Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 158

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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 a $0.2 million negative provision for credit losses related to unfunded commitments. Total charge-offs were $1.1 million for the three months ended June 30, 2025 and $8.8 million for the same period in 2024. Charge-offs for the three months ended June 30, 2025 were concentrated in one commercial and industrial loan, one lease loan relationship, consumer auto and equipment secured loans, and unsecured consumer loans. Partially offsetting these charge-offs were recoveries that totaled $0.2 million for the three months ended June 30, 2025 and $0.2 million for the same period in 2024. 

For the six months ended June 30, 2025, the provision for credit losses was $31.2 million compared to $9.1 million for the same period in 2024. Included in the provision for $31.2 million was a subsequent provision of $1.9 million that was made following First Guaranty’s press release dated July 31, 2025. The $31.2 million provision included a $0.5 million negative provision for credit losses related to unfunded commitments. The increase in the provision was primarily impacted by increased reserves on individually evaluated loans and also due to charge-offs related to loans sold in the first quarter of 2025. Total charge-offs were $8.0 million for the six months ended June 30, 2025 and $11.1 million for the same period in 2024. Charge-offs for the six months ended June 30, 2025 were concentrated in one commercial and industrial loan, one lease loan relationship, consumer loans and two construction and land development loans, both were subsequently sold during the first quarter of 2025. Partially offsetting these charge-offs were recoveries that totaled $0.4 million for the six months ended June 30, 2025 and $0.5 million for the same period in 2024. 

We believe that the allowance is adequate to cover current expected losses in the loan portfolio given the current economic conditions, and current expected net charge-offs and nonperforming asset levels. Economic uncertainty may result in additional increases to the allowance for credit losses in future periods.

There was no provision for credit losses on AFS or HTM securities in the six months ended June 30, 2025 and 2024.

Noninterest Income

Our primary sources of recurring noninterest income are customer service fees,