Company: FGBI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001408534-25-000015
Chunk: 126

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 126
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 to the decrease in unrealized losses on available for sale securities during the year ended December 31, 2024. 

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Capital Management

We manage our capital to comply with our internal planning targets and regulatory capital standards administered by the Federal Reserve and the FDIC. We review capital levels on a monthly basis. We evaluate a number of capital ratios, including Tier 1 capital to total adjusted assets (the leverage ratio) and Tier 1 capital to risk-weighted assets. At December 31, 2024, First Guaranty and the Bank was classified as well-capitalized. First Guaranty's capital conservation buffer was 3.04% at December 31, 2024. The Bank's capital conservation buffer was 4.11% at December 31, 2024.

The following table presents First Guaranty and the Bank's capital ratios as of the indicated dates.

 "Well Capitalized  Minimums"At December 31, 2024"Well Capitalized Minimums"At December 31, 2023Tier 1 Leverage RatioBank5.00 %7.82 %5.00 %8.94 %Consolidated5.00 %6.42 %N/AN/ATier 1 Risk-based Capital RatioBank8.00 %11.00 %8.00 %10.31 %Consolidated8.00 %9.04 %N/AN/ATotal Risk-based Capital RatioBank10.00 %12.11 %10.00 %11.20 %Consolidated10.00 %11.73 %N/AN/ACommon Equity Tier One CapitalBank6.50 %11.00 %6.50 %10.31 %Consolidated6.50 %7.87 %N/AN/A

Off-balance sheet commitments

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers and to reduce our 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 our 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 non