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Allowance for Credit Losses on Loans
 9 Months Ended
Sep. 30, 2023
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 nine months ended September 30, 2023 and 2022 are as follows: 

 For the Nine Months Ended September 30,
 2023
(in thousands)Beginning Allowance (12/31/2022)ASC 326 Adoption Day 1 AdjustmentCharge-offsRecoveriesProvisionEnding Allowance (9/30/2023)
Real Estate:     
Construction & land development$1,232 $1,891 $— $7 $485 $3,615 
Farmland83 (39)— — 16 60 
1- 4 family1,761 3,465 (101)8 1,165 6,298 
Multifamily746 1,418 — — (21)2,143 
Non-farm non-residential9,280 307 (138)221 2,203 11,873 
Total Real Estate13,102 7,042 (239)236 3,848 23,989 
Non-Real Estate:     
Agricultural240 (98)— 410 (423)129 
Commercial and industrial2,194 2,971 (74)181 (1,717)3,555 
Commercial leases4,879 (162)— — (2,633)2,084 
Consumer and other2,506 (1,042)(1,732)338 1,416 1,486 
Unallocated597 (591)— — 687 693 
Total Non-Real Estate10,416 1,078 (1,806)929 (2,670)7,947 
Total$23,518 $8,120 $(2,045)$1,165 $1,178 $31,936 

For the Nine Months Ended September 30,
2022
(in thousands)Beginning Allowance (12/31/2021)Charge-offsRecoveriesProvisionEnding Allowance (9/30/2022)
Real Estate:
Construction & land development$769 $(66)$339 $145 $1,187 
Farmland478 — — (378)100 
1- 4 family1,921 (94)37 43 1,907 
Multifamily940 — 452 (291)1,101 
Non-farm non-residential12,730 (598)250 (2,719)9,663 
Total Real Estate16,838 (758)1,078 (3,200)13,958 
Non-Real Estate:
Agricultural183 (460)133 401 257 
Commercial and industrial2,363 (437)72 672 2,670 
Commercial leases2,486 (150)3 458 2,797 
Consumer and other1,371 (3,274)334 3,679 2,110 
Unallocated788 — — 888 1,676 
Total Non-Real Estate7,191 (4,321)542 6,098 9,510 
Total$24,029 $(5,079)$1,620 $2,898 $23,468 
 
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 September 30, 2023
(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$— $3,615 $3,615 $— $342,246 $342,246 
Farmland— 60 60 3,187 28,174 31,361 
1- 4 family317 5,981 6,298 3,637 415,408 419,045 
Multifamily— 2,143 2,143 537 120,669 121,206 
Non-farm non-residential2,902 8,971 11,873 45,158 1,007,592 1,052,750 
Total Real Estate3,219 20,770 23,989 52,519 1,914,089 1,966,608 
Non-Real Estate:      
Agricultural— 129 129 1,480 46,469 47,949 
Commercial and industrial548 3,007 3,555 1,712 353,124 354,836 
Commercial leases— 2,084 2,084 1,799 290,409 292,208 
Consumer and other— 1,486 1,486 — 46,068 46,068 
Unallocated— 693 693 — — — 
Total Non-Real Estate548 7,399 7,947 4,991 736,070 741,061 
Total$3,767 $28,169 $31,936 $57,510 $2,650,159 2,707,669 
Unearned Income     (8,276)
Total Loans Net of Unearned Income     $2,699,393 

All loans individually evaluated for impairment as of September 30, 2023 were considered collateral dependent loans.
 
 As of December 31, 2022
(in thousands)Allowance
Individually
Evaluated
for Impairment		Allowance Individually Evaluated for Purchased Credit-ImpairmentAllowance
Collectively Evaluated
for Impairment		Total Allowance
for Credit Losses		Loans
Individually
Evaluated
for Impairment		Loans Individually Evaluated for Purchased Credit-ImpairmentLoans
Collectively
Evaluated
for Impairment		Total Loans
before
Unearned Income
Real Estate:        
Construction & land development$— $— $1,232 $1,232 $68 $301 $232,722 $233,091 
Farmland— — 83 83 4,240 — 20,583 24,823 
1- 4 family— — 1,761 1,761 949 1,311 364,070 366,330 
Multifamily— — 746 746 — — 119,785 119,785 
Non-farm non-residential666 512 8,102 9,280 4,095 1,904 986,930 992,929 
Total Real Estate666 512 11,924 13,102 9,352 3,516 1,724,090 1,736,958 
Non-Real Estate:        
Agricultural— — 240 240 2,366 — 36,679 39,045 
Commercial and industrial412 212 1,570 2,194 5,919 742 378,618 385,279 
Commercial leases1,799 — 3,080 4,879 1,799 — 315,775 317,574 
Consumer and other— — 2,506 2,506 — — 47,864 47,864 
Unallocated— — 597 597 — — — — 
Total Non-Real Estate2,211 212 7,993 10,416 10,084 742 778,936 789,762 
Total$2,877 $724 $19,917 $23,518 $19,436 $4,258 $2,503,026 2,526,720 
Unearned Income       (7,643)
Total loans net of unearned income       $2,519,077 
A loan is considered impaired when, based on current information and events, it is probable that First Guaranty will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Payment status, collateral value and the probability of collecting scheduled principal and interest payments when due are considered in evaluating loan impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.

The following is a summary of impaired loans, excluding loans acquired with deteriorated credit quality, by class as of the date indicated: 

 As of December 31, 2022
(in thousands)Recorded
Investment		Unpaid
Principal Balance		Related
Allowance		Average
Recorded Investment		Interest Income
Recognized
Impaired Loans with no related allowance:     
Real Estate:     
Construction & land development$68 $68 $— $68 $— 
Farmland4,240 4,240 — 4,242 51 
1- 4 family949 949 — 949 5 
Multifamily— — — — — 
Non-farm non-residential1,814 1,814 — 1,817 56 
Total Real Estate7,071 7,071 — 7,076 112 
Non-Real Estate:     
Agricultural2,366 2,521 — 2,366 7 
Commercial and industrial4,871 4,988 — 4,988 33 
Commercial leases— — — — — 
Consumer and other— — — — — 
Total Non-Real Estate7,237 7,509 — 7,354 40 
Total Impaired Loans with no related allowance14,308 14,580 — 14,430 152 
Impaired Loans with an allowance recorded:     
Real Estate:     
Construction & land development— — — — — 
Farmland— — — — — 
1- 4 family— — — — — 
Multifamily— — — — — 
Non-farm non-residential2,281 2,855 666 2,279 5 
Total Real Estate2,281 2,855 666 2,279 5 
Non-Real Estate:     
Agricultural— — — — — 
Commercial and industrial1,048 1,048 412 1,112 35 
Commercial leases1,799 1,812 1,799 1,817 27 
Consumer and other— — — — — 
Total Non-Real Estate2,847 2,860 2,211 2,929 62 
Total Impaired Loans with an allowance recorded5,128 5,715 2,877 5,208 67 
Total Impaired Loans$19,436 $20,295 $2,877 $19,638 $219