v3.25.3

Securities | 9 Months Ended
--- | ---
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities A summary comparison of securities by type at September 30, 2025 and December 31, 2024 is shown below.
|  | September 30, 2025 |  | December 31, 2024
(in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 147,840 |  |  | $ | 33 |  |  | $ | (93) |  |  | $ | 147,780 |
U.S. Government Agencies |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Corporate debt securities |  | 8,300 |  |  | — |  |  | (245) |  |  | 8,055 |  |  | 12,250 |  |  | — |  |  | (668) |  |  | 11,582 |
Municipal bonds |  | 17,723 |  |  | 190 |  |  | (460) |  |  | 17,453 |  |  | 21,736 |  |  | 220 |  |  | (339) |  |  | 21,617 |
Collateralized mortgage obligations |  | 136,305 |  |  | 824 |  |  | (101) |  |  | 137,028 |  |  | 32,065 |  |  | — |  |  | (446) |  |  | 31,619 |
Mortgage-backed securities |  | 210,545 |  |  | 1,637 |  |  | (383) |  |  | 211,799 |  |  | 70,430 |  |  | — |  |  | (1,931) |  |  | 68,499 |
Total available for sale securities |  | $ | 372,873 |  |  | $ | 2,651 |  |  | $ | (1,189) |  |  | $ | 374,335 |  |  | $ | 284,321 |  |  | $ | 253 |  |  | $ | (3,477) |  |  | $ | 281,097 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies |  | $ | 267,410 |  |  | $ | — |  |  | $ | (54,569) |  |  | $ | 212,841 |  |  | $ | 266,761 |  |  | $ | — |  |  | $ | (64,671) |  |  | $ | 202,090 |
Corporate debt securities |  | 55,153 |  |  | 6 |  |  | (3,434) |  |  | 51,725 |  |  | 55,011 |  |  | — |  |  | (5,643) |  |  | 49,368 |
Total held to maturity securities |  | $ | 322,563 |  |  | $ | 6 |  |  | $ | (58,003) |  |  | $ | 264,566 |  |  | $ | 321,772 |  |  | $ | — |  |  | $ | (70,314) |  |  | $ | 251,458 |
The scheduled maturities of securities at September 30, 2025, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to calls or prepayments. Mortgage-backed securities are not due at a single maturity because of amortization and potential prepayment of the underlying mortgages. For this reason, they are presented separately in the maturity table below:
|  | At September 30, 2025
(in thousands) |  | Amortized Cost |  | Fair Value
Available for sale: |  |  |  |
Due in one year or less |  | $ | 3,564 |  |  | $ | 3,572 |
Due after one year through five years |  | 6,860 |  |  | 6,930 |
Due after five years through 10 years |  | 13,394 |  |  | 13,022 |
Over 10 years |  | 2,205 |  |  | 1,984 |
Subtotal |  | 26,023 |  |  | 25,508 |
Collateralized mortgage obligations |  | 136,305 |  |  | 137,028 |
Mortgage-backed securities |  | 210,545 |  |  | 211,799 |
Total available for sale securities |  | $ | 372,873 |  |  | $ | 374,335 |
Held to maturity: |  |  |  |
Due in one year or less |  | $ | — |  |  | $ | — |
Due after one year through five years |  | 23,612 |  |  | 22,532 |
Due after five years through 10 years |  | 118,949 |  |  | 106,441 |
Over 10 years |  | 180,002 |  |  | 135,593 |
Total held to maturity securities |  | $ | 322,563 |  |  | $ | 264,566 |
At September 30, 2025, $512.5 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $463.6 million as of September 30, 2025. Accrued interest receivable on First Guaranty's investment securities was $3.5 million and $1.4 million at September 30, 2025 and December 31, 2024, respectively, and was included in accrued interest receivable on the consolidated balance sheet. First Guaranty had a $0.2 million allowance for credit losses related to the held to maturity portfolio at September 30, 2025 and December 31, 2024. The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at September 30, 2025.
|  |  | At September 30, 2025 |  |
| Less Than 12 Months |  | 12 Months or More |  | Total
(in thousands) | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  | $ | — |
Corporate debt securities | 2 |  |  | 1,484 |  |  | (16) |  |  | 8 |  |  | 6,571 |  |  | (229) |  |  | 10 |  |  | 8,055 |  |  | (245) |
Municipal bonds | 3 |  |  | 1,350 |  |  | (40) |  |  | 26 |  |  | 5,135 |  |  | (420) |  |  | 29 |  |  | 6,485 |  |  | (460) |
Collateralized mortgage obligations | 9 |  |  | 42,883 |  |  | (101) |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 42,883 |  |  | (101) |
Mortgage-backed securities | 2 |  |  | 6,822 |  |  | (14) |  |  | 14 |  |  | 34,715 |  |  | (369) |  |  | 16 |  |  | 41,537 |  |  | (383) |
Total available for sale securities | 16 |  |  | $ | 52,539 |  |  | $ | (171) |  |  | 48 |  |  | $ | 46,421 |  |  | $ | (1,018) |  |  | 64 |  |  | $ | 98,960 |  |  | $ | (1,189) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies | — |  |  | $ | — |  |  | $ | — |  |  | 29 |  |  | $ | 212,841 |  |  | $ | (54,569) |  |  | 29 |  |  | $ | 212,841 |  |  | $ | (54,569) |
Corporate debt securities | 1 |  |  | 897 |  |  | (73) |  |  | 55 |  |  | 50,502 |  |  | (3,361) |  |  | 56 |  |  | 51,399 |  |  | (3,434) |
Total held to maturity securities | 1 |  |  | $ | 897 |  |  | $ | (73) |  |  | 84 |  |  | $ | 263,343 |  |  | $ | (57,930) |  |  | 85 |  |  | $ | 264,240 |  |  | $ | (58,003) |
The following is a summary of the fair value of securities with gross unrealized losses and an aging of those gross unrealized losses at December 31, 2024.
|  |  | At December 31, 2024 |  |
| Less Than 12 Months |  | 12 Months or More |  | Total
(in thousands) | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries | 2 |  |  | $ | 48,615 |  |  | $ | (93) |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 2 |  |  | $ | 48,615 |  |  | $ | (93) |
U.S. Government Agencies | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Corporate debt securities | 2 |  |  | 1,965 |  |  | (35) |  |  | 12 |  |  | 9,617 |  |  | (633) |  |  | 14 |  |  | 11,582 |  |  | (668) |
Municipal bonds | 2 |  |  | 505 |  |  | (4) |  |  | 34 |  |  | 5,406 |  |  | (335) |  |  | 36 |  |  | 5,911 |  |  | (339) |
Collateralized mortgage obligations | 8 |  |  | 31,619 |  |  | (446) |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 31,619 |  |  | (446) |
Mortgage-backed securities | 15 |  |  | 65,089 |  |  | (1,721) |  |  | 6 |  |  | 3,410 |  |  | (210) |  |  | 21 |  |  | 68,499 |  |  | (1,931) |
Total available for sale securities | 29 |  |  | $ | 147,793 |  |  | $ | (2,299) |  |  | 52 |  |  | $ | 18,433 |  |  | $ | (1,178) |  |  | 81 |  |  | $ | 166,226 |  |  | $ | (3,477) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies | — |  |  | $ | — |  |  | $ | — |  |  | 29 |  |  | $ | 202,090 |  |  | $ | (64,671) |  |  | 29 |  |  | $ | 202,090 |  |  | $ | (64,671) |
Corporate debt securities | 1 |  |  | 322 |  |  | (3) |  |  | 56 |  |  | 49,046 |  |  | (5,640) |  |  | 57 |  |  | 49,368 |  |  | (5,643) |
Total held to maturity securities | 1 |  |  | $ | 322 |  |  | $ | (3) |  |  | 85 |  |  | $ | 251,136 |  |  | $ | (70,311) |  |  | 86 |  |  | $ | 251,458 |  |  | $ | (70,314) |
As of September 30, 2025, 149 of First Guaranty's debt securities had unrealized losses totaling 14.0% of the individual securities' amortized cost basis and 8.5% of First Guaranty's total amortized cost basis of the investment securities portfolio. 132 of the 149 securities had been in a continuous loss position for over 12 months at such date. The 132 securities had an aggregate amortized cost basis of $368.7 million and an unrealized loss of $58.9 million at September 30, 2025. Management has the intent and ability to hold these debt securities until maturity or until anticipated recovery. Securities are evaluated for impairment from credit losses at least quarterly and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (i) the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the recovery of contractual principal and interest and (iv) the intent and ability of First Guaranty to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Investment securities issued by the U.S. Government and Government sponsored enterprises with unrealized losses and the amount of unrealized losses on those investment securities that are the result of changes in market interest rates will not be credit impaired. First Guaranty has the ability and intent to hold these securities until recovery, which may not be until maturity. Corporate debt securities in a loss position consist primarily of corporate bonds issued by businesses in the financial, insurance, utility, manufacturing, industrial, consumer products and oil and gas industries. There were no held to maturity corporate securities with a credit related impairment loss at September 30, 2025. First Guaranty believes that the remaining issuers will be able to fulfill the obligations of these securities based on evaluations described above. First Guaranty has the ability and intent to hold these securities until they recover, which could be at their maturity dates. There were no charge-offs recognized on securities during the nine months ended September 30, 2025 and 2024. There were no provisions for credit losses recognized on securities during the nine months ended September 30, 2025 and 2024. For securities that have indications of credit related impairment, management analyzes future expected cash flows to determine if any credit related impairment is evident. Estimated cash flows are determined using management's best estimate of future cash flows based on specific assumptions. The assumptions used to determine the cash flows were based on estimates of loss severity and credit default probabilities. Management reviews reports from credit rating agencies and public filings of issuers. At September 30, 2025, First Guaranty's exposure to bond issuers that exceeded 10% of shareholders' equity is below:
|  | At September 30, 2025
(in thousands) |  | Amortized Cost |  | Fair Value
U.S. Government Treasuries (U.S.) |  | $ | — |  |  | $ | — |
Federal Home Loan Bank (FHLB) |  | 32,381 |  |  | 27,130 |
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC) |  | 101,934 |  |  | 76,483 |
Federal Farm Credit Bank (FFCB) |  | 139,592 |  |  | 115,615 |
Government National Mortgage Association (Ginnie Mae-GNMA) |  | 201,795 |  |  | 203,136 |
Total |  | $ | 475,702 |  |  | $ | 422,364 |

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