First Guaranty Bancshares, Inc.
For the period ended Mar 31, 2026. Filed May 13, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 13, 2026
FGBI$11.74-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-17.
0001408534-25-000092
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001408534-26-000047
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 227 previous paragraphs and 170 current paragraphs.
67 unchanged; 71 reworded; 32 added; 77 removed; 12 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
•Net income (loss) for the three months ended March 31, 2026 and 2025 was $2.7 million and $(6.2) million, respectively, an increase of $8.9 million.
Current report
•Earnings (loss) per common share were $0.14 and $(0.54) for the three months ended March 31, 2026 and 2025, respectively. Total weighted average shares outstanding were 15,796,040 and 12,506,792 for the three months ended March 31, 2026 and 2025, respectively.
Current report
•Net interest income for the three months ended March 31, 2026 was $20.7 million compared to $22.2 million for the three months ended March 31, 2025.
Current report
•The provision for credit losses for the three months ended March 31, 2026 was $2.6 million compared to $14.5 million for the three months ended March 31, 2025.
Current report
•Charge-offs were $5.4 million during the three months ended March 31, 2026 and $6.9 million during the same period in 2025. Recoveries totaled $0.5 million during the three months ended March 31, 2026 and $0.2 million during the same period in 2025.
Current report
•Nonaccrual loans decreased $5.2 million to $54.4 million at March 31, 2026 compared to $59.6 million at December 31, 2025.
Current report
A $14.5 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the second quarter of 2025. Payments received on the loan in the first quarter of 2026 reduced the balance by $0.4 million.
Current report
A $9.1 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025. This loan relationship is still under construction with $1.9 million remaining to be funded as of March 31, 2026.
Current report
A $5.7 million commercial lease loan for an automotive parts wholesaler; the loan was placed on nonaccrual and charged down $26.2 million in the fourth quarter of 2025. This lease loan was fully reserved and was classified as doubtful as of March 31, 2026.
Current report
A $1.4 million guaranteed loan secured by livestock and farmland located in Louisiana; the loan was placed in nonaccrual in the fourth quarter of 2024.
Current report
A $1.3 million loan secured by commercial real estate in Texas; the loan was placed on nonaccrual during the third quarter of 2024.
Current report
A $1.2 million loan secured by multiple office buildings located in West Virginia; the loan was placed on nonaccrual during the second quarter of 2025.
Current report
A $1.2 million loan secured by a mobile home park located in New Mexico; the loan was placed on nonaccrual during the third quarter of 2024.
Current report
A $1.0 million loan secured by a cattle farm located in Louisiana; the loan was placed on nonaccrual during the third quarter of 2025.
Current report
•Special mention loan relationships totaled $316.1 million as of March 31, 2026, a decline of $13.4 million compared to December 31, 2025.
Current report
•Substandard loan relationships totaled $300.9 million as of March 31, 2026, a decline of $46.7 million compared to December 31, 2025.
Current report
•Doubtful loan relationships totaled $5.7 million as of March 31, 2026, a decline of $3.7 million compared to December 31, 2025.
Current report
•On March 10, 2026, First Guaranty Bank entered into an agreement with Armstrong Bank, Muskogee, Oklahoma, to sell the Bank's Texas operations, consisting of five branches and related deposits, loans and certain other assets, to Armstrong Bank. The transaction is expected to consist of approximately $270 million in deposits and $110 million in loans.
Current report
•On March 20, 2026, First Guaranty entered into a second amendment to its promissory note with Smith & Tate Investment, L.L.C. ("Smith and Tate"), which further amends the promissory note originally dated October 5, 2023, as previously amended on June 4, 2025. The second amendment extends the existing waiver of quarterly principal payments from March 31, 2026 through March 31, 2028 and extends First Guaranty’s option during this period to satisfy interest payments either in cash or through the issuance of shares of First Guaranty’s common stock, based on the closing bid price immediately preceding the interest payment date. Smith & Tate is controlled by Edgar Ray Smith, III, a director and principal shareholder of First Guaranty.
Current report
•On March 20, 2026, First Guaranty entered into a second amendment to its Floating Rate Subordinated Note due March 28, 2034 with Smith & Tate, which further amended the subordinated note previously amended on June 4, 2025. The second amendment extends First Guaranty’s ability to elect to satisfy quarterly interest payments either in cash or through the issuance of shares of First Guaranty’s common stock, based on the closing bid price immediately preceding the interest payment date. Smith & Tate is controlled by Edgar Ray Smith, III, a director and principal shareholder of First Guaranty.
Current report
Recent Developments
Current report
•On April 29, 2026, First Guaranty Bank purchased three properties owned by FGB Partners, LLC, two stand-alone branches and a portion of the headquarters building which also contains a branch, for an aggregate cash purchase price of $14.7 million. The properties were initially sold to FGB Partners, LLC on June 28, 2024, as part of a sale-leaseback transaction. Lease expense related to the sale‑leaseback arrangement totaled approximately $0.3 million per quarter. As a result of the repurchase, this lease expense will be eliminated, partially offset by an increase in depreciation expense of approximately $0.2 million per quarter.
Current report
•On April 30, 2026, First Guaranty completed a private placement of 436,204 shares of its common stock to certain directors of First Guaranty and First Guaranty Bank at a purchase price of $9.17 per share. The private placement generated aggregate gross proceeds of approximately $4.0 million, which First Guaranty intends to use for general corporate purposes.
Current report
As of March 31, 2026, the Bank’s total exposure (including outstanding loans and commitments) to its ten largest borrower relationships represented approximately 20.3% of the Bank’s loan portfolio. The majority of these relationships are real estate secured. Below is a summary of those ten largest lending relationships:
Current report
The decrease in classified assets at March 31, 2026 as compared to December 31, 2025 was due to a $46.6 million decrease in substandard loans and a $3.7 million decrease in doubtful loans. The decrease in substandard loans was primarily the result of $31.5 million in loan payoffs and $1.7 million in charge-offs in the first quarter of 2026. The decrease in doubtful loans was driven by the sale of a $3.7 million commercial and industrial loan relationship. The Bank recorded as $1.8 million charge-off as the result of the sale Special mention loans decreased by $13.4 million in 2026. The decrease in special mention loans was primarily the result of $10.3 million in loan payoffs.
Current report
Our held to maturity securities portfolio net of the allowance for credit losses totaled $322.9 million at March 31, 2026, an increase of $0.3 million, or 0.1%, compared to $322.7 million at December 31, 2025. The increase in carrying value was primarily attributable to the continued accretion of the fair value discount that was recognized in amortized cost at the time the securities were designated as held to maturity in 2021.
Current report
Other real estate owned totaled $28.9 million at March 31, 2026, a decrease of $6.2 million compared to $35.1 million at December 31, 2025. Other real estate owned decreased primarily due to the sale of $7.4 million of other real estate owned comprised of a land development project in January 2026.
Current report
•Multifamily loans decreased $16.3 million during the first three months of 2026. The allowance decrease related to this portfolio was due primarily to charge-offs and changes in the qualitative analysis of the portfolio.
Current report
•Commercial leases decreased $4.5 million during the first three months of 2026. The allowance increase related to this portfolio was due primarily to a $5.7 million increase in the allowance for loans individually evaluated.
Current report
Three months ended March 31, 2026 compared to the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 was $2.7 million, an increase of $8.9 million, from net loss of $6.2 million for the three months ended March 31, 2025. The increase in net income for the three months ended March 31, 2026 as compared to the prior year period was primarily the result of a decrease in the provision to the credit allowance. Income per common share for the three months ended March 31, 2026 was $0.14 per common share, an increase of $0.68 per common share from $(0.54) per common share for the three months ended March 31, 2025.
Current report
Noninterest expense totaled $16.7 million for the three months ended March 31, 2026, compared to $18.0 million for the same period in 2025. The decrease was primarily attributable to lower salaries and employee benefits expense, partially offset by increases in other real estate and regulatory assessment expenses.
Current report
Salaries and employee benefits expense decreased to $7.4 million for the three months ended March 31, 2026, compared to $8.4 million for the same period in 2025. Occupancy and equipment expense was $2.5 million for the three months ended March 31, 2026, compared to $2.6 million for the same period in 2025. Other noninterest expense totaled $6.9 million for the three months ended March 31, 2026 and 2025. Legal fees decreased to $0.7 million during the three months ended March 31, 2026, compared to $1.1 million for the same period in 2025, primarily due to higher legal costs in the first quarter of 2025 related to loan sales. This decrease was partially offset by higher costs associated with other real estate owned and increased regulatory assessment expense. Net costs related to other real estate and repossessions totaled $0.4 million for the three months ended March 31, 2026, compared to $0.1 million for the same period in 2025, primarily due to costs associated with an independent living center that is in other real estate owned. Regulatory assessment expense increased to $1.8 million for the three months ended March 31, 2026, from $1.5 million for the same period in 2025.
Removed paragraphs (77)
Previous report
•Net (loss) income for the three months ended September 30, 2025 and 2024 was $(45.0) million and $1.9 million respectively, a decrease of $46.9 million. Net (loss) income for the nine months ended September 30, 2025 and 2024 was $(58.5) million and $11.4 million, respectively, a decrease of $69.9 million. During the third quarter, First Guaranty recorded a $47.9 million provision for credit losses. $39.8 million of the $47.9 million provision was associated with one commercial lease relationship further described below. The provision for credit losses, together with the goodwill impairment charge of $12.9 million, were the primary drivers for the loss in the quarter, as net interest income, noninterest income and noninterest expense (excluding the goodwill impairment) were stable.
Previous report
•First Guaranty has a $52.0 million credit exposure associated with commercial lease financing to entities related to an auto parts manufacturer that declared Chapter 11 bankruptcy during the third quarter. The credit exposure consists of one $17.2 million commercial lease, which was past due on its payments and placed on nonaccrual as of September 30, 2025, and three commercial leases totaling $34.8 million that were current on payments and remained on accrual status as of September 30, 2025. First Guaranty has downgraded all four lease credits to substandard and impaired status. A specific reserve of $17.2 million has been established for the nonaccrual credit and a specific reserve of $22.6 million has been established for the three lease credits that remain on accrual status. Further analysis will be performed as bankruptcy proceedings progress in the fourth quarter of 2025. The commercial leases are serviced by a third party.
Previous report
•First Guaranty recognized a one-time non-cash impairment charge to goodwill of $12.9 million. The impairment was the result of First Guaranty's stock price trading below book value and the recent increase in credit provisions. The impairment charge did not impact regulatory capital ratios.
Previous report
•(Loss) earnings per common share were $(3.01) and $0.11 for the three months ended September 30, 2025 and 2024, respectively. Total weighted average shares outstanding were 15,122,702 and 12,504,717 for the three months ended September 30, 2025 and 2024, respectively. (Loss) earnings per common share were $(4.45) and $0.78 for the nine months ended September 30, 2025 and 2024, respectively. Total weighted average shares outstanding were 13,523,009 and 12,499,799 for the nine months ended September 30, 2025 and 2024, respectively. The change in shares was primarily due to the conversion into common stock of $15.0 million in subordinated debt in the second quarter and the issuance of 667,970 shares of common stock under private placement during 2025, of which 122,503 shares were issued in the third quarter. In addition, 198,754 shares were issued in 2025 as payment in kind, including 110,272 shares in the third quarter.
Previous report
•Net interest income for the three months ended September 30, 2025 was $22.2 million compared to $22.7 million for the three months ended September 30, 2024. Net interest income for the nine months ended September 30, 2025 was $66.7 million compared to $65.9 million for the nine months ended September 30, 2024.
Previous report
•The provision for credit losses for the three months ended September 30, 2025 was $47.9 million compared to $4.9 million for the three months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 was $79.1 million compared to $14.0 million for the nine months ended September 30, 2024.
Previous report
•Charge-offs were $21.3 million during the three months ended September 30, 2025 and $2.6 million during the same period in 2024. Charge-offs for the third quarter of 2025 were concentrated with two commercial real estate credits. $9.4 million was charged off on an independent living center located in Louisiana. $10.4 million was charged off on an apartment complex located in Texas. Recoveries totaled $0.3 million during the three months ended September 30, 2025 and $0.2 million during the same period in 2024. Charge-offs were $29.4 million during the nine months ended September 30, 2025 and $13.7 million during the same period in 2024. Recoveries totaled $0.7 million during the nine months ended September 30, 2025 and $0.7 million during the same period in 2024.
Previous report
-36- development to other real estate owned. The Bank plans to sell these properties. The largest property is currently under sales contract for $2.2 million and is to be sold during the fourth quarter of 2025.
Previous report
•Nonaccrual loans increased $5.7 million to $114.3 million at September 30, 2025 compared to $108.5 million at December 31, 2024. Nonaccrual loans decreased $4.9 million when compared to June 30, 2025. The decrease compared to June 30, 2025 was due principally to the payoff on an $8.8 million commercial real estate loan located in the Midwest and to associated charge-offs on existing nonaccrual loans that totaled $21.3 million in the quarter. The decrease was partially offset by the $17.2 million commercial lease placed into nonaccrual.
Previous report
A $18.1 million loan relationship secured by an independent living center located in Louisiana; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $27.5 million at June 30, 2025 and was charged down by $9.4 million in the third quarter of 2025.
Previous report
A $17.2 million commercial equipment lease located primarily in Kansas; it was placed in nonaccrual in the third quarter of 2025. This relates to the auto parts bankruptcy.
Previous report
A $15.4 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $25.8 million at June 30, 2025 and was charged down by $10.4 million in the third quarter of 2025.
Previous report
A $15.1 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the second quarter of 2025. Payments received on the loan in the third quarter of 2025 reduced the balance by $0.5 million.
Previous report
A $8.3 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025.
Previous report
A $6.5 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the second quarter of 2025.
Previous report
A $2.2 million loan relationship was placed on nonaccrual during the third quarter of 2025. This loan is secured by a retail location located in Florida.
Previous report
A $1.6 million loan relationship was placed on nonaccrual during the fourth quarter of 2024. This loan is secured by a convenience store located in Texas.
Previous report
•First Guaranty charged off $0.3 million in consumer loans during the third quarter of 2025. The consumer loan charge-offs included $0.1 million in credit card loans, $0.1 million of loans secured by automobiles or equipment, and $0.1 million in unsecured loans.
Previous report
•First Guaranty charged off $10.4 million on a multifamily loan during the third quarter of 2025. This relationship had a remaining principal balance of $15.4 million as of September 30, 2025.
Previous report
•First Guaranty charged off $0.5 million on a commercial lease loan relationship during the third quarter of 2025. This relationship had no remaining principal balance as of September 30, 2025.
Previous report
•First Guaranty charged off $0.4 million on a 1-4 family loan relationship during the third quarter of 2025. This relationship had a remaining principal balance of $0.7 million as of September 30, 2025.
Previous report
Full time equivalent employees totaled 339 at September 30, 2025. Full time equivalent employees totaled 360 at June 30, 2025, 380 at March 31, 2025, 399 at December 31, 2024, and 404 at September 30, 2024.
Previous report
The increase in classified assets at September 30, 2025 as compared to December 31, 2024 was due to a $120.4 million increase in substandard loans. The increase in substandard loans was primarily the result of downgrades during 2025. The details of the top 10 substandard loan relationships as of September 30, 2025 are listed below:
Previous report
A $52.0 million commercial lease relationship to entities associated with the aforementioned auto parts manufacturer. The collateral for these leases are located in multiple states. This relationship was classified substandard at the end of third quarter in 2025. The principal balances consists of one lease for $17.2 million which was nonaccrual as of September 30, 2025 and three leases totaling $34.8 million that were on accrual status as of September 30, 2025. The $17.2 million lease was originated in 2024 and has a specific reserve of $17.2 million. The $34.8 million leases were originated between 2021 and 2024 and had specific reserves of $22.6 million.
Previous report
A $47.0 million loan relationship secured by real estate and business assets. This is a construction business located primarily in Louisiana. The loan relationship was classified as substandard in the third quarter of 2024. The loan relationship is on accrual status and there is no specific reserve established for it. The loan was originated between 2022 and 2024.
Previous report
A $23.8 million loan relationship secured by real estate. This is a hospital located in Arkansas. The relationship was designated as substandard in the second quarter of 2025. The loan was originated in 2021 and is on accrual status.
Previous report
A $18.1 million loan relationship secured by an independent living center located in Louisiana; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $27.5 million at June 30, 2025 and was charged down by $9.4 million in the third quarter of 2025. The loan was originated in 2023. It has a specific reserve of $10.5 million as of September 30, 2025.
Previous report
A $15.7 million construction and land development loan relationship secured by land located in Texas. The loan was classified as substandard in the first quarter of 2024. The loan was originated in 2023 and is on accrual status.
Previous report
A $15.4 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $25.8 million at June 30, 2025 and was charged down by $10.4 million in the third quarter of 2025. The loan was originated in 2022.
Previous report
A $15.1 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the second quarter of 2025. Payments received on the loan in the third quarter of 2025 reduced the balance by $0.5 million. The loan was originated in 2019.
Previous report
A $13.9 million loan relationship secured by commercial real estate located in Oklahoma. The loan was designated substandard in the first quarter of 2025. The loan was originated in 2020 and is on accrual status.
Previous report
A $11.5 million construction loan for the development of a truck stop and convenience store located in Louisiana. The loan was designed substandard in the first quarter of 2025. The loan was originated in 2022 and is on accrual status.
Previous report
A $8.3 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025. The loan was originated in 2023.
Previous report
Special mention loans increased by $86.5 million in 2025. The increase in special mention loans was primarily the result of downgrades during 2025. The details of the top 10 special mention loan relationships as of September 30, 2025 are listed below:
Previous report
A $40.7 million multifamily loan relationship secured by an apartment complex in Louisiana. The loan is on accrual status. The loan was designated as special mention in the third quarter of 2025. The loan was originated in 2021.
Previous report
A $39.6 million loan relationship to a manufacturing company secured by real estate and business assets located in Louisiana. The loan is on accrual status. The loan was designated special mention in the third quarter of 2025. The loan relationship is over ten years old.
Previous report
A $20.3 million loan relationship to a marine industry company secured by real estate. The loan was designated special mention in the first quarter of 2025. The loan was originated in 2020.
Previous report
A $15.9 million non-farm non-residential relationship secured by a warehouse located in Louisiana. The loan was designated special mention in the first quarter of 2025. The loan was originated in 2024.
Previous report
A $10.8 million construction and land development secured by land located in Texas. The loan was designated special mention in the second quarter of 2025. The loan was originated in 2022.
Previous report
A $8.7 million non-farm non-residential relationship secured by a hotel located in Mississippi. The loan was designated special mention in the fourth quarter of 2024. The loan was originated in 2015.
Showing the first 40 of 77 passages. Open the source sections for the rest.
Reworded paragraphs (71)
Previous wording
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 September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 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.
Current wording
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, 2026 and for the three months ended March 31, 2026 and 2025 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.
Previous wording
Third Quarter and Nine Months Ended September 30, 2025, Financial Overview
Current wording
First Quarter and Three Months Ended March 31, 2026, Financial Overview
Previous wording
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 31 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 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.
Current wording
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 30 banking facilities primarily located in the MSAs of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, and Alexandria, Louisiana and Dallas-Fort Worth-Arlington, Waco, Texas and Mideast markets in Kentucky and West Virginia. As announced in a Current Report on Form 8-K filed on March 10, 2026, First Guaranty has entered into a purchase and assumption agreement pursuant to which it would exit the Dallas-Fort Worth-Arlington and Waco, Texas markets. 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.
Previous wording
Financial highlights for the third quarter and nine months ended September 30, 2025 are as follows:
Current wording
Financial highlights for the first quarter and three months ended March 31, 2026 are as follows:
Previous wording
•Total assets decreased $175.4 million and were $3.8 billion at September 30, 2025 compared to December 31, 2024. Total loans at September 30, 2025 were $2.3 billion, a decrease of $414.0 million, or 15.4%, compared with December 31, 2024. Total deposits were $3.4 billion at September 30, 2025, a decrease of $121.4 million, or 3.5%, compared with December 31, 2024. Retained earnings were $12.3 million at September 30, 2025, a decrease of $60.6 million compared to $73.0 million at December 31, 2024. Shareholders' equity was $221.1 million and $255.0 million at September 30, 2025 and December 31, 2024, respectively.
Current wording
•Total assets decreased $119.8 million and were $4.0 billion at March 31, 2026 compared to $4.1 billion at December 31, 2025. Total loans at March 31, 2026 were $1.9 billion, a decrease of $145.2 million, or 7.0%, compared with December 31, 2025. Total deposits were $3.5 billion at March 31, 2026, a decrease of $125.3 million, or 3.4%, compared with December 31, 2025. Retained earnings were $16.1 million at March 31, 2026, an increase of $2.0 million compared to $14.1 million at December 31, 2025. Shareholders' equity was $224.0 million and $226.2 million at March 31, 2026 and December 31, 2025, respectively.
Previous wording
•The allowance for credit losses was $85.7 million or 3.76% of total loans at September 30, 2025 compared to $34.8 million or 1.29% at December 31, 2024.
Current wording
•The allowance for credit losses was 2.00% of total loans at March 31, 2026 compared to 1.97% at December 31, 2025.
Previous wording
•First Guaranty had $12.1 million of other real estate owned as of September 30, 2025 compared to $0.3 million at December 31, 2024. $7.4 million of other real estate owned as of September 30, 2025 is comprised of a land development project that is under contract to be sold in the fourth quarter of 2025. First Guaranty also transferred $4.4 million of existing bank owned properties previously used as either operating branches or future branch
Current wording
•First Guaranty had $28.9 million of other real estate owned as of March 31, 2026 compared to $35.1 million at December 31, 2025.
Previous wording
•The net interest margin for the three months ended September 30, 2025 was 2.34% which was a decrease of 17 basis points from the net interest margin of 2.51% for the same period in 2024. The net interest margin for the nine months ended September 30, 2025 was 2.35% which was a decrease of 17 basis points from the net interest margin of 2.52% for the same period in 2024. Loans as a percentage of average interest earning assets decreased to 65.1% at September 30, 2025 compared to 80.0% at September 30, 2024.
Current wording
•The net interest margin for the three months ended March 31, 2026 was 2.07% which was a decrease of 28 basis points from the net interest margin of 2.35% for the same period in 2025. Loans as a percentage of average interest earning assets decreased to 49.5% at March 31, 2026 compared to 68.5% at March 31, 2025.
Previous wording
•Investment securities net of the allowance for credit losses totaled $696.7 million at September 30, 2025, an increase of $94.0 million when compared to $602.7 million at December 31, 2024. At September 30, 2025, available for sale securities, at fair value, totaled $374.3 million, an increase of $93.2 million when compared to $281.1 million at December 31, 2024. At September 30, 2025, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $322.4 million, an increase of $0.8 million when compared to $321.6 million at December 31, 2024. The allowance for credit losses for HTM securities was $0.2 million at September 30, 2025 and December 31, 2024.
Current wording
•Investment securities totaled $1.2 billion at March 31, 2026, an increase of $177.6 million when compared to $999.3 million at December 31, 2025. At March 31, 2026, available for sale securities, at fair value, totaled $853.9 million, an increase of $177.3 million when compared to $676.6 million at December 31, 2025. At March 31, 2026, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $322.9 million, an increase of $0.3 million when compared to $322.7 million at December 31, 2025. The allowance for credit losses for HTM securities was $0.2 million at March 31, 2026 and December 31, 2025.
Previous wording
•Total loans net of unearned income were $2.3 billion at September 30, 2025, a net decrease of $414.0 million from December 31, 2024. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $85.7 million at September 30, 2025 and $34.8 million at December 31, 2024, respectively.
Current wording
•Total loans net of unearned income were $1.9 billion at March 31, 2026, a net decrease of $145.2 million from December 31, 2025. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $38.5 million at March 31, 2026 and $40.8 million at December 31, 2025, respectively.
Previous wording
At September 30, 2025, the largest 10 non-performing loans comprise 77% of total non-performing assets. Additional details on the non-performing loan relationships are as follows:
Current wording
•At March 31, 2026, the largest 10 non-performing loan relationships comprise 77% of total non-performing assets. Additional details on the non-performing relationships are as follows:
Previous wording
A $7.4 million loan relationship secured by land located in Texas; the loan was transferred to other real estate owned in the second quarter of 2025.
Current wording
A $23.3 million loan relationship secured by an independent living center located in Louisiana; the loan was transferred to other real estate owned in the fourth quarter of 2025.
Previous wording
A $5.2 million loan relationship was placed on nonaccrual during the second quarter of 2025. The loan is secured by multifamily apartment complexes located in Louisiana.
Current wording
A $5.2 million loan relationship was placed on nonaccrual during the second quarter of 2025. The loan is secured by multifamily apartment complexes located in Louisiana. This loan relationship had a specific reserve of $0.8 million as of March 31, 2026.
Previous wording
•First Guaranty charged off $21.3 million in loan balances during the third quarter of 2025. The details of the $21.3 million in charged-off loans were as follows:
Current wording
•First Guaranty charged off $5.4 million in loan balances during the first quarter of 2026. The details of the $5.4 million in charged-off loans were as follows:
Previous wording
First Guaranty charged off $0.3 million on a commercial and industrial loan during the second quarter of 2025. This relationship had no remaining principal balance as of September 30, 2025.
Current wording
First Guaranty charged off $1.8 million on a commercial and industrial loan during the first quarter of 2026. The relationship had a balance of $3.7 million at December 31, 2025, and no remaining principal balance as of March 31, 2026, as the relationship was subsequently sold after the charge-down.
Previous wording
•First Guaranty charged off $9.4 million on a non-farm non-residential loan relationship secured by an independent living center during the third quarter of 2025. This relationship had a remaining principal balance of $18.1 million as of September 30, 2025.
Current wording
First Guaranty charged off $1.0 million on a non-farm non-residential loan relationship secured by retail real estate during the first quarter of 2026. This relationship had no remaining principal balance as of March 31, 2026.
Previous wording
•Smaller loans and overdrawn deposit accounts comprised the remaining $0.3 million of charge-offs for the third quarter of 2025.
Current wording
Smaller loans and overdrawn deposit accounts comprised the remaining $2.6 million of charge-offs for the first quarter of 2026.
Previous wording
•Noninterest expense totaled $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment), $17.3 million for the second quarter of 2025, $18.0 million for the first quarter of 2025, $17.9 million for the fourth quarter of 2024, and $19.7 million for the third quarter of 2024.
Current wording
•Noninterest expense totaled $16.7 million for the first quarter 2026, $16.8 million for the fourth quarter of 2025, $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment), $17.3 million for the second quarter of 2025, and $18.0 million for the first quarter of 2025. Full time equivalent employees totaled 330 at March 31, 2026 compared to 380 at March 31, 2025.
Previous wording
•Return on average assets for the three months ended September 30, 2025 and 2024 was (4.61)% and 0.21%, respectively. Return on average assets for the nine months ended September 30, 2025 and 2024 was (2.00)% and 0.42%, respectively. Return on average common equity for the three months ended September 30, 2025 and 2024 was (78.41)% and 2.40%, respectively. Return on average common equity for the nine months ended September 30, 2025 and 2024 was (35.83)% and 5.87% 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.
Current wording
•Return on average assets for the three months ended March 31, 2026 and 2025 was 0.27% and (0.63)%, respectively. Return on average common equity for the three months ended March 31, 2026 and 2025 was 4.52% and (12.29)% 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.
Previous wording
•Book value per common share was $12.25 as of September 30, 2025 compared to $17.75 as of December 31, 2024. The decrease was due primarily to the decrease in retained earnings, partially offset by the recent issuance of new shares and changes in accumulated other comprehensive income ("AOCI"). 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.
Current wording
•Book value per common share was $11.91 as of March 31, 2026 compared to $12.23 as of December 31, 2025. The decrease was due primarily to the changes in accumulated other comprehensive income ("AOCI") and recent issuance of new shares. 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.
Previous wording
•First Guaranty's Board of Directors declared cash dividends of $0.01 and $0.08 per common share in the third quarter of 2025 and 2024. The reduction in the common stock dividend payment was done in order to preserve capital as part of First Guaranty’s new business strategy announced in the third quarter of 2024. First Guaranty has paid 129 consecutive quarterly dividends as of September 30, 2025.
Current wording
•First Guaranty's Board of Directors declared cash dividends of $0.01 per common share in the first quarter of 2026 and 2025. First Guaranty has paid 131 consecutive quarterly dividends as of March 31, 2026.
Previous wording
•First Guaranty paid preferred stock dividends of $1.7 million during the first nine months of 2025 and 2024.
Current wording
•First Guaranty paid preferred stock dividends of $0.6 million during the first three months of 2026 and 2025.
Previous wording
Total assets at September 30, 2025 were $3.8 billion, a decrease of $175.4 million from December 31, 2024. Assets decreased primarily due to a decrease in net loans of $464.9 million partially offset by increases in cash and cash equivalents of $190.0 million and investment securities of $94.0 million at September 30, 2025 compared to December 31, 2024.
Current wording
Total assets at March 31, 2026 were $4.0 billion, a decrease of $119.8 million from December 31, 2025. Assets decreased primarily due to a decrease in net loans of $143.0 million and cash and cash equivalents of $111.9 million partially offset by an increase in investment securities of $177.6 million at March 31, 2026 compared to December 31, 2025.
Previous wording
Net loans decreased $464.9 million, or 17.5%, to $2.2 billion at September 30, 2025 from December 31, 2024. First Guaranty adopted a change in its business plan in July 2024 that focused on reducing risk in the balance sheet, including risk associated with the loan portfolio. As part of this strategy, First Guaranty has reduced loan originations, charged-off loan balances and conducted select loan sales, which have each contributed to a decline in loan balances. Non-farm non-residential loan balances decreased $156.6 million due to the sale of loans and paydowns. Construction and land development loans decreased $98.9 million principally due to the sale of loans, charge-offs, and the conversion of existing loans to permanent financing. Commercial lease loan balances decreased $85.2 million primarily due to paydowns on the existing lease portfolio. First Guaranty's commercial lease portfolio generally has higher yields than commercial real estate loans but shorter average lives. Multifamily loans decreased $27.5 million primarily due to paydowns and charge-offs. Commercial and industrial loans decreased $30.4 million primarily due to paydowns. One-to-four family residential loans decreased $9.4 million primarily due to paydowns. Farmland loans decreased $4.3 million primarily due to seasonal activity. Consumer and other loans decreased $7.5 million primarily due to paydowns. Agricultural loans increased $4.0 million due to seasonal activity. First Guaranty had approximately 3.1% of funded and 1.5% 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 hospitality portfolio totaled $162.4 million at September 30, 2025. First Guaranty had $270.2 million in loans related to our Texas markets at September 30, 2025 compared to $407.1 million at December 31, 2024. First Guaranty had $323.5 million in loans related to our Mideast markets in Kentucky and West Virginia at September 30, 2025 compared to $335.5 million at December 31, 2024. Syndicated loans at September 30, 2025 were $48.5 million, of which $19.8 million were shared national credits. Syndicated loans decreased $5.3 million from $53.9 million at December 31, 2024.
Current wording
Net loans decreased $143.0 million, or 7.0%, to $1.9 billion at March 31, 2026 from December 31, 2025. First Guaranty adopted a change in its business plan in July 2024 that focused on reducing risk in the balance sheet, including risk associated with the loan portfolio. As part of this strategy, First Guaranty has reduced loan originations, charged-off loan balances and conducted select loan sales, which have each contributed to a decline in loan balances. Non-farm non-residential loan balances decreased $69.5 million due to paydowns on the existing portfolio. Construction and land development loans decreased $39.7 million principally due to the conversion of existing loans to permanent financing. Multifamily loans decreased $16.3 million primarily due to paydowns. Commercial and industrial loans decreased $14.4 million primarily due to the sale of loans, paydowns and charge-offs. Commercial lease loan balances decreased $4.5 million primarily due to paydowns on the existing lease portfolio. First Guaranty's commercial lease portfolio generally has higher yields than commercial real estate loans but shorter average lives. Consumer and other loans decreased $2.0 million primarily due to paydowns. One-to-four family residential loans decreased $1.3 million primarily due to charge-offs and paydowns. Farmland loans decreased $0.8 million primarily due to seasonal activity. Agricultural loans increased $2.7 million due to seasonal activity. First Guaranty had approximately 3.8% of funded and 1.4% 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 hospitality portfolio totaled $130.9 million at March 31, 2026. First Guaranty had $122.7 million in loans related to our Texas markets at March 31, 2026 compared to $192.6 million at December 31, 2025. As noted above, First Guaranty has entered into an agreement to sell its Texas operations. First Guaranty had $343.3 million in loans related to our Mideast markets in Kentucky and West Virginia at March 31, 2026 compared to $323.1 million at December 31, 2025. Syndicated loans at March 31, 2026 were $51.6 million, of which $22.3 million were shared national credits. Syndicated loans increased $1.3 million from $50.3 million at December 31, 2025.
Previous wording
As of September 30, 2025, 80.7% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 43.9% as of September 30, 2025, was non-farm non-residential loans secured by real estate. Approximately 56.4% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of September 30, 2025. 43.9% of the loan portfolio is scheduled to mature within five years from September 30, 2025.
Current wording
As of March 31, 2026, 81.6% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 45.5% as of March 31, 2026, was non-farm non-residential loans secured by real estate. Approximately 57.6% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of March 31, 2026. This amount includes loans that convert to floating rates following an initial fixed rate period, which typically ranges from one, three, or five year periods. 39.9% of the loan portfolio is scheduled to mature within five years from March 31, 2026.
Previous wording
Commercial real estate (“CRE”) has received increased regulatory scrutiny in recent quarters due to valuation concerns associated with the increase in market interest rates and the impact of the COVID-19 pandemic. First Guaranty has utilized enhanced risk management practices for CRE concentration analysis for several years. First Guaranty Bank’s credit department conducts an annual stress test for CRE related loans that is presented to the Bank’s board of directors. The stress test analyzes the impact of changes in interest rates and cash flow on loan customers with credit exposures of $2.5 million or greater. First Guaranty generally requires personal guarantees on CRE loans. First Guaranty generally approves CRE loans with loan-to-values of 80% or less. First Guaranty also generally requires for construction related CRE loans that the borrower provides their equity contribution upfront before loan funds are advanced. First Guaranty modified its business strategy in 2024 to reduce exposure to commercial real estate related loans, particularly loans secured by non-owner occupied properties and construction loans for commercial real estate. First Guaranty continued this strategy in 2025.
Current wording
Commercial real estate (“CRE”) has received increased regulatory scrutiny in recent quarters due to valuation concerns associated with the increase in market interest rates and the impact of the COVID-19 pandemic. First Guaranty has utilized enhanced risk management practices for CRE concentration analysis for several years. First Guaranty Bank’s credit department conducts an annual stress test for CRE related loans that is presented to the Bank’s board of directors. The stress test analyzes the impact of changes in interest rates and cash flow on loan customers with credit exposures of $2.5 million or greater. First Guaranty generally requires personal guaranties on CRE loans. First Guaranty generally approves CRE loans with loan-to-values of 80% or less. First Guaranty also generally requires for construction related CRE loans that the borrower provides their equity contribution upfront before loan funds are advanced. First Guaranty modified its business strategy in 2024 to reduce exposure to commercial real estate related loans, particularly loans secured by non-owner occupied properties and construction loans for commercial real estate. First Guaranty continued this strategy in 2026.
Previous wording
First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of September 30, 2025. First Guaranty generally does not finance multi-story office buildings in major metropolitan areas. The largest CRE loan secured by a hotel or motel totaled $19.5 million. The property is a flagged hotel located in Texas. The largest CRE loan secured by an office related property totaled $21.1 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $40.7 million and is located in Louisiana. The largest healthcare related loan is a $20.6 million property secured by a hospital located in Louisiana. The largest CRE loan under construction totaled $32.0 million for an apartment complex and is secured by a property located in Texas.
Current wording
First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of March 31, 2026. First Guaranty generally does not finance multi-story office buildings in major metropolitan areas. The largest CRE loan secured by a hotel or motel totaled $19.2 million. The property is a flagged hotel located in Texas. The largest CRE loan secured by an office related property totaled $20.8 million and is located in West Virginia. The largest CRE loan secured by an apartment complex totaled $40.2 million and is located in Louisiana. The largest healthcare related loan is a $33.5 million property secured by an assisted living center located in Alabama. The largest CRE loan under construction totaled $16.5 million for a multipurpose CRE building and is secured by a property located in Louisiana.
Previous wording
Net loans are reduced by the allowance for credit losses which totaled $85.7 million at September 30, 2025 and $34.8 million at December 31, 2024. Loan charge-offs were $29.4 million during the first nine months of 2025 and $13.7 million during the same period in 2024. Recoveries totaled $0.7 million during the first nine months of 2025 and $0.7 million during the same period in 2024. The provision for credit losses totaled $79.1 million for the first nine months of 2025 and $14.0 million for the same period in 2024. 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 credit losses.
Current wording
Net loans are reduced by the allowance for credit losses which totaled $38.5 million at March 31, 2026 and $40.8 million at December 31, 2025. Loan charge-offs were $5.4 million during the first three months of 2026 and $6.9 million during the same period in 2025. Recoveries totaled $0.5 million during the first three months of 2026 and $0.2 million during the same period in 2025. The provision for credit losses totaled $2.6 million for the first three months of 2026 and $14.5 million for the same period in 2025. 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 credit losses.
Previous wording
Investment securities net of the allowance for credit losses at September 30, 2025 totaled $696.7 million, an increase of $94.0 million compared to $602.7 million at December 31, 2024. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). 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.
Current wording
Investment securities net of the allowance for credit losses at March 31, 2026 totaled $1.2 billion, an increase of $177.6 million compared to $999.3 million at December 31, 2025. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). 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.
Previous wording
The securities portfolio consisted principally of U.S. Government and Government agency securities, agency mortgage-backed securities, U.S. Government 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, Fannie Mae, or the U.S Government (GNMA). 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 securities that have maturities of less than two years. Government agency securities generally have maturities of 15 years or less. Agency and Government mortgage-backed securities generally stated final maturities of 15 to 20 years.
Current wording
The securities portfolio consisted principally of U.S. Government and Government agency securities, agency mortgage-backed securities, collateralized mortgage obligations ("CMOs"), corporate debt securities and municipal bonds. U.S. government agencies consist of FHLB, FFCB, Freddie Mac and Federal National Mortgage Association ("Fannie Mae") obligations. Mortgage-backed securities that we purchase are issued by Freddie Mac and Fannie Mae. CMOs are also issued by Freddie Mac and Fannie Mae and are structured to provide varying repayment profiles. 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, while CMOs generally have stated final maturities ranging from 15 to 30 years, although actual maturities may vary based on prepayment activity.
Previous wording
Our available for sale securities portfolio totaled $374.3 million at September 30, 2025, an increase of $93.2 million, or 33.2%, compared to $281.1 million at December 31, 2024. The increase was primarily due to the purchase of collateralized mortgage obligations and mortgage-backed securities. In the third quarter of 2025, First Guaranty has primarily purchased U.S. Government securities and U.S. Government mortgage-backed and collateralized mortgage obligations.
Current wording
Our available for sale securities portfolio totaled $853.9 million at March 31, 2026, an increase of $177.3 million, or 26.2%, compared to $676.6 million at December 31, 2025. The increase was primarily due to the purchase of collateralized mortgage obligations and mortgage-backed securities.
Previous wording
At September 30, 2025, $3.6 million, or 0.5%, of the securities portfolio was scheduled to mature in less than one year. $30.5 million, or 4.4%, of the securities portfolio, not including collateralized mortgage obligations and mortgage-backed securities, were scheduled to mature between one and five years. The majority of these securities were corporate bonds. $132.0 million, or 18.9%, 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 $182.0 million, or 26.1%, of the total securities portfolio at September 30, 2025. 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 September 30, 2025, management believes that the securities portfolio has a forecasted weighted average life of approximately 7.02 years based on the current interest rate environment. The portfolio had an estimated effective duration of 5.28 years at September 30, 2025.
Current wording
At March 31, 2026, $75.1 million, or 6.4%, of the securities portfolio was scheduled to mature in less than one year. $69.2 million, or 5.9%, of the securities portfolio, not including collateralized mortgage obligations and mortgage-backed securities, were scheduled to mature between one and five years. The majority of these securities were corporate bonds. $109.9 million, or 9.3%, 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 $162.1 million, or 13.8%, of the total securities portfolio at March 31, 2026. 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, 2026, management believes that the securities portfolio has a forecasted weighted average life of approximately 5.63 years based on the current interest rate environment. The portfolio had an estimated effective duration of 4.23 years at March 31, 2026.
Previous wording
There were no credit related impairment of available for sale securities during the nine months ended September 30, 2025 or 2024. The allowance for credit losses for held to maturity securities was $0.2 million at September 30, 2025 and December 31, 2024.
Current wording
There were no credit related impairment of available for sale securities during the three months ended March 31, 2026 or 2025. The allowance for credit losses for held to maturity securities was $0.2 million at March 31, 2026 and December 31, 2025.
Previous wording
At September 30, 2025, nonperforming assets totaled $126.3 million, or 3.33% of total assets, compared to $120.4 million, or 3.03%, of total assets at December 31, 2024, which represented an increase of $6.0 million, or 5.0%. The increase in nonperforming assets occurred primarily due to an increase in nonaccrual loans and other real estate, partially offset by a decrease in loans 90 days greater delinquent. Nonperforming loans included loans previously classified as purchase credit deteriorated following the adoption of CECL.
Current wording
At March 31, 2026, nonperforming assets totaled $83.5 million, or 2.11% of total assets, compared to $95.5 million, or 2.34%, of total assets at December 31, 2025, which represented a decrease of $12.0 million, or 12.5%. The decrease in nonperforming assets occurred primarily due to a decrease in nonaccrual loans, other real estate, and in loans 90 days greater delinquent. Nonperforming loans included loans previously classified as purchase credit deteriorated following the adoption of CECL.
Previous wording
Nonaccrual loans increased from $108.5 million at December 31, 2024 to $114.3 million at September 30, 2025. Nonaccrual loans included $4.6 million in loans with a government guarantee. These are structured as net loss guarantees in which up to 90% of loss exposure is covered.
Current wording
Nonaccrual loans decreased from $59.6 million at December 31, 2025 to $54.4 million at March 31, 2026. Nonaccrual loans included $4.3 million in loans with a government guarantee. These are structured as net loss guarantees in which up to 90% of loss exposure is covered.
Previous wording
At September 30, 2025, there were no loans 90 days or greater delinquent and still accruing, compared to $11.5 million at December 31, 2024. The decrease in loans 90 days or greater delinquent and still accruing was attributed to moving those loans to nonaccrual.
Current wording
At March 31, 2026, there were $0.2 million loans 90 days or greater delinquent and still accruing, compared to $0.8 million at December 31, 2025.
Previous wording
The allowance for credit losses on loans was $85.7 million, or 3.76% of total loans, and 75.0% of nonperforming loans at September 30, 2025.
Current wording
The allowance for credit losses on loans was $38.5 million, or 2.00% of total loans, and 70.4% of nonperforming loans at March 31, 2026.
Previous wording
A provision for credit losses of $79.1 million was made during the nine months ended September 30, 2025 and $14.0 million for the same period in 2024. The $79.1 million provision made in 2025 included a $0.5 million negative provision for credit losses related to unfunded commitments. First Guaranty's unfunded commitments declined during the first nine months of 2025 which resulted in a reduced liability. The provisions made were taken to provide for current credit losses and to maintain the allowance proportionate to risks inherent in the loan portfolio.
Current wording
A provision for credit losses of $2.6 million was made during the three months ended March 31, 2026 and $14.5 million for the same period in 2025. The provisions made during the three months ended March 31, 2025 included a $0.3 million negative provision for credit losses related to unfunded commitments. First Guaranty's unfunded commitments declined during the first three months of 2025 which resulted in a reduced liability. The provisions made were taken to provide for current credit losses and to maintain the allowance proportionate to risks inherent in the loan portfolio.
Previous wording
The loan portfolio factors in the first nine months of 2025 that primarily affected the allocation of the allowance included the following:
Current wording
The loan portfolio factors in the first three months of 2026 that primarily affected the allocation of the allowance included the following:
Previous wording
•Construction and land development loans decreased during the first nine months of 2025 due to the sale of loans. The allowance decrease was due primarily to charge-offs of the portfolio.
Current wording
•Construction and land development loans decreased $39.7 million during the first three months of 2026. The allowance decrease was due to changes in the qualitative analysis of the portfolio
Showing the first 40 of 71 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (12)
Previous report — wording carried elsewhere
•At September 30, 2025, the largest 10 non-performing loan relationships comprise 77% of total non-performing loans. Additional details on these non-performing relationships are as follows:
Previous report — wording carried elsewhere
A $7.4 million loan relationship secured by land located in Texas; the loan was transferred to other real estate owned in the second quarter of 2025.
Previous report — wording carried elsewhere
A $5.2 million loan relationship was placed on nonaccrual during the second quarter of 2025. The loan is secured by multifamily apartment complexes located in Louisiana.
Previous report — wording carried elsewhere
First Guaranty charged off $29.4 million in loan balances during the first nine months of 2025. The details of the $29.4 million in charged-off loans were as follows:
Previous report — wording carried elsewhere
Smaller loans and overdrawn deposit accounts comprised the remaining $1.5 million of charge-offs for the first nine months of 2025.
Previous report — wording carried elsewhere
Three months ended September 30, 2025 compared to the three months ended September 30, 2024. Net interest income for the three months ended September 30, 2025 and 2024 was $22.2 million and $22.7 million, respectively. The decrease in net interest income for the three months ended September 30, 2025 as compared to the prior year period was primarily due to a decrease in the average rate of our total interest-bearing assets. For the three months ended September 30, 2025, the average balance of our total interest-earning assets increased by $164.2 million to $3.8 billion due to growth in the securities portfolio and an increase in interest-earning deposits with banks. The average yield of our interest-earning assets decreased by 71 basis points to 5.63% for the three months ended September 30, 2025 from 6.34% for the three months ended September 30, 2024 primarily due to a lower yield on interest-earning deposits with banks. For the three months ended September 30, 2025, the average balance of our total interest-bearing liabilities increased by $119.4 million to $3.2 billion primarily due to growth in interest-bearing deposits. The average rate of our total interest-bearing liabilities decreased by 62 basis points to 3.92% for the three months ended September 30, 2025 from 4.54% for the three months ended September 30, 2024. The primary source of the decrease in liabilities cost was associated with the repricing of interest bearing demand deposits for public funds that are primarily indexed to Treasury rates. As a result, our net interest rate spread decreased 9 basis points to 1.71% for the three months ended September 30, 2025 from 1.80% for the three months ended September 30, 2024. Our net interest margin decreased 17 basis points to 2.34% for the three months ended September 30, 2025 from 2.51% for the three months ended September 30, 2024.
Previous report — wording carried elsewhere
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Interest expense decreased $2.5 million, or 2.6%, to $95.6 million for the nine months ended September 30, 2025 from $98.1 million for the nine months ended September 30, 2024 due primarily to a decrease on the average rate of interest-bearing deposits, partially offset by an increase in the average balance of interest-bearing liabilities. The average balance of interest-bearing liabilities increased by $290.2 million during the nine months ended September 30, 2025 to $3.2 billion as compared to the prior year period. This increase was a result of a $1.4 million increase in the average balance of savings deposits, a $478.5 million increase in the average balance of time deposits, partially offset by a $139.5 million decrease in the average balance of interest-bearing demand deposits and a $50.2 million decrease in the average balance of borrowings. The average rate of interest-bearing demand deposits was 3.69% for the nine months ended September 30, 2025 and 4.48% for the nine months ended September 30, 2024. The decrease in market interest rates, particularly U.S. Treasury rates, contributed to the decrease in rates paid on interest-bearing demand deposits. The largest concentration of interest-bearing demand deposits is associated with public funds deposits that are primarily indexed to Treasury rates. The average rate of time deposits decreased 38 basis points during the nine months ended September 30, 2025 to 4.34% as compared to the prior year period. The decrease in the average rate of time deposits was due to changes in market rates as existing time deposits repriced.
Previous report — wording carried elsewhere
(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
Previous report — wording carried elsewhere
(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
Previous report — wording carried elsewhere
(3)Net interest margin represents net interest income divided by average total interest-earning assets.
Previous report — wording carried elsewhere
(4)The tax adjusted net interest margin was 2.35% and 2.53% for the above periods ended September 30, 2025 and 2024, respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended September 30, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
The benefit for income taxes for the nine months ended September 30, 2025 was $13.0 million compared to a provision of $3.4 million for the same period in 2024. The provision for income taxes decreased due to a decrease in income before income taxes. First Guaranty's statutory tax rate was 21.0% for the nine months ended September 30, 2025 and 2024.