v3.25.3

Allowance for Credit Losses on Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans A summary of changes in the allowance for credit losses, by portfolio type, for the nine months ended September 30, 2025 and 2024 are as follows:
|  | For the Nine Months Ended September 30,
|  | 2025
(in thousands) |  | Beginning Allowance (12/31/2024) |  | Charge-offs |  | Recoveries |  | Provision |  | Ending Allowance (9/30/2025)
Real Estate: |  |  |  |  |  |  |  |  |  |
Construction & land development |  | $ | 3,930 |  |  | $ | (5,794) |  |  | $ | — |  |  | $ | 5,673 |  |  | $ | 3,809 |
Farmland |  | 50 |  |  | — |  |  | — |  |  | 137 |  |  | 187 |
1- 4 family |  | 9,243 |  |  | (490) |  |  | 29 |  |  | 3,084 |  |  | 11,866 |
Multifamily |  | 3,949 |  |  | (10,430) |  |  | — |  |  | 7,474 |  |  | 993 |
Non-farm non-residential |  | 11,531 |  |  | (9,545) |  |  | 19 |  |  | 18,302 |  |  | 20,307 |
Total Real Estate |  | 28,703 |  |  | (26,259) |  |  | 48 |  |  | 34,670 |  |  | 37,162 |
Non-Real Estate: |  |  |  |  |  |  |  |  |  |
Agricultural |  | 204 |  |  | (169) |  |  | 1 |  |  | 170 |  |  | 206 |
Commercial and industrial |  | 1,994 |  |  | (1,055) |  |  | 187 |  |  | 4,470 |  |  | 5,596 |
Commercial leases |  | 1,719 |  |  | (774) |  |  | — |  |  | 39,884 |  |  | 40,829 |
Consumer and other |  | 1,337 |  |  | (1,104) |  |  | 426 |  |  | 301 |  |  | 960 |
Unallocated |  | 854 |  |  | — |  |  | — |  |  | 106 |  |  | 960 |
Total Non-Real Estate |  | 6,108 |  |  | (3,102) |  |  | 614 |  |  | 44,931 |  |  | 48,551 |
Total Loans |  | $ | 34,811 |  |  | $ | (29,361) |  |  | $ | 662 |  |  | $ | 79,601 |  |  | $ | 85,713 |
Unfunded lending commitments |  | 1,210 |  |  | — |  |  | — |  |  | (510) |  |  | 700 |
Total |  | $ | 36,021 |  |  | $ | (29,361) |  |  | $ | 662 |  |  | $ | 79,091 |  |  | $ | 86,413 |
|  | For the Nine Months Ended September 30,
|  | 2024
(in thousands) |  | Beginning Allowance (12/31/2023) |  | Charge-offs |  | Recoveries |  | Provision |  | Ending Allowance (9/30/2024)
Real Estate: |  |  |  |  |  |  |  |  |  |
Construction & land development |  | $ | 5,845 |  |  | $ | (39) |  |  | $ | 1 |  |  | $ | (954) |  |  | $ | 4,853 |
Farmland |  | 36 |  |  | (258) |  |  | — |  |  | 272 |  |  | 50 |
1- 4 family |  | 6,653 |  |  | (939) |  |  | 13 |  |  | 1,990 |  |  | 7,717 |
Multifamily |  | 1,614 |  |  | — |  |  | — |  |  | (156) |  |  | 1,458 |
Non-farm non-residential |  | 10,596 |  |  | (5,047) |  |  | 45 |  |  | 8,065 |  |  | 13,659 |
Total Real Estate |  | 24,744 |  |  | (6,283) |  |  | 59 |  |  | 9,217 |  |  | 27,737 |
Non-Real Estate: |  |  |  |  |  |  |  |  |  |
Agricultural |  | 97 |  |  | (33) |  |  | 26 |  |  | 174 |  |  | 264 |
Commercial and industrial |  | 2,711 |  |  | (4,521) |  |  | 157 |  |  | 3,251 |  |  | 1,598 |
Commercial leases |  | 1,948 |  |  | — |  |  | — |  |  | 147 |  |  | 2,095 |
Consumer and other |  | 1,426 |  |  | (2,837) |  |  | 474 |  |  | 2,524 |  |  | 1,587 |
Unallocated |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Non-Real Estate |  | 6,182 |  |  | (7,391) |  |  | 657 |  |  | 6,096 |  |  | 5,544 |
Total Loans |  | $ | 30,926 |  |  | $ | (13,674) |  |  | $ | 716 |  |  | $ | 15,313 |  |  | $ | 33,281 |
Unfunded lending commitments |  | 2,810 |  |  | — |  |  | — |  |  | (1,300) |  |  | 1,510 |
Total |  | $ | 33,736 |  |  | $ | (13,674) |  |  | $ | 716 |  |  | $ | 14,013 |  |  | $ | 34,791 |
Negative provisions are caused by changes in the composition and credit quality of the loan portfolio and by recoveries. The result is an allocation of the credit loss reserve from one category to another. A summary of the allowance along with loans and leases individually and collectively evaluated are as follows:
|  | As of September 30, 2025
(in thousands) |  | Allowance Individually Evaluated |  | Allowance Collectively Evaluated |  | Total Allowance for Credit Losses |  | Loans Individually Evaluated |  | Loans Collectively Evaluated |  | Total Loans before Unearned Income
Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Construction & land development |  | $ | 566 |  |  | $ | 3,243 |  |  | $ | 3,809 |  |  | $ | 19,081 |  |  | $ | 212,075 |  |  | $ | 231,156 |
Farmland |  | 70 |  |  | 117 |  |  | 187 |  |  | 2,543 |  |  | 29,142 |  |  | 31,685 |
1- 4 family |  | 857 |  |  | 11,009 |  |  | 11,866 |  |  | 7,867 |  |  | 433,150 |  |  | 441,017 |
Multifamily |  | 148 |  |  | 845 |  |  | 993 |  |  | 23,973 |  |  | 113,609 |  |  | 137,582 |
Non-farm non-residential |  | 10,635 |  |  | 9,672 |  |  | 20,307 |  |  | 66,651 |  |  | 936,547 |  |  | 1,003,198 |
Total Real Estate |  | 12,276 |  |  | 24,886 |  |  | 37,162 |  |  | 120,115 |  |  | 1,724,523 |  |  | 1,844,638 |
Non-Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | — |  |  | 206 |  |  | 206 |  |  | 915 |  |  | 43,822 |  |  | 44,737 |
Commercial and industrial |  | 3,534 |  |  | 2,062 |  |  | 5,596 |  |  | 8,403 |  |  | 218,674 |  |  | 227,077 |
Commercial leases |  | 39,739 |  |  | 1,090 |  |  | 40,829 |  |  | 52,921 |  |  | 82,037 |  |  | 134,958 |
Consumer and other |  | — |  |  | 960 |  |  | 960 |  |  | — |  |  | 34,763 |  |  | 34,763 |
Unallocated |  | — |  |  | 960 |  |  | 960 |  |  | — |  |  | — |  |  | — |
Total Non-Real Estate |  | 43,273 |  |  | 5,278 |  |  | 48,551 |  |  | 62,239 |  |  | 379,296 |  |  | 441,535 |
Total |  | $ | 55,549 |  |  | $ | 30,164 |  |  | $ | 85,713 |  |  | $ | 182,354 |  |  | $ | 2,103,819 |  |  | 2,286,173 |
Unearned Income |  |  |  |  |  |  |  |  |  |  |  | (6,432) |
Total Loans Net of Unearned Income |  |  |  |  |  |  |  |  |  |  |  | $ | 2,279,741 |
$146.3 million of loans individually evaluated for impairment as of September 30, 2025 were considered collateral dependent loans.
|  | As of December 31, 2024
(in thousands) |  | Allowance Individually Evaluated |  |  | Allowance Collectively Evaluated |  | Total Allowance for Credit Losses |  | Loans Individually Evaluated |  |  | Loans Collectively Evaluated |  | Total Loans before Unearned Income
Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction & land development |  | $ | 403 |  |  |  | $ | 3,527 |  |  | $ | 3,930 |  |  | $ | 10,724 |  |  |  | $ | 319,324 |  |  | $ | 330,048 |
Farmland |  | — |  |  |  | 50 |  |  | 50 |  |  | 2,973 |  |  |  | 33,018 |  |  | 35,991 |
1- 4 family |  | 430 |  |  |  | 8,813 |  |  | 9,243 |  |  | 3,174 |  |  |  | 447,197 |  |  | 450,371 |
Multifamily |  | 2,942 |  |  |  | 1,007 |  |  | 3,949 |  |  | 27,516 |  |  |  | 137,605 |  |  | 165,121 |
Non-farm non-residential |  | 1,229 |  |  |  | 10,302 |  |  | 11,531 |  |  | 54,201 |  |  |  | 1,105,641 |  |  | 1,159,842 |
Total Real Estate |  | 5,004 |  |  |  | 23,699 |  |  | 28,703 |  |  | 98,588 |  |  |  | 2,042,785 |  |  | 2,141,373 |
Non-Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | 129 |  |  |  | 75 |  |  | 204 |  |  | 2,151 |  |  |  | 38,571 |  |  | 40,722 |
Commercial and industrial |  | 3 |  |  |  | 1,991 |  |  | 1,994 |  |  | 5,194 |  |  |  | 252,324 |  |  | 257,518 |
Commercial leases |  | — |  |  |  | 1,719 |  |  | 1,719 |  |  | 3,015 |  |  |  | 217,185 |  |  | 220,200 |
Consumer and other |  | — |  |  |  | 1,337 |  |  | 1,337 |  |  | — |  |  |  | 42,267 |  |  | 42,267 |
Unallocated |  | — |  |  |  | 854 |  |  | 854 |  |  | — |  |  |  | — |  |  | — |
Total Non-Real Estate |  | 132 |  |  |  | 5,976 |  |  | 6,108 |  |  | 10,360 |  |  |  | 550,347 |  |  | 560,707 |
Total |  | $ | 5,136 |  |  |  | $ | 29,675 |  |  | $ | 34,811 |  |  | $ | 108,948 |  |  |  | $ | 2,593,132 |  |  | 2,702,080 |
Unearned Income |  |  |  |  |  |  |  |  |  |  |  |  |  | (8,300) |
Total loans net of unearned income |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,693,780 |
All loans individually evaluated for impairment as of December 31, 2024 were considered collateral dependent loans. As of September 30, 2025 and December 31, 2024, First Guaranty had loans totaling $114.3 million and $108.5 million, respectively, not accruing interest. First Guaranty had no loans past due 90 days or more and still accruing interest as of September 30, 2025 as compared to $11.5 million as of December 31, 2024. The average outstanding balance of nonaccrual loans for the nine months ended September 30, 2025 was $121.3 million compared to $63.4 million for the year ended December 31, 2024. The Bank held loans that were individually evaluated for impairment at September 30, 2025 for which the repayment, on the basis of the assessment at the reporting date, is expected to be provided substantially though the operation or sale of the collateral and the borrower is experiencing financial difficulty. The Allowance for Credit Losses for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the type of collateral that secure collateral dependent loans: •Residential real estate loans are primarily secured by first liens on residential real estate. •Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotels and restaurants. •Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land. •Commercial loans are primarily secured by accounts receivable, inventory and equipment. •Agriculture loans are primarily secured by farmland and equipment. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Occasionally, the Bank modifies loans to borrowers in financial distress by providing certain concessions, such as principal forgiveness, term extension, an other-than-insignificant payment delay, interest only for a specified period of time, an interest rate reduction, or a combination of such concessions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. Reportable modifications to borrowers experiencing financial difficulty (MEFD) during the nine months ended September 30, 2025 consisted of a $17.6 million term extension. The Bank had no unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of September 30, 2025. As of September 30, 2025, there have been $1.0 million in loans that were modified with in the previous 12 months for which there has been payment default during the period.

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