Financial Performance - First Guaranty recorded a net loss of $6.2 million for the three months ended March 31, 2025, compared to a net income of $2.3 million for the same period in 2024, representing a decrease of $8.5 million [107]. - Total shareholders' equity decreased to $251.4 million at March 31, 2025, down from $255.0 million at December 31, 2024, primarily due to a $6.9 million decrease in retained earnings [156]. - The net loss for the three months ended March 31, 2025, was $6.2 million, with cash dividends paid amounting to $0.1 million on common stock and $0.6 million on preferred stock [183]. Loan and Asset Management - Total loans decreased by $181.0 million, or 6.7%, to $2.5 billion at March 31, 2025, compared to $2.69 billion at December 31, 2024 [107]. - Nonaccrual loan balances increased by $24.9 million to $133.4 million at March 31, 2025, with significant increases concentrated in two loans totaling $40.3 million [109]. - Net loans decreased by $189.2 million, or 7.1%, to $2.5 billion as of March 31, 2025, compared to December 31, 2024 [112]. - Nonperforming assets totaled $133.9 million, or 3.50% of total assets, an increase of $13.6 million, or 11.3%, from $120.4 million, or 3.03%, at December 31, 2024 [127]. - Nonaccrual loans increased from $108.5 million at December 31, 2024, to $133.4 million at March 31, 2025, with a concentration in two commercial real estate relationships totaling $40.3 million [128]. Credit Loss Provisions - The provision for credit losses was $14.5 million for the first quarter of 2025, significantly higher than $2.3 million for the same period in 2024 [107]. - The allowance for credit losses increased to $43.0 million, or 1.71% of total loans, at March 31, 2025, compared to $34.8 million, or 1.29%, at December 31, 2024 [107]. - A provision for credit losses of $14.5 million was made during the three months ended March 31, 2025, compared to $2.3 million for the same period in 2024 [138]. - Total charge-offs for the three months ended March 31, 2025, were $6.9 million, compared to $2.3 million for the same period in 2024, an increase of 200% [172]. Deposits and Funding - Total deposits decreased by $136.8 million, or 3.9%, to $3.3 billion at March 31, 2025, compared to $3.4 billion at December 31, 2024 [107]. - Noninterest-bearing demand deposits increased by $21.6 million, or 5.3%, to $425.6 million at March 31, 2025 [143]. - Interest-bearing demand deposits decreased by $138.4 million, or 10.0%, to $1.2 billion at March 31, 2025 [143]. - Public funds deposits totaled $928.4 million at March 31, 2025, down from $1.0 billion at December 31, 2024 [150]. - Total public funds as a percentage of total deposits decreased to 27.8% at March 31, 2025, from 30.1% at December 31, 2024 [152]. Interest Income and Expenses - Net interest income increased to $22.2 million for the three months ended March 31, 2025, compared to $21.9 million for the same period in 2024, driven by an increase in the average balance of interest-earning assets [160]. - Interest income rose by $1.6 million, or 2.9%, to $54.5 million for the three months ended March 31, 2025, attributed to an increase in the average balance of interest-earning assets [161]. - Interest income on loans decreased by $3.9 million, or 8.4%, to $43.0 million for the three months ended March 31, 2025, due to a decrease in the average balance of loans [163]. - Interest expense increased by $1.3 million, or 4.0%, to $32.2 million for the three months ended March 31, 2025, primarily due to an increase in the average balance of interest-bearing liabilities [165]. Capital and Regulatory Compliance - The capital conservation buffer was 4.74% as of March 31, 2025, exceeding the minimum requirement of 2.50% [185]. - The Bank satisfied the minimum regulatory capital requirements and was classified as well capitalized as of March 31, 2025 [188]. - The Tier 1 Risk-based Capital Ratio for the Bank was 11.49% as of December 31, 2024, and decreased to 8.00% as of March 31, 2025 [189]. Asset Composition - Total assets decreased by $143.5 million, or 3.6%, to $3.8 billion at March 31, 2025, primarily due to decreases in investment securities and net loans [111]. - Investment securities decreased by $7.8 million to $594.9 million as of March 31, 2025, from $602.7 million at December 31, 2024 [119]. - The available for sale securities portfolio decreased by $8.1 million, or 2.9%, to $273.0 million at March 31, 2025 [121]. - Approximately 80.3% of the loan portfolio was secured by real estate as of March 31, 2025 [113]. Business Strategy and Adjustments - The company modified its business plan in 2024 to reduce the liability-sensitive nature of its balance sheet [192].
FIRST GTY BANCSH(FGBIP) - 2025 Q1 - Quarterly Report