First Guaranty Bancshares (FGBI) Q1 2025 earnings summary

Executive summary

• Net loss of $6.2 million for Q1 2025, down from net income of $2.3 million in Q1 2024, driven by higher credit loss provisions, loan charge-offs, and loan sales.

• Loan portfolio reduced by $181 million (6.7%) from December 2024, reflecting a strategy to lower commercial real estate exposure.

• Nonaccrual loans rose to $133.4 million, up $24.9 million from December 2024, mainly due to a few large commercial real estate relationships.

• Net interest income increased slightly to $22.2 million, but net interest margin declined to 2.35% from 2.58% year-over-year.

• Dividend on common stock reduced to $0.01 per share in Q1 2025 to preserve capital.

Financial highlights

• Total assets fell to $3.8 billion, a decrease of $143.5 million (3.6%) from December 2024.

• Total deposits declined by $136.8 million (3.9%) to $3.3 billion, mainly due to seasonal public funds activity.

• Allowance for credit losses increased to $43.0 million (1.71% of loans) from $34.8 million (1.29%) at year-end.

• Book value per share decreased to $17.21 from $17.75 sequentially.

• Provision for credit losses surged to $14.5 million from $2.3 million year-over-year, with $5.8 million tied to loan sales.

Outlook and guidance

• Management plans to continue reducing commercial real estate loan concentrations and unfunded commitments in 2025.

• Anticipates further reduction in nonaccrual loans via additional property sales.

• Sufficient liquidity and capital resources maintained, with regulatory capital ratios above well-capitalized minimums.