v3.26.1
Allowance for Credit Losses on Loans
 3 Months Ended
Mar. 31, 2026
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 three months ended March 31, 2026 and 2025 are as follows: 

For the Three Months Ended March 31,
2026
(in thousands)Beginning Allowance (12/31/2025)Charge-offsRecoveriesProvisionEnding Allowance (3/31/2026)
Real Estate:
Construction & land development$2,079 $— $— $(423)$1,656 
Farmland183 — — (36)147 
1- 4 family13,340 (1,492)203 1,260 13,311 
Multifamily1,377 (25)— (528)824 
Non-farm non-residential12,054 (1,334)5 (465)10,260 
Total Real Estate29,033 (2,851)208 (192)26,198 
Non-Real Estate:
Agricultural173 (213)147 140 247 
Commercial and industrial6,271 (2,002)92 (2,016)2,345 
Commercial leases1,192 (92)— 5,559 6,659 
Consumer and other1,007 (280)99 40 866 
Unallocated3,079 — — (906)2,173 
Total Non-Real Estate11,722 (2,587)338 2,817 12,290 
Total Loans$40,755 $(5,438)$546 $2,625 $38,488 
Unfunded lending commitments700 — — — 700 
Total$41,455 $(5,438)$546 $2,625 $39,188 

 For the Three Months Ended March 31,
 2025
(in thousands)Beginning Allowance (12/31/2024)Charge-offsRecoveriesProvisionEnding Allowance (3/31/2025)
Real Estate:
Construction & land development$3,930 $(5,794)$— $8,285 $6,421 
Farmland50 — — — 50 
1- 4 family9,243 — 10 618 9,871 
Multifamily3,949 — — 1,345 5,294 
Non-farm non-residential11,531 — 5 3,584 15,120 
Total Real Estate28,703 (5,794)15 13,832 36,756 
Non-Real Estate:
Agricultural204 (169)— 52 87 
Commercial and industrial1,994 (418)25 514 2,115 
Commercial leases1,719 — — 107 1,826 
Consumer and other1,337 (496)200 107 1,148 
Unallocated854 — — 236 1,090 
Total Non-Real Estate6,108 (1,083)225 1,016 6,266 
Total Loans$34,811 $(6,877)$240 $14,848 $43,022 
Unfunded lending commitments1,210 — — (300)910 
Total$36,021 $(6,877)$240 $14,548 $43,932 

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 March 31, 2026
(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$255 $1,401 $1,656 $19,337 $90,421 $109,758 
Farmland— 147 147 2,419 28,958 31,377 
1- 4 family1,303 12,008 13,311 8,460 419,058 427,518 
Multifamily— 824 824 8,379 119,594 127,973 
Non-farm non-residential1,000 9,260 10,260 49,810 829,212 879,022 
Total Real Estate2,558 23,640 26,198 88,405 1,487,243 1,575,648 
Non-Real Estate:      
Agricultural— 247 247 654 37,245 37,899 
Commercial and industrial28 2,317 2,345 332 214,036 214,368 
Commercial leases5,711 948 6,659 6,483 64,627 71,110 
Consumer and other— 866 866 — 31,070 31,070 
Unallocated— 2,173 2,173 — — — 
Total Non-Real Estate5,739 6,551 12,290 7,469 346,978 354,447 
Total$8,297 $30,191 $38,488 $95,874 $1,834,221 1,930,095 
Unearned Income     (5,518)
Total Loans Net of Unearned Income     $1,924,577 

$88.9 million of loans individually evaluated for impairment as of March 31, 2026 were considered collateral dependent loans.
 
 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 March 31, 2026 and December 31, 2025, First Guaranty had loans totaling $54.4 million and $59.6 million, respectively, not accruing interest. First Guaranty had $0.2 million of loans past due 90 days or more and still accruing interest as of March 31, 2026 as compared to $0.8 million as of December 31, 2025. The average outstanding balance of nonaccrual loans for the three months ended March 31, 2026 was $57.0 million compared to $114.6 million for the year ended December 31, 2025.
The Bank held loans that were individually evaluated for impairment at March 31, 2026 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.

The Bank did not execute any new reportable modifications to borrowers experiencing financial difficulty (MEFD) during the three months ended March 31, 2026. As of March 31, 2026, loans that had been previously modified for borrowers experiencing financial difficulty consisted of $19.0 million of term extensions, $13.1 million of loan term modifications, and $0.3 million of payment delays. The Bank had no unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of March 31, 2026.

As of March 31, 2026, there have been no loans that were modified within the previous 12 months for which there has been payment default during the period.