Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 70

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 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 March 31, 2025. We also have a discount window line with the Federal Reserve Bank that totaled $226.5 million at March 31, 2025 which was a decrease of $23.9 million compared to availability of $250.4 million at December 31, 2024. First Guaranty did not have any advances under this facility at March 31, 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 decreased to $251.4 million at March 31, 2025 from $255.0 million at December 31, 2024. The decrease in shareholders' equity was principally the result of a decrease of $6.9 million in retained earnings, offset by an increase of $1.4 million in surplus and a decrease of $1.7 million in accumulated other comprehensive loss. The $6.9 million decrease in retained earnings was primarily due to net loss of $6.2 million,  $0.1 million in cash dividends paid on shares of our common stock and $0.6 million in cash dividends paid on shares of our preferred stock during the three months ended March 31, 2025. The $1.4 million increase in surplus was due to common stock issued in a private placement during the first quarter 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 three months ended March 31, 2025. 

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Regulatory Capital

Risk-based capital regulations adopted by the FDIC require banks to achieve and maintain specified ratios of capital to risk-weighted assets. Similar capital regulations apply to bank holding companies over $3.0 billion in assets. The risk-based capital rules are designed to measure "Tier 1" capital (consisting of common equity, retained earnings and a limited amount of qualifying perpetual preferred stock and trust preferred securities, net of goodwill and other intangible assets and accumulated