations and
mortgage-backed securities, were scheduled to mature between one and five years.
$94.4 million, or 20.8%, of the securities portfolio, not including
collateralized mortgage obligations and mortgage-backed securities, were
scheduled to mature between five and ten years. Securities, not including
collateralized mortgage obligations and mortgage-backed securities, with
contractual maturity dates over 10 years totaled $253.6 million, or 56.0%, of
the total securities portfolio at March 31, 2022. The average maturity of the
securities portfolio is affected by call options that may be exercised by the
issuer of the securities and are influenced by market interest rates.
Prepayments of mortgages that collateralize mortgage-backed securities also
affect the maturity of the securities portfolio. Based on internal forecasts as
of March 31, 2022, management believes that the securities portfolio has a
forecasted weighted average life of approximately 10.46 years based on the
current interest rate environment. A parallel interest rate shock of 400 basis
points is forecasted to increase the weighted average life of the portfolio to
approximately 10.59 years. The portfolio had an estimated effective duration of
8.76 years at March 31, 2022.

There were no other than temporary credit-related impairments during the three months ended March 31, 2022 or March 31, 2021.

Non-performing assets


Non-performing assets consist of non-performing loans and other real-estate
owned. Non-performing loans (including nonaccruing troubled debt restructurings
described below) are those on which the accrual of interest has stopped or loans
which are contractually 90 days past due on which interest continues to accrue.
Loans are ordinarily placed on nonaccrual status when principal and interest is
delinquent for 90 days or more. However, management may elect to continue the
accrual when the asset is well secured and in the process of collection. It is
our policy to discontinue the accrual of interest income on any loan for which
we have reasonable doubt as to the payment of interest or principal. When a loan
is placed on nonaccrual status, unpaid interest credited to income is reversed.
Nonaccrual loans are returned to accrual status when the financial position of
the borrower indicates there is no longer any reasonable doubt as to the payment
of principal or interest and a reasonable payment performance period is observed
(generally considered six months or longer). Other real estate owned consists of
property acquired through formal foreclosure, in-substance foreclosure or by
deed in lieu of foreclosure.

                                      -35-
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The table below shows the amounts and categories of our non-performing assets as of the dates indicated. (in thousands)

                                                        March 31, 2022         December 31, 2021
Nonaccrual loans:
Real Estate:
Construction and land development                                    $         257          $            530
Farmland                                                                       291                       787
1- 4 family                                                                  3,266                     2,861
Multifamily                                                                      -                         -
Non-farm non-residential                                                     8,172                     8,733
Total Real Estate                                                           11,986                    12,911
Non-Real Estate:
Agricultural                                                                 1,690                     2,302
Commercial and industrial                                                      671                       699
Commercial leases                                                                -                         -
Consumer and other                                                             784                       803
Total Non-Real Estate                                                        3,145                     3,804
Total nonaccrual loans                                                      15,131                    16,715

Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development                                               21                       246
Farmland                                                                         -                         -
1- 4 family                                                                    170                       514
Multifamily                                                                    162                       162
Non-farm non-residential                                                       478                       281
Total Real Estate                                                              831                     1,203
Non-Real Estate:
Agricultural                                                                     -                         -
Commercial and industrial                                                      123                        23
Commercial leases                                                                -                         -
Consumer and other                                                               -                        19
Total Non-Real Estate                                                          123                        42
Total loans 90 days and greater delinquent & accruing                          954                     1,245

Total non-performing loans                                                  16,085                    17,960

Real Estate Owned:
Construction and land development                                                -                         -
Farmland                                                                         -                         -
1- 4 family                                                                    362                       817
Multifamily                                                                      -                         -
Non-farm non-residential                                                     1,492                     1,255
Total Real Estate Owned                                                      1,854                     2,072

Total non-performing assets                                          $      

17,939 $20,032


Non-performing assets to total loans                                          0.80  %                   0.93  %
Non-performing assets to total assets                                         0.62  %                   0.70  %
Non-performing loans to total loans                                           0.72  %                   0.83  %
Nonaccrual loans to total loans                                               0.68  %                   0.77  %
Allowance for loan and lease losses to nonaccrual loans                     159.57  %                 143.76  %



                                      -36-
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At March 31, 2022, nonperforming assets totaled $17.9 million, or 0.62% of total
assets, compared to $20.0 million, or 0.70%, of total assets at December 31,
2021, which represented a decrease of $2.1 million, or 10.4%. The decrease in
non-performing assets occurred primarily due to a reduction nonaccrual loans, 90
day past due and still accruing loans and other real estate owned.

Nonaccrual loans decreased from $16.7 million at December 31, 2021 to $15.1
million at March 31, 2022. The decrease in nonaccrual loans was concentrated
primarily in agricultural, non-farm non-residential and farmland loans.
Nonaccrual loans included $1.3 million in loans with a government guarantee.
These are structured as net loss guarantees in which up to 90% of loss exposure
is covered.

At March 31, 2022, loans 90 days or greater delinquent and still accruing
totaled $1.0 million, a decrease of $0.3 million compared to $1.2 million at
December 31, 2021. The decrease in loans 90 days or greater delinquent and still
accruing was concentrated primarily in one-to four-family, construction and land
development and consumer and other loans.

Other real estate owned at March 31, 2022 totaled $1.9 million, a decrease of
$0.2 million compared to $2.1 million at December 31, 2021. First Guaranty has a
reserve for other real estate owned losses. This reserve totaled $0.7 million at
March 31, 2022 compared to $0.5 million at December 31, 2021.

At March 31, 2022, our largest non-performing assets were comprised of the
following nonaccrual loans, 90 day plus and still accruing loans and other real
estate owned: (1) a non-farm non-residential loan secured by a hotel that
totaled $3.4 million; (2) a non-farm non-residential loan secured by a childcare
facility that totaled $1.7 million; (3) a $1.7 million non-farm non-residential
property included in other real estate owned; (4) a non-farm non-residential
loan secured by a mobile home facility that totaled $1.3 million; (5) a non-farm
non-residential loan secured by a waste treatment facility that totaled $0.9
million; and (6) an agricultural/farmland loan relationship that totaled $0.9
million. The agricultural loan is partially guaranteed by the USDA Farm Service
Agency. First Guaranty subsequently sold the loan note associated with the $3.4
million non-performing hotel loan after March 31, 2022.

Distressed Debt Restructurings


Another category of assets which contribute to our credit risk is troubled debt
restructurings ("TDRs"). A TDR is a loan for which a concession has been granted
to the borrower due to a deterioration of the borrower's financial condition.
Such concessions may include reduction in interest rates, deferral of interest
or principal payments, principal forgiveness and other actions intended to
minimize the economic loss and to avoid foreclosure or repossession of the
collateral. We strive to identify borrowers in financial difficulty early and
work with them to modify to more affordable terms before such loan reaches
nonaccrual status. In evaluating whether to restructure a loan, management
analyzes the long-term financial condition of the borrower, including guarantor
and collateral support, to determine whether the proposed concessions will
increase the likelihood of repayment of principal and interest. TDRs that are
not performing in accordance with their restructured terms and are either
contractually 90 days past due or placed on nonaccrual status are reported as
non-performing loans. Our policy provides that nonaccrual TDRs are returned to
accrual status after a period of satisfactory and reasonable future payment
performance under the terms of the restructuring. Satisfactory payment
performance is generally no less than six consecutive months of timely payments
and demonstrated ability to continue to repay.

Under section 4013 of the Coronavirus Aid, Relief, and Economic Security Act
("CARES Act"), which was signed into law on March 27, 2020 and as subsequently
modified by later legislation, financial institutions had the option to
temporarily suspend certain requirements under U.S. generally accepted
accounting principles related to troubled debt restructurings for a limited
period of time to account for the effects of COVID-19. This provision allowed a
financial institution the option to not apply the guidance on accounting for
troubled debt restructurings to loan modifications, such as extensions or
deferrals, related to COVID-19 made between March 1, 2020 and the earlier of (i)
January 1, 2022 or (ii) 60 days after the end of the COVID-19 national
emergency. The relief could only be applied to modifications for borrowers that
were not more than 30 days past due as of December 31, 2019. First Guaranty
elected to adopt these provisions of the CARES Act.

Here is a summary of loans restructured in TDR at March 31, 2022 and
December 31, 2021:


                                                                                              December 31,
(in thousands)                                                        March 31, 2022              2021
Restructured Loans:
In Compliance with Modified Terms                                   $             -          $          -
Past Due 30 through 89 days and still accruing                                    -                     -
Past Due 90 days and greater and still accruing                                   -                     -
Nonaccrual                                                                        -                 3,382
Restructured Loans that subsequently defaulted                                    -                     -
Total Restructured Loans                                            $             -          $      3,382



At March 31, 2022, we had no outstanding TDRs. The TDR at December 31, 2021 was
a $3.4 million non-farm non-residential loan secured by commercial real estate
that is on nonaccrual. The restructuring of this loan was related to interest
rate and amortization concessions. The loan is secured by a hotel facility. This
loan was not eligible for a CARES Act modification. This loan was no longer
reportable as a TDR at March 31, 2022.

                                      -37-
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Allowance for losses on loans and leases


The allowance for loan and lease losses is maintained to absorb potential losses
in the loan portfolio. The allowance is increased by the provision for loan
losses, offset by recoveries of previously charged-off loans and is decreased by
loan charge-offs. The provision is a charge to current expense to provide for
current loan losses and to maintain the allowance commensurate with management's
evaluation of the risks inherent in the loan portfolio. Various factors are
taken into consideration when determining the amount of the provision and the
adequacy of the allowance. These factors include but are not limited to:

• overdue and non-performing assets;

•specific internal analysis of credits requiring particular attention;

•the current level of classified and criticized regulatory assets and the risk factors associated with each;

•changes in underwriting standards or lending procedures and policies;

• charging and collection practices;

•national and local economic and commercial conditions;

•the nature and volume of loans;

•the overall quality of the portfolio;

• the adequacy of loan guarantees;

•the quality of the loan review system and the degree of oversight by our Board of Directors;

•competition and legal and regulatory requirements imposed on borrowers;

•Federal and state regulator loan portfolio reviews and reviews; and

•Review by our in-house loan review department and independent accountants.


The data collected from all sources in determining the adequacy of the allowance
is evaluated on a regular basis by management with regard to current national
and local economic trends, prior loss history, underlying collateral values,
credit concentrations and industry risks. An estimate of potential loss on
specific loans is developed in conjunction with an overall risk evaluation of
the total loan portfolio. This evaluation is inherently subjective as it
requires estimates that are susceptible to significant revision as new
information becomes available.

The allowance consists of specific, general, and unallocated components. The
specific component relates to loans that are classified as doubtful,
substandard, and impaired. For such loans that are also classified as impaired,
an allowance is established when the discounted cash flows (or collateral value
or observable market price) of the impaired loan is lower than the carrying
value of that loan. The general component covers non-classified loans and
special mention loans and is based on historical loss experience for the past
three years adjusted for qualitative factors described above. An unallocated
component is maintained to cover uncertainties that could affect the estimate of
probable losses.

The balance in the allowance for loan and lease losses is principally influenced
by the provision for loan losses, recoveries, and by net loan loss experience.
Additions to the allowance are charged to the provision for loan losses. Losses
are charged to the allowance as incurred and recoveries on losses previously
charged to the allowance are credited to the allowance at the time recovery is
collected.

The provision for losses on loans and leases has been $24.1 millioni.e. 1.08% of total loans, and 150.1% of non-performing loans at March 31, 2022.

Comparing March 31, 2022 for December 31, 2021there were changes in the specific components of the allocation balance.


A provision for loan losses of $0.6 million was made during the three months
ended March 31, 2022 and 2021. The provisions made were taken to provide for
current loan losses and to maintain the allowance proportionate to risks
inherent in the loan portfolio. First Guaranty's incurred loan loss calculation
method incorporates risk factors in the loan portfolio such as historical loss
rates along with qualitative and quantitative factors. The composition of the
loan portfolio affects the final allowance calculation.


                                      -38-
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Loan portfolio factors in the first three months of 2022 that primarily affected the allowance allocation included the following:


•The loan portfolio risks that changed and affected the allocation of the
allowance were due to changes in historical loss rates, adjustments of certain
qualitative factors to take into account the current estimated impact of
COVID-19 and related economic conditions on borrowers' ability to repay loans
and for allocations to impaired loans within their respective categories. First
Guaranty adjusted allocations within its qualitative and quantitative factors to
account for changes in potential COVID-19 related losses.

•Construction and land development loans increased during the first three months
of 2022 due to advances on existing construction lines of credit and new loan
originations. Several loans previously in this category moved to permanent
financing and are now included in the multifamily loan category as of March 31,
2022. The allowance decrease related to this portfolio was due to changes in the
qualitative analysis of the portfolio related to COVID-19 and improving economic
conditions.

•One-to four-family residential loans increased during the first three months of
2022. The allowance decrease related to this portfolio was due to changes in the
qualitative analysis of the portfolio related to COVID-19 and improving economic
conditions.

• Multi-family loans increased in the first three months of 2022. The allowance related to this portfolio was increased due to the growth of the portfolio which increased by $3.4 million in the first three months of 2022.


•Non-farm non-residential loans increased during the first three months of 2022.
The allowance increase related to this portfolio was due to growth in the
portfolio along with changes in the qualitative analysis of the portfolio
related to COVID-19 and historical loss rates. First Guaranty continues to
maintain a significant allowance for hotel loans based on qualitative factors
primarily related to COVID-19 and related credit ratings for hotel loans.

•Commercial and industrial loans increased during the first three months of
2022. The allowance decrease related to this portfolio was due to the changes in
historical loss rates and changes in the qualitative analysis of the portfolio
related to COVID-19 and improving economic conditions.

•Commercial leases increased during the first three months of 2022. The
allowance decrease related to this portfolio was due to the changes in
historical loss rates and changes in the qualitative analysis of the portfolio
related to COVID-19 and improving economic conditions. Commercial leases grew
during the first three months of 2022 from $246.0 million at December 31, 2021
to $257.3 million at March 31, 2022.

• Consumer and other loans increased in the first three months of 2022. The increase in the related allowance for loan loss balance was primarily due to increased balances.

• First Guaranty continues to monitor acquired loans from the Union acquisition on November 7, 2019. Discounts on loans acquired from the Union were approximately $1.3 million to March 31, 2022.


First Guaranty charged off $0.8 million in loan balances during the first three
months of 2022. The $0.8 million in charged off loans were comprised of smaller
loans and overdrawn deposit accounts.

Other information related to the allowance for loan and lease losses is as
follows:

                                              Three Months Ended       Three Months Ended
   (in thousands)                               March 31, 2022           March 31, 2021
   Loans:
   Average outstanding balance               $         2,154,264      $         1,911,914
   Balance at end of period                  $         2,231,119      $         1,966,432

   Allowance for Loan and Lease Losses:
   Balance at beginning of year              $            24,029      $            24,518
   Charge-offs                                              (836)                    (439)
   Recoveries                                                319                      105
   Provision                                                 632                      608
   Balance at end of period                  $            24,144      $            24,792



                                      -39-
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Deposits


Managing the mix and pricing the maturities of deposit liabilities is an
important factor affecting our ability to maximize our net interest margin. The
strategies used to manage interest-bearing deposit liabilities are designed to
adjust as the interest rate environment changes. We regularly assess our funding
needs, deposit pricing and interest rate outlooks. From December 31,
2021 to March 31, 2022, total deposits increased $27.4 million, or 1.1%, to $2.6
billion. Noninterest-bearing demand deposits increased $23.4 million,
or 4.4%, to $556.0 million at March 31, 2022. The increase in
noninterest-bearing demand deposits was primarily due to growth of compensating
balances associated with new loan originations, existing loan customers, and new
customers as part of First Guaranty's efforts to increase lower cost deposits.
Interest-bearing demand deposits increased $23.8 million, or 1.9%, to $1.3
billion at March 31, 2022. The increase in interest-bearing demand deposits was
primarily concentrated in public funds interest-bearing demand deposits.
Included in the increase in interest-bearing demand deposits were public funds
time deposits that converted into interest-bearing deposits that were primarily
collateralized by reciprocal deposit insurance. Savings deposits increased $3.9
million, or 1.9%, to $205.6 million at March 31, 2022, primarily related to
increases in individual savings deposits. Time deposits decreased $23.6 million,
or 4.0%, to $563.0 million at March 31, 2022, primarily due to the transition of
several public funds customers from time deposits to interest-bearing deposits.

As we seek to strengthen our net interest margin and improve our earnings,
attracting non-interest-bearing or lower cost deposits will be a primary
emphasis. Management will continue to evaluate and update our product mix and
related technology in its efforts to attract additional customers. We currently
offer a number of deposit products that are competitively priced and designed to
attract and retain customers with primary emphasis on noninterest-bearing
deposits and other lower cost deposits. First Guaranty has over $200 million in
time deposits with average rates in excess of 3.00% that are scheduled to mature
during 2022 through 2024 with the majority of the maturities in 2023 and 2024.

As of March 31, 2022, the aggregate amount of outstanding certificates of
deposit in amounts greater than or equal to $250,000 was approximately $151.4
million. At March 31, 2022, approximately $76.9 million of First Guaranty's
certificates of deposit greater than or equal to $250,000 had a remaining term
greater than one year.


                                      -40-
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The following table compares the categories of deposits for the periods indicated.


                                                             For the Three Months Ended
Total Deposits                                                       March 31,                                                                                         For the Years Ended December 31,
                                                                        2022                                                                     2021                                                                       2020
                                                                                           Weighted                                                                     Weighted                                                                 Weighted
(in thousands except for %)                Average Balance          Percent              Average Rate               Average Balance              Percent              Average Rate             Average Balance            Percent              Average Rate
Noninterest-bearing Demand                 $    545,013                 20.6  %                      -  %       $       477,802                      19.8  %                      -  %       $        393,734                 19.2  %                      -  %
Interest-bearing Demand                       1,323,532                 50.0  %                    0.7  %             1,082,922                      45.0  %                    0.7  %                722,433                 35.3  %                    0.8  %
Savings                                         204,008                  7.7  %                    0.1  %               191,967                       8.0  %                    0.1  %                163,332                  8.0  %                    0.2  %
Time                                            576,199                 21.7  %                    1.9  %               655,025                      27.2  %                    2.0  %                767,075                 37.5  %                    2.2  %
Total Deposits                             $  2,648,752                100.0  %                    0.8  %       $     2,407,716                     100.0  %                    0.8  %       $      2,046,574                100.0  %                    1.1  %



                                                         For the Three Months Ended
Individual and Business Deposits                                 March 31,                                                                                         For the Years Ended December 31,
                                                                    2022                                                                     2021                                                                       2020
                                                                                       Weighted                                                                     Weighted                                                                 Weighted
(in thousands except for %)            Average Balance          Percent              Average Rate               Average Balance              Percent              Average Rate             Average Balance            Percent              Average Rate
Noninterest-bearing Demand             $    538,267                 32.6  %                      -  %       $       471,371                      29.7  %                      -  %       $        382,940                 27.5  %                      -  %
Interest-bearing Demand                     406,721                 24.6  %                    1.1  %               390,481                      24.6  %                    1.0  %                280,587                 20.1  %                    1.0  %
Savings                                     164,417                  9.9  %                    0.1  %               154,560                       9.8  %                    0.1  %                127,804                  9.2  %                    0.1  %
Time                                        544,580                 32.9  %                    2.0  %               569,924                      35.9  %                    2.2  %                600,887                 43.2  %                    2.5  %
Total Individual and Business
Deposits                               $  1,653,985                100.0  %                    0.9  %       $     1,586,336                     100.0  %                    1.0  %       $      1,392,218                100.0  %                    1.3  %


                                                            For the Three Months Ended
Public Funds Deposits                                                March 31,                                                                                  For the Years Ended December 31,
                                                                       2022                                                                  2021                                                                 2020
                                              Average                                     Weighted                                                               Weighted                Average                                   

Weighted

(in thousands except for %)                   Balance              Percent              Average Rate            Average Balance           Percent              Average Rate              Balance             Percent              Average Rate
Noninterest-bearing Demand                 $     6,746                  0.7  %                      -  %       $        6,431                  0.8  %                      -  %       $   10,794                  1.7  %                      -  %
Interest-bearing Demand                        916,811                 92.1  %                    0.5  %              692,441                 84.3  %                    0.5  %          441,846                 67.5  %                    0.7  %
Savings                                         39,591                  4.0  %                    0.3  %               37,407                  4.5  %                    0.2  %           35,528                  5.4  %                    0.4  %
Time                                            31,619                  3.2  %                    0.8  %               85,101                 10.4  %                    0.8  %          166,188                 25.4  %                    1.1  %
Total Public Funds  Deposits               $   994,767                100.0  %                    0.5  %       $      821,380                100.0  %                    0.5  %       $  654,356                100.0  %                    0.8  %




                                      -41-
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The following table sets forth the distribution of our time deposit accounts.

           (in thousands)                                   March 31, 2022
           Time deposits of less than $100,000             $       202,537
           Time deposits of $100,000 through $250,000              209,046
           Time deposits of more than $250,000                     151,442
           Total Time Deposits                             $       563,025


The following table shows the maturity of term deposits greater than or equal to $250,000 to March 31, 2022.


(in thousands)                                               March 31, 2022
Due in one year or less                                     $        74,497
Due after one year through three years                               69,970
Due after three years                                                 6,975

Total term deposits greater than or equal to $250,000 $151,442




At March 31, 2022, public funds deposits totaled $979.5 million compared
to $957.9 million at December 31, 2021. Public funds time deposits totaled $31.8
million at March 31, 2022 compared to $31.4 million at December 31, 2021. Public
funds deposits increased due to new balances from existing customers that was
primarily attributed to seasonal fluctuations. First Guaranty has developed a
program for the retention and management of public funds deposits. Since the end
of 2012, First Guaranty has maintained public funds deposits in excess of $400.0
million. These deposits are from public entities such as school districts,
hospital districts, sheriff departments and municipalities. The majority of
these funds are under fiscal agency agreements with terms of three years or
less. Deposits under fiscal agency agreements are generally stable but public
entities may maintain the ability to negotiate term deposits on a specific basis
including with other financial institutions. These deposits generally have
stable balances as we maintain both operating accounts and time deposits for
these entities. There is a seasonal component to public deposit levels
associated with annual tax collections. Public funds will increase at the end of
the year and during the first quarter. In addition to seasonal fluctuations,
there are monthly fluctuations associated with internal payroll and short-term
tax collection accounts for our public funds deposit accounts. Public funds
deposit accounts are collateralized by FHLB letters of credit, by expanded
reciprocal deposit insurance programs, by Louisiana municipal bonds and by
eligible government and government agency securities such as those issued by the
FHLB, FFCB, Fannie Mae, and Freddie Mac. First Guaranty continues to grow the
proportion of its public funds portfolio that is collateralized by reciprocal
deposit insurance as an alternative to pledging securities or utilizing FHLB
letters of credit. First Guaranty initiated this strategy to more efficiently
invest these deposits in higher yielding loans to improve the net interest
margin and earnings. Total public funds collateralized by reciprocal deposit
insurance programs increased to $546.6 million at March 31, 2022 compared to
$496.4 million at December 31, 2021.

The following table presents public funds as a percentage of total deposits.


(in thousands except for %)                      March 31, 2022          

December 31, 2021 December 31, 2020 December 31, 2019

     December 31, 2018
Public Funds:
Noninterest-bearing Demand                      $        6,162          $           5,919          $           5,109          $           9,944          $           6,930
Interest-bearing Demand                                901,194                    882,156                    514,416                    424,732                    364,692
Savings                                                 40,372                     38,432                     36,862                     29,570                     26,903
Time                                                    31,792                     31,365                    158,925                    146,420                    247,004
Total Public Funds                              $      979,520          $         957,872          $         715,312          $         610,666          $         645,529
Total Deposits                                  $    2,623,935          $       2,596,492          $       2,166,318          $       1,853,013          $       1,629,622
Total Public Funds as a percent of Total
Deposits                                                  37.3  %                    36.9  %                    33.0  %                    33.0  %                    39.6  %



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Loans


First Guaranty maintains borrowing relationships with other financial
institutions as well as the Federal Home Loan Bank on a short and long-term
basis to meet liquidity needs. First Guaranty had $16.1 million in short-term
borrowings outstanding at March 31, 2022 compared to $6.4 million at
December 31, 2021. The short-term borrowings at March 31, 2022 were comprised of
a line of credit of $20.0 million, with an outstanding balance of $10.0 million
and repurchase agreements of $6.1 million. The advances outstanding at
December 31, 2021 were comprised of repurchase agreements of $6.4 million. First
Guaranty had a long-term FHLB advance that was acquired from the Union
transaction that totaled $3.2 million at December 31, 2021. This advance was
paid off during the first quarter of 2022. First Guaranty had available lines of
credit of $26.5 million, with $10.0 million outstanding at March 31, 2022. A net
availability of $16.5 million remained.

First Guaranty had senior long-term debt totaling $24.4 million from March 31, 2022 and $25.2 million to December 31, 2021.

First Guaranty also held subordinated subordinated debentures totaling $14.8 million to
March 31, 2022 and December 31, 2021.


First Guaranty had $260.7 million in Federal Home Loan Bank letters of credit as
of March 31, 2022 compared to $250.7 million at December 31, 2021. Federal Home
Loan Bank letters of credit are obtained primarily for collateralizing public
deposits.

Total Shareholders' Equity

Total shareholders' equity decreased to $221.8 million at March 31,
2022 from $223.9 million at December 31, 2021. The decrease in shareholders'
equity was principally the result of a decrease of $7.4 million in accumulated
other comprehensive income, partially offset by an increase of $5.3 million in
retained earnings. The decrease in accumulated other comprehensive income was
primarily attributed to the increase in unrealized losses on available for sale
securities during the three months ended March 31, 2022. The $5.3
million increase in retained earnings was due to net income of $7.6
million during the three months ended March 31, 2022, partially offset by $1.7
million in cash dividends paid on shares of our common stock and $0.6 million in
cash dividends paid on shares of our preferred stock.


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Operating results for the first quarter ended March 31, 2022 and 2021

Performance Summary


Three months ended March 31, 2022 compared to the three months ended March 31,
2021. Net income for the three months ended March 31, 2022 was $7.6 million, an
increase of $2.6 million, or 51.0%, from $5.0 million for the three months ended
March 31, 2021. The increase in net income for the three months ended March 31,
2022 as compared to the prior year period was the result of several factors.
First Guaranty experienced an increase in interest income and a decrease in
interest expense. This was partially offset by an increase in the provision for
loan losses, a decrease in noninterest income and an increase in noninterest
expense. Loan interest income increased due to the growth in First Guaranty's
loan portfolio, including loan fees recognized as an adjustment to yield from
the origination of the SBA guaranteed PPP loans. Securities interest income
increased due to an increase in the average balance of the investment portfolio.
Interest expense declined due to declines in market interest rates and First
Guaranty's plan to reduce interest expense by increasing lower cost deposits and
repricing existing deposits lower. Factors that partially offset the increase in
net income included an increase in the provision due to the growth in the loan
portfolio. Noninterest income decreased primarily due to higher securities
losses and a negative valuation adjustment to the SBA loan servicing asset.
Noninterest expense increased primarily due to increased personnel expenses,
software expense, legal fees, travel expense and higher regulatory assessments
due to increased deposit balances. Earnings per common share for the three
months ended March 31, 2022 was $0.65 per common share, an increase of 38.3% or
$0.18 per common share from $0.47 per common share for the three months ended
March 31, 2021. Earnings per share was affected by the increase in earnings.

Net interest income


Our operating results depend primarily on our net interest income, which is the
difference between interest income earned on interest-earning assets, including
loans and securities, and interest expense incurred on interest-bearing
liabilities, including deposits and other borrowed funds. Interest rate
fluctuations, as well as changes in the amount and type of interest-earning
assets and interest-bearing liabilities, combine to affect net interest income.
First Guaranty's assets and liabilities are generally most affected by changes
in the Federal Funds rate, LIBOR rate, short term Treasury rates such as one
month and three month Treasury bills, and longer term Treasury rates such as the
U.S. ten year Treasury rate. Our net interest income is affected by changes in
the amount and mix of interest-earning assets and interest-bearing liabilities.
There may also be a time lag in the effect of interest rate changes on assets
and liabilities. It is also affected by changes in yields earned on
interest-earning assets and rates paid on interest-bearing deposits and other
borrowed funds.

A financial institution's asset and liability structure is substantially
different from that of a non-financial company, in that virtually all assets and
liabilities are monetary in nature. Accordingly, changes in interest rates may
have a significant impact on a financial institution's performance. The impact
of interest rate changes depends on the sensitivity to the change of our
interest-earning assets and interest-bearing liabilities. The effects of the
changing interest rate environment in recent periods and our interest
sensitivity position is discussed below.

Three months ended March 31, 2022 compared to the three months ended March 31,
2021. Net interest income for the three months ended March 31, 2022 and 2021 was
$25.0 million and $19.6 million, respectively. The increase in net interest
income for the three months ended March 31, 2022 as compared to the prior year
period was primarily due to an increase in the average balance of our total
interest-earning assets, an increase in the average yield of our total
interest-earning assets, and a decrease in the average rate of our total
interest-bearing liabilities, partially offset by an increase in the average
balance of our total interest-bearing liabilities. For the three months
ended March 31, 2022, the average balance of our total interest-earning assets
increased by $375.0 million to $2.8 billion due to increased cash and due
average balances, and strong growth in commercial leases and our other loan
portfolios. The average yield of our interest-earning assets increased by 18
basis points to 4.38% for the three months ended March 31, 2022 from 4.20% for
the three months ended March 31, 2021 due to an improved mix of higher yielding
assets. For the three months ended March 31, 2022, the average balance of our
total interest-bearing liabilities increased by $227.9 million to $2.2 billion
due to the growth in low cost deposits and the average rate of our total
interest-bearing liabilities decreased by 17 basis points to 1.04% for the three
months ended March 31, 2022 from 1.21% for the three months ended March 31,
2021. As a result, our net interest rate spread increased 35 basis points to
3.34% for the three months ended March 31, 2022 from 2.99% for the three months
ended March 31, 2021. Our net interest margin increased 34 basis points
to 3.59% for the three months ended March 31, 2022 from 3.25% for the three
months ended March 31, 2021.


                                      -44-
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interest income


Three months ended March 31, 2022 compared to the three months ended March 31,
2021. Interest income increased $5.1 million, or 20.3%, to $30.5 million for the
three months ended March 31, 2022 as compared to the prior year period. First
Guaranty's loan portfolio expanded during the first three months of 2022 due to
growth associated with our loan originations, including commercial leases. These
factors contributed to the increase in interest income as the average balance of
our total interest-earning assets, primarily associated with loans increased,
and the average yield of interest-earning assets increased. The average balance
of our interest-earning assets increased $375.0 million to $2.8 billion for the
three months ended March 31, 2022 as compared to the prior year. The average
yield of interest-earning assets increased by 18 basis points to 4.38% for the
three months ended March 31, 2022 compared to 4.20% for the three months ended
March 31, 2021.

Interest income on securities increased $0.8 million to $2.3 million for the
three months ended March 31, 2022 as compared to the prior year period primarily
as a result of an increase in average balances. The average balance of
securities increased $176.7 million to $434.4 million for the three months
ended March 31, 2022 from $257.8 million for the three months ended March 31,
2021 primarily due to an increase in the average balance of our U.S. Treasuries
securities portfolio compared to the prior year. The average yield on securities
decreased 22 basis points to 2.18% for the three months ended March 31,
2022 compared to 2.40% for the three months ended March 31, 2021 due to the
increase in lower yielding Treasury securities.

Interest income on loans increased $4.3 million, or 18.1%, to $28.0 million for
the three months ended March 31, 2022 as compared to the prior year period as a
result of an increase in the average balance and average yield of loans. The
average balance of loans (excluding loans held for sale) increased by $242.4
million to $2.2 billion for the three months ended March 31, 2022 from $1.9
billion for the three months ended March 31, 2021 as a result of new loan
originations. The average yield on loans (excluding loans held for sale)
increased by 24 basis points to 5.28% for the three months ended March 31,
2022 from 5.04% for the three months ended March 31, 2021 due to the improved
mix of loans with an increase in higher yielding commercial leases as a
percentage of the loan portfolio along with an increase in market interest
rates.

Interest charges


Three months ended March 31, 2022 compared to the three months ended March 31,
2021. Interest expense decreased $0.2 million, or 4.2%, to $5.5 million for the
three months ended March 31, 2022 from $5.7 million for the three months
ended March 31, 2021 due primarily to a decrease in market interest rates
partially offset by an increase in the average balance of interest-bearing
liabilities. The average rate of interest-bearing demand deposits was 0.70% for
the three months ended March 31, 2022 and 2021. The average rate of time
deposits decreased 2 basis points during the three months ended March 31,
2022 to 1.94% as compared to the prior year period. The decrease in the average
rate of time deposits was due to First Guaranty's efforts to reprice maturing
time deposits to more attractive and lower rates. Partially offsetting the
decrease in interest expense was an increase in the average balance of
interest-bearing liabilities, which increased by $227.9 million during the three
months ended March 31, 2022 to $2.2 billion as compared to the prior year
period. This increase was a result of a $399.6 million increase in the average
balance of interest-bearing demand deposits and a $28.6 million increase in the
average balance of savings deposits, which were partially offset by a $151.9
million decrease in the average balance of time deposits and a $48.4 million
decrease in the average balance of borrowings.

                                      -45-
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The following tables set forth average balance sheets, average yields and costs,
and certain other information for the periods indicated. No tax-equivalent yield
adjustments were made, as the effect thereof was not material. All average
balances are daily average balances. Non-accrual loans were included in the
computation of average balances, but have been reflected in the tables as loans
carrying a zero yield. The yields set forth below include the effect of deferred
fees, discounts and premiums that are amortized or accreted to interest income
or expense.

The net interest income yield shown below in the average balance sheet is
calculated by dividing net interest income by average interest-earning assets
and is a measure of the efficiency of the earnings from balance sheet
activities. It is affected by changes in the difference between interest on
interest-earning assets and interest-bearing liabilities and the percentage of
interest-earning assets funded by interest-bearing liabilities.
                                                         Three Months Ended March 31, 2022                                    Three Months Ended March 31, 2021
(in thousands except for %)                Average Balance        Interest             Yield/Rate (6)           Average Balance        Interest             Yield/Rate (6)
Assets
Interest-earning assets:
Interest-earning deposits with
banks(1)                                   $    231,556          $    102                         0.18  %       $    275,360          $     66                         0.10  %
Securities (including FHLB stock)               434,420             2,339                         2.18  %            257,763             1,525                         2.40  %
Federal funds sold                                  232                 -                            -  %                448                 -                            -  %
Loans held for sale                                   -                 -                            -  %                  -                 -                            -  %
Loans, net of unearned income(7)              2,154,264            28,038                         5.28  %          1,911,914            23,750                         5.04  %
Total interest-earning assets                 2,820,472          $ 30,479                         4.38  %          2,445,485          $ 25,341                         4.20  %

Noninterest-earning assets:
Cash and due from banks                          18,481                                                               11,656
Premises and equipment, net                      58,393                                                               60,226
Other assets                                     28,589                                                               25,141
Total Assets                               $  2,925,935                                                         $  2,542,508

Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits                            $  1,323,532          $  2,276                         0.70  %       $    923,925          $  1,595                         0.70  %
Savings deposits                                204,008                61                         0.12  %            175,396                52                         0.12  %
Time deposits                                   576,199             2,755                         1.94  %            728,112             3,520                         1.96  %
Borrowings                                       47,886               404                         3.42  %             96,257               572                         2.41  %
Total interest-bearing liabilities            2,151,625          $  5,496                         1.04  %          1,923,690          $  5,739                         1.21  %

Noninterest-bearing liabilities:
Demand deposits                                 545,013                                                              428,310
Other                                             6,839                                                               10,460
Total Liabilities                             2,703,477                                                            2,362,460

Shareholders' equity                            222,458                                                              180,048
Total Liabilities and Shareholders'
Equity                                     $  2,925,935                                                         $  2,542,508
Net interest income                                              $ 24,983                                                             $ 19,602

Net interest rate spread (2)                                                                      3.34  %                                                              2.99  %
Net interest-earning assets (3)            $    668,847                                                         $    521,795
Net interest margin (4), (5)                                                                      3.59  %                                                              3.25  %

Average interest-earning assets to
interest-bearing liabilities                                                                    131.09  %                                                            127.12  %


(1)Includes Federal Reserve balances reporting in cash and due from banks on the
consolidated balance sheets.
(2)Net interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
(3)Net interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
(4)Net interest margin represents net interest income divided by average total
interest-earning assets.
(5)The tax adjusted net interest margin was 3.60% and 3.26% for the above
periods ended March 31, 2022 and 2021, 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, 2022 and 2021, respectively.
(6)Annualized.
(7)Includes loan fees of $2.1 million and $1.3 million for the above periods
ended March 31, 2022 and 2021, respectively. PPP loan fee income of $0.6 million
and $0.2 million was recognized for above periods ended March 31, 2022 and 2021,
respectively.
                                      -46-
--------------------------------------------------------------------------------

Allowance for loan losses


A provision for loan losses is a charge to income in an amount that management
believes is necessary to maintain an adequate allowance for loan and lease
losses. The provision is based on management's regular evaluation of current
economic conditions in our specific markets as well as regionally and
nationally, changes in the character and size of the loan portfolio, underlying
collateral values securing loans, and other factors which deserve recognition in
estimating loan losses. This evaluation is inherently subjective as it requires
estimates that are susceptible to significant revision as more information
becomes available or as future events change.

We recorded a $0.6 million allowance for loan losses for the three months ended
March 31, 2022 and 2021. Total imputations were $0.8 million for the three months ended March 31, 2022 and $0.4 million for the same period in 2021.


We believe that the allowance is adequate to cover potential losses in the loan
portfolio given the current economic conditions, and current expected net
charge-offs and non-performing asset levels. Economic uncertainty may result in
additional increases to the allowance for loan and lease losses in future
periods.

Non-interest income


Our primary sources of recurring noninterest income are customer service fees,
ATM and debit card fees, loan fees, gains on the sales of loans and available
for sale securities and other service fees. Noninterest income does not include
loan origination fees which are recognized over the life of the related loan as
an adjustment to yield using the interest method.

Noninterest income totaled $2.0 million for the three months ended March 31,
2022, a decrease of $0.4 million from $2.3 million for the three months ended
March 31, 2021. The decrease was primarily due to increased losses on securities
sales and a negative valuation adjustment to the SBA loan servicing asset.
Service charges, commissions and fees totaled $0.8 million for the three months
ended March 31, 2022 and $0.7 million for the same period in 2021. ATM and debit
card fees totaled $0.8 million for the three months ended March 31, 2022 and
2021. Net securities losses were $17,000 for the three months ended March 31,
2022 compared to gains of $0.1 million for the same period in 2021. The losses
on securities sales primarily occurred as First Guaranty sold investment
securities in order to fund loan growth and manage interest rate risk. Net
losses on the sale of loans were $1,000 for the three months ended March 31,
2022 and compared to gains of $34,000 for the same period in 2021. Other
noninterest income totaled $0.4 million and $0.6 million for the three months
ended March 31, 2022 and 2021, respectively.


                                      -47-
--------------------------------------------------------------------------------

Non-interest expenses


Noninterest expense includes salaries and employee benefits, occupancy and
equipment expense and other types of expenses. Noninterest expense totaled $16.8
million for the three months ended March 31, 2022 and $15.0 million for the
three months ended March 31, 2021. Salaries and benefits expense totaled $9.0
million for the three months ended March 31, 2022 and $7.5 million for the three
months ended March 31, 2021. The increase was primarily due to the increase in
personnel expense from new hires including those in the Mideast market.
Occupancy and equipment expense totaled $2.2 million for the three months ended
March 31, 2022 and $2.3 million for the same period in 2021. Other noninterest
expense totaled $5.6 million for the three months ended March 31, 2022 and $5.1
million for the same period in 2021.

The following table presents, for the periods indicated, the major categories of
other noninterest expense:

                                                                                 Three Months Ended
                                                                                     March 31,
(in thousands)                                                                             2022               2021
Other noninterest expense:
Legal and professional fees                                                            $     855          $     666
Data processing                                                                              229                540
ATM fees                                                                                     412                422
Marketing and public relations                                                               377                433
Taxes - sales, capital, and franchise                                                        362                343
Operating supplies                                                                           156                225
Software expense and amortization                                                            926                665
Travel and lodging                                                                           245                142
Telephone                                                                                    114                119
Amortization of core deposit intangibles                                                     174                208
Donations                                                                                    156                122
Net costs from other real estate and repossessions                                            94                110
Regulatory assessment                                                                        552                465
Other                                                                                        918                672
Total other noninterest expense                                                        $   5,570          $   5,132



Income Taxes

The amount of income tax expense is influenced by the amount of pre-tax income,
the amount of tax-exempt income and the amount of other non-deductible expenses
and the statutory tax rate. The provision for income taxes for the three months
ended March 31, 2022 and 2021 was $2.0 million and $1.3 million,
respectively. The provision for income taxes increased due to an increase in
income before income taxes. First Guaranty's statutory tax rate was 21.0% for
the three months ended March 31, 2022 and 2021.







                                      -48-
--------------------------------------------------------------------------------

Cash and capital resources

Liquidity


Liquidity refers to the ability or flexibility to manage future cash flows to
meet the needs of depositors and borrowers and fund operations. Maintaining
appropriate levels of liquidity allows us to have sufficient funds available to
meet customer demand for loans, withdrawal of deposit balances and maturities of
deposits and other liabilities. Liquid assets include cash and due from banks,
interest-earning demand deposits with banks, federal funds sold and available
for sale investment securities.

First Guaranty's cash and cash equivalents totaled $132.7 million at March 31,
2022 compared to $261.9 million at December 31, 2021. Loans maturing within one
year or less at March 31, 2022 totaled $399.1 million. At March 31, 2022, time
deposits maturing within one year or less totaled $257.2 million compared to
$267.0 million at December 31, 2021. Time deposits maturing after one year
through three years totaled $258.1 million at March 31, 2022 compared to $269.7
million at December 31, 2021. Time deposits maturing after three years totaled
$47.7 million at March 31, 2022 compared to $50.0 million at December 31, 2021.
First Guaranty's held to maturity ("HTM") securities portfolio at March 31, 2022
was $319.6 million, or 70.6% of the investment portfolio, compared to $153.5
million, or 42.2% at December 31, 2021. First Guaranty's available for sale
("AFS") securities portfolio was $133.2 million, or 29.4% of the investment
portfolio as of March 31, 2022 compared to $210.6 million, or 57.8% of the
investment portfolio at December 31, 2021. The majority of the AFS portfolio was
comprised of U.S. Government Treasuries, municipal bonds and investment grade
corporate bonds. Management believes these securities are readily marketable and
enhance First Guaranty's liquidity.

First Guaranty maintained a net borrowing capacity at the Federal Home Loan Bank
totaling $451.2 million and $456.3 million at March 31, 2022 and December 31,
2021, respectively with no FHLB advances outstanding at March 31, 2022 compared
to $3.2 million at December 31, 2021, respectively. The advance outstanding at
December 31, 2021 was comprised of a long-term advance that totaled $3.2
million. First Guaranty paid off the $3.2 million long-term advance acquired
from the Union acquisition in the first quarter of 2022. The change in borrowing
capacity with the Federal Home Loan Bank was due to changes in the value that
First Guaranty receives on pledged collateral and due to First Guaranty's usage
of the line. First Guaranty has increasingly transitioned public funds deposits
into reciprocal deposit programs for collateralization as an alternative to FHLB
letters of credit. We also maintain federal funds lines of credit at various
correspondent banks with borrowing capacity of $100.5 million and two revolving
lines of credit totaling $26.5 million secured by a pledge of the Bank's common
stock, with an outstanding balance of $10.0 million at March 31, 2022. We also
have a discount window line with the Federal Reserve Bank that totaled $16.1
million at March 31, 2022. First Guaranty did not have any advances under this
facility at March 31, 2022. Management believes there is sufficient liquidity to
satisfy current operating needs.

Capital resources


First Guaranty's capital position is reflected in shareholders' equity, subject
to certain adjustments for regulatory purposes. Further, our capital base allows
us to take advantage of business opportunities while maintaining the level of
resources we deem appropriate to address business risks inherent in daily
operations.

Total shareholders' equity decreased to $221.8 million at March 31,
2022 from $223.9 million at December 31, 2021. The decrease in shareholders'
equity was principally the result of a decrease of $7.4 million in accumulated
other comprehensive income, partially offset by an increase of $5.3 million in
retained earnings. The decrease in accumulated other comprehensive income was
primarily attributed to the increase in unrealized losses on available for sale
securities during the three months ended March 31, 2022. The $5.3
million increase in retained earnings was due to net income of $7.6
million during the three months ended March 31, 2022, partially offset by $1.7
million in cash dividends paid on shares of our common stock and $0.6 million in
cash dividends paid on shares of our preferred stock.

                                      -49-
--------------------------------------------------------------------------------

Regulatory capital


Risk-based capital regulations adopted by the FDIC require banks to achieve and
maintain specified ratios of capital to risk-weighted assets. Similar capital
regulations apply to bank holding companies over $3.0 billion in assets. The
risk-based capital rules are designed to measure "Tier 1" capital (consisting of
common equity, retained earnings and a limited amount of qualifying perpetual
preferred stock and trust preferred securities, net of goodwill and other
intangible assets and accumulated other comprehensive income) and total capital
in relation to the credit risk of both on- and off- balance sheet items. Under
the guidelines, one of its risk weights is applied to the different on-balance
sheet items. Off-balance sheet items, such as loan commitments, are also subject
to risk weighting. Applicable bank holding companies and all banks must maintain
a minimum total capital to total risk weighted assets ratio of 8.00%, at least
half of which must be in the form of core or Tier 1 capital. These guidelines
also specify that bank holding companies that are experiencing internal growth
or making acquisitions will be expected to maintain capital positions
substantially above the minimum supervisory levels.

In order to avoid limitations on distributions, including dividend payments, and
certain discretionary bonus payments to executive officers, an institution must
hold a capital conservation buffer above its minimum risk-based capital
requirements. As of March 31, 2022, the Bank's capital conservation buffer was
3.38% exceeding the minimum of 2.50%.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection
Act, the Federal Reserve Board has amended its small bank holding company and
savings and loan holding company policy statement to provide that holding
companies with consolidated assets of less than $3 billion that are (i) not
engaged in significant nonbanking activities, (ii) do not conduct significant
off-balance sheet activities, and (3) do not have a material amount of
SEC-registered debt or equity securities, other than trust preferred securities,
that contribute to an organization's complexity, are no longer subject to
regulatory capital requirements, effective August 30, 2018.

In addition, as a result of the legislation, the federal banking agencies have
developed a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1
capital to average total consolidated assets) for financial institutions with
assets of less than $10 billion.  A "qualifying community bank" that exceeds
this ratio will be deemed to be in compliance with all other capital and
leverage requirements, including the capital requirements to be considered "well
capitalized" under Prompt Corrective Action statutes. The federal banking
agencies may consider a financial institution's risk profile when evaluating
whether it qualifies as a community bank for purposes of the capital ratio
requirement. The federal banking agencies set the new Community Bank Leverage
Ratio at 9%. Pursuant to the CARES Act, the federal banking agencies set the
Community Bank Leverage Ratio at 8% beginning in the second quarter of 2020
through the end of 2020. Beginning in 2021, the Community Bank Leverage Ratio
increased to 8.5% for the calendar year. Community banks will have until January
1, 2022, before the Community Bank Leverage Ratio requirement will return to 9%.
A financial institution can elect to be subject to this new definition. As of
March 31, 2022, the Bank did not elect to follow the Community Bank Leverage
Ratio.

At March 31, 2022, we satisfied the minimum regulatory capital requirements and
were well capitalized within the meaning of federal regulatory requirements.
                                                                                                               As of December 31,
                                             "Well Capitalized Minimums"         As of March 31, 2022                 2021
Bank:
Tier 1 Leverage Ratio                                             5.00  %                      8.80  %                      8.71  %
Tier 1 Risk-based Capital Ratio                                   8.00  %                     10.40  %                     10.22  %
Total Risk-based Capital Ratio                                   10.00  %                     11.38  %                     11.22  %
Common Equity Tier One Capital Ratio                              6.50  %                     10.40  %                     10.22  %



                                      -50-

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© Edgar Online, source Previews

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Costco has ended one of its famous membership perks https://alexandraandaustin.com/costco-has-ended-one-of-its-famous-membership-perks/ Sun, 08 May 2022 08:00:00 +0000 https://alexandraandaustin.com/costco-has-ended-one-of-its-famous-membership-perks/ COSTCO has ended one of its famous membership benefits – here’s what you can do if you’ve been affected. The wholesale giant has cut its mortgage program for its members. 1 Costco concluded its mortgage program on May 1Credit: Getty According to the retailer’s website, the changes went into effect on Sunday, May 1. “Members […]]]>

COSTCO has ended one of its famous membership benefits – here’s what you can do if you’ve been affected.

The wholesale giant has cut its mortgage program for its members.

1

Costco concluded its mortgage program on May 1Credit: Getty

According to the retailer’s website, the changes went into effect on Sunday, May 1.

“Members with questions regarding their current mortgage application and loan should contact the lender they worked with,” the company wrote.

They added a list of lenders and phone numbers.

Costco was affiliated with eight lenders, including Box Home Loans, CrossCountry Mortgage, Lending.com, Mutual of Omaha Mortgage, NASB, NBKC Bank, Real Genius and Strong Home Mortgage.

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The Sun US has contacted Costco for comment.

Costco was not a lead and had no direct role in issuing mortgages, according to Eat this, not that!

He did, however, propose a cap on lending fees related to lending transactions.

It comes as Walmart struck a deal with Lenders One Cooperative in March to lease space in its supermarkets.

Lenders One will soon be able to sell mortgage products and services in Walmart stores.

“Members can benefit from operating ‘store-to-store’ branches, offering mortgage solutions including purchase, refinance and home equity lines to customers,” Lenders One wrote in a statement. Release.

“We now have three locations under lease with many more opportunities to come.”

Justin Demola, President of Lenders One, said in a statement: “I couldn’t be happier with the direction the co-op is taking.

“I am proud of the work the team has done to bring L1 Credit, LOLA and the Walmart opportunity across the finish line; we are already seeing the enormous value these solutions are creating for our members.”

He added, “Our mission is to help members improve their profitability and better compete with larger, well-funded mortgage lenders, and I’m excited to release new, innovative solutions to accomplish that mission.”

It comes as Texas residents who are behind on their mortgages could be eligible for payments of $65,000.

The Texas Homeowner Assistance Fund (TXHAF) program will now provide financial assistance to qualified homeowners in Texas who have fallen behind on their mortgage and other related expenses due to the pandemic.

According to the TXHAF website, the program is administered by the Texas Department of Housing and Community Affairs with funding provided by the Homeowner Assistance Fund under the American Rescue Plan Act of 2021.

TXHAF will provide assistance in the form of grants to pay for delinquent mortgage payments, property taxes, insurance, and HOA fees.

For those who are in arrears on their mortgage, the maximum assistance is $40,000 per household.

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For qualified residents who are behind on property taxes, property insurance, HOA or condo association fees, the maximum assistance is $25,000 per household.

Nearly 15,000 families in Bexar County will be able to raise the funds.

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Are you waiting for house prices to drop? ‘You’re probably going to wait a long time,’ experts say | NextAdvisor with TIME https://alexandraandaustin.com/are-you-waiting-for-house-prices-to-drop-youre-probably-going-to-wait-a-long-time-experts-say-nextadvisor-with-time/ Fri, 06 May 2022 20:12:51 +0000 https://alexandraandaustin.com/are-you-waiting-for-house-prices-to-drop-youre-probably-going-to-wait-a-long-time-experts-say-nextadvisor-with-time/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. Feeling pressured by rapidly rising home prices, rising mortgage rates and rising […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

Feeling pressured by rapidly rising home prices, rising mortgage rates and rising monthly mortgage payments, buyers are wondering when the market will see some relief and home prices will begin to decline.

2022 has been tough for those trying to afford a home. In January, house prices rose rapidly, but at least mortgage rates hit record lows, providing some comfort to those trying to afford a home.

This is no longer the case. Mortgage rates quickly rose above 5%, rising two full percentage points since the start of the year. And at the same time, house prices have continued to rise.

Experts say prices are unlikely to drop significantly nationwide anytime soon. And while the pace at which house prices rise will slow, it will likely come because fewer people can afford to shop in a more expensive market. At the local level, individual markets could see prices fall, but experts say a sharp drop across the board is unlikely unless there is a significant economic shift.

“You have this continued pressure around buying that even though we’re seeing dips, I think you’re going to see enough demand on the dips to keep house prices from going down in a real way,” says Nicole Ruethproducing branch manager with the Rueth team of Fairway Independent Mortgage Corp. “I think the appreciation will slow down to normal appreciation.”

What caused house prices to rise?

House prices rose 20.9% year-over-year in March, according to data from CoreLogic, a housing data company. It was even higher in some metro areas, like Phoenix (+30.4%) and Las Vegas (+27.4%).

Behind this rise are two competing trends, each playing on a different side of the formula behind prices. The supply of available housing is declining, due to fewer people choosing to leave existing homes and the under-construction of new homes over the past decade. “We haven’t kept pace with homeownership demand for a decade now,” says Claire LoseyAssociate Research Economist at the Texas Real Estate Research Center at Texas A&M University.

Demand is higher due to changing demographics – millennials are in their early years of home buying – and the rise of remote working allows more people to move away from jobs and centres- cities. “General population growth will continue to put upward pressure on housing demand,” Losey said.

What will drive down house prices?

Prices will fall when supply increases significantly or demand falls, and experts say we are much more likely to see the latter. According to experts, one of the main drivers of the potential drop in demand is the drastic change in mortgage rates. The average 30-year fixed mortgage rate has risen more than two percentage points since the start of the year, reducing affordability for many buyers. Mortgage rates have reduced the purchasing power of buyers of a median-priced home by about 14%, Losey says. “Higher rates reduce a buyer’s purchasing power, which lowers the affordability of the purchase, or the maximum price of the home that is affordable to them,” she says.

Just because mortgage rates are up doesn’t mean demand will drop significantly, Rueth says. “Life events create need,” she says. “The need will be there regardless of the interest rate. But the speed at which interest rates move creates fear. The pace at which rates rose could have had the opposite effect and increased demand as buyers attempted to enter the market before it moved higher.

In some areas there is already some price moderation, says Marty Green, director of the Texas mortgage law firm Polunsky Beitel Green. The ambitious prices sellers advertise are “a bit more realistic,” he says. Home sales are already slowing, with the National Association of Realtors (NAR) reporting that sales of existing homes in March were down 2.7% from February and 4.5% from the previous March.

Although price growth is likely to slow down, this does not mean that prices will go down. They will simply rise by less than the current rate, perhaps closer to 3% rather than 20%, experts say. Freddie Mac predicted house price growth will slow this year, from 17.8% last year to 10.4% in 2022 and 5% next year. “First, the demand for homeownership has to go down,” Losey says. “If that happens and in a particular market there is potential for a better balance between the demand for homeownership and the supply of housing that comes with it, price growth should certainly moderate. This does not mean that house prices would go down, but the growth rate should certainly go down. »

To actually drop, there would have to be changes on the supply side – an influx of newly built homes, or a lot of people moving and not just to other single-family homes. “You’re always going to have limited inventory across the country, so prices are likely to moderate,” Green says. “I don’t see them falling significantly in the coming months absent a real shock to the system, a really bad recession or something like that.”

Individual markets may vary

Of course, what happens nationwide doesn’t necessarily happen in your neighborhood. Some communities will likely see prices drop, experts say. “Each market is going to behave a little differently,” says Green. “Some of the markets and sub-markets within them are likely to stabilize more quickly simply because supply and demand will dictate.”

Some markets are more likely than others to see prices fall next year. For example, CoreLogic has classified the Lake Havasu City-Kingman and Prescott regions in Arizona, as well as Bridgeport, Connecticut, as very high risk of seeing a price drop in the next 12 months.

Even within a metropolitan area or state, different communities could see prices go down, Green says. Some areas may have too many expensive and extravagant homes, and the number of people who can afford them will decrease as mortgage rates rise.

Markets that have been the hottest in recent years could see declines if people who moved there during the pandemic decide they don’t have everything they want, Rueth says. “It’s so market-specific,” she says. “Some of these markets, I imagine maybe they’re dipping a little bit because they’re a little bit overexcited.”

Pro tip

A variable rate mortgage is riskier than a fixed rate mortgage, but it could make it easier to buy a home as prices rise. Just be aware of the risk and be prepared to refinance if rates drop significantly again.

What Homebuyers Can Do

Buying can always be a good choice. As house prices rise, rents too, and if you buy a house with a fixed rate mortgage, your monthly payment will stay the same while the rent around you will continue to rise. Rueth says those who buy a home can get a “buffer against inflation”.

Team working

As you go through the buying journey, make sure you have a team of professionals. The limited supply of homes means the markets are incredibly competitive, and while this may slow as demand declines, they will remain sellers’ markets. “Find good, trusted professionals who can guide you through this process. Go to a good mortgage lender and get pre-approved for a mortgage. So as you enter the home-hunting process, you’ll already have an idea of ​​what’s affordable for you,” Losey says.

This also includes hiring an experienced real estate agent who can help you navigate a competitive market. “Since this is a seller’s market right now, it’s especially beneficial for buyers to try to work closely with professionals who have that experience and expertise,” Losey says.

Get off the beaten track

Buyers in hot markets might also have to get creative with the homes they consider, Losey says. “You’ll just have to be prepared to be quite flexible in these hot markets about what you want – space, amenities, location, etc., as well as types of financing,” she says. “Buyers are going to have to be prepared to resort to more non-traditional measures in very competitive markets because demand is so high.”

One way to combat rising mortgage rates is to consider adjustable-rate loans, Green says. Although ARMs carry some risk that the interest rate will increase after the initial term ends with a lower fixed rate, they offer short-term savings while giving you time to refinance if rates drop. “Look at some variable rate products that will have a positive impact on that affordability,” he says. “Don’t be afraid of these products because they might be the best answer for a lot of people.”

Patience is a virtue sometimes

High prices are out of your control, says Green. Focus on getting an affordable home for you when the time is right. “Be patient, but don’t be too patient,” he says. “If you’re waiting for the market to crash, that’s probably not the most likely outcome here and you’ll probably be waiting a long time.”

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