Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 28

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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Net Other Real Estate Owned and Foreclosed Property$152 $319 

Loans secured by one-to-four family residential properties in the process of foreclosure totaled $1.6 million as of March 31, 2025. 

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Note 8. Commitments and Contingencies

 Off-balance sheet commitments First Guaranty is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual notional amount of those instruments. The same credit policies are used in making commitments and conditional obligations as it does for balance sheet instruments. Unless otherwise noted, collateral or other security is not required to support financial instruments with credit risk. Below is a summary of the notional amounts of the financial instruments with off-balance sheet risk at March 31, 2025 and December 31, 2024:Contract Amount(in thousands)March 31, 2025December 31, 2024Commitments to Extend Credit$119,196 $134,178 Unfunded Commitments under lines of credit$176,757 $186,006 Commercial and Standby letters of credit$13,526 $13,576  Allowance For Credit Losses - Off- Balance-Sheet Credit ExposuresThe provision for credit losses on unfunded commitments was a reversal of $0.3 million for  both the three months ended March 31, 2025 and March 31, 2024. The ACL on off-balance-sheet credit exposures total $0.9 million at March 31, 2025 and $1.2 million at December 31, 2024 and is included in other liabilities on the accompanying consolidated balance sheets. LitigationFirst Guaranty is subject to various legal proceedings in the normal course of its business. First Guaranty assesses its liabilities and contingencies in connection with outstanding legal