Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 216

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 216
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 2024, respectively with $135.0 million in FHLB advances outstanding at June 30, 2025 and December 31, 2024. The advances outstanding at June 30, 2025 and December 31, 2024 were comprised of two long-term advances that totaled $135.0 million. The change in borrowing capacity with the Federal Home Loan Bank was due to changes in the value that First Guaranty receives on pledged collateral and due to First Guaranty's usage of the line. First Guaranty has increasingly transitioned public funds deposits into reciprocal deposit programs for collateralization as an alternative to FHLB letters of credit. We also maintain federal funds lines of credit at various correspondent banks with borrowing capacity of $93.0 million as of June 30, 2025. We also have a discount window line with the Federal Reserve Bank that totaled $239.6 million at June 30, 2025 which was a decrease of $10.8 million compared to availability of $250.4 million at December 31, 2024. First Guaranty did not have any advances under this facility at June 30, 2025. Management believes there is sufficient liquidity to satisfy current operating needs.

Capital Resources

First Guaranty's capital position is reflected in shareholders' equity, subject to certain adjustments for regulatory purposes. Further, our capital base allows us to take advantage of business opportunities while maintaining the level of resources we deem appropriate to address business risks inherent in daily operations.

Total shareholders' equity increased to $263.1 million at June 30, 2025 from $255.0 million at December 31, 2024. The increase in shareholders' equity was principally the result of an increase of $17.7 million in surplus, a decrease of $2.7 million in accumulated other comprehensive loss, and an increase of $2.6 million in common stock, offset by a decrease of $14.9 million in retained earnings. The $17.7 million increase in surplus and $2.6 million increase in common stock was primarily due to the conversion of $15.0 million in subordinated debt and the issuance of common stock under private placement during the first six months of 2025. The decrease in accumulated other comprehensive loss was primarily attributed to the decrease in unrealized losses on available for sale securities during the six months ended June 30, 2025. The $14.9