First Guaranty Bancshares, Inc. reported a net loss of $6.2 million for the first quarter of 2025, a significant decline from a net income of $2.3 million during the same period in 2024. This loss translates to earnings per share of $(0.54), compared to $0.14 in the prior year. The company's total assets decreased to $3.83 billion, down from $3.97 billion at the end of 2024, primarily due to a reduction in loans and investment securities. Total loans fell by $181 million, or 6.7%, to $2.51 billion, while total deposits decreased by $136.8 million, or 3.9%, to $3.34 billion.
The decline in profitability was largely attributed to a substantial increase in the provision for credit losses, which rose to $14.5 million from $2.3 million a year earlier. This increase included a $5.8 million provision related to the sale of two commercial real estate loans, which were sold at a loss of $5.8 million. Nonaccrual loans increased to $133.4 million, up $24.9 million from the previous quarter, with the rise concentrated in two significant loans related to assisted living and land development projects. The allowance for credit losses stood at $43 million, representing 1.71% of total loans, compared to 1.29% at the end of 2024.
In terms of operational developments, First Guaranty continued its strategy to reduce risk in its loan portfolio, which included the sale of loans identified as experiencing credit deterioration. The bank also closed three branches and consolidated two others in March 2025, a move aimed at optimizing its operational footprint. The total number of full-time equivalent employees decreased to 380 from 399 at the end of 2024, reflecting ongoing efforts to streamline operations.
Looking ahead, First Guaranty plans to maintain its focus on reducing commercial real estate exposure and managing its loan portfolio more conservatively. The bank's management anticipates continued challenges in the current economic environment, particularly concerning credit quality and interest rate fluctuations. The company remains committed to enhancing its capital ratios and improving its overall financial health, as evidenced by recent private placements of common stock that raised approximately $3.3 million.
About First Guaranty Bancshares, Inc.
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