Company: FGBI
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001408534-25-000070
Chunk: 145

Company: First Guaranty Bancshares, Inc.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 deposits. 

Total Shareholders' Equity

Total shareholders' equity increased to $263.1 million at June 30, 2025 from $255.0 million at December 31, 2024. The increase in shareholders' equity was principally the result of an increase of $17.7 million in surplus, a decrease of $2.7 million in accumulated other comprehensive loss, and an increase of $2.6 million in common stock, offset by a decrease of $14.9 million in retained earnings. The $17.7 million increase in surplus and $2.6 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 six 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 six months ended June 30, 2025. The $14.9 million decrease in retained earnings was primarily due to net loss of $13.5 million during the six months ended June 30, 2025, $0.3 million in cash dividends paid on shares of our common stock and $1.2 million in cash dividends paid on shares of our preferred stock.

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Results of Operations for the Second Quarter Ended June 30, 2025 and 2024 

Performance Summary 

Three months ended June 30, 2025 compared to the three months ended June 30, 2024. Net loss for the three months ended June 30, 2025 was $7.3 million, a decrease of $14.5 million, from net income of $7.2 million for the three months ended June 30, 2024. The decrease in net income for the three months ended June 30, 2025 as compared to the prior year period was primarily the result of the provision to the credit allowance 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 second quarter. The decrease in noninterest income was related to the decrease of net gains on sale of assets related to the sale-leaseback transaction from the prior year. This was partially offset by an increase in interest income, a decrease in interest expense, and a decrease in noninterest expense. Loan interest income decreased primarily due to