EX-99.1 2 fgbi-ex991earningspressrel.htm EX-99.1 Document

EXHIBIT 99.1
OCTOBER 31, 2025
NEWS FOR IMMEDIATE RELEASE
CONTACT: ERIC J. DOSCH, CFO
985.375.0308
 
First Guaranty Bancshares, Inc. Announces Third Quarter 2025 Financial Results

Hammond, Louisiana, October 31, 2025 – First Guaranty Bancshares, Inc. ("First Guaranty") (NASDAQ: FGBI), the holding company for First Guaranty Bank, announced its unaudited financial results for the third quarter and nine months ending September 30, 2025.

Financial Highlights for the third quarter and nine months ended September 30, 2025, are as follows:

•Net (loss) income for the three months ended September 30, 2025 and 2024 was $(45.0) million and $1.9 million respectively, a decrease of $46.9 million. Net (loss) income for the nine months ended September 30, 2025 and 2024 was $(58.5) million and $11.4 million, respectively, a decrease of $69.9 million. During the third quarter, First Guaranty recorded a $47.9 million provision for credit losses. $39.8 million of the $47.9 million provision was associated with one commercial lease relationship further described below. The provision for credit losses, together with the goodwill impairment charge of $12.9 million, were the primary drivers for the loss in the quarter, as net interest income, noninterest income and noninterest expense (excluding the goodwill impairment) were stable.

•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 classified as performing 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 that remain performing. The commercial leases are serviced by a third party.

•CEO Michael R. Mineer stated the following: "First Guaranty has made significant progress in reducing risk in our balance sheet and increasing our capital ratios. I am disappointed with the news associated with the auto parts bankruptcy but we have taken proactive steps to reserve against the credit given the current known facts. First Guaranty Bank's risk weighted capital ratio has improved to 12.34% at September 30, 2025 compared to 11.66% at September 30, 2024. Our business strategy change from July of last year prepared the bank to be able to withstand this event. We anticipate further clarification of our position in the fourth quarter of 2025. For the time being we will retain the high level of reserve against these commercial lease credits."

•First Guaranty recognized a one-time non-cash impairment charge to goodwill of $12.9 million. The impairment was the result of First Guaranty's stock price trading below book value and the recent increase in credit provisions. The impairment charge did not impact regulatory capital ratios.

•Total assets decreased $175.4 million and were $3.8 billion at September 30, 2025 compared to December 31, 2024. Total loans at September 30, 2025 were $2.3 billion, a decrease of $414.0 million, or 15.4%, compared with December 31, 2024. Total deposits were $3.4 billion at September 30, 2025, a decrease of $121.4 million, or 3.5%, compared with December 31, 2024. Retained earnings were $12.3 million at September 30, 2025, a decrease of $60.6 million compared to $73.0 million at December 31, 2024. Shareholders' equity was $221.1 million and $255.0 million at September 30, 2025 and December 31, 2024, respectively.

•(Loss) earnings per common share were $(3.01) and $0.11 for the three months ended September 30, 2025 and 2024, respectively. Total weighted average shares outstanding were 15,122,702 and 12,504,717 for the three months ended September 30, 2025 and 2024, respectively. (Loss) earnings per common share were $(4.45) and $0.78 for the nine months ended September 30, 2025 and 2024, respectively. Total weighted average shares outstanding were 13,523,009 and 12,499,799 for the nine months ended September 30, 2025 and 2024, respectively. The change in shares was primarily due to the conversion of $15.0 million in subordinated debt in the second quarter and the issuance of 122,503 shares of common stock under private placement during the third quarter of 2025.

•The allowance for credit losses was 3.76% of total loans at September 30, 2025 compared to 1.29% at December 31, 2024.

•Net interest income for the three months ended September 30, 2025 was $22.2 million compared to $22.7 million for the three months ended September 30, 2024. Net interest income for the nine months ended September 30, 2025 was $66.7 million compared to $65.9 million for the nine months ended September 30, 2024.

•The provision for credit losses for the three months ended September 30, 2025 was $47.9 million compared to $4.9 million for the three months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 was $79.1 million compared to $14.0 million for the nine months ended September 30, 2024.

•Charge-offs were $21.3 million during the three months ended September 30, 2025 and $2.6 million during the same period in 2024. Charge-offs for the third quarter of 2025 were concentrated with two commercial real estate credits. $9.4 million was charged off on an independent living center located in Louisiana. $10.4 million was charged off on an apartment complex located in Texas. Recoveries totaled $0.3 million during the three months ended September 30, 2025 and $0.2 million during the same period in 2024. Charge-offs were $29.4 million during the nine months ended September 30, 2025 and $13.7 million during the same period in 2024. Recoveries totaled $0.7 million during the nine months ended September 30, 2025 and $0.7 million during the same period in 2024.



•First Guaranty had $12.1 million of other real estate owned as of September 30, 2025 compared to $0.3 million at December 31, 2024. $7.4 million of other real estate owned as of September 30, 2025 is comprised of a land development project that is under contract to be sold in the fourth quarter of 2025. First Guaranty also transferred $4.4 million of existing bank owned properties previously used as either operating branches or future branch development to other real estate owned. The bank plans to sell these properties.

•The net interest margin for the three months ended September 30, 2025 was 2.34% which was a decrease of 17 basis points from the net interest margin of 2.51% for the same period in 2024. The net interest margin for the nine months ended September 30, 2025 was 2.35% which was a decrease of 17 basis points from the net interest margin of 2.52% for the same period in 2024. Loans as a percentage of average interest earning assets decreased to 65.1% at September 30, 2025 compared to 80.0% at September 30, 2024.

•Investment securities totaled $696.7 million at September 30, 2025, an increase of $94.0 million when compared to $602.7 million at December 31, 2024. At September 30, 2025, available for sale securities, at fair value, totaled $374.3 million, an increase of $93.2 million when compared to $281.1 million at December 31, 2024. At September 30, 2025, held to maturity securities, at amortized cost and net of the allowance for credit losses totaled $322.4 million, an increase of $0.8 million when compared to $321.6 million at December 31, 2024. The allowance for credit losses for HTM securities was $0.2 million at September 30, 2025 and December 31, 2024.

•Total loans net of unearned income were $2.3 billion at September 30, 2025, a net decrease of $414.0 million from December 31, 2024. Total loans net of unearned income are reduced by the allowance for credit losses which totaled $85.7 million at September 30, 2025 and $34.8 million at December 31, 2024, respectively.

•Nonaccrual loans increased $5.7 million to $114.3 million at September 30, 2025 compared to $108.5 million at December 31, 2024. Nonaccrual loans decreased $4.9 million when compared to June 30, 2025. The decrease compared to June 30, 2025 was due principally to the payoff on an $8.8 million commercial real estate loan located in the Midwest and to associated charge offs on existing nonaccrual loans that totaled $21.0 million in the quarter. The decrease was partially offset by the $17.2 million commercial lease placed into nonaccrual.

•At September 30, 2025, the largest 10 non-performing loan relationships comprise 77% of total non-performing assets. Additional details on the non-performing relationships are as follows:
1.A $18.1 million loan relationship secured by an independent living center located in Louisiana; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $27.5 million at June 30, 2025 and was charged down by $9.4 million in the third quarter of 2025.
2.A $17.2 million commercial equipment lease located primarily in Kansas; it was placed in nonaccrual in the third quarter of 2025. This relates to the auto parts bankruptcy.
3.A $15.4 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the fourth quarter of 2024. The principal balance was $25.8 million at June 30, 2025 and was charged down by $10.4 million in the third quarter of 2025.
4.A $15.1 million loan relationship secured by an assisted living center located in Louisiana; the loan was placed on nonaccrual in the second quarter of 2025. Payments received on the loan in the third quarter of 2025 reduced the balance by $0.5 million.
5.A $8.3 million loan relationship secured by an assisted living center located in Texas; the loan was placed on nonaccrual in the third quarter of 2025.
6.A $7.4 million loan relationship secured by land located in Texas; the loan was transferred to other real estate owned in the second quarter of 2025.
7.A $6.5 million loan relationship secured by a multifamily apartment complex located in Texas; the loan was placed on nonaccrual in the second quarter of 2025.
8.A $5.2 million loan relationship was placed on nonaccrual during the second quarter of 2025. The loan is secured by multifamily apartment complexes located in Louisiana.
9.A $2.2 million loan relationship was placed on nonaccrual during the third quarter of 2025. This loan is secured by a retail location located in Florida.
10.A $1.6 million loan relationship was placed on nonaccrual during the fourth quarter of 2024. This loan is secured by a convenience store located in Texas.

•First Guaranty charged off $21.3 million in loan balances during the third quarter of 2025. The details of the $21.3 million in charged-off loans were as follows:
1.First Guaranty charged off $0.3 million in consumer loans during the third quarter of 2025. The consumer loan charge offs included $0.1 million in credit card loans, $0.1 million of loans secured by automobiles or equipment, and $0.1 million in unsecured loans.
2.First Guaranty charged off $10.4 million on a multifamily loan during the third quarter of 2025. This relationship had a remaining principal balance of $15.4 million as of September 30, 2025.
3.First Guaranty charged off $9.4 million on a non-farm non-residential loan relationship secured by an independent living center during the third quarter of 2025. This relationship had a remaining principal balance of $18.1 million as of September 30, 2025.
4.First Guaranty charged off $0.5 million on a commercial lease loan relationship during the third quarter of 2025. This relationship had no remaining principal balance as of September 30, 2025.
5.First Guaranty charged off $0.4 million on a 1-4 family loan relationship during the third quarter of 2025. This relationship had a remaining principal balance of $0.7 million as of September 30, 2025.
6.Smaller loans and overdrawn deposit accounts comprised the remaining $0.3 million of charge-offs for the third quarter of 2025.

•Noninterest expense totaled $30.2 million for the third quarter of 2025 (including $12.9 million of goodwill impairment), $17.3 million for the second quarter of 2025, $18.0 million for the first quarter of 2025, $17.9 million for the fourth quarter of 2024, and $19.7 million for the


third quarter of 2024. Full time equivalent employees totaled 339 at September 30, 2025. Full time equivalent employees totaled 360 at June 30, 2025, 380 at March 31, 2025, 399 at December 31, 2024, and 404 at September 30, 2024.

•Return on average assets for the three months ended September 30, 2025 and 2024 was (4.61)% and 0.21%, respectively. Return on average assets for the nine months ended September 30, 2025 and 2024 was (2.00)% and 0.42%, respectively. Return on average common equity for the three months ended September 30, 2025 and 2024 was (78.41)% and 2.40%, respectively. Return on average common equity for the nine months ended September 30, 2025 and 2024 was (35.83)% and 5.87% respectively. Return on average assets is calculated by dividing annualized net income by average assets. Return on average common equity is calculated by dividing annualized net income by average common equity.

•Book value per common share was $12.25 as of September 30, 2025 compared to $17.75 as of December 31, 2024. The decrease was due primarily to the decrease in retained earnings and recent issuance of new shares, offset by changes in accumulated other comprehensive income ("AOCI"). AOCI is comprised of unrealized gains and losses on available for sale securities, including unrealized losses on available for sale securities at the time of transfer to held to maturity.

•First Guaranty's Board of Directors declared cash dividends of $0.01 and $0.08 per common share in the third quarter of 2025 and 2024. The reduction in the common stock dividend payment was done in order to preserve capital as part of First Guaranty’s new business strategy announced in the third quarter of 2024. First Guaranty has paid 129 consecutive quarterly dividends as of September 30, 2025.

•First Guaranty paid preferred stock dividends of $1.7 million during the first nine months of 2025 and 2024.

About First Guaranty

First Guaranty Bancshares, Inc. is the holding company for First Guaranty Bank, a Louisiana state-chartered bank. Founded in 1934, First Guaranty Bank offers a wide range of financial services and focuses on building client relationships and providing exceptional customer service. First Guaranty Bank currently operates thirty-five locations throughout Louisiana, Texas, Kentucky and West Virginia. First Guaranty’s common stock trades on the NASDAQ under the symbol FGBI. For more information, visit www.fgb.net.
Forward Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended with respect to the financial condition, liquidity, results of operations, and future performance of the business of First Guaranty Bancshares, Inc. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” We caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. These forward-looking statements are subject to a number of factors and uncertainties, including, without limitation, the “Risk Factors” referenced in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and other risks and uncertainties listed from time to time in our reports and documents filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

No Offer or Solicitation

This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of First Guaranty. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)September 30, 2025December 31, 2024
Assets  
Cash and cash equivalents:  
Cash and due from banks$753,629 $563,778 
Federal funds sold554 430 
Cash and cash equivalents754,183 564,208 
Interest-earning time deposits with banks250250
Investment securities:  
Available for sale, at fair value (cost of $372,873 and $284,321 respectively)374,335 281,097 
Held to maturity, at cost and net of allowance for credit losses of $150 (estimated fair value of $264,566 and $251,458 respectively)322,413 321,622 
Investment securities696,748 602,719 
Federal Home Loan Bank stock, at cost10,079 9,706 
Loans held for sale— — 
Loans, net of unearned income2,279,741 2,693,780 
Less: allowance for credit losses85,713 34,811 
Net loans2,194,028 2,658,969 
Premises and equipment, net59,979 67,789 
Goodwill— 12,900 
Intangible assets, net2,847 3,474 
Other real estate, net12,050 319 
Accrued interest receivable14,776 14,850 
Other assets52,396 37,544 
Total Assets$3,797,336 $3,972,728 
Liabilities and Shareholders' Equity  
Deposits:  
Noninterest-bearing demand$396,906 $404,056 
Interest-bearing demand1,390,219 1,387,068 
Savings215,077 234,444 
Time1,352,695 1,450,692 
Total deposits3,354,897 3,476,260 
Short-term advances from Federal Home Loan Bank— — 
Short-term borrowings— — 
Repurchase agreements7,117 7,009 
Accrued interest payable16,333 20,437 
Long-term advances from Federal Home Loan Bank135,000 135,000 
Senior long-term debt14,196 15,169 
Junior subordinated debentures29,790 44,745 
Other liabilities18,928 19,059 
Total Liabilities3,576,261 3,717,679 
Shareholders' Equity  
Preferred stock, Series A - $1,000 par value - 100,000 shares authorized  
Non-cumulative perpetual; 34,500 issued and outstanding33,058 33,058 
Common stock, $1 par value - 100,600,000 shares authorized; 15,352,947 and 12,504,717 shares issued and outstanding15,353 12,505 
Surplus168,682 149,389 
Retained earnings12,342 72,965 
Accumulated other comprehensive (loss) income(8,360)(12,868)
Total Shareholders' Equity221,075 255,049 
Total Liabilities and Shareholders' Equity$3,797,336 $3,972,728 
See Notes to Consolidated Financial Statements  



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands, except share data)2025202420252024
Interest Income:
Loans (including fees)$39,325 $49,811 $123,307 $144,281 
Deposits with other banks7,777 4,645 21,287 11,747 
Securities (including FHLB stock)6,398 2,971 17,690 7,958 
Total Interest Income53,500 57,427 162,284 163,986 
Interest Expense:
Demand deposits13,185 16,957 38,097 50,992 
Savings deposits1,058 1,374 3,656 3,928 
Time deposits14,519 12,631 45,605 32,649 
Borrowings2,500 3,767 8,225 10,556 
Total Interest Expense31,262 34,729 95,583 98,125 
Net Interest Income22,238 22,698 66,701 65,861 
Less: Provision for credit losses47,933 4,904 79,091 14,013 
Net Interest Income (Loss) after Provision for Credit Losses(25,695)17,794 (12,390)51,848 
Noninterest Income:
Service charges, commissions and fees832 815 2,515 2,343 
ATM and debit card fees741 784 2,266 2,352 
Net gains on securities— — — — 
Net gains on sale of loans— 1,471 — 1,481 
Net (losses) gains on sale of assets(366)31 (362)13,244 
Other653 1,304 1,951 2,819 
Total Noninterest Income1,860 4,405 6,370 22,239 
Total Business Revenue (Loss), Net of Provision for Credit Losses(23,835)22,199 (6,020)74,087 
Noninterest Expense:
Salaries and employee benefits7,465 10,098 23,749 30,438 
Occupancy and equipment expense2,605 2,538 7,850 7,356 
Goodwill impairment12,900 — 12,900 — 
Other7,205 7,070 20,960 21,455 
Total Noninterest Expense30,175 19,706 65,459 59,249 
(Loss) Income Before Income Taxes(54,010)2,493 (71,479)14,838 
Less: (Benefit) provision for income taxes(9,007)566 (13,007)3,400 
Net (Loss) Income(45,003)1,927 (58,472)11,438 
Less: Preferred stock dividends582 582 1,746 1,747 
Net (Loss) Income Available to Common Shareholders$(45,585)$1,345 $(60,218)$9,691 
Per Common Share:
(Loss) Earnings$(3.01)$0.11 $(4.45)$0.78 
Cash dividends paid$0.01 $0.08 $0.03 $0.40 
Weighted Average Common Shares Outstanding15,122,702 12,504,717 13,523,009 12,499,799 
See Notes to Consolidated Financial Statements




FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended
September 30,		Three Months Ended June 30,Three Months Ended March 31,Three Months Ended December 31,
(in thousands, except share data)2025202520252024
Interest Income:
Loans (including fees)$39,325 $41,013 $42,969 $46,101 
Deposits with other banks7,777 7,511 5,999 5,652 
Securities (including FHLB stock)6,398 5,797 5,495 5,967 
Total Interest Income53,500 54,321 54,463 57,720 
Interest Expense:
Demand deposits13,185 12,708 12,204 14,339 
Savings deposits1,058 1,336 1,262 1,245 
Time deposits14,519 15,196 15,890 16,517 
Borrowings2,500 2,841 2,884 3,042 
Total Interest Expense31,262 32,081 32,240 35,143 
Net Interest Income22,238 22,240 22,223 22,577 
Less: Provision for credit losses47,933 16,610 14,548 6,021 
Net Interest Income (Loss) after Provision for Credit Losses(25,695)5,630 7,675 16,556 
Noninterest Income:
Service charges, commissions and fees832 834 849 846 
ATM and debit card fees741 778 747 780 
Net gains on securities— — — — 
Net gains on sale of loans— — — — 
Net (losses) gains on sale of assets(366)— 4 62 
Other653 544 754 812 
Total Noninterest Income1,860 2,156 2,354 2,500 
Total Business Revenue (Loss), Net of Provision for Credit Losses(23,835)7,786 10,029 19,056 
Noninterest Expense:
Salaries and employee benefits7,465 7,843 8,441 7,866 
Occupancy and equipment expense2,605 2,605 2,640 2,831 
Goodwill impairment12,900 — — — 
Other7,205 6,819 6,936 7,191 
Total Noninterest Expense30,175 17,267 18,017 17,888 
(Loss) Income Before Income Taxes(54,010)(9,481)(7,988)1,168 
Less: (Benefit) provision for income taxes(9,008)(2,178)(1,822)158 
Net (Loss) Income(45,002)(7,303)(6,166)1,010 
Less: Preferred stock dividends582 582 582 582 
Net (Loss) Income Available to Common Shareholders$(45,584)$(7,885)$(6,748)$428 
Per Common Share:
(Loss) Earnings$(3.01)$(0.61)$(0.54)$0.03 
Cash dividends paid$0.01 $0.01 $0.01 $0.01 
Weighted Average Common Shares Outstanding15,122,702 12,910,785 12,506,792 12,504,717 
See Notes to Consolidated Financial Statements


              FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Three Months Ended September 30, 2025Three Months Ended September 30, 2024
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$697,288 $7,777 4.42 %$364,538 $4,645 5.07 %
Securities (including FHLB stock)722,380 6,398 3.51 %424,620 2,971 2.78 %
Federal funds sold556 — — %2,211 — — %
Loans held for sale — — — %— — — %
Loans, net of unearned income (6)2,346,551 39,325 6.65 %2,811,227 49,811 7.05 %
Total interest-earning assets3,766,775 $53,500 5.63 %3,602,596 $57,427 6.34 %
Noninterest-earning assets:
Cash and due from banks21,031 19,021 
Premises and equipment, net65,039 68,974 
Other assets19,419 35,860 
Total Assets$3,872,264 $3,726,451 
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Demand deposits$1,399,102 $13,185 3.74 %$1,499,327 $16,957 4.50 %
Savings deposits213,383 1,058 1.97 %234,118 1,374 2.33 %
Time deposits1,362,955 14,519 4.23 %1,036,757 12,631 4.85 %
Borrowings186,087 2,500 5.33 %271,954 3,767 5.51 %
Total interest-bearing liabilities3,161,527 $31,262 3.92 %3,042,156 $34,729 4.54 %
Noninterest-bearing liabilities:
Demand deposits405,479 408,383 
Other41,541 19,562 
Total Liabilities3,608,547 3,470,101 
Shareholders' equity263,717 256,350 
Total Liabilities and Shareholders' Equity$3,872,264 $3,726,451 
Net interest income$22,238 $22,698 
Net interest rate spread (1)1.71 %1.80 %
Net interest-earning assets (2)$605,248 $560,440 
Net interest margin (3), (4)2.34 %2.51 %
Average interest-earning assets to interest-bearing liabilities119.14 %118.42 %
(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 2.51% for the above periods ended September 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 September 30, 2025 and 2024 respectively.
(5)Annualized.
(6)Includes loan fees of $1.0 million and $1.5 million for the three months ended September 30, 2025 and 2024 respectively.



FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)       
 Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
(in thousands except for %)Average BalanceInterestYield/Rate (5)Average BalanceInterestYield/Rate (5)
Assets      
Interest-earning assets:      
Interest-earning deposits with banks$640,961 $21,287 4.44 %$299,449 $11,747 5.24 %
Securities (including FHLB stock)683,930 17,690 3.46 %396,025 7,958 2.68 %
Federal funds sold534 — — %1,060 — — %
Loans held for sale 1,131 — — %— — — %
Loans, net of unearned income (6)2,476,128 123,307 6.66 %2,793,397 144,281 6.90 %
Total interest-earning assets3,802,684 $162,284 5.71 %3,489,931 $163,986 6.28 %
Noninterest-earning assets:      
Cash and due from banks20,691 19,439   
Premises and equipment, net66,041 69,951   
Other assets24,342 31,144   
Total Assets$3,913,758   $3,610,465   
Liabilities and Shareholders' Equity      
Interest-bearing liabilities:      
Demand deposits$1,380,225 $38,097 3.69 %$1,519,743 $50,992 4.48 %
Savings deposits231,206 3,656 2.11 %229,763 3,928 2.28 %
Time deposits1,403,370 45,605 4.34 %924,857 32,649 4.72 %
Borrowings196,267 8,225 5.60 %246,502 10,556 5.72 %
Total interest-bearing liabilities3,211,068 $95,583 3.98 %2,920,865 $98,125 4.49 %
Noninterest-bearing liabilities:      
Demand deposits404,640 416,389   
Other40,306 19,636   
Total Liabilities3,656,014   3,356,890   
Shareholders' equity257,744 253,575   
Total Liabilities and Shareholders' Equity$3,913,758   $3,610,465   
Net interest income $66,701   $65,861  
Net interest rate spread (1)  1.73 %  1.79 %
Net interest-earning assets (2)$591,616   $569,066   
Net interest margin (3), (4)  2.35 %2.52 %
Average interest-earning assets to interest-bearing liabilities  118.42 %119.48 %
(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 September 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 September 30, 2025 and 2024 respectively.
(5)Annualized.
(6)Includes loan fees of $3.9 million and $5.5 million for the nine months ended September 30, 2025 and 2024 respectively.




The following table summarizes the components of First Guaranty's loan portfolio as of September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024:

 September 30, 2025June 30, 2025March 31, 2025December 31, 2024
(in thousands except for %)BalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of CategoryBalanceAs % of Category
Real Estate:    
Construction & land development$231,156 10.1 %$268,828 11.1 %$288,291 11.4 %$330,048 12.2 %
Farmland31,685 1.4 %32,267 1.3 %29,961 1.2 %35,991 1.3 %
1- 4 Family441,017 19.3 %440,465 18.2 %444,373 17.6 %450,371 16.7 %
Multifamily137,582 6.0 %144,864 6.0 %144,518 5.7 %165,121 6.1 %
Non-farm non-residential1,003,198 43.9 %1,052,503 43.5 %1,117,174 44.4 %1,159,842 42.9 %
Total Real Estate1,844,638 80.7 %1,938,927 80.1 %2,024,317 80.3 %2,141,373 79.2 %
Non-Real Estate:
Agricultural44,737 2.0 %42,831 1.8 %37,599 1.5 %40,722 1.5 %
Commercial and industrial(1)
227,077 9.9 %238,144 9.9 %234,511 9.3 %257,518 9.5 %
Commercial leases134,958 5.9 %159,209 6.6 %183,993 7.3 %220,200 8.2 %
Consumer and other34,763 1.5 %38,240 1.6 %39,773 1.6 %42,267 1.6 %
Total Non-Real Estate441,535 19.3 %478,424 19.9 %495,876 19.7 %560,707 20.8 %
Total loans before unearned income2,286,173 100.0 %2,417,351 100.0 %2,520,193 100.0 %2,702,080 100.0 %
Unearned income(6,432) (6,846)(7,405)(8,300)
Total loans net of unearned income$2,279,741  $2,410,505 $2,512,788 $2,693,780 





The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated.
(in thousands)September 30, 2025June 30, 2025March 31, 2025December 31, 2024
Nonaccrual loans: 
Real Estate: 
Construction and land development$8,707 $1,766 $11,502 $3,624 
Farmland2,777 1,785 2,177 2,619 
1- 4 family10,536 11,866 10,582 10,053 
Multifamily23,998 34,668 26,533 27,542 
Non-farm non-residential42,532 59,668 72,949 54,171 
Total Real Estate88,550 109,753 123,743 98,009 
Non-Real Estate:
Agricultural1,886 1,782 1,798 1,992 
Commercial and industrial5,339 5,567 6,152 6,762 
Commercial leases18,358 1,961 1,533 1,533 
Consumer and other132 116 167 233 
Total Non-Real Estate25,715 9,426 9,650 10,520 
Total nonaccrual loans114,265 119,179 133,393 108,529 
Loans 90 days and greater delinquent & accruing:
Real Estate:
Construction and land development— — — 7,394 
Farmland— — — — 
1- 4 family— — — — 
Multifamily— — — — 
Non-farm non-residential— 284 387 4,108 
Total Real Estate— 284 387 11,502 
Non-Real Estate:
Agricultural— — — — 
Commercial and industrial— — — — 
Commercial leases— — — — 
Consumer and other— — — — 
Total Non-Real Estate— — — — 
Total loans 90 days and greater delinquent & accruing— 284 387 11,502 
Total non-performing loans114,265 119,463 133,780 120,031 
Real Estate Owned:
Real Estate Loans:
Construction and land development8,545 7,384 — 226 
Farmland— — — — 
1- 4 family234 192 62 3 
Multifamily— — — — 
Non-farm non-residential3,271 81 90 90 
Total Real Estate12,050 7,657 152 319 
Non-Real Estate Loans:
Agricultural— — — — 
Commercial and industrial— — — — 
Commercial leases— — — — 
Consumer and other— — — — 
Total Non-Real Estate— — — — 
Total Real Estate Owned12,050 7,657 152 319 
Total non-performing assets$126,315 $127,120 $133,932 $120,350 
Non-performing assets to total loans5.54 %5.27 %5.33 %4.47 %
Non-performing assets to total assets3.33 %3.20 %3.50 %3.03 %
Non-performing loans to total loans5.01 %4.96 %5.32 %4.46 %
Nonaccrual loans to total loans5.01 %4.94 %5.31 %4.03 %
Allowance for credit losses to nonaccrual loans75.01 %49.40 %32.25 %32.08 %
Net loan charge-offs to average loans1.55 %0.60 %1.03 %0.64 %


Top 10 Non-Performing Assets  
 
Current BalanceAllocated ReserveOrigination YearLocation
Asset Description    
1Independent Living Center$18,070 $10,460 2021Louisiana
2Commercial Lease 17,187 17,187 2024Kansas
3Apartment Complex15,390 — 2022Texas
4Assisted Living Center15,121 — 2019Louisiana
5Assisted Living Center8,252 — 2023Texas
6Land Development OREO7,384 — 2022Texas
7Apartment Complex6,502 148 2022Texas
8Apartment Complex5,244 857 2023Louisiana
9Retail Location2,150 — 2020Florida
10Convenience Store1,640 — 2021Texas
$96,940 $28,652 



The following table presents, for the periods indicated, the major categories of other noninterest expense:

 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Other noninterest expense:  
Legal and professional fees$988 $625 $2,747 $3,102 
Data processing336 413 1,022 1,196 
ATM fees390 424 1,242 1,237 
Marketing and public relations151 296 555 999 
Taxes - sales, capital, and franchise542 678 1,585 1,890 
Operating supplies66 41 152 247 
Software expense and amortization1,211 1,203 3,615 3,824 
Travel and lodging88 112 286 599 
Telephone88 135 283 378 
Amortization of core deposit intangibles174 174 522 522 
Donations51 58 191 241 
Net costs from other real estate and repossessions13 150 87 533 
Regulatory assessment1,777 1,182 4,930 3,105 
Other1,330 1,579 3,743 3,582 
Total other noninterest expense$7,205 $7,070 $20,960 $21,455 

The following table presents, for the periods indicated, the major categories of other noninterest expense:

 Three Months Ended September 30,Three Months Ended June 30,Three Months Ended March 31,Three Months Ended December 31,
(in thousands)2025202520252024
Other noninterest expense:  
Legal and professional fees$988 $671 $1,088 $1,363 
Data processing336 349 337 359 
ATM fees390 502 350 431 
Marketing and public relations151 163 241 241 
Taxes - sales, capital, and franchise542 543 500 347 
Operating supplies66 49 37 89 
Software expense and amortization1,211 1,188 1,216 1,269 
Travel and lodging88 126 72 86 
Telephone88 104 91 46 
Amortization of core deposit intangibles174 174 174 174 
Donations51 82 58 26 
Net costs from other real estate and repossessions13 24 50 294 
Regulatory assessment1,777 1,609 1,544 1,583 
Other1,330 1,235 1,178 883 
Total other noninterest expense$7,205 $6,819 $6,936 $7,191 


Non-GAAP Financial Measures
 
Our accounting and reporting policies conform to accounting principles generally accepted in the United States, or GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional metrics. Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures.
 
Our management, banking regulators, many financial analysts and other investors use these non-GAAP financial measures to compare the capital adequacy of banking organizations with significant amounts of preferred equity and/or goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions. Tangible equity, tangible assets, tangible book value per share or related measures should not be considered in isolation or as a substitute for total shareholders' equity, total assets, book value per share or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate tangible equity, tangible assets, tangible book value per share and any other related measures may differ from that of other companies reporting measures with similar names.
 
The following table reconciles, as of the dates set forth below, shareholders' equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.

 At September 30,At December 31,
(in thousands except for share data and %)20252024202320222021
Tangible Common Equity  
Total shareholders' equity$221,075 $255,049 $249,631 $234,991 $223,889 
Adjustments:
Preferred33,058 33,058 33,058 33,058 33,058 
Goodwill— 12,900 12,900 12,900 12,900 
Acquisition intangibles2,439 2,962 3,658 4,355 5,051 
Other intangibles100 100 100 — — 
Tangible common equity$185,478 $206,029 $199,915 $184,678 $172,880 
Common shares outstanding
15,352,947 12,504,717 12,475,424 10,716,796 10,716,796 
Book value per common share
$12.25 $17.75 $17.36 $18.84 $17.81 
Tangible book value per common share
$12.08 $16.48 $16.03 $17.23 $16.13 
Tangible Assets
Total Assets$3,797,336 $3,972,728 $3,552,772 $3,151,347 $2,878,120 
Adjustments:
Goodwill— 12,900 12,900 12,900 12,900 
Acquisition intangibles2,439 2,962 3,658 4,355 5,051 
Other intangibles100 100 100 — — 
Tangible Assets$3,794,797 $3,956,766 $3,536,114 $3,134,092 $2,860,169 
Tangible common equity to tangible assets4.89 %5.21 %5.65 %5.89 %6.04 %























Regulatory Capital
 
Risk-based capital regulations adopted by the FDIC require banks to achieve and maintain specified ratios of capital to risk-weighted assets. Similar capital regulations apply to bank holding companies over $3.0 billion in assets. The risk-based capital rules are designed to measure "Tier 1" capital (consisting of common equity, retained earnings and a limited amount of qualifying perpetual preferred stock and trust preferred securities, net of goodwill and other intangible assets and accumulated other comprehensive income) and total capital in relation to the credit risk of both on- and off- balance sheet items. Under the guidelines, one of its risk weights is applied to the different on-balance sheet items. Off-balance sheet items, such as loan commitments, are also subject to risk weighting. Applicable bank holding companies and all banks must maintain a minimum total capital to total risk weighted assets ratio of 8.00%, at least half of which must be in the form of core or Tier 1 capital. These guidelines also specify that bank holding companies that are experiencing internal growth or making acquisitions will be expected to maintain capital positions substantially above the minimum supervisory levels.
 
In order to avoid limitations on distributions, including dividend payments, and certain discretionary bonus payments to executive officers, an institution must hold a capital conservation buffer above its minimum risk-based capital requirements. As of September 30, 2025, the Bank's capital conservation buffer was 4.34% exceeding the minimum of 2.50%. As of September 30, 2025, First Guaranty's capital conservation buffer was 3.48% exceeding the minimum of 2.50%.

As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Federal Reserve Board has amended its small bank holding company and savings and loan holding company policy statement to provide that holding companies with consolidated assets of less than $3 billion that are (i) not engaged in significant nonbanking activities, (ii) do not conduct significant off-balance sheet activities, and (3) do not have a material amount of SEC-registered debt or equity securities, other than trust preferred securities, that contribute to an organization's complexity, are no longer subject to regulatory capital requirements, effective August 30, 2018. On January 1, 2024, First Guaranty ceased being considered a "small bank holding company". Accordingly, both the Bank and First Guaranty are required to maintain specified ratios of capital to risk-weighted assets.

In addition, as a result of the legislation, the federal banking agencies have developed a "Community Bank Leverage Ratio" (the ratio of a bank's Tier 1 capital to average total consolidated assets) for financial institutions with assets of less than $10 billion.  A "qualifying community bank" that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered "well capitalized" under Prompt Corrective Action statutes. The federal banking agencies may consider a financial institution's risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies set the new Community Bank Leverage Ratio at 9%. Pursuant to the CARES Act, the federal banking agencies set the Community Bank Leverage Ratio at 8% beginning in the second quarter of 2020 through the end of 2020. Beginning in 2021, the Community Bank Leverage Ratio increased to 8.5% for the calendar year. Community banks will have until January 1, 2022, before the Community Bank Leverage Ratio requirement will return to 9%. A financial institution can elect to be subject to this new definition. As of September 30, 2025, the Bank has not elected to follow the Community Bank Leverage Ratio.

At September 30, 2025, we satisfied the minimum regulatory capital requirements and were well capitalized within the meaning of federal regulatory requirements. 





 "Well Capitalized Minimums"As of September 30, 2025As of December 31, 2024
Tier 1 Leverage Ratio   
Bank5.00%6.92%7.82%
Consolidated5.00%5.91%6.42%
Tier 1 Risk-based Capital Ratio
Bank8.00%11.09%11.00%
Consolidated8.00%9.48%9.04%
Total Risk-based Capital Ratio
Bank10.00%12.34%12.11%
Consolidated10.00%11.97%11.73%
Common Equity Tier One Capital Ratio
Bank6.50%11.09%11.00%
Consolidated6.50%8.11%7.87%