Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 34

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 the date acquired. Fair values of other real estate owned ("OREO") are determined by sales agreement or appraisal, and costs to sell are based on estimation per the terms and conditions of the sales agreement or amounts commonly used in real estate transactions. Inputs include appraisal values or recent sales activity for similar assets in the property's market; thus, OREO measured at fair value would be classified within either Level 2 or Level 3 of the hierarchy. Certain non-financial assets and non-financial liabilities are measured at fair value on a non-recurring basis including assets and liabilities related to reporting units measured at fair value in the testing of goodwill impairment, as well as intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment.The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (in thousands)June 30, 2025December 31, 2024Available for Sale Securities Fair Value Measurements Using:  Level 1: Quoted Prices in Active Markets For Identical Assets$49,615 $147,780 Level 2: Significant Other Observable Inputs342,139 127,222 Level 3: Significant Unobservable Inputs5,819 6,095 Securities available for sale measured at fair value$397,573 $281,097  First Guaranty's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While the methodologies used are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value.The change in Level 1 securities available for sale from December 31, 2024 to June 30, 2025 was due to a net decrease in Treasury bills of $98.2 million. There were no transfers between Level 2 and Level 3 from December 31, 2024 to June 30, 2025. There were no transfers between Level 1 and 2 securities available for sale from December 31, 2024 to June 30, 2025. 

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The following table reconciles assets measured at fair value on a recurring basis using unobservable inputs (Level 3): Level