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[110] - 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)%, down from 0.42% in 2024[114] - Loss per common share for the nine months ended September 30, 2025 was $(4.45), a decrease of $5.23 from $0.78 for the same period in 2024[170] - 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] - 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] 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] - 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 was $79.1 million for the first nine months of 2025, significantly higher than $14.0 million for the same period in 2024[126] - The allowance for credit losses on loans was $85.7 million, representing 3.76% of total loans and 75.0% of nonperforming loans as of September 30, 2025[148] Deposits and Funding - 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] - Noninterest-bearing demand deposits decreased by $7.2 million, or 1.8%, to $396.9 million at September 30, 2025, primarily due to seasonal activity[155] - Public funds deposits totaled $1.1 billion at September 30, 2025, up from $1.0 billion at December 31, 2024, due to seasonal fluctuations[162] - The total amount of uninsured deposits was estimated at $264.3 million at September 30, 2025, excluding collateralized public funds deposits[158] Interest Income and Expenses - 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] - Interest income decreased by $3.9 million, or 6.8%, to $53.5 million for the three months ended September 30, 2025, primarily due to a $464.7 million decrease in the average balance of loans[176] - 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 for Q3 2025 was 2.34%, a decrease of 17 basis points from 2.51% in Q3 2024[112] Securities and Investments - Investment securities net of the allowance for credit losses reached $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 totaled $374.3 million at September 30, 2025, reflecting an increase of $93.2 million, or 33.2%, from $281.1 million at December 31, 2024[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] Capital and Ratios - 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] - The average interest-earning assets to interest-bearing liabilities ratio was 118.42% for the nine months ended September 30, 2025, slightly down from 119.48% in 2024[192]
FIRST GTY BANCSH(FGBIP) - 2025 Q3 - Quarterly Report