v3.26.1
Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2026 and 2025 are as follows: 

For the Six Months Ended June 30,
2026
(in thousands)Beginning Allowance (12/31/2025)Charge-offsRecoveriesProvisionEnding Allowance (6/30/2026)
Real Estate:
Construction & land development$2,079 $— $150 $912 $3,141 
Farmland183 — — 7 190 
1- 4 family13,340 (2,179)400 (60)11,501 
Multifamily1,377 (25)— 1,179 2,531 
Non-farm non-residential12,054 (2,274)225 30 10,035 
Total Real Estate29,033 (4,478)775 2,068 27,398 
Non-Real Estate:
Agricultural173 (295)226 269 373 
Commercial and industrial6,271 (2,035)171 (1,878)2,529 
Commercial leases1,192 (5,923)130 6,705 2,104 
Consumer and other1,007 (453)176 100 830 
Unallocated3,079 — — (2,014)1,065 
Total Non-Real Estate11,722 (8,706)703 3,182 6,901 
Total Loans$40,755 $(13,184)$1,478 $5,250 $34,299 
Unfunded lending commitments700 — — — 700 
Total$41,455 $(13,184)$1,478 $5,250 $34,999 

For the Six Months Ended June 30,
2025
(in thousands)Beginning Allowance (12/31/2024)Charge-offsRecoveriesProvisionEnding Allowance (6/30/2025)
Real Estate:
Construction & land development$3,930 $(5,794)$— $5,504 $3,640 
Farmland50 — — 122 172 
1- 4 family9,243 (16)22 6,751 16,000 
Multifamily3,949 — — 3,537 7,486 
Non-farm non-residential11,531 (33)16 10,350 21,864 
Total Real Estate28,703 (5,843)38 26,264 49,162 
Non-Real Estate:
Agricultural204 (169)— 211 246 
Commercial and industrial1,994 (975)52 4,616 5,687 
Commercial leases1,719 (233)— 619 2,105 
Consumer and other1,337 (797)319 457 1,316 
Unallocated854 — — (499)355 
Total Non-Real Estate6,108 (2,174)371 5,404 9,709 
Total Loans$34,811 $(8,017)$409 $31,668 $58,871 
Unfunded lending commitments1,210 — — (510)700 
Total$36,021 $(8,017)$409 $31,158 $59,571 

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 June 30, 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$73 $3,068 $3,141 $18,512 $80,488 $99,000 
Farmland— 190 190 2,391 28,487 30,878 
1- 4 family794 10,707 11,501 7,036 413,352 420,388 
Multifamily1,783 748 2,531 8,336 77,436 85,772 
Non-farm non-residential554 9,481 10,035 37,963 752,337 790,300 
Total Real Estate3,204 24,194 27,398 74,238 1,352,100 1,426,338 
Non-Real Estate:
Agricultural— 373 373 630 42,230 42,860 
Commercial and industrial— 2,529 2,529 25,514 197,113 222,627 
Commercial leases— 2,104 2,104 — 56,619 56,619 
Consumer and other— 830 830 — 21,223 21,223 
Unallocated— 1,065 1,065 — — — 
Total Non-Real Estate— 6,901 6,901 26,144 317,185 343,329 
Total$3,204 $31,095 $34,299 $100,382 $1,669,285 1,769,667 
Unearned Income(4,457)
Total Loans Net of Unearned Income$1,765,210 

$69.1 million of loans individually evaluated for impairment as of June 30, 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 June 30, 2026 and December 31, 2025, First Guaranty had loans totaling $40.6 million and $59.6 million, respectively, not accruing interest. First Guaranty had no loans past due 90 days or more and still accruing interest as of June 30, 2026 as compared to $0.8 million as of December 31, 2025. The average outstanding balance of nonaccrual loans for the six months ended June 30, 2026 was $55.4 million compared to $114.6 million for the year ended December 31, 2025.
The Bank held loans that were individually evaluated for impairment at June 30, 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 six months ended June 30, 2026. As of June 30, 2026, loans that had been previously modified for borrowers experiencing financial difficulty consisted of $13.1 million of term extensions, $11.8 million of loan term modifications, and $0.4 million of payment delays. The Bank had no unfunded commitments to borrowers whose terms have been modified as a reportable MEFD as of June 30, 2026.

As of June 30, 2026, there have been no loans that were modified within the previous 12 months for which there has been payment default during the period.