Company: FGBI
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001408534-25-000092
Chunk: 143

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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ers Experiencing Financial DifficultyOccasionally, the Bank modifies loans to borrowers in financial distress by providing certain concessions, such as principal forgiveness, term extension, an other-than-insignificant payment delay, interest only for a specified period of time, an interest rate reduction, or a combination of such concessions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. Reportable modifications to borrowers experiencing financial difficulty (MEFD) during the nine months ended September 30, 2025 consisted of a $17.6 million term extension. The Bank had no unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of September 30, 2025.As of September 30, 2025, there have been $1.0 million in loans that were modified with in the previous 12 months for which there has been payment default during the period.

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Note 6. Goodwill and Other Intangible Assets

 Goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to impairment testing. The Company is required to conduct testing of goodwill impairment periodically (at least annually) and upon the occurrence of certain triggering events, which are events or circumstances that make it more likely than not that the fair value of its goodwill is below its carrying amount. The Company performed a quantitative impairment test as of September 30, 2025, using a combination of market and income approaches, including the guideline public company method, guideline precedent transaction method, and discounted cash flow analysis, which was triggered by the Company's stock price trading below book value and the recent increase in credit provisions. Based on the results of the test, the Company concluded the goodwill of $12.9 million was impaired; therefore, a one-time non-cash impairment charge was recorded.Other intangible assets continue to be amortized over their useful lives. Loan servicing assets totaled $0.3 million at September 30, 2025 and $0.4 million at December 31, 2024. Other intangible assets recorded include core deposit intangibles, which are subject to amortization. The weighted-average amortization period remaining for First Guaranty's core deposit intangibles is 3.5 years at September 30, 2025.