Company: FGBI
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001408534-25-000015
Chunk: 88

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 88
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 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 loans with loan-to-values of 80% or less. First Guaranty also generally requires for construction related CRE loans that the borrower provides their equity contribution upfront before loan funds are advanced.  First Guaranty modified its business strategy in 2024 to reduce exposure to commercial real estate related loans, particularly loans secured by non-owner occupied properties and construction loans for commercial real estate.  

First Guaranty has diversified its CRE portfolio across both industries and geographic location. The following is a summary of the largest CRE related loans associated with hotel and motels, office properties, apartment complexes, healthcare related properties, and properties under construction as of December 31, 2024.  The largest CRE loan secured by a hotel or motel totaled $19.9 million.  The property is a flagged hotel located in Texas.  The largest CRE loan secured by an office related property totaled $21.3 million and is located in West Virginia.  The largest CRE loan secured by an apartment complex totaled $26.0 million and is located in Texas.  The largest healthcare related loan is a $32.9 million property secured by an assisted living center located in Alabama.  The largest CRE loan under construction totaled $40.4 million for an apartment complex and is secured by a property located in Louisiana.  

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Loan Portfolio Maturities. The following tables summarize the scheduled repayments of our loan portfolio at December 31, 2024. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Maturities are based on the final contractual payment date and do not reflect the effect of prepayments and scheduled principal amortization.

 December 31, 2024(in thousands)One Year or LessMore Than One YearThrough Five YearsMore Than Five Years Through Fifteen YearsAfter Fifteen YearsTotalReal Estate:    Construction & land development$129,043 $52,341 $97,026