Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 75

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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,680,141 3,300,247 Shareholders' equity254,708 252,172 Total Liabilities and Shareholders' Equity$3,934,849 $3,552,419 Net interest income$44,463 $43,163 Net interest rate spread (1)1.73 %1.78 %Net interest-earning assets (2)$584,687 $573,427 Net interest margin (3), (4)2.35 %2.53 %Average interest-earning assets to interest-bearing liabilities118.07 %120.05 %

(1)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(2)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income divided by average total interest-earning assets.

(4)The tax adjusted net interest margin was 2.35% and 2.53% for the above periods ended June 30, 2025 and 2024, respectively. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the above periods ended June 30, 2025 and 2024, respectively.

(5)Annualized.

(6)Includes loan fees of $2.8 million and $4.0 million for the six months ended June 30, 2025 and 2024, respectively. 

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        Provision for Credit Losses

A provision for credit losses is a charge to income in an amount that management believes is necessary to maintain an adequate allowance for credit losses. The allowance for loan losses is calculated under ASC 326 and is management's evaluation of expected credit losses over the life of the loans in the portfolio. The provision is based on management's regular evaluation of current economic conditions in our specific markets as well as regionally and nationally, changes in the character and size of the loan portfolio, underlying collateral values securing loans, and other factors which deserve recognition in estimating loan losses. Past events, current conditions, and reasonable forecasts, along with quantitative and qualitative adjustments, are used in calculating the allowance for credit losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change.

For the three months ended June 30, 2025, the provision for credit losses was $