Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 81

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the recovery of contractual principal and interest and (iv) the intent and ability of First Guaranty to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Investment securities issued by the U.S. Government and Government sponsored enterprises with unrealized losses and the amount of unrealized losses on those investment securities that are the result of changes in market interest rates will not be credit impaired. First Guaranty has the ability and intent to hold these securities until recovery, which may not be until maturity. Corporate debt securities in a loss position consist primarily of corporate bonds issued by businesses in the financial, insurance, utility, manufacturing, industrial, consumer products and oil and gas industries. There were no held to maturity corporate securities with a credit related impairment loss at March 31, 2025. First Guaranty believes that the remaining issuers will be able to fulfill the obligations of these securities based on evaluations described above. First Guaranty has the ability and intent to hold these securities until they recover, which could be at their maturity dates.There were no charge-offs recognized on securities during the three months ended March 31, 2025 and 2024. There were no provisions for credit losses recognized on securities during the three months ended March 31, 2025 and 2024.For securities that have indications of credit related impairment, management analyzes future expected cash flows to determine if any credit related impairment is evident. Estimated cash flows are determined using management's best estimate of future cash flows based on specific assumptions. The assumptions used to determine the cash flows were based on estimates of loss severity and credit default probabilities. Management reviews reports from credit rating agencies and public filings of issuers.  At March 31, 2025, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below:  At March 31, 2025(in thousands)Amortized CostFair ValueU.S. Government Treasuries (U.S.)$49,173 $49,112 Federal Home Loan Bank (FHLB)32,328 26,596 Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)99,036 73,146 Federal Farm Credit Bank (FFCB)139,346 113,253 Government National Mortgage Association (