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First Guaranty Bancshares (First Guaranty Bancshares) Beneish M-Score : -3.46 (As of Jun. 21, 2024)


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What is First Guaranty Bancshares Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for First Guaranty Bancshares's Beneish M-Score or its related term are showing as below:

FGBIP.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -14.48   Med: -2.45   Max: 14.73
Current: -3.46

During the past 13 years, the highest Beneish M-Score of First Guaranty Bancshares was 14.73. The lowest was -14.48. And the median was -2.45.


First Guaranty Bancshares Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of First Guaranty Bancshares for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9878+0.528 * 1+0.404 * 0.9982+0.892 * 0.8631+0.115 * 1.3231
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2199+4.679 * -0.003267-0.327 * 3.5341
=-3.46

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $268.87 Mil.
Revenue was 23.809 + 23.085 + 22.486 + 23.299 = $92.68 Mil.
Gross Profit was 23.809 + 23.085 + 22.486 + 23.299 = $92.68 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $3,555.79 Mil.
Property, Plant and Equipment(Net PPE) was $70.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.02 Mil.
Selling, General, & Admin. Expense(SGA) was $40.61 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $217.80 Mil.
Net Income was 2.31 + 1.303 + 1.772 + 2.676 = $8.06 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.996 + 12.867 + -2.866 + 7.681 = $19.68 Mil.
Total Receivables was $315.35 Mil.
Revenue was 24.608 + 25.285 + 29.086 + 28.397 = $107.38 Mil.
Gross Profit was 24.608 + 25.285 + 29.086 + 28.397 = $107.38 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $3,237.80 Mil.
Property, Plant and Equipment(Net PPE) was $58.60 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.49 Mil.
Selling, General, & Admin. Expense(SGA) was $38.57 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $56.12 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(268.873 / 92.679) / (315.345 / 107.376)
=2.901121 / 2.936829
=0.9878

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(107.376 / 107.376) / (92.679 / 92.679)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 70.646) / 3555.791) / (1 - (0 + 58.6) / 3237.796)
=0.980132 / 0.981901
=0.9982

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=92.679 / 107.376
=0.8631

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(4.49 / (4.49 + 58.6)) / (4.016 / (4.016 + 70.646))
=0.071168 / 0.053789
=1.3231

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(40.613 / 92.679) / (38.571 / 107.376)
=0.438211 / 0.359214
=1.2199

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((217.802 + 0) / 3555.791) / ((56.116 + 0) / 3237.796)
=0.061253 / 0.017332
=3.5341

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(8.061 - 0 - 19.678) / 3555.791
=-0.003267

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

First Guaranty Bancshares has a M-score of -3.46 suggests that the company is unlikely to be a manipulator.


First Guaranty Bancshares Beneish M-Score Related Terms

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First Guaranty Bancshares (First Guaranty Bancshares) Business Description

Traded in Other Exchanges
Address
400 East Thomas Street, Hammond, LA, USA, 70401
First Guaranty Bancshares Inc provides personalized commercial banking services to its customers in Louisiana, through several banking facilities in the Market Services Areas. Its principal business activity includes attracting deposits and investing it together with funds generated from operations and borrowings insecurities and in lending activities to serve the credit needs of its customer base. The company offers commercial real estate loans, commercial and industrial loans, construction and land development loans, agricultural and farmland loans, and to a lesser extent, consumer and multifamily loans.
Executives
Vanessa R Drew director 400 EAST THOMAS STREET, HAMMOND LA 70401
Amanda Wood Barnett officer: General Counsel 1412 CENTRE COURT DRIVE, SUITE 101, ALEXANDRIA LA 71301
Jack Rossi director 400 EAST THOMAS STREET, HAMMOND LA 70401
Smith & Hood Holding Company, Llc 10 percent owner 11239 HIGHWAY 16, AMITE LA 70422
Smith & Hood Investments, Llc 10 percent owner P.O. BOX 367, AMITE LA 70422
Smith Edgar R. Iii director 400 EAST THOMAS STREET, HAMMOND LA 70401
Marshall T Reynolds director, 10 percent owner, officer: Chairman of the Board 2450 FIRST AVENUE, HUNTINGTON WV 25704
Glenda Baskin Glover director 911 E. WINDING CREEK DRIVE, SUITE 150, EAGLE ID 83616
Gary A Simanson director 717 KING STREET, ALEXANDRIA VA 22314
Lewis Alton B Jr officer: Chief Executive Officer 400 EAST THOMAS STREET, HAMMOND LA 70401
Michael R. Sharp officer: President and CLO 400 EAST THOMAS STREET, HAMMOND LA 70401
William K Hood director 400 EAST THOMAS STREET, HAMMOND LA 70401
Eric Dosch officer: SVP and CFO 2450 FIRST AVENUE, HUNTINGTON WV 25703
Michele E. Lobianco officer: Chief Financial Officer 400 EAST THOMAS STREET, HAMMOND LA 70401
Loy F. Weaver officer: Executive Vice President 400 EAST THOMAS STREET, HAMMOND LA 70401