Company: FGBI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001408534-25-000015
Chunk: 171

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 171
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Residential real estate loans are primarily secured by first liens on residential real estate.•Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotels and restaurants.•Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.•Commercial loans are primarily secured by accounts receivable, inventory and equipment.•Agriculture loans are primarily secured by farmland and equipment.Loan Modifications Made to Borrowers Experiencing Financial DifficultyOccasionally, the Bank modifies loans to borrowers in financial distress by providing certain concessions, such as principal forgiveness, term extension, an other-than-insignificant payment delay, interest only for a specified period of time, an interest rate reduction, or a combination of such concessions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. Reportable modifications to borrowers experiencing financial difficulty (MEFD) during the year ended December 31, 2024 consisted of $3.0 million term extensions, $0.6 million payment delays, and $0 with both term extensions and payment delays. The bank had $0 unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of December 31, 2024.As of December 31, 2024, there have been no loans that were modified with in the previous 12 months for which there has been payment default during the period.

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Note 7. Premises and Equipment

The components of premises and equipment at December 31, 2024 and 2023 are as follows:(in thousands)December 31, 2024December 31, 2023Land$16,802 $15,541 Bank premises60,741 55,452 Furniture and equipment32,946 31,681 Construction in progress2,407 14,368 Acquired value112,896 117,042 Less: accumulated depreciation45,107 47,250 Net book value$67,789 $69,792 

Depreciation expense amounted to $3.4 million and $3.0 million for 2024 and 2023, respectively. Interest cost capitalized as a construction cost was $0 for