Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 67

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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June 30, 2024 primarily due to a lower yield on interest-earning deposits with banks. For the six months ended June 30, 2025, the average balance of our total interest-bearing liabilities increased by $376.7 million to $3.2 billion primarily due to growth in interest-bearing deposits. The average rate of our total interest-bearing liabilities decreased by 45 basis points to 4.01% for the six months ended June 30, 2025 from 4.46% for the six months ended June 30, 2024. The primary source of the decrease in liabilities cost was associated with the repricing of interest bearing demand deposits for public funds that are primarily indexed to Treasury rates. As a result, our net interest rate spread decreased 5 basis points to 1.73% for the six months ended June 30, 2025 from 1.78% for the six months ended June 30, 2024. Our net interest margin decreased 18 basis points to 2.35% for the six months ended June 30, 2025 from 2.53% for the six months ended June 30, 2024.

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Interest Income

Three months ended June 30, 2025 compared to the three months ended June 30, 2024. Interest income increased $0.7 million, or 1.2%, to $54.3 million for the three months ended June 30, 2025 as compared to the prior year period. These factors contributed to the increase in interest income as the average balance of our total interest-earning assets, primarily associated with securities and interest-earning deposits with banks, increased, partially offset by the decrease in the average yield of interest-earning assets. The average balance of our interest-earning assets increased $358.2 million to $3.8 billion for the three months ended June 30, 2025 as compared to the same period in the prior year. The average yield of interest-earning assets decreased by 53 basis points to 5.72% for the three months ended June 30, 2025 compared to 6.25% for the three months ended June 30, 2024.

Interest income on securities increased $3.3 million to $5.8 million for the three months ended June