First Guaranty Bank(US:FGBI)2025-11-17 18:49Financial 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[110] - Net loss for the nine months ended September 30, 2025 was $58.5 million, a decrease of $69.9 million from net income of $11.4 million for the same period in 2024[170] - Net interest income for the three months ended September 30, 2025 was $22.2 million, a decrease from $22.7 million for the same period in 2024[174] - Net interest income for the nine months ended September 30, 2025, was $66.7 million, up from $65.9 million in 2024, indicating a slight increase of 1.2%[192] - Noninterest income decreased to $6.4 million for the nine months ended September 30, 2025, down from $22.2 million in 2024, a decline of 71.1%[201] - Noninterest expense totaled $65.5 million for the nine months ended September 30, 2025, compared to $59.2 million in 2024, an increase of 10.5%[203] Asset and Loan Management - Total assets decreased by $175.4 million to $3.8 billion as of September 30, 2025, compared to December 31, 2024[110] - Total loans decreased by $414.0 million, or 15.4%, to $2.3 billion as of September 30, 2025, compared to December 31, 2024[110] - Net loans decreased by $464.9 million, or 17.5%, to $2.2 billion as of September 30, 2025, due to a strategic focus on reducing risk in the loan portfolio[116] - Total deposits decreased by $121.4 million, or 3.5%, to $3.4 billion as of September 30, 2025, compared to December 31, 2024[110] - Nonaccrual loans increased by $5.7 million to $114.3 million as of September 30, 2025, compared to $108.5 million at December 31, 2024[112] - Special mention loans increased by $86.5 million in 2025, primarily due to downgrades during the year[122] 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[110] - The allowance for credit losses increased to $85.7 million, or 3.76% of total loans, compared to $34.8 million, or 1.29%, at December 31, 2024[110] - The provision for credit losses surged to $79.1 million for the nine months ended September 30, 2025, compared to $14.0 million in the same period of 2024, representing a significant increase of 464.3%[197] - Total charge-offs for the nine months ended September 30, 2025, were $29.4 million, compared to $13.7 million in 2024, reflecting an increase of 115.6%[197] Equity and Capital - Total shareholders' equity decreased to $221.1 million at September 30, 2025, down from $255.0 million at December 31, 2024, primarily due to a net loss of $58.5 million during the nine months ended September 30, 2025[211] - The capital conservation buffer for First Guaranty was 3.49% as of September 30, 2025, exceeding the minimum requirement of 2.50%[213] - The Tier 1 Risk-based Capital Ratio for the Bank was 11.09% as of September 30, 2025, compared to 11.00% at December 31, 2024[217] Interest Income and Expenses - Interest income decreased by $3.9 million, or 6.8%, to $53.5 million for the three months ended September 30, 2025[176] - Interest income on loans decreased by $10.5 million, or 21.1%, to $39.3 million for the three months ended September 30, 2025[178] - Interest expense decreased by $2.5 million or 2.6%, totaling $95.6 million for the nine months ended September 30, 2025, compared to $98.1 million for the same period in 2024[185] - The net interest margin decreased to 2.34% for the three months ended September 30, 2025, compared to 2.51% for the same period in 2024[190] Securities and Investments - Investment securities net of the allowance for credit losses totaled $696.7 million at September 30, 2025, an increase of $94.0 million from $602.7 million at December 31, 2024[128] - The available for sale securities portfolio increased by $93.2 million, or 33.2%, to $374.3 million at September 30, 2025, primarily due to purchases of collateralized mortgage obligations and mortgage-backed securities[130] - The average maturity of the securities portfolio is approximately 7.02 years, with an estimated effective duration of 5.28 years as of September 30, 2025[132] Employee and Operational Metrics - Full-time equivalent employees decreased to 339 as of September 30, 2025, down from 404 a year earlier[113] - The average balance of total interest-earning assets increased by $164.2 million to $3.8 billion for the three months ended September 30, 2025[174] - The average balance of loans decreased by $317.3 million to $2.5 billion for the nine months ended September 30, 2025, from $2.8 billion for the same period in 2024[182]