Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 143

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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 institutions with assets of less than $10 billion.  A "qualifying community bank" that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered "well capitalized" under Prompt Corrective Action statutes. The federal banking agencies may consider a financial institution's risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies set the new Community Bank Leverage Ratio at 9%. Pursuant to the CARES Act, the federal banking agencies set the Community Bank Leverage Ratio at 8% beginning in the second quarter of 2020 through the end of 2020. Beginning in 2021, the Community Bank Leverage Ratio increased to 8.5% for the calendar year. Community banks will have until January 1, 2022, before the Community Bank Leverage Ratio requirement will return to 9%. A financial institution can elect to be subject to this new definition. As of March 31, 2025, the Bank has not elected to follow the Community Bank Leverage Ratio.

At March 31, 2025, we satisfied the minimum regulatory capital requirements and were well capitalized within the meaning of federal regulatory requirements. 

 "Well Capitalized Minimums"As of March 31, 2025As of December 31, 2024Tier 1 Leverage Ratio   Bank5.00 %7.73 %7.82 %Consolidated5.00 %6.32 %6.42 %Tier 1 Risk-based Capital RatioBank8.00 %11.49 %11.00 %Consolidated8.00 %9.38 %9.04 %Total Risk-based Capital RatioBank10.00 %12.74 %12.11 %Consolidated10.00 %12.33 %11.73 %Common Equity Tier One Capital RatioBank6.50 %11.49 %11.00 %Consolidated6.50 %8.13 %7.87 %

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Asset/Liability Management and Market Risk

Our asset/liability management (ALM) process consists of quantifying, analyzing and controlling interest rate risk (IRR) to maintain reasonably stable net interest income levels under various interest rate environments. The