Company: FGBI
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001408534-25-000092
Chunk: 89

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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% of nonperforming loans at September 30, 2025.

Comparing September 30, 2025 to December 31, 2024, there were changes within the specific components of the allowance balance. 

A provision for credit losses of $79.1 million was made during the nine months ended September 30, 2025 and $14.0 million for the same period in 2024. The $79.1 million provision made in 2025 included a $0.5 million negative provision for credit losses related to unfunded commitments. First Guaranty's unfunded commitments declined during the first nine months of 2025 which resulted in a reduced liability. The provisions made were taken to provide for current credit losses and to maintain the allowance proportionate to risks inherent in the loan portfolio. 

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The loan portfolio factors in the first nine months of 2025 that primarily affected the allocation of the allowance included the following:

•Construction and land development loans decreased during the first nine months of 2025 due to the sale of loans. The allowance decrease was due primarily to charge-offs of the portfolio. 

•One-to-four family residential loans decreased $9.4 million during the first nine months of 2025. The allowance increase related to this portfolio was due to changes in the qualitative analysis of the portfolio, and a $0.4 million increase in the allowance for loan individually evaluated.

•Multifamily loans decreased $27.5 million during the first nine months of 2025. The allowance decrease related to this portfolio was due to primarily to charge-offs of the portfolio, and a $2.8 million decrease in the allowance for loan individually evaluated.

•Non-farm non-residential loans decreased by $156.6 million during the first nine months of 2025. The allowance increase related to this portfolio was due to changes in the qualitative analysis of the portfolio related to economic conditions, and a $9.4 million increase in the allowance for loans individually evaluated. 

•Commercial and industrial loans decreased $30.4 million during the first nine months of 2025. The allowance increase related to this portfolio was due to changes in the qualitative analysis of the portfolio, and a $3.5 million increase in the allowance for loans individually evaluated. 

•Commercial leases decreased $85.2 million during the first nine months of 2025. The allowance increase related to this portfolio was due to changes in the qualitative analysis of the portfolio, and a $39.7