Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 46

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 funded and 1.9% of unfunded commitments in our loan portfolio to businesses engaged in support or service activities for oil and gas operations. First Guaranty's hotel and hospitality portfolio totaled $176.6 million at March 31, 2025. As part of the management of risks in our loan portfolio, First Guaranty had previously established an internal guidance limit of approximately $200.0 million for its hotel and hospitality portfolio. First Guaranty had $336.2 million in loans related to our Texas markets at March 31, 2025 compared to $407.1 million at December 31, 2024.  First Guaranty had $332.5 million in loans related to our Mideast markets in Kentucky and West Virginia at March 31, 2025 compared to $335.5 million at December 31, 2024. Syndicated loans at March 31, 2025 were $54.5 million, of which $27.2 million were shared national credits. Syndicated loans increased $0.7 million from $53.9 million at December 31, 2024. 

As of March 31, 2025, 80.3% of our loan portfolio was secured by real estate. The largest portion of our loan portfolio, at 44.4% as of March 31, 2025, was non-farm non-residential loans secured by real estate. Approximately 55.9% of the loan portfolio was based on a floating rate tied to the prime rate, Secured Overnight Financing Rate ("SOFR"), or Treasury rates as of March 31, 2025. 47.1% of the loan portfolio is scheduled to mature within five years from March 31, 2025. 

Commercial real estate (“CRE”) has received increased regulatory scrutiny in recent quarters due to valuation concerns associated with the increase in market interest rates and the impact of the COVID-19 pandemic. First Guaranty has utilized enhanced risk management practices for CRE concentration analysis for several years. First Guaranty Bank’s credit department conducts an annual stress test for CRE related loans that is presented to the Bank’s board of directors. The stress test analyzes the impact of changes in interest rates and cash flow on loan customers with credit exposures of $2.5 million or greater. First Guaranty generally requires personal guarantees on CRE loans. First Guaranty generally approves CRE