Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 133

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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, and one commercial loan relationship totaling $11.1 million, from pass to substandard. Additionally, the downgrade of one non-farm non-residential loan totaling $13.6 million, from pass to substandard, during the second quarter of 2025. Special mention loans increased by $60.9 million in 2025. The increase in special mention loans was primarily the result of downgrade of two non-farm non-residential loan relationships, with balances of $26.4 million and $19.9 million, during the first quarter of 2025, and the downgrade of one construction and land development loan relationship totaling $11.0 million, during the second quarter of 2025, all from pass to special mention status.

Net loans are reduced by the allowance for credit losses which totaled $58.9 million at June 30, 2025 and $34.8 million at December 31, 2024.  Loan charge-offs were $8.0 million during the first six months of 2025 and $11.1 million during the same period in 2024. Recoveries totaled $0.4 million during the first six months of 2025 and $0.5 million during the same period in 2024. The provision for credit losses totaled $31.2 million for the first six months of 2025 and $9.1 million for the same period in 2024. See Note 4 of the Notes to Consolidated Financial Statements for more information on loans and Note 5 for more information on the allowance for credit losses.

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Investment Securities

Investment securities net of the allowance for credit losses at June 30, 2025 totaled $719.7 million, an increase of $117.0 million compared to $602.7 million at December 31, 2024. The portfolio consists of both available for sale (AFS) and held to maturity securities (HTM). The securities designated as held to maturity are agency and corporate debt securities that are part of First Guaranty’s investment strategy and public funds collateralization program. We purchase securities for our investment portfolio to provide a source of liquidity, to provide an appropriate return on funds invested, to manage interest rate risk and meet pledging requirements for public funds and borrowings.

The securities portfolio consisted principally of U.S. Government and Government agency securities, agency mortgage-backed securities, U.S. Government mortgage-backed securities, corporate debt securities and municipal bonds. U.S. government agencies consist