Financial 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] - 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] - Net (loss) income available to common shareholders for Q3 2025 was $(45,585) thousand, compared to $1,345 thousand in Q3 2024[13] - Net Loss Income available to Common Shareholders was $(45,584,000) for Q3 2025, compared to a profit of $428,000 in Q3 2024[15] 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] - Loans net of unearned income were $2,279,741,000 as of September 30, 2025, down from $2,410,505,000 in 2024, representing a decline of 5.4%[24] - The loan portfolio's real estate segment accounted for 80.7% of total loans as of September 30, 2025, compared to 79.2% in December 2024[24] Credit Losses and Provisions - The provision for credit losses for Q3 2025 was $47.9 million, significantly higher than $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] Noninterest Income and Expenses - Noninterest expense for Q3 2025 totaled $30.2 million, including a $12.9 million goodwill impairment charge[4] - Total noninterest expense increased to $30,175 thousand in Q3 2025, up from $19,706 thousand in Q3 2024[13] - 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 - 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] - The tangible common equity to tangible assets ratio was 4.89%, down from 5.21% in the previous year[33] - The Bank's Tier 1 leverage ratio was 6.92% as of September 30, 2025, compared to 7.82% at the end of 2024[39] - The company satisfied the minimum regulatory capital requirements and was classified as well capitalized[38] Asset Quality - Nonaccrual loans increased to $114.3 million at September 30, 2025, up from $108.5 million at December 31, 2024[4] - Non-performing assets to total loans ratio increased to 5.54%, up from 5.27% in the previous quarter[26] - Total other noninterest expense for the three months ended September 30, 2025, was $7,205,000, slightly higher than $7,070,000 in the same period last year[29] - The company reported a total of $126,315,000 in non-performing assets, a slight decrease from $127,120,000 in the previous quarter[26] Interest Income and Margin - Net interest income for Q3 2025 was $22.2 million, slightly down from $22.7 million in Q3 2024[3] - Total interest income for Q3 2025 was $53,500 thousand, a decrease from $57,427 thousand in Q3 2024[13] - The net interest margin for Q3 2025 was 2.34%, down from 2.51% in Q3 2024, reflecting a decrease in profitability from interest-earning assets[17] - The net interest margin decreased to 2.35% for the nine months ended September 30, 2025, compared to 2.52% for the same period in 2024[23]
FIRST GTY BANCSH(FGBIP) - 2025 Q3 - Quarterly Results