First Guaranty Bank(US:FGBI)2025-11-14 21:30Financial Performance - Net loss for Q3 2025 was $(45.0) million, a decrease of $46.9 million compared to a net income of $1.9 million in Q3 2024[3] - Net (loss) income available to common shareholders for Q3 2025 was $(45,585) thousand, compared to $1,345 thousand in Q3 2024[13] - Return on average assets for Q3 2025 was (4.61)%, compared to 0.21% in Q3 2024, and for the nine months ended September 30, 2025, it was (2.00)% versus 0.42% in 2024[9] - Return on average common equity for Q3 2025 was (78.41)%, down from 2.40% in Q3 2024, and for the nine months ended September 30, 2025, it was (35.83)% compared to 5.87% in 2024[9] Loan and Asset Management - Total loans decreased by $414.0 million, or 15.4%, to $2.3 billion as of September 30, 2025, compared to December 31, 2024[3] - Net loans decreased to $2,194,028 thousand as of September 30, 2025, from $2,658,969 thousand as of December 31, 2024[11] - The loan portfolio totaled $2,286,173,000 as of September 30, 2025, a decrease from $2,417,351,000 in 2024, representing a decline of 5.4%[24] - Nonaccrual loans increased to $114.3 million at September 30, 2025, up from $108.5 million at December 31, 2024[4] - Total nonaccrual loans amounted to $114,265,000, a decrease from $119,179,000 in the previous quarter, and an increase from $108,529,000 year-over-year[26] Credit Losses and Provisions - The provision for credit losses for Q3 2025 was $47.9 million, significantly up from $4.9 million in Q3 2024[3] - The allowance for credit losses increased to 3.76% of total loans at September 30, 2025, compared to 1.29% at December 31, 2024[3] - Provision for credit losses increased significantly to $47,933,000 in Q3 2025 from $6,021,000 in Q3 2024, indicating a substantial rise in expected credit losses[15] Income and Expenses - Total interest income for Q3 2025 was $53,500 thousand, a decrease from $57,427 thousand in Q3 2024[13] - Net interest income for Q3 2025 was $22.2 million, slightly down from $22.7 million in Q3 2024[3] - Total noninterest expense increased to $30,175 thousand in Q3 2025, up from $19,706 thousand in Q3 2024[13] - Noninterest Expense rose to $30,175,000 in Q3 2025, up from $17,888,000 in Q3 2024, primarily due to a goodwill impairment of $12,900,000[15] - Total Noninterest Income decreased to $1,860,000 in Q3 2025 from $2,500,000 in Q3 2024, reflecting a decline of 25.6%[15] Capital and Equity - The risk-weighted capital ratio improved to 12.34% at September 30, 2025, compared to 11.66% at September 30, 2024[3] - Shareholders' equity increased to $257,744,000, up from $253,575,000, indicating a growth of 1.7%[21] - As of September 30, 2025, total shareholders' equity was $221,075,000, a decrease from $255,049,000 as of December 31, 2024[33] - Tangible common equity stood at $185,478,000, down from $206,029,000 in the previous year[33] Asset and Liability Management - Total assets decreased by $175.4 million to $3.8 billion as of September 30, 2025, compared to December 31, 2024[3] - Total assets were reported at $3,797,336,000, compared to $3,972,728,000 at the end of 2024[33] - Total liabilities increased to $3,656,014,000, up from $3,356,890,000, reflecting a growth of 8.9%[21] Shareholder Returns - Cash dividends declared were $0.01 per common share in Q3 2025, down from $0.08 in Q3 2024, as part of a new business strategy to preserve capital[9] - Book value per common share decreased to $12.25 as of September 30, 2025, from $17.75 as of December 31, 2024, primarily due to a decrease in retained earnings and new share issuance[9] Regulatory Capital Ratios - The Bank's capital conservation buffer was 4.34%, exceeding the minimum requirement of 2.50%[35] - As of September 30, 2025, the Bank maintained a Tier 1 risk-based capital ratio of 11.09%, above the minimum requirement of 8.00%[39] - The total risk-based capital ratio for the Bank was 12.34%, exceeding the minimum requirement of 10.00%[39] - The Common Equity Tier One Capital Ratio for the Bank was 11.09%, well above the minimum of 6.50%[39]