Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 30

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 price was approximately $14.7 million. All of the properties are located in Louisiana.First Guaranty concurrently entered into absolute net lease agreements with the partnership under which First Guaranty will lease each of the properties. Each of the lease agreements has an initial term of 15 years with specified renewal options. Annual payments due under the leases total approximately $1.3 million. The sale-leaseback transaction resulted in a pre-tax gain of approximately $13.3 million.First Guaranty recorded operating right-of-use ("ROU") assets and corresponding lease liabilities of $11.5 million and $11.5 million, respectively.Information concerning First Guaranty’s leases is as follows:Three Months EndedMarch 31, 2025Three Months EndedMarch 31, 2024Weighted-average lease term (in years)144.3Weighted-average discount rate7.9 %2.9 %First Guaranty’s operating lease ROU assets were $11.5 million and $11.6 million at March 31, 2025 and December 31, 2024, respectively, and the related operating lease liabilities were $11.5 million and $11.6 million, respectively. The ROU asset is included in Other Assets on the balance sheet, and the related operating lease liabilities are included in Other liabilities.Operating lease expense, including short-term leases, is included in occupancy expense in the amount of $0.4 million and $0.1 million for the three months end March 31, 2025 and 2024, respectively. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Cash payment for amounts included in the measurement of lease liabilities of $0.4 million and $30,000 were included in operating cash flows for the respective three-month periods.The following table reports minimum lease payments under non-cancelable operating leases at March 31, 2025:(in thousands)2025$1,055 20261,406 20271,406 20281,351 20291,307 Thereafter12,797 Total lease payments19,322 Less: interest(7,798)Present value of lease liabilities$11,524 

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Note 10. Fair Value Measurements

The fair value of a financial instrument is the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.