v3.26.1
Allowance for Credit Losses on Loans
 12 Months Ended
Dec. 31, 2025
Allowance for Credit Loss [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 years ended December 31, 2025 and 2024 are as follows:

 For the Year Ended December 31,
 2025
(in thousands)Beginning Allowance (12/31/2024)Charge-offsRecoveriesProvisionEnding Allowance (12/31/2025)
Real Estate:     
Construction & land development$3,930 $(5,794)$— $3,943 $2,079 
Farmland50 (68)2 199 183 
1- 4 family9,243 (657)45 4,709 13,340 
Multifamily3,949 (10,670)— 8,098 1,377 
Non-farm non-residential11,531 (12,891)24 13,390 12,054 
Total Real Estate28,703 (30,080)71 30,339 29,033 
Non-Real Estate:     
Agricultural204 (169)1 137 173 
Commercial and industrial1,994 (1,339)297 5,319 6,271 
Commercial leases1,719 (44,207)— 43,680 1,192 
Consumer and other1,337 (1,383)514 539 1,007 
Unallocated854 — — 2,225 3,079 
Total Non-Real Estate6,108 (47,098)812 51,900 11,722 
Total Loans$34,811 $(77,178)$883 $82,239 $40,755 
Unfunded lending commitments1,210 — — (510)700 
Total$36,021 $(77,178)$883 $81,729 $41,455 

For the Year Ended December 31,
2024
(in thousands)Beginning Allowance (12/31/2023)Charge-offsRecoveriesProvisionEnding Allowance (12/31/2024)
Real Estate:
Construction & land development$5,845 $(39)$1 $(1,877)$3,930 
Farmland36 (258)2 270 50 
1- 4 family6,653 (1,034)12 3,612 9,243 
Multifamily1,614 — — 2,335 3,949 
Non-farm non-residential10,596 (9,000)93 9,842 11,531 
Total Real Estate24,744 (10,331)108 14,182 28,703 
Non-Real Estate:
Agricultural97 (33)18 122 204 
Commercial and industrial2,711 (4,873)235 3,921 1,994 
Commercial leases1,948 — — (229)1,719 
Consumer and other1,426 (3,354)551 2,714 1,337 
Unallocated— — — 854 854 
Total Non-Real Estate6,182 (8,260)804 7,382 6,108 
Total Loans$30,926 $(18,591)$912 $21,564 $34,811 
Unfunded lending commitments2,810 — — (1,600)1,210 
Total$33,736 $(18,591)$912 $19,964 $36,021 

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 December 31, 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$— $2,079 $2,079 $28,237 $121,256 $149,493 
Farmland— 183 183 2,447 29,713 32,160 
1- 4 family857 12,483 13,340 7,816 420,957 428,773 
Multifamily11 1,366 1,377 8,446 135,789 144,235 
Non-farm non-residential1,398 10,656 12,054 41,888 906,648 948,536 
Total Real Estate2,266 26,767 29,033 88,834 1,614,363 1,703,197 
Non-Real Estate:      
Agricultural— 173 173 915 34,329 35,244 
Commercial and industrial3,534 2,737 6,271 5,308 223,430 228,738 
Commercial leases— 1,192 1,192 6,548 69,069 75,617 
Consumer and other— 1,007 1,007 — 33,023 33,023 
Unallocated— 3,079 3,079 — — — 
Total Non-Real Estate3,534 8,188 11,722 12,771 359,851 372,622 
Total$5,800 $34,955 $40,755 $101,605 $1,974,214 $2,075,819 
Unearned Income     (6,017)
Total Loans Net of Unearned Income     $2,069,802 
$91.8 million of loans individually evaluated for impairment as of December 31, 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 family430 8,813 9,243 3,174 447,197 450,371 
Multifamily2,942 1,007 3,949 27,516 137,605 165,121 
Non-farm non-residential1,229 10,302 11,531 54,201 1,105,641 1,159,842 
Total Real Estate5,004 23,699 28,703 98,588 2,042,785 2,141,373 
Non-Real Estate:      
Agricultural129 75 204 2,151 38,571 40,722 
Commercial and industrial3 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 Estate132 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 December 31, 2025 and 2024, First Guaranty had loans totaling $59.6 million and $108.5 million, respectively, not accruing interest. As of December 31, 2025, and 2024, First Guaranty had loans past due 90 days or more and still accruing interest totaling $0.8 million and $11.5 million, respectively. The average outstanding balance of nonaccrual loans in 2025 was $114.6 million compared to $63.4 million in 2024.

The Bank held loans that were individually evaluated for impairment at December 31, 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 year ended December 31, 2025 consisted of $19.1 million term extensions and $12.3 million in modification of loan terms. The bank had $0 unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of December 31, 2025.

As of December 31, 2025, there have been $0.8 million in loans that were modified with in the previous 12 months for which there has been payment default during the period.