Company: FGBI
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001408534-25-000092
Chunk: 240

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 2
Chunk 240
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 was primarily due to net loss of $58.5 million during the nine months ended September 30, 2025, $0.4 million in cash dividends paid on shares of our common stock and $1.7 million in cash dividends paid on shares of our preferred stock. The $19.3 million increase in surplus and $2.8 million increase in common stock was primarily due to the conversion of $15.0 million in subordinated debt and the issuance of common stock under private placement during the first nine months of 2025. The decrease in accumulated other comprehensive loss was primarily attributed to the decrease in unrealized losses on available for sale securities during the nine months ended September 30, 2025. 

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Results of Operations for the Third Quarter Ended September 30, 2025 and 2024 

Performance Summary 

Three months ended September 30, 2025 compared to the three months ended September 30, 2024. Net loss for the three months ended September 30, 2025 was $45.0 million, a decrease of $46.9 million, from net income of $1.9 million for the three months ended September 30, 2024. The decrease in net income for the three months ended September 30, 2025 as compared to the prior year period was primarily the result of the provision to the credit allowance, the goodwill impairment charge, and a decrease in noninterest income. The increase in the provision for credit losses was related to changes within the portfolio, loan sales and charge-offs experienced in the third quarter. $39.8 million of the $47.9 million provision was associated with one commercial lease relationship. First Guaranty has a $52.0 million credit exposure associated with commercial lease financing to entities related to an auto parts manufacturer that declared Chapter 11 bankruptcy during the third quarter. The credit exposure consists of one $17.2 million commercial lease, which was past due on its payments and placed on nonaccrual as of September 30, 2025, and three commercial leases totaling $34.8 million that were current on payments and remained on accrual status as of September 30, 2025. First Guaranty has downgraded all four lease credits to substandard and impaired status. A specific reserve of $17.2 million has been established for the nonaccrual credit and a specific reserve of $22.6 million has been established for the three lease credits