Company: FGBI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001408534-25-000036
Chunk: 132

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 significant impact on a financial institution's performance. The impact of interest rate changes depends on the sensitivity to the change of our interest-earning assets and interest-bearing liabilities. The effects of the changing interest rate environment in recent periods and our interest sensitivity position is discussed below.

Three months ended March 31, 2025 compared to the three months ended March 31, 2024. Net interest income for the three months ended March 31, 2025 and 2024 was $22.2 million and $21.9 million, respectively. The increase in net interest income for the three months ended March 31, 2025 as compared to the prior year period was primarily due to an increase in the average balance of our total interest-earning assets and a decrease in the average rate of our total interest-bearing liabilities, partially offset by a decrease in the average yield of our total interest-earning assets and an increase in the average balance of our total interest-bearing liabilities. For the three months ended March 31, 2025, the average balance of our total interest-earning assets increased by $417.9 million to $3.8 billion due to growth in the securities portfolio and an increase in interest-earning deposits with banks. The average yield of our interest-earning assets decreased by 47 basis points to 5.76% for the three months ended March 31, 2025 from 6.23% for the three months ended March 31, 2024 primarily due to a lower yield on interest-earning deposits with banks. For the three months ended March 31, 2025, the average balance of our total interest-bearing liabilities increased by $410.9 million to $3.3 billion primarily due to growth in interest-bearing deposits. The average rate of our total interest-bearing liabilities decreased by 36 basis points to 4.02% for the three months ended March 31, 2025 from 4.38% for the three months ended March 31, 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 11 basis points to 1.74% for the three months ended March 31, 2025 from 1.85% for the three months ended March 31, 2024. Our